Accounting Commons^™

Investigating The Role Of Financial Sanctions In Utility Function And Their Impact On Household Behavior, Hamid Reza Izadi

DLSU Business & Economics Review

This research aims to present a DSGE model that can investigate the effect of utility changes due to the financial sanctions imposed on the dominant economy by defining different utility functions for households. The link between the real economy and financial markets stems from the countries’ need for external finance to engage in investment opportunities in each country. Each and every economy often needs foreign funding; however, restrictions can limit the access of the given country to international financial markets. The existence of a crisis in international financial markets such as international sanctions can aggravate the adverse shocks and their …

Impulse Buying And Financial Literacy Among Public Elementary And High School Teachers In The Philippines, Melvin A. Jabar, Ma. Luisa C. Delayco

DLSU Business & Economics Review

This paper primarily interrogates the assumption that financial literacy essentially decreases impulse buying. However, this may not necessarily be the case, given that individuals navigate in different social contexts. Teachers in the Philippines are stereotypically perceived as heavy financial borrowers due to their limited income. Given their quick access to private financial loan companies, it is worthy to investigate if teachers also engage in impulse buying. The first goal of this paper is to describe the financial literacy of public-school teachers. Second, it examines the relationship between financial literacy and impulse buying. In this paper, financial literacy is operationalized in …

Editor's Note, Marites Tiongco

DLSU Business & Economics Review

No abstract provided.

Towards Establishment Of A Payment For Ecosystem Services (Pes) In Protected Areas: The Case Of Mounts Banahaw And San Cristobal In Quezon Province, Philippines1, Luisito Abueg, Julie Carl P. Ureta, Arlene B. Inocencio

DLSU Business & Economics Review

This paper examines the potential of establishing payments for ecosystem services in the Mounts Banahaw and San Cristobal Protected Landscape. The findings show that this process entails more than just determining the willingness to pay of those who are benefiting from the ecosystem services. It also requires the buy-in of potential sellers. More important is clearly defining the product, that is, what the buyers will be paying for and what the sellers will be providing, so that the ecosystem service will be sustained. In addition, identification of some third parties to mediate between buyers and sellers and to serve as …

Know Your Customers: How Generations X And Y Perceive Mobile Payment, Sheena Valencia, Reynaldo Bautista Jr., Luz Suplico Jeong

DLSU Business & Economics Review

This research aims to find the factors that will influence Generations X and Y consumers to utilize mobile payment in the Philippines. A self-administered questionnaire was sent to 160 respondents from Generation X and 160 respondents from Generation Y. The theory of planned behavior was used as a framework. Attitude towards mobile payment, subjective norms, and perceived behavioral control were used to predict the intention to use mobile payments. The results show that attitude is the most significant predictor of intention to adopt mobile payment from Generations X and Y. This implies that the more favorable the attitude, the more …

Investigating The Influence Of Consumption Values On Healthy Eating Choices: The Moderating Role Of Healthy Food Awareness, Aleem Raza, Mubasher Akram, Muhammad Asif

DLSU Business & Economics Review

The purpose of the study was to empirically investigate the extent to which consumption values influence consumers’ healthy eating choices. By using the theory of consumption values, the study also attempts to explain the role of healthy food awareness as a moderating variable in consumers’ healthy eating choices. The quantitative data were collected through structured questionnaire from 320 participants. The data were analyzed by using structured equation modeling. The results revealed that consumers’ healthy eating choices are strongly linked to emotional and epistemic values. The study also found a positive relationship between conditional value and consumers’ healthy eating choices. In …

The Effect Of Risk Management Committee On Audit Fees: Malaysian Evidence, Masturah Malik, Rohami Shafie

DLSU Business & Economics Review

The global financial crises that have occurred in the past have caused a growing number of firms to establish a risk management committee (RMC) at their board level. By adopting 208 nonfinancial listed firms in Bursa Malaysia for the year end 2014, our study explores whether the establishment of an RMC and its attributes (having independent members, experts and female members) affect the audit fees charged towards the firms. Apart from the demand perspective of an audit, the study reports that independent members of the RMC are associated with higher audit fees. The result is derived from the basis that …

The Mediating Role Of Dividend Policy On The Impact Of Capital Structure And Corporate Governance Mechanisms On Firm Value Among Publicly Listed Companies In The Philippines, Rodiel C. Ferrer, Franklin S. Ramirez

DLSU Business & Economics Review

The mediating role of dividend policy on the impact of capital structure and corporate governance mechanisms on firm value was studied in this research. This study was conducted using the panel data of nonfinancial firms that were drawn from the firm’s financial statements and annual corporate governance report. The data were deracinated from the OSIRIS database, company website, and PSE Edge that were listed on the Philippine Stock Exchange for the years 2013 to 2016. To analyze the full model, the partial least squares–structural equation modeling approach was used with the statistical significance level of 0.05. With this, findings denuded …

Investigating The Effect Of Price Of Rubber Fluctuations On Stock Prices And Exchange Rates In Malaysia, Seuk Wai Phoong, Seuk Yen Phoong

DLSU Business & Economics Review

This paper examines the relationship between the stock price and nominal exchange rate in Malaysia to ascertain the significance of using rubber price as a correction mechanism. The Johansen cointegration test was employed to investigate the effects of linear combination and the relationships among the components in a multiple time series. A two-regime, intercept- adjusted Markov switching vector error correction model was also used to examine the parameters concerned. Rubber price is used as a correction mechanism. Because rubber is one of Malaysia’s main exports, using rubber price as a correction mechanism may affect the country’s economy. The results of …

Terrorist Attacks, Managerial Sentiment, And Corporate Disclosures, Wen Chen, Haibin Wu, Liandong Zhang

Research Collection School Of Accountancy

This study investigates the effect of managerial sentiment on corporate disclosure decisions. Using terrorist attacks in the United States as adverse shocks to managerial sentiment, we find that firms located in the metropolitan areas attacked issue more negatively biased earnings forecasts. The effect is stronger for firms with higher operating uncertainty and firms with younger, inexperienced, or less confident executives and it is weaker for firms located in states with increasing violent crime rates. A potential alternative explanation is that managers could strategically bias earnings forecasts downward and attribute the poor performance to terrorist attacks. To address this issue, we …

Digital Innovation: A Catalyst And Enabler Of Achieving Business Sustainability, Clarence Goh, Gary Pan, Poh Sun Seow, Shankararaman, Venky

Research Collection School Of Accountancy

Today, many companies are actively incorporating sustainability principles into their business strategies. This movement is likely to have resulted from an ongoing shift in the demands and behaviours of customers, employees, partners, governments, investors and other stakeholders that expect companies to act with integrity and in a way that benefits wider society. The emphasis on achieving sustainability goals has led to increasing adoption of “triple bottom line”, which suggests that companies ought to pay attention to more than just the bottom-line, but also measure their environmental and societal impacts that may help to achieve long-term business growth. Typically, companies with …

Preparing Accountants Of The Future: A Programme In Accounting Data And Analytics, Poh Sun Seow, Clarence Goh, Gary Pan

Research Collection School Of Accountancy

The accounting profession is rapidly evolving due to technological innovations. Technologies such as the Internet of things, smart sensors, cloud computing, robotics, and artificial intelligence are combining to disrupt the way that businesses operate. It is predicted that, over the next decade, information technology (IT) will significantly transform the accounting profession.

Embracing Digital Transformation In Accounting And Finance, Poh Sun Seow, Clarence Goh, Gary Pan, Melvin Yong, Joanna Chek

Research Collection School Of Accountancy

Digital transformation involves the integration of digital technologies and business processes. Recent developments in digital technologies have provided organisations with the tools to embark on digital transformation encompassing a wide range of business processes and activities. Organisations that can leverage on technology to digitally transform themselves stand to put themselves at a significant competitive advantage relative to their competitors.

Future-Ready Accountant: Upskilling And Life-Long Learning In The Age Of Digital Transformation, Yuanto Kusnadi, Gary Pan

Research Collection School Of Accountancy

Upskilling and life-long learning are two key phrases that Education Minister Lawrence Wong highlighted in his speech at the Straits Times Education Forum 2021. The rapid emergence of digital technologies has disrupted many industries, including accountancy sector. While accounting jobs will continue to exist and grow, the way that accounting work is carried out is no longer the same. Accounting functions are increasingly relying on digital technologies to enable their work. For instance, data analytics is deployed in audit and forensics to detect irregular patterns in accounting transaction. Machine learning algorithms are used to sharpen forecasting models to predict sales …

Repatriation Taxes, Internal Agency Conflicts, And Subsidiary-Level Investment Efficiency, Harald J. Amberger, Kevin S. Markle, David M. P. Samuel

Research Collection School Of Accountancy

Using a global sample of multinational corporations (MNCs) and their foreign subsidiaries, we find that repatriation taxes impair subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central management of the MNC and the manager of the foreign subsidiary being the driver, we show that this effect is concentrated in subsidiaries with high information asymmetry and in subsidiaries that are weakly monitored. Quasi-natural experiments in the U.K. and Japan establish a causal relationship for our findings and suggest that a repeal of repatriation taxes increases subsidiary-level investment efficiency while reducing the level of investment. Our paper provides timely empirical …

Audit Firms’ Response To Audit Failures: Evidence From Partner Resource Reallocation, Elizabeth Cowle

Graduate Theses and Dissertations

I investigate whether audit firms reallocate partner resources following restatement announcements and, consequently, whether a supply-side response is beneficial in mitigating the previously documented implications of realized audit failures. I find a positive association between prior period restatement announcements and the year-over-year percentage change in the number of engagement partners allocated to a local audit office. Further analysis suggests that a supply-side response is beneficial in mitigating the persistence of low-quality audits and lost market share. However, I also find some evidence suggesting that the reallocation of partner resources can be detrimental to audit quality at offices from which partners …

The First Sign: Detecting Future Financial Fraud From The Ipo Prospectus, Lisa Spadaccini Anderson

Graduate Theses and Dissertations

In this study, I examine whether it is possible to predict future financial statement fraud using disclosure content prior to the fraud. Specifically, I employ a machine learning algorithm to construct a unique measure based on the lexical cues embedded within a firm’s first public disclosure, the Management’s Discussion and Analysis section of the S-1 filing, during the Initial Public Offering process. I use this measure to predict whether a firm that is not already committing fraud will commit fraud within five years of the Initial Public Offering (IPO) that results in an Accounting or Enforcement Release (AAER). I find …

Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae B. Kim

Research Collection School Of Accountancy

Given the adverse effect on their welfare, managers are reluctant to disclose bad news in a timely fashion. We examine the effect of managers' pay duration on firms' voluntary disclosures of bad news. Pay duration refers to the average period that it takes for managers' annual compensation to vest. We hypothesize and find that pay durations can incentivize managers to provide more bad news earnings forecasts. This result holds after controlling for the endogeneity of pay duration. In addition, we find that the effect of pay duration is more pronounced for firms with weaker governance and with poorer information environments, …

Linguistic Tone Of Management Discussion And Analysis Disclosures And The Municipal Debt Market, Kevin T. Rich, Brent L. Roberts, Jean X. Zhang

Accounting Faculty Research and Publications

Purpose

As the management discussion and analysis (MD&A) section contains discretionary narrative disclosures regarding a government's yearly financial changes and status, the authors investigate several municipal debt market consequences of linguistic tone within these disclosures.

Design/methodology/approach

The authors textually analyze municipal MD&As with Linguistic Inquiry and Word Count (LIWC) software and develop narrative tone measures based on existing financial-specific dictionaries. Using a final sample of 446 municipal bond issuances from 2012 to 2016, the authors modify the current bond regression models to examine the association between MD&A disclosure tone and future bond interest costs or rating disagreements.

Findings

This study’s …

Assessing Equity Based Mutual Funds And Stock Market Indices In India Using The Engle-Granger Cointegration Technique, Neha Gupta, Pooja Mathur, Satyendra P. Singh

DLSU Business & Economics Review

Mutual funds are one of the most suitable investment alternatives for common investors. Mutual funds are affordable, professionally managed, transparent, and at the same time, offer a wide gamut of schemes to invest in. They can generate superior returns and, at the same time, reduce risk through the diversification of the portfolio. Out of various schemes offered by mutual funds, equity funds are quite popular among investors because of their ability to generate higher returns. They not only generate higher returns but also sometimes beat the market. As the portfolio of equity-based mutual funds consists of equity shares, the movement …