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Articles 1 - 30 of 42
Full-Text Articles in Business
Riding The Blockchain Mania: Public Firms’ Speculative 8-K Disclosures, Pengkai Lin
Riding The Blockchain Mania: Public Firms’ Speculative 8-K Disclosures, Pengkai Lin
Research Collection School Of Accountancy
This paper provides evidence on public firms' initial 8-K disclosures that mention Blockchain and investors' response to these disclosures. We categorize the description of Blockchain activities in firms' 8-Ks as Speculative (e.g., a vague future plan that involves Blockchain) or Existing (e.g., a description of Blockchain product). We document a sharp increase in the number of initial 8-K disclosures of Blockchain, particularly by Speculative firms, coinciding with the rise of Bitcoin prices and excitement in Blockchain technology in the last quarter of 2017. Investors react positively to the Blockchain 8-Ks issued by Speculative firms in the initial seven-day event window …
Chief Financial Officer Demographic Characteristics And Fraudulent Financial Reporting In China, Jinghui Sun, Pamela Kent, Baolei Qi, Jiwei Wang
Chief Financial Officer Demographic Characteristics And Fraudulent Financial Reporting In China, Jinghui Sun, Pamela Kent, Baolei Qi, Jiwei Wang
Research Collection School Of Accountancy
We investigate whether management's cognitions, values and perceptions are associated with fraud for 18 863 firm-years for Chinese listed firms from 2000 to 2014. Demographic characteristics of the chief financial officer (CFO) are used as proxies for management's cognitions, values and perceptions. We find that fraudulent financial reporting is higher when CFOs are younger, male, and have lower education backgrounds. An analysis of inflated earnings, fictitious assets, material omissions and other material misstatements provide similar results, with the exception that CFOs with higher education levels are associated with more inflated earnings. Accounting and Finance
Regulations And Brain Drain: Evidence From Wall Street Star Analysts’ Career Choices, Yuyan Guan, Congcong Li, Hai Lu, Franco Wong
Regulations And Brain Drain: Evidence From Wall Street Star Analysts’ Career Choices, Yuyan Guan, Congcong Li, Hai Lu, Franco Wong
Research Collection School Of Accountancy
The Global Settlement, along with related regulations in the early 2000s, prohibits the use of investment banking revenue to fund equity research and compensate equity analysts. We find that all-star analysts from investment banks are more likely to exit the profession or move to the buy side after the regulations. The departed star analysts’ earnings revisions and stock recommendations are more informative than those of the remaining analysts who followed the same companies. To the extent that star analysts are superior to their nonstar counterparts in terms of research ability and ability to inform the market, the exit of star …
Spillover Effects Of Clients’ Tax Enforcement On Financial Statement Auditors: Evidence From A Discontinuity Design, Travis K. Chow, Jeffrey Pittman, Muzhi Wang, Le Zhao
Spillover Effects Of Clients’ Tax Enforcement On Financial Statement Auditors: Evidence From A Discontinuity Design, Travis K. Chow, Jeffrey Pittman, Muzhi Wang, Le Zhao
Research Collection School Of Accountancy
We examine the impact of clients’ tax enforcement on financial statement auditors. In a regression discontinuity design, we exploit the firm-registration-date-based application of a new rule that assigns firms to two different tax enforcement regimes. Our analysis implies that auditors exert less effort–evident in lower audit fees and shorter audit report lags–when their clients are monitored by the more stringent tax authority. In results supporting that audit quality improves in this situation despite the fall in auditor effort, we report that clients subject to tougher tax enforcement exhibit a lower incidence of accounting restatements and tax-related restatements. Additionally, we find …
Examining Learning Transformation In Project-Based Learning Process, Gary Pan, Poh Sun Seow, Grace Koh
Examining Learning Transformation In Project-Based Learning Process, Gary Pan, Poh Sun Seow, Grace Koh
Research Collection School Of Accountancy
This paper presents a learning transformation framework for analyzing how learning evolves during project-based learning process. Here we adopt Lewin’s (1951) change theory as an analytical lens to examine the project-based learning curriculum at a University called UNI-X. This is a major contribution to PBL literature as little is known about the dynamics of learning during PBL process. In fact, the learning transformation framework can serve as the basis for further research in PBL process. For educators, this study provides them with useful insights on how to break project members’ escalating commitment to previous failing ideas and accept alternative workable …
Understanding The Connection Of Performance And Z-Scores For Manufacturing Firms In South Korea, S.L. Foo, Shaakalya Pathak
Understanding The Connection Of Performance And Z-Scores For Manufacturing Firms In South Korea, S.L. Foo, Shaakalya Pathak
Research Collection School Of Accountancy
South Korea is a key leading economy in the Asia Pacific region. This study examines the relationship between the financial health, as measured by the Altman Z-Score, and corporate performance, as measured by the Return on Equity (ROE), of listed manufacturing companies in this market. A linear regression has been conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a five-year period have also been analysed. The analysis covers the period from 2013 to 2017 (inclusive) and yields a statistically positive correlation between ROE and the Z-Score for the market. South …
More Than The Bottom Line, Edmund Keung, Themin Suwardy, Yew Kee Ho
More Than The Bottom Line, Edmund Keung, Themin Suwardy, Yew Kee Ho
Research Collection School Of Accountancy
In the second instalment of a three-part series on financial literacy, SMU Dean of Postgraduate Professional Programmes and Associate Professor of Accounting (Practice) Themin Suwardy, NUS Associate Professor of Accounting Edmund Keung and SIT Associate Provost and Professor of Accounting Ho Yew Kee discussed three important accounting concepts that investors need to understand in order to know how a company is performing financially.
Political Connections And The Value Of Cash Holdings, Yuanto Kusnadi
Political Connections And The Value Of Cash Holdings, Yuanto Kusnadi
Research Collection School Of Accountancy
This study examines how political connections influence the value of cash holdings in an international setting. The main finding reveals that political connections are not associated with the value of cash holdings in the overall sample. However, further analysis demonstrates that political connections are negatively associated with the value of cash holdings for firms inemerging markets and in countries with high levels of corruption. Moreover, the negative valuation of cash holdings is driven by firms that are connected through large shareholders. Overall, the findings provide new insights into the value relevance of cash holdings, especially for politically connected firms.
An Examination Of Corporate Performance And Altman Z-Scores Of Indian Manufacturing Firms, See Liang Foo, Shaakalya Pathak
An Examination Of Corporate Performance And Altman Z-Scores Of Indian Manufacturing Firms, See Liang Foo, Shaakalya Pathak
Research Collection School Of Accountancy
India is a key leading economy in the Asia Pacific region. This study examines the relationship between the financial health, as measured by the Altman Z-Score, and corporate performance, as measured by the Return on Equity (ROE), of listed manufacturing companies in this market. A linear regression has been conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a five-year period have also been analysed. The analysis covers the period from 2013 to 2017 (inclusive) and yields a statistically positive correlation between ROE and the Z-Score for the market. India registered …
The Minimum Wage And Corporate Tax Planning, Xiaoxi Li, Chee Yeow Lim, Yanping Xu
The Minimum Wage And Corporate Tax Planning, Xiaoxi Li, Chee Yeow Lim, Yanping Xu
Research Collection School Of Accountancy
This paper investigates the impact of the minimum wage (MW) on corporate tax planning. By exploiting heterogeneity in the MW level across cities and over time in China, we find that increases in the MW are associated with greater tax planning by firms. Our results are robust to the consideration of a sample of contiguous firms in two adjacent cities subject to different MWs, a change specification and a difference-in-differences research design that exploits the enactment of the Labor Contract Law in 2008 as an exogenous shock to the MW. In cross-sectional analyses, we find that the positive impact of …
Deciphering Financial Statements In Annual Reports, Themin Suwardy, Yew Kee Ho, Edmund Keung
Deciphering Financial Statements In Annual Reports, Themin Suwardy, Yew Kee Ho, Edmund Keung
Research Collection School Of Accountancy
In the first of a three-part weekly series on financial literacy, SMU Dean of Postgraduate Professional Programmes and Associate Professor of Accounting (Practice) Themin Suwardy, SIT’s Professor Ho Yew Kee and Associate Professor Edmund Keong from NUS discussed the importance of learning to read and analyse financial statements. They opined that being able to decipher financial statements is critical if an investor wants to have a real understanding of a company's profitability, liquidity and cash position. This will equip them with useful information to make informed decisions.
Studying The Relationship Between Japanese Firms' Corporate Health And Results, See Liang Foo, Shaakalya Pathak
Studying The Relationship Between Japanese Firms' Corporate Health And Results, See Liang Foo, Shaakalya Pathak
Research Collection School Of Accountancy
Japan is a key leading economy in the Asia Pacific region. This study examines the relationship between the financial health, as measured by the Altman Z-Score, and corporate performance, as measured by the Return on Equity (ROE), of listed manufacturing companies in this market (the Tokyo Stock Exchange). A linear regression has been conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a five-year period have also been analysed. The analysis covers the period from 2013 to 2017 (inclusive) and yields a statistically positive correlation between ROE and the Z-Score for …
Family Firms And Labor Market Regulation, Morten Bennedsen, Sterling Huang, Hannes F. Wagner, Stefan Zeume
Family Firms And Labor Market Regulation, Morten Bennedsen, Sterling Huang, Hannes F. Wagner, Stefan Zeume
Research Collection School Of Accountancy
In a panel across twenty-eight countries over 10 years, we show that family firms on average enjoy performance advantages over nonfamily firms only when labor markets are less regulated. We confirm this result in a matched firm sample using a survey-based instrument as a family control. Furthermore, family firms exhibit lower variation in employment levels in less-regulated labor markets, supporting the notion that labor relations drive family firms’ performance advantages. Our results are consistent with the notion that both family ownership and labor market reforms provide employment protection and thus partly substitute as governance mechanisms.
Do Firms Manage Their Csr Reputation? Evidence From Twitter, Richard M. Crowley, Wenli Huang, Hai Lu, Wei Luo
Do Firms Manage Their Csr Reputation? Evidence From Twitter, Richard M. Crowley, Wenli Huang, Hai Lu, Wei Luo
Research Collection School Of Accountancy
Using a machine learning approach to process 11 million tweets posted by S&P 1500 firms from 2011 through 2016, we find that poor CSR performance firms tweet more about CSR activities and use tweets that are shorter, and with more passive voice and extreme tone. Good CSR performance firms tweet less about CSR, yet gain twice more followers per CSR tweet than poor CSR performance firms. Good CSR performance firms also experience a greater decrease in institutional ownership along with higher increases in bid-ask spread and stock return volatility after joining Twitter than do poor CSR performance firms. Our findings …
Informativeness Of The Expanded Audit Report: Evidence From China, Beng Wee Goh, Jimmy Lee, Dan Li, Muzhi Wang
Informativeness Of The Expanded Audit Report: Evidence From China, Beng Wee Goh, Jimmy Lee, Dan Li, Muzhi Wang
Research Collection School Of Accountancy
This study investigates whether the expanded audit report is informative to investors in the setting of an emerging economy. Using the recent staggered adoption of the expanded audit report for A+H and A share firms in China, we find robust evidence that abnormal trading volume and earnings response coefficients are higher, and stock price synchronicity are lower, in the post-adoption periods than in the pre-adoption periods. In additional tests, we find that the expanded audit report is more informative for non-State Owned Enterprises and for firms with higher information asymmetry. Overall, our study documents systematic evidence that the expanded audit …
善用数据分析提升企业决策质量 [Using Data Analysis To Improve On Quality Of Business Solutions], Benjamin Huan Zhou Lee
善用数据分析提升企业决策质量 [Using Data Analysis To Improve On Quality Of Business Solutions], Benjamin Huan Zhou Lee
Research Collection School Of Accountancy
No abstract provided.
Charting The Future Of Accountancy With Ai, Clarence Goh, Gary Pan, Poh Sun Seow, Benjamin Huan Zhou Lee, Melvin Yong
Charting The Future Of Accountancy With Ai, Clarence Goh, Gary Pan, Poh Sun Seow, Benjamin Huan Zhou Lee, Melvin Yong
Research Collection School Of Accountancy
No abstract provided.
Grooming The Next Generation Of Accounting Professionals For The Age Of Artificial Intelligence., Gary Pan, Poh Sun Seow, Clarence Goh, Benjamin Huan Zhou Lee
Grooming The Next Generation Of Accounting Professionals For The Age Of Artificial Intelligence., Gary Pan, Poh Sun Seow, Clarence Goh, Benjamin Huan Zhou Lee
Research Collection School Of Accountancy
The chapter examines how we can equip the future generations of accountants with skills that will allow them to thrive in the AI world of the future.
Auditor Choice And Information Asymmetry: Evidence From International Syndicated Loans, Zhiming Ma, Derrald Stice, Rencheng Wang
Auditor Choice And Information Asymmetry: Evidence From International Syndicated Loans, Zhiming Ma, Derrald Stice, Rencheng Wang
Research Collection School Of Accountancy
Analyzing a large sample of non-US public firms from 31 countries that obtain private loans, we find that loan syndicates that lend to borrowers that employ Big N auditors are larger and less concentrated and that the lead arrangers and largest investors of these syndicates are able to hold a lower proportion of the loan after issuance. Further analysis demonstrates that this effect exists only in countries with strong creditor rights and in those countries with high levels of societal trust, suggesting that both sound formal and informal institutional factors are prerequisites for lenders and borrowers to benefit from differential …
The Effects Of Corporate Reputation And Compensation Disclosure On Investor Judgments, Poh Sun Seow, Clarence Goh, Gary Pan
The Effects Of Corporate Reputation And Compensation Disclosure On Investor Judgments, Poh Sun Seow, Clarence Goh, Gary Pan
Research Collection School Of Accountancy
Regulators have increased the disclosure requirements of top executives as part of corporate governance reform. This study examines how trust arising from a firm’s corporate reputation will interact with top executive compensation disclosure to influence investor judgments. This study used a 2 X 2 between subjects experimental design, with corporate reputation (good versus bad) and pay ratio (high versus low) as independent variables to test the hypotheses. The key findings show that if the firm with a good corporate reputation discloses a high pay ratio, participants punished the good reputation firm more than the bad reputation firm, demonstrating a negative …
Readability Of 10-K Reports And Stock Price Crash Risk, Chansog (Francis) Kim, Ke Wang, Liandong Zhang
Readability Of 10-K Reports And Stock Price Crash Risk, Chansog (Francis) Kim, Ke Wang, Liandong Zhang
Research Collection School Of Accountancy
This study shows that less readable 10‐K reports are associated with higher stock price crash risk. The results are consistent with the argument that managers can successfully hide adverse information by writing complex financial reports, which leads to stock price crashes when the hidden bad news accumulates and reaches a tipping point. Cross‐sectional analyses show that the effect of financial reporting complexity on crash risk is more pronounced for firms with persistent negative earnings news or transitory positive earnings news, greater chief executive officer stock option incentives, or lower litigation risk. Finally, accrual manipulation appears to be positively related to …
Opinion Shopping To Avoid Going Concern Audit Opinion And Subsequent Audit Quality, Heesun Chung, Catherine Heyjung Sonu, Yoonseok Zang, Jong-Hag Choi
Opinion Shopping To Avoid Going Concern Audit Opinion And Subsequent Audit Quality, Heesun Chung, Catherine Heyjung Sonu, Yoonseok Zang, Jong-Hag Choi
Research Collection School Of Accountancy
Despite regulatory concerns over opinion shopping (OS) behavior, there exists little systematic evidence on the prevalence and consequences of OS to avoid a going concern opinion (GCO). Using Lennox's (2000) framework to identify OS, we find that distressed firms successfully engage in OS to avoid a GCO. Moreover, clients engaging in OS exhibit a higher ex post Type II error rate in audit opinions than clients that do not, and the higher Type II error rate is salient for clients switching auditors for OS but not for clients retaining auditors for OS. We continue to find this asymmetric effect of …
Stock Price Contagion Effects Of Low-Quality Audits At The Individual Audit Partner Level, Ferdinand A. Gul, Chee Yeow Lim, Kun Wang, Yanping Xu
Stock Price Contagion Effects Of Low-Quality Audits At The Individual Audit Partner Level, Ferdinand A. Gul, Chee Yeow Lim, Kun Wang, Yanping Xu
Research Collection School Of Accountancy
We use Chinese audit partner data to show that partners associated with financial reporting fraudinduce share price declines among non-fraudulent firms audited by the same audit partners. In cross-sectionalanalyses, we find that share price declines are more pronounced when low-quality partners (LQPs) failed to issuemodified audit opinions during the period in question and when the LQPs were from one of the Top 10 audit firms.Additional analyses show that investors impose larger penalties on contagion firms when fraudulent firms are largerand the time lapse between sanction and fraud commitment is shorter. The personal characteristics of LQPs (exceptgender) do not cause a …
Recommendations From Sec’S Plain English Handbook: Perspectives From Behavioral Research, Clarence Goh
Recommendations From Sec’S Plain English Handbook: Perspectives From Behavioral Research, Clarence Goh
Research Collection School Of Accountancy
The SEC published the plain English handbook in 1998 with the objective of providing preparers of financial disclosures with a guide to using well-established techniques to create clearer and more informative disclosure documents. The handbook provides various recommendations to preparers of disclosure documents. In this study, I examine and systematically synthesize the extent behavioural research literature that investigates the impact of implementing these recommendations on investors. I do so by developing a framework to systematically examine relevant studies. Overall, the analysis provides important insights from a behavioural perspective into how and why investors react to various recommendations in the SEC’s …
Debt Heterogeneity And Covenants, Yun Lou, Clemens A. Otto
Debt Heterogeneity And Covenants, Yun Lou, Clemens A. Otto
Research Collection School Of Accountancy
Coordination failure among owners of heterogeneous debt types increases distress costs. Covenants reduce expected distress costs by lowering the probability of liquidity shortages, increasing liquidation values, and incentivizing creditor monitoring. We predict and find that new debt contracts include more covenants when borrowers' existing debt structures are more heterogeneous. Our findings suggest that covenants are not only used to address creditor-shareholder conflicts but also to reduce the expected costs of coordination failure among creditors. Further, our results indicate a dynamic component missing from static debt structure models: Debt heterogeneity entails additional covenants (i.e., constraints) when raising future debt.
Much Ado About Audit Opinions, Themin Suwardy
Much Ado About Audit Opinions, Themin Suwardy
Research Collection School Of Accountancy
In a commentary, SMU Associate Professor of Accounting (Practice) and Dean of Postgraduate Professional Programmes Themin Suwardy opined that with a better understanding of the various types of modified audit opinions, investors can react appropriately to the news of companies failing to get a clean opinion. He added that investors should ask tougher questions about key audit matters at annual general meetings in order to get a more rounded and informed picture of a company’s financial and operating status.
Information Sharing Between Mutual Funds And Auditors, Ole-Kristian Hope, Pingui Rao, Yanping Xu, Heng Yue
Information Sharing Between Mutual Funds And Auditors, Ole-Kristian Hope, Pingui Rao, Yanping Xu, Heng Yue
Research Collection School Of Accountancy
This paper examines whether there is information sharing between mutual funds and their auditors about the auditors’ other listed firm clients. Using detailed hand-collected data from the Chinese market and employing levels, changes, and PSM analyses, we find that mutual funds earn higher profits from trading in firms that share the same auditors. The effects are more pronounced when firms have a more opaque information environment and when the audit partners for the fund and the partners for the listed firm share school ties. The evidence is consistent with information flowing from auditors to mutual funds, providing mutual funds with …
An Analysis Of Z-Scores And Performance: Manufacturing Companies In Hong Kong, S.L. Foo, Shaakalya Pathak
An Analysis Of Z-Scores And Performance: Manufacturing Companies In Hong Kong, S.L. Foo, Shaakalya Pathak
Research Collection School Of Accountancy
Hong Kong is a key leading economy in the Asia Pacific region. This study examines the relationship between the financial health, as measured by the Altman Z-Score, and corporate performance, as measured by the Return on Equity (ROE), of listed manufacturing companies in this market. A linear regression has been conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a five-year period have also been analysed. The analysis covers the period from 2013 to 2017 (inclusive) and yields a statistically positive correlation between ROE and the Z-Score for the market. Hong …
Disclosure Of Pending Lawsuits And Bond Terms, Yun Lou
Disclosure Of Pending Lawsuits And Bond Terms, Yun Lou
Research Collection School Of Accountancy
I examine the effect of the disclosure of pendinglawsuits in 10-K/Q filings on the contractual terms of newly issued bonds. Ifind that firms’ decision to disclose pending lawsuits and the amount ofdisclosed information (i.e., the level of disclosure) have opposite effects.Specifically, firms that disclose a higher proportion of their pending lawsuitsface higher yields and are more likely to include default clauses pertaining tocourt judgments in the bond prospectuses. However, within the subsample offirms that disclose their lawsuits, I find that firms with a higher level of disclosureregarding their pending lawsuits are rewarded with lower yields. This evidencesuggests that bond investors …
The Impact Of Double Tax Treaties On Inward Fdi In Asean Countries, Yue Dong
The Impact Of Double Tax Treaties On Inward Fdi In Asean Countries, Yue Dong
Research Collection School Of Accountancy
This study aims to assess the impact of double taxation treaties (DTT) on FDI inflows in 10 ASEAN countries from 1989 to 2016. There are two objectives of double taxation treaties. The first one is to alleviate the problem of global double taxation, which has a stimulating effect on FDI. The second objective is the sharing of information between governments, which can prevent tax evasion and thus discourage FDI. The findings suggest that new DTTs in ASEAN have a positive but insignificant impact on the FDI inflows into the region. However, the impact of old DTTs on FDI is significantly …