Task Experience as a Predictor of Superior Loan Loss Judgments

2001 ◽  
Vol 20 (1) ◽  
pp. 147-155 ◽  
Author(s):  
William F. Wright
Keyword(s):  
Financial Institution ◽  
Loan Loss ◽  
Senior Managers ◽  
Performance Improvements ◽  
Outcome Feedback ◽  
Timely Feedback ◽  
Judgment Process ◽  
Task Experience ◽  
Biased Judgments

An area of significant importance and risk exposure during an audit of a financial institution is assessing the uncollectible portion of the client's loan portfolio. Auditing the collectibility of a commercial loan can be difficult because this complex judgment is semi-structured and many kinds of information can be relevant. However, timely judgment process and outcome feedback are available and may improve the quality of an auditor's conclusions over time. Therefore, to test for the benefits of task-specific experience, I compare loan judgments provided by inexperienced seniors, experienced managers, and more experienced junior partners and senior managers to a criterion based on the conclusions of senior audit partners. While previous research usually does not indicate performance improvements beyond the level of an audit senior (e.g., Tan and Libby 1997) for this complex task with timely feedback, consistent and substantial performance improvements are reported here. Auditors provided increasingly more appropriate and less biased judgments, and they achieved greater judgment consensus.

scholarly journals The Embellishment of Bottom Line through Hyperbole of Accrued Earnings: A Case of Deliberate Earnings Management of a Non-bank Financial Institution Enlisted in Dhaka Stock Exchange and Chittagong Stock Exchange

2016 ◽  
Vol 2 (4) ◽  
pp. 42
Author(s):  
Md. Thasinul Abedin
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Stock Exchange ◽  
Loan Loss ◽  
Accounts Receivable ◽  
Loan Loss Provision ◽  
Loan Loss Provisions ◽  
Accrued Earnings ◽  
The Impact

The study has tried to find out the key parameters through which a non-bank financial institution can embellish its earnings. The study has found that loan loss provisions increases in line with the increase in loan and advances and interest suspense. Moreover, non-bank financial institutions always report other assets except accounts receivable figure which foreshadows an existence of deliberate inflation of earnings. The study has found a positive impact of total loan loss provisions and interest suspense on accrued income, a clear message that non-bank financial institutions always report more accrued earnings to safeguard their profit. Increase in accrued income in line with total loan loss provision and interest suspense is also validated by increase in accrued income with respect to other assets except accounts receivable figure even though the impact of other assets on accrued income is insignificant at 5% level, an accounting channel through which excess other assets except accounts receivable would be inflated for excess increase in accrued income. The study has deduced that other assets except accounts receivable is a reserve bank for discretionary inflation of earnings even though it is insignificant. The study has used time series monthly data of International Leasing and Financial Services Limited, a non-bank financial institution from 2009-2015 reported in the Statement of NBDC sent to Bangladesh Bank each month. Two-time series models have been used in this study. The first model has tried to find out the impact of loan and advances, interest suspense, and other assets except accounts receivable on total loan loss provision. In the first model, there is a significant impact of loan and advances, interest suspense, and other assets except accounts receivable on total loan loss provision. The second model has tried to discern the impact of total loan loss provision, interest suspense, and other assets on accrued income along with other independent variables namely-loan and advances, total fixed assets, and operating income. The study has found a significant positive impact of total loan loss provision and interest suspense on accrued income and insignificant impact of other assets except accounts receivable on accrued income. For both models, there is no long-run relationship among the variables.

scholarly journals Understanding Post-Training Factors and Job Performance Relationship: Review of Literature for Transfer of Training Enthusiasts

2019 ◽  
Vol 1 (3) ◽  
pp. 33-38
Author(s):  
Soleman Mozammel
Keyword(s):  
Job Performance ◽  
Employee Training ◽  
Training Transfer ◽  
Supervisory Support ◽  
Business World ◽  
Performance Improvements ◽  
Investment Return ◽  
Transfer Training

In the era of competitive industrial time and globalization, enterprises need to have a competent, technologically "up to date," motivated and engaged workforce to maximize productivity. Therefore, in the current socio-economic industrial culture, enterprises are encouraged to be motivated to invest in employee training and development. Scholarly research in the business world have already emphasized on the robust association between learning opportunities for employees leading to their performance improvements. According to studies, businesses that have survived, understood, and learned the prospects of training and its long-term implications for business productivity. But even when the issues of providing training were resolved, that also brought the question of application of the training at the workplace by the employees that may be defined as the term "training transfer." Training transfer by employees is essential for the investment return that was aimed to have higher productivity and profit for organizations. If there is a failure of training transfer through proper implementation of the newly acquired knowledge and learnings, not only the performance stays in the pre-training level, but also there is no investment return for the organization. Many organizations are suffering losses due to failing to implement training transfer adequately in the organization. Therefore, it is essential to ensure proper application of transfer training to secure investment resulting in higher job performance and productivity. That requires a good quality of supervisory support, perceived utility, and higher education. The study discusses both theoretical and practical implications for the organizational stakeholders for better job performances.

scholarly journals Firm Structural Characteristics and Financial Reporting Quality of Listed Deposit Money Banks in Nigeria

2015 ◽  
Vol 9 (1) ◽  
pp. 106 ◽  
Author(s):  
Olumide A. Olowokure ◽  
Muhammad Tanko ◽  
Terzungwe Nyor
Keyword(s):  
Financial Reporting ◽  
Structural Characteristics ◽  
Emerging Market ◽  
Secondary Data ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Loan Loss ◽  
Loan Loss Provisions ◽  
The Impact

<p>The quality of financial report is very crucial as published financial reports remains, for the most part, the only means by which outside shareholders and investors keep themselves informed about the performance of the firm. In the present economic scenario, this concern for financial reporting quality becomes more acute as emerging market economies and more importantly mono economies like Nigeria face greater uncertainties as they combat the challenges of unprecedented fall in oil prices. In addition to this, the suspension of the CEO, Chairman and two other directors of Stambic IBTC bank by the Financial Reporting Council of Nigeria for filling a misleading financial statement for 2013 and 2014 has also shown that the issue of financial reporting quality cannot be overemphasized. Using secondary data from the published reports of thirteen listed deposit money banks in Nigeria for over a period of ten years between 2005 and 2014, this paper seeks to find the determinants of financial reporting quality and reports the findings of the impact of structural characteristics like age, size and level of leverage on financial reporting quality. Using prio studies as a guide, we developed a model for loan loss provisions and generated the residuals, using these residuals know as abnormal loan loss provisions as the dependent variable for the multiple regression analysis, the study did not find any evidence of significant relationship between firm age, size, leverage and financial reporting quality.</p>

Exploring Workplace Experiences of Information Literacy through Environmental Scanning Process

2014 ◽  
pp. 124-140
Author(s):  
Xue Zhang ◽  
Shaheen Majid ◽  
Schubert Foo
Keyword(s):  
Information Literacy ◽  
Information Sources ◽  
Environmental Scanning ◽  
Senior Managers ◽  
Scanning Process ◽  
Workplace Experiences ◽  
Hierarchical Levels ◽  
Travel Industry

Information Literacy (IL), as a key component of education for decades, has been underemphasized at the workplace. This chapter reports on a study aimed to explore workplace experiences of IL through the environmental scanning process adopted by the travel industry in Singapore. Some 42 travel agent companies responded to the survey, and 13 employees, representing various functional units and hierarchical levels, participated in the follow up interviews after the survey. It was found that IL skills had significant influence on the quality of information for decision-making. Senior Managers were satisfied with their employees’ overall level of IL skills. However, many problems still surfaced during the environmental scanning process, such as inability to find the needed information, overreliance on habitual information sources, and improper storage of information.

The Effect of Task and Tool Experience on Maintenance CASE Tool Usage

2004 ◽  
pp. 353-371
Author(s):  
Mark T. Dishaw ◽  
Diane M. Strong
Keyword(s):  
Software Maintenance ◽  
Explanatory Power ◽  
Project Teams ◽  
Use Case ◽  
Case Tools ◽  
Case Tool ◽  
Task Experience ◽  
Computer Aided Software Engineering

Computer-Aided Software Engineering (CASE) tools have been advocated for improving maintainer productivity and the quality of maintained software. While there is evidence that such benefits can accrue to organizations adopting maintenance-oriented CASE tools, a key problem in achieving the desired benefits from CASE tools is low usage of these tools by programmers. The previously tested Maintenance Tool Utilization Model was a first step in investigating the factors that affect whether maintainers choose to use CASE tools during maintenance projects. We test the addition of experience with software maintenance tools and with the software maintenance task to the Maintenance Tool Utilization Model. The role of experience is important because managers can provide training to increase experience and they can ensure that project teams have some members experienced with the tools or with the task. Data for the test are collected from software maintainers working on their organization’s normal maintenance project backlog. Tool experience is significant as both a main and interaction effect, but task experience adds little to the explanatory power of the Maintenance Tool Utilization Model. These results support the value of improved CASE tool training programs.

Individual accountability in Irish credit institutions—Lessons to be learned from the United Kingdom’s Senior Managers’ Regime

2018 ◽  
Vol 47 (1) ◽  
pp. 35-52
Author(s):  
Blanaid Clarke
Keyword(s):  
Central Bank ◽  
Financial Services ◽  
Financial Institution ◽  
Banking Crisis ◽  
Public Concern ◽  
Senior Managers ◽  
Banking Reform ◽  
Intensive Supervision ◽  
Administrative Sanctions ◽  
Individual Accountability

This article examines the Senior Managers' Regime (SMR), the duty of responsibility and the offence relating to a decision causing a financial institution to fail introduced by the Financial Services (Banking Reform) Act 2013 to give legislative effect to the recommendations of the Parliamentary Commission on Banking Standards. The Commission had examined impediments to accountability in the wake of the LIBOR scandal. The article explores the value of introducing similar requirements and regulations in Ireland as a means of improving individual accountability and allaying public concern in light of the Irish Banking Crisis and the more recent tracker mortgage scandal. It concludes that in cases of mismanagement which is not deliberate or reckless, the Central Bank of Ireland's model of proactive and intensive supervision and enforcement might benefit from the utilization of a SMR enhanced administrative sanctions procedure alongside its Fitness and Probity Regime. However, the introduction of an offence in Ireland relating to a decision causing a financial institution to fail, while appearing to respond to a public desire to improve accountability, would give rise to a number of significant challenges particularly in relation to enforcement.

scholarly journals The Advanced Infra-Red WAter Vapour Estimator (AIRWAVE) version 2: algorithm evolution, dataset description and performance improvements

2019 ◽  
Vol 12 (1) ◽  
pp. 371-388 ◽  
Author(s):  
Elisa Castelli ◽  
Enzo Papandrea ◽  
Alessio Di Roma ◽  
Bianca Maria Dinelli ◽  
Stefano Casadio ◽  
...  
Keyword(s):  
Water Vapour ◽  
Large Contribution ◽  
Atmospheric Variability ◽  
Coastal Regions ◽  
Performance Improvements ◽  
Infra Red ◽  
Microwave Imager ◽  
And Performance ◽  
Along Track

Abstract. Total column water vapour (TCWV) is a key atmospheric variable which is generally evaluated on global scales through the use of satellite data. Recently a new algorithm, called AIRWAVE (Advanced Infra-Red WAter Vapour Estimator), has been developed for the retrieval of the TCWV from the Along-Track Scanning Radiometer (ATSR) instrument series. The AIRWAVE algorithm retrieves TCWV by exploiting the dual view of the ATSR instruments using the infrared channels at 10.8 and 12 µm and nadir and forward observation geometries. The algorithm was used to produce a TCWV database over sea from the whole ATSR mission. When compared to independent TCWV products, the AIRWAVE version 1 (AIRWAVEv1) database shows very good agreement with an overall bias of 3 % all over the ATSR missions. A large contribution to this bias comes from the polar and the coastal regions, where AIRWAVE underestimates the TCWV amount. In this paper we describe an updated version of the algorithm, specifically developed to reduce the bias in these regions. The AIRWAVE version 2 (AIRWAVEv2) accounts for the atmospheric variability at different latitudes and the associated seasonality. In addition, the dependency of the retrieval parameters on satellite across-track viewing angles is now explicitly handled. With the new algorithm we produced a second version of the AIRWAVE dataset. As for AIRWAVEv1, the quality of the AIRWAVEv2 dataset is assessed through the comparison with the Special Sensor Microwave/Imager (SSM/I) and with the Analyzed RadioSounding Archive (ARSA) TCWV data. Results show significant improvements in both biases (from 0.72 to 0.02 kg m−2) and standard deviations (from 5.75 to 4.69 kg m−2), especially in polar and coastal regions. A qualitative and quantitative estimate of the main error sources affecting the AIRWAVEv2 TCWV dataset is also given. The new dataset has also been used to estimate the water vapour climatology from the 1991–2012 time series.

Factors explaining the Impact of Performance Measures in European Local Governments

2015 ◽  
Vol 13 (2) ◽  
pp. 229-248 ◽  
Author(s):  
Lourdes Torres ◽  
Vicente Pina ◽  
Caridad Martí
Keyword(s):  
Decision Making ◽  
Human Resources ◽  
Performance Measures ◽  
Local Governments ◽  
Monetary Incentives ◽  
Senior Managers ◽  
Hr Management ◽  
Perceived Impact ◽  
The Impact

This paper seeks to identify the drivers of the variations in the impact perceived by managers of the implementation of performance measures (PM) across European local governments. We argue that insights from the use of PM for managerial processes and human resources (HR) management features condition the perceived impact of PM systems. The data was collected through a questionnaire answered by local governments of 16 European countries. The results show that the higher the use of PM in performance-oriented budgeting processes, the higher the impact of PM on improvements in the quality of decision-making. Monetary incentives linked to performance better explain the actual results in PM implementation than the kind of HR system of the cities and the academic backgrounds of their senior managers.

scholarly journals The quality of accident and health data in the construction industry: interviews with senior managers

1999 ◽  
Vol 17 (2) ◽  
pp. 197-204 ◽  
Author(s):  
DIANE E. GYI ◽  
ALISTAIR G.F. GIBB ◽  
ROGER A. HASLAM
Keyword(s):  
Construction Industry ◽  
Health Data ◽  
Senior Managers
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