The Limitations of Financial Reporting on Innovation and Its Value-Relevance for the Investor's Decision-Making Process

2019 ◽  
pp. 390-418
Author(s):  
Francisco Leote ◽  
Ana Damião
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Value Relevance ◽  
Financial Statements ◽  
Individual Characteristics ◽  
Decision Making Process ◽  
Accounting Systems ◽  
Financial Factors ◽  
The Individual ◽  
Industry Sectors

This chapter aims to present some limitations of financial reporting on innovation with an impact on the investor's decision-making process. In order to do so, the authors show how accounting recognizes and measures innovation factors: the intangibles. Based on the literature, the authors discuss how the value relevance of financial reporting on innovation is conditioned by non-financial factors. The impacts of the adoption of IFRSs, the effect of the industry sectors and the effect of the individual characteristics of the different countries on the value relevance of the intangible assets are analyzed. The literature suggests a decrease in the value relevance of financial statements due to the manner in which intangibles are recognized and measured in accounting. However, financial reporting on innovation is value relevant to the investor's decision-making and is conditioned by non-financial factors. Value relevance differs among different industry sectors, between different countries and is conditioned by the accounting systems used in the preparation of the financial information.

DECISION-MAKING ON INVESTMENT OF IT-INNOVATION BASED ON FUZZY EXPERT INFORMATION

2018 ◽  
pp. 103-111
Author(s):  
Olga Olegovna Eremenko ◽  
Lyubov Borisovna Aminul ◽  
Elena Vitalievna Chertina
Keyword(s):  
Decision Making ◽  
Individual Characteristics ◽  
Production Model ◽  
Investment Management ◽  
It Projects ◽  
Product Model ◽  
Project Cost ◽  
Reasoning System ◽  
Managerial Decisions ◽  
The Individual

The subject of the research is the process of making managerial decisions for innovative IT projects investing. The paper focuses on the new approach to decision making on investing innovative IT projects using expert survey in a fuzzy reasoning system. As input information, expert estimates of projects have been aggregated into six indicators having a linguistic description of the individual characteristics of the project type "high", "medium", and "low". The task of decision making investing has been formalized and the term-set of the output variable Des has been defined: to invest 50-75% of the project cost; to invest 20-50% of the project cost; to invest 10-20% of the project cost; to send the project for revision; to turn down investing project. The fuzzy product model of making investment management decisions has been developed; it adequately describes the process of investment management. The expediency of using constructed production model on a practical example is shown.

The transformation of the decision-making process on the part of economic agents influenced by social constraints

2020 ◽  
Vol 16 (7) ◽  
pp. 1202-1222
Author(s):  
M.V. Grechko ◽  
L.A. Kobina ◽  
S.A. Goncharenko
Keyword(s):  
Decision Making ◽  
Consumer Choice ◽  
Social Constraints ◽  
Decision Making Process ◽  
Economic Knowledge ◽  
Economic Agents ◽  
The Individual ◽  
Contextual Environment ◽  
Economic Constraints ◽  
External Signals

Subject. The article focuses on the decision-making mechanism used by economic agents given the existing social constraints. Objectives. We devise applied toolkit to study how socio-economic constraints transform the decision-making mechanism used by economic agents. Methods. The study involves means of the expert survey, the method that streamlines economic knowledge. Results. Social constraints are illustrated to influence the decision-making mechanism used by economic agents, assuming that the individual mind relies on specific mechanisms to make judgments and decisions. Generally, the mechanisms are very useful, however they may generate serious errors during the decision-making process. Given the social constraints, economic agents were found to follow four mental models to make their decisions in case of the full or partial uncertainty, i.e. the representative relevance, accessibility, relations, heuristics (modeling). Conclusions and Relevance. The scientific ideas herein show that the inner architecture of a choice an individual makes determines his or her decisions. The decisions often depend on the contextual environment that gives external signals perceived by the individual while evaluating alternative ways. The findings can possibly be used as a mechanism to manage the consumer choice.

Approaches to the Organization of International Accounting in Russian Enterprises

TEM Journal ◽  
2021 ◽  
pp. 249-258
Author(s):  
Ekaterina V. Surkova ◽  
Galina A. Skachko ◽  
Larisa K. Nikandrova ◽  
Maria M. Starkova ◽  
Nina F. Sakharova
Keyword(s):  
Financial Reporting ◽  
Accounting Information ◽  
Financial Statements ◽  
Reporting Standards ◽  
Optimal Method ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
Advantages And Disadvantages ◽  
The Individual ◽  
Selection Of

The article discusses current issues of transformation of accounting information in accordance with international financial reporting standards (IFRS). This study is primarily aimed at developing approaches that determine the need for Russian enterprises to provide accounting information comparable at the international level. The authors analyze methods of transferring data from the Russian Accounting Standard (RAS) to IFRS. The methods used to form financial statements in accordance with IFRS are discussed. The issues of the application of these methods, as well as their advantages and disadvantages, are discussed. The author's approach to the selection of the optimal method of transformation is proposed taking into account the individual needs of organizations.

scholarly journals Dying to divulge: The determinants of, and relationship between, desired and actual disclosure

2020 ◽  
Author(s):  
Erin Carbone ◽  
George Loewenstein
Keyword(s):  
Gender Differences ◽  
Decision Making ◽  
Social Media ◽  
Preliminary Investigation ◽  
Individual Characteristics ◽  
Social Benefits ◽  
Decision Making Process ◽  
Positive Information ◽  
Self Disclosure ◽  
Types Of Information

Studies suggest that sharing thoughts and information with others may be inherently pleasurable and confer health, psychological, and social benefits to the discloser. At the same time, self-disclosure exposes individuals to scrutiny and the risk of rejection and reputational damage, particularly with the advent of digital applications and social media outlets that promote public, and often permanent, disclosing. In an effort to understand the tradeoffs that underlie the decision to disclose, we introduce a distinction between the propensity to disclose and the psychological desire to disclose and present a preliminary investigation into when and why these two constructs diverge. Findings from two exploratory studies reveal the types of information that individuals are most eager to share, as well as the contextual factors and individual characteristics that moderate the desire to share and the circumstances under which this desire is most likely to translate into actual sharing. We replicate findings from prior research that the decision to disclose is a function of content emotionality and valence, but find that the propensity to withhold negative information is most pronounced when the information is about oneself than about others, and that gender differences in disclosure are largely driven by the tendency for men to withhold negative, but not positive, information. Additionally, we capture motives and traits, many of them previously unexplored in the disclosure context, to model the underlying decision-making process that leads to information sharing and distinguish between the act of sharing information and the psychological desire that differentially engender disclosing behavior.

scholarly journals Studi tentang Motivasi ARMY Jakarta dalam Membeli Merchandise Idola (Studi Kasus Kaos Uniqlo X BT21)

Prologia ◽  
2020 ◽  
Vol 4 (1) ◽  
pp. 128
Author(s):  
Johanna Ruthllianie ◽  
Diah Ayu Candraningrum
Keyword(s):  
Decision Making ◽  
Parasocial Interaction ◽  
Decision Making Process ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Consumer Motivation ◽  
Individual Motivation ◽  
Public Figures ◽  
The Individual

This research attempts to adopt the individual motivation behind the decision in purchasing an idol merchandise. In addition the resources focused on the concept of consumer motivation and the consumer decision making process. The concept of motivation includes sources of motivation, divided into motivational intrinsic and motivation extrinsic. While the consumer decision-making process is divided into five steps which are recognized the need, looking for information, evaluation of decision, buying decision, and the consumer behavior after purchasing. The researcher uses a case study of the shirt Uniqlo X BT21 with qualitative method. The results of the research which is the consumer motivation lead to purchasing a Uniqlo X BT21 shirt. Parasocial interaction in fact can influence consumers to purchase merchandise. The more closely the relation between society can lead to higher motivation to purchase the needs. The collaboration between Uniqlo and BTS succeeds in attracting the fans. The results of collaboration between brand and public figures now is a strategy for creating promotional products. Entrepreneurs, who also use this strategy need to see the opportunity by using this phenomenon. Penelitian ini mengangkat tentang motivasi individu dalam keputusan pembelian merchandise idola. Konsep yang digunakan yaitu motivasi dan keputusan pembelian. Konsep motivasi meliputi sumber motivasi, yaitu melalui motivasi intrinsik dan motivasi ekstrinsik. Sedangkan untuk keputusan pembelian melalui lima tahapan yaitu, mengenali kebutuhan, pencarian informasi, evaluasi alternatif, keputusan pembelian dan perilaku pasca pembelian. Penelitian ini menggunakan studi kasus terhadap kaos Uniqlo X BT21 dengan metodologi kualitatif. Hasil penelitian ini yaitu motivasi yang menyebabkan pembelian kaos Uniqlo X BT21. Interaksi parasosial terbukti mampu untuk mempengaruhi pembelian merchandise. Semakin lekat sebuah hubungan parasosial, maka akan semakin tinggi motivasi minat beli. Kolaborasi yang diadakan Uniqlo dengan BTS dapat dikatakan berhasil menarik minat penggemar. Sehingga kolaborasi merek dan public figure kini merupakan sebuah strategi yang dapat dilakukan untuk mempromosikan produk. Pebisnis perlu melihat peluang yang hadir dalam fenomena tersebut.

scholarly journals INFLUENCE OF THE REPLANTING AGE ON YIELD AND GROWTH OF EUCALYPT CLONAL STANDS

2020 ◽  
Vol 44 ◽  
Author(s):  
Geraldo Magela Pereira Filho ◽  
Laércio Antônio Gonçalves Jacovine ◽  
Bruno Leão Said Schettini ◽  
Haroldo Nogueira de Paiva ◽  
Paulo Henrique Villanova ◽  
...  
Keyword(s):  
Decision Making ◽  
Eucalyptus Grandis ◽  
T Test ◽  
Decision Making Process ◽  
Eucalyptus Urophylla ◽  
Productivity Losses ◽  
Individual Volume ◽  
Npk Fertilizer ◽  
The Individual ◽  
Ant Control

ABSTRACT The growth of an eucalypt plantation should be monitored to identify factors that influence its development, helping in the decision-making process, aiming to reduce productivity losses. Thus, the objective of the present study was to evaluate the influence of the age of replanting on the yield and growth of eucalypt stands. The experiment was conducted in an area of CENIBRA S.A. Company, and established in a commercial plantation in August 2011. The application of herbicide and the ant control were performed in total area before planting. Seedlings of Eucalyptus urophylla × Eucalyptus grandis clones in 3.0 × 2.5 m spacing were used. Limestone (1,500 kg ha-1) was applied in total area before planting and 100 g plant-1 of NPK fertilizer (06-30-06) was applied immediately after planting. Four months after the installation of the experiment, 300 kg ha-1 of NPK (06-10-29) was applied. Treatments consisted of four dates of seedling replanting (0, 20, 40 and 80 days after planting) without complementary fertilization, and two treatments (replanting 40 and 80 days after planting) with supplementary fertilization (100g plant-1 NPK 06-30-06). The individual volume of replanting trees was 46.6% lower than of non-replanted ones. Treatments with complementary planting fertilization did not differ (p > 0.05) by the T-test. It is concluded that the longer the time between planting and replanting, the smaller the individual volume of the replanting trees and that the complementary fertilization in seedlings replanted does not favor their growth.

A Cross-Country Empirical Investigation of Corruption and its Relationship to Economic, Cultural, and Monitoring Institutions: An Examination of the Role of Accounting and Financial Statements Quality

2002 ◽  
Vol 17 (4) ◽  
pp. 325-350 ◽  
Author(s):  
Marinilka Barros Kimbro
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting Systems ◽  
Financial Reporting Standards ◽  
Information Monitoring ◽  
Per Capita ◽  
Cross Country

This paper empirically tests a model that links economic, cultural, and information/monitoring variables to corruption in 61 countries. The results offer significant evidence to suggest that higher GNP per capita, moderate economic growth, effective legal and financial accounting systems, collectivist values and low power distance are associated with countries that have low corruption. Countries that have better laws, more effective judiciary, good financial reporting standards, and a higher concentration of accountants are found to be less corrupt.

Why do Restatements Decrease in a Clawback Environment? An Investigation into Financial Reporting Executives' Decision-Making during the Restatement Process

2015 ◽  
Vol 90 (6) ◽  
pp. 2515-2536 ◽  
Author(s):  
Jonathan S. Pyzoha
Keyword(s):  
Decision Making ◽  
Executive Compensation ◽  
Financial Reporting ◽  
Financial Statements ◽  
Data Availability ◽  
Archival Studies ◽  
Key Factors ◽  
Ex Post ◽  
Auditor Quality

ABSTRACT Prior archival studies find that firms that voluntarily adopted clawback policies have experienced a reduction in restatements. I experimentally examine this outcome by investigating the influence of two key factors (i.e., executive compensation structure and auditor quality) on financial reporting executives' (hereafter, “executives”) decision-making regarding a proposed restatement that will lead to a clawback of their incentives. I find that executives (i.e., CFOs, controllers, and treasurers) facing a lower quality auditor are less likely to agree with amending prior financial statements when a higher proportion of their pay is incentive-based. However, this tendency is reduced when executives face a higher quality auditor, indicating that higher quality auditors can act as effective monitors. My results identify an ex post unintended consequence of clawback regulation that could at least partially offset the benefits of the ex ante deterrent effects of clawbacks, and that could contribute to findings of less frequent restatements when clawback policies are in place. I discuss potential implications regarding the role of executives during restatement decisions and auditors' risk assessments in a clawback environment. Data Availability: Data are available from the author upon request.

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