Accounting System Dynamics Modeling of Money Stock as Debts

Yamaguchi, Kaoru; Yamaguchi, Yokei

doi:10.1007/978-3-030-67190-7_4

Cited by 8 publications

(17 citation statements)

References 13 publications

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“…Within the stream of the qualitative SD literature, this study contributes to the application of qualitative SD principles and tools in the business domain by relying on accounting information (e.g. Bianchi, 2002; Yamaguchi, 2003; Melse, 2006; Giorgino et al ., 2020; Pierson, 2020; Yamaguchi and Yamaguchi, 2021). However, the main contribution, which hopefully can be employed in other areas of application, is the use of stock‐and‐flow diagrams in qualitative SD modeling, a novel contribution to qualitative SD that facilitates the understanding of dynamic complexity compared with causal loop diagrams.…”

Section: Discussionmentioning

confidence: 99%

“…In particular, we found that just a few papers have been explicitly devoted to analyzing and explaining SD‐based modeling activities applied to corporate annual reports. For example, Yamaguchi (2003) described how to represent accounting‐based documents and accounting‐related principles using stock‐and‐flow diagrams and SD concepts; Melse (2006) studied how to create a dynamic system of accounts, and Pierson (2020) discussed how to develop a comprehensive accounting model starting from the data contained in traditional accounting reports. Additionally, some studies have investigated how to evaluate specific sections or items from corporate financial statements—such as in the study by Yamaguchi and Yamaguchi (2021) that focused on the representation and analysis of money stock (i.e.…”

Section: Qualitative Sd and Accounting Informationmentioning

confidence: 99%

“…For example, Yamaguchi (2003) described how to represent accounting‐based documents and accounting‐related principles using stock‐and‐flow diagrams and SD concepts; Melse (2006) studied how to create a dynamic system of accounts, and Pierson (2020) discussed how to develop a comprehensive accounting model starting from the data contained in traditional accounting reports. Additionally, some studies have investigated how to evaluate specific sections or items from corporate financial statements—such as in the study by Yamaguchi and Yamaguchi (2021) that focused on the representation and analysis of money stock (i.e. the sum of coins, notes, and demand and time deposits)—or to represent an organization's business model and its main operations using SD maps and diagrams (e.g.…”

Section: Qualitative Sd and Accounting Informationmentioning

confidence: 99%

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Uncovering dynamic complexity in annual reports: a methodological approach using resource mapping

Kunc,

Barnabè,

Giorgino

2023

System Dynamics Review

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This study explores the role of qualitative system dynamics (SD) models in representing and analyzing the information of corporate annual reports by uncovering their hidden “dynamic complexity.” The study employs a specific qualitative SD technique, resource mapping, and outlines a methodology to apply it in practice. This study has several contributions. First, it provides methodological guidelines and practical insights on how to apply qualitative SD, using stock‐and‐flow diagrams, in the field of corporate reporting to represent visually and analyze the dynamic complexity implicit in businesses. Second, it underlines the performative role of accounting together with qualitative SD. Specifically, it provides useful insights into how to use qualitative SD in the accounting field to enhance both internal analysis and external communication, thereby supporting decision‐making processes. Third, it shows how to integrate different discipline‐related technical languages, thereby bridging differences in backgrounds, skills, and expertise that might characterize intended readers and users. © 2023 The Authors. System Dynamics Review published by John Wiley & Sons Ltd on behalf of System Dynamics Society.

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Section: Discussionmentioning

confidence: 99%

Section: Qualitative Sd and Accounting Informationmentioning

confidence: 99%

Section: Qualitative Sd and Accounting Informationmentioning

confidence: 99%

See 1 more Smart Citation

Uncovering dynamic complexity in annual reports: a methodological approach using resource mapping

Kunc,

Barnabè,

Giorgino

2023

System Dynamics Review

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“…The system dynamics model in this study is developed based on GAAP (generally accepted accounting principles), standard corporate finance literature (Benninga, 2008; Lyneis, 1980; Yamaguchi, 2003) and system dynamics principles (Sterman, 2000). The model has been developed using Vensim software.…”

Section: Data Sources and Model Validationmentioning

confidence: 99%

Modelling the dynamics of firm valuation: An assessment of impact of exchange rate fluctuations on firm value using system dynamics

Khan

Qureshi

2022

Syst Res Behav Sci

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Exchange rate volatility is a vital issue in international finance due to its effect on the value of the firm, depending on firm's exposure to the exchange rate risk. However, this impact is not clear in literature as evidence is mixed. This article analyses the impact of exchange rate fluctuations on firm value. A system dynamics‐based corporate planning model has been developed that incorporates the modules for financial and physical processes, firm valuation and exchange rate determination. Simulation results reveal that a stronger home currency leads to an increase in market price per share of the firm and vice versa. The results provide counter intuitive evidence on the impact of exchange rate on firm value and provide nonlinear feedback loop‐based explanation. The study fills the gap in literature by incorporating a systemic approach in the strategic planning process to assess the composite impact of parameter changes on key variables.

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“…The selection of SD as the scientific organizational area used for this integration seems appropriate given that the relationship between SD and accounting is already establish in the literature (e.g., Kameyama et al, 1989;Yamaguchi, 2003;Melse, 2011).…”

Section: Introductionmentioning

confidence: 99%

The effect of using analogies to integrate system dynamics concepts in accounting education

Baptista

Lourenço

Simões

2023

Accounting Education

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This paper analyses whether using analogies to integrate knowledge from other scientific areas increases the level of accounting knowledge. We defined two sets of analogies, one between the physical states of water and the economic and cash flows, and another between the concepts of stock, flow and feedback that were taken from the System Dynamics field and the financial statements. An experimental study was conducted with students from a European university, who participated in an accounting revision class. The grades of the students who attended the revision class using the analogies were higher than of those who did not attend this class. These findings reinforce the power of analogies as a useful tool and validate the benefits of integrating knowledge from other areas in accounting education.

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Accounting System Dynamics Modeling of Money Stock as Debts

Cited by 8 publications

References 13 publications

Uncovering dynamic complexity in annual reports: a methodological approach using resource mapping

Uncovering dynamic complexity in annual reports: a methodological approach using resource mapping

Modelling the dynamics of firm valuation: An assessment of impact of exchange rate fluctuations on firm value using system dynamics

The effect of using analogies to integrate system dynamics concepts in accounting education

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