Business Commons^™

Legislative-Executive Relations And The Budgetary Process In Nigeria: An Evaluation Of The 1999 Constitution., S.C. Rapu

CBN Occasional Papers

Since the transition to civilian rule in May 29, 1999, the country has witnessed conflicts between the legislature and the executive over budget matters. These conflicts are not only restricted to the federal level but also a common phenomenon at the state government level. This paper discussed the poor relationship over the budget matters and made suggestions on how to improve the process. The paper surveyed the literature on the legal framework of the budgetary process in several countries. Thereafter, the paper examined the legal framework for the budgetary process in Nigeria as well as the issues involved. The paper …

Procurement Fraud & Data Analytics, Sridhar Ramamoorti, Scott Curtis

Accounting Faculty Publications

The purpose of this article is to bolster the government auditor's ability to detect procurement fraud through the use of information technology (IT) tools in performing more sophisticated data analytics and effective audit testing. The article primarily focuses on fraud detection. The government auditor should customize the application of general fraud detection principles to specific facts and circumstances and use sound professional judgment. Procurement fraud detection tests may help identify fraudulent activity and also inefficiencies, waste and abuse.

Assessing The Relative Informativeness And Permanence Of Pro Forma Earnings And Gaap Operating Earnings, Nilabhra Bhattacharya, Erv Black, Ted Christensen, Chad Larson

Research Collection School Of Accountancy

This study investigates whether market participants perceive pro forma earnings to be more informative and more persistent than GAAP operating income by analyzing a sample of 1,149 actual pro forma press releases. We find that pro forma announcers report frequent GAAP losses and are mostly concentrated in the service and high-tech industries. Our analyses of short-window abnormal returns and revisions in analysts’ one-quarter-ahead earnings forecasts indicate that pro forma earnings are more informative and more permanent than GAAP operating earnings. Our evidence suggests that market participants believe pro forma earnings are more representative of “core earnings” than GAAP operating income.

The Value Relevance Of Announcements Of Transformational Information Technology Investments, Bruce Dehning, Vernon J. Richardson, Robert W. Zmud

Accounting Faculty Articles and Research

In this paper, we examine the influence of IT strategic role to extend the findings of Im et al. (2001), Chatterjee et al. (2002) and Dos Santos et al. (1993). Specifically, we demonstrate that IT strategic role can explain how IT investments in each of the IT strategic roles might affect the firm's competitive position and ultimately firm value. We find positive, abnormal returns to announcements of IT investments by firms making transformative IT investments, and with membership in industries with transform IT strategic roles. The results of previous research are not found to be significant when IT strategic role …

Why Toyota And Honda Topped The 2002 J.D. Power Quality Study, Susan Lightle, Kenneth Yale Rosenzweig, John Talbott

Accounting Faculty Publications

Toyota again topped the annual J. D. Power and Associates quality study released in late May of 2002. Toyota scored the highest mark ever with l 07 defects per l 00 vehicles, while Honda came in second with 113 defects. The study was based on responses of approximately 65,000 new car owners queried during their first 90-days of ownership.

These results do not surprise us, as we have been fortunate to make numerous sojourns to the Toyota plant in Georgetown, Kentucky, and observe the manufacturing processes. These trips were normally facilitated by a former Japanese student of ours, Minako Yanke, …

Was Arthur Andersen Different?: An Empirical Examination Of Major Accounting Firms' Audits Of Large Clients, Theodore Eisenberg, Jonathan R. Macey

Cornell Law Faculty Working Papers

Enron and other corporate financial scandals focused attention on the accounting industry in general and on Arthur Andersen in particular. Part of the policy response to Enron, the criminal prosecution of Andersen, eliminated one of the few major audit firms capable of auditing many large, public corporations. This article explores whether Andersen’s performance, as measured by frequency of financial restatements, measurably differed from that of other large auditors. Financial restatements trigger significant negative market reactions and their frequency can be viewed as a measure of accounting performance. We analyze the financial restatement activity of approximately 1,000 large, public firms from …

Creating Effective Teams In A Classroom Environment, Kathryn A.S. Lancaster, Cyndi A. Crother

Accounting

For over a decade, companies have been concerned that new graduates are often not prepared to work in jobs where there they are required to contribute as a member of a team. In response, many educators have adopted team-based learning pedagogies, often referred to as cooperative learning. The use of teams has created additional class management issues and added to the complexity of class dynamics. While most students find team activities helpful, the authors have experienced a variety of problems encountered by various teams. For example, some class teams never function as a team, and the members end up working …

Do Different Cost Systems Make A Difference?, S. B. Hughes, Kathy A. Paulson Gjerde

Scholarship and Professional Work - Business

Presents a survey of several U.S. manufacturing companies to determine whether managers within companies that use different cost systems believe the information provided by those systems differs. Reason for the decision of companies to continue to use other types of cost systems; Emphasis on activity-based costing; Association of variable costing with the theory of constraints literature.

Factors To Be Considered In Determining A Corporation's Commercial Domicile, A. Bruce Clements

Faculty and Research Publications

Laws can vary significantly in taxing multijurisdictional companies depending on a company's degree of corporate presence in the taxing state, the type and source of income earned, and the type of property used or held in the state. Several critical factors can determine a company's tax liability in a state, including the location of the company's commercial domicile. The US Supreme Court's decision in the Wheeling Steel case regarding commercial domicile is overriding in federal, as well as state courts. Accordingly, multistate companies and their tax advisors should consider the location of central management activities when planning to start or …

Going-Concern Opinions: Broadening The Expectations Gap, Michael D. Akers, Meredith A. Maher, Don Giacomino

Accounting Faculty Research and Publications

A rash of high-profile bankruptcies has led to a search for answers. Many hold auditors responsible for not detecting the potential for bankruptcy during the most recent audit. The Weiss Report, a study of several dozen bankrupt companies submitted to the U.S. Senate during its deliberations on the Sarbanes-Oxley Act, found a "broad and massive failure" on the part of auditors to raise "yellow flags" that indicate potential bankruptcy. The authors examined Weiss' methodology and found that, applied to a broader group of companies, Weiss' criteria would have incorrectly predicted bankruptcy for nearly half of the non-bankrupt companies studied. This …

The Taxation Of Telecommunications In California In The Information Age, J. E. Prieger, T. A. Sexton, Annette M. Nellen

Faculty Publications

No abstract provided.

Research Opportunities In Internal Auditing, Sridhar Ramamoorti

Accounting Faculty Publications

Focuses on the book Research Opportunities in Internal Auditing, edited by Andrew D. Bailey Jr., Audrey A. Gramling and Sridhar Ramamoorti. History, evolution and prospects of internal auditing; Internal audit function; Auditing risk assessment and risk management processes.

Think Before For A Better After, Kathryn A.S. Lancaster

Accounting

Think before you drive. Think before you trash it. Think before for a better after. These were all slogans used in a campaign on the California Polytechnic State University campus in San Luis Obispo, Calif. Two students worked with their college union and other areas of campus to promote recycling and energy and water conservation. The central goal of this campaign was to influence students to think about their actions and change their behaviors to be more eco-friendly. The recycling opportunities at Cal Poly are plentiful. Students, staff, and faculty members each have two containers in their dorm room or …

Coso: More Relevant Now Than Ever, Heather M. Hermanson

Faculty and Research Publications

In 1992 when the Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued its internal control framework, few would have guessed that the framework would become an integral part of corporate accountability a decade later, but things are moving in that direction. COSO's framework may become an important tool for implementing the directives set forth in the Sarbanes-Oxley Act of 2002. With the newly mandated reporting on controls and other directives set forth in the Sarbanes-Oxley Act, the full effect of COSO's internal control vision may finally be realized. COSO's framework may help to address compliance with the new …

What Is The Social In Social Entrepreneurship?, Wee Liang Tan, John Williams, Teck Meng Tan

Research Collection School Of Accountancy

No abstract provided.

Underreporting Of Chargeable Time: The Impact Of Gender And Characteristics Of Underreporters, Michael D. Akers, Tim V. Eaton

Accounting Faculty Research and Publications

No abstract provided.

Internal Auditor Participation In Systems Development Projects, Meredith Maher, Michael D. Akers

Accounting Faculty Research and Publications

There are differing viewpoints in the internal auditing literature regarding the role of internal audit in systems development projects. One argument is that internal audit should act as consultants for such projects. A counter argument is that if internal auditors act as consultants this could impair in dependence. This study surveyed chief audit executives to determine their perceptions of the role of internal audit in systems development projects as well as the actual involvement of their departments in such projects. The findings show that chief audit executives place more importance on internal audit acting as consultants and less importance on …

Your Eq Skills: Got What It Takes?, Michael D. Akers, Grover L. Porter

Accounting Faculty Research and Publications

Your EQ skills: got what it takes? So you thought the CPA exam was your last test? Read on.

Question: Is success in life and career determined primarily by rational intelligence (the IQ or intelligence quotient) or emotional intelligence (the EQ or emotional quotient)? In other words, what's more important: intelligence or intuition? Historically the professional accounting literature has placed little emphasis on behavioral issues such as EQ, although human behavior underlies most of what is written and taught about professional accounting. Now managers place increased value on behavioral skills that help people in the workplace. Look at this statistic: …

Rethinking Ais: An Innovative Financial Information Systems Curriculum, Joseph Callaghan, Arline Savage, Eileen Peacock

Accounting

This paper describes a new Financial Information Systems curriculum that integrates information technology and financial information in the development of business information systems, and discusses the problems we experienced in establishing the new program. Our intention is to provide accounting graduates with the knowledge they need to leverage the latest information technologies to support the use of financial information in management decision-making, and to integrate financial information and internal controls into business information systems. Our cross-disciplinary approach expands the horizons of our students, from one of viewing accounting as a stand-alone, untimely, inflexible information system, capturing only “accounting transactions” and …

Financial Analysts And Enron: Asleep At The Wheel?, Arline Savage, Cynthia Miree

Accounting

We attempt to replicate the duties of financial analysts by performing accounting and financial analyses for Enron, using information contained in the firm's Security and Exchange Commission filings and in annual and quarterly reports that were available to analysts prior to the firm's collapse. We focus on Enron accounting policies, estimates, and financial measures that reflect the key risk areas that we identified in our strategy analysis.

Given that the purpose of accounting analysis is to evaluate the degree to which a firm's accounting system captures its underlying economic reality, we attempt to assess the degree of distortion in Enron's …

2002-2003 Financial Summary, Morehead State University. Budget & Financial Planning Office.

Morehead State University Financial Summaries Archive

2002-2003 Financial Summary of Morehead State University.

Collusion And Financial Leverage: An Analysis Of The Integrated Mill Steel Industry, Richard Lord, W. Ken Farr

Department of Accounting and Finance Faculty Scholarship and Creative Works

We show that firms can design their capital structure to provide a publicly observable indication of compliance with a collusive agreement. We develop two empirically testable hypotheses based on this argument and test these propositions on data for seven integrated mill steel firms. Our study period covers years when prices were overtly coordinated under the basing point pricing system and after the demise of the system. Empirical tests confirm the hypotheses that leverage is positively related to both price elasticity of demand and the level of convertibles outstanding during the years after the collapse of the basing point pricing system.

Equity Valuation In A Changing Institutional Climate: Evidence From Multinational Utilities, Joann Pinto

Department of Accounting and Finance Faculty Scholarship and Creative Works

The transformation of U.S. utilities from purely domestic to multinational enterprises commenced in 1992 with the passage of The Energy Policy Act (EPAct). In response to the liberalized regulatory climate, 29 U.S. utilities have diversified their holdings through the acquisition of foreign utilities, many of which are located in emerging market countries. This study analyzes the impact of international diversification on the profitability and valuation of U.S.-based multinational utilities during the years 1996-2000. In order to control for the effects of aggregate economic and regulatory changes, purely domestic utilities are also included in the sample. The empirical tests are conducted …

An Analysis Of The Readability Of The Md&As Of Small, Medium, & Large Revenue Generating Cities, Shannon Lutz, Treba Marsh, Lucille Montondon

Faculty Publications

Studies assessing the annual reports of publicly held corporations have shown mixed results in regard to the readability levels of those reports. Recently, the Governmental Accounting Standards Board adopted GASB 33, 34, and 35 in which specific guidelines are outlined for the reporting of governmental entities. Are the Comprehensive Annual Financial Reports (annual reports) of the governmental entities understandable to the average user?

This study argues that the Managements Discussion and Analysis, the summary portion of the governmental annual report, is not understandable to the average reader. The sample was equally divided among small, medium, and large revenue-generating cities that …

Post-Earnings Announcement Drift And Market Participants' Information Processing Biases, Lihong Liang

Accounting - All Scholarship

Prior research has been unable to explain the phenomenon known as post-earnings announcement drift, raising questions concerning the semi-strong form efficiency of the market typically assumed in capital market research. This study contributes to our understanding of this anomaly by examining drift in the context of theories that consider investors' non-Bayesian behaviors. The empirical evidence reveals that investors' overconfidence about their private information and the reliability of the earnings information are two important factors that explain drift. Finally, this study also provides insight into the puzzling relationship between dispersion and drift discussed in prior research.

Intellectual Accounting Scorecard - Measuring And Reporting Intellectual Capital, Indra Abeysekera

Faculty of Commerce - Papers (Archive)

Several indicators are constructed to measure intellectual capital at inter-organisational and inter-organisational level. The majority of models constructed so far have not established the link between individual intellectual items and organisational intellectual capital performance. The few models that establish such a link demand significant management time to monitor them, or have established indices outside the traditional accounting system. The Intellectual Accounting Scorecard integrates intellectual capital measuring and reporting into mainstream traditional accounting reporting. Firstly it identifies each intellectual capital item as an intellectual revenue and intellectual expenses having an impact on the statement of income, or as an intellectual assets …

The Market Perception Of Corporate Claims, Qiang Cheng, Peter Frischmann, Terry Warfield

Research Collection School Of Accountancy

This paper examines the economic substance of a broad range of securities by investigating their association with systematic risk and prices. The analysis is motivated by continuing security innovation and its impact on hybrid security reporting. Based on a sample of 2,617 firms that reported minority interests or preferred stock during 1993–1997, the results indicate that redeemable preferred securities (including trust preferred stock) are not viewed by the market as either debt or equity, suggesting dichotomous security classification may lack representational faithfulness. Inconsistent with their treatment in the financial statements, non-redeemable preferred stock and minority interests are viewed as debt-like …

The Role Of Bargaining Style In Public Company Audits, Heather M. Hermanson, Kurt S. Schulzke, G. Richard Shell

Faculty and Research Publications

According to prior auditing research, negotiation plans an important role in audit outcomes. General purpose negotiating literature suggests that bargaining styles are an important factor in business negotiations and that bargaining style mismatches between negotiating counter-parties can influence negotiation results. To date, the role of auditors' bargaining-style tendencies in audit negotiations has gone unnoticed in the auditing literature. A study examines the bargaining styles of accountants and managers as measured by the Thomas-Kilmann Conflict Mode Instrument. The results suggest that accountants are predisposed to avoid conflict or accommodate whereas managers are predisposed to collaborate or compete. Recognizing this potential mismatch …

2003-2004 Operating Budget, Morehead State University. Budget & Financial Planning Office.

Morehead State University Operating Budgets Archive

2003-2004 Operating Budget of Morehead State University.

Sfas 143 On Asset Retirement Obligations, Cheri Mazza, Robert H. Colson

WCBT Faculty Publications

Discusses an accounting legislation provision in the U.S. which concerns accounting for asset retirement obligations that requires the recognition of a liability for certain obligation associated with retirement of long-lived assets. Asset retirement obligations; Recognition of a liability for an asset retirement obligation in a certain period; Discussion on a subsequent-period accounting.