Journal articles: 'Write-Downs'

1

Gujarathi, Mahendra R., and Mark Kohlbeck. "Reliance Corporation: Inventory Write-Downs and Reversals." Issues in Accounting Education 22, no. 3 (2007): 503–14. http://dx.doi.org/10.2308/iace.2007.22.3.503.

Full text

Abstract:

Reliance Corporation, a leading manufacturer of analog and mixed signal products and high performance memory products, experienced a significant downturn in 2004, resulting in a substantial inventory write-down of the memory products inventory. This case requires you to examine the issues of inventory valuation and disclosures and managerial motivations in managing earnings. A recovery of inventory values in the first quarter of 2005 provides a setting for evaluating subsequent financial statement reporting and for understanding the importance of ethics in financial reporting decisions. This case also provides you with an opportunity to research accounting literature, apply an accounting standard to a realistic setting, appreciate the judgments involved in financial reporting decisions, and understand difficulties in the evaluation of materiality.

APA, Harvard, Vancouver, ISO, and other styles

2

Spear, Nasser A., and Alexandra M. Taylor. "Asset Write-downs: Evidence from 2001-2008." Australian Accounting Review 21, no. 1 (2011): 14–21. http://dx.doi.org/10.1111/j.1835-2561.2010.00114.x.

Full text

APA, Harvard, Vancouver, ISO, and other styles

3

Dobbie, Will, and Jae Song. "Targeted Debt Relief and the Origins of Financial Distress: Experimental Evidence from Distressed Credit Card Borrowers." American Economic Review 110, no. 4 (2020): 984–1018. http://dx.doi.org/10.1257/aer.20171541.

Full text

Abstract:

We study the drivers of financial distress using a large-scale field experiment that offered randomly selected borrowers a combination of (i) immediate payment reductions to target short-run liquidity write-downs to target long-run debt constraints. We identify the separate effects of the payment reductions and interest write-downs using both the experiment and cross-sectional variation in treatment intensity. We find that the interest write-downs significantly improved both financial and labor market outcomes, despite not taking effect for three to five years. In sharp contrast, there were no positive effects of the more immediate payment reductions. These results run counter to the widespread view that financial distress is largely the result of short-run constraints. (JEL G56, K35)

APA, Harvard, Vancouver, ISO, and other styles

4

Frantz, Pascal. "Discretionary write-downs, write-offs, and other restructuring provisions: a signaling approach." Accounting and Business Research 29, no. 2 (1999): 109–21. http://dx.doi.org/10.1080/00014788.1999.9729573.

Full text

APA, Harvard, Vancouver, ISO, and other styles

5

Sandell, Niklas, and Peter Svensson. "Writing write-downs: the rhetoric of goodwill impairment." Qualitative Research in Accounting & Management 14, no. 1 (2017): 81–102. http://dx.doi.org/10.1108/qram-04-2015-0045.

Full text

Abstract:

Purpose The aim of this paper is to study the rhetoric of goodwill impairment, more specifically rhetoric, as it is constructed in the form of accounts (i.e. statements that explain unanticipated or untoward behavior). The authors argue that goodwill impairment is not only a technical matter but also a rhetorical practice by means of which external scrutiny is responded to. Design/methodology/approach The data corpus consists of explanations provided by corporations regarding impairment of goodwill. Data were collected from annual reports from companies quoted on NASDAQ OMX Stockholm, Sweden. The impairment explanations were analyzed according to a taxonomy of account types. The explanations were subjected to close reading to discern the potential rhetorical functions of the different accounts. Findings Seven account types are identified and discussed, namely, excuse, justification, refocusing, concession, mystification, silence and wordification. Research limitations/implications There is a need for further research that explores the process of authorship (i.e. writing, editing, negotiating and revising) through which the texts of financial communication are produced. Practical implications The findings have implications for the future formulations of standards regarding qualitative explanations in financial reporting in general and explanations of goodwill impairment in particular. Originality/value The paper contributes to the knowledge about the use of natural language and rhetoric in financial communication.

APA, Harvard, Vancouver, ISO, and other styles

6

Rees, Lynn, Susan Gill, and Richard Gore. "An Investigation of Asset Write-Downs and Concurrent Abnormal Accruals." Journal of Accounting Research 34 (1996): 157. http://dx.doi.org/10.2307/2491431.

Full text

APA, Harvard, Vancouver, ISO, and other styles

7

Goldberg, Linda, and Mark M. Spiegel. "Debt write-downs and debt—equity swaps in a two-sector model." Journal of International Economics 33, no. 3-4 (1992): 267–83. http://dx.doi.org/10.1016/0022-1996(92)90004-4.

Full text

APA, Harvard, Vancouver, ISO, and other styles

8

Dutta, Sunil, and Panos N. Patatoukas. "Identifying Conditional Conservatism in Financial Accounting Data: Theory and Evidence." Accounting Review 92, no. 4 (2016): 191–216. http://dx.doi.org/10.2308/accr-51640.

Full text

Abstract:

ABSTRACT Using a financial reporting and valuation model, we investigate the construct validity of Basu's (1997) asymmetric timeliness (AT) regression coefficient as a measure of conditional conservatism in corporate financial reporting. We predict that the AT coefficient will be positive even in the absence of conditional conservatism, and it will vary with non-accounting factors even if the degree of conditional conservatism is held constant. Our empirical analysis shows that AT coefficient estimates vary in directions predicted by our theory. Specifically, we find that AT coefficient estimates increase with expected returns and asymmetry in the distribution of returns, and decrease with cash flow persistence. Importantly, we identify the spread between the variances of bad news and good news accruals as an alternative measure of conditional conservatism that is free of the effects confounding the AT coefficient. Consistent with a key implication of conditional conservatism, we find that the variance of bad news accruals is significantly higher than the variance of good news accruals primarily due to conditionally conservative accruals related to inventory write-downs, long-term asset write-downs, and goodwill impairments. A series of placebo tests provides additional support for the construct validity of our alternative measure of conditional conservatism. Data Availability: Data are publicly available from the sources indicated in the text.

APA, Harvard, Vancouver, ISO, and other styles

9

Zhao, Ziye, and Bin Zhang. "The Association between Audit Business Scale Advantage and Audit Quality of Asset Write-downs." China Journal of Accounting Research 1 (June 2008): 51–81. http://dx.doi.org/10.1016/s1755-3091(13)60005-2.

Full text

APA, Harvard, Vancouver, ISO, and other styles

10

Wong, Pauline W. Y. "Are state ownership and auditors’ locality determinants of asset write-downs? Evidence from China." China Journal of Accounting Research 11, no. 4 (2018): 385–405. http://dx.doi.org/10.1016/j.cjar.2018.07.002.

Full text

APA, Harvard, Vancouver, ISO, and other styles

11

Kwon, Sung S., Sungsoo Kim, and Brian Gaber. "Voluntary asset write-downs under SFAS 121: early adopters vis-a-vis late adopters." International Journal of Accounting and Finance 1, no. 1 (2008): 83. http://dx.doi.org/10.1504/ijaf.2008.020238.

Full text

APA, Harvard, Vancouver, ISO, and other styles

12

Chen, Charles J. P., Shimin Chen, Xijia Su, and Yuetang Wang. "Incentives for and Consequences of Initial Voluntary Asset Write‐Downs in the Emerging Chinese Market." Journal of International Accounting Research 3, no. 1 (2004): 43–61. http://dx.doi.org/10.2308/jiar.2004.3.1.43.

Full text

APA, Harvard, Vancouver, ISO, and other styles

13

Beltratti, Andrea, Nasser Spear, and Mark Daniel Szabo. "The Value Relevance and Timeliness of Write-downs During the Financial Crisis of 2007–2009." International Journal of Accounting 48, no. 4 (2013): 467–94. http://dx.doi.org/10.1016/j.intacc.2013.10.008.

Full text

APA, Harvard, Vancouver, ISO, and other styles

14

Steele, G. R. "Austrian Business Cycle Theory, Keynes’s General Theory, Soaring Wheat Prices, and Subprime Mortgage Write-Downs." Quarterly Journal of Austrian Economics 11, no. 2 (2008): 119–22. http://dx.doi.org/10.1007/s12113-008-9037-3.

Full text

APA, Harvard, Vancouver, ISO, and other styles

15

Das, Sanjiv R. "The Principal Principle." Journal of Financial and Quantitative Analysis 47, no. 6 (2012): 1215–46. http://dx.doi.org/10.1017/s0022109012000506.

Full text

Abstract:

AbstractI analyze optimal loan modification schemes in a stochastic home price and stochastic interest-rate environment. Lenders maximize loan values by managing the borrower’s option to default on the loan and prepayment option. Given negative equity, controlling for the borrower’s ability to pay, rate reductions and maturity extensions result in a higher probability of redefault by homeowners even after modification of their loans. In contrast, loan write-downs (the Principal Principle), not a favored recipe, are value maximizing for the lender. A shared-appreciation mortgage enhances the ability to pay, mitigates adverse selection, and reduces the present value of expected deadweight foreclosure costs.

APA, Harvard, Vancouver, ISO, and other styles

16

VYAS, DUSHYANTKUMAR. "The Timeliness of Accounting Write-Downs by U.S. Financial Institutions During the Financial Crisis of 2007-2008." Journal of Accounting Research 49, no. 3 (2011): 823–60. http://dx.doi.org/10.1111/j.1475-679x.2011.00410.x.

Full text

APA, Harvard, Vancouver, ISO, and other styles

17

Wiszniowski, Edward. "Balance Sheet and Tax Aspects of Bank Debt Remission." Olsztyn Economic Journal 9, no. 2 (2014): 119–28. http://dx.doi.org/10.31648/oej.3169.

Full text

Abstract:

Tax and balance sheet aspects of bank debt redemption. This paper is devoted to the redemption of bank liabilities, which constitutes one of the tools used by banks in the re-structuring of borrowers' debts. This is not an optimal form of shaping the relationship between the creditor and the debtor but under certain conditions, in the case of a partial redemption or redemption of a certain components of the debt, it may at least partially off-set the outstanding claims of the creditor. From the point of view of the banks, in the case of debt relief, tax laws should be considered restrictive as they contain a very limited cost catalogue qualifying them to be considered as revenue costs. From the perspective of the balance sheet, liability redemption tends to be the most neutral because the banks are obligated to perform regular write-downs on receivables. Debt redemption usually occurs after possible execution alternatives against the debtor have been pursued, and therefore when a full write-down has been created on bank's liability.

APA, Harvard, Vancouver, ISO, and other styles

18

Naimy, Viviane Y. "Liquidity Planning Between Theory And Practice: An Overall Examination Of The GCC Banks During The Crisis Du Jour." Journal of Business Case Studies (JBCS) 5, no. 6 (2009): 1–12. http://dx.doi.org/10.19030/jbcs.v5i6.4727.

Full text

Abstract:

After giving a rundown on banks liquidity risk and management, and suggesting a simple model aiming at improving the efficiency of banks liquidity management, this paper gauges the possible impact of the current crisis on the GCC economies, specifically the exposure of banks to asset write-downs, and rising costs of finance coupled with tight liquidity. The current outlook is exceptionally uncertain, with risks still weighing on the downside. The banking system appears adequately capitalized and highly profitable, but risks of a future deterioration of asset quality are still threatening the banks financial situation. Fundamental measures should be taken in order to strengthen the banking supervision to contain the fiscal risks related to the emergency liquidity facilities.

APA, Harvard, Vancouver, ISO, and other styles

19

Stępień, Konrad. "Estimated values: the provisions and the write-downs of assets as tools to manipulate financial results of enterprises." Copernican Journal of Finance & Accounting 4, no. 1 (2015): 157. http://dx.doi.org/10.12775/cjfa.2015.011.

Full text

APA, Harvard, Vancouver, ISO, and other styles

20

McDonald, Robert, and Anna Paulson. "AIG in Hindsight." Journal of Economic Perspectives 29, no. 2 (2015): 81–106. http://dx.doi.org/10.1257/jep.29.2.81.

Full text

Abstract:

The near-failure on September 16, 2008, of American International Group (AIG) was an iconic moment in the financial crisis. Two large bets on real estate made with funding vulnerable to bank-run-like dynamics pushed AIG to the brink of bankruptcy. AIG used securities lending to transform insurance company assets into residential mortgage-backed securities and collateralized debt obligations, ultimately losing at least $21 billion and threatening the solvency of the life insurance companies. AIG also sold insurance on multisector collateralized debt obligations, backed by real estate assets, ultimately losing more than $30 billion. These activities were apparently motivated by a belief that AIG's real estate bets would not suffer defaults and were “money-good.” We find that these securities have in fact suffered write-downs and that the stark “money-good” claim can be rejected. Ultimately, both liquidity and solvency were issues for AIG.

APA, Harvard, Vancouver, ISO, and other styles

21

Asadi, Mehdi, Foad Pour Arian, Hussein Abadian, and Mohammad Hasan Raz Nahan. "Police Department and Press Censorship in the First Pahlavi Era." Asian Social Science 12, no. 11 (2016): 54. http://dx.doi.org/10.5539/ass.v12n11p54.

Full text

Abstract:

<p>The press as the most important mass media and as a tool for directing public opinion in the First Pahlavi Era faced many ups and downs. Alteration in the political system, the tendency toward dictatorship government and the implementation of pseudo-modernist programs affect the existence of press. In this period, the press had to write in congruence and in sync with the government programs, otherwise they were no longer survival. The synchronization of press with the government programs and the censorship of public opinion, against the government were entrusted to the Police Department. The press censorship, contrary to common view, was not done in a systematic and specified framework and structure and, depending on the King’s view, the civilian statesmen, staffs and police chiefs were different. The present article tries to analyze the way of implementation of censorship policy and the extent of penetration and interference of police department in this case through using descriptive and analytical method.</p>

APA, Harvard, Vancouver, ISO, and other styles

22

Laux, Christian, and Christian Leuz. "Did Fair-Value Accounting Contribute to the Financial Crisis?" Journal of Economic Perspectives 24, no. 1 (2010): 93–118. http://dx.doi.org/10.1257/jep.24.1.93.

Full text

Abstract:

The recent financial crisis has led to a major debate about fair-value accounting. Many critics have argued that fair-value accounting, often also called mark-to-market accounting, has significantly contributed to the financial crisis or, at least, exacerbated its severity. In this paper, we assess these arguments and examine the role of fair-value accounting in the financial crisis using descriptive data and empirical evidence. Based on our analysis, it is unlikely that fair-value accounting added to the severity of the 2008 financial crisis in a major way. While there may have been downward spirals or asset-fire sales in certain markets, we find little evidence that these effects are the result of fair-value accounting. We also find little support for claims that fair-value accounting leads to excessive write-downs of banks' assets. If anything, empirical evidence to date points in the opposite direction, that is, toward the overvaluation of bank assets during the crisis.

APA, Harvard, Vancouver, ISO, and other styles

23

Cready, William M., Thomas J. Lopez, and Craig A. Sisneros. "Negative Special Items and Future Earnings: Expense Transfer or Real Improvements?" Accounting Review 87, no. 4 (2012): 1165–95. http://dx.doi.org/10.2308/accr-50152.

Full text

Abstract:

ABSTRACT Burgstahler et al. (2002) investigate the implications of special items for future earnings and report that firms use negative special items to accelerate the recognition of future expenses into the current period. That is, negative special items serve as an “inter-period transfer” device. We extend their analysis and find that earnings increase in post-special item quarters beyond the four quarters considered in Burgstahler et al. (2002). In particular, we find that future earnings increase over the subsequent 16 quarters by more than 130 percent of the reported negative special item. The earnings increases are greater for restructuring charges than for asset write-downs or goodwill impairment charges. Such patterns suggest that negative special items also signal real future performance improvements (i.e., performance improvement hypothesis) in addition to inter-period expense transfer (i.e., inter-period transfer hypothesis). Moreover, the real improvement effect appears to be driven by restructuring charges, the most prevalent type of special item.

APA, Harvard, Vancouver, ISO, and other styles

24

Banker, Rajiv D., Sudipta Basu, and Dmitri Byzalov. "Implications of Impairment Decisions and Assets' Cash-Flow Horizons for Conservatism Research." Accounting Review 92, no. 2 (2016): 41–67. http://dx.doi.org/10.2308/accr-51524.

Full text

Abstract:

ABSTRACT Accountants examine multiple indicators when assessing whether individual assets are impaired. Different indicators predict cash flows over varying time horizons, and their importance varies with how far into the future individual assets are expected to generate cash flows. We predict that earnings exhibits asymmetric timeliness with respect to multiple indicators, including stock return, sales change, and operating cash flow change, which differentially explain write-downs of current assets, long-lived tangible assets, and indefinite-lived goodwill. We predict an interaction effect between indicators, such that the total impact of several consistent indicators is greater than the sum of their individual impacts. Empirical estimates for U.S. firms are consistent with our predictions and yield new insights about the effects of multiple indicators for both conservatism and impairment research. Our multi-indicator asymmetric models also change inferences about the relative explanatory power of economic factors versus reporting incentives in asset impairments. JEL Classifications: G32; L25; M41; M42.

APA, Harvard, Vancouver, ISO, and other styles

25

Jamieson, Eric D. "Crunch Mining: The Logistics of Western Canadian Export Coal Supply." Energy Exploration & Exploitation 12, no. 5 (1994): 393–416. http://dx.doi.org/10.1177/014459879401200506.

Full text

Abstract:

Since its revitalization in 1968 the Western Canadian bituminous coal industry has operated almost exclusively in export markets. As a result, coal sales have been subject to external demand and pricing forces beyond the control of Canadian companies and governments. The recession that affected all industrialized nations in the early 1980s compounded by the world oil price collapse of 1986 initiated a period of low coal prices, intensified competition among producers and oversupply of internationally traded coal. The attritional effects of this adverse marketing regime became serious for Western Canadian metallurgical coal producers after 1989 and reached crisis proportions in 1992. Major coal industry restructuring involving corporate consolidation and substantial write-downs of financial assets quickly followed. Four companies emerged from the restructuring process with 90–95% of potentially reduced regional production capacity and appear to be in reasonably solid positions to compete viably under current marketing conditions. The next major crunch for the industry looms in 1998 when initial 15 year contracts come up for renewal at several mines and serious concerns arise over their ability to operate economically beyond then.

APA, Harvard, Vancouver, ISO, and other styles

26

Ryan, Stephen G., Jennifer Wu Tucker, and Ying Zhou. "Securitization and Insider Trading." Accounting Review 91, no. 2 (2015): 649–75. http://dx.doi.org/10.2308/accr-51230.

Full text

Abstract:

ABSTRACT Securitizations are complex and opaque transactions. We hypothesize that bank insiders trade on private information about banks': (1) securitization-related recourse risks, (2) not-yet-reported current-quarter securitization income, and (3) securitization-based business model sustainability. We provide evidence that proxies for each of these types of insider information are positively associated with insider trading. Specifically, we find that net insider sales in the 2001Q2–2007Q2 pre-financial crisis quarters predict not-yet-reported non-performing securitized loans and securitization income for those quarters, and that net insider sales during 2006Q4 predict write-downs of securitization-related assets during the 2007Q3–2008Q4 crisis period. We find that net insider sales are more negatively associated with banks' subsequent stock returns in their securitization quarters than in other quarters. In supplemental analysis, we show that the above findings are driven by trades by banks' CEOs and CFOs, and that insiders avoid larger stock price losses through 10b5-1 plan sales than through non-plan sales. Data Availability: All data are available from public sources.

APA, Harvard, Vancouver, ISO, and other styles

27

Pollard, Kellie, Claire Smith, Jasmine Willika, et al. "Indigenous views on the future of public archaeology in Australia." AP: Online Journal in Public Archaeology 10 (March 21, 2021): 31. http://dx.doi.org/10.23914/ap.v10i0.293.

Full text

Abstract:

This paper was written in response to a request by the editors of the AP: Online Journal of Public Archaeology, Jaime Almansa Sánchez and Elena Papagiannopoulou, for Claire Smith to write on the future of public archaeology in Australia. In Australia, public archaeology focusses on high profile colonial sites such as The Rocks in Sydney (Karskens 1999) and Port Arthur in Tasmania (Steele et al. 2007; Frew 2012), tourism (e.g. Cole and Wallis 2019) or enhancing school curricula (Nichols et al. 2005; Owens and Steele 2005). However, given her decades-long relationships with Jawoyn and Ngadjuri people (Smith 1999; Smith et al. 2016; Smith et al. 2020), Claire Smith decided that a useful way of approaching this topic would be to obtain Indigenous views on the subject. Accordingly, she contacted the Aboriginal co-authors of this article and invited them to co-author the paper. The possibility to write in free form was a boon. The ‘conversation’ format we settled on was designed to facilitate the voices of individuals, to present a range of Indigenous views, to allow people to express their views frankly, and to deal with the constraints of people being located in different parts of Australia as well as occasional lock-downs due to COVID-19. We decided on five topics/questions that would be the basis of the conversation. Each Aboriginal author gave their views either by email or by phone. These views were interwoven into a ‘conversation’. The language has been edited lightly for clarity and to simulate a real-life conversation. The final text was approved by all authors.

APA, Harvard, Vancouver, ISO, and other styles

28

Abernathy, John L., Brooke Beyer, Jimmy F. Downes, and Eric T. Rapley. "High-Quality Information Technology and Capital Investment Decisions." Journal of Information Systems 34, no. 3 (2019): 1–29. http://dx.doi.org/10.2308/isys-52634.

Full text

Abstract:

ABSTRACT We examine the effect of high-quality information technology (IT) on management's capital investment decisions. Evaluating capital investment decisions with contemporary investment efficiency and long-term measures of investment effectiveness, we document a positive relation between high-quality IT and capital investment decision quality. In particular, we find high-quality IT is associated with more optimal levels of investment as well as fewer future fixed asset write-downs. We also disaggregate investment efficiency and find the relation with IT quality holds for investment decisions related to capital expenditures and acquisitions, but not research and development expenditures. Overall, our results suggest managers equipped with better internal information from higher-quality IT are able to make superior capital investment decisions. Our study contributes to the literature by providing evidence of a significant determinant of capital investment decision quality and documenting a specific mechanism that mediates the indirect effect of IT quality on future performance. JEL Classifications: D83; E22; G31; M15; M41. Data Availability: We thank InformationWeek for providing annual rankings that were previously published. All other data are publicly available from regulatory filings; we obtained data from the Compustat, Execucomp, and I/B/E/S databases.

APA, Harvard, Vancouver, ISO, and other styles

29

Barth, Mary E., Leslie D. Hodder, and Stephen R. Stubben. "Fair Value Accounting for Liabilities and Own Credit Risk." Accounting Review 83, no. 3 (2008): 629–64. http://dx.doi.org/10.2308/accr.2008.83.3.629.

Full text

Abstract:

We find that equity returns associated with credit risk changes are attenuated by the debt value effect of the credit risk changes, as Merton (1974) predicts. We find that the relation between credit risk changes and equity returns is significantly less negative for firms with more debt—controlling for asset value changes, credit risk increases (decreases) are associated with equity value increases (decreases). This result obtains across credit risk levels. The relation is associated with changes in both expected cash flows and systematic risk, as reflected in analyst earnings forecasts and equity cost of capital. By inverting the Merton (1974) model, we provide descriptive evidence that if unrecognized debt value changes were recognized in income, but not unrecognized asset value changes, most credit upgrade (downgrade) firms would recognize lower (higher) income. These potentially counterintuitive income effects primarily are attributable to incomplete recognition of contemporaneous asset value changes. However, for a substantial majority of downgrade firms we find that recognized asset write-downs exceed unrecognized gains from debt value decreases. This mitigates concerns that income effects from recognizing changes in debt values would be anomalous for such firms.

APA, Harvard, Vancouver, ISO, and other styles

30

Nagar, Neerav, and Kaustav Sen. "Do financially distressed firms misclassify core expenses?" Accounting Research Journal 30, no. 2 (2017): 205–23. http://dx.doi.org/10.1108/arj-04-2015-0054.

Full text

Abstract:

Purpose This paper aims to examine whether financially distressed firms manipulate core or operating income through the misclassification of operating expenses as income-decreasing special items. Design/methodology/approach This sample comprises firms in the USA with data from 1989 to 2010. The authors used the methodology given in McVay (2006) and multiple regressions. Findings Managers of financially distressed firms are more likely to inflate core or operating income as compared to the healthy firms to meet or beat earnings benchmarks. They do so by misclassifying core or operating expenses as income-decreasing special items. Specifically, core expenses are shifted to income-decreasing special items like goodwill impairments, settlement costs, restructuring costs and write downs. Practical implications The paper sheds light on an important firm characteristic, financial distress that intensifies classification shifting – an earnings management tool which auditors, investors and regulators find tough to detect. The findings have implications for investors, as they fail to comprehend such shifting (McVay, 2006); analysts, who issue forecasts based on street earnings; lenders, as distressed firms may be concealing their true performance; and regulators, as the misclassification of income statement items is a violation of accounting principles. Originality/value The authors extend the literature on accruals and real earnings management by the financially troubled firms and present first evidence that the managers of such firms also manipulate core or operating income through classification shifting.

APA, Harvard, Vancouver, ISO, and other styles

31

Jamieson, Eric D. "Corporate Concentration in the Western Canadian Coal Industry." Energy Exploration & Exploitation 13, no. 4 (1995): 341–59. http://dx.doi.org/10.1177/014459879501300406.

Full text

Abstract:

The Western Canadian coal industry went into crisis in 1992 as a result of the attritional effects of several years of low international prices for metallurgical and thermal coal products in a buyers' market. The adverse marketing conditions for producers were exacerbated by growing financial burdens imposed by increasing capital charges and high operating costs as well as operating problems stemming from a general lack of investment for development and equipment renewal. The crisis led to massive write-downs by several companies and bankruptcy of the largest producer in British Columbia. Co-incidentally with the financial crisis one of the less affected companies became involved in a prolonged strike so that the overall production loss for 1992 amounted to 8.5 Mt or 33% or normal BC coal output. As a result of these events the industry underwent comprehensive restructuring from which four diversified Canadian coal and mining companies emerged with substantially reduced collective capital liabilities as the new backbone of the industry. In the two years since the crisis, recovery of lost markets and redevelopment of the affected BC mines have restored production to 85% of pre-1992 levels on a much-improved financial basis, and expansion plans for 1995 call for a full return to pre-crisis production levels. However, the longer term outlook is grim for two operations and doubtful for a third as existing 15-year contracts expire in 1998 and are unlikely to be renewed under equivalent terms. Closure of the mines involved is a distinct possibility with permanent loss of 6–8 Mtpy of Western Canadian export capability.

APA, Harvard, Vancouver, ISO, and other styles

32

Venema, Koen. "Foreword – The importance of a healthy microbiota in the era of COVID-19." Beneficial Microbes 12, no. 1 (2021): 1–3. http://dx.doi.org/10.3920/bm2021.x001.

Full text

Abstract:

At the start of 2020 we were thrilled to have reached 10 years of Beneficial Microbes! Little did we know that soon after Europe and the rest of the world (with Asia already earlier) would be in lock-down due to COVID-19. It has been a strange year. And now, at the start of 2021, the excitement of having a vaccine is tempered by the fact that everywhere mutants of the virus pop up. Although this was likely to occur, as also the influenza virus keeps mutating, it means that at the moment it is unclear as to whether the current situation of lock-downs and social distancing will remain for a longer period than we had anticipated and hoped for at the end of 2020 when it became clear that several vaccines were efficacious. Some studies have shown a role of the gut microbiota composition in disease severity, together with vitamin D, cholesterol and other factors. It was a hype to write a ‘review’ on gut microbiota and the effect on COVID-19, and also the board of Beneficial Microbes has received several submissions of so-called reviews on the topic. However, all of them were rejected, as they were mere speculations about how the gut microbiota might affect virus infection and disease severity, without any data whatsoever. However, there are some good studies out there that have shown that a proper gut microbiota may indeed influence disease severity, such as recently reviewed by Kim (2021). All in all, this may not be too surprising for the knowledgeable reader, as they would know that the microbiota plays a role in everything that can be wrong with us!

APA, Harvard, Vancouver, ISO, and other styles

33

Spanner, Maximilian M., and Julia Wein. "Carbon risk real estate monitor: making decarbonisation in the real estate sector measurable." Journal of European Real Estate Research 13, no. 3 (2020): 277–99. http://dx.doi.org/10.1108/jerer-05-2020-0031.

Full text

Abstract:

Purpose The purpose of this paper is to investigate the functionality and effectiveness of the Carbon Risk Real Estate Monitor (CRREM tool). The aim of the project, supported by the European Union’s Horizon 2020 research and innovation program, was to develop a broadly accepted tool that provides investors and other stakeholders with a sound basis for the assessment of stranding risks. Design/methodology/approach The tool calculates the annual carbon emissions (baseline emissions) of a given asset or portfolio and assesses the stranding risks, by making use of science-based decarbonisation pathways. To account for ongoing climate change, the tool considers the effects of grid decarbonisation, as well as the development of heating and cooling-degree days. Findings The paper provides property-specific carbon emission pathways, as well as valuable insight into state-of-the-art carbon risk assessment and management measures and thereby paves the way towards a low-carbon building stock. Further selected risk indicators at the asset (e.g. costs of greenhouse gas emissions) and aggregated levels (e.g. Carbon Value at Risk) are considered. Research limitations/implications The approach described in this paper can serve as a model for the realisation of an enhanced tool with respect to other countries, leading to a globally applicable instrument for assessing stranding risks in the commercial real estate sector. Practical implications The real estate industry is endangered by the downside risks of climate change, leading to potential monetary losses and write-downs. Accordingly, this approach enables stakeholders to assess the exposure of their assets to stranding risks, based on energy and emission data. Social implications The CRREM tool reduces investor uncertainty and offers a viable basis for investment decision-making with regard to stranding risks and retrofit planning. Originality/value The approach pioneers a way to provide investors with a profound stranding risk assessment based on science-based decarbonisation pathways.

APA, Harvard, Vancouver, ISO, and other styles

34

Almufarrij, Ibrahim, Harvey Dillon, and Kevin J. Munro. "Is the outcome of fitting hearing aids to adults affected by whether an audiogram-based prescription formula is individually applied? A systematic review protocol." BMJ Open 11, no. 8 (2021): e045899. http://dx.doi.org/10.1136/bmjopen-2020-045899.

Full text

Abstract:

IntroductionHearing aids are typically programmed using the individual’s audiometric thresholds. Developments in technology have resulted in a new category of direct-to-consumer devices, which are not programmed using the individual’s audiometric thresholds. This review aims to identify whether programming hearing aids using the individual’s audiogram-based prescription results in better outcomes for adults with hearing loss.Methods and analysisThe methods of this review are reported in line with Preferred Reporting Items for Systematic Reviews and Meta-Analyses Protocols guidelines. On 23 August 2020, eight different databases were systematically searched without any restrictions: EMBASE, MEDLINE, PubMed, PsycINFO, Web of Science, Cochrane Library, Emcare and Academic Search Premier. To ensure that this review includes the most recent evidence, the searches will be repeated at the final write-up stage. The population of interest of this review will be adults with any degree or type of hearing loss. The studies should compare hearing aids programmed using an audiogram-based prescription (and verified in the real ear) with those not programmed on the basis of the individual’s audiogram. The primary outcome of interest is consumers’ listening preferences. Hearing-specific health-related quality of life, self-reported listening ability, speech intelligibility of words and sentences in quiet and noisy situations, sound quality ratings and adverse events are the secondary outcomes of interest. Both randomised and non-randomised controlled trials will be included. The quality of each individual study and the overall evidence will be assessed using Downs and Black’s checklist and the Grading of Recommendations, Assessment, Development and Evaluations tool, respectively.Ethics and disseminationWe will only retrieve and analyse data from published studies, so no ethical approval is required. The review findings will be published in a peer-reviewed journal and presented at scientific conferences.PROSPERO registration numberCRD42020197232.

APA, Harvard, Vancouver, ISO, and other styles

35

Pezzuto, Ivo. "Miraculous financial engineering or toxic finance? The genesis of the U.S. subprime mortgage loans crisis and its consequences on the global financial markets and real economy." Journal of Governance and Regulation 1, no. 3 (2012): 114–25. http://dx.doi.org/10.22495/jgr_v1_i3_c1_p5.

Full text

Abstract:

In the fall of 2008, the U.S. subprime mortgage loans defaults have turned into Wall Street’s biggest crisis since the Great Depression. As hundreds of billions in mortgage-related investments went bad, banks became suspicious of one another’s potential undisclosed credit losses and preferred to reduce their exposure in the interbank markets, thus causing interbank interest rates and credit default swaps increases, a liquidity shortage problem and a worsened credit crunch condition to consumers and businesses. Massive cash injections into money markets and interest rates reductions have been assured by central banks in an attempt to shore up banks and to restore confidence within the financial system. Even Governments have promoted bail-out deal agreements, protections from bankruptcies, recapitalizations and bank nationalizations in order to rescue banks from disastrous bankruptcies. The credit crisis originated in the previous years when the Federal Reserve sharply lowered interest rates (Fed Funds at 1%) to limit the economic damage of the stock market decline due to the 2000 dot.com companies’ crisis. Lower interest rates made mortgage payments cheaper, and the demand for homes began to rise, sending prices up. In addition, millions of homeowners took advantage of the rate drop to refinance their existing mortgages. As the industry ramped up, the quality of the mortgages went down due to poor credit origination and credit risk assessment. Delinquency and default rates began to rise in 2006 as interest rates rose (Fed Funds at 5,25%) and poor households across the US struggled to pay off their mortgages. Many of them went bankrupt and lost their homes but the pace of lending did not slow. Banks have transformed much of the high-risk mortgage debt (securitizations) into mortgage-backed securities (MBS) and collateralised debt obligations (CDO), and have sold these assets on the financial markets to investment firms and insurance companies around the world, transferring to these investors the rights to the mortgage payments and the related credit risk. With the collapse of the first banks and hedge funds in 2007 the rising number of foreclosures helped speed the fall of housing prices, and the number of prime mortgages in default began to increase. As many CDO products were held on a “mark to market” basis, the paralysis in the credit markets and the collapse of liquidity in these products let to the dramatic write-downs in 2007. When stock markets in the United States, Europe and Asia continued to plunge, leading central banks took the drastic step of a coordinated cut in interest rates and Governments coordinated actions that included taking equity stakes in major banks. This paper written by the Author (on October 7th, 2008) at the rise of these dramatic events, aims to demonstrate, through solid and fact-based assumptions, that this dramatic global financial crisis could have been addressed and managed earlier and better by many of the stakeholders involved in the subprime mortgage lending process such as, banks’ and investment funds management, rating agencies, banking and financial markets supervisory authorities. It also unfortunately demonstrates the corporate social responsibility failure and the moral hazard of many key players involved in this crisis, since a lot of them probably knew quite well what was happening but have preferred not to do anything or to do little and late in order to change the dramatic course of the events.

APA, Harvard, Vancouver, ISO, and other styles

36

Ghosal, Sayantan, and Kannika Thampanishvong. "Optimal Sovereign Debt Write-Downs." SSRN Electronic Journal, 2007. http://dx.doi.org/10.2139/ssrn.993473.

Full text

APA, Harvard, Vancouver, ISO, and other styles

37

Dontoh, Alex, Fayez A. Elayan, Joshua Ronen, and Tavy Ronen. "Unfair “Fair Value” in Illiquid Markets: Information Spillover Effects in Times of Crisis." Management Science, December 16, 2020. http://dx.doi.org/10.1287/mnsc.2020.3737.

Full text

Abstract:

We investigate the effects of write-downs on market prices and volumes under fair value accounting. We also examine the prominent role that illiquidity plays in exacerbating the direct and spillover effects of exit valuation on equity and credit default swap (CDS) markets. Using hand-collected data on write-down announcements made during and after the 2007–2009 financial crisis, we find that firms that wrote down assets in accordance with fair value rules experience significant abnormal negative stock returns and spikes in the CDS premiums written on their obligations; similar firms without write-downs exhibit sympathetic and significant negative abnormal returns and positive premiums. We find that both the direct effect of the write-downs and the indirect spillover effects resulting from crisis-related illiquidity in the markets for financial assets (affecting the magnitude of write-downs) and in the securities markets (affecting the reaction to the write-downs) during the financial crisis go beyond normal direct and information transfer effects and may have contributed to the adverse consequences of the crisis. This paper was accepted by Shiva Rajgopal, accounting.

APA, Harvard, Vancouver, ISO, and other styles

38

Chen, Hui, Srinivasan Rangan, and Steve Rock. "Inventory Write-Downs in the Semiconductor Industry." SSRN Electronic Journal, 2016. http://dx.doi.org/10.2139/ssrn.2866234.

Full text

APA, Harvard, Vancouver, ISO, and other styles

39

Chen, Hui, Srinivasan Rangan, and Steve Rock. "Inventory Write-Downs in the Semiconductor Industry." SSRN Electronic Journal, 2015. http://dx.doi.org/10.2139/ssrn.2836431.

Full text

APA, Harvard, Vancouver, ISO, and other styles

40

Laurion, Henry, James Ryans, and Samuel T. Tan. "Segment Management to Delay Goodwill Write-downs." SSRN Electronic Journal, 2014. http://dx.doi.org/10.2139/ssrn.2473896.

Full text

APA, Harvard, Vancouver, ISO, and other styles

41

Ghosal, Sayantan, and Kannika Thampanishvong. "The Millennium Development Goals and Sovereign Debt Write-Downs." SSRN Electronic Journal, 2007. http://dx.doi.org/10.2139/ssrn.1025878.

Full text

APA, Harvard, Vancouver, ISO, and other styles

42

"Write-downs to ICI take Akzo into the red." Focus on Powder Coatings 2009, no. 4 (2009): 4–5. http://dx.doi.org/10.1016/s1364-5439(09)70058-9.

Full text

APA, Harvard, Vancouver, ISO, and other styles

43

Larson, Chad R., Danko Turcic, and Fuqiang Zhang. "Inventory Write-Downs, Sales Growth, and Ordering Policy: An Empirical Investigation." SSRN Electronic Journal, 2011. http://dx.doi.org/10.2139/ssrn.1762892.

Full text

APA, Harvard, Vancouver, ISO, and other styles

44

Ai, Dandan. "Regulation and Conservatism: An Examination of Asset Write-Downs in Chinese Market." SSRN Electronic Journal, 2008. http://dx.doi.org/10.2139/ssrn.1263110.

Full text

APA, Harvard, Vancouver, ISO, and other styles

45

Chan, Yee Chuann, Wei‐Kang Wang, and Wen‐Min Lu. "The effects of overproduction on future firm performance and inventory write‐downs." International Transactions in Operational Research, October 10, 2019. http://dx.doi.org/10.1111/itor.12734.

Full text

APA, Harvard, Vancouver, ISO, and other styles

46

Giacomino, Don E., and Michael D. Akers. "Goodwill And Goodwill Write-Downs: Their Effects On Earnings Quality For 2008 And 2009." Journal of Business & Economics Research (JBER) 7, no. 11 (2011). http://dx.doi.org/10.19030/jber.v7i11.2351.

Full text

Abstract:

This paper examines goodwill on corporate balance sheets. Specifically, the paper measures the extent to which goodwill exists on corporate balance sheets and the degree of goodwill write-downs that have occurred recently. We report on our study and a study by Intangible Business, which show that many firms carry substantial amounts of goodwill on their 2008 balance sheets. Thus, because of the recent downturn in the economy and the markets, the potential for big bath earnings management for 2008 and 2009 exists. In addition, because of reductions in expected returns on pension plan assets, many firms are likely to record much higher pension expenses. We expect that the combination of goodwill impairments and increased pension expense will have significant effects on both the amount and the quality of earnings for 2008 and, possibly, 2009.

APA, Harvard, Vancouver, ISO, and other styles

47

Vyas, Dushyantkumar. "The Timeliness of Write-Downs by U.S. Financial Institutions During the Financial Crisis of 2007-2008." SSRN Electronic Journal, 2010. http://dx.doi.org/10.2139/ssrn.1570083.

Full text

APA, Harvard, Vancouver, ISO, and other styles

48

Vyas, Dushyantkumar. "The Timeliness of Write-Downs by U.S. Financial Institutions during the Financial Crisis of 2007-2008." SSRN Electronic Journal, 2009. http://dx.doi.org/10.2139/ssrn.1464340.

Full text

APA, Harvard, Vancouver, ISO, and other styles

49

Jordan, Charles E., Stanley J. Clark, and Carol E. Vann. "Using Goodwill Impairment To Effect Earnings Management During SFAS No. 142s Year Of Adoption And Later." Journal of Business & Economics Research (JBER) 5, no. 1 (2011). http://dx.doi.org/10.19030/jber.v5i1.2510.

Full text

Abstract:

Prior research (Bens and Heltzer, 2004) shows that the market penalizes firms less for reporting goodwill write-downs below-the-line than it does for presenting them above-the-line. Only in 2002, the year SFAS No. 142 became effective, did goodwill impairments enjoy below-the-line treatment. The current research provides evidence that firms “cherry picked” this year to recognize large impairment losses, thus removing much of the burden from future years when these losses otherwise would have been reported above-the-line. The study also indicates that, even though the number of firms taking goodwill write-offs declined subsequent to 2002, those entities that did so seemed to be taking these discretionary hits because earnings were already depressed in the current year. As such, the big bath earnings management observed in the year of adoption in previous studies (Jordan and Clark, 2004 and 2005) appears to continue even though these impairment losses no longer receive favorable below-the-line treatment.

APA, Harvard, Vancouver, ISO, and other styles

50

Dräger, Vanessa, Lotta Heckmann-Draisbach, and Christoph Memmel. "Interest and credit risk management in German banks." German Economic Review, June 19, 2020. http://dx.doi.org/10.1515/ger-2019-0114.

Full text

Abstract:

AbstractUsing unique data of a survey among small and medium-sized German banks, we analyze various aspects of risk management. We especially analyze the effect of a 200-bp increase in the interest level. We find that banks seem to reduce the volatility of their net interest margin by exposing themselves to interest rate risk, that they act as if they have a risk budget which they allocate either to interest rate risk or credit risk and that banks’ exposures to interest rate risk and to credit risk are remunerated. In addition, we find that, in the first year, the impairments of banks’ bond portfolios are much larger than the reductions in their net interest income, that banks attenuate the resulting write-downs by liquidating hidden reserves and that banks which use interest derivatives have lower impairments in their bond portfolios.

APA, Harvard, Vancouver, ISO, and other styles

Journal articles on the topic 'Write-Downs'

Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles