Search results

1 – 10 of over 8000

Abstract

Details

Harold Cecil Edey: A Collection of Unpublished Material from a 20th Century Accounting Reformer
Type: Book
ISBN: 978-1-78973-670-0

To view the access options for this content please click here
Article

Michael Firth

The purpose of this paper is to discuss briefly the types of research that have been undertaken, to reference a number of American and British studies and to summarise…

Abstract

The purpose of this paper is to discuss briefly the types of research that have been undertaken, to reference a number of American and British studies and to summarise some work in this general area that has been completed by the author whilst at Bradford University and subsequently at Stirling University.

Details

Managerial Finance, vol. 2 no. 3
Type: Research Article
ISSN: 0307-4358

To view the access options for this content please click here
Article

Gerry H. Grant, Karen C. Miller and Fatima Alali

The purpose of this paper is to examine information technology (IT) control deficiencies and their affect on financial reporting.

Abstract

Purpose

The purpose of this paper is to examine information technology (IT) control deficiencies and their affect on financial reporting.

Design/methodology/approach

This study examines 278 companies reporting IT control deficiencies in the first three years of the SOX 404 requirements (2004‐2006). Using quantitative analysis, the study evaluates the impact of IT deficiencies on financial reporting and determines significant differences between companies that report IT deficiencies and companies that do not report IT deficiencies.

Findings

Four accounting errors: revenue recognition issues; receivables, investments and cash issues; inventory, vendor and cost of sales issues; and financial statement, footnote, US GAAP, and segment disclosures issues stand out as common financial reporting problems in companies reporting weak IT controls. This study also suggests that companies with IT control deficiencies report more internal control (IC) deficiencies, are smaller, pay higher audit fees, and are typically audited by smaller accounting firms.

Research limitations/implications

This research is limited in scope since only SOX accelerated filers are included in the analysis. As of this study, smaller, non‐accelerated filers are not required to report IC control weaknesses under SOX.

Originality/value

As of this research, no analysis exists to support or refute the relationship of IT controls and accounting errors. This study re‐affirms the widespread impact that deficient IT controls can have on the overall IC structure of the business. Our study reveals some of the important issues associated with IT in the financial reporting process. The role of IT in financial reporting systems is destined to escalate. Studies, like ours, can help managers and auditors identify IT problems that affect financial reporting and take remedial steps to correct these weaknesses.

Details

Managerial Auditing Journal, vol. 23 no. 8
Type: Research Article
ISSN: 0268-6902

Keywords

To view the access options for this content please click here
Article

Peter Gerhardy and Lisa Wyatt

In this paper content analysis is used to examine the lobbying positions of publicly listed companies making submissions on ED 49, Accounting for Identifiable Intangible…

Abstract

In this paper content analysis is used to examine the lobbying positions of publicly listed companies making submissions on ED 49, Accounting for Identifiable Intangible Assets. A number of content analysis measures are used in an attempt to gain additional insights into the strength of lobbying positions held. The influence of debt contracting and political costs variables upon lobbying position on capitalisation and amortisation of identifiable intangible assets is investigated. Significant relationships are found with the explanatory variables interest coverage, company size, effective tax rate and membership of a politically sensitive industry. These relationships are most consistently observed when lobbying position is measured using more basic content analysis techniques, such as sentence counts and counting the number of supporting arguments presented in submissions. Use of apparently more sophisticated techniques of content analysis fail to perform as well, possibly due to the introduction of greater subjectivity to the process.

Details

Pacific Accounting Review, vol. 13 no. 2
Type: Research Article
ISSN: 0114-0582

To view the access options for this content please click here
Article

Saleha Khumawala and Latha Ramchand

This paper examines if country level corruption affects the size of a country’s stock market and its ability to raise equity capital. Using Transparency International’s…

Abstract

This paper examines if country level corruption affects the size of a country’s stock market and its ability to raise equity capital. Using Transparency International’s ranking of countries based on corruption levels, we relate the corruption index to total market capitalization for a sample of 104 countries and also examine the number and volume of new equity issues in each country across time. Additionally, we examine if corruption affects the frequency of foreign firms’ raising capital in the U.S. We find that the corruption index is not highly correlated to either the number of issues or the total volume of issue. The correlation between the average volume of issue and the TI index suggests that there is no clear cut relation between the corruption index and the likelihood of the firm raising capital abroad.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 17 no. 3
Type: Research Article
ISSN: 1096-3367

To view the access options for this content please click here
Article

Donald R. Fraser, John C. Groth and Steven S. Byers

This paper examines and updates an earlier study of the liquidity of an extensive array of common stocks traded on NYSE/ASE/NML‐NASDAQ. It reports apparent variances in…

Abstract

This paper examines and updates an earlier study of the liquidity of an extensive array of common stocks traded on NYSE/ASE/NML‐NASDAQ. It reports apparent variances in liquidity due to trading location and other variables. The paper suggests causes for these differences.

Details

Studies in Economics and Finance, vol. 17 no. 1
Type: Research Article
ISSN: 1086-7376

To view the access options for this content please click here
Article

Sheeja Sivaprasad and Roshni Dadhaniya

India is one of the largest IPO markets in the world. However, IPO research in the developing world is limited. The purpose of this paper is to test the performance of…

Abstract

Purpose

India is one of the largest IPO markets in the world. However, IPO research in the developing world is limited. The purpose of this paper is to test the performance of Indian IPOs based on sponsored vs non-sponsored issues. The authors classify the IPO sample into venture capital (VC) and private equity (PE) sponsored issues and non-sponsored ones and include key operating characteristics as performance predictors.

Design/methodology/approach

The dependent variable is the buy-and-hold abnormal returns. The study uses key operating characteristics such as market capitalization, net sales, earnings before interest, taxes, depreciation and amortization, depreciation and amortization, price-to-book, asset turnover and leverage. A cross-sectional analysis is applied to test the long-run performance.

Findings

Sponsored IPO issues convey favourable information to investors about future earnings and prospects of the firm. The findings indicate that sponsored issues and, in particular PE sponsored issues are perceived by investors as having a positive impact on the operational performance of firms that the PE firms are involved in relative to the constituents of the index and this superior operational performance over time also leads to relatively better performing share prices. There are significant differences in terms of market size, industry classification and key operating characteristics across the three groups of issues.

Research limitations/implications

This study has had to deal with much smaller samples of PE and VC when compared to similar studies conducted in the developed markets such as the UK and the USA. Further robustness tests on the market performance using factor models posed a problem due to limitation of the availability of these factors.

Practical implications

For the capital markets investors and policy makers, this research demonstrates the increasingly important role that PE and VC funds play in the investment landscape in India. It exhibits the increasing investor confidence in the Indian capital markets.

Originality/value

Using a sample of Indian IPOs comprising VC sponsored and PE sponsored issues, this study analyses the performance of Indian IPOs in an emerging market setting. This study, thus, contributes to the limited IPO research undertaken in developing markets.

Details

Journal of Accounting in Emerging Economies, vol. 10 no. 1
Type: Research Article
ISSN: 2042-1168

Keywords

To view the access options for this content please click here
Book part

Kimberly Key, Teresa Lightner and Bing Luo

This study investigates the relation between residential property values and both property taxes and public services in Georgia’s counties. Capitalization theory predicts…

Abstract

This study investigates the relation between residential property values and both property taxes and public services in Georgia’s counties. Capitalization theory predicts that property values relate negatively to property taxes, and positively to public services. Palmon and Smith (1998) state that errors in public service measures create a capitalization coefficient bias that makes it difficult to isolate tax effects from public service effects. This paper is a first step in defining and quantifying public services and their marginal effect on housing values. It develops public service measures in four quality-of-life areas – economy, education, health, and public safety. The models suggest a strong negative relation between effective tax rates and property values, and a significant positive association between the public service measures and property values. Analyses indicate that property taxes are capitalized into housing prices at greater than 100%, suggesting prior underestimations based on measurement errors in public service variables.

Details

Advances in Taxation
Type: Book
ISBN: 978-1-78635-001-5

Keywords

To view the access options for this content please click here
Article

Clare McParland, Alastair Adair and Stanley McGreal

Outlines the case for the harmonisation of European investment valuation standards. Specific attention focuses upon the national valuation standards within Sweden, The…

Abstract

Outlines the case for the harmonisation of European investment valuation standards. Specific attention focuses upon the national valuation standards within Sweden, The Netherlands, Germany and France with a view to assessing the prospects for uniformly accepted European investment valuation standards. Current practice and perceptions from interviews with 110 valuers are analysed. Educational background and professional training are shown to be influential in decisions upon whether to use national standards, TEGOVA standards or the RICS Red Book. The advent of property performance index series is shown to be a major factor influencing the harmonisation of valuation methods and standards. Conclusions reflect upon the variation between the four countries and the limited progress on the adoption of harmonised standards in Europe.

Details

Journal of Property Investment & Finance, vol. 20 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

To view the access options for this content please click here
Article

Michael J. Turner and Chris Guilding

The purpose of this paper is to empirically investigate the differential motivations of hotel owners and operators to engage in earnings management through the selective…

Abstract

Purpose

The purpose of this paper is to empirically investigate the differential motivations of hotel owners and operators to engage in earnings management through the selective capitalisation or expensing of asset related expenditures.

Design/methodology/approach

Research evidence has been collected via a mixed methods approach utilising 20 semi‐structured interviews with key hotel management contract stakeholders in Australia and a questionnaire survey administered to hotel general managers in Australia and New Zealand.

Findings

A review of the literature has resulted in an original distillation of 18 distinct earnings management motivations for hotel owners and operators. Qualitative data collected suggest an additional four motivations and that the primary motivation for hotel owners and operators to engage in earnings management stems from the two parties' desire to affect the size of the incentive management fee that is paid to hotel operators. A suggestion that operators have a greater tendency to seek to capitalise asset related expenditures, relative to owners, has been supported by both qualitative and quantitative data collected.

Originality/value

This study appears to be the first to have examined the manner in which an idiosyncratic aspect of hotel governance can result in competing earnings management motivations between hotel owners and operators; the first to pursue a broad level of abstraction with respect to examining earnings management in the context of asset related expenditure capitalisation decision making; the first to assess the relative strength of earnings management motivations concerning the capitalisation or expensing of asset related expenditure; and the first to conduct earnings management research utilising a mixed methods research approach involving the conducting of face‐to‐face interviews as well as administration of a questionnaire survey.

1 – 10 of over 8000