Accounting Conservatism

<p>This thesis provides an in-depth examination of accounting conservatism, which is one of the oldest and most important principles of accounting (Sterling, 1967;Watts, 2003a). Two main questions relating to accounting conservatism are extensively studied in this thesis: (1) How to measure accounting conservatism? (2) Why do firms adopt accounting conservatism? This thesis consists of three main chapters that answer these two questions from three different perspectives. The first chapter studies the existing empirical measures of accounting conservatism from a construct validity perspective and concludes that construct validity of the existing measures is mixed to low. The second chapter examines the validity and bias in the Basu (1997) measure of accounting conservatism - one of the most widely used measure of conservatism in the accounting literature. The second chapter shows, analytically and empirically, that the Basu (1997) measure is biased upwards by the default risk of a firm, and proposes a new measure of conservatism that is free from this bias. This new measure of conservatism is called the "Default-Adjusted-Basu" measure. The third chapter investigates the economic rationale for accounting conservatism, and proposes a signalling theory for accounting conservatism. In a debt market characterized by information asymmetry, a borrower firm's degree of conservatism can serve as a credible signal about that borrower firm's level of operating risk to the lenders in the debt market. Thus, one potential benefit of accounting conservatism is that it can reduce the degree of information asymmetry in the debt market.</p>

Accounting Conservatism

<p>This thesis provides an in-depth examination of accounting conservatism, which is one of the oldest and most important principles of accounting (Sterling, 1967;Watts, 2003a). Two main questions relating to accounting conservatism are extensively studied in this thesis: (1) How to measure accounting conservatism? (2) Why do firms adopt accounting conservatism? This thesis consists of three main chapters that answer these two questions from three different perspectives. The first chapter studies the existing empirical measures of accounting conservatism from a construct validity perspective and concludes that construct validity of the existing measures is mixed to low. The second chapter examines the validity and bias in the Basu (1997) measure of accounting conservatism - one of the most widely used measure of conservatism in the accounting literature. The second chapter shows, analytically and empirically, that the Basu (1997) measure is biased upwards by the default risk of a firm, and proposes a new measure of conservatism that is free from this bias. This new measure of conservatism is called the "Default-Adjusted-Basu" measure. The third chapter investigates the economic rationale for accounting conservatism, and proposes a signalling theory for accounting conservatism. In a debt market characterized by information asymmetry, a borrower firm's degree of conservatism can serve as a credible signal about that borrower firm's level of operating risk to the lenders in the debt market. Thus, one potential benefit of accounting conservatism is that it can reduce the degree of information asymmetry in the debt market.</p>

TECHNICAL AND ECONOMIC RATIONALE OF A GAS-PISTON USE IN A MEDIUM-CAPACITY BOILER HOUSE

Рассмотрена проблема сокращения затрат при потреблении электрической энергии оборудованием центральной котельной средней мощности. Перспективным направлением в решении этой задачи является использование альтернативного источника электроэнергии в виде газопрошневой установки. Теплогенерирующие установки для централизованного теплоснабжения были рассчитаны с учетом минимального потребления электроэнергии и достижения надежности. Проведен анализ потребления электроэнергии оборудованием котельной установленной мощностью 4,7 МВт. Определены технические характеристики газопоршневой установки, выбранной в качестве нового источника электроэнергии. Проведены технико-экономические расчеты стоимости производства собственного электричества для котельной. Применение собственного источника электроэнергии позволяет снизить стоимость электроэнергии в сравнении с покупкой от центральных электросетей. Сделан вывод о том, что применение собственного альтернативного источника электроэнергии для котельной - это выгодное вложение для снижения финансовой нагрузки на теплоснабжающую организацию и для снижения стоимости тарифа на тепловую энергию. The problem of reducing cost of electricity consumption by the equipment of the central boiler house of medium capacity is considered. A promising direction in solving this problem is the use of an alternative source of electricity in the form of a gas-piston installation. Heat generating plants for district heating were designed taking into account the minimum electricity consumption and achieving reliability. We carried out the analysis of electricity consumption by the boiler house equipment with an installed capacity of 4.7 MW. The technical characteristics of the gas-piston plant selected as a new source of electricity were determined. As well we carried out technical and economic calculations of the cost of producing own electricity for the boiler house. The use of its own power source allows one to reduce the cost of electricity in comparison with the purchase from the central power grid. It is concluded that the use of its own alternative source of electricity for the boiler house is a profitable investment to reduce the financial burden on the heat supply organization and to reduce the cost of the heat energy tariff.

An Analysis of “Buy X, Get One Free” Reward Programs

Redemption hurdles, such as finite expiration terms and redemption thresholds, are common for customer reward programs. In “An Analysis of ‘Buy X, Get One Free’ Reward Programs,” Yan Liu, Yacheng Sun, and Dan Zhang study the economic rationale behind redemption hurdles and how they should be optimally set. They show analytically that redemption hurdles can be used as a price-discriminating vehicle that increases firm profitability. Redemption hurdles can facilitate the firm’s price discrimination on consumers whose valuations may vary over time. Redemption threshold alone cannot ensure profitability, unless it is coupled with a finite expiration term or a positive transaction utility from the rewarded free product. Optimal design of redemption hurdles is not straightforward, and the interdependence between the two types of redemption hurdles and the price is nontrivial. Optimally set redemption hurdles may not only increase firm profitability but also, increase the welfare of consumers who purchase frequently.

The historical evolution and enforcement of competition law in Pakistan

The study aims to attempt has been made to highlight competition law in various aspects with reference to Pakistan. The present study gives a detailed account of its origin or historical evolution over time by underscoring legislation's salient characteristics; the research attempts to feature its structure, power, and policies while identifying the challenges faced by the contemporary competition law in Pakistan. The study adopts qualitative data analysis to analyse the respective aims and objectives. The research assessed the regulatory agency's effectiveness as a principal authority to apply competition policies while preventing anti-competitive conduct. The research contents that many sustainability challenges are being faced by competition law in Pakistan and globalized transformation is one of the reasons behind it, it needs to be addressed. The research recommended that there should be an ability to attract professionals and judicial discourse that needs to be based upon sound economic rationale as per competition theory. However, competition law is supposed to prevent anti-competition rituals and practices by nurturing free and fair Competition in the market. It promotes greater Competition in the market by safeguarding customers against inaccurate means adopted by firms.

The New German Coal Laws: A Difficult Balancing Act

The German government adopted a coal exit law in 2020. The law enshrines a coal exit pathway through to 2038 and provides for significant compensation for coal companies. An accompanying structural-support law is to create new prospects for coal regions and workers. The development of the laws involved participation by the public, experts, interest groups, and the German states. Concerns about just transition and climate justice played an important role. The final laws were nevertheless met with a significant degree of dissatisfaction from stakeholders across the political spectrum, science, industry, and ngo s. Flaws in the participation process and deviation from expert recommendations have been raised as criticisms. The climate ambition, economic rationale, and social-justice effects of the laws have been contested. Repeal of the laws in any substantive way nevertheless seems unlikely.

Learning in a double-phase cobweb model

In this paper, we study a class of markets, among which we can mention agricultural and energy markets, characterized by seasonality, i.e., in which demand and/or supply conditions cyclically alternate with a precise and known periodicity. We propose a new theoretical framework based on a cobweb model with adaptive expectations, accordingly modified to be consistent with market’s seasonality. The model, consisting in a second-order non-autonomous difference equation, is investigated with the aim of understanding how the periodical nature of the market together with the agents’ expectation formation mechanism affects the resulting dynamics. We analytically prove the emergence of dynamical scenarios that are missing in the classic cobweb model for non-seasonal markets, such as quasi-periodic dynamics and an ambiguous role on stability of the expectation weight. Finally, we discuss their economic rationale with the help of numerical simulations. In such a peculiar economic framework, agents’ learning plays a key role to explain the dynamical properties of economic observables.

Family reunification? : a critical analysis of Citizenship and Immigration Canada's 2013 reforms to the Family Class

In 2011, significant reforms to Canada’s Family Class for immigration began with the freezing of applications for parent and grandparent sponsorship. In May 2013, a package of reforms to the Family Class was proposed, which would impose more stringent conditions for the sponsorship of parents, grandparents, and dependent children under the Family Class. In response, a coalition of civic stakeholders in Ontario mobilized through the “My Canada Includes All Families” campaign to lobby Citizenship and Immigration Canada (CIC) to stop the implementation of these changes. This paper analyzes the package of reforms and explores the impacts that past and proposed reforms might have upon the value of the family unit in Canada. This paper aims to support the “My Canada Includes All Families” campaign by presenting practical research to illustrate the benefits that parents, grandparents, and family reunification have for the Canadian social fabric in terms of social capital. Key words: policy reform, family reunification, social capital, economic rationale, racialization

Family reunification? : a critical analysis of Citizenship and Immigration Canada's 2013 reforms to the Family Class

In 2011, significant reforms to Canada’s Family Class for immigration began with the freezing of applications for parent and grandparent sponsorship. In May 2013, a package of reforms to the Family Class was proposed, which would impose more stringent conditions for the sponsorship of parents, grandparents, and dependent children under the Family Class. In response, a coalition of civic stakeholders in Ontario mobilized through the “My Canada Includes All Families” campaign to lobby Citizenship and Immigration Canada (CIC) to stop the implementation of these changes. This paper analyzes the package of reforms and explores the impacts that past and proposed reforms might have upon the value of the family unit in Canada. This paper aims to support the “My Canada Includes All Families” campaign by presenting practical research to illustrate the benefits that parents, grandparents, and family reunification have for the Canadian social fabric in terms of social capital. Key words: policy reform, family reunification, social capital, economic rationale, racialization