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Author: Patricia Dechow Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper investigates the motivations for managers' decisions to overstate earnings and examines the consequences of such decisions. We examine firms subject to enforcement actions by the Securities and Exchange Commission for having violated the financial reporting requirements of the securities laws. In addition to considering the traditional bonus and debt hypotheses as motivations for earnings management, we also investigate the hypothesis that earnings management is systematically related to firms' demands for external financing. We argue that by employing aggressive accounting policies, firms temporarily inflate their market values and temporarily reduce their costs of capital. Thus, managers of firms with high current demands for external financing have incentives to increase reported earnings. Further, we argue that aggressive reporting is more likely to occur in firms with poor governance structures. The empirical evidence supports our predictions. Relative to a matched control sample, aggressive reporters are in greater need of external financing and have poor governance structures. They have fewer outsiders on their boards of directors; are more likely to have their chief executive officers be chairmen of their boards; are less likely to have audit committees; and are less likely to have large outside blockholders. We also investigate the consequences of aggressive reporting. When management are identified as aggressive reporters, their firms' stock prices fall and they face less liquid markets for their securities and higher costs of capital.
Author: Patricia Dechow Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper investigates the motivations for managers' decisions to overstate earnings and examines the consequences of such decisions. We examine firms subject to enforcement actions by the Securities and Exchange Commission for having violated the financial reporting requirements of the securities laws. In addition to considering the traditional bonus and debt hypotheses as motivations for earnings management, we also investigate the hypothesis that earnings management is systematically related to firms' demands for external financing. We argue that by employing aggressive accounting policies, firms temporarily inflate their market values and temporarily reduce their costs of capital. Thus, managers of firms with high current demands for external financing have incentives to increase reported earnings. Further, we argue that aggressive reporting is more likely to occur in firms with poor governance structures. The empirical evidence supports our predictions. Relative to a matched control sample, aggressive reporters are in greater need of external financing and have poor governance structures. They have fewer outsiders on their boards of directors; are more likely to have their chief executive officers be chairmen of their boards; are less likely to have audit committees; and are less likely to have large outside blockholders. We also investigate the consequences of aggressive reporting. When management are identified as aggressive reporters, their firms' stock prices fall and they face less liquid markets for their securities and higher costs of capital.
Author: Patricia M. Dechow Publisher: ISBN: Category : Corporations Languages : en Pages : 31
Book Description
"The objective of this paper is to investigate the effect of firms' information disclosure strategy on firm value. Existing literature has aruged that a firm's disclosure policy can affect firm value. For example, Healy and Palepu (1993) and Lev (1992) argue that management that build a reputation for reliable and timely financial disclosure will reduce information asymmetry problems. This in turn facilitates the firm's ability to issue new capital. In this paper, instead of examining firms that have built reputations for reliable financial disclosures, we examine the converse set of firms. We investigate firms that adopt aggressive financial reporting policies aimed at delaying or hiding bad news concerning their economic circumstances. We investigate two aspects of these firms' choice of disclosure strategy. First, we investigate why the management of these firms choose this strategy and second, we investigate the costs these firms face after they are discovered to have provided unreliable or untimely financial disclosures."--Page 1.
Author: Patrick R. Delaney Publisher: John Wiley & Sons ISBN: 0471797553 Category : Business & Economics Languages : en Pages : 1465
Book Description
Wiley CPA Exam Review 34th Edition ? 2007-2008 Volume 1 Outlines and Study Guides * Covers all four sections of the CPA examination point by point * Stresses important topical areas to study for each part * Helps establish a self-study preparation program * Divides exam into 45 manageable study units * Provides an outline format supplemented by brief examples and illustrations * Makes material easy to read, understand, and remember * Includes timely, up-to-the-minute coverage for the computerized exam * Explains step-by-step examples of the "solutions approach" * Contains all current AICPA content requirements for all four sections of the exam Volume 2 Problems and Solutions * Offers selected problems from all four examination sections * Contains rationale for correct or incorrect multiple-choice answers * Covers the new simulation-style problems-offering more than 75 practice questions * Details a "solutions approach" to each problem * Updates unofficial answers to reflect current laws and standards * Groups multiple-choice questions into topical categories within modules for easy cross-referencing * Provides a sample examination for each of the four exam parts The computer-based CPA exam is here! Are you ready? The 34th Edition of the Wiley CPA Exam Review is revised and updated for the new computerized exam, containing AICPA sample test questions released as recently as April 2007. To help candidates prepare for the new exam format, this edition includes a substantial number of the new simulation-type questions. Passing the CPA exam on your first attempt is possible! We'd like to help. Get Even More Information Online: You'll find a wide range of aids for doing your best on the CPA exam at wiley.com/cpa, including content updates, CPA exam study and test-taking tips, and more. All Wiley CPA Exam Review products are listed on the site.
Author: Howard M. Schilit Publisher: McGraw Hill Professional ISBN: 0071423397 Category : Business & Economics Languages : en Pages : 240
Book Description
Techniques to uncover and avoid accounting frauds and scams Inflated profits . . . Suspicious write-offs . . . Shifted expenses . . . These and other dubious financial maneuvers have taken on a contemporary twist as companies pull out the stops in seeking to satisfy Wall Street. Financial Shenanigans pulls back the curtain on the current climate of accounting fraud. It presents tools that anyone who is potentially affected by misleading business valuationsfrom investors and lenders to managers and auditorscan use to research and read financial reports, and to identify early warning signs of a company's problems. A bestseller in its first edition, Financial Shenanigans has been thoroughly updated for today's marketplace. New chapters, data, and research reveal contemporary "shenanigans" that have been known to fool even veteran researchers.
Author: M. Ayhan Kose Publisher: World Bank Publications ISBN: 1464815453 Category : Business & Economics Languages : en Pages : 403
Book Description
The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Author: Simon Grima Publisher: Emerald Group Publishing ISBN: 183867635X Category : Business & Economics Languages : en Pages : 487
Book Description
In the 18 chapters in this volume of Contemporary Studies in Economic and Financial Analysis, expert contributors gather together to examine the extent and characteristics of forensic accounting, a field which has been practiced for many years, but is still not internationally regulated yet.
Author: Rafay, Abdul Publisher: IGI Global ISBN: 1668450097 Category : Law Languages : en Pages : 441
Book Description
During the last few decades, financially and technologically corrupt practices, such as financial and technological crimes, frauds, forgeries, scandals, and money laundering, have been monitored in many countries around the globe. There is a general lack of awareness regarding these issues among various stakeholders including researchers and practitioners. Concepts, Cases, and Regulations in Financial Fraud and Corruption considers all aspects of financial and technological crimes, frauds, and corruption in individual, organizational, and societal experiences. The book also discusses the emergence and practices of financial crimes, frauds, and corruption during the last century and especially in the current technological advancement. Covering key topics such as financing, ethical leadership, tax evasion, and insider trading, this premier reference source is ideal for computer scientists, business owners, managers, researchers, scholars, academicians, practitioners, instructors, and students.
Author: Financial Crisis Inquiry Commission Publisher: Cosimo, Inc. ISBN: 1616405414 Category : Political Science Languages : en Pages : 692
Book Description
The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.
Author: Patrick R. Delaney Publisher: John Wiley & Sons ISBN: 0470554347 Category : Business & Economics Languages : en Pages : 697
Book Description
This comprehensive four-volume set reviews all four parts of the CPA exam. With more than 3,800 multiple-choice questions over all four volumes, these guides provide everything a person needs to master the material.
Author: Patricia Dechow
Author: Patricia Dechow
Author: Patricia M. Dechow
Author: Patrick R. Delaney
Author: American Accounting Association. Northeast Regional Meeting
Author: Howard M. Schilit
Author: M. Ayhan Kose
Author: Simon Grima
Author: Rafay, Abdul
Author: Financial Crisis Inquiry Commission
Author: Patrick R. Delaney