Consistency as a Means to Comparability: Theory and Evidence

2021 ◽  
Author(s):  
Vivian W. Fang ◽  
Michael Iselin ◽  
Gaoqing Zhang
Keyword(s):  
Empirical Evidence ◽  
Policy Implications ◽  
Financial Statement ◽  
Model Consistency ◽  
High Volatility ◽  
Information Spillover

This paper studies financial statement consistency — the purported means to comparability — from an information perspective. We model consistency as firms’ required propensity to apply common accounting methods to individual transactions and show that consistency creates information spillover through correlated measurements (“spillover channel”) while potentially reducing the informativeness of one’s own report (“standalone channel”). The model generates two central predictions. First, optimal consistency decreases with a transaction’s fundamental correlation as high correlation diminishes information gains via the spillover channel. Second, optimal consistency decreases with a transaction’s fundamental volatility as high volatility exacerbates information losses via the standalone channel. Empirical evidence supports both predictions. Overall, this paper contributes a framework for studying comparability and draws useful policy implications. This paper was accepted by Brian Bushee, accounting.

Getting it Right: Empirical Evidence and Policy Implications from Research on Public-Sector Unionism and Collective Bargaining

2011 ◽  
Author(s):  
David Lewin ◽  
Thomas A. Kochan ◽  
Joel Cutcher-Gershenfeld ◽  
Teresa Ghilarducci ◽  
Harry C. C. Katz ◽  
...  
Keyword(s):  
Public Sector ◽  
Collective Bargaining ◽  
Empirical Evidence ◽  
Policy Implications ◽  
Public Sector Unionism

scholarly journals Empirical evidence of a long-run relationship between agriculture and manufacturing industry output in Nigeria

2019 ◽  
Author(s):  
Eze Osuagwu
Keyword(s):  
Error Correction ◽  
Empirical Evidence ◽  
Manufacturing Industry ◽  
Policy Implications ◽  
Necessary Condition ◽  
Macroeconomic Factors ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Industry Output

<p>This study investigates a relationship between agriculture and manufacturing industry output in Nigeria from 1982-2015, using the Granger causality, co-integration and error correction techniques. Empirical evidence reveals a bidirectional relationship between the sectors. Although, a positive and significant relationship exists in the short and long-run estimates, a long-run divergence from the vector error correction model suggest that changes in agricultural productivity are not restored to equilibrium, given that macroeconomic factors distort the linkage. Policy implications indicate that macroeconomic stability is a necessary condition for agricultural and manufacturing sectors to foster economic growth.</p>

scholarly journals Reaksi Pasar atas Manajemen Laba

2019 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Fery Friyo Handoko ◽  
Mu'minatus Sholichah
Keyword(s):  
Data Analysis ◽  
Earnings Management ◽  
Empirical Evidence ◽  
Capital Market ◽  
Abnormal Return ◽  
Accounting Information ◽  
Financial Statement ◽  
Agency Conflict ◽  
Manufacturing Company ◽  
Simple Regression

Abstract This research examine the capital market reaction on earnings management.  Agency conflict represented by information asymetry caused earnings management.  Managers have incentive to play accounting method and estimate to gain certain amount of earnings.  Hereafter, investor have interest regarding their invesment decision.  They rely on accounting information that represented in financial statement.Based on premise in Signalling Theory, we then hypothesized that investor would response any information addressed to them.Sample and population that used to test hypothesis taken from listed manufacturing company during 2015-2017.  We documenting data from financial statement items.  We obtain 40 manufacturing company that comply to purposive sampling requirement.  We use simple regression to do data analysis.  We found the empirical evidence that market reac the earnings management indication.  There is empirical fact that cummulative abnormal return decreas when determinate by discretionarry accruals.  This research conclude that market reacting the earnings management indication generally.

The effect of Legal Entity Identifiers on audit fee changes

2021 ◽  
Author(s):  
Ju-Chun Yen
Keyword(s):  
Empirical Evidence ◽  
Learning Effect ◽  
Audit Fees ◽  
Policy Implications ◽  
Brand Name ◽  
Legal Entity ◽  
Audit Firms ◽  
Audit Fee ◽  
Legal Entities ◽  
Industry Expertise

This study investigates whether a client's use of a Legal Entity Identifier (LEI) is associated with audit fee changes. An LEI uniquely identifies different legal entities worldwide, making audit clients' transactions and related parties more transparent and traceable, potentially reducing auditors' costs and audit risks, as reflected in audit fee changes. Using a sample of U.S. firms, I find that audit fees increase more for LEI firms than for non-LEI firms within the first few years of LEI registration, but they increase less for LEI firms than for non-LEI firms afterward. The results support a reduction in audit costs due to LEIs, with a learning effect. I also find that audit firms' brand name and industry expertise strengthen this association. This study provides initial empirical evidence of the effects of LEI and policy implications.

Ownership Redirection in Franchised Channels

1992 ◽  
Vol 11 (1) ◽  
pp. 33-44 ◽  
Author(s):  
Rajiv P. Dant ◽  
Patrick J. Kaufmann ◽  
Audhesh K. Paswan
Keyword(s):  
Public Policy ◽  
Empirical Evidence ◽  
Policy Implications ◽  
The Public ◽  
Dual Distribution ◽  
Do So

Since the typical franchise arrangements permit the more powerful franchisors to simultaneously act as suppliers as well as competitors to their franchisees, apprehensions about potential opportunistic behaviors and allegations of antitrust violations are not uncommon. In turn, this unique structuring of franchises with dual distribution has drawn considerable scrutiny from the public policy platform. In particular, the ownership redirection hypothesis—that the powerful franchisors will reacquire the best franchised outlets relegating only the marginal units to franchisees—has received special attention because it verbalizes the worst fears associated with franchising. This paper provides an evaluation of this hypothesis. To do so, we examine (1) the key premises of the hypothesis from the perspectives of a number of related literatures and (2) the available empirical evidence on the hypothesis. Both aspects of the appraisal point to a number of unresolved issues with important public policy implications.

Diversification economies in dairy farming – empirical evidence from Germany

2020 ◽  
Vol 47 (3) ◽  
pp. 1338-1365
Author(s):  
Stefan Wimmer ◽  
Johannes Sauer
Keyword(s):  
Empirical Evidence ◽  
Distance Function ◽  
Crop Production ◽  
Dairy Farms ◽  
Economic Benefits ◽  
Policy Implications ◽  
Farm Size ◽  
Estimation Technique ◽  
Data Set ◽  
Input Distance Function

Abstract This article explores how farm size is related to economic benefits from diversification. Using a data set pertaining to Bavarian dairy farms (2000–2014), we estimate an input distance function (IDF) to derive cost complementarities between distinct outputs. A Bayesian estimation technique is used to improve the theoretical consistency of the IDF. The results show that small dairy farms are more likely to benefit from diversification between milk and livestock production, while larger farms tend to benefit from diversification between milk and crop production. Both managerial and policy implications are discussed.

Does Gambling Complement the Tourist Industry? Some Empirical Evidence of Import Substitution and Demand Displacement

1998 ◽  
Vol 4 (3) ◽  
pp. 213-231 ◽  
Author(s):  
Michael Przybylski ◽  
Daniel Felsenstein ◽  
Daniel Freeman ◽  
Laura Littlepage
Keyword(s):  
Economic Development ◽  
Empirical Evidence ◽  
Local Economic Development ◽  
Import Substitution ◽  
Policy Implications ◽  
Tourist Industry ◽  
Local Economies ◽  
Export Activity ◽  
Tourist Demand

Gambling is intuitively considered as part of the tourism ‘package’. This paper empirically assesses this perception in the context of actual casino development in Indiana and simulated impacts of a hypothetical casino in Israel. In both contexts, the sources of demand for gambling, the extent to which these are ‘tourist’ sources and the question of gambling-generated demand displacing existing tourist demand, are examined. Despite the rather different market and political contexts in Indiana and Israel, the findings on the gambling-tourism relationship and the effect of gambling on local economies, are remarkably consistent. In both cases, gambling is seen to be grounded in import-substitution rather than pure ‘export’ activity. Additionally, in both cases there is evidence that the introduction of gambling displaces tourist demand. The policy implications of these findings point to the need to differentiate between local and national impacts of gambling and between the local fiscal and local economic development impacts.

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