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on Accounting |
| By: | Ignacio Velez-Pareja (Politecnico Garncolombiano); Joseph Tham (Duke University); Viviana Fernandez (Universidad de Chile) |
| Abstract: | In the Weighted Average Cost of Capital (WACC) applied to the free cash flow (FCF), we assume that the cost of debt is the market, unsubsidized rate. With debt at the market rate and perfect capital markets, debt only creates value in the presence of taxes through the tax shield. In some cases, the firm may be able to obtain a loan at a rate that is below the market rate. With subsidized debt and taxes, there would be a benefit to debt financing, and the unleveraged and leveraged values of the cash flows would be unequal. The benefit of lower tax savings are offset by the benefit of the subsidy. These two benefits have to be introduced explicitly. In this paper we present the adjustments to the WACC with subsidized debt and taxes and the cost of leveraged equity for multiple periods. We demonstrate the analysis for both the WACC applied to the FCF and the WACC applied to the capital cash flow (CCF). We use the calculation of the Adjusted Present Value, APV, to consider both, the tax savings and the subsidy. We show how all the methods match. |
| Keywords: | Adjusted Present Value, APV, weighted average cost of capital, discounted cash flow, DCF equity value, cost of equity, WACC, subsidized debt with taxes, valuation of cash flows, project evaluation, project appraisal, firm valuation, cost of capital, cash flows, free cash flow, capital cash flow |
| JEL: | D61 G30 G31 G32 H43 |
| Date: | 2005–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0504006&r=acc |
| By: | WILLIAM N. GOETZMANN (Yale School of Management - International Center for Finance); ELISABETH KÖLL (Case Western Reserve University - Department of History) |
| Abstract: | This paper examines the emergence of corporate ownership in China from the final decades of the Qing empire in the late 19th century to the early Republican period in the 1910s and 1920s. By analyzing the actual process of incorporation, the development of the legal and financial environment, in particular the role of the state, we ask whether the top-down approach, in which the central government established a legal framework for corporate enterprise based on Western models and the assumption that it would work as it did for Western firms and markets, was a viable approach to the modernization of a financial system traditionally dominated by family businesses and economic state patronage. Using business records from turn-of-the-century Chinese corporate companies, this paper argues that the government\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s top-down approach, while clearly well-intentioned, created a framework which only insufficiently promoted the system of corporate capitalism in pre-war China. |
| JEL: | G15 N25 |
| Date: | 2005–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:ysm:somwrk:ysm450&r=acc |
| By: | Stanley C. W. Salvary |
| Abstract: | This paper addresses two problematic issues arising from the importation of terms into financial accounting: (1) the nature of economic reality; and (2) the role of assumptions. These two issues have stirred a lot of controversy relating to financial accounting measurements and affect attestation reports. This paper attempts to provide conceptual clarity on these two issues. |
| Keywords: | Economic reality; audit opinion; Savings and Loan Associations; aggregative analysis; planning data; simplifying assumptions; going concern; liquidating concern; realization. |
| JEL: | D1 D2 D3 D4 |
| Date: | 2005–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpmi:0502006&r=acc |
| By: | stanley c. w. salvary (Canisius College) |
| Abstract: | This paper addresses a theme in an historical setting that financial accounting measurement contributes to: (1) retardation of national economic growth by the failure of financial accounting to provide for the replacement of capital goods in its measurement process; and (2) the business cycle owing to the illusory profits reported in financial statements. The author explores the issues and concludes that the arguments against accounting are based upon misunderstandings. |
| Keywords: | retardation of economic growth; national or social accounting; replacement cost accounting; Harrod's 'instability principle'; maintenance of physical capacity; illusory profits. |
| JEL: | E |
| Date: | 2005–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0502006&r=acc |
| By: | Stanley C. W. Salvary |
| Abstract: | This paper attempts to reinforce by means of social theory the procedure and property (attribute) of financial accounting measurement advanced by Salvary [1985,1989,1992]. The procedure entails estimating the amount of cash flows derivable from existing investment projects; and the measurement property (attribute) is identified as recoverable cost. The 'cash-in and cash-out' principle establishes financial capital maintenance as the appropriate capital maintenance concept to be followed in the measurement of periodic income. An analogy between a bank savings account and an equity security is used to identify the measurement property (attribute) and validate the additivity of financial accounting numbers. Problems with the monetarist model were used to demonstrate the appropriateness (stability) of the measurement scale (monetary unit). The logical analysis developed in this paper makes a compelling case for a reconsideration of Statement of Financial Accounting Concept No. 5 by the FASB. |
| Keywords: | capital maintenance; 'cash-in and cash-out' principle; organizing of economic activities; cost efficient means of transacting; uncertain purchasing power; price mechanism; intertemporal transfer of risks; Replacement of non-monetary assets; a venture approach; intersavers' transfer of risks; storage of financial capital;savings account; effectiveness and efficiency in cash management; Hicksian consumption model. |
| JEL: | G |
| Date: | 2005–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502015&r=acc |
| By: | Jayesh Kumar (Xavier Institute of Management) |
| Abstract: | This study investigates the firm financing patterns in India and the role of corporate governance mechanisms. We use firm-level time series data of nearly 2000 listed companies from 1994 through 2000, to analyze the firm’s corporate financing behavior in connection with its corporate governance arrangements, specially its shareholding pattern. Our results show that the capital structure of the firm is non-linearly linked to its corporate governance mechanisms (ownership structure). We find that firms with weaker corporate governance mechanisms (dispersed shareholding pattern, in particular measured by the entrenchment effects of group affiliation) tend to have a higher level of debt. Firms with higher foreign ownership or with low institutional ownership tend to have lower debt level. We do not find any significant relationship between ownership of directors and corporate with the firm financing in India. Overall, the findings presented in the paper provide evidence of definite role of corporate governance mechanisms in firm’s financing decisions in India. |
| Keywords: | Corporate Governance, Ownership Structure, Firm Financing, Capital Structure, Debt vs. Equity, and India |
| JEL: | G15 G32 G34 |
| Date: | 2005–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502003&r=acc |
| By: | Steven Huddart (Pennsylvania State University); Bin Ke (Pennsylvania State University); Charles Shi (University of California, Irvine) |
| Abstract: | We document how insider trading is associated with two significant information releases occuring each fiscal quarter: the earnings announcement, which is a summary measure of firm performance, and the subsequent Form 10-K or 10-Q, which contains additional price-relevant information. The association of trades before the earnings announcement and the abnormal return at the announcement suggests that insiders avoid profitable trades in this period. In contrast, trades after the earnings announcement are associated with both the preceding earnings announcement and the forthcoming 10-K or 10-Q release in a manner that suggests insider seek profitable trades. These findings are consistent with insiders conditioning their trading on foreknowledge of price- relevant public disclosures, but limiting their trades to periods when the jeopardy due to trade is low. |
| Keywords: | accounting standards, government regulation, insider trading, litigation risk, stock-based compensation |
| JEL: | K22 J33 M12 |
| Date: | 2005–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwple:0502001&r=acc |
| By: | Sanner, Leif (Department of Business, Economics, Statistics and Informatics) |
| Abstract: | Outsourcing is in this study defined as the transfer of responsibility and activities, including relevant assets and resources, from a user to a legally separate party, that becomes a vendor to the user. An outsourcer transfers activities to an outsourced unit. The situation of the outsourced unit becomes problematic in its provision of goods or services to both the outsourcer and other buyers. Specifically, the outsourced unit after outsourcing has ample and tight bonds to the outsourcer and there is a need to strike a balance between dependence and independence towards the outsourcer. The investigated problem reported in this article is: How can the outsourced unit strategically handle its situation after the outsourcing? Issues at stake for the outsourced unit are: How to hand le dependence on the outsourcer. How to use and develop competitive advantages, capabilities and resources. How to develop and implement business strategy. <p> Dependence can reside in asset specificity: Relationships with the outsourcer and business partners, need for the exchange partner’s competence, joint governance systems, the relative volume of goods/services provided and/or specialization of goods/services towards the exchange partner. The structure of the market may make it more or less possible to substitute one exchange partner for another. <p> For sustainable competitive advantage, the possession of or access to strategic capabilities and resources is needed, which the outsourced unit accumulates and deploys. The firm must meet the demand with a supply based on its capabilities and resources. The outsourced unit obviously starts with resources collected and capabilities developed by the out sourcer. It is its management’s task to identify and muster the resources and strategic capabilities of the firm. Inherited capabilities and resources may thus need to be developed into capabilities that are important for the outsourcer’s new role and position. <p> In two in-depth cases outsourced units are studied with focus on dependence on the outsourcer, the units’ guiding competitive advantages, their capabilities and resources. Two distinct strategies are identified. A strategy of conjunction with the outsourcer is to make use of competitive advantages, align capabilities and resources towards the outsourcer’s needs and to build on dependence by holding specific assets of interest for the outsourcer. A strategy of disjunction implies reducing dependence on the outsourcer by seeking new alliances and markets outside the outsourcer-outsourced relation. Disharmony with either of the strategies is discussed as a reason for strategic change. |
| Keywords: | Outsourcing; business relations; strategy |
| JEL: | M10 |
| Date: | 2005–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2005_002&r=acc |
| By: | Alain-Désiré Nimubona; Bernard Sinclair-Desgagné |
| Abstract: | Pollution abatement goods and services are now largely being delivered by a specialized "eco-industry." This note reconsiders Pigouvian taxes in this context. We find that the optimal emission tax will depart from the marginal social cost of pollution according to the polluters' and the environment firms' relative market power. <P>La production des biens et services destinés à reduire la pollution incombe actuellement souvent à des firmes spécialisées qui forment ce que l'on appelle maintenant l'« éco-industrie ». Cette note reconsidère les taxes pigouviennes dans ce contexte. Il est démontré que la taxe optimale sur les émissions polluantes divergera du coût social marginal de la pollution selon les pouvoirs de marché relatifs des pollueurs et des entreprises environnementales. |
| Keywords: | Pigouvian taxes, environment industry, taxes pigouviennes, industries de l'environnement |
| JEL: | H23 L13 |
| Date: | 2005–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2005s-21&r=acc |
| By: | Sanner, Leif (Department of Business, Economics, Statistics and Informatics) |
| Abstract: | Regional benchmarking studies were conducted on business practices in manufacturing plants in three regions in Sweden. The studies were designed to determine their use of best practices and thus enable firms to identify areas in which they need to make improvements. The questionnaire contained around 200 questions to which 452 firms responded. In analysing the results, questions and responses were grouped into six categories. Two indices were developed. <p> The studies classified firms scoring high as leaders, and firms scoring low as laggers. The studies showed inter alia that the gap in performance between leaders and laggers is particularly wide in Information & benchmarking and Innovation & technology. Conclusions are that improving benchmarking processes is a strategic step towards improving the firm’s business practices. |
| Keywords: | Benchmarking; business relations; strategy |
| JEL: | M10 |
| Date: | 2005–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2005_003&r=acc |
| By: | Brekke, Kjell Arne (The Ragnar Frisch Centre for Economic Research); Nyborg, Karine (The Ragnar Frisch Centre for Economic Research) |
| Abstract: | Morally motivated individuals behave more cooperatively than predicted by standard theory. Hence,if a firm can attract workers who are strongly motivated by ethical concerns, moral hazard problems like shirking can be reduced. We show that employers may be able to use the firm’s corporate social responsibility profile as a screening device to attract more productive workers. Both pooling and separating equilibria are possible. Even when a substantial share of the workers have no moral motivation whatsoever, such screening may in fact drive every firm with a low social responsibility profile out of business. |
| Keywords: | Self-image; teamwork; shirking; voluntary abatement |
| JEL: | D21 D62 D64 J31 Q50 Z13 |
| Date: | 2005–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2004_025&r=acc |
| By: | Bernardo BÁTIZ-LAZO (London South Bank University); Peter WARDLEY (University of the West of England) |
| Abstract: | This paper explores the automation of the supply of financial services on the British High Street. Its aim is to provide an historical perspective to highlight the longevity of organisational change in the financial sector and to emphasise its remarkable continuity: UK clearing banks and building societies had very specific problems and adopted particular responses. It also indicates the close correspondence of organisational change with assessments by senior bank staff of both technological opportunities and the reception to change of bank customers. Office mechanisation (from the introduction of office equipment and “mechanical banking” in the inter-war years to its culmination with computer technology in the late 1950s and beyond) was introduced alongside the development of new capabilities. Technological change eventually offered others the potential to compete in bank markets. However, time and again, and despite a broadening of the range of financial institutions which provided competing services, technical change associated with long-standing experience resulted in a strengthened competitive position for already established participants. |
| Keywords: | banks, building societies, technological change, management accounting |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503001&r=acc |
| By: | Ray ANDERSON (Victoria University) |
| Abstract: | In 1950, the Australian Institute of Management introduced an Annual Report Award, which was designed to improve the form and presentation of annual reports. The purpose of this paper is to investigate the impact the award scheme had on annual report design and presentation and the financial practices of Australian companies. |
| Keywords: | Annual Reports; design; presentations; accounting practices |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503002&r=acc |
| By: | Didier BENSADON (Université de Nantes) |
| Abstract: | This survey aims to analyse the evolutions of the consolidation perimeter concept through reports and studies issued by public and private organizations implied in the financial report issue. A supplementary lighting is brought on the practice of the groups thanks to the analysis of Saint-Gobain consolidated accounts between 1965 and 1985. Résumé Cette recherche se propose d’analyser les évolutions de la notion de périmètre de consolidation au travers de rapports et études émanant d’organismes publics et privés impliqués dans l’information financière. Un éclairage supplémentaire est apporté sur la pratique des groupes grâce à l’analyse des comptes consolidés de Saint-Gobain entre 1965 et 1985. |
| Keywords: | Accounting history, consolidated accounts, consolidation perimeter, Saint-Gobain. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503003&r=acc |
| By: | Bertrand BLANCHETON (Université Montesquieu Bordeaux IV) |
| Abstract: | Pendant plus d’un an, entre 1924 et 1925, la Banque de France présente au public de faux bilans hebdomadaires. La Banque minimise le chiffre de la circulation monétaire afin de préserver la confiance des opérateurs notamment sur le marché des changes. Cette contribution lève le voile sur les techniques de manipulations utilisées et analyse les conséquences de la révélation en avril 1925 de ce « scandale » sur la crédibilité de la Banque de France. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503004&r=acc |
| By: | Hubert BONIN (Université Montesquieu Bordeaux IV) |
| Abstract: | L’histoire des banques en tant que « firmes » reste encore lacunaire pour les décennies antérieures aux travaux des spécialistes d’économie industrielle au sein des départements de gestion ou de sciences économiques, qui portent sur le dernier tiers du XXe siècle. Pourtant une « préhistoire » du management est pertinente pour évaluer comment les banquiers ont évolué d’un type de société plutôt informelle où les méthodes de traitement administratif et comptable avaient en fait plus ou moins léguées par les techniques constituées pendant les XVe- XVIIIe siècles à un type de société structurée en une véritable « organisation ». La notion de « rationalisation » devient alors un mot d’ordre et détermine un processus d’évolution vers un nouveau type d’économie tertiaire, beaucoup plus « formalisée » – en opposition à une économie « informelle » ou simplement encore « inorganisée » – parce que les banques se sont soudain inquiétées de ne plus pouvoir connaître la réalité de l’étendue chiffrée des risques qu’elles brassaient. Les exigences de contrôle des risques – l’une des spécificités du portefeuille de savoir-faire des banques – ont évidemment pesé en faveur d’une rapide acclimatation de méthodes « industrielles » pour mettre en place une réelle « organisation tertiaire ». C’est pourquoi l’introduction des machines comptables n’est qu’une pièce du vaste ensemble de réformes de rationalisation qui se cristallise dans les années 1920-1950 : standardisation, normalisation, suppression des doublons-papiers et des duplications ou chevauchements de services, durcissement des procédures de contrôle et mécanisation (de l’écriture, avec les machines à écrire ; ou des comptes) sont autant d’outils de cette mutation structurelle qui introduit les « technologies de l’information » dans le secteur bancaire. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503005&r=acc |
| By: | Trevor BOYNS (Cardiff University) |
| Abstract: | Through a detailed examination, using business archives, of the impact of the First World War on cost calculation practices in British firms, this paper examines, and finds wanting, the claim of Loft (1986, 1990) that cost accounting came into the light in Britain during the First World War. |
| Keywords: | costing, Britain, First World War |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503006&r=acc |
| By: | Emmanuel CHARRIER (Université Paris IX Dauphine) |
| Abstract: | Le dispositif juridique français, fidèle au modèle de la décision publique, place l’expert dans une situation subalterne par rapport au Juge qui le choisit, lui fixe sa mission, lui impartit des délais et finalement le rémunère, et à qui il doit apporter un éclairage strictement limité à sa technique afin que la décision de justice soit prise en toute autorité par le Juge. Pourtant, l’expertise comptable judiciaire occupe une position particulière sur la scène judiciaire : la durée de ces missions donne à l’expert un accès privilégié aux justiciables ; la fréquence des discussions financières dans les procès les fait paraître accessibles, en dépit de la complexité des questions expertisées ; enfin, la comptabilité trouve ses racines dans l’économie, qui dispute au droit la légitimité à évaluer les dommages à réparer. C’est pourquoi l’étude se propose d’examiner, au travers des publications de compagnies d’experts, dans quelle mesure les experts comptables judiciaires se cantonnent au service technique du Juge ou, au contraire, se revendiquent comme pairs bien avisés au service de la Justice. |
| Keywords: | Droit, justice, expert judiciaire, expert comptable, comptabilité, technique, légitimité, autorité, compagnies d’experts, discours publics |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503007&r=acc |
| By: | Rahma CHEKKAR (Université Orleans) |
| Abstract: | Our study aims at understanding the introduction and the development of financial 'communication' in French companies. The case of Saint-Gobain (1867-2005) is used to explain why and how Saint-Gobain have taken the initiative in going more to meet investors, by having voluntary disclosed more than legal financial information. |
| Keywords: | Financial communication – France - Saint-Gobain – Voluntary disclosure – Law |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503008&r=acc |
| By: | Jean-Guy DEGOS (Université Montesquieu – Bordeaux IV) |
| Abstract: | It is difficult, even in 2005, to write the peaceful history of the French Institute of Chartered Accountants. Almost everywhere, it is written that it was founded in 1945. It would be more accurate to say that it was re-constituted in 1945. It was actually created in 1942 and its origins are still regarded with shame by some people. It is the dissension between the professionals, during the years 1925-1939 which gave birth to it in the Second World War. There would have been occasions to found it earlier (in 1867, or 1917, or even 1921). This paper does not aim to start again a painful polemic. It wants only to show how the Institute was organized and how it functioned during 3 years, 3 short but fundamental years, which left indelible traces that some sought at all costs to erase. |
| Keywords: | Corporatism, Education, Chartered Accountant, Formation, Professional Institute, Accounting Profession. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503009&r=acc |
| By: | Maxime DELHOMME (Société d'avocats Delhomme Brégou et associés) |
| Abstract: | Les avocats plaidaient et les comptables comptaient, les seconds, plus près des marchands dont les premiers se tenaient à distance. La révolution industrielle du 19ème n’ayant été possible que par l’instauration d’instruments juridiques nouveaux sont apparus entre le notariat, ange gardien du patrimoine, et l’avocat plaidant, sur les conséquences des atteintes à ce patrimoine, des juristes qui, eux, organisaient les nouvelles conditions de la création et de la gestion de ce patrimoine, notamment sous forme sociale. L’essor consécutif d’une fiscalité complexe a fourni par la suite tant à ces juristes qu’aux comptables un rôle de plus en plus important qu’ils se partageaient. L’Etat, pour assurer sa quiétude quant à l’établissement de l’assiette fiscale, formalisera alors une profession comptable libérale connue aujourd’hui sous le titre d’expert-comptable. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503010&r=acc |
| By: | Cheryll S. Mc WATTERS (University of Alberta); Yannick LEMARCHAND (Université de Nantes) |
| Abstract: | Malgré un titre très général qui explique certainement le peu de place qui lui a été fait jusque-là dans l'histoire de la comptabilité, le Guide du commerce de Gaignat de l'Aulnais (1771) est vraisemblablement l'un des tout premiers manuels spécialisés de comptabilité, mais d'une spécialisation qui lui confère une place très particulière. Au-delà de quelques paragraphes consacrés aux matières commerciales traditionnelles — marchandises à échanger en divers pays, pratique du change, effets de commerce, poids et mesures, etc. — et d'une présentation relativement classique de la tenue des livres en partie simple et parties doubles, l'ouvrage est essentiellement consacré au commerce maritime et, plus particulièrement, à l'un de ses aspects les plus dramatiques : la traite négrière. L’essor consécutif d’une fiscalité complexe a fourni par la suite tant à ces juristes qu’aux comptables un rôle de plus en plus important qu’ils se partageaient. L’Etat, pour assurer sa quiétude quant à l’établissement de l’assiette fiscale, formalisera alors une profession comptable libérale connue aujourd’hui sous le titre d’expert-comptable. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503011&r=acc |
| By: | Yves LEVANT (ESC Lille); Marc NIKITIN (Université Orleans) |
| Abstract: | In the first half of the 20th century France, consultants offered their services to big firms, sometimes successfully. In a somewhat cloudy economic context, some of them, like Bedaux or Perrin, elaborated more ambitious social projects, in order to cope with the economic disorders. All those projects failed. L’Etat, pour assurer sa quiétude quant à l’établissement de l’assiette fiscale, formalisera alors une profession comptable libérale connue aujourd’hui sous le titre d’expert-comptable. |
| Keywords: | Consultants – Business History – France – 20th century- Bedaux – Perrin |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503012&r=acc |
| By: | Marc MALHERBE (Université Montesquieu Bordeaux IV) |
| Abstract: | Comptabilité et droit n’ont pas toujours été deux sciences indépendantes. Sous l’Antiquité romaine, la comptabilité privée a largement contribué à la formation du droit romain, particulièrement entre le second siècle avant Jésus-Christ et le IIIe siècle de notre ère. Pendant cette période de cinq siècles, la comptabilité privée a tout d’abord constitué un moyen de preuve très utile en cas de litige, avant de devenir une véritable source du droit des contrats. Ce n’est qu’au Bas-Empire que son influence s’affaiblira, lorsque le droit deviendra complètement autonome. |
| Keywords: | Comptabilité privée. Droit romain. Codex accepti et expensi. Expensilatio. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503013&r=acc |
| By: | Nicolas PRAQUIN (Université Marne la vallée) |
| Abstract: | En consacrant le principe de responsabilité limitée aux apports pour les actionnaires de sociétés anonymes, le législateur introduisait dans le code de commerce de 1807 une règle novatrice qui aura des répercussions majeures sur la façon de concevoir la comptabilité dans son rapport avec les créanciers ; elle se traduit par le principe de fixité du capital à partir de 1818. Initialement rudimentaire, le concept devient complexe à mesure que se transforment l’environnement socio-économique et les pratiques comptables. La discussion entre comptables et juristes s’avère féconde : la règle juridique s’inscrit progressivement comme principe comptable avant d’être abandonnée lors de la mise en œuvre des plans comptables français. |
| Keywords: | Fixité du capital – Capital social – Créanciers – Code de commerce – Principes comptables – Situation nette. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503014&r=acc |
| By: | Christian PRAT dit HAURET (Université Montesquieu Bordeaux IV) |
| Abstract: | The research topic is analysing financial statements of Suez Channel Company from the construction beginning to the end (1859-1869) |
| Keywords: | Financial Statements - Investment -Suez Channel - Ferdinand de Lesseps |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503015&r=acc |
| By: | Jeannette RUTTERFORD (Open University) |
| Abstract: | This paper explores the roles of a merchant banker, Everard Hambro, and the chairmen of two companies, Thames Iron and Trollope, Colls & Co., in the restructuring of their companies at the beginning of the twentieth century. Their correspondence provides evidence that the choice of corporate capital structure had little to do with company needs or risk characteristics. Instead, Hambro, in concert with stockbrokers, concentrated on legal issues and on ensuring that the securities issued conformed in amount, type and price to market norms, including the avoidance of stock watering. The company chairmen concentrated on ensuring that they retained control and that the new issues were deemed a success. |
| Keywords: | Corporate finance, stock watering, underwriting, new issues |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503016&r=acc |
| By: | Sami El OMARI (Université des sciences sociales Toulouse 1); Michèle SABOLY (Université des sciences sociales Toulouse 1) |
| Abstract: | The purpose of this article is to study the birth and the evolution of accountancy profession and bodies in Morocco. The results show that accountants attempt to monopolize the market for accounting and audit services. National and historical specificities are highlighted. |
| Keywords: | professional bodies, history, Morocco |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503018&r=acc |
| By: | Christian SIMON (Université Paris 12 Créteil Val -de- Marne) |
| Abstract: | Le jeudi 25 septembre 2003, lors de l’ouverture du Congrès des experts- comptables au Palais des expositions de la Porte Maillot à Paris, le Premier Ministre, Jean-Pierre RAFFARIN, aurait-il par son annonce mis à nouveau le feu aux poudres ? La hache de guerre est-elle de nouveau déterrée entre avocats et experts-comptables ? En cause, un arbitrage rendu par Matignon en faveur de l’intervention des experts-comptables dans le domaine de la création d’entreprise, incluant ainsi le conseil juridique. Le périmètre d’intervention de l’expert en chiffres s’en trouve élargi, alors qu’il était défini de façon assez stricte dans l’ordonnance de 1945. La jurisprudence d’ailleurs par un arrêt du 4 février 2003 avait déjà ouvert la brèche. Rivaux ou complémentaires ? C’est ce que s’efforcera de démontrer cette étude. |
| Keywords: | Actes juridiques, avocat, expert-comptable, Ordre. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503019&r=acc |
| By: | Béatrice TOUCHELAY (Université Paris 12 Créteil Val -de- Marne) |
| Abstract: | L’imposition des bénéfices exceptionnels liés à la Grande guerre est introduite par la loi du 1er Juillet 1916. Née de la guerre, cette loi est d’abord l’objet d’un consensus relatif. Elle marque le début de la modernisation du système fiscal français. Le contexte de la guerre mais aussi les difficultés d’application tenant à la complexité de la loi et au manque d’empressement des assujettis limitent son rendement. L’expérience inédite de ce premier impôt sur les bénéfices industriels et commerciaux français est pourtant riche d’enseignements. Elle oblige à définir les limites du droit des entreprises sur leur bénéfice, à discuter des limites du secret des affaires et à s’interroger sur la légitimité et sur les modalités de l’intervention de l’Etat dans la répartition des revenus. L’expérience ouverte en 1916 sert de repère aux grandes réformes fiscales de l’après guerre. Elle sert aussi à définir la fiscalité exceptionnelle introduite pour répondre aux nécessités du réarmement. La filiation se prolonge après la Libération. L’une des premières mesures d’autorité du Gouvernement provisoire de la République française est d’adopter une ordonnance prescrivant la confiscation des profits illicites. Il s’agit désormais de punir et non plus d’éliminer les enrichissements liés à la guerre. Il s’agit également d’asseoir une Autorité politique, et non plus de répondre aux aspirations des parlementaires. Il faut confisquer et taxer les profits illicites alors que le législateur de juillet 1916 introduisait une contribution exceptionnelle sur les bénéfices extraordinaires. Le choix du terme profit – qui a une mauvaise image en France – et celui du qualificatif illicite stigmatisent une faute. Il y a donc deux réactions fiscales distinctes aux sorties des guerres mondiales. Ces expériences montrent que les fondements juridiques de la fiscalité peuvent être davantage liés aux circonstances que le résultat d’une construction rigoureuse. |
| Keywords: | Entreprises - Fiscalité – Impôts - Guerres mondiales - Histoire économique et financière de la France - Patronat |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503020&r=acc |
| By: | Stéphane TREBUCQ (Université Montesquieu-Bordeaux IV) |
| Abstract: | The case of a French merger can be used to better understand the nature of conflicts of interest and cognitive conflicts between accountants, shareholders, lawyers and judges. This is especially the case when exchange ratios are unfairly established. When caught in a situation of asymmetrical information, minority shareholders try to obtain more information about the auditors' report through a trial. The financial knowledge possessed by the judge then becomes a necessary condition if shareholders are to be protected. |
| Keywords: | Auditor, minority shareholder, merger, trial, exchange ratio, fairness |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503021&r=acc |
| By: | Jean-Guy DEGOS (Université Montesquieu-Bordeaux IV); Loïc GESLIN (Conseil régional de l'OEC d'Aquitaine) |
| Abstract: | The ordinance of September 19, 1945, which had been preceded by laws 467 and 468 of April 3, 1942, has always been the law of the Institute of Chartered Accountants. This chart, designed in painful times, has been of great use since its promulgation, because it contains some articles particularly relevant and structuring. But sometimes it contains more contestable paragraphs. Among those, article number 14 generates ambiguity on the respective missions of the Chartered Accountants and the Certified Accountants and especially article number 22 treats of the additional missions of the chartered accountant and often caused competitions between lawyers and accountants. This document points out some stages of this fight and gives an extreme example of these contests which will have to necessarily disappear, for the common use of the firms and the both professional Institutes. |
| Keywords: | Corporatism, Diplomas, Teaching, Chartered accountant (CPA), Professional Institute, Education, Accounting profession. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503022&r=acc |
| By: | stanley c. w. salvary (Canisius College) |
| Abstract: | In its Conceptual Framework (CF), the Financial Accounting Standards Board (FASB) has not identified the observable phenomena and was not able to identify a single measurement property in financial accounting. While identifying aspects of the observable phenomena in financial accounting, the FASB has indicated that there are five measurement attributes which are used in financial accounting and the result is a mixed-attributes model. Lacking a critical underlying theory, the FASB’s Conceptual Framework is feeble at best in providing guidance for accounting measurement. Devoid of the critical theory, the FASB focuses on prediction rather than explanation and, thereby, has adopted an ‘information perspective’ as opposed to a ‘measurement perspective’ for financial accounting standards. This condition has induced a very serious concern for legislative action on the part of the US Congress. In this paper, investments constitute the observable phenomena in financial accounting and recoverable cost, which is grounded in measurement and not prediction, is the measurement property. This measurement property, which is linked to investments and explicated by the capital budgeting model, provides the logical explanation of the apparent diverse rules in financial accounting and establishes a single attribute model. |
| Keywords: | Conceptual framework; transaction costs; organizational activity; measurement attribute; present value; realizable value; lower of cost and market value; organizational efficiency; bank-centric financial system; |
| JEL: | G |
| Date: | 2005–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502001&r=acc |
| By: | stanley c. w. salvary (Canisius College) |
| Abstract: | Several tests have been conducted to determine which valuation model best fits stock price data. Given very little success, those studies suggest the need for a clear understanding of the market process of stock price determination. This paper advances the concepts of product costing and product pricing, which pertain to financial accounting valuation and the stock market price determination, respectively. This research effort presents a workable hypothesis of stock price determination. |
| Keywords: | stock valuation models; fundamental value; committed finance; financial product costing; financial product pricing; 'investment base'; risk/return preferences; sequential expectations adjustment model; heterogeneous expectations; economic space. |
| JEL: | G |
| Date: | 2005–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502011&r=acc |
| By: | Gerhard Fink (Vienna University of Business & Economics); Peter R. Haiss (Bank Austria); Lucjan T. Orlowski (Sacred Heart University); Dominick Salvatore (Fordham University) |
| Abstract: | The paper focuses on the question whether banks and capital markets in Central Europe are capable of exerting a positive influence on enterprise performance at the present stage of the economic transformation. These markets are characterised by privileged, collaborative interfirm/interbank relationships demonstrated through various channels. Among them is the competition for private deposits between commercial and national banks that are simultaneously supervisors of commercial banks, as is the case in Poland. Other channels include: heavily indebted large banks that are owners of industrial companies (as is the case in Slovakia with the steel mill VSZ owning the third largest bank IRB), investment funds that are facilitating industrial restructuring, and foreign banks holding only minority stakes in large domestic financial institutions. |
| JEL: | G20 P30 |
| Date: | 2005–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502012&r=acc |
| By: | Stanley C. W. Salvary |
| Abstract: | Some current research conclude that the numbers in financial statement are not relevant for three basic reasons. The numbers: (1) are not isomorphic1 with capital market values, (2) do not have a future orientation, and (3) are un-interpretable since they are based upon five different measurement attributes. The lack of isomorphism argument is invalid since actual current performance is not identical with the capital market expectations of future performance. The lack of a future orientation argument is invalid since financial statements capture what has happened and not what is expected to happen. Since a single measurement attribute is required to produce meaningful measures, the un-interpretability argument holds. A unique measurement attribute is identified in this paper to address this problem |
| Keywords: | capital market values; Basle Capital Accord; value of marketable securities; technical insolvency effect; the high-technology and dot-com firms; security returns; short-term earnings management; 'new economy'; Total Value Creation; liquidity of insurance industry; causative choice; speculative choice; goodwill impairment; financial analysis; |
| JEL: | G |
| Date: | 2005–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502016&r=acc |
| By: | Loukas Spanos (National & Kapodistrian University of Athens, Dept. of Economics) |
| Abstract: | The upgrading of the Greek capital market and the effort to join other mature capital markets has posed corporate governance reform as a first priority. In addition, the 2004 Olympic Games put the Greek market in the international spotlight and will likely invite interest from foreign investors. More than ever, an efficient corporate governance framework is condition sine qua non for the competitive transformation of the capital market and the business world. At the same time the European Union (EU) faces both the pressure and challenge for harmonization of the laws and regulations and convergence of corporate governance systems, especially after the entrance of the new member states. The paper has two objectives: (i) to present the main aspects of corporate governance in Greece, contributing to the relevant growing body of literature, and (ii) to place the current corporate governance developments and trends in Greece within the international debate, especially in the light of the recent debate to improve and convergence corporate governance in EU. Firstly, I review the corporate governance debate and its implication at the EU level. Secondly, I describe the corporate governance framework in Greece in the light of the recent key reforms. Finally, I summarize the overall findings and proceed with some critical points and recommendations for the potential future direction of the corporate governance agenda in Greece. |
| Keywords: | Corporate governance, rating, disclosure, ownership, Greece |
| JEL: | G |
| Date: | 2005–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502017&r=acc |
| By: | stanley c. w. salvary |
| Abstract: | Given the call for the development of an accounting conceptual framework, this paper rejects the need for such an undertaking. Using a historical methodology this paper traces the existence of an accounting conceptual framework that painstakingly has been established over the centuries. The paper maintains that the existing need is to fine tune the exisiting framework. |
| Keywords: | A Classical Model of Accounting; measure ment and communication processes; stock-jobbing of companies' shares; 'Bubble Act'; environmental stimulus; feudal system; venture accounting; 'economic capital maintenance'; creditors' protection; Joint Stock Companies; conservatism; corporate capitalism; corporate social responsibility. |
| JEL: | G |
| Date: | 2005–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0502019&r=acc |
| By: | Loukas Spanos (University of Athens Department of Economics); Lena Tsipouri (University of Athens Department of Economics); Manolis Xanthakis (University of Athens Department of Economics) |
| Abstract: | Corporate governance (CG) studies have mostly focused on highly dispersed corporations. However, there is an important need for research exploring the governance structure of family-owned firms. The main characteristics that distinguish the family firm from the other types of corporations are the presence of one or more controlling family and the involvement of the owners in the management. Family firm is the most common form of business in Greece. Hence, the governance structures and the performance of the family firms affect the growth opportunities of the capital market. The aim of the paper is to explore the main aspects of CG of family-owned listed companies in Greece. For this purpose, we apply a specific CG rating methodology, using five core CG criteria to distinguish family from non-family firms: shareholders' rights and obligations; transparency, disclosure of information and auditing; board of directors; CEO and executive management and corporate social responsibility and corporate governance commitment. The overall research objective of the study is to develop a CG rating methodology on the current state of corporate governance in Greece. Each firm is rated among the 120 total number of companies (both family-owned and widely- held). The results disclose the potential strengths and weaknesses of the existing corporate governance framework of the family-owned firms and provide specific policy recommendations. |
| Keywords: | family firms, corporate governance rating, Greece |
| JEL: | G32 G39 |
| Date: | 2005–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0503011&r=acc |
| By: | Dalthan Simas (Universidade do Estado do Rio de Janeiro, Brazil); Otavio De Medeiros (Universidade de Brasilia, Brazil) |
| Abstract: | This paper has the purpose of surveying and critically analyzing the effects of accounting procedures which are closely related to groups of companies operating multinationally. These are the methods for translation of financial statements, e.g. the Temporal and the Closing- rate Methods, as far as those methods are embodied in accounting standards which have been either recommended or adopted by countries such as the UK and US. We conclude that with regard to changing prices, General Price Level Accounting is the best option. As for exchange rate fluctuations, the Closing Rate Method should be preferred over the Temporal Method, the order being owed to the greater relative importance of foreign operations which are carried out in an independent way, vis- à-vis those which are mere extensions of the parent company's. Costs may also have played a part towards the choice. However, the main conclusion that can be drawn is that convenience of use, for both the accounting profession and report users, seems to have been the determinant factor. |
| Keywords: | financial statements, translation, international accounting, exchange rate |
| JEL: | G |
| Date: | 2005–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0503018&r=acc |
| By: | Otavio De Medeiros (Universidade de Brasilia, Brazil) |
| Abstract: | This paper reports the construction and testing of an econometric model designed to represent a firm’s financial statements. More specifically, the paper aims at showing how a firm’s financial statements can be empirically explained by means of a simultaneous equations structural model connecting macro and microeconomic (market) variables with accounting variables. We also present forecasts for the financial statements. The firm to which the model is applied is a monopoly in the Brazilian domestic market for petroleum products and the largest Brazilian firm in operation. The results obtained are consistent with the expectations associated to the structural model. Applications stemming from the study include financial analysis, forecasting and planning, as well as firm valuation. |
| Keywords: | econometric model, accounting, financial statements, Brazilian firm, simultaneous equations |
| JEL: | G |
| Date: | 2005–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0503020&r=acc |
| By: | Kirby Adam J.R. Faciane (Kirby Faciane / KAJR Faciane) |
| Abstract: | Over the past two decades, many economists believe that financial changes have greatly benefited society. Others argue that welfare gains have been a mixed blessing; a minority would probably go so far as to say that costs have outweighed their benefits. There is naturally no satisfactory resolution to this debate, considering the complexity of the issues as well as the judgmental nature of benefit and cost calculations. A look at the presumed positive effects and difficulties might be helpful in providing a perspective on the debate. |
| Keywords: | financial evolution, assessment |
| JEL: | G G0 G00 |
| Date: | 2005–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0503022&r=acc |
| By: | Asish K. Bhattacharyya (Indian Institute of Management Calcutta); Sadhalaxmi Vivek Rao (Indian Institute of Management Calcutta) |
| Abstract: | India, with its 20 million shareholders, is one of the largest emerging markets in terms of the market capitalization. In order to protect the large investor base, the Securities and Exchange Board of India (SEBI) has enforced a regulation effective from April 2001, requiring mandatory disclosure of information and a change in the corporate governance mechanisms of the listed companies. This study empirically examines the economic impact of the Regulation on the stock market variables. The experimental group exhibits significant reduction in their beta consistent to the notion that increased information and better corporate governance mechanism reduces the risk of these companies. |
| Keywords: | Corporate Governance, Financial Disclosure Regulation, Voluntary Disclosure, Risk, Cost of Capital |
| JEL: | M41 G34 G38 |
| Date: | 2005–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0504002&r=acc |
| By: | Asish K. Bhattacharyya (Indian Institute of Management Calcutta) |
| Abstract: | Public sector occupies a prominent position in the Indian economy. The present government policy is to divest its holding in PSUs, without privatizing profit making PSUs. It has also decided to provide full autonomy to the board of directors of those enterprises. This provides an interesting setting to examine corporate governance issues. This paper examines corporate governance issues in the context of present disinvestment policy of the government. |
| Keywords: | Public Sector Enterprises, State-Owned Enterprises |
| JEL: | G30 |
| Date: | 2005–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0504004&r=acc |
| By: | Juan Prieto-Rodriguez (Universidad de Oviedo); Maria Jose Sanzo-Perez (Universidad de Oviedo); Javier Suarez-Pandiello (Universidad de Oviedo) |
| Abstract: | This paper is inscribed in the literature on fiscal fraud and moral of taxpayers. We analyse the attitude of the Spaniards respect to two kinds of fraud: the hiding of income to pay less taxes and the hiding of information to benefit fraudulently from goods and services that otherwise one would not have the right to enjoy. Besides, we examine the determining factors on these variables by estimating ordered probit models. According to the postulates of Public Choice Theory we have included in the analysis political orientation variables. These factors have verified the significant effects of the politics, confirming its importance on the individual’s fiscal moral. |
| Keywords: | ordered probit model, tax evasion, tax morale |
| JEL: | H26 H31 |
| Date: | 2005–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwppe:0502005&r=acc |