scholarly journals Fair Value Accounting and Corporate Reporting in Nigeria: A Logistics Regression Approach

2020 ◽  
Vol 11 (2) ◽  
pp. 301
Author(s):  
A. E. Adegboyegun ◽  
E. Ben-Caleb ◽  
A. O. Ademola ◽  
J. U. Madugba ◽  
D. F. Eluyela
Keyword(s):  
Strong Relationship ◽  
Fair Value ◽  
Cash Flows ◽  
Primary Data ◽  
Fair Value Accounting ◽  
Corporate Reporting ◽  
Regression Approach ◽  
The Impact ◽  
Future Cash Flows ◽  
Structured Questionnaire

This study examined the impact of fair value accounting on corporate reporting in Nigeria. The primary data used were gathered through a well-structured questionnaire, designed and administered to 120 respondents, who are made up of accountants, auditors, bankers, financial experts and practitioners in Lagos State, Nigeria. We adopted the logistic regression approach in analyzing the research questions. We found that fair value accounting has impact on corporate reporting. The Cox and Snell’s R-Square revealed that 67.1% of the variation in the corporate reporting was explained by the logistic model. We further found a moderate strong relationship between the fair value accounting and corporate reporting. Based on this finding, the study concluded that the used of fair value helped in predicting the earnings and assessment of the amounts, timing and uncertainty of future cash flows in corporate reporting which dependent on its reliability. However, institutional factors played an essential role in enhancing the reliability of discretionary fair value estimates which in return increased the informativeness of accounting information in corporate reporting.

scholarly journals Fair value accounting and earning management: The impact of unobservable inputs on earning quality. Evidence from the US

2019 ◽  
Vol 16 (2) ◽  
pp. 8-18 ◽  
Author(s):  
Marco Pompili ◽  
Marco Tutino
Keyword(s):  
Financial Reporting ◽  
Negative Impact ◽  
Evaluation Process ◽  
Strong Relationship ◽  
Fair Value ◽  
Financial Instruments ◽  
Fair Value Accounting ◽  
Earning Quality ◽  
The Impact

Accounting standard boards (IASB and FASB) are aimed at designing high-quality standards able to increase transparency and comparability of financial reporting. They have chosen fair value accounting (FVA) approach to improve the quality of financial reporting and at the same time help financial reporting users in the decision-making process. During recent years, an intense debate has arisen about the trade-off between relevance and reliability of accounting information using this approach. Many authors outline problems related to the fair value hierarchy valuation of financial instruments, in particular, the discretionary use of unobservable inputs in financial instruments valuation process in support of earnings management. Tutino and Pompili (2018) have identified a general negative correlation between the extent of FVA and earning quality. Stating this, the main objective of the paper, using the same approach of the previous one, is to identify the specific impacts of unobservable inputs on earning quality. Theory and previous literature suggest a major negative impact of unobservable inputs than observable ones on the quality of information provided within financial reporting. Results show a negative and strong relationship between FVA and earning quality for US banks that do not depend on the hierarchy of input used in the evaluation process. These results suggest new considerations on the reliability of fair value concerning the possibilities of manipulation given to the management with this approach.

The joint effects of management incentive and information precision on perceived reliability in fair value estimates

2014 ◽  
Vol 27 (2) ◽  
pp. 188-206 ◽  
Author(s):  
Ning Du ◽  
John E. McEnroe ◽  
Kevin Stevens
Keyword(s):  
Confidence Level ◽  
Fair Value ◽  
Cash Flows ◽  
Point Estimate ◽  
Fair Value Accounting ◽  
Content Type ◽  
Information Precision ◽  
Representational Faithfulness ◽  
Main Criticism ◽  
Future Cash Flows

Purpose – The purpose of this paper was to examine whether a less precise (or imprecise) estimate may increase investors’ confidence and improve investors’ perceptions of fair value reliability. The main criticism of fair value accounting has been its lack of reliability perceived by investors. Design/methodology/approach – A 2 × 3 randomized experiment was used where management incentive and information precision are manipulated. Findings – The results from this study indicate that perceived reliability is jointly affected by management’s incentives and information precision. Reliability rating is the highest for fair value stated as a point estimate with a specified confidence level attached to it. Further analysis indicates that higher perceived reliability is related to its representational faithfulness because participants perceive that a point estimate with a specified confidence level better matches uncertainty in measuring future cash flows. Originality/value – This is the first study to examine whether a less precise (or imprecise) estimate may increase investors’ confidence and improve investors’ perceptions of fair value reliability. Because of the subjectivity and uncertainty in fair value estimates, less precise fair value estimates may not be viewed as less reliable. In fact, using a precise format to represent fair value estimates may not be appropriate (neither reliable nor credible), because a precise point estimate fails to capture its underlying uncertainty in future cash flows. A less precise format could represent a credible choice for fair value because it reflects uncertainty and subjectivity and effectively communicates management’s assessments of variability in future cash flows.

Reconsidering the Prudential Filter for the Cash Flow Hedge Reserve in View of the Purpose of Banking Regulation

2021 ◽  
Vol 54 (2) ◽  
pp. 265-299
Author(s):  
Alois Paul Knobloch ◽  
Felix Krauß
Keyword(s):  
Cash Flow ◽  
Banking Regulation ◽  
Fair Value ◽  
Cash Flows ◽  
Positive Effects ◽  
Tier 1 ◽  
Value Changes ◽  
The Impact ◽  
Future Cash Flows ◽  
Tier 1 Capital

Common Equity Tier 1 capital of credit institutions is adjusted by the prudential filter for the cash flow hedge reserve according to art. 33(1)(a) CRR. Thereby, fair value changes of hedging instruments, especially of derivatives, are neutralized by imputed fair value changes of future cash flows that are part of a cash flow hedge. However, these future cash flows are (mostly) expected to occur under market conditions and, thus, imputed fair value changes are not reflected in changes of present values derived from real transactions that exist at the time of the regulatory capital calculation. As a result, positive effects on Common Equity Tier 1 capital can be viewed critically in regard to the prudence principle of banking supervision if an initial reduction in Common Equity Tier 1 capital due to losses from hedging instruments is corrected. Furthermore, the adjustment is case specific and depends on the hedge effectiveness, which is questionable because of consistency reasons. To solve these weaknesses, we suggest to eliminate the prudential filter for the cash flow hedge reserve as a whole. This would lead to a better quality of Common Equity Tier 1 capital by improving its loss absorbency and as a side effect to a reduction in complexity enhancing supervision through regulatory authorities and market discipline. Furthermore, we demonstrate the impact that the proposed abolishment of the prudential filter for the cash flow hedge reserve would have on the Common Equity Tier 1 capital ratios of the largest European banks in 2014–2019

scholarly journals Key Locational Characteristics that Influence on Attracting Tourists to Sri Lanka

2019 ◽  
pp. 1-10
Author(s):  
O. K. R. De Silva ◽  
M. P. S. R. Perera ◽  
G. D. D. T. Karunarathne
Keyword(s):  
Sri Lanka ◽  
Strong Relationship ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Path Coefficient ◽  
Sri Lankan ◽  
Tourist Attraction ◽  
The Impact ◽  
Structured Questionnaire

This research was conducted to assess the existing locational characteristics of Sri Lanka which could influence on attracting tourists to the country. The major problem of the study is identifying the critical locational characteristics that cause to attract more tourists to Sri Lanka. It has been observed that there are three major locational characteristics such as Natural attractiveness, Cultural attractiveness and Climate which have discussed by the scholars and applicable to the Sri Lankan context. The main objective of the study is to identify the most important characteristics which help to attract tourists to Sri Lanka. The secondary objectives are determining the impact of the influence of the characteristics on tourist attraction & exploring the influence of the characteristics for future tourist attraction. The research coverage areas are Colombo District and Hikkaduwa Narigama area. Data were collected through a structured questionnaire. The findings are based on the primary data collection and, they have been analyzed with Statistical Package for Social Sciences (SPSS) 16.0 and the SmartPLS (Partial Least Square) 3.0. There were 62 sample size and whole sample responded for the questionnaire. Findings of the study exposed all three characteristics are important for tourist attraction. According to the result of Path Coefficient, all the three variables are statistically significant and natural attractiveness (0.454), cultural attractiveness (0.247) and climate (0.213) are a significant moderately strong relationship with tourist attraction. Therefore, all three variables positively impact to the tourist attraction and natural attractiveness is the major among them. It is also found that there are specific things to be taken into account for the accomplishment of attracting the expected group of tourists to the country.

The Impact of Demographic Factor on Consumer Buying Behaviour: A Study of Retail Sector in Delhi NCR

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Shamsher Singh ◽  
Ameet Sao
Keyword(s):  
Sampling Method ◽  
Primary Data ◽  
Survey Method ◽  
Retail Sector ◽  
Demographic Shift ◽  
Customer Perception ◽  
Shopping Experience ◽  
Buying Behaviour ◽  
The Impact ◽  
Structured Questionnaire

The retail sector is growing a faster pace in India due to demographic shift in population and growing middle class. It is an opportunity for both organized and unorganized sectors. The purpose of this article is to study the customer perception and shopping experience about organized and unorganized retailing with special reference to Delhi and NCR and find out whether the preferences for organized and unorganized retailing are dependent or independent demographic characteristics of consumers. The study has used the primary data collected from 200 respondents through survey method using structured questionnaire. Convenient sampling method was used during the

The role of innovation in building competitive advantages: an empirical investigation

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

Fair value and banking contagion

2016 ◽  
Vol 7 (3) ◽  
pp. 215-236 ◽  
Author(s):  
Leila Gharbi ◽  
Halioui Khamoussi
Keyword(s):  
Data Model ◽  
Banking Sector ◽  
Fair Value ◽  
Islamic Banks ◽  
Fair Value Accounting ◽  
Content Type ◽  
Gcc Countries ◽  
Conventional Banks ◽  
Value Changes ◽  
The Impact

Purpose This paper aims to explore empirically the impact of fair value accounting on banking contagion in a comparative context between Islamic banks and conventional banks. Design/methodology/approach The analysis of the impact of fair value changes on banking contagion is carried out through a panel data model. This study covers 20 Islamic banks and 40 conventional banks operating in the Gulf Cooperation Council (GCC) countries during nine years from 2003 to 2011. Findings Empirical evidence shows that there is a significant change in dynamic volatility in GCC banking sector because of financial crisis 2008. However, results fail to confirm the hypothesis that fair value accounting is significantly associated with an increase of banking contagion for both Islamic and conventional banks operating in GCC countries. Originality/value The outcome of this study provides some insights for academicians, accountants as well as regulators in terms of enhancing the effectiveness of accounting practices.

Technological Innovation: An Imperative Tool for Entrepreneurship Development in Nigeria

2013 ◽  
Vol 03 (08) ◽  
pp. 41-47
Author(s):  
OYEWALE I.O ◽  
ADEYEMO S.A ◽  
OGUNLEYE P.O
Keyword(s):  
Technological Innovation ◽  
Random Sampling ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Primary Data ◽  
Entrepreneurship Development ◽  
Mature Organizations ◽  
The Impact ◽  
Structured Questionnaire ◽  
Innovation And Entrepreneurship

Sustainable economic development does not occur without entrepreneurship and entrepreneurship is the practice of starting new organizations or revitalizing mature organizations. This study therefore is done to analyse the impact of innovation, technology and on the entrepreneurial development activities in Nigeria. Simple random sampling technique was used to select a total of 12 entrepreneurs from Lagos State that constituted our sample size. The primary data consists of a number of items in well- structured questionnaire that was administered to and completed by the respondents. Regression analysis was used to analyse the data. The results showed that there is significant relationship between technological innovation and entrepreneurship development in Nigeria. It is therefore recommended that government should create a friendly or an enabling environment for entrepreneurship and consumer goods to boost the Nigeria economy.

scholarly journals Analysis of Green Marketing Tools towards Consumer Purchase Intention in Kathmandu

2018 ◽  
Vol 1 (1) ◽  
pp. 37
Author(s):  
Shulov Shrestha
Keyword(s):  
Hypothesis Testing ◽  
Purchase Intention ◽  
Green Marketing ◽  
Primary Data ◽  
Green Products ◽  
The People ◽  
Consumer Purchase Intention ◽  
Green Packaging ◽  
The Impact ◽  
Structured Questionnaire

<p>The main purpose of this study is to examine the impact of green marketing tools on product choice and how green initiatives influence purchase intention of consumers. The research also attempts to examine the relationship between age, income, education, and occupation with consumer purchase intention in association with green marketing tools. The study is descriptive in nature and focuses on hypothesis testing using structured questionnaire and interview. Structured questionnaire is used to collect primary data from a sample size of 120 respondents focusing on employed, self-employed, students and homemakers. These groups are assumed to represent green purchase in today’s society. However, opinions of marketing professionals have also been considered. The survey population represents the people who go for shopping; data have also been collected from the point of purchase. Green purchase intention was seen to be incremental considering the increase in the level of education of individuals. Green marketing tools i.e., environmental belief, green packaging, green branding, green advertisement, green labelling has been taken into account to observe its significance towards consumer purchase intention. Likert scale questions with five-scalerating were used to do the hypothesis testing. The questions included statements in conjunction with the measure of green marketing tool’s influence over consumer purchase intention. The research revealed that green marketing tools played a significant role in inducing a positive purchase intention towards green products. While there exists growing preference towards green products, price plays a major role in product purchase.</p><p>Journal of Business and Social Sciences Research, Vol. 1, Issue 1, pp. 37-57</p>

Sign in / Sign up

Export Citation Format

Share Document