The Relevance of XBRL Voluntary Disclosure for Stock Market Valuation: The Role of Corporate Governance

The aim of this paper is to investigate the relevance for stock market pricing of accounting earnings of voluntary disclosures in XBRL files considering the quality of corporate governance. Results are the following. It appears that XBRL extensions attract financial analysts. Good governance is positively associated with voluntary XBRL extensions. We observe that XBRL extensions enhance the positive relationship between accounting earnings and stock price. However, this positive association is reduced for firms with good governance, suggesting a substitution effect between XBRL extensions and corporate governance. Finally, it appears that XBRL extensions would strategically be related to earnings quality. This research highlights the importance to consider governance when assessing the value relevance of XBRL disclosures for stock market pricing.     

Diffusion of Management Accounting Practices in Gulf Cooperation Council Countries*

This study examines how management accounting practices (MAPs) have been adopted and diffused by publicly listed firms in the Gulf Cooperation Council (GCC) countries. The results of our survey show that the adoption rates for MAPs in the area of cost management and strategy are low while those in the area of performance measurement are moderate. Overall, the respondents favorably perceived their success in implementing MAPs. Power and politics, not economic (or cost–benefit) reasons, were considered to be the most influential reasons for nonadoption of MAPs. The results provide partial support to the view that there is a global convergence of management accounting system designs and ideas and also indicate that the role of cultural differences is diminishing over time.     

Is Polaris a HOG? A Case Study*

The main usefulness of a general purpose financial statement centers on its comparability to the financials produced by an entity's competition. This case works for both undergraduate and graduate students because it offers comparisons between two well known recreation industry companies. Financial statement analysis is a lesson which serves as an appropriate capstone to financial accounting education. Analyzing the financial statements of competing entities explains “why” accountants must implement the intricate “how” which produces the statements and the resulting decision models such as ratios and common‐sized statements. Compared to previous generations, current students will be more responsible for managing their own retirement funds. This case can help students start to appreciate investment analysis by providing enough detail for any level student to conduct financial statement evaluations that make comparisons to find successful fundamental business strategies.     

Revising Audit Plans to Address Fraud Risk: A Case of “Do as I Advise,Not as I Do”?*

Prior research documents that auditors fail to revise audit plans to effectively address identified fraud cues. While auditors may understand what evidence would address such cues, we propose that auditors fail to apply this understanding because they use implemental mindsets when making decisions for themselves (i.e., deciding). However, we also propose that auditors use deliberative mindsets when advising. To test our predictions, we assign auditors to a decider or an advisor role in a realistic case that contains seeded fraud cues and asks them to consider revising last year's plan. We also manipulate whether the case prompts auditors to revise the plan unconventionally. Results indicate decider-condition auditors use implemental mindsets: Prompted deciders follow the unconventional plan without regard to underlying fraud risk and unprompted deciders stick with the same-as-last-year plan. Advisor-condition auditors use more deliberative mindsets: In the prompt and no prompt conditions, they identify plans that are strongly linked to their own fraud risk assessments and that better align with experts' recommended plan for effectively addressing the seeded fraud cues. Supplemental analyses suggest deciding and advising auditors both follow the experts' plan when they believe in its potential effectiveness but, after controlling for the influence of perceived effectiveness, deciding auditors follow it to a greater extent simply because they believe the PCAOB wants it. By contrast, advising auditors do not exhibit signs of excessive PCAOB influence. Our findings provide evidence that seeking informal advice (or thinking like an advisor) helps auditors to effectively revise audit plans in response to identified fraud risk—it helps when a prompt is present or not, suggesting it complements rather than merely substitutes for interventions meant to improve auditors' judgment and decision making.     

美国金融危机对中国高校金融人才培养的启示

美国金融危机的发生对世界经济产生重大影响。其深层原因是金融系统与实体经济系统、社会系统共同作用的结果，具体说是美国金融机构的自利性、复利制度和主观评价方法脱离经济和社会的实际从而导致金融危机。中国高校金融人才培养应当接受美国金融危机的教训，调整金融教学内容，加强职业道德教育，重视职业迁移能力培养，形成自己特色金融培养人才模式。     

Thunder Bay Transportation: A Case of Business Valuation and Negotiation*

Thunder Bay Transportation (TBT) is a very versatile case that can be used in several milieus and at various levels of difficulty. The case describes the process involved in the purchase and sale of a private business. Mr. Getzko, owner/manager of TBT, is attempting to sell his business to pursue retirement. Sudbury Systems (SS) is pursuing an acquisition of TBT. Students are required to assume the role of either Mr. Getzko’s accountants (seller) or Sudbury Systems’ accountants (buyer) to: (1) develop a preliminary business value, (2) negotiate adjustments, and (3) arrive at an agreed‐upon business value to finalize the sale. Students will explore both business valuation approaches (earnings based and asset based) and various business valuation concepts (e.g., normalized earnings, sustaining capital reinvestment, earnings multiple, redundant assets, etc.).     

The Impact of IFRS Adoption on an Agribusiness Company's Financial Statements

This fictional case is based on a Canadian public company that produces greenhouse vegetables. Focusing on the differences between International Financial Reporting Standards (IFRS) and Canadian Accounting Standards for Private Enterprises (ASPE), this case provides students an opportunity to (1) apply IFRS in a real world setting; (2) prepare and reconcile financial statements under ASPE and IFRS; (3) analyze the impact of IFRS adoption on key financial ratios; and (4) detect and explain differences in financial statements under ASPE and IFRS through common size analysis.     

The impact of war: New business networks and small-scale contractors in Britain, 1739–1770

Abstract

This article argues that the resources and skills of military contractors were a crucial component of the war-making capacity of the British state in the mid-eighteenth century. Contractors used product knowledge, access to capital and credit, market intelligence, and personal and professional connections to perform contracts effectively, and by doing so contributed towards operational capability and combat readiness. Contracting not only reveals the diversity of the domestic economy but also the degree of connectivity between different sectors. Problems of scale, cost, and risk were overcome by harnessing and channelling broad expertise across different sectors. If modern states were highly innovative in fiscal-military terms, contractors were no less so in managing extensive supply operations.