Digital Commons Network^™

Did Board Configuration Matter? The Case Of Us Subprime Lenders, Maureen I. Muller-Kahle, Krista B. Lewellyn

Management Faculty Publications

Research Question/Issue: The origins of the global financial crisis have been attributed to the combination of a housing price bubble and innovative financial instruments, as well as the lack of restraint by corporate executives and boards to engage in excessive risk-taking. The rise in subprime lending between 1997 and 2005 played a crucial role in inflating the housing price bubble. We take a unique dataset of US financial institutions heavily engaged in subprime lending and ask the following research question: Did board configuration play a role in determining whether a financial institution specialized in subprime lending?

Research Findings/Insights: We use …

Investigating The Relationship Between Governance Mechanisms And The Disclosure Of It Control Weaknesses, Basil Hamdan

Theses and Dissertations

The current research is concerned with exploring the quality of information technology (IT) control over financial reporting systems as reported under Section 404 of the Sarbanes-Oxley Act of 2002. More specifically, this dissertation examines the association between organizational governance mechanisms and the occurrence and subsequent disclosure of IT control weaknesses. Despite the adverse impact of IT control weaknesses on internal control quality and financial reporting reliability, research on IT controls in general and IT control weaknesses in particular remains largely anecdotal with limited reliance on theory. The current work proposes and tests an integrated theoretical model of the antecedents of …

Financial Reporting Fraud : A Practical Guide To Detection And Internal Control, Charles R. Lundelius

Guides, Handbooks and Manuals

No abstract provided.

A Neural Network Approach To Estimating The Allowance For Bad Debt, Donald Joyner

Theses and Dissertations

The granting of credit is a necessary risk of doing business. If companies only accepted cash, sales would be negatively impacted. In a perfect world, all consumers would pay their bills when they become due. However, the fact is that some consumers do default on debt. Companies are willing to accept default risk because the value of defaults does not exceed the value of the additional sales generated. This creates an issue in regards to the valuation of uncollectible accounts. In order for a company to disclose the true value of its accounts receivable, it must establish an allowance for …

Not-For-Profit Entities With Conforming Changes As Of March 1, 2011; Audit And Accounting Guide, American Institute Of Certified Public Accountants (Aicpa)

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

Ant Colony Optimization Approach For Stacking Configurations, Yijun Chen

Lingnan Theses

In data mining, classifiers are generated to predict the class labels of the instances. An ensemble is a decision making system which applies certain strategies to combine the predictions of different classifiers and generate a collective decision. Previous research has empirically and theoretically demonstrated that an ensemble classifier can be more accurate and stable than its component classifiers in most cases. Stacking is a well-known ensemble which adopts a two-level structure: the base-level classifiers to generate predictions and the meta-level classifier to make collective decisions. A consequential problem is: what learning algorithms should be used to generate the base-level and …

Auditor Tenure And Audit Quality, Li Zheng Brooks

LSU Doctoral Dissertations

I propose that audit quality is likely to increase with audit firm tenure due to a Learning Effect and decrease with audit firm tenure due to a Bonding Effect. The net impact of these two countervailing forces over audit firm tenure dictates whether the relationship between audit firm tenure and audit quality is a concave, convex, or linear function of audit firm tenure. When the Bonding Effect dominates the Learning Effect in the later (earlier) years of tenure, then audit quality is a concave (convex) function of audit firm tenure. Adopting the quadratic model to empirically estimate the audit firm …

Online Gaming: Prohibition Vs. Regulation, Andrew Montgomery

UNLV Theses, Dissertations, Professional Papers, and Capstones

Since online gaming began in 1995, the industry has been unsettled. Despite online gaming being viewed as illegal by the United States government, revenues generated from players in the U.S. grew consistently and rapidly from 1995 to 2006. U.S. lawmakers believed they clarified the legality issue by passing the Unlawful Internet Gambling Enforcement Act in 2006 (UIGEA); however, this legislation did little to discourage people in the U.S. from engaging in online gambling. U.S. lawmakers have long debated prohibition vs. regulation of the industry. Given the apparent ineffectiveness of online gaming prohibition via UIGEA, lawmakers favoring legalization and regulation of …

Structural Model Of Effects Of Cultural Factors On Escalation Of Commitment Through Antecedents, Agency, And Negative Framing Effects, Woo-Sik Danny Choi

UNLV Theses, Dissertations, Professional Papers, and Capstones

The purpose of this study was to identify and measure the effects of Hofstede‟s cultural factors on escalation of commitment for hospitality managers among American and Chinese managers. Typical cultural factors include power distance, uncertainty avoidance, individualism and collectivism, masculinity and femininity, and orientation. Escalation of commitment refers to making decisions in risky circumstances. First, the effect of cultural factors on escalation of commitment was measured through antecedents (mediator variables). Second, the first effect of antecedents on escalation of commitment was measured through agency and negative framing effects. Structural equation modeling (SEM) found significant relationships between cultural factors and mediator …

Auditor Reputation And Earnings Management: International Evidence From The Banking Industry, Kanagaretnam Kiridaran, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

We examine the relation between auditor reputation and earnings management in banks using a sample of banks from 29 countries. In particular, we examine the implications of two aspects of auditor reputation, auditor type and auditor industry specialization, for earnings management in banks. We find that both auditor type and auditor industry specialization moderate benchmark-beating (loss-avoidance and just-meeting-or-beating prior year’s earnings) behavior in banks. In addition, we find that once auditor type and auditor industry specialization are included in the same tests, only auditor industry specialization has a significant impact on constraining benchmark-beating behavior. In separate tests related to income-increasing …

Accounting In Economic Recovery And Reform, September 30-October 2, 2010, Columbus, Ohio, Accounting Hall Of Fame, Academy Of Accounting Historians

Accounting Hall of Fame Brochures

No abstract provided.

Continuous Controls Monitoring Can Help Defer Fraud, Sridhar Ramamoorti, Joseph Dupree

Accounting Faculty Publications

The biannual survey of the Association of Certified Fraud Examiners (ACFE) found that US organizations lose an estimated 7 percent of annual revenues to fraud. Based on corresponding United States GDP figures from the World Bank, this percentage indicates a staggering estimate of losses — around $994 billion — among U.S. organizations, despite increased emphasis on anti-fraud controls and recent legislation to combat fraud. As the survey suggests, almost every large and small organization is potentially susceptible to fraud risk, both internally from employee theft and corruption and externally by vendors and other third parties engaged in fraud against the …

Changing Legitimacy Narratives About Professional Ethics And Independence In The 1930'S Journal Of Accountancy, Diane Roberts

Accounting Historians Journal

The 1930s in the U.S. were marked by an economic crisis, governmental regulatory response, and a significant audit failure. This paper examines the profession's struggle for legitimacy during these times through its choice of narratives regarding professional ethics and independence as revealed in the national professional organization's monthly, the Journal of Accountancy. Initially ethics is a state-of-mind or narrative of character was used but transitioned to a more objectively determinable narrative of technique as the decade progressed. To counter governmental regulation, the profession attempted to shift the independence discourse away from regulation of accountants to regulation of client companies.

Tao Of Downfall: The Failures Of High-Profile Entrepreneurs In The Chinese Economic Reform, Wenxian Zhang, Ilan Alon

Faculty Publications

Through historical reviews and case studies, this research seeks to understand why some initially successful entrepreneurs failed in the economic boom of past decades. Among various factors contributed to their downfalls are a unique political and business environment, fragile financial systems, traditional cultural influences and personal characteristics. Notwithstanding that these factors should be further tested through empirical studies, those high-profile entrepreneurs are oblivious but essential actors in the grand theatre of China's economic transformation and their failures have contributed to the swift development of the Chinese entrepreneurship over the last 30 years.

Essays On Corporate Governance, Tih Koon Tan

Electronic Theses and Dissertations

This dissertation is composed by two essays that explore corporate governance issues in S&P firms. The first essay examines changes in corporate governance after a firm gets added to the S&P 500 index? Using firms added from 1994 to 2007, this paper examines how governance mechanisms change for these firms. Specifically, I look at both the overall governance and details on how each mechanism changes. I find that governance improves after being added to the index. Controlling for firm size, leverage, prior firm performance, and growth opportunities, the market reacts positively to governance improvements as a whole. In addition, changes …

The Correlation Between Financial Fraud And Economic Downturn, Karen Alyse Hyink

Theses

Throughout the 20th century, researchers studied financial fraud in order to better understand the factors, motives and environments that increase the occurrences of fraud. By studying these historical trends, modern governmental agencies and public organizations are able to more effectively detect and prevent financial fraud.

Economic climate directly influences the occurrence of fraud; specifically, it is during periods of economic downturn when organizations are more vulnerable to fraudulent attacks. While it has always been assumed that recessionary periods lead to an increase in fraudulent activities, the direct correlation between the two has been greatly understudied by researchers. This thesis is …

Not-For-Profit Entities With Conforming Changes As Of March 1, 2010; Audit And Accounting Guide, American Institute Of Certified Public Accountants. Not-For-Profit Organizations Committee

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

An Assessment Of Business Ethics: From The Classroom To The Workplace, Jenna Michelle Azbell

Honors Program Theses

This thesis will begin with an in-depth look at the major corporate scandals of Enron and WorldCom. After that, the thesis will describe the background history of business ethics in America, looking at how capitalism has evolved and shaped our business environment and sometimes influenced the decisions we make. A description of the legislative history involving business ethics will follow, including explanations of how laws such as Civil Rights Act of 1964 affected business ethics policies and practices in the United States, as well as the expansion of business ethics-related statutes including the recent Sarbanes-Oxley legislation that has changed business …

Turning A Small Residential Farm Into A Non-Profit Educational Organization, Thomas John Anderson

Agribusiness

This study was undertaken to determine whether Felicity’s Farm could become a non-profit organization for education. In order to determine the feasibility of turning Felicity’s Farm into a non-profit organization, interviews were conducted and financial statements were collected. In addition, a Certificate of Incorporation was completed based on the interview and financial data. It was concluded that Felicity’s Farm could become a non-profit organization; however, better organization of finances, fund-raising and the use of volunteers was recommended.

Sarbanes Oxley Act Of 2002: Will It Be Effective In Preventing Another Enron Scandal?, Scott W. Eichar

Senior Honors Theses

The Sarbanes-Oxley Act of 2002 (SOX) was introduced to Congress as a result of the deceit and fraud taking place at Enron in December of 2001. The three factors that led to the scandal were Enron’s weak internal control, misleading off-balance sheet entities, and conflicting interests between Enron’s employees and their chief auditor, Arthur Andersen. The provisions of SOX were established, in part, to strengthen internal control, require proper disclosure for special purpose entities, and eliminate conflicts of interests between a firm and its auditors. The purpose of this paper is to measure the effectiveness of these implementations to prevent …

Cue Usage In Financial Statement Fraud Risk Assessments: Effects Of Technical Knowledge And Decision Aid Use, Jean Lin Seow

Research Collection School Of Accountancy

This paper investigates the effects of technical knowledge and decision aid use on financial statement fraud risk assessments made by directors and students. More extreme fraud risk assessments are made when participants identify and process larger (smaller) numbers of diagnostic (non-diagnostic) factors, with technical knowledge driving diagnostic factor identification. Significant decision aid-technical knowledge effects are also found; decision aid use has a detrimental effect on high-knowledge directors while improving performance in inexperienced, low-knowledge students. These results suggest that although decision aids can afford gains in performance in inexperienced users, they can have unintended and/or paradoxical behavioural effects on experienced users.

Hedge Fund Fraud And The Public Good, Lydie Pierre-Louis

Economics, Law, and International Business

The current financial crisis resonates with every American, regardless of their connection to the securities markets. Many struggle to understand how and why the American financial and securities markets collapsed last year. In essence, why did the regulators fail to prevent the collapse? Government officials continue to analyze the relationship between the structural collapse of the markets and regulators’ limited jurisdiction over a class of entities whose transactions substantially impact the markets: hedge funds. Congress can no longer deny hedge funds’ detrimental impact on the financial and securities markets. The impetus for financial re-regulation has arrived. It is incumbent upon …

Don't Give Grandma An Ipod For Christmas: An Expository Study Examining The Consumer Behavior Of Senior Citizens In The Digital Music Indistry, Joshua T. Coleman

Mahurin Honors College Capstone Experience/Thesis Projects

Senior citizens are the fastest growing demographic today, and the digital music industry is one of the fastest growing aspects of our economy. This study explores the relationships and underlying correlations between these two facets. Three research methods were employed: field observation of a musician targeting his music to the elderly; data analysis of this musician’s sales records; and a questionnaire seeking the purchasing and listening preferences of baby boomers and senior citizens. The results reveal that, as age increases, senior citizens’ comfort purchasing and listening to music through digital methods decreases. A negative correlation between age, nostalgic marketing, and …

Qualitative Information In Annual Reports & The Detection Of Corporate Fraud : A Natural Language Processing Perspective, Sunita Goel

Legacy Theses & Dissertations (2009 - 2024)

High profile cases of fraudulent financial reporting such as those that occurred at Enron and WorldCom have shaken public confidence in the U.S. financial reporting process and have raised serious concerns about the roles of auditors, regulators, and analysts in financial reporting. In order to address these concerns and restore public confidence, the Sarbanes-Oxley Act (SOX) of 2002 was enacted. However, SOX has not lived up to its promise. Numerous cases of fraudulent financial reporting have surfaced in the post-SOX era. So far, the major thrust of research has been on examining fraud that has already been discovered. This dissertation …

Reinventing The Sec By Staring Into Its Past, James D. Cox

Faculty Scholarship

No abstract provided.

Employee Benefit Plans Industry Developments - 2009; Audit Risk Alerts, American Institute Of Certified Public Accountants

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

A Theory Of Complex Adaptive Inquiring Organizations: Application To Continuous Assurance Of Corporate Financial Information, John Kuhn

Electronic Theses and Dissertations

Drawing upon the theories of complexity and complex adaptive systems and the Singerian Inquiring System from C. West Churchman's seminal work The Design of Inquiring Systems the dissertation herein develops a systems design theory for continuous auditing systems. The dissertation consists of discussion of the two foundational theories, development of the Theory of Complex Adaptive Inquiring Organizations (CAIO) and associated design principles for a continuous auditing system supporting a CAIO, and instantiation of the CAIO theory. The instantiation consists of an agent-based model depicting the marketplace for Frontier Airlines that generates an anticipated market share used as an integral component …

Inference-Guiding On Bayesian Knowledge-Based Systems, Jinchang Wang

Journal of International Technology and Information Management

Bayesian network is a robust structure for representing knowledge containing uncertainties in a knowledge-based system. In applications of expert systems and knowledge-based systems, it often happens that initial data are not sufficient to derive a conclusion of high enough certainty. Inference-guiding is in that case to identify the missing information, pursue its value, and lead inference to a conclusion. This paper presents and characterizes a criterion for effectively selecting key missing information, and thereby develops a “smart” inference approach with the inference-guiding function based on the newly developed criterion for uncertain inference in a Bayesian knowledge-based system.

Study Of The Sarbanes-Oxley Act Of 2002 Section 404 Internal Control Over Financial Reporting Requirements, Gennaro Bernile

Research Collection Lee Kong Chian School Of Business

No abstract provided.

Reforming Securities Litigation Reform: Restructuring The Relationship Between Public And Private Enforcement Of Rule 10b-5, Amanda A. Rose

Vanderbilt Law School Faculty Publications

Commentators have long debated how to reform the controversial Rule 10b-5 class action without pausing to ask whether the game is worth the candle. Is private enforcement of Rule lOb-5 worth preserving, or might we be better off with exclusive public enforcement? This fundamental but neglected question demands attention today more than ever. An academic consensus has emerged that the typical Rule 1Ob-5 class action cannot be defended on compensatory grounds. That leaves the oft-cited, but undertheorized, rationale that private enforcement is a "necessary supplement" to the securities fraud deterrence efforts of the SEC. When this justification is critically examined, …