摘要:

This paper examines the comments submitted by UK companies on 20 proposed accounting standards to test the hypotheses that executives favor standards that increase, or dampen the variance of, accounting profit numbers on which their incentive remuneration is based. Test results were generally as hypothesised but only the profit variance outcomes were statistically significant. Allowing for political environment changes affected only the profit variance results. There was no evidence that the relative monetary size of bonus payments was a significant lobbying factor. No significant differences were found between the lobbying preferences of companies with or without executive incentive schemes.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00280.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

The potential effect of financial variables on the level of investment is among the key issues in contemporary financial economics. Some researchers have claimed that there is an inherent risk in the Islamic profit‐and‐loss sharing scheme that replaces the western fixed‐interest rate system. This paper argues that such concerns are baseless. In an Islamic framework, equity capital (i.e., strong financial position) and the profit‐sharing ratio are primary determinants of investment. It is shown that both factors could enhance the firm's business reputation and its investment activities. The paper, in so doing, constructs a two‐period equilibrium model of profit‐sharing contracts. An optimal solution for the investment function is derived for the banking firm. Besides equity capital and the profit‐sharing ratio, other relevant determinants of investment are also considered, including depreciation and expected inflation. Moreover, unlike most previous research in this area, the resultant investment (and profitsharing ratio) functions are subjected to empirical testing using data from a representative

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00281.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

This paper investigates the association of executive changes with both income increasing and decreasing accounting changes. Two potential explanations for the hypothesis that firms with changes in CEOs are more likely to make accounting changes are examined. The earnings management explanation holds that new management intervenes in the financial reporting process in order to alter perceptions of effectiveness. The different perspectives explanation holds that managements have different tastes, perspectives, or views of the world than the predecessor. Evidence supports the different perspectives explanation.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00282.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

This paper examines the impact of the announcements of dividend increases on the volatility of underlying stock returns implied by option prices, and analyses whether the impact is related to the label associated with the dividend increase. The results suggest that the announcements of labelled dividend increases are accompanied by a decrease in implied volatility, while the announcements of unlabelled increases in dividends are associated with no change in implied volatility. These results are consistent with the hypothesis that signal implicit in the announcements of dividend increases provides noisy information about the firm's volatility.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00283.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

This study examines the price behaviour, trading volume and liquidity of stocks in the Canadian market at the time of options listing. Unlike some studies examining similar effects in the United States, the present one finds no evidence to indicate that either daily return volatility or trading volume is affected by the listing. Similarly, liquidity, as measured by the bid‐ask spread, is unaffected. At the same time, cross‐sectional tests indicate an inverse relationship between before‐to‐after trading volume and the before‐to‐after bid

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00284.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

Stock index futures prices for the world's major equity markets, Japan, the UK and the US, are used to examine the interaction of international equity markets. By using stock index futures prices, we avoid the nonsynchronous data problem inherent with opening and closing market averages. We find that the US is the dominant world market; overnight returns in Japan and the UK are greatly influenced by the US daily returns. In contrast, the Japanese market has no impact on the overnight or daily returns in the UK, while the UK daily performance has a small influence on Japanese overnight returns. Slight evidence of over‐reaction at the opening of Japanese futures exists as the daily Nikkei returns are negatively related to the US return

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00285.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

This study extends the work of Landsman (1986) by making use of the newly available projected benefit pension obligations (PBO) information. Our analysis documents that investors perceive pension assets and pension liabilities, respectively, as corporate assets and liabilities. We also developed and tested a decomposition model of pension obligations by examining the market valuation of the three components of PBO: vested, non‐vested and future salary progression. Our results indicate that future salary progression is indeed considered by market participants as a liability of the firm. The results of the study have important implications for accounting policy makin

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00286.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

We find that the magnitude of abnormal ex‐day returns exhibited by US equities diminished in 1987 and 1988, subsequent to the US Tax Reform Act of 1986. We also report the results of a dividend capture strategy, hedged with the sale of stock index futures contracts. Hedging removes more than 50 percent of the risk of dividend capture, and even after transactions costs, can provide returns in excess of buying and holding the market portfolio of equitie

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00287.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

Four criticisms are made of Grinyer's concept of earned economic income. It is argued that (a) the relationship between his approach and other discounted cash flow methods has been insufficiently explained; (b) he has overlooked some relevant prior work; (c) he places more weight on the matching principle than it can bear; and (d) his procedure is likely to suffer from the same defects as conventional accounting methods. Since even sophisticated matching approaches to the depreciation and valuation of fixed assets appear to fail, the use of market‐value based methods is advocate

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00288.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

Skinner criticises the present author for (a) failing to discuss IRR methods, (b) placing too much reliance on the matching principle, (c) developing a procedure with the same defects as conventional accounting methods, and (d) overlooking relevant prior work. Although it does not affect the EEI analysis, (d) is in part accepted. Criticisms (a) to (c) are not however well founded within the context of the EEI analyses to date.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00289.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY