Clute Institute: Journals
Not a member yet
9714 research outputs found
Sort by
Complementarities In Organizational Design Of Franchising Networks
Get PDFThis study investigates complementarities between components of the organizational design of franchising networks. We examine three components of governance, rarely distinguished as such in previous studies involving franchising: allocation of decision rights, performance measurement and incentives. We also analyze interdependencies between these variables. In particular, interdependencies seem more evident between the incentive system and the allocation of decision rights to franchisees, and between the incentive system and performance measurement. We also provide evidence of the role of three franchisee characteristics in franchising’s organizational design: multi-unit ownership, age of the relationship, and geographic distance. Implications for chain management are provided
Does The Market See Through Seasonal Quarterly Earnings Patterns?
Get PDFEvidence such as Das, Shroff, and Zhang (2009) suggests that firms routinely reverse their earnings pattern during their fourth quarter compared to that of last year, possibly leading to earnings management. Motivated by these findings, this study seeks to document whether the market sees through seasonal quarterly earnings patterns and reacts consistent with an earnings management hypothesis. Using an amended Easton and Harris (1991) model, I study whether the earnings variables are more informative based upon the seasonal differencing patterns by incorporating dummy variables, along with their respective interaction terms, to signify the first time the pattern occurs. My results show the market sees the seasonal quarterly earnings pattern; the earning levels and changes in earnings variables are more informative but the (managed) earnings tend to be transitory, not permanent in nature. All other tests performed support these general conclusions
A Manager-Customer Empirical Investigation Of The Subjective Performance Of Proactive Market-Oriented Consumer Goods Companies: Testing A Double-Mediation Model
Get PDFThis study investigates the mediating role of perceived branded product leadership and perceived customer value in the relationship between of proactive market orientation on performance (corporate reputation) in a consumer goods setting. A manager-customer approach is adopted: data was collected from 146 managers from 55 companies, and 425 customers that purchased their branded products. Results show that companies that practice a high level of proactive market orientation are perceived as leaders, which leads to higher levels of customer perceived value of their branded products and enhanced reputation. This research adds to the existing literature in considering customers’ perceptual assessments
The Effect Of IFRS Adoption On Likelihood Of Management Earnings Forecasts: Evidence In Korea
Get PDFKorean listed companies adopted International financial reporting standards (IFRS) in 2011 mandatorily. The IFRS adoption modifies corporate financial reporting structure and further it can affect managers’ incentive for disclosing their earnings forecasts. We investigate the association between IFRS adoption and likelihood of management earnings forecasts. From the empirical results, we find that mandatory IFRS adopted companies are less likely to issue their earnings forecasts after IFRS adoption. It implies that investors’ belief about management earnings forecasts as useful information is weakened after IFRS adoption compare to pre-IFRS adoption period. Therefore, managers’ incentive for providing earnings forecasts decreases. This study will contribute to academics and disclosure-related practitioners by reporting how IFRS adoption makes an influence to managers’ incentive of management earnings forecasts issuance. We also believe that the empirical evidence may shed some lights on the understanding of the spillover effect of IFRS adoption to management earnings forecasts.
The Association Between Corporate Tax Avoidance And Audit Efforts: Evidence From Korea
Get PDFThe purpose of this paper is to verify external auditors’ behavior toward corporate tax avoidance (hereafter ‘CTA’) via audit efforts. In particular, this study examines the effect of CTA on actual audit hours and abnormal audit hours (i.e., auditor perception of corporate tax avoidance as a risk factor). For the successful CTA, the managers have incentives to render corporate information environments more complex and opaque, and as a result exacerbate information asymmetries. And some real-world cases of CTA suggest that it is closely related to the principal-agent regime. These negative aspects of CTA may increase inherent and control risk of audit risks. Considering the monitoring role of external auditing, the auditors may respond to increased inherent and control risks which are consequent to CTA. And the auditor responses are expected to reflect directly in audit hours. For this empirical question, this paper used 2,588 firm-year observations from Korea stock exchange market in the period 2001-2010. We found that in response to increased audit risk from CTA, auditors increased the number of actual audit hours or devoted more audit hours than normal to achieve a given level of audit risk. This study contributes to the literature and auditing practices by extending the auditing and tax literature on the examination of auditor behavior toward CTA and by implying the firms’ CTA behavior is one of the audit risk factors that affect audit planning, respectively.
An Evaluation Of Income Tax Incentives Available To The South African Oil And Gas Industry
Get PDFThe oil and gas sector is advantageous to South Africa. However, the country’s oil and gas reserves are minimal in relation to many other countries, reducing attractiveness to prospective investors. In the aim of promoting investment in the oil and gas sector of South Africa, attraction should be improved by other means, such as an alluring regulatory environment, including the taxation regime.The research conducted in this study aimed to determine whether the income tax legislation in South Africa provides a meaningful incentive for oil and gas companies to compete for international investment in this industry without unnecessarily compromising the State’s share of wealth from the industry. A literature review established the use and characteristics of meaningful tax incentives. The incentives contained in South Africa’s oil and gas tax environment were evaluated to determine whether the incentives can attract investment to the sector.Findings indicate that the incentive contained in the Tenth Schedule generally meets identified characteristics of meaningful tax incentives, enabling South Africa to lure investment to the sector. The interaction between this incentive and the remainder of the legislation, however, reduces the stability afforded to investors and may create uncertainty in the application of the incentive. Also, an apparent lack of monitoring of the regime may result in the impact and necessity of the incentive not being determinable, especially if the investor environment were to be affected by new discoveries
Employing Case Studies To Develop Professional Skills In South African Accountancy Students: A Comparative Follow-Up Study
Get PDFSome of the main challenges faced in accounting education are developing professional skills and encouraging deep learning in students. The literature offers numerous accounts of the case study method as a successful tool for developing professional skills and linking theory with practice. This paper reports on a follow-up study which aimed to contribute to the field in three ways: 1) in corroborating the findings of a prior study on case studies as a tool to develop professional skills, 2) by investigating whether changes in the way the case study was administered had an effect on students’ perceived development, and 3) by gaining some insight into the actual learning that took place by analyzing the assessment outcomes. The findings show that the changes in the way the assignment was administered had no significant effect on the perceptions of students, but that team selection and the provision of homework assistance should be carefully considered. The assessment results support students’ generally positive perceptions on their development of certain professional skills, although deep learning seems to remain a challenge. The paper highlights the importance of research in the field of teaching and learning in accounting education in order to better equip accounting students for the “real world”
Effect Of A ‘Look-Ahead’ Problem On Undergraduate Engineering Students’ Concept Comprehension
Get PDFIn an effort to motivate undergraduate engineering students to prepare for class by reviewing material before lectures, a ‘Look–Ahead’ problem was utilized. Students from two undergraduate engineering courses; Statics and Electronic Circuits, were assigned problems from course material that had not yet been covered in class. These assignments were collected and assessed. Grades from the ‘Look–Ahead’ problems, collected over a sixteen-week semester, were compared to overall exam performance. In addition, exam problem scores from specific correlating concepts/topics were compared with ‘Look–Ahead’ problem scores. Surprisingly, the data show very low correlation between student performance on ‘Look–Ahead’ problems and exams.
Blaze Manufacturing: An Ethical Analysis
Get PDFStudents frequently have difficulty systematically analyzing ethical situations. They tend to respond to situations by indicating that a particular action is “just not right.” This case uses the IMA Statement of Ethical Professional Practice as a framework for analyzing and resolving ethical conflict. The case is based on cost/managerial accounting and is appropriate for late in a managerial accounting course or early in a junior level cost accounting course. The case involves cost analysis, and it examines gross margin versus contribution margin as tools for analyzing product profitability. It also challenges the student to examine the behavior of several of the main characters from an ethical point of view and to examine pathways for resolving ethical conflicts. Suggested solutions, additional discussion, and teaching notes are provided. The story is based on a real situation with a privately held company. Details have been changed to protect the identity of the persons and companies involved
Case Study: Consolidated Balance Sheet At Date Of Purchase
Get PDFConsolidated financial statements have gained great popularity over the last decade with the resurrection of acquisitions and the increased global expansion of business. This case study provides an actual case study of the preparation and presentation of a Consolidated Balance Sheet on the date of acquisition. An in-depth analysis is provided as to how to value the acquired entity, how to calculate Goodwill and how to measure the Non-Controlling interest portion. Work paper and adjusting entries are also highlighted to help facilitate the consolidation process