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archives@tulane.edu / Changing fiscal year-end (FYE) unequivocally impacts time-series consistency, yet firms appear to be willing to change it. Enhanced comparability with industry peers appears to be a significant driver of this change. Aligning FYE with industry peers is associated with an improved information environment as proxied by a significant increase in analyst coverage, the number of forecasts per analyst, and institutional ownership. Additionally, loss-making firms also appear more likely to switch FYEs, ostensibly to dump losses in the less-than-12-month stub period created by the transition. Examining changes to and from December separately, I find that small firms are more likely to move to a non- December FYE, suggesting that accounting costs such as audit fees are a consideration in changing FYE. On average, the market reacts significantly to the FYE change disclosure. / 1 / Zhiwei Zhu

Este trabalho tem o objetivo de analisar os determinantes e as conseqüências econômicas das escolhas de práticas contábeis sob a ótica da Hipótese dos Covenants Contratuais. Mais especificamente, este estudo investiga se os administradores de empresas brasileiras com registro na Comissão de Valores Mobiliários (CVM) e que efetuaram captações de longo prazo (debêntures e créditos bancários) realizam mudanças de práticas contábeis voluntárias com o objetivo de evitar a violação de covenants (baseados em números contábeis) estabelecidos nos contratos de dívida. Na análise desse fenômeno, estudos anteriores sugerem que os administradores de empresas adotam práticas contábeis pouco conservadoras (que aumentam o resultado e o patrimônio líquido) com o objetivo de evitar a violação de covenants contábeis. Com base na análise de 125 companhias brasileiras (com registro na CVM) que captaram recursos de longo prazo no mercado de crédito via debêntures e créditos bancários (no período de 2000 a 2006), e utilizando testes estatísticos univariados (histogramas empíricos e teste qui-quadrado) e multivariados (regressão logística), foi possível demonstrar que as referidas empresas não realizam mudanças de práticas contábeis voluntárias com o objetivo de evitar a violação de covenants contábeis. Os principais motivos que fundamentam essa conclusão são: (a) os baixos custos nos casos de violação dos covenants contábeis; (b) a ativa normatização e fiscalização contábil das agências reguladoras de serviços públicos, especialmente no setor de energia elétrica; e (c) as empresas, em geral, já utilizam práticas contábeis pouco conservadoras. Tal resultado permite supor que, a fim de evitar a violação dos covenants contábeis, os administradores adotam ações reais que impactam o fluxo de caixa da companhia. A principal contribuição dos resultados observados é demonstrar que, apesar da existência de covenants contábeis nos títulos de dívida emitidos pelas empresas brasileiras analisadas, não existem evidências significativas de mudanças de práticas voluntárias oportunistas para evitar a violação dos covenants contábeis. Esse resultado indica a presença da Abordagem da Eficiência Contratual no contexto das empresas que realizam captações de recursos de longo prazo no mercado de crédito no Brasil. / The present study aims to analyze the economic motivations and consequences of accounting choices under the Debt Covenants Hypothesis. Specifically, this study investigates if managers of Brazilian companies that issued long-term debts make changes in accounting methods in order to prevent the breaking of covenants (based on accounting numbers) established in debt contracts. In the analysis of this fact, prior studies suggests that managers of those companies adopt accounting methods less conservatives (that increase earnings and equity) with the objective of preventing the breaking of debt covenants. Through the analysis of 125 public Brazilian companies that issued long-term debts (in the period 2000-2006), and using univariate (real histogram and chi-square test) and multivariate (logistic regression) statistical tests, it was possible to demonstrate those companies do not make changes in accounting methods in order to prevent the breaking of covenants established in debt contracts. The main reasons that underlying these results are: (a) the low costs in breaking debt covenants; (b) the active regulation and oversight public services regulatory agencies, especially in electric energy sector; (c) Brazilian companies, in general, already adopt less conservative accounting methods. Such results, allow us to suppose that managers, in order to prevent the breaking of debt covenants, take real actions that impact the companies cash flow. The main contribution of the observed results is to demonstrate that there is no evidence of significant opportunistic accounting choices with the purpose of preventing the breaking of debt covenants. Such results suggest the presence of the Contractual Efficiency Approach in the context of the companies that issued long term debts in Brazil.

This study examines the relationship between stock prices and accounting figures, primarily the book value of equity and earnings, as well as the market perception of accounting choices implemented by companies. Market event studies from late sixties have initiated numerous of researches, and the majority of contemporary results were consistent with strong belief in the market efficiency theory. The book value of equity and earnings have been proved to have the highest explanatory power of future stock prices. Other accounting-related issues, like inventory methods or accounting for business combination, were proven to have reliable impact on the stock prices. Moreover, the cash flow implications triggered by the accounting change are not an indispensable condition to influence the stock price level. Although a great body of research has treated the relationship between accounting choices and stock prices, a clear-cut mechanism is not well specified. The evidence is inconsistent, and the consequences of accounting change are difficult to measure. However, the accounting figures included in financial statements remain the most important measure of the companies’ performance. Due to the economic and technical progress, which considerably modified the structure of companies and the environment in which they operate, further studies are advisable in order to maintain the reliability of accounting figures on significant level.

<p>This study examines the relationship between stock prices and accounting figures, primarily the book value of equity and earnings, as well as the market perception of accounting choices implemented by</p><p>companies. Market event studies from late sixties have initiated numerous of researches, and the majority of contemporary results were consistent with strong belief in the market efficiency theory. The</p><p>book value of equity and earnings have been proved to have the highest explanatory power of future stock prices. Other accounting-related issues, like inventory methods or accounting for business combination, were proven to have reliable impact on the stock prices. Moreover, the cash flow implications triggered by the accounting change are not an indispensable condition to influence the stock price level. Although a great body of research has treated the relationship between accounting</p><p>choices and stock prices, a clear-cut mechanism is not well specified. The evidence is inconsistent, and the consequences of accounting change are difficult to measure. However, the accounting figures</p><p>included in financial statements remain the most important measure of the companies’ performance. Due to the economic and technical progress, which considerably modified the structure of companies</p><p>and the environment in which they operate, further studies are advisable in order to maintain the reliability of accounting figures on significant level.</p>

Este trabalho tem o objetivo de analisar os determinantes e as conseqüências econômicas das escolhas de práticas contábeis sob a ótica da Hipótese dos Covenants Contratuais. Mais especificamente, este estudo investiga se os administradores de empresas brasileiras com registro na Comissão de Valores Mobiliários (CVM) e que efetuaram captações de longo prazo (debêntures e créditos bancários) realizam mudanças de práticas contábeis voluntárias com o objetivo de evitar a violação de covenants (baseados em números contábeis) estabelecidos nos contratos de dívida. Na análise desse fenômeno, estudos anteriores sugerem que os administradores de empresas adotam práticas contábeis pouco conservadoras (que aumentam o resultado e o patrimônio líquido) com o objetivo de evitar a violação de covenants contábeis. Com base na análise de 125 companhias brasileiras (com registro na CVM) que captaram recursos de longo prazo no mercado de crédito via debêntures e créditos bancários (no período de 2000 a 2006), e utilizando testes estatísticos univariados (histogramas empíricos e teste qui-quadrado) e multivariados (regressão logística), foi possível demonstrar que as referidas empresas não realizam mudanças de práticas contábeis voluntárias com o objetivo de evitar a violação de covenants contábeis. Os principais motivos que fundamentam essa conclusão são: (a) os baixos custos nos casos de violação dos covenants contábeis; (b) a ativa normatização e fiscalização contábil das agências reguladoras de serviços públicos, especialmente no setor de energia elétrica; e (c) as empresas, em geral, já utilizam práticas contábeis pouco conservadoras. Tal resultado permite supor que, a fim de evitar a violação dos covenants contábeis, os administradores adotam ações reais que impactam o fluxo de caixa da companhia. A principal contribuição dos resultados observados é demonstrar que, apesar da existência de covenants contábeis nos títulos de dívida emitidos pelas empresas brasileiras analisadas, não existem evidências significativas de mudanças de práticas voluntárias oportunistas para evitar a violação dos covenants contábeis. Esse resultado indica a presença da Abordagem da Eficiência Contratual no contexto das empresas que realizam captações de recursos de longo prazo no mercado de crédito no Brasil. / The present study aims to analyze the economic motivations and consequences of accounting choices under the Debt Covenants Hypothesis. Specifically, this study investigates if managers of Brazilian companies that issued long-term debts make changes in accounting methods in order to prevent the breaking of covenants (based on accounting numbers) established in debt contracts. In the analysis of this fact, prior studies suggests that managers of those companies adopt accounting methods less conservatives (that increase earnings and equity) with the objective of preventing the breaking of debt covenants. Through the analysis of 125 public Brazilian companies that issued long-term debts (in the period 2000-2006), and using univariate (real histogram and chi-square test) and multivariate (logistic regression) statistical tests, it was possible to demonstrate those companies do not make changes in accounting methods in order to prevent the breaking of covenants established in debt contracts. The main reasons that underlying these results are: (a) the low costs in breaking debt covenants; (b) the active regulation and oversight public services regulatory agencies, especially in electric energy sector; (c) Brazilian companies, in general, already adopt less conservative accounting methods. Such results, allow us to suppose that managers, in order to prevent the breaking of debt covenants, take real actions that impact the companies cash flow. The main contribution of the observed results is to demonstrate that there is no evidence of significant opportunistic accounting choices with the purpose of preventing the breaking of debt covenants. Such results suggest the presence of the Contractual Efficiency Approach in the context of the companies that issued long term debts in Brazil.

The purpose of this research is to examine whether managers of troubled firms engage in income-increasing earnings management for capital market purposes to maintain a listing on the NASDAQ National Market. Troubled firms are defined as those firms whose share price has fallen below the specified dollar-per-share minimum mandated by the market. The two hypotheses attempt to answer two separate, but interrelated questions: First, do managers of troubled firms engage in earnings management more in periods of distress than in periods of non-distress? And second, do managers of troubled firms engage in earnings management more than similar firms not in jeopardy of delisting? Both a time-series and cross-sectional approach is used to answer these questions. The initial grouping consisted of all NASDAQ National Market firms with a share price of $1 or below at some point during the period from March 1997 through September 2002. The final sample consisted of 215 firms for the time-series analysis and 495 firms for the cross-sectional analysis. Two accrual expectation models were used, including the Jones (1991) and the modified Jones Model (Dechow, Sloan, and Sweeney, 1995). The results were unable to confirm that managers engage in this behavior, and similar to the results of DeAngelo, DeAngelo, and Skinner (1994), the findings suggest that managers' accounting choices primarily reflect their firms' financial difficulties, rather than attempts to inflate income through discretionary accruals. After controlling for reverse stock splits, dividend reductions, going-concern issues/bankruptcy, and changes in management, the models found significantly negative abnormal accruals. The dissertation concludes with a discussion of possible interpretations for the findings. / Ph. D.

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Inledning Deloitte gjorde 2013 en granskning av Jönköpings kommun som visade på att rutiner saknades avseende omprövning av nyttjandeperiod för materiella anläggningstillgångar. Detta skulle kunna innebära att det även finns brister i kommunala bolag, varför en jämförelse mellan kommunala och privata bolag görs. Syfte Syftet med studien är att förklara och analysera sambandet mellan ägaridentitet och omprövning av nyttjandeperiod för materiella anläggningstillgångar i svenska fastighetsbolag. Metod Studien har en deduktiv ansats och en kvantitativ forskningsstrategi. En tvärsnittsdesign har gjorts där datan samlats in i form av sekundärdata genom granskning av årsredovisningar. Datan, som utgörs av ett slutgiltigt urval om 405 bolag, har kompletterats med kvalitativa intervjuer med fem revisorer. Slutsats Den statistiska analysen visar ingen signifikans för sambandet mellan omprövning av nyttjandeperiod och ägaridentitet. Det som dock verkar påverka benägenheten att ompröva nyttjandeperiod är vilken revisionsbyrå bolaget anlitar. Bolag som anlitar Deloitte eller en annan revisionsbyrå än Big 4 är mer benägna att ompröva nyttjandeperiod än bolag som anlitar övrigarevisionsbyråer. / Introduction An inspection of Jönköping’s municpality made by Deloitte in 2013 showed a lack of routines regarding reviewing of useful life for tangible fixed assets. This could imply a lack of routines in municipal corporations as well, and because of this a comparison is made between municipal and private corporations. Purpose The aim of this study is to explain and analyze the relationship between owner identity and reviewing of useful life for tangable fixed assets in Swedish real estate corporations. Method The following is a quantitative study based on a deductive approach and a cross-sectional design. Data has been collected as secondary data through examiniation of annual reports. The data, which consists of a final selection of 405 corporations, has been complemented through qualitative interviews with five auditors. Conclusion The statistical analysis shows no significant relationship between reviewing of useful life and owner identity. However, a factor that seems to affect the propensity to review useful life is depending on which audit firm the corporation uses. Corporations that use Deloitte or another audit firm than Big 4 tend to review useful life to a greater extent that those who use other audit firms.

Este trabalho se baseia na teoria de escolhas contábeis, pautadas nas premissas: (i) eficiência de contratos; (ii) assimetria de informação e (iii) comportamento oportunista (Holthausen, 1990). A adoção inicial do IAS40/CPC 28 - Propriedades para Investimento permite a escolha do método de custo ou valor justo para mensuração. Foi utilizada uma amostra de 36 empresas abertas que possuíam propriedades para investimento cujo método de avaliação foi divulgado no ano de 2010. O método de mensuração é a variável dependente, uma dummy para escolha do custo ou valor justo. As variáveis independentes analisadas foram: Tamanho; Endividamento; Proporção de Propriedades para Investimento com relação ao Ativo Total; (ROE) Return on Equity, e Lucro Líquido. Através de uma Regressão Logit no software Stata® avaliaram-se quais variáveis são mais influentes na escolha contábil. O achado mais relevante foi a proxy para tamanho de que os custos políticos reduzem a probabilidade de utilizar o valor justo, considerando um nível de significância estatística de 5%. As variáveis constituem-se em: Endividamento, Proporção de Propriedades para Investimento com relação ao Ativo Total e Lucro Líquido, sendo explicativas para escolha do valor justo, considerado um nível de significância estatística de 10%. A variável ROE (returno n equity) não se mostrou significativa. Considerando o ponto de corte (cutoff) de 0,5, o percentual de acerto do modelo foi de 88,89%, ou seja, das 36 observações, 32 foram classificadas corretamente. Por fim, em termos normativos o estudo pode servir aos órgãos reguladores, pois em 2010, das 75 empresas que apresentavam propriedades para investimentos nos balanços, somente 24 sequer mencionaram a forma de avaliação. / This study is based on accounting choice theory, which premises are: (i) contractual efficiency; (ii) information asymmetry and (iii) managerial opportunism reasons could determinate the choice. At the first time adoption for IAS 40 - Investment Properties which allow the choice between fair value or cost model for evaluation. It was used a sample of 36 listed companies which disclosure the evaluation method for 2010. A dummy was used as dependent variable for the choice between cost or fair value model and the independents variable are: Size; Leverage; Rate of Investment Properties against Total of Assets; Return on Equity and Income. Using a logit regression on software Stata® evaluates which variable more influence in the accounting choice. The most relevant finding is the proxy size which political costs decrease the possibility to use fair value, for 5% of statistical significance. Ther variables are: Leverage, Rate of Investment Properties against Total of Assets, that are relevant for choosing fair value, for 10% of statistical significance. The variable ROE is not significant. With a cutoff as 0,5 the percentage of accuracy for the model is 88,89%, which means 36 observations, 32 are correctly classified. In the end, in a normative way, this study may help the accountant setters. In 2010, for 75 listed companies which has investment properties in their financial report only 24 companies not even mention the evaluation method.