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Articles 1 - 8 of 8
Full-Text Articles in Business
The Valuation Accuracy Of The Price-Earnings And Price-Book Benchmark Valuation Methods, C. S. Cheng, Ray Mcnamara
The Valuation Accuracy Of The Price-Earnings And Price-Book Benchmark Valuation Methods, C. S. Cheng, Ray Mcnamara
Ray McNamara
This paper evaluates the valuation accuracy of the price-earnings (P/E), the price-book (P/B) and a combined price-earnings and price-book (P/E-P/B) benchmark valuation methods. Performance of the benchmark valuation methods relies on the definition of comparable firms. In this paper, comparable firms are selected based on industry membership, size and return on equity as well as combinations of industry membership with size and with return on equity. We find that within the P/E and P/B benchmark valuation methods, the best definition of the comparable firms are based on industry membership combined with return on equity. However, only the industry membership is …
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart
Pamela Kent
This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger …
Corporate Governance And Company Performance In Australia, Jacqueline Christensen, Pamela Kent, Jenny Steward
Corporate Governance And Company Performance In Australia, Jacqueline Christensen, Pamela Kent, Jenny Steward
Pamela Kent
This study tests whether the adoption of Australian best practice corporate governance recommendations have a positive or negative relation with financial performance measured by return on assets (ROA) and Tobin's Q. The governance mechanisms associated with increased ROA and Tobin's Q are the existence of an audit, nomination and remuneration committee in Australia suggesting they are particularly beneficial to companies. We found evidence that a significant negative relation exits between the number of directors and proportion of independent directors on the board and the presence of a dual CEO/Chairperson and ROA. There is a significant positive relation between the number …
Helping Students Understand Accounting Process Through A Simple Three-Month Case Study, Karel Updyke
Helping Students Understand Accounting Process Through A Simple Three-Month Case Study, Karel Updyke
Karel A. Updyke
No abstract provided.
Assessing Solvency For Financially Distressed Companies, James Routledge, Ray Mcnamara
Assessing Solvency For Financially Distressed Companies, James Routledge, Ray Mcnamara
Ray McNamara
This article reviews past and recent authorities that have addressed the definition and application of the solvency test in s 95A of the Corporations Act 2001 (Cth). The discussion highlights that, when faced with financial distress, company directors need to carefully consider the solvency implications of their decisions. To generate cash to pay debts as they become due, directors may attempt to realise company assets, obtain additional secured or unsecured debt finance or reorganise the timing of payments with creditors. The discussion of relevant cases shows that the solvency implications associated with realisation of assets, use of assets as security …
Reputation, Tenure And Compensation Of Independent Audit Committee Members And Financial Restatements, Vineeta Sharma, Errol Iselin
Reputation, Tenure And Compensation Of Independent Audit Committee Members And Financial Restatements, Vineeta Sharma, Errol Iselin
Errol Iselin
We investigate the association between the reputation, tenure and cash compensation of independent audit committee members and the likelihood of financial restatements. We examine these associations for 138 U.S. public firms that announced their restatements from 1 January 2001 to 31 December 2002 and a set of control firms matched on industry and size. We observe a negative association between financial restatements and (i) reputation of independent audit committee members and (ii) the cash compensation paid to independent audit committee members. Our results suggest that independent audit committee members holding multiple directorships have incentives to enhance and protect their reputation …
An Analysis Of Consensus Among Auditors During Internal Control Evaluations – Australian Evidence, Conor O'Leary, Errol Iselin, Divesh Sharma
An Analysis Of Consensus Among Auditors During Internal Control Evaluations – Australian Evidence, Conor O'Leary, Errol Iselin, Divesh Sharma
Errol Iselin
This study evaluates consensus among Australian auditors in performing internal control evaluations. It extends previous international studies by utilising sufficient cues to enable valid assessment, by including all elements of internal control structure concurrently, and by using appropriate subjects. Ninety-four practicing auditors, representing five firms, evaluated two internal control structures using their current firms' evaluation techniques and a structured model. Results yielded predominantly moderate to high levels of consensus, justifying confidence in the audit profession to act in a self-regulatory manner, as current standards and training appear to be achieving inter-professional agreement.
Audit Firm Manuals And Audit Experts’ Approaches To Internal Control Evaluation, Conor O'Leary, Errol Iselin, Divesh Sharma
Audit Firm Manuals And Audit Experts’ Approaches To Internal Control Evaluation, Conor O'Leary, Errol Iselin, Divesh Sharma
Errol Iselin
Internal control evaluation is a crucial component of external auditing. This study uses more direct research techniques than traditional studies, to investigate what practising auditors consider to be good internal control evaluation methods. It then compares these with the current Australian auditing standard (AUS 402). A review of audit methodologies of three of Australia's largest firms, and interviews with five audit experts were conducted. The results demonstrated a shift towards a 'business risk' approach to internal control evaluation. AUS 402 may not always reflect the modern practice, particularly in relation to the significance of individual control elements. The results therefore …