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- Title
- DO FIRMS’ BANKRUPTCY ANNOUNCEMENTS ALTER PEERS’ RISK FACTOR DISCLOSURES?.
- Creator
- Nam, Jiwon, Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
Since 2005 corporate managers must discuss their firm’s significant risk factors that may materially and unfavorably affect corporate outcomes in the Item 1A Risk Factor Disclosure (RFD) section of their 10-K filings. However, there is limited research on whether firms change the sentiment of their mandatory disclosures after a significant economic event. I use bankruptcy announcements as a unique setting in this study to assess non-announcing firms’ responses to these events as a bankruptcy...
Show moreSince 2005 corporate managers must discuss their firm’s significant risk factors that may materially and unfavorably affect corporate outcomes in the Item 1A Risk Factor Disclosure (RFD) section of their 10-K filings. However, there is limited research on whether firms change the sentiment of their mandatory disclosures after a significant economic event. I use bankruptcy announcements as a unique setting in this study to assess non-announcing firms’ responses to these events as a bankruptcy announcement generates significant concern to non-announcing industry peer firms. I explore whether industry peers change four measures of sentiment (i.e., length, negative tone, specificity, forward-looking statements) of Item 1A RFDs after a rival firm’s bankruptcy filing. Using textual analysis methodology, I find that industry peer firms have shorter, less negative, and less forward-looking RFDs after another firm’s bankruptcy announcement. These results imply that industry peers are likely to adjust their tone of mandatory filings (i.e., Item 1A RFDs) in response to a rival firm’s bankruptcy announcement. I further provide evidence that firms do not use separate subsections to disclose their firm- and industry-specific risks within their Item 1A RFDs. Lastly, the lengths of financial, litigation, other-idiosyncratic, and other-systematic topic disclosures significantly decrease for non-announcing industry peers while the length of tax relevant risk topic does not significantly change after a bankruptcy filing. This study adds to mandatory research by identifying the spillover effect of a bankruptcy announcement on Item 1A RFDs. This research also contributes to accounting literature by providing evidence that non-announcing industry peers significantly adjust the sentiment of their risk factor information. Market participants including investors, shareholders, and financial analysts can improve investment decision accuracy by analyzing the industry peers’ risk factor information.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014189
- Subject Headings
- Bankruptcy, Risk, Accounting, Disclosure in accounting
- Format
- Document (PDF)
- Title
- Do investors attach higher valuation weights to cash flow-based measures than to accrual-based measures in valuing intangible-intensive, high-technology stocks?.
- Creator
- Al-Harbi, Abdullah D., Florida Atlantic University, College of Business, School of Accounting
- Abstract/Description
-
This study provides empirical evidence on the impact of high-tech firms' unrecognized intangible investments on the market valuation of cash flow and accrual amounts. In particular, this study empirically examines the different valuation weights that capital market participants attach to accrual-based versus cash flow-based measures when valuing intangible-intensive, high-technology stocks, and finds that investors appear to value, on average, a dollar of cash flows higher than a dollar of...
Show moreThis study provides empirical evidence on the impact of high-tech firms' unrecognized intangible investments on the market valuation of cash flow and accrual amounts. In particular, this study empirically examines the different valuation weights that capital market participants attach to accrual-based versus cash flow-based measures when valuing intangible-intensive, high-technology stocks, and finds that investors appear to value, on average, a dollar of cash flows higher than a dollar of accruals for intangible-intensive high-technology firms. Based on samples of Compustat high- and low-technology firms between 1992--2001, the empirical results suggest that cash flows have larger multiplier than aggregate accruals, and have incremental value-relevant information beyond that contained in the individual components of accruals for valuing high-technology stocks. This study further provides evidence that suggests that cash earnings measures of low-technology firms are dominated by those of high-technology firms as a summary indicator of share values. This study contributes to existing literature that reports no substantial difference in the value relevance of cash flow and accrual amounts in high and low tech industries. It provides evidence that suggests that capital market investors do not hold high-tech stocks to the same standards of valuation that they use for low-tech traditional stocks.
Show less - Date Issued
- 2003
- PURL
- http://purl.flvc.org/fau/fd/FADT12055
- Subject Headings
- Business Administration, Accounting
- Format
- Document (PDF)
- Title
- A SELECTED COMPARISON OF PROFIT AND NONPROFIT ORGANIZATION ACCOUNTING PRACTICES AND PROCEDURES.
- Creator
- LAGASSE, ROBERT CLAUDE, Florida Atlantic University, College of Business, School of Public Administration
- Abstract/Description
-
The study compares and contrasts general accounting practices and procedures as they are applied in profit and not-for-profit organizations. The data from which this study was made was gathered from existing publications in the fields of accounting and association management as well as policy and practice statements issued by the American Institute of Certified Public Accountants (AICPA). The study describes the differences in for-profit and not-for-profit accounting practices and procedures...
Show moreThe study compares and contrasts general accounting practices and procedures as they are applied in profit and not-for-profit organizations. The data from which this study was made was gathered from existing publications in the fields of accounting and association management as well as policy and practice statements issued by the American Institute of Certified Public Accountants (AICPA). The study describes the differences in for-profit and not-for-profit accounting practices and procedures as they exist in current practice. The study represents a state-of-the-art overview of not-for-profit accounting procedures of use to anyone establishing operating guidelines for such an organization.
Show less - Date Issued
- 1977
- PURL
- http://purl.flvc.org/fcla/dt/13846
- Subject Headings
- Business Administration, Accounting
- Format
- Document (PDF)
- Title
- THE ROLE OF EXECUTIVE COGNITIVE DIVERSITY ON FINANCIAL REPORTING QUALITY.
- Creator
- Li, Tianpei, Thevenot, Maya, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
There has been a strong push for workplace diversity in the United States (U.S.) in recent years. Work teams consisting of employees with diverse backgrounds can augment firms’ competitive advantage. This view is consistent with the cognitive diversity hypothesis, which depicts multiple perspectives generated by cognitive differences among organizational members resulting in creative problem-solving. In this study, I investigate the role of cognitive diversity, measured by differences in a...
Show moreThere has been a strong push for workplace diversity in the United States (U.S.) in recent years. Work teams consisting of employees with diverse backgrounds can augment firms’ competitive advantage. This view is consistent with the cognitive diversity hypothesis, which depicts multiple perspectives generated by cognitive differences among organizational members resulting in creative problem-solving. In this study, I investigate the role of cognitive diversity, measured by differences in a set of seven cultural traits between the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO), in shaping firm financial reporting quality. Relying on the upper-echelon theory that executive characteristics affect firm outcomes and the cognitive diversity hypothesis that diversity reduces groupthink, sparks innovation, increases employee retention rate, and builds a positive firm culture, I expect to find a positive relationship between cognitive diversity and financial reporting quality. In determining firm performance and outcomes, differences in executive demographic characteristics such as age, tenure, gender, and race may have an impact on how executive cognitive perceptions, values, and information sets, shape their decisions and outcomes. Therefore, I then examine the effect of executive demographic diversity on the link between executive cognitive diversity and financial reporting quality. Diversity has received a lot of attention over the last decades, but it is unclear ex ante how different types of diversity interact with each other in shaping firm outcomes. Therefore, I examine but do not hypothesize the direction of the effect of executive demographic diversity on the link between executive cognitive diversity and financial reporting quality.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014140
- Subject Headings
- Financial statements, Executives, Accounting
- Format
- Document (PDF)
- Title
- DOES EMERGING GROWTH COMPANY INVESTOR SKEPTICISM DISSIPATE BEFORE THE FIRST REPORTED INDEPENDENT INTERNAL CONTROL AUDIT RESULTS? AN EMPIRICAL INVESTIGATION.
- Creator
- Burke, Lawrence S., Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
This study examines whether emerging growth company (EGC) investors respond to the annual required internal control disclosures over financial reporting (ICFR). I develop three hypotheses to test across the EGC lifecycle. Specifically, I investigate whether the first year ICFR disclosure, the remediation of a previously reported material weakness ICFR disclosure and the EGC exit are associated with the firm’s cumulative abnormal return over a three-day event window. Prior literature has...
Show moreThis study examines whether emerging growth company (EGC) investors respond to the annual required internal control disclosures over financial reporting (ICFR). I develop three hypotheses to test across the EGC lifecycle. Specifically, I investigate whether the first year ICFR disclosure, the remediation of a previously reported material weakness ICFR disclosure and the EGC exit are associated with the firm’s cumulative abnormal return over a three-day event window. Prior literature has observed that ICFR disclosures by management and the ICFR audit opinion can be shown to be informative to investors. However, I am not aware of any study investigating whether the EGC investors respond to this type of information. I find that the reported ICFR disclosures are not associated with cumulative abnormal returns during their initial ICFR report disclosure or upon exit as informative but do respond to the reporting of material weakness remediation.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014246
- Subject Headings
- Financial statements, Accounting
- Format
- Document (PDF)
- Title
- The role of professional judgment in the application of United States accounting standards: An experimental study of the effect of professional judgment on financial reporting decisions of accountants.
- Creator
- Rentfro, Randall Wesley, Florida Atlantic University, Hooks, Karen L.
- Abstract/Description
-
This study examines two questions: (1) whether the level professional judgment required in the application of accounting standards affects the comparability of financial reporting; (2) whether financial statement preparers exploit the professional judgment in accounting standards in order to engage in earnings management. The study is motivated by former FASB Chair Dennis Beresford's call for simple accounting standards which rely heavily on the exercise of professional judgment and by SEC...
Show moreThis study examines two questions: (1) whether the level professional judgment required in the application of accounting standards affects the comparability of financial reporting; (2) whether financial statement preparers exploit the professional judgment in accounting standards in order to engage in earnings management. The study is motivated by former FASB Chair Dennis Beresford's call for simple accounting standards which rely heavily on the exercise of professional judgment and by SEC Chair Arthur Levitt's concerns that managers exploit the flexibility in accounting standards to engage in earnings management. Agency theory is used to develop two hypotheses which predict the conditions under which financial statement preparers exploit the professional judgment allowed in the application of accounting standards in order to manage earnings. Normative arguments are used to develop a third hypothesis about the relationship between the level of professional judgment required to apply accounting standards and the comparability of financial reporting. The study uses an experiment methodology to examine the financial reporting decisions of 111 financial statement preparers in corporations located throughout the United States. Participants are randomly assigned to one of four experimental groups (a control group, a profit-sharing plan group, an information asymmetry group, and a moral hazard group). The study's results support the hypothesis that there is less comparability in financial reporting when accounting standards rely heavily on the exercise of professional judgment than when standards place fewer demands on professional judgment. The findings also provide some support for the idea that moral hazard conditions interact with the level of professional judgment required in the application of accounting standards to affect the reporting decisions of financial statement preparers. However, the male financial statement preparers in this study reacted differently than their female counterparts when faced with moral hazard conditions.
Show less - Date Issued
- 2000
- PURL
- http://purl.flvc.org/fcla/dt/12653
- Subject Headings
- Accounting--Standards--United States, Accounting--Decision making
- Format
- Document (PDF)
- Title
- SPECTRAL ANALYSIS OF THE INTERNATIONAL TRANSMISSION OF PRICE FLUCTUATIONS.
- Creator
- FERRO, ALEJANDRO., Florida Atlantic University, McPheters, Lee R., College of Business, Department of Economics
- Abstract/Description
-
This thesis examines the transmission of price fluctuations between international trading partners. Once the theoretical basis for the transmittal of fluctuations was established, cross-spectral analysis was employed in an empirical evaluation of price fluctuations between the United States and Germany, the United Kingdom, France and Japan. It was concluded that the price fluctuations in any given country have a relationship to those of their trading partners and that policy makers should...
Show moreThis thesis examines the transmission of price fluctuations between international trading partners. Once the theoretical basis for the transmittal of fluctuations was established, cross-spectral analysis was employed in an empirical evaluation of price fluctuations between the United States and Germany, the United Kingdom, France and Japan. It was concluded that the price fluctuations in any given country have a relationship to those of their trading partners and that policy makers should take this fact into consideration when instituting anti-inflationary measures.
Show less - Date Issued
- 1974
- PURL
- http://purl.flvc.org/fcla/dt/13648
- Subject Headings
- Accounting and price fluctuations, Commerce
- Format
- Document (PDF)
- Title
- Environmental Regulation Stringency and Voluntary Environmental Disclosure.
- Creator
- Xing, Hanbing, Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
I examine the relationship between environmental regulation stringency and the extent of voluntary environmental disclosures by firms. The study draws on theoretical frameworks including legitimacy theory, stakeholder theory, and information asymmetry, to explore how different mechanisms influence firm behavior in the context of environmental transparency. My empirical analysis shows a positive relationship between the stringency of environmental regulations and the level of voluntary...
Show moreI examine the relationship between environmental regulation stringency and the extent of voluntary environmental disclosures by firms. The study draws on theoretical frameworks including legitimacy theory, stakeholder theory, and information asymmetry, to explore how different mechanisms influence firm behavior in the context of environmental transparency. My empirical analysis shows a positive relationship between the stringency of environmental regulations and the level of voluntary environmental disclosures. This relationship is weakened by factors such as board independence and institutional ownership. I further confirm the positive effect of national level of environmental regulation stringency on the environmental voluntary disclosure. However, I fail to find supporting evidence on the positive moderating role of national level of environmental regulation stringency and corporate governance. In contrast, I find evidence that external institutional ownership and independent directors, who represent interests of external blockholders, have a preventive and monitoring effect on the main relationship to reduce the threat of misleading voluntary information and proprietary cost.
Show less - Date Issued
- 2024
- PURL
- http://purl.flvc.org/fau/fd/FA00014457
- Subject Headings
- Environmental reporting, Corporate governance, Accounting
- Format
- Document (PDF)
- Title
- The influence of professional identity and outcome knowledge on professional judgment.
- Creator
- Johnson, Anna J., Higgs, Julia, Florida Atlantic University, College of Business, School of Accounting
- Abstract/Description
-
In response to the release of one of its Public Company Accounting Oversight Board (PCAOB or Board) inspection reports, Deloitte notes that “[p]rofessional judgments of reasonable and highly competent people may differ as to the nature and extent of necessary auditing procedures, conclusions reached and required documentation” (PCAOB, 2008, 30). Other responses to PCAOB findings echo this sentiment. Stakeholders need to understand causes of differences between experts’ professional judgments...
Show moreIn response to the release of one of its Public Company Accounting Oversight Board (PCAOB or Board) inspection reports, Deloitte notes that “[p]rofessional judgments of reasonable and highly competent people may differ as to the nature and extent of necessary auditing procedures, conclusions reached and required documentation” (PCAOB, 2008, 30). Other responses to PCAOB findings echo this sentiment. Stakeholders need to understand causes of differences between experts’ professional judgments to effectively utilize PCAOB inspection findings and firms’ responses to those findings. This study uses Social Identity Theory to explore whether role identity as an audit partner, internal reviewer, or PCAOB inspector, influences an expert’s judgments in an ambiguous decision environment. I find that professional judgments do not differ based on professional identity. This study also examines whether the presence or absence of outcome knowledge explains judgment differences among auditing experts. Consistent with prior research, e.g. Peecher & Piercey, 2008, outcome knowledge does affect experts’ professional judgment. I also find that experts’ level of organizational identification and membership esteem impacts professional judgment.
Show less - Date Issued
- 2014
- PURL
- http://purl.flvc.org/fau/fd/FA00004126, http://purl.flvc.org/fau/fd/FA00004126
- Subject Headings
- Accountants -- Professional ethics, Accounting -- Decision making, Auditing -- Decision making, Business ethics, Judgment, Managerial accounting
- Format
- Document (PDF)
- Title
- Investor Connections and Non-GAAP Reporting.
- Creator
- Harwood, Chad, Kohlbeck, Mark, Florida Atlantic University, College of Business, School of Accounting
- Abstract/Description
-
I investigate whether a firm’s social capital with investors impacts its non-GAAP reporting decisions. Critics of non-GAAP reporting suggest that non-GAAP earnings are incomplete, inaccurate, and can be misleading (Derby, 2001; Dreman, 2001; Elstein, 2001; Black et al., 2007). Firms might be hesitant to provide non-GAAP information if other means are available to transfer information. Social capital provides an alternate method of informing investors. However, social capital might also play...
Show moreI investigate whether a firm’s social capital with investors impacts its non-GAAP reporting decisions. Critics of non-GAAP reporting suggest that non-GAAP earnings are incomplete, inaccurate, and can be misleading (Derby, 2001; Dreman, 2001; Elstein, 2001; Black et al., 2007). Firms might be hesitant to provide non-GAAP information if other means are available to transfer information. Social capital provides an alternate method of informing investors. However, social capital might also play another role in the information environment by building trust between managers and investors (Gabarro, 1978; Gulati, 1995). This trust may reduce investor skepticism of non-GAAP information, enhancing the value of non-GAAP disclosures. Additionally, I examine what impact social capital might have on investors’ investment decisions with respect to non-GAAP reporting. Despite critics’ concerns over non-GAAP reporting, prior literature suggests investors’ reactions are more aligned with the non-GAAP definition of earnings (Bradshaw and Sloan, 2002; Bhattacharya et al., 2003), suggesting other factors might influence investors’ decisions. I investigate whether social capital plays a role in reducing skepticism in non-GAAP information leading to reduced information asymmetry and increased investor reaction to non-GAAP disclosures. I find that non-GAAP reporting is increasing in social capital with investors. However, I find no evidence that investor reactions to non-GAAP earnings information differ based on firms’ social capital with investors. I also find information asymmetry around earnings announcements is higher for non-GAAP reporting firms with greater social capital with investors in comparison to non-GAAP reporters with lower social capital. Taken together, my results suggest social capital impacts the decisions of firms in reporting non-GAAP earnings information, but not the decisions of investors. My results are relevant to the current disclosure environment in that non-GAAP reporting is a current topic of interest for regulators with several updates to non-GAAP guidance having recently occurred.
Show less - Date Issued
- 2019
- PURL
- http://purl.flvc.org/fau/fd/FA00013214
- Subject Headings
- GAAP (Accounting), Investors, Social capital (Economics)
- Format
- Document (PDF)
- Title
- A CASE STUDY OF LEAKAGES OF CONTRIBUTIONS TO NEGOTIATED FRINGE BENEFIT TRUST FUNDS IN THE SOUTHERN CALIFORNIA PLASTERING INDUSTRY.
- Creator
- ROSE, JAMES JOSEPH., Florida Atlantic University, Schuster, Fred E.
- Abstract/Description
-
This study was prepared as the thesis required for the Master of Business Administration Degree. Very little has been written on the subject of delinquencies in the reporting of negotiated fringe benefit contributions. Methods employed in the research include: interviews, direct observation, questionnaires and research of records. Records of fringe benefit trusts of three inter-related crafts of the plastering industry (lathing, plastering and plaster tending) in Los Angeles and Orange...
Show moreThis study was prepared as the thesis required for the Master of Business Administration Degree. Very little has been written on the subject of delinquencies in the reporting of negotiated fringe benefit contributions. Methods employed in the research include: interviews, direct observation, questionnaires and research of records. Records of fringe benefit trusts of three inter-related crafts of the plastering industry (lathing, plastering and plaster tending) in Los Angeles and Orange Counties, California, were examined. Comparative analyses of union membership, employment statistics, hours reported for fringe benefit trusts and actuarial assumptions were made. Arbitration and judicial decisions were cited. After extensive analysis it was determined that leakages of fringe benefit contributions have occurred in significant amounts.
Show less - Date Issued
- 1972
- PURL
- http://purl.flvc.org/fcla/dt/13554
- Subject Headings
- Disclosure in accounting, Plastering--Industries
- Format
- Document (PDF)
- Title
- PERCEPTIONS OF SELECTED SCHOOL PERSONNEL TOWARD THEIR NEGOTIATED TEACHER EVALUATION PROCEDURES IN THE SCHOOL DISTRICT OF BROWARD COUNTY, FLORIDA.
- Creator
- BENSON, HAYWARD J., JR., Florida Atlantic University, Urich, Ted R.
- Abstract/Description
-
This study was a descriptive analysis of a population of teachers and administrators in the Broward School District to determine how they perceived the teacher evaluation process as prescribed by the negotiated contract between the Broward Classroom Teachers Association and the School Board of Broward County for the school years of 1979 through 1982. A random sample of teachers produced responses from 310 subjects, while the random sample of principals produced responses from eighty subjects....
Show moreThis study was a descriptive analysis of a population of teachers and administrators in the Broward School District to determine how they perceived the teacher evaluation process as prescribed by the negotiated contract between the Broward Classroom Teachers Association and the School Board of Broward County for the school years of 1979 through 1982. A random sample of teachers produced responses from 310 subjects, while the random sample of principals produced responses from eighty subjects. For purposes of this study, subjects were grouped as either (1) Teacher, Elementary; (2) Teacher, Secondary; (3) Principal, Elementary; or (4) Principal, Secondary. The two independent variables in the study consisted of subject by Position and Level. Each independent variable had subjects in two levels; Principals and Teachers in the instance of Position, Elementary and Secondary in the instance of Level. When the data were analyzed, the major hypothesis tested revealed that principals more than teachers regard the evaluation process as an occasion for meaningful dialogue; advance notice of the time for formal evaluation was of little concern to either group; and, both groups perceived evaluations as a means for improving instruction. From the secondary findings, one significant fact was that both teachers and administrators felt that negotiating the evaluation procedures was of little importance; administrators did not feel frustrated nor hindered by some of the procedures. The author expected teachers to be more supportive of the procedures than administrators, however, both groups were essentially neutral.
Show less - Date Issued
- 1984
- PURL
- http://purl.flvc.org/fcla/dt/11853
- Format
- Document (PDF)
- Title
- STUDENT ACHIEVEMENT IN INTERMEDIATE ACCOUNTING THEORY WHO COMPLETED PRINCIPLES OF ACCOUNTING AT A COMMUNITY/JUNIOR COLLEGE OR THE SUBSTITUTE COURSE AT FLORIDA ATLANTIC UNIVERSITY.
- Creator
- HOLLIS, JOSEPH EARL., Florida Atlantic University, Council, Charles T.
- Abstract/Description
-
The purpose of this study was to examine the level of academic achievement in Intermediate Accounting Theory I and II of community/junior college students who completed Principles of Accounting I and II before matriculating at Florida Atlantic University and those who followed an alternate track and completed a substitute course at Florida Atlantic University after matriculation. The Scheffe method of multiple comparison was used to determine if significant differences exist at the .05 level....
Show moreThe purpose of this study was to examine the level of academic achievement in Intermediate Accounting Theory I and II of community/junior college students who completed Principles of Accounting I and II before matriculating at Florida Atlantic University and those who followed an alternate track and completed a substitute course at Florida Atlantic University after matriculation. The Scheffe method of multiple comparison was used to determine if significant differences exist at the .05 level. Sixteen hypotheses were tested comparing academic achievement in Principles of Accounting I and II or the substitute course with Intermediate Accounting I and II. Students were grouped as matriculating from Broward Community College, Miami-Dade Community College, Palm Beach Junior College, other Florida community/junior colleges, out-of-state community colleges or having completed the substitute course. These groups were then sub-grouped by grade level achievement in Principles of Accounting I and II. The F probabilities should be interpreted in light of the small N within some of the sub-groups. There is no significant difference between the grades received in Intermediate Accounting Theory I and II by students who completed Principles of Accounting I and II at a junior college and those who completed the substitute course at Florida Atlantic University. Significant differences do exist within some junior colleges when grouped by grade scale, but there seems to be no consistent pattern. The substitute course students had significant differences in Intermediate Accounting Theory I and II with substitute course.
Show less - Date Issued
- 1976
- PURL
- http://purl.flvc.org/fcla/dt/11673
- Subject Headings
- Accounting--Study and teaching (Higher)
- Format
- Document (PDF)
- Title
- An investigation of the availability, distribution, and usability of the comprehensive annual financial reports of United States cities.
- Creator
- Hall, Douglas Roger, Jr., Florida Atlantic University, Washington, Charles W.
- Abstract/Description
-
Accountability is the cornerstone of democracy. Fiscal accountability is particularly important to an electorate. The system of fiscal accountability developed by the Governmental Accounting Standards Board is too complex and technical for the public, being beyond all but specially trained accountants and finance professionals. This dissertation investigates how the audited annual financial reports of U.S. cities are distributed and understood. The problem of governmental accounting...
Show moreAccountability is the cornerstone of democracy. Fiscal accountability is particularly important to an electorate. The system of fiscal accountability developed by the Governmental Accounting Standards Board is too complex and technical for the public, being beyond all but specially trained accountants and finance professionals. This dissertation investigates how the audited annual financial reports of U.S. cities are distributed and understood. The problem of governmental accounting complexity is treated as one of systemic nature due to the needs of a broad range of users and the wide range of uses for information contained in the audited annual financial reports. The study population is over 500 U.S. cities. The study methodology has three parts: a descriptive analysis of sample documents; a survey of finance directors requesting information about distribution of the reports, their perceptions on usability of the audited annual financial reports, and their opinions about the evolution of governmental accounting theory and practice. The third part of the study identified a cluster group sample of the general public who volunteered to complete a written survey and participate in a practical usability test with actual comprehensive annual financial report documents. The study concluded that there has been little or no marketing of the audited annual financial reports, actual distribution is exceedingly sparse, and that the general public has limited knowledge of the existence or availability of the document or the ability to make use of the comprehensive annual financial reports in their present form. Recommendations are made to release the audited annual reports in less time, free of charge, with wide distribution. The CAFR model needs to be simplified, organized better, and common language used. GASB, the Government Finance Officers Association, public administrators, and government finance professionals must accept the need to educate the public. Public administrators need to assert themselves when governmental accounting and financial reporting changes are contemplated.
Show less - Date Issued
- 2001
- PURL
- http://purl.flvc.org/fcla/dt/11969
- Subject Headings
- Financial Accounting Foundation --Governmental Accounting Standards Board, Municipal finance--United States--Accounting, Local finance--Accounting--Standards--United States, Cities and towns--United States
- Format
- Document (PDF)
- Title
- CEO departure and discretionary accounting choices.
- Creator
- Mortimer, John William, Florida Atlantic University, Hopwood, William S.
- Abstract/Description
-
Dechow and Sloan [1991] investigate the hypothesis that CEOs, during their final years of office (the "horizon" years), manage discretionary expenditures to improve short-term earnings performance. Using a sample of 261 firm-years, this study extends the Dechow and Sloan model by including additional control variables. It also examines whether the discretionary components of earnings (discretionary accruals, discretionary revenue, and capital expenditures) provide departing CEOs a monetary...
Show moreDechow and Sloan [1991] investigate the hypothesis that CEOs, during their final years of office (the "horizon" years), manage discretionary expenditures to improve short-term earnings performance. Using a sample of 261 firm-years, this study extends the Dechow and Sloan model by including additional control variables. It also examines whether the discretionary components of earnings (discretionary accruals, discretionary revenue, and capital expenditures) provide departing CEOs a monetary incentive (bonuses) to manipulate these income factors. The general results of this study do not support the hypothesis that departing CEOs have a greater monetary incentive than incumbent CEOs to manage discretionary earnings to maximize their bonus schemes. A possible reason this hypothesis is not supported may be due to the fact that previous research has treated incumbent and departing CEOs as separate, homogeneous samples a treatment that the extant income-smoothing and CEO turnover research suggests may be flawed. Income smoothing literature provides evidence that some incumbent CEOs manipulate earnings to a predetermined target to avoid a "ratcheting" of expectations while CEO turnover research suggests that the "relay" process mitigates some departing CEOs' manipulations of earnings. Since agency theory predicts that management of accounting earnings will vary between groups of incumbent and departing CEOs, as well as within these two groups, the present study partitions the sample on the median change in operating cash flows for departing CEOs. This study finds evidence that departing CEOs in the above-median partition do increase income-enhancing discretionary accruals in their final year with the firm, and they have a significant economic incentive to do so. However, there is apparently no economic incentive for departing CEOs with an above-median change in operating cash flows to reduce discretionary revenue or capital expenditures.
Show less - Date Issued
- 2001
- PURL
- http://purl.flvc.org/fcla/dt/11974
- Subject Headings
- Chief Executive Officers--Salaries, etc, Accrual Basis Accounting, Disclosure in Accounting, Incentives in Industry
- Format
- Document (PDF)
- Title
- Cognitive Dissonance and Auditor Professional Skepticism.
- Creator
- Adikaram, Ruwan K, Higgs, Julia, Florida Atlantic University, College of Business, School of Accounting
- Abstract/Description
-
I show that auditors experience cognitive dissonance when they fail to take appropriate professionally skeptical (hereafter PS) action in line with high PS judgment I specifically show that cognitive dissonance leads auditors to revise their attitudes on low ranking audit actions upward and lower their risk assessments, consequently, lower overall professional skepticism I also find that auditor cognitive dissonance leads to exaggerated ex-post auditor self-assessments professional skepticism...
Show moreI show that auditors experience cognitive dissonance when they fail to take appropriate professionally skeptical (hereafter PS) action in line with high PS judgment I specifically show that cognitive dissonance leads auditors to revise their attitudes on low ranking audit actions upward and lower their risk assessments, consequently, lower overall professional skepticism I also find that auditor cognitive dissonance leads to exaggerated ex-post auditor self-assessments professional skepticism Professional skepticism is fundamental to performing an audit according to auditing standards and critical to audit quality Extant research that investigates treatments to enhance professional skepticism predominantly treats both skeptical judgment and skeptical action as analogous outcomes of professional skepticism If, however, there is a breakdown between PS judgment and PS action, the overall benefits of these treatments will be trivial I show that cognitive dissonance due to the incongruence between PS judgments and PS actions leads to an unforeseeable corollary of lower overall professional skepticism I also demonstrate a specific mechanism of how auditor incentives lead to lower professional skepticism, hence, lower audit quality Both researchers and practitioners can benefit from this study by better understating the intricacies in the critical link between PS judgment and action Additionally, I provide an empirical investigation of the components in Nelson’s (2009) model of professional skepticism and extend the model to reflect the intricacies between PS judgment and PS action I test my hypotheses via a three-group research design with attitude change as a proxy measure of cognitive dissonance
Show less - Date Issued
- 2016
- PURL
- http://purl.flvc.org/fau/fd/FA00004772
- Subject Headings
- Cognitive dissonance, Auditing--Standards, Accounting--Standards, Accounting--Moral and ethical aspects, Accountants--Professional ethics, Auditors--Psychology, Behaviorism (Psychology)
- Format
- Document (PDF)
- Title
- Obfuscation of Rent Extraction Behavior: Evidence from Investment Inefficiency.
- Creator
- Mammadov, Babak, Thevenot, Maya, Florida Atlantic University, College of Business, School of Accounting
- Abstract/Description
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I investigate the association between rent extraction and qualitative/quantitative characteristics of 10-K filings (i.e. readability, financial statement comparability and earnings transparency), subject to existing monitoring constraints. This study focuses on one type of such rent extraction – investment inefficiency (i.e. overinvestment or underinvestment), as extant research provides evidence that it provides personal benefits to managers, often at the expense of shareholders. Managers...
Show moreI investigate the association between rent extraction and qualitative/quantitative characteristics of 10-K filings (i.e. readability, financial statement comparability and earnings transparency), subject to existing monitoring constraints. This study focuses on one type of such rent extraction – investment inefficiency (i.e. overinvestment or underinvestment), as extant research provides evidence that it provides personal benefits to managers, often at the expense of shareholders. Managers have incentives to invest inefficiently but such behavior may be undesirable and result in negative consequences to the manager, such as turnover. Therefore, I expect that managers are likely to obfuscate information in order to make it difficult for investors to detect investment inefficiency, although monitoring over financial reporting may limit their ability to do so. I test whether monitoring over financial reporting reduces information obfuscation. Last, I study the joint effects of investment inefficiency and information obfuscation on CEO turnover and compensation. I expect that investment inefficiency is positively associated with information obfuscation but this relation is weaker for firms with effective monitoring mechanisms over financial reporting. Further, I examine how these factors affect CEO disciplining. Managers get disciplined for inefficient investment decisions. Obfuscating information makes it difficult for investors to evaluate managers’ investment decisions. Therefore, I examine whether information obfuscation prevents managers from being disciplined as a result of inefficient investment behavior. I find that investment inefficiency is positively associated with information obfuscation. Managers are more likely to obfuscate information for overinvestment type of inefficiency as opposed to underinvestment. Further, the results suggest that, while internal monitoring does not reduce information obfuscation, external monitoring constrains information obfuscation. I find that external monitoring (i.e. auditors) provide more stringent monitoring by reducing information obfuscation. I do not find support for my last prediction that information obfuscation prevents disciplining of CEOs.
Show less - Date Issued
- 2018
- PURL
- http://purl.flvc.org/fau/fd/FA00005952
- Subject Headings
- Financial statements, Misleading financial statements, Investments--Accounting
- Format
- Document (PDF)
- Title
- COMPETENCIES NECESSARY FOR PRINCIPALS TO ADMINISTER INTERNAL ACCOUNTS IN SECONDARY SCHOOLS OF FLORIDA (STUDENT ACTIVITIES, EXTRA-CURRICULAR, SUPERVISION).
- Creator
- POLE, FRANCINE LESTOURGEON., Florida Atlantic University
- Abstract/Description
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The primary purpose of this study was to survey secondary school principals and district finance officers of Florida, so as to identify and evaluate the competencies which they deem necessary for administering the internal accounts. Additionally, the study sought to ascertain if there was agreement within and between the two respondent groups concerning the following: (1) the necessary competencies; (2) the level of importance of the specified competencies; (3) the most appropriate time for...
Show moreThe primary purpose of this study was to survey secondary school principals and district finance officers of Florida, so as to identify and evaluate the competencies which they deem necessary for administering the internal accounts. Additionally, the study sought to ascertain if there was agreement within and between the two respondent groups concerning the following: (1) the necessary competencies; (2) the level of importance of the specified competencies; (3) the most appropriate time for acquiring and developing the competencies; (4) the possible relationships between the indicated competencies and selected demographic characteristics. To examine these areas the survey research design was designated as appropriate and a questionnaire was designed to seek the necessary information. The individuals to be surveyed were from two populations. The first population consisted of the 67 district finance officers of Florida. Due to the small size of this population all members were surveyed. Of the 67 finance officers, 60 returned usable questionnaires. This gave an 89.5% return rate. The second population was randomly drawn from the 297 secondary schools of Florida. A sample size of 30%, or 89, of the 297 secondary schools was represented. Of the 89 principals, 72 returned usable questionnaires. This gave an 80.8% return rate. To analyze the areas under consideration, research questions and null hypotheses were developed. The statistics employed to perform the analysis were both descriptive and inferential. The descriptive statistics utilized were the following: means, standard deviations, minimum and maximum values and percentages. The inferential statistics employed were the one-way analysis of variance and the chi-square test for significance. The results indicated the following: (1) all competencies were perceived as necessary and, as groups, rated very to moderately important; (2) all competencies required an educational medium which, as groups, was perceived to be on-job training; (3) enrollment of the school may possibly affect the competency group, Business Management.
Show less - Date Issued
- 1986
- PURL
- http://purl.flvc.org/fcla/dt/11881
- Subject Headings
- High school principals--Florida, Schools--Accounting
- Format
- Document (PDF)
- Title
- Literacy instruction, personnel, and governance in state-designated highest and lowest performing schools.
- Creator
- Earley, Deborah L., Florida Atlantic University, Matanzo, Jane Brady
- Abstract/Description
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The A+ Plan for Education (A+ Plan), the basis of Florida's school accountability system, was instituted in 1999. Public schools are graded from highest (A) to lowest (F) based on student performance on the statewide assessment, the Florida Comprehensive Assessment Test (FCAT). This study investigated the impact of the school grading policy of the A+ Plan on literacy instructional practices, personnel, and governance procedures between Florida public schools graded A and F. Twenty-six...
Show moreThe A+ Plan for Education (A+ Plan), the basis of Florida's school accountability system, was instituted in 1999. Public schools are graded from highest (A) to lowest (F) based on student performance on the statewide assessment, the Florida Comprehensive Assessment Test (FCAT). This study investigated the impact of the school grading policy of the A+ Plan on literacy instructional practices, personnel, and governance procedures between Florida public schools graded A and F. Twenty-six randomly selected schools from 15 school districts agreed to participate. Three groups of participants (N = 136) were associated with the participating schools: (1) Grades 3--10 classroom teachers who taught reading, writing, and/or language arts during the 2001--02 school year; (2) the principal for each school; and (3) the District Director of Curriculum or equivalent position. Teacher participants (n = 107) responded to the Literacy Instructional Practices Survey. This survey collected data concerning the frequency of use of instructional practices related to literacy in six composites: Instructional Groupings, Materials, Decoding Teaching Practices, Comprehension Teaching Practices, Writing Teaching Practices, and Classroom Activities. T-tests were employed to compare the Composite mean scores for the A and F school teacher participants (a = .05). Results revealed no significant differences in the types and frequency of literacy instructional practices between A and F schools. Responses to open-ended questions reported narrowing of curriculum to skills tested by the FCAT and principal expectations to teach to the test. Principal participants (n = 17) and district-level participants (n = 12) completed surveys concerning personnel and school governance practices. Descriptive analyses revealed that 50% of F schools employed Title I literacy teachers compared to 8% of A schools. All principals used informal classroom observation and student achievement on FCAT to evaluate literacy personnel performance. Collaboration among district staff, principals, and teachers concerning school governance decisions was reported. Findings of this study imply that factors other than the types and frequency of literacy instructional practices are affecting a school's grade. Also, high-stakes assessment is impacting curriculum and instruction at A and F schools. Recommendations are made for future research.
Show less - Date Issued
- 2002
- PURL
- http://purl.flvc.org/fau/fd/FADT12016
- Subject Headings
- Educational accountability, Public schools--Florida, Language arts
- Format
- Document (PDF)
- Title
- Executive stock options: The effect on discretionary accruals and earnings manipulation.
- Creator
- Maheshwari, Suneel Kumar, Florida Atlantic University, Hopwood, William S.
- Abstract/Description
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My objective is to evaluate whether managers, when executive stock options (ESOs) are part of their compensation, manipulate earnings by using discretionary accruals (DAs). Earnings manipulation requires managers to have some targets or expectations in mind. The target may be in the form of investors' expectations or the managers' own subjective expectations. Although meeting investors' expectations could result in income smoothing, executives might also manipulate earnings to achieve their...
Show moreMy objective is to evaluate whether managers, when executive stock options (ESOs) are part of their compensation, manipulate earnings by using discretionary accruals (DAs). Earnings manipulation requires managers to have some targets or expectations in mind. The target may be in the form of investors' expectations or the managers' own subjective expectations. Although meeting investors' expectations could result in income smoothing, executives might also manipulate earnings to achieve their own subjective expectations for private gains. I develop and test three hypotheses using logistic regression to address the issue of earnings manipulation by executives. The first hypothesis evaluates the likelihood of income smoothing when in-the-money ESOs (RVESO) are exercisable. RVESO represents the total value of exercisable ESOs in-the-money for the top five executives as disclosed in the proxy statement. The second hypothesis addresses the likelihood of earnings manipulation when a substantial dollar value of in-the-money ESOs are exercisable. The third hypothesis uses prior-period DAs to consider the possible effect of the value realized from exercise of ESOs on earnings manipulation. The empirical results of this study provide evidence that executives are not more likely to manipulate earnings when ESOs are part of the compensation package. Results indicate that an increase in the value of the RVESO does not increase the likelihood that management will use DAs to smooth income or manipulate earnings. One explanation of these findings could be that managers have some restraints on their actions that includes, but are not limited to, the presence of audit committees, vigilance by external auditors, the existence of an efficient labor market, and financial institutions that hold a sizable percentage of equity. Dechow, Sloan, and Sweeney (1996) state that fear of exposure and consequent penalty by the stock market is another constraint on managerial actions.
Show less - Date Issued
- 1998
- PURL
- http://purl.flvc.org/fcla/dt/12584
- Subject Headings
- Executives--Salaries, etc, Employee Stock Options, Accrual Basis Accounting
- Format
- Document (PDF)