scholarly journals The Predictive Value of Government Accounting Information and the Secondary Brazilian Bond Market

2016 ◽  
Vol 9 (4) ◽  
pp. 31
Author(s):  
Janilson Antonio da Silva Suzart ◽  
Ariovaldo Dos Santos
Keyword(s):  
Federal Government ◽  
Least Squares Method ◽  
Value Relevance ◽  
Accounting Information ◽  
Predictive Ability ◽  
Ordinary Least Squares ◽  
Secondary Market ◽  
Government Accounting ◽  
The Government ◽  
National Governments

<p>The international literature highlights evidence on the predictive ability of government accounting information in relation to bond markets, especially for sub-national governments’ bonds. However, there is little evidence in the literature about the role of accounting information from national governments. Having observed this gap, we aimed to identify how strongly the government accounting information affects the pricing of the government bonds issued by the Brazilian Federal Government and traded in the secondary market. In this research, we analyzed the transactions carried out without the direct participation of the federal government. The predictive ability of the accounting information of the Brazilian federal government was verified for the period from 2003 to 2012 on a monthly basis. Following the value relevance approach, we developed price and return models for the bond National Treasury Bills, Single Series. After analyzing the presence of unit roots in the price and return series, we estimated regressions using the ordinary least squares method. We showed that the accounting information of the Brazilian federal government has predictive ability regarding the pricing of bonds traded in the secondary market. However, this does not mean that the government accounting information is fully and directly used by investors, but rather that such information is intended as a proxy for information reviewed by investors when negotiating such bonds, these investors being considered as limited rational agents.</p>

scholarly journals The Financial and Economic Implications of Underground Economy: The Nigerian Perspective

2019 ◽  
Vol 8 (2) ◽  
pp. 155-167 ◽  
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Economic Growth ◽  
Shadow Economy ◽  
Least Squares Method ◽  
Underground Economy ◽  
Ordinary Least Squares ◽  
Economic Benefits ◽  
Tax Revenue ◽  
Economic Implications ◽  
The Government ◽  
The Impact

Abstract The economic and financial effect of underground economy in all emerging countries is of tremendous concern. Sometimes due to the inputs of the sector to economic growth of nations, it is usually assumed that the government has nothing to lose, meanwhile it goes beyond the seemingly economic benefits, but provides an avenue whereby the government has to suffer financial losses through unavoidable and inherent tax evasions. This study evaluates the impact of shadow economy using the transaction approach and the MIMIC approach which helped to determine the size of the shadow economy as a percentage of GDP and the tax revenue losses suffered by the government for a period spanning from 1991 to 2018. Ordinary least squares method is used to examine the impact of tax revenue earned and lost on Nigeria’s GDP. The regression results indicate that tax revenue earned has a significant positive impact on economic growth, while the tax revenue loss has a significant negative influence on GDP. The study finds that underground economy activities do more harm to the government than good and is also detrimental to Nigeria’s economic progress. Therefore the suggestion among others is that the legal activities among them should be formalized and taxed while the unlawful ones should be exterminated.

scholarly journals PENGARUH PEMAHAMAN STANDAR AKUNTANSI PEMERINTAH DAN PEMANFAATAN SISTEM INFORMASI AKUNTANSI TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH DENGAN KOMPETENSI SDM SEBAGAI VARIABEL MODERASI (Studi Empiris Pada SKPD BPKAD Kabupaten Malang)

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Debby Christin Sihasale ◽  
Sulistyo Sulistyo ◽  
Supami Wahyu Setiyowati
Keyword(s):  
Regression Analysis ◽  
Local Government ◽  
Accounting Information ◽  
Financial Statements ◽  
Primary Data ◽  
Financial Reports ◽  
Accounting Information Systems ◽  
Government Accounting ◽  
The Government

The purpose was to determine the effect of understanding government accounting standards (SAP) and Utilization of accounting information systems (SIA) on the quality of local government financial reports with HR competency as a moderating variable. The data used in the form of Primary data obtained through the distribution of questionnaires directly to the SKPD in BPKAD Malang Regency. Regression analysis used is multiple regression analysis with MRA (Moderating Regression Analysis). The results of this study concluded that the understanding of SAP and the use of SIA affect the quality of local government financial reports, and human resource competence is able to moderate (strengthen) the influence of SAP's understanding and the use of SIA on the quality of local government financial reports. The higher the competence of the government apparatus will support it in understanding and mastering SAP and making use of SIA well so that the quality of financial statements is increasingly improved. The implication is that the government must improve understanding of SAP and the use of SIA so that the quality of financial statements can improve, and it must involve officials who have competence to prepare financial reports so that the influence of SAP's understanding and use of SIA can improve the quality of local government financial reports

Government Expenditure on Rural Development and Economic Growth in Cameroon

2017 ◽  
Vol 3 (1) ◽  
pp. 113-121 ◽  
Author(s):  
Thierry Belinga ◽  
Jun Zhou ◽  
Guohui Hu
Keyword(s):  
Economic Growth ◽  
Rural Development ◽  
Rural Areas ◽  
Least Squares Method ◽  
Ordinary Least Squares ◽  
Economic Life ◽  
Government Investment ◽  
Rural People ◽  
The Government ◽  
The Impact

This paper examines the impact of government investment in rural development on economic growth in Cameroon during the period 2000-2015. After computing the government investment in rural areas using the annual total amount invested in the ministry of Agriculture and Rural Development added to the budget allocated to the ministry of farming, animal and husbandry, we run a regression model with the ordinary least squares method to find that despite the measures taken by the government to improve the socio-economic life of rural people, there is no significant impact of the Rural Investment on the Economic Growth in Cameroon, implying that the government should implement some strategic policies that will enable the rural people to produce more and have a consistent impact on the overall national production growth.

Measurement of social development: evidence from India

2017 ◽  
Vol 44 (9) ◽  
pp. 1211-1230 ◽  
Author(s):  
Naresh Kumar
Keyword(s):  
Social Development ◽  
Least Squares Method ◽  
Composite Index ◽  
Ordinary Least Squares ◽  
Social Sector ◽  
Content Type ◽  
The Social ◽  
Development Expenditure ◽  
The Government ◽  
The Impact

Purpose The purpose of this paper is to examine the progress of social development in terms of social development index (SDI) of India in the pre- and post-reforms period. Design/methodology/approach This study used the methodology of Ray (1989, 2008) for the construction of composite index for social development, i.e. SDI. The study also used the ordinary least squares method of regression analysis for checking the impact of development expenditure, non-development expenditure and Per Capita Net National Product (PCNNP) on the SDI value. Findings The results show an increasing trend in social development. The findings of this study also suggest that there is a sharp increase in the index over the period between 2002/2003 and 2010/2011. But in the remaining period, sluggish improvement in social development has been observed. Though there has been growth in the social sector, but it is not much heartening and perhaps more efforts need to be done in the social sector in India. The results also exhibit that development expenditure, non-development expenditure and PCNNP are significantly affecting the SDI value. Practical implications The study suggests that the government should focus more on social sector programs and there is an urgent need to increase development and non-development expenditures to improve the overall social condition of the country. Originality/value The work is different in terms of number of development variables from the already existing literature in India. The author constructed the SDI by using the weighted sum of 12 transformed social variables which has not been studied previously.

scholarly journals Faktor – Faktor Yang Mempengaruhi Pendapatan Asli Daerah ( PAD ) Pariwisata di Kabupaten Hulu Sungai Utara

2019 ◽  
Vol 2 (2) ◽  
pp. 61-66
Author(s):  
Azmy Pratama ◽  
Rizali Rizali
Keyword(s):  
Least Squares Method ◽  
Ordinary Least Squares ◽  
Regional Government ◽  
Occupancy Rate ◽  
Population Number ◽  
Tourism Sector ◽  
The Government ◽  
Role Of The Government ◽  
Occupancy Rates

Abstract - Hulu Sungai Utara Regency is one of the regencies in South Kalimantan which has potential in tourism sector because it has a large number of tourism objects. In fact, this potential has not been able to significantly increase the region original revenue of tourism sector in a significant number. This study aims to determine the influences of population, hotel occupancy rates, and number of tourists to the region original revenue (PAD) of tourism sector in Hulu Sungai Utara Regency. This study use the types and the data sources of quantitative approach in analyzing the influence of Population Number (X1), Hotel Occupancy Rate (X2) and Number of Tourists (X3) to the Region Original Revenue of Tourism Sector in Hulu Sungai Utara Regency in 2008-2018. The method of data analysis using the Ordinary Least Squares method ( OLS). The analysis of this model uses the computer program tools of Eviews 9. The conclusion of this study shows that the population and hotel occupancy rates influence the region original revenue of tourism sector in Hulu Sungai Utara Regency. In contrary, the number of tourists does not affect the region original revenue of tourism sector in Hulu Sungai Utara Regency. The low number of tourists visiting the Sungai Hulu Utara Regency is caused by the role of the government is not optimal in managing tourism objects. Related to this study, it is recommended that the Regional Government of Sungai Hulu Utara Regency can increase tourism promotion and make improvements to various tourist objects facilities. In addition, it is also recommended that the souvenir shops should be built to increase region original revenue of tourism in Sungai Hulu Utara Regency. Keywords: Population, Hotel Occupancy Rate, Number of Tourits, Region Regional Revenue of Tourism Sector

Has traditional accounting information lost its relevance?

2019 ◽  
Vol 17 (3) ◽  
pp. 554-570
Author(s):  
Kingsley Opoku Appiah ◽  
Owusu Acheampong
Keyword(s):  
Stock Returns ◽  
Financial Reporting ◽  
Value Relevance ◽  
Accounting Information ◽  
Cost Accounting ◽  
Ordinary Least Squares ◽  
Least Square ◽  
Content Type ◽  
Listed Firms ◽  
Historical Cost

Purpose This paper aims to examine whether traditional accounting information has lost its relevance in the context of sub-Sahara Africa. Specifically, the study examines whether historical cost and inflation-adjusted data are related to the market value of equity and stock returns on the Ghana Stock Exchange (GSE). Design/methodology/approach The authors collect firm-specific data from annual reports of 20 listed firms from the GSE over the period 2007-2012. The authors use ordinary least squares and two stage least square (2SLS) to examine the value relevance of historical and inflation-adjusted income and equity. Findings The results suggest that the market equity is related to both historical-cost and inflation-adjusted earnings. Market return is also associated with both historical-cost and inflation-adjusted earnings and book value. Overall, the authors conclude that inflation-adjusted information content is more value relevant than the traditional cost accounting information. Research limitations/implications The findings are a wake-up call to policymakers and practitioners in formulating financial reporting policies. This study, however, focuses on only non-financial listed firms on the GSE. Thus, the results may not be valid for all companies in Ghana. Practical implications The finding has an implication on the choice of valuation used in the preparation and reporting of financial statements. Accordingly, the authors offer policy directions to financial reporting regulatory authorities to enhance the value relevance of accounting information. Social implications Regulators, especially the GSE may improve life of investors if the recommendations are transformed into directives that will help enhance the quality of financial reporting. Originality/value The findings suggest that inflation-adjusted data are more relevant in countries with extreme inflationary trend and lax International Financial Reporting Standards compliance enforcement. The results also lend support for the current cost accounting theory.

scholarly journals Corporate governance and ADR effects on earnings quality in the Brazilian capital markets

2009 ◽  
Vol 7 (1) ◽  
pp. 55-62 ◽  
Author(s):  
Jose Elias Feres de Almeida ◽  
Gerlando Augusto Sampaio Franco de Lima ◽  
Siqueira Lima
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Information Quality ◽  
Value Relevance ◽  
Accounting Information ◽  
Ordinary Least Squares ◽  
Public Companies ◽  
Governance Practices ◽  
The Impact ◽  
Content Information

The value relevance of accounting information has been tested in many studies, however, there are little evidence from Brazil about the content information in earnings and the improvement of its relevance according to adoption of better corporate governance practices and the cross listing on the NYSE. This study aims to verify the impact of earnings interactively with corporate governance levels of BOVESPA and ADR listing on the NYSE on firms’ market value measured by market-to-book ratio. Our sample is composed by 231 public companies’ listed and unlisted on special segments of governance at BOVESPA and on the NYSE from 2000 up to 2006, totalizing 1.253 observations. Methodologically, we present results of different estimation procedures such as Pooled Ordinary Least Squares (POLS) and panel data with Random Effects (RE) and Fixed Effects (FE) following Breusch-Pagan and Hausman Tests to indicate the best estimators. The results indicate that: i) BOVESPA’s corporate governance levels improve the content information of accounting earnings reported and enhance the coefficients; ii) earnings of firms’ which trade ADR on the NYSE are not relevant but, have positive coefficients and; iii) the content information in earnings of firms listed on Level 2 and level New Market are more relevant from firms on Level 1 or unlisted. This paper contributes with the discussion about accounting information relevance to the market, investors, regulators and practitioners, as well as, the role of corporate governance to improve information quality.

Audit Partners Gender, Auditor Quality and Clients Value Relevance

2017 ◽  
Vol 19 (4) ◽  
pp. 952-967 ◽  
Author(s):  
Redhwan Ahmed Ali Al-Dhamari ◽  
Sitraselvi Chandren
Keyword(s):  
Value Relevance ◽  
Accounting Information ◽  
Ordinary Least Squares ◽  
Ethical Behaviour ◽  
Audit Process ◽  
Cross Sectional ◽  
Listed Firms ◽  
Corporate Scandals ◽  
Big 4 ◽  
Audit Firms

Several corporate scandals around the world have aggravated the investors’ need for reliable and relevant accounting information. In fact, the study is inspired by prior research which suggests women audit partner or auditor possess a higher level of preparation, risk aversion and ethical behaviour in audit process. Thus, we investigated the possible effect of women audit partner on the client value relevance of accounting information on 2,478 firm-year observations from year 2012 to 2014 for Malaysian listed firms. This article uses time series cross-sectional ordinary least squares (OLS) regressions upon a large sample of the Malaysian listed firms. Basically, the regression results indicate that the signing women audit partner from Big-4 audit firms improves the reliability and value relevance of earnings. Furthermore, our additional analysis shows that firms that engaged the women audit partner from Big-4 audit firms report high relevant equity book values. This study provides a valuable contribution on the positive effect of signing women audit partner from Big-4 audit firms on client value relevance of accounting information to researchers, regulators, investors and all other interested parties in financial information.

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