Financial distress - Some Models for the Evolution of Financial Statement Data

The earliest distress prediction models were based primarily on accounting information.

They have since been supplemented by structural models such as KMV, but structural models require a market in relevant securities, and so banks evaluate the credit risk of their portfolios (much of which consists of privately held companies with no traded securities) primarily using accounting-based models for which they collect the required data from their clients. The classic, and still widely-quoted, model is by Altman (1968):

in a version that does not use any market data (Altman, 1993) it is Z = 0.717CA−CL

A + 0.847RE

A + 3.107EBIT

A + 0.420A−L

L + 0.998S

A (32) Of course, not all firms with a poor Z score actually default. Corrective management action or fortunate improvements in product markets may rescue a distressed firm, share- holders may recapitalize it, or it may be taken over. But it is also worthy of note that a single value of Z may be produced by a wide range of different vectors x, and the

and hence different future paths of Z itself. One firm may recover rapidly, another may go rapidly downhill, and yet another may linger in a distressed state for a long time.

Equation (17), applied to a vector that includes A, L, CA, CL, S, Contributed Capital, Interest Expense, and suitable components of Tax Expense, can give a forecast of Z and hence a more refined understanding of the likely outcome for a distressed firm.

8 Limitations

The model of equation (15) and (17) makes several fundamental assumptions:

1. Future values of accounting variables are caused only by current values of the same accounting variables, plus unexplained random disturbances. The disturbances, of course, bring in the real-world events which actually cause the corporate financial history. In one sense, equation (15) is a tautology, since it may be treated as a definition of the disturbances that are consistent with the actually observed x_t. Both accounting research and financial statement analysis then become questions about the history, future, and causes of these disturbances.

2. The simplest assumption, that ε_t comprises multivariate-normal disturbances with zero mean and constant covariance matrix, must be too simple. Even before con- sidering the external forces that drive the shocks, it is clear that shocks for different variables in the same firm-year are highly correlated (see the correlations between residuals for Sales and Assets in Tables 2–6). However, applying Seemingly Un- related Regression to allow for contemporaneously correlated disturbances in the different components of the vector appears to make no practical difference in esti- mation, so this limitation may not be practically important.

3. The model assumes, and requires, that the variables in x_t are strictly positive. If any x_i,t is zero, equation (18) shows that all variables for this firm must be zero for all future years. Since relevant accounting variables are almost never zero (although missing values may be coded as zero), this assumption is not very damaging; but it is clearly not correct. Replacing the log function with the sinh⁻¹ transformation of equation (27) would correct this, though at a cost in additional complexity. Given the other limitations of the model, it is not clear whether this refinement would be worthwhile.

However, the model does correct many of the mathematical problems with conventional models such as Ronen and Yaari’s equation (9.1) and the variants of the Jones model.

By moving attention away from the large and highly heteroscedastic accounting variables to residuals that are of roughly uniform size and have (to a first approximation) simply defined properties, the model may open the way to more powerful methods of research using financial statement data.

References

Aitchison, J. and Brown, J. A. C. (1966). The Lognormal Distribution. Cambridge University Press.

Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance, 23(4):589–609.

Altman, E. I. (1993). Corporate financial distress and bankruptcy: A complete guide to predicting and avoiding distress and profiting from bankruptcy. Wiley, 2nd ed edition.

Altman, E. I., Haldeman, R. G., and Narayanan, P. (1977). Zeta^TM analysis: A new model to identify bankruptcy risk of corporations. Journal of Banking & Finance, 1(1):29–54.

Ashton, D., Dunmore, P., and Tippett, M. (2004). Double entry bookkeeping and the distributional properties of a firm’s financial ratios. Journal of Business Finance and Accounting, 31(5-6):583–606.

Burns, N. and Kedia, S. (2006). The impact of performance-based compensation on misreporting. Journal of Financial Economics, 79:35–67.

Dechow, P. M. and Schrand, C. M. (2004). Earnings Quality. Research Foundation of CFA Institute.

Dunmore, P. V. (Forthcoming). Temporal properties of financial variables, ratios and their polar-coordinate bearings. In McLeay, S. and Christodoulou, D., editors, Advanced Methods and Applications in Financial Analysis. Cambridge University Press.

El-Gazzar, S., Lilien, S., and Pastena, V. (1989). The use of off-balance sheet financing to circumvent financial covenant restrictions. Journal of Accounting, Auditing & Finance, 4(2):217–231.

Feltham, G. A. and Ohlson, J. A. (1995). Valuation and clean surplus accounting for operating and financial activities. Contemporary Accounting Research, 11(2):689 – 731.

Frankel, R. and Litov, L. (2009). Earnings persistence. Journal of Accounting & Eco- nomics, 47(1/2):182–190.

Healy, P. M. (1985). The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics, 7:85–107.

Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2):193–228.

Lo, C. F. (2012). The sum and difference of two lognormal random variables. Journal of Applied Mathematics, Article ID 838397.

Mergenthaler, R. D., Rajgopal, S., and Srinivasan, S. (2012). CEO and CFO career penalties to missing quarterly analysts forecasts. Working paper.

Nissim, D. and Penman, S. H. (2001). Ratio analysis and equity valuation: From research to practice. Review of Accounting Studies, 6(1):109–154.

Ohlson, J. A. (1980). Financial ratios and the probabilistic prediction of bankruptcy.

Journal of Accounting Research, 18(1):109–131.

Penman, S. H. (2004). Financial statement analysis and security valuation. McGraw-Hill, Boston, 2nd edition.

Ronen, J. and Yaari, V. (2008). Earnings Management: Emerging Insights in Theory, Practice, and Research. Springer Series in Accounting Scholarship. Springer, New York.

Tippett, M. (1990). An induced theory of financial ratios. Accounting & Business Re- search, 21(81):77–85.

A Simple cases for equation (20)

This appendix presents explicit general solutions to equation (20) when there are either two or three variables in the set.

Consider the two-variable case, with

Γ = −a a

b −b

(A.1) (note that the rows must sum to 0). Then, omitting the time subscript t−1 and writing the vector y as y₁

y₂

, equation (20) gives

−b

(y₂−y₁) = λ−β₁ λ−β₂

(A.2) which has a consistent solution for (y2 −y1) only if

−b = λ−β₁ λ−β2

so that λ= aβ₂+bβ₁

a+b and y₂ =y₁+ β₂−β₁ a+b . Thus the vectory has one degree of freedom, as it must, for the correct value of λ.

Note that the ratio exp(y₂−y₁) is constant as the firm grows. Also, if aβ₂+bβ₁ = 0 then λ= 0 so that the firm does not grow. The conditionβ = 0 is therefore sufficient but not necessary to ensure that there is no growth.

The three-variable case is similarly straightforward. We must have

Γ =







−a−b a b c −c−d d

e f −e−f





 (A.3)

and we find

λ= (ce+de+cf)β₁+ (ae+af +bf)β₂+ (ad+bc+bd)β₃ ce+de+cf +ae+af+bf +ad+bc+bd y₂ =y₁+ −(d+e+f)β1+ (b+e+f)β2+ (d−b)β3

ce+de+cf +ae+af +bf +ad+bc+bd y3 =y1+−(c+d+f)β₁ + (f −a)β₂ + (a+c+d)β₃ ce+de+cf +ae+af +bf +ad+bc+bd

Again, there is a long-term growth rate which depends on Γ and β, and a set of ratios which are consistent with that growth rate.

Tables and Figures

Table 1: Variables used in the testing. * Indicates a variable that should not be negative.

Panel A: Values sourced from the database

Symbol Variable GV code

CA Total Current Assets* ACT

PPE Property, Plant and Equipment (net)* PPE

A Total Assets* AT

CL Current Liabilities* LCT

Long-term Debt* DTL

L Total Liabilities* LT

S Sales* SALE

COGS Cost of Goods Sold* COGS

SGA Selling, General and Admin Expenses* SGA

DEPR Depreciation* DP

NI Income before extraordinary items IB

CFO Cash Flow from Operations OANCF

Panel B: Derived non-negative variables

Symbol Variable Definition

X Expenses* SALE – IB

CF O^out Operating Cash Expenditure* SALE – OANCF

Table 2: The model for the variable pair (Sales, Assets) for machinery manufacturing firms (SIC = 3500-3599). OLS regression.

Panel A. Regression coefficients and row sums, with standard errors in parentheses.

Sample size = 14,008. Two-sided significance flags: * = 0.001, + = 0.01.

β S A Sums

S 0.097* -0.144* 0.135* -0.009

(0.010) (0.006) (0.004) .

A 0.204* 0.041* -0.064* -0.023

(0.005) (0.008) (0.004) .

Panel B. Contemporaneous correlations between residuals of the different equations.

Also, for each equation, the standard deviation, skewness and kurtosis of the residuals.

S A Stdev Skewness Kurtosis

S 1.000 0.508 0.404 -1.191 39.119

A 0.508 1.000 0.309 1.568 31.430

Panel C. Correlations between residuals of each equation and the lagged residuals of each equation in the set. Autocorrelations along the diagonal.

S A

S 0.049 0.090

A 0.218 0.156

Panel D. Long-term ratios consistent with the long-term growth of 0.169. Sample ratios given in parentheses; sample growth rate is 0.064.

S A

S 1.000 0.586

(1.000) (0.865)

A 1.707 1.000

(1.156) (1.000)

Table 3: The model for the variable pair (Sales, Assets) for machinery manufacturing firms (SIC = 3500-3599). OLS regression but with the row sums constrained to be zero.

Panel A. Regression coefficients and row sums, with standard errors in parentheses.

Sample size = 14,008. Two-sided significance flags: * = 0.001, + = 0.01.

β S A

S 0.051* -0.146* 0.146*

(0.003) (0.005) (0.005)

A 0.082* 0.036* -0.036*

(0.005) (0.003) (0.005)

Panel B. Contemporaneous correlations between residuals of the different equations.

Also, for each equation, the standard deviation, skewness and kurtosis of the residuals.

S A Stdev Skewness Kurtosis

S 1.000 0.509 0.404 -1.116 38.790

A 0.509 1.000 0.312 1.881 32.262

Panel C. Correlations between residuals of each equation and the lagged residuals of each equation in the set. Autocorrelations along the diagonal.

S A

S 0.050 0.089

A 0.218 0.147

Panel D. Long-term ratios consistent with the long-term growth of 0.076. Sample ratios given in parentheses; sample growth rate is 0.064.

S A

S 1.000 0.844

(1.000) (0.865)

A 1.185 1.000

(1.156) (1.000)

Table 4: The model for the variable pair (Sales, Assets) for machinery manufacturing firms (SIC = 3500-3599), after deleting firm-years with residuals of more than 4 standard deviations.

OLS regression but with the row sums constrained to be zero.

Panel A. Regression coefficients and row sums, with standard errors in parentheses.

Sample size = 13,773. Two-sided significance flags: * = 0.001, + = 0.01.

β S A

S 0.059* -0.090* 0.090*

(0.002) (0.004) (0.004)

A 0.074* 0.052* -0.052*

(0.004) (0.002) (0.004)

Panel B. Contemporaneous correlations between residuals of the different equations.

Also, for each equation, the standard deviation, skewness and kurtosis of the residuals.

S A Stdev Skewness Kurtosis

S 1.000 0.548 0.298 -0.064 7.427

A 0.548 1.000 0.236 0.818 7.925

Panel C. Correlations between residuals of each equation and the lagged residuals of each equation in the set. Autocorrelations along the diagonal.

S A

S 0.123 0.170

A 0.227 0.233

Panel D. Long-term ratios consistent with the long-term growth of 0.069. Sample ratios given in parentheses; sample growth rate is 0.064.

S A

S 1.000 0.895

(1.000) (0.865)

A 1.118 1.000

(1.156) (1.000)

Table 5: The model for the variables (Sales, Assets, Current Assets, Liabilities, Expenses) for machinery manufacturing firms (SIC = 3500-3599), after deleting firm-years with residuals of more than 4 standard deviations. OLS regression but with the row sums constrained to be zero.

Panel A. Regression coefficients and row sums, with standard errors in parentheses. Sam- ple size = 13,525. Two-sided significance flags: * = 0.001, + = 0.01.

β S A CA L X

S 0.115* -0.092* 0.001 0.089* 0.016* -0.014

(0.006) (0.008) (0.005) (0.008) (0.009) (0.007)

A 0.065* 0.081* -0.047* 0.034* -0.030* -0.038*

(0.007) (0.006) (0.008) (0.005) (0.008) (0.009)

CA -0.009 0.083* 0.057* -0.099* -0.036* -0.004

(0.009) (0.007) (0.006) (0.008) (0.005) (0.008)

L -0.024* 0.012 0.073* 0.012 -0.123* 0.026+

(0.008) (0.009) (0.007) (0.006) (0.008) (0.005)

X 0.115* 0.070* 0.030* 0.094* 0.015+ -0.209*

(0.005) (0.008) (0.009) (0.007) (0.006) (0.008)

Panel B. Contemporaneous correlations between residuals of the different equations. Also, for each equation, the standard deviation, skewness and kurtosis of the residuals.

S A CA L X Stdev Skewness Kurtosis

S 1.000 0.560 0.552 0.435 0.842 0.283 -0.192 6.882

A 0.560 1.000 0.845 0.690 0.485 0.222 0.794 7.400

CA 0.552 0.845 1.000 0.582 0.452 0.260 0.512 6.385

L 0.435 0.690 0.582 1.000 0.476 0.308 0.396 6.286

X 0.842 0.485 0.452 0.476 1.000 0.258 0.012 6.218

Panel C. Correlations between residuals of each equation and the lagged residuals of each equation in the set. Autocorrelations along the diagonal.

S A CA L X

S 0.138 0.193 0.141 0.079 0.191

A 0.223 0.237 0.159 0.133 0.318

CA 0.203 0.205 0.131 0.096 0.276

L 0.211 0.144 0.090 0.074 0.232

X 0.101 0.154 0.103 0.075 0.114

Panel D. Long-term ratios consistent with the long-term growth of 0.065. Sample ratios given in parentheses; sample growth rate is 0.064.

S A CA L X

S 1.000 0.893 1.538 2.016 0.989

(1.000) (0.874) (1.478) (1.957) (0.974)

A 1.119 1.000 1.722 2.257 1.107

(1.144) (1.000) (1.691) (2.239) (1.115)

CA 0.650 0.581 1.000 1.311 0.643

(0.677) (0.591) (1.000) (1.324) (0.659)

L 0.496 0.443 0.763 1.000 0.491

(0.511) (0.447) (0.755) (1.000) (0.498)

X 1.011 0.903 1.555 2.038 1.000

(1.026) (0.897) (1.516) (2.008) (1.000)

Table6:Themodelforthevariablevector(Sales,TotalAssets,CurrentAssets,PropertyPlantandEquipment,CurrentLiabilities,Total Liabilities,CostofGoodsSold,SellingGeneralandAdministrationExpenses,Depreciation,andTotalExpenses)formachinerymanufacturing firms(SIC=3500-3599),afterdeletingfirm-yearswithresidualsofmorethan4standarddeviations.OLSregression,withtherowsums constrainedtobezero. PanelA.Regressioncoefficientsandrowsums,withstandarderrorsinparentheses.Samplesize=11,705.Two-sidedsignificance flags:*=0.001,+=0.01. βSACAPPECLLCOGSSGADEPRX S0.094*-0.058*-0.0010.080*-0.0030.0190.002-0.044*-0.029*0.012+0.022 (0.021)(0.016)(0.005)(0.005)(0.012)(0.008)(0.008)(0.004)(0.011)(0.013)(0.015) A-0.068+0.252*-0.051*0.037*0.0090.008-0.035*-0.109*-0.047*-0.008-0.058* (0.015)(0.021)(0.016)(0.005)(0.005)(0.012)(0.008)(0.008)(0.004)(0.011)(0.013) CA-0.085*0.215*0.058*-0.098*0.0010.030*-0.059*-0.078*-0.038*0.001-0.033 (0.013)(0.015)(0.021)(0.016)(0.005)(0.005)(0.012)(0.008)(0.008)(0.004)(0.011) PPE-0.240*0.305*0.0210.072*-0.021*-0.005-0.028*-0.100*-0.067*-0.029*-0.147* (0.011)(0.013)(0.015)(0.021)(0.016)(0.005)(0.005)(0.012)(0.008)(0.008)(0.004) CL-0.149*0.0260.0030.105*0.017*-0.211*0.074*-0.032+-0.038*-0.0100.064* (0.004)(0.011)(0.013)(0.015)(0.021)(0.016)(0.005)(0.005)(0.012)(0.008)(0.008) L-0.108*0.083*0.066*0.0200.0100.005-0.126*-0.051*-0.034*-0.0070.033 (0.008)(0.004)(0.011)(0.013)(0.015)(0.021)(0.016)(0.005)(0.005)(0.012)(0.008) COGS0.0310.088*-0.0150.099*0.0020.036*-0.008-0.158*-0.055*0.012+0.001 (0.008)(0.008)(0.004)(0.011)(0.013)(0.015)(0.021)(0.016)(0.005)(0.005)(0.012) SGA-0.151*0.265*0.038+0.076*-0.025*-0.001-0.008-0.109*-0.100*0.004-0.139* (0.012)(0.008)(0.008)(0.004)(0.011)(0.013)(0.015)(0.021)(0.016)(0.005)(0.005) DEPR-0.533*0.328*0.095*0.0050.053*-0.019-0.020-0.151*-0.038*-0.144*-0.110* (0.005)(0.012)(0.008)(0.008)(0.004)(0.011)(0.013)(0.015)(0.021)(0.016)(0.005) X0.111*0.239*0.053*0.074*-0.019*0.019-0.0020.005-0.0090.013+-0.374* (0.005)(0.005)(0.012)(0.008)(0.008)(0.004)(0.011)(0.013)(0.015)(0.021)(0.016)

B.Contemporaneouscorrelationsbetweenresidualsofthedifferentequations.Also,foreachequation,thestandarddeviation, andkurtosisoftheresiduals. SACAPPECLLCOGSSGADEPRXStdevSkewnessKurtosis S1.0000.5760.5700.3210.4630.4420.9340.5390.2950.8770.267-0.2216.214 A0.5761.0000.8490.4960.6120.6920.5160.4160.3000.4850.2040.9247.406 CA0.5700.8491.0000.2760.5750.5850.5060.3600.1860.4610.2450.5396.273 PPE0.3210.4960.2761.0000.3130.3920.3010.3290.3710.3150.2570.7479.850 CL0.4630.6120.5750.3131.0000.8170.4390.3470.2010.4760.3260.0725.203 L0.4420.6920.5850.3920.8171.0000.4200.3680.2620.4690.2920.3736.175 COGS0.9340.5160.5060.3010.4390.4201.0000.4810.2640.8660.274-0.0686.770 SGA0.5390.4160.3600.3290.3470.3680.4811.0000.3670.6060.2180.4177.415 DEPR0.2950.3000.1860.3710.2010.2620.2640.3671.0000.3640.2810.4338.114 X0.8770.4850.4610.3150.4760.4690.8660.6060.3641.0000.2440.0906.016 C.Correlationsbetweenresidualsofeachequationandthelaggedresidualsofeachequationintheset.Autocorrelations thediagonal. SACAPPECLLCOGSSGADEPRX S0.1220.1560.1110.1670.0470.0650.1250.2120.1840.154 A0.2460.2160.1390.2400.0870.1220.2440.3000.3060.294 CA0.2270.1880.1160.2030.0590.0900.2290.2560.1830.256 PPE0.1190.1350.0720.2010.0800.1080.1230.2070.3570.173 CL0.2250.1130.0620.151-0.0180.0390.2190.2200.2040.235 L0.2140.1250.0720.1660.0320.0700.2070.2250.2420.228 COGS0.1130.1410.0920.1660.0420.0650.1070.2080.1820.140 SGA0.1020.1410.0970.1710.0770.0950.1080.1210.2280.132 DEPR0.0830.1200.0940.1250.0730.0950.0730.1200.2170.107 X0.1040.1340.0870.1650.0460.0670.1010.2010.2010.117

PanelD.Long-termratiosconsistentwiththelong-termgrowthof0.055.Sampleratiosgiveninparentheses;samplegrowthrate is0.064. SACAPPECLLCOGSSGADEPRX S1.0000.9481.56011.4623.2302.2161.6833.73946.3070.973 (1.000)(0.879)(1.489)(5.015)(2.867)(2.003)(1.506)(5.425)(33.094)(0.994) A1.0551.0001.64612.0953.4082.3381.7763.94548.8641.027 (1.137)(1.000)(1.694)(5.704)(3.260)(2.277)(1.712)(6.170)(37.635)(1.130) CA0.6410.6071.0007.3462.0701.4201.0792.39629.6780.623 (0.671)(0.590)(1.000)(3.368)(1.925)(1.345)(1.011)(3.643)(22.223)(0.667) PPE0.0870.0830.1361.0000.2820.1930.1470.3264.0400.085 (0.199)(0.175)(0.297)(1.000)(0.572)(0.399)(0.300)(1.082)(6.599)(0.198) CL0.3100.2930.4833.5491.0000.6860.5211.15814.3370.301 (0.349)(0.307)(0.520)(1.750)(1.000)(0.699)(0.525)(1.893)(11.545)(0.347) L0.4510.4280.7045.1721.4581.0000.7591.68720.8970.439 (0.499)(0.439)(0.744)(2.504)(1.431)(1.000)(0.752)(2.709)(16.525)(0.496) COGS0.5940.5630.9276.8101.9191.3171.0002.22127.5150.578 (0.664)(0.584)(0.989)(3.331)(1.904)(1.330)(1.000)(3.603)(21.979)(0.660) SGA0.2670.2530.4173.0660.8640.5930.4501.00012.3860.260 (0.184)(0.162)(0.274)(0.924)(0.528)(0.369)(0.278)(1.000)(6.100)(0.183) DEPR0.0220.0200.0340.2480.0700.0480.0360.0811.0000.021 (0.030)(0.027)(0.045)(0.152)(0.087)(0.061)(0.045)(0.164)(1.000)(0.030) X1.0280.9741.60411.7823.3202.2781.7303.84347.6021.000 (1.006)(0.885)(1.499)(5.047)(2.885)(2.015)(1.515)(5.459)(33.301)(1.000)

Figure 1: Function sinh⁻¹(x) (solid line) and logarithmic approximations log(2x) for x >0 and−log(−2x) forx <0.

−4 −2 0 2 4

−2−1012

Figure 2: Relation between profit and total assets, using sinh⁻¹ transformations for both.

1,000 firm-years of manufacturers (SIC 35 and 36), various countries.

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0 2 4 6 8 10 12

−50510

asinh(Assets)

asinh(Profit before extraordinary items)

School of Accountancy Massey University

Discussion Paper Series

2013 No 223 Some Models for the Evolution of Financial Statement Data by Paul V. Dunmore.

2011 No 222 Half a Defence of Positive Accounting Research by Paul V. Dunmore.

2010 No. 221 Has IFRS Resulted in Information Overload? by M. Morunga and M. Bradbury.

No. 220 Kiwi Talent Flow: A Study of Chartered Accountants and Business Professionals Overseas by J.J. Hooks, S.C. Carr, M. Edwards, K. Inkson, D. Jackson, K. Thorn and N. Alfree.

No. 219 The Determinants of the Accounting Classification of Convertible Debt When Managers Have Freedom of Choice by H.E. Bishop.

No. 218 The Definition of “Insider” in Section 3 of the Securities Markets Act 1988: A Review and Comparison With Other Jurisdictions by S. Zu and M.A. Berkahn.

No. 217 The Corporatisation of Local Body Entities: A Study of Financial Performance by J.J.

Hooks and C.J. van Staden.

No. 216 Devolved School-Based Financial Management in New Zealand: Observations on the Conformity Patterns of School Organisations to Change by S. Tooley and J. Guthrie.

No. 215 Management Accounting Education: Is There a Gap Between Academia and Practitioner Perceptions? by L.C. Hawkes, M. Fowler and L.M. Tan.

No. 214 The Impact of Events on Annual Reporting Disclosures by J.J. Hooks.

No. 213 Claims of Wrongful Pregnancy and Child Rearing expenses by C. M. Thomas.

No. 212 Web Assisted Teaching: An Undergraduate Experience by C.J. van Staden, N.E.

Kirk and L.C. Hawkes.

No. 211 An Exploratory Investigation into the Corporate Social Disclosure of Selected New Zealand Companies by J.A. Hall.

No. 210 Should the Law Allow Sentiment to Triumph Over Science? The Retention of Body Parts by C.M. Thomas.

No. 209 The Development of a Strategic Control Framework and its Relationship with Management Accounting by C.H. Durden.

No. 208 ‘True and Fair View’ versus ‘Present Fairly in Conformity With Generally Accepted Accounting Principles’ by N.E. Kirk.

No. 207 Commercialisation of the Supply of Organs for Transplantation by C.M. Thomas.

No. 206 Aspects of the Motivation for Voluntary Disclosures: Evidence from the Publication of Value Added Statements in an Emerging Economy by C.J. van Staden.

No. 205 The Development of Social and Environmental Accounting Research 1995-2000 by M.R. Mathews.

No. 204 Strategic Accounting: Revisiting the Agenda by R.O. Nyamori.

No. 203 One Way Forward: Non-Traditional Accounting Disclosures in the 21^st Century by M.R. Mathews and M.A. Reynolds.

No. 202 Externalities Revisited: The Use of an Environmental Equity Account by M.R.

Mathews and J.A. Lockhart.

No. 201 Resource Consents – Intangible Fixed Assets? Yes … But Too Difficult By Far!! by L.C. Hawkes and L.E. Tozer.

No. 200 The Value Added Statement: Bastion of Social Reporting or Dinosaur of Financial Reporting? by C.J. van Staden

2000 No. 199 Potentially Dysfunctional Impacts of Harmonising Accounting Standards: The Case of Intangible Assets by M.R. Mathews and A.W. Higson.

No. 198 Delegated Financial Management Within New Zealand Schools: Disclosures of Performance and Condition by S. Tooley.

No. 197 The Annual Report: An Exercise in Ignorance? by L.L. Simpson.

No. 196 Conceptualising the Nature of Accounting Practice: A Pre-requisite for Understanding the Gaps between Accounting Research, Education and Practice by S. Velayutham and F.C. Chua.

No. 195 Internal Environmental Auditing in Australia: A Survey by C.M.H. Mathews and M.R.

Mathews.

No. 194 The Environment and the Accountant as Ethical Actor by M.A. Reynolds and M.R.

Mathews.

No. 193 Bias in the Financial Statements – Implications for the External Auditor: Some U.K.

Empirical Evidence by A.W. Higson.

No. 192 Corporate Communication: An Alternative Basis for the Construction of a Conceptual Framework Incorporating Financial Reporting by A.W. Higson

No. 191 The Role of History: Challenges for Accounting Educators by F.C. Chua.

No. 190 New Public Management and Change Within New Zealand’s Education System: An Informed Critical Theory Perspective by S. Tooley.

No. 189 Good Faith and Fair Dealing by C.J. Walshaw.

No. 188 The Impact of Tax Knowledge on the Perceptions of Tax Fairness and Tax Compliance Attitudes Towards Taxation: An Exploratory Study by L.M. Tan and C.P. Chin-Fatt.

No. 187 Cultural Relativity of Accounting for Sustainability: A research note by M.A.

Reynolds and R. Mathews.

No. 186 Liquidity and Interest Rate Risk in New Zealand Banks by D.W. Tripe and L. Tozer No. 185 Structural and Administrative Reform of New Zealand’s Education System: Its

Underlying Theory and Implications for Accounting by S. Tooley.

No. 184 An Investigation into the Ethical Decision Making of Accountants in Different Areas of Employment by D. Keene.

No. 183 Ethics and Accounting Education by K.F. Alam.

No. 182 Are Oligopolies Anticompetitive? Competition Law and Concentrated Markets by M.A. Berkahn.

No. 181 The Investment Opportunity Set and Voluntary Use of Outside Directors: Some New Zealand Evidence by M. Hossain and S.F. Cahan.

No. 180 Accounting to the Wider Society: Towards a Mega-Accounting Model by M.R.

Mathews.

No. 179 Environmental Accounting Education: Some Thoughts by J.A. Lockhart and M.R.

Mathews.

No. 178 Types of Advice from Tax Practitioners: A Preliminary Examination of Taxpayer’s Preferences by L.M. Tan.

No. 177 Material Accounting Harmonisation, Accounting Regulation and Firm Characteristics. A Comparative Study of Australia and New Zealand, by A.R.

Rahman, M.H.B. Perera and S. Ganesh.

No. 176 Tax Paying Behaviour and Dividend Imputation: The Effect of Foreign and Domestic Ownership on Average Effective Tax Rates, by B R Wilkinson and S.F. Cahan.

No. 175 The Environmental Consciousness of Accountants: Environmental Worldviews, Beliefs and Pro-environmental Behaviours, by D. Keene.

No. 174 Social Accounting Revisited: An Extension of Previous Proposals, by M.R.

Mathews.

No. 173 Mapping the Intellectual Structure of International Accounting, by J. Locke and M.H.B. Perera.

No. 172 “Fair Value” of Shares: A Review of Recent Case Law, by M.A. Berkahn.

No. 171 Curriculum Evaluation and Design: An Application of an Education Theory to an Accounting Programme in Tonga, by S.K. Naulivou, M.R. Mathews and J. Locke.

No. 170 Copyright Law and Distance Education in New Zealand: An Uneasy Partnership, by S. French.

No. 169 Public Sector Auditing in New Zealand: A Decade of Change, by L.E. Tozer and F.S.B. Hamilton.

No. 168 Dividend Imputation in the Context of Globalisation: Extension of the New Zealand Foreign Investor Tax Credit Regime to Non-resident Direct Investors, by B.

Wilkinson.

No. 167 Instructional Approaches and Obsolescence in Continuing Professional Education (CPE) in Accounting - Some New Zealand Evidence, by A.R. Rahman and S.

Velayutham.

No. 166 An Exploratory Investigation into the Delivery of Services by a Provincial Office of the New Zealand Inland Revenue Department, by S. Tooley and C. Chin-Fatt.

No. 165 The Practical Roles of Accounting in the New Zealand Hospital System Reforms 1984-1994: An Interpretive Theory, by K. Dixon.

No. 164 Economic Determinants of Board Characteristics: An Empirical Study of Initial Public Offering Firms, by Y.T. Mak and M.L. Roush.

No. 163 Qualitative Research in Accounting: Lessons from the Field, by K. Dixon.

No. 162 An Interpretation of Accounting in Hospitals, by K. Dixon.

No. 161 Perceptions of Ethical Conduct Among Australasian Accounting Academics, by G.E.

Holley and M.R. Mathews.

No. 160 The Annual Reports of New Zealand's Tertiary Education Institutions 1985-1994: A Review, by G. Tower, D. Coy and K. Dixon.

No. 159 Securing Quality Audit(or)s: Attempts at Finding a Solution in the United States, United Kingdom, Canada and New Zealand, by B.A. Porter.

No. 158 Determinants of Voluntary Disclosure by New Zealand Life Insurance Companies:

Field Evidence, by M. Adams.

No. 157 Regional Accounting Harmonisation: A Comparative Study of the Disclosure and Measurement Regulations of Australia and New Zealand, by A. Rahman, H. Perera and S. Ganeshanandam.

1995 No. 156 The Context in Which Accounting Functions Within the New Zealand Hospital System, by K. Dixon.

No. 155 An Analysis of Accounting-Related Choice Decisions in the Life Insurance Firm, by M.A. Adams and S. Cahan.

No. 154 The Institute of Chartered Accountants of New Zealand: Emergence of an Occupational Franchisor, by S. Velayutham.

No. 153 Corporatisation of Professional Practice: The End of Professional Self-Regulation in Accounting? by S. Velayutham.

No. 152 Psychic Distance and Budget Control of Foreign Subsidiaries, by L.G. Hassel.

No. 151 Societal Accounting: A Forest View, by L. Bauer.

No. 150 The Accounting Education Change Commission Grants Programme and Curriculum Theory, by M.R. Mathews.

No. 149 An Empirical Study of Voluntary Financial Disclosure by Australian Listed Companies, by M. Hossain and M. Adams.

No. 148 Environmental Auditing in New Zealand: Profile of an Industry, by L.E. Tozer and M.R. Mathews.

No. 147 Introducing Accounting Education Change: A Case of First-Year Accounting, by L.

Bauer, J. Locke and W. O'Grady.

No. 146 The Effectiveness of New Zealand Tax Simplification Initiatives: Preliminary Evidence from a Survey of Tax Practitioners, by L.M. Tan and S. Tooley.

No. 145 Annual Reporting by Tertiary Education Institutions in New Zealand: Events and Experiences According to Report Preparers, by D. Coy, K. Dixon and G. Tower.

No. 144 Organizational Form and Discretionary Disclosure by New Zealand Life Insurance

No. 143 Voluntary Disclosure in an Emerging Capital Market: Some Empirical Evidence from Companies Listed on the Kuala Lumpur Stock Exchange, by M. Hossain, L.M. Tan and M. Adams.

No. 142 Auditors' Responsibility to Detect and Report Corporate Fraud: A Comparative Historical and International Study, by B.A. Porter.

No. 141 Accounting Information Systems Course Curriculum: An Empirical Study of the Views of New Zealand Academics and Practitioners, by G. Van Meer.

No. 140 Balance Sheet Structure and the Managerial Discretion Hypothesis: An Exploratory Empirical Study of New Zealand Life Insurance Companies, by M. Adams.

No. 139 An Analysis of the Contemporaneous Movement Between Cash Flow and Accruals- based Performance Numbers: The New Zealand Evidence - 1971-1991, by J.

Dowds.

No. 138 Voluntary Disclosure in the Annual Reports of New Zealand Companies by M.

Hossain, M.H.B Perera and A.R. Rahman.

No. 137 Financial Reporting Standards and the New Zealand Life Insurance Industry: Issues and Prospects, by M. Adams.

No. 136 Measuring the Understandability of Corporate Communication: A New Zealand Perspective, by B. Jackson.

No. 135 The Reactions of Academic Administrators to the United States Accounting Education Change Commission 1989-1992, by M.R. Mathews, B.P. Budge and R.D.

Evans.

No. 134 An International Comparison of the Development and Role of Audit Committees in the Private Corporate Sector, by B.A. Porter and P.J. Gendall.

No. 133 Taxation as an Instrument to Control/Prevent Environmental Abuse, by G. Van Meer.

No. 132 Brand Valuation: The Main Issues Reviewed, by A.R. Unruh and M.R. Mathews.

No. 131 Employee Reporting: A Survey of New Zealand Companies, by F.C. Chua.

No. 130 Socio-Economic Accounting: In Search of Effectiveness, by S.T. Tooley.

No. 129 Identifying the Subject Matter of International Accounting: A Co-Citational Analysis, by J. Locke.

No. 128 The Propensity of Managers to Create Budgetary Slack: Some New Zealand Evidence, by M. Lal and G.D. Smith.

No. 127 Participative Budgeting and Motivation: A Comparative Analysis of Two Alternative Structural Frameworks, by M. Lal and G.D. Smith.

No. 126 The Finance Function in Healthcare Organisations: A Preliminary Survey of New Zealand Area Health Boards, by K. Dixon.

No. 125 An Appraisal of the United States Accounting Education Change Commission Programme 1989-1991, by M.R. Mathews.

No. 124 Spreadsheet Use by Accountants in the Manawatu in 1991: Preliminary Comparisons with a 1986 Study, by W. O'Grady and D. Coy.

Dalam dokumen Some Models for the Evolution of Financial Statement Data (Halaman 30-59)