Current Issue : January - March Volume : 2013 Issue Number : 1 Articles : 5 Articles
Z-score model is one of the most frequently used model for early financial failure warning and\r\nconsiders various financial ratios selected as prediction variables.The purpose of this paper is to\r\nuse multivariant discriminant analysis (MDA) to substantiate a score function effective in\r\nbankruptcy risk prediction of enterprises on Romanian economy example. In order to discriminate\r\nbetween bankrupt and non-bankrupt in the scoring model we used relevant financial ratios related\r\nto activity, liquidity, leverage and profitability. The weighting coefficients established between\r\nindependent variables and the objective function-score, are determined by using statistical tools. In\r\nthis context, the article aims to build a scoring function in order to identify bankrupt companies,\r\nusing a sample of companies listed on Bucharest Stock Exchange. The results in this article can be\r\nused to appraise the effectiveness of applying MDA financial failure models for Romanian\r\ncompanies, to make an idea about curent and future financial situation, and take, if necessary,\r\ncorrective measures....
Many businesses are now moving to e-business and implementing computerized accounting\r\ninformation systems. This phenomenon has given impact to audit profession in performing IT audit,\r\nfinancial reports audit and tracing electronic source documents. Computer-Assisted-Auditing\r\nTechniques and Tools (CAATTs) are audit technologies that allow IT audit work to be performed\r\nefficiently, effectively and reduce audit time. However, little is known about CAATTs adoption by\r\npublic audit firms. This paper presents a new paradigm of Individual-Technology-Organization-\r\nEnvironment (I-TOE) to investigate the acceptance of CAATTs in audit firms. There are gaps that\r\nexist in prior literatures which studied CAATTs acceptance from only individual auditor views and\r\ndid not deliberate on issues from both organizational and individual perspectives. Consequently,\r\nthis paper contributes to extend the literature by providing a better understanding on relationship\r\nof both organizational and individual factors in foreseeing CAATTs adoption and investment. A\r\ncombination of Unified Theory of Acceptance and Use of Technology 2, and Technology-\r\nOrganization-Environment framework are used as the underlying theories. In addition to that, this\r\npaper complements the framework with new variables of technology risk, technology task fit,\r\norganization readiness and top management commitment. I-TOE framework contributes to\r\nprofessional audit firms that need to measure CAATTs acceptance for the advancement of audit\r\nprofession. Future experimental studies may be done to provide evidence and empirically validate\r\nI-TOE framework in other domain....
The convergence of taxation systems among the member states of the European Union has long\r\nbeen a major issue of debate. As the union continues to expand its borders, the convergence of the\r\ntax mix and of the fiscal pressure seemed to have been pushed aside in favor of other more pressing\r\nmatters. However, with the recent signing of the Treaty for a Fiscal Stability Pact by 25 of the\r\nmember states the question of fiscal convergence is once again in the limelight. In the current study,\r\nwith the help of cluster analysis techniques, we will focus on finding and describing tax\r\nconvergence tendencies in the European Union. We will not only show that taxation convergence\r\ntendencies exist among the member states, but we will also describe fiscal convergence groups and\r\nshow their evolution from 1965 up until the present....
The purpose of this paper is to assess the financial performance of Romanian banks involved in\r\nM&A activities, as target banks, over a period of 10 years (1998-2008). Performance is analyzed in\r\nterms of profitability by using traditional accounting measures: ROE, ROA and NIM. Post-M&A\r\nperformance for a 3-year period is compared with the aggregate ratios from all Romanian banks.\r\nThe findings are mixed. On one hand, bank M&A in Romania does not result in improved ROE or\r\nROA in the post M&A 3-year period under review. On the other hand, merged banks report media\r\nNIM above industry....
Change is a constant feature of organizational existence. Successfully managing change requires an\r\nunderstanding of the environment in which an organization operates. The complex and\r\ninterconnected world in which public accounting operates presents many challenges to the\r\ntraditional neo-classical view of research and management. Awareness of the constantly-changing,\r\nnetworked environment and the dynamics of agent interactions offers distinct competitive\r\nadvantages to the astute. The current paper strives to convey the appropriateness and necessity for\r\nrecognizing the public accounting profession as a complex adaptive system (CAS) that operates in an\r\never-changing, unpredictable environment impacted by local and global politico-economic entities,\r\nprofessional organizations, clientele, internal organizational members, higher education\r\ninstitutions, technological advances, and others. Drawing on complexity theory, the paper develops\r\nand presents testable propositions to examine the public accounting profession as a CAS with the\r\nexpress purpose of stimulating more holistic research efforts in accountin...
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