Your search

This study examines the relationship between CEO general managerial ability and firm operational efficiency. I find a robust negative association between a CEO’s General Ability Index (GAI) and firm efficiency. Additionally, the analysis shows that GAI influences operational efficiency through two mechanisms: capital intensity and SG&A cost efficiency. Cross-sectional analyses reveal that the negative effect is more pronounced in smaller firms and those with smaller boards, suggesting that limited structural support may amplify the operational challenges generalist CEOs face. This study underscores the importance of contextual CEO-firm alignment and provides practical implications for boards and investors when evaluating executive fit for operational effectiveness.

Local governments are a vital component in the national effort to promote sensible methods for community development, growth and social justice. The benefits and challenges of sustainable development have become apparent as more local governments initiate programs to address economic, environmental and social equity issues. This research investigates county and municipal government efforts toward sustainable development using survey information for local governments in the southern United States. Survey responses were analyzed to examine whether local governments “practice what they preach” in terms of actually implementing the sustainable policies proclaimed to be important to their operations. Overall, results suggest local governments do place these policies into action for environmental and social justice issues. In addition, the analysis explores the impact of population size, geographic area and form of government on sustainable development. Measuring the implementation of sustainable policies in terms of dollars, however, proves difficult because there is no consistency among municipalities with regard to reporting the amount of dollars (federal or local) spent in support of sustainability efforts.

Delivery of a quality introductory accounting course is essential for schools of business. The first step in revitalization and improvement of the course is to identify factors suggested to be empirically related to succeessful completion. Accounting major status is of particular interest. While it has long been anecdotally observed and logically expected that accounting majors would earn higher grades in introductory accounting, it is rarely addressed in empirical studies. To investigate the impact of accounting major status on performance in introductory accounting, a sample of 398 students exposed to the same professor, text, teaching and examination format over five-years was gathered. Results suggest accounting major status was in fact a significant positive predictor of grades earned in the class controlling for three additional variables (i.e., grade point average, mathematics background and previous experience in the course). These results could be used to support the creation of an honors section(s) of accounting which could include a more rigorous curriculum taught with real life cases. Previous research supported the concept of an honors program from students, faculty and potential employers. In addition, the results suggest requiring a minimum grade point average and the completion of mathematics requirement before taking introductory accounting.

The purpose of this study is to explore the commitment of local governments to environmental programs when fiscal distress is predicted. We hypothesize that commitment to environmental programs diminishes when the local government is experiencing fiscal distress. The regression model results indicate that local governments with high levels of debt were less likely to I mplement environmental programs and that a larger population and higher revenue are factors directly related to the commitment of local government to environmental programs. Communities that are more populous and less fiscally stressed are more likely to benefit from a local government that implements and sustains environmental programs. These results have implications for the stakeholders of local communities and broader implications for the global effort toward environmental protection and sustainable communities.

The reporting of non-Generally Accepted Accounting Principles Measures (non-GAAP) by U.S. publically traded companies is not new but it has recently come under increased scrutiny by the United States Securities and Exchange Commission (SEC). This case presents a specific example of this scrutiny in the form of Tesla, Inc.’s quarterly earnings announcements and Tesla’s subsequent correspondence with the SEC. This case requires students to answer relevant questions about GAAP vs Non GAAP reporting, generally in the form of a research memo, with references to applicable SEC regulations and guidance on the use and reporting of non-GAAP measures.

Using firms’ receipt of SEC comment letters, this study investigates their selection of mandatory filing types when producing deficient disclosures in response to the product market competition. Empirical evidence reveals a positive association between two firm-level measures of product market competition and a firm's likelihood of receiving comment letters for non-10-K filings. These patterns are particularly pronounced when firms face a higher likelihood of new market entrants or operate as industry followers. Additionally, firms receiving comment letters for non-10-K filings experience increased sales and market share in the subsequent year. Overall, these findings suggest that firms strategically make deficient disclosures in non-10-K filings to minimize regulatory costs. © 2024 Elsevier B.V.

Purpose The purpose of this study is to examine the relation between product market competition and audit fees by using firm-level product market competition measures and mitigating the endogeneity issues. Design/methodology/approach This study uses 12,136 US firms from 2004 and 2019. To ensure the robustness of the main findings, this study uses three firm-level product market competition measures and import trade tariff rate reductions of the USA as a quasi-natural experiment. This study also performs three cross-sectional tests and validation tests. Findings This study demonstrates that there is a negative relation between product market competition and audit fees and establishes a causal relation. Moreover, it reveals that the findings become more pronounced when auditors possess industry-specific expertise, when client firms are younger, and when operating within more homogeneous industries. Additionally, a validation analysis supports the findings. Practical implications This study offers significant insights for regulators by highlighting how product market competition plays a constructive role in overseeing firm management. Originality/value The authors contribute to the existing literature by showing that there is a negative association between product market competition and audit fees after controlling external monitoring mechanisms. The authors also find the causal relation. These findings indicate that competitive pressures originating from product markets exert a significant influence on disciplining a client firm’s management.

The academic accounting labor market is experiencing rapid changes on several fronts. We examine accounting program leaders’ perceptions of Assistant Professor hiring criteria, including how the criteria have changed in recent years. We ask program leaders to provide qualitative perspectives, rate the importance of 56 possible hiring criteria, and, in a supplemental analysis, rank and rate four hypothetical Assistant Professor candidates. Based on responses from 54 accounting program leaders, the results reveal a complex setting with research and teaching considerations, a focus on collegiality and professional experience, and an increasing focus on diversity. Specifically, Research Intensive schools (Carnegie R1 and/or doctorate in business) are more top-tier research and top-tier doctoral program focused, while Non-Research Intensive schools (all others) are more focused on general skills, other refereed journals, practitioner research, teaching experience, service, CPA licensure, and other professional certifications.

An ongoing debate continues at universities surrounding whether or not to raise minimum grade standards. Because of an inherent risk that enrollments may decline as a result, it is important to examine whether minimum grade policies are associated with improved student performance. To address this issue, the current study examines the relationship between higher minimum grade requirements in introductory accounting and student grades. The new minimum grade requirement of “C” was established beginning with the fall 2015 semester for introductory accounting to strengthen the quality of the program for an AACSB application. The research design included modeling introductory accounting grades over a ten-year period to examine any effect of the increase in the minimum grade on students’ grades in the course. The multivariate regression equation considered variables previously found associated with introductory accounting grades (i.e., status as accounting major, grade point average, mathematics preparedness and previous experience taking the course). An additional dichotomous variable was introduced to capture the impact of students on the new program. All students were taught by the same professor, using the same textbook, teaching philosophy and examination format to enhance the comparison. Results suggest average grades in introductory accounting did not improve as expected.

Defined benefit pension plans are a bedrock of the U.S. economy providing guaranteed payment streams at pre-established amounts. Results suggest public plans, sponsored by State and Local governments, and private plans, sponsored by public corporations, are unfunded. State plans were found to have the largest pension and unfunded pension liabilities. Examination of relationships between unfunded pension liabilities and fiscal or financial stability of sponsoring organizations suggests unfunded State pension plans are more likely to be sponsored by financially struggling sponsors measured by general obligation bond ratings. Local governments and Corporations with unfunded pension plans are less likely to be struggling financially. Fiscal distress of Local governments was measured by survival analysis. Corporation financial distress was quantified by a model designed to predict bankruptcy. Financially stable organizations failing to fund pension plans, in this case local governments and corporations, suggests a lack of social responsibility.

It is likely that accountants will face pressure to act unethically during their careers. We offer 10 practical steps to help financial professionals prepare for and respond to the pressure to act unethically.

According to a 2020 survey of 600 senior executives conducted by Harvard Business Review, 55% of organizations agreed that data analytics for decision making is extremely important and 92% asserted data analytics for decision making will be even more important in two years (bit.ly/3PBRENs). Organizations that strategically deploy tools across their finance and accounting functions have an opportunity to better structure manual processes into more stable, accurate, repeatable, and readily auditable procedures (see Gregory Kogan, Nathan Myers, Daniel J. Gaydon, and Douglas M. Boyle, "Advancing Digital Transformation," Strategic Finance, December 2021, bit.ly/3V45v0h). [...]financial decision makers are increasingly expected to engage data analytics to enhance decision making and create more efficient processes. Deployment/communication It's very important to assign responsibilities to team members (e.g., business analysts establish requirements, IT specialists gather required data, and data scientists develop and test advanced modeling techniques) with the requisite skills that vary among the phases. [...]unstructured data is data that has no uniform structure and typically isn't text-based, for example, image or sound files.

This case describes the difficult financial situation of Danbury Fair Mall, which is the second biggest shopping mall in Connecticut. After World War II, the shopping mall business had grown fast especially in suburban areas of the U.S. However, the increasing popularity of online shopping caused extensive damage to shopping malls. This case will provide students the chance to think about the past, the present, and the future of the shopping mall industry in the U.S

This study examines how product market competition differentially affects existing versus new analysts. I find that new analysts' coverage increase is significantly higher than the existing analysts' coverage increase when a portfolio firm faces high competition, suggesting existing analysts’ tendency to avoid competition among analysts for their career success. I also find that new analysts' one-year earnings forecasts accuracy decrease is significantly larger than the one of the existing analysts when the portfolio firm faces high competition. These findings indicate that existing analysts consider the situation firm faces, product market competition, and they are more competent than new analysts.