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Articles 61 - 73 of 73

Full-Text Articles in Accounting

Corporate Ownership Structure And Innovation: Evidence From Taiwan's Electronics Industry, Chen Lung Chin, Yu Ju Chen, Gary Kleinman, Picheng Lee Jan 2009

Corporate Ownership Structure And Innovation: Evidence From Taiwan's Electronics Industry, Chen Lung Chin, Yu Ju Chen, Gary Kleinman, Picheng Lee

Department of Accounting and Finance Faculty Scholarship and Creative Works

The agency problem of listed companies in East Asia is closely related to their typically concentrated ownership structures. Tight control creates an entrenchment problem that allows the controlling owners' self-interested behaviors to go unchallenged internally by the boards of directors or externally by takeover markets. The primary objective of this paper is to explore the association between the ownership and control structure and innovation. The ownership and control structure is measured first as the divergence between the ultimate owner's voting rights and the ultimate owner's cash flow rights, and second by the presence of ultimately controlling shareholder's family member as …

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Novice And Expert Judgment In The Presence Of Going Concern Uncertainty The Influence Of Heuristic Biases And Other Relevant Factors, Asokan Anandarajan, Gary Kleinman, Dan Palmon Apr 2008

Novice And Expert Judgment In The Presence Of Going Concern Uncertainty The Influence Of Heuristic Biases And Other Relevant Factors, Asokan Anandarajan, Gary Kleinman, Dan Palmon

Department of Accounting and Finance Faculty Scholarship and Creative Works

Purpose - Prior literature provides clear evidence that the judgments of experts differ from those of non-experts. For example, Smith and Kida concluded that the extent of common biases that they investigated often are reduced when experts perform job related tasks as compared to students. The aim in this theoretical study is to examine whether "heuristic biases significantly moderate the understanding of experts versus novices in the going concern judgment?" Design/methodology/approach - The authors address the posited question by marshalling extant literature on expert and novice judgments and link these to concepts drawn from the cognitive sciences through the Brunswick …

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An Analytical Approach For Making Management Decisions Concerning Corporate Restructuring, Beixin Lin, Zu Hsu Lee, Richard Peterson Dec 2006

An Analytical Approach For Making Management Decisions Concerning Corporate Restructuring, Beixin Lin, Zu Hsu Lee, Richard Peterson

Department of Accounting and Finance Faculty Scholarship and Creative Works

Internal corporate restructuring activities, such as downsizing, sale or termination of a business line, facility closure, consolidation, or relocation, often occur as part of managerial strategies intended to improve efficiency, control costs, and adapt to an ever-changing business environment. Such actions frequently result in fundamental changes in a business's organization, its strategies, its systems, and its operations. They can unsettle a business and often significantly affect current and future earnings and cash flows. In this paper we propose a novel decision-making model through the use of the dynamic programming technique to illustrate how management can determine the optimal timing and …

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Central Bank Independence, Inflation Variability, And The Revenue Smoothing Hypothesis, Hermann Sintim-Aboagye, David R. Tufte May 2006

Central Bank Independence, Inflation Variability, And The Revenue Smoothing Hypothesis, Hermann Sintim-Aboagye, David R. Tufte

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper examines the revenue-smoothing hypothesis, which posits that an optimizing government will adjust both taxes and inflation to meet shocks to government spending. Our contribution is to examine this through the lens of a new methodology that relates both the first and second moments of inflation rates to central bank independence (CBI) measures. Unlike existing least-squares-based CBI papers, this study uses a maximum likelihood framework that facilitates the direct inclusion of CBI parameters in the residual covariance matrix. This new approach allows for a more intensive use of information contained in the CBI indexes and the estimates obtained are …

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Emerging Economies, Turnover Rates And Inflation Variability: A Comparison Of Generalized Maximum Likelihood And Sur Models, Hermann Sintim-Aboagye Jun 2005

Emerging Economies, Turnover Rates And Inflation Variability: A Comparison Of Generalized Maximum Likelihood And Sur Models, Hermann Sintim-Aboagye

Department of Accounting and Finance Faculty Scholarship and Creative Works

Theoretical exposition and empirical evidence in central bank independence (CBI) literature confirm an inverse relationship between inflation and measures of CBI mostly in developed economies. Based on this ex ante information on CBI-inflation tradeoff, this paper proposes two functional forms for the diagonal and off diagonal elements in the residual covariance matrix in the estimation process. The proposed functional forms are used in a generalized maximum likelihood and then in a generalized least squares (GLS) (with the restricted covariance matrix) framework for the empirical test. The results are compared to the outcome of an SUR model (unrestricted). The tests involve …

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Collusion And Financial Leverage: An Analysis Of The Integrated Mill Steel Industry, Richard Lord, W. Ken Farr Jan 2003

Collusion And Financial Leverage: An Analysis Of The Integrated Mill Steel Industry, Richard Lord, W. Ken Farr

Department of Accounting and Finance Faculty Scholarship and Creative Works

We show that firms can design their capital structure to provide a publicly observable indication of compliance with a collusive agreement. We develop two empirically testable hypotheses based on this argument and test these propositions on data for seven integrated mill steel firms. Our study period covers years when prices were overtly coordinated under the basing point pricing system and after the demise of the system. Empirical tests confirm the hypotheses that leverage is positively related to both price elasticity of demand and the level of convertibles outstanding during the years after the collapse of the basing point pricing system.

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Equity Valuation In A Changing Institutional Climate: Evidence From Multinational Utilities, Joann Pinto Jan 2003

Equity Valuation In A Changing Institutional Climate: Evidence From Multinational Utilities, Joann Pinto

Department of Accounting and Finance Faculty Scholarship and Creative Works

The transformation of U.S. utilities from purely domestic to multinational enterprises commenced in 1992 with the passage of The Energy Policy Act (EPAct). In response to the liberalized regulatory climate, 29 U.S. utilities have diversified their holdings through the acquisition of foreign utilities, many of which are located in emerging market countries. This study analyzes the impact of international diversification on the profitability and valuation of U.S.-based multinational utilities during the years 1996-2000. In order to control for the effects of aggregate economic and regulatory changes, purely domestic utilities are also included in the sample. The empirical tests are conducted …

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Closed-End Funds And Turnover Restrictions, Nusret Cakici, Anthony Tessitore, Nilufer Usmen Jan 2002

Closed-End Funds And Turnover Restrictions, Nusret Cakici, Anthony Tessitore, Nilufer Usmen

Department of Accounting and Finance Faculty Scholarship and Creative Works

Past studies have found that investors can earn higher returns than a benchmark by purchasing shares of closed-end funds with discounts or selling shares with premiums. These studies either ignored the impact of transaction costs or used equally weighted portfolio strategies without controls on turnover or transaction costs. We examined whether constraining the holdings of individual funds and turnover has any bearing on the excess returns earned by closed-end equity funds over a benchmark return. We found that when transaction costs were low, portfolios with frequent rebalancing and loose turnover constraints outperformed the benchmark and other portfolios in the period …

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A Negotiation-Oriented Model Of Auditor-Client Relationships, Gary Kleinman, Dan Palmon Jan 2000

A Negotiation-Oriented Model Of Auditor-Client Relationships, Gary Kleinman, Dan Palmon

Department of Accounting and Finance Faculty Scholarship and Creative Works

The increasing frequency and complexity of inter-organizational relationships suggests that inter-organizational negotiations should represent an area of increasing concern to management and academicians. Unfortunately, there is little theorizing about, nor study of, these negotiations. The few extant models are heavily influenced by models of individual negotiating styles that are then raised to the inter-organizational level with minimal change. The model developed here attempts to provide a framework for understanding the context of these interorganizational negotiations by identifying and illuminating factors that influence the outcome of interactions in various long-term supplier relationships. Factors discussed include dynamic and stable environments, organizational cultures, …

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Auditor Concentration Of Listed Public Companies On International Stock Exchanges, Ramesh Narasimhan, Shifei Chung Dec 1998

Auditor Concentration Of Listed Public Companies On International Stock Exchanges, Ramesh Narasimhan, Shifei Chung

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper explores the concentration of audit services provided to listed public companies on the Stock Exchanges of Canada, Hong Kong, London, and Singapore. The Canadian and London stock exchanges are chosen as representatives of the North American and European markets, while the Hong Kong and Singapore exchanges represent the newly developed Asia Pacific markets. Public accounting firms have benefited from the globalisation trends by expanding their own markets. The reason frequently mentioned for the mergers of the Big 8 accounting firms to form the Big 6 is that they want to increase their international presence and be in a …

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The Impact Of Operating And Financial Risk On Equity Risk, Richard Lord Sep 1996

The Impact Of Operating And Financial Risk On Equity Risk, Richard Lord

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper empirically investigates a complete theoretical model relating the operating characteristics of a firm to the total, systematic, and unsystematic risk of its equity. The degree of operating leverage, the ratio of net profits to firm value, and the variability of unit output are all found to be positively correlated with each of the three risk measures. The degree of financial leverage, while positively related to total and unsystematic risk, does not appear to be related to systematic risk. After controlling for the business risk of the firm, no evidence can be found of an interaction between the degree …

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International Market Segmentation And Euro Debt Issues, Stavros B. Thomadakis, Nilufer Usmen Dec 1995

International Market Segmentation And Euro Debt Issues, Stavros B. Thomadakis, Nilufer Usmen

Department of Accounting and Finance Faculty Scholarship and Creative Works

Implications of capital market segmentation for international capital structure (ICS)-capital structure consisting of equity issued in one country and debt issued in another-are examined. Necessary conditions for the emergence of ICS are analyzed under two options for debt issues (foreign debt and Eurodebt) and comparisons are made. It is shown that in cases where the project cannot support an ICS including foreign debt Eurobonds can be issued and would be profitable.

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Using The Analytical Hierarchy Process To Select A Financing Instrument For A Foreign Investment, A. Seddik Meziani, Farahmand Rezvani Jan 1988

Using The Analytical Hierarchy Process To Select A Financing Instrument For A Foreign Investment, A. Seddik Meziani, Farahmand Rezvani

Department of Accounting and Finance Faculty Scholarship and Creative Works

The purpose of this paper is to apply the Analytical Heirarchy Process Model in selecting an instrument to finance a foreign direct investment. As with other finance decisions, risk and return are evaluated before the appropriate instrument is chosen. The model allows for several character sets to be evaluated. Included in this analysis are the nature of the investment, the financial instruments available and their characteristics. The set of elements needed to be financed are characterized by the amount and nature of the asset. Relevant factors in evaluating the instruments are: costs of borrowing and risks associated with the instrument. …

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