bluuebunny/crossref_metadata_2025 huggingface dataset:
Accounting Research in the German Language Area—First Half of the 20th Century
Authors: Mattessich Richard , Küpper Hans‐Ulrich
Published: January 2008

After some introductory words about the preeminence of German accounting research during the first half of the 20th century, the paper offers a survey of the most important theories of accounts classes that still prevailed during the first two decades or longer. Following World War I, the issue of hyperinflation in Austria and Germany stimulated a considerable amount of original accounting research. After the inflationary period, a series of competing Bilanztheorien, discussed in the text, dominated the scene. Two figures emerged supremely from this struggle. The first was Eugen Schmalenbach, with his “dynamic accounting”, a series of further important contributions to inflation accounting, to the master chart of accounts, to cost accounting, and to other areas of business economics. The other scholar was Fritz Schmidt, with his organic accounting theory that promoted replacement values and his emphasis on the profit and loss account, no less than the balance sheet. The gamut of further eminent personalities, listed in chronological order, contains the following names: Schär, Penndorf, Leitner, Gomberg, Nicklisch, Rieger, Prion, Osbahr, Passow, Dörfel, Sganzini, Walb, Calmes, Kalveram, Meithner, Lion, Töndury, Mahlberg, le Coutre, Geldmacher, Max Lehmann, Leopold Mayer, Karl Seidel, Alfred Isaac, Mellerowicz, Seyffert, Beste, Gutenberg, Käfer, Seischab, Kosiol, Münstermann, and others. Separate Sections or Sub‐Sections are devoted to charts and master charts of accounts in German accounting theory, as well as to cost accounting and the writing of accounting history.
THE INCOME VELOCITY OF MOENY: SOME THEORETICAL AND EMPIRICAL ASPECTS
Authors: KAREKLAS PETROS
Published: January 2008

“Velocity of money is a ‘purely statistical concept’ of no causal significance, which varies automatically with changes in the quantity of money in relation to total expenditure,” as concluded in the late 1950s by the well‐known Radcliffe Committee in Great Britain (Kaldor, p. 19). This view, although it has been supported from time to time by prominent economists such as Kaldor and Kahn, is not generally accepted. Velocity and its ‘stability,’ which is closely related to the stability of the demand for money, are considered by many economists to be very important in economic affairs and to constitute an important foundation of the monetarist doctrine.
COINTEGRATION OF REGIONAL GSP WITH NATIONAL GDP
Authors: HEFNER FRANK L.
Published: January 2008

Gross state product for the eight BEA regions are tested for stationarity and for cointegration with national gross domestic product. All eight regional GSP and GDP are characterized by a random walk. None of the eight regional GSP are cointegrated with GDP. Between the regions, the results are mixed, however we conclude that there is no cointegration between any of the regions. The results imply that there is no equilibrating mechanism that keeps the regions from drifting apart from each other or from national GDP.
Dynamic Nature Of Private Investment Function And Its Determinants In Developing Countries
Authors: Zebib Mohammad , Muoghalu Michael
Published: January 2008

This paper suggests that private investment expenditure is determined by the changes in domestic credit and net capital inflow to the private sector. Any increase in government investment increases private investment through the increase in the changes in private output (contributory effect) and decreases private investment through the decrease in the availability of the banking system's domestic credit and net inflow of capital to the private sector.
ON THE ROLE OF FISCAL POLICY IN THE U.S. ECONOMY
Authors: Darrat Ali F. , Hamed Anas H.
Published: January 2008

Contrary to the restrictive bivariate results of Saunders (1995), our findings from open‐economy multivariate models accord with the conventional IS/LM apparatus and decisively support the use of fiscal policy as a key macrostablization tool in the U.S. economy. We provide theoretical explanations for our results and produce empirical evidence for their robustness.
IS ZONING A POSITIVE‐SUM GAME?
Authors: Asadoorian Malcolm O.
Published: January 2008

Zoning is typically deemed a negative‐sum game accompanied by a call for the establishment of a market for development rights. Using a formal one‐stage game of a typical zoning lottery, I demonstrate that zoning is not exclusively negative‐sum, but can also be positive‐sum, even with internalized social costs.
FORECASTING CORPORATE PERFORMANCE: VECM COMPARISON WITH OTHER TIME SERIES MODELS
Authors: Darrat Ali F. , Zhong M. , Shelor R.M. , Dickens R.N.
Published: January 2008

This study uses the Vector Error Correction Model (VECM) to forecastex postchanges in earning and stock prices of six major DOW companies as well as of the S&P 500 market index. Compared to ARIMA and GARCH models, results from four decades of data are supportive of the forecasting ability of the VECM process.
SOME RECENT INTERNATIONAL EVIDENCE ON THE DEMAND FOR MONEY
Authors: Ewing Bradley T. , Payne James E.
Published: January 2008

This paper examined the cointegrating properties of narrow money demand. Results suggest income and interest rate are sufficient for the formulation of a long‐run stable demand for money in Australia, Austria, Finland, Italy, UK, and US. However, for Canada, Germany, and Switzerland, the nominal effective exchange rate should be incorporated.
AN EMPIRICAL INVESTIGATION OF THE COMOVEMENT BETWEEN STOCK MARKET INDEXES
Authors: Parker Michael E. , Rapp Tammy
Published: January 2008

The various stock market indexes are interrelated due to the similar fundamentals which determine the movement in the respective markets. Applying the efficient market hypothesis, an investor should not be able to predict the movement of one index based on the past movement of another index. If the stock markets are efficient, then no long term comovement should exist between stock market indexes. The existence of a long term relation can be tested by use of cointegration tests and common serial correlation feature tests. If no cointegration exists and if no common serial correlation feature exists, then we would not be rejecting efficiency of the stock markets. Using the S&P 500 stock index, the Wilshire 5000 index, and the NASDAQ index, the Hang Seng index, the Footsie index, and the Nikkei index to proxy world stock market indexes, the empirical results of the cointegration and common feature test support the efficiency of the stock markets in most instances. However, the Footsie index consistently demonstrated a relation with the three US stock market indexes included in the study.
Foreign Trade, Human Capital and Economic Growth in Taiwan: A Re‐examination
Authors: Darrat Ali F. , Hsu Maxwell K. , Zhong Maosen
Published: January 2008

This paper re‐examines recent claims in the literature that foreign trade (economic openness) plays no role in the Taiwanese economic growth once human capital is taken into account. We show that such a claim lacks weight and is primarily the outcome of model misspecification. In the context of properly specified models, results from cointegration, error‐correction models, and variance decompositions all suggest that economic openness is a significant catalyst of growth in Taiwan over and above any growth contribution of human capital accumulation.
PORTFOLIO DIVERSIFICATION FOR LONG HOLDING PERIODS: HOW MANY STOCKS DO INVESTORS NEED?
Authors: DOMIAN DALE L. , LOUTON DAVID A. , RACINE MARIE D.
Published: January 2008

Finance textbooks typically state that 8 to 20 stocks can provide adequate diversification for a portfolio. However, these recommendations usually assume a short time horizon such as one year. We examine 20‐year cumulative rates of return and ending wealth from an initial $100,000 investment allocated among 100 large U.S. stocks. Probability distributions obtained from simulations illustrate the shortfall risk faced by investors who own fewer titan 100 stocks. Five percent of the 20‐stock portfolios have ending wealth shortfalls exceeding 28%. These findings suggest that 8 to 20 stocks may be insufficient for long‐term investors.
FURTHER EVIDENCE ON THE COMPARATIVE EFFICIENCY OF CHINESE ‘A’ AND ‘B’ SHARES
Authors: WANG J. , BURTON B.M. , HANNAH G.M.
Published: January 2008

This study examines differences in the extent of predictability in the pricing of the two main classes of equity traded in China, namely: A shares (available to Chinese investors) and B shares (traditionally available only to non‐Chinese investors). The study extends previous work by conducting a wider range of analyses and extending the sample period until the relaxation of rules preventing domestic investors from purchasing B shares. The results suggest that earlier evidence of greater predictability in the pricing of B shares is not entirely robust to changes in the method of analysis, and may only partially explain why Chinese authorities have recently decided to widen participation in the B market.
AN EMPIRICAL STUDY OF RELATIVE EFFICIENCY OF THE BANKING INDUSTRY IN BAHRAIN
Authors: HASSAN M.K. , AL‐SHARKAS A. , SAMAD A.
Published: January 2008

The paper investigates relative efficiency of the banking industry in Bahrain by employing a panel of 31 banks for the years 1998 and 2000. We employ non‐parametric (Data Envelopment Analysis) to examine five efficiency measures, namely, cost, allocative, technical, pure technical and scale efficiency scores. We also investigate the conventional accounting measures of performance, and correlate them with five measures of efficiency to investigate whether higher accounting performance impact the bank cost efficiency. Our results show that, on the average, the banking industry in Bahrain is profitable with average ROE and ROA being 10.36% 1.622% in 1998 while 13.49% and 2.097% in 2000 respectively. The average allocative efficiency (inefficiency) is about 73% (37%), whereas the average technical efficiency (inefficiency) is about 56% (78%). This indicates that the dominant source of inefficiency in Bahrain banks is due to technical inefficiency rather than allocative inefficiency, which is mainly attributed to diseconomies in scale. Overall, average scale efficiency (inefficiency) is about 79% (26%), and average pure technical efficiency (inefficiency) is about 71% (41%), suggesting that the major source of the total technical inefficiency for Bahrain banks is pure technical inefficiency (input related) and not scale inefficiency (output related). The results also indicate that all banks have improved their efficiency levels and experienced some gains in productivity. Finally, regression analysis is used to investigate the determinants of the overall efficiency scores. We find that larger and profitable banks are more likely to operate at a higher level of efficiency. Also, another finding reveals that market power plays an important role in cost and technical efficiencies. Notably, banks with greater contribution from shareholders tend to be more technical efficient
The Usefulness of Human Resource Costing and Accounting
Authors: JOHANSON ULF , NILSON MARIANNE
Published: January 2008

Human resource costing and accounting (HRCA) has been the subject of much model construction but there has been little research as to how these models are utilised in practical decision‐making and implementation. This issue is addressed in three studies covering different aspects of HRCA. The first study shows that decisions are influenced in an experimental situation by HRCA information in such a way that the decisions are made in accordance with the content of the information. In the second study, the stimulating and inhibiting factors of force‐field analysis are used to examine a possible implementation of the methods of HRCA. In the third study, developments some years after a number of managers have come into contact with HRCA are examined. The conclusion is that HRCA has been useful as a basis for decisions or actions concerning human resource decision‐making
The Motivational Impact of Utility Analysis and HR Measurement
Authors: BOUDREAU JOHN
Published: January 2008

This paper addresses the fact that many companies lack insight into the uses of utility theory in HR. Most utility research has been conducted with a view to developing measurement systems rather than measurement effects. Some selected theories of information effects are presented, together with their implications for the application of HR measurement systems. These theories relate to information receivers and goals , HR measurement as decions support as well as decision theory and bias. Special attention is devoted to HR measurements as persuasion , with reference to transmission, receiver and organisation characteristics. Other factors of importance are the selfinterest of senders and the role of “fashion setting” for innovation. One conclusion is that the study of the effects of HR measurements on their receivers provides a fruitful field for empirical research.
Accounting for the Worth of Employees: Is the Discipline Finally Ready to Respond to the Challenge?
Authors: ROSLENDER ROBIN
Published: January 2008

Accounting for the worth of employees continues to attract the attention of accounting scholars. After more than thirty years of interest in the topic, however, comparatively little progress has been made in responding to the challenge of taking humans into account. A major reason for this may be that accounting for the worth of employees has hitherto been too closely bound up with the problematics of financial accounting and financial reporting. This has resulted in the widespread practice of conceptualising employee worth in terms of the hard accounting numbers normally associated with the discipline. Drawing on recent developments in the fields of both accounting for strategic positioning and critical accounting, this paper explores the promise which the emergence of a concern with the provision of soft(er) accounting information holds for any future attempts to account for employee worth.
The Intangible Assets Monitor
Authors: ERIK SVEIBY KARL
Published: January 2008

A “Swedish Community of Practice” emerged during the mid 1980s in Sweden. The “community” today follows two tracks; one is Human Resource Costing & Accounting (HRCA) and the other is a nonfinancial measurement system for intangible assets based on a theory originally brought forward by a work group consisting of members from several Swedish knowledge companies, the so called “Konrad Group.” This article describes the development of the latter track. Inspired by McLuhan, it is suggested that individuals in organizations create external and internal structures to express themselves. Indicators can be created that monitor External Structure (Customers and Suppliers), Internal Structure (Organization) and People's Competence. The indicators can be incorporated into a management information system. Indicators that monitor renewal, efficiency and stability are preferred. A matrix framework, called “The Intangible Assets Monitor,” is suggested for presenting the indicators. A number of generic indicators are defined under each heading and suggestions for interpretation and examples of how Swedish companies use the indictors are cited.
Measuring Personnel through Human Resources Accounting Reports: A Procedure for Management of Learning. The Hospital Sector in Northwest Stockholm
Authors: OLSSON BIRGITTA
Published: January 2008

In the beginning of 1990s preparations were underway in Sweden to enact a law aimed at making accounting on personnel in the annual reports compulsory. An official investigation resulted in a special report on how to design and report on it. The expectations and the discussions that followed resulted in considerable voluntary implementation of “personnel economics reports” or “human resources accounting reports” (HRA reports) in companies and municipalities. Preparations were made through education and training to acquaint people with the new procedure of reporting on personnel. The present article gives a description of one the most frequently used models of accounting on personnel elaborated during the 1990s in Sweden. In this article the experiences from a training programme with the aim of implementing this model for a group of hospital clinics, The Hospital Sector in Northwest of Stockholm, are described and analysed.
Intellectual Capital Disclosure through Annual Reports: A Study of the Swedish Retail Industry
Authors: OLSSON BIRGITTA
Published: January 2008

This article is based on a content analysis of intellectual capital (IC) in annual reports from 1998 to 2002. The aim of the study was to compare the content of voluntary information on IC in the corporate annual reports covering a period of 4 years. The results from the study, based on 15 Swedish companies in the retail sector, show that for the year 2002 the information on human capital in the annual reports was, on average, 8.4% of the total text mass, with 14.9% pertaining to external capital, 21.2% to process capital and 7.4% about innovation capital. Further, the amount of IC information in 2002 increased when compared with the amount of information in 1998. The findings indicate that companies dealing with daily goods provide more information about IC in their annual reports than fashion companies.
A GENERALISED METHOD OF MOMENTS TEST OF MEAN VARIANCE EFFICIENCY IN THE AUSTRALIAN STOCK MARKET
Authors: Faff R.W. , Lau S.
Published: January 2008

Standard multivariate tests of mean variance efficiency (MVE) have been criticised on the grounds that they require regression residuals to have a multivariate normal distribution. Generally, the existing evidence suggests that the normality assumption is questionable, even for monthly returns. MacKinlay and Richardson (1991) developed a generalised method of moments (GMM) framework which provides tests which are valid under much weaker distributional assumptions. They examined monthly US data formed into size based portfolios, for mean‐variance efficiency relative to the Sharpe‐Lintner CAPM. They found that inferences regarding mean‐variance efficiency can be sensitive to the test considered. In this paper we further investigate their GMM tests using monthly Australian data over the period 1974 to 1994. We extend upon their analysis to consider an alternative version of their GMM test and also to examine a zero‐beta version of the CAPM. Similar to the US case, our results also indicate sensitivity of inferences to the tests used. Finally, while we find that the GMM tests generally provide rejection of mean‐variance efficiency, tests involving the zero‐beta CAPM, particularly when a value‐weighted market index is used, prove less prone to rejection.
COMPLIANCE COSTS OF CORPORATE INCOME TAXATION IN MALAYSIA, 1995
Authors: Loh A. , Ariff M. , Ismail Z. , Shamsher M. , Ali M.
Published: January 2008

This is the first report on estimates of tax compliance costs of Malaysian companies. Compliance cost is an unavoidable cost of doing business and arises from activities associated with the reporting of income for tax purpose. The average compliance cost per company was estimated to be RM68,836, which is RM0.26 per RM 1,000 sales turnover. Sixty‐one percent of compliance cost was incurred in computation‐related activities and 39 percent in tax planning activities. Measured relative to revenue, the compliance cost is higher for smaller companies than for larger companies, which suggests that compliance cost is regressive, a finding similar to those reported in other countries.
Accounting, Transparency and the Culture of Spin: Re‐Orientating Accounting Communication in the New Millennium
Authors: Gallhofer Sonja , Haslam Jim , MORROW STEPHEN , Sydserff Robin
Published: January 2008

Accounting is problematically shaped by a culture of spin. In the practice of accounting, presentational management risks assuming greater importance than an open and clear communication motivated by a concern to serve the public interest. We elaborate upon this problematic feature of contemporary practice and suggest pointers towards responding to the challenge it poses in terms of a better way for accounting in the new millennium.
The Past is the Future: Constructing Public Sector Accountants
Authors: Lapsley Irvine , Oldfield Rosie
Published: January 2008

This paper seeks to explore the role of public sector accountants in the new millennium. Our contention is that the past (in terms of public sector reforms and ‘traditional’ accounting practices) will strongly influence the public sector accountant in the future. In order to illustrate this, we consider the key reforms which have taken place within the public sector over the last two decades, and the role of the accountant therein. We assess the extent to which these changes will continue to impact the accountant in the future. We also consider that the accountant is constrained by the past, in terms of the continuing dominance of certain accounting practices. The role of the accountant in the new millennium can therefore be seen in terms of both continuity and change.
The Annual Reports of New Zealand Electricity Companies: Assessing Quality
Authors: Hooks Jill , Coy David , Davey Howard
Published: January 2008

Corporatisation of the New Zealand electricity industry during the 1990s increased the need for improved accountability. The publication of annual reports is one of the prime ways in which organisations meet their accountability obligations. This paper describes the development of a disclosure index from a public accountability perspective and reports the results of its application to the 1999 annual reports of the 33 electricity retail and distribution companies. The index was developed with the support of a panel representing 15 stakeholder groups. It is designed to assess the comprehensiveness (both in extent and quality) of annual report disclosures and incorporates a best‐practice model of annual reporting. Key areas of inadequate disclosure relate to performance measures (financial and non‐financial), segmental information, asset valuation details, and the cost of electricity purchased / generated. Improved disclosure to meet best‐practice guidelines would contribute to improved communication between companies and stakeholders.
Traditional and Western Accounting Disclosure Models for Pacific Island Countries' Entities
Authors: BROWN ALISTAIR M. , TOWER GREG
Published: January 2008

Three reporting models — Traditional, Western‐narrow and Western‐broad — are scrutinised to delineate the basis of accounting practices for the Pacific Island Countries' (PIC) entities for the years ending 1997–1999. Evidence is obtained about the filing of reports; timeliness of reports; and disclosure patterns. Patterns are measured via examination of twenty Aggregated Accounting Disclosures (AAD) items and sub‐indices. A significant number of entities completely fail to generate annual reports, or are several years behind the reporting cycle or are unwilling to disseminate their reports. The reporting patterns for PIC entities showed an overall AAD disclosure trend of 52% with specific patterns being 76% of Core Statement Accounting (CSA), 42% Financial Related Accounting (FRA) and 40% Non‐financial Related Accounting (NRA) over the three years. The lack of current annual reports and timely reports (at least 50%) fits much more with the Traditional model than with either Western model.
The Efficacy of Professional Education Programmes in Developing Competencies: A Critical Assessment of the PAS Programme of the Institute of Chartered Accountants of New Zealand
Authors: Rainsbury Elizabeth , Weil Sidney , Oyelere Peter
Published: January 2008

This paper reports on a study of the efficacy of the Institute of Chartered Accountants of New Zealand's (the Institute) Professional Accounting School (PAS) programme in developing a set of competencies in candidates. The study surveyed Institute candidates' perceptions of their competence levels for 16 specified skills at the commencement and conclusion of the 1999 PAS programme. The findings indicate that candidates perceived their levels of competence, for both cognitive and behavioural skills, to have been significantly improved by the PAS programme. Tests of two secondary hypotheses in the study indicate certain gender‐ and firm‐based differences in the perceived level of competence of candidates. The results of the study provide the Institute with feedback on the PAS programme and facilitate the further development of the programme. Other professional accounting bodies may consider replicating this study using data collected on similar programmes. The results of such studies may then be compared to enhance the existing knowledge of competency development in professional accounting education.
MUTUALITY FOR FOOTBALL CLUBS? LESSONS FROM THE FINANCIAL SECTOR
Authors: ADAMS ANDREW , ARMITAGE SETH
Published: January 2008

The mutualisation of two English third division football clubs in 2001 and the creation of a large number of supporters' trusts make it timely to consider whether there is a case for mutualisation of football clubs. This paper assesses whether mutuality would be of economic benefit for clubs, drawing heavily on the experience of mutuals in the financial sector. Our conclusions are mixed. The economic case rests on the distinctive feature of customer loyalty to a club, presuming this to be much stronger than loyalty to a financial institution. However, club members in a mutual must expect to be called upon to provide financial support.
THE CROSS‐AUTOCORRELATION OF SIZE‐BASED PORTFOLIO RETURNS IN EUROPE
Authors: RATNER MITCHELL , MERIC GULSER , MERIC ILHAN
Published: January 2008

This study examines the cross‐autocorrelation of size‐based portfolio returns in a sample of 15 major European markets using daily data from January 1990 through December 1999. Previous studies have primarily used U.S. data. This study extends previous research by considering results in multiple European exchanges. We examine whether a difference in size‐based portfolios exists by testing cross‐autocorrelation, granger‐causality, and asymmetric responses in the European markets. The results confirm that large stock portfolio returns lead small stock portfolio returns in most European countries, and that cross‐autocorrelation is present both within and between European financial markets.
Accounting Research in the French Language Area: The First Half of the 20th Century
Authors: Degos Jean‐Guy , Mattessich Richard
Published: January 2008

This paper offers a general survey of accounting literature in the French language area of the first half of the 20th century: After a general Introduction, referring mainly to renowned French authors of past centuries, it deals first with historical accounting research (Dupont, de Roover, Gomberg, Vlaemminck, etc). Then come publications in financial accounting theory and its application (Faure, Dumarchey, Delaporte, Penglaou, de Fages de Latour, etc.), followed by a section on cost accounting and managerial control (Julhiet, de Fage de Latour, Detoeuf, Satet, Bournisien, Brunei, Sauvegrai, etc.). Alarger Section is devoted to inflationary problems (Delavelle, Raffegeau and Lacout, Bayard, Léger, Faure, Thomas, Bisson, Dumarchey, Durand, Beaupère, Ratier, etc.). Another large section refers to charts of accounts and public supervision (Otlet, Faure, Blairon, Detoeuf, Caujolle, Fourastié, Gabriel, Chardonnet, Gamier, etc.). The paper closes with a concise general conclusion about this period of transition from a mainly traditional agricultural to an industrial society with its costing problems, its organizational control, and its greater service orientation.
Accounts Manipulation: A Literature Review and Proposed Conceptual Framework
Authors: Stolowy Hervé , Breton Gaétan
Published: January 2008

Accounts manipulation has been the subject of research, discussion and even controversy in several countries including the USA, Canada, the U.K., Australia, Finland and France. The objective of this paper is to provide a comprehensive review of the literature and propose a conceptual framework for accounts manipulation. This framework is based on the possibility of wealth transfer between the different stake‐holders, and in practice, the target of the manipulation appears generally to be the earnings per share and the debt/equity ratio. The paper also describes the different actors involved and their potential gains and losses. We review the literature on the various techniques of accounts manipulation: earnings management, income smoothing, big bath accounting, creative accounting, and window‐dressing. The various definitions of all these, the main motivations behind their application and the research methodologies used are all examined. This study reveals that all the above techniques have common elements, but there are also important differences between them.
Linear Versus Non‐linear Relationships Between Financial Ratios and Stock Returns: Empirical Evidence from Egyptian Firms
Authors: Omran Mohammed , Ragab Ayman
Published: January 2008

Even though most previous research studies suggest that the relationship between common financial ratios and stock returns is linear, recent studies by Mramor and Mramor‐Kosta (1997), and Mramor and Pahor (1998) show that such a linear relationship might not generally exist. In this study, we model the relationships between common financial ratios and stock returns from 1996 to 2000 using linear and non‐linear forms for a sample of 46 Egyptian firms. Our empirical findings suggest that non‐linear relationships exist and are more descriptive of the behavior of stock returns.
Nonfinancial Factors as Predictors of Value Creation: Finnish Evidence
Authors: Laitinen Erkki K.
Published: January 2008

The purpose of the research is to analyse the ability of nonfinancial factors to predict value creation in Finnish technology firms. Nonfinancial factors are defined in terms of a large set of variables on organizational characteristics, strategy, competitive stance, consistency of performance measurement, management control systems (MCSs), and quality of MCSs. Financial ratios are used as a benchmark. The hypotheses are that, firstly, nonfinancial factors include important information for prediction and, secondly, that they provide incremental information over financial ratios. The nonfinancial variables are drawn from a postal survey carried out in 1999. Financial variables for 1998–2001 are obtained for 40 private firms of the 110 firms responding to the survey. Shareholder value is estimated on the basis of the four‐year financial data for 2001. This value divided by the shareholder book value (estimated‐to‐book value ratio, EBV) as well as its drivers are predicted by past non‐financial and financial data. Partial Least Squares (PLS) method is used to analyse the importance of information in prediction. The results give support to the hypotheses. Moreover, the results show that nonfinancial factors yield important incremental information over financial ratios when predicting value drivers, that is, growth, profitability, and risk. Especially, financial ratios are weak in predicting growth.
Economic Development and the Value‐Relevance of Accounting Information — A Disclosure Transparency Perspective
Authors: Kang Tony , Hoong Pang Yang
Published: January 2008

Extending prior studies which suggest that the disclosure practice of developed economy entities tends to be more transparent than that of emerging economy entities, this study investigates whether such differences in the degree of disclosure transparency translate into different levels of value‐relevance of their accounting summary measures (i.e., book values and earnings). Consistent with theories that link disclosure quality with the impact of disclosure on investors' decisions, the evidence indicates that the accounting summary measures of developed economy entities are more value‐relevant than those of emerging economy entities in the U.S. stock market. This finding has some implications for the current policy debate in IASB regarding accounting for emerging economy entities.
Market Structure and Performance in Australian Banking
Authors: Sathye Milind
Published: January 2008

The paper uses annual and pooled data on Australian banks for the years 1994 to 1996 to test the two competing hypotheses of market structure and performance; namely, the structure‐conduct‐performance hypothesis (in concentrated markets firms derive higher profits due to collusion) and the efficiency hypothesis (firms derive higher profits because they are efficient). We test these two and other two intervening hypothesis in the context of the Australian banking market. The results reject the efficiency hypothesis and also the two intermediate hypotheses but there is a lack of strong evidence to reject the structure‐conduct‐performance hypothesis. The results are important because such an empirical investigation has not been conducted in Australia to date. The results suggest that it may be hard to defend abolishing the Four‐pillar Policy (which was a major recommendation of Wallis Report 1997) on efficiency grounds.
The Relation Between the New Corporate Governance Rules and the Likelihood of Financial Statement Fraud
Authors: Persons Obeua S.
Published: January 2008

This study examines the relation between the likelihood of financial statement fraud and certain corporate governance requirements of the Sarbanes‐Oxley Act and the new rules of the NYSE and the NASDAQ stock markets. Results based upon a logit regression analysis on a sample of 111 fraud firms and 111 matched no‐fraud firms indicate that fraud likelihood is lower when audit committee is comprised solely of independent directors and when audit committee members have smaller number of directorships with other companies. Board of director independence, audit committee expertise and nominating committee independence are not significant variables in reducing fraud likelihood. The study also investigates several other corporate governance variables and finds that fraud likelihood is lower when audit committee has longer tenure and chief executive officer is not chairman of the board. These results highlight two new significant aspects of audit committee: the directorships of its members with other firms and the committee members' tenure. The results have direct implications for further improvement of corporate governance.
Voluntary Earnings Disclosures and Corporate Governance: Evidence from France
Authors: Lakhal Faten
Published: January 2008

The primary objective of this paper is to study the relationship between voluntary earnings disclosures and a combined set of corporate governance attributes in France. We use binary logit models to check our hypotheses. The results indicate significant negative associations between voluntary earnings disclosures and ownership concentration, and between voluntary earnings disclosures and a unitary leadership structure. The results also show that French firms providing voluntary earnings disclosures are more likely to have higher foreign institutional investor's ownership, and to offer stock option plans for their executives. These findings shed the light on the corporate governance features that enhance incentives for voluntary earnings disclosures and those affecting these incentives under high ownership concentration.
Performance Measurement in Corporate Governance: Do Mergers Improve Managerial Performance in the Post‐Merger Period?
Authors: Feroz Ehsan H. , Kim Sungsoo , Raab Ray
Published: January 2008

Corporate finance studies of mergers and acquisitions have relied mostly on stock price reactions to evaluate the impact of these events. In this paper, we analyze the performance of a sample of merged firms over a ten year period using a managerially controlled efficiency measure, data envelopment analysis (DEA). Our individual firm‐level year‐by‐year analyses indicate that the managerial performance of the merged firms generally improved in the post‐merger period as documented in the earlier studies of mergers and acquisitions. However, there were also a significant number of cases where we could not observe improved managerial efficiency using this less aggregated approach. We conclude that DEA based disaggregated approaches are useful tools in the hands of corporate governance boards with an interest in yearly or even quarterly managerial performance at the individual firm level.
Takeovers, Ownership, and Shareholder Wealth — The Australian Evidence
Authors: Shekhar Chander , Torbey Violet
Published: January 2008

We examine the relationship between value, ownership, and governance structures for a set of acquisitions by Australian companies over the period of 1994–2001. We find that the propensity to diversify increases with the equity ownership of firms' directors, whereas the composition of the board, the presence of block holders and their ownership does not materially affect the decision to diversify. Board size has a positive but weak impact on the tendency to diversify. We also find no significant negative wealth effects for the shareholders of diversifying firms, although in comparison the shareholders of non‐diversifying acquirers experience significantly positive upward revisions of firm values. Although method of payment influences acquirer returns, ownership and governance do not have any impact on announcement period returns. Our results support the notion that capital markets may consider the ownership and governance structures as exerting enough influence to overcome any costs imposed by diversification strategies, hence limiting value loss to the shareholders.
The Association Between Audit Quality and Post‐IPO Performance: A Survival Analysis Approach
Authors: Jain Bharat A. , Charles L. Martin Charles L. Martin
Published: January 2008

This study examines the issue of whether audit quality contracted by issuers at the time of going public is associated with post‐IPO survival. Survival analysis methodology is applied to estimate the probability of post‐IPO time to failure as a function of audit quality. Through estimation of the Cox‐Proportional Hazards models, we find that audit quality is significantly related to post‐IPO time to failure both in isolation and in the presence of other covariates that influence firm survival. Further, the association between audit quality and post‐IPO survival is stronger when investment bank prestige is low.
Functional angiotensin‐converting enzyme 2 is expressed in human cardiac myofibroblasts
Authors: Guy Jodie L. , Lambert Daniel W. , Turner Anthony J. , Porter Karen E.
Published: January 2008

The renin–angiotensin system (RAS), in particular angiotensin II, plays an important role in cardiac remodelling. Angiotensin‐converting enzyme (ACE) and angiotensin‐converting enzyme 2 (ACE2) are key players in the RAS and act antagonistically to regulate the levels of angiotensin II. In this study, we reveal the functional expression of ACE2 in human cardiac myofibroblasts, cells that are essential to the maintenance of normal cardiac architecture and also play a key role in myocardial remodelling. The observed reciprocal expression of ACE and ACE2 in these cells may reflect the possible opposing activity of these two enzymes. In this study, we demonstrate the presence of ACE2 as an ectoenzyme and reveal that ACE2 undergoes phorbol‐12‐myristate‐13‐acetate‐inducible ectodomain shedding from the membrane. When cells were exposed to a number of pathophysiological stimuli, modulation of ACE2 levels was not detected. Importantly, whilst we found ACE2 to be expressed constitutively in cardiac myofibroblasts there were no detectable levels in either vascular smooth muscle cells or vascular endothelium, indicating that ACE2 expression is not ubiquitous. In paraffin sections of atrial appendage tissue, we observed a distinct staining pattern for ACE2 which appeared different from that of ACE. In conclusion, this study is the first to report co‐expression of ACE and ACE2 in human cardiac myofibroblasts and may therefore present a model primary system for study of the comparative cell biology of ACE2 and ACE and their potentially opposing roles in myocardial remodelling.
Angiotensin‐converting enzyme 2 catalytic activity in human plasma is masked by an endogenous inhibitor
Authors: Lew Rebecca A. , Warner Fiona J. , Hanchapola Iresha , Yarski Michael A. , Manohar Jay , Burrell Louise M. , Smith A. Ian
Published: January 2008

Angiotensin‐converting enzyme 2 (ACE2) is thought to act in an opposing manner to its homologue, angiotensin‐converting enzyme (ACE), by inactivating the vasoconstrictor peptide angiotensin II and generating the vasodilatory fragment, angiotensin(1–7). Both ACE and ACE2 are membrane‐bound ectoenzymes and may circulate in plasma as a consequence of a proteolytic shedding event. In this study, we show that ACE2 circulates in human plasma, but its activity is suppressed by the presence of an endogenous inhibitor. Partial purification of this inhibitor indicated that the inhibitor is small, hydrophilic and cationic, but not a divalent metal cation. These observations led us to develop a method for removal of the inhibitor, thus allowing detection of plasma ACE2 levels using a sensitive quenched fluorescent substrate‐based assay. Using this technique, ACE2 activity measured in plasma from healthy volunteers (n= 18) ranged from 1.31 to 8.69 pmol substrate cleaved min−1 ml−1 (mean ±s.e.m., 4.44 ± 0.56 pmol min−1 ml−1). Future studies of patients with cardiovascular, renal and liver disease will determine whether plasma ACE2 is elevated in parallel with increased tissue levels observed in these conditions.
Antioxidants attenuate oxidative damage in rat skeletal muscle during mild ischaemia
Authors: Judge A. R. , Selsby J. T. , Dodd S. L.
Published: January 2008

We have previously shown oxidative stress and oedema, caused by both xanthine oxidase‐derived oxidants and infiltrating neutrophils, within skeletal muscle after contractile‐induced claudication. The purpose of this study was to determine whether supplementation with antioxidant vitamins attenuates the oxidative stress, neutrophil infiltration and oedema associated with an acute bout of contractile‐induced claudication. Rats received vehicle, vitamin C, vitamin E or vitamin C + E for 5 days prior to contractile‐induced claudication. Force production was significantly reduced in the claudicant limbs of all groups compared with the control (sham) limb of control animals. Contractile‐induced claudication caused a significant increase in protein oxidation, lipid peroxidation, neutrophil infiltration and oedema compared with sham muscles. Supplementation with vitamin C, E or C + E prevented the increases in each of these, and there were no differences between groups. These findings suggest that, in an animal model of exercise‐induced claudication, neutrophil chemotaxis is caused by oxidizing species and that antioxidant supplementation can prevent oxidative damage, neutrophil infiltration and oedema following an acute bout of contractile‐induced claudication.
Molecular Characterization of Ciliate Diversity in Stream Biofilms
Authors: Dopheide Andrew , Lear Gavin , Stott Rebecca , Lewis Gillian
Published: January 2008

Free-living protozoa are thought to be of fundamental importance in aquatic ecosystems, but there is limited understanding of their diversity and ecological role, particularly in surface-associated communities such as biofilms. Existing eukaryote-specific PCR primers were used to survey 18S rRNA gene sequence diversity in stream biofilms but poorly revealed protozoan diversity, demonstrating a need for protozoan-targeted primers. Group-specific PCR primers targeting 18S rRNA genes of the protozoan phylum Ciliophora were therefore designed and tested using DNA extracted from cultured protozoan isolates. The two most reliable primer combinations were applied to stream biofilm DNA, followed by cloning and sequencing analysis. Of 44 clones derived from primer set 384F/1147R, 86% were of probable ciliate origin, as were 25% of 44 clones detected by primer set 121F/1147R. A further 29% of 121F/1147R-detected clones matched sequences from the closely related phylum Apicomplexa. The highly ciliate-specific primer set 384F/1147R was subsequently used in PCRs on biofilm DNA from four streams exhibiting different levels of human impact, revealing differences in ciliate sequence diversity in samples from each site. Of a total of 240 clones, 73% were of probable ciliate origin; 54 different putative ciliate sequences were detected from throughout seven taxonomic ciliate classes. Sequences from Oligohymenophorea were most commonly detected in all samples, followed by either Spirotrichea or Phyllopharyngea. Restriction fragment length polymorphism profile-based analysis of clones suggested a potentially higher level of diversity than did sequencing. Nevertheless, newly designed PCR primers 384F/1147R were considered to provide an effective molecular basis for characterization of ciliate diversity in stream biofilms.
Dehalorespiration with Polychlorinated Biphenyls by an Anaerobic Ultramicrobacterium
Authors: May Harold D. , Miller Greg S. , Kjellerup Birthe V. , Sowers Kevin R.
Published: January 2008

Anaerobic microbial dechlorination is an important step in the detoxification and elimination of polychlorinated biphenyls (PCBs), but a microorganism capable of coupling its growth to PCB dechlorination has not been isolated. Here we describe the isolation from sediment of an ultramicrobacterium, strain DF-1, which is capable of dechlorinating PCBs containing double-flanked chlorines added as single congeners or as Aroclor 1260 in contaminated soil. The isolate requires
Desulfovibrio
spp. in coculture or cell extract for growth on hydrogen and PCB in mineral medium. This is the first microorganism in pure culture demonstrated to grow by dehalorespiration with PCBs and the first isolate shown to dechlorinate weathered commercial mixtures of PCBs in historically contaminated sediments. The ability of this isolate to grow on PCBs in contaminated sediments represents a significant breakthrough for the development of in situ treatment strategies for this class of persistent organic pollutants.
Novel Members of Glycoside Hydrolase Family 13 Derived from Environmental DNA
Authors: Labes Antje , Karlsson Eva Nordberg , Fridjonsson Olafur H. , Turner Pernilla , Hreggvidson Gudmundur O. , Kristjansson Jakob K. , Holst Olle , Schönheit Peter
Published: January 2008

Starch and pullulan-modifying enzymes of the α-amylase family (glycoside hydrolase family 13) have several industrial applications. To date, most of these enzymes have been derived from isolated organisms. To increase the number of members of this enzyme family, in particular of the thermophilic representatives, we have applied a consensus primer-based approach using DNA from enrichments from geothermal habitats. With this approach, we succeeded in isolating three new enzymes: a neopullulanase and two cyclodextrinases. Both cyclodextrinases displayed significant maltogenic amylase side activity, while one showed significant neopullulanase side activity. Specific motifs and domains that correlated with enzymatic activities were identified; e.g., the presence of the N domain was correlated with cyclodextrinase activity. The enzymes exhibited stability under thermophilic conditions and showed features appropriate for biotechnological applications.