This paper focuses on using blockchain technology for the digital transformation of enterprise financial accounting management to improve the security and reliability of data management. This paper ...makes a comparative analysis of PBFT algorithm and RPBFT algorithm, and uses blockchain technology to store data and monitor each node dynamically. The effect of financial management after digital transformation is remarkable. Taking Company A as an example, its operating profit margin increased from 12.13% to 26.0%, an increase of 13.87%. In terms of financial performance, the expenditure of Enterprise A between 2021 and 2022 increased from 15 billion yuan to 17.21 billion yuan. In addition, in terms of the management expense rate, the operating income of enterprise A in 2022 reached 185.828 billion yuan, which decreased by 0.74% compared with the expense rate 2020. The digital transformation strategy not only creates higher value for the enterprise, but also realizes the interconnection and sharing of data. This strategy has important practical significance to guide enterprises in the digital era of financial accounting management, which helps enterprises to maintain advantages in the fierce market competition, while ensuring data security and efficient management.
•Our case gives students the opportunity to think critically about a mortgage loan payment schedule that has errors.•Students must identify the major problems with the schedule and create a corrected ...schedule to inform the borrower how much loan is left and when they will pay it off.•Students will write a professional memo to explain their findings and results.•Students will gain a better understanding of installment loans and time value of money concepts.
Accountants are frequently called upon to use their financial and analytical skills to assist other professionals. In this case, you will take on the role of an accountant called upon to assist an attorney who is providing free legal advice to a client. The case, based on actual events, involves inappropriate amortization by a lender of a 15-year installment note. Additionally, the borrower missed multiple payments and made extra payments attempting to “catch-up.” After 22 years, the borrower is still making payments and wonders when payoff will be achieved. This case provides you the opportunity to review and correct an amortization schedule for an installment note, thereby gaining an understanding of the impact of compounding interest and missed payments on the life of the note. Additionally, the case provides the opportunity to communicate your findings in a memo to a professional who is not an accountant.
Do Managers Withhold Bad News? KOTHARI, S. P.; SHU, SUSAN; WYSOCKI, PETER D.
Journal of accounting research,
March 2009, Letnik:
47, Številka:
1
Journal Article
Recenzirano
In this study, we examine whether managers delay disclosure of bad news relative to good news. If managers accumulate and withhold bad news up to a certain threshold, but leak and immediately reveal ...good news to investors, then we expect the magnitude of the negative stock price reaction to bad news disclosures to be greater than the magnitude of the positive stock price reaction to good news disclosures. We present evidence consistent with this prediction. Our analysis suggests that management, on average, delays the release of bad news to investors.
Purpose - The purpose of the paper is to examine the relationship between corporate social responsibility (CSR) and firm performance, taking into account firm value and financial accounting ...performance, in an emerging market - Brazil.Design methodology approach - Content analysis was conducted to extract data from two different sources, one relative to CSR data and another that provided financial data. CSR indexes and financial performance measures were calculated to allow the estimation of regression analysis conducted to examine the relationship between CSR and performance.Findings - The results indicate that CSR is value destroying in Brazil since a significant negative correlation between CSR and firm value was found. Additionally, a neutral relationship characterises the mutual effect between CSR and financial accounting performance.Originality value - The study has examined the relationship between CSR and firm performance in a country where, as in most other non-developed markets, such a relationship has not been an object of research. Besides, the use of a three dimensional measure of CSR, mainly considering research undertaken in an emerging market, as a valuable contribution may be observed.
Managerial Ability and Earnings Quality Demerjian, Peter R.; Lev, Baruch; Lewis, Melissa F. ...
The Accounting review,
03/2013, Letnik:
88, Številka:
2
Journal Article
Recenzirano
We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are ...associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations. The results are consistent with the premise that managers can and do impact the quality of the judgments and estimates used to form earnings.
This study examines liquidity and cost of capital effects around voluntary and mandatory IAS/IFRS adoptions. In contrast to prior work, we focus on the firm-level heterogeneity in the economic ...consequences, recognizing that firms have considerable discretion in how they implement the new standards. Some firms may make very few changes and adopt IAS/IFRS more in name, while for others the change in standards could be part of a strategy to increase their commitment to transparency. To test these predictions, we classify firms into "label" and "serious" adopters using firm-level changes in reporting incentives, actual reporting behavior, and the external reporting environment around the switch to IAS/IFRS. We analyze whether capital-market effects are different across "serious" and "label" firms. While on average liquidity and cost of capital often do not change around voluntary IAS/IFRS adoptions, we find considerable heterogeneity: "Serious" adoptions are associated with an increase in liquidity and a decline in cost of capital, whereas "label" adoptions are not. We obtain similar results when classifying firms around mandatory IFRS adoption. Our findings imply that we have to exercise caution when interpreting capital-market effects around IAS/IFRS adoption as they also reflect changes in reporting incentives or in firms' broader reporting strategies, and not just the standards.
In 2022, the Bank’s lending signatures amounted to €65.1 billion. This report includes the 2022 financial statements and audit reports both for the EIB and the EIB Group.
The undeniable significance of small and medium-sized enterprises (SMEs) and startups in fostering economic development and prosperity serves as the backdrop for this study. The primary goal of this ...research is to determine how various factors influence the digitalization of financial accounting within SMEs and startups. An analysis is carried out using data from a cohort of 200 Chinese SMEs, all listed and sourced from the China Stock Market & Accounting Research database's financing reports from 2010 to 2020. The findings suggest that environmental, social, and governance investment and loans obtained by these SMEs positively promote digitalization. Meanwhile, financial fraud acts as a barrier to the expansion of digitalization within their financial structures. Notably, total income and transaction costs exhibit a mixed pattern of effects, acting as long-term enablers of digitalization. Moreover, the Chinese government's establishment of an electronic financial accounting standard framework and provision of incentive packages can expedite the digitalization of financial accounting in Chinese SMEs.
•Digitalization of financial accounting is accelerated by ESG investing.•Total revenue has positive impact on financial accounting digitalization in long term.•Financial fraud hinders the expansion of digitalization in the financial structure of SMEs.
We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. We analyze approximately 800 individual auditors and find that they exhibit ...significant variation in audit quality. The effects that individual auditors have on audit quality are both economically and statistically significant, and are pronounced in both large and small audit firms. We also find that the individual auditor effects on audit quality can be partially explained by auditor characteristics, such as educational background, Big N audit firm experience, rank in the audit firm, and political affiliation. Our findings highlight the importance of scrutinizing and understanding audit quality at the individual auditor level.
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