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1 – 10 of 71Petrina Tan, Fong Yee Foo, Stephen C. Teoh and Hon Tym Wong
The purpose of this paper is to determine the safety of substituting the first day post-operative review after routine cataract surgery (phacoemulsification) with a telephone…
Abstract
Purpose
The purpose of this paper is to determine the safety of substituting the first day post-operative review after routine cataract surgery (phacoemulsification) with a telephone survey.
Design/methodology/approach
Prospective non-randomised cohort study. A standardised questionnaire of five common ocular symptoms (general condition, vision, eye pain, headache, nausea or vomiting) was administered by a trained nurse on the first post-operative day. The patients were reviewed in clinic two to 14 days later. Patient charts were retrospectively reviewed for complications (endophthalmitis, raised intra-ocular pressure, wound leaks and uveitis) requiring deviation from standard treatment.
Findings
Over 13 months, 256 eyes of 238 patients underwent uncomplicated phacoemulsification by four consultant surgeons. Only one patient reported poor general condition, blurred vision and eye pain. She was subsequently found to have corneal oedema and raised intra-ocular pressure when recalled for an earlier review. Best corrected visual acuity better than 20/40 was achieved in 80.5 per cent of patients. There were no other post-operative complications noted from medical records review.
Research limitations/implications
Non-randomised nature, skewed surgical expertise, lack of a control group and patient experience data. In all, 22 patients (9.2 per cent) were also uncontactable for the telephone interview.
Practical implications
A nurse-administered telephone survey seemed to be a safe and effective alternative to first day post-operative review after routine phacoemulsification. The survey also enabled the detection of serious post-operative complications. The first day post-operative hospital visit may be safely substituted in a selected patient population with greater patient convenience achieved and liberation of clinic resources.
Originality/value
This is the first study which utilises a standardised questionnaire as a form of post-operative review in an Asian population.
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Seung‐Woog (Austin) Kwag and Alan A. Stephens
The purpose of this paper is to investigate whether earnings management that surpasses a threshold is associated with market mispricing.
Abstract
Purpose
The purpose of this paper is to investigate whether earnings management that surpasses a threshold is associated with market mispricing.
Design/methodology/approach
The paper examines the level of discretionary current accruals (DCA) as a proxy for earnings quality. Operationally the threshold of earnings management is defined as the mean DCA, and it is assumed that highly managed firms (both income‐decreasing and income‐increasing) produce low‐quality earnings information. It is postulated that such management may lead to mispricing errors by investors who make incorrect adjustments for lower earnings quality.
Findings
The evidence suggests that investors possess idiosyncratic perceptions toward earnings management. Investors of income‐decreasing firms tend to under‐adjust for analyst optimism, while investors of income‐increasing firms are inclined to over‐adjust for analyst optimism. In addition, investors of both types of highly managed firms appear to under‐adjust for earnings management. These investor characteristics result in a post‐earnings announcement upward drift of cumulative abnormal returns (CARs) for income‐decreasing firms and a downward drift for income‐increasing firms.
Practical implications
The findings strongly indicate that there is a significant mispricing at the earnings announcement date for the income‐decreasing (P1) and income‐increasing (P5) portfolios and the mispricing persists in the short run. Thus, it may be possible for investors to exploit the mispricing by holding a long position in P1 and a short position in P5.
Originality/value
Prior studies concentrate on extreme cases of earnings management that are subject to securities and exchange commission (SEC) enforcement. In contrast to these studies, this paper focuses on the market reaction to earnings management, which may or may not lead to SEC enforcement actions.
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Small businesses are dominant in most economies and their owners likely experience high levels of distress. However, we have not fully explored how these common businesses…
Abstract
Small businesses are dominant in most economies and their owners likely experience high levels of distress. However, we have not fully explored how these common businesses meaningfully differ with respect to the stress process. Understanding the meaningful variations or subgroups (i.e., heterogeneity) in the small business population will advance occupational health psychology, both in research and practice (e.g., Schonfeld, 2017; Stephan, 2018). To systematize these efforts, the author identifies five commonly appearing “heterogeneity factors” from the literature as modifiers of stressors or the stress process among small business owners. These five heterogeneity factors include: owner centrality, individual differences, gender differences, business/ownership type, and time. After synthesizing the research corresponding to each of these five factors, the author offers specific suggestions for identifying and incorporating relevant heterogeneity factors in future investigations of small business owners’ stress. The author closes by discussing implications for advancing occupational health theories.
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Kyung Soon Kim and Yun W. Park
Existing studies show that firms may have an incentive to use share repurchases opportunistically, thereby taking advantage of market participants’ confirmation bias that share…
Abstract
Purpose
Existing studies show that firms may have an incentive to use share repurchases opportunistically, thereby taking advantage of market participants’ confirmation bias that share repurchase is a signal of undervaluation. This study aims to investigate whether signaling costs and accounting transparency can serve as tools to identify opportunistic share repurchases.
Design/methodology/approach
The authors measure signaling costs by using two share repurchase methods (direct and indirect share repurchase) with different share repurchase costs, and measure accounting transparency using the history of earnings timeliness. The authors further measure long-term performance following share repurchases using operating performance and stock returns. Lastly, the authors compare the long-term performances between the groups defined by share repurchase method and earnings timeliness level.
Findings
The authors find that indirect share repurchase firms with a history of poor earnings timeliness experience unfavorable long-term performance, while other share repurchase firms do not. This finding reinforces the view that some share repurchases may be driven by managerial opportunism. In particular, when firms with a history of poor earnings-reporting behavior choose a low-cost repurchase method, their share repurchases may be motivated by managerial opportunism.
Originality/value
The findings suggest that past earnings timeliness and the signaling costs of a repurchase together are useful predictors of false signaling. Moreover, they suggest that investors can – at least in part – predict opportunistic share repurchases by using signaling costs and accounting transparency.
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Andrew C. Stuart, Stephen H. Fuller, Nicole M. Heron and Tracey J. Riley
This paper aims to review and synthesize the corporate social responsibility (CSR) disclosure literature in order to (1) develop a comprehensive definition of disclosure quality;…
Abstract
Purpose
This paper aims to review and synthesize the corporate social responsibility (CSR) disclosure literature in order to (1) develop a comprehensive definition of disclosure quality; (2) review the evolution of disclosure quality proxies used by accounting researchers; (3) describe the antecedents to disclosure quality; (4) describe the outcomes of disclosure quality; and (5) identify gaps in the current literature and offer suggestions for future research.
Design/methodology/approach
This study conducted a systematic review capturing articles examining CSR disclosure quality. The researchers first searched EBSCO, identifying all relevant articles by searching for “corporate social responsibility,” “CSR,” “ESG” and “sustainability reporting” anywhere in the article. Then, the results were filtered to focus on 23 of the most prominent accounting journals. The search resulted in 592 articles which were individually reviewed for relevance to the authors’ review. This study includes all articles that examine disclosure and provide insight into elements that influence disclosure quality or provide evidence of the effects of disclosure quality on user decision-making.
Findings
It is found that a comprehensive definition of CSR disclosure quality has yet to be developed and that proxies for CSR disclosure quality have evolved over time. This study synthesizes the literature on the antecedents of CSR disclosure quality, and how CSR disclosure quality affects users' decision-making and related outcomes. Overall, the review of this study suggests that assurance and a number of corporate features have important effects on disclosure quality. Also, high-quality disclosures are positively associated with many benefits to market participants.
Originality/value
This study complements Huang and Watson's (2015) CSR literature review by comprehensively reviewing and synthesizing the CSR disclosure quality literature that was only emerging when their review was published. Importantly, this study contributes to the CSR disclosure literature by developing a comprehensive definition of CSR disclosure quality that is grounded in the accounting literature and aligned with current frameworks.
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This research paper aims to review the development of corporate real estate asset management (CREAM) in New Zealand since 1992.
Abstract
Purpose
This research paper aims to review the development of corporate real estate asset management (CREAM) in New Zealand since 1992.
Design/methodology/approach
The first research into CREAM in New Zealand was carried out by Wei Kium Teoh. Lincoln University staff and post graduate students have subsequently undertaken several CREAM research projects involving surveys of organizations in New Zealand. These were spread over a 14 year time period and led to the opportunity to carry out a time series analysis of the development of CREAM practice in New Zealand.
Findings
Substantial improvement in some aspects of CREAM practice was observed, for example, in the qualifications of those responsible for CREAM and the development of strategic plans for those assets. However, other aspects of CREAM have remained remarkably stable or plateaued, for example the percentage of organizations with a separate real estate unit, reporting levels to management and the allocation of real estate costs.
Research limitations/implications
Both academic and industry attention in New Zealand can now be focused on those areas of CREAM development that appear to be lagging or otherwise warranting further research due to inconsistent results across the different studies.
Originality/value
CREAM research in a New Zealand context is limited. This paper collates and interprets much of that research with the added benefit of hindsight and trend analysis. The similarities in the findings with research carried out in other countries means international developments in CREAM are likely to be also applicable in a New Zealand context.
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The purpose of this study is to examine the association between revenue-based earnings management in the periods immediately before and after firms’ initial public offerings…
Abstract
Purpose
The purpose of this study is to examine the association between revenue-based earnings management in the periods immediately before and after firms’ initial public offerings (IPOs) and regulatory scrutiny by the United States Securities and Exchange Commission (SEC) during review of IPO firms’ registration statements.
Design/methodology/approach
This paper uses conditional discretionary revenues (Stubben, 2010) as its measure of earnings management, and revenue recognition comments delivered by the SEC as its measure of regulatory scrutiny. The authors use ordinary least squares regression (OLS) models, as well as a supplemental count model, to assess the association between conditional discretionary revenues and revenue recognition comments delivered by the SEC.
Findings
This study finds evidence of a positive association between earnings management measures in the pre-IPO period and the number of revenue recognition comments received by those firms during the SEC’s review. Furthermore, this study provides evidence that greater numbers of comments are associated with declining earnings management measures in the post-IPO period. However, the evidence suggests that these associations apply only to income-decreasing earnings management.
Originality/value
This paper extends the IPO earnings management literature by using conditional discretionary revenues as the measure of earnings management, and contributes to a nascent research stream in the accounting literature by investigating the SEC’s comment letter process and its association with, and impact upon, earnings management in the IPO process.
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Hui Di and Dalia Marciukaityte
The purpose of this paper is to examine whether firms engage in earnings decreasing management before share repurchases to mislead investors or to smooth earnings and improve…
Abstract
Purpose
The purpose of this paper is to examine whether firms engage in earnings decreasing management before share repurchases to mislead investors or to smooth earnings and improve earnings informativeness.
Design/methodology/approach
The authors examine discretionary accruals and cash flows around open-market share repurchases. The primary discretionary accruals measure is industry- and performance-adjusted discretionary current accruals estimated from cash-flow data.
Findings
Results show that, firms experience temporary increases in operating cash flows and use negative discretionary accruals to smooth earnings before share repurchases. Firms with the highest pre-repurchase cash flows use the lowest pre-repurchase discretionary accruals. Moreover, pre-repurchase discretionary accruals reflect expectations about future operating cash flows. Firms with the strongest deterioration in operating cash flows after repurchases use the lowest pre-repurchase discretionary accruals. These findings suggest that repurchasing firms use earnings management to increase smoothness and predictability of reported earnings rather than to mislead investors.
Originality/value
This paper provides an alternative explanation to the finding of negative discretionary accruals before share repurchases. It adds to the literature on repurchases and earnings smoothing by showing that firms use earnings management around share repurchases to smooth earnings.
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