Business Commons^™

The Implication Of Us Gaap And Ifrs Convergence On American Business, Austin Willmore

Honors Theses

The purpose of this work is to discuss the ongoing process of convergence between IFRS and GAAP. It addresses some of the limitations of previous research related to this topic: namely, gives a more recent perspective than is currently available, and also discusses various aspects of the project in a single paper. This paper addresses the timeline of the project, the costs that it presents, the status of the convergence effort, and discusses possible outcomes of these efforts. This research compares, contrasts, and analyzes IFRS and GAAP in several key areas that were (or are still) keeping the standards apart.

Tax Effects Of The Affordable Care Act On Individuals And Small Businesses, Lindsey Atteberry

Honors Theses

This paper examines how the Affordable Care Act, passed into law in 2010, will affect individuals and businesses in regards to taxes. There are many different tax implications resulting from the Affordable Care Act. For individuals, these include the premium assistance credit, the net investment income tax, the increase in the medical expenses deduction threshold, the additional hospital insurance for high-income tax payers, and the individual mandate. For small businesses, these include the small business tax credit, the excise tax, and the new SIMPLE cafeteria plans which are now available. After discussing these new taxes and tax credits, several cases …

Do Non-Audit Fees Impair Auditor Independence? Using Goodwill Accounting To Help Reconcile The Debate, Jonathan Edward Shipman

Doctoral Dissertations

Prior literature’s inability to document an empirical relation between non-audit service fees and compromised auditor independence contradicts the significant and long-standing concerns expressed by regulators and the investing community. The purpose of this paper is to reconcile the lack of findings in prior research with regulators’ and investors’ concerns about non-audit services. Using a new measure – goodwill impairments – that alleviates many of the potential limitations that could have prevented prior research from documenting evidence to support the proposed relation between non-audit services and auditor independence, I find that the level of non-audit fees of a client is negatively …

International Financial Reporting Standards Implementation In Canada: The Impact Of Ifrs Conversion On Canadian Public Banking Enterprises, Arina V. Gibson

Undergraduate Honors Theses

The purpose of the research is developing an understanding of the effect that International Financial Reporting Standards (IFRS) had, if any, on Canadian Publicly Accountable Enterprises (PAEs), specifically their external financial reporting compared to Canadian Generally Accepted Accounting Principles (Canadian GAAP). The focus of this research is the analysis of reported financial ratios of Canadian Banking companies for the year ended December 31, 2010, which will be tested for the statistically-significant differences between Canadian GAAP and IFRS. The research is designed to examine what impact on liquidity, leverage, profitability, and cash flows the change from Canadian GAAP to IFRS has, …

Obesity: The Elephant In The Budget Room That We Can No Longer Afford To Ignore, Katharine G. Linehart

Honors Theses

An analysis of the effect of obesity on the national budget.

From Independence To Regulation: A Look Into Major Accounting Scandals And The Changes Implemented By The Sarbanes-Oxley Act, Rachel A. Elkins

Chancellor’s Honors Program Projects

No abstract provided.

Essays On Corporate Bank Loan Contracting, Leann G. Pashnyak

Open Access Dissertations

This dissertation is comprised of two essays on corporate bank loan contracting. The purpose of the first essay is to investigate the effect of loan's designated purpose on loan agreement contracting terms, as well as to examine whether lenders apply different standards to assess the value of borrower's corporate governance for each type of loan purpose. Using a large sample of private bank loans, the results indicate that both price and non-price loan terms vary significantly by loan purpose. Specifically, the spread yield varies by about 182 basis points (bps) for loans made for different purposes. Further, borrowers of operations …

Effects Of Psychological Contract Breaches On Mergers And Acquisitions, Kristine M. Murphy

Doctoral Dissertations

This study investigates breaches in the psychological employment contract during mergers and acquisitions. An employee's contract is incomplete in regards to mergers and acquisitions (M&A). In its place, psychological contracts are formed. Common psychological contracts breached in the M&A process include raises, bonuses, promotions, job responsibilities, job security, and career development. Employees who have experienced an M&A were surveyed to test the severity of various psychological contract breaches and their effect on employee performance, organizational citizenship behavior, job satisfaction, organizational deviance, and turnover using t-tests, Structural Equation Modeling, and ANOVA. The mediating effect of feelings of violation was also tested. …

Accounting For Financial Instruments: Difficulties With Fair Value Measurement And Reporting, Lindsey T. Byrne

Honors Theses and Capstones

No abstract provided.

The Effects Of An Auditor’S Communication Mode And Professional Tone On Client Responses To Audit Inquiries, Aaron Saiewitz

Doctoral Dissertations

Recent audit research has indicated that junior auditors tend to use e-mail for client inquiries. Additionally, audit firms have expressed concerns regarding the ability of junior auditors to communicate professionally. In this study, I investigate whether receiving an auditor inquiry via e-mail differentially affects client responses as compared to more traditional modes of inquiry and whether those responses are affected by the auditor’s professional tone. In an experiment, experienced business professionals respond to a request for information from an auditor regarding a potential accounting adjustment. I varied the communication mode of the request (e-mail, audio, or visual) and the professional …

The Importance Of Executive Effort, Lee Edward Biggerstaff

Doctoral Dissertations

Agency theory stipulates that managerial effort is important to shareholders and costly for managers to provide. Executives may provide sub-optimal levels of effort because shareholders cannot easily observe the day-to-day actions of managers and therefore have difficulties properly monitoring the effort provided by firm management. Researchers also face the challenge of measuring executive effort. In this dissertation, I use an observable measure of leisure consumption to proxy for the effort provided by executives to study the impact of executive effort on firm outcomes.

In the first essay, I focus on Chief Executive Officers (“CEOs”) and the impact of their effort …

Deferred Tax Assets And Credit Risk, Scott David White

Doctoral Dissertations

This paper examines the impact of deferred tax assets on firm creditworthiness. Specifically, I investigate whether the proportion of a firm’s total assets that are composed of deferred tax assets is associated with Standard & Poor’s credit ratings. The benefits associated with deferred tax assets are primarily realized through deductions from future taxable income. If declines in financial performance lead to a subsequent default, deferred tax assets may provide no value to creditors seeking recovery of their investment. I document a significant negative association between deferred tax assets and credit ratings. The evidence is consistent with credit market participants incorporating …

The Effect Of Ceo It Expertise On The Information Environment: Evidence From Management Earnings Forecasts, Jacob Zachary Haislip

Graduate Theses and Dissertations

Firms depend on information technology to provide high quality internal information, but prior research suggests that IT is underutilized (Venkatesh and Bala 2008). Therefore, using a sample of firms with equivalent levels of technology in their information systems, I investigate whether firms that employ CEOs with IT expertise make forecasts that are more accurate. I argue that CEOs with IT expertise are more likely to encourage the utilization of IT in making earnings forecasts, thus increasing the accuracy of the forecasts. This argument is supported by prior research that suggests that people are more likely to utilize technology if they …

The Effective Use Of The Audit Risk Model At The Account Level, Timothy Andrew Seidel

Graduate Theses and Dissertations

I examine whether auditors effectively respond to an assessment of high control risk at the account level. The audit risk model assumes that auditors alter their audit procedures to compensate for a greater risk of material misstatement to maintain a low risk of audit failure (i.e., low audit risk). I use internal control weakness disclosures in interim and annual filings to identify assessments of high control risk within specific accounts, and restatements of these specific accounts to identify account–level audit failures. I find an increased incidence of account–level misstatements when control risk within that particular account is high, suggesting that, …

Identifying The Effects Of Narcissistic Leadership On Employee Job Satisfaction: A Study Within The Accounting Profession, Susan Shurden

All Dissertations

Narcissism is a personality disorder now identified in professionals in both education and business. The disorder is diagnosed when an individual possesses five of nine characteristics listed in the American Psychiatric Association's Diagnostic and Statistical Manual of Mental Disorders/ (fourth edition, text revision version). Narcissism is prevalent in most successful leaders and is both destructive and constructive. The focus of this Dissertation is on the destructive characteristics and how narcissistic leadership affects job satisfaction among employees within the accounting profession.

An Assessment Of Dual Audit Effect And Contagious Effect On The Audit Quality Of Non-Big N Cpa Firms For Chinese Companies In Different Markets, Meixin Wang

Theses & Dissertations

External auditor is an independent agent to provide assurance about the validity of financial statements prepared by management to enhance the reliability of information in financial reports. As such, audit quality has long been a concern for all stakeholders and is a topic of on-going research interest. In China, the dual audit requirement for AB share companies and AH share companies started in 2001 was abolished in 2007 and 2010 respectively. This study attempts to examine whether there are dual audit effect and contagious effect on the audit quality of non-Big N audit firms for A share companies in different …

Do Firms’ Earnings Reported Under Ifrs 3r Reveal More About Future Earnings And Cash Flows? Evidence From The European Union, Lin Yuan Wang

Theses & Dissertations

Motivated by recent studies documenting inconsistent results regarding the benefits of adopting International Financial Reporting Standards (IFRS), the objective of this thesis is to examine the information value of firms’ earning reported focusing on IFRS 3 (Business Combination). IFRS 3 aims at providing systematic guidelines for acquirers of a business combination transaction to properly report identifiable assets and liabilities, to fairly measure goodwill and to disclose relevant information for investors’ evaluation. IFRS 3 was revised and became effective in July 2009. Opponents of the revised IFRS 3 (IFRS 3R) criticized the guidelines to have broadened the disconnection between current earnings …

The Dynamics Of Business Communication: A Look At Social Media Use In The Workplace, Lindsey Munro

Honors Theses

This paper reviews the use of social media in a work place setting. Reviews on the history of social media and definitions are initially made to prepare the reader for the language of the paper. The main section of the paper covers the advantages and disadvantages of social media use in the work place from the perspective of inside an organization using a private social media platform. Private social media platforms are referred to as enterprise social media. Enterprise social media has advantages and disadvantages when used for communication in team settings, for individual communication and learning, and for knowledge …

Essays On Non-Gaap Earnings Disclosure, Hangsoo Kyung

Dissertations, Theses, and Capstone Projects

Essay1: The U.S. Securities and Exchange Commission (SEC) issued new Compliance and Disclosure Interpretations (CDI) in 2010, relaxing enforcement of Regulation G and Regulation S-K. The nonbinding nature and opaque procedures behind interpretive guidance cast doubt as to whether SEC staff interpretations changed a firm's voluntary disclosure. In this paper, I find that firms more frequently disclose non-GAAP earnings after the issuance of new CDI, suggesting that nonbinding SEC staff interpretations influence corporate disclosure practice. Compared to the pre-CDI period, non-GAAP exclusions are of higher quality in the post-CDI period. The exclusion quality of firms who started to disclose non-GAAP …

Client Responses To Non-Compliant Audits: An Analysis Of Clients Targeted By Pcaob Inspection, Quinn Thomas Swanquist

Doctoral Dissertations

PCAOB inspectors are afforded privileged insight into the quality of audits selected for inspection. Using inspection reports from 2005-2012, I create a unique sample of audits that were inspected by the PCAOB (i.e., all of an auditor’s clients were selected for inspection). By tracing inspection findings to specific engagements, I directly identify compliant and non-compliant audits. I examine the contributing factors of ‘audit quality’ and provide evidence that higher audit fees and greater human capital are positively related to compliant PCAOB inspections. When PCAOB findings can be linked to a specific engagement, I also find that, on average, the client …

Do Clients Avoid ‘Contaminated’ Offices? The Economic Consequences Of Low Quality Audits, Robert Lowell Whited

Doctoral Dissertations

This study investigates whether local audit offices suffer financially following their association with low-quality audits. The announcement of a restatement indicates that the contracting auditor failed to detect and correct a material misstatement. Therefore, I predict that office reputation suffers following restatements of previously audited financial information. As the frequency of restatement announcements increases, the perceived pervasiveness of systematic audit failures (‘contamination’) within the office will increase accordingly. I document that contaminated offices (Big 4 and non-Big 4) suffer a decline in market share relative to their peers. Furthermore, when examining auditor retention decisions at the individual client level, I …

The Impact Of Fraud Education On Fraud Detection, Michele Leonard

Accounting

The value of a forensic education is becoming more important as the accounting world moves past the scandals that have caused set backs and distrust in recent years. Exclusively looking at the education aspect is something that has not been explored compared to the previous studies completed valuing experience. As part of an auditor’s duty to serve the public and report material misstatements in companies’ financial statements, having the knowledge needed to properly assess risk and identify fraud is very important. Forensic degrees are at the forefront of accounting education and have become more widespread in programs, courses, and certificates. …

A Comparison Of Audit Fee Trends For East Tennessee Based Companies And Similar Companies Based In Similar Regions, William J. Saulsbury

Undergraduate Honors Theses

Research examines audit fee trends for a decade. The research focuses on audit fees of companies in the East Tennessee Area and compares the audit fees of these companies to similar companies based in similar regions of the United States. Possible causes for the fluctuations of audit fees during the decade are also discussed.

Lost In Translation: Impediments To The Homogenous Interpretation Of Ifrs Translations, Addison N. Scott

Accounting Undergraduate Honors Theses

In order to satisfy the financial needs of an increasingly globalized world, regulators and accounting professionals have pursued the harmonization of national accounting standards through International Financial Reporting Standards (IFRS). These standards have been adopted in more than 100 countries and are currently available in 47 languages. When financial information is prepared in accordance with IFRS, users of that information may assume that the application of the accounting rules is consistent across countries. In actuality, many differences in interpretation and application can occur because of the difficulties inherent in translating the standards from one language to another. Inconsistent application of …

Donor And Grantor Reactions To Ceo Compensation In Nonprofit Organizations, Stacey Renee Kaden

Graduate Theses and Dissertations

Nonprofit organizations often rely on donations and grants to accomplish their mission. This study examines whether nonprofit organizations with high CEO compensation receive less in donor and grantor support compared to nonprofit organizations with lower CEO compensation. I find strong evidence that both donors and grantors give less to organizations that spend a larger percentage of total expenses on total CEO compensation. I also find that the reactions of donors and grantors differ based on the type of CEO compensation. While donors and grantors react to CEO base compensation, grantors also react to other CEO compensation and nontaxable benefits.

In …

Bankruptcy Prediction, Gold, And The Great Auto Bailout, Katelin E. Byrd

Honors Theses

With recent economic instability, bankruptcy prediction is a tool that is useful to companies and researchers who are interested in the financial stability of an industry or company. This thesis studies bankruptcy prediction during the most recent recession that occurred in the United States for General Motors with Ford as a comparison company and compares the possibility of bankruptcy to the price of gold per ounce for the corresponding year. The multiple discriminant analysis model was used to complete this research. This model uses financial ratios to predict bankruptcy. This research yielded an inverse relationship between the price of gold …

Determinants Of A Winning Season For Intercollegiate Football Based On Revenues And Expenses, Burke L. Ellzey

Honors Theses

The athletic departments of many colleges and universities serve as a significant source of revenue to the university. For most colleges and universities, football is the most popular program in the athletic department. The purpose of this research is to analyze different categories of revenues and expenses of each athletic department to investigate how these factors affect the winning percentage of the specific football team. In addition, BCS and non-BCS teams are compared to see how the BCS title affects these categories of revenues and expenses. Multiple regressions are run with the winning percentage being the dependent variable with the …

Gender And Career Success In Public Accounting, Jessica L. Rowe

Honors Theses

Public accountants, students, and others evaluated career success and the effect of specific activities on career success. The results suggest that gender bias is not pervasive in public accounting, at least with respect to overall assessments of success, but male and female accountants do appear to weight differently various activities that contribute to career success. This may explain, in part, why women hold fewer public accounting leadership positions than men even though women appear to have an advantage over men when they begin their careers.

Analysis Of Capabilities Attributed To The Fraud Diamond, Austin M. Shelton

Undergraduate Honors Theses

In the thesis “Analysis of Capabilities Attributed to the Fraud Diamond” research was conducted on fraud and what it takes for a person to commit fraud. The focus of this study was on one aspect of the person committing fraud, the capabilities aspect. This aspect is rather new in the accounting world, being first introduced in 2004. There was an analysis conducted on the six attributes of capabilities.

The six attributes went through statistical testing. This testing was to determine whether there are significant differences between the attributes. Based on the results of the testing, recommendations were given. These recommendations …

The Affordable Care Act And Its Impact On The Professional Tax Preparation Market In Kingsport, Tennessee, Robert S. Forney Jr.

Undergraduate Honors Theses

The objective of this study is to test whether the Affordable Care Act will have an effect on the professional tax preparation industry of Kingsport, Tennessee. To accomplish this objective, the researcher collected surveys concerning taxpayers’ initial reaction to the realization that the law affects their 1040. A two proportion test for equality was performed and failed to reject the idea that the ACA will have an effect on the tax preparation industry of Kingsport. Because this study failed to prove that the change in legislation causes a jump in clientele for the professional tax preparation market, the fight for …