Contemporary Accounting Research
0823-9150
1911-3846
Mỹ
Cơ quản chủ quản: WILEY , Wiley-Blackwell
Lĩnh vực:
Economics and EconometricsAccountingFinance
Phân tích ảnh hưởng
Thông tin về tạp chí
Contemporary Accounting Research (CAR), the premiere research journal of the Canadian Academic Accounting Association, publishes leading- edge research that contributes to our collective understanding of accounting's role within organizations, markets or society. Canadian based, and global in scope, CAR seeks to reflect the worldwide intellectual diversity in accounting research. Therefore, CAR welcomes interesting and intellectually rigorous work in all topics of accounting, using any appropriate method, and based in any discipline or research tradition that can contribute to accounting knowledge.
Các bài báo tiêu biểu
The Relation Between Earnings Management Using Real Activities Manipulation and Future Performance: Evidence from Meeting Earnings Benchmarks*
Tập 27 Số 3 - Trang 855-888 - 2010
Earnings Manipulation in Failing Firms Abstract Prior literature and anecdotal evidence, most recently provided by allegations relative to Enron, Global Crossing, and WorldCom, suggest that failing firms (defined here as prebankruptcy firms) may be motivated to engage in fraudulent financial reporting to conceal their distress. I examine two research questions: (1) Are failing firms' prebankruptcy financial statements more likely to exhibit signs of material income increasing earnings manipulation than those of nonfailing firms? (2) Do auditors detect the overstatements in firms that they perceive to be failing? I predict and find that as (ex post) bankrupt firms that do not (ex ante) appear to be distressed approach bankruptcy, their financial statements reflect significantly greater material income‐increasing accrual magnitudes in nongoing‐concern years than do control firms. The accrual behavior of these firms resembles that of bankrupt firms that the Securities and Exchange Commission (SEC) has sanctioned for fraud. Like sanctioned firms, the nonstressed bankrupt firms display significantly greater (material) increases in receivables; inventory; property, plant, and equipment; sales; net working capital, current, and discretionary accruals in prebankruptcy nongoing‐concern years than do control firms. They also display significantly more negative changes in cash flows from operations and net cash and a greater disparity between accrual‐based net income and operating cash flows than do control firms, consistent with Lee, Ingram, and Howard 1999. Finally, I predict and find that these firms' going‐concern years reflect evidence consistent with auditor‐prompted reversal of previous overstatements. These results are based on parametric and nonparametric tests for various subsample combinations drawn from a sample of 293 bankrupt firms representing approximately 2,500 observations.
Tập 20 Số 2 - Trang 361-408 - 2003
Accounting for Flexibility and Efficiency: A Field Study of Management Control Systems in a Restaurant Chain* Abstract While some field studies have suggested that management control systems can be used simultaneously to make organizations more efficient and more flexible, the contingency literature has found it difficult to address this issue in the absence of a clear and comprehensive typology for analyzing more processual uses of management control systems. This paper distinguishes between enabling and coercive (Adler and Borys 1996) uses of management control systems. Coercive use refers to the stereotypical top‐down control approach that emphasizes centralization and preplanning. In contrast, enabling use seeks to put employees in a position to deal directly with the inevitable contingencies in their work. The design principles that underlie the enabling use of management control systems are repair, internal transparency, global transparency, and flexibility. Through a detailed analysis of a single‐case field study carried out over a two‐year period, we illustrate how management pursued the objectives of efficiency and flexibility by using management control systems in enabling ways. We suggest that the four design principles of enabling use can facilitate field studies of management control systems, but that they can also be used to define an enabling typology for contingency researchers to analyze the ways in which organizations simultaneously pursue efficiency and flexibility through their management control systems.
Tập 21 Số 2 - Trang 271-301 - 2004
Enterprise Risk Management Program Quality: Determinants, Value Relevance, and the Financial Crisis This paper investigates factors associated with high‐quality Enterprise Risk Management (ERM ) programs in financial services firms, and whether ERM quality enhances performance and signals credibility to the financial markets. ERM , developed with the assistance of the accounting profession, provides a framework and plan to integrate management of all sources of risk. Challenged by measurement difficulties common to research on management control systems, prior ERM studies present mixed findings. Using ERM quality ratings of financial companies by Standard & Poor's, we find that higher ERM quality is associated with greater complexity, less resource constraint, and better corporate governance. Controlling for such characteristics, we find that higher ERM quality is associated with improved accounting performance. Results show a market reaction to signals of enhanced management control from initial ERM quality ratings and rating revisions, and a stronger response to earnings surprises for firms with higher ERM quality. Focusing on the recent global financial crisis, our analysis suggests that there is no relation between ERM quality and market performance prior to and during the market collapse. However, returns of higher ERM quality companies are higher during the market rebound. Overall, results reveal that firm performance and value are enhanced by high‐quality controls that integrate risk management efforts across the firm, enabling better oversight of managers' risk‐taking behavior and aligning that behavior with the strategic direction of the company.
Tập 30 Số 4 - Trang 1264-1295 - 2013
A Field Study of Control System “Redesign”: The Impact of Institutional Processes on Strategic Choice* Abstract. This paper studies the role of an organization's accounting control system (ACS) as part of an interrelated control “package,” in which other control systems function either as substitutes or complements. Drawing on resource dependence and institutional theories, it argues that this control mix is not only contingent on the organization's technical environment but also on its institutional environment. In addition, the paper draws on empirical evidence to demonstrate how the design of the “package” is actively shaped by the strategic choices of its dominant coalition. The empirics are based on a longitudinal field study of one large, public teaching hospital in Australia that underwent material changes in its governance structure, culture, and accounting control system.Résumé. Les auteurs étudient le rôle du système de contôle comptable d'une organisation, à titre d'élément d'une « famille » de systèmes de contrôle reliés entre eux à l'intérieur de Iaquelle les autres systèmes de contrôle jouent le rôle de substituts ou de compléments. S'inspirant de la théorie de la dépendance des ressources et de la théorie institutionnelle, ils affirment que cette combinaison de systèmes n'est pas seulement tributaire de l'environnement technique de l'organisation, mais de son environnement institutionnel. Ils se fondent, en outre, sur des constatations empiriques pour démontrer comment la structure de la « famille » de systèmes est activement façonnée par les choix stratégiques du groupe dominant. Les données empiriques proviennent d'une étude longitudinale sur le terrain, menée auprès d'un important hôpital public universitaire australien dont la structure de régie, la culture et le système de contrôle comptable ont connu des transformations majeures.
Tập 13 Số 2 - Trang 569-606 - 1996
Beyond the Numbers: Measuring the Information Content of Earnings Press Release Language*
Tập 29 Số 3 - Trang 845-868 - 2012
A Synthesis of security valuation theory and the role of dividends, cash flows, and earnings* Abstract. The paper reviews and synthesizes modern finance valuation theory and the ways it relates to the valuation of firms and accounting data. These models permit uncertainty and multiple dates, and the concept of intertemporal consistency in equilibria becomes critical. The key conclusions are (1) the basic theoretical insight derives from a powerful condition of no arbitrage; there is no role for complete markets in basic valuation theory; (2) only anticipated dividends can serve as a generically valid capitalization (present value) attribute of a security; (3) the notion of risk is general, and models such as the CAPM occur only as special cases; (4) the notion that one can capitalize cash flows rather than dividends requires additional (relatively stringent) assumptions; (5) existing theory of “pure” earnings under uncertainty lacks unity regarding their meaning and characteristics. It is argued that only one concept of “pure” earnings makes economic sense. In this case earnings are sufficient to determine a security's pay‐off, price plus dividends, consistent with some prior research but inconsistent with others.Résumé. L'auteur procède à l'examen et à la synthèse de la théorie moderne de l'évaluation financière et de la façon dont elle se rapporte à l'évaluation des entreprises et des données comptables. Les modèles utilisés prévoient les cas d'incertitude et de dates multiples, et la notion d'uniformité intertemporelle en situation d'équilibre revêt une importance critique. Les principales conclusions de l'auteur sont les suivantes: 1) le principe théorique fondamental dérive d'une forte situation de non‐arbitrage; 2) seuls les dividendes anticipés peuvent servir d'attribut de capitalisation (valeur actualisée) valide d'un titre sur le plan générique; 3) la notion de risque est générale, et les modèles tels que le modèle d'équilibre des marchés financiers ne se vérifient que dans des cas particuliers; 4) la notion de capitalisation des flux monétaires plutôt que des dividendes nécessite des hypothèses supplémentaires (relativement rigoureuses); 5) la théorie existante des bénéfices « purs » en situation d'incertitude manque d'unité en ce qui a trait au sens et aux caractéristiques de ces bénéfices. L'auteur affirme que la revue qu'il a effectvée de travaux antérieurs l'amène à conclure qu'un seul concept de bénéfices « purs » se justifie sur le plan économique pour déterminer le produit d'un titre qui comprenne à la fois le prix et les dividendes.
Tập 6 Số 2 - Trang 648-676 - 1990
The Effect of Audit Quality on Earnings Management* Abstract This study examines the relation between audit quality and earnings management. Consistent with prior research, we treat audit quality as a dichotomous variable and assume that Big Six auditors are of higher quality than non‐Big Six auditors. Earnings management is captured by discretionary accruals that are estimated using a cross‐sectional version of the Jones 1991 model. Prior literature suggests that auditors are more likely to object to management's accounting choices that increase earnings (as opposed to decrease earnings) and that auditors are more likely to be sued when they are associated with financial statements that overstate earnings (as compared to understate earnings). Therefore, we hypothesize that clients of non‐Big Six auditors report discretionary accruals that increase income relatively more than the discretionary accruals reported by clients of Big Six auditors. This hypothesis is supported by evidence from a sample of 10,379 Big Six and 2,179 non‐Big Six firm years. Specifically, clients of non‐Big Six auditors report discretionary accruals that are, on average, 1.5‐2.1 percent of total assets higher than the discretionary accruals reported by clients of Big Six auditors. Also, consistent with earnings management, we find that the mean and median of the absolute value of discretionary accruals are greater for firms with non‐Big Six auditors. This result also indicates that lower audit quality is associated with more “accounting flexibility”.
Tập 15 Số 1 - Trang 1-24 - 1998