Advances in International Accounting (eBook)

Cover 1
Contents 6
List of Contributors 8
Editorial Board 10
Reviewer Acknowledgment 12
Determinants of Corporate Social Disclosure in Developing Countries: The Case of Qatar 14
Introduction 15
Financial Reporting and Auditing Systems in Qatar 16
Previous Studies 17
Model Development 19
Methodology 21
Data Collection 24
Findings 25
Descriptive Statistics 25
Pearson Correlation 25
Multiple Regressions 27
Conclusion 31
Notes 32
Acknowledgment 32
References 33
Harmonization of Accounting Measurement Practices in South Asia 38
Introduction 39
Motivation and Justification of the Study 41
Development of the South Asian Region 41
SAFA’s Harmonization Initiatives and Support for IASB’s Standards 42
Institutional Regulations on Accounting Measurement 44
Prior Research and Review of Literature 45
Research Methodology 46
Data 46
Statistical Analysis 46
Hypothesis Statement 49
Results and Analysis 50
Inventory Valuation 50
Inventory Costing Methods 51
Depreciation of Property, Plant and Equipment 52
Valuation of Property, Plant and Equipment 54
Gains or Losses on Disposal of Property, Plant and Equipment 54
Accounting for Leases 55
Accounting for Pensions and Retirement Benefits Costs 56
Accounting Treatment for Foreign Currency Translation and Transactions 58
Business Combinations 60
Treatment of Goodwill 62
Accounting for Long-Term Investments 62
Disposal of Long-Term Investments 64
Measurement of Current Investments 65
Treatment of Gains and Disposal of Current Investment 65
Summary and Conclusions 66
Notes 69
Acknowledgements 69
References 69
The Role of Earnings and Book Values in Pricing Stocks: Evidence from Turkey 72
Introduction 73
Institutional and Economic Characteristics of Turkey 74
Accounting Treatment in Turkey 79
Literature Review 80
Studies Examining Association of Earnings and Book Values with Equity Values 80
Studies Examining Turkish Stock Market Data 82
Methodology 83
Empirical Results 85
Regression Results 86
Sensitivity Tests 94
Conclusions 94
Notes 97
Acknowledgments 98
References 98
Appendix: Review of Developments in the Turkish Market 100
Period after World War I to the 1930s 100
Period 1930s to the late 1970s 100
Late 1970s to the 1980s 101
Disclosures of Codes of Ethics on Corporate Websites: A Pre- and Post-Sarbanes-Oxley Longitudinal Study* 104
Introduction 105
Theory Development 105
Overview 105
Codes of Ethics: US versus Internationally 106
Culture, Litigation and Disclosure 107
Legitimacy Theory 109
Impact of the Sarbanes-Oxley Act on Disclosure 110
Regulation and Disclosure 111
Methodology 113
Sample 113
Data-Gathering Procedures 113
Hypothesis Testing Procedures 115
Analysis 115
Comparing US with International Disclosure 115
Sarbanes-Oxley Act and Disclosure 117
Disclosure by New York Stock Exchange Corporations 119
Conclusions 121
Notes 123
References 123
Estimating Impact of Formula Apportionment on Allocation of Worldwide Income and the Potential for Double Taxation 128
Introduction 129
Background 130
Current U.S. Tax Law 130
Description of Formula Apportionment 131
Apportionment Versus Arm’s-Length 133
Potential to Create or Reduce Taxable Income 134
Methodology 135
Variable Distributions and Calculations 135
Determination of ALI and FAI 136
Results 140
Model One 140
Models Two and Three 143
Discussion 151
References 155
Appendix 157
An Analysis of U.S. and Latin American Financial Accounting Ratios 158
Introduction 158
Previous Research 161
Financial Accounting Ratios 161
Classification of National Accounting Systems 163
Sample Selection and Data Sources 164
Methodology 166
Empirical Results 167
Liquidity Ratios 176
Activity Ratios 177
Profitability Ratios 179
Coverage Ratios 181
Summary and Conclusions 182
Notes 183
Acknowledgments 184
References 184
Appendix: Financial Accounting Ratios 185
Perceptions of Earnings Management: The Effects of National Culture 188
Introduction 189
Background 190
Earnings Management 190
Culture 191
Culture and Perceptions of Earnings Management 193
Hypotheses 194
Methodology 196
Earnings Management Questionnaire 196
Subjects 197
Results and Discussion 199
Comparison of Earnings Management Perceptions and Culture 201
Sensitivity Analyses 204
Conclusion 205
Notes 206
References 207
Appendix 210
The Degree of Internationalization and the Stock Market Valuation of Earnings 214
Introduction 215
Internationalization 217
Market Diversification and Volatility of Cash Flows 217
Foreign Markets and Earnings Growth 218
Economy of Scale, Exposure and Market Learning 219
Operational Flexibility 219
Costs and Benefits 220
Hypotheses Testing 220
Hypothesis Formulation 220
Methodology 221
Measurement of Variables 222
Sample and Data 224
Results 224
Sample Characteristics 224
Impact of the Degree of Internationalization on ERC 226
Summary and Conclusions 230
References 231
Europe and America – Together or Apart: An Empirical Test of Differences in Actual Reported Results 234
Introduction 234
Literature Review and Hypothesis Development 235
Research Questions 239
Methodology 240
Dependent Variable 240
Independent Variables 240
Sample/Data 240
Statistical Methods 243
Results 243
Sample A (Original d’Arcy Sample) 243
Sample B (Expanded European Group) 246
The Effect of Goodwill 249
Combined Data Sets 1999, 2001, and 2003 250
Examining Research Question 2 252
Conclusions, Limitations and Future Studies 252
Notes 253
References 254
Dividend Imputation Systems in Industrialized Countries: An Examination of Relative Tax Burdens 256
Introduction 257
Evolution 258
Literature Review 259
Taxonomy of Dividend Imputation Systems 260
Method for Calculating Effective Tax Rate 262
Dividend Tax Burdens in the OECD Countries 266
Summary, Conclusions, and Avenues for Further Research 269
Notes 270
Acknowledgments 271
References 271