Accounting Commons^™

Big Data Analytics And Management Forecasting Behavior, Beng Wee Goh, Na Li, Tharindra Ranasinghe

Research Collection School Of Accountancy

This paper investigates whether the use of Big Data analytics by firms has a spillover effect on management forecasting behavior. Insights provided by Big Data could potentially improve firms’ ability to forecast earnings (supply channel) and investor demand for earnings information is likely higher for firms engaging in data analytics (demand channel). Using a text-based measure of firms’ commitments to and usage of Big Data analytics, we find that Big Data analytics usage is positively associated with the propensity to issue management earnings forecasts. Consistent with the “supply channel” explanation, we find that Big Data analytics usage is positively associated …

Estate Planning Before 2026, Michelle S. Freeman, Shelby Follis

Faculty Open Access Works

Excerpt:

Estate planning can be a morbid matter that may only impact a small percentage of taxpayers. However, as CPAs, we are responsible for ensuring our impacted clients are prepared for the possible gift and estate tax changes on the horizon. The Tax Cuts and Jobs Act of 2017 (TCJA) introduced monumental tax reform affecting the gift and estate tax. The gift and estate tax lifetime exemption allows an individual to gift a certain amount tax-exempt during life or at death. Before the TCJA, the lifetime exemption began at a tax base of $5 million, adjusted for inflation ($5.6 million). …

The Impact Of Managerial Myopia On Cybersecurity: Evidence From Data Breaches, Wen Chen, Xing Li, Haibin Wu, Liandong Zhang

Research Collection School Of Accountancy

Using a sample of U.S. firms for the period 2005–2017, we provide evidence that managerial myopic actions contribute to corporate cybersecurity risk. Specifically, we show that abnormal cuts in discretionary expenditures, our proxy for managerial myopia, are positively associated with the likelihood of data breaches. The association is largely driven by firms that appear to cut discretionary expenditures to meet short-term earnings targets. In addition, the association is stronger for firms with greater short-term equity incentives, higher earnings response coefficients, low levels of institutional block ownership, or large market shares. Finally, firms appear to increase discretionary expenditures upon the announcement …

Corporate Social Responsibility Impact On Financial Performance: The Roles Of Corporate Reputation And Engagement Patterns, Ruiyang Ma

Doctoral Dissertations

Corporate Social Responsibility (CSR) has garnered significant attention. Understanding the mechanisms through which stakeholders interpret a firm’s CSR efforts and the boundary conditions that affect the relationship between CSR and its outcomes can help companies optimize resource allocation to CSR activities. This research explores the link between CSR and financial performance, highlighting the mediating role of reputation and the moderating effects of different CSR engagement patterns. Drawing on cognitive literature, this study suggests that a firm’s consistently increasing investment in CSR activities can enhance corporate reputation, which in turn improves financial performance. The effect of different CSR engagement patterns on …

Auditing Standards Board (Asb), Meeting Agenda, August 22, 2024, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Teng-Go Axis Package: A Marketing Efforts Analysis, Alessandra Dwi Maharani

Jurnal Administrasi Bisnis Terapan

This study's purpose is to analyze the marketing efforts of Teng-Go Package by Axis. In this study, the method used is a qualitative approach with literature reviews regarding the related topics and external analysis using several analytical frameworks. The analysis frameworks carried out in this article consists of three broad sectors, which are Company Analysis with Marketing Mix and SWOT Analysis, Customer Analysis with STP Analysis, and External Analysis with Porter’s Five Forces, and Competitive Landscape Analysis. The output of this article shows that the marketing efforts undertaken by Axis for the Teng-Go Package have gone quite well and are …

Stock Liquidity And Value Relevance Of Earnings : Evidence From A Natural Experiment, Joseph Maxwell Asamoah

Lingnan Theses (MPhil & PhD)

This thesis explores the effect of stock liquidity on the value relevance of earnings, employing the Securities and Exchange Commission's 2016 Tick Size Pilot Program (TSP) as a natural experiment to investigate this relationship. This study leverages the exogenous shock to stock liquidity induced by the program to address endogeneity issues that have historically complicated the analysis of stock market dynamics. By examining the causal effects of increased liquidity on the market's response to earnings announcements, the research provides new insights into how liquidity impacts the usefulness and reliability of accounting information from the shareholders' perspective.

The findings indicate that …

Tax Client Goals, Regulatory Pressure, And Professional Decision-Making, Spenser G. Seifert

Theses and Dissertations

Drawing on goal theory, I illuminate how client preferences become internalized goals for tax professionals and how these client goals influence the motivated reasoning and ultimate decision-making of tax professionals. Using this theoretical framework, I then utilize an experiment to explore how the presence of salient situational factors – goal specificity, goal progress, and regulatory pressure – influence tax professionals’ decision-making. The results suggest that, as a result of their roles as both client advocates and CPAs, tax professionals default to non-specific “do your best” goals regardless of client preference specificity. Additionally, I find that increased regulatory pressure may curb …

The Effect Of Voluntarily Disclosing An Earnings Surprise On Management Operating Decisions, Jonathan Gay

Theses and Dissertations

Prior research extensively examines the external implications of voluntarily disclosing an earnings surprise, yet the internal implications remain understudied. Using two experiments, I examine whether the preemptive voluntary disclosure of an earnings surprise influences management operating decisions. Drawing upon mental accounting and the realization effect, I predict that managers are more likely to make inefficient operating decisions when an earnings surprise is expected and that a quantitative, but not qualitative, voluntary disclosure will mitigate this value-sacrificing behavior. I find that managers are more likely to make inefficient operating decisions when a negative, but not a positive, earnings surprise is expected …

The Effects Of Management’S Esg Disclosure Strategy And Voluntary Esg Assurance On Investment Judgments, Macy Knutson

Theses and Dissertations

Many investors desire to integrate a company’s environmental, social, and governance (ESG) performance into their investment decisions. Accordingly, most companies now disclose at least some ESG information in annual sustainability reports. However, little regulation exists over ESG reporting, creating a well-acknowledged agency problem for investors and making trust vitally important to investment. In this study, I examine two mechanisms which may facilitate trust amongst ESG investors: Management’s ESG disclosure strategy and ESG assurance. Contrary to traditional conceptions of persuasion theory, I find ESG investors reduce investment in response to more transparent negative disclosures when the ESG report is not independently …

The Effect Of It Governance Implementation On Decision-Making Performance (Case Study In Pt Xyz), Annisa Mahri, Zaldy Adrianto

Journal of Accounting Auditing and Business

This study aims to determine the effect of IT governance implementation on decision-making performance. This study uses qualitative data and population of the research is from interview data with 5 respondents from PT XYZ in different divisions, which are Management Information System division, Finance division, and consultant. The data analyzed using Atlas.ti software for processing qualitative data. The results of the study show that the implementation of IT Governance at PT XYZ has a significant impact on decision-making performance by focusing on performance measurement and establishing clear KPIs for evaluation. Furthermore, the adoption of an ERP system allows all business …

The Effect Of Current Ratio, Net Profit Margin, Roa, Company Age, On Profit Growth& Stock Prices During The Covid-19 Pandemic, Gayatri Rejeki, Erwin Harinurdin

Jurnal Administrasi Bisnis Terapan

The purpose of this study was conducted to examine the effect of Current Ratio (CR), Net Profit Margin (NPM), Return On Assets (ROA), and Company Age on Profit Growth and the Effect of Profit Growth on Stock Prices on the Indonesia Stock Exchange 2018-2021. This research is a quantitative type. The population in this study are companies on the LQ45 index listed on the Indonesia Stock Exchange in the 2018-2021 period with a total sample of 34 companies. This study used a purposive sampling method. Methods of data analysis using descriptive statistics, comparative analysis, multiple linear regression analysis, and classical …

Organizational Leaders' Strategies To Detect And Prevent Occupational Fraud, Pamela Denise Henderson

Walden Dissertations and Doctoral Studies

Inadequate strategies to detect and prevent occupational fraud may adversely affect nonprofit organizations. Nonprofit leaders are concerned about occupational fraud because it increases the risk of organizational failure. Guided by the fraud triangle theory, the purpose of this qualitative single-case study was to explore techniques some nonprofit organizational leaders used to detect and prevent occupational fraud. The participants for this study were three senior leaders in a nonprofit organization located in the central part of the U.S. state of Alabama who successfully implemented strategies for detecting and preventing occupational fraud. Data were collected through semistructured interviews and a review of …

Do Audit Firms Discount Initial Full‐Year Audit Engagements With Multiple Potential Successor Auditors?, Ming (Mike) Yuan

Accounting Faculty Publications

Auditing theory predicts fee discounting when multiple potential successor auditors bid for the client. However, the empirical evidence on this issue varies as more recent research attributes prior evidence of fee discounting to measurement errors related to audit fees’ partial-year reporting. We argue that the mixed results of previous literature are partially attributable to a failure to identify competitive auditor changes. We use U.S. Securities and Exchange Commission (SEC) disclosures of audit firm changes to identify cases with multiple potential successor auditors, which suggests more competition for the client. We compare each disclosing firm's audit fees between the first year …

Research On Digital Platform Capabilities And Entrepreneurship Empowerment Performance Of Science And Technology Industrial Parks, Jieyu Zheng

Dissertations and Theses Collection (Open Access)

In the era of the digital economy, industries are shifting toward platform-based and ecological trends, with industrial parks similarly adopting digital and platform-based patterns. The systematic planning, functional layout, and service efficiency of science and technology industrial parks (sci-tech industrial parks for short) are designed to address emerging industries’ spatial and organizational needs. This approach aims to create a system where digital transformation is employed as the mechanism and digital platforms empower entrepreneurial enterprises within these parks, fostering high-quality park development. However, despite efforts to build digital platforms for transforming into digital parks, many industrial parks have found their platform …

Determinants And Consequences Of Engaging With Multiple Auditors In The Mutual Fund Industry, Chelsea Mae Anderson

Graduate Theses and Dissertations

Mutual funds are an important industry and component of capital markets, with $34 trillion in assets under management that hold 32 percent of exchange-traded common equities. In this industry, there are often multiple auditors serving the same client concurrently, which could impact auditor behavior. I examine the determinants of engaging with multiple auditors, finding that it is driven by fund complex size, recent merger activity, and having multiple locations. I also examine the consequences of this dynamic, finding that funds in multiple auditor complexes pay lower audit fees and have higher audit quality, as proxied by audit adjustments. I find …

Do Investors Value Firm's Application Of Cryptocurrency And Blockchain Technology?, Shensi Wang

Open Access Theses & Dissertations

This paper examines how investors view a firm's involvement with cryptocurrency or blockchain technology, measured by 10-K disclosures containing the related keywords. I find that investors negatively react to the information related to cryptocurrency or blockchain in the three-day window, but the negative trend is reversed after day four. Surprisingly, the topic analysis indicates that the market reacts positively to all topics related to cryptocurrency and blockchain, except for the "competition environment," suggesting that factors outside adopting cryptocurrency or blockchain affect the negative correlations observed before.

Buy Now Pay (Pain?) Later, Ed Dehaan, Jungbae Kim, Ben Lourie, Chenqi Zhu

Research Collection School Of Accountancy

“Buy-now-pay-later” (BNPL) is a relatively unregulated FinTech innovation that provides consumers with easy access to credit for retail purchases. BNPL spending is projected to reach $1 trillion by 2025, but we know little about its effects. Using banking data for10.6 million U.S. consumers, we investigate the effects of BNPL on leading indicators of users’ financial health. We find that new BNPL users experience rapid increases in bank overdraft charges and credit card interest and fees compared with nonusers, consistent with BNPL facilitating overborrowing. An instrumental variable exploiting consumers’ pre-BNPL shopping habits bolsters our inferences. Our results inform regulatory investigations into …

Informativeness Of Key Audit Matters: Evidence From China, Beng Wee Goh, Kiat Bee Jimmy Lee, Dan Li, Muzhi Wang

Research Collection School Of Accountancy

This study examines whether the key audit matters (KAMs) disclosed in expanded audit reports as a part of recent regulatory reforms are informative for investors in an emerging economy setting. Using the recent adoption of expanded audit reports for firms listed exclusively in Mainland China, we find robust evidence that the abnormal trading volume and earnings response coefficients (ERCs) are higher and that stock price synchronicity is lower during the postadoption than preadoption period. In additional tests, we find evidence that KAMs are more informative for non-state-owned enterprises (non-SOEs), smaller firms, and firms with a smaller analyst following. Finally, we …

The Role Of Shareholder Derivative Lawsuits In Accounting: Impacts On Corporate Information Quality And Audit Fee Determination, Md Zubair Zuven

Theses and Dissertations

This dissertation consists of two essays on shareholder derivative lawsuit issues in accounting. In the first essay, I investigate the causal effect of shareholder litigation rights on information quality by using the staggered adoption of universal demand (UD) laws as an exogenous variation in litigation risk. My empirical findings from the difference-in-differences methodology align with the theory that shareholder litigation risk plays a deterrence role and acts as a corporate governance mechanism. I find a significant drop in information quality measures for firms incorporated in states that adopted UD laws, which is consistent with the notion that higher (lower) shareholder …