Thesis (Ph. D.)--University of Oregon, 2005. / Typescript. Includes vita and abstract. Includes bibliographical references (leaves 69-71). Also available for download via the World Wide Web; free to University of Oregon users.

Thesis (Ph. D.)--University of Rhode Island, 2005. / Typescript. Includes bibliographical references (leaves 127-134).

published_or_final_version / Business / Doctoral / Doctor of Philosophy

Thesis (Ph. D.)--University of Missouri-Columbia, 2007. / The entire dissertation/thesis text is included in the research.pdf file; the official abstract appears in the short.pdf file (which also appears in the research.pdf); a non-technical general description, or public abstract, appears in the public.pdf file. Title from title screen of research.pdf file (viewed on September 28, 2007) Vita. Includes bibliographical references.

A research report submitted to the SCHOOL OF ACCOUNTING Faculty of commerce, law and management University of the Witwatersrand In partial fulfilment of the requirements for the degree of Master of Commerce / This study assesses the ability of Jansen, Ramnath & Yohn (2012) diagnostic, which is based on the relationship between the change in the asset turnover ratio and profit margin ratio, to distinguish between those firms suspected of manipulating reported financial figures by means of earnings management (EM) and firms that have not attempted earnings management. The study aims to determine whether, as suggested by Jansen et al (2012), the change in the asset turnover ratio and profit margin ratio as well as the direction of the change, can potentially indicate EM. In addition, the study aims to determine whether this new, simplistic diagnostic is incrementally useful to discretionary accruals in identifying EM. The sample of suspected EM firms was obtained from a study conducted by Rabin & Negash (2012), using kernel density estimation (Lahr, 2014). The results of this research suggest that Jansen et al.’s (2012) diagnostic is a useful indicator for identifying firms that might have manipulated reported financial figures through the use of earnings management. The study however shows that, due to weaknesses in either the diagnostic, in that it is limited in its ability to identify EM through sales, or in the method used to obtain the sample, this diagnostic is not incrementally useful to discretionary accruals models in identifying EM. Instead it should be used in conjunction with other models. / MT2017

Song Yingkun. / Thesis submitted in: December 1999. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2000. / Includes bibliographical references (leaves 31-34). / Abstracts in English and Chinese.

Doctoral thesis submitted to the University of the Witwatersrand, Faculty of Commerce, Law and Management in fulfilment of the requirements for the degree of the Doctor in Philosophy, December 2016 / Healy and Wahlen (1999:368) define earnings management as an event that “occurs when managers use judgement in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers.” Management’s intent to mislead users distinguishes accruals that signal managers’ inside information about future cash flows from earnings management which intends to misrepresent performance (Dechow and Skinner, 2000; Parfet, 2000). Earnings management is a very serious issue; if it is not detected it can result in large financial losses for investors and creditors. Earnings data is a fundamental input to valuing a firm’s shares and prospects. Erroneous assessments of future cash flows because of misleading information will result in invalid share valuations and incorrect lending decisions which can have negative consequences on capital markets. The severe negative consequences of earnings manipulation, if undetected, suggest that investors, auditors and regulatory bodies should be aware of the prevalence of earnings management in an economy, whether investors are able to detect and price suspected earnings management and the most efficient way to detect it. This thesis aims to answer two fundamental questions: Does earnings management exist in South Africa? Are investors in South Africa misled by earnings management? How to detect earnings manipulation is the predominant theme in earnings management literature. The majority of research has been conducted in advanced economies and has transformed from identifying discontinuities in earnings distributions and measuring discretionary accruals to sophisticated predictive models, such as the F-score (Dechow, Ge, Larson and Sloan, 2011). Yet, research into the subject is sparse in emerging markets and tends to replicate existing methodology. The objective of this thesis is to examine earnings management in the South African economy, with the specific aim of identifying a databank of suspected earnings management firms that can be used for further research. Because the number of firms that have been forced to restate earnings is small in this environment, this thesis resorts to identifying suspected earnings management firms using discontinuities in earnings distributions. South Africa is similar to other emerging economies in that it is characterised by concentrated ownership, weaker legal enforcement and a smaller stock exchange. The South African environment is dissimilar to emerging economies as the JSE is considered to be well regulated, accounting and auditing standards are world class and accounting transparency and disclosure are satisfactory (Leuz, Nanda, and Wysocki, 2003). The results of this thesis are relevant in an institutional and macroeconomic setting where incentives to manipulate earnings, enforcement, legal protection, rule of law and sample size may differ from those in developed economies. This thesis firstly, focuses on methodological issues that may be encountered by researchers in identifying discontinuities in earnings distributions in emerging economies and secondly, validates kernel density estimation, Lahr (2014), as a viable methodology to test for earnings management by comparing total accruals, discretionary accruals and working capital accruals between suspected earnings management and non-earnings management firms. Thirdly, deferred tax expense is considered as a predictor variable in place of discretionary accruals in detecting suspected earnings management firms. Finally, in order to investigate investors’ reaction to suspected earnings management this thesis investigates whether the market prices suspected earnings management firms differently from non-earnings management firms. Pre- selected researcher binwidths (Burgstahler and Dichev, 1997, Coulton, Taylor and Taylor, 2005, Glaum, Lichtblau, and Lindemann, 2004; Holland and Ramsay, 2003) prove to be unsuitable in this milieu. Consequently kernel density estimation Lahr (2014), which derives bandwidths from the empirical earnings distributions, is used to identify discontinuities and to concurrently investigate the effect of deflation on the location of discontinuities. Discontinuities are shown to exist in earnings levels and changes distributions and emerge around zero in earnings levels distributions where number of shares is the deflator. Two important results emerge from this analysis. Firstly, when kernel density estimation is used in levels distributions, there is evidence that deflating by market value of equity and total assets shifts the location of suspected earnings management firms to the second and third intervals to the right of zero. Scaling does not alter the location of suspected earnings management firms in earnings changes distributions. Secondly, in the earnings deflated by number of shares distribution there is evidence that the band of suspected earnings management firms contains the results of firms that have upwardly and downwardly manipulated earnings. The implication of these findings are that deflating by number of shares is probably the most efficient scalar and that if doubt exists, alternative deflators should, at least, be compared between profit and loss firms. In addition, in the presence of evidence of downwards earnings management, researchers should evaluate whether and how to identify firms that are suspected of having reduced earnings. Specifically in emerging market research, these results indicate that it is inappropriate to merely replicate distribution research based on researcher selected binwidths and that kernel density estimation is probably more efficient in identifying discontinuities as it gives researchers a much broader perspective on the location of discontinuities. Kernel density estimation is confirmed as a method to identify discontinuities in earnings levels and changes distributions by comparing total, discretionary and working capital accruals between suspected earnings management and non-earnings management firms. Evidence that discontinuities in earnings distributions may be attributable to earnings management activities is found where earnings levels and earnings changes are deflated by number of shares and market value of equity, both modified Jones and asymmetric BS discretionary accruals are significantly income increasing in suspected earnings management (EM) firms and income decreasing in non-EM firms. Scaling by total assets is not a suitable deflator in the South African context as it appears to affect the sign and statistical significance of the accruals metrics in the earnings levels before and after tax distributions. This result does not detract from the efficiency of kernel density estimation as it is attributable to the inefficiency of total accruals as a scalar in an emerging market environment. Furthermore, this research endorses Ball and Shivakumar’s (2006) (BS) finding that an asymmetric discretionary accruals model is more efficient in estimating discretionary accruals in all the distributions, irrespective of deflators. In addition, the results of this thesis show that, in an emerging economy, deferred tax is incrementally useful to modified- Jones and the asymmetric BS discretionary accruals in detecting earnings management. The implication of this result is useful to investors, auditors and regulators because deferred tax movements and its components are a visible and identifiable numbers in financial statements. Deferred tax expense can be used, instead of complicated discretionary accrual models, to identify evidence of earnings management. This means that the components of the deferred tax asset or liability accounts can be analysed to highlight unusual movements which may in turn, focus attention on unusual accruals. For researchers, this result has important implications. Kernel density estimation can be used to identify suspected earnings management firms which can be used to further research. The final chapter of this thesis explores whether investors price suspected earnings management and nonearnings management firms differently and finds that, in this South African sample, there is no difference in price levels or cumulative abnormal returns in suspected earnings management and non-earnings management firms. This result is in sharp contrast to Balsam, Bartov, and Marquardt (2002) and Baber, Shuping, and Sok-Hyong (2006) who report a negative association between unexpected discretionary accruals and cumulative abnormal returns and Keung, Lin, and Shih (2010) who find that investors react negatively to zero or small earnings surprises. To some extent the results of this section of the thesis supports the finding in Gavious (2007) that prices react to discretionary accruals only after the introduction of revised analysts’ forecasts.The finding in this thesis implies that investors in South Africa are unable to detect earnings management. This outcome should be viewed in the context of prior research that reports that the JSE may be inefficient (Bhana, 1995, 2005, 2010; Hoffman, 2012; Ward and Muller, 2012; Watson and Roussow, 2012) and may be attributed to the fact that there is no signal to investors that the quality of earnings may be questionable in the sample of suspected earnings management firms. All in all, the findings of this thesis indicate the existence of earnings management in listed companies in South Africa. / XL2018

Thesis (Ph.D.)--Mississippi State University. Department of Accounting. / Title from title screen. Includes bibliographical references.

Thesis (MDF)--Stellenbosch University, 2011. / ENGLISH ABSTRACT: The study undertakes an extensive literature review and analysis of the South African Government’s venture towards adopting accrual accounting in the national and provincial spheres of government. The venture is benchmarked against similar ventures of New Zealand, Australia and the United Kingdom. The experiences of other countries are used only to the extent needed to shed further light on certain issues and do not constitute a meaningful portion of the study. The study examined whether the accruals basis of accounting will increase the value of the system of accounting in the broader strategy to improve service delivery in the national and provincial spheres of government in South Africa. Two subsidiary issues are also examined: whether the departments are ready and able to cope with a change to accrual accounting in the foreseeable future; and the risks inherent in the change The main observations of the study are that the Government of South Africa (GoSA) faces a serious service delivery crisis. The government has identified that a broad package of reforms, including an improved system of accounting, is needed to address the service delivery dilemma. The change from the current modified cash to the accruals basis of accounting in the national and provincial spheres of government forms part of this solution. The change to accrual accounting is aimed at producing additional and more sophisticated information that will be used to improve decision making and ultimately the quality and cost of government services. This move is consistent with the requirements of the PFMA, which requires the government’s accounting system to operate within the GRAP framework, an accrual accounting format. The paper finds that although accrual accounting is a superior model in theory, in practice there is an increasing sense of disillusionment with the outcomes of accrual accounting, hence an accompanying decline in the interest shown by governments across the world in changing to this format. In all three countries studied there is evidence that accrual accounting reform has underperformed relative to the original expectations. Causes of this scenario are linked to the adoption of a model of accrual accounting that is not properly configured for the nuances of the public sector, poor implementation and in some cases the unrealistic expectation of seeing results too soon after implementation. These countries have had to take additional measures to obtain value, some of which nevertheless remain elusive. All three countries nevertheless cited improved asset management as the prime benefit of the accrual accounting system. It is noted that, when the information produced through the system of accrual accounting is used effectively, it ought to result in a more effective, efficient and transparent use of resources – a precondition for improving service delivery. The paradox is that accrual accounting is used in the South African municipalities and public entities, yet, the majority of these institutions have dismal service delivery records. This illustrates that accrual accounting in and of itself will not make a significant impact on the quality of service delivery and that there is a need for an intensive programme of control, governance and skills improvement alongside the accrual accounting reform. In the final analysis the study finds that there is a paucity of evidence showing the causality between the adoption of accrual accounting and improvements in service delivery; in the main because accrual accounting was introduced within a broader set of reforms and it has not been possible to isolate its impact. It is also observed that the national and provincial departments are underprepared for accrual accounting and that there are significant risks to implementing the change in the foreseeable future. Given this scenario, the hypothesis that the accruals basis of accounting is a superior model for addressing the service delivery challenges in the GoSA cannot be confirmed. / AFRIKAANSE OPSOMMING: Die studie onderneem 'n omvattende literatuurstudie en analise van die Suid-Afrikaanse Regering se onderneming tot die goedkeuring van Toevalling rekeningkunde in die nasionale en provinsiale sfere van die regering. Die onderneming is teen soortgelyke ondernemings van Nieu-Seeland, Australië en die Verenigde Koninkryk vergelyk. Die ervarings van ander lande word slegs gebruik in die mate wat nodig is om meer lig te werp op sekere kwessies en maak nie 'n betekenisvolle gedeelte van die studie uit nie. Hierdie studie ondersoek of die toevalling rekeningkundige grondslag die waarde van die rekeningkundige stelsel van toename in die breër strategie om dienslewering in die nasionale en provinsiale sfere van die regering in Suid-Afrika sal verbeter. Twee addisionele kwessies word ook ondersoek om te bepaal of departemente binne die afsienbare toekoms gereed en in staat sal wees om aan te gaan met 'n verandering aan die Toevalling rekeningkunde asook die risiko's wat inherent in die verandering is sal kan hanteer. Die belangrikste waarnemings van die studie is dat die Regering van Suid-Afrika 'n ernstige dienslewering krisis in die gesig staar. Die regering het vasgestel dat 'n breë pakket van die hervorming, insluitend 'n verbeterde stelsel van rekeningkunde, nodig is om die dienslewering dilemma aan te spreek. Die verandering van die huidige rekeningkundige stelsel na die toevalling basis van rekeningkunde in die nasionale en provinsiale sfere van die regering vorm deel van hierdie oplossing. Die verandering aan die toevalling rekeningkundige is gemik op die vervaardiging van addisionele en meer komplekse inligting wat gebruik sal word om besluitneming en uiteindelik die kwaliteit en koste van die regering se dienste te verbeter. Hierdie stap is in ooreenstemming met die vereistes van die PFMA, wat vereis dat die regering se rekeningkundige stelsel te bedryf binne die raamwerk van die GRAP, 'n toevalling rekeningkundige formaat. Die ondersoek het bevind dat hoewel Toevalling rekeningkunde 'n uitstekende model in die teorie is dat daar in die praktyk 'n toenemende gevoel van ontnugtering met die uitkomste van toevalling rekeningkundige is en die belangstelling wat deur die regerings regoor die wêreld in die verandering na hierdie formaat ‘n beduidende afname toon. In al drie lande wat ondersoek is, is daar bewyse dat die hervorming van die boekhoudsysteem onder presteer het met betrekking tot die oorspronklike verwagtinge wat gestel was. Die oorsake hiervan is gekoppel aan die aanvaarding van 'n model van die toevallingsgrondslag rekeningkundige wat nie behoorlik ingestel vir die nuanses van die openbare sektor, swak uitvoering en in sommige gevalle die onrealistiese verwagting dat resultate vinnig na die implementering gesien sal word. Hierdie lande het bykomende maatreëls ingestel om waarde te verkry maar sommige van die waardes bly steeds ontwykend. Al drie lande is dit eens dat verbeterde besluitneming, die primêre voordeel van die boekhoudsysteem, die kritiese insette bly vir verbeterde dienslewering. Dit is bekend dat wanneer die inligting wat deur die stelsel van toevalling rekeningkundige geproduseer word, doeltreffend gebruik word, dit tot 'n meer effektiewe, doeltreffende en deursigtige gebruik van hulpbronne behoort te lei - 'n voorvereiste vir die verbetering van dienslewering. Die paradoks is dat toevalling rekeningkunde in die munisipaliteite en openbare entiteite gebruik word, maar die meerderheid van hierdie instellings het 'n swak dienslewering rekord. Dit illustreer dat toevalling rekeningkunde in en van opsigself nie 'n beduidende impak op die gehalte van dienslewering sal maak nie en dat daar 'n behoefte vir 'n intensiewe program om beheer, bestuur en vaardighede te verbeter bykomend tot die oplopende rekeningkundige hervorming moet wees. Die studie het bevind dat daar 'n gebrek aan bewyse tussen die aanneming van toevallingrekeningkundige en die moontlike verbeterings in dienslewering met die stelsel is. In hoofsaak is die boekhoudsysteem binne 'n breër stel hervormings ingestel en kan die moontlike impak daarvan nie geisoleer word nie. Dit is ook waargeneem dat die nasionale en provinsiale departemente swak is in die toevallingrekeningkundige stelsel en dat daar beduidende risiko's vir die implementering van die verandering in die afsienbare toekoms. In lig van hierdie opsomming kan die hipotese nie bevestig word dat die toevallings rekeningkunde as ‘n beter model bevestig is om die dienslewering uitdagings aan te spreek in die Regering.

In 1988 the New South Wales (NSW) Government was the first in Australia, and amongst the first in the world, to commit to implement accrual accounting for its General Government Sector. Subsequently, accrual accounting has been implemented by numerous governments, including all Australian governments. This thesis examines why the NSW Government decided to implement accrual accounting and the impact of this accounting change on decision making within a General Government Sector organisation. The historical account is derived from a combination of archival and oral data sources whilst an organisational learning theoretical frame is used in a single-site case study to understand the impact of accrual accounting on managerial decision making. The history of the NSW Government adoption of accrual accounting is characterised by five notable features. First, the whole-of-government initiative was implemented with remarkable speed. Second, the change was aided by the actions of an epistemic community, in which private sector consultants were most active. Third, the change was justified through expected improvements in accountability and management. Fourth, a period of resistance to the change was followed by an absence of critical discussion on the implications of the change as forces supportive of the change synergistically combined. Fifth, the change is explained by mimetic forces that initially coalesced around phantom images, presented by consultants, and subsequently recognised self-interest as an integral part of the change to accrual accounting. The impact of accrual accounting on management decision-making at an organisational level from has been mixed. Information acquisition has expanded in that new sets of accounting data are collected. However, information distribution has been unchanged by accrual accounting whilst information interpretation only marginally changed at a top management level with no discernible change at operational levels. Organisational memory has been altered by accrual accounting in that additional accounting skills and information are now held. However, use of that organisational memory is severely impeded by organisational objectives and constraints that effectively render accrual accounting information irrelevant to public sector managers’ concerns. Policy implications arising from this project are that an alternative model of accrual accounting is required together with the dual recognition that centrally imposed change may produce unpredicted change at an operational agency level and that accounting change needs to be matched to organisational characteristics. Additionally, improvements in asset management, as sought by advocates of accrual accounting, could have been delivered by non-accounting means and there is little prospect for improved managerial decision-making from the current model of accrual accounting. / http://proxy.library.adelaide.edu.au/login?url= http://library.adelaide.edu.au/cgi-bin/Pwebrecon.cgi?BBID=1375063 / Thesis (Ph.D.) - University of Adelaide, Business School, 2009