Accounting conservatism, cost of capital, and fraudulent financial reporting

... ACCOUNTING CONSERVATISM, COST OF CAPITAL, AND FRAUDULENT FINANCIAL REPORTING A dissertation submitted to the Kent State University Graduate School of ... reserves, creative acquisition accounting, excessive charges and write-offs, and abandoning of unprofitable operations) could produce some of the evidence on conservati...

Ngày tải lên: 03/06/2014, 00:49

... period. The third set of hypotheses covers the cost of capital issues and states that cost of debt for clients of Second- Tier audit firms is higher than cost of debt for clients of Big-audit firms. ... post- SOX. To test the relationship between cost of capital and auditor size, the cost of capital measures, separated into cost of debt and cost of e...

Ngày tải lên: 03/06/2014, 02:15

... incompleteness of insurance markets and the limited access to equity capital, we introduce the notion of cost of capital. We analyse the impact of the cost of capital on the valuation of life insurance ... the term of " ;cost of capital". And we consider the cost of capital to be entirely explained by the risk aversion of the policyholder who can not...

Ngày tải lên: 13/04/2013, 13:04

... price and on the cost of capital of reducing the assessment of firm- variance. The firm-specific variance reduction effect is an important factor in the cost of capital analysis of Easley and ... whether and how firms’ accounting information manifests in their cost of capital, despite the forces of diversification. This paper examines both of these question...

Ngày tải lên: 06/03/2014, 21:20

... deterioration of the insurance capacity of L&H. Within the context of cost of capital, KR document a significant negative relation between engaging a B ig4 auditor and the cost of capital of the ... further test the impact of audit tenure and auditor opinion on cost of capital and find that cost of capital is inversely proportional to auditor tenure, and...

Ngày tải lên: 01/06/2014, 14:04

... Goals: • Understand the cost of capital and the specific sources of capital associated with the cost of capital. • Determine the cost of debt and preference share capital. • Calculate cost of ordinary ... practice due to its ease of calculation, availability of data and ease of adjustment for flotation costs when calculating the cost of new ordinary share...

Ngày tải lên: 16/12/2013, 14:57

... incidence of fraudulent financial reporting • Improve auditing standards, the standard-setting process, and the system for ensuring audit quality, to detect fraudulent financial reporting earlier and ... of the consequences of fraudulent financial reporting, (2) the risk of its occurring in any given company, and (3) the realistic potential for reducing that ris...

Ngày tải lên: 06/03/2014, 19:20

... cost of equity and the cost of debt, where the cost of debt is adjusted by the coefficient (1 - ) and the weights are the market value of equity and market value of debt, as percentages of the ... perpetuity List of symbols Ku The cost of the unlevered equity Kd The cost of debt (assumed constant) D Market value of debt Ke n Levered cost of eq...

Ngày tải lên: 07/03/2014, 00:20

... Memorandum of Understanding between HM Treasury, the Bank of England and the Financial Services Authority 1. This memorandum of understanding establishes a framework ... ‘Treasury’), the Bank of England (the ‘Bank’) and the Financial Services Authority (the FSA) in the field of financial stability. It sets out the role of each authority, and explains how they ... im...

Ngày tải lên: 22/03/2014, 21:20

... that A. The cost of capital of a firm is the weighted average cost of its various financing components. B. The calculation of the cost of capital should focus on the historical costs of alternative ... discount. a. I and IV. b. I and V. c. II and IV. d. II and V. 16. Companies experience changes in interest expenses, variable cost per unit, quantity of units...

Ngày tải lên: 25/03/2014, 12:32