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U.S. Gaap Financial Statements Best Practices In Presentation And Disclosure, 2015, 69th Edition; Accounting Trends & Techniques, American Institute Of Certified Public Accountants (Aicpa)

Accounting Trends and Techniques

No abstract provided.

What Do Institutional Investors Know And Act On Before Almost Everyone Else: Evidence From Corporate Bankruptcies, Elena Precourt, Henry Oppenheimer

Accounting Department Faculty Journal Articles

We analyze investment behavior of institutional managers who hold and trade shares of firms that file for bankruptcy. We find that during the five-year period preceding a bankruptcy filing, institutional investors (except those managing investment companies) are net buyers with a positive abnormal net number of shares traded during the period. Institutional managers start to sell shares of bankrupt firms sooner in some firms than in others; these earlier sales are of smaller firms with weaker operating performance, and lower equity risk. We do not find evidence that institutional stockholders trade strategically and avoid material price declines before they occur.

Performance Feedback In The Audit Environment, Lindsay Metcalfe Andiola

2015

This dissertation consists of three studies that investigate key elements related to performance feedback and effective coaching in the audit environment. The first study presents a framework based on prior research in the psychology and management literatures on the behavioral effects of performance feedback. This framework is then used to organize and synthesize the literature on feedback in the audit setting, and develops topics for further study.

The second and third studies are empirical investigations of performance feedback provided during the audit review process. The second study uses an experiential questionnaire to examine the perceptions of subordinate auditors based on …

The Impact Of Collective Intelligence And Honest Signaling On Fraud Brainstorming Effectiveness: A Sociometric Investigation Using Wearable Sensor Technology, Allen Hartt

2015

This dissertation investigates the impact of collective intelligence and honest signaling on the fraud risk brainstorming effectiveness of audit groups. Emerging research in psychology shows that collective intelligence, which captures the general ability of a group to perform a wide variety of tasks, is a strong predictor of group performance. Honest signals are nonverbal communication cues that are either so costly to make or difficult to suppress that they are reliable in signaling intent.

The first study of this dissertation provides a summary of extant literature examining collective intelligence and honest signaling, with an emphasis on those studies that have …

The Relationship Between Accounting Processes And Interpersonal Trust Within Organizations, Jace B. Garrett

2015

Trust is an increasingly critical determinant of organizational success. This dissertation consists of three studies investigating the relationship between firms’ accounting processes and interpersonal trust. Using survey data from Great Place to Work® Institute, the first study investigates the association between trust (i.e., employees’ trust in management) and three aspects of financial reporting: accruals quality, misstatements, and internal control quality. Results suggest that trust is associated with better financial reporting quality. However, these effects are not uniform across companies. Consistent with trust improving financial reporting quality through improved information production and information sharing, results suggest that trust is significantly associated …

10b5-1 Plans And Earnings Management By High-Level Executives, Joshua A. Thomas

CMC Senior Theses

Using historical firm financial and insider trading information, this paper examines whether high-level insiders manipulate earnings ahead of their own 10b5-1 equity transactions. The empirical evidence suggests that high-level executives appear to manipulate earnings through real activities such as abnormal discretionary expenditures and abnormal cash flows from operations to influence equity prices ahead of their own transactions under Rule 10b5-1. Evidence also suggests that executives appear to be unlikely to engage in earnings management through highly scrutinized means such as accruals. An interpretation of these results is that high-level executives may be using 10b5-1 plans as an offensive tool to …

Directory Of Accounting Faculty, Academic Year 2015-2016, 38th Edition, James R. Hasselback

Individual and Corporate Publications

No abstract provided.

The Effect Of Information Choice On Auditors’ Judgments And Confidence, Steven D. Smith, William B. Tayler, Douglas F. Prawitt

Faculty Publications

Previous research finds that individuals place more weight on information when they choose to obtain it than when they acquire it without explicit choice. We examine whether litigation risk and auditor experience influence auditors’ susceptibility to this information choice effect. In our experiment, auditor participants evaluate the likelihood of an inventory obsolescence issue for a hypothetical client subsidiary. We find that in a high litigation risk setting, less-experienced auditors weight information they choose to acquire more heavily than do less-experienced auditors who acquire the same information without choice. Further, we predict and find that auditors choosing to acquire information are …

An Examination Of How Entry-Level Staff Auditors Respond To Tone At The Top Vis-À-Vis Tone At The Bottom, Jeffrey Pickerd, Scott L. Summers, David A. Wood

Faculty Publications

Prior academic and practitioner literature argues that the ethical tone at the top of an organization is a key factor in establishing an effective internal control environment. Drawing on self-concept maintenance theory and in-group bias theory, we predict that entry-level staff auditors will disregard a company’s ethical standards unless they observe a strong ethical tone from both their partner (tone at the top) and their supervising senior (tone at the bottom). Also, we predict that staff auditors will be more influenced by the tone of their supervising senior than the partner when these two individuals provide conflicting tones. In a …

Them’S Fightin’ Words: The Effects Of Violent Rhetoric On Ethical Decision Making In Business, Joshua R. Gubler, Nathan P. Kalmoe, David A. Wood

Faculty Publications

Business managers regularly employ metaphorical violent rhetoric as a means of motivating their employees to action. While it might be effective to this end, research on violent media suggests that violent rhetoric might have other, less desirable consequences. This study examines how the use of metaphorical violent rhetoric by business managers impacts the ethical decision making of employees. We develop and test a model that explains how the use of violent rhetoric impacts employees’ willingness to break ethical standards, depending on the source of the rhetoric. The results of two experiments suggest that the use of violent rhetoric by a …

March Market Madness: The Impact Of Value-Irrelevant Events On The Market Pricing Of Earnings News*, Michael S. Drake, Kurt H. Gee, Jacob Thornock

Faculty Publications

Each year, the NCAA basketball tournament (March Madness) is a daytime distraction for millions of people, providing a largely exogenous shock to investor attention. We investigate whether March Madness influences the market response to earnings by diverting investor attention away from earnings news. We find that the price reaction to earnings news released during March Madness is muted. This result generally holds across several samples and additional analyses. We also find that the result is more muted for low institutional ownership firms, consistent with the effect being driven by less-sophisticated investors. Furthermore, we find that it takes the market 30 …

Short Sellers And The Informativeness Of Stock Prices With Respect To Future Earnings, Michael S. Drake, James N. Myers, Linda A. Myers, Michael D. Stuart

Faculty Publications

In this paper, we examine whether short interest improves the informativeness of stock prices with respect to future earnings. We find that short selling strengthens the relation between current returns and future earnings, especially in settings where short sellers are likely to possess an information advantage, such as when a firm’s information environment is weak or when analysts are highly optimistic about future earnings growth. Collectively, our results illustrate the important role that short sellers play in improving the extent to which current stock prices reflect information about future earnings and thus, in improving market efficiency.

When Does Pre-Ipo Financial Reporting Trigger Post-Ipo Legal Consequences?, Mary Brooke Billings, Melissa F. Lewis-Western

Faculty Publications

Prior research suggests that the fear of litigation precludes most managers from manipulating earnings in the initial public offering (“IPO”) setting. Yet, managers’ restraint is perhaps unwarranted: research has not yet linked instances of aggressive pre-IPO reporting to increased litigation risk. This paper investigates when aggressive IPO reporting triggers legal consequences. Examining 2,037 IPOs, we find that even when ex post evidence indicates the presence of earnings inflation, litigation is more likely to occur when investors have relied on the suspect earnings during the pricing process. Why might investors rely on some firms’ abnormal accruals when valuing the IPO and …

Historical Cost Measurement And The Use Of Dupont Analysis By Market Participants, Asher Curtis, Melissa F. Lewis-Western, Sara Toynbee

Faculty Publications

We investigate whether historical cost measurement of assets lowers the usefulness of DuPont analysis for investors. Because firms report assets at modified historical cost under US GAAP, accounting ratios can be biased upward when assets have appreciated. Thus, variation in asset turnover, which is the DuPont ratio most affected by asset measurement, can be due to both economic forces and measurement effects. We assess the extent of measurement effects using the average age of a firm’s assets and find that asset turnover ratios are higher and more persistent for firms with older assets. Forecast errors of asset turnover are associated …

Taking The Long Way Home: U.S. Tax Evasion And Offshore Investments In U.S. Equity And Debt Markets, Michelle Hanlon, Edward L. Maydew, Jacob Thornock

Faculty Publications

We empirically investigate one form of illegal investor-level tax evasion and its effect on foreign portfolio investment. In particular, we examine a form of round-tripping tax evasion in which U.S. individuals hide funds in entities located in offshore tax havens and then invest those funds in U.S. securities markets. Employing Becker’s (1968) economic theory of crime, we identify the tax evasion component by examining how foreign portfolio investment varies with changes in the incentives to evade and the risks of detection. To our knowledge, this is the first empirical evidence of investorlevel tax evasion affecting cross-border equity and debt investment.

Breastfeeding In The Philippine Workplace: What’S Wrong With The Right?, Emily Sanchez Salcedo

DLSU Business & Economics Review

There are four main differences between the Philippine and American statutes that promote breastfeeding. First, the Philippine law provides that lactation breaks should be compensated while the American law explicitly stated that employers are under no such obligation. Second, the Philippine law provides for “culturally appropriate lactation care and services” whereas majority of American states exempt breastfeeding from public indecency laws. Third, the Philippine law makes a conclusive statement that breastfeeding “enhances mother-infant relationship”. The American law wisely left such matter to individual realization. Fourth, the Philippine law puts the right of a mother to breastfeed on equal footing with …

Does Financial Cooperation Agreement Influence The Real Economy?: A Gmm Panel Data Approach On Asean+3 Countries, Md. Saifur Rahman, Mohamed Aslam, Wee-Yeap Lau, Farihana Shahari

DLSU Business & Economics Review

This study aims to investigate the influences and contributions of financial integration on real sectors in ASEAN+3 economies. It employs General Methods of Moment (GMM) technique and uses the proxies of financial integration and real economy from 1990 to 2012. The findings show that financial integration on real economy has positive effect, such as increasing government spending, reducing unemployment, and so forth. The finding has great implications for the regional economies. It is recommended that the policy makers improve the financial integration in order to develop the real economy.

Aicpa Audit Committee Toolkit : Not-For-Profit Entities, American Institute Of Certified Public Accountants. Audit Committee Effectiveness Center, Cna Financial Corporation

Guides, Handbooks and Manuals

No abstract provided.

Aicpa Audit Committee Toolkit : Government Organizations, American Institute Of Certified Public Accountants. Audit Committee Effectiveness Center, Cna Financial Corporation

Guides, Handbooks and Manuals

No abstract provided.

Tax Research Techniques, Robert L. Gardner, Dave N. Stewart, Ronald G. Worsham

Guides, Handbooks and Manuals

No abstract provided.

Cgma Exam Case Study Guide, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.

Adviser's Guide To Health Care, Volume 2: Consulting Services, Robert James Cimasi, Todd A. Zigrang

Guides, Handbooks and Manuals

No abstract provided.

The Reality Of Human Development In Iraq And Ways Of Treatment With An Indication Of Service Of Reality Environmental And, Haider Talib Musa

Muthanna Journal of Administrative and Economics Sciences

The human development the subject at the present time is one of the most important topics of concern to the community in any part of the world delayed human development efforts and lack of interest in singling does not affect them, but it also affects the march of an entire people and restrain progress, pushing for the dependence of policies and programs that are correct and rational to draw conclusions and recommendations Scientific efforts to promote and develop human development success of any society and its development depends basis primarily on the individual development of )healthy،educational subsistence(. interest in these …

Developments In Preparation, Compilation, And Review Engagements, 2015/16, American Institute Of Certified Public Accountants (Aicpa)

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

Tax Compliance: Ethical Orientation, Risk Perception And The Role Of The Tax Preparer, Ashley Beckett Soliz

Electronic Theses and Dissertations

In a voluntary tax system, taxpayers have an opportunity to avoid or evade paying taxes. The reasons for and the causes of noncompliance are expansive. One way to increase revenue to the government without increasing taxes is to focus on deterring tax evasion and tax underreporting. The purpose of this study was to examine the effects on tax compliance of the taxpayer’s ethical orientation and perceived financial risk, as well as the role of the tax preparer in the compliance decision. This research adds to the current tax compliance literature by investigating (in an experimental setting) the role of the …

The Prediction Of Future Earnings Using Financial Statement Information: Are Xbrl Company Filings Up To The Task?, Kelly Lawrence Williams

Electronic Theses and Dissertations

Financial statement data for large companies became available to the public in XBRL format starting in 2009 in the United States. Proponents of XBRL, along with the SEC, argue that XBRL filings offer several advantages over data provided by data aggregators, such as lower cost, faster availability, and broader coverage. The purpose of this study was to contribute to the combody of knowledge by investigating whether current XBRL company filings are useful in the prediction of future earnings and to attempt to interactively obtain the balances of 70 accounting concepts needed to create an earnings prediction model from a sample …

Active Cds Trading And Managers’ Voluntary Disclosure, Jae Bum Kim, Pervin K. Shroff, Dushyantk Umar Vyas, Regina Wittenberg Moerman

Research Collection School Of Accountancy

No abstract provided.

The Value Of Luxury Brand Names In The Fashion Industry, Tricia Wang

CMC Senior Theses

Brand names in the Fashion industry are often times perceived as overpriced and unreasonable. Nevertheless, the success of well-known luxury brands in the industry has been growing domestically and internationally at a breakneck pace. Forbes publishes an annual list on the top 100 most valuable brands annually using a formula of their own making. 8 out of these 100 brands are luxury fashion brands. Why are luxury fashion brands so coveted? It can’t only be because of humans’ desires to own superior goods or even for the sake of their egos. In this paper I will delve into the hidden …

Player Compensation And Team Performance: Salary Cap Allocation Strategies Across The Nfl, Max Winsberg

CMC Senior Theses

The National Football League’s salary cap constrains the available resources each franchise is allotted to spend on player personnel. I examine the effects of executive management’s compensation allocation strategies on team performance from 2006 to 2013. The findings suggest that spending more than the league-average on offensive lineman hurts overall team performance. Spending above the league average on both the offensive line and quarterback positions negatively affects offensive performance as well. This supports previous research stating that taking a superstar-approach to cap distribution negatively affects team performance. Furthermore, I find evidence of increased compensation inequality among players under the Collective …

Credit Ratings And Firm Litigation Risk, Huixian Xie

CMC Senior Theses

This paper looks at whether firms’ credit ratings are negatively affected by litigation risk after controlling for known factors that affect credit ratings. The conventional wisdom is that litigation risk and credit ratings have an inverse relationship. However, my hypothesis is that the inverse relationship will not be stable if the model of credit ratings has taken other factors into account. The methodology first constructs a model of litigation risk, and then regress the credit ratings on the measurement of litigation risk. Previous empirical research on litigation risk measurement uses industry proxies as indicators for litigation risk. In this paper, …