Accounting Commons^™

Price Shocks, News Disclosures, And Asymmetric Drifts, Hai Lu, Kevin Wang, Xiaolu Wang

Research Collection School Of Accountancy

Motivated by investor disagreement and corporate disclosure literatures, we examinehow stock price shocks affect future stock returns. We find that both large short-termprice drops and hikes are followed by negative abnormal returns over the subsequent year,consistent with the conjecture that price shocks are useful indicators of inter-temporalspikes in investor disagreement and investor opinion converges gradually. The asymmetricdrifts, return continuation for negative price shocks versus return reversal for positive ones,are in sharp contrast to the general findings of symmetric drifts in corporate event studies.Moreover, price shocks associated with public news events are followed by significantlyweaker downward drifts, suggesting that news disclosures …

Accounting Challenge App: An Interview With Ceeman Champions 2013, Poh Sun Seow, Suay Peng Wong

Research Collection School Of Accountancy

No abstract provided.

Survey On The Role Of Investor Relations In The Modern Day Corporation, Andrew Lee

Research Collection School Of Accountancy

The Investors Relations Professionals Association (Singapore) (IRPAS), incollaboration with the School of Accountancy at Singapore Management University(SMU) and the Singapore Exchange (SGX), embarked on this study in March 2013with the objective of achieving a better understanding of the role of investor relations(IR) in today’s modern corporation as well as the role of IRPAS in further developingthe investor relations profession in Singapore. The study aimed to provide insights into the structure and organisation of the IRfunction as well as the roles and responsibilities of Investor Relations Officers (IROs)in SGX-listed companies. An online questionnaire survey was administered in August 2013 to the …

The Role Of Investor Relations In The Modern-Day Corporation, Andrew Lee, Jiwei Wang

Research Collection School Of Accountancy

No abstract provided.

Lack Of Timeliness, Noise And Transitory Components In Earnings As Explanations For The Apparent Decline In The Value Relevance Of Earnings, L. Dwight Sneathen

Accountancy: Faculty Publications

Prior studies identify three factors that contribute to the low contemporaneous association between returns (prices) and earnings: lack of timeliness of earnings capturing value relevant information, noise in earnings, and transitory elements in earnings. This study seeks to identify whether these factors contribute to the observed inter-temporal decline in the contemporaneous association between returns (prices) and earnings documented in recent literature. Prior studies do not explicitly examine the affect of these factors on the inter-temporal decline, and the extant evidence is mixed. Empirical evidence presented here indicates that lack of timeliness of earnings and value-irrelevant noise in earnings have increased …

Economic Effects Of Sox Section 404 Compliance: A Corporate Insider Perspective, Cindy Alexander, Scott Bauguess, Gennaro Bernile, Alex Lee, Jennifer Marietta-Westberg

Research Collection Lee Kong Chian School Of Business

We use survey responses from 2,901 corporate insiders to assess the costs and benefits of compliance with Section 404 of the Sarbanes-Oxley Act. The majority of respondents recognize compliance benefits, but they do not perceive these benefits to outweigh the costs, on average. This is particularly true among smaller companies where the start-up costs are proportionately larger. However, the perceived efficiency of compliance increases with auditor attestations, years of compliance experience, and after the remediation of a material weakness. Notably, the perceived effects of compliance depend largely on firm complexity, but are mostly unrelated to firm governance structure.

Financial Reporting Quality Of Chinese Reverse Merger Firms: The Reverse Merger Effect Or The China Effect?, Kun-Chih Chen, Qiang Cheng, Ying Chou Lin, Yu-Chen Lin, Xing Xiao

Research Collection School Of Accountancy

In this paper, we examine why Chinese reverse merger (RM) firms have lower financial reporting quality. We find that while U.S. RM firms have similar financial reporting quality as matched U.S. IPO firms, Chinese RM firms exhibit lower financial reporting quality than Chinese ADR firms. We further find that Chinese RM firms exhibit lower financial reporting quality than U.S. RM firms. These results indicate that the use of RM process is associated with poor financial reporting quality only in firms from China, where the legal enforcement is weaker than U.S. In addition, we find that compared to Chinese ADR firms, …

Counterparty Responses To Managerial Overconfidence, Paul Hribar, Jaewon Kim, Ryan Wilson, Holly I-Hwa Yang

Research Collection School Of Accountancy

Existing research links CEO overconfidence to a number of corporate decisions including overinvestment, external acquisitions, and earnings management. These findings raise the question of whether counterparties distinguish between differences in CEOs, and how they respond to it. We focus on two key counterparties – auditors and credit rating agencies – and examine whether audit fees and credit ratings are affected by CEO overconfidence. We find a positive association between audit fees and CEO overconfidence, suggesting that auditors exert more effort or increase the risk premium associated with auditing firms with more overconfident CEOs. We also find a significant negative association …

Management Forecast Credibility And Underreaction To News, Jeffrey Ng, Irem Tuna, Rodrigo Verdi

Research Collection School Of Accountancy

In this paper, we first document evidence of underreaction to management forecast news. We then hypothesize that the credibility of the forecast influences the magnitude of this underreaction. Relying on evidence that more credible forecasts are associated with a larger reaction in the short window around the management forecasts and a smaller post-management forecast drift in returns, we show that the magnitude of the underreaction is smaller for firms that provide more credible forecasts. Our paper contributes to the literature by providing out-of-sample evidence of the drift in returns documented in the post-earnings-announcement drift literature, with the credibility of the …

Proposed Statement On Standards For Attestation Engagements, Framework For Performing And Reporting On Compilation And Review Engagements, November 26, 2013,Comments Are Requested By May 2, 2014; Exposure Draft (American Institute Of Certified Public Accountants), 2013, November 26, American Institute Of Certified Public Accountants. Accounting And Review Services Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Omnibus Proposal, Proposed Revised And New Interpretations, November 26, 2013 Comments Are Requested By January 27, 2014, Exposure Draft (American Institute Of Certified Public Accountants), 2023, November 26, American Institute Of Certified Public Accountants. Professional Ethics Executive Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Comment Letters On Proposed Statement On Standards For Attestation Engagements, Framework For Performing And Reporting On Compilation And Review Engagements, November 26, 2013, American Institute Of Certified Public Accountants. Accounting And Review Services Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Comment Letters On Proposed Statements On Standards For Accounting And Review Services, Preparation Of Financial Statements, Compilation Engagements, Association With Financial Statements, October 23, 2013, American Institute Of Certified Public Accountants. Accounting And Review Services Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

A Discussion Of Ethics In Relation To Business And Non-Business Students, Casey Mejeur

Honors Theses

In recent years, society has seen a major shift when it comes to the importance of ethical behavior, and also in what constitutes ethical behavior. One of the biggest reasons for this shift is because of scandals in the last couple of decades (ex. Enron). As the public loses trust in upper management because of these scandals, a greater emphasis is placed on the importance of ethics. This paper discusses ethics in relation to business majors and how their behaviors carry over into the workforce.

The thesis begins by determining different sources of ethical behavior, and what may drive people …

Proposed Statements On Standards For Accounting And Review Services, Preparation Of Financial Statements, Compilation Engagements, Association With Financial Statements, October 23, 2013, Comments Are Requested By May 2, 2014; Exposure Draft (American Institute Of Certified Public Accountants), 2013, November 23, American Institute Of Certified Public Accountants. Accounting And Review Services Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Loan Loss Reserves, Regulatory Capital, And Bank Failures: Evidence From The Recent Economic Crisis, Jeffrey Ng, Sugata Roychowdhury

Research Collection School Of Accountancy

No abstract provided.

Linking Effective Whole Life Cycle Cost Data To Parametric Building Information Models Using Bim Technologies, Dermot Kehily, Trevor Woods, Fiacra P. Mcdonnell

Conference papers

Abstract ̶ This paper demonstrates the capabilities of BIM (Building Information Modeling) in leveraging Whole Life Cycle Cost (WLCC) data requirements to perform WLCC calculations and produce WLLC estimates. The research determines the extent to which WLCC data, such as time, interest rates, escalation rates and real costs can be attached to parametric BIM data to be used effectively to create speedier and more accurate real-time WLLC analysis. Without incorporating WLCC data in the BIM, a complete picture of a construction project’s WLCC cannot be formed from the default outputs of the model. BIM 5D applications such as CostX utilise …

Zombie Board: Board Tenure And Firm Performance [Summary Of Paper], Sterling Huang

Research Collection School Of Accountancy

In my paper, Zombie Boards: Board Tenure and Firm Performance, which was recently made publicly available on SSRN, I empirically investigate how board tenure is related to firm performance and corporate decisions, holding other firm, CEO, and board characteristics constant. I find that board tenure has an inverted U-shaped relation with firm value, and that this curvilinear relation is reflected in M&A performance, financial reporting quality, corporate strategies and innovation, executive compensation, and CEO replacement. The results indicate that, for firms with short-tenured boards, the marginal effect of board learning dominates entrenchment effects, whereas for firms that have long-tenured …

60% Cash Payout Or 400% Pic Claim? Which Is Better? (Part 2 ), Teng Aun Khoo, Clement Kai Guan Tan

Research Collection School Of Accountancy

How an organisation can best optimise the benefits of the Productivity and innovation Credit (PIC) scheme offered by the Singapore government to boost productivity and innovation. Part 1 as published September 2013.

The Impact Of Having Fewer Accounting Firms In The Auditing Profession–A Work In Process, Benjamin V. Titera, Dr. Jeff Wilks

Journal of Undergraduate Research

As time moves on, the number of accounting firms has decreased and the lengths of the remaining firm’s names have increased. Firms such as Arthur Anderson, Coopers & Lybrand, Price Waterhouse, Touche Ross, KPMG, Ernst & Young, Peat Marwick International, Klynveld Main Goerdeler, and Laventhol & Horwath have either evolved or disappeared. Ten years ago, it was the Big 8, by 1993, it was the Big 6, in 2001, it was the Big 5, and today it is the Big 4.