Business Commons^™

Sarbanes-Oxley Act Section 404 And Filing Status, Yanwen Wang

Honors Theses and Capstones

This thesis focuses on Sarbanes-Oxley Act, which is a United States federal law that sets new or expanded requirements for all U.S. public companies. Section 404 aims to ensure that all public companies have effective internal controls. Section 404 is not applied uniformly across different filers. This thesis focuses on the analyses of small companies as these companies, i.e. non-accelerated filers, got exemption from Section 404 (b), which requires a publicly-held company’s auditor to attest to, and report on, management’s assessment of its internal controls. Because this exemption allows non-accelerated filers to avoid significant compliance cost, the purpose of the …

Transition Team, American Accounting Association

Accounting Hall of Fame Brochures

No abstract provided.

Graduate Bulletin, 2017-2018, Minnesota State University Moorhead

Graduate Bulletins (Catalogs)

No abstract provided.

State Funding And Its Impact On University Funding, Andrew Wolfgang Doppstadt

Honors Theses and Capstones

No abstract provided.

An Examination Of Firms’ Responses To Tax Forgiveness, Terry Shevlin, Jacob Thornock, Braden Williams

Faculty Publications

This study uses state tax amnesties to examine how firms respond to forgiveness—particularly repeated forgiveness—by a taxing authority. We posit that tax forgiveness programs alter taxpayer perceptions of the probability of detection by enforcers or the probability of future forgiveness programs, either of which could affect future tax aggressiveness. We find that firms headquartered in an amnesty-granting state increase state income tax aggressiveness following the first instance of tax amnesty, relative to control firms in other states. Moreover, we find evidence that tax aggressiveness incrementally increases with each additional repetition of a tax amnesty. Finally, we find that the effect …

Irs Attention, Zahn Bozanic, Jeffrey L. Hoopes, Jacob Thornock, Braden M. Williams

Faculty Publications

We study how public and private disclosure requirements interact to influence both tax regulator enforcement and firm disclosure. To capture IRS enforcement activities, we introduce a novel data set of IRS acquisition of firms’ public financial disclosures, which we label IRS attention. We examine the implementation of two new disclosure requirements that potentially alter IRS attention: FIN 48, which increased public tax disclosure requirements, and Schedule UTP, which increased private tax disclosure. We find that IRS attention increased following FIN 48 but subsequently decreased following Schedule UTP, consistent with public and private disclosure interacting to influence tax enforcement. We next …

The Effects Of Gamification On Corporate Compliance Training: A Field Experiment Of True Office Anti-Corruption Training Programs, Ryan J. Baxter, D. Kip Holderness, David A. Wood

Faculty Publications

Companies rely on internal controls to comply with the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. One such control is anti-corruption employee training. Although corporate training is a key component of anti-fraud policies and procedures, it is often perceived as dull by employees. To motivate greater engagement, firms are experimenting with training that involves elements of digital games, known as gamification. We perform a field experiment with 158 employees of a large, multinational bank to examine the effectiveness of gamified anticorruption training. We find that employees strongly prefer gamified training to traditional, nongamified training and that gamified …

Factors Influencing Recruitment Of Non-Accounting Business Professionals Into Internal Auditing, Geoffrey D. Bartlett, Joleen Kremin, K. Kelli Saunders, David A. Wood

Faculty Publications

This paper examines factors affecting non-accounting business professionals’ willingness to work in internal auditing. In a 2 x 6 experiment with 502 participants from across the country, we find that, in contrast to prior research examining accountants, business professionals have relatively favorable views of internal audit. Although they hold favorable views, participants were still less likely to apply for a position labeled as internal audit than an identical position with an alternate label. Varying the structure of internal audit, including job responsibilities, career path, and sourcing arrangement, did not affect participants’ willingness to apply for an internal audit position. We …

The Internet As An Information Intermediary, Michael S. Drake, Jacob Thornock, Brady J. Twedt

Faculty Publications

The internet is an enormous and growing source of information for investors about the opinions of others. Virtually any individual with internet access can express opinions about firms and editorialize about company news. However, to date we know very little about the impact these nontraditional internet intermediaries have on markets. We develop a framework wherein internet information intermediaries fall along a spectrum of professionalism and document a nuanced relationship between coverage by these intermediaries and capital market effects. Using a novel dataset that tracks coverage of companies by individuals posting on thousands of websites, we find that coverage by professional …

Discussion Of 10-K Disclosure Repetition And Managerial Reporting Incentives What Have We Learned And Where Do We Go With Textual Research?, Travis Dyer, Mark H. Lang, Lorien Stice-Lawrence

Faculty Publications

We discuss the evolution of research on textual attributes in accounting and suggest potential directions for future research using Cazier and Pfeiffer (2017) to illustrate the challenges and opportunities in the literature. We categorize the literature based on whether a given textual attribute is assumed to be ‘‘discretionary’’ versus ‘‘nondiscretionary’’ and whether it is assumed to be ‘‘helpful’’ versus ‘‘harmful.’’ The literature to date has been largely descriptive, with limited focus on causality, and we argue that there are substantial opportunities for research that better isolate the discretionary components of textual disclosure, as well as identifying specific contexts in which …

The Effect Of Industry Co-Location On Analysts’ Information Acquisition Costs, Jared Jennings, Joshua A. Lee, Dawn Matsumoto

Faculty Publications

We examine how the co-location of firms in the same industry affects analysts’ cost of gathering and processing information. We find that when the firms in an analyst’s portfolio are located farther away from other firms in the same industry, the analyst’s portfolio size is smaller and average forecast accuracy is lower. We further find that the additional costs that analysts incur to follow distant firms are amplified when earnings are more difficult to forecast. Lastly, we provide some evidence that managers are more knowledgeable about other firms in the same geographic area. Specifically, managers are more likely to reference …

How Does Intentional Earnings Smoothing Vary With Managerial Ability?, Peter Demerjian, Melissa F. Lewis-Western, Sarah Mcvay

Faculty Publications

We investigate if high-ability managers are more likely to intentionally smooth earnings, a form of earnings management, and when they are more likely to do so. Although prior studies provide evidence that high-ability managers report higher quality earnings, the literature does not indicate whether this behavior is common because of (or happens in spite of) high-ability managers’ intentional smoothing activities. We find that (1) high-ability managers are significantly more likely to engage in intentional smoothing, (2) their intentional smoothing is associated with improved future operating performance, and (3) their intentional smoothing is more prevalent when the smoothing either benefits shareholders, …

Portfolio Risk-Return Analysis: The Case Of The Automotive Industry In The Czech Republic, Florin Aliu, Drahomira Pavelkova, Bruce Dehning

Accounting Faculty Articles and Research

Risk has always been the concern of managers and shareholders as a part of decision-making processes. Managers tend to control unsystematic risk mostly while trying to minimize the exposure to systematic (market) risk. The paper aims to assess the risk level and risk-return tradeoffs for the companies operating in Czech automotive industry. A diversification formula and calculation of returns using return-on-equity were employed on the yearly basis from 2005 till 2014. The returns and risk calculations were conducted on the portfolio of auto manufacturers, followed by the portfolio of auto suppliers, while the third one was performed for suppliers and …

Market Dimensions Of Industrial Juice Production, Anushree Priyadarshini

Articles

The juice sector is currently demonstrating positive and dynamic growth mainly due to a change in lifestyle, the tendency of consumers to prefer healthy products, and an increase in purchasing power. Fruit juices form part of what are termed the “new age beverages.” In sync with growing consumer inclination toward healthier choices, manufacturers are moving over to healthier ingredients in their juices. Numerous new and innovative products are being launched globally by manufacturers to stimulate sales through innovations in flavor blends, calorie and sweetness levels, and functional benefits, very much shaped by the major lifestyle trends. This chapter aims to …

Managing Energy Price Risk Using Futures Contracts: A Comparative Analysis, Jim Hanly

Articles

This paper carries out a comparative analysis of managing energy risk through futures hedging, for energy market participants across a broad dataset that encompasses the largest and most actively traded energy products. Uniquely, we carry out a hedge comparison using a variety of risk measures including Variance, Value at risk (VaR), and Expected Shortfall as well as a utility based performance metric for two different investor horizons; weekly and monthly. We find that hedging is effective across the spectrum of risk measures we employ. We also find significant differences in both the hedging strategies and the hedging effectiveness of different …

The Influence Of Cognitive Factors On The Relationship Between Accounting Standard Precision And Aggressive Financial Reporting, Kara E. Hunter

2017

The U.S. SEC has formally advocated for the creation of a single set of global accounting standards. As the SEC considers converging U.S. GAAP with IFRS, there is heightened interest in how the precision of accounting standard influences the quality of the financial reporting process. My dissertation consists of three studies that seek to address how accounting standard precision interacts with different behavioral factors to influence aggressive financial reporting decisions and auditor judgment. Paper one presents evidence of a significant interactive effect of standard precision and preparer incentive horizon. Specifically, we find evidence that when the incentive horizon is long …

Environmental, Social, And Governance Risk And Performance: Implications For Audit And Corporate Governance Research, Jenna J. Burke

2017

This dissertation examines oversight of environmental, social, and governance (ESG) related risk and performance. These considerations are a new piece of business language, and are crucial in monitoring and evaluating the sustainable impact of modern corporations. The dissertation is comprised of three archival studies, which together contribute to an emerging accounting literature at the intersection of audit and corporate governance. The first study uses hand-collected data on voluntary board-level committees that oversee ESG-related issues to investigate the performance implications of these committees. This paper presents a theoretical framework and methodology that incorporate the committee’s role in shared value creation and …

The Influence Of Corporate Social Responsibility Disclosure On Stakeholder Decision-Making, Andrew C. Stuart

2017

As part of the Disclosure Effectiveness Initiative, the SEC is seeking public comments on whether sustainability disclosures are important to investors’ decisions. The interest in sustainability disclosures by the SEC coincides with the recent increase in companies voluntarily publishing corporate social responsibility (CSR) reports. My dissertation consists of three studies that examine CSR disclosures, with an emphasis on how disclosure influences stakeholder decision-making.

Part one reviews the CSR disclosure literature contained in accounting journals. I find an overlap between CSR disclosure issues and traditional accounting issues examined in the literature. Focusing on where the issues overlap, I separate the CSR …

Differences In The Reliability Of Fair Value Hierarchy Measurements: A Cross Country Study, Chu Yeong Lim, Tee Yong Jeffrey Ng, Keng Kevin Ow Yong, Gary Pan

Research Collection School Of Accountancy

Prior research suggests that there are significant differences in how investors perceive the reliability of fair values across the fair value hierarchy. An unaddressed question in this stream of research is whether cross-country differences in institutional factors are able to mediate differences in reliability for the fair value hierarchy measurements. Based on an international sample of banks across 20 different countries, we find that the probability of crash risk is lower among countries with better financial development infrastructure, greater level of trust, tighter security regulations and higher level of disclosure requirements. These results apply to Level 1 assets but not …

Ownership And Identities Of The Largest Shareholders And Dividend Policy: Evidence From Vietnam, Trien Vinh Le, Trang Huyen Le

Research Collection School Of Accountancy

This study investigates the relationship between the level of shareholdings and identities of the largest shareholders, and cash dividend policy. The study is conducted with a sample of 180 firms listed on Vietnam stock exchange markets from 2009 to 2013. The fixed effect model is employed to analyze the balanced panel data. The results show that the higher the level of holdings by the largest shareholders, the lower the dividend payout. Moreover, companies with the State and Foreign investors as the largest shareholders have higher dividend payout ratio than companies with local investors and managers as the largest shareholders. The …

Successful Ethical Decision-Making Practices From The Professional Accountants' Perspective, Tammy Tanner Webster

Walden Dissertations and Doctoral Studies

Unethical behavior includes all decisions and actions counterproductive to an organization's mission and can cause irrevocable damage to the organization's professional reputation. The Securities and Exchange Commission reported 807 ethical violations in 2015. This study was underpinned by the ethical leadership theory, which emphasizes leadership decision making based on fair and just practices, for all involved parties. The purpose of this qualitative multiple-case study was to explore the ethical decision-making best practices that not-for-profit accounting managers in the Washington, DC, metropolitan area needed to strengthen the ethical decision-making process in their organizations. Data were collected through semistructured interviews from 5 …

Risk Perception And Psychological Behavior Of Investors In Emerging Market: Indonesian Stock Exchange, Y. Yuliani, I. Isnurhadi, Ferry Jie

Research outputs 2014 to 2021

Capital market functions as a mediator between parties who have excess funds that is, investors and those who need the funds that is, emitents. Decision to sell and buy shares of a financial asset is very strategic decision for investors because it is associated with the chances of return to be earned in the future. The objective of this paper is to investigate the investor's psychology on buying and selling common stock in the stock exchange in emerging market. The specific purpose of this research is to provide the simultaneous empirical evidence about the perception of risk, psychology aspects towards …

اطار مقترح لتطبيق الموازنة الصفرية لتطوير الاداء المالي (دراسة تحليلية لآراء عينة من دوائر محافظة المثنى ), حيدر عباس عبد

Muthanna Journal of Administrative and Economics Sciences

سعت هذه الدراسة الى بيان مدى الاستفادة من تطبيق نظام الموازنة الصفرية كأحد أدوات الرقابة على الاداء المالي للوحدات الحكومية الخدمية التي تطبق النظام المحاسبي الحكومي في معالجة الازمات المالية التي يمر بها البلد حالياً وذلك من خلال التطبيق على عينة من دوائر محافظة المثنى (جامعة المثنى ,دائرة الصحة , ومديرية التربية). وقد هدفت الدراسة تحديد مدى توفر متطلبات تطبيق الموازنة الصفرية في الوحدات الحكومية وبيان أثر تطبيق الموازنة الصفرية في تحسين الاداء المالي في الوحدات الحكومية عينة البحث تجاه تطبيق الموازنة الصفرية واهميتها ومحاولة وضع اطار مقترح لتطبيق الموازنة الصفرية ، ولتحقيق أهداف الدراسة لقد صمم الباحث استمارة استبانة …

The Pricing Of Ipo Audit Expertise And Subsequent Issuer Underpricing, Jung Eun Park

LSU Doctoral Dissertations

I examine the costs and benefits to the issuer of hiring an IPO auditor specialist in the U.S. Initial Public Offerings market. I quantify IPO auditor expertise at the market share level and the market concentration level and then I investigate the audit fees of IPO audit expertise and the issuer underpricing in the U.S. IPO market. I find that there are significant fee premiums when an audit firm is a national IPO audit specialist and when an audit office is a city IPO audit specialist. I also find that IPO specialist auditors reduce first-day issuer underpricing. These results are …

Three Essays On Corporate Governance And Politically Connected Firms, Justin Mindzak

Theses and Dissertations (Comprehensive)

In this dissertation three essays on corporate governance and politically connected firms are presented. The first essay “Interlocked Boards of Directors, Corporate Governance and Earnings Quality” studies the effects of interlocked boards of directors on voluntary governance disclosures, governance practices and earnings quality. The Canadian environment, where director interlocks are prevalent, is examined. A checklist of twenty voluntary disclosure measures from proxy statements is developed and a direct measure of interlocking directorships is employed. It is found that interlocked boards of directors are negatively associated with voluntary governance disclosures and positively associated with earnings quality. From an accounting perspective, greater …

Guide To Audit Data Analytics, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.

2017 Trends In The Supply Of Accounting Graduates And The Demand For Public Accounting Recruits, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.

Understanding Business Valuation : A Practical Guide To Valuing Small To Medium-Sized Businesses, Gary R. Trugman

Guides, Handbooks and Manuals

No abstract provided.

2017 Cpa Firm Gender Survey, American Institute Of Certified Public Accountants. Women’S Initiatives Executive Committee

Guides, Handbooks and Manuals

No abstract provided.

An Evaluation Of The General Vs. Specialist Nature Of Top Accounting Journals, Scott L. Summers, David A. Wood

Faculty Publications

Academic research has a role in advancing and enlightening society in broad areas of study. Many forces interact to influence the directions, topics, and methodologies used in research. In this paper, we explore and discuss the relationships between the top general-interest and specialist accounting journals. We test whether top journals (e.g., “Top 3” or “Top 6”), relative to a set of high-quality but specialist journals, (1) are perceived to be general in what they will consider publishing, (2) have historically published diverse sets of articles, (3) have editorial board members with diverse sets of interests and skills, and (4) publish …