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1 – 10 of 19Peter Frischmann, K.C. Lin and Dilin Wang
The purpose of this paper is to investigate the effect of non-articulation on analyst earnings forecast quality. The authors look for evidence on the relationship between…
Abstract
Purpose
The purpose of this paper is to investigate the effect of non-articulation on analyst earnings forecast quality. The authors look for evidence on the relationship between non-articulation and analyst earnings forecast properties: forecast inaccuracy, forecast dispersion and forecast bias.
Design/methodology/approach
The empirical tests are primarily based analyst earnings and cash flow forecasts covered by Institutional Broker Estimate System and financial statement information obtained from Compustat North America database.
Findings
The authors hypothesize and find that non-articulation is positively related to analyst forecast dispersion, forecast accuracy and forecast bias for one-year ahead of earnings. The effects of non-articulation on analyst earnings forecast inaccuracy and bias are neutralized when the analyst issues a cash flow forecast and when such forecast provides accurate information regarding the forecasted firm’s operating cash flow. On the other hand, cash flow forecast issuance alone does not mitigate the negative influence of non-articulation.
Research limitations/implications
The sample selection procedure limits the generalizability of the findings.
Practical implications
The findings confirm CFA Institute and prior research asserting that non-articulation deteriorates the quality of earnings forecasts by financial statement users (more specifically, the financial analysts). The authors add to the literature by documenting that accurate cash flow forecasts help analysts mitigate the negative influence of non-articulation on earnings forecast quality.
Originality/value
It remains an empirical question whether non-articulation between the balance sheet and the statement of cash flows has an effect on financial statement users’ ability to assimilate financial information. The paper highlights the detrimental effect of non-articulation by documenting the relationship between the non-articulation and the quality of earnings expectation.
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A cursory look at the contemporary social scientific literature shows that the concept of ambivalence has gained prominence in analyses of contemporary societies and identities…
Abstract
A cursory look at the contemporary social scientific literature shows that the concept of ambivalence has gained prominence in analyses of contemporary societies and identities, and in analyses of interpersonal relationships and interactions. With respect to societal analyses, for example, Bauman has argued that the postmodern habitat “is a territory subjected to rival and contradictory meaning-bestowing claims and hence perpetually ambivalent” (Bauman, 1992, p. 193). “To live with ambivalence,” Varga suggests (Varga, 2001), is the postmodern pronouncement. By using ambivalence as an “interpretive category” rather than as a “research construct” (Lüscher, this volume Chaps 2 and 7), however, sociologists often leave unspecified whether this way of living entails different things for different social actors.
The purpose of this paper is to examine the requirement that non-profit organizations recognize unconditional promises to give as assets and revenues in the year promises are…
Abstract
Purpose
The purpose of this paper is to examine the requirement that non-profit organizations recognize unconditional promises to give as assets and revenues in the year promises are received as mandated by Statement of Financial Accounting Standards (SFAS) No. 116.
Design/methodology/approach
Using the adoption of SFAS No. 116 and financial information reported on Internal Revenue Service Form 990, the study examines the requirement that non-profit organizations recognize unconditional promises to give as assets and revenues in the year promises are received. Combining insights derived from a model developed by Dechow, Kothari and Watts (1998) with the rationale applied by the Financial Accounting Standards Board (FASB) in mandating recognition treatment, it adopts the view that information about promises to give is relevant if it useful in assessing probable future cash inflows. The study also employs relative tests of predictive ability to assess competing specifications.
Findings
The study finds that recognizing unconditional promises to give as assets and as revenues in the year received improves predictions of next period’s cash inflows. It also finds that accrual-based contribution revenue consistently provides information content that is incremental to cash-based contribution revenue.
Research limitations/implications
This paper has implications for several other lines of research as well. First, an ancillary concern expressed by many organizations in the non-profit sector was that the recognition of multi-year promises to give would adversely affect trends in long-term giving. In this regard, another promising line of inquiry would be to empirically test the Standard’s impact on the time-series properties of contributions and short- and long-term giving trends. Second, future research might consider conducting tests after partitioning by NTEE/NAICS classification, as well as substituting or supplementing the SOI data with financial statement data. Third, future research might consider applying the approach used in this study to other industries or groups for which market prices are not readily ascertainable. Data constraints, including the calculation of cash flow information indirectly from the balance sheet, impose limitations on this study.
Practical implications
This study documents that by recognizing unconditional promises to give as assets and revenues in the period received, donors, creditors and other users gain useful information about probable future cash inflows – a fundamental element of the accrual process and one of several important factors used to evaluate an organization’s ability to sustain future operations. This information is valuable to stakeholders and practitioners who rely on this information to make informed decisions. It is also helpful to standard setters in establishing guidelines that improve the usefulness of financial reporting for non-profits.
Originality/value
The paper contributes to existing literature by operationalizing, in a non-profit setting, a model that describes the relationship among revenues, accruals and cash flows. It fills a gap in the accrual literature regarding the relevance of non-profit revenue accruals. The study is the first to employ a relative information content approach to assess non-profit standards, which provides useful input to policy makers and end users. It affirms that many of the key conventions and elements embodied in the FASB Concepts Statements apply to non-profits as well, which heretofore has not been studied extensively. The results are also consistent with Accounting Standards Update 958, Not-for-Profit Entities, which requires that non-profits provide users with information about liquidity, including how they manage liquid resources needed to meet cash requirements for general expenditures within one year of the date of the statement of financial position.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Entrepreneurship in Sweden, and likely the rest of the West, is seen as an area dominated by men, particularly those exhibiting a certain set of characteristics. This review looks at whether the #metoo movement has changed anything at all.
Originality/value
The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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Abstract
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President John F. Kennedy navigated through the Cuban missile crisis with the help of his advisers in the so-called ExComm. While ExComm attendance was very stable and its goal…
Abstract
President John F. Kennedy navigated through the Cuban missile crisis with the help of his advisers in the so-called ExComm. While ExComm attendance was very stable and its goal, the removal of the missiles, clear, true to the garbage can model the options available were socially constructed and were ambiguously related to the objective they purportedly served. An analysis of the recorded discussions reveals that Kennedy's choice of a blockade required the ExComm to suppress talk about the perils it entailed; his decision not to intercept a Soviet tanker was based less on caution than unsustainable indecision; and when Kennedy squared off against his advisers regarding the best way to respond to Khrushchev's conflicting offers on October 26 and 27, the latter worked to exclude him from the very decision he was about to make. The analysis points to a natural affinity between the garbage can model and ethnomethodological attention to the fine-grained details of deliberative talk.
Despite the healthy growth in studies and publications in recent years in relation to the expanding paradigm of gender and entrepreneurship, and notwithstanding the success of…
Abstract
Purpose
Despite the healthy growth in studies and publications in recent years in relation to the expanding paradigm of gender and entrepreneurship, and notwithstanding the success of this very journal, from the perspective of the author, the field remains overly dominated by a focus on female and women's entrepreneurship. Conversely, there are few studies on masculinity and entrepreneurship and the role of men in shaping gendered entrepreneurship. In addition, few male entrepreneurship scholars choose to write in this niche and specialised field. Indeed, there is a discernible imbalance in the literature in relation to what can be termed as “silent” and “silenced” masculinities. In this reflection, the study aims to look back at his career as an entrepreneurship and gender scholar, considering why this situation exists.
Design/methodology/approach
This is an invited, reflective essay written in an auto-ethnographic style containing personal viewpoints.
Findings
In the feminist-inspired gender and entrepreneurship literature, “Patriarchy” and the entrepreneurial “strawman” are blamed for the problems associated with the “silent” and silenced female entrepreneur. Much of the gendered literature concentrates on gendered female stereotypes and in particular on negative elements of these. The main finding is that the common assumption of the female as proxy for gender has, to date, prevented the consideration of the full spectrum of gendered identities. These issues are explored, and a call is made for more in-depth research into masculinity and entrepreneurship.
Originality/value
This reflection presents some novel thoughts on how to advance the debate on gender scholarship and in particular masculinity.
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Land and agrarian reforms were main promises of the ANC during its ascension to power: the objective was to redistribute 30% of the land within 5 years after the end of apartheid…
Abstract
Land and agrarian reforms were main promises of the ANC during its ascension to power: the objective was to redistribute 30% of the land within 5 years after the end of apartheid and, through this redistribution, restructure the agricultural sector. Nevertheless, presently, more than 10 years after the first democratic elections, only 3.1% of the land has been redistributed and the farming sector remains extremely dual. This paper argues that the implemented market‐oriented reforms, which are not complemented by regulation measures, do not represent the capacities of transformation of the racial configuration of South Africa's territory and agricultural sector.