Huldah A. Ryan scite author profile

1997

Access to this document was granted through an Emerald subscription provided by emeraldsrm: 463575 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractMuch attention has recently been directed toward the relationship between the performance of firms and compensation received by their respective CEOs. We assess this relationship for commercial banks, as regulatory and other industryspecific conditions can cause the performance-compensation linkage in the banking industry to differ from that of industrial firms. We find that the accumulated human capital of CEOs and the bank size are positively related to the total compensation (including salary, bonus, and stock options) levels of bank CEOs. We also find a positive significant relationship between bank accounting performance proxies and CEO compensation level for all time horizons. Finally, we find a positive significant relationship between market-based performance proxy and bank compensation.

An Empirical Analysis of Qualitative Management Earnings Forecasts

Mensah¹,

Nguyen

Ryan³

1996

Business Fin & Account

INTRODUCTIONManagements often disclose their expectations about future earnings performance without projecting explicit earnings or earnings per share numbers. Such disclosures typically use phrases such as 'expect earnings per share to be well above last year's net,' 'expect an earnings record for this year,' 'expect earnings to be about the same as last year's,' and 'expect earnings to be substantially down from last year's levels' to communicate their predictions about future earnings. These qualitative management projections have not been researched as a significant management earnings forecast disclosure practice. However, since a large number ofcompanies deliberately choose this form of forecast disclosure in place of more specific projections, qualitative forecasts and the companies issuing them are relevant to the study of the range of voluntary forecast disclosure practices used by corporate managements.Prior research on management earnings forecasts documents significant price reactions to the disclosure of quantitative management earnings forecasts (Patell, 1976;Ajinkya and Gift, 1984;and Waymire, 1984). T h e price effects of these quantitative management earnings forecasts have also been shown to be related to forecast precision (Baginski, Conrad and Hassell, 1993). The purpose of this article is to investigate the effects of qualitative management earnings forecasts. These forecasts are completely distinct from those previously investigated in that they do not include point, range, minimum, and maximum quantitative estimates (as, for example, in Pownall, Wasley and Waymore, 1993). We provide evidence on the predictive value of these qualitative management earnings forecasts, and their effects on financial analystss expectations and stock prices.1 -1246 MENSAH, NGUYEN AND RYANThis study investigates a sample of 183 qualitative management earnings forecast disclosure statements issued between 1979 and 1985 and available from the Dow Jones NewsIRetrieval database. Each forecast disclosure statement was classified on a five-point scale, (-2, -1, 0, +1, +2) according to the interpretation accorded the statement with regard to the sign and relative magnitude of the change in earnings per share expected by management in the forecast year. The interpretation of each statement was determined subjectively by the authors and subsequently validated by the results of a survey.Dummy variable regression models were used to examine the associations between actual percentage changes in annual earnings per share and the predictions of the qualitative management earnings forecasts as interpreted on our five-point scale. Our results show some correspondence between the subjective classifications of the forecasts used in the study and the annual percentage changes in earnings per share realized by sample firms. We also show evidence of an association between these management forecasts and the direction of analysts' forecast revisions following their disclosure. These relationships are, however, shown to be stronger for ...

Strategic Alliances In The Food And Beverage Industry

Cante

Calluzzo

2011

JBER

Strategic Alliances are an important component of an effective Total Quality Management program (TQM) and of business growth.  The Food and Beverage industry was studied as part of a long-term longitudinal research program, covering diverse industries, to determine the extent of penetration and effectiveness of strategic alliances and TQM. The results indicated that 62% of respondents participate in strategic alliances and 82% practice TQM. Over 74% of firms that did participate reported achieving or exceeded alliance goals and, significantly, 73% experienced increased business revenue. Approximately 11.84% of participants reported that costs exceeded expectations while 15.13% enjoyed lower costs. Some methods to enhance strategic alliance effectiveness are discussed. Total Quality Management (TQM) is a philosophy that includes the idea that to achieve the highest level of quality one must extend the quality system and program as far back in the Supply Chain as possible, i.e., to the supplier(s), the supplier’s supplier and beyond if applicable (first, second, third, etc., tier suppliers), and as far forward as possible, i.e., to customers1.  TQM also embraces the following five concepts namely; continuous improvement  (a never ending search for perfection), bench-marking (learning from the “best-of-the best or “best-in-class”), use of empowered employee teams6, just-in-time practices (JIT) (use of strategic alliances and few suppliers2), and knowledge of tools (at least 51 tools including Statistical Quality Control3). JIT practices include the use of strategic alliances; which may be with first, second and third tier suppliers and/or with customers; to achieve competitive advantages as well as to improve quality throughout the business system of an enterprise.2   A Strategic Alliance is a formal agreement to supply a good(s) or services(s) and to jointly expand knowledge, develop applications and commercialize new products, with the rights of co-ownership, and commercial exploitation of the inventions within the boundaries of the Alliance particulars. Alliance partners work together to serve the ultimate consumer by doing together what each partner could not do alone. The Strategic Alliance agreement includes Supply, Technology, Intellectual Property, Legal and Termination/Disengagement sub-agreements and, generally, has a term of at least 3 years but not usually more than 5 years. The objective of a Strategic Alliance is to achieve competitive advantage for each partner through productivity and quality improvements and significant innovation.2 This research was undertaken to determine the penetration of TQM and strategic alliances in the Food and Beverage industry.  The intent is to re-study this industry in about 4 to 5 years to understand the evolution of TQM and strategic alliances from the baseline reported herein. The authors comprise the Strategic Alliance Research Group that expects to study a broad array of US industries on these subjects.5 The reader is referred to the authors’ Web site at www.tsarg.com for the organization’s vision, mission, objectives and recent research.

Fraud Versus Ethics: The Case Of The Backdating Of Stock Options

Bottiglieri

Kroleski

2011

JBER

During the past five years, the Securities and Exchange Commission (SEC) has investigated over 140 companies for their practices of backdating the grant dates of employee stock options (ESOs), and has cited a number of these companies for their part in this behavior that has led to huge financial losses to corporate stockholders. The practice of backdating stock options grant dates is not necessarily illegal, but there may be some ethical issues involved with respect to the firms implicated in the acts. Options backdating may arise, not only because of clerical errors, lax record keeping, or internal control system failure, but also because of the intentional manipulation of corporate reports and documentation. In cases where top executives deliberately manipulate stock options grant dates to further bloat their excessive compensation packages above the amounts that directors approved for them, the firm and its officers/directors may be liable for violations of SEC disclosure requirements, generally accepted accounting principles (GAAP), and tax laws, and if these actions occurred after the passage of the Sarbanes-Oxley Act of 2002, there could be severe penalties imposed on the firm and on the individuals involved.

Strategic Alliances In Public Accounting Firms

Cante

Strittmatter

et al. 2011

JABR

The decade of the 1990s saw the emergence of the concept of the strategic alliance and its significant growth in both numbers and diversity of alliance areas as well as its impact on business performance in terms of new service or product introductions and/or increases in revenue, profit, volume or market share.  Public accounting (CPA) firms have participated in such alliances especially during times of staffing shortages and seasonal peak periods, but their participation has not been well reported in the literature.  This study examines the state of strategic alliances in public accounting firms.  The topic is particularly relevant now in light of the greater responsibilities placed on management since the passage of the Sarbanes-Oxley Act, and the issuance recently of two Statements of Financial Accounting Standards (SFAS No. 157 in 2006 and SFAS No. 159 in 2007) which give companies the option to report certain financial assets and liabilities at fair value.  These additional responsibilities may include the restructuring and restatement of financial reports to more accurately reflect the financial position and results of operations of a business.  This has resulted in a greater demand for accounting services which some CPA firms were not able to provide.  The findings reveal that participation in strategic alliances enables accounting firms to pool their resources, increase revenues, build a larger knowledge support system to serve a wider clientele, and compete with larger firms both nationally and on a global basis.