Tolerance for Ambiguity, Uncertainty Audit Qualifications and Bankers' Perceptions

1993 ◽  
Vol 72 (3) ◽  
pp. 915-919 ◽  
Author(s):  
Judy Tsui
Keyword(s):  
Interest Rate ◽  
Risk Tolerance ◽  
Financial Information ◽  
Median Score ◽  
Personality Variable ◽  
Tolerance For Ambiguity ◽  
Loan Risk ◽  
A Company

Using 24 bankers as volunteer subjects, this study examined the effects of tolerance for ambiguity, a personality variable, on bankers' perceptions of loan risk. Subjects who were classified as scoring high and low on tolerance for ambiguity on the basis of a median score split on MacDonald's version of Rydell and Rosen's scale were given identical financial information about a company including a footnote disclosure on an uncertainty regarding pending litigation and a “subject to” audit qualification. They were requested to estimate interest rate premiums they would recommend for a loan application. The subjects' estimates of interest rate premiums were used to operationalize loan risk. Tolerance for ambiguity affected subjects' perceptions of loan risk, with individuals low on tolerance for ambiguity requiring higher interest rate premiums than individuals high on tolerance for ambiguity.

scholarly journals Pelatihan Untuk Pengajuan Pembiayaan Mudharabah Perbankan Syariah Sebagai Peningkatan Kinerja UMKM

2019 ◽  
Vol 3 (1) ◽  
pp. 15
Author(s):  
Mohammad Rizal ◽  
Arini Fitria Mustapita ◽  
Arista Fauzi Kartika Sari
Keyword(s):  
Community Service ◽  
Financial Management ◽  
Financial Information ◽  
Bank Credit ◽  
Islamic Banking ◽  
Service Activities ◽  
Presentation Methods ◽  
Level Of Understanding ◽  
Tutorial Systems ◽  
A Company

Financial management is one of the main aspects for the progress of a company. Accounting is a process or way of producing financial information that can be used to make a decision for its users. Implementation methods of Community Service activities is carried out using presentation methods, tutorial systems, and mentoring. The results of the training and mentoring activities for making Islamic banking mudharabah financing proposal aimed at residents of Malang City Kasin Village who are also perpetrators or owners of MSMEs, have been evaluated based on the response and the results of the practices carried out by the participants and assistance for 3 days. This evaluation of community service activities was carried out through a questionnaire and the results of feedback on questions in the questionnaire relating to training and mentoring materials for making bank credit proposal and the enthusiasm of the participants in each question and answer session. The level of understanding of the participants in understanding the material that has been delivered is grouped on a scale of 71% -80.99%, then the community service activities are declared "quite good" and there are 3 mudharabah financing proposals available from the results of mentoring activities

scholarly journals Interest Rate Swaps: Risk Exposure And Financial Disclosure

2011 ◽  
Vol 6 (1) ◽  
pp. 8
Author(s):  
William B. Riley ◽  
G. Stevenson Smith
Keyword(s):  
Interest Rate ◽  
Balance Sheet ◽  
Financial Information ◽  
Financial Disclosure ◽  
Risk Exposure ◽  
Interest Rate Swaps ◽  
Financial Disclosures ◽  
Changes In Risk ◽  
Swap Agreement ◽  
Interest Payments

In recent years, the trading of interest payments on debt obligations has become a major form of off-balance sheet financing. As swaps have increased in dollar volume, the amount of financial disclosure about these instruments has remained nonexistent or minimal. Yet, even with a lack of financial information available to evaluate swaps, previous analyses of swaps have always focused on their positive aspects. Our analysis finds there are negative aspects to swaps that need to be considered. The issues of lack of financial disclosure, unfavorable changes in risk exposure as well as questions about risk evaluations of firms involved in swaps are all related to the negative aspects of swaps. These issues are considered here. It is concluded that although there are advantages to swaps, these advantages are intrinsic to the instrument itself rather than to the alleged arbitrage profits. Furthermore, an example is used to illustrate how a firms risk exposure can be altered by a swap agreement. The ability of the market to evaluate the change in this risk may be hampered by lack of financial disclosures.

scholarly journals Integrated Reporting Assurance: Perceptions of Auditors and Users in Spain

2019 ◽  
Vol 11 (3) ◽  
pp. 713 ◽  
Author(s):  
Estibaliz Goicoechea ◽  
Fernando Gómez-Bezares ◽  
José Ugarte
Keyword(s):  
Financial Information ◽  
Audit Report ◽  
Integrated Reporting ◽  
Reporting Framework ◽  
International Integrated Reporting Council ◽  
Audit Activity ◽  
A Company

Integrated reporting is a key instrument used to inform stakeholders about the sustainability issues of a company. Only an assured report can effectively instill confidence in its users regarding the sustainability of the company. Based on the International Integrated Reporting Framework issued by the International Integrated Reporting Council (IIRC), the authors solicited perceptions from auditors and audit report users about several aspects of integrated reporting assurance. An analysis of the responses suggests that integrated reporting assurance is important, but there are many challenges (both methodological and related to the characteristics of non-financial information) for auditors to overcome. Reporting companies and auditors must work to overcome these problems. The former ones must improve the quality of non-financial information and the later must adapt their audit procedures. This paper provides valuable insights into preferences regarding the form and content of the audit report on integrated reporting. This study is useful to regulators of audit activity, auditors’ corporations, the IIRC, and other international associations, academics, and audit report users, and contributes to the current integrated reporting literature by examining the perceptions of auditors and users regarding the assurance of integrated reporting. Integrated reporting assurance is still an under-explored field of research.

The challenge of unbiased application of risk analysis towards future profitable exploration

2016 ◽  
Vol 8 (1) ◽  
pp. 259-266 ◽  
Author(s):  
Gary P. Citron ◽  
P. Jeffrey Brown ◽  
James MacKay ◽  
Peter Carragher ◽  
David Cook
Keyword(s):  
Corporate Strategy ◽  
Predictive Performance ◽  
Risk Tolerance ◽  
Past Performance ◽  
Play Analysis ◽  
Technology Applications ◽  
A Company ◽  
Forward Looking

AbstractWe illustrate how the combination of both ‘backward-looking’ and ‘forward-looking’ perspectives serves as a powerful catalyst for profitable exploration. The phrase ‘backward-looking’ refers to a company's discipline to rapidly learn from their past performance. The process utilizes tracking predictive performance to focus on patterns from exploration parameter results relative to forecasts. The learnings are implemented through technology applications and improved forecasts that can lead ultimately to a more predictive (i.e. calibrated) portfolio. This discipline may be viewed as time-consuming, but is a critical part of the role of a professional. Often we observe that a calibrated state of accurately estimating the chance of success was achieved before a company reached a calibrated state of prospect pre-drill size prediction. The phrase ‘forward-looking’ here refers to a company's ability to conduct three tasks. First, exploration from a play perspective that quantifies candidate plays in a comparative sense. Second, integrate quantitative play analysis and an understanding of their risk-tolerance levels in order to build comprehensive models of how different plays can compete to best accomplish the goals of corporate strategy. Third, to apply the same discipline of unbiased, calibrated estimation to the characterization of prospects as they are technically matured to the drill-ready state.

scholarly journals Pengaruh Terhadap Financial Literacy, Resiko Toleransi, Kemampuan Managemen Resiko Dalam Keputusan Investasi

2021 ◽  
Vol 2 (2) ◽  
pp. 170-176
Author(s):  
Joli Afriany ◽  
Andy Hakim
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Financial Literacy ◽  
Investment Decision ◽  
Risk Tolerance ◽  
Management Ability ◽  
The Right ◽  
A Company

Investing is a very profitable activity if it is carried out properly and correctly based on the right considerations, but investing can not only have a good impact it can also have a bad impact because of errors in seeing the ability of the company to analyze important things related to impact. the continued operation of a company, decisions in investment are not only profitable but can be detrimental, can be likened to two interrelated coins so it is necessary to know several factors on the company's ability in the financial literature, risk tolerance and risk management ability of a company, each criterion affects the assessment of decisions investment, investment also helps companies in the pace of operations of a company. The investment decision is made by using a decision-making approach, namely the SAW method

scholarly journals Interest Rate Dan Political Connection Pada Harga Saham

2019 ◽  
Vol 2 (1) ◽  
pp. 1-12
Author(s):  
Farah Margaretha Leon ◽  
Putri
Keyword(s):  
Interest Rate ◽  
Positive Impact ◽  
Stock Exchange ◽  
Share Price ◽  
Political Connection ◽  
Managerial Implication ◽  
Factors Affecting ◽  
Moderation Effect ◽  
Moderate Effect ◽  
A Company

Background of Research related with share price as indicator in assessing firm’s financial condition. So that investors need to know which factors affecting share price of a company. Purpose of Research is to obtain empirical evidence about factors affecting share price with interest rate and political connection as moderating variables. Research Method adopted in this research is multiple regressions. Population in this study is companies which consistently listed in Indonesia Stock Exchange from 2012 until 2016. Technique use for taking sample is purposive sampling. There are 63 companies selected as final sample. Result Obtained shows that dividend, earnings per share (EPS), return on equity (ROE) and profit after tax (PAT) partially affected share price of a company. On the other hand, retention ratio did not affect share price of a company. Interest rate as moderating variable has moderation effect to dividend, ROE and PAT but no moderate effect found with RR and EPS. Political Connection as second moderating variable has moderation effect to EPS and PAT but did not has moderate effect to dividend, RR and ROE. Managerial Implication hopefully this research could give information for managers that dividend not always give positive impact to share price. If a company wants to increase their share price, they should pay attention to amount declared as EPS, ROE and PAT because these three variables give positive impact to share price of a company.

Pengaruh Informasi Rasio Keuangan dan OpiniAudit Tahun Sebelumnya Terhadap Penerimaan Opini Audit Going Concern

2016 ◽  
Vol 7 (2) ◽  
pp. 75-93
Author(s):  
Benedictus Wibisono Senosuryoputro ◽  
Ratnawati Kurnia
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Financial Information ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Audit Opinion ◽  
Going Concern ◽  
Time Period ◽  
Capital Adequacy Ratio ◽  
A Company

This research as causal research studies conducted to establish a causal relationship between variables Quick Ratio, Loan to Deposit Ratio, Non-Performing Loans, Return on Assets, Capital Adequacy Ratio, and Prior Year Audit Opinion on the acceptance of going concern audit opinion. The object of this research is the banking companies listed in Indonesia Stock Exchange in 2008 - 2012.  Samples were taken by using purposive sampling as many as 24 banking company. Criteria taken among companies that publish financial statements audited by an external auditor in the year 2008 - 2012 and has a poor financial ratios (LDR<78% and LDR> 92%, NPL>5%, ROA<1.2%, and CAR<8%) at least one time period between the years 2008-2012, in accordance with regulation of Bank Indonesia. This research use Regression logistic, because the dependent variable measured by nominal scale, therefore dummy model is used, where 1 is symbolized for a company that received going concern audit opinion, and 0 is symbolized for a company that not received going concern audit opinion. In testing the hypothesis can be seen that only the previous year's audit opinion variable which is non-financial information, have a significant influence on the acceptance of going concern audit opinion. While other variables such as Quick Ratio, Loan to Deposit Ratio, Non-Performing Loans, Return on Assets and Capital Adequacy Ratio which is a ratio of financial information, does not have a significant effect on the auditor in the provision of going concern audit opinion. Keywords: Acceptance of Going Concern Audit Opinion, Quick Ratio, Loan to Deposit Ratio, Non-Performing Loans, Return on Assets, Capital Adequacy Ratio, Prior Year Audit Opinion.

scholarly journals PENGARUH PENGETAHUAN KEUANGAN, RISK TOLERANCE TERHADAP INVESTASI SAHAM, DIMODERASI GENDER

2020 ◽  
Vol 17 (1) ◽  
pp. 91
Author(s):  
Indah Yuni Kurniawati S
Keyword(s):  
Investment Decisions ◽  
Risk Tolerance ◽  
Financial Information ◽  
Financial Knowledge ◽  
Significant Positive Effect ◽  
Reference Information ◽  
Self Image ◽  
Stock Investment ◽  
Negative Effect ◽  
Positive Effect

This study aims to determine the effect of financial knowledge and tolerance on stock investment decisions (corporate self-image, reference information and financial information), with data analysis techniques using SEM on WarpPLS, there are 112 respondents with those in accordance with this study. Based on the results of the study, financial knowledge has a significant negative effect on the company's self-image and referral information, but a significant positive effect on financial information. Risk tolerance has only a significant positive effect on financial information and does not have a significant effect on corporate self-image and referral information. Gender cannot moderate the effect of risk tolerance on stock investment decisions. Keywords                   : stock investment, knowledge, risk tolerance

scholarly journals Fractal Interpolation in the Financial Analysis of a Company

2016 ◽  
Vol 8 (1) ◽  
pp. 80
Author(s):  
Miguel Angel Leon-Ogazon ◽  
Edna Araceli Romero-Flores ◽  
Tomas Morales-Acoltzi ◽  
Angel Machorro-Rodriguez ◽  
Marcos Salazar-Medina
Keyword(s):  
Numerical Experiments ◽  
Financial Analysis ◽  
Linear Interpolation ◽  
Financial Information ◽  
Fractal Interpolation ◽  
Missing Observations ◽  
Fractal Method ◽  
New Approach ◽  
A Company

This article discusses a new approach to financial analysis of a company, using the technique known as a function of fractal interpolation, to calculate missing observations in a database containing financial information about an organization. Numerical experiments were carried out to compare the effects of using traditional linear interpolation with the function of fractal interpolation, revealing that the data adjusts better to the fractal method.

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