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Book part
Publication date: 19 May 2009

Christopher J. Skousen, Kevin R. Smith and Charlotte J. Wright

This study empirically examines the effectiveness of Cressey's (1953) fraud risk factor framework adopted in SAS No. 99 in detection of financial statement fraud…

Abstract

This study empirically examines the effectiveness of Cressey's (1953) fraud risk factor framework adopted in SAS No. 99 in detection of financial statement fraud. According to Cressey's theory pressure, opportunity and rationalization are always present in fraud situations.

We develop variables which serve as proxy measures for pressure, opportunity, and rationalization and test these variables using publicly available information relating to a set of fraud firms and a matched sample of no-fraud firms. We identify five pressure proxies and two opportunity proxies that are significantly related to financial statement fraud. We find that rapid asset growth, increased cash needs, and external financing are positively related to the likelihood of fraud. Internal versus external ownership of shares and control of the board of directors are also linked to increased incidence of financial statement fraud. Expansion in the number of independent members on the audit committee, however, is negatively related to the occurrence of fraud. Further testing indicates that the significant variables are also effective at predicting which of the sample firms were in the fraud versus no-fraud groups.

Details

Corporate Governance and Firm Performance
Type: Book
ISBN: 978-1-84855-536-5

Article
Publication date: 29 July 2009

Christopher J. Skousen and Brady James Twedt

The purpose of this research is to determine the likelihood of financial statement manipulations in companies throughout a variety of emerging market countries and compare…

2054

Abstract

Purpose

The purpose of this research is to determine the likelihood of financial statement manipulations in companies throughout a variety of emerging market countries and compare this potential wirh that of firms within the USA.

Design/methodology/approach

The authors utilize the Fraud Score Model, as set forth by Dechow et al., to determine the likelihood of financial statement manipulations. By adjusting their model to work in an international setting, the authors are able to study nine industries across 23 countries, including the USA.

Findings

The results vary from industry to industry, with some countries performing extremely well in one industry, only to prove remarkably risky in the next.

Originality/value

The findings may be used by a variety of market participants, especially investors, to determine the risk levels of potential foreign investments. Therefore, this research can help lead to a more overall efficient placement of global capital.

Details

Cross Cultural Management: An International Journal, vol. 16 no. 3
Type: Research Article
ISSN: 1352-7606

Keywords

Article
Publication date: 26 March 2010

Chad Albrecht, Chad Turnbull, Yingying Zhang and Christopher J. Skousen

In recent years, many of South Korea's most prominent organizations have been involved in large‐scale frauds. These frauds have had a devastating impact on South Korean…

3532

Abstract

Purpose

In recent years, many of South Korea's most prominent organizations have been involved in large‐scale frauds. These frauds have had a devastating impact on South Korean society and resulted in unnecessary suffering and high levels of unemployment for the middle class. With the aim of understanding the causes of these scandals, this paper takes an in‐depth look at the chaebol organization.

Design/methodology/approach

The paper takes a conceptual approach by first examining chaebols in greater detail. The paper then examines classical fraud theory, including the fraud triangle. The paper then examines chaebol organizations through the lens of the fraud triangle. By doing so, it is possible to understand why chaebols, in particular, are susceptible to fraud and corruption.

Findings

The paper provides evidence to suggest that chaebol organizations have inherent fraud risks. In order to minimize these fraud risks, chaebol organizations must address these issues.

Originality/value

This paper fulfills an important area of research by providing basic information about the relationship between chaebol organizations and fraud.

Details

Management Research Review, vol. 33 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 14 August 2007

Gary K. Meek, Ramesh P. Rao and Christopher J. Skousen

The purpose of this paper is to examine the factors affecting the relationships between CEO stock option compensation and earnings management.Design/methodology/approach

3706

Abstract

Purpose

The purpose of this paper is to examine the factors affecting the relationships between CEO stock option compensation and earnings management.Design/methodology/approach – Regression of CEO stock option compensation and other factors on measures of discretionary accruals.Findings – A positive relationship between CEO stock option compensation and discretionary accruals was found, implying that earnings management is more likely where stock options are a larger part of CEO compensation. Earnings management is found to be moderated in large firms with stock option compensation and the relationship between stock options and earnings management has intensified in recent years. It was also found that stock options exacerbate earnings management in firms with growth opportunities.Research limitations/implications – Beyond the scope of this paper, these findings raise the following questions: What does the evidence of a size effect mean? Does it reflect information asymmetry, governance, external monitoring, or political risk? Why has the stock option effect on earnings management become more pronounced in recent years? Is it possible to mitigate the negative effects of option compensation on earnings management through the presence of stronger governance structures? Is it possible to mitigate the negative effects of option compensation on earnings management through the presence stronger governance structures? There are implications for compensation policies for corporate executives.Originality/value – This paper extends prior research on the relationship between CEO stock option compensation and earnings management. It provides new insight into the factors affecting this relationship.

Details

Review of Accounting and Finance, vol. 6 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

Content available
Book part
Publication date: 19 May 2009

Abstract

Details

Corporate Governance and Firm Performance
Type: Book
ISBN: 978-1-84855-536-5

Content available
Article
Publication date: 26 March 2010

James L. Bierstaker and Inshik Seol

444

Abstract

Details

Management Research Review, vol. 33 no. 3
Type: Research Article
ISSN: 2040-8269

Article
Publication date: 15 June 2018

Bradley Olson, Satyanarayana Parayitam, Bradley Skousen and Christopher Skousen

The purpose of this paper is to examine the relationships between CEO ownership, stock option compensation, and risk taking. The authors include important CEO power…

Abstract

Purpose

The purpose of this paper is to examine the relationships between CEO ownership, stock option compensation, and risk taking. The authors include important CEO power variables as moderators.

Design/methodology/approach

The paper uses a longitudinal regression analysis. In addition, the paper includes interactional plots for further interpretation.

Findings

The results indicate that CEO ownership reduces risk taking, while there is a partial support that stock options increase risk taking. CEO tenure is a powerful moderator that decreases risk taking in both CEO ownership and CEO stock option scenarios. Board independence, counter to the hypothesis in this paper, may encourage risk taking.

Research limitations/implications

The findings in this paper provide support for the inclusion of CEO power variables in CEO compensation studies. However, the study examines large publicly traded companies; thus, all findings may not be applicable to small- and medium-sized companies.

Originality/value

Scholars have encouraged more complex CEO compensation models and the authors have examined both main effect and interaction models.

Details

Journal of Strategy and Management, vol. 11 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Book part
Publication date: 23 July 2016

Peter J. Boettke, Christopher J. Coyne and Patrick Newman

This chapter provides a comprehensive survey of the contributions of the Austrian school of economics, with specific emphasis on post-WWII developments. We provide a brief…

Abstract

This chapter provides a comprehensive survey of the contributions of the Austrian school of economics, with specific emphasis on post-WWII developments. We provide a brief history and overview of the original theorists of the Austrian school in order to set the stage for the subsequent development of their ideas by Ludwig von Mises and F. A. Hayek. In discussing the main ideas of Mises and Hayek, we focus on how their work provided the foundations for the modern Austrian school, which included Ludwig Lachmann, Murray Rothbard and Israel Kirzner. These scholars contributed to the Austrian revival in the 1960s and 1970s, which, in turn, set the stage for the emergence of the contemporary Austrian school in the 1980s. We review the contemporary development of the Austrian school and, in doing so, discuss the tensions, alternative paths, and the promising future of Austrian economics.

Details

Research in the History of Economic Thought and Methodology
Type: Book
ISBN: 978-1-78560-960-2

Keywords

Content available
Book part
Publication date: 16 July 2019

Abstract

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78973-278-8

Article
Publication date: 3 August 2015

Ribeka Takahashi, David T. Fullwood, Travis M. Rampton, Darrell J. Skousen, Brent L. Adams and Christopher A. Mattson

Microstructure-sensitive design (MSD), for optimal performance of engineering components that are sensitive to material anisotropy, has largely been confined to the realm…

Abstract

Purpose

Microstructure-sensitive design (MSD), for optimal performance of engineering components that are sensitive to material anisotropy, has largely been confined to the realm of theory. The purpose of this paper is to insert the MSD framework into a finite element environment in order to arrive at a practical tool for improved selection and design of materials for critical engineering situations.

Design/methodology/approach

This study applies the recently developed Hybrid Bishop-Hill (HBH) model to map the yield surface of anisotropic oxygen free electronic copper. Combining this information with the detailed local stresses determined via finite element analysis (FEA), a “configurational yield stress” is determined for the entire component. By varying the material choice/processing conditions and selecting the directionality of anisotropy, an optimal configuration is found.

Findings

The paper provides a new FEA-based framework for MSD for yield-limited situations. The approach identified optimal directionality and processing configurations for three engineering situations that are particularly sensitive to material anisotropy.

Research limitations/implications

The microstructure design space for this study is limited to a selection of eight copper materials produced by a range of processing methods, but is generalizable to many materials that exhibit anisotropic behavior.

Originality/value

The introduction of MSD methodology into a finite element environment is a first step toward a comprehensive designer toolkit for exploiting the anisotropy of general materials (such as metals) in a way that is routinely undertaken in the world of fiber-based composite materials. While the gains are not as sizeable (due to the less-extreme anisotropy), in many applications they may be extremely important.

Details

Engineering Computations, vol. 32 no. 6
Type: Research Article
ISSN: 0264-4401

Keywords

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