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The Wealth Effects
of Stock Certificate Dematerialization
Dr. John R.
Wingender, Jr., Creighton University, Omaha, NE
Randy Jorgensen,
Creighton University, Omaha, NE
ABSTRACT
We investigate the
wealth effect to firms eliminating paper stock certificates in favor of digital
certificates. The move to e-stock certificates is a part of a general movement
known as dematerialization. The transition to digital certificates has been
optional for several years although it will likely become mandatory in the
United States in the near future. We have two goals in this research. First,
the handling of paper stock certificates and the transition to digital
registrations has not been much discussed in the finance literature. We seek to
fill this void. Second, the motivation for dematerialization is often related
to cost savings to the issuing corporation. If future costs are lower with no
impact on business operations or the financial expenses of the firm, then the
move should result in increased future cash flow. This should be a positive net
present value decision and thus increase firm value. In this study we use
standard event study methodology to test for significant abnormal returns to
investors in companies whose Board of Directors voluntarily decide to go digital
with their stock certificates. We examine the stock returns of 211 firms that
switched from paper to digital certificates and find a statistically significant
positive impact on share price in the ten days prior to the conversion date.
Our results support the hypothesis is that there is a positive impact on firm
value. Dematerialization is the general term used to describe the transition
from a paper-based system to a digital one. For purposes of this study, we
refer to the transition from paper stock certificates to digital registrations
as dematerialization. US corporations have been making this transition for a
number of years but few garnered the publicity that surrounded the move by the
Walt Disney Company, which announced in October 2013 that it would stop issuing
paper stock certificates.
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Persistence,
Resilience, Renewal – A Tale of Three Firms
Dr. David Robinson,
RMIT University, Vietnam
Dr. Arthur Morgan,
RMIT University, Vietnam
Duc Nhat-Hoang, RMIT
University, Vietnam
ABSTRACT
The purpose of this
article is to explore the paradox of how seemingly virtuous coping tools, in
particular persistence, resilience, and renewal can mitigate against effective
and optimal organizational development. It draws on the concept of workplace
pathologies, in particular the mad, bad and sad personality disorders. Three
mini cases are used to illustrate the pitfalls of adherence to coping skills and
provide a backdrop for discussion on ways to avoid the pathological traps.
Business leaders are admonished to create cultures that value persistence and
resilience. They are also advised to periodically strive for organisational
renewal. But what do these terms really mean? And how, amidst the hustle and
bustle of daily crisis management do most firms cope with those imperatives?
This paper explores the theoretical meanings and the practical applications of
each of these terms, suggesting ways to avoid the pathologies associated with
each and ensure their appropriate place in an evolutionary process of continuous
organisational development. Persistence is demonstrated when
entrepreneurs choose to pursue opportunity regardless of enticing alternatives
(Holland and Shepherd, 2013). This trait can be regarded in two ways:
persistence as being staunchly committed to persevere toward a given
opportunity, or persistence as dealing with unforeseeable opposing forces
(Holland & Shepherd, 2013). It has been shown that entrepreneurs and leaders
with a sense of persistency possess a higher possibility of harvesting fruitful
results in comparison to entrepreneurs and leaders who lack experience in or do
not recognize the essential value of persistency (Gompers, Kovner, Lerner, &
Scharfstein, 2010).
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Bottom of the
Pyramid and the Role of the Business Schools
Dr. Satya N.
Prattipati, Kania School of Management, University of Scranton, Scranton, PA
ABSTRACT
It is estimated over
2.5 billion people, accounting for nearly 40 percent of the population, live at
the Bottom of the Pyramid (BoP), widely defined as those living on $2 per day or
less. The International Finance Corporation estimated the collective purchasing
power of the people at the BoP at $5 trillion dollars. There is widespread
recognition that the poverty alleviation programs adopted by many governments,
international aid organizations, and other philanthropic trusts, did not make
any significant dent in global poverty. In recent years many businesses,
multinational corporations, and leading thinkers have come to realize that the
way to reduce poverty on a very large scale is to harness the power of free
enterprise to meet the basic needs of the poor people with quality products at
affordable price. Many organizations have initiated several profit oriented
projects to lift the people out of poverty. Unfortunately, BoP remains a niche
area in the business schools. The strategies used to engage people at the BoP
touch upon all the functional areas (like accounting, finance, marketing, supply
chains) of the business school curricula. However, none of the BoP issues are
included in the core curricula of business schools. The current curricula mainly
focus on the issues related to the top-of-the pyramid. The paper strongly that
the issues and strategies related the poverty alleviation, are very much
relevant to the business students and should be one of the main parts of the
curricula in the business schools as opposed to a niche area. Late Prof C.K.
Prahalad was among the pioneers to focus attention on the business opportunities
at the bottom of the economic pyramid (BoP).
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Current
Developments in Legal Professional Privilege: Perspectives from Australia
Carlo
Soliman, BA, LLM, Senior Lawyer and Lecturer TOP Education Institute, New South
Wales and Victoria University Sydney,
Australia
ABSTRACT
Legal
professional privilege is an important doctrine that preserves the
confidentiality between a person and his/her legal advisor as well as
communications prepared for the dominant purpose of current or anticipated
litigation. In 2007 the Australian Law Reform Commission (ALRC) conducted a
landmark review of the doctrine of legal professional privilege with a view to
determine whether amendments by way of abrogation or statutory enshrinement were
necessary in order for investigative bodies to discharge their duties properly.
The ALRC found that legal professional privilege is an important common law
right and that its retention should be preserved. Whilst 45 recommendations were
made the application of legal professional privilege continues to be
predominantly assessed by the courts rather than by specific statutory
enactment. This paper provides an overview of the doctrine of legal professional
privilege together with some selected cases that detail its ongoing relevance in
the commercial world.
In the spectre of
ever-growing governmental intrusion into the activities of the individual and
corporate citizen,
the retention of
legal professional privilege remains an essential safeguard for the protection
of rights
and the preservation
of a civilised democratic society.
Legal professional privilege is an ancient doctrine that dates back to the
fifteenth century originating in the English common law. (1) Both under statute
and at common law the doctrine protects, from disclosure to third parties,
communications between a person and his/her legal advisor, known as advice
privilege as well as communications prepared for the dominant purpose of current
or anticipated litigation (2) referred to as litigation privilege.
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Conditional
Risk-return Relationship
Dr.
David Morelli, Kent Business School, University of Kent, Canterbury, Kent, UK
ABSTRACT
This paper examines
the risk-return relationship, based upon US data using securities listed on the
New York Stock Exchange, adopting a joint conditionality approach.
Autoregressive conditional heteroscedastic models are applied to model time
varying conditional variances and covariances which are used to estimated beta.
The methodology of Pettengill, Sundaram and Mathur (1995) is adopted to examine
the conditional risk-return relationship. The results from this paper show a
strong positive conditional risk-return relationship when a joint conditionality
approach is adopted. The Capital Asset Pricing Model (CAPM) of Sharpe (1964)
and Lintner (1965) is a single factor model, which assumes that the expected
return on a security has a positive linear relationship with its systematic risk
captured by beta. Despite encouraging early tests of the unconditional CAPM,
such as those performed by Black et al. (1972) and Fama and MacBeth (1973),
there have been many since that have questioned its validity. Such studies
include Fama and French (1992) and Davis (1994) on the US markets, Hung et al.
(2004), Morelli (2007) on the UK market, Lam (2001) on the Hong Kong market, and
Elsas et al. (2003) on the German stock market. Studies, by Wong et al.
(2006), Wang and Di Iorio (2007a, 2007), Morelli (2012) all on the Chinese
stock market failed to find any unconditional relationship between beta and
returns.
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An Investigation of
the Innovation Performance of Ownership Types in China
Nadine Becker,
Jacobs University, Germany
Dr. Angela Munch,
National Oceanic and Atmospheric Administration (NOAA), MA
ABSTRACT
In order to generate a
sustainable growth strategy the Chinese government issued the S&T Development
Plan in 2006 to transform from a production-driven towards an
innovation-oriented economy. In the course of this development plan access to
specific resources like financial, physical, human, organizational and
technological input factors are granted to certain enterprises operating in
China. These firms may be differentiated by ownership types into state-owned (SOE),
collective-owned (COE), private-owned (POE), and foreign-owned enterprises
(FOE), as well as domestic joint ventures (DJV) and foreign joint ventures (FJV).
In this paper a regression analysis based on data from the Chinese National
Bureau of Statistics from 2001-2010 is conducted in order to identify the
differences of innovation performance among the various ownership types. The
newly elected Premier of the People’s Republic of China Li Keqiang has stated at
The Annual Meeting of the New Champions 2013 that “China is implementing an
innovation-driven development strategy at a faster pace, aggressively promoting
technological innovation and integration of science and technology with the
economy” (China Daily, 11.09.2013). The status of China as the “world’s
factory”, which relies heavily on its low cost input factors and on foreign
technology, is perceived by the Chinese government as an unsustainable model to
foster long-term growth.
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Audit Committee Competency and Goal Achievement: Empirical Evidence from
Thai-Listed Firms
Sirikwan Junlasri,
Mahasarakham Business School, Mahasarakham University, Thailand
Dr. Phaprukbaramee Ussahawanitichakit,
Mahasarakham Business School,
Mahasarakham University, Thailand
Dr. Kesinee Muenthaisong, Mahasarakham Business School, Mahasarakham University,
Thailand
ABSTRACT
The Thai-Listed
Firms will require the establishment of the audit committee. This subcommittee
assists the board to practice on issues that may be overlooked and toward the
firm's system of good governance, with the aim of enhancing performance to add
value to the organization and build credibility with stakeholders and to
contribute to the achievement of organizational goals. Thus, the ability of the
audit committee is considered very important to the operations under the
corporate governance which is achieved. Therefore, this research attempts to
integrate the key components of audit committee competency in a new model. The
main purpose of this research is to investigate the effects of audit committee
competency on goal achievement of Thai-Listed Firms. This research uses
stakeholder theory and contingency theory to explain the relationship of the
variables. The Thai-Listed Firms were selected as the sample. The questionnaire
is used as an instrument for data collection and the audit committee chairman is
the key informant. Data were collected from a sample of 128 firms. The
regression analysis is a method for testing the hypotheses. The results showed
that audit committee competency have strong, positive effects on best accounting
practice, internal audit efficiency, business operational transparency and
resource utilization effectiveness. Additionally, best accounting practice and
internal audit efficiency have strong, positive effect on financial reporting
quality. Also, business operational transparency, resource utilization
effectiveness have a strong, positive effect on organizational excellence.
Moreover, financial reporting quality and organizational excellence have a
strong, positive effect on stakeholder credibility and goal achievement.
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The
Relation Between Lessons Learned
and the Development
of Intelligence Culture in an
Organization
Dr.
Rimvydas Skyrius, University of Vilnius, Lithuania
Saulius
Simkonis, University of Vilnius, Lithuania
Svetlana
Nemitko, University of Vilnius, Lithuania
Abstract
The continuing
development of the business intelligence field brings significant innovations in
the technology; at the same time, controversies keep coming up in handling
expectations and delivering value from investments in BI systems. One of the
emerging aspects in the field is the need for the development of BI culture,
acting as a catalyst for creating synergy from often-scattered BI activities in
an organization. The availability of intelligence information and accumulated
experience to all participants of BI process, often hindered by functional and
departmental boundaries, is one of the principal obstacles for creating BI
culture. The goal of this paper is to define the most important types of such
obstacles by using the results of performed research. The importance of
accumulated experience, or lessons learned in BI activities and decision making
is rather obvious; on the other hand, the performed research has discovered
several types of problems in organizing, managing and use of intelligence
information. The authors conclude that radical motivational approaches are
required to support the common use of intelligence information and creation of
intelligence culture in an organization in general. The field of business
intelligence (BI) has experienced dynamic growth over the last two decades. This
period is rather characteristic of significant innovations in BI technology; on
the other hand, huge expectations of insights and benefits driven by BI
innovations have not exactly been justified.
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Brand Loyalty and
Brand Trust: A Case Study on Consumer Preferences
Dr. Saleh Saad
Alqahtani, King Saud University, KSA
Dr. Showkat Hussain
Gani, King Saud University, KSA
ABSTRACT
To craft brand
loyalty it is fairly significant for companies to recognize how consumers decide
among substitute brands and what stimulates them towards a specific brand. The
idea of the current study is to discover the influence of trust of consumer and
their preferences. Encapsulating pertinent methodical writings and scholastic
literature on brand trust, it was originated that there is a necessity to
demeanor research which will be committed to the consumer trust in the
international brands. Till now there is need of research in this domain of trust
in the framework of international brands and this will be research based in the
methodically way which will grate beam in the present field but novel manner of
conduct of instance .While many researches converged on consumer-based
paradigms, only some investigators analyzed the impact of distribution strength
on brand loyalty. On methodical terms we use proposition in order to have
pertinent outcomes from the consumers‟ perception. Nevertheless, in this
research study technique has been implemented, aspects that have an effect in
the international brand trust were measured. The outcomes will have constructive
influence in the discipline of branding, correspondingly in the domain of
international brand trust. In total, 262 questionnaire answers were used from
the city of Riyadh, Saudi Arabia, to pragmatically experiment the consumer trust
for international brands.
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Technology-Based
Audit Competency and Audit Outcome: An Empirical Investigation of
Certified
Public Accountants (CPAs) in Thailand
Wilaiporn Hongkhuntod,
Mahasarakham Business School, Mahasarakham University, Thailand
Dr. Phaprukebaramee Ussahawanitchakit,
Mahasarakham Business School, Mahasarakham University, Thailand
Dr. Sutana Boonlua,
Mahasarakham Business School, Mahasarakham University, Thailand
ABSTRACT
The development of
technology causes changes in business processes which has an effect on the
accounting and audit process. The ability of the auditor to use of technology is
to play a role in the audit. Therefore, technology-based audit competency is
probably the behavior of the auditor that may affect performance auditing
increased. The objective of this research is to empirically investigate the
relationships between technology-based audit competency and audit outcome. In
addition, this research tests the impact of four antecedents (proactive audit
vision, technology knowledge, audit experience, and professional market force)
on technology-based audit competency. The conceptual model is proposed by
drawing on the resource–based view (RBV) of the firm theory and cognitive theory
The Certified Public Accountants (CPAs) in Thailand were selected as the sample.
A questionnaire is used as the instrument for data collection. The data were
collected from a sample of 227 auditors. The results indicate that
technology-based audit competency (such as audit software, computerized audit,
and IT-based audit reporting) has an effect on technology-based audit competency
consequence, Moreover, technology knowledge, proactive audit vision and
professional market force are, act as the antecedents of technology-based audit
competency. This research provides the directions and suggestions for auditors
to identify and justify key components of technology-based audit competency.
Therefore, the auditors who are responsible should be concerned with
technology-based audit competency.
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Analysis of Cultural
Tourists’ Motive and Loyalty to Traveling Destinations; The Case Study of a
Literature Museum
Dr. Cheng-Te Lin,
Department of International Business Administration, Kang Ning University,
Tainan
Dr. Chin-Wei Huang,
Department of Tourism & Hospitality Management, Kainan University, Taoyuan
Yi-Tsun Ho, Graduate School of
Business & Operations Management,
Chang Jung Christian University, Tainan
Dr. Chen-Hsien Lin,
Department of Hotel and M.I.C.E Management, Overseas Chinese University,
Taichung
ABSTRACT
This study focuses
on (a) understanding the characteristics that influence motivation to visit,
experience, and loyalty; (b) discovering relationships among motivation to
visit, experience, and loyalty; and (c) studying the degree of effectiveness
between experience and loyalty. The researchers developed and administered a
survey based on the literature review and divided into four parts: (a)
motivation, (b) experience, (c) loyalty and (d) demographics. The section on
motivation covered four dimensions: knowledge, exhibitions, relaxation, and
interpersonal relationships. While developing the survey, the researchers used
the basic aspects of experience noted in the literature: sensing, feeling,
thinking, acting, and relating. Descriptive analysis, factor analysis, t-test,
and one-way ANOVA were used to analyze the data. Based on the analysis, the
researchers offer three suggestions to the museum and the local government.
First, the museum and local government should sponsor more family activities,
events, and exhibitions to satisfy visitor needs and to stimulate motivation to
visit. Second, the museum personnel must pay attention to and serve the major
target group—students. Third, the atmosphere and service at the museum
influence visitor experiences of feeling and sensing, which connect with
loyalty; therefore, regularly remodeling and staff training become necessities.
Cultural tourism has become a new style of tourism recently. Culture represents
an intangible asset, which could be used to create tourism products and generate
symbolic value for tourist destinations (Hennessey, et al., 2014).
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Management
Accounting Responsibility and Firm Value: Evidence from Exporting Furniture
Businesses in Thailand
Wareewan Charoenroop, Mahasarakham Business School, Mahasarakham University,
Thailand
Dr. Phaprukbaramee Ussahawanitchakit,
Mahasarakham Business School,
Mahasarakham University, Thailand
Dr. Suparak Janjarasjit, Mahasarakham Business School, Mahasarakham University,
Thailand
ABSTRACT
This
study investigates the effects of management accounting responsibility on firm
value via the management accounting consequences, and investigates the impact of
antecedents on management accounting responsibility of exporting furniture
businesses in Thailand. The stewardship theory and contingency theory are used
to explain the relationship of the variables in this study. A questionnaire is
used as the instrument for data collection from accounting executives and
accounting managers of each firm which are the key informants and, regression
analysis is employed to examine all hypotheses of this study. The data are
collected from the sample of 151 exporting furniture businesses in Thailand. The
results indicate that some dimensions of management accounting responsibility
influence information reliability, corporate reputation, stakeholder
credibility, business competitiveness, and firm value. And, it is noteworthy
that two of the dimensions of management accounting responsibility are budgetary
preparation trustworthiness and environmental management accountability
which have significant positive effects on information reliability,
corporate reputation, stakeholder credibility, business competitiveness, and
firm value. The results also show that information reliability, corporate
reputation, stakeholder credibility, and business competitiveness have an effect
on firm value. Furthermore, the antecedents of this study have significant
positive effects on each dimension of management accounting responsibility.
Theoretical and managerial contributions are explicitly provided.
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The Effects of Board
and Shareholders Structure and Earnings Quality on Security Returns of
Listed
Companies in the Stock Exchange of Thailand
Dr. Nantana
Jaengsawang, Rajabhat Thepsatri University, Thailand
Dr. Kanibhatti
Nitirojntanad, Chulalongkorn University, Thailand
ABSTRACT
The purpose of this
study is to analyze the effects of board and shareholders structure and earnings
quality on the security returns of listed companies in the Stock Exchange of
Thailand. The study used secondary data of listed companies in the Stock
Exchange of Thailand in all industrial groups during the year 2007 to 2011
excluding companies in the market for alternative investment, business financial
group, as well as the rehabilitation companies. The data was collected from 339
listed companies which were analyzed using multiple regression analysis. The
results reveal that the board and shareholders structure including percentage of
free float on total shareholders, percentage of directors in board meeting,
percentage of independent directors, and percentage of financial or accounting
expertise of directors in audit committee
have positive
relationship to the security returns. The operating cash flows on total assets
is the earnings quality variable which is found positively related to security
returns. The results of this study suggest that board and shareholders structure
and earnings quality have significant effects on the security returns in the
stock exchange of Thailand. The results indicate that the information
concerning corporate governance disclosed in the stock market and earnings
quality of the financial reports are value relevant and useful for investor
decision making.
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Twenty Ethical
Competencies for Surviving Organizational Politics
Dr. Stewart L.
Tubbs, Professor of Management and the Darrell H. Cooper Endowed Chair in
Leadership Management Department, Eastern Michigan University, MI
ABSTRACT
Have you ever
wondered why things turn out the way they do in your organization? Sometimes a
few people seem to consistently get their own way while others can’t. If so,
then you have experienced organizational politics. One survey from the
Journal of Accountancy, (See below) indicated that organizational politics
was the leading source of job stress. Similarly, research on this topic
indicates that organizational politics costs organizations millions of dollars
in lost productivity every year (Pearson and Porath, 2009; Dillon, 2014)). For
example, Bob Woodward titled his latest best- selling book, The Price of
Politics (2012) to emphasize just this point. This paper offers twenty tips
for surviving organizational politics for those who would like to learn how to
be more successful at the game of organizational politics. Organizational
politics are more complex than they first seem. One view, states that “Political
skill…is the ability to understand social interactions at work and to use this
understanding to influence others to act in ways that enhance one’s personal or
organizational goals.” (Brouer, Douglas, Treadway and Ferris, 2013, p.187).
Another recent source defines political skill as, “An interpersonal style
construct that combines social perceptiveness or astuteness with the capacity to
adjust one’s behavior to different and changing situational demands,“ (Harvey,
Harris, Kacmar, Buckless, and Pescosolodo, 2014).
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Effects of
Professional Citizenship Behavior on Audit Success of Certified
Public
Accountants (CPAs) in Thailand
Thitiworada
Sangsawang, Mahasarakham Business School, Mahasarakham University, Thailand
Dr. Kesinee
Muenthaisong, Mahasarakham Business School, Mahasarakham University, Thailand
Dr. Phaprukbaramee
Ussahawanitchakit, Mahasarakham Business
School,
Mahasarakham
University, Thailand
ABSTRACT
This research is to
examine the effects of professional citizenship behavior (professional
conscientiousness orientation, regulation compliance focus, professional loyalty
concern, and voluntary self-development intention)
on audit ethics awareness, audit practice
efficiency, audit enthusiasm commitment, audit quality, financial information
reliability, audit excellence, and audit success. Likewise, this research tests
the impacts of professionalism concern, audit learning, audit value,
professional acceptance and stakeholder expectation on professional citizenship
behavior. In addition, the 239 auditors in Thailand were selected as the sample
and with data collection by questionnaire. This research results show that
professional conscientiousness orientation, regulation compliance focus,
professional loyalty concern, and voluntary self-development intention
positively influence audit ethics awareness, audit practice efficiency, audit
enthusiasm commitment, audit quality, financial information reliability, audit
excellence and audit success. Also, the findings
reveal that, professionalism concern, audit learning, audit value, professional
acceptance, and stakeholder expectation positively affect professional
citizenship behavior partially.
Both theoretical and managerial contributions are explicitly provided.
Conclusion and suggestions and directions for the future research are
described. Before bankruptcy of Enron in 2001,
ars profitable income in the past 5 years before the
emptiness (Gillan and Martin, 2007; Li, 2010). Catastrophe of Enron led to
number of question from US government and business sector. Who should be
responsibility?
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Audit Professional
Well-Roundedness and Audit Success: An Empirical Investigation of
Certified
Public Accountants in Thailand
Chatratchada
Wiroterat, Mahasarakham Business School,
Mahasarakham University, Thailand
Dr. Kesinee
Muenthaisong, Mahasarakham Business School,
Mahasarakham University, Thailand
Dr. Phaprukbaramee Ussahawanitchakit, Mahasarakham Business School, Mahasarakham
University, Thailand
ABSTRACT
This paper
highlights the examination of the influence of audit professional
well-roundedness and audit success: an empirical investigation of Certified
Public Accountants (CPAs) in Thailand. These are exploring the relations among
audit professional well-roundedness and audit success. Also it examines the
relationships among three antecedents: audit vision, audit experience, and
environmental pressure. Moreover, here among 342 CPAs in Thailand who are the
samples are chosen. The results indicate that audit professional
well-roundedness, namely modern audit practice ability, audit knowledge
diversity, audit skills excellence, audit learning competency, integrative audit
resource implementation, have a positive impact on audit expertise, professional
judgment, audit skepticism, audit quality and audit success. Professional
judgment has positive influence on audit expertise. In addition professional
judgment has positive influence on audit skepticism. Professional judgments,
audit expertise and audit skepticisms have positive influence on audit quality.
Audit quality has positive influence on audit success. Moreover, the findings
also indicate that audit vision, audit experience and environmental pressure
have positive influence on modern audit practice ability, audit knowledge
diversity, audit skills excellence, and integrative audit resource
implementation. Moreover, audit vision and environmental pressure have a
positive influence on audit learning competency. The contribution of this paper
can help to explain the key factor of audit professional well-roundedness and
audit success.
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How to Reduce
Compliance Costs in Transfer Pricing Area for SMEs: Czech Case
Dr. Veronika
Solilova, Mendel University, Brno, Czech Republic
Dr. Danuse Nerudova,
Mendel University, Brno, Czech Republic
ABSTRACT
SMEs are an economic
backbone of the European economy as they generate 28% of GDP in EU28 and employ
at least 60% of persons employed in EU28.
Moreover,
SMEs are involved in global value chains as partners, suppliers and distributors
of large and multinational companies. However, SMEs face many obstacles one of
them is tax system which generates excessive compliance costs, which are
regressive
with regard to firm size. The situation is worse for SMEs which are
internationalized in EU i.e.
having
subsidiaries abroad, where transfer pricing and other international taxation
issues may be in point. Therefore, greater simplicity in transfer pricing
administration and improving the efficiency and effectiveness of transfer
pricing enforcement are considered as essential mainly for SMEs, who are not
able to bear the high administrative burden to comply with the transfer pricing
rules as large enterprises.
The aim of
the paper is to research possibilities how to reduce compliance costs in the
area of transfer pricing issue for SMEs in the Czech Republic. It focuses on
simplification measures, i.e. safe harbour for the determination of transfer
prices between SMEs.
The proposal of safe
harbours includes the arm's length ranges for each NACE sector where SMEs are
acting. In average the arm's length ranges are running between 4 and 40%. Small
and medium-sized enterprises (hereinafter SMEs) are categorized according to the
number of employees and their turnover or balance sheet total. Based on the
commonly-used categorization for SMEs provided by the European Commission (1)
they are categorized on micro, small and medium-sized enterprises.
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The Comparison and
Evolution of International Corporate Governance Models
Dr. Chen-Kuo Lee,
Ling Tung University, Taiwan, R. O. C.
Dr. Li-Ru Chen,
Program of the Management College, Da-Yeh University , Taiwan,
R. O. C.
ABSTRACT
This study begins
with the research of corporate governance models using game theories to analyze
corporate governance models with emphasis on the dynamic game process in order
to implement a dynamic game model, thereby validating the Path Dependence Theory
relevant to corporate governance. Secondly, this study validates the
implementation of corporate governance models in the developing nations under
the developing nations’ unique cultural background, political situations, and
economic backgrounds. Finally, this study validates the developing nations’
corporate governance models different from the four corporate governance models
outlined in the conclusions. The theory of corporate governance, or the
arrangements related to business administration and corporate management, was
presented by American scholars in the late 1960s and gradually became an
important topic as time passed by (Henry, 2010). Corporate governance is becoming
more and more important because, at the time that corporations are playing an
important role in all economies, the general public demands the corporations to
regulate their behaviors. Moreover, “corporate governance” requires a higher
level of surveillance mechanism, check and balance, and interest surveillance
than “corporate administration” and “corporate management”. The higher level of
requirements is therefore necessary for the positive development of
economy(Black, 2001; Black et al., 2005, 2006; Henry, 2008, 2010). Western
scholars began to study corporate governance theory in the 1980s. In Taiwan,
however, scholars did not study corporate governance until 1990s although many
corporate governance-related papers had been released, such as the article
presented by Berle and Means (1932) regarding the division of ownership and
management, the paper publicized by Mace (1971) regarding US corporation board’s
functions with emphasis on the difference between theoretical implications and
legal requirements, and the paper presented by Jensen and Meckling (1976)
regarding agency costs.
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Open Innovation
Platform in a Smart City: Empirical Results
Dr. Jukka Ojasalo,
Professor, Laurea University of Applied Sciences, Espoo, Finland
University of
Helsinki, Adjunct Professor, Finland
Aalto University,
Adjunct Professor, Finland
ABSTRACT
The purpose of
article paper is to develop a framework for open innovation platform between a
Smart City and private sector / third sector. This paper is based on literature
analysis and preliminary results from an ongoing empirical research of open
innovation platforms in smart cities. As a result, it introduces a framework of
open innovation platform between a Smart City and private sector / third sector,
as well as its central characteristics. The framework shows how the city
identifies its problems, brings them to open innovation platform to attract
companies and third sector organizations to develop solutions, and in this way
gets the problems solved with innovative solutions and creates business to the
companies. Open innovation (Chesbrough, 2003a; 2003b) has become an important
research area during the past ten years (Huizingh, 2011). Open innovation means
“a paradigm that assumes that firms can and should use external ideas as well as
internal ideas, and internal and external paths to market, as the firms look to
advance their technology ” (Chesbrough, 2006a, p. 1; in Elmquist et al., 2009,
p. 327). In an open innovation process, development projects can be launched
from internal or external sources and new technology can enter at various
stages. Projects can also go to market in many ways, such as out-licensing or a
spin-off venture (Chesbrough, 2003b). The focus is on the transformation of the
previously solid boundaries of the company to a semi-permeable membrane that
enable innovation to move more easily between the external environment and the
internal R&D processes. The innovation process also includes organizing the
search for new ideas that have commercial potential (Laursen and Salter, 2006).
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IFRS for SMEs: Is
Amendment to IAS 16 – Bearer Plants suitable for SMEs?
Dr. Hana Bohusova,
Mendel University, Brno, Czech Republic
Dr. Patrik Svoboda,
Mendel University, Brno, Czech Republic
ABSTRACT
The paper focuses on
the desirability and possibility of amendment to the IFRS for SMEs as a
consequence of changes in the full IFRS due to the amendment to IAS 16 – Bearer
Plants in the regular three years amendments. The main objective of the paper is
the evaluation of the treatment developed primarily for listed companies from
the perspective of the SMEs agricultural reporting. The paper should contribute
to the debate on suitability of fair value measurement application of SMEs
biological assets. The authors are concerning at the differences between the
substance of bearer biological assets in a form of plants and animals. The main
issue is the possible way of their measurement and accounting for in case of
SMEs. The model cases are used for possible accounting treatment proposal.
Difference in national accounting systems was identified as the main reason of
spending additional costs in companies that prepare financial statements based
on national generally accepted accounting principles in order to raise capital
from different countries. Financial reporting as a result of application of
accounting treatments should become a comprehensible source of information for
users from different countries. The way out of this situation is a global
harmonization of financial reporting. The situation is solved out for large
companies listed on the world stock markets. There are full International
Financial Reporting Standards (IFRS) used for preparation of consolidated or
individual financial statements of large listed companies in many countries
except the US companies which prepare financial statements according to US
Generally Accepted Accounting Principles (GAAP).
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An Approach for
Integrating Accounting and Marketing in a Project for a Graduate Management
Course
Dr. William R.
Smith, Jr., Professor, Pepperdine University, CA
Dr. Fred Petro,
Professor, Pepperdine University, CA
ABSTRACT
The advantages of
student projects that require the integration across two or more academic
disciplines have become more evident in recent years. In the earlier years of
the movement towards integration, it was common to have subjects that shared
similarities involved in these types of assignments. For example, it was common
to assign team projects that involved the integration of finance with accounting
or organizational behavior with consumer behavior. This article focuses on
developing a template for a project that blends the disciplines of accounting
and marketing. The discussion surrounding the imperative for business schools
to teach their students to think in a cross-disciplinary (integrated) fashion
has been ongoing for years. One of the most troubling discussions of some of
the issues surrounding this topic was the work of Bennis and O’Toole (2005). In
this article, the authors bemoan a current state of affairs as they see it in
which today’s business schools tend to have less integration across academic
disciplines and functional areas of business than was the case several decades
ago. Other writers (outside of business schools) who focus on pricing products
have pointed to the, “… ongoing conflict between managers in charge of covering
costs (finance and accounting) and managers in charge of satisfying customers
(marketing and sales). Accounting texts warn against prices that fail to cover
full costs, while marketing texts argue that customer willingness-to-pay must be
the sole driver of prices.
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