Abstract: This paper analyzes the effect of a single uniform accounting rule on reporting quality by investigating the influence of IFRS on earnings management. This paper examines whether earnings management is reduced after IFRS adoption through the use of “loss avoidance thresholds”, a method that has been verified in earlier studies. This paper concentrates on two European countries: one that represents the continental code law tradition with weak protection of investors (France) and one that represents the Anglo-American common law tradition, which typically implies a strong enforcement system (the United Kingdom).
The research investigates a sample of 526 companies (6822 firm-year observations) during the years 2000 – 2013. The results are different for the two jurisdictions. This study demonstrates that a single set of accounting standards contributes to better reporting quality and reduces the pervasiveness of earnings management in France. In contrast, there is no evidence that a reduction in earnings management followed the implementation of IFRS in the United Kingdom. Due to the fact that IFRS benefit France but not the United Kingdom, other political and economic factors, such legal system or capital market strength, must play a significant role in influencing the comparability and transparency cross-border companies’ financial statements. Overall, the result suggests that IFRS moderately contribute to the accounting quality of reported financial statements and bring benefit for stakeholders, though the role played by other economic factors cannot be discounted.
Abstract: One of the biggest problems of SMEs is their tendencies to financial distress because of insufficient finance background. In this study, an Early Warning System (EWS) model based on data mining for financial risk detection is presented. CHAID algorithm has been used for development of the EWS. Developed EWS can be served like a tailor made financial advisor in decision making process of the firms with its automated nature to the ones who have inadequate financial background. Besides, an application of the model implemented which covered 7,853 SMEs based on Turkish Central Bank (TCB) 2007 data. By using EWS model, 31 risk profiles, 15 risk indicators, 2 early warning signals, and 4 financial road maps has been determined for financial risk mitigation.
Abstract: Nowadays, financial and economic crises are growing
more and reach more countries and sectors. These events have, as a
result, a considerable impact on the activities of the firms which think
unstable and in danger.
But besides this heavy uncertainty which weighs on the different
firms, the family firm, object of our research, is not only confronted
with these external difficulties but also with an internal challenge and
of size: that of transmission. Indeed, the transmission of an
organization from one generation to another can succeed as it can
fail; leaving considerable damage.
Our research registers as part of these problems since we tried to
understand relation between the behavior of two main actors of the
process of succession, predecessor and successor; and the success of
transmission.
Abstract: By systematically applying different engineering
methods, difficult financial problems become approachable. Using a
combination of theory and techniques such as wavelet transform,
time series data mining, Markov chain based discrete stochastic
optimization, and evolutionary algorithms, this work formulated a
strategy to characterize and forecast non-linear time series. It
attempted to extract typical features from the volatility data sets of
S&P100 and S&P500 indices that include abrupt drops, jumps and
other non-linearity. As a result, accuracy of forecasting has reached
an average of over 75% surpassing any other publicly available
results on the forecast of any financial index.
Abstract: Innovations and innovative activity get the increasing
value for successful financial and economic activity of the countries
and regions. The level of innovative sphere development determines
place of a country or a region in world economy and forms a basis of
steady economic growth. This article is devoted to different aspects
of organization of the national economic safety in the conditions of
innovative development, its problems, risks and threats. Economy
can be considered as aspiring for transition to innovative way only
with finding of economic safety: financial independence, power
stability and technological progress. There are statistical indicators,
defining the level of economic security and factors, threatening
economic safety of the state. The research is based on the analysis of
factors and indicators in conditions of innovative development. The
paper is illustrated by the examples of possible estimated system of
the economic safety level.
Abstract: The aim of the study is to investigate a number of characteristics of Corporate Social Responsibility (CSR) indicators that should be adopted by CSR assessment methodologies. For the purpose of this paper, a survey among the Greek companies that belong to FTSE 20 in Athens Exchange (FTSE/Athex-20) has been conducted, as these companies are expected to pioneer in the field of CSR. The results show consensus as regards the characteristics of indicators such as the need for the adoption of general and specific sector indicators, financial and non-financial indicators, the origin and the weight rate. However, the results are contradictory concerning the appropriate number of indicators for the assessment of CSR and the unit of measurement. Finally, the company-s sector is a more important dimension of CSR than the size and the country where the company operates. The purpose of this paper is to standardize the main characteristics of CSR indicators.
Abstract: The aim of this study was to examine and identify the
type of Iranian financial market in terms of being symmetrical or
asymmetrical and to measure relationship between type of market
and the market's indices. In this study, daily information on the
market-s Share Price Index, Industrial Index and Top Fifty Most
Active Companies during the years 1999-2010 has been used. In
addition, to determine type of the financial market, rate of return on
Security is taken into account. In this research, by using logistic
regression analysis methods, relationship of the market type with the
above mentioned indices have been examined. The results showed
that the type of the financial market has a positive significant
association with market share price index and Industrial Index. Index
of Top Fifty Most Active Companies is significantly associated with
type of financial market, however this relationship is inverse.
Abstract: Financial forecasting using machine learning techniques has received great efforts in the last decide . In this ongoing work, we show how machine learning of graphical models will be able to infer a visualized causal interactions between different banks in the Saudi equities market. One important discovery from such learned causal graphs is how companies influence each other and to what extend. In this work, a set of graphical models named Gaussian graphical models with developed ensemble penalized feature selection methods that combine ; filtering method, wrapper method and a regularizer will be shown. A comparison between these different developed ensemble combinations will also be shown. The best ensemble method will be used to infer the causal relationships between banks in Saudi equities market.
Abstract: The growing outsourcing of logistics services
resulting from the ongoing current in firms of costs
reduction/increased efficiency means that it is becoming more and
more important for the companies doing the outsourcing to carry out
a proper evaluation.
The multiple definitions and measures of logistics service
performance found in research on the topic create a certain degree of
confusion and do not clear the way towards the proper measurement
of their performance. Do a model and a specific set of indicators exist
that can be considered appropriate for measuring the performance of
logistics services outsourcing in industrial environments? Are said
indicators in keeping with the objectives pursued by outsourcing? We
aim to answer these and other research questions in the study we have
initiated in the field within the framework of the international High
Performance Manufacturing (HPM) project of which this paper
forms part.
As the first stage of this research, this paper reviews articles
dealing with the topic published in the last 15 years with the aim of
detecting the models most used to make this measurement and
determining which performance indicators are proposed as part of
said models and which are most used. The first steps are also taken in
determining whether these indicators, financial and operational, cover
the aims that are being pursued when outsourcing logistics services.
The findings show there is a wide variety of both models and
indicators used. This would seem to testify to the need to continue
with our research in order to try to propose a model and a set of
indicators for measuring the performance of logistics services
outsourcing in industrial environments.
Abstract: Recent financial international scandals around the world have led to a number of investigations into the effectiveness of corporate governance practices and audit quality. Although evidence of corporate governance practices and audit quality exists from developed economies, very scanty studies have been conducted in Egypt where corporate governance is just evolving. Therefore, this study provides evidence on the effectiveness of corporate governance practices and audit quality from a developing country. The data for analysis are gathered from the top 50 most active companies in the Egyptian Stock Exchange, covering the three year period 2007-2009. Logistic regression was used in investigating the questions that were raised in the study. Findings from the study show that board independence; CEO duality and audit committees significantly have relationship with audit quality. The results also, indicate that institutional investor and managerial ownership have no significantly relationship with audit quality. Evidence also exist that size of the company; complexity and business leverage are important factors in audit quality for companies quoted on the Egypt Stock Exchange.
Abstract: This paper discusses telecominication market developments in Saudi Arabia. Empirical research was carried in the holy city of Makkah to study the customer's preference for mobile cellular service and the factor influencing their subscription of the mobile phone service. Results indicate that the financial factor sicnificantly influence the customer's selection of the service provider.
Abstract: The growth of open networks created the interest to commercialise it. The establishment of an electronic business mechanism must be accompanied by a digital-electronic payment system to transfer the value of transactions. Financial organizations are requested to offer a secure e-payment synthesis with equivalent levels of trust and security served in conventional paper-based payment transactions. The paper addresses the challenge of the first trade problem in e-commerce, provides a brief literature review on electronic payment and attempts to explain the underlying concept and method of trust in relevance to electronic payment.
Abstract: Building maintenance plays an important role among other activities in building operation. Building defect and damages are part of the building maintenance 'bread and butter' as their input indicated in the building inspection is very much justified, particularly as to determine the building performance. There will be no escape route or short cut from building maintenance work. This study attempts to identify a competitive performance that translates the Critical Success Factor achievements and satisfactorily meet the university-s expectation. The quality and efficiency of maintenance management operation of building depends, to some extent, on the building condition information, the expectation from the university sector and the works carried out for each maintenance activity. This paper reviews the critical success factor in building maintenance management practice for university sectors from four (4) perspectives which include (1) customer (2) internal processes (3) financial and (4) learning and growth perspective. The enhancement of these perspectives is capable to reach the maintenance management goal for a better living environment in university campus.
Abstract: This paper focuses on operational risk measurement
techniques and on economic capital estimation methods. A data
sample of operational losses provided by an anonymous Central
European bank is analyzed using several approaches. Loss
Distribution Approach and scenario analysis method are considered.
Custom plausible loss events defined in a particular scenario are
merged with the original data sample and their impact on capital
estimates and on the financial institution is evaluated. Two main
questions are assessed – What is the most appropriate statistical
method to measure and model operational loss data distribution? and
What is the impact of hypothetical plausible events on the financial
institution? The g&h distribution was evaluated to be the most
suitable one for operational risk modeling. The method based on the
combination of historical loss events modeling and scenario analysis
provides reasonable capital estimates and allows for the measurement
of the impact of extreme events on banking operations.
Abstract: This study explored the relationship between
psychological traits, demographics and financial behavioral biases for
individual investors in Taiwan stock market. By using questionnaire
survey method conducted in 2010, there are 554 valid convenient
samples collected to examine the determinants of three types of
behavioral biases. Based on literature review, two hypothesized
models are constructed and further used to evaluate the effects of big
five personality traits and demographic variables on investment biases
through Structural Equation Model (SEM) analysis. The results
showed that investment biases of individual investors are significantly
related to four personality traits as well as some demographics.
Abstract: The transition to sustainable development requires
considerable investments from stakeholders, both financial and
immaterial. However, accounting for such investments often poses a
challenge, as ventures with intangible or non-financial returns remain
oblivious to conventional accounting techniques and risk assessment.
That such investments may significantly contribute to the welfare of
those affected may act as a driving force behind attempting to bridge
this gap. This gains crucial importance as investments must be also
backed by governments and administrations; entities whose budget
depends on taxpayers- contributions and whose tasks are based on
securing the welfare of their citizens. Besides economic welfare,
citizens also require social and environmental wellbeing too.
However, administrations must also safeguard that welfare is
guaranteed not only to present, but to future generations too. With
already strained budgets and the requirement of sustainable
development, governments on all levels face the double challenge of
making both of these ends meet.
Abstract: In this content analysis research note the aim was to explore to how sustainability and especially environmental issues are conveyed into environmental items in annual reports and disclosures. As The Global Reporting Initiative (GRI) is a globally wide multistakeholder process, the enterprises using voluntarily GRI framework are considered to be aware of sustainability and environmental concerns. The findings were that although these enterprises included in an environmentally sensitive industry sector and had special capabilities to consider environmental issues there were few GRIreporting enterprises presented substantially detailed environmental items in audited financial statements. There were only slight differences between publishing years 2008 and 2009 - the beginning years of economic turmoil. The environmental issues seemed not to be considered substantial enough for financial reporting as a basis for concerning investment or voting decisions.
Abstract: This paper focuses attention on specific aspects of
entrepreneurial decisions relating to investment, both in the total
fixed investments and plant & machinery (separately). Demand and
financial factors, internal and external, are considered in the
investment analysis. Finally the influence of determinants of fixed
investment and investment plans are examined in Electric Power
industry in India.
Abstract: Bringing change to the housing industry requires
multiple efforts from various angles especially to overcome any
resistances in the form of technology, human aspects, financial and
resources. The transition from conventional to sustainable approach
consumes time as it requires changes from different facets in the
industry ranging from individual, organisational to industry level. In
Malaysia, there are various efforts to bring green into the industry but
the progress is low-moderate. Will the current efforts bear larger
fruits in the near future? This study examines the perceptions of the
developers in Malaysia on the future of the green housing sector for
the next 5 years. The introduction of GBI rating system, improvement
of awareness and knowledge among the stakeholders, support from
the government and local industry and the effect of competitive
advantage would support brighter future. Meanwhile, the status quo
in rules and regulation, lack of public interest and demand,
organization disinterest, local authority enforcement and project cost
escalation would hinder a faster progress.
Abstract: The paper focuses on the implementation phase of the
strategy of the European Union and the national strategy of the
Czech Republic to promote academic and research staff with the
potential to produce results that provide innovation useful for
economic growth. It deals with the use of financial resources of the
Operational Program Education for Competitiveness at the
University of West Bohemia in Pilsen. The author presents an
example of two strategic projects in the field of human resources –
Excellence in Human Resources as a Source of Competitiveness and
New Excellence of Human Resources. The subject of this paper is the
potential contribution of newly recruited postdoctoral within these
projects for the University of West Bohemia in Pilsen and its internal
environment.