Accounting Commons^™

Cpa Client Bulletin, August 2008, American Institute Of Certified Public Accountants (Aicpa)

Newsletters

No abstract provided.

The Asian Banker: From Trade Journal To Industry Benchmark Setter, Knowledge@Smu

Knowledge@SMU

Emmanuel Daniel is founding president and editor-in-chief of The Asian Banker, one of the region’s leading consultancies in financial services research, benchmarking and intelligence. A trade publisher should provide leadership and not be a follower of the industry that it covers, believes Daniel, who spoke recently at a Masters Seminar on benchmarking and measuring IT performance in banks organised by the School of Information Systems, Singapore Management University.

Final Report Of The Advisory Committee On Improvements To Financial Reporting To The United States Securities And Exchange Commission, Advisory Committee On Improvements To Financial Reporting, United States. Securities And Exchange Commitssion

Federal Publications

No abstract provided.

Does Earnings Quality Affect Information Asymmetry: Evidence From Trading Costs, Nilabhra Bhattacharya, Hemang Desai, Kumar Venkataraman

Research Collection School Of Accountancy

The adverse consequences of poor earnings quality have been the subject of significant debate among academics, practitioners and regulators. However, the empirical evidence on pricing implications of earnings quality is sparse and controversial. We examine one potential consequence of poor earnings quality - its impact on information asymmetry. We document that poor earnings quality increases the adverse selection risk as manifested in trading costs and lowers liquidity in financial markets. Both innate and discretionary components of earnings quality contribute significantly to information asymmetry. Further, poor earnings quality exacerbates information asymmetry around earnings announcements, especially for firms where earnings represent the …

Cpa Client Bulletin, July 2008, American Institute Of Certified Public Accountants (Aicpa)

Newsletters

No abstract provided.

Herd Behaviour In Financial Markets: Do Traders Follow The Crowd Or Do Their Own Thing?, Knowledge@Smu

Knowledge@SMU

In financial markets, what part of a trader’s action is simply “following the crowd” or herding, and how much is based on the trader’s own information? Herding has been shown to decrease the stability and efficiency of markets, hence the interest in these behaviours. Marco Cipriani (Asian Division, IMF Institute) and Antonio Guarino (University College London) studied herd behaviour in a laboratory setting involving financial market professionals. Cipriani presented a co-authored IMF working paper on herd behaviour in financial markets at a recent seminar at the Singapore Management University. --------------------------------------------------------------------------------

The Effect Of The Form Of Tax Incentives On Individuals' Savings Decisions, Julia M. Camp, David S. Hulse, Cynthia Vines

School of Business Faculty Publications

Congress and the media have both expressed concerns about Americans’ low savings rates. We address these concerns by investigating the extent to which the form of an investment’s tax preference affects individuals’ willingness to choose a tax-preferred vehicle over a less restrictive, but non-tax-preferred, investment. Specifically, we tested the extent to which subjects chose a traditional savings plan versus an investment resembling either a traditional IRA, Roth IRA, or government matching program. We find that subjects are not as sensitive to the form of the tax preference as they are to restrictions on their ability to withdraw funds. This suggests …

Tax Policy Questions Regarding The Federal Estate Tax And Charitable Bequests: A Two State Analysis Of Probate Records, Steven Hanke

Doctoral Dissertations

There is considerable support for extending the temporary repeal of the federal estate tax in 2010 into a permanent repeal. Although repealing the federal estate tax would simplify the current tax system, it may also impair the federal government's ability to prudently aid eleemosynary organizations if charitable bequests' preferential tax treatment is a budget efficient policy. Furthermore, overall charitable bequests may also decline in the absence of a federal estate tax.

Using Virginia and Louisiana probate records from the years 2000-2005, tax policy questions are examined regarding the federal estate tax and charitable bequests. Tobit regression models, adjusted for heteroscedasticity …

Planner, Volume 23, Number 4, July-August 2008, American Institute Of Certified Public Accountants (Aicpa)

Newsletters

No abstract provided.

Cpa Client Tax Letter, July/August/September 2008, American Institute Of Certified Public Accountants (Aicpa)

Newsletters

No abstract provided.

Ethics And Disclosure: A Study Of The Financial Performance Of Firms In The Seasoned Equity Offerings Market, Hoje Jo, Yongtae Kim

Accounting

In this article, we examine the association between ethics and disclosure and the impact of this association on the long-term, post-issue performance of seasoned equity offerings (SEOs). We argue that firms with extensive disclosure are less likely to face information problems, and more likely to lead to active shareholder monitoring, and therefore, engage in fewer unethical activities, such as aggressive earnings manipulation, and have better long-term, post-issue performance. Consistent with these predictions, this study presents evidence that disclosure is negatively related to unethical earnings manipulation and positively associated with long-term, post-issue performance. In particular, we find that long-term, post-issue SEO …

An Empirical Investigation Of The Fairtax As An Alternative To The Federal Personal Income, Corporate Income, Estate And Gift, And Payroll Taxes, Yingxu Kuang

Doctoral Dissertations

Dissatisfaction with the current federal tax system is fostering serious interest in a national retail sales tax. Specifically, the FairTax Plan intends to replace most of the federal taxes with a national retail sales tax and is gaining momentum in Congress because of its purported progressive features. The FairTax is promoted as being progressive but there is considerable opposition to this claim.

Using the most recent 2005 Consumer Expenditure Survey (CES) data and estimating lifetime income from a Panel Study of Income Dynamics (PSID) panel tracked over 1968-2005, the distribution impacts of the FairTax Plan are examined, as well as …

Value Relevance Of Deferred Taxes In Mergers And Acquisitions, Wei-Chih Chiang

Doctoral Dissertations

The major concern in a mergers and acquisitions (M&A) transaction is how to determine the economic benefits and burdens and allocate them among the participating firms. Part of this concern can be described as the question of how the participating firms ascertain and price the potential tax benefits of the target's tax attributes.

Different from prior research, which focuses on the reaction of the market, this study emphasizes the viewpoint of the participating firms in pricing the target firms' deferred taxes when determining the acquisition price. The results indicate that the participating firms assign value to the target firms' deferred …

Debt Financing Does Not Create Circularity Within Pro Forma Analysis, Tom Arnold, Peter C. Eisemann

Finance Faculty Publications

Using debt to finance a firm's external financing need within a pro forma analysis can lead to "circularity" when finding the appropriate value for debt. The circularity incorrectly implies that there is no direct solution for finding the value of debt. In this paper, a direct solution for the value of debt is found; thereby showing that circularity need not exist. Further, the technique is demonstrated to be more accurate than the "additional funds needed" (AFN) approach featured in many texts.

Ethics Interpretation No. 501-8, “Failure To Follow Requirements Of Governmental Bodies, Commissions, Or Other Regulatory Agencies On Indemnification And Limitation Of Liability Provisions In Connection With Audit And Other Attest Services”(Aicpa, Professional Standards, Vol. 2, Et Sec. 501 Par. .09), July 2008, American Institute Of Certified Public Accountants. Professional Ethics Executive Committee

AICPA Professional Standards

No abstract provided.

Benchmarking The Home Pages Of The Top Multinational Manufacturing Corporations In The Philippines, Jeden O. Tolentino

DLSU Business & Economics Review

In the information age, having a presence on the World Wide Web is critical for firms to establish and maintain competitive advantage. This study evaluated the Web presence of the top multinational manufacturing corporations in the Philippines. A sample of 70 Web sites of companies in BusinessWorld’s list of the Top 1000 Corporations in the Philippines for 2006 was subjected to a framework of ten critical factors; and comparisons were made against existing benchmarks. Thereafter, the functionality of the Web sites of the three top-ranked companies was analyzed using a two-dimensional grid for Web site evaluation. Results indicate that there …

Lagged Effect Of Tv Advertising On Sales Lagged Effect Of Tv Advertising On Sales Of An Intermittently Advertised Product Of An Intermittently Advertised Product, Cesar C. Rufino

DLSU Business & Economics Review

This study is an empirical evaluation of the dynamic effect of intermittent television ad placements on the sales of a consumer product using three classes of distributed lag models. The study is also geared to analytically determine the duration of advertising effects and the dependability of the firm’s pulsing type of advertising strategy. Empirical results support the soundness of the company’s strategy. Maximum duration of advertising effect is estimated at six months, which is about the largest number of consecutive months the product was not seen on TV during the sample period.

Lost And Found Again: Subjective Norm In Gym Membership, Octavia Leeman, Jaime S. Ong

DLSU Business & Economics Review

Understanding behavioral intention, a critical aspect of market planning, is not simple, as many factors are involved in the formation of behavioral intention. This study endeavored to better understand the relationship between attitude, subjective norm and behavioral intention in an empirical study of gym membership. Using a model based on the Theory of Reasoned Action, the study examined the influence of attitude and subjective norm on behavioral intention to join a gym. An analysis of the findings suggested that to maintain current gym members, a gym operator should capitalize on attitudes favoring gym membership.

The Patent System And The Quest For Affordable Medicines, Christopher E. Cruz

DLSU Business & Economics Review

This study examined how the patent system in the Philippines – as embodied by the Intellectual Property Code – affects the public’s access to affordable medicines. It discussed the issue of patent protection vs. public health in the context of the Philippine pharmaceutical industry. The study discovered that Filipino-owned pharmaceutical companies find it difficult to compete with multinational corporations, and that this factor has raised the prices of medicines in the Philippines. The study then proposed solutions to the problem, which include the promotion of off-patent drugs and the amendment of the Intellectual Property Code.

Planning Or Warfare: On Urban Allocation Of Land, Syed A. Samad

DLSU Business & Economics Review

This study reviewed the subject of the urban allocation of land, and mainly drew from two major works: Vernon (1960) and Vreeker, de Groot, and Verhoef (2007). The two major works were analyzed along with other relevant issues such as urban multifunctional land use, clustering of firms, and empirical implications. Recommendations regarding the urban allocation of land were then presented.

A Preliminary Exploration Of Generational Similarities And Differences In Values Between The United States, United Kingdom, Iceland, Japan, Korea, Colombia And The Philippines, Arnel Onesimo Uy, Edward F. Murphy Jr, Regina A. Greenwood, Jaime A. Ruiz-Gutierrez, Terrell G. Manyak, Bahaudin Mujtaba

DLSU Business & Economics Review

Generational similarities and differences among working adults in the United States, United Kingdom, Iceland, Japan, Korea, the Philippines, and Colombia were investigated using the Rokeach Value Survey (RVS). Hypotheses were supported for cross-cultural generational differences for 23 of 36 values; there were also generational similarities. Sixteen values were ranked similarly for the 40+ year-old generation; thirteen values were ranked similarly for the 18 to 29 year-old generation; and 13 values were ranked similarly for the 30 to 39 year olds. This study is one of the first to identify values that are similar across cross-cultural generations in Western, Eastern, South …

Cross-Country Analysis Of Auditor Specialization Premium: Effect Of Legal, Extra-Legal And Political Environments, Sirinidhi Bin, M. Hossain, Chee Yeow Lim

Research Collection School Of Accountancy

Previous literature has provided mixed evidence of a premium in audit fee for industry-specialist auditors in US and other developed countries. In this cross-country study spanning twelve non-US countries, we provide evidence of such a premium in the international context, implying that specialist auditors provide a higher level of investor assurance than non-specialists. Further, we show that the average audit fee in countries with effective legal, extra-legal and political institutions is higher but the specialization premium is lower than in other countries. We interpret this finding as evidence that while effective institutions increase the demand for average level of audit …

Comment Letters On Proposed Statement On Standards For Attestation Engagements: An Examination Of An Entity's Internal Control Over Financial Reporting That Is Integrated With An Audit Of Its Financial Statements, June 12, 2008, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Proposed Statement On Auditing Standards, Communicating Internal Control Related Matters Identified In An Audit, June 12, 2008; Exposure Draft (American Institute Of Certified Public Accountants), 2008, June 12, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Comment Letters On Proposed Statement On Auditing Standards, Communicating Internal Control Related Matters Identified In An Audit, June 12, 2008, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Can Monetary Policy Help To Stabilise Asset Prices?, Knowledge@Smu

Knowledge@SMU

Should central banks use monetary policy to stabilise asset prices, particularly home and equity prices? Stefan Gerlach, professor of monetary economics, Johann Wolfgang Goethe University of Frankfurt, points out that no central bank has had lowering home prices as one of its policy goals. Gerlach spoke recently at an Economics and Statistics Seminar at the Singapore Management University on how residential property and equity prices, inflation and economic activity responded to monetary policy shocks in 17 countries from 1986 to 2006.

Cpa Client Bulletin, June 2008, American Institute Of Certified Public Accountants (Aicpa)

Newsletters

No abstract provided.

Share Loans Under Irs Microscope, A. Bruce Clements

Faculty Articles

In a recently released Coordinated Issue Paper (LMSB-04-1207-077), the IRS underscored how its examinations will home in on a once-favored strategy for monetizing stock gains while deferring capital gains taxes. In doing so, the Service reiterated its legal basis for why a variable prepaid forward contract (VPFC) that includes a share lending agreement (SLA) results in a currently taxable sale.

A Study Of Foreign Earnings Management Using An Empirical Distribution Approach, Nancy Manzhen Fan

Accounting Dissertations - Archive

Effective January 1, 1998, SFAS 131 changed the way managers voluntarily disclose business, geographic and operating segments of their companies. Reporting geographic segments is specifically related to the reporting of overseas operations of multinational companies. This study analyzes the possibility of earnings management in foreign earnings and how SFAS 131 might have changed the patterns of foreign earnings distribution. I use an empirical distribution approach outlined by Burgstahler and Dichev (1997) in examining whether foreign earnings are managed to avoid earnings decreases and losses. Results show that foreign earnings are managed to avoid losses but not earnings decreases. In addition, …

A Survey Of Audit Committee Members Of Public Listed Companies In Singapore, Kwong Sin Leong, Themin Suwardy, Yang Hoong Pang

Research Collection School Of Accountancy

This report summarises the results of the survey of audit committee members of public listed companies in Singapore commissionedby the Audit Committee Guidance Committee (ACGC). Funding for this project was provided by School of Accountancy, Singapore Management University. The sampling frame was locally-domiciled audit committee members of publicly listed companies in Singapore. A sample size of 711 would have been adequate to achieve a 95% confidence level, and a 3% confidence interval. The survey was sent out to 873 names and addresses provided by the Accounting and Corporate Regulatory of Singapore on 14 March2008, with a reminder on 4 April …