Business Commons^™

Is The Decline In The Information Content Of Earnings Following Restatements Short-Lived?, Xia Chen, Qiang Cheng, Alvis K. Lo

Research Collection School Of Accountancy

Prior research finds that the decline in the information content of earnings after restatement announcements is short-lived and the earnings response coefficient (ERC) bounces back after three quarters. We re-examine this issue using a more recent and comprehensive sample of restatements. We find that material restatement firms experience a significant decrease in the ERC over a prolonged period—close to three years after restatement announcements. In contrast, other restatement firms experience a decline in the ERC for only one quarter. We further find that among material restatement firms, those that are subject to more credibility concerns and those that do not …

Media Coverage And Firm Valuation: Evidence From China, Jiwei Wang, Kangtao Ye

Research Collection School Of Accountancy

Drawing on both a managerial discipline perspective and an information intermediary perspective, we explore how media coverage of a firm’s controlling shareholder influences firm valuation in corporate China. Using 366 listed family firms in China from 2003 to 2006, we find that firms in which controlling shareholders receive more neutral media reports enjoy higher valuation, whereas negative media reports on controlling shareholders impose adverse effects on firm valuation. Interestingly, favorable media coverage of the controlling shareholders does not enhance firm value. Further analyses reveal that ownership structure and audit quality moderate the relationship between media coverage and firm valuation. Our …

Does More Corporate Governance Enhance Managerial Performance: Cfo Perceptions And The Role Of Mindfulness, John Joseph Williams, Alfred E. Seaman

Research Collection School Of Accountancy

No abstract provided.

Mandatory Financial Reporting Environment And Voluntary Disclosure: Evidence From Mandatory Ifrs Adoption, I-Hwa Yang, Balakrishnan K., Li X.

Research Collection School Of Accountancy

No abstract provided.

Revisiting The Determinants Of Students' Performance In An Undergraduate Accountancy Degree Programme In Singapore, Poh Sun Seow, Gary Pan, Joanne Siok Wan Tay

Research Collection School Of Accountancy

The current study investigates the association of prior academic achievement, admission interview, critical thinking, mathematical aptitude and gender with successful academic performance in an undergraduate accountancy degree programme at a Singapore university. The purpose of revisiting the determinants of academic performance in the Singapore context is twofold. First, university accounting education in Singapore has changed greatly since Koh and Koh’s earlier study (1999); the current study examines if determinants previously identified as significant continue to be so in the new setting. Second, the study tests the usefulness of admission interview in identifying applicants who achieve subsequent academic success. Data on …

Coordinating The Processes Of Resource Enrichment And Capability Deployment: Lessons From It Implementation At A Medium-Sized Accounting Firm, Gary Pan, Sayyen Teoh, Poh Sun Seow

Research Collection School Of Accountancy

The purpose of this paper has been to address the research question of how are the processes of resource enrichment and capability deployment coordinated during information technology (IT) implementation at a small- and medium-sized accounting firm (SMAF)? Increasingly, organizations need to respond to a wide range of IT-based opportunities and pressures. The situation is no different in an accounting firm. Many accounting practitioners have advocated investment in IT to improve accounting firms’ productivity. To date, there are many instances of how IT has radically transformed the nature of accounting practice. Nevertheless, little is known about how IT capability is developed …

Does Corporate Governance Make Financial Reports Better, Or Just Better For Equity Investors?, Dan Segal, Benjamin Segal, Shai Levi

Research Collection School Of Accountancy

Financial reports should provide useful information to both shareholders and creditors, according to U.S. accounting principles. However, directors of corporations have fiduciary duties only toward equity holders, and those fiduciary duties normally do not extend to the interests of creditors. We examine whether this slant in corporate governance biases financial reports in favor of equity investors, and in particular leads to a downward bias in reported debt that can hurt creditors. We focus on firms’ decision to issue structured debt securities that are classified as equity in financial reports and can circumvent debt covenants. We find that when the local …

Do Managers Use Meeting Analyst Forecasts To Signal Private Information? Evidence From Patent Citations, Katherine Gunny, Tracey Chunqi Zhang

Research Collection School Of Accountancy

This study examines whether firms manage earnings to meet analyst forecasts to signal superior future performance. Prior research finds that firms use earnings management to just meet analyst forecasts and that these firms have a positive association with future performance (Bartov et al., 2002). There are two potential explanations for the positive association – signaling and attaining benefits that allow for better future performance (i.e., the real benefits explanation). Prior studies cannot provide evidence of signaling because they do not control for the real benefits explanation. Our research design enables us to control for the real benefits explanation because we …

Too Much Of A Good Thing? The Effect Of Internal Control Monitoring System Alerts On User Perceptions Of Task-Technology Fit, Julia Kokina

Open Access Theses & Dissertations

Anecdotal and field study evidence points to both positive and negative effects of alerts produced by technology-enabled internal control monitoring systems (ICMS) (Alles et al. 2006, 2008; Debreceny et al. 2003, 2005; Perols and Murthy 2012). An important unanswered question is how those alerts impact users who process them and decide whether any corrective action should be taken. In this study I surveyed financial executives and accounting professionals to examine the impact of alerts on user perceptions of task-technology fit (TTF) (Goodhue and Thompson 1995). Alerts generated by ICMS can bring to the attention of company leadership indications of errors, …

Tax Compliance Determinants: A Proposed Model For Cross-Country Analysis, Denise Bowen O'Shaughnessy

Open Access Theses & Dissertations

The issue of tax compliance has been identified world-wide as a significant problem. The importance of understanding tax compliance behavior is essential to government policy makers, tax enforcement agents, citizens, and businesses (Hite & McGill, 1992; Joulfaian and Rider, 1998; Internal Revenue Service, 2008; Chau and Leung, 2009). Insight into the decision making process of taxpayers is crucial to researchers in assisting governments as they struggle to meet new challenges of a growing global economy while trying to balance increasing deficits and infrastructure demands. This Dissertation investigates the determinants of tax compliance behavior at an international level in an attempt …

Subordinate Accountants' Perceptions Of Their Superiors' Leadership And Performance: The Study Of Moderating Variables In The Accounting Profession, Raul Tapia, Jr.

Open Access Theses & Dissertations

The purpose of this Dissertation was to examine whether or not the self-monitoring component of adaptive self-regulation and perceptions of organizational politics moderate an accountant's interpersonal traits (interpersonal power and interpersonal trust) of how they perceived their superiors' performance and leadership ability. Accounting is a very diverse field in which individuals must work closely with their superiors to accomplish given tasks. With regulations and high principles that must be followed in daily work, accountants must act in large part to the expectations of others to complete their tasks correctly. Accountants who trust their superiors and have more confidence in his/her …

Political Rights And Reported Accounting Numbers: An International Study, Chu Chen

Open Access Theses & Dissertations

I examine how managers' behaviors, including earnings management and conservatism, are influenced by the political environments in 38 countries. The results indicate that greater political rights are associated with better earnings quality and more conservative reporting. I find that political institutions substitute for legal institutions in terms of managers' discretional behaviors. Specifically, a marginal increase in political rights will produce a smaller reduction in earnings management behaviors in a country with better investor protection. Similarly, a marginal increase in political rights will encourage a less improvement on accounting conservatism in a country with better investor protection.

Essays In Corporate Finance, Shofiqur Rahman

Open Access Theses & Dissertations

This doctoral Dissertation examines the impact of firms' geographic location and labor market friction, both based on the states in which firms are headquartered, on corporate policies. The first essay examines the impact of the geographical location of the firm on the use of operating leases. The main idea of this essay is that, because obtaining information and monitoring is costly for potential lessors, especially when a lessee is relatively far away from financial centers, rural firms are less likely to use operating leases in comparison to their urban counterparts. Consistent with this hypothesis, I show that rural firms tend …

Three Essays On Auditor Industry Specialization, Ankita Singhvi

Open Access Theses & Dissertations

This Dissertation consists of three separate but related essays examining auditor changes, auditor industry specialization and audit fee premiums.

The first essay investigates whether audit committee characteristics affect the types of auditor changes from an industry specialist auditor to a non-industry specialist auditor or the reverse. I examine whether selection of an external auditor is affected by audit committee characteristics such as: 1) number of meetings, 2) number of members on the audit committee, 3) proportion of auditing experts and, 4) proportion of financial experts. The findings show that a greater proportion of auditing experts on the audit committee positively …

An Evaluation Of The Bachelor Degree In Accounting Program In A Ghanaian Private University, Samuel Adaboh

Dissertations

Problem: There is the growing demand by all stakeholders (teachers, students, employers, governments, and society) for universities and colleges to be more accountable in preparing their products for the challenges of the 21 ^st century. Such demands have fueled interest in the evaluation of student learning in virtually all disciplines in college. There are calls for pedagogic innovations that will improve student learning in college. If any success can be achieved in addressing the challenge of improving the quality of products from higher education, then colleges and universitieshave need for reliable data. Such data can be obtained partly through an …

The Problem Of Abusive Related-Partner Allocations, Gregg D. Polsky, Emily Cauble

Scholarly Works

This Article highlights a flaw in the existing rules regarding partnership tax allocations that has not yet received sufficient attention by existing literature. Namely, the partnership tax allocation rules are implicitly premised on the assumption that partners are unrelated and, thus, transact with each other at arm’s length. As a result, related partners can and do devise tax allocation schemes that exploit the gap in the current partnership tax allocation rules to achieve unwarranted tax savings.

This Article proposes to end this abuse by disallowing special allocations among related partners. Under the proposal, allocations among related partners would be required …

The Reputational Costs Of Tax Avoidance*, John Gallemore, Edward L. Maydew, Jacob Thornock

Faculty Publications

This study investigates whether firms and their top executives bear reputational costs from engaging in aggressive tax avoidance activities. At least two decades of empirical tax research has shown that firms engage in a wide range of strategies for tax avoidance purposes. 1 Recent studies suggest that for many firms, tax avoidance appears to be highly effective at reducing the firms’ tax payments and increasing their after-tax earnings. For example, Dyreng, Hanlon, and Maydew (2008) find that more than a quarter of publicly traded U.S. firms are able to reduce their taxes to less than 20 percent of their pre-tax …

Short Selling Around Restatement Announcements: When Do Bears Pounce?, Michael S. Drake, Linda A. Myers, Susan Scholz, Nathan Y. Sharp

Faculty Publications

This paper draws on two distinct literatures – one that investigates the impact of accounting restatements and another that investigates the trading behavior of short sellers – to further our understanding of how sophisticated investors process and respond to news about accounting corrections. We examine short-seller behavior in the days surrounding restatement announcements to determine when short sellers identify restatements and how they trade on restatement news. Our findings suggest that short sellers do not appear to anticipate restatement announcement dates, but we find that abnormal short selling is significantly higher than is typical when restatements are announced, especially for …

The Media And Mispricing: The Role Of The Business Press In The Pricing Of Accounting Information, Michael S. Drake, Nicholas M. Guest, Brady J. Twedt

Faculty Publications

This study investigates the role of the business press in the pricing of accounting information. Using a comprehensive dataset of more than 111,000 earnings-related business press articles published from 2000–2010, we find that press coverage of the annual earnings announcement mitigates cash flow mispricing, but has a negligible effect on accrual mispricing. We provide evidence that this impact is driven primarily by the press disseminating the information more broadly, rather than by the creation of new content that helps investors understand the implications of accounting information. Our results suggest that the business press plays an important role in facilitating the …

Optimistic Reporting And Pessimistic Investing: Do Pro Forma Earnings Disclosures Attract Short Sellers?*, Theodore E. Christensen, Michael S. Drake, Jacob Thornock

Faculty Publications

When companies announce their quarterly results, along with their standard GAAP earnings number, managers sometimes choose to disclose an adjusted (pro forma) earnings figure that excludes one or more income statement line items from net income. While managers frequently argue that they exclude transitory items from GAAP income in an effort to better reflect core operating performance, regulators and critics of pro forma reporting contend that these exclusions can overstate operating results. In particular, the Securities and Exchange Commission (SEC) issued a warning that under certain circumstances, pro forma reporting “can mislead investors if it obscures GAAP results” (SEC 2001). …

Corporate Governance And Stock Price Crash Risk: Evidence From Uk Panel Data, Valentina Tarkovska

Other resources

No abstract provided.

The Role Of E-Portfolios In Finance Studies: A Cross-Country Study., Lucia Morales, Amparo Soler-Dominguez Dr., Valentina Tarkovska

Articles

This study explores the use of ePortfolios as an efficient assessment tool to support students pursuing a Business degree, where Finance is a major component. We conducted an analysis on the role of ePortfolios in Higher Education at Technological University Dublin (Republic of Ireland) and at Universitat Jaume I (Spain) for undergraduate studies. Our findings suggest that ePortfolios could be used to facilitate and enhance students self-regulated learning experiences where the role of the instructor is fundamental at early stages—to ensure that the learning process comply with basic academic standards—and diminishes as students become familiar with their course requirements, the …

Enhancing Student's Learning With E-Portfolios In Financial Disciplines., Lucia Morales, Amparo Soler-Dominguez Dr., Valentina Tarkovska

Articles

This study explores the contribution ePortfolios can make to the learning process when they are implemented in Higher Education Institutions (HEIs), specifically in financial subjects. The idiosyncrasy of this particular discipline and the technical difficulties arising during the course require resourc es that can keep students engaged and constructively consolidate the contents learnt. The ePortfolio successfully performs these functions. Additionally, ePortfolio use promotes self- regulated learning, ultimately facilitating comprehension and enjoyment of the financial environment. Our findings suggest that students prefer to be more active in the classroom, and the learning-by-doing approach therefore appears to be more effective in technical …

Words Worth Price And Value, Tom Dunne

Articles

TOM DUNNE explains the terms used in relation to the valuation of property, and the need for common understanding among all parties using those terms. -

Redefining Internal Audit Performance: Impact On Corporate Governance, Razimah Binti Abdullah

Theses: Doctorates and Masters

One of the preventive measures to situations akin to world financial crises increasingly forwarded is effective internal audit function (IAF) (e.g., Imhoff, 2003; Mohamad & Muhamad Sori, 2011). Internal audit, a component of corporate governance, continues to evolve due to changes in business strategies and requirements placed on it by legislators. The roles of internal auditors and audit committees (ACs), the key personnel in IAFs, are changing to a more value-added approach as business strategies move towards corporate sustainability and organisational excellence. Suggestions forwarded to improve the performance or determining the quality of IAF include effective involvement of ACs in …

A Theoretical Analysis Of Iso9000 Suppliers, Chiaho Chang

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper looks at the economic behavior of suppliers under different ISO9000 standards, especially that of ISO9001 and ISO9002. Considering the information asymmetry, given the same quality provided, the cost-reducing efforts of the ISO9001 SUPPLIER and ISO9002 SUPPLIER under a fixed, cost-plus contract are investigated. The result shows that the cost-reducing effort of the ISO9002 SUPPLIER is in line with the main manufacturer's expectations while the ISO9001 SUPPLIER is able to keep some of the information rent and exerts less effort. The bargaining power of the ISO9001 SUPPLIER is also stronger relative to that of the ISO9002 SUPPLIER. It is …

Analisis Rasio Lancar Rumah Sakit X, Marsdenia Marsdenia

Jurnal Vokasi Indonesia

Increasing the efficiency of hospital management sustainability is an ongoing financial management guidelines that absolutely must be adopted by any hospital. This study aims at obtaining information about the components that contribute to the fluctuations of the current ratio Hospital X between 2000, 2001 and 2002. This study used quantitative and qualitative approaches, with the primary data source (in-depth interviews to the relevant parties ie Hospital Director, Chief Financial Officer and Vice Director Adiministrasi Finance) and the secondary data source include financial statements. The research shows that RS X’s current ratio are still in a normal range except in the …

Praktik Governance Perbankan Indonesia Ditinjau Dari Aspek Risiko, Erwin Harinurdin, Asti Setiawati, Wahyu Nofiantoro

Jurnal Vokasi Indonesia

Performance -based banking structures Indonesia does not have a normal life characters banking and still largely determined by the ideological and political policies of the government. Banking recovery by using a very protective manner, such as from the purchase of government bonds with limited or margin lending and guaranteed withdrawal. Various indicators such as bank loan-deposit ratio ( LDR ) and the structure of third-party funds that are still dominated by short-term funds such as checking and savings shows that the bank has not been able to carry out its primary function in the economic system, intermediation. In the framework …

Industri Perbankan Yang Terkonsentrasiapakah Tetap Dapat Berkompetisi?Kasus Perbankan Syariah, Sancoko Sancoko

Jurnal Vokasi Indonesia

This paperdiscusses theconditions ofcompetitionbankingindustryin Indonesia, especiallyIslamic Bankingentity. Islamic Bankbecame the objectof research because significant growth in industrial banking.This studyuses a quantitative approachwith adescriptivedesign. Source ofdata used fromindividualbank's annual reporton the websiteof BankIndonesia fromthe period 2008-2011. Tomeasureaspects ofcompetition Islamic Bankingusing Panzar&Rosestatisticmethods. Results of studyshowed thatIslamic banking came into condition of monopolisticcompetitition structure.

Analisis Sistem Akuntansi Pemerintah Pusat (Sapp) Di Kantor Akuntansi Regional Jakarta, Titis Wahyuni

Jurnal Vokasi Indonesia

This research is intended to describe Central Government Accounting System (SAPP) implemented by the State Financial Accounting Agency (BAKUN) through The Regional Accounting Office (KAR) and the expected outcomes of Central Government Accounting System. In a accounting system, financial statements generated rely on the accuracy and validity of data input transactions. The accuracy and validity of the Government's financial statements generated will depend on the quality of the work done by KARs in managing the Government's financial transaction data input. The method usedin this research isby analyzing the problems/obstaclesfaced by KAR Jakarta and also analyzing the process performed by KAR …