Applied Accounting - Practitioner eJournal最新文献

{"title":"What’s in a Name? A Cautionary Tale of Profitability Anomalies and Limits to Arbitrage","authors":"Jared DeLisle, H. Yuksel, Gulnara R. Zaynutdinova, Ph.D.","doi":"10.2139/ssrn.3516263","DOIUrl":"https://doi.org/10.2139/ssrn.3516263","url":null,"abstract":"Recent literature investigating profitability anomalies defines profitability in various ways (i.e. gross, operating, and cash-based). We show that limits to arbitrage are associated with returns of gross and cash-based operating profitability anomalies, suggesting mispricing. In contrast, returns from the operating profitability strategy have no relation with barriers to arbitrage and exhibit no evidence of mispricing. Additionally, we show that the differential effects of limited arbitrage-related mispricing of gross and cash-based operating profitability anomalies are attributable to their respective correlations with SG&A expense and accruals anomalies. Interestingly, we find SG&A return predictability, like that of accruals, is related to limits to arbitrage. These findings suggest that investors and researchers should proceed with caution when searching for return predictability by redefining profitability measures.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123300305","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Thirty Years After Jensen’s Prediction – Is Private Equity a Superior Form of Ownership?","authors":"Ludovic Phalippou, Peter Morris","doi":"10.2139/ssrn.3495465","DOIUrl":"https://doi.org/10.2139/ssrn.3495465","url":null,"abstract":"Almost exactly 30 years ago, a famous article by Michael Jensen in the Harvard Business Review predicted that private equity would “eclipse” the public corporation because it was a superior form of corporate ownership. Trends since 1989 seem to bear out Jensen’s prediction. Much time and energy has gone into studying whether private equity’s model does see companies being run better for investors and society. Progress has been made and most studies find positive results. Yet, samples are usually relatively small; and, PE transactions create many layers of newly formed companies, which makes it hard to find financial statements that are both consolidated and granular enough. After thirty years of research, we argue that we are much further to a conclusive answer than we might think.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126046527","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Tax Relief Awareness: Its Financial Consequences to Non-Filers in Ghana","authors":"S. Arhin","doi":"10.2139/ssrn.3455541","DOIUrl":"https://doi.org/10.2139/ssrn.3455541","url":null,"abstract":"Every government urges its citizenry to pay tax, but its payment places some sort of burden on the taxpayer. In order to lessen the burden of the taxpayer, some reliefs are granted by the government. The study sought to ascertain how tax reliefs influence the payment of tax. The needed data was obtained through the use of questionnaires and interviews. A total of 150 questionnaires were administered to the staff workers in Kumasi Metropolitan Assembly, and some of the student workers in Christ Apostolic University College. Out of this, one hundred and forty-two responded indicating response rate of 95%. Hypotheses were set to test each of the research objectives. All the hypotheses were supported even though the main challenge faced by tax filers is the long delay in the payment of returns. Based on the findings, it is recommended that computerized tax filing system should be implemented so that every Ghanaian can file the returns online to reduce the delays caused by paper filing.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127564739","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Analyst Contrarianism","authors":"Zahn Bozanic, Jing Chen, Michael J. Jung","doi":"10.2308/jfir-52534","DOIUrl":"https://doi.org/10.2308/jfir-52534","url":null,"abstract":"We examine a specific form of what we term analyst contrarianism. We define contrarianism as cases where an analyst expresses a summary opinion contrary to the direction of a given earnings surprise or revision. Distinct from analyst optimism or boldness, we document that analysts interpret negative (positive) earnings news in a positive (negative) light in approximately 11–15 percent of reports. We conjecture that some analysts look for opportunities to make a contrarian stock call for their clients in order to gain visibility, recognition, and career advancement. Our empirical evidence, which is supported by analyst interviews and content analysis of analyst reports, shows that: (1) analysts at non-top-tier brokerage houses are more likely to make a contrarian call, (2) analyst reports that contain contrarian opinions are associated with greater market reactions, and (3) contrarian analysts are more likely to exhibit career advancement. JEL Classifications: G41; M41.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117336633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Commentary on the SEC’s Proposed Exemption to Internal Control Audits under SOX 404(b)","authors":"Mary E. Barth, W. Landsman, Joseph H. Schroeder, Daniel J. Taylor","doi":"10.2139/ssrn.3535931","DOIUrl":"https://doi.org/10.2139/ssrn.3535931","url":null,"abstract":"We comment on the Securities and Exchange Commission’s (the “Commission”) proposed Amendments to the Accelerated Filer and Large Accelerated Filer Definitions. We provide comments and analysis relating primarily to the Request for Comments in Sections II.E and III.D of the proposed Amendments (“Proposal”). Our comments relate to the provisions of the Proposal that would eliminate internal control audits required under Section 404(b) of the Sarbanes-Oxley Act for companies with annual revenue less than $100 million. Part I provides comment on the central premise of the Proposal. Part II provides comments on various aspects of the Commission’s economic analysis. Although it might be socially desirable to encourage investment, and research and development, we believe there are ways to do so without sacrificing oversight.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"98 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116182838","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Ownership Disclosure, Ownership Structure and Stock Liquidity","authors":"Sarah Kröchert","doi":"10.2139/ssrn.3020023","DOIUrl":"https://doi.org/10.2139/ssrn.3020023","url":null,"abstract":"I examine the impact of stricter ownership disclosure rules on ownership structure and stock liquidity. The analysis relies on privately reported holdings and a stock market with a disclosure regime in only one segment. Consistent with prior research, I show that mutual funds decrease their holdings when the initial disclosure threshold is lowered. Extending prior research, I further show that non-financial corporations increase their holdings and thus replace mutual funds. This shift in ownership structure weakens the positive relation between disclosure and liquidity, suggesting that mandatory ownership disclosure can be costly not only for disclosing but also for non-disclosing investors.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131650724","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Cost of Deferred Revenue","authors":"A. A. Torosyan, Shahab Razani","doi":"10.2139/ssrn.3435401","DOIUrl":"https://doi.org/10.2139/ssrn.3435401","url":null,"abstract":"The law known as the Tax Cuts and Jobs Act amended Sec. 451 to allow accrual-basis taxpayers to defer recognizing income until it is taken into account in their applicable financial statements. This rule can eliminate some book-tax timing differences regarding unearned revenue, also known as deferred revenue.<br><br>In 1964, the Eighth Circuit in James M. Pierce Corp. held that a publisher selling its assets to another company in a liquidation was not only required to recognize previously deferred income relating to the seller's reserve for certain subscription liabilities; it was also required to pick up the liability associated with the prepayments as an amount realized on the sale. However, the court also allowed the seller a deduction for having taken a reduction in the transaction sale price by including it in working capital, which corresponded to the assumed liabilities, which it said represented a deemed payment to the buyer.<br><br>Although liquidating distributions like the one in Pierce Corp. were made taxable under Sec. 336 in 1986, the current result to the seller is to recognize ordinary income for the extinguishment of the unearned revenue obligation, an ordinary deduction for the deemed payment to the buyer for the assumption of the obligation to provide future services, and to recognize as additional capital gain any similar service liability assumed by the buyer.<br><br>The deemed payment made to a buyer for assuming an unearned revenue account is gross income to the buyer for tax purposes, which may be eligible for deferral. The buyer may also be required to capitalize the costs in servicing the contracts related to the unearned revenue, presumably as they are incurred because they are contingent liabilities assumed in the transaction.<br><br>Buyers and sellers in M&amp;A transactions should make sure their purchase agreement addresses not only the economics associated with advance payments but also the tax recognition of deferred revenue and the estimated cost of future obligations assumed by the buyer. Both buyers and sellers will likely encounter book-tax differences, which must be analyzed and recorded as well.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115245692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Bank Earnings Management Using Commission and Fee Income: The Role of Investor Protection and Economic Fluctuation","authors":"Peterson K. Ozili, E. Outa","doi":"10.1108/JAAR-02-2018-0030","DOIUrl":"https://doi.org/10.1108/JAAR-02-2018-0030","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to investigate whether banks use commission and fee (CF) income to manage reported earnings as an income-increasing or income smoothing strategy.\u0000\u0000\u0000Design/methodology/approach\u0000The authors employ the regression methodology to detect real earnings management.\u0000\u0000\u0000Findings\u0000The authors find that banks use CF income for income smoothing purposes and this behaviour persists during recessionary periods and in environments with stronger investor protection. The implication of the findings is that bank non-interest income which achieves diversification gains to banks is also used to manipulate reported earnings.\u0000\u0000\u0000Research limitations/implications\u0000The findings show that real earnings management is prevalent among banks in Africa. Further research into earnings management should examine real earnings management among non-financial firms in developing regions.\u0000\u0000\u0000Practical implications\u0000From an accounting standard setting perspective, the evidence suggests the need for national/international standard setters to adopt strict revenue recognition rules that ensure that banks or firms report the actual fees they make, and to discourage banks from delaying (or deferring) the collection of fee income to manage or smooth reported earnings opportunistically.\u0000\u0000\u0000Originality/value\u0000This study contributes to the positive accounting theory (PAT) literature which examines the accounting and non-accounting decisions that influence managers’ choice of accounting methods in financial reporting. Extending the PAT, the authors show that certain conditions can incentivize managers to engage in earning management such as during recessions and weak institutional quality or weak investor protection.\u0000","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"110 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133811395","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Goodwill Valuation","authors":"Roberto Moro Visconti","doi":"10.2139/ssrn.3533871","DOIUrl":"https://doi.org/10.2139/ssrn.3533871","url":null,"abstract":"The economic valuation of goodwill is based on an interdisciplinary approach that synergistically considers the legal, accounting, fiscal, and strategic aspects. The controversial concept of goodwill (goodwill if positive, badwill if negative) has always divided lawyers, businesspeople, and economists and is applied in extraordinary transactions, including deficits and surcharges, and in company valuations. The estimate of the damage due to loss of goodwill, linked to the diversion of customers, infringement of exclusivity, counterfeiting or other classic cases, which can hinder the bankability of the damaged company, is also very frequent and never trivial. The customers’ portfolio is one of the most critical components of goodwill.<br>","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124835440","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"When it Pays to Pay Capital Gains","authors":"Victor Haghani, Larry Hilibrand, James White","doi":"10.2139/SSRN.3351245","DOIUrl":"https://doi.org/10.2139/SSRN.3351245","url":null,"abstract":"An unconventional approach which for some US-taxable investors can produce a surprisingly large improvement on standard tax-loss harvesting.","PeriodicalId":198128,"journal":{"name":"Applied Accounting - Practitioner eJournal","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127175039","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}