scholarly journals The impact of IAS 36 on equity values: Empirical evidence from UAE

2016 ◽  
Vol 13 (2) ◽  
pp. 49-54
Author(s):  
Yousef Shahwan ◽  
Jamal Roudaki
Keyword(s):  
Empirical Evidence ◽  
Information Content ◽  
Financial Reporting ◽  
Market Valuation ◽  
Controversial Issues ◽  
Equity Values ◽  
Market Values ◽  
Equity Value ◽  
The Impact

Amortization requirement of goodwill asset is one of the most controversial issues in financial reporting. This study provides empirical evidence on whether goodwill amortization has significant impact on equity value. It analyses the information content of goodwill amortization in the determination of firm’s market valuation by Emirates Financial Market Listed companies that clearly reported goodwill amortization over the period 2003 to 2012 inclusive. Evidence suggests that there is a statistically significant association between equity market values and goodwill amortization in the determination of firms’ market valuation, concluding that the UAE market perceives goodwill amortization as having information content when valuing firms and the use of standardized amortization requirement may be appropriate.

scholarly journals The effect of the level of indebtedness on the earnings information content stemming from the mandatory IFRS adoption

2016 ◽  
Vol 4 (1) ◽  
pp. 12
Author(s):  
Hela Turki ◽  
Senda Wali ◽  
Younes Boujelbene
Keyword(s):  
Information Asymmetry ◽  
Information Content ◽  
Financial Reporting ◽  
Forecast Error ◽  
Financial Analysts ◽  
Forecast Dispersion ◽  
Earnings Information ◽  
Ifrs Adoption ◽  
High Level ◽  
The Impact

<p>This paper examines the impact of IFRS / IAS (International Financial Reporting Standards / International Accounting Standards) mandatory adoption on the earning's information content apprehended by the level of information asymmetry and whether this impact differs from one company to another with regard to its level of indebtedness. The information asymmetry is measured by the properties of financial analysts’ forecasts (error and dispersion).This study is conducted over 11 years from 2002 to 2012 by taking as a sample all the companies that belong to the CAC all tradable indexes. The results show a significant effect of these international's standards on financial analysts' forecasts, which stress informational content improvement. In addition, high level of indebtedness associated with IFRS adoption reduces forecast dispersion. By contrast, low level of indebtedness associated with IFRS adoption reduces forecast error.</p>

The impact of corporate pollution on market valuation: some empirical evidence

1993 ◽  
Vol 8 (2) ◽  
pp. 135-155 ◽  
Author(s):  
Denis Cormier ◽  
Michel Magnan ◽  
Bernard Morard
Keyword(s):  
Empirical Evidence ◽  
Market Valuation ◽  
The Impact

scholarly journals PENGARUH KUALITAS AUDIT TERHADAP FRAUDULENT FINANCIAL REPORTING DENGAN KOMITE AUDIT SEBAGAI VARIABEL MODERASI (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI tahun 2016 – 2018)

2019 ◽  
pp. 2
Author(s):  
Endah Catur Riyanti ◽  
Hanna Christina W Putri ◽  
Wikanto Artadi ◽  
Haryono Umar
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Quality ◽  
Annual Report ◽  
Stock Exchange ◽  
Least Squares Regression ◽  
Fraudulent Financial Reporting ◽  
Insignificant Effect ◽  
The Impact

<p><em>This study aims to obtain empirical evidence the influence of Audit</em><em> </em><em>Quality on the Fraudulent Financial Reporting with Audit</em><em> </em><em>Com</em><em>m</em><em>ittee as a Moderating Variable in Manufacture Companies listed in Indonesia’s Stock Exchange on 2016 – 2018. This paper uses generalised least squares regression to investigate</em><em> </em><em>the influence of Audit</em><em> </em><em>Quality on the Fraudulent Financial Reporting with Audit</em><em> </em><em>Com</em><em>m</em><em>ittee as a moderating variable for a sample of </em><em>manufacturing</em><em> companies listed on </em><em>Indonesia</em><em> Stock</em><em> </em><em>Exchange over a </em><em>three</em><em>-year period from 2016 to 2018. The method of  purposive sampling is used to gain the samples. The measurement of FFR is using Real Earning Managemen</em><em>t </em><em>(Abnormal Cashflow). Audit</em><em> </em><em>Quality and Audit Com</em><em>m</em><em>ittee are analyzed from the data within annual report. The result of the research </em><em>findings show that Competence of Audit Committee has a positive insignificant effect on Fraudulent Financial Reporting. Meanwhile Audit Quality have a negative insignificant effect on Fraudulent Financial Reporting and Audit Committee strengthens positive insignificant of Audit Quality on Fraudulent Financial Reporting. </em><em>The </em><em>main contribution of this study is that it investigates Audit Committee strengthens influence of Audit Quality on Fraudulent Financial Reporting on Fraudulent Financial Reporting. Furthermore, this study is the initial paper to examine the impact of Audit Quality and Audit Committee on Fraudulent Financial Reporting in Indonesia. </em><em></em></p>

scholarly journals The Role Of Board Characteristics In Mitigating Management Opportunism: The Case Of Real Earnings Management

2015 ◽  
Vol 31 (2) ◽  
pp. 661 ◽  
Author(s):  
Dorra Talbi ◽  
Mohamed Ali Omri ◽  
Khaled Guesmi ◽  
Zied Ftiti
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Financial Reporting ◽  
Boards Of Directors ◽  
Empirical Studies ◽  
Reporting Quality ◽  
Real Earnings Management ◽  
Board Characteristics ◽  
The Impact

<p>This study seeks to provide empirical evidence of the efficacy of board characteristics in constraining management opportunism, measured by real earnings management. The paper uses regression analysis to document empirical evidence regarding the impact of the independence of boards of directors and the independence of committees on real earnings management in 7,481 US firms over the period 2000 to 2009. This study contributes to empirical studies on the role of corporate governance in financial reporting quality by demonstrating the role of the independence of boards of directors and the independence of committees in constraining real earnings management. These results should contribute to providing an orientation for future regulators regarding possible amendments, especially in the wake of the current financial crisis.</p>

scholarly journals The impact of earnings management on going concern: Evidence from listed firms in Vietnam

2016 ◽  
Vol 19 (3) ◽  
pp. 96-108
Author(s):  
Thao Thi Thu Dinh ◽  
Khuong Vinh Nguyen
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Financial Reporting ◽  
Stock Markets ◽  
Quantitative Research ◽  
Correlation Relationship ◽  
Quantitative Research Methods ◽  
Listed Firms ◽  
Going Concern ◽  
The Impact

This study is to provide an empirical evidence about the correlation relationship between earnings management and the respect of going-concern of companies listed on Vietnam stock markets. Using quantitative research methods on data obtained from 80 companies delisted on Vietnam stock markets (HNX and HOSE) in the period from 2012 to 2015, we find a correlation between earnings management and going concern of the company. The study is meaningful to investors, management organizations and auditors in expressing their opinion about the ability of the going concern and enhances the transparency of financial reporting information.

How Do Earnings Numbers Relate to Stock Returns? A Review of Classic Accounting Research with Updated Evidence

2004 ◽  
Vol 18 (4) ◽  
pp. 263-286 ◽  
Author(s):  
D. Craig Nichols ◽  
James M. Wahlen
Keyword(s):  
Stock Returns ◽  
Empirical Evidence ◽  
Financial Reporting ◽  
Academic Research ◽  
Cash Flows ◽  
Share Prices ◽  
Earnings Information ◽  
Post Earnings Announcement Drift ◽  
Using Data ◽  
The Impact

An extensive body of academic research in accounting develops theory and empirical evidence on the relation between earnings information and stock returns. This literature provides important insights for understanding the relevance of financial reporting. In this article, we summarize the theory and evidence on how accounting earnings information relates to firms' stock returns, particularly for the benefit of students, practitioners, and others who may not yet have been exposed to this literature. In addition, we present new empirical evidence on the relation between earnings and returns by replicating and extending three classic studies using data from 1988 through 2002. Specifically, we first demonstrate the relation between earnings changes and stock returns, replicating Ball and Brown (1968), and we compare that relation to the relation between changes in cash flows from operations and stock returns. Second, we demonstrate the impact of earnings persistence on stock returns, extending findings from studies such as Kormendi and Lipe (1987), and highlighting the effects of differences in persistence across earnings increases and decreases. Third, we provide evidence to assess the efficiency with which the capital markets impound quarterly earnings information into share prices, showing that the post-earnings-announcement-drift results of Bernard and Thomas (1989) extend to recent data.

scholarly journals Audit of Financial Reporting Documents: Analysis of Process of Determining Materiality

2019 ◽  
pp. 1
Author(s):  
Gerda Jurkonienė ◽  
Justina Stašaitytė
Keyword(s):  
Financial Reporting ◽  
Scientific Literature ◽  
Critical Evaluation ◽  
Financial Statements ◽  
Determination Process ◽  
Wide Range ◽  
Determining Factors ◽  
Materiality Thresholds ◽  
The Impact

During audit of the financial statements of companies, the auditors use a certain level of materiality to determine both the scope of the procedures and the impact of errors on the representation of the true and fair view of the financial statements. International auditing standards leave wide range of possibilities for interpretation of the materiality process, which often raises the question of how the auditor determines materiality. The purpose of the study is to analyze the materiality process and to create a model of the materiality determination process. Methods of information gathering, comparative analysis, critical evaluation, systematization and interpretation of scientific literature and normative acts of audit are used in this article. After analyzing the materiality determination process, it was found that the materiality process consists of four steps: assessment of determining factors of materiality thresholds, determination of planning materiality, determination of performance materiality and determination of clearly trivial misstatement. Based on the analyzed literature, a model of materiality determination process was developed.

scholarly journals Audit Tests and Their Impact on Fraud Detection-Case of Albania

2018 ◽  
Vol 4 (1) ◽  
pp. 79-88
Author(s):  
Mirela Ujkani Miti ◽  
Elena Myftaraj ◽  
Ueda Hajrullaj
Keyword(s):  
Financial Reporting ◽  
Primary Objective ◽  
Controversial Issues ◽  
Audit Process ◽  
Literature Study ◽  
Subject Field ◽  
The Public ◽  
High Quality Information ◽  
Illegal Acts ◽  
The Impact

Abstract For an auditor having the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing, and has been one of the most frequently debated areas amongst auditors, politicians, media, regulators and the public (Gay et al 1997). The primary objective of financial reporting is to provide high-quality information to financial statement users. Regarding to this, we have taken into consideration an important element, such as the audit report which provides reasonable assurance to present and potential capital providers and other stakeholders when making investments, credit decisions, and allocating resources that may enhance overall capital market efficiency. The audit engagement in Albania is based on International Auditing Standards. We have attempted to study and identify the role of audit tests, performed by auditors during the audit process, in detecting material misstatements in the financial statements, in order to obtain a more qualitative financial reporting. Through the literature study regarding the impact of audit procedures undertaken in the auditor's opinion and the evidence gathered by the questionnaire addressed to auditors in Albania, it is possible to carry out our research questions about the subject field. In conclusion, we will express our opinion about the possible suggestions that should be followed during the selection of the adequate audit test to be performed, in order to ensure the most qualitative financial reporting in Albania.

ANALISIS PELAPORAN SEGMEN DAtAnfi PSAK NO.5 (EDlSt 1994) DAN PSAK NO. 5 (EDISI REVISI 2000)

2006 ◽  
Vol 2 (2) ◽  
pp. 82
Author(s):  
Putriana Kristanti
Keyword(s):  
Empirical Evidence ◽  
Information Content ◽  
Standard Information ◽  
The Impact ◽  
Segment Information

The reseuch about accoanting standard, information content, the role : and the impact of segment information is develoveped, but ryot in Indonesia.  The purpose of this research is to investigate about PSAK No. 5, the initial$t and the revision. How far are the firm disclose their segment inforrntion afier ond before the standord is effective? The empirical evidence from 64 sample rtrus show that the standard, specially PSAK No, 5 (edisi wvisi 2A0Q is effeetive to motivde the firm discloseinformotion segwe#- PSAK Na, 5 (edisi revbi 20A$ is bapr thet PSAK No, 5 (edisi 1994). Utder PSAK No, 5 (ediii rzvisi 2AND &5.94% of the saruplef*nts redefmed their prinury segments. Tlere sre.4i.75% of the sample firms use line-of-business for the pi*wy segilent a$.a@ition with geogr$tc &e as tlre secodwy segment. Six items ae rcported in segment information of 4j.75oi sample Jirms. Segment revenue is reported by all of tle sample firms.Keywords : segnent information, PSAK No. 5 (lgg4),PSAK No. 5(Revisi 2ffi0); disclose, primary segtnent, secondary segment,line-of business, geografic area.

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