Accounting Finance

This paper explores the issues in the emergence of growth equity as a private class of asset in a company portfolio. The independent variables investigated will be investment size, duration, risk and return, exit or repayment of funds, and timing. The driving factors of all five variables assist in the understanding of the emergence of growth equity. The driving factors in the paper include the availability of capital, competitiveness, regulation of the business atmosphere, stability of the firm, home-grown marketing of the products, and honesty in both regional and global trade. The paper further investigates the problems of each variable and the potential hindrance to the emergence of growth equity. The paper provides a significant contribution to corporate finance professionals and practitioners to better understand the problems and the potential in the emergence of growth equity as a private class of asset.

AbstractThis study examines whether auditors adjust their effort and pricing decisions for political visibility. We argue, from the behavioural literature, that political visibility will create the need for more justification by auditors. Using data on actual audit fees, hours and billing rates for a sample of New Zealand public sector companies, we find that total audit fees are positively related

Private shareholder response to annual reports of Australian public-listed companies was investigated via postal questionnaires in 1979 and 1980. Approximately 2000 usable replies indicate that although annual reports are ranked third to stockbroker advice and newspapers as sources of corporate information, two-thirds claim the report is of some importance and one-quarter would buy it and pay up to $2 per copy. Readership behaviour reveals that whereas the chairman's review is the most read item, traditional financial statements are more important in influencing equity decision-making. The auditor's report, statistical data and notes to accounts are least read and least important. Such evidence has implications for report preparers, auditors, accountancy professional bodies, financial journalists and educators.

In order to test the moderating role of corporate strategy and industry environment in the effect of liquidity on investment for Portuguese manufacturing firms, we developed a multiple linear regression model for panel data. It is a static model with three types of variables: financial; strategic/environmental; and interactive. The estimated model was validated through the Breusch-Pagan/Cook-Weisberg and Wald Modified tests (heteroscedasticity tests), Lagrange Multiplier (industry random effects test, using the two-digit National Classification of Economic Activities), Hausman robust test (fixed effects model vs. random effects model test) and likelihood-ratio test (joint effect of industry and time test). The statistical processing of the data revealed that a company’s strategy (diversification and innovation) and the industry environment (growth) moderate the effect of liquidity on investment, which can be explained by the effect of these factors on the cost of asymmetric informat...

This paper examines how individualism-collectivism, the core dimension of cultural variability, is reflected in the learning styles of accounting students in Australia, Hong Kong and Taiwan. Australia represents the Western individualistic culture, and Hong Kong and Taiwan represent the Chinese collectivistic culture. Using Kolb's model this study shows that the learning styles of accounting students from Hong Kong and Taiwan are more abstract and reflective, as well as less concrete and active. Their Australian counterparts are more concrete and active, as well as less abstract and reflective. While the former exhibit the assimilation style, the latter represent the accommodation style.

Before December 1999, the capital gains of shareholders who sold their shares into Australian takeovers have been taxable irrespective of payment method. Subsequently, shareholders can elect to rollover capital gains in equity takeovers. We examine the effect of this change on the association between target shareholder capital gains and bidder and target firm shareholder wealth. The results indicate that prior to the regulatory change, cash consideration results in higher target shareholder returns for non-taxation reasons. After the introduction of capital gains tax rollover relief, we find that target and acquiring firm shareholders earn lower returns when cash consideration is offered to shareholders with greater capital gains.

Purpose: In this study, the main aim is to know farmers' problems in the agricultural sector. Food products are the primary good to ensure the quality of life and health. In the world, many countries are depending on the agricultural sector and farmers are the backbone of the economy. Design/methodology/approach: In this study, the main aim is to find what are the challenges faced by the farmers in Andhra Pradesh State. The present paper attempts to spell out some of the constraints like production, and marketing, and finance-related problems faced by the farmers. Primary data were collected from the farmers to investigate the aim and applied a convenient sample technique to collect opinions from the respondent. Findings: To find out production, marketing, and finance-related problems have been faced by the farmers. This study helps to encourage farmers to produce more goods and to increase productivity. Originality/value: It was concluded that a spellbinding report utilizing es...

In general, papers reporting the results of research studies disclose little detail regarding attributes of study design, analytical processes and methods actually used by researchers. This paper describes in some depth the method choices and analytical protocol used in a field study project. The paper describes initially the link between research question, research design and analytical protocol. The major focus of the paper is the application of a systematic analytical protocol designed to encourage completeness and impartiality in the collection and analysis of qualitative data. These method issues are examined in the context of the author's experiences in the field and through the process of data analysis. The methods used are also examined critically in retrospect.

Singapore being an island economy and a financial hub with residents from diverse backgrounds, huge ethnic diversity, coming from different part of the world. This study aims to gain insights and information into the factors that affect investment planners, financial advisers and individuals need to consider improving their choice of the portfolio and its performance. People’s investment decisions and hence their portfolio, which hitherto has not been tested. Furthermore, it intends to identify the factors that drive investors to choose one investment over another and determine how they make their investment portfolios. The survey was modelled using the smart-pls statistical package (PLS-SEM), which is partial least squares structural equation modelling.

The present study adds to the sparse published Australian literature on the size effect, the book to market (BM) effect and the ability of the Fama French three factor model to account for these effects and to improve on the asset pricing ability of the Capital Asset Pricing Model (CAPM). The present study extends the 1981–1991 period examined by Halliwell, Heaney and Sawicki (1999) a further 10 years to 2000 and addresses several limitations and findings of that research. In contrast to Halliwell, Heaney and Sawicki the current study finds the three factor model provides significantly improved explanatory power over the CAPM, and evidence that the BM factor plays a role in asset pricing.

In the ever-growing realm of fund/investment management, there are various stakeholders involved. This paper has identified the significant factors that lead to issues coming up in the fund management industry within the working and operations. The paper consists of an extensive literature review from the perspective of the investor. It consists of a research framework that involves steps like factor recognition, problem recognition, possible solutions, and conclusion. The result of this study shows that various factors influence the working of these organizations, which include the organization hierarchy, fee structure, risk involved, information privacy, and level of professionalism. These factors affect the industry image as well as the level of trust in the minds of the investor. It can all very well translate to the betterment of an organization's workflow. 

Options traders and investors utilize methods to price and select call and put options. The models and tools range from Black-Scholes, binomial & trinomial models, Adaptive Mesh model, and the “Greeks” also known as Delta, Gamma, Vega, Theta and Rho. These methods all provide measurements of risk, time and price sensitivities. Missing from practitioner and academic literature is premium cost versus time. This paper explores a simple method of choosing a call or put option based upon its cost per unit of time to assist in selecting options with similar strike prices and different time intervals of an options

This study examines if there has a major change in the value relevance of revenue recognition components since the adoption of International Financial Reporting Standards 15 in the United States. The research problem addressed the lack of understanding of the value relevance of revenue recognition under IFRS and its application to impact for the telecommunication industry. Our results show that the public firms revenue recognition are value relevant under United States of Generally Accepted Accounting Principles (US GAAP) and remain so after the adoption of IFRS. Also, for revenue recognition after IFRS, along with an increase in the value relevance in the future. These results are consistent with the proportion that revenue recognition plays a reinforcing role that complements the more complex IFRS accounts. Consequently, if the International Accounting Standards (IASB) were to mandate revenue recognition, it would, in all likelihood, provide users of accounts with a valuable incre...

This paper reviews the evidence of a Myers-Briggs personality type bias for accounting students, A survey of a sample of accounting majors in three Australian universities supports the overseas evidence that there appears to be a strong tendency for accounting students to have common preferences on three of the four Myers-Briggs dimensions. The findings of this research suggest that while significant diversity is still evident, there is a bias in the Myers-Briggs personality profiles of accounting students towards preferences for sensation over intuition, thinking over feeling, and judgment over perception. Research in psychology and education has shown that different Myers-Briggs personality preferences are associated with significant differences in how people prefer to learn, and the types of learning experiences under which they perform best, that is personality types are associated with distinct learning styles. These outcomes suggest that accounting educators should cater to the variety of personality types among their students by adopting a diversified teaching approach. Such an approach should provide a balance of learning experiences and teaching strategies by attempting to challenge the weaknesses of the personality bias of accounting students in the intuition, feeling and perception areas, and building upon their strengths in the sensation, thinking and judgment areas.

Code of ethics is already established for professional accountant of Bangladesh in public practice and business. Every professional accountant follows this code of ethics to maintain their professionalism as well as reporting. The purpose of this research to investigate some threats those are faced by professional accountant to carry out their code of ethics. This study based on a sample of 61 professional accountants working at different audit firm and different business organization in Bangladesh. Data analyzed by using SPSS 17 and one sample statistics and one sample test was used as analytical tools in this study. There are 18 variables considered from integrity, objectivity, professional competence and due care aspect. It is found that professional accountant face various self-interest threat and selfreview threat in reporting and financial report does not provide accurate information for tax purpose after audited in many cases.

The aim of this study was to study the relationship between dividend policy and share price volatility in insurance companies listed in the Amman Stock Exchange. A sample of 20 companies from 23 insurance companies listed in the Amman Stock Exchange was selected. The current study used two main measurements of dividend policy, dividend yield, and payout ratio, by applying multiple linear regressions for the period 2008 to 2017. The main regression model was modified by adding control variables including firm size, earnings volatility, financial leverage and growth in assets. The study finds a significant negative relationship between share price volatility and dividend yield and payout ratio. But the most impact variable on share price volatility was dividend yield.

In March 2020, given the extended and dangerous nature of the Covid-19 virus, the Italian government issued measures geared towards containing the effect of the pandemic, thereby identifying the national territory as a protected area and limiting the movement of people This had great repercussions on the productive activities of businesses, which were forced to suspend production Strong uncertainties, tied both to the time frame, as well as to the impact of Covid-19 on micro and macroeconomic levels, have made it extremely difficult to forecast what future outcomes might be in the short term, that is to say, it is related to the year 2020, and, specifically, on assumptions regarding the future operations of companies This manuscript proposes a study of financial reporting, as required by accounting standards, which listed companies must provide in regard to disclosure due to Covid-19 as well as in regard to being a going concern After having examined the main measures adopted by the...

Singapore being an island economy and a financial hub with residents from diverse backgrounds, huge ethnic diversity, coming from different part of the world. This study aims to gain insights and information into the factors that affect investment planners, financial advisers and individuals need to consider improving their choice of the portfolio and its performance. People’s investment decisions and hence their portfolio, which hitherto has not been tested. Furthermore, it intends to identify the factors that drive investors to choose one investment over another and determine how they make their investment portfolios. The survey was modelled using the smart-pls statistical package (PLS-SEM), which is partial least squares structural equation modelling.

Working capital management is the discipline of management which is inevitable in all walks of economic life whether in a household or in an enterprise, in the public domain or in private domain,profit oriented or not .The efficient working capital management is most crucial factor in maintaining survival,liquidity,solvency and profitability of any business organization. Moreover, an optimal working capital management positively contributes to the firm's value. Theprofitability and the efficiency of every sector in the nation have direct bearing on the prosperity of economy which can be primarily achieved through efficient working capital management practices. It helps in designing a framework to smoothen the financial constraints of business so as to make effective use of its resources.Keeping in mind the significance of working capital management an attempt has been made to examine its impact on the profitability of Indian automobile industry. The Indian automobile industry is...

The study examined the determinants of credit default by Micro Finance Institution borrowers the case Hawassa city. The researcher used a quantitative research approach with an explanatory research design to establish the effect of the independent variables on the dependent variable. The primary data were collected from 360 sampled borrowers of Micro Finance Institutions using a structured questionnaire. Both descriptive and inferential statistics analysis were done using SPSS version 21.0. Descriptive statistics were used to identify whether there is a large variance in data. The study also used correlation analysis to see the degree variation and direction of relationship among variables. Inferential statistics were used to test hypotheses. The researcher employed logit model to identify the impact of explanatory variables on dependent variable. The results of the study revealed that ten independent variables incorporated in the model that included gender, education, age, lack of ...

Although the fundamental and technical analysis literatures invest considerable effort in assessing their respective ability to explain share prices, they invariably do so without reference to each other. In this context, we propose an equity valuation model integrating both fundamental and technical analysis and, in doing so, recognize their potential as complements rather than as substitutes. Testing confirms the complementary nature of fundamental and technical analysis by showing that, although each performs well in isolation, models integrating both have superior explanatory power. While our findings relate to the valuation of shares, they also have implications for other valuation exercises.

Purpose – Tax compliance has been studied by analyzing the individual decision of a representative person between planning and evading taxes. A neglected aspect of tax compliance is the impact of bureaucracy and corruption. Both bureaucracy and corruption are hypothesized to have a negative impact on tax compliance. Aims to examine this issue. Design/methodology/approach – Based on empirical evidence from 30 developed and developing countries. Findings – Finds that tax compliance internationally is negatively related to the levels of bureaucracy and positively related to the successful control of corruption. The paper shows that a powerful deterrent is the creation of a tax morale or climate, where citizens are protected from corruption and bloated burequcracies. Originality/value – The findings are of great value to developing countries that need to reduce both the level of corruption and bureaucracy in order to create the type of tax morale conducive to both tax compliance and eco...