Management Sciences and Quantitative Methods Commons^™

How Does Peer Honesty Affect Focal Manager Honesty In A Budget Reporting Setting?, Michael Paz, Bernhard E. Reichert, Alex Woods

Michael Paz

We examine the effect of peer honesty on focal manager honesty in a budget reporting setting. We disclose peer honesty to the focal manager at three levels: no, partial, and full disclosure of the reporting behavior of the other managers in the focal managers’ cohort. In partial disclosure, only the reports of the least honest peers are disclosed to the focal manager. In full disclosure, all managers’ reports in the cohort are disclosed to the focal manager. We predict and find that disclosure of other managers’ reports leads to less honesty compared to the absence of disclosure. We show that …

Does Beating Cash Flow Benchmarks Reduce The Cost Of Debt?, Mauricio A. Melgarejo

Mauricio Melgarejo

This paper examines whether beating previous year cash flow values and analysts' cash flow forecasts impact the firms' cost of debt. Creditors are expected to be more concerned about firm solvency than firm profitability. Accordingly, if lenders have any reference point it may be related to cash flow numbers. This study finds that firms that beat analysts' cash flow forecasts have smaller initial bond yield spreads in the next period and a decrease in their initial bond yield spreads between consecutive periods. This effect is more pronounced at short maturities and for observations with less informative earnings. Firms with lower …

An Empirical Investigation Of Voluntary Non-Ifrs Earnings Reporting During The Recent Financial Crisis : Australian Evidence, Elisabeth Sinnewe

Dr Elisabeth Sinnewe

This study examines how the financial crisis affected the reporting choice of and market reaction to earnings that are different from the profit firms report on their income statement under International Financial Reporting Standards (IFRS). These non-IFRS earnings reflect management’s subjective of view of earnings. By observing management’s reporting choices and investors’ reaction in Australia prior to, during, and after the financial crisis, this study shows a distinctive effect of the economic condition on reporting non-IFRS earnings. As such, this study contributes to the limited attention hypothesis suggesting that information-equivalent disclosure is perceived as value relevant by management and investors …

By Habits Or Choice? Discretionary Spending In The Oecd, Riccardo Fiorito

riccardo fiorito

Only 1/3 of Government spending in the Oecd countries results from choice rather than from inertia. This result stems from Coricelli-Fiorito (21013) where a measure of discretion is provided. A major implication is that most multiplier analysis of public spending is unreliable since it typically refers to variables often reflecting past habits or business cycle implications instead of occasional and intentional policy controls.

Managing Nigeria’S Transformation Agenda: The Leadership Challenge, Professor Ben C Osisioma, Professor Hilda Osisioma

Prof Ben Chuka Osisioma

Nigeria’s President won the 2011 Federal Government elections on the groundswell of popular support and the promise of a transformation agenda. Transformation is a strong word that portends a radical, structural and fundamental reappraisal of the basic assumptions that underlie our reforms and developmental efforts. The challenge before government is how to move the nation away from an oil-dominated economy, institute the basics for a private-sector driven economy, build the local economy on international best practices, transform a passive oil industry to a more pro-active one, and restructure the country along the lines of a more decentralized federalism. But beyond …

Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart

Pamela Kent

This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger …

Special Edition Of Journal Of Business Ethics, Marilynn P. Fleckenstein Ph.D., Patrick Flanagan, Victoria Shoaf Ph.D., Patricia Werhane Ph.D.

Patrick Flanagan

DePaul University hosted the 14th Annual International Conference Promoting Business Ethics, at The Standard Club in Chicago, November 1–3, 2007. Academic and business leaders came together to explore the important ethical issues facing the business community in the twenty-first century. The articles in this special volume of The Journal of Business Ethics have been selected from the many presentations at this conference. Sponsored annually by the Vincentian Universities in the United States (DePaul University, in Chicago, Illinois; Niagara University in Niagara Falls, NY; and St. John’s University in Queens, NY) this conference promotes the mission of St. Vincent DePaul, the …

Special Edition Of Journal Of Business Ethics, Patrick Flanagan, Marilynn P. Fleckenstein Ph.D., Victoria Shoaf Ph.D., Patricia Werhane Ph.D.

Patrick Flanagan

The articles in this special volume of Journal of Business Ethics have been selected from the many presentations at this conference and represent a cross section of the topics and issues covered at the Vincentian Business Ethics Conference at the Manhattan campus of St. John's University in the fall of 2009. Sponsored annually by the Vincentian universities in the United States (DePaul University, in Chicago, Illinois; Niagara University in Niagara Falls, NY; and St. John’s University in Queens, NY), this conference promotes the mission of St. Vincent DePaul, the seventeenth-century Roman Catholic saint who serves as the patron of these …

Special Edition Of Journal Of Business Ethics, Patrick Flanagan, Marilynn P. Fleckenstein Ph.D., Patrick D. Primeaux Ph.D., Victoria Shoaf Ph.D., Patricia Werhane Ph.D.

Patrick Flanagan

Niagara Falls, New York was home to the 13th Annual Vincentian International Conference Promoting Business Ethics sponsored by DePaul University (Chicago, IL), Niagara University (Niagara, NY), and St. John’s University (New York, NY), the three American universities sponsored by the Congregation of the Mission (the Vincentians). Conferences in the past had specific themes and corresponding paper presentations focused on a particular topic. This one intentionally did not have a central organizing subject matter to allow for greater diversity. Leaders from the academic and corporate sectors, representing 30 countries, submitted excellent papers on a broad range of ethical issues. This rich …

Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart

James Routledge

This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger …

Application Of Probabilistic Model By Rasch Measurement To Establish A Performance Index: A Case Study In Audits On Malaysian Institutions Of Higher Learning, Razimah Abdullah, Rosmawati Abd Halim, Azami Zaharim, Rozeha A Rashid, Mohd Saidfudin Masodi

Razimah Abdullah