Digital Commons Network^™

Expanded Tax Incentives For Energy-Efficient Construction And Improvements, Martin A. Goldberg, James N. Mohs

Accounting Faculty Publications

The Inflation Reduction Act of 2022 (the Act), included an array of tax-law changes that may not have gotten the attention they deserve.

There are several reasons why for many these changes may have been under the radar. First, as part of a much larger legislative package, much of the attention has been given to the ongoing political debates rather than individual provisions. In fact, the Act is part of a larger political saga. It's a scaled-down version, and immediate successor, to the Build Back Better Act which passed in the House of Representatives in 2021 but failed to pass …

Current Trends In Corporate Tax Inversions, James N. Mohs, Martin A. Goldberg, Rajendra Shrestha

Accounting Faculty Publications

The objective of this paper is to describe how changes in corporate tax rates affect the relocation of Corporations to lower tax jurisdictions. Historically, there was a direct correlation between high tax rates and the relocation of Corporations to lower tax jurisdictions. By further examining the relationships that tax rate cuts may have on future onshoring relocations and how changes in government tax policies will affect the relocation of multinational corporations to avoid or minimize tax liabilities. This paper extends the work of Mohs, Goldberg, Butler, and Heath (2016), which noted that there is a correlation between divergent tax rates. …

Planning Strategies Under Recent Tax Law Changes, Martin A. Goldberg, James N. Mohs

Accounting Faculty Publications

In the days when it was more common to see major stand-alone tax reform legislation, practitioners would devote large amounts of time to understanding tax law changes and formulating how these changes affected tax planning strategies. Now that we often see tax law changes peppered piecemeal into larger pieces of legislation, they often go under the radar. This means that tax planning opportunities may be missed.

Tax law changes that have appeared in just the past year provide numerous instances of tax planning strategies that warrant attention.

The Effects Of Venture Capital Network Centrality On Earnings Management And Profitability Of Portfolio Company: Evidence From The U.S. Market, Yosavee Niranvichaiya, Sorasart Sukcharoensin

DLSU Business & Economics Review

Based on a sample of 788 U.S. venture capital-backed IPO companies from 2006 to 2015, this research evaluates the impact of network centrality, venture capital (VC), and earnings management on the future profitability of VC-backed portfolio companies. The results suggest that companies backed by VCs with higher network centrality or that are “more centralized” are likely to have better future profitability after an IPO, even with the use of accrual-based earnings management.

The Impact Of Audit Technology On Audit Task Outcomes: Evidence For Technology-Based Audit Techniques, Marc Eulerich, Adi Masli, Jeffrey Pickerd, David A. Wood

Faculty Publications

As audit technology becomes more widespread, practice and academia are raising concerns about the costs and benefits of these technologies. We examine how internal auditors use technologybased audit techniques (TBATs) and how TBATs impact the efficiency and effectiveness of their audits. We use two surveys and interviews of individual auditors and chief audit executives (CAE) to examine their perceptions of TBATs. Auditors perceive TBATs as beneficial. Specifically, an increase in the use of TBATs is associated with completing more audits, finding more risk factors, providing more recommendations, and decreasing audit days. However, CAEs also perceive TBATs to be costly. An …

The Development Of The Process Mining Event Log Generator (Pmelg) Tool, Steven R. Hawkins, Jeffrey Pickerd, Scott L. Summers, David A. Wood

Faculty Publications

Process mining is an emerging technology that allows users to visualize all potential variations of business processes within an organization. It holds significant potential for impacting the field of accounting. However, training professionals and students in its use is challenging due to a lack of event data applicable to accounting and auditing scenarios. To address this issue, we developed an easy-to-use tool called the Process Mining Event Log Generator (PMELG) for generating process mining data files for the order-to-cash process. With the PMELG tool, users can create realistic datasets that incorporate key accounting and auditing concepts, such as segregation of …

Language Matters: Evaluating How Linguistic And Visual Differences In Financial Documents Impact Financial Reporting In Hospitals, Alicia Irwin

Theses and Dissertations--Accountancy

Hospital financial assistance policies (FAPs) should inform uninsured and under-insured patients about options available to assist with their medical expenses. However, language and visual rhetoric variations in these documents may deter otherwise qualified patients from applying to programs meant to relieve their financial obligations. This project explores how visual rhetoric and linguistic differences such as tone and readability, in financial assistance policy documents may influence community benefit reporting in hospitals as a consequence of patient engagement in the application process.

Visual rhetoric and design, as well as linguistic style variation can have a profound impact on program utilization and financial …

Social Ties Across Audit Offices And Audit Quality, Wenyin Li

Theses and Dissertations--Accountancy

This dissertation explores the audit consequences of social ties across audit offices. Although recent studies have demonstrated the importance of auditors’ social ties in auditor performance, little is known about the role of social ties across audit offices in facilitating knowledge sharing within audit firms and their impact on audit quality. To fill this gap, this study employs the Facebook Social Connectedness Index to capture social ties across audit offices within the same audit firm. Drawing upon the organizational learning literature and social network literature, I predict and find that audit office-level social ties improve audit quality. In addition, the …

How Emerging Technologies Are Reshaping Audit Success Factors, Yueqi Li

Legacy Theses & Dissertations (2009 - 2024)

The external audit profession faces a rapidly changing environment due to innovative and intelligent technologies. For example, traditional external auditors are challenged to perform cybersecurity related tasks and conduct remote audits. Today, external audits are not only performed on financial statements and IT controls, but also on Artificial Intelligence (AI) systems to ensure compliance with laws and ethical standards, and technical robustness. To address these emerging trends of technology and their impact on the audit profession, this dissertation focuses on three research questions: 1) What affects professional auditors’ and accounting students’ performance in cybersecurity-related tasks? 2) How are changes from …

Directory Of Accounting Faculty, Academic Year 2023-2024, 50th Year, James R. Hasselback

Individual and Corporate Publications

No abstract provided.

Small Retail Business Strategies Used To Prevent Employee Fraud In North Carolina, Jourdan Mariah Gayden

Walden Dissertations and Doctoral Studies

Fraud could result in adverse business outcomes for small business owners. Small business owners are concerned with preventing fraud to increase the financial stability of small businesses. Grounded in the fraud triangle theory, the purpose of this qualitative multiple-case study was to explore strategies small business owners use to prevent and detect fraud in their businesses. Participants included five small business owners in North Carolina who successfully implemented strategies to prevent and detect fraud. Data were collected using semistructured interviews and a review of company documents. The data were analyzed using thematic analysis, which yielded four themes: monitoring, contractual agreements, …

Disclosure Regulation: Past, Present, And Future, S.P. Kothari, Liandong Zhang, Luo Zuo

Research Collection School Of Accountancy

This monograph provides an overview of the theories of disclosure regulation and recent developments in the disclosure regulation literature. We organize our discussion around three basic questions. First, why do we need to regulate corporate disclosure in the financial market? Second, which theories explain the current state of disclosure regulation? Third, what are the economic consequences of disclosure regulation? In exploring the third question, we discuss several examples of disclosure regulation related to information production, dissemination, and presentation. Then, we provide an overview of the current debate on mandating environmental, social and governance (ESG) disclosure and reporting. Finally, we conclude …

Information Sharing Between Mutual Funds And Auditors, Ole‐Kristian Hope, Pingui Rao, Yanping Xu, Heng Yue

Research Collection School Of Accountancy

This paper examines whether there is information sharing between mutual funds and their auditors about the auditors’ other listed firm clients. Using data from the Chinese market, we find that mutual funds earn higher profits from trading in firms that share the same auditors. The effects are more pronounced when firms have a more opaque information environment and when the audit partners for the fund and the partners for the listed firm share school ties. The evidence is consistent with information flowing from auditors to mutual funds, providing mutual funds with an information advantage in firms that share the same …

Trust And Contracting: Evidence From Church Sex Scandals, Gilles Hilary, Sterling Huang

Research Collection School Of Accountancy

Firms located in communities in which people are, on average, more trusting enjoy some benefits in terms of the power of CEO contracts. We present two pieces of empirical evidence to support this claim: (1) higher average trust in a county is associated with “flatter” executive contracts and (2) when an exogenous shock occurs (such as a scandal involving an important social institution), both trust and contracting move in similar directions. We obtain the first result in a panel specification and the second in a “difference-in-difference” specification that uses the revelation of sex scandals involving the Catholic Church across different …

Can Honesty Reminders Reduce Dishonesty In Budgetary Slack?, Wilfred W. H. Cheng, Chee Yeow Lim, Chi Kwan Yuen

Research Collection School Of Accountancy

This study investigates the effect of honesty reminders on budgetary slack. Based on self-concept maintenance theory, the authors posit that honesty reminders can reduce budgetary slack by making people more aware of their own standards of honesty, resulting in more honest behavior. Using an experimental research design, the authors find evidence that honesty reminders reduce budgetary slack. The authors also find that although penalties can similarly reduce budgetary slack, they tend to cause distrust and resentment from subordinates. Therefore, honesty reminders may be a less costly method than penalties for reducing budgetary slack.

Internal Control Strategies To Limit Nonprofit Organization Fraud And Embezzlement Costs., Ralston K. Tracey

Walden Dissertations and Doctoral Studies

AbstractEmployee intent to commit fraud and embezzlement costs has the potential for adverse business outcomes. Nonprofit leaders are concerned with employee fraud and embezzlement costs as it is the main predictor of employee wrongdoing and increase the chances of their organization's failure. Grounded in fraud triangle theory, the purpose of this qualitative multiple-case study was to explore internal control strategies nonprofit leaders use to limit fraud and embezzlement costs. The participants were eight leaders from four nonprofit organizations in the Southeastern United States who successfully used strategies to prevent fraudulent financial losses in their organizations. Data were collected from semistructured …

Hamilton Vs. Jefferson In Supreme Court Direct Tax Jurisprudence, Joshua Cutler

Accountancy Faculty Publications and Presentations

Increasingly frequent calls for a wealth tax in some form highlight the importance of understanding whether such a tax would be considered an unconstitutional “direct tax” if not apportioned according to population. The definition of direct tax was left deliberately vague at the Constitutional Convention, and consequently its meaning has been shaped through battles between the opposing political philosophies represented by Alexander Hamilton and Thomas Jefferson. Hamilton and his allies prioritized an energetic national government with taxing powers adequate to support its functions and unite the states; had great respect for tradition, precedent, and practical experience; and preferred a broad …

Listed Private Equity Returns: The Forecasting Power Of Premiums And Discounts, Daniel Krasemann

CMC Senior Theses

In this paper, I assess the ability of premiums and discounts to predict future listed private equity returns. I hypothesize that the premiums and discounts of the net asset value of the listed private equity funds with monthly lags hold forecasting power. I use four distinct listed private equity indices and their respective NAV P/D values for my research. To ensure my analysis is realistic in scope, I incorporate a variety of macroeconomic variables that have been proven to influence listed private equity returns. I structure my time-period analysis around the 2008-09 financial crisis. I generally find that a two-month …

Executive Option Mix And Firm Litigation Risk, Andrew Cohen

CMC Senior Theses

Compensating executives with stock options creates incentives for executives and aligns their goals with shareholders. When examining specific components of equity-based compensation, stock options have a larger incentive effect on executives compared to stock awards as options are priced as a function of stock volatility. Since the option incentive effect is more profound than the stock incentive effect, executives may take on more risk. The relationship between firm risk and litigation can be demonstrated by the pricing of directors’ and officers’ liability insurance, which protects them from the costs of litigation. The purpose of this study is to examine the …

The Joint Effect Of Mindsets And Consequence Awareness On Task Performance, Melinda F. Ammon

Honors Undergraduate Theses

Auditors face strong incentives to execute tasks efficiently and meet deadlines; these conditions are both conducive to – and rewarding of – implemental mindsets. However, an implemental mindset may deprioritize careful analysis and thoughtful decision-making, leading to suboptimal performance and audit quality. Conversely, deliberative mindsets promote critical thinking and open-mindedness – and research suggests auditors in a deliberative mindset perform complex tasks more effectively than auditors in an implemental mindset. Additionally, auditors encounter frequent reminders about the consequences of audit failures. This study examines how these factors (i.e., mindsets and consequence reminders) jointly influence auditors' performance on complex tasks. I …

Circular Economy To The Rescue? The U.S. Corporate Disclosure Response To The Plastic Crisis, Wioleta Olczak, Dennis M. Patten, Hyemi Shin

Accounting Faculty Research and Publications

Media attention to the world’s growing plastic crisis exploded in 2018, almost certainly increasing social exposures for companies heavily involved in the material’s manufacture or use. Relying on arguments from media agenda setting theory (Brown & Deegan, 1998), we explore how a sample of large U.S. plastic manufacturers and users responded to the crisis in their standalone CSR reports, with particular emphasis on their use of circular economy terminology to frame that response. Circular economy ideas have been gaining traction with governmental units, non-governmental organisations, and academic researchers, and like the plastic crisis, are seeing substantially increased coverage in media …

The Impact Of Private Equity Investment On The Market Performance Of Listed Companies On The A-Share Market In China, Mengyu Zhan, Sorasart Sukcharoensin

DLSU Business & Economics Review

This study aims to analyze all the Chinese Initial Public Offerings (IPOs) during 2010–2014 and follow their performance for five years. The study particularly tests the competing hypotheses on the role of Chinese private equity. The sample includes 916 firms that operate continuously for five years after IPOs to provide additional evidence on long-term performance. The results using the BHARs method indicate that private equity-backed IPOs tend to have significantly higher initial returns than non-PE-backed ones during three years of listing, supporting the screening and monitoring effect hypothesis in China’s capital market. After three years, the market performance of PE-backed …

Audit Report Timeliness In Local Governments: An Observation Of North Carolina Governmental Units’ Response To State-Imposed Deadlines And Consequences, Amber N. Daniels

Doctor of Business Administration Dissertations

To provide citizens with transparent financial information regarding the health of their respective districts, local government unit leaders must furnish governmental audit reports in a timely manner. Further, for management to effectively implement auditor suggestions for improvements, leaders must have accessibility to timely audited information. Many governmental units in the state of North Carolina have demonstrated significant lags in reporting timeliness and often miss state-mandated deadlines. Therefore, this research utilized ordinary least-squares regression to estimate the effects the variables representing report message and managerial competency, accountability, and audit environment groups had on the time required for each unit to file …

Nonprofit Leader Strategies For Revenue Growth And Financial Sustainability, William David Woods

Walden Dissertations and Doctoral Studies

Nonprofit leaders must ceaselessly endeavor to become more entrepreneurial by accumulating strategies for growing organizational revenue and promoting financial sustainability when charitable contributions cannot fund their business operations. The failure to obtain charitable contributions can lead to nonprofit closure. Grounded in behavioral portfolio theory, the purpose of this qualitative single case study was to explore strategies a leader of a small Wisconsin nonprofit used to increase revenue and financial sustainability when charitable contributions were insufficient to finance business operations. Data collection included semistructured interviews; organizational documents and reports; financial records and reports; social media; and internet reports. Data were analyzed …

External Analysis Of Avis Car Rental: Impact Of External Factors On Business Operations, John R. Milton

Undergraduate Theses, Professional Papers, and Capstone Artifacts

No abstract provided.

Source Credibility In The Community Service Of Financial Literacy For Indonesian Vocational School Students, Neneng Salmiah, Afred Suci, Rita Wiyati

ASEAN Journal of Community Engagement

This paper examines the credibility of source persons for community service projects in improving financial literacy for vocational school students in Indonesia. Improving financial literacy among Indonesian youth is a long-term effort that requires multi- collaboration between the government, financial institutions, educational institutions, NGOs, and other stakeholders. Despite its substandard position to Singapore, Myanmar, and Malaysia, Indonesia’s financial literacy proficiency has improved significantly—one of which—after being catalyzed by the government’s cooperation with higher education institutions through community service programs. However, amid these improvements, greater attention must be given to capital markets, whose literacy level is most deficient compared to the …

Incumbent Competition And Private Agenda, Anne Marie Go

DLSU Business & Economics Review

Consider two politicians who decide whether to follow what they believe the electorate wants or choose the option that secures their private gain. Policies are implemented when the politicians reach a unanimous decision. The electorate only rewards a politician when a policy is implemented or when the politician is the only one whose action coincides with the popular decision. The results show that if politicians have good decision-making abilities, sufficiently high payoffs in policy implementation—given moderate private agenda payoffs—push them to implement the popular policy. For very poor decision- making abilities, at sufficiently high policy rewards, politicians vote for the …

Income Recovery Of Thai Workers From The Covid-19 Pandemic, Athakrit Thepmongkol, Amornrat Apinunmahakul

DLSU Business & Economics Review

This paper examines how COVID-19 and the resultant lockdown affected Thai workers and how their income has recovered as of the end of 2020. We conducted three phases of telephone surveys to track the income dynamics of Thai workers during the months of May, August, and November 2020. The initial COVID-19 impact on Thai worker income was enormous and very broad. On average, Thai workers’ income fell by 47.03%, and 69.7% suffered such a loss. Over the six months survey period, most Thai workers had just begun to stabilize their income, but only a few were actually able to recover. …

Power Asymmetry In Ongoing Business Relationships, Mdarhri Alaoui Saâd, Amine Noureddine

DLSU Business & Economics Review

Firms enter into partnerships to improve their competitive position, create and appropriate superior value, and increase their effectiveness and efficiency. Although balanced relationships (in terms of power and equitable value sharing) between the two partners exist, many researchers argue that these ideal relationships are not the norm and that asymmetry of power and unequal distribution of benefits are a reality of current business-to-business relationships. This study examines how power asymmetry affects the relationship climate in general and partner attitudes and behaviors in particular. Specifically, this study focuses on the sources of power exercised and how these impact value creation appropriation, …

Cash Conversion Cycle And Investment Cash Flow Sensitivity, Ilker Yilmaz

DLSU Business & Economics Review

The purpose of this article is to investigate the effect of firms’ cash conversion cycle on their investments’ sensitivity to cash flows. Using the data of 167 energy companies from 2010 to 2019, we run dynamic panel regressions for the models based on the Euler equation. We employed a generalized method of moments (GMM) as the estimation technique. The analyses revealed two main results. The first is that there is investment cash flow sensitivity for the sample firms indicating the existence of financial constraints. The second is that the cash conversion cycle has a significant positive effect on investment cash …