Accounting quality and firm-level capital investment

G. Biddle, G. HILARY

The Accounting Review

octobre 2006, vol. 81, n°5, pp.963-982

Départements : Comptabilité et Contrôle de Gestion

This study examines how accounting quality relates to firm-level capital investment efficiency. Our first hypothesis is that higher quality accounting enhances investment efficiency by reducing information asymmetry between managers and outside suppliers of capital. Our second hypothesis is that this effect should be stronger in economies where financing is largely provided through arm's-length transactions compared with countries where creditors supply more capital. Our results are consistent with these hypotheses both across and within countries. They are robust to alternative econometric specifications, different measures of accounting quality and investment-cash flow sensitivity, and numerous control variables. Author Keywords: accounting quality; capital investment; corporate governance KeyWords Plus: CASH FLOW SENSITIVITIES; FINANCIAL INTERMEDIATION; CORPORATE-INVESTMENT; EARNINGS MANAGEMENT; GROWTH; CONSTRAINTS; DETERMINANTS; INFORMATION; PERFORMANCE; GOVERNANCE

Analyst coverage and financing decisions

S. Dasgupta, G. HILARY, X. Chang

The Journal of Finance

décembre 2006, vol. 6, n°6, pp.3009-3048

Départements : Comptabilité et Contrôle de Gestion

We provide evidence that analyst coverage affects security issuance. First, firms covered by fewer analysts are less likely to issue equity as opposed to debt. They issue equity less frequently, but when they do so, it is in larger amounts. Moreover, these firms depend more on favorable market conditions for their equity issuance decisions. Finally, debt ratios of less covered firms are more affected by Baker and Wurgler's (2002) "external finance-weighted" average market-to-book ratio. These results are consistent with market timing behavior associated with information asymmetry, as well as behavior implied by dynamic adverse selection models of equity issuance.KeyWords Plus: INITIAL PUBLIC OFFERINGS; SEASONED EQUITY OFFERINGS; LONG-RUN PERFORMANCE; CAPITAL STRUCTURE; EARNINGS FORECASTS; OPERATING PERFORMANCE; INVESTMENT; ISSUES; FIRMS; RECOMMENDATIONS

Auditing firms and auditing professionals


Research in the Sociology of Organizations

2006, vol. 24, pp.231-256

Départements : Comptabilité et Contrôle de Gestion

Comparative Analysis of Strategic Management Accounting in German and English Language General Management Accounting Textbooks


Schmalenbach Business Review

juillet 2006, vol. 58, n°3, pp.234-258

Départements : Comptabilité et Contrôle de Gestion

We analyze the handling of strategic management accounting in the 20 general management accounting textbooks that are perceived as most important in German- and in English-speaking countries. our analysis shows that strategic management accounting is not integrated into textbooks within a coherent, consistent framework. However, the survey also shows that these textbooks often use several strategic management accounting "subconcepts" which form a set of core concepts of strategic management accounting across the language areas. We identify these core concepts and elaborate on striking differences between the coverage of certain concepts in the German- and English-speaking worlds. In general, the German term "controlling" implies a more strategic emphasis than does its American counterpart, "management accounting"

Die Kritik der Künstler am Management


Angewandte Sozialforschung

2006, vol. 24, n°1/2, pp.19-24

Départements : Comptabilité et Contrôle de Gestion

The contribution of Eve Chiapello summarizes results of her empirical study "Artistes vs. Managers" (Paris 1998). Furthermore, several conclusions regarding the role of art in society and its autonomy are drawn, elucidating the normative position of one of the authors of "Le nouvel esprit du capitalisme" (Paris, 1999). Eve Chiapello argues, that the traditionally difficult relations between art and management have improved over the last two decades. The basic distinction between social critique and artistic critique is introduced, a distinction, which underpins her much discussed book published in collaboration with Luc Boltanski "The New Spirit of Capitalism" (engl. version, London, 2005). Whereas social critique, which emerged with modem capitalism, addressed misery, exploitation and inequality, artistic critique in the 19 century emphasized creativity and criticised materialism, repression, bourgeois banality and risks deriving from the dominance of utilitarian thinking, industry and technology. Management, which came up later with the blossoming of industrial capitalism, inherited this artistic critique, since each generation of artists and intellectuals repeats this critic of materialist forces of modern society anew. Conflicts and tensions for artists typically revolved around questions of negative autonomy (freedom from restrictions), including monetary aspects. Though such tensions are still widespread they did not hinder the functioning of artistic production, nor did they hamper the growing acceptance of management in artistic circles. The borders between the worlds of art and the economic world opened during the last two decades, logics as well as persons migrated between the two spheres. In these decades also the strength of artistic critique was weakened considerably. There are several reasons for this development, some being more superficial, some rooting in deeper changes of the cultural as well as the economic field: In France the state and cultural policy in the 1980s displayed a so far unknown appreciation of avant-garde art. At the same time it emphasized the industrialisation and the management of culture. In the economic field new forms of organization emerged. They reveal astonishing similarities with projects of avant-garde art. Autonomy and creativity of employees are given room to move. Instead of attacking avant-garde art, the management asks, how innovation might be supported best, also with the help of contemporary art. Part of economic life approached experiences, which were reserved for the artistic field, where they were invented originally. On the other hand the number of artists as well as the size of the public of contemporary art grew considerably. Contemporary art was accepted on a broader social basis, immediately without waiting for the "test of time". With new forms of artistic production, which are more complex regarding number of persons involved, or administrative and management tasks, the necessity of using and accepting management practices or dividing the labour with management expanded. At the same the authority of artists decreased, since the idealist and romantic view of the artist as a genius and an inspired creator was attacked by philosophy and sociology. Not to forget that the targets of critique changed themselves. The was replaced by a new faction of the dominant class, A new faction of the dominant class, the "Bourgeois Bohèmes" described by David Brooks, replaced the rich bourgeois with limited cultural capital

Disclosure and Determinants Studies: An Extension Using the Divisive Clustering Method (DIV)

M. Chavent, Y. DING, L. Fu, H. Wang, H. STOLOWY

European Accounting Review

juillet 2006, vol. 15, n°2, pp.181-218

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : Disclosure, Determinants, Provisions, France, Size, Clustering method

Past accounting research contains an extensive range of disclosure and determinants studies. But these studies have one major methodological drawback: the disclosure analysis is often restricted to determination of the disclosure index, that is, the sum of disclosed items, weighted or unweighted. The disclosure profile (which reflects the structure of published information) is generally not part of the research design. The objective of this paper is to introduce a divisive (descendant) clustering method, which splits the sample into homogeneous sub-groups corresponding to disclosure patterns (or profiles), for clearer determination of the financial characteristics of each group. This methodology is illustrated by a study of disclosure on provisions by large French firms. The results show that the disclosure pattern is related to provision intensity, size, leverage and market expectation, but not to profit, return and industry. This new research method is a valuable complementary tool for expanding on disclosure and determinants studies, moving from disclosure levels to disclosure patterns

Does past success lead analysts to become overconfident?

G. HILARY, L. Menzly

Management Science

avril 2006, vol. 52, n°4, pp.489-500

Départements : Comptabilité et Contrôle de Gestion

This paper provides evidence that analysts who have predicted earnings more accurately than the median analyst in the previous four quarters tend to be simultaneously less accurate and further from the consensus forecast in their subsequent earnings prediction. This phenomenon is economically and statistically meaningful. The results are robust to different estimation techniques and different control variables. Our findings are consistent with an attribution bias that leads analysts who have experienced a short-lived success to become overconfident in their ability to forecast future earnings. Author Keywords: overconfidence; cognitive biases; analysts; earnings forecasts KeyWords Plus: SECURITY ANALYSTS; EARNINGS FORECASTS; PERFORMANCE; ATTRIBUTIONS; INFORMATION; CONFORMITY; TEACHERS; CASCADES

Improving bankruptcy prediction with Hidden Layer Learning Vector Quantization

J. NEVES, A. Vieira

European Accounting Review

juillet 2006, vol. 15, n°2, pp.253-271

Départements : Comptabilité et Contrôle de Gestion

A Hidden Layer Learning Vector Quantization (HLVQ), neural network-learning algorithm is used for correcting the outputs of Multilayer Perceptrons (MLP) for predicting corporate bankruptcy. We call this method HLVQ-C, and it is shown that it outperforms both discriminant analysis and traditional neural networks while significantly reducing type I error, which is the type of error that has the highest costs for banks. Moreover, our approach gives an estimation of the prediction robustness thus providing a useful measure of credit risk, which is of great interest for banks, insurance companies and creditors in general. We also show that unbalanced samples, containing more financially sound firms than bankrupt firms, place a strong bias on the classifiers thus leading to a deterioration of type I error accuracy. Although many studies have been published on bankruptcy prediction using neural networks or discriminant analysis, they used mainly US or UK samples of very limited size. Our study is based on industrial French firms, uses a data-set of 583 bankrupt firms over the period 1998'2000 and tests the effects of different proportions of non-bankrupt firms in the sample. Attention was also given to feature selection to reduce the dimensionality of the problem

La création de valeur par les services : une étude empirique dans des PMI


Finance Contrôle Stratégie

septembre 2006, vol. 9, n°3

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Calcul des coûts, Tarification, Rentabilité, Services, Cost calculation, Pricing, Profitability, Services

L'article s'interroge sur la rentabilité des offres de services accompagnant des offres de biens industriels. Il rappelle les différents éléments de ce débat sur le plan théorique et présente les résultats d'une étude empirique menée dans six PMI. L'article décrit leurs pratiques de facturation et de calcul des coûts et de marges pour les services offerts et met en évidence la variété des motifs expliquant les politiques tarifaires. Il conclut en mentionnant les facteurs susceptibles de favoriser la création de valeur par les services

Le deuxième sexe dans la profession comptable - Réflexions théoriques et méthodologiques


Comptabilité Contrôle Audit

octobre 2006, pp.101-138

Départements : Comptabilité et Contrôle de Gestion

Cet article propose une réflexion théorique et méthodologique à partir de l'étude des recherches sur le genre dans les revues comptables françaises et anglo-saxonnes. L'analyse de 17 revues académiques comptables conduit à identifier 91 articles croisant les questions de genre et diverses problématiques de recherche en comptabilité. Après avoir présenté les divers choix théoriques et méthodologiques effectués par les chercheurs dans ce champ, une analyse de la littérature portant plus spécifiquement sur le plafond de verre dans la profession comptable a été réalisée. Celle-ci souligne la triple nature des obstacles (individuels, organisationnels et sociaux) à la progression hiérarchique des femmes dans la profession comptable et vient confirmer l'imbrication des choix méthodologiques, théoriques et politiques du chercheur. Mots clésGenre, plafond de verre, profession comptable, féminisme, méthodologie