scholarly journals Footnotes Aren't Enough: The Impact of Pension Accounting on Stock Values

2008 ◽  
Author(s):  
Olivia S. Mitchell ◽  
Steven A. Sharpe ◽  
S. Blake Nesbitt ◽  
Julia Lynn Coronado
Keyword(s):  
Pension Accounting ◽  
The Impact ◽  
Stock Values

scholarly journals Footnotes Aren't Enough: The Impact of Pension Accounting on Stock Values

2008 ◽  
Author(s):  
Julia Coronado ◽  
Olivia Mitchell ◽  
Steven Sharpe ◽  
S. Blake Nesbitt
Keyword(s):  
Pension Accounting ◽  
The Impact ◽  
Stock Values

scholarly journals Footnotes Aren't Enough : The Impact of Pension Accounting on Stock Values

2008 ◽  
Vol 2008 (04) ◽  
pp. 1-25
Author(s):  
Julia Lynn Coronado ◽  
◽  
Olivia S. Mitchell ◽  
Steven A. Sharpe ◽  
S. Blake Nesbitt
Keyword(s):  
Pension Accounting ◽  
The Impact ◽  
Stock Values

scholarly journals The Impact of Accounting Fundamentals and Macroeconomic Indicators on Manufacturing Companies' Stock Prices

2021 ◽  
Vol 2 (3) ◽  
pp. 22-29
Author(s):  
Van hyung Shih ◽  
Chien Hoang
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Return On Equity ◽  
Price Earnings Ratio ◽  
Macroeconomic Indicators ◽  
Beneficial Impact ◽  
The Impact ◽  
Stock Values

The aim of this research is to ascertain if accounting fundamentals and macroeconomic indicators have an effect on stock prices. In this research, a quantitative method was used. The population of this research includes manufacturing firms listed on the Stock Exchange, with a sample size of ten companies collected through secondary data during the 2019-2020 quarter. Scale of data measurement using a ratio scale. The findings indicated that inflation and interest rate macroeconomic variables had little impact on stock values. Fundamentals of Accounting The return on equity and the price-earnings ratio both have a substantial beneficial impact on company prices

COVID-19 Sentiments and Impact on Stock Market Prices

2021 ◽  
Vol 2 (2) ◽  
pp. 40-58
Author(s):  
Chandra Prayaga ◽  
Krishna Devulapalli ◽  
Lakshmi Prayaga ◽  
Aaron Wade
Keyword(s):  
Time Series ◽  
Stock Market ◽  
Stock Prices ◽  
Multivariate Time Series ◽  
Market Prices ◽  
Vector Error Correction ◽  
Jones Index ◽  
Vector Error ◽  
The Impact ◽  
Stock Values

This paper studies the impact of sentiments expressed by tweets from Twitter on the stock market associated with COVID-19 during the critical period from December 1, 2019 to May 31, 2020. The stock prices of 30 companies on the Dow Jones Index were collected for this period. Twitter tweets were also collected, using the search phrases “COVID-19” and “Corona Virus” for the same period, and their sentiment scores were calculated. The three time series, open and close stock values, and the corresponding sentiment scores from tweets were sorted by date and combined. Multivariate time series models based on vector error correction (VEC) models were applied to this data. Forecasts for these 30 companies were made for the time series open, for the 30 days of June 2020, following the data collection period. Stock market data for the month of June was for all the companies was compared with the forecast from the model. These were found to be in excellent agreement, implying that sentiment had a significant impact or was significantly impacted by the stock market prices.

scholarly journals Footnotes aren't enough: the impact of pension accounting on stock values

2008 ◽  
Vol 7 (3) ◽  
pp. 257-276 ◽  
Author(s):  
JULIA CORONADO ◽  
OLIVIA S. MITCHELL ◽  
STEVEN A. SHARPE ◽  
S. BLAKE NESBITT
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Defined Benefit ◽  
Financial Accounting Standards Board ◽  
Pension Accounting ◽  
Current Accounting ◽  
Portfolio Managers ◽  
Pertinent Information ◽  
Current Reform ◽  
The Impact

AbstractRecent research has suggested that companies with defined benefit (DB) pensions are sometimes significantly misvalued by the market. This is because the measures of pension cost and pension net liabilities embedded in financial statements can provide a very misleading picture of pension finances, if taken at face value. The more pertinent information on pension finances is relegated to footnotes, which may not receive much attention from portfolio managers. Dramatic swings in the financial conditions of large DB plans around the turn of the decade focused attention on pension accounting practices, and growing dissatisfaction with current accounting standards has prompted the Financial Accounting Standards Board (FASB) to launch a project revamping DB pension accounting. Arguably, the increased attention should have made investors wise to the informational problems, thereby eliminating systematic mispricing in recent years. We test this proposition and conclude that investors continued to misvalue DB pensions, inducing sizable valuation errors in the stock of many companies. Our findings suggest that FASB's current reform efforts could substantially aid the market's ability to value firms with DB pensions.

Defined benefit pension policies and social responsibility performance: do socially responsible firms walk the talk?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maretno Agus Harjoto ◽  
Indrarini Laksmana
Keyword(s):  
Social Responsibility ◽  
Pension Benefit ◽  
Defined Benefit ◽  
Socially Responsible ◽  
Pension Accounting ◽  
Content Type ◽  
Corporate Strategies ◽  
Industrial Sectors ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to examine whether socially responsible firms have well-funded employee pension programs and whether corporate social responsibility (CSR) performance is associated with management discretionary choice of pension accounting assumptions. Design/methodology/approach The current study examines the impact of CSR performance on two measures of pension funding and two pension accounting assumptions using regression analysis. This study uses a panel data of 13,099 firms-years across 1,428 US firms from 1992 to 2015. Findings Firms with higher CSR scores report higher pension net assets and are less likely to have underfunded pension than their counterparts. These firms also adopt more responsible (conservative) pension accounting assumptions (i.e. lower discount rate and a higher rate of compensation increase) to estimate pension benefit obligations. Results are stronger for firms that operate in the materials and industrial sectors and for the post-2000 period when underfunded pension has become more prevalent. Firms with higher CSR scores are also less likely to have a pension freeze. Originality/value This study examines the signaling role of CSR by using the signaling theory to explain how senders view the signaling process as a channel to build their reputation and the correspondent inference theory to explain how receivers process and assess the signal. It provides evidence that the signal provided by CSR score is reliable in assessing firms’ commitment to non-investing stakeholders, such as employees, providing valuable information for potential employees making career decisions and for managers considering employee pension as part of corporate strategies to attract high quality workforce. This study provides inputs for public accountants providing assurance services that CSR performance has a significant impact on management reporting choices. This study also provides evidence that CSR could be considered a private provision of public goods that internalize the negative externality of the prevalent underfunded pension phenomenon.

The role of discretionary pension accruals in earnings management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Su-Jane Hsieh ◽  
Yuli Su ◽  
Chun-Chia Amy Chang
Keyword(s):  
Earnings Management ◽  
Pension Plans ◽  
Defined Benefit ◽  
Pension Accounting ◽  
Estimation Errors ◽  
Content Type ◽  
Significant Difference ◽  
Pension Costs ◽  
The Impact ◽  
Aggregate Measure

PurposeManagers of defined-benefit (DB) firms have considerable discretion in deriving pension costs and flexibility in cash contributions to pension plans. Pension accruals occur when cash contributions differ from pension costs. The manipulable nature of pension costs and cash contributions allows managers of DB firms to manipulate pension accruals to achieve their desired earnings. We study whether DB firms with earnings management attributes (referred to as suspect DB firms) used more discretionary pension accruals (DPA) than non-suspect DB firms, especially after the passage of Sarbanes-Oxley (SOX).Design/methodology/approachThe authors develop an aggregate measure of DPA to capture overall earnings management in pension accounting. They then employ a multivariate regression model to study whether the suspect DB firms engage in more DPA than non-suspect firms and to assess the impact of SOX on DPA for all DB firms and for suspect DB firms.FindingsThe authors find evidence that suspect firms inflate DPA to achieve their earnings goals and also that all DB firms and the suspect firms use more DPA in the post-SOX era compared to the pre-SOX period. In contrast, they observe no significant difference in real activities earnings management (REM) between suspect and non-suspect firms. In addition, neither the entire sample of DB firms nor the suspect firms display a significant change in REM after SOX.Research limitations/implicationsThe samples in the study are limited to firms with defined pension plans; thus, the findings cannot be generalized to all firms. In addition, as in other empirical studies relying on models to estimate earnings management proxies, this study inherits estimation errors from Jones and Roychowdhury's models. Consequently, the impact of these estimation errors cannot be ruled out.Practical implicationsThe empirical findings of the study appear that instead of deterring DB firms from engaging in pension accruals earnings management, enacting the stringent anti-fraud SOX prompts these firms to rely more on accrual-based discretionary pension rather than switch to real activities manipulation to manage earnings.Originality/valueWhile many prior studies focus on the impact of managing individual pension assumptions on earnings, the authors study overall earnings management in pension accounting by developing a model to derive an aggregate measure of pension earnings management.

scholarly journals The Impact of Leverage Levels on Firm’s Performance and Profitability: a case of Pakistani Industries

2011 ◽  
Vol 3 (5) ◽  
pp. 242-249
Author(s):  
Waqas Rasool ◽  
Farheen Kayani . ◽  
Mohsin Zafar .
Keyword(s):  
Commercial Banking ◽  
Equity Structure ◽  
Leverage Ratio ◽  
Investment Projects ◽  
Suitable Form ◽  
Independent Variable ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Stock Values

This paper examines the relationship between the leverage levels, performance and profitability of the 19 Pakistanis firms with in three sectors, commercial banking, cement and fertilizer sector starting from 2004 to 2010. The purpose was to check the trends which are being followed by these industries and how much their capital structure policy is dynamic and relating to their sale, earnings, performance and stock values. Arithmetic Mean (A.M), standard derivation (S.D) were used to check the trend of data and then correlation was used sector wise to check the relationship of dependent and independent variables. At the end Regression test was employed on data .Study finds that there is relationship between leverage ratio i.e. DTCM (independent variable) and its determinants i.e size, tangibility, return on asset and RET except cash. A debt does not represent a suitable form of financing with value-enhancing investment projects of the firms, as an alternative, such firms issue equity. On the other hand, when there is a lack of profitable projects, a firm prefers issuing debts and increasing dividends. Management can increase the performance and profit indicators just by changing the debt equity structure.

Formation of Lunar Craters and Bright Rays as a Result of Meteorite Impacts

1962 ◽  
Vol 14 ◽  
pp. 415-418
Author(s):  
K. P. Stanyukovich ◽  
V. A. Bronshten
Keyword(s):  
Explosive Charge ◽  
The Moon ◽  
Meteorite Impacts ◽  
The Earth ◽  
Lunar Craters ◽  
The Impact

The phenomena accompanying the impact of large meteorites on the surface of the Moon or of the Earth can be examined on the basis of the theory of explosive phenomena if we assume that, instead of an exploding meteorite moving inside the rock, we have an explosive charge (equivalent in energy), situated at a certain distance under the surface.

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