scholarly journals Do managers engage in earnings management to support firm’s market valuation?

2013 ◽  
Vol 10 (2) ◽  
pp. 627-645 ◽  
Author(s):  
Elisa Raoli
Keyword(s):  
Earnings Management ◽  
Financial Market ◽  
Market Value ◽  
The United States ◽  
Financial Accounting ◽  
Institutional Setting ◽  
Accounting System ◽  
Accounting Systems ◽  
Market Change ◽  
The Relationship

This study examines the relationship between a firm’s market value and earnings management in the Italian financial market. Change in total accruals is used as a proxy for earnings management and change in the market to book ratio is used as a proxy for a firm’s market value. In contrast to the United States, Italy is a code-law and insider system country. The financial accounting system is characterized by a close overlap with tax accounting systems, which allows me to study the relationship with a different perspective than is possible with U.S. data. Moreover, I imply change in total accruals to measure earnings management. To my knowledge, there are no studies utilising this methodology in this type of institutional setting. The results of my study show that an increase in a firm’s market value is associated with income-increasing earnings management and a decrease in a firm’s market value is associated with income-decreasing earnings management. In line with U.S. evidence, my findings empirically validate Jensen’s prediction (Jensen, 2005) of the overvalued company also in the Italian financial market. The positive relationship between a decrease in a firm’s market value and income-decreasing earnings management is consistent with Badertscher (2011) study.

scholarly journals Pengaruh Transparansi, Kompetensi, Dan Sistem Akuntansi Keuangan Terhadap Akuntabilitas Pengelolaan Keuangan Daerah Dengan Penerapan Sistem Pengendalian Internal Pemerintah Sebagai Variabel Moderasi

2021 ◽  
Vol 4 (2) ◽  
pp. 419-433
Author(s):  
Ria Herlina ◽  
Taufeni Taufik ◽  
Azwir Nasir
Keyword(s):  
Control System ◽  
Internal Control ◽  
Financial Management ◽  
Financial Accounting ◽  
Accounting System ◽  
Analysis Method ◽  
Accounting Systems ◽  
Finance Management ◽  
Internal Control System ◽  
The Government

This study aims to examine the effect of transparency, competency, financial accounting systems on the accountability of regional financial management with the government's internal control system as a moderating variable with a case study in Indragiri Hulu Regency. The population of this study were all employees in all OPDs in Indragiri Hulu Regency as many as 45 OPDs so that a sample of 180 respondents was obtained from this population using the purposive sampling method. The data analysis method used in this research is the quantitative analysis method with WarpPLS version 6.0 as data processing software. The results show that transparency, competency, and financial accounting systems affect the accountability of regional financial management, the implementation of the government internal control system can moderate the effect of transparency and financial accounting systems on the accountability of regional financial management, and the implementation of the government internal control system cannot moderate the effect of competency on the accountability of regional finance management. Keywords: Transparency, Competency, Financial Accounting System, The Accountability of Regional Financial Management, Implementation of The Government Internal Control System

scholarly journals A Study on the Relationship between Earnings Quality and Capital Cost-Takes the China Listed Companies as a Sample

2021 ◽  
pp. 48-56
Author(s):  
Chih-Yi Hsiao ◽  
Hui-Hui Kuang ◽  
Hui-Ling Li ◽  
Jia-Li Liu
Keyword(s):  
Earnings Management ◽  
Earnings Quality ◽  
Least Square Method ◽  
Listed Companies ◽  
Capital Cost ◽  
Least Square ◽  
Accounting System ◽  
Ordinary Least Square ◽  
Research Findings ◽  
The Relationship

The phenomenon of false financial statements still exists. However, in addition to the risk of being punished, what kind of price do companies have to pay? In recent decades, with China's rapid progress in economic, the relevant accounting system and corporate governance standards are actively improving, and the earnings quality is improving. This paper takes China's listed companies from 2015 to 2019 as samples, and adopts quantile regression supplemented by ordinary least square method to explore the relationship between earnings quality and capital cost. The research findings show that the higher the earnings management, the higher the capital cost, especially for the company with low capital cost. Nevertheless, for the extremely company with high capital cost, earnings management can reduce the capital cost. The research results can provide the focus of regulators of listed companies and reference for the revision of relevant accounting system.

Innovative mechanisms in the financial accounting system of the enterprise

2021 ◽  
Vol 39 (6) ◽  
Author(s):  
Yuriy Sigidov ◽  
Oksana Akulich ◽  
Nadezhda Chapkina ◽  
Alexander Kokorev ◽  
Lyubov Melnikova
Keyword(s):  
Subject Matter ◽  
System Analysis ◽  
Financial Accounting ◽  
Accounting System ◽  
Accounting Systems ◽  
Qualitative Understanding ◽  
Innovative Solutions ◽  
Current Economic Situation ◽  
The Subject ◽  
The Impact

The relevance of the subject matter of scientific research is determined by the importance of introducing innovative solutions in the activities of modern enterprises in various sectors of the economy in general and the need for a detailed study of various aspects of the impact of innovative mechanisms in ensuring the full functioning of the financial accounting systems of the enterprise in particular. In this context, the purpose of the study is to investigate the role and functions of innovative mechanisms in the financial accounting system of an enterprise, regardless of its field of activity, with an assessment of the effectiveness of the implementation of such innovative mechanisms and methods. The leading approach in this study is the method of system analysis, which allows performing a structured review of various aspects of the subject matter, in terms of identifying the main patterns of implementation of innovative solutions and mechanisms in the activities of the financial accounting system of the enterprise. The results of this study reflect the essence of the research performed and clearly demonstrate the sequence of development and subsequent implementation of innovative mechanisms in the activities of the relevant systems of modern enterprises; the final conclusions of this study are formulated based on the obtained results. The results and conclusions of this study are of significant practical value for specialists working in the financial accounting system of enterprises, regardless of their specific affiliation to certain areas of economic activity, in terms of providing a qualitative understanding of the need to introduce innovative mechanisms in the financial accounting structures of these enterprises, in order to reduce unjustified losses in the activities of these enterprises and increase the overall level of their economic efficiency in the current economic situation.

Instructional Case: General Host: Accounting for a Bond Refunding

1999 ◽  
Vol 14 (3) ◽  
pp. 451-464 ◽  
Author(s):  
Mary Beth Mohrman
Keyword(s):  
Earnings Management ◽  
Stock Prices ◽  
Cash Flows ◽  
Economic Consequences ◽  
Financial Accounting ◽  
Business Press ◽  
Paper Money ◽  
Book Values ◽  
The Relationship ◽  
Interest Expense

This assignment, which involves accounting for a simple bond refunding, achieves several objectives. First, it reinforces basic concepts in bond accounting, such as cash flows, book values, interest expense and gains/losses from early extinguishment. Second, it leads students to critically analyze an article from the popular business press. Third, it illustrates many important issues in financial accounting, such as earnings management, the relationship between earnings and stock prices, and economic consequences. Students are asked to read “Paper Money” from Forbes' “Numbers Game” column. The article describes General Host's bond exchange offer and questions the recognition of a gain in such circumstances. The case assignment requires students to carefully analyze the bond exchange and to question many of the authors' assumptions about the economic impacts of the exchange offer. I have used this case successfully in undergraduate intermediate accounting classes and in an introductory financial accounting course for M.B.A. students.

Can cost and financial accounting be fully re-integrated? The role of the French state in the separation of accounting systems and the failed attempt of the système croisé to re-integrate them

2012 ◽  
Vol 17 (3-4) ◽  
pp. 437-461 ◽  
Author(s):  
Yves Levant ◽  
Marc Nikitin
Keyword(s):  
Dominant Role ◽  
Cost Accounting ◽  
The State ◽  
Financial Accounting ◽  
Accounting System ◽  
Accounting Systems ◽  
Failed Attempt

This article questions whether the separation of financial and cost accounting in France is an irreversible trend. We begin by showing that the integration of financial and cost accounting was quite “natural” up until the 1940s. We then show that after that date, State-imposed standardization of financial accounting led to separation of the two types of accounting. Last, we study the efforts of one individual, Jean-Pierre Lagrange, to promote a return to an integrated accounting system in the 1980s by means of his method named the système croisé. His efforts were in vain. In our opinion, this failure was not due to technical reasons, but can be attributed to the interaction of the interests of the main actors. Among these actors, the State played a dominant role in France by standardizing financial accounting. In addition, Lagrange was unable to obtain the backing of a network of allies to spread his accounting system.

scholarly journals EFFECT OF UNDERSTANDING FINANCIAL MANAGEMENT, REGIONAL FINANCIAL ACCOUNTING SYSTEMS, EFFECTIVENESS OF INTERNAL CONTROL, AND COMMITMENT TOWARDS FINANCIAL PERFORMANCE OF NORTH SULAWESI PROVINCE

2019 ◽  
Vol 8 (01) ◽  
pp. 51
Author(s):  
David Paul Elia Saerang ◽  
Heince R. N Wokas ◽  
Robby J. Kumaat ◽  
Christian Datu
Keyword(s):  
Organizational Commitment ◽  
Financial Performance ◽  
Internal Control ◽  
Financial Management ◽  
Financial Accounting ◽  
Accounting System ◽  
City Governments ◽  
Accounting Systems ◽  
North Sulawesi ◽  
Systems Effectiveness

This study aims to determine, the effect of understanding financial management, regional financial accounting system, effectiveness of internal control and organizational commitment towards financial performance of region and city governments in the province of North Sulawesi. The type of this research is quantitative. The population are all Regional Work Unit (SKPD) government financial managers of North Sulawesi, the respondents are 125 respondents as financial managers namely PPK-SKPD, Head of Finance and Financial Staffs. The Data method is using questionnaires and the analysis is using multiple regression analysis. The result shows that the understanding of financial management and effectiveness of internal control have a significant effect to the financial performance, while the regional financial accounting system and organizational commitment are not significant.Keywords : Understanding Regional Financial Management, Regional Financial Accounting Systems, Effectiveness of Internal control, Organizational Commitment, Local Government Financial Performance

scholarly journals EFEKTIVITAS PENGELOLAAN KEUANGAN DAERAH: PERAN MODERASI SISTEM PENGENDALIAN INTERN PEMERINTAH

2021 ◽  
Vol 2 (2) ◽  
pp. 319-338
Author(s):  
Nana Santika ◽  
Taufeni Taufik ◽  
Devi Savitri
Keyword(s):  
Control System ◽  
Human Resource ◽  
Internal Control ◽  
Financial Management ◽  
Employee Performance ◽  
Financial Accounting ◽  
Primary Data ◽  
Accounting System ◽  
Accounting Systems ◽  
Internal Control System

This study aims to determine the effect of employee performance, regional financial accounting systems, and human resource competencies on the effectiveness of regional financial management which is moderated by the government's internal control system. This research was conducted at Pelalawan District OPD. The data used in this study are primary data that is a questionnaire. The population in this study were employees who worked at the Regional Apparatus Organization in Pelalawan Regency. This study uses purposive sampling. Of 81respondent who participated indicate that: Employee performance and the regional financial accounting system influence the effectiveness of regional financial management but Human resource competence does not affect the effectiveness of regional financial management. The government's internal control system can moderate the effect of employee performance, the regional financial accounting system, and human resources on the effectiveness of regional financial management.

scholarly journals The relationship between the application of the principles of banking governance and the appropriateness of the outputs of the accounting system: العلاقة بين تطبيق مبادئ حاكمية البنوك وملاءمة مخرجات النظام المحاسبي

2019 ◽  
Vol 3 (8) ◽  
Author(s):  
Abeer Abdullah qarib , Aisha Mousa Yousef , Amal Ibrahim Wad
Keyword(s):  
Accounting Information ◽  
Financial Statements ◽  
Financial Information ◽  
Accounting System ◽  
Timely Manner ◽  
Accounting Systems ◽  
The Relationship

The study examined the relationship between the application of the principles of governance and the appropriateness of the outputs of the accounting system, The importance of the study was to highlight the relationship between the appropriate accounting information and the application of the principles of governance in accounting systems in addition to supporting the users' confidence in the financial information issued by the financial statements by providing appropriate information for making the appropriate decision. And aimed to identify the principles of governance and the characteristics of the suitability of the outputs of the accounting system The study recommended that banks should apply the principles of governance to include all banks that have been in compliance with the principles of governance. As well as the need to prepare information and present it in a timely manner to enhance its suitability, with the need to give shareholders all the information, especially regarding unusual processes that affect their rights.      

scholarly journals EFFECT OF EDUCATION AND TRAINING (DIKLAT / BIMTEK), UNDERSTANDING OF REGIONAL FINANCIAL ACCOUNTING SYSTEMS (SIMDA) ON PERFORMANCE OF REGIONAL FINANCIAL MANAGEMENT

2020 ◽  
Vol 1 (1) ◽  
pp. 61-72
Author(s):  
Nenden Restu Hidayah
Keyword(s):  
Financial Management ◽  
Education And Training ◽  
City Government ◽  
Financial Accounting ◽  
Accounting System ◽  
Regional Government ◽  
Accounting Systems ◽  
Government Work ◽  
Positive Effect ◽  
And Training

This study examines the effect of Education and Training (Diklat / Bimtek), Understanding of the Regional Financial Accounting System (Simda) on the Performance of regional financial managers. This research was conducted on 60 regional financial managers in 33 Regional Government Work Units (SKPD) Bengkulu City Government. This study collected data by giving questionnaires to respondents. Research data were processed using the SPSS program.The results of the study prove that Education and Training (Diklat / Bimtek), Understanding of the Regional Financial Accounting System (Simda) has a positive effect on the performance of regional financial managers. This proves that the better the management carried out by the regional government towards Diklat / Bimtek, the understanding of Simda which is owned by the regional financial managers in the SKPD, the better the performance of regional financial managers. Bengkulu City regional government to continue to improve the existing Diklat / Bimtek model, together with increasing understanding of Simda towards local government SKPD.

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