Accounting Commons^™

Leadership Competency, Service Time, And Gender Orientation: A Comparative Study Of Cpa Leaders, Delores Cauthorne King

Walden Dissertations and Doctoral Studies

Working in environments that could be described as task-oriented, certified public accountants (CPAs) are generally considered to be leaders. In 2015, within the United States, fewer than 30% of CPAs were women. Based on the theoretical framework of Eagly and Karau's role congruity theory and Bandura's social learning theory, this survey study sought to understand the relationship between self-rated leadership competency, service time, and gender orientation of female CPAs in leadership positions for 5 years or more, compared to men working in similar positions. A sample of 92 CPAs (46 women, 46 men) completed 2 online surveys, the LPI-Self Leadership …

General Strain Theory As A Predictor Of Occupational Fraud, Timothy Bergsma

Walden Dissertations and Doctoral Studies

The world economy loses an estimated $3.5 trillion annually due to fraud. A weakened economy leads to additional hardships for individuals, families, and organizations. General strain theory (GST) posits that certain strains lead to negative emotional responses, and the result is delinquent behavior. The purpose of this research was to analyze the relationship between strain and occupational fraud through the theoretical framework of GST. The research questions addressed (a) occupational frauds as measured by strain levels of perpetrators, (b) the relationship between strain scores and the different occupational fraud types, and (c) the significance of the relationship between fraud motivation …

Relationship Between Organizational Commitment And Turnover Intentions Among Healthcare Internal Auditors, Mouhamadou Thile Sow

Walden Dissertations and Doctoral Studies

Insufficient auditing staff has become a challenge facing internal auditing in the healthcare industry. Auditors' turnover rates range from 13.4% to 46.6% in the United States based on the type of organization. The purpose of this correlational study was to examine the relationship between affective commitment, continuance commitment, normative commitment, and turnover intention among auditors. Self-determination theory of motivation was the theoretical framework for examining the employee turnover problem. A random sample of 92 internal auditors was administered the TCM Employee Commitment Survey and Turnover Intention Scales. The model as a whole was able to significantly predict turnover intentions, F(3, …

Does Beating Cash Flow Benchmarks Reduce The Cost Of Debt?, Mauricio A. Melgarejo

Scholarship and Professional Work - Business

This paper examines whether beating previous year cash flow values and analysts' cash flow forecasts impact the firms' cost of debt. Creditors are expected to be more concerned about firm solvency than firm profitability. Accordingly, if lenders have any reference point it may be related to cash flow numbers. This study finds that firms that beat analysts' cash flow forecasts have smaller initial bond yield spreads in the next period and a decrease in their initial bond yield spreads between consecutive periods. This effect is more pronounced at short maturities and for observations with less informative earnings. Firms with lower …

Women In The Workforce: An In-Depth Analysis Of Gender Roles And Compensation Inequity In The Modern Workplace, Rebecca L. Ziman

Honors Theses and Capstones

This paper explores the increase in participation and education of American women in the workforce with a special focus on women in business and accounting roles. The paper then goes on to discuss the wage gap between genders, how to remedy inequality in the workplace, and highlights several reasons why pursing a solution to gender inequality is beneficial for both the employee and the company.

F.A.C.E.S. (Faculty Academic Community Education Showcase): Professional Growth Experiences In A Career University, Paul J. Colbert, Ph.D.

MBA Faculty Conference Papers & Journal Articles

Institutes of higher education exist for the purpose of developing, fostering, nurturing, and stimulating the intellectual growth and development of students. The core values of a college education provide students conceptual and practical educational opportunities that focus on improving their skills and knowledge. These skills and knowledge translate into purposeful, real-life learning experiences. However, in the academic community, learning is not restricted to students. Faculty, too, must be supported and provided opportunities for personal and professional growth and development. Although professional development is not a novel concept in the education profession, schools often take up the gauntlet, but fall short …

Financial Performance And Capacity Analysis For The Mice Industry In Las Vegas And The United States, Li-Ting Yang

UNLV Theses, Dissertations, Professional Papers, and Capstones

The meetings, incentive travel, conventions, and exhibitions (MICE) industry is comparatively young and diverse. As a result, there has been limited research conducted in this field, especially from the financial performance and capacity management perspective. The purpose of this study is to fill the gap by analyzing the MICE capacity optimization issue in Las Vegas, a leading MICE destination, and in the U.S., a leading MICE country in the world. The findings and results of this study should help industry practitioners better understand the current status of the U.S. MICE industry in terms of assets efficiency, operational costs, and profitability. …

The Adoption Of International Accounting Standards For Small- And Medium-Sized Entities, Doris K. Feltham

Walden Dissertations and Doctoral Studies

U.S. private entities considering adoption of International Standards for Small- and Medium-sized Entities (IFRS for SMEs) need to understand how the new standards will modify financial reporting. However, there has been no determination of the significance of the financial statement impact of changing from United States Generally Accepted Accounting Principles (U.S. GAAP) to IFRS for SMEs. Without this knowledge, private entities in the United States will not be able to make an informed decision as to the benefits or consequences of adopting IFRS for SMEs. Based on stakeholder theory, this study sought to determine how adoption of IFRS for SMEs …

Developing A Culturally Responsive Classroom Collaborative Of Faculty, Students, And Institution, Paul J. Colbert

MBA Faculty Conference Papers & Journal Articles

Culture is integral to the learning process. It is the organization and way of life within the community of students and teachers and directs the way they communicate, interact, and approach teaching and learning. Although founded in particular values and principles, the academy, like most organizations, is impacted day-to-day by its culture. Yet, the traditional higher education institution has not been designed to operate within a racially or ethnically diverse student population. The social, political, economic, and cultural forces that support the institution influence the teaching and learning environments. To better address cultural diversity in the classroom, faculty must first …

Including The Customer In Efficiency Analysis:Evidence Of A Hybrid Relational-Transactional Approach, Joseph Coughlan, Estelle Shale, Robert Dyson

Articles

Purpose This paper illustrates the effect of including the customer as a resource in efficiency measurement. Variations in counting the customer illustrate the different impacts on efficiency between a transactional and a relational approach to bank branch marketing. Design/methodology/approach The paper uses Data Envelopment Analysis (DEA) to analyse the efficiency of the branch network under consideration. This technique, while well established in the bank branch efficiency literature, is used here to gain insight into how relationship and transactional paradigms are affecting performance. Findings Although the average profile of the efficiency scores was similar, the scores of the individual branches differed …

Factors Influencing Activity-Based Costing (Abc) Success Implementation : A Study Among Manufacturing Firms In China., Zhang Yi Fei

Student Works (2010-2019)

Nowadays firms are experiencing a constant changing business context. Accurate costing information is crucial for any firms to survive and stay competitive. However, traditional volume based costing systems are subjected to many criticisms due to the failure to provide firms with a reliable, accurate and timely costing information. Activity-Based Costing (ABC) was introduced by Cooper and Kaplan (1988) to address the shortcomings of the traditional costing systems, and it is more suitable to assist management in strategy formulation, implementation and evaluation in today‟s advanced business environment. Motivated by the benefits of ABC, a number of researchers have conducted various studies …

The Rationale For Mergers & Acquisitions In The U.S. Wireless Industry, Eric Pereira

Honors College Theses

The mergers between AT&T and Cingular, Sprint and Nextel, and Verizon and Alltel telecommunication companies have become the most fascinating transactions in the wireless industry. This paper provides a detailed summary of the two companies in each merger as separate entities before the merger, the actions they took while completing the merger, and the new look and strategies they put into place after the merger. The thesis provides a thorough view of how AT&T, Sprint Nextel, and Verizon successfully completed their merger plans and how they gained nationwide consumer satisfaction. The reader will examine the problems within the companies such …

The Joint Impact Of Brand Value And Advertising On Corporate Financial Performance And On Stock Return: A Case Study Of The Computer Industry, Alladin O. Ukiwe

Walden Dissertations and Doctoral Studies

Firm's advertising and marketing expenditures do not always translate to measurable financial returns. Understanding brand value appropriation and financial consequences of advertising is important for more focused investments in branding and marketing. This quantitative study sought to understand the joint effects of advertising expenditure and brand value (BV) on firms return on assets (ROA) and on stock return (SR) in the computer industry. The theoretical framework of the study was the resource-based view theory that proposes that the intangible assets of a corporation have a direct relationship to its ability to sustain its competitive advantage. The key research question involved …

Valuation And Classification Of Company Issued Cash And Share-Puts, William D. Terando, Wayne Shaw, David Smith

Scholarship and Professional Work - Business

This paper examines whether investors’ valuations of cash and share-put warrants are influenced by their potential differential effect on firm solvency. It is motivated by the enactment of SFAS 150, which requires that all contingent put warrant obligations be classified as balance sheet liabilities regardless of put type. Consistent with the critics of SFAS150, we show that market participants differentially value cash and share-puts based on their solvency characteristics beyond the firm’s recorded assets and liabilities. Our results add to existing capital structure literature by suggesting that complex financial instruments (such as cash and share-puts) be reported separately from each …

Management And Self-Activity: Accounting For The Crisis In Profit-Taking, Stefano Harney

Research Collection Lee Kong Chian School Of Business

The crisis in measurement identified by those working in the tradition of Italian autonomia has consequences for the critique of accounting and management. If both capitalist work and the commodity are today communicative and overtly political, a critique that merely points to these characteristics will have no transformative effect. This paper uses the Trinidadian Marxist theorist C.L.R. James’s notion of self-activity to suggest that the crisis in measurement is a symptom of the separation of work and value. The institution of forms of self-management and what might be called wars of command begin to replace the governmentality of the wage …

A Note On The Instability Of The Unprojected Individual Level Premium Cost Method, Pierre Devolder, Valerie Goffin

Journal of Actuarial Practice (1993–2006)

We compare the unit credit and the unprojected individual level premium cost methods in a continuous time environment and show that the latter may produce unstable contribution rates in a dynamic environment. Specifically, assuming there are no unfunded liabilities, we prove that the unprojected individual premium cost method may produce non-bounded contributions if benefits change too close to the normal retirement age.

Journal Of Actuarial Practice - Volume 13 (2006) - Contents And Masthead

Journal of Actuarial Practice (1993–2006)

Contents

Editorial Policy: Topics suitable for this journal include AIDS, annuity products, asset-liability matching, cash-flow testing, casualty rate making, credibility theory, credit insurance, disability insurance, expense analysis, experience studies, FASB issues, financial reporting, group insurance, health insurance, individual risk taking, insurance regulations, international issues, investments, liability insurance, loss reserves, marketing, pensions, pricing issues, product development, reinsurance, reserving issues, risk-based capital, risk theory, social insurance, solvency issues, taxation, valuation issues, and workers' compensation

Review Process

Editor - Colin Ramsay, University of Nebraska

Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of Omaha ○ Ruy Cardoso, Actuarial Frameworks ○ …

Estimation Of Large Insurance Losses: A Case Study, Tine Buch-Kromann

Journal of Actuarial Practice (1993–2006)

This paper demonstrates an approach to analyzing liability data recently developed by a Danish insurance company. The approach is based on a Champernowne distribution, which is corrected with a non-parametric estimator. The correction estimator is obtained by transforming the data set with the estimated modified Champernowne cdf and then estimating the density of the transformed data set by using the classical kernel density estimator. Our approach is illustrated by applying it to an actual data set.

Solvency Of Life Insurance Companies: Methodological Issues, Rosa Cocozza, Emilia Di Lorenzo

Journal of Actuarial Practice (1993–2006)

The paper deals with solvency assessment for life insurance business; some methodological issues concerning the solvency of life insurance companies, particularly connected to the investment risk, are suggested. Considerations about the technical equilibrium of an insurance portfolio and the financial regulation lead to a dynamic system involving risk measure and solvency assessment. The formal model is applied to a life annuity cohort in a stochastic context in order to exemplify the potential of the model, especially referred to the need to frame solvency assessment in a dynamic perspective.

On Some Risk-Adjusted Tail-Based Premium Calculation Principles, Edward Furman, Zinoviy Landsman

Journal of Actuarial Practice (1993–2006)

This paper explores two tail-based premium calculation principles, the tail standard deviation (TSD) premium and the tail conditional expectation (TCE) premium, in their risk-adjusted and unadjusted forms. They are risk-adjusted using so-called distortion functions. We prove that the proportional hazard (PH) risk-adjusted TCE premium is larger than the unadjusted TCE premium. Additionally, given a risk distribution with location and scale parameters, we prove that the PH risk-adjusted TCE premium reduces to the unadjusted TSD premium.

Bayesian Analysis Of A Health Insurance Model, Helio S. Migon, Edison M.O. Penna

Journal of Actuarial Practice (1993–2006)

We consider the problem of determining health insurance premiums based on past information on size of loss, number of losses, and size of population at risk. The size of loss and the number of losses are treated as mutually independent random variables. The number of losses is assumed to follow a Poisson process, and the loss sizes are independent and identically distributed non-negative random variables, and the population at risk is assumed to follow a non-linear growth model. An expression for the premium is obtained through maximization of the insurer's expected utility under a Bayesian model. The parameter estimation process …

Analysis Of An Insurance Risk Model With Thinning Dependence And Common Shock, Lai Mei Wan, Kam Chuen Yuen, Wai Keung Li

Journal of Actuarial Practice (1993–2006)

We consider a continuous-time insurance risk model with m dependent classes of business with dependent claim number processes due to thinning dependence and a common shock. The impact of the dependence is studied via the adjustment coefficient. The case m = 2 is investigated analytically for exponential claim distributions and via simulation for non-exponential claim distributions.

Pricing Insurance Policies With A Distribution-Free Financial Pricing Model, Min-Ming Wen

Journal of Actuarial Practice (1993–2006)

The highly skewed and heavy tailed distributions used to model insurance losses (claims) raise a concern about the validity of the applications of the capital asset pricing model (CAPM) to insurance pricing when market risks are essential. This paper provides an alternative pricing model, called the Rubinstein-Leland model, which can be used to price insurance contracts. The Rubinstein-Leland model has a distribution-free feature that can fully capture the asymmetry embedded in insurance losses. Thus, this model is better able to derive fair prices for insurance policies than is the CAPM.

Bivariate Archimedean Copula Models For Censored Data In Non-Life Insurance, Michel Denuit, Oana Purcaru, Ingrid Van Keilegom

Journal of Actuarial Practice (1993–2006)

We describe a methodology based on Archimedean copulas for analyzing nonlife insurance data with censoring present. Specifically, we propose a graphical selection procedure for the nonparametric estimation of the generator. An actual loss-ALAE data set is used for the numerical illustrations and for comparisons of our approach to a few others.

Consistent Assumptions For Modeling Credit Loss Correlations, Jan Dhaene, Marc J. Goovaerts, Robert Koch, Ruben Olieslagers, Olivier Romijn, Steven Vanduffel

Journal of Actuarial Practice (1993–2006)

We consider a single period portfolio of n dependent credit risks that are subject to default during the period. We show that using stochastic loss given default random variables in conjunction with default correlations can give rise to an inconsistent set of assumptions for estimating the variance of the portfolio loss. Two sets of consistent assumptions are provided, which it turns out, also provide bounds on the variance of the portfolio's loss. An example of an inconsistent set of assumptions is given.

Bayesian Analysis Of Insurance Losses Using The Buhlmann-Straub Credibility Model, Abraham J. Van Der Merwe, Kobus N. Bekker

Journal of Actuarial Practice (1993–2006)

We propose a Bayesian analysis to develop credibility estimates of the well known Biihlmann-Straub model. We describe simple numerical methods to obtain exact posterior distributions and predictive densities under this model. These distributions are obtained through Monte Carlo simulations that generate independent samples from the joint posterior distribution. Our methods are therefore preferable to methods such as Gibbs sampling, which generates dependent samples from the joint distribution. The methods discussed also can be extended to more complicated credibility models.

Spatial Distribution Of Frequency And Severity Of Water Claims In California, Gurbhag Singh, Max Tang, Don Mcneill, Lyn Hunstad

Journal of Actuarial Practice (1993–2006)

We examine the frequency and severity of water loss claims for homeowners insurance across the state of California for the experience years 2000, 2001, and 2002. The spatial distribution patterns of frequencies and severities are mapped and analyzed at the zip code level. The maps reveal the pockets of high frequencies and severities. The information provided in this paper will assist actuaries and policy makers in their quest to set accurate rates for homeowners insurance.

Journal Of Actuarial Practice, Volume 13, 2006, Colin Ramsay , Editor

Journal of Actuarial Practice (1993–2006)

ARTICLES

Bivariate Archimedean Copula Models for Censored Data in Non-Life Insurance • Michel Denuit, Dana Purcaru, and Ingrid Van Keilegom 5

Bayesian Analysis of Insurance Losses Using the Biihlmann-Straub Credibility Model • Abraham J. van der Merwe and Kobus N Bekker . 33

Bayesian Analysis of a Health Insurance Model • Helio S. Migon and Edison M. O. Penna 61

Solvency of Life Insurance Companies: Methodological Issues • Rosa Cocozza and Emilia Di Lorenzo . 81

Pricing Insurance Policies with a Distribution-Free Financial Pricing Model • Min-Ming Wen . 103

A Note on the Instability of the Unprojected Individual Level …

Modeling Clusters Of Extreme Losses, Beatriz Vaz De Melo Mendes, Juliana Sa Freire De Lima

Journal of Actuarial Practice (1993–2006)

We model extreme losses from an excess of loss reinsurance contract under the assumption of the existence of a subordinated process generating sequences of large claims. We characterize clusters of extreme losses and aggregate the excess losses within clusters. The number of clusters is modeled using the usual discrete probability models, and the severity of the sum of excesses within clusters is modeled using a flexible extension of the generalized Pareto distribution. We illustrate the methodology using a Danish fire insurance claims data set. Maximum likelihood point estimates and bootstrap confidence intervals are obtained for the parameters and statistical premium. …

A Primer On Duration, Convexity, And Immunization, Leslaw Gajek, Krzysztof Ostaszewski, Hans-Joachim Zwiesler

Journal of Actuarial Practice (1993–2006)

The concepts of duration, convexity, and immunization are fundamental tools of asset-liability management. This paper provides a theoretical and practical overview of the concepts, largely missing in the existing literature on the subject, and fills some holes in the body of research on the subject. We not present new research, but rather we provide a new presentation of the underlying theory, which we believe to be of value in the new North American actuarial education system.