Journal of Accounting and Finance
ISSN / EISSN : 2158-3625 / 2158-3625
Published by: North American Business Press (10.33423)
Total articles ≅ 383
Latest articles in this journal
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4526
Bharat Financial Inclusion Ltd. (erstwhile SKS Micro Finance) has been in talks of a merger with IndusInd Bank in an attempt to revive itself as a vertical of IndusInd, in the form of NBFC in September 2017. The deal is of a size and complexity that has not been seen for long time between the second largest microfinance company in the economy and IndusInd Bank, a leading private sector bank. BFIL has entered into an “exclusivity agreement with IndusInd Bank for due diligence and discussions to evaluate a potential strategic combination between the two organizations”. The shares of both the companies surged as the announcement of exclusivity agreement was made in the press. This case study is unfolded as follows: The first part would detail the history of BFIL and IndusInd Bank. Further discussion would dwell on the merger deal and the impact on stock markets. The potential benefits for the two would be laid out in the conclusion.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4528
The chief executive officer (CEO) is the face of an organization. Nonetheless, since the Sarbanes-Oxley Act of 2002, the importance of the chief financial officer (CFO) has increased. This study examines similar characteristics of the CFO and CEO against various firm performance metrics, with emphasis on cash and operating cycles. The theory of cash management emphasizes the importance of cash flow management as a means for a company to maintain its solvency--a responsibility primarily belonging to the CFO. More CFO characteristics showed significance than CEO characteristics, indicating more firm performance success contributed by the CFO. There is a growing literature stream on CFOs, and with increased accountability being placed on the CFO, more will need to be known about this position and the characteristics that contribute to a successful CFO.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4521
We examine the relationship between male versus female audit committee chair characteristics and real earnings management (REM). REM occurs when the firm deviates from its normal operations because managers wish to misrepresent true performance. We find that a female audit committee chair and a chair with prior auditor experience, regardless of gender, are both associated with lower REM and thus greater financial statement transparency for investors. Overall, the findings support the ideas that (1) a female audit committee chair and (2) an older audit committee chair, regardless of gender, promote financial statement transparency.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4530
Blockchain is comprised of a scattered database of blocks containing information which is encrypted with special algorithms called hash, that enable data monitoring. The digitization of payment systems as well as goods and services has led to the development of cryptocurrencies such as Bitcoin. However, although it was originally created for bitcoin trading, the potential of blockchain extends beyond cryptocurrencies and is still evolving. The aim of this study is to investigate the use of blockchain technology in taxation. In the study, the use of blockchain technology in taxation was examined and analyzed for selected countries and Turkey. Legal and administrative studies continue to be carried out in countries around the world to reduce the administrative burden in tax systems, allow tax collection at low costs and reduce tax deficits. As a result, blockchain technology will lead to change and transformation of the world tax regimes due to its transparency.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4527
The present study provides a comprehensive analysis of the relationship between customer bargaining power and accrual-based earnings management using a sample of United States (U.S.) firms, with 16,084 firm-year observations, over the period 2000-2016. The absolute value of residuals from the modified-Jones model as described in Dechow et al. (1995) and the Kothari et al. (2005) models, respectively, were used as the proxy variable for the quality of accruals of a company. Results from the multivariate analysis, after controlling for firm-specific and market-specific variables, indicated that firms with high customer bargaining seem to engage more in opportunistic accrual management activities.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4523
There have been many advances in recent years in accounting literature that focus on theories for detecting the occurrence of corporate financial statement fraud. Many tools and methods have been developed to detect the occurrence of corporate financial statement fraud, particularly using various computer-assisted auditing tools including artificial intelligence. However, there is also within the accounting literature a stream of research that focuses on theories and models attempting to predict the occurrence of corporate financial statement fraud. This paper examines those theories and models and explains why those theories and models fail to predict the occurrence of corporate financial statement fraud.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4531
This paper reviews the tax preparation practice of one university-level Volunteer Income Tax Assistance (VITA) program to determine the role, if any, due diligence requirements for paid preparers should have on student preparers. The due diligence requirements as outlined in Circular 230 apply to paid preparers. The Volunteer Standards of Conduct are outlined in IRS publication 4012 and apply to VITA volunteers who are often students. This study analyzes the tax challenges faced by student prepares in a VITA program, and how the increased due diligence standards required of the IRS for paid preparers would be beneficial to the students participating in a VITA program. The study models tax return data to show the financial benefit application of due diligence standards would have for the Internal Revenue Service. The goal of this paper is to show the importance of higher due diligence standards, and we contribute to the literature by providing the first review of VITA tax preparation through the lens of paid-preparer due diligence requirements.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4524
This study examines the investment performance of US based marijuana stocks. Medical marijuana was first legalized in 1996 by the state of California. During the 1996 to 2020 period the 200 US marijuana stocks as a sector portfolio experienced high: mean weekly return, standard deviation, positive skewness, and kurtosis. Sensitivity analysis, to outliers, was conducted on the winsorized returns (removing the top and bottom 10 percent of returns) generated much the same results. More so, the US marijuana stock portfolio outperformed the NASDAQ, DJIA, and S & P 500 stock indexes. Further, the portfolio beta was negative. Investors should consider including US marijuana stocks in their portfolio for both augmented return and risk diversification reasons.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4529
We examine the effect of flat-rate taxation on income inequality in the post-communist countries. The study contributes to the debate about the political economic consequences of the trade-off between efficiency and equity of taxation policies. The design of an effective redistribution system is highly desirable for any type of political system, and it needs to address concerns over the distribution of tax burden across various income brackets. This leads governments to choose between the range of highly progressive to completely flat-rate taxation regimes. Economic theory has offered approaches to the analysis of the equity gains of flat tax policies by stressing the potential minimization of social welfare loss through economic growth, labour supply and capital accumulation. We find that flat taxation adoption is positively associated with an increase in income inequality. Our findings provide new cross-country evidence that flat tax policies substantially contribute to greater income inequality.
Journal of Accounting and Finance, Volume 21; https://doi.org/10.33423/jaf.v21i4.4532
A plant tour offers accounting students the ability to see what they are studying in managerial or cost accounting in a real-world business setting. A tour of the Nissan plant in Smyrna, Tennessee is discussed in this paper. The students enjoy the field trip and expressed positive feelings about the experience of learning accounting material outside the classroom. While in the plant, students see many elements of managerial or cost accounting after discussing them in class, including job order costing and the aspects of the product cost. A virtual tour can take the place of a physical plant tour.