Chicago Booth ARC: International Accounting (Topic)最新文献

{"title":"The Future of Audit After the Wirecard Accounting Scandal – Proposal for a Change in the Payment Model","authors":"D. Beerbaum","doi":"10.2139/ssrn.3836806","DOIUrl":"https://doi.org/10.2139/ssrn.3836806","url":null,"abstract":"Auditors take over a crucial role in corporate governance and capital markets. A main contribution of auditors is to enhance firms ‘cost of capital by fostering trust among public and private investors. Moreover, auditors have to discipline corporate insiders to avoid misbehavior and prevent financial fraud. In order to fulfill these obligations, however, in addition to adequate knowledge, skills and expertise, auditors must act in an independent manner. Unfortunately, auditors are still explicitly subject to a major conflict of interest, resulting from the fact that they act as an agent and are hired and paid by the principal audited company. Despite many accounting scandals Enron, Parmalat, Satyam in the past and most recently Wirecard this very often observed conflict within academia, was not subject to any reform or rehearsal. Policymakers and scholars around the world have tried to remediate the auditor independence puzzle through a variety of mechanisms such as prohibitions and rotation of auditors. This article looks at recent accounting scandal of Germany’s based Wirecard with an attempt to rigorously define an enhancement in the payment model between principal and agent contractual relation. Addressing this conflict and providing remediation provides a large value enhancement potential for the capital market. Even if auditors assumed to act independently in the best of their knowledge and their professional attitude, investors as knowing this conflict of interest will think otherwise and incorporate into the company’s risk assessment for corporate valuation. Drawing from corporate governance, law and economics, and accounting literature, this article proposes a new payment model to solve the auditor’s principal-agent conflict. Regulators should set-up a funds, which pays the auditors. All companies would need to pay a contribution to a funds. This payment model is known and working since decades in the banking industry. Under this model the type of services potentially provided to the audit client are not restricted.","PeriodicalId":357171,"journal":{"name":"Chicago Booth ARC: International Accounting (Topic)","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127268626","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 Value of Managerial Discretion in Africa: Evidence from Acquired Intangible Assets Under IFRS 3","authors":"Abongeh A. Tunyi, Dimu Ehalaiye, Ernest Gyapong, C. Ntim","doi":"10.2139/ssrn.3512587","DOIUrl":"https://doi.org/10.2139/ssrn.3512587","url":null,"abstract":"The paper examines the value of managerial discretion in financial reporting by exploring the value relevance of intangible assets acquired in business combinations (AIA) before and after the 2008 International Financial Reporting Standard (IFRS) 3 amendment. The 2008 IFRS 3 amendment gave managers the discretion to recognize previously unrecognized intangibles in the target firm, hence, we posit that if managerial discretion improves the quality of financial reporting, we should observe an increase in the value relevance of AIA after the amendment. Our empirical analysis is based on a dataset of 603 mergers announced between 2004 to 2016, across 7 African countries. Consistent with our main hypothesis, we find that the value relevance of AIA, predominantly acquired goodwill (AGW), increased after the amendment, suggesting that managerial discretion improves the quality of financial information. Importantly, we highlight a caveat to this argument by showing that the value of discretion is moderated by the underlying institutional quality, with the value relevance of AIA being greater in high-quality institutional contexts. Our findings are robust to alternative measures of AIA, alternative models for testing value relevance and various controls for endogeneity. Overall, our findings have important implications for accounting standard-setters, governments, investors and practitioners.","PeriodicalId":357171,"journal":{"name":"Chicago Booth ARC: International Accounting (Topic)","volume":"32 6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130293346","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 Revenue and Economic Development in Nigeria: A Disaggregated Analysis","authors":"N. Amahalu","doi":"10.6007/ijarafms/v8-i2/4248","DOIUrl":"https://doi.org/10.6007/ijarafms/v8-i2/4248","url":null,"abstract":"The objective of this study is to ascertain the relationship between tax revenue and economic development in Nigeria during the period 1994 -2016. Data were obtained from the Central Bank of Nigeria, Office of the Federal Inland Revenue Service and Annual Abstract of statistics of the National Bureau of Statistics. This study was based on time series data. The Augmented Dickey Fuller test, Multple linear regression, Multicollinearity test, Granger Causality test, Johansen cointegration test and Error correction model were employed in the analysis of the data. The findings of this study showed that tax revenue has a statistically significant relationship with infant mortality, labour force and gross fixed capital formation in Nigeria at 5% level of significance respectively. On the basis of the findings, it was recommended among others that since tax revenue has been proven to contribute to economic development in Nigeria, Government needs to increase its allocation to the priority sectors of the economy such as agriculture and industry in order improve on the welfare of the citizenry.","PeriodicalId":357171,"journal":{"name":"Chicago Booth ARC: International Accounting (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124333733","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 Implied Cost of Equity Capital in the Jordanian Industrial and Service Companies","authors":"Ayman E. Haddad, Naser Abughazaleh, Osama M. Al-Hares","doi":"10.1504/IJAF.2014.058108","DOIUrl":"https://doi.org/10.1504/IJAF.2014.058108","url":null,"abstract":"This study estimates the implied cost of equity capital of the Jordanian companies listed at the Amman Stock Exchange using the residual income valuation model suggested by Gebhardt, Lee, and Swaminathan (GLS) (2001). The results show that the implied cost of equity capital computed from the GLS approach produces a mean of ex-ante cost of equity capital of 9.6% for the Jordanian companies listed at the ASE. We also examine whether the Jordanian firms' cost of equity capital, based on the residual income model, is a more reliable measure of cost of equity than the realised stock returns, by investigating the association between the cost of equity capital (or realised returns) and firm-specific risk proxies. We find that the implied cost of equity capital is associated significantly with all risk proxies in the predicted directions, while the realised stock returns show a significant association only with the size of the firms and market beta. We also find that the adjusted R² of the regression of the implied cost of equity capital on the risk proxies is higher than that of the realised stock returns. We conclude that the implied cost of equity capital derived from the residual income valuation model is a more reliable measure for the ex-ante cost of equity capital than that of the realised stock returns in terms of the association with firm-specific risk proxies.","PeriodicalId":357171,"journal":{"name":"Chicago Booth ARC: International Accounting (Topic)","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126178239","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":"Contesting the Indigenous Development of 'Chinese Double-Entry Bookkeeping' and its Significance in China's Economic Institutions and Business Organization Before c.1850","authors":"K. Hoskin, R. Macve","doi":"10.2139/ssrn.2562276","DOIUrl":"https://doi.org/10.2139/ssrn.2562276","url":null,"abstract":"The recent rapid growth of China’s economy has reopened historical debate about the extent to which it prospered during the Ming and Qīng dynasties (1368-1911) through developing a significant market orientation on the base of its underlying agricultural bureaucratic feudalism. As a contribution to this debate, we question here the extent to which there is justification for claims concerning the development of a concomitant and indigenous Chinese form of double-entry bookkeeping (CDEB)—seen as having developed among bankers, merchants and proto-industrialists—and for its significance within such a market economy. Given that discussion on post-medieval European accounting history indicates that there is not necessarily a direct and positive connection between the development of Italian double-entry bookkeeping (DEB) and associated practices of entity accounting, and the development from the sixteenth century of Western capitalism, we argue that caution should be exercised in drawing any analogous connection in the Chinese context. But equally we wish to raise a more foundational issue concerning the similarities and differences between the knowledge worlds within which DEB and CDEB emerged, as a means to better reading the specific historical practices and discourses of each. We therefore review the invention and dissemination of western DEB as a technology emerging within a textually and semiotically changing knowledge world in the Latin West from the twelfth century AD, and consider how the evidence for the development and use of CDEB may then be reviewed in the context of the Chinese knowledge world. As part of such a reading, we focus on tracing possible intercultural linkages between the Western and Chinese developments across the fifteenth to nineteenth centuries. In this way we seek to problematise conventional formulations of the respective significance of both DEB and CDEB, while acknowledging that, at the current moment of such transcultural historical study, the mechanisms of translation and diffusion of practices and discourses generally remain obscure and inconclusive until the era of the transformation of China’s modern economy in recent decades. There remains a clear need for further research utilising primary archival sources to test the arguments developed in the existing research literatures, and here.","PeriodicalId":357171,"journal":{"name":"Chicago Booth ARC: International Accounting (Topic)","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125243256","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}