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Articles 1 - 30 of 48
Full-Text Articles in Business
Cfo Alert: Do You Know What Your Board Audit Committee Is Up To?, Clarence Goh
Cfo Alert: Do You Know What Your Board Audit Committee Is Up To?, Clarence Goh
Research Collection School Of Accountancy
In October 2014, American Realty Capital Properties – one of the largest real estate investment trusts in the US – stunned the market. Its CEO, David Kay, disclosed that the company had overstated its income in the first quarter of the year – and that executives chose not to correct the error in the second quarter “in order to conceal the error.”
Cross-Listings And Corporate Cash Savings: International Evidence, Yuanto Kusnadi
Cross-Listings And Corporate Cash Savings: International Evidence, Yuanto Kusnadi
Research Collection School Of Accountancy
This paper examines foreign firms that are cross-listed on the U.S. stock exchanges and finds that they exhibit higher cash savings sensitivity to stock price than their non-cross-listed counterparts. This finding is robust even after controlling for alternative regression specifications and samples, country-level institutional infrastructures, different listing types, and the endogeneity of the cross-listing decision. Further cross-sectional tests reveal that the increase in cash savings sensitivity to stock price is more pronounced for cross-listed firms with stock prices that are more informative, which is consistent with the influence of the managerial learning channel. The empirical evidence sheds more light on …
Singapore Boards And Directors – Of Those Who Govern And Direct, Clarence Goh
Singapore Boards And Directors – Of Those Who Govern And Direct, Clarence Goh
Research Collection School Of Accountancy
To provide insights intothe important roles thatdirectors play in thegovernance of firms,the Singapore Instituteof Directors (SID) andInstitute of SingaporeChartered Accountants(ISCA) – in partnershipwith Handshakes;Nanyang BusinessSchool, Nanyang TechnologicalUniversity; NUS Business School,National University of Singapore;Deloitte Singapore, and supportedby the Singapore Exchange (SGX) –conducted a comprehensive study ofthe boards of 717 companies, businesstrusts and REITs listed on the SGXas at end-2013. The study examinedthe structure and composition ofboards, director tenure, remuneration,meeting attendance, gender diversity,and multiple directorships. It alsodocumented the state of compliancewith relevant aspects of the SingaporeCode of Corporate Governance 2012(the Code).
Raising The Bar 3: Essential Finance And Accounting Function Staff Skills, Training Needs And Challenges In Driving Productivity, Clarence Goh
Research Collection School Of Accountancy
Tight manpower environment is likely to continue to be a feature of the Singapore economy. Thus, productivitygrowth is key, for firms to cope with tight labour market and sustaining higher wages.1 Beyond Singapore,productivity is also an area of focus for other Asian economies like Hong Kong and Japan, who face similarchallenges, such as rapidly ageing populations and shrinking workforces.
Determinants Of Ethical Climate In The Firm:The Role Of Governance Systems And Environmental Uncertainty, John J. Williams, Alfred E. Seaman
Determinants Of Ethical Climate In The Firm:The Role Of Governance Systems And Environmental Uncertainty, John J. Williams, Alfred E. Seaman
Research Collection School Of Accountancy
Corporate governance mechanisms essentially reside in the control structure/systems of most organizations and provide, theoretically at least, a conduit to support a better organizational ethical climate. This linkage, however, has seldom been portrayed this way in the literature and, correspondingly, there are virtually no empirical studies to offer increased understanding, especially with respect to the professional accountant in practice. Accordingly, this paper empirically assesses the governance mechanisms sanctioned by the International Federation of Accountants (2009) as determinants of an organization’s ethical climate based on evidence from a Canadian sample of CFOs/controllers. The ethics/leadership literature relating to ethical climate provides the …
The Inclusion Of General Counsel In Top Management And Tax Avoidance, Beng Wee Goh, Jimmy Lee, Jeffrey Ng
The Inclusion Of General Counsel In Top Management And Tax Avoidance, Beng Wee Goh, Jimmy Lee, Jeffrey Ng
Research Collection School Of Accountancy
We examine whether the inclusion of general counsel in top management is associated with a firm’s tax avoidance. We find that firms with general counsel as part of the top management team have lower GAAP effective tax rate, more uncertain tax positions, a higher likelihood of engaging in tax shelter activities, and more tax haven countries in which the firm reports a significant subsidiary, relative to firms without a general counsel in top management. In addition, we find that among firms with general counsel in top management, tax avoidance is greater when (1) the general counsel has tax-related expertise, (2) …
Raising The Bar 2: Challenges To Productivity Initiatives In The Finance And Accounting Function, Clarence Goh
Raising The Bar 2: Challenges To Productivity Initiatives In The Finance And Accounting Function, Clarence Goh
Research Collection School Of Accountancy
Faced with a tightening labour supply, raising productivity has become an increasingly important issue for manybusinesses in Singapore. To understand how this impacts on the F&A functions of businesses, the Instituteof Singapore Chartered Accountants (ISCA) collaborated with Robert Half to survey over 550 senior financeexecutives in Singapore and also the region to understand the focus of F&A functions of businesses andcorporations regarding raising productivity and effectiveness. Our findings are presented in a series of three reportswith the following themes – (1) Trends in implementing productivity initiatives, (2) Challenges faced in implementingproductivity initiatives, and (3) Essential skills and training needed to …
Auditor Switching For Opinion Shopping, And Subsequnt Audit Quality And Audit Fee: Evidence From Post-Sox Period, Jong-Hag Choi, Heesun Chung, Catherine Heyjung Sonu, Yoonseok Zang
Auditor Switching For Opinion Shopping, And Subsequnt Audit Quality And Audit Fee: Evidence From Post-Sox Period, Jong-Hag Choi, Heesun Chung, Catherine Heyjung Sonu, Yoonseok Zang
Research Collection School Of Accountancy
Theory suggests that firms engage in opinion shopping to obtain better audit opinions. However, there is scarce evidence on the economic consequences of the opinion shopping behaviors. In this paper, we examine the effect of auditor switches for opinion shopping on audit quality and audit fees. Using 30,333 firm-year observations over the 2004-2012 period in the U.S., we first document evidence that firms switch their auditors in search for better audit opinions. Next, we find that the audit quality of clients that switch auditors for opinion shopping is significantly lower than that of clients that did not switch auditors or …
Managing The Accounting And Finance Function – Productivity Trends And Focus, Clarence Goh
Managing The Accounting And Finance Function – Productivity Trends And Focus, Clarence Goh
Research Collection School Of Accountancy
We found that firms in Singapore, HongKong, Japan, and China tend to favourstaff-related initiatives over processrelatedones when looking to raiseproductivity, with this being relativelymore prominent in the more developedeconomies of Singapore, Hong Kongand Japan.
Internal Control And Operational Efficiency, Qiang Cheng, Beng Wee Goh, Jae Bum Kim
Internal Control And Operational Efficiency, Qiang Cheng, Beng Wee Goh, Jae Bum Kim
Research Collection School Of Accountancy
In this study, we examine whether and how internal control over financial reporting affects firmoperational efficiency. We find that operational efficiency, derived from the frontier analysis, issignificantly lower among firms with material weaknesses in internal control relative to firmswithout such weaknesses. We document some evidence suggesting that effective internal controlleads to greater operational efficiency through reducing the likelihood of misappropriation ofcorporate resources and through enhancing the quality of internal reports for decision making.We also document that smaller firms benefit more from having effective internal control in termsof operational efficiency. In addition, we find that the market appears to understand the …
A Literature Review Of The Impact Of Extracurricular Activities Participation On Students' Academic Performance, Poh Sun Seow, Gary Pan
A Literature Review Of The Impact Of Extracurricular Activities Participation On Students' Academic Performance, Poh Sun Seow, Gary Pan
Research Collection School Of Accountancy
Extracurricular activities (ECA) have become an important component of students’ school life and many schools have invested significant resources on extracurricular activities. The authors suggest three major theoretical frameworks (zero-sum, developmental, and threshold) to explain the impact of ECA participation on students’ academic performance. The authors urge researchers to conduct future research on the impact of ECA participation so as to extend the stream of research in the accounting education literature on determinants of students’ academic performance.
Raising The Bar: Trends In Implementing Productivity Initiatives In The Finance And Accounting Function, Clarence Goh
Raising The Bar: Trends In Implementing Productivity Initiatives In The Finance And Accounting Function, Clarence Goh
Research Collection School Of Accountancy
Faced with a tightening labour supply, raising productivity has become an increasingly important issue for manybusinesses in Singapore. To understand how this impacts the finance and accounting functions of businesses,the Institute of Singapore Chartered Accountants (ISCA) collaborated with Robert Half to survey over 550senior finance executives in Singapore and also the region to understand the focus of finance and accountingfunctions of businesses regarding raising productivity of these departments or functional units.
Family Firm Research: A Review, Qiang Cheng
Family Firm Research: A Review, Qiang Cheng
Research Collection School Of Accountancy
This article reviews family firm studies in the finance and accounting literature, primarily those conducted using data from the United States and China. Family owners have unique features such as concentrated ownership, long investment horizon, and reputation concerns. Given the distinguishing features of family ownership and control, family firms face unique agency conflicts. We discuss the agency problems in family firms and review the findings of recent family firm studies. We call for more research to understand the unique family effects and encourage more research on Chinese family firms. Part I of the article discusses the fundaments of family firms: …
Do Loan Loss Reserves Behave Like Capital? Evidence From Recent Bank Failures, Jeffrey Ng, Sugata Roychowdhury
Do Loan Loss Reserves Behave Like Capital? Evidence From Recent Bank Failures, Jeffrey Ng, Sugata Roychowdhury
Research Collection School Of Accountancy
Regulatory capital guidelines allow for loan loss reserves to be added back as capital. The evidence in this paper suggests that the influence of loan loss reserves added back as regulatory capital (hereafter referred to as “add-backs”) on bank risk cannot be explained by either economic principles underlying the notion of capital, or accounting principles underlying the recording of reserves. Specifically, we observe that in sharp contrast to the economic notion of capital as a buffer against bank failure risk, add-backs are positively associated with the risk of bank failure during the recent economic crisis. Further the positive association of …
Audit Adjustments Matter: Upholding Financial Reporting Quality, Themin Suwardy, Jean Lin Seow, Chu Yeong Lim
Audit Adjustments Matter: Upholding Financial Reporting Quality, Themin Suwardy, Jean Lin Seow, Chu Yeong Lim
Research Collection School Of Accountancy
No abstract provided.
Economic Consequences Of Apb 14-1: Convertible Debt Accounting, Na Li
Economic Consequences Of Apb 14-1: Convertible Debt Accounting, Na Li
Research Collection School Of Accountancy
Using a set of hand-collected data, I study the economic consequences of APB 14-1, adopted in 2008, which requires that issuers of cash-settled convertible debt divide the total proceeds from the issuances into liability and equity components (“bifurcation”). First, I find that issuers are more likely to reduce the outstanding amount of cash-settled convertible debt when the increase (decrease) in interest expense (leverage ratio) resulting from the bifurcation process is higher (lower). The probability of early repurchase is higher when mandatory accounting changes are included in the calculation of debt covenant compliance. This finding is consistent with the debt contracting …
The New Lyrics Of The Old Folks: The Role Of Family Ownership In Corporate Innovation, Po-Hsuan Hsu, Sterling Huang, Massimo Massa, Hong Zhang
The New Lyrics Of The Old Folks: The Role Of Family Ownership In Corporate Innovation, Po-Hsuan Hsu, Sterling Huang, Massimo Massa, Hong Zhang
Research Collection School Of Accountancy
According to conventional wisdom, family ownership, which signals a lack of social capital and trust in an economy, may impede innovation. This argument, however, fails to recognize that modern family firms can benefit from capitalist institutions that promote innovation. Using a comprehensive sample of U.S. family-owned public firms and patents for the period from 2000 to 2010, we show that family ownership promotes innovation and that this positive effect can be attributed to reduced financial constraints, a greater commitment to long-term value, and improved corporate governance. Causality is confirmed by an instrumental variable analysis using the state-level divorce rate and …
Conservatism And Equity Ownership Of The Founding Family, Shuping Chen, Xia Chen, Qiang Cheng
Conservatism And Equity Ownership Of The Founding Family, Shuping Chen, Xia Chen, Qiang Cheng
Research Collection School Of Accountancy
We investigate the impact of founding family ownership on accounting conservatism. Family ownership is characterised by large, under-diversified equity stake and long investment horizon. These features give family owners both the incentives and the ability to implement conservative financial reporting to reduce legal liability and mitigate agency conflicts with other stakeholders. Since CEOs can have different incentives towards conservatism, we focus on ownership of non-CEO founding family members in our investigation. We find that conservatism increases with non-CEO family ownership, supporting our prediction. This relationship becomes insignificant in family firms with founders serving as CEOs, either due to founder CEOs' …
Should Singapore Adopt 'Say On Pay'?, Clarence Goh
Should Singapore Adopt 'Say On Pay'?, Clarence Goh
Research Collection School Of Accountancy
SoP may require disclosures that could harm a firm's competitive interests.
Should Singapore Adopt 'Say On Pay'?, Clarence Goh
Should Singapore Adopt 'Say On Pay'?, Clarence Goh
Research Collection School Of Accountancy
SoP may require disclosures that could harm a firm's competitive interests.
The Triangular Relationship Between Audit Committee Characteristics, Audit Inputs, And Financial Reporting Quality, Jae Bum Kim, Benjamin Segal, Dan Segal, Yoonseok Zang
The Triangular Relationship Between Audit Committee Characteristics, Audit Inputs, And Financial Reporting Quality, Jae Bum Kim, Benjamin Segal, Dan Segal, Yoonseok Zang
Research Collection School Of Accountancy
Using the exogenous reforms to audit committees mandated by the Sarbanes-Oxley Act of 2002 and a difference-in-difference approach, we examine the impact of changes in audit committee attributes (financial expertise, size, and independence) on firms’ audit inputs and financial reporting quality. Firms directly affected by the reforms experienced a larger improvement in audit inputs (measured by audit fees and the appointment of an industry specialist auditor) and a larger increase in financial reporting quality (measured by restatements of financial reports) relative to firms that were already compliant. Importantly, we find that the decline in restatements is not related to the …
Societal Trust And Corporate Tax Avoidance, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo
Societal Trust And Corporate Tax Avoidance, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo
Research Collection School Of Accountancy
Using an international sample of firms and a country-level index for societal trust, we study how differences in trust across countries relate to corporate tax avoidance. Consistent with our prediction, we find strong evidence that societal trust is negatively associated with corporate tax avoidance by firms, even after controlling for other determinants such as home country tax system characteristics. We also explore the effects of three country-level institutional characteristics – level of investor protection, disclosure requirement, and tax enforcement – on the relation between societal trust and tax avoidance. We predict and find that the effects of trust on tax …
Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae Bum Kim
Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae Bum Kim
Research Collection School Of Accountancy
In this paper, we examine the effect of managers’ pay duration on firms’ voluntary disclosures. Pay duration refers to the average period that it takes for managers’ annual compensation to vest. We hypothesize and find that pay duration can incentivize managers to provide more bad news earnings forecasts. This result holds after controlling for the level of stock-based compensation and the endogeneity of pay duration. In addition, we find that the effect of pay duration is more pronounced for firms with weaker governance and for firms with a more opaque information environment, where the marginal benefits of additional disclosures are …
Influence Of National Culture On Accounting Conservatism And Risk-Taking In The Banking Industry, Kanagaretn Kiridaran, Chee Yeow Lim, Gerald J. Lobo
Influence Of National Culture On Accounting Conservatism And Risk-Taking In The Banking Industry, Kanagaretn Kiridaran, Chee Yeow Lim, Gerald J. Lobo
Research Collection School Of Accountancy
Using an international sample of banks and country-level indices for individualism and uncertainty avoidance as proxies for national culture, we study how differences in culture across countries affect accounting conservatism and bank risk-taking. Consistent with expectations, our cross-country analysis indicates that individualism is negatively (positively) related to conservatism (risk-taking) and uncertainty avoidance is positively (negatively) related to conservatism (risk-taking). We also find that cultures that encourage higher risk-taking experienced more bank failures and bank troubles during the recent financial crisis.
Is Sin Always A Sin? The Interaction Effect Of Social Norms And Financial Incentives On Market Participants’ Behavior, Yanju Liu, Hai Lu, Kevin Veenstra
Is Sin Always A Sin? The Interaction Effect Of Social Norms And Financial Incentives On Market Participants’ Behavior, Yanju Liu, Hai Lu, Kevin Veenstra
Research Collection School Of Accountancy
Using alcohol, tobacco, and gaming consumption data and people’s attitudes toward these sin products to proxy for social norm acceptance levels, we show a strong interaction effect between social norms and financial incentives, which significantly influence the behavior of market participants. Specifically, institutional investors’ shareholdings and analyst coverage of sin companies increase with the degree of social norm acceptance. The association between shareholdings/coverage and social norm acceptance is less pronounced for firms with higher future expected performance. Our results show that social norms and financial incentives have a powerful interaction effect in determining the behavior of market participants, suggesting that …
Causes And Consequences Of Corporate Asset Exchanges By Listed Companies In China, Fang Lou, Jiwei Wang, Hongqi Yuan
Causes And Consequences Of Corporate Asset Exchanges By Listed Companies In China, Fang Lou, Jiwei Wang, Hongqi Yuan
Research Collection School Of Accountancy
China's listed companies often exchange corporate assets with their parent companies. We find that listed companies that have been incompletely restructured from former state-owned enterprises and in sound financial condition tend to exchange higher quality assets for lower quality assets (i.e., tunneling). However, when there is a need to avoid reporting a loss and to raise additional capital, listed companies tend to exchange lower quality assets for higher quality assets (i.e., propping). We also find that the market reacts indifferently to asset exchange announcements. Finally, we find asset exchanges motivated by a tunneling (propping) incentive to be associated with poorer …
Bank Accounting Conservatism And Bank Loan Pricing, Chu Yeong Lim, Edward Lee, Asad Kausar, Martin Walker
Bank Accounting Conservatism And Bank Loan Pricing, Chu Yeong Lim, Edward Lee, Asad Kausar, Martin Walker
Research Collection School Of Accountancy
This paper studies the effects of bank accounting conservatism on the pricing of syndicated bank loans. We provide evidence that banks timelier in loss recognition charge higher spreads. We go onto consider what happens to the relationship between spreads and timeliness in loss recognition during the financial crisis. During the crisis, banks timelier in loss recognition increase their spreads to a lesser extent than banks less timely in loss recognition. These findings are broadly consistent with the argument that conditional accounting conservatism serves a governance role. The policy implication is that banks timelier in loss recognition exhibit more prudent and …
Short Sellers And Corporate Disclosures, Qiang Cheng, Xia Chen, Ting Luo, Heng Yue
Short Sellers And Corporate Disclosures, Qiang Cheng, Xia Chen, Ting Luo, Heng Yue
Research Collection School Of Accountancy
We examine how short sellers affect corporate disclosures using a natural experiment. From May 2005 to July 2007, the SEC implemented a pilot program by randomly selecting one third of Russell 3000 stocks and removing the short sale price tests for these stocks (referred to as pilot firms), leading to lower short-selling constraint, without changing the requirement for other firms (referred to as control firms). We compare the change in corporate disclosures between the pilot firms and the control firms during this period. We find that compared to the control firms, the pilot firms are more likely to issue good …
2nd Isca Productivity Scorecard And Benchmarking Survey Report For The Accountancy Sector In Singapore, Sze Yee Chan, Clarence Goh, Kay Zin
2nd Isca Productivity Scorecard And Benchmarking Survey Report For The Accountancy Sector In Singapore, Sze Yee Chan, Clarence Goh, Kay Zin
Research Collection School Of Accountancy
As the national accountancy body, the Institute of Singapore Chartered Accountants (ISCA) is pleased to publish this secondProductivity Scorecard and Benchmarking Survey Report. This builds upon our inaugural scorecard and benchmarking reportlast year and, more importantly, is in line with our efforts to play a role in the national drive to restructure our economy byraising the productivity of companies in Singapore and helping them move up the value chain.
An Examination Of Earnings Surprises For Urban And Rural Firms, Bok Baik, Jong-Hag Choi, Yoonseok Zang
An Examination Of Earnings Surprises For Urban And Rural Firms, Bok Baik, Jong-Hag Choi, Yoonseok Zang
Research Collection School Of Accountancy
In this paper, we examine the association between firm location and management’s opportunistic financial reporting at earnings announcements. Because of investors’ preference for local stocks and the existence of large investment communities in urban areas, firms located in urban areas (i.e., urban firms) tend to have a higher level of visibility and attention. We predict that this tendency in turn motivates urban firms to opportunistically behave in an earnings surprises game. Consistent with our prediction, we find that (1) urban firms are more likely to report non-negative earnings surprises than rural firms; (2) urban firms are more likely to report …