The thesis evaluates the value creation of the business model of Finnish residential real estate investment trusts (REITs) by observing the annual statement of Orava Residential REIT Plc. for the financial year ending 2016. The theoretical framework discusses peculiarities of REITs, company and its management and financial accounting. Different concepts and aspects have been highlighted in all of the chapters of the theoretical framework. The empirical research is qualitative and done by selective coding. The research method has been abductive. The most important research findings are related to fair value accounting, corporate governance and their role in real estate investment trusts. It seems that fair values are related to all different aspects of the operations of a REIT, the uncertainty related to it possibly enables the management to practice real earnings management. Moreover, unrealized gains and due to the changes in fair values play a significant role in the net income of the company. Considering corporate governance, major concern was raised from the independence of the board of directors. The board has assessed majority of its members to be independent, still, evidence is found to justify that majority of the board members cannot be considered to be truly independent. Also, the cash flows from the realized gains, from the point of view of private investor, have been discussed. More research should be conducted to validate the findings of the research. For example, corporate governance, real earnings manipulation or leverage and capital structure could be inspected more.

The purpose of the study is to examine the relationship between gender diversity in board composition and firm performance. The relationship is examined using 2011 and 2012 financial performance data for 50 Finnish listed companies. Two models are used to examine the relationship between gender diversity and firm performance. The first model uses percentage of women representation on the boards to measure gender diversity. The second model uses a dummy variable with a value of 1 for boards with one woman and 0 for boards with more than one woman representation on the board. The intended relationship is examined using Ordinary Least Square (OLS) regression method. Relationship between gender diversity and firm performance is controlled for board size, firm size, leverage and industry. The business case for gender diversity is not supported in this particular study. Even after using two different models to examine the relationship between gender diversity in the boardroom and firm performance, our results did not find a significant relationship. Female board members who break the glass ceiling are professionals representing the relevant experience and competence. They have been hired endogenously to the boards after a stringent selection process. Therefore, it is argued that the issue of gender does not matter and the impact of gender diversity on the performance of a firm is insignificant. Despite the fact the Finland enjoys a gender egalitarian image, Finnish boards are still to an extent dominated by men. The study shows a moderate female representation on Finnish corporate boards i.e. 27%. However, this value is at least equal to or larger than other Nordic countries except Norway.

The object of this thesis is to investigate the tool of earnings management firms use to meet analysts’ forecasts and then provide evidence for setting slightly meet and slightly miss as indicator of earnings management. Managers have sort of incentives to meet analysts’ forecasts. In the prior literature, managers have more motivations to meet analysts’ forecasts through earnings management than real activities. I argue that managers will manipulate discretionary accruals in order to beat analysts’ forecasts. And I also argue that slightly meet and slightly miss could be an indicator of earnings management. In the empirical examination, I use discretionary accrual as proxy of earnings management and recalculate it using Jones (1991). Meet analysts’ forecasts are calculated as the difference between actual EPS and forecasts EPS. A frequency test of Meet is presented as well. The result show: (1) Frequency table gives a higher frequency in slightly beat analysts’ forecasts than other situations. (2) A significant positive correlation between slightly meet and miss and discretionary accrual, which capture that if firm try to get close to analysts’ forecast, the discretionary accruals will inceases. This significant correlation also gives strong support to set slightly meet and miss as an indicator of earnings management.

Tutkimuksen tavoitteena on kuvata suomalaisen kirjanpidon kehityskaari aina sen ensiaskelista nykypäivän kautta tulevaisuuden näkymiin. Aihetta tutkitaan historiantutkimuksen ja diskurssianalyysin keinoin. Aiheen laajuuden vuoksi tarkastelun painopiste rajattiin erityisesti kansainvälistymisen näkökulmaan, muitakaan, esimerkiksi digitalisaatiota, unohtamatta. Historiantutkimuksen osiossa käydään läpi suomalaisen kirjanpidon historian merkittävimmät kehitysvaiheet. Historiajakson tarkastelu päättyy 2000-luvulle, jolloin kansallisen kirjanpitomme kansainvälistyminen on päässyt vauhtiin. Tästä eteenpäin suomalaista kirjanpitoa lähdetään arvioimaan diskurssianalyysin keinoin, yhdistellen historiantutkimuksessa tehdyt löydöt nykyiseen ammattilehtien sisältöön. Aineistona diskurssianalyysille toimivat vuosien 2010–2015 ammattilehdistö, tarkemmin Balanssi, Tilintarkastus ja Tilisanomat. Diskurssianalyysi pyrkii vastaamaan tutkimuksen kysymyksiin taloushallinnon ammattilehtien diskurssien ominaispiirteistä, sekä linkittämään historian ja diskurssit keskenään. Tutkittavana ovat myös mahdolliset hegemoniset diskurssit. Diskurssianalyysi ammentaa etenkin ranskalaisen diskurssianalyysin traditiosta, jossa muun muassa diskurssien historiallisuudella on tärkeä asema. Diskurssianalyysin myötä aineiston artikkeleista poimitaan ja näytetään sopiviksi katsottuja esimerkkejä eri diskursseista. Hegemonisina diskursseina esitetään kv.-diskurssi ja digidiskurssi. Näistä kv.-diskurssia lähdetään avaamaan sitä tukeviin osadiskursseihin, joita ovat harmonisointidiskurssi, kokodiskurssi sekä kansallinen diskurssi. Sekä hegemonisten diskurssien että osadiskurssien kuvaus esimerkkeineen antaa vastauksen toiseen tutkimuskysymykseen ominaispiirteistä ja hegemonisista diskursseista. Ensimmäiseen tutkimuskysymykseen diskurssien ja historian yhteydestä vastataan kunkin diskurssin kohdalla erikseen, mutta yleistyksenä voidaan sanoa, että diskursseille näyttäisi löytyvän vaikuttimet ja perustansa historiasta. Kolmatta tutkimuskysymystä suomalaisen kirjanpidon tulevaisuudesta diskurssien perusteella käsitellään muutoksen ja siihen liittyvän diskurssin valossa.

I explore the recent evidence on persistence of accrual anomaly, previously explored by Richard G. Sloan in 1996. Sloan (1996) highlights that the presence of cash flows statement data could improve the results to study accrual anomaly. Therefore, my motivation of the research is to explore accrual anomaly based on cash flows statement (CFS) method and balance sheet (BS) method for measuring accruals. The accounting academics report accruals as many different interpretations (such as the prospective growth of businesses and idiosyncratic risk) therefore, it may not be exploited under accruals hedge strategy. The data is inclusive of NYSE, AmEx, and NASDAQ listed firms, thereby to capture the complete US market from timeline 1990 to 2014. The analysis is based on Feltham & Ohson (1995) earnings persistence model and Mishkin (1983) test model for the market efficiency. I have found that earnings & earnings components are persistent in anticipating future earnings. I have also found that the market is inefficient in learning the persistence of earnings & its components. The market underestimates earnings persistence, overestimates persistence of accruals, and underestimates the persistence of cash flows. BS method and CFS method show the similar behavior of earnings and its components persistence and the market interpretation to them. However, CFS method measures the high persistence of cash flows. Moreover, accruals hedge returns are significant under BS method but insignificant under CFS method. Therefore, I conclude that accrual anomaly exists under BS method and disappears under CFS method. The market misinterpretation of earnings & its components persistence may not be associated with accruals anomaly.

Mergers and Acquisitions are considered as one of the most important corporate events for a company’s growth strategy. This concept dates as far back as the early 1900s, when it began on a domestic scale. In this study, we evaluate the effect of M&A deals on firm performance in the crisis and pre-crisis period. We intend to figure out whether the financial crisis presented a great increase to the bargaining power of business entities in the European financial market. We do this through examining the stock performance surrounding the days leading to the announcement of an M&A deal. We then turn to divide our data into two to examine the separate effect of M&A’s in the crisis and pre-crisis period on the returns to both target and acquiring firms. Next we look at the role that a particular method of M&A financing and industry relatedness play in determining the CAR of acquirer and target firms around the M&A announcement. Firstly, we find with our full sample of 181 M&A deals that in general M&A’s have a positive effect on the performance of the target and acquirer firm although the positive effect is more pronounced (significant) for the target firm than for the acquirer firm. Secondly, we investigate the separate effect of a crisis and pre-crisis period on the CAR of the acquirer and target around the announcement day. We find that Acquirer firms earn positive CAR in the crisis period but they turn negative in the pre-crisis period. However, for the target firms, we find significantly positive CARs during the pre-crisis period than during the crisis period. Thirdly, we investigate the effect that a chosen method of financing will have on the acquirer’s performance during the crisis period and find more highly positive CARs for the acquirer’s that use cash instead of stock as a means of financing their deals. Therefore during the crisis, cash financed deals have a more positive impact on the acquirer’s performance than do stock financed deals. We finally turn to look at the effect of the direction of a firm’s diversification on its performance during the financial crisis period, and find that during the crisis period acquisition made in related industries have a positive effect on the acquiring firm’s performance. The CAR to the acquirer for acquiring targets in unrelated industries is negative which implies that during the crisis period acquisition made in unrelated industries have a negative effect on the acquiring firm’s performance. In a nutshell, we see that most of our results are in line with previous empirical studies. The result of this thesis is beneficial for both institutional and individual investors as they might be prone to a lot of lemon investment if they don’t meticulously scan the M&A market. In accordance with the signaling theory, investors can now have an idea about the current and future condition of the acquiring firm. Investors should be on the lookout for firms that use more cash financing than equity financing since the use of cash is a signal of good new but the use of stock is a signal of bad new to investors. Also acquirers should not relent in their due diligence process especially during the crisis period when it would prove to be most valuable. By undergoing a proper due diligence process acquirer are sure to make accurate and informative decision that may have a positive impact on their overall performance.

Tämän tutkielman tavoitteena on tutkia, mitkä ovat siirtohinnoitteludokumentaation sisältövaatimukset ja miten EU:n käytännesäännöt ja OECD:n siirtohinnoitteluohjeet vaikuttavat siirtohinnoitteludokumentaatioon Suomessa ja maailmalla. Tutkimuksen lähteinä on käytetty pääosin siirtohinnoitteluun liittyvää kotimaista kirjallisuutta. Aiheita on tarkoitus tutkia kansainvälisestä ja kotimaisesta näkökulmasta. Tutkimus tehdään perehtymällä siirtohinnoitteludokumentaatiota koskeviin lakipykäliin ja säännöksiin. Siirtohinnoitteludokumentaatio on varsin ajankohtainen aihe, sillä monet maat ovat viime vuosina laatineet säännökset siirtohinnoitteludokumentaatiolle. Siirtohinnoitteludokumentaatio on avainasemassa siirtohinnoittelun seurannassa. Viimeisen kahdenkymmenen vuoden aikana siirtohinnoitteludokumentaatiovaatimukset ovat yleistyneet maailmalla ja entistä useammissa maissa on alettu kiinnittää huomiota siirtohinnoitteludokumentaatiota koskeviin säännöksiin. Siirtohinnoittelua koskevat lait ja säännökset ovat kansallisia, mutta niitä tulee tarkastella globaalina ilmiönä, sillä maakohtaisesti niissä voi olla huomattavia eroja. Yleensä siirtohinnoitteludokumentaatiota koskevat säännökset eri maissa pohjautuvat OECD:n siirtohinnoitteluohjeisiin tai EU:n käytännesääntöihin. Useat maat ovat laatineet siirtohinnoittelua koskevan lainsäädännön paikallisesta näkökulmasta, joten se ei ole aina optimaalinen kansainvälisille konserneille. OECD ja EU:n siirtohinnoittelufoorumi ovat pyrkineet yhtenäistämään siirtohinnoitteludokumentaatiosäännöksiä. Tosin siirtohinnoitteludokumentaatiosäännökset eivät ole vielä riittävän yhtenäisiä kattaakseen yritysten ja veroviranomaisten tarpeet. Suomen siirtohinnoitteludokumentaatiota koskevat säännökset on määritelty 14 a-14 c §:ssä. Kuten monissa muissa maissa, myös Suomessa siirtohinnoitteludokumentaatiosäännökset pohjautuvat OECD:n siirtohinnoitteluohjeisiin ja EU:n käytännesääntöihin. Suomen veroviranomaiset hyväksyvät EU TPD:n mukaisen siirtohinnoitteludokumentaation.

Tilintarkastuksen laatua on alettu arvioida entistä tarkemmin 2000-luvun alun kirjanpitoskandaalien ja niistä seuranneiden konkurssien jälkeen. Tilintarkastusyhtiöt tarjoavat yleensä samanlaisia tuotteita, jolloin kilpailijoista voidaan erottua laatutekijöillä. Vaikka tilintarkastuksen laatua on selitetty tutkimuksissa useiden eri tekijöiden avulla, tutkimukset eivät ole ottaneet kuitenkaan kantaa latuun tilintarkastusasiakkaan näkökulmasta. Sitä selvitetään tässä tutkimuksessa yrittäjien näkemysten ja kokemusten pohjalta. Tutkimukseni rajoittuu käsittelemään pienten ja keskisuurten yrittäjien näkökulmaa. Olen kiinnostunut yrittäjien omista näkemyksistä, jolloin lähestymistavaksi soveltuu luontevasti laadullinen teemahaastatteluun perustuva tutkimus. Opinnäytetyössä selvitettiin yrittäjien kokemuksia ja näkemyksiä tilintarkastuksen laadusta. Haastattelin neljää kokenutta pk-yrittäjää, jotka edustivat eri toimialoja. Aineisto analysoitiin laadullisen sisällönanalyysin avulla, jossa keskeisimmäksi teemaksi muodostui tilintarkastajan ammattitaito. Muut teemat olivat: näkemys tilintarkastuksesta, tilintarkastusyhteisön koko ja maine, tilintarkastusprosessi ja tilintarkastuksen lisäarvo. Tulosten perusteella voidaan päätellä yritysjohdon kokevan tilintarkastuksen laadun kokonaisuutena hyväksi. Yrittäjien mielestä tilintarkastuksen tärkein tehtävä on antaa varmistus sille, että yrityksessä asiat on tehty rehellisesti ja lainmukaisesti. Osallistujien mielestä tilintarkastajan ammattitaidolla on merkittävä vaikutus tilintarkastuksen lopputulokseen. Tilintarkastajan ammattitaito korostui kaikissa tilintarkastusprosessin vaiheissa, mutta etenkin niissä tilanteissa, joissa tilintarkastajalta kaivataan konkreettisia vihjeitä yritystoimintaan. Tutkimustulosten mukaan myös tilintarkastajien ammattikunnan olisi syytä miettiä omia toimintaperiaatteitaan pystyäkseen paremmin ottamaan pk-yritysten erityspiirteet huomioon. Yrittäjien näkemykset ovat samansuuntaisia tilintarkastuksen laadusta kuin on aikaisemmin havaittu muissa tilintarkastuksen laatua käsitelleissä tutkimuksissa.

The study aims to examine budgeting practices in Vietnam. It is motivated from the lack of research about budgeting practices in developing countries, particularly in Vietnam. Major patterns of budgeting such as its adoption and purposes are investigated. Furthermore, the extent to which variance analysis is used and its roles are also investigated. Another purpose of the study is to compare budgeting patterns between small and medium size companies and large ones, and to find possible association between firm size and budgeting practices. In order to reach those goals, a survey is carried out in Da Nang city, Vietnam. Overall, there are 71 respondents who are financial and non-financial managers, and knowledgeable about the budgeting process in companies. The study finds that most surveyed Vietnamese companies prepare budgets, especially traditional budgets such as annual budgets and operating budgets. On the contrary, “contemporary” budgeting practices such as flexible budgets are not adopted widely. Additionally, it is consistent with previous research that the budgets do serve various purposes in organizations, but planning and control roles of budgeting are more essential than evaluation role. Thirdly, variance analysis is not widely adopted in surveyed companies. For those who conduct variance analysis, control purpose are more focused than evaluation purpose. Last but not least, it is shown from the study that budgeting patterns in Vietnamese surveyed companies are quite similar in all firm sizes as only a few differences are found between SME and large company groups.

This study examines the influence of equity-based remuneration on an association between earnings management and research and development (R&D) expenditures. Prior academic researchers argue that earnings manipulation is significant positive correlated with managers’ decisions related to R&D spending. Besides, the higher amount spending on R&D activities has two sides. On one hand, it is a good signal to indicate the successful market expansion or growth of a firm in the future. On the other hand, it causes by financial constraints. Thus, it is raised a concern that whether the high level of R&D investment, that related to a high stage of earnings management, is optimal or not. Also, a high extent of earnings manipulation is a red warning of boards of directors of a firm. Based on agency theory, incentive related to equity instruments is one of useful tools for aligning the interests between shareholders and managers. Thus, we hypothesize that equity compensation will mitigate the degree of earnings management which is correlated to R&D expenditures. In the research design, Jones (1991) model is used to estimate the discretionary accruals, as the proxy for earnings management. We also build up the empirical models which includes the R&D expenditure, equity-based compensation and other financial control variables. As the results, by using a sample data of listed firms of The United State from 2006 to 2013, we do not find the significant effect of equity-based incentives on the correlation between R&D spending and earnings management. However, in the sensitive analysis, for sample firms with high level of R&D and firms belongs to a business equipment industry such as computer, software and electronic, we find the evidence that managers are less likely to manage earnings through R&D activities when they have granted a greater percentage of equity-based awards.