摘要:

Abstract:One of the issues arising out of the introduction of an imputation tax for companies in Australia is the effect it is likely to have on the definition and measurement of a company's cost of capital. Insofar as there is a difference between the value of a dollar of franked relative to unfranked dividends, conventional definitions for the cost of capital are inappropriate and new definitions are required. This has implications for the measurement of a company's cost of capital and for the definition of net cash flows that are used in conjunction with the cost of capital. This paper sets out these definitions and an approach for measuring the cost of capital.The new definition of the cost of capital replaces the effective company tax rate T with T(l ‐ γ) where γ is the value of personal tax credits. Further, the definition of the risk premium in the capital asset pricing model requires an adjustment for the capitalized value of personal tax credits to maintain consistency between the cost of capital and cash flows which are defined on an after‐company tax but before‐personal ta

ISSN:0810-5391    

DOI:10.1111/j.1467-629X.1994.tb00259.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Abstract:This paper presents an empirical investigation of share price returns for companies threatened with suspension by the Australian Stock Exchange (ASX) for failing to either (1) pay their annual listing fees or (2) lodge a required report on time. The threatened companies experienced an average return over the event window that was significantly below the average return for both a market index and a similarly sized control portfolio. This suggests that the threat of suspension has information content. Interestingly, the major impact came from those companies that avoided suspension by lodging interim reports subsequent to the threat announcement indicating that significant new negative information was conveyed to the market in the week following the threat.

ISSN:0810-5391    

DOI:10.1111/j.1467-629X.1994.tb00260.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Abstract:The Market Expectations Theory of the Term Structure of Interest Rates is tested using Wednesday yields on 13 week and 26 week treasury notes and 90 and 180 day bank accepted bills for the period 3 December 1986 to 13 March 1991 obtained from the Reserve Bank of Australia. In ordinary least squares regression based tests the Market Expectations Theory of the Term Structure of Interest Rates is accepted for bank accepted bills but rejected for treasury notes. Augmented Dickey Fuller unit root tests provide evidence of non‐stationarity in the variables; a possibility often ignored in Australian studies. Although the unit root tests are generally consistent with the existence of one unit root, residual based cointegration tests between the forward rate and spot rate are not consistent with cointegration. This suggests that the prior expectations theory results may be a result of spurious regression. Perhaps a more complex model is required, coupled with tests which take account of non‐stationary time ser

ISSN:0810-5391    

DOI:10.1111/j.1467-629X.1994.tb00261.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Abstract:This paper examines the existence and nature of the expectation gap in Australia and whether recent changes to the wording of audit reports have affected that gap. A mail questionnaire was completed by auditors, accountants, directors, creditors, shareholders and undergraduate students. There was a gap between auditors and the various user groups under the old report wording prior to the issuance of the revised AUP 3. The modified wording in the revised AUP 3 had a significant impact on beliefs about the nature of an audit and the relative responsibilities of auditors and management. The modified wording eliminated some of the differences, but also created some new differences in beliefs about the messages communicated through audit reports. The auditing profession's fears about an expectation gap appear to be justified.

ISSN:0810-5391    

DOI:10.1111/j.1467-629X.1994.tb00262.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Abstract:This paper presents the results of a study designed to investigate the question of whether there is thepotentialfor an appearance of auditor independence impairment when higher levels of non‐audit services are provided to audit clients. This question was investigated by analysing the audit reports for a sample of publicly listed companies over the period 1980 to 1989.The results of the analysis indicate that the auditors of companies not receiving an audit qualification of any type over the period derived a significantly higher proportion of their remuneration from non‐audit services fees than the auditors of companies receiving at least one audit qualification. This result is driven by the non‐Top 100 companies in the research sample. These findings could suggest that auditors are less likely to qualify a given company's financial statements when higher levels of non‐audit services fees are derived. This could convey the view that the independence of the auditors of these companies may have been comp

ISSN:0810-5391    

DOI:10.1111/j.1467-629X.1994.tb00263.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Book reviewed in this article:A. D. BainThe Economics of the Financial SystemDan ScheiweUnderstanding Australian Accounting PronouncementsG. Cooper, R. Deutsch and R. KrewerIncome Taxation: Commentary and MaterialsB. Cooper, S. Lukaitis and K. AdamsComputer Audit Case Study: Melchem IndustriesJ. Godfrey, A. Hodgson, S. Holmes and V. KamAccounting TheoryM. A. Sadhu and I. A. Langfield‐SmithA Qualitative Standard for General Purpose Financial Reports: A ReviewJ. HollandInternational Financial ManagementE. A. ClarkeAccounting: Introduction to Principles and Practi

ISSN:0810-5391    

DOI:10.1111/j.1467-629X.1994.tb00264.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

ISSN:0810-5391    

DOI:10.1111/j.1467-629X.1994.tb00265.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY