Open Access. Powered by Scholars. Published by Universities.®
- Keyword
-
- Corporate governance (2)
- Accounting improprieties (1)
- Analyst forecast revision. (1)
- Analysts (1)
- Approach-avoidance theory (1)
-
- Audit committee (1)
- Audit committees (1)
- Audit specialization (1)
- Auditors (1)
- Case study (1)
- China (1)
- Conference calls (1)
- Corporations (1)
- Corruption (1)
- De-escalation (1)
- Decision aids (1)
- Direct method (1)
- Directors (1)
- Disclosure venue (1)
- Earnings forecasts (1)
- Earnings response (1)
- Enron (1)
- Equity valuation (1)
- Escalation (1)
- External auditors (1)
- Extra-legal institutions (1)
- Financial reporting (1)
- Forecasting future cash flows and earnings (1)
- Foreign ownership (1)
- Fraud risk assessments (1)
Articles 1 - 16 of 16
Full-Text Articles in Business
Feedback On Proposals By The Committee To Develop The Accountancy Sector, Tan, Pearl Hock-Neo
Feedback On Proposals By The Committee To Develop The Accountancy Sector, Tan, Pearl Hock-Neo
Research Collection School Of Accountancy
No abstract provided.
Brokerage Industry Self-Regulation: The Case Of Analysts’ Background Disclosures, Lawrence Brown, Artur Hugon, Hai Lu
Brokerage Industry Self-Regulation: The Case Of Analysts’ Background Disclosures, Lawrence Brown, Artur Hugon, Hai Lu
Research Collection School Of Accountancy
We evaluate an industry disclosure initiative designed to inform investors, the practice of providing information regarding investment professionals’ backgrounds. Implicit in the motivation for this initiative is the presumed relevance of background information to investors seeking investment professionals’ guidance. We find that analysts with disclosure incidents forecast less accurately than a matched sample of analysts without such disclosures, and that the market views disclosed analysts’ earnings forecasts as less credible than those of the matched sample. Our evidence is consistent with disclosures signaling a persistent analyst characteristic. We conclude that analyst backgrounds are informative regarding both the accuracy and credibility …
The Impact Of Earnings On The Pricing Of Credit Default Swaps, Dan Segal, Jeffrey L. Callen, Joshua Livnat
The Impact Of Earnings On The Pricing Of Credit Default Swaps, Dan Segal, Jeffrey L. Callen, Joshua Livnat
Research Collection School Of Accountancy
This study evaluates the impact of earnings on credit risk in the Credit Default Swap (CDS) market using levels, changes, and event study analyses. We find that earnings (cash flows, accruals) of reference firms are negatively and significantly correlated with the level of CDS premia, consistent with earnings (cash flows, accruals) conveying information about default risk. Based on the changes analysis, a 1 percent increase in ROA decreases CDS rates significantly by about 5 percent. We also find that (1) CDS premia are more highly correlated with below-median earnings than with above-median earnings and (2) CDS premia are more highly …
A Survey Of The Oversight Of External Auditors Through The Lenses Of Audit Committee Chairmen, See Liang Foo, Luck Pia Ng, Kwong Sin Leong, Yang Hoong Pang
A Survey Of The Oversight Of External Auditors Through The Lenses Of Audit Committee Chairmen, See Liang Foo, Luck Pia Ng, Kwong Sin Leong, Yang Hoong Pang
Research Collection School Of Accountancy
No abstract provided.
Ownership, Institutions, And Capital Structure: Evidence From China, Kai Li, Heng Yue, Longkai Zhao
Ownership, Institutions, And Capital Structure: Evidence From China, Kai Li, Heng Yue, Longkai Zhao
Research Collection School Of Accountancy
We employ a unique data set to explore the role of ownership structure and institutional development in debt financing of non-publicly traded Chinese firms. We show that state ownership is positively associated with leverage and firms’ access to long-term debt, while foreign ownership is negatively associated with all measures of leverage. Surprisingly, firms in better developed regions are associated with reduced access to long-term debt, suggesting the availability of alternative financing channels and the tightening of the lending standards under the on-going banking reform. The combination of ownership structures and institutions explains up to 6% of the total variation in …
The Many Faces Of An Income Statement, Themin Suwardy, Teng Aun Khoo
The Many Faces Of An Income Statement, Themin Suwardy, Teng Aun Khoo
Research Collection School Of Accountancy
When a company an- have no problem understandingnounces its financial the "nature" of this cost. However,results, most analysts if we were to allocate staff costs byand media coverage function, one would have to classitendto focus on its in- fy staff costs into all the functionscome statement, usually with of the entity, eg the wages of an emyear-on-yearor other periodic com- ployee working in the marketing deparisonsof performance.
Effects Of Country-Level Legal, Extra-Legal And Political Institutions On Auditing: A Cross-Country Analysis Of The Auditor Specialization Premium, Bin Sirinidhi, Chee Yeow Lim, Mahmud Hossain
Effects Of Country-Level Legal, Extra-Legal And Political Institutions On Auditing: A Cross-Country Analysis Of The Auditor Specialization Premium, Bin Sirinidhi, Chee Yeow Lim, Mahmud Hossain
Research Collection School Of Accountancy
In this cross-country study of the specialist auditor premium, which spans the US and 12 other countries, we provide evidence that country-level institutional strength increases average audit fees, but reduces the incremental demand for specialist auditors. This finding supports the hypothesis that strong institutions and the demand for specialist knowledge act as substitutes in providing the requisite assurance of financial statements.
Audit Committees, Boards Of Directors, And Remediation Of Material Weaknesses In Internal Control, Beng Wee Goh
Audit Committees, Boards Of Directors, And Remediation Of Material Weaknesses In Internal Control, Beng Wee Goh
Research Collection School Of Accountancy
The Sarbanes-Oxley Act (SOX) was passed in 2002 in response to a series ofaccounting improprieties at well-known companies such as Enron and WorldCom.One important aspect of SOX is the internal control requirements. SOX section302 requires that management evaluate the effectiveness of disclosure and controlprocedures, report results of the evaluation, and indicate any “significant changes”in internal controls since the last 10-K or 10-Q report (Securities and ExchangeCommission [SEC] 2002). In addition, SOX section 404 requires that manage-ment’s assessment of the effectiveness of internal control over financial reportingand auditors’ attestation on management’s assessment be included in firms’ 10-Kreports (SEC 2003a). The heightened …
The Long-Term Effects Of Cross-Listing, Investor Recognition, And Ownership Structure On Valuation, Michael R. King, Dan Segal
The Long-Term Effects Of Cross-Listing, Investor Recognition, And Ownership Structure On Valuation, Michael R. King, Dan Segal
Research Collection School Of Accountancy
We show that investor recognition and bonding associated with a U.S. cross-listing are distinct effects using a sample of Canadian firms. In contrast to the post-listing decline documented in the literature, we find that cross-listed firms with a single class of shares enjoy a permanent increase in valuation if they attract and maintain investor recognition over time. Valuations of firms that fail to widen their U.S. shareholder base return to pre-listing levels within two years. Cross-listed firms with dual-class shares exhibit a permanent increase in valuation regardless of the level of U.S. investor holdings, consistent with firm-level bonding.
Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows And Earnings?, Steven F. Orpurt, Yoonseok Zang
Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows And Earnings?, Steven F. Orpurt, Yoonseok Zang
Research Collection School Of Accountancy
Motivated by recent FASB, IASB, and CFA Institute comments, we explore the predictive value of direct method cash flow disclosures. A primary stated purpose of the direct method is to better forecast future performance. To examine this purpose, we first document that direct method line items, such as cash received from customers, are not reliably estimable using income statements and either balance sheets or indirect method statements of cash flows. When these estimation (articulation) errors are included in cash flows and earnings forecasting models, forecasting performance significantly improves. In addition, employing a future ERC (FERC) methodology, we find evidence suggesting …
Disclosure Of Management Guidance In Conference Calls: Materiality, Determinants And Consequences, Benjamin Lansford, Jimmy Kiat Bee Lee, Jennifer W. Tucker
Disclosure Of Management Guidance In Conference Calls: Materiality, Determinants And Consequences, Benjamin Lansford, Jimmy Kiat Bee Lee, Jennifer W. Tucker
Research Collection School Of Accountancy
The SEC advises firms to release all material information in their earnings announcement press release before their corresponding conference call. Until May 2009, the NYSE went further by explicitly prohibiting the disclosure of new material information in a conference call. However, we document that the S&P 500 firms, including those that are NYSE-listed, disclose a non-trivial amount of management guidance exclusively in their conference calls. Firms in challenging forecasting environments rely more on the conference call, probably because the call enables managers to “flesh out” the guidance. In contrast, firms with relatively low investor visibility and high litigation risk rely …
Cue Usage In Financial Statement Fraud Risk Assessments: Effects Of Technical Knowledge And Decision Aid Use, Jean Lin Seow
Cue Usage In Financial Statement Fraud Risk Assessments: Effects Of Technical Knowledge And Decision Aid Use, Jean Lin Seow
Research Collection School Of Accountancy
This paper investigates the effects of technical knowledge and decision aid use on financial statement fraud risk assessments made by directors and students. More extreme fraud risk assessments are made when participants identify and process larger (smaller) numbers of diagnostic (non-diagnostic) factors, with technical knowledge driving diagnostic factor identification. Significant decision aid-technical knowledge effects are also found; decision aid use has a detrimental effect on high-knowledge directors while improving performance in inexperienced, low-knowledge students. These results suggest that although decision aids can afford gains in performance in inexperienced users, they can have unintended and/or paradoxical behavioural effects on experienced users.
National Corporate Governance And Corruption Prevention, Soo Ping Lim
National Corporate Governance And Corruption Prevention, Soo Ping Lim
Research Collection School Of Accountancy
No abstract provided.
Managing Information Technology Project Escalation And De-Escalation: An Approach-Avoidance Perspective, Gary Pan, Shan Ling Pan, Michael Newman
Managing Information Technology Project Escalation And De-Escalation: An Approach-Avoidance Perspective, Gary Pan, Shan Ling Pan, Michael Newman
Research Collection School Of Accountancy
This paper presents an integrated theoretical process model for identifying , describing, and analyzing the complex escalation and de-escalation phenomena in software development projects. The approach-avoidance theory is used to integrate core elements of various escalation theories into a holistic, explanatory framework for the two phenomena. We use a process model to identify antecedent conditions, sequences of events, critical incidents, and outcomes over the course of a project. The analysis also operates at multiple levels: project, work, and environment. This highlights the recursive interactions between project, organizational work activities, and their contexts during the software project development process. By conceiving …
Asking Tougher Questions In Tough Times, Irving Low, Claudia Eio, See Liang Foo, Yang Hoong Pang, Kwong Sin Leong, John Joseph Williams
Asking Tougher Questions In Tough Times, Irving Low, Claudia Eio, See Liang Foo, Yang Hoong Pang, Kwong Sin Leong, John Joseph Williams
Research Collection School Of Accountancy
The recent wave of corporate governance disasters globally raises many eyebrows and burning questions whether audit committees (ACs) are doing the right things to effectively discharge their roles and responsibilities. To further test the integrity and reputation of the Singapore market as a listing gateway for foreign companies in turbulent times like these, the headlines are also reporting a spate of suspected and actual corporate fraud and scandals involving China-based, Singapore listed companies (commonly referred to as “S-chips”). Many angry investors and the public question whether ACs and independent directors are doing their jobs.
The Role Of Accounting Information In The Sentiment-Price Relation, Kun-Chih Chen
The Role Of Accounting Information In The Sentiment-Price Relation, Kun-Chih Chen
Research Collection School Of Accountancy
This study reconciles inconsistent evidence on the sentiment-price relation in prior studies by explicitly considering the effects of sentiment on both investor judgments and risk preferences. Using the uncertainty in accounting information, I am able to disentangle these two effects of sentiment and investigate the causes of the variations in the sentiment-price relation. The results show that, under low uncertainty, the effect of sentiment on risk preferences dominates in the sentiment-price relation, such that a negative effect of sentiment on price is observed. In contrast, under high uncertainty, the effect is less negative and, in fact, becomes positive. This suggests …