Pub Date : 2020-06-28DOI: 10.17265/1548-6583/2020.06.001
D. Balios, Apostolos Sdrolias, I. Thanos
The purpose of this paper is to examine whether and to what extend Greek state-owned enterprises engage in earnings management techniques during 2012-2016. Most prior studies on earnings management have used data from large economies with relative stable macroeconomic contexts (e.g., USA). Our knowledge about earnings management in smaller economies is rather limited. To fill this void, we conducted our study in Greece and focused on the abovementioned period, which is very interesting given that Greece experienced a substantial political and macroeconomic instability (e.g., four elections, one referendum, capital controls, and two memorandums). Two different models (i.e., The Earnings Distribution Model and the Modified Jones Model) are used to provide answers to the research questions. The sample is composed of 50 state-owned enterprises. The results show that Greek state-owned enterprises did not adopt any earnings management techniques during the examined period. These results are rather robust given that they come from two different models. According to the literature, macroeconomic and political instability provide incentives to managers to use earnings management techniques. Interestingly though, our results suggest that this is not the case for a smaller economy. The findings of this study will allow investors, auditors, and users of the financial statements to make better decisions when studying companies that are experiencing those difficulties. The adoption of two different methods and the similar results is an indication of more robust and valid findings.
{"title":"Earnings Management in State-Owned Enterprises in a Period of Macroeconomic Instability","authors":"D. Balios, Apostolos Sdrolias, I. Thanos","doi":"10.17265/1548-6583/2020.06.001","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.06.001","url":null,"abstract":"The purpose of this paper is to examine whether and to what extend Greek state-owned enterprises engage in earnings management techniques during 2012-2016. Most prior studies on earnings management have used data from large economies with relative stable macroeconomic contexts (e.g., USA). Our knowledge about earnings management in smaller economies is rather limited. To fill this void, we conducted our study in Greece and focused on the abovementioned period, which is very interesting given that Greece experienced a substantial political and macroeconomic instability (e.g., four elections, one referendum, capital controls, and two memorandums). Two different models (i.e., The Earnings Distribution Model and the Modified Jones Model) are used to provide answers to the research questions. The sample is composed of 50 state-owned enterprises. The results show that Greek state-owned enterprises did not adopt any earnings management techniques during the examined period. These results are rather robust given that they come from two different models. According to the literature, macroeconomic and political instability provide incentives to managers to use earnings management techniques. Interestingly though, our results suggest that this is not the case for a smaller economy. The findings of this study will allow investors, auditors, and users of the financial statements to make better decisions when studying companies that are experiencing those difficulties. The adoption of two different methods and the similar results is an indication of more robust and valid findings.","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47069424","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}
Pub Date : 2020-06-28DOI: 10.17265/1548-6583/2020.06.004
Ayneshet Agegnew Alemu
The main issue faced by all tax authorities is that it has never been easy to persuade all taxpayers to comply with the regulations of a tax system. Business sector is one of the fastest growing sectors of the economy in Ethiopia. The study specifically sought the effect of tax audit, fines and penalties, and tax education and knowledge on tax compliance in Hawassa City, south nations, nationalities and peoples’ regional state. Population under this research comprises Hawassa City audit officers who are 50 audit officers. Since the number of staff is not large, the study used census approach. Data were collected using structured questionnaire, both primary and secondary data were used. Descriptive statistical tools and correlation and multiple regressions analysis were used in analyzing the data collected. The study findings showed that probability of tax audit, and tax knowledge and education have positive effect on level of tax compliance. Similarly, fines/penalties have positive effect on level of tax compliances. The study provides some preliminary evidence that probability of tax audit, imposing fines/penalties and provision of tax knowledge and education will improve tax compliance. There should be stiff enforcement of fines and penalties to deter tax evasion. Additionally, tax authorities should simplify processes involved in filling of returns and payment of taxes.
{"title":"Impact of Tax Audit on Tax Compliance with Reference to Category “A” Taxpayers: A Case Study in Hawassa City Administration, South Nations, Nationalities and Peoples’ Regional State of Ethiopia","authors":"Ayneshet Agegnew Alemu","doi":"10.17265/1548-6583/2020.06.004","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.06.004","url":null,"abstract":"The main issue faced by all tax authorities is that it has never been easy to persuade all taxpayers to comply with the regulations of a tax system. Business sector is one of the fastest growing sectors of the economy in Ethiopia. The study specifically sought the effect of tax audit, fines and penalties, and tax education and knowledge on tax compliance in Hawassa City, south nations, nationalities and peoples’ regional state. Population under this research comprises Hawassa City audit officers who are 50 audit officers. Since the number of staff is not large, the study used census approach. Data were collected using structured questionnaire, both primary and secondary data were used. Descriptive statistical tools and correlation and multiple regressions analysis were used in analyzing the data collected. The study findings showed that probability of tax audit, and tax knowledge and education have positive effect on level of tax compliance. Similarly, fines/penalties have positive effect on level of tax compliances. The study provides some preliminary evidence that probability of tax audit, imposing fines/penalties and provision of tax knowledge and education will improve tax compliance. There should be stiff enforcement of fines and penalties to deter tax evasion. Additionally, tax authorities should simplify processes involved in filling of returns and payment of taxes.","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44822119","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}
Pub Date : 2020-06-28DOI: 10.17265/1548-6583/2020.06.003
Joseph Magloire Nyobe
This paper investigates on the relative costs of operations of microfinance institutions (MFIs) in Cameroon with regard to their ownership forms. We extracted data from MIX Market which included 31 MFIs over the period 2001-2017. On processing data though a multinomial logistic regression, we found out that affiliated Credit Unions were the most cost-efficient organisational form, but the portfolio efficiency was nearly the same all across ownership patterns. Affiliated Credit Unions underwent the lowest operating expenses whereas Microbanks significantly reported the highest financial expenses. Also, we did not find any significant differences between personnel productivity across ownership forms.
{"title":"Ownership Forms and Costs of Operations of Microfinance Institutions in Cameroon","authors":"Joseph Magloire Nyobe","doi":"10.17265/1548-6583/2020.06.003","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.06.003","url":null,"abstract":"This paper investigates on the relative costs of operations of microfinance institutions (MFIs) in Cameroon with regard to their ownership forms. We extracted data from MIX Market which included 31 MFIs over the period 2001-2017. On processing data though a multinomial logistic regression, we found out that affiliated Credit Unions were the most cost-efficient organisational form, but the portfolio efficiency was nearly the same all across ownership patterns. Affiliated Credit Unions underwent the lowest operating expenses whereas Microbanks significantly reported the highest financial expenses. Also, we did not find any significant differences between personnel productivity across ownership forms.","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44247791","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}
Pub Date : 2020-06-28DOI: 10.17265/1548-6583/2020.06.002
Z. Bono
The objective of the study is to explore determinants of bank liquidity and its impact on bank profitability in Ethiopia by using two-stage least square (2SLS) balanced panel estimation method from 2014-2019. The two dependent variables to be considered under 2SLS balanced panel estimation methods were liquidity risk and bank profitability. The first equation i.e. liquidity risk specified as a function of major explanatory variable i.e. bank profitability, real GDP growth, net loan growth, and foreign exchange availability. Whereas, the second equation i.e. bank profitability specified as a function of bank liquidity, non-interest income, non-interest expense and expectation. The empirical result of the first equation of the study reveals that bank profitability, foreign exchange availability, and real GDP growth have positive significant impact on bank liquidity while net loan and advance has a negative significant impact on bank liquidity. The empirical result of the second equation depicts that bank liquidity has positive effect on bank profitability even if it is insignificant but total non-interest income and expectation have a positive significant effect on bank profitability. Since the paper has also tested some diagnostic check, the result shows that the model has passed the diagnostic test.
{"title":"Determinants of Bank Liquidity and Its Impact on Bank Profitability in Ethiopia","authors":"Z. Bono","doi":"10.17265/1548-6583/2020.06.002","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.06.002","url":null,"abstract":"The objective of the study is to explore determinants of bank liquidity and its impact on bank profitability in Ethiopia by using two-stage least square (2SLS) balanced panel estimation method from 2014-2019. The two dependent variables to be considered under 2SLS balanced panel estimation methods were liquidity risk and bank profitability. The first equation i.e. liquidity risk specified as a function of major explanatory variable i.e. bank profitability, real GDP growth, net loan growth, and foreign exchange availability. Whereas, the second equation i.e. bank profitability specified as a function of bank liquidity, non-interest income, non-interest expense and expectation. The empirical result of the first equation of the study reveals that bank profitability, foreign exchange availability, and real GDP growth have positive significant impact on bank liquidity while net loan and advance has a negative significant impact on bank liquidity. The empirical result of the second equation depicts that bank liquidity has positive effect on bank profitability even if it is insignificant but total non-interest income and expectation have a positive significant effect on bank profitability. Since the paper has also tested some diagnostic check, the result shows that the model has passed the diagnostic test.","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43513118","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}
Pub Date : 2020-05-28DOI: 10.17265/1548-6583/2020.05.002
D. Balios, Panagiotis Kotsilaras, N. Eriotis, D. Vasiliou
Big Data and Data Analytics affect almost all aspects of modern organisations’ decision-making and business strategies. Big Data and Data Analytics create opportunities, challenges, and implications for the external auditing procedure. The purpose of this article is to reveal essential aspects of the impact of Big Data and Data Analytics on external auditing. It seems that Big Data Analytics is a critical tool for organisations, as well as auditors, that contributes to the enhancement of the auditing process. Also, legislative implications must be taken under consideration, since existing standards may need to change. Last, auditors need to develop new skills and competence, and educational organisations need to change their educational programs in order to be able to correspond to new market analytics are altering the way the audit process is done at both the transaction and general-ledger levels. Auditors have new tools to extract and visualise data, allowing them to dig into larger, non-traditional data sets and perform more intricate analysis. (PwC, 2015)
{"title":"Big Data, Data Analytics and External Auditing","authors":"D. Balios, Panagiotis Kotsilaras, N. Eriotis, D. Vasiliou","doi":"10.17265/1548-6583/2020.05.002","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.05.002","url":null,"abstract":" Big Data and Data Analytics affect almost all aspects of modern organisations’ decision-making and business strategies. Big Data and Data Analytics create opportunities, challenges, and implications for the external auditing procedure. The purpose of this article is to reveal essential aspects of the impact of Big Data and Data Analytics on external auditing. It seems that Big Data Analytics is a critical tool for organisations, as well as auditors, that contributes to the enhancement of the auditing process. Also, legislative implications must be taken under consideration, since existing standards may need to change. Last, auditors need to develop new skills and competence, and educational organisations need to change their educational programs in order to be able to correspond to new market analytics are altering the way the audit process is done at both the transaction and general-ledger levels. Auditors have new tools to extract and visualise data, allowing them to dig into larger, non-traditional data sets and perform more intricate analysis. (PwC, 2015)","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42386168","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}
Pub Date : 2020-05-28DOI: 10.17265/1548-6583/2020.05.001
Francesco Paolone, Riccardo Tiscini, Laura Martiniello
This paper aims at exploring whether single items of intangible recognized in the financial statements under International Financial Reporting Standards (IFRS) are value relevant to investors on the Italian Stock Exchange. The data were gathered from all non-financial Italian listed companies covering the period 2010-2018. Using the Ohlson’s (1995) model, a panel data regression analysis with fixed effect has been adopted to test the relationship between intangibles and stock prices. We found that intangibles (goodwill, R & D expenditure, and other intangibles that are the sub-categories displayed on Orbis Database) are positively related to security price. The implications involve managers that must give much interest to intangibles as well as standards setters that should require further disclosure. This work covered a very recent set of longitudinal accounting data and offered an updating view of the association between intangible information and value relevance in the Italian Stock
{"title":"Accounting and Value Relevance of Intangibles: A longitudinal Study in Italian Stock Exchange 2010-2018","authors":"Francesco Paolone, Riccardo Tiscini, Laura Martiniello","doi":"10.17265/1548-6583/2020.05.001","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.05.001","url":null,"abstract":" This paper aims at exploring whether single items of intangible recognized in the financial statements under International Financial Reporting Standards (IFRS) are value relevant to investors on the Italian Stock Exchange. The data were gathered from all non-financial Italian listed companies covering the period 2010-2018. Using the Ohlson’s (1995) model, a panel data regression analysis with fixed effect has been adopted to test the relationship between intangibles and stock prices. We found that intangibles (goodwill, R & D expenditure, and other intangibles that are the sub-categories displayed on Orbis Database) are positively related to security price. The implications involve managers that must give much interest to intangibles as well as standards setters that should require further disclosure. This work covered a very recent set of longitudinal accounting data and offered an updating view of the association between intangible information and value relevance in the Italian Stock","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67504405","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}
Pub Date : 2020-05-28DOI: 10.17265/1548-6583/2020.05.003
Maï Django Wambé Thérèse
Financial decisions in general and dividend policy in particular are based on the relationship between the stakeholders. Also, analyzing the dividend policy in companies that are not listed on the stock market remains important. The object of our study is to analyze the agency relationship in the link between the ownership structure and the distribution of the dividend at the level of Cameroonian companies. We opted for a qualitative and quantitative study. The statistical tests carried out (with 67 companies) are the comparison test of means and the analysis of variance with one factor (using Statistic Package for Social Science [SPSS] software). The results of this research show that regular and irregular dividend payments lead to a low level of conflict between majority-minority shareholders and shareholder-managers. This leads to a negative relationship between the concentration, the ownership identity, and the dividend policy.
{"title":"Ownership Structure, Agency Relationship and Dividend Policy in unlisted Cameroonian Companies","authors":"Maï Django Wambé Thérèse","doi":"10.17265/1548-6583/2020.05.003","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.05.003","url":null,"abstract":"Financial decisions in general and dividend policy in particular are based on the relationship between the stakeholders. Also, analyzing the dividend policy in companies that are not listed on the stock market remains important. The object of our study is to analyze the agency relationship in the link between the ownership structure and the distribution of the dividend at the level of Cameroonian companies. We opted for a qualitative and quantitative study. The statistical tests carried out (with 67 companies) are the comparison test of means and the analysis of variance with one factor (using Statistic Package for Social Science [SPSS] software). The results of this research show that regular and irregular dividend payments lead to a low level of conflict between majority-minority shareholders and shareholder-managers. This leads to a negative relationship between the concentration, the ownership identity, and the dividend policy.","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45191347","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}
Pub Date : 2020-04-28DOI: 10.17265/1548-6583/2020.04.003
Jamel Chouaibi, Mounia Boulhaga
The purpose of this paper is to examine the effect of the board of directors, namely board size, board independence, and CEO duality, as well as audit quality on the disclosure of internal control information. The sample consists of 164 European companies listed in the STOXX Europe 600. Based on positive agency theory, the authors posit that board of directors and audit quality influence corporate internal control disclosure practice. The content analysis and the design of the evaluation criterion were used to calculate the disclosure index of internal control. Thus, multiple regression analysis is utilized to analyze the results of this paper. The average internal control information disclosure index was 0.285, indicating that most of the companies in our sample do not disclose enough information about the internal control. This low level of forward-looking information disclosure makes it very difficult for corporate stakeholders to determine the future performance of the company. Multivariate results indicate that internal control disclosure is positively and significantly associated with board independence, CEO duality, and audit quality. This study contributes to the literature on the various governance characteristics and disclosure by showing that the disclosure of internal control information in European countries is positively and significantly associated with board independence, separation of duties, and audit quality. Our study was based on a sample of European companies including countries regulating IC disclosure as well as unregulated settings. As noted by Bedard and Graham (2014), regulatory differences in countries can contribute insights on the costs and benefits of disclosure. Findings also have policy implications for investors, managers, and regulators.
本文旨在考察董事会规模、董事会独立性、CEO二元性以及审计质量对内部控制信息披露的影响。样本包括164家在STOXX Europe 600中上市的欧洲公司。基于正代理理论，笔者认为董事会和审计质量会影响公司内部控制披露实践。采用内容分析法和评价准则设计法对内部控制披露指标进行了计算。因此，采用多元回归分析方法对本文的结果进行分析。平均内部控制信息披露指数为0.285，表明我们样本中的大多数公司没有披露足够的内部控制信息。这种低水平的前瞻性信息披露使企业利益相关者很难确定公司的未来业绩。多元分析结果表明，内部控制披露与董事会独立性、CEO二元性和审计质量呈正相关。本研究表明，欧洲国家的内部控制信息披露与董事会独立性、职责分离和审计质量呈正相关，这对有关各种治理特征和披露的文献做出了贡献。我们的研究基于欧洲公司的样本，包括监管IC披露的国家和不受监管的环境。正如Bedard和Graham（2014）所指出的，各国的监管差异有助于深入了解披露的成本和收益。调查结果对投资者、管理者和监管机构也有政策意义。
{"title":"The Effect of the Board of Directors and Audit Quality on Disclosure of Internal Control Practices: Evidence from European Companies","authors":"Jamel Chouaibi, Mounia Boulhaga","doi":"10.17265/1548-6583/2020.04.003","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.04.003","url":null,"abstract":"The purpose of this paper is to examine the effect of the board of directors, namely board size, board independence, and CEO duality, as well as audit quality on the disclosure of internal control information. The sample consists of 164 European companies listed in the STOXX Europe 600. Based on positive agency theory, the authors posit that board of directors and audit quality influence corporate internal control disclosure practice. The content analysis and the design of the evaluation criterion were used to calculate the disclosure index of internal control. Thus, multiple regression analysis is utilized to analyze the results of this paper. The average internal control information disclosure index was 0.285, indicating that most of the companies in our sample do not disclose enough information about the internal control. This low level of forward-looking information disclosure makes it very difficult for corporate stakeholders to determine the future performance of the company. Multivariate results indicate that internal control disclosure is positively and significantly associated with board independence, CEO duality, and audit quality. This study contributes to the literature on the various governance characteristics and disclosure by showing that the disclosure of internal control information in European countries is positively and significantly associated with board independence, separation of duties, and audit quality. Our study was based on a sample of European companies including countries regulating IC disclosure as well as unregulated settings. As noted by Bedard and Graham (2014), regulatory differences in countries can contribute insights on the costs and benefits of disclosure. Findings also have policy implications for investors, managers, and regulators.","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49212937","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}
Pub Date : 2020-04-28DOI: 10.17265/1548-6583/2020.04.002
Davhen Ki Yan Wong, Zengbiao Yu
This paper proposes to use the related party transactions’ (RPT) budget completion ratio (BCR) as indicator of RPT’s execution quality. This paper studies BCR by defining budget ceiling through RPTs announcement and comparing the amount disclosed in annual report as budget execution result. Through statistical analysis of 285 RPT announcements, we classify RPT’s BCR into four benchmark grades. This paper sums up the BCR of RPT from the samples, and deduces moral obligation and moral judgement curve (OJ curve) in terms of BCR. OJ curve is the real dynamic equilibrium after the struggle agency problems. From our statistical results, we verified that Weitzman’s ratchet effect exists in the budget formulation of RPTs, and it is a solid proof of Weitzman’s ratchet effect applied to real business scenarios. The empirical results show ratchet effect exists in BCR of RPTs before and after the change from GEM board listing to main board listing in Hong Kong (Transfer). This paper also finds that it is significant to find the estimated actual amount in the coming year through the budget completion ratio (BCR) of RPT from last year. This paper is a pioneer to examine the execution quality of RPT by the means of (i) Weitzman’s Truth Inducing Model, (ii) BCR, and (iii) SGR as well as (iv) estimated actual amount.
{"title":"The Budget Execution Quality of Related Party Transactions: Evidence from Hong Kong","authors":"Davhen Ki Yan Wong, Zengbiao Yu","doi":"10.17265/1548-6583/2020.04.002","DOIUrl":"https://doi.org/10.17265/1548-6583/2020.04.002","url":null,"abstract":"This paper proposes to use the related party transactions’ (RPT) budget completion ratio (BCR) as indicator of RPT’s execution quality. This paper studies BCR by defining budget ceiling through RPTs announcement and comparing the amount disclosed in annual report as budget execution result. Through statistical analysis of 285 RPT announcements, we classify RPT’s BCR into four benchmark grades. This paper sums up the BCR of RPT from the samples, and deduces moral obligation and moral judgement curve (OJ curve) in terms of BCR. OJ curve is the real dynamic equilibrium after the struggle agency problems. From our statistical results, we verified that Weitzman’s ratchet effect exists in the budget formulation of RPTs, and it is a solid proof of Weitzman’s ratchet effect applied to real business scenarios. The empirical results show ratchet effect exists in BCR of RPTs before and after the change from GEM board listing to main board listing in Hong Kong (Transfer). This paper also finds that it is significant to find the estimated actual amount in the coming year through the budget completion ratio (BCR) of RPT from last year. This paper is a pioneer to examine the execution quality of RPT by the means of (i) Weitzman’s Truth Inducing Model, (ii) BCR, and (iii) SGR as well as (iv) estimated actual amount.","PeriodicalId":71220,"journal":{"name":"现代会计与审计:英文版","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42579241","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}
Pub Date : 2020-04-28DOI: 10.17265/1548-6583/2020.04.001
Maria Isabel L. de la Hostria, L. P. Custodio
Philippines This is a benchmark study that evaluates the competencies of Catanduanes State University (CSU) Accounting Graduates prior to the implementation of ASEAN Integration in 2015. The evaluation was based on CMO No. 3, issued in 2007. Then, the subjects were mapped from the prescribed subjects in the BS Curriculum to the CPA Licensure Examination subjects to spot the congruentcy; lastly, this paper identified the areas of competency of the Accounting Graduates using the rating obtained in the licensure examination as a standard, this is based on RA 9298, the Philippine Accountancy Law, Section 16. The relevance of the study in the present time, is to come up with a better strategic action plan based on the findings and provide practical recommendations that can enhance the capabilities of the next batches of accounting graduates of the University. Descriptive Content Analysis was used in generating and examining qualitative and quantitative data through secondary resources. Based on the CMO No. 3, series of 2017, results revealed that General Education develops competencies in intellectual skills, personal, interpersonal, and communication skills. Business Education develops competencies on economic, quantitative methods, business statistics, organization behavior, marketing, and operations management, professional values, and ethics. Information Technology Education System develops competencies on internal control in computer-based systems, development standards, and practices for business systems, management of the adoption, implementation and use of IT, evaluation of computer business systems, and managing the security of information. Accounting and Finance develops competencies on business law and taxation, financial management, financial management, financial accounting theory and practice, cost determination, analysis and control, management accounting and consultancy services, advanced accounting, auditing, and assurance services. After mapping the BSA Curriculum and CPA Licensure Examination subjects, it was found that BSA Curriculum General and Business Education are integrated in all subjects given in the CPA Licensure Examination. The Information Technology Education is integrated in the CPA Licensure Examination subjects such medium-sized service, trading, or manufacturing concern, financial accounting techniques and methodologies to problems, and legal implications of business transactions, business associations, and negotiable instruments related to accounting and auditing and practical application of basic principles of taxation. Majority of the accounting graduates have failed in the subjects such as Auditing Theory, Auditing Problems I, and Business Law and Taxation. Given these findings, it is recommended: (1) reviewing the current competencies of the CSU accounting students against the target through a competency plan and track learning activities in Auditing and Assurance Services, Assurance Principles, Professional Eth
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