bluuebunny/crossref_metadata_2025_split huggingface dataset:
DETERMINING COST OF SALES IN THE CCA SYSTEM
Authors: Das Nikhil R. , Fraser David J. 
Published: August 2010

Abstract:The profit concept in the Current Cost Accounting system is based on the objective of maintaining “capital” in the sense of “operating capability”. This paper seeks to demonstrate that the recommended capital maintenance adjustment of the Australian Provisional Accounting Standard on “Current Cost Accounting”, as it relates to cost of sales, is inappropriate for the stated capital maintenance objective. This appears to be because operating capability is a dated concept, since it is the operating capability existing at the beginning of an accounting period which is to be maintained. An alternative adjustment for cost of sales is proposed which is consistent with the stated capital maintenance objective.
AUSTRALIAN SOCIAL RESPONSIBILITY DISCLOSURE: SOME INSIGHTS INTO CONTEMPORARY MEASUREMENT
Authors: Kelly Gary J. 
Published: August 2010

Abstract:Measurement of selected social responsibility disclosure items contained in the annual reports of 50 selected Australian corporations over the period 1969 to 1978 is undertaken. The results presented in this paper indicate that disclosure of selected social responsibility items has increased over the period 1969 to 1978. Larger corporations tend to disclose more environmental, energy and products information than their smaller counterparts. Corporations classified in the primary and secondary industries tend to disclose more environmental and energy information than corporations engaged in tertiary industries whilst the latter were found to disclose more community involvement information than the former.
THE IMPLICATIONS OF DISTRESS PREDICTION MODELS FOR CORPORATE LENDING
Authors: Whittred Greg , Zimmer Ian 
Published: August 2010

Abstract:Three literatures on financial distress prediction are reviewed and evaluated in terms of their usefulness in credit analysis. These are (1) bankruptcy prediction models initiated by Altman, (2) behavioural studies of the ability of loan officers and others to make accurate predictions of bankruptcy and (3) attempts to simulate loan officers' judgements. It is concluded that techniques based on judgement simulation are likely to be the most effective decision aids.
ESTIMATION OF THE CURRENT COST OF GOODS SOLD*
Authors: Pcirson Graham , Tippett Mark 
Published: August 2010

Abstract:In recent years current cost accounting (CCA) has received considerable attention and has resulted in the Financial Accounting Standards Board (FASB) in the USA issuing FAS33 and the Accounting Standards Committee in the UK issuing SSAP16. Similar Statements have been issued in Australia, Canada and New Zealand. The requirement to provide current cost information introduces new measurement problems. Amongst the most intractable of these is the estimation of the current cost of goods sold. The paper considers the problems associated with the techniques for estimating the current cost of goods sold which have been suggested in FAS33 and SSAP16. Alternative methods of estimating current cost of goods sold using the discipline of numerical mathematics are then reviewed. It is shown that for individual inventory lines polynomial interpolating methods provide more reliable results than those recommended in the Statements. Where a firm possesses a large numbei of inventory lines it is likely to be impracticable to apply the interpolating methods to every item of inventory. In such cases a technique referred to as STAPOL is recommended.
THE USE OF PROTOCOL ANALYSIS IN ACCOUNTING
Authors: Bouwman Marinus J. 
Published: August 2010

Abstract:The primary objective of accounting is to provide information that helps decision makers make better decisions. Yet knowledge about how accountants and other professionals make decisions is limited. This article examines verbal protocol analysis, a methodology that uses detailed process information to model decision making behavior. There are many protocol analysis techniques, with different ways to collect data and different ways to analyze it. The selection of a particular technique depends on the specific research objectives. The article concludes with an illustration of a detailed protocol analysis study and a discussion of its results.
Inflation Accounting Disclosures and Stock Price Adjustments: Some Canadian Results
Authors: Cheung Joseph K. 
Published: August 2010

Abstract:This article tests for an association between security returns and anticipated and unanticipated inflation. Inflation accounting disclosures are used to group securities on the basis of their sensitivity to inflation. Nominal security returns and residual returns are independently regressed on the levels of anticipated and unanticipated inflation using a dummy variable model. Results support previous U.S. findings that investors do not seem to use these accounting disclosures in the selection of securities. The evidence indicates, however, that for firms “less affected” by inflation, there exists an association between residual returns and anticipated inflation.
The Investment Performance of Unit Trusts and Mutual Funds in Australia for the Period 1969 to 1978
Authors: Robson G.N. 
Published: August 2010

Abstract:The investment performance of Unit Trusts and Mutual Funds has been extensively researched in the United States and in Britain. However, in Australia relatively little published research is available. This paper analyses the investment performance of a sample of Australian Unit Trusts and Mutual Funds over the ten‐year period 1969 to 1978. The paper uses risk‐adjusted measures of performance to compare performance between funds and with benchmark portfolios over different time periods. The results were similar to overseas research with the funds on average unable to earn positive abnormal returns.
A Note on the Predictability of Financial Distress in New Zealand Listed Companies
Authors: Ferner D.G. , Hamilton R.T. 
Published: August 2010

Abstract:Multiple discriminant analysis is applied to financial ratios of New Zealand listed companies and a model developed which exhibits better classification ability than other New Zealand‐based models. The predictive ability of the New Zealand model is tested on a hold‐out sample of listed companies and performs reasonably well for predictions close to the point of failure.
INVESTMENT DECISION CRITERIA USED BY LISTED NEW ZEALAND COMPANIES
Authors: Patterson Cleveland S. 
Published: August 2010

Abstract:This paper reports the results of a survey of listed New Zealand firms with regard to their investment objectives, their methods of evaluating investment projects and of estimating appropriate hurdle rates, and methods used to evaluate and adjust for project risk differences. Comparisons with similar studies of firms located in the U.S. and Australia indicate that New Zealand firms use accepted normative financial analysis techniques to a much lesser degree than firms in these other countries. The relatively greater usage of accounting‐based rather than market‐based measures by New Zealand firms is particularly marked.
THE COST OF CAPITAL OF A COMPANY UNDER AN IMPUTATION TAX SYSTEM
Authors: Officer R. R. 
Published: August 2010

Abstract:One of the issues arising out of the introduction of an imputation tax for companies in Australia is the effect it is likely to have on the definition and measurement of a company's cost of capital. Insofar as there is a difference between the value of a dollar of franked relative to unfranked dividends, conventional definitions for the cost of capital are inappropriate and new definitions are required. This has implications for the measurement of a company's cost of capital and for the definition of net cash flows that are used in conjunction with the cost of capital. This paper sets out these definitions and an approach for measuring the cost of capital.The new definition of the cost of capital replaces the effective company tax rate T with T(l ‐ γ) where γ is the value of personal tax credits. Further, the definition of the risk premium in the capital asset pricing model requires an adjustment for the capitalized value of personal tax credits to maintain consistency between the cost of capital and cash flows which are defined on an after‐company tax but before‐personal tax basis.
AUDITOR INDEPENDENCE, AUDIT QUALIFICATIONS AND THE PROVISION OF NON‐AUDIT SERVICES: A NOTE
Authors: Wines Graeme 
Published: August 2010

Abstract:This paper presents the results of a study designed to investigate the question of whether there is the potential for an appearance of auditor independence impairment when higher levels of non‐audit services are provided to audit clients. This question was investigated by analysing the audit reports for a sample of publicly listed companies over the period 1980 to 1989.The results of the analysis indicate that the auditors of companies not receiving an audit qualification of any type over the period derived a significantly higher proportion of their remuneration from non‐audit services fees than the auditors of companies receiving at least one audit qualification. This result is driven by the non‐Top 100 companies in the research sample. These findings could suggest that auditors are less likely to qualify a given company's financial statements when higher levels of non‐audit services fees are derived. This could convey the view that the independence of the auditors of these companies may have been compromised.
THE EFFECT OF THE PRODUCTION VOLUME VARIANCE ON ABSORPTION COSTING INCOME
Authors: Black Terry , Gray Philip K. 
Published: August 2010

AbstractA review of the managerial accounting literature reveals a misconception that the Production Volume Variance (PVV) affects absorption costing (AC) income. This paper uses an innovative presentation of the AC income statement to demonstrate that the magnitude and direction (favourable or unfavourable) of the PVV has no effect on AC income—the PVV Irrelevance Proposition. This paper confirms the real cause of changes in AC income. The literature also implies that the PVV is relevant to the reconciliation of AC and variable costing (VC) income. This paper's unique presentation demonstrates that the PVV is irrelevant to the reconciliation, and in addition, clearly illustrates the real reason for the difference between AC and VC income.
Information trading by corporate insiders based on accounting accruals: forecasting economic performance
Authors: Hodgson Allan , Van Praag Bart 
Published: August 2010

AbstractIn this paper, we test whether directors’ (corporate insiders) trading in Australia, based on accounting accruals, provides incremental information in forecasting a firm's economic performance. We determine that directors’ trading on negative accruals in larger firms has greater forecasting content and is associated with 1‐year‐ahead bull market phases. Moreover, arbitrage portfolios set up to mimic insider trading can earn 1‐year‐ahead excess size‐adjusted arbitrage returns of up to 12.2 per cent. Results are consistent with directors hiding their trades in liquid well‐traded firms and in providing incremental information above that supplied by a continuous information regime.
Influence of cultural factors on price clustering and price resistance in China's stock markets
Authors: Cai Bill M. , Cai Charlie X. , Keasey Kevin 
Published: August 2010

AbstractThis paper builds on prior research by analysing the impact of cultural factors on both price clustering and price resistance in China's stock markets. The results support the presence of cultural factors impacting on price clustering with the digit 8 showing a higher propensity for clustering and the digits 4 and 7 showing a lower propensity in the A‐share market, where stock is denominated in renminbi and traded by mainland Chinese. These results are further supported by an analysis of the B‐share market, where cultural factors have no (or less) impact on the price of Chinese stocks traded by foreign investors in US dollars (or in Hong Kong dollars). A range of measures for price resistance show the digits 0 and 5 to be significant resistance points in the A‐share market. Although digit 8 cannot be considered as a resistance point, its resistance level is highest among the remaining numbers. In conclusion, cultural factors help to explain not only price clustering in the Chinese stock markets but price resistance levels as well, albeit at a weak level.
Market behaviour around bankruptcy announcements: evidence from the Australian Stock Exchange
Authors: Frino Alex , Jones Stewart , Wong Jin Boon 
Published: August 2010

AbstractThe corporate distress literature to date has largely focused on the predictive power of accounting variables (Altman, 2001). Following previous literature, this study examines the relevance of abnormal stock returns in discriminating between failed and non‐failed firms (e.g. Clark and Weinstein, 1983; Shumway, 2001). Our results confirm the findings of previous literature that investors in failed firms typically incur substantial negative stock returns leading up to failure announcements. However, in contrast to prior research we do not find evidence of an announcement effect (i.e. negative stock returns on the event day itself or the day preceding). We also document evidence that the bid‐ask spreads of failed firms widen substantially up to 7 months prior to failure, indicating the likelihood of significant information asymmetries across investors in failed firms.
Investor confusion and similarly identified securities
Authors: Davies J. R. , Hillier David , Thamm Juliane 
Published: August 2010

AbstractThis paper extends the analysis of Rashes (2001) to examine the co‐movement of prices for a sample of UK equity securities with similar ticker symbols and names. In contrast to Rashes (2001), we find only limited evidence of price changes that could be attributed to ticker symbol or name confusion. Our results suggest that any such confusion, if it exists at all, is most likely confined to very short time horizons and is not a systematic occurrence for similarly identified securities.
Impact of stakeholder characteristics on voluntary dissemination of interim information and communication of its level of assurance
Authors: Chen Lei , Carson Elizabeth , Simnett Roger 
Published: August 2010

AbstractEquity of access to information for listed entities is a key principle in an efficient and effective market. Direct mailing is a mechanism for achieving this. This study examines equity of access by identifying the half‐yearly financial information, if any, voluntarily mailed out by Australian listed entities and associated stakeholder characteristics. We find that certain stakeholder characteristics (presence of audit committee and shareholder dispersion) are associated with voluntary mail‐out of half‐yearly financial information, along with certain control variables (size of entity, industry and audit opinion). This study further identifies that there are very few instances of the higher level of assurance (audit) being chosen, and where half‐year information is disseminated there are very few instances of the level of assurance on this information being communicated to shareholders.
Adoption of activity management practices in public sector organizations
Authors: Baird Kevin 
Published: August 2010

AbstractThis paper examines the extent to which activity management practices are adopted by Australian public sector organizations at each of Gosselin's (1997) levels of Activity Analysis, Activity Cost Analysis, and Activity‐based Costing. The present paper replicates Baird et al. (2004), thereby enabling a comparison of the extent of adoption of activity management in the public sector with that reported in the private sector in Baird et al. (2004). The results reveal that the adoption of higher level activity management practices (Activity Cost Analysis and Activity‐based Costing) is less prevalent in public sector organizations, whereas they adopt Activity Analysis to the same extent as the private sector.
Momentum investing and the asset allocation decision
Authors: Benson Karen L. , Gallagher David R. , Teodorowski Patrick 
Published: August 2010

AbstractThis study examines the active asset allocation decisions of Australian multisector fund managers to determine whether active fund managers engage in momentum strategies. We find evidence supporting the existence of momentum investing in active asset allocation strategies. This evidence exists in the Australian Equities, Australian Fixed Interest and Listed Property asset classes. Interestingly, balanced funds adopt contrarian strategies in the International Equities asset class. We also examine whether there is any association between a fund's market timing skill and the execution of momentum strategies. Our results show that fund managers with no market timing skill are momentum investors.
On the intertemporal value relevance of conventional financial accounting in Australia
Authors: Brimble Mark , Hodgson Allan 
Published: August 2010

AbstractThis paper examines whether the relevance of conventional (earnings focused) accounting information for valuation has declined in Australia over a recent period of 28 years. Motivation is provided by the anecdotal concerns of financial analysts, accounting regulators, and a cluster of US centric academic research papers that conclude that the relevance of financial accounting (and earnings in particular) has declined over time. After controlling for nonlinearities and stock price inefficiencies, we find that the value relevance of core accounting earnings has not declined. A possible exception is found for small stocks. We also observe that net book values are relatively less important in Australia when compared to the USA. Our results are informative for investors who require feedback on valuation issues and the International Accounting Standards Board regulators in any further moves towards a balance sheet focus.
The value of Big 4 audits in Australia
Authors: Azizkhani Masoud , Monroe Gary S. , Shailer Greg 
Published: August 2010

AbstractResearch suggests that equity markets value Big N audits over non‐Big N audits. Explanations include the information quality hypothesis, whereby Big N auditors increase information quality, and the insurance hypothesis, whereby investors value the deeper pockets of Big N auditors. Using client firms’ex ante cost of capital as the dependent variable, we investigate whether capital market participants differentially value Big 4 versus non‐Big 4 audits in Australia and whether the value of Big 4 audits in Australia changed as a result of the audit failures of 2001–2002. We find that Big 4 audits reduce the ex ante cost of equity capital until 2001, but not after 2001. We cannot dismiss the insurance hypothesis for the persistence of the loss beyond 2003 because of the establishment of liability caps, but the demise of the Big 4 audit value for 2001–2003 is consistent with the information quality hypothesis and does not support the insurance hypothesis.
Accounting for the furniture, fittings & equipment reserve in hotels
Authors: Turner Michael J. , Guilding Chris 
Published: August 2010

AbstractThe somewhat idiosyncratic accounting procedure of maintaining reserves to fund furniture, fittings and equipment (FF&E) capital expenditure in hotels mediated by a management contract is examined. Five research objectives have been pursued: (i) ascertaining contrasting motives of owners and operators with respect to FF&E reserve accounting; (ii) determining FF&E reserve accounting approaches adopted in hotels; (iii) determining the amount assigned to FF&E reserves in hotels; (iv) determining the sufficiency of FF&E reserves in hotels; and (v) appraising the degree of ease with which hotel operators can draw on FF&E reserve funds. These objectives have been pursued through the analysis of qualitative field data as well as survey data collected in Australia and New Zealand. The study’s more significant findings include the determination that, consistent with the wishes of operators, maintaining cash funded FF&E reserves is the most popular approach (particularly in small hotels). It has also been found that FF&E reserves are 40 per cent underfunded. This deficiency beckons a question over whether hotel FF&E reserve accounting serves any meaningful role.
Swedish Corporate Governance and Value Creation: owners still in the driver's seat1
Authors: Carlsson Rolf H. 
Published: August 2010

The purpose of the article is to outline some key characteristics of the Swedish corporate governance system and to highlight some of its important historical roots. The ambition is also to relate and compare Sweden in that respect to some other countries. Hopefully, this article will also help the international corporate governance community to better understand some of the Swedish particulars.The Swedish corporate governance system deviates in several respects from its Anglo‐Saxon and continental counterparts. A large majority of Swedish households owns shares. Swedish industry, not least many of the large Swedish multinational corporations, is dominated by private owners, particularly by a number of large professional owners. The leading private owner, the so‐called Wallenberg Sphere will be presented to illustrate what such an ownership role is all about. Swedish corporate governance features a clear‐cut division of roles and responsibilities at three levels: owners/the AGM, the Board of Directors and the executive management. The AGM plays a key role in Swedish governance, e.g. by discharging and appointing the board. The nomination procedure is another characteristic. A nomination committee, made up of owner representatives reviews the performance of the board and nominates new candidates to the AGM. The board, which is non‐executive (the CEO is a member in some boards), plays an active and increasingly important role.The article ends by outlining recent developments and outlook for Swedish corporate governance.