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The purpose of this paper is to examine whether the expected rate of return (ERR) management is related to disclosure of pension asset allocation. FAS 132R(1), which requires firms to disaggregate the detailed categories of pension asset allocation, provides a natural experiment setting for investigating the effect of enhanced transparency on firm behavior.

The authors focus on the variation of voluntary disclosure and its effect on ERR management under the two different reporting regimes. The authors measure the variation of voluntary disclosure of the pension asset allocations in the pre-period of FAS 132R(1), by using the self-constructed disclosure score.

First, firms create flexibility in their choice of ERR through opaque disclosure of pension asset allocation. Next, firms with poor disclosures are more likely to adjust ERR downward when accounting standards require greater transparency, implying that, for firms with poor disclosures, mandated transparency in pension asset allocation plays a vital role in reducing the ERR management.

The authors directly illustrate the impact of FAS 132R(1) on ERR management. The authors find that the impact of mandated transparency is not uniform across firms. Next, this study highlights the importance of disclosure in restricting managers’ earnings management motivation.

The authors hand collect the asset allocations under pre-FAS 132R(1) period from the 10-K pension footnotes for all S&P 500 firms, which allows the authors to identify the disclosure variation amongst the firms. Based on the variation of disclosure, the authors construct the ordinal measure of disclosure scores on which the testing indicator variables are built.

This paper presents the major findings of recently completed research in the UK concerning the attributes of information as an asset and its impact on organisational performance. The research study employed an automated information asset- and attribute-scoring grid exercise and semi-structured open-ended interviews with 45 senior UK managers in four case study organisations. The information asset-scoring grid was developed to provide a simple visual representation of information assets and attributes using Excel charts. The semi-structured open-ended interviews aimed to identify the attributes of information assets considered significant by 45 senior UK managers and to explore relevant issues such as the value of information and organisational effectiveness.

The purpose of this paper is to provide an in-depth performance evaluation of funds offered by the Turkish pension system.

This paper compares aggregate fund index returns with the corresponding asset class returns, estimates a factor model to decompose excess returns to factor exposures, i.e., β return and excess return originating from residual α and analyzes persistence of fund returns using migration tables and Fama–MacBeth regressions and tests for market timing ability.

Majority of pension funds are unable to generate excess returns. Majority of funds are unable to generate a positive α and fund returns are predominantly driven factor exposures. There is evidence for slight persistence in returns, mainly due to factor exposures and funds do not exhibit market timing ability.

In this paper, the authors perform an in-depth analysis of pension fund performance for the Turkish pension fund system. The authors identify weaknesses and strengths of the pension fund industry and provide policy recommendations for a better design of pension fund system.

Recognition, measurement and disclosure of public sector assets constitute relevant matters for national and international public sector accounting standard-setting. This chapter develops a theoretical analysis drawing upon a dualistic approach contrasting current value and historical cost accounting models. Accordingly, the latter should be adapted and then preferred to cope with public sector specificities, with a view to providing information for and enforcing accountability to citizens and their political representatives. Drawing upon this theoretical setting, our analysis develops a consistent design for the overarching conceptual framework for assets in general, providing illustrative examples for specific categories such as financial, heritage, natural and military assets.

The Federal Reserve regulates U.S. commercial banks using a system of risk-based capital (RBC) regulations based on the Basel Accords. Unfortunately, the Fed’s mis-rating of several assets such as mortgage-backed securities encouraged the build-up of these assets in the banking system and was a major contributing factor to the 2008 financial crisis. The Basel system of RBC regulation is a prime example of a Hayekian knowledge problem. The contextual, tacit, and subjective knowledge required to properly assess asset risk cannot be aggregated and utilized by regulators. An effective system of banking regulation must acknowledge man’s limited knowledge and place greater value on individual decisions than on top-down planning.

Strategic management plays a pivotal role in the growth and success of organizations, significantly impacting their business performance and competitive edge. In today’s globalized markets, strategic management is gaining prominence as a means to enhance company performance and distinctiveness. Within this landscape, the evaluation of organizational effectiveness takes on heightened significance, complemented by the emergence of strategic management frameworks designed to secure enduring competitive advantages for businesses.

One of the best known approaches to organizational resource assessment is the value, rarity, inimitability and organizational-oriented (VRIO) framework. However, this tool comes with inherent limitations that have hindered its advancement, primarily related to the need for less subjective means of identifying and assigning weights to resources and capabilities during the evaluation process. This study, therefore, endeavored to refine the VRIO framework, making it more transparent and empirically robust. To achieve this aim, the framework was combined with the decision-making trial and evaluation laboratory (DEMATEL) method (i.e. a multiple criteria decision analysis (MCDA) method), and a real-life application was conducted.

The evaluation system created was tested, and the results demonstrate that the dual methodology used can increase the understanding of resource appraisal and lead to more informed and potentially better evaluations of resources and capabilities. The strengths and shortcomings of this new structured evaluation model are also analyzed.

The authors know of no prior work reporting the integrated use of VRIO and DEMATEL in this study context.

There is an ongoing controversy over whether or not to extend commercial banks' nonbanking powers. Although the Glass‐Steagall Act of 1933 and the McFadden‐Pepper Act of 1927 restrict commercial banks' activities, the technological and financial innovations of the last several years have raised new questions. Whether banks should be allowed to undertake nonbanking activities? How profitable are these businesses? Whether banks will gain monopolistic powers? Will they increase FDIC's liabilities? And several other related questions. This study looks at the nonbanking activities of bank holding companies using a relatively new data source, i.e. FR‐Y11AS reports for the years 1989 and 1990. The performance of nonbanking subsidiaries is then compared with that of commercial banks and bank holding companies. Some meaningful inferences are drawn on issues such as market concentration, profitability, capitalization, and level of problem‐loans of nonbanking and banking subsidiaries, as well as, consolidated bank holding companies. Results from two prior studies are further utilized to look for possible trends. Since these studies have used the same data source (FR‐Y11Q and FR‐ Yl1AS) for the years 1986 through 1988, this facilitates a trend analysis over a five year period 1986–90. The main conclusions are that the BHC's nonbanking activities are heavily concentrated among the top five or ten firms within each activity. However, both the number of firms as well as total assets held in most nonbanking subsidiaries have declined over the five year period. Activities considered traditional, e.g. commercial and consumer finance and mortgage banking have suffered significant losses in terms of total assets and number of firms. Some interesting conclusions can be drawn from these results. First, due to the growing liberalization in interstate banking laws, BHCs can now carry on these activities in their bank subsidiaries and do not have to acquire a nonbanking subsidiary in order to capture business across state lines. Second, the glass walls separating banking from commerce may be cracking. Several states have started allowing banks to carry out some of the nonbanking activities, hence, considerably neutralizing the Glass‐Steagall Act. Insurance agencies and underwriting business of BHCs show the most significant growth over the five years, 1986–1990. Securities brokerage has held constant. Another finding is that the return on equity (ROE) for nonbanking firms has been lower than both the banking firms as well as the BHCs. However, this is mainly due to the relatively low equity capital levels for banks and BHCs. The nonbanking subsidiaries show fairly stable and relatively high capital ratios. Finally, for most part, nonbanking subsidiaries have a higher rate of problem‐loans.

This chapter shows how to identify the characteristics of borrowers that are part of a credit scoring model. The credit risk scoring model is an important tool for evaluating credit risk associated with customer characteristics that affect defaults. This research was conducted at a financial institution, a subsidiary of a commercial bank in Indonesia, to answer the challenge of determining the feasibility of providing financing quickly and accurately. This model uses a logistic regression method based on customer data with indicators of demographic characteristics, assets, occupations, and financing payments. This study identifies nine variables that meet the goodness of fit criteria, which consist of WOE, IV, and p-value. The nine variables can be used as predictors of default probability: type of work, work experience, net finance value, tenor, car brand, asset price, percentage of down payment (DP), interest, and income. The results of the study form a risk assessment model to identify variables that have a significant effect on the probability of default.

The purpose of this paper is to contribute to the discussion on the non-essence of accounting by focusing on financial accounting’s distinct technology: financial statements. Complementing the genealogical perspective on accounting’s changing socio-historical settings, it proposes a semiotic perspective on the accounting statement.

The paper takes an interdisciplinary approach in the theoretical framing of IFRS recognition and measurement principles that underlie the statement of financial position. It mobilises Saussure and Barthes’ sign theory – semiology, as it provides a meaningful delineation of financial accounting, bringing out its distinct numerical-linguistic knowledge-construction operation.

In addition to the justification of employing semiology as a parent discipline for accounting, it is shown how IASB’s recognition and measurement procedures manifest the interrelated non-essentialist semiological principles of reciprocal articulation and value constellation. Accounting entries (“expression”) are not representations of pre-existing economic resources (“content”), but rather both are mutually constituted by delimiting the resource/asset from its broader category. Such judgment-based articulation results with value constellations, where asset value is merely a relational product of other values.

To the long-established critique that accounting has no essence, the paper adds a formulation of a non-essentialist semiotic logic: the financial statement’s semio-logic. It further sheds light on the role of such logic as an epistemological presupposition to the accounting – society reciprocity, where accounting is a malleable product of, and is used to exert power over, its social surroundings.

The purpose of this paper is to investigate intangible disclosure quality (IDQ) in an international sample of 29 stock‐quoted telecommunications network operators (TNOs). IDQ is captured separately for annual reports and websites of TNOs using a set of seven intangible asset categories. The article also explores associations between annual report and website IDQ on the one hand and variables interpreted either as IDQ antecedents (e.g. firm size) or as IDQ performance consequences (e.g. market‐to‐book ratio) on the other.

TNOs' 2003 or 2003/2004 annual reports and TNOs' websites (as of May 2005) were subjected to content analytical procedures in order to quantify sample firms' disclosure quality levels for seven categories of intangible assets derived from a framework suggested by the Deutsche Schmalenbach Gesellschaft für Betriebswirtschaft eV.

Both annual report and website IDQ levels of TNOs were relatively low. Intangible disclosures were often limited to small pieces of qualitative information. Annual report and website IDQ are significantly positively interrelated. IDQ varies significantly by the home region of the TNO, with European TNOs displaying higher quality levels than their American counterparts. IDQ measures were not significantly related to TNOs' financial performance criteria.

Research limitations result from the study's single industry focus, small sample size and the limited range of variables investigated as potential IDQ antecedents/consequences.

TNOs get insights on IDQ within their industry. Regulators/standard setting accounting institutions are encouraged to encounter industry‐specific intangible characteristics by industry‐focused intangible measurement rules in addition to an overall intangible reporting framework.

This study is the first investigation that simultaneously analyzes IDQ both in a firm's annual report and on its website. Further, it is unique in its use of uni‐ and multivariate analytical techniques exploring IDQ antecedents/consequences and in its single industry/TNO focus.