Accounting Commons^™

Do Analysts Understand Momentum? Evidence From Target Prices, Benjamin Carl Anderson

Graduate Theses and Dissertations

Target prices are analysts’ forecasts of a firm’s stock price. Although target prices can be used to help market participants make investment decisions, much is still unknown about how analysts make these forecasts. Because prior literature documents momentum in stock returns, in this paper, I examine whether target prices reflect the information in returns over the six months prior to the target price announcement date. I find that target prices systematically underestimate the persistence of these six month returns. I further find that the forecasted return in target price revisions is more pessimistic following periods of very good stock performance …

The Determinants And Consequences Of Disclosure Committee Adoption, Lyle Roy Schmardebeck

Graduate Theses and Dissertations

After the passage of the Sarbanes-Oxley Act of 2002, the Securities and Exchange Commission recommended that companies voluntarily adopt disclosure committees to aid in preparing company disclosures. In this paper, I investigate the determinants and consequences of disclosure committee adoption. I find that companies with material weaknesses in internal controls over financial reporting and less readable 10-K filings are more likely to adopt disclosure committees. In consequences analyses, using a propensity score matched control sample and a difference-in-differences research design, I find that 10-K filings are longer and less readable after disclosure committee adoption. However, consistent with institutional theory, I …

A Commentary On Women In The Workforce: Has The Issue Of Gender Discrimination Pierced Through To The Accounting Profession?, Jennifer A. Roman

Accounting

The following is intended to be a theoretical commentary on the issue of gender discrimination against women in the modern professional workforce. The content is designed to discuss the issue at hand and explain its pertinence within modern society. The relevant discussion will suggest that there seems to be a sufficient quantity of anecdotal evidence in order to suggest that this issue may have penetrated the accounting profession. This raises the concern that women may be experiencing discrimination within the accounting profession, in terms of leadership roles, monetary earnings, and employer-provided benefits. Ultimately, this discussion will raise questions to be …

Coins In The Air: A Literature Review On The Evolving Framework Of Bitcoin And Its Relevance To The Accounting Profession, Javin H. Forrester

Accounting

Bitcoin is an innovative virtual currency, which has gained much commercial traction, yet is widely overlooked by the accounting profession. Due to its parallels with actual currencies and its growing use, accountants should be aware of what bitcoin is, including its risks and benefits, in order to properly leverage its business uses. Of the existing financial instruments, derivatives stand out in their potential to stabilize the bitcoin market. Bitcoin regulation is sparse, but evolving, especially in the face of the emerging bitcoin securities and derivatives markets. The accounting profession is poised to play a major role in facilitating the future …

Valuation Of Intangible Assets: Should Brand Equity Be Accounted For On The Balance Sheet?, Brooke Wasserman

Honors Scholar Theses

Brand valuation has become a commonplace tool for assessing company performance related to marketing and promotions of businesses. However, current U.S. and international accounting standards inhibit the recording of brands as assets on financial statements due to their intangible nature. This paper discusses the importance of understanding the contribution that brands provide to companies and outlines the potential options for reporting any associated intangible assets on financial statements. I suggest that additional reports should be included alongside currently required financial statements to record brand value separately from the other statements. The intangible brand assets should not be placed as a …

A Look At The Gender Wage Gap And Its Reach Into The Field Of Accounting, Emily Hall

Honors College Theses

This year’s Academy Awards was the background for a call to arms for equal pay for women. After years of legislative reform, women are still making less than their male coworkers; women have begun to fight furiously for a change. Recently, companies as big as Walmart and KPMG have had claims brought against them alleging wage discrimination based on gender. Analysts have proven that in the case of KPMG it is almost impossible for it to be anything other than discrimination. There are several studies behind how the wage gap is calculated as well as the many causes behind why …

Corporate Tax Havens: Analysis Of An Aggressive Tax Approach As A Strategic Necessity For Large Multinational Corporations, Julia Galica

Honors Scholar Theses

This study will examine the complexities of corporate tax planning, with a focus on tax deferral strategies employed by United States multinational corporations, providing a financial and ethical analysis of corporate tax entities. The focus will be on multinational corporations, primarily Fortune 500 Companies. It will then evaluate trends across industries and contrast the patterns of unrecognized tax benefits reported by large and small scale public companies. Additionally, the paper will analyze the effective tax rate paid by a sample of corporations of varying size and industry, and how these characteristics of the business correlate with this rate. The study …

Excellence, Success, And The Protective Function Of Common Grace In Accounting, Jason Stansbury, Marilyn Stansbury, Debra Snyder

University Faculty Publications and Creative Works

The sustainability of the accounting profession depends on both internal goods (excellences) and external goods (successes) supported by the practices and institutions of accounting. While both types of goods matter, a virtuous organization must hold them in tension. Failure to do so risks violating the public trust and damaging accountants integrity. The accounting professions management of this MacIntyrean tension exemplifies the protective function of common grace. Accounting helps to protect business from the effects of sin (e.g., negligence, opportunism, and malfeasance), as well as to enable business to meet human needs through both meaningful employment and goods and services that …

Australian Charity Organisations: A Study Of Audit Fee Determinants, Andrew Priest

Theses: Doctorates and Masters

Accounting, and more specifically auditing, plays an important role in charity organisations’ accountability processes. This has been highlighted with the commencement of the Australian Charities and Not-for-Profit Commission in 2012 heralding a new era of accountability and regulation. It is in this context that this study used a stratified sample of 101 Australian charities’ 2011-2012 annual reports to study five aspects of the charity audit market, which formed its objectives. These were: a) to estimate and develop a model of Australian charity fee audit determinants; b) to determine if there was evidence of Big Four audit firm fee premiums in …

Why Good Financial Records Are Worth The Effort, Sara Bennett

White Papers

Accounting. Taxes. Payroll. Recordkeeping. Necessary, but confusing at times. Thorough and accurate recordkeeping of all revenues and expenses related to your business is essential and goes beyond financial and tax reporting. Why you should seek help from the pros

The Impact Of Relevant Work Experience On Third Level Accounting Students' View Of Learning, Terese Deehan

Theses

The benefits of work experience in accounting education have been examined extensively in the academic literature. Extant literature cites skills development, putting knowledge into action, improved academic results, increased focus on study and career path and enhanced employability as the main benefits to students. Other than research on the impact on academic results, there is a dearth of research on the impact of work experience on students’ view of learning. In research conducted in Ireland, Byrne and Flood (2004) concluded that the majority of third-level accounting students only have a surface-level view of learning and that this will not be …

The Emergence Of Assurance In Sustainability Reporting: A Stakeholder Perspective, Jessica Lyn Denoncour

Honors Theses and Capstones

No abstract provided.

Better Measurement Of Governments Through The Application Of Accrual Accounting For Government-Wide Financial Statements, Caleb D. Cunha

CMC Senior Theses

In this paper, we will look at and discuss the differences and similarities between governmental entities and for-profit business. We will mainly discuss the different goals, purposes, users, and issues between government and for-profit accounting in order to show that changes to governmental accounting standards would lead to more transparency and accountability, which in turn would help determine the success of an individual governmental entity. We will conclude by looking at countries that have implemented accrual accounting for government-wide financial statements, and we will explain how the adoption of accrual accounting for government-wide financial statements in the United States will …

Three Studies Examining Nonprofessional Investors' Decision Making, Anis Triki

Electronic Theses and Dissertations

This dissertation consists of three studies exploring nonprofessional investors' decision making. Technological advancements witnessed by the capital markets in recent years have caused significant changes to the dissemination and use of information, particularly by nonprofessional investors. Among these developments is the growth of social media that allows anyone to post information upon which others may rely and the availability of DAs that assist decision makers in evaluating the quality of information reported by an organization. The purpose of this dissertation is to investigate the benefits of using DAs that are capable assessing the quality of information reported to capital market …

Kajian Teoritis Atas Harmonisasi Antara Keseragaman (Uniformity) Praktik Akuntansi Komersial Dan Fiskal Dalam Perusahaan Perbankan Indonesia, Arie Widodo, Erwin Harinurdin

Jurnal Vokasi Indonesia

No abstract provided.

Wink, Wink, Nudge Judge: Persuading U.S. Courts To Take Accountants Seriously In Federal Securities Cases, With Help From The U.K. Companies Act, Kurt S. Schulzke

Faculty Articles

The 2008 collapse of Lehman Brothers reopened wounds many thought were healed by the Sarbanes-Oxley Act (SOX) in 2002. The Lehman litigation finally ended in late 2013 with audit firm Ernst & Young paying $99 million to investors who claimed the firm misled them with generally accepted accounting principles (GAAP). Other defendants, including banks, officers, and directors, paid out more than $500 million. The bright line standards of GAAP and SOX were obviously not enough to protect Lehman plaintiffs or defendants. Why not? The 2006 fraud trial of Enron CEO Jeffrey Skilling offers clues. When asked at trial whether U.S. …

Accounting For Financial Instruments: Difficulties With Fair Value Measurement And Reporting, Lindsey T. Byrne

Honors Theses and Capstones

No abstract provided.

The Effect Of Ceo It Expertise On The Information Environment: Evidence From Management Earnings Forecasts, Jacob Zachary Haislip

Graduate Theses and Dissertations

Firms depend on information technology to provide high quality internal information, but prior research suggests that IT is underutilized (Venkatesh and Bala 2008). Therefore, using a sample of firms with equivalent levels of technology in their information systems, I investigate whether firms that employ CEOs with IT expertise make forecasts that are more accurate. I argue that CEOs with IT expertise are more likely to encourage the utilization of IT in making earnings forecasts, thus increasing the accuracy of the forecasts. This argument is supported by prior research that suggests that people are more likely to utilize technology if they …

Public Accounting, International Standards, And You: A Closer Look On The Impact Of Ifrs And Gaap Convergence, Daniella Lomo

Honors Scholar Theses

The convergence of US GAAP and IFRS has been significant for the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) over the decade. Due to major differences such as with the consolidation model and the special entities (i.e. Research and Development), there are concerns of how the convergence will affect the accounting practice. The US GAAP is known to have more industry-based details than the IFRS, and so it is essential to know what kind of issues lie from industry to industry. Here, our focus is within the life sciences. More specifically, this paper examines …

A Comparison Of Audit Fee Trends For East Tennessee Based Companies And Similar Companies Based In Similar Regions, William J. Saulsbury

Undergraduate Honors Theses

Research examines audit fee trends for a decade. The research focuses on audit fees of companies in the East Tennessee Area and compares the audit fees of these companies to similar companies based in similar regions of the United States. Possible causes for the fluctuations of audit fees during the decade are also discussed.

Minorities And Women In Accounting, Alyssa K. Lee

Honors Scholar Theses

Traditionally, the field of public accounting has been dominated by white males. Today, minorities and women have been steadily penetrating the profession. As these diverse groups work together, conflicts in culture and awareness often arise. In this paper, I will discuss some of the origins of these conflicts and their effects on the people involved.

Donor And Grantor Reactions To Ceo Compensation In Nonprofit Organizations, Stacey Renee Kaden

Graduate Theses and Dissertations

Nonprofit organizations often rely on donations and grants to accomplish their mission. This study examines whether nonprofit organizations with high CEO compensation receive less in donor and grantor support compared to nonprofit organizations with lower CEO compensation. I find strong evidence that both donors and grantors give less to organizations that spend a larger percentage of total expenses on total CEO compensation. I also find that the reactions of donors and grantors differ based on the type of CEO compensation. While donors and grantors react to CEO base compensation, grantors also react to other CEO compensation and nontaxable benefits.

In …

Alumnus Profile: Joe Adams

Business Exchange

Profile of Joe Adams, managing partner and CEO of McGladrey LLP, the fifth largest assurance, tax and consulting firm in the United States.

Farm Business Management: A Localized Analysis Of Financial Tools Utilized In Agribusiness, Abby L. Lamothe

Honors Theses and Capstones

No abstract provided.

The Effect Of Innovation On Corporate Tax Avoidance, Peng Guo

LSU Doctoral Dissertations

A large body of literature examines the determinants of corporate tax avoidance. In this paper I examine a new determinant of tax avoidance: innovation. Firms with more innovation generate more patents. Due to information asymmetry between the managers of the firm and tax authorities, firms have considerable discretion in choosing which country the patent revenue is generated in. In this study, I predict that firms with more patents will choose to attribute the revenue from those patents to countries with low tax rates. Using a relatively new data source which contains data on patents, I find evidence consistent with my …

An Ever Closer Union: An Investigation Of Accounting Measurement And Timing In The European Union, Elizabeth Marie Devos

Open Access Theses & Dissertations

This paper explores whether the implementation of a unified set of accounting standards, International Financial Reporting Standards (IFRS) is able to overcome prior reporting behaviors by using multiple measures of accounting conservatism, both conditional and unconditional, to proxy for changes in accounting outcomes. Conservatism makes a good proxy for changes in accounting outcomes because it is used as a mechanism to protect key stakeholders and the level of conservatism differs in an international context (Gray, 1988). Countries from different legal systems have different institutional structures and different reporting incentives. Therefore, the sample is bifurcated and regressions are also run based …

Beauty And Academic Career, Hai Lu, Yanju Liu, Kevin Veenstra

Research Collection School Of Accountancy

We examine the impact of beauty on the academic career success of tenure-track accounting professors at top business schools in America, and show that beauty plays a significant role. Specifically, after controlling for gender, ethnicity, publication history, work experience, and quality of alma mater, more attractive professors obtain better first school placements post-PhD and are granted tenure in a shorter period of time. Interestingly, there is no incremental benefit of attractiveness for the career progression from associate to full professor. These findings are consistent with our conjecture that when the signal of an individual’s potential is noisy, beauty becomes a …

The Moderating Effects Of The Ethicality On Both Morality And Religiosity Concerning The Likelihood Of Tax Evasion, Fred Coleman

Doctoral Dissertations

The Internal Revenue Service (IRS) defines the estimate of the difference between the federal income tax due each year and the amount voluntarily and timely paid as the "tax gap". In 1981, the Service reports a tax gap of 81.5 billion dollars. In 2006, the most recent IRS data indicates that the tax gap has risen to 345 billion dollars which suggests that tax evasion in the United States remains a growing concern for the federal government. Although various economic and nonpecuniary theories have been developed to investigate tax noncompliance, Jackson and Milliron (1986) and Cruz et al. (2000) suggest …

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.

Ethics Readiness: An Analysis Of Community College Students' Moral Sensitivity Scores, Julie Wallace

Doctoral Dissertations and Projects

In this retrospective causal-comparative study, the readiness of Virginia community college students to receive an accounting ethics curriculum was analyzed by measuring and comparing their moral sensitivity scores to the moral sensitivity scores of a group of four year university students. A sample of college students attending community college principles of accounting courses and a sample of college students attending four year university principles of accounting courses were administered a nationally recognized moral sensitivity survey instrument, the Defining Issues Test 2 (DIT2). The survey results were analyzed using a t-test for differences between means. It was found that there was …