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Articles 1 - 8 of 8
Full-Text Articles in Accounting
New Ventures: Control Of Risks Through Strategies, Simone Kelly, Raymond Mcnamara
New Ventures: Control Of Risks Through Strategies, Simone Kelly, Raymond Mcnamara
Ray McNamara
This paper uses case studies and interview data to explore the relationship between control and new venture success/survival. A model of the new venture control process is distilled and explored in six new venture cases. The control processes were traced through an examination of the everyday language of venture principals to determine a grounded lower order model. Integrating these models into contingency theory locates strategic risk reduction choices as the crucial link between contingent variables and organizational control packages. In this sense the process of organizing is seen as a tiered process of risk reduction: successful firms analyze and control …
Corporate Governance, Risk Assessment And Cost Of Debt, Husam Aldamen, Keith Duncan, Ray Mcnamara
Corporate Governance, Risk Assessment And Cost Of Debt, Husam Aldamen, Keith Duncan, Ray Mcnamara
Ray McNamara
This paper examines the impact of corporate governance practices on the reported cost of contracted debt for Australian listed companies. Good governance decreases the variability in cash flows, reduces the probability of default (reduces default risk), increases the quality of value-relevant information disclosed (reduces the information risk) and thereby lowers the cost of debt (Ashbaugh-Skaife, Collins, and LaFond 2006; Sengupta 1998; Bhojraj and Sengupta 2003; Beekes and Brown 2006; Klein 2002; Easley and O'Hara 2004). Similarly our Australian data confirms that cost of debt is positively related to default and information risks. We show that increased corporate governance reduces default …
Empires Of The Mind: Cross Cultural Cooperative Business Education, Keith Duncan, Simone Kelly, Raymond Mcnamara
Empires Of The Mind: Cross Cultural Cooperative Business Education, Keith Duncan, Simone Kelly, Raymond Mcnamara
Ray McNamara
This paper explores current trends in knowledge growth and decay, globalization, technology and education. Business education in the new millennium is shaped by these trends. This contextual backdrop raises both educational and business issues which are explored with exemplars from a successful cross-cultural blended MBA program. The educational issues considered include educational relevance, lifelong learning objectives, education vs. training, needs of the target audience, what is the language of instruction, as well as issues of assessment and outcome measurement. The business issues include a fair return to all parties, responsibilities, management and communication systems and dispute resolution. In a globalized, …
Inventory Valuation, Company Value, And The Uncertainty Principle, Catherine Whelan, Simone Kelly, Ray Mcnamara, Jasper Verkleij
Inventory Valuation, Company Value, And The Uncertainty Principle, Catherine Whelan, Simone Kelly, Ray Mcnamara, Jasper Verkleij
Ray McNamara
Extract:One of the key elements to the operation of capital markets is information efficiency (Ball and Brown 1968). Both the IASB and the FASB frameworks emphasize decision usefulness, particularly to investors in capital markets, as the primary focus of general purpose financial statements. While theoretically, market values are determined by estimating discounted cash flows (Copeland, Weston et al. 2005; Brealey 2007), practical observations suggest a role for accounting information in the valuation process. Market information suggests that practitioners use the accounting performance measure “earnings” for firm valuation and determination of share prices.
The Valuation Accuracy Of The Price-Earnings And Price-Book Benchmark Valuation Methods, C. S. Cheng, Ray Mcnamara
The Valuation Accuracy Of The Price-Earnings And Price-Book Benchmark Valuation Methods, C. S. Cheng, Ray Mcnamara
Ray McNamara
This paper evaluates the valuation accuracy of the price-earnings (P/E), the price-book (P/B) and a combined price-earnings and price-book (P/E-P/B) benchmark valuation methods. Performance of the benchmark valuation methods relies on the definition of comparable firms. In this paper, comparable firms are selected based on industry membership, size and return on equity as well as combinations of industry membership with size and with return on equity. We find that within the P/E and P/B benchmark valuation methods, the best definition of the comparable firms are based on industry membership combined with return on equity. However, only the industry membership is …
Assessing Solvency For Financially Distressed Companies, James Routledge, Ray Mcnamara
Assessing Solvency For Financially Distressed Companies, James Routledge, Ray Mcnamara
Ray McNamara
This article reviews past and recent authorities that have addressed the definition and application of the solvency test in s 95A of the Corporations Act 2001 (Cth). The discussion highlights that, when faced with financial distress, company directors need to carefully consider the solvency implications of their decisions. To generate cash to pay debts as they become due, directors may attempt to realise company assets, obtain additional secured or unsecured debt finance or reorganise the timing of payments with creditors. The discussion of relevant cases shows that the solvency implications associated with realisation of assets, use of assets as security …
Auditor Orientation, Strategies, And Tactics In Audit Negotiations, Janice Hollindale, Pamela Kent, Ray Mcnamara
Auditor Orientation, Strategies, And Tactics In Audit Negotiations, Janice Hollindale, Pamela Kent, Ray Mcnamara
Ray McNamara
This paper establishes the tactics that auditors use in negotiations with their client-management. It analyses those tactics to determine whether they are related by some underlying dimensions and their relevant strategies. Auditors performed a sorting task on 38 audit-specific tactics and assembled the tactics into groups of similar tactics. We used the auditors’ own cognisant representations of those tactics to determine their underlying structure. Multidimensional scaling found that there are four dimensions to the tactics that auditors use. During negotiations with their clients, auditors employ tactics representing core dimensions which can be interpreted as “Concern for Self”, “Concern for Client”, …
Gas Reserves And Equity Valuation: Implications For Accounting Standards, Keith Duncan, Simone Kelly, Ray Mcnamara
Gas Reserves And Equity Valuation: Implications For Accounting Standards, Keith Duncan, Simone Kelly, Ray Mcnamara
Ray McNamara
The coal seam gas industry is an important and rapidly developing sector of the Australian mining industry. This sector provides an excellent site to test the relevance of the Hotelling Valuation Principle (HVP) in explaining the market capitalisation of this industry sector. Currently, the majority of listed firms in this sector do not have positive cash flows from the sale of gas. The HVP posits that market values are a function of company reserves. We test five measures of firm reserves as explanations of market capitalisation. After controlling for scale differences, we find that 2P Reserves have the highest explanatory …