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Articles 31 - 47 of 47
Full-Text Articles in Accounting
How Many Simultaneous Audit Committee Memberships Are Too Many?, Jimmy Carmenate, Cori O. Crews, Vineeta D. Sharma, John R. Sparger
How Many Simultaneous Audit Committee Memberships Are Too Many?, Jimmy Carmenate, Cori O. Crews, Vineeta D. Sharma, John R. Sparger
School of Accountancy Faculty Publications
Recent research by Sharma, Sharma, Tanyi, and Cheng (2020) provides new insight into directors serving on multiple public company audit committees. Specifically, they investigate how an individual audit committee director serving on multiple audit committees is related to companies’ cost of equity capital. Their evidence suggests that serving on multiple audit committees is viewed positively by investors up to a certain point, but beyond that point investors become concerned. This turning point, on average, is 3.5 audit committees for retired directors and 1.5 audit committees for directors in full-time employment. These results have implications for numerous stakeholders including investors, proxy …
Product Market Competition, Stock Price Informativeness, And Ifrs Adoption: Evidence From Europe, Jing Wang, Wei Li, Arno Forst
Product Market Competition, Stock Price Informativeness, And Ifrs Adoption: Evidence From Europe, Jing Wang, Wei Li, Arno Forst
School of Accountancy Faculty Publications
This study examines whether and how policy changes that aim to improve market efficiency, specifically the mandatory adoption of International Financial Reporting Standards (IFRS), influence the relation between product market competition and stock price informativeness. Using a sample of European firms, we find a negative association between product market competition and stock price informativeness as evidenced by larger (smaller) stock price changes surrounding earnings announcements for firms facing more (less) product market competition. These findings are consistent with prior studies examining the U.S. capital market. We further find that IFRS adoption alleviates the negative association. This positive effect is more …
Daily Incentive And Jump-Base In A Non-Real-Time Apparel Manufacturing Context, Robert Dean Morrison, Juan Angel Chavarria, Claudia P. Dole, Brenda M. Dole
Daily Incentive And Jump-Base In A Non-Real-Time Apparel Manufacturing Context, Robert Dean Morrison, Juan Angel Chavarria, Claudia P. Dole, Brenda M. Dole
School of Accountancy Faculty Publications
This study summarizes piecework incentive systems and examines two apparel manufacturing factories that used daily incentive calculations at one time and weekly incentive calculations at another. In addition, one factory implemented a multiple base-rate incentive system, often called jump-base. The data shows that, when not controlled, daily incentive can facilitate operators engaging in fraudulent activity such as ticket-holding. With fraud controlled, daily incentive calculation makes little difference in overall pay; therefore, it may have individual level motivational effects by nullifying the effect of averaging one-bad-day into the week. While jump-base may enhance productivity in lower performing operators or modules, one …
Business Strategy, State-Owned Equity And Cost Stickiness: Evidence From Chinese Firms, Tingyong Zhong, Fangcheng Sun, Haiyan Zhou, Jeoung Yul Lee
Business Strategy, State-Owned Equity And Cost Stickiness: Evidence From Chinese Firms, Tingyong Zhong, Fangcheng Sun, Haiyan Zhou, Jeoung Yul Lee
School of Accountancy Faculty Publications
This paper investigates the relationship between business strategy and cost stickiness under different ownership. Using the data from listed firms in China from 2002 to 2015, we find that first, firms with different strategies exhibit different cost behavior. The cost stickiness of choosing a differentiation strategy is higher than that of choosing a low-cost strategy. Second, management expectations will affect cost stickiness. Optimistic expectations will increase cost stickiness, while pessimistic expectations will reduce cost stickiness. Third, management expectations can adjust the relationship between business strategy and cost stickiness in terms of government-created advantages (GCAs). If management expectations tend to be …
Financial Market Development And Firm Investment In Tax Avoidance: Evidence From Credit Default Swap Market, Hyun A. Hong, Gerald J. Lobo, Ji Woo Ryou
Financial Market Development And Firm Investment In Tax Avoidance: Evidence From Credit Default Swap Market, Hyun A. Hong, Gerald J. Lobo, Ji Woo Ryou
School of Accountancy Faculty Publications
Lenders reduce their monitoring efforts after hedging their credit risk exposure through credit default swap (CDS) contracts, which are akin to insurance against borrowers’ adverse credit events. In this study, we examine whether, upon observing the reduced lender monitoring following CDS trading, shareholders demand that borrowing firms invest in more aggressive tax planning strategies, which were previously constrained by risk-averse lenders. Using a difference-in-differences design that exploits the variation in timing of the inception of CDS trading, we document that borrowers exhibit greater tax avoidance after the inception of CDS trading. Consistent with shareholders stepping up their demands post-CDS, we …
Disproportionate Insider Control And Firm Performance, Barry Hettler, Arno Forst
Disproportionate Insider Control And Firm Performance, Barry Hettler, Arno Forst
School of Accountancy Faculty Publications
The effect of disproportionate insider control on firm performance is ambiguous. Disproportionate control may enhance insiders’ ability to expropriate perquisites; on the other hand, it may provide stability of management and reduce short-term market pressures. Using a hand-collected sample of U.S. dual-class firms, we find that disproportionate control is positively associated with accounting-based performance, but negatively associated with Tobin's Q. These results are consistent with the incentives of entrenched insiders who are interested in profitability but less beholden to capital markets.
Insider Ownership And Financial Analysts’ Information Environment: Evidence From Dual-Class Firms, Arno Forst, Barry Hettler, Ran Ron Barniv
Insider Ownership And Financial Analysts’ Information Environment: Evidence From Dual-Class Firms, Arno Forst, Barry Hettler, Ran Ron Barniv
School of Accountancy Faculty Publications
We examine the association of insider ownership with financial analysts’ forecast accuracy and dispersion in a sample of U.S. dual-class firms. Insider ownership exerts two effects: a positive incentive effect and a negative entrenchment effect. The lack of significant findings in prior research regarding the association between insider ownership and forecast accuracy may be attributable to the offsetting forces of these two effects. Using a comprehensive hand-collected sample of U.S. firms that maintain more than one class of common stock, we are able to disentangle incentive and entrenchment effects which are confounded in single-class firms. We find that disproportionate insider …
Disproportionate Insider Control And The Demand For Audit Quality, Arno Forst, Barry Hettler
Disproportionate Insider Control And The Demand For Audit Quality, Arno Forst, Barry Hettler
School of Accountancy Faculty Publications
We examine the relationship between disproportionate insider control, enabled through dual-class share structures, and the demand for audit quality. Using a comprehensive hand-collected sample of U.S. dual-class firms, we find that, consistent with outside shareholders’ increased demand for external monitoring, as well as self-bonding by entrenched insiders, disproportionate insider control is positively associated with the propensity to hire a Big 4 or industry specialist auditor, auditor independence, and audit fees. Corroborating a self-bonding explanation, additional analyses show that audit quality mitigates the negative association of disproportionate insider control and firm value. In expanded analyses, we also investigate the separate effects …
Heightened Shareholder Interest In Firm Affairs Following The Inception Of Credit Default, Hyun Hong, Ji Woo Ryou, Anup Srivastava
Heightened Shareholder Interest In Firm Affairs Following The Inception Of Credit Default, Hyun Hong, Ji Woo Ryou, Anup Srivastava
School of Accountancy Faculty Publications
The literature shows that a lender becomes reluctant to aid a distressed client after it receives insurance on its outstanding debt via a credit default swap (CDS). The onset of CDS trade thus accelerates client bankruptcy. We predict that the client firm’s shareholders would respond by demanding improved corporate governance and financial reporting quality to protect their interests. We find an increase in independence of the board of directors and a decline in the dual position of chief executive office and board chairman following the onset of CDS trading. We also find higher earnings response coefficient and trading volumes around …
The Effect Of Ceo And Cfo Resignations On Going Concern Opinions, Joseph D. Beams, Yun-Chia Yan, Wachira Boonyanet, Pongprot Chatraphorn
The Effect Of Ceo And Cfo Resignations On Going Concern Opinions, Joseph D. Beams, Yun-Chia Yan, Wachira Boonyanet, Pongprot Chatraphorn
School of Accountancy Faculty Publications
Anecdotal evidence suggests that the resignation of a top executive increases a firm’s likelihood of failure. When auditors perceive an increased likelihood of failure, a going concern modified audit opinion is issued. This study tests the relationship between top management resignations and the issuance of going concern audit opinions. The study uses financially distressed firms in the United States from 2008-2010 and a logistic regression model to test the relationship. The findings show a positive relationship between CFO resignations and firms receiving a going concern audit opinion even after controlling for other predictors of a going concern audit opinion. However, …
Drug Violence In Mexico And Its Impact On The Fiscal Realities Of Border Cities In Texas: Evidence From Rio Grande Valley Counties, Akinloye Akindayomi, Sergio Garcia
Drug Violence In Mexico And Its Impact On The Fiscal Realities Of Border Cities In Texas: Evidence From Rio Grande Valley Counties, Akinloye Akindayomi, Sergio Garcia
School of Accountancy Faculty Publications
This study examines the potential spillover effects of the Mexican drug war and its associated violence on the fiscal realities of the U.S. border counties. Specifically, we study descriptively the data from the Rio Grande Valley (RGV) counties of the state of Texas, placing it within the broader context of all Texas counties, and find initial evidence of possible ‘silver lining’ spilling over from Mexican drug violence to the U.S. border counties’ fiscal positions. Housing activities increase and property tax reliance decreases in RGV counties relative to other Texas counties (both border and non-border). We anticipate that the findings and …
Analysts’ Activities And The Timing Of Returns: Implications For Predicting Returns, Andrew A. Anabila
Analysts’ Activities And The Timing Of Returns: Implications For Predicting Returns, Andrew A. Anabila
School of Accountancy Faculty Publications
This study examines the influence of analysts on the timing of returns associated with firms’ earnings news, and the implications for returns prediction. This is important for determining the lapse between the time when pieces of earnings news are available, when such news are incorporated in prices, and the implications for a returns trading strategy based on earnings prediction. The results show that depending on the level of analysts’ forecasting activities for a firm, there is a significant variation in the timing of the returns associated with the firm’s total, industry-wide and firm-specific components of earnings news. For firms that …
Students Perceptions Of Cheating In Online Business Courses, Michael P. Watters, Paul J. Robertson, Renae K. Clark
Students Perceptions Of Cheating In Online Business Courses, Michael P. Watters, Paul J. Robertson, Renae K. Clark
School of Accountancy Faculty Publications
Accounting majors enrolled in business courses at two different universities were asked to complete a survey questionnaire pertaining to cheating in online business courses. Specifically, students majoring in Accounting were asked about their awareness online business courses as well as their opinions regarding the credibility of online courses and the effectiveness of different techniques that may be used to prevent cheating. Forty-six percent of students indicated that they had knowledge of students receiving help with an online exam/quiz. Overall, 75 percent of respondents indicated that the most effective technique to prevent cheating on online exams/quizzes is the use of random …
Analytics For Business, Policy And Law In A Comparative Review Of Enhanced Wireless Emergency Number Call Services Systems In The European Union And United States, James E. Holloway, Elaine Seeman, Margaret O'Hara, Arno Forst
Analytics For Business, Policy And Law In A Comparative Review Of Enhanced Wireless Emergency Number Call Services Systems In The European Union And United States, James E. Holloway, Elaine Seeman, Margaret O'Hara, Arno Forst
School of Accountancy Faculty Publications
No abstract provided.
Culture Effects In The Ethical Decision-Making Process Of Latin American Accountants, Silvia Lopez Palau
Culture Effects In The Ethical Decision-Making Process Of Latin American Accountants, Silvia Lopez Palau
Theses and Dissertations - UTB/UTPA
Despite the amount of accounting ethics research conducted over many years, two significant problems remain unsolved. First, there is a need to create accurate measurement instruments capable of predicting behavior within a theoretical framework of ethical decision-making. Second, it is important to develop ways to make measurements appropriate for application in other cultures or countries. Thus, the purpose of this study is twofold. The first objective is to develop a scale to measure the ethical evaluations, judgments, and intentions of Latin American accountants. The second goal is to determine the effects of national culture and gender on the results posited …
The Value Relevance Of Value Added And Stakeholder Compensation Across Business Cultures, John Darcy
The Value Relevance Of Value Added And Stakeholder Compensation Across Business Cultures, John Darcy
School of Accountancy Faculty Publications
This research performed a partial test of the instrumental validity of the stakeholder model by examining the value relevance of value added relative to income and the incremental value relevance of two stakeholder compensation components of value added, wages and interest for Japan, Germany, United States, and United Kingdom.
United States Gaap Versus International Accounting Standards: Convergence Or Divergence. Evidence From Form 20-F, Kendra Jo Huff
United States Gaap Versus International Accounting Standards: Convergence Or Divergence. Evidence From Form 20-F, Kendra Jo Huff
Theses and Dissertations - UTB/UTPA
Numerous accounting standards and practices affect the financial statements analyzed by investors and creditors thus bringing into question the comparability of such statements. Firms operating internationally often apply accounting methods and practices accepted by other global firms and investors. Comparability increases, or harmonization occurs, as firms converge toward a few accepted methods or when the number of methods applied decrease. This study analyzes the comparability of profits based on U.S. principles versus International Accounting Standards and other foreign accounting principles. The data for the analysis consisted of the reconciliation items and profits reported in Form 20-F filed by foreign corporations …