Template-Type: ReDIF-Article 1.0 Author-Name: Akinloye Akindayomi Author-Name: Gideon T. Akinleye Author-Name: Adeduro A. Ogunmakin Title: EMPIRICAL EVIDENCE ON THE RELATIONSHIP BETWEEN AUDIT PROBABILITY AND INTERNAL REVENUE SERVICE BUDGET LEVELS Abstract: Despite a large literature on tax avoidance strategies by individuals and the IRS ability to curb them, how the agency’s audit/examination activities respond to tax expenditures within the individual taxation context is not well understood. We hypothesize that IRS audit probability of individual tax returns will positively respond to the magnitude of different tax expenditure drivers if the agency has a shot at curtailing them. We find that while the probability of IRS audit increases as the agency’s budget on enforcement activities increases, tax expenditures do not appear to prompt IRS enforcement activities in many of the tax expenditures drivers. Classification-JEL: H24, M40, M41 Keywords: Tax Expenditures, Tax Avoidance, IRS Audit, Individual Income Taxation Journal: Accounting & Taxation Pages: 1-21 Volume: 10 Issue: 1 Year: 2018 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v10n1-2018/AT-V10N1-2018-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:1-21 Template-Type: ReDIF-Article 1.0 Author-Name: Irene Y. Kim Title: PREDICTIVE ABILITY OF DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE COVERAGE FOR CLASS ACTION LAWSUIT SETTLEMENTS Abstract: The primary conclusion from prior literature is that firm size, as a measure of firm resources and capacity to pay, is a key predictor of class action securities settlement amount, and the merits of the case are less important in settlement negotiations. The purpose of this study is to shed additional light on the settlement determination process: given defendant incentives to avoid paying out of pocket and plaintiff incentives to settle quickly with maximum settlement, does directors’ and officers’ (D&O) insurance coverage limit explain variation in settlement amounts? I find that D&O coverage limit has predictive ability for settlement size, even when controlling for firm size. I also find that the association depends on the level of coverage; high D&O coverage has stronger explanatory power for settlements than low coverage, presumably due to the marginal benefits of plaintiff attorney effort at high levels of coverage to yield the big payoff. In sum, this paper contributes to the existing literature on predicting class action securities lawsuit settlements, which even though D&O coverage levels are unobservable to investors, impacts decision-making important to shareholders Classification-JEL: K4, M4 Keywords: Accounting, Securities Litigation Journal: Accounting & Taxation Pages: 23-38 Volume: 10 Issue: 1 Year: 2018 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v10n1-2018/AT-V10N1-2018-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:23-38 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Huu Anh Author-Name: Nguyen Ha Linh Author-Name: Sung Wook Yoon Title: EARNINGS MANIPULATION BENCHMARK FOR NONFINANCIAL LISTED COMPANIES IN VIETNAMESE STOCK MARKET Abstract: The paper examines earnings management detection using the Beneish M-score benchmark model on a sample of 468 non-financial Vietnamese companies listed on the Hochiminh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) during 2013-2014. The results show that 40 % of non-financial Vietnamese- listed companies were involved in earnings management, and the sampled observations do fit the Beneish M-score model. This study suggests that the M-score model is a useful technique to use to detect the earnings manipulation behaviors of companies in Vietnam. The M-score model is also a reliable tool for investors to make when making decisions and verifying the reliability of accounting information found in financial reports. Classification-JEL: M41, G32 Keywords: Earnings Management, Detecting, M-Score Model, Non-Financial Vietnamese Listed Companies Journal: Accounting & Taxation Pages: 39-49 Volume: 10 Issue: 1 Year: 2018 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v10n1-2018/AT-V10N1-2018-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:39-49 Template-Type: ReDIF-Article 1.0 Author-Name: Amy Bieber Author-Name: Salem Boumediene Author-Name: Scott Butterfield Title: BIG OIL IN A SMALL TOWN: THE EFFECTS OF A LARGE ECONOMIC EVENT ON SMALL BUSINESS SALES Abstract: observe a relationship, data from the business’s sales was gathered along with historical oil prices and oil production in the region. Through the use of two-tailed statistical testing comparing sales to oil price and again to oil production, the differences between two means with dependent samples were observed. Both tests found that the oil production and price were indeed driving factors that affected the sales of the small business causing the sales trends to follow the same patterns as those found in the oil production and price amounts. These same tests can be applied to other businesses in the region to determine whether or not oil had a large effect on their sales figures as well Classification-JEL: M41, C12, C3, Q31 Keywords: Sales Revenue, Oil Price, Oil Production, Bakken Oil Boom, Statistical Testing, Regression Analysis Journal: Accounting & Taxation Pages: 51-60 Volume: 10 Issue: 1 Year: 2018 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v10n1-2018/AT-V10N1-2018-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:51-60 Template-Type: ReDIF-Article 1.0 Author-Name: Sammy Lio Title: HUMAN CAPITAL ACCOUNTING TOOL USAGE: EVIDENCE FROM A SURVEY OF KENYAN FIRMS Abstract: Classification-JEL: M41 Keywords: Accounting, Human Capital, Medium and Large Organizations, Applicability, Accessibility for Efficacy Journal: Accounting & Taxation Pages: 61-76 Volume: 10 Issue: 1 Year: 2018 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v10n1-2018/AT-V10N1-2018-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:61-76 Template-Type: ReDIF-Article 1.0 Author-Name: Hafiz Imtiaz Ahmad Author-Name: Khaled Aljifri Title: THE ROLE OF COMPANY SPECIFIC INFORMATION IN VALUATION MODELS USED IN THE UAE Abstract: The role of company specific information in valuation is important. In this paper, we explore company specific information as considered by the UAE’s financial analysts. A questionnaire and interviews were used to answer the research questions of this study. Thirty-five investment analysts, in cooperation with the CFA Society, Emirates, participated in the questionnaire. The sample covered most of the analysts who have professional qualifications such as CFA and CAIA (coupled with an academic degree such as the MBA) and an average of more than eight years of experience in the relevant sectors. Descriptive and comparative analysis was employed in this study. The results reveal that, , in analyzing a listed stock,the financial analysts and fund managers in the UAE give more weight to the assessment of management and performance sustainability and less to historical performance and reviews of research and development. Classification-JEL: M41, M49 Keywords: Financial Analysts; Valuation Models; Company Specific Information; UAE Journal: Accounting & Taxation Pages: 77-86 Volume: 10 Issue: 1 Year: 2018 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v10n1-2018/AT-V10N1-2018-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:77-86 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Acheampong Author-Name: Tanya Benford Author-Name: Ara Volkan, Title: MODELLING UTILITY FINANCIAL VIABILITY USING LOGISTIC REGRESSION: EVIDENCE FROM FLORIDA Abstract: Ratemaking is the mechanism that various state commissions use to establish utility rates for investorowned utilities. Using logistic regression, this study explains the need for a flexible model to determine the financial viability of such utilities. The study uses 47 Florida investor-owned water and wastewater utilities to assess financial viability from 2002 to 2013. The financial viability results obtained using the National Regulatory Research Institute (NRRI) model are compared to the results of a more rigorous logistics regression model developed in this study. First, the results show that the financial ratios currently used by the NRRI to determine the viability of utilities do not need to be all-inclusive. Second, using data from 2002 to 2013, the logistic regression model categorized the viability of these utilities into groupings different from those of the NRRI model. Third, the study shows that ratemaking is not a uniform process across all states and supports discontinuing usage of the NRRI standard viability model in favor of the logistic regression model that incorporates the same financial ratios used by the NRRI Classification-JEL: C02, C18, C30, G33, L32, L95 Keywords: Water Utilities, Financial Viability, Logistic Regression, Financial Ratios Journal: Accounting & Taxation Pages: 87-96 Volume: 10 Issue: 1 Year: 2018 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v10n1-2018/AT-V10N1-2018-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:87-96