Template-Type: ReDIF-Article 1.0 Author-Name: Salem Lotfi Boumediene Title: DETECTION AND PREDICTION OF MANAGERIAL FRAUD IN THE FINANCIAL STATEMENTS OF TUNISIAN BANKS Abstract: This article models the detection and prediction of managerial fraud in the financial statements of Tunisian banks. The methodology used consist of examining a battery of financial ratios used by the Federal Deposit Insurance Corporation (FDIC) as indicators of the financial situation of a bank. We test the predictive power of these ratios using logistic regression. The results show that we can detect managerial fraud in the financial statements of Tunisian banks using performance ratios three years before its occurrence with a classification rate of 71.1%. Classification-JEL: M41, M42, C23, C25, G21 Keywords: Fraud, Ratio, Financial Statements, Bank, Detection, Prevention, Logistic Regression Model Journal: Accounting & Taxation Pages: 1-10 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:1-10 Template-Type: ReDIF-Article 1.0 Author-Name: Guilherme Vitolo Author-Name: Flavio Cipparrone Title: STRATEGIC IMPLICATIONS OF PROJECT PORTFOLIO SELECTION Abstract: This paper evaluates the relationship between corporate strategy and quantitative financial criteria for choosing the optimal set of projects for the Capital Budget. On the basis of the competitive dynamics of the industry and the corporate strategy, different sets of projects should be selected to compose the project portfolio. The choice of the best criteria for project selection is mandatory, even though it is hard to find in both corporate and academic literature recommendation about which criteria should be selected to fit a predefined strategy. In order to evaluate that, this paper analyzed several combinations of risk and return metrics to compare the resultant set of projects and their strategic implications. The results pointed out that while Net Present Value combined with Value at Risk provided the most relevant results in terms of long term value creation, it is important to figure out how different strategies can be best implemented through portfolios selected by other criteria – e.g., fast returns on investment obtained by the Adjusted Payback Period and high profitability based on the Profitability Index or Internal Rate of Return. Such results present a relevant contribution for managers who typically face with the Capital Budget problem. Classification-JEL: G11, G31 Keywords: Capital Budget, Project Portfolio Management, Project Portfolio Strategy, Project Selection, Monte Carlo Simulation, Investment Decision Criteria Journal: Accounting & Taxation Pages: 11-20 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:11-20 Template-Type: ReDIF-Article 1.0 Author-Name: Olayinka Akinlo Author-Name: Mofoluwaso Emmanuel Title: DETERMINANTS OF NON-PERFORMING LOANS IN NIGERIA Abstract: Credit risk assessment is a major component of macro prudential analysis, with the aggregate nonperforming loan ratio serving as a proxy for the economy-wide probability of default of the banking sector’s overall loan exposure. Consequently, the factors that drive non-performing loans become pertinent. This study provides a macroeconomic model for non-performing loans for Nigeria. Our empirical analysis confirms that in the long run, economic growth is negatively related to non-performing loan. On the other hand, unemployment, credit to the private sector and exchange rate exerts positive influence on nonperforming loans in Nigeria. In the short run, credits to the private sector, exchange rate, lending rate and stock market index are the main determinants of non-performing loans. Classification-JEL: G01; G21 Keywords: Determinants, Non-Performing Loans, Error Correction Model, Nigeria Journal: Accounting & Taxation Pages: 21-28 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:21-28 Template-Type: ReDIF-Article 1.0 Author-Name: Rogelio J. Cardona Author-Name: Karen C. Castro-González Author-Name: Carmen B. Ríos-Figueroa Title: THE IMPACT OF CULTURE AND ECONOMIC FACTORS ON THE IMPLEMENTATION OF IFRS Abstract: This paper examines the effects of culture and other economic factors on a country’s decision to implement International Financial Reporting Standards (IFRS). This work extends the previous literature by using a methodology that assigns an implementation score in different countries and its association with Hofstede’s cultural dimensions and economic factors. The results suggest that certain cultural dimensions and economic factors may affect a country’s decision to implement IFRS. Classification-JEL: F23, F60, M41 Keywords: International Financial Reporting Standards, Accounting Standards, Implementation, Convergence or Adoption, Cultural Dimensions; Economic Factors Journal: Accounting & Taxation Pages: 29-47 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:29-47 Template-Type: ReDIF-Article 1.0 Author-Name: Martha Isabel Bojorquez Zapata Author-Name: Antonio Emmanuel Perez Brito Author-Name: Jorge Humberto Basulto Triay Title: FINANCIAL MANAGEMENT IN THE FAMILY AND NON-FAMILY SME´S IN THE TEXTILE INDUSTRY IN MEXICO Abstract: In this paper, we analyze differences in financial management practices between family and non-family Small and Medium Enterprises (SMEs) in the textile industry. We hypothesize that family SMEs use different sources of funding for new investments, tend to have less debt, are more profitable and use less financial and accounting information for decision making than non-family SMEs. We survey 24 textile SMEs located in Yucatan, Mexico. The results show that family SMEs rely more heavily on internal sources are more profitable and use less accounting and financial information for decision making than non-family SMEs. Classification-JEL: G00 Keywords: Family Business, Financial Management, Textile Industry Journal: Accounting & Taxation Pages: 49-57 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:49-57 Template-Type: ReDIF-Article 1.0 Author-Name: Mohamed A. K. Basuony Author-Name: Ehab K. A. Mohamed Title: INTERNET FINANCIAL DISCLOSURE: EVIDENCE FROM SAUDI ARABIA AND OMAN Abstract: The purpose of this paper is to examine the nature and characteristics of voluntary internet disclosures by listed companies in Saudi Arabia and Oman. This paper uses archival data from listed companies on Tadawul Stock Exchange and Muscat Securities Market. Mann-Whitney test is used to examine the differences in disclosure characteristics between the two countries. The results reveal that a number of disclosure characteristics that differ significantly between the two countries. Also, this study finds that practices of internet financial disclosure in Saudi Arabia are much better than those in Oman. The paper provides insights into corporate internet disclosures in the GCC countries that will benefit all stakeholders with an interest in corporate reporting in this important region of the world. Classification-JEL: M40, M41, M49 Keywords: Internet, Financial Reporting, Disclosure, Saudi Arabia, Oman, GCC Journal: Accounting & Taxation Pages: 59-69 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:59-69 Template-Type: ReDIF-Article 1.0 Author-Name: Ezaaz Hasan Author-Name: Sheetal Mala Author-Name: Glen Finau Author-Name: Prena Rani Title: THE 2012 REVIEW OF IFRS FOR SMES: POSSIBLE RESPONSES FROM THE FIJI INSTITUTE OF ACCOUNTANTS Abstract: The International Accounting Standards Board (IASB) issued a paper reviewing the IFRS for SMEs in 2012 and invited public comments on changes the IASB had under consideration. There was no response from the Fiji Institute of Accountants (FIA), Fiji’s professional body and de facto accounting regulator, despite the fact that the Institute had contributed to the debate in 2007, when the initial draft of the Standard was under review. The FIA had applied the standard for reporting periods beginning on or after 1st January 2011.This study will determine the reason behind FIA’s non-response by interviewing two individuals with significant experience and knowledge in accounting regulation and standard setting in Fiji. The paper also investigates the challenges SMEs are facing by surveying audit firms. The findings indicate that SMEs are facing certain drawbacks which should have been conveyed by the FIA to the IASB in the 2012 review. The study provides preliminary evidence to suggest that FIA should make a substantive response in future reviews for IFRS for SMEs (such as the 2013 Exposure Draft).This response would also be useful for other developing countries that are facing similar issues/problems in the application of the IFRS for SMEs. Classification-JEL: M41 Keywords: 2012 Initial Comprehensive Review, Fiji Institute of Accountants (FIA), IFRS for SMEs, 2013 Exposure Draft, Challenges and Benefits Journal: Accounting & Taxation Pages: 71-83 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:71-83 Template-Type: ReDIF-Article 1.0 Author-Name: Dauda Mohammed Title: CAUSALITY TEST OF BUSINESS RISK AND CAPITAL STRUCTURE IN A PANEL DATA OF NIGERIAN LISTED FIRMS Abstract: In economic sense, some events may be subject to spill-over from economy-wide or world-wide shocks. For instance a country’s fiscal policy, such as government spending, taxation, and borrowings, influence both the pattern of economic activity and also the level and growth of aggregate demand, output and employment. Therefore, causal relationship may flow from business risk to financing structure of companies and vice versa. The objective of this study is to show that Granger (1969) Causality test can be conducted on a panel data comprising of time series and cross-sectional data set. This study used a dynamic panel data of publicly listed firms in Nigeria for the period of 2000-2006, to analyse the direction of causality between our measures of leverage and business risk using the causality approach described by Granger (1969). The overall, results indicates that increases in either business risk or total liabilities as a proportion of total assets do not Granger-cause or predict higher future values of both variables over the short-tomedium term. The implication is that an analysis of the relationship between capital structure and business risk in Nigeria could be estimated in a dynamic panel framework Classification-JEL: C30, C33 Keywords: Capital Structure, Business Risk, Granger Causality, Instrumental Variables, Misspecification, Seemingly Unrelated Regression Equations, Three Stage Least Squares Journal: Accounting & Taxation Pages: 85-99 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:85-99 Template-Type: ReDIF-Article 1.0 Author-Name: Yuedong Li Author-Name: Dong Zhang Author-Name: Xingyu Wang Title: THE INFLUENCE OF CORPORATION GOVERNANCE STRUCTURE ON INTERNAL CONTROL AUDIT REPORT LAG: EVIDENCE FROM CHINA Abstract: This paper examines whether corporation governance structure has influence on internal audit report lag (IARL). The study studies a sample of 1244 observations from Year 2008 to Year 2011, obtained from Shenzhen Stock Exchange in China. Regression analysis indicates that firms, with fewer directors but more supervisors and members in audit committees as well as less frequent supervisory board meeting, are more likely to reduce IARL. In contrast, this study also demonstrates factors such as the independence of board of supervisors and board of directors, the meeting frequency of board of directors and duality of CEO, hardly exert influence on the IARL. The contribution of this paper is mainly to empirically analyze the influence of corporation governance structure on IARL to improve the timeliness of internal control information disclosure. Classification-JEL: M42 Keywords: Internal Control Audit Report Lag (IARL), Corporation Governance Structure, Influence Journal: Accounting & Taxation Pages: 101-15 Volume: 6 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:101-115