摘要:

This paper proposes a model of audit fee determination based upon size and other characteristics of the auditee and the auditor, and upon whether there has been a recent change of auditor (which might lead to a low‐balling effect). A novel feature of the model is that auditee size is measured in two dimensions, sales and assets, and is allowed to have a quadratic relationship with audit fee. The model was estimated for a sample of large listed UK companies for the years 1981 to 1988. The results support the low‐balling hypothesis and also provide insights into the distinctive role of the Big 8 firms in the audit mar

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00365.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

The goal of this article is to perform a necessary step in reconciling the measurement/valuation and information‐economics perspectives on accounting information. Thus, it identifies the financial‐accounting systems that can be interpreted using the language of measurement/valuation ‐ the current‐exit‐value system and a reformulated version of the current‐replacement‐cost system. In accomplishing its objective, the article provides, as far as possible, measure‐mendvaluation‐related interpretations of the concepts which logically are fundamental with respect to the current‐exit‐value, current‐replacement‐cost, and historical‐cost systems. The concepts that are considered for interpretation are total assets, total liabilities, total capital, capital maintenance, net inc

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00366.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper re‐examines the financial ratio adjustment model by (1) respecifying the model such that the speed of adjustment coefficient follows a dynamic adjustment process in response to some kind of economic shocks, and (2) proposing a joint estimation of firms within the same industry to capture unobservable industry effects. Examining six financial ratios within seven industries that contain 85 firms, our results reveal that a joint estimation method substantially improves the traditional model based upon an OLS method and that economic shocks, measured by changes in interest rate expectations, affect the speed of adjustment coefficients for over one‐third of the sampling fi

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00367.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Three potential determinants of inter‐firm information transfer at earnings announcement dates are examined. They are: (1) the correlation of the announcing and nonannouncing firms’ information signals, (2) the information contained in the announcing firm's signal, and (3) the pre‐announcement level of uncertainty for the nonannouncing firm. These determinants expand the scope of information transfer studies by (1) moving beyond standard industry definitions and (2) including a measure of the uncertainty related to the market's expectation for the forthcoming signal of the nonannouncer. The results suggest that these three determinants are jointly associated with the return movement of the nonannouncing

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00368.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

The use of secret reserves by British companies, both to manipulate the content of published reports and to influence investor perceptions of corporate progress during the late nineteenth and early twentieth century, has been an important focus of historical enquiry. By way of contrast, relatively little attention has been devoted to the possible exploitation of fixed asset accounting practices to achieve similar financial reporting objectives. It is the aim of the present paper to help to redress this imbalance. The principal basis for the study is the archival records of four major iron and coal companies. Identified features of prudent financial policy include: a determination to restrict distributions and the level of activity to what the company could comfortably afford; and a reluctance to use loan finance. The selection of accounting practices was subordinated to the pursuit of these, and related, policy objectives. The identified use of prudent financial policies may be contrasted with Briefs (1976, p. 184) conclusion that nineteenth century companies consistently over‐estimated profitability, with a consequential stimulation of business investment and economic growt

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00369.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

The Tax Reform Act of 1986 (TRA) eliminated the favorable tax treatment on long‐term capital gains in the US. Using a standard event study… CONTENTS AND ABSTRACTS 111 methodology, this paper examines daily stock return reactions to the tax overhaul. The results show that high dividend yield stocks earned a significant positive abnormal return and low yield stocks a significant negative return during the legislation period. This finding is consistent with the notion that the TRA made the market valuation of stocks shift in favor of high yield sto

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00370.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Short‐term pressures are defined and a distinction drawn between external S‐TP, mainly from shareholders, and internal S‐TP, from top management. A conceptual framework for analysing S‐TP is developed and empirical evidence for their existence reviewed. Although certain crude formulations of the argument for short‐termism are rejected, evidence is found for the existence of both types of S‐TP in the UK. Variations in their intensity among sectors can be accounted for partly by inherent differences in technology, and partly by differences in the behaviour of firms. Excessive diversification, particularly by acquisition, exace

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00371.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY