IJBAF.V8.N2.2014

Chris Neuenschwander Paul Ziegler Anderson University ABSTRACT This study examines the relationship between naked short selling on publicly traded companies and negative cumulative abnormal return (CAR) incurred by stocks where a short seller fails to deliver the security needed to close the short position. Past research suggests that most failures to deliver are related to […]

Karen Nunez Elon University ABSTRACT This study investigates the ability of Free Cash Flow to predict performance in capital intensive and non-capital intensive industries. This study provides empirical evidence on Free Cash Flow versus traditional performance indicators and indicates whether Free Cash Flow better summarizes firm performance as reflected in stock returns/prices. This study makes […]

Zane Swanson V. Sivarama Krishnan University of Central Oklahoma ABSTRACT This study uses a sample of dividend paying firms from the most recent 12-year period to test a simple residual income model and attempts to determine the key features of dividend payout. The results show moderate support for the model. A comparison of the period […]

Hoa Pham BDO Vietnam Pesi Amaria Sarasota University Thanh Bui University of Mount Union Sang Tran Vietnam Institute for Trade and Industry Studying ABSTRACT The purpose of this study was to examine auditors’ perception of audit quality and factors influencing audit quality in Vietnam. This study attempted to enhance auditors’ understanding of audit quality, auditor […]

Bert Zarb Embry-Riddle Aeronautical University ABSTRACT Company valuation is crucial for corporate sustainability and growth. To this effect, this study examines whether operating income and operating cash flows affect the valuation of airline companies. It is posited that airline firm value is a function of these variables. The results of this study show that both […]

Mary Teal V. Sivarama Krishnan University of Central Oklahoma ABSTRACT This study describes the accounting rules that cause retained earnings to be inaccurate measures of historic profitability. It analyzes this curious phenomenon and the accounting origins for the occurrence of negative retained earnings that are reported by relatively healthy firms. In most cases, this event […]

Victor Bahhouth Ramin Maysami Rebecca Gonzalez The University of North Carolina- Pembroke ABSTRACT One of the key elements that investors need is a set of indicators that could be used as leading measures to predict firm performance and help them make sound investment decisions. Many of the financial measures that are published regularly are a […]

G. Hwan Shin Veronda F. Willis The University of Texas at Tyler ABSTRACT In response to the issuance of International Accounting Standard 16, this paper studies 301 Korean firms during the early adoption period to investigate the motivation behind asset revaluations. This study tests two competing hypotheses, the information cost hypothesis and the fair value […]

Han B. Kang Illinois State University ABSTRACT The primary objective of the study is to offer a simultaneous equation model for explaining cyclical underwriting profits. This study makes an attempt to explain the unstable insurance business based on a joint equilibrium model of insurance and capital markets. An insurer is a financial intermediary who raises […]

Kevin Sun St. John’s University ABSTRACT This study examines the relation between the quality of financial reporting and efficiency of capital allocation. Capital allocation efficiency is defined as the magnitude of capital movement out of low-return projects and into high-return projects. Previous literature found that ineffective monitoring and information asymmetry may cause a lack of […]