R&D Entities: Is Control Possible without Owning a Single Share of Stock?

2004 ◽  
Vol 19 (2) ◽  
pp. 239-247 ◽  
Author(s):  
Michael L. Davis
Keyword(s):  
Research And Development ◽  
Pharmaceutical Company ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
The Impact ◽  
The Relationship ◽  
Fixed Period

This case addresses the accounting for the relationship between a pharmaceutical company and a research and development entity that it created and for which it raised operating funds via a limited private offering. After the offering, the pharmaceutical company does not own any of the R&D entity's stock. However, the stock is callable for a fixed period by the pharmaceutical company and the operating agreements between the two entities leave little room for the R&D company to make any substantive decisions on its own, or to direct its current and future operations. Most of the questions in the case deal with the issue of whether control exists, the impact of that answer on the consolidated financial statements, and the details and costs of calling the stock.

The relationship between narcissism, managerial overconfidence and comparability of financial statements of listed companies

2021 ◽  
Vol 19 (5) ◽  
pp. 681-700
Author(s):  
Mohammad Almaleki ◽  
Mahdi Salehi ◽  
Mahdi Moradi
Keyword(s):  
Stock Exchange ◽  
Chief Executive ◽  
Financial Statements ◽  
Business Environment ◽  
Multiple Regression Model ◽  
Content Type ◽  
Institutional Settings ◽  
Managerial Overconfidence ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the impact of managerial narcissism and overconfidence on financial statements’ comparability. In other words, this paper seeks to answer the question of whether the personality characteristics of managers may affect the level of financial statements’ quality of commercial entities or not. Design/methodology/approach The research hypotheses are tested using a sample of 896 observations taken from the Tehran Stock Exchange and 245 observations from the Iraqi Stock Exchange during 2012 and 2018 using the multiple regression model based on the combined data technique. Findings The findings show that managerial narcissism is positively and significantly associated with Iran’s financial statement comparability. In contrast, Iraqi data articulate a negative association between these two variables. This paper finds that Chief Executive Officer overconfidence and financial statements’ comparability are negatively related in both countries. Following the market variation, the different findings suggest that institutional settings such as the general managerial style, adopting international accounting standards (now IFRS) leading to the extent of auditing market globally in Iraq and suffering from international sanctions in Iran, the governing business environment may play an allocative role in preparing financial statements. Originality/value The present research is the first research conducted in two emerging markets (Iran and Iraq) examining the relationship between managers’ narcissism and overconfidence and financial statements’ comparability. Therefore, the present research in this area can significantly contribute to the development of science and knowledge.

scholarly journals The influence of culture on disclosures in financial statements prepared under International Financial Reporting Standards

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 111-132 ◽  
Author(s):  
Jerzy Gierusz ◽  
Katarzyna Koleśnik
Keyword(s):  
Financial Reporting ◽  
Comparative Studies ◽  
Financial Statements ◽  
Arab Countries ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Financial Disclosures ◽  
The Impact

The primary objective of this article is to investigate the impact of culture (as measured by Hofstede) on disclosures in financial statements prepared under International Financial Reporting Standards (IFRS) by firms from different countries. The sample comprises 2011−2013 consolidated financial statements of stock companies (excluding banks, insurance, and other financial institutions) from four countries repre- senting different cultural areas: the United Kingdom (Anglo), Germany (Germanic), Poland (Central Eastern Europe; CEE) and Kuwait (Arab). The research material came from 312 annual consolidated financial statements from 104 companies. The results reveal that cultural values have a significant impact on financial disclosures even after the use of IFRS. The paper is one of the few comparative studies attempting to assess the effects of culture on financial disclosures in Western Europe countries, CEE countries and Arab countries. Most of the international comparative studies in this research area have neglected CEE and Arab countries.

Impact of Research and Development on Firm Performance

2014 ◽  
Vol 4 (1) ◽  
pp. 357 ◽  
Author(s):  
Aimen Ghaffar ◽  
Waseem Ahmed Khan
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Return On Assets ◽  
Return On Equity ◽  
Positive Correlation ◽  
Important Concept ◽  
Independent Variables ◽  
Earnings Per Share ◽  
The Impact ◽  
The Relationship

This study has been conducted to see the impact of research and development budget on the performance of the firms. Research and development is an increasingly important concept in order to have success in this era. The paper finds out the relationship between research and development and firm performance. Firm performance is measured through the ratios of return on assets, return on equity and the earnings per share of the firms. The data analyzed by using SPSS. Results confirmed the positive correlation between the dependent and the independent variables. Limitations of the study were shortage of time and studying of a single sector. In future, different other sectors can be studied to see the impact of research and development on their performance.

scholarly journals Impacto del gobierno corporativo en el valor de las empresas latinoamericanas: evidencia desde el MILA

2021 ◽  
Vol 12 (26) ◽  
pp. 73-82
Author(s):  
Sandra Milena Torres-Cano ◽  
Diego Andrés Correa-Mejía
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Financial Performance ◽  
Latin American ◽  
Data Model ◽  
Financial Statements ◽  
Panel Data Model ◽  
Performance Variables ◽  
The Impact ◽  
The Relationship

Corporate Governance is a mechanism that seeks to strengthen the control bodies and their efforts, by combining principles and techniques to invigorate the value of companies and generate confidence in investors and all Stakeholders. This research seeks to analyze the impact of corporate governance on the values of companies that belong to the Latin American Integrated Market (MILA). The financial statements of the 97 companies from the years 2012 to 2018 were analyzed using a statistical panel data model to establish the relationship between the corporate governance variables and the financial performance variables. Lastly, it is concluded that non-economic mechanisms such as the implementation of adequate control policies positively influence the value of companies and generate support for investors.

scholarly journals Fair value in the measurement of assets and liabilities of selected banks

2020 ◽  
Vol 107 (163) ◽  
pp. 119-136
Author(s):  
Jerzy Gierusz ◽  
Karolina Dąbrowska
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Fair Value ◽  
Consolidated Financial Statements ◽  
Warsaw Stock Exchange ◽  
The Subject ◽  
The One ◽  
Subjective Estimates ◽  
The Impact ◽  
Financial Result

The main purpose of this article is to determine the impact of changes in the fair value of assets and liabilities on the overall net result of selected banks listed on the Warsaw Stock Exchange. The research covered the consolidated financial statements of five banks, for the years 2014-2018. Methods of analyzing the literature on the subject, financial statements, and legal acts, including selected IFRS, were used. It has been shown that, on the one hand, fair value revaluations have a significant impact on the financial result of the described entities; on the other hand, the fair value in these entities is determined mainly at the 1st level of the hierarchy. This means that the basis for determining the fair value is observable prices on the market, and that the impact of subjective estimates on the financial result is small.

scholarly journals The Impact of The Quality of Financial Statements on Local Revenue Using Examination Opinion Results as Moderating Variable

2017 ◽  
Vol 6 (1) ◽  
pp. 122-133
Author(s):  
Arik Susbiyani
Keyword(s):  
Local Governments ◽  
Financial Statements ◽  
City Governments ◽  
Financial Reports ◽  
Financial Report ◽  
Local Revenue ◽  
Positive Effects ◽  
The Impact ◽  
The Relationship

This study aimed to examine the influence of the financial statements on local revenue by using the results of the examination opinion as moderating variable. The study used Legitimacy Theory to explain and analyze the relationship between variables. The population in the study was all the districts and cities in Indonesia totaling 497 county and city governments. The sampling method used in the study was judgment sampling. Samples that met the criteria of the study were 116 local governments. The analytical tool used in this research was the analysis of MRA (Moderated Regression Analysis). The results showed that the effects of the partial test of the quality of financial reports to local revenues were not significant positive effects. While the partial test results stating the influence of audit opinion on local revenue having positive effects were not significant. Other results showed that the interaction between the results of the examination opinion to the quality of financial statements was insignificant on the quality of financial statements. In other words, the results of the examination opinions moderated (strengthened) the relationship between quality of financial report on local revenue of district and city governments in Indonesia.

The Relationship of Falsifi cation of Financial Statements and Hostile Behavior of Company Managers

Auditor ◽  
2020 ◽  
Vol 6 (3) ◽  
pp. 11-18
Author(s):  
Lyudmila Sotnikova
Keyword(s):  
Financial Statements ◽  
Sociological Research ◽  
Negative Type ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Type Of Management

Th e article uses the results of recent sociological research on the impact of hostile behavior of company managers, so-called «abuser» managers, negative type of management, on employees of companies that cause signifi cant harm to the economy. Th e article establishes the relationship between hostile behavior of management and fraudulent misrepresentation of accounting (fi nancial) statements and proves the need to conduct certain audit procedures aimed at identifying hostile behavior of management.

scholarly journals The relationship between corporate governance and stock prices in the GCC financial markets

2020 ◽  
Vol 17 (2) ◽  
pp. 57-64 ◽  
Author(s):  
Muneer Mohammed Saeed Al Mubarak
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Stock Prices ◽  
Financial Management ◽  
Stock Price ◽  
Financial Statements ◽  
Management Literature ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

The study investigates the impact of corporate governance characteristics on stock prices in the Gulf Cooperation Council (GCC) financial markets. It covers the financial markets of four (GCC) countries with a sample of 237 firms for the period of 2013-2017. The study was based on the GCC financial markets’ database, financial statements and ancillary notes which include corporate governance, stock prices by Bloomberg and share location. A multi-regression model was used. The independent variables were four corporate governance characteristics and the dependent variable was the stock price, in addition to using a number of control variables. A positive relationship was found between corporate governance and return on stock. The Gulf companies that have increased levels of corporate governance have increased returns to their shares, indicating that these companies are working to reduce the agency’s cost and eliminate the conflict between shareholders and directors. Few studies have focused on the relationship of corporate governance characteristics on stock prices in the GCC financial markets. The existing study contributes to the financial management literature by providing further evidence on such a relationship, especially in emerging countries. It serves as a guide to investors looking for the best investments in reliable companies in the region

scholarly journals The Impact of Chair–Team Sociodemographic Dissimilarity on the Relation Between Chair Power and Entrepreneurial Ventures’ R&D Intensity: Evidence From China

2021 ◽  
Vol 11 ◽  
Author(s):  
Yaoyi Zheng ◽  
Shufen Dai ◽  
Yueting Li ◽  
Yi Su
Keyword(s):  
Panel Data ◽  
Social Identity ◽  
Research And Development ◽  
Entrepreneurial Firms ◽  
Entrepreneurial Ventures ◽  
Empirical Results ◽  
Growth Enterprise Market ◽  
The Impact ◽  
The Relationship ◽  
China’S Growth

Contemplating the actual leaders of entrepreneurial firms and socio demographic dissimilarity between leaders and their teams, this study adopts panel data on the entrepreneurial firms of the China’s Growth Enterprise Market and empirically examines the influence of chair power on research and development (R&D) intensity of entrepreneurial firms from the perspective of social identity. The results indicate that chair power positively affects entrepreneurial firms’ R&D intensity. The chair–team sociodemographic dissimilarity moderates the relationship in such a way that chair power is negatively related to entrepreneurial firms’ R&D intensity only when chair–team sociodemographic dissimilarity is high. The execution of robustness checks authenticates the veracity of the empirical results.

scholarly journals i, The Impact of Adoption of IFRS 9 on the Value Relevance Accounting Information for the Companies Listed in ISX

2021 ◽  
Vol 11 (3) ◽  
Author(s):  
Prof Dr Bushra Najem Aubdullah Al- Mashhadan ◽  
Prof Dr Bushra Najem Aubdullah Al- Mashhadan
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Financial Statements ◽  
Book Value ◽  
Earnings Information ◽  
Income Statement ◽  
Ifrs 9 ◽  
The Impact ◽  
The Relationship

This research aims to know the effect of adopting IFRS 9 on the relevance of the value of the accounting information of the companies in the Iraqi Stock Exchange. Researchers relied on analyzing the financial statements of 10 listed companies for years 2016 – 2019. Researchers used the Ohlson price model to test the relationship between accounting information and value relevance. The research indicated that there is a significant relationship between the adoption of IFRS 9 and the relevance of the value of the earnings and the book value, but the earnings information is more relevance than the book value information, it is due to the interest of investors in the income statement in making investment decisions.

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