The Effects of Manager Commitment and Regulatory Scrutiny on the Approach Auditors Take to Persuade Managers to Modify Their Aggressive Accounting Preferences

2012 ◽  
Author(s):  
Bradley Pomeroy
Keyword(s):  
Regulatory Scrutiny ◽  
Aggressive Accounting

scholarly journals Measuring fraud and earnings management by a case of study: Evidence from an international family business

2017 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Alicia Ramírez-Orellana ◽  
María J. Martínez-Romero ◽  
Teresa Mariño-Garrido
Keyword(s):  
Earnings Management ◽  
Family Business ◽  
Growth Index ◽  
Financial Statements ◽  
Sales Growth ◽  
Financial Problems ◽  
Spanish Family ◽  
Aggressive Accounting

The aim of this study is to estimate the probability of fraud and earnings management for a specific Spanish family business, Pescanova. In the context of financial statements, the Beneish model is used to detect fraudulent behavior. Our findings reveal that Pescanova presented propensity to commit fraud and carried out aggressive accounting practices before the disclosure of its financial problems. The manipulation index and the probability of manipulation are used as indicators of fraud and earnings management. Results also show that Pescanova made aggressive accounting practices, through the manipulation of Day's sales in receivables indexand Total accruals to total assets. Next, we provided evidence that the Sales Growth index and Leverage index are aligned with the position of technical default shown by the pre-bankruptcy board of Pescanova. Our main contribution is demonstrating the validity of the model for the case of Pescanova. Therefore, the application of the Beneish model might have detected fraudulent behavior, in the years prior to Pescanova's collapse.

The accountability vacuum

2019 ◽  
pp. 159-190
Author(s):  
Stuart Hodkinson
Keyword(s):  
Local Authorities ◽  
Private Companies ◽  
Public And Private ◽  
Fourth Section ◽  
Performance Reporting ◽  
Resident Involvement ◽  
Regulatory Bodies ◽  
Regulatory Scrutiny ◽  
Public And Private Sector

This chapter focuses on the more sinister side of the outsourced state under PFI that was clearly present in the Grenfell disaster – the ‘accountability vacuum’. It draws on interviews with public and private sector professionals, residents involved in PFI schemes, and whistle-blowers, to illuminate specific examples of this deficit. A first section focuses on the lack of public or regulatory scrutiny of PFI contracts that reply on self-certified performance reporting, akin to paying a fox to guard the hen house. A second section explains how poorly-written contracts that set largely meaningless Key Performance Indicators (KPIs) result in minimal financial penalties despite demonstrable failings. A third section shows how local authorities’ prioritise the protection of long-term partnerships with private companies over genuine resident involvement and empowerment. A fourth section describes how resident disempowerment is compounded by the absence of both genuinely independent and powerful regulatory bodies, as well as legal routes that residents could use to get redress. It provides a number of examples of how those who did speak out were routinely ignored and sometimes actively silenced.

Seven Days in May

2020 ◽  
pp. 61-93
Author(s):  
Paul Matzko
Keyword(s):  
Soviet Union ◽  
Labor Union ◽  
Federal Communications Commission ◽  
Nuclear Test ◽  
Internal Revenue Service ◽  
Military Coup ◽  
Right Wing ◽  
The Soviet Union ◽  
Union Leaders ◽  
Regulatory Scrutiny

President Kennedy’s concerns over the Radio Right grew throughout his term in office. At the time, the administration worried about the prospect of a right-wing military coup led by someone like recently cashiered Army General Edwin Walker, especially after he headlined a campaign-style national tour called Operation Midnight Ride with conservative broadcaster Billy James Hargis. The final straw was the wave of conservative attacks on the president’s proposed Nuclear Test Ban Treaty with the Soviet Union in the summer of 1963. Kennedy responded to the rise of the Radio Right by commissioning a strategy document from labor union leaders Walter and Victor Reuther. This “Reuther Memorandum,” as it became known, called for targeting conservative broadcasters with extra regulatory scrutiny by the Internal Revenue Service and the Federal Communications Commission.

The Effects of Regulatory Scrutiny on Tax Avoidance: An Examination of SEC Comment Letters

2016 ◽  
Vol 91 (6) ◽  
pp. 1751-1780 ◽  
Author(s):  
Thomas R. Kubick ◽  
Daniel P. Lynch ◽  
Michael A. Mayberry ◽  
Thomas C. Omer
Keyword(s):  
Indirect Effect ◽  
Avoidance Behavior ◽  
Tax Avoidance ◽  
Regulatory Scrutiny ◽  
Comment Letters ◽  
To Receive ◽  
Tax Costs

ABSTRACT This study examines the tax avoidance behavior of firms prior to the issuance, and following the resolution, of SEC tax comment letters. We find that firms that appear to engage in greater tax avoidance are more likely to receive a tax-related SEC comment letter. We also find that firms receiving a tax-related SEC comment letter, relative to firms receiving a non-tax comment letter, subsequently decrease their tax avoidance behavior consistent with an increase in expected tax costs. Additionally, we document evidence consistent with other firms that do not receive a comment letter reacting to multiple publicly disclosed tax-related comment letters within their industry by increasing their reported GAAP ETR, consistent with an indirect effect of regulatory scrutiny on certain types of tax avoidance.

scholarly journals The Flipkart-Walmart Deal in India: A Look into Competition and Other Related Issues

2019 ◽  
Vol 64 (1) ◽  
pp. 136-147
Author(s):  
Beena Saraswathy
Keyword(s):  
Adverse Effect ◽  
Mergers And Acquisitions ◽  
Regulatory System ◽  
Digital Revolution ◽  
Competition Commission ◽  
Regulatory Scrutiny ◽  
The Creation

The Competition Commission of India approved India’s highest-valued acquisition, Flipkart by Walmart, within the first phase of investigation itself, stating that it is “not likely to have an appreciable adverse effect on competition in India.” Unlike many other retail acquisitions, there has been strong protest from the traders and retailers’ organization to stop the deal and for the creation of an exclusive e-commerce policy and regulator. Meanwhile, the Draft National E-Commerce Policy, 2018, suggested greater regulatory scrutiny for mergers and acquisitions that may distort competition. In this context, the present study looked into the competition dimension of the deal and other related issues. The study suggests to evolve a regulatory system with long-term vision to sustain and support the domestically grown innovations while making the competition assessment more flexible to accommodate the challenges posed by digital revolution.

Regulatory Scrutiny Board: A support for evidence-based policymaking in the European Commission

Evaluation ◽  
2020 ◽  
Vol 26 (2) ◽  
pp. 166-176
Author(s):  
Veronica Gaffey
Keyword(s):  
Impact Assessment ◽  
European Commission ◽  
Board Members ◽  
Senior Managers ◽  
Assessment And Evaluation ◽  
Directorate General ◽  
Part Time ◽  
Regulatory Scrutiny ◽  
Union Action ◽  
Policy Proposals

The European Commission has strengthened its requirements for impact assessment and evaluation over the years. In 2002, it introduced a requirement for impact assessments for new policy proposals and regulations. Such impact assessments had to define the need for European Union action and analyse a variety of options for action. In 2006, it established an Impact Assessment Board, made up of senior managers from across Commission directorates-general. The Board members worked part-time on the Board and did not sit in judgement on proposals from their own directorate-general.

Unions and collective bargaining in Australia in 2016

2017 ◽  
Vol 59 (3) ◽  
pp. 305-322 ◽  
Author(s):  
Daniel Nicholson ◽  
Andreas Pekarek ◽  
Peter Gahan
Keyword(s):  
Public Sector ◽  
Collective Bargaining ◽  
Federal Government ◽  
Occupational Identity ◽  
Wage Premiums ◽  
Regulatory Scrutiny ◽  
Membership Decline ◽  
Public Sector Bargaining ◽  
Union Governance ◽  
Level Of Agreement

In 2016, Australian unions faced a mix of new and enduring challenges. A re-elected Conservative federal government made life difficult for unions, maintaining its hard-line approach to public sector bargaining and passing new laws to intensify regulatory scrutiny of union governance and tactics. Unions continued to secure wage premiums through enterprise bargaining, but the longer-term decline in the level of agreement-making and the number of workers covered by enterprise agreements continued. Disputation rose, although less than half of all disputes were caused by enterprise bargaining. Concern over ongoing membership decline saw unions explore and experiment with organisational reforms and initiatives as new, ‘union-like’ actors entered the field. However, our analysis of longer-term membership developments across union types suggests the outlook is alarming for all but those unions focused on occupational identity.

The Effect of Real Earnings Management on Auditor Scrutiny of Management's Other Financial Reporting Decisions

2018 ◽  
Vol 93 (5) ◽  
pp. 145-163 ◽  
Author(s):  
Benjamin P. Commerford ◽  
Richard C. Hatfield ◽  
Richard W. Houston
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Real Earnings Management ◽  
Financial Statement ◽  
Mediation Model ◽  
Reporting Decisions ◽  
Regulatory Scrutiny ◽  
Serial Mediation ◽  
Subjective Estimates ◽  
Inference Theory

ABSTRACT Recent research reveals that accruals-based earnings management (AEM) is decreasing while real earnings management (REM) is increasing, suggesting the correlation is due to regulatory scrutiny. However, based on Correspondent Inference Theory, we predict and find that when management uses REM, auditors are more restrictive of management's subjective estimates, making it more difficult for management to use income-increasing AEM. Our experiment manipulates the presence versus absence of REM, and whether the audit difference potentially impacts the client's ability to meet an earnings target. Using a serial mediation model, we find that when auditors observe REM, they perceive these operating decisions as aggressive, leading them to perceive management as aggressive, ultimately causing greater proposed adjustments on an unrelated audit difference. We contribute to the literature by demonstrating that when auditors observe REM, their altered perceptions about management can cascade, affecting how they respond to management estimates in unrelated financial statement accounts.

Sign in / Sign up

Export Citation Format

Share Document