Market Based Accounting Research Impacts

Market Based Accounting Research Impacts Market-based Accounting Research Introduction Accounting provides financial data about the performance of a company. This data enables accounting information users, including investors, to take their decisions about investing in the shares of a company. Similarly, accounting research evaluates the usefulness of this accounting data to investors and other users. The relationship between the two can be examined through market-based accounting research. Market-based accounting research is a search into relationship between publicly disclosed accounting information and the consequences of use of this information by equity investors. In other words, market-based accounting research examines the association between accounting numbers and security return and tests whether or not accounting data carry any information content to security market. Rationale for the Research Market-based Accounting Research is extremely relevant to the study of capital market efficiency, CAPM, information economics and regulation. The main drive of market-based accounting research comes from major developments in finance theory during the last few decades, especially in late 50s and early 60s. These developments include portfolio selection theory, Capital Asset Pricing Model (CAPM), and the concept of information-efficient capital markets followed by developments in information economics, agency theory and optimal incentive-signaling models. The rationale of this study has its basis in the research in this area in the past. Over the past three decades, a significant amount of research in market-based accounting research has emerged to evaluate the usefulness of accounting data to investors and the association between the accounting numbers and security return. In fact in the recent years due to development of capital markets, globalization and increase in stock trading, market-based accounting research has become even more important. Contemporary market-based accounting research has primarily focused on its international dimension which has had important policy implications for regulators and others who deal with disclosure requirements in different stock exchanges. The focus of this dissertation will be on examining how market-based accounting research impacts the kind of common stock traded in major stock exchanges. In light of this, the study will examine the relationship between accounting numbers, stock market returns and market valuations. Key Aims Objectives As indicated above, the prime focus of the study is to examine contemporary accounting theory and research with an emphasis on market-based accounting research and its impact on capital markets. As market based accounting research is based on the valuation of firms and their securities, the use of financial statements for valuation purposes, and the implications for financial reporting and corporate governance, all these areas will form a part of this study. The study aims to: Describe the concept of market based accounting research Identify the information content of market-based accounting research Provide an insight into local market conditions as well as comparative international state of market-based accounting research. Examine the role of market-based accounting research and the importance of disclosure of accounting information on capital markets Examine how published information is used by investors for designing their trading strategies Describe how market-based accounting research information impacts the capital markets efficiency Describe accounting based valuation and relate it to the content of brokers’ reports Key Research Questions The three key research questions proposed to be examined by this study are: What is the role of accounting information in capital markets? What is the information content of accounting information? What is the market-based accounting research hypothesis in context of influence on investors investing in stocks? Another key research question is how the market reacts to reported earnings, as well as the impact of reported earnings on the properties of analysts’ forecasts. These questions, especially the information content of accounting information, can be measured by the influence of the information on security prices. While measuring the influence it is assumed that investors can understand the differences in earnings that are due to differences between accounting methods. In other words, the study is based on efficient market hypothesis or the assumption that stock prices accurately and quickly adapt to all available information and therefore prevent individuals from getting abnormal return. Proposed Research Methodology Sources of Data / Information The study will be both exploratory as well as descriptive and will rely on both primary as well as secondary sources of information. Sampling for Primary Information Primary data will be collected from a sample consisting of both brokers as well as individual and institutional active investors who have invested in equity shares in a few pre-selected companies listed on the US or European stock exchanges. The period of investment will be from 2000-2006 as 6 years is a sufficient time to analyse the impact. These investors will be chosen on the basis of the frequency with which they invest in the securities. Data will be collected by administering questionnaires seeking information on how these investors make an investment decision. Sources of Secondary Information The prime source of secondary data will be: Annual reports of the selected companies under consideration. The variables that will be focused upon will include stock returns, dividends, net income on sale, return of equity, return on asset, debt ratio, interest coverage, current ratio, Price-earning ratio and price. The final report will be supplemented with information from: Literature searches ( refer list of references at the end of the document ) Past articles and research in the area Internet searches: Searching specific data from Yahoo and Google search engine Data Analysis Data will be compiled into data master sheets. The statistical description for all the variables will be presented in a separate table. The various sets of information pooled over the five year period of study will be clearly presented in the table in context of the various variables. The standard deviation and also correlation between the variables and the stock return will be determined and analysed. Correlation will be based on Karl Pearson’s method of correlation. In addition to standard deviation and correlation, regression analysis will also be used for examining the market reaction to reported accounting information. Regression is used for analysis of impact of independent variables on the dependent variable. The dependent variable for regression analysis will be stock returns while the independent variables will be dividends, Net income on Sale, return of equity, return on asset, debt ratio, interest coverage, current ratio, and price-earnings ratio. Regression equations will be solved using Ordinary Least Square method (OLS). Qualitative data gathered from the investors may include opinions of respondents on a certain issues, reasons for certain behaviour and descriptions of certain procedures, practices or perceptions with which the researcher is not familiar. The data can be analysed by classifying all answers into a few categories. References Abeyratna, G, A.A.Lonie, D.M. Power and C.D. Sinclair (1993), The Stock Market Reaction to Dividend Announcements: A UK Study of a Complex Market Signal, University of Dundee. Bonin, Joseph M. and Edward A. Moses (1974), Seasonal Variations in Prices of Individual Dow Jones Industrial Stocks, Journal of Financial and Quantitative Analysis Charest, Guy (1978) Dividend Information, Stock Returns and Market Efficiency II, Journal of Financial Economics, Vol. 6 Dyckman, Thomas R. and Dale Morse (1986), Efficient Capital Markets and Accounting: A Critical Analysis, Prentice-Hall. Foster, Taylor W. and Don Vickrey (1978) The Information Content of Stock Dividend Announcement, Accounting Review. Vol. LIII. No. 2 Kinney, W. (April 1986.), Empirical Accounting Research Design for Ph.D. Students, Accounting Review Kothari, S.P. Capital Markets Research in Accounting, Journal of Accounting and Economics Vol. 31 Nos. 1-3 Ross, Stephen A. 1978, The Current Status of the Capital Asset Pricing Model (CAPM). The Journal of Finance, Vol.XXXIII. No. 3 Scholes, Myron S. 1972. The Market for Securities: Substitution versus Price Pressure and the Effects of Information on Share Prices, Journal of Business

LAN Based Inventory System Essay

1 INTRODUCTION 1.1 Background of the Problem Nowadays, computerized system is the main tool that will help to lessen the work and improve data integrity. Working in a company that has no system takes a lot of time and effort to retrieve the data that they want because the large part of the process of the business is manual. MIS (Management Information System) Office is divided into three (3) sections: Systems Development and Administration Section, Network and Technical Maintenance Section, and Education and Training Section. The project will only focus on one of the three sections, which is the Network and Technical Maintenance Section. . MISO caters their services and requests to other Local Government Offices and National Agencies within the Pasig City Hall. Some of these departments and offices are the License Office, Treasurer’s Office, Accounting Office, National Statistics Office (NSO), etc. Network and Technical Maintenance is having a hard time in keeping their records since all of it is written down on paper. Whenever they need to look for a specific report, they would have to go through the pile of service records in the office. This consumes too much time. All requests for peripheral devices, such as printers, keyboards, and monitors, are in the form of a letter, and all requests for services like troubleshooting and installation will either be in the form of a letter or a phone call. The Network and Technical Maintenance Section mostly considers the allocation and monitoring of peripheral devices as their major problem in the office. Technicians cannot define clearly whether a specific peripheral device is lost, damaged, for disposal, etc. 1.2 Overview of the Current State of the Technology MIS Office is responsible for research, development, implementation and management of integrated computerized application system of the city government. It is in-charge of providing technical information and education  to the city government employees and its constituents of all barangay through the Computer Literacy Programs. The office is responsible for maintaining the existing data network communication in different offices where the computerized system are installed and used, and updates/coordinates with the contractor of the Network Installation for troubleshooting and preventive maintenance. It is also in-charge of evaluating, monitoring and maintaining all computer equipment and directs the utilization of Information Technology (IT) in the different government operation of Pasig City. The department that needs to request a peripheral device is required to provide a letter of request to the Head of MIS office. If the Head of MIS office approved their request, the technician will check if the devices are available and if so, the technician will record and deploy the devices on the designated office. Network and Technical Maintenance Section is only authorized to do all the technical support. If they are going to deploy a device, they have to record to the inventory the peripheral device that they pulled-out. By recording the device, they have to write on the log book all the information needed like type of peripheral device, serial number, name of office, borrowed date, name of technician in-charge, and remarks. To do technical service, the department that needs technical support will call to MIS office and request a technician. The technician should have the service slip before they go to the other department. If the problem can be fixed within the office, the technician will fill-up the form and indicate what they have done. The employee who requested for support will confirm and sign in the service slip. But if it cannot be fixed within the area, the device will be pulled-out to the designated office and will be brought to the MIS office. After bringing the device to the MIS office, the technician will record or log in the information of the peripheral device on the log book and if the device is already fixed, the technician will log-out or return the device to the office.

The Most Important Values That I - 1494 Words

IA. The most important values that I identify with most is dedication, improvement, empowerment, empathy, and compassion. †¢ I would say that these are most important to me because without these five elements I would not be the person I am now. I wouldn’t have gotten through my struggles without being either taught or simply observing from others how you should be in life. o Dedication has been taught to me from my family; if you were to say you were going to do something, they expect you to follow through with that actions. Always stay dedicated to others because you never know when you will be in need. With dedication comes loyalty and respect. Not only be dedicated to others but yourself as well, I was always taught to stay in school, don’t give up, keep your head up, and never say â€Å"I can’t†. Those who give up are the weak and no one should be weak in my family. o â€Å"No one is perfect but you should always strive for perfection†, this is something I was told as a child, everyone has room for improvement in every aspect of life. This was really brought u p mostly in my church, trying to a godly person, showing the love of Christ as always trying your best. Even though everyone is a sinner and will always be a sinner we should always improve in the aspects we notice that we fall short in, my church family has been a big influence in my life and with their influence I was taught always strive for who God is rather than what the world wants. I would see how my family would makeShow MoreRelatedWhat Values I Learned From My Family853 Words   |  4 PagesGrowing up with my cultural views gave me access to several important values I learned from my family. These values are very important to me, as they have shaped who I am today. 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One of the first values established in my leadership framework is â€Å"PlanningRead MoreLeadership Identity Paper Part I1622 Words   |  7 Pages Leadership Identity Paper Part I Gage Bailey Christopher Newport UniversityThis paper will serve several key principles: to summarize my past, to explain which theories of development I find most applicable to my life today and to discuss my values and how they affect my style of leadership. Firstly, after analyzing the Leadership Identity Development Model, I find myself within the Exploration/Engagement stage; I am becoming involved with many new organizations, identifying my strengths and

The President Of The United States - 1568 Words

The poll I designed is titled, â€Å"Who Would You Back in the Oval Office.† Almost every eligible voter in America has some idea of whom they would like to see become the next President of the United States. Unfortunately, not every voter can have his or her way and have his or her first choice elected. Therefore, it is important to note whom the people of the United States would support in office. Just because a voter, for example, prefers Hillary Clinton as his or her first choice does not mean he or she does or does not support Bernie Sanders. This is the goal of the poll: to find out who the American people will support as the next President of the United States. Prior polls have fallen short in which the polls only ask participants who they would want in the Oval Office. Although this is important, it is vital to comprehend whom voters will support if their number one choice does not win. The â€Å"Who Would You Back in the Oval Office† poll seeks to address who the American people will be happy with in the White House. Most polls do not address the very important question of support; instead the polls only ask about favorites. Recent polls regarding the Presidential election only ask participants for their number one choice. Instead, it is vital to find out whom the American people will support and be content with in office. One example from the news is Ted Cruz and Donald Trump. Ted Cruz has not given an answer as to whether he would support Donald Trump as the RepublicanShow MoreRelatedThe President Of The United States1532 Words   |  7 PagesThe president is the most important job in the United States. Not the ruler of the United States ,but have some power over the country. The president of the United States is a person who symbolize the country and leads the country by making decisions of what is the best thing to do. 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