Template-Type: ReDIF-Article 1.0
Author-Name: John Shon
Title:  Voluntary Disclosures and Earnings Surprises:  The Case of High-Tech Firms in Periods of Bad Economic News
Abstract: In this study, I examine the voluntary disclosure behavior of high-tech firms experiencing bad economic
news. I create a sample of 100 randomly-selected firm-quarters with negative returns—but not
necessarily negative earnings surprises. I find that: (i) the unconditional relation between earnings
surprises and voluntary disclosures is non-existent in this setting where negative stock returns are
controlled for, but (ii) firms with negative earnings surprises make forward-looking statements with more
negative information content—but only when conditioned on firm size or growth opportunities. Sample
selection procedures can therefore affect inferences drawn from voluntary disclosure behavior
documented in extant studies. Conditional analysis reveals how the earnings-disclosure relation crosssectionally
varies with firms’ economic characteristics.
Classification-JEL: M40, D82
Keywords: Voluntary disclosures, earnings surprise, bad economic news, litigation risk
Journal: Accounting & Taxation
Pages: 1-13
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-1.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:1-13

Template-Type: ReDIF-Article 1.0
Author-Name: Eddy Junarsin
Author-Name: Bayu Pranoto
Title:  Information Content and Intra-Industry Effect of Stock Splits:  Evidence from Indonesia
Abstract: This study examines the information content of stock split announcements. It is hypothesized that there
are abnormal returns around the stock split announcement dates. Negative AARs are found before and
after the announcement. The negative reaction after the stock split announcement suggests that a stock
split may be deemed bad news. This finding does not support the signaling hypothesis which suggests
that stocks splits function as management’s signals of good future prospect. When splitting the data by the
growth level of the firm, we find that the stock prices growing firms and non growing firms react
differently to a stock split announcement. An intra-industry examination shows negative AAR
substantiating the contagion effect that the price of non-splitting firms in the same industry also react to
the split announcement. This implies that a stock split is not a firm-specific event, but it also influences
the industry.
Classification-JEL: G14, G15
Keywords: stock split, intra-industry effect, liquidity and signaling hypothesis, contagion effect.
Journal: Accounting & Taxation
Pages: 15-27
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-2.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:15-27

Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Galloppo
Title:  Dynamic Asset Allocation Using a Combined Criteria Decision System
Abstract: In this paper we examine the predictability of asset returns by developing an approach that combines
quantitative methods of forecasting, based on technical analysis. As an innovation we introduce a
multiple criteria decision system making simultaneous use of trend indicators and other confirming
indicators. By combining trend indicators with confirming indicators it is possible to build a superior
technical trading strategy that captures a more comprehensive aspect of predictability in past prices. This
study also proposes a test for weak form efficiency based on a combining approach. Previous
approaches typically make inferences based on the empirical results of testing only one class of technical
rules. Applying the combining criteria decision system the evidence suggests that the strategies proposed
here have predictive ability on a data sample based on three European stocks Index Markets. Our results
rejects the null hypothesis that the returns earned from applying trading rules are equal to those achieved
from a naive buy and hold strategy, even after deducting transaction costs. Evidence also suggests that
oscillators capture some aspect of predictability in past prices that moving averages do not detect.
Classification-JEL: G12, G14
Keywords: Technical Analysis, Market Timing, Efficient Market Hypothesis
Journal: Accounting & Taxation
Pages: 29-44
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-3.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:29-44

Template-Type: ReDIF-Article 1.0
Author-Name: Naser Abdelkarim
Author-Name: Yasser A. Shahin
Author-Name: Bayan M. Arquawi
Title: Investor Perception of Information Disclosed in Financial Reports of Palestine Securities Exchange Listed Companies
Abstract: The primary objective of this study is to investigate the perception of users regarding the availability,
adequacy, and usefulness of information disclosed in the financial reports of companies listed on the
Palestine Securities Exchange (PSE). A survey methodology was utilized involving a selected sample of
information users, i.e., individual and institutional investors, analysts, academics, and intermediaries.
Results of the study demonstrated that users perceive reported information as neither adequate nor
relevant to investment decisions. In particular, reported information was insufficient, as listed companies
did not comply with the minimum disclosure requirements of international standards. This unfavorable
perception, along with poor credibility and bad timeliness of the disclosures, has prevented information
from being impounded into stock prices. The study presented a number of recommendations that may be
helpful in improving the efficiency of the PSE, which in turn will contribute to the Palestinian economy as
a whole.
Classification-JEL: G11, G14, G15
Keywords: Information Disclosure, Market Efficiency, Financial Statements, Information Usefulness
Journal: Accounting & Taxation
Pages: 45-61
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-4.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:45-61

Template-Type: ReDIF-Article 1.0
Author-Name: Nirosh Karuppu
Title:  Evidence on Auditors Use of Business Continuity Models as an Analytical Procedure
Abstract:  Auditors expressing unqualified audit opinions and asserting going concern for companies that
subsequently fail is regarded as audit failure and results in considerable disapproval of the auditing
profession. Prior research has suggested that corporate failure models, as an analytical procedure,
improve the accuracy of auditors’ assessments of going concern. This study utilizes a survey to examine
the practical efficacy of such models within the audit decision framework. It is found that corporate
failure models facilitate the formation of more appropriate going concern opinions and increase
judgment consensus. 
Classification-JEL: M41, M42
Keywords: Going concern opinions, audit judgment, corporate failure models
Journal: Accounting & Taxation
Pages: 63-74
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-5.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:63-74

Template-Type: ReDIF-Article 1.0
Author-Name: Tao Zeng
Title:  Stock Price Reactions to the Canadian Lifetime Capital Gains Exemption
Abstract: This study examines abnormal stock return around the announcement of the Lifetime Capital Gains
Exemption (LCGE) in the Canadian federal tax system. The revised code, adopted May 23, 1985 provided
individual taxpayers with a cumulative tax exemption for capital gains, up to a lifetime limit of $500,000.
The empirical result, using TSX daily stock return data, indicate that around the announcement, especially
before the announcement, abnormal stock returns are negatively associated with the interaction of dividend
yields and individual shareholdings. This finding suggests that the stock market anticipated the capital
gains tax change. The level of individual shareholding, which proxies for whether the marginal
shareholders are individual shareholders are taken into account because the LCGE was only applied to
individual shareholders.
Classification-JEL: M41
Keywords: lifetime capital gains exemption, abnormal return, individual shareholding
Journal: Accounting & Taxation
Pages: 75-85
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-6.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:75-85

Template-Type: ReDIF-Article 1.0
Author-Name: Luciana Spica Almilia
Title:  Determining Factors of Internet Financial Reporting in Indonesia
Abstract: Internet Financial Reporting (IFR) is voluntary in nature. With no specific regulations for IFR, there is a
disparity of IFR practices among companies. Some companies disclose only partial financial statements
using a low level of technology, while others disclose full sets of financial reports using sophisticated web
technologies. The purpose of this study is to measure the quality of Internet Financial Reporting of
public firms on the Jakarta Stock Exchange. An index was developed to measure overall internet
reporting. In addition, financial variables that affect Internet Financial Reporting (IFR) among
Indonesia Stock Exchange companies are identified. The findings show that the nature of IFR disclosure
varies considerably across the sample firms. Firm size and return on equity are identified as determining
factors of internet financial reporting in Indonesia.
Classification-JEL: G30, G33, M41
Keywords: internet financial reporting, website, traditional financial reporting, technology
Journal: Accounting & Taxation
Pages: 87-99
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-7.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:87-99

Template-Type: ReDIF-Article 1.0
Author-Name: Aminah Nalikka
Title:  Impact of Gender Diversity on Voluntary Disclosure in Annual Reports
Abstract: This study examines the impact of the firm director’s gender on corporate voluntary disclosures in
company annual reports. The study uses data for the fiscal years 2005-2007 of companies listed on the
Helsinki Stock Exchange during the year 2008 and particularly focuses on the gender of Chief Executive
Officers, Chief Financial Officers and board of directors. The results indicate that firms with female
Chief Financial Officers are associated with higher voluntary disclosures in annual reports. The findings
also reveal that female Chief Executive Officers and proportion of female board members have no
significant impact on voluntary disclosure in company annual reports.
Classification-JEL: G14, G34, J1
Keywords: gender, diversity, disclosure, annual reports
Journal: Accounting & Taxation
Pages: 101-113
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-8.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:101-113

Template-Type: ReDIF-Article 1.0
Author-Name:  Mao-Chang Wang
Title:  The Effects of Firm Market Value on Audit Partner Tenure and Firm Profitability
Abstract: This study investigates the effects audit partner tenure and firm profitability on the market value of the
firm. This study extends Ohlson’s model by examining audit partner tenure, and the interaction between
residual earnings per share and audit partner tenure on firm value. This issue is particularly important in
light of regulations requiring audit partner rotation in the United States, Taiwan and other countries. The
model is tested using large internationally listed companies in Taiwan. The findings on average do not
support audit partner rotation in Taiwan.
Classification-JEL: G1, M4
Keywords: Firm’s valuation, audit partner tenure, profitability, corporate governance
Journal: Accounting & Taxation
Pages: 115-120
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-9.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:115-120

Template-Type: ReDIF-Article 1.0
Author-Name: Terrance Jalbert
Author-Name: Mercedes Jalbert
Author-Name: Karla Hayashi
Title:  State Rankings of Cost of Living Adjusted Faculty Compensation
Abstract: In this paper we rank states based on higher education faculty compensation. Data on 574 universities
across each of the 50 states and the District of Columbia are aggregated to develop a state compensation
average. The analysis examines states both on a raw basis and on a cost of living adjusted basis.
Rankings are reported for various academic classifications of faculty. Rankings based on salary data
alone and salary and benefit combined data are presented. The results indicate that rankings of states
based on raw and cost of living adjusted data are markedly different. The results suggest that faculty
seeking employment opportunities should carefully consider cost of living issues. Administrators should
design salary packages that reflect the local cost of living conditions in their area to attract quality
faculty.
Classification-JEL: J31, J44
Keywords: cost of living, ranking, faculty compensation, higher education salaries
Journal: Accounting & Taxation
Pages: 121-137
Volume: 1
Issue: 1
Year: 2009
File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-10.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:121-137