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1 – 2 of 2Pamela Fae Kent, Richard Kent and Michael Killey
This study aims to provide insights into US and Australian analysts' views regarding the relative importance of disclosing the direct method (DM) or indirect method (IM) statement…
Abstract
Purpose
This study aims to provide insights into US and Australian analysts' views regarding the relative importance of disclosing the direct method (DM) or indirect method (IM) statement of cash flows and forecasting firm performance.
Design/methodology/approach
Evidence is collected from responses to 104 surveys and 52 interviews completed by US and Australian analysts from 2017 to 2022. The survey and interview questions are developed with reference to the literature.
Findings
US and Australian analysts believe that the DM format provides incremental benefits compared to the IM for (1) confirming the reliability of earnings; (2) improving earnings confidence; (3) more accurate ex ante forecasts of operating cash flow and earnings; and (4) identifying opportunistic accruals manipulation. Analysts view that DM disclosure can lower firm-level cost of equity, although US interviewees more uniformly expect lower costs of equity under DM disclosure when firms yield low earnings quality. DM disclosure is also more important during unstable economic periods, as proxied by COVID-19.
Originality/value
Limited research currently exists regarding disclosure of the DM or IM and its impact on analysts' forecasting accuracy, earnings quality, economic uncertainty and cost of equity. Previous research has relied on archival research to examine differences between the DM and IM methods and are limited by data availability. Our findings are particularly relevant to the US market with few US firms reporting the DM format.
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Mustafa Çiçekler, Velican Üzüm and Emrullah Çopurkuyu
The purpose of this study is to investigate the effects of a pigment coating on the mechanical properties of fluting paper.
Abstract
Purpose
The purpose of this study is to investigate the effects of a pigment coating on the mechanical properties of fluting paper.
Design/methodology/approach
Two different calcium carbonate pigments were used in the preparation of the coated color, precipitated calcium carbonate (PCC) and ground calcium carbonate (GCC). Fluting paper produced by recycling waste paper was used as base paper. The effects of PCC and GCC pigments on mechanical properties were compared. Ring crush test (RCT), corrugating medium test (CMT), corrugating crush test (CCT), tensile and burst strength tests were applied to the coated papers, and the results were compared to the mechanical properties of base paper.
Findings
The tensile and burst indices of the coated papers were found to be higher than base papers about 13.9% and 6.05%, respectively. While the coating process positively affected the RCT and CCT values, it did not show a significant impact on the CMT values. GCC, one of the pigments used in coating colors, had a more effective effect on the mechanical properties of fluting papers compared to PCC.
Originality/value
These results suggest that coating of fluting papers has a positive effect on mechanical properties and the use of GCC as a pigment is more effective than PCC.
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