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The purpose of this paper is to examine the impact of non-staggered voting for members of the board of directors on earnings quality and the value relevance of earnings and book value.

The authors used a sample of Taiwanese firms whose board was elected as a whole every three years from 2003 to 2013. The authors used multiple regression analysis to test whether board of directors elections and corporate governance affected earnings quality and the value relevance of earnings and book value.

The authors found that elections led to lower earnings quality, but better corporate governance led to greater earnings quality. In the presence of board elections, earnings have reduced value relevance but book value had increased value relevance. Finally, given board elections, the relative value relevance of earnings and book value on stock price was not fully moderated by strong corporate governance.

The results presented here indicate the importance of better corporate governance in diffusing suspicions of management occasioned by the use of discretionary accruals in years in which board elections take place. Better corporate governance regimes led to a more positive relationship of discretionary accruals to earnings persistence, even in the presence of directorial elections. Similarly, better corporate governance regimes led to a more positive relationship between earnings per share and stock prices. Limitations include the restriction of the testing locale to Taiwan. That said, many companies around the globe use non-staggered board elections. Accordingly, these results suggest issues of importance to corporate governance advocates beyond Taiwan as well.

This study deepens the field’s understanding of the impact of corporate governance arrangements and schedules for electing board of directors’ members on issues of interest to stockholders.

We examine voting outcomes on shareholder governance proposals that seek annual elections for all the directors on the corporate board. We relate these voting outcomes to different ownership structure characteristics and a series of variables that are publicly available. The pattern of support indicates that proposals are generally successful when they are supported by large activist groups and when institutions hold a significant fraction of shares outstanding. Our evidence casts some doubt on the efficacy of the Rule 14A-8 mechanism, which limits the amount of information that can be provided to shareholders as part of the proposal.

This paper reviews academic literature related to the consequences that outside directors and boards may face in the wake of earnings restatements and suggests directions for future research. We examine loss of board seats; recruitment of new directors; proxy recommendations and shareholder support; pre-emptive director departures; director wealth effects; director reputation, litigation, and sanction risks; international evidence; and legal proposals for reform. The overall picture that emerges from the literature is that directors’ primary risk in the wake of earnings restatements is loss of board seats, in part through adverse proxy advisor recommendations and reduced shareholder support. Directors typically face little risk of legal liability or SEC sanctions, and some directors pre-emptively leave a problem company’s board and reduce their loss of interlocked board seats. Some legal scholars have called for director liability to be increased so as to promote more vigilant board oversight. Companies often focus on increasing the independence of the board in the wake of a restatement in an effort to repair organizational reputation. While researchers have revealed a host of important findings to date, much more can be learned about the effects of restatements on outside directors and boards.

The purpose of this paper is to investigate the effect of corporate governance strength as measured by the Gompers governance index (gindex) and other related factors on corporate risk as measured by implied volatility of returns.

The research incorporates implied volatility as the measure of risk, as compared to earlier studies that have used historic volatility measures. Governance variables include the Gompers Index, as well as other measures to control for firm size, ownership and leverage.

The findings indicate that corporate risk is significantly inversely‐related with the gindex, which essentially gauges how extensively antitakeover provisions are adopted by a firm. Firm size is the other variable significant in both univariate and multivariate models. Financial leverage and the percentage of outsiders on the board are significantly related to firm risk when not controlling for other factors. Board percentage of voting power does not appear to affect firm riskiness statistically.

Future research needs to examine specifically why higher takeover defenses lead to lower implied volatility. This includes exploring whether the lower level of expected volatility is due to lower levels of takeover activity or whether firms with poor governance assume a suboptimal amount of risk.

The paper contributes to the literature by the use of implied volatility as the measure of risk. The results are robust and provide further support for the relationship between corporate governance and risk. While counter to initial expectations, these results suggest, at the very least, a firm with good governance may not necessarily have low implied volatility in its stock price.

This study aims to investigate the association between firm valuation and earnings quality in several European countries. Also, it examines if country-level governance and market development are important determinants of firm valuation.

Using a sample of 5,002 non-financial firms in 37 European countries over the years 2004 to 2019, the authors evaluate the research question using regression models.

The authors find a significant positive relationship between firm valuation and a multi-factor earnings quality measure based on four components (accruals, cash flows, operating efficiency and exclusions). The authors further show that stock market development is also a driver of firm value, while country-level governance is significant only in the case of a firm fixed effect model with time effects. The results are robust to alternative model specifications that control for endogeneity, sample heterogeneity and alternative proxies for firm valuation.

Policy makers and market participants could benefit from the findings, by exploiting the advantages of earnings quality in terms of high-ranking stocks whose earnings are backed by cash flows and other sustainable sources.

To the best of the authors’ knowledge, this study is the first to empirically test the relationship between earnings quality and firm value in the European setting during a period that incorporates the adoption of IFRS. This is quite interesting as it permits cross-border comparability in terms of financial reporting and provides deeper and more representative evidence.

This research is motivated by the development of dialogue and debate regarding company reporting in the form of sustainability reporting (SR) – which is separate from the annual report (AR) – or integrated reporting (IR). Research into SR and IR is still fascinating, and this study addresses the debate about them. This study aims to examine which of the two reports is more valuable for investors, and also examine whether IR has value relevance because the information in the IR could reinforce the importance of the accounting information.

As with previous studies, we adopted a valuation approach – the Ohlson model – to assess the value relevance of non-financial information (in the form of SR/IR) and financial information. As a preliminary study, we used non-financial information as a binary variable, i.e. a group of companies that issue sustainability reports and a group of companies that issue integrated reports. Therefore, they complement and interact with the financial statements’ information. This paper used panel data consisting of 931 firm-years of SR issuers and 922 firm-years of IR issuers in Europe and Africa in the period from 2005 to 2019.

The results showed that SR had a higher value relevance than IR. However, when the authors interact the corporate reporting form with the accounting information, IR had value relevance because the information contained in the IR could reinforce the importance of the accounting information.

This study will support regulators in various countries to monitor the reporting practices of companies in those countries. The results of this study provide evidence that sustainability reports get a higher response than integrated reports. However, when interacted with the accounting variables, information in the IR is considered to be more relevant than that found in the SR. Therefore, it is hoped that the results of this study will help the International Integrated Reporting Council (IIRC) in reviewing IR practices around the world so that the implementation of IR practices can be realized in accordance with the mission that the IIRC wants to achieve.

Research into the value relevance of SR and IR has been carried out by several previous researchers separately, but to the best of the author’s knowledge, there are no studies comparing the value relevance of the two.

The purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.

This research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.

The results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.

This test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.

By calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.

The Heinkel H.D.44 THE H.D.44 is a development of the newspaper transport Heinkel H.D.40. It is designed to provide a flying engine “test bed,” and its construction, with interchangeable engine fittings, allows the D.V.L. engine department to test out engines from 300/1,200 h.p. It is so arranged that superchargers can also be tested, these being watched by examiners during the flight. As a transport machine the load [which in the case of trial flights with BMW VI U‐engines is 1,070 kg. (2,354 lb.)] can be increased by 500 kg. (1,100 lb.). This heavily staggered, single‐strutted biplane is of mixed construction, fuselage, empennage and wing struts being of steel tubing and the wings of wood. The fuselage is built up on four longerons with welded steel struts and tubular cross‐bracing pieces. The engine cowling and forepart of the fuselage back to the pilot's seat are covered with light metal, the rear being fabric‐covered. The engine is carried on tubular steel bearers detachably fixed to the front framing with four bolts. Immediately behind the engine is a space, measuring 2·7 m. (8 ft. 10 in.) in length, by about 1·8 m. (5 ft. 10 in. in height). This space, which serves as a test or freight cabin, is accessible through a door directly over the lower wing. It is well lighted by several windows of Triplex glass, with a roofing of Cellon. It is covered on the sides and top with aluminium plates, the floor being fitted with fireproofed plywood. All the covering is fixed on the outside, the framework of steel tubing being left exposed to allow of easy attachment of testing gear. Two folding seats are built in on the rear wall. Behind this is the pilot's cockpit with two scats, side by side, and dual control. Below is a small luggage compartment. The instrument board is provided with an opening through which the pilot can see into, and communicate with, the test cabin.

Presents a study of eight organizations which employ a large number of professionals, examining how they have approached the introduction of total quality management (TQM). Among the main findings are that: TQM is not easily understood by professional people and it is often difficult to introduce due to the autonomous nature of professionals, some who view the concept as patronizing; for a TQM initiative to be successful it must be introduced and developed using a committed management who fully understand the concept and can apply it to the complex work patterns of professional staff; and identifies the basic elements required to develop a strategy for introducing TQM in professional services as customers, culture and structure. Points out that a TQM framework model which is specific to professional services is needed to help managers understand the various aspects of TQM, how they fit together, and the complexities of the concept.

Laminar fully developed periodic heat transfer and fluid flow characteristics in corrugated two‐dimensional ducts with constant cross‐sectional area are numerically investigated. The governing equations are solved numerically by a finite‐volume method for elliptic flows in complex geometries using colocated variables and Cartesian velocity components. The results were obtained for a uniform wall temperature for two inclination angles and three duct aspect ratios (H/L) and for Reynolds number ranging from 30 to 1200. The plot of the velocity vectors show a complex flow pattern. Unexpected high enhancement of the average Nusselt number was observed at low Reynolds number for H/L = ½ and ⅓. A moderate increase in Nusselt number was obtained as Reynolds number was increased further.