Finance and Financial Management Commons^™

The Smartest "Guise" In The Room: Why America Is Doomed To Repeat An Enron-Like Scandal, Shayne Reddington

Honors Theses

There is no question that Enron has brought change to the landscape surrounding business practices both domestically and globally. After the Emon Scandal occurred, Congress passed a very controversial and groundbreaking legislative act known as the Sarbanes-Oxley Act as a means of stopping the conditions that made this widespread scandal possible. There are several reasons why another Emon-type Scandal is prone to repeat itself in the near future. One of the reasons is that Sarbanes-Oxley is not the perfect bill. Although the controversial Sarbanes-Oxley is a valiant effort to reform the environment that fostered Enron, there are major gaps and …

Opportunities And Challenges For The Asset Management Industry, Knowledge@Smu

Knowledge@SMU

Singapore, with its open economy and stable business environment, is host to some of the world's largest asset management companies. It has been observed, however, that local asset management firms are lagging far behind; somehow unable to capitalise on the same opportunities available to the global giants. Speaking at a conference organised by SMU's Centre for Asset Securitisation and Management in Asia, a panel of industry experts shared their views on what it would take to get both local and Asia-based firms into the big league.

W.E. Bowers Ans Associates, Inc. Financial Operations Manual For Construction Cost Accounting, Stephen E. Brown

Purdue Polytechnic Masters Theses

W.E. Bowers and Associates, Inc. typically hires experienced project managers eager to

diversify their work experience. W.E. Bowers and Associates, Inc. verbally instructs

project managers to properly utilize the companies forms and the processes for financial

management of projects. The verbal training typically occurs in a piecemeal fashion. It

occurs only when a new project manager asks

“How To” perform specific tasks. The

project managers all come with different backgrounds and with different backgrounds,

come different business management strategies. The creation of this financial operations

manual will aid in the training of project managers and provide the company with a …

Designing A More Efficient And Fairer Tax System, Knowledge@Smu

Knowledge@SMU

A competent tax system should meet an economy's fiscal needs, but that cannot exist without a tax design that understands, pre-empts, and ultimately shapes human behaviours. Drawing from the UK's Mirrlees Review, Richard Blundell, research director at the London-based Institute of Fiscal Studies, delivered a lecture at Singapore Management University's School of Economics on the principles of the tax reform, and the challenges that await governments in formulating a coherent and economically efficient tax structure.

Supporting Global Metals Markets: The Role Of The London Metals Exchange, Knowledge@Smu

Knowledge@SMU

Most people would expect automobiles and electronics, comprised of many important metal parts, to be sold at relatively stable prices. Little do consumers appreciate, however, the backend market mechanisms that keep these prices stable. A prospective car buyer does not have to monitor his or her dream car's daily price fluctuations, for example, precisely because the parts that go into its manufacture maintain steady prices. This is, in part, the doing of metal exchanges that regulate the demand and supply of metals. Liz Milan, managing director of the London Metals Exchange Asia, explained this and more at a seminar organised …

Predictions For Protection: A System To Measure And Detect Asset Bubbles, Knowledge@Smu

Knowledge@SMU

Millions of lives can be ruined with the bursting of economic bubbles. Just in the past two decades alone, the world has had the misfortune of witnessing two such incidents; first with the dot-com burst, and then most recently, with the housing and sub-prime crisis that led to a global recession. While there is reportedly no cure for the greed, economists have made strides to identify and predict bubbles – thereby paving the way for institutional stopgaps that could well prevent a financial crisis.

Intangible Investments And The Pricing Of Corporate Sga Expenses, Rongbing Huang, Gim S. Seow, Joe S. Shangguan

Faculty Articles

This study examined whether the market fully prices the reported Selling, General, and Administrative (SGA) expenses when this item includes an intangible investment component. For a sample of intangible investment-intensive firms, we showed that their SGA expenses benefit future operating performances. Evidence suggests some degree of market inefficiency in the pricing of SGA expenses and the intangible investment component. Furthermore, the financial analysts do not appear to appreciate fully the future benefits of the component in their earnings forecasts. Finally, the pertinent disclosures in firms’ annual reports are so inadequate as to attenuate the market mispricing, suggesting a significant room …

How The Mindless Growth Mantra Of Modern Economics Is Failing Us, Knowledge@Smu

Knowledge@SMU

As the world ponders the possibility of yet another global recession, one economist has offered up, instead, a critical view of the fundamental flaws within a system so caught up with consumption that a second wave recession would seem more intentional than unnerving. In 'The End of Progress: How modern economics has failed us', author Grame Maxton takes readers through a re-examination of 'the invisible hand' and puts forth several radical ideas for how the world economy may repair itself.

Comprehensive Income Reporting: Fasb Decides Location Matters, Dennis Chambers

Faculty Articles

The article reports on Accounting Standards Update (ASU) 2011-05 issued by the Financial Accounting Services Board (FASB) in June 2011. It states that the standard requires all companies to report comprehensive income and components either in one continuous statement or in two separate, but consecutive, net income and other comprehensive income statements.In both cases, companies must reportedly now report in an income statement-type location for total comprehensive income.

Building Structured Products: Like Manufacturing A Complex, Abstract Car, Knowledge@Smu

Knowledge@SMU

The inner workings of structured financial products and the structured products industry might seem complicated to outsiders looking in. After all, regulatory restrictions, quantitative financial modelling, and foreign exchange options are not exactly universally understood commonplace terms. Industry insiders at a Lee Kong Chian School of Business Public Lecture say, however, that an appreciation for this seemingly complex domain is more about attitude than aptitude.

Effects Of National Culture On Earnings Quality Of Banks, Chee Yeow Lim, Kanagaretnam Kiridaran, Gerald J. Lobo

Research Collection School Of Accountancy

We examine the relation between four dimensions of national culture and earnings quality of banks using a sample of banks from 39 countries. Our main analysis, which focuses on the pre-financial crisis period 1993–2006, indicates that banks in high individualism, high masculinity, and low uncertainty avoidance societies manage earnings to just-meet-or-beat the prior year's earnings. In tests of income smoothing through loan loss provisions, we find that banks in high individualism, high power distance, and low uncertainty avoidance societies report smoother earnings. Our exploratory analysis of the effects of national culture on accounting outcomes during the financial crisis period 2007–2008 …

Achieving Service-Learning Goals In A Financial Accounting Class Project, Darwin D. Yu

Finance and Accounting Faculty Publications

Background: A financial accounting class in a Philippine university has a service-learning group project that involves setting up a simple accounting system for microenterprises. Aims: This paper examines the extent to which service-learning goals such as course learning, teamwork, civic responsibility, and impact on the client organization are achieved through this project, as well as how the level of student participation affects the achievement of these service-learning goals. It identifies measures to improve the quality of the service-learning experience for future implementation. Sample: 187 second year business students in a Philippine university Method: The students filled out a questionnaire which …

Back To Basics: The Little Book That Still Beats The Market, Knowledge@Smu

Knowledge@SMU

Investment theories and principles can be complex and befuddling for many. Yet, one man has devised a formula so simple that it could speak to novices and children. In The Little Book That Still Beats the Market, Columbia University lecturer Joel Greenblatt explains, in large fonts, how he derived what has been termed "the magic formula" and provides some examples as proof of its wizardry. As for weather-beaten investors with no latitude left for "magic", Greenblatt offers a humorous revision of the fundamentals.

China’S Red Capitalism: A Gravity-Defying Economy Built On A Foundation Of Sand?, Knowledge@Smu

Knowledge@SMU

With more than US$3 trillion in foreign exchange reserves, the clutch of four big banks and dozens more internationally-listed state-owned enterprises, there is not much doubt that China has some serious economic muscle. Yet, as authors Carl E. Walter and Frasier J.T. Howie explained in their book, 'Red Capitalism: The fragile financial foundation of China’s extraordinary rise', not all is as it seems in the labyrinth that is China's financial system.

Filling Stomachs Worldwide With Agriculture Risk Transfer Solutions, Knowledge@Smu

Knowledge@SMU

A confluence of factors, such as weather, energy and growing demand, has given rise to a volatile food supply situation worldwide. With few investors willing to take the plunge with this industry, supply and production problems perpetuate. Speaking at a recent seminar at the Singapore Management University, Roman Hohl, an expert in this field with Swiss Re, explains how this issue can be addressed with some help from the insurance industry in the form of risk transfer products. --------------------------------------------------------------------------------

Roubini On Global Economic Risks: “Dr Doom” Or “Dr Realist”?, Knowledge@Smu

Knowledge@SMU

Renowned as the brutally frank commentator that correctly predicted the 2008 financial crisis, New York University's economics professor Nouriel Roubini has made a reputation for himself as the prophet of doom. What does 'Doctor Doom' make of all the fuss about Asia's tiger and dragon economies? He shares his take at a lecture organised by SMU's Sim Kee Boon Institute for Financial Economics while informing audiences that he prefers to be known as 'Doctor Realist'.

Value Investment And Market Timing: Opportunities In Times Of Crises, Knowledge@Smu

Knowledge@SMU

Luminary 'small-cap king' Dr Tan Chong Koay sees opportunities in crises. After all, this industry stalwart's most prolific performances have been during the periods of global economic meltdowns. Beyond financial gains, those who survive these crises would have gained much confidence, he believes. Sharing his investment philosophies at SMU's Centre for Asset Securitisation and Management in Asia, Tan, founder of Pheim Asset Management, explains what he sees as the art and science of investing.

A "Glittering" Bubble: Where Is Gold, At A Record High, Heading Next?, Knowledge@Smu

Knowledge@SMU

Since 2000, the price of gold has surged more than four times to an all time high of more than US$1,400. Is it purely speculative demand that is driving this unprecedented, multi-year surge, or are there other factors at play? With gold at such a high level, is it time for investors to bet that it will drop? Tarun K. Tandon, CEO of FLS Corporation, shares his thoughts at a recent International Trading Institute@SMU seminar.

After The Year Of Two Halves: Outlook, Risks And Opportunities For 2011, Knowledge@Smu

Knowledge@SMU

The post-Lehman Brothers recovery in global financial markets may not have been as reassuring as investors hoped. Meanwhile, conflicts and natural disasters continue to cloud the overall outlook. Through it all, which are the sectors and asset classes to watch in 2011? Senior portfolio fund manager Ong Guat Cheng shares her personal take at SMU's Centre for Asset Securitisation and Management in Asia.

Divining The Merits And Pitfalls Of Dividends, Knowledge@Smu

Knowledge@SMU

Capital gains on stock investments are not always a given, but many companies make it a point to give their shareholders a steady flow of returns that do not require a sell. While such payouts are not as exciting as hitting that 'multi-bagger', here’s something more certain: over time, patient shareholders have more to reap. In 'The Little Book of Big Dividends', author Charles Carlson draws readers' attention to the merits and red flags of investing for dividends.

Government Ownership And Corporate Performance : A Comparative Analysis Of Malaysian And Singaporean Listed Companies., Nazrul Hisyam Ab Razak

Student Works (2010-2019)

This study investigates whether government involvement in companies in the Malaysian and Singaporean business environments leads to better performance. The motivation to undertake this study –to compare the performance of GLCs with Non-GLCs – came from the idea that managers probably perform differently in the presence (or absence) of government involvement because of the different control mechanisms and incentives in place within these companies. Consequently, this study aims to determine whether government ownership of companies in Malaysia and Singapore leads to better company performance. The significance of this study is to examine how Malaysian GLCs can learn from a developed …

Equity Incentives And Earnings Management: Evidence From The Banking Industry, Qiang Cheng, Terry Warfield, Minlei Ye

Research Collection School Of Accountancy

We examine the relationship between equity incentives and earnings management in the banking industry. By focusing on this regulated industry and using industry-specific earnings management proxies, we provide evidence on the impact of regulation on earnings management arising from chief executive officers' equity incentives. We find that bank managers with high equity incentives are more likely to manage earnings, but only when capital ratios are closer to the minimums required by regulators. This finding indicates that, in the banking industry, potential regulatory intervention induces, rather than mitigates, earnings management arising from equity incentives.

Impact Of The Economic Downturn On Local Governments In South Carolina, William Tomes

Georgia Journal of Public Policy

Across the country local government revenues have decreased while operating costs such as fuel, materials, equipment, and health insurance costs have significantly increased. In addition to reduced revenues, interest earnings for city and county government investments are low. These factors combined have created a difficult financial arena in which local governments must operate. While economists are reporting signs of economic recovery, many city and county budgets are just now feeling the full brunt of the economic downturn that began in 2008. On a daily basis, news media nationwide report local governments addressing budget deficits by cutting services, eliminating positions, or …

Trend Of The Future, Not Flavour Of The Month: The Changing Private Equity Industry In Emerging Markets, Knowledge@Smu

Knowledge@SMU

With memories of the recent global financial crisis still fresh in many people's minds, investors are shying away from anything that may sound too risky or complex. TPG Capital, on the other hand, is taking this opportunity to place their bets on the emerging markets. To secure its investments, Ashish Shastry, managing director and Southeast Asia head of this prominent private equity firm, recommended to the audiences at SMU's BNP Paribas Hedge Fund Centre, a road less travelled – engagement and consulting. --------------------------------------------------------------------------------

Cash Flow Management For Sda Organizations, Annetta M. Gibson

Faculty Publications

A presentation on managing cash flow in SDA organizations. Given to the East Central Africa Division on March, 2011.

2010-2011 Financial Summary, Morehead State University. Budget & Financial Planning Office.

Morehead State University Financial Summaries Archive

2010-2011 Financial Summary of Morehead State University.

Carnivorous Lions And Herbivorous Asians: How The Recession Has Made A Case For Leadership In Asia, Knowledge@Smu

Knowledge@SMU

It may seem as if the worse is over. Those oversights and indiscretions which led to the global financial crisis have been exposed and dealt with – or have they? According to Andrew Sheng, renowned economist and distinguished speaker at SMU's Ngee Ann Kongsi Annual Lecture Series, the severity of the crisis is far more extensive than most people believe. Compounding the problem are systemic complexities brought on by "shadow banking", "moral hazards", and the carnivorous lions of Wall Street.

Gold, Gas And Grains: Smartest Investment For The Coming Decade?, Knowledge@Smu

Knowledge@SMU

The disappointing performance of investments like stocks, bonds and real estate during the recent crisis, has only served to accentuate the attractiveness of investing in commodities. With finite supply and voracious demand from countries like China, it seems that the prices of oil, gold, iron and other natural resources could only rise. John Stephenson, of First Asset Investment Management Inc, tells us more in The Little Book of Commodity Investing, why investing in commodities is timely and smart.

Quality Of Work Life: A Review Of Literature, Maynard R. Bagtasos

DLSU Business & Economics Review

The Quality of Work Life (QWL) is a multi-faceted concept, having multi-dimensional constructs brought about by the variation of interest of the researchers and/or its users. The issue of QWL has become critical due to the increasing demands of today’s business environment and of the family structure. This gave rise to an increased interest in QWL not only in business but also for many professions and fields. Determining QWL always involves the interplay between and among the worker, job content, and job context. Furthermore, the determination of the extent of QWL in an organization is a perceptual undertaking. As such, …

Empirical Comparison Of Extreme Value Theory Vis-À-Vis Other Methods Of Var Estimation Using Asean+3 Exchange Rates, Cesar C. Rufino, Emmanuel G. De Guia

DLSU Business & Economics Review

This study applies Extreme Value Theory in calculating Value-at-Risk (VaR) of portfolios consisting of foreign exchange exposures of ASEAN+3 countries. This paper addresses the issue that traditional VaR models assume normality of the return distribution. Empirical evidence confirms the stylized facts that financial asset returns are typically negatively skewed and fat-tailed. Moreover, risk management concerns itself with the distribution of the tails, or events in the extremes of the distribution. Estimation of magnitude and the likelihood of extreme events should be given greater attention than central tendency characteristics. Thus, this paper proposes the application of Extreme Value Theory in computing …