The main aim of this thesis is to evaluate the feasibility of intangible asset accounting in financial reporting with particular reference to the football industry. It also examines related accounting policies. Lack of reliable measurement is the major obstacle to the recognition of intangible assets. The measurement of intangible assets is problematic due to a lack of verification through reference to an active market. However, drawing on Human Resource Accounting, the thesis argues that identifying and measuring human resource assets may be possible in the football industry. The human resource asset, the player registration, is subject to sufficient control through unique industry structures to justify recognition as an intangible asset. The existence of an active market for player registrations facilitates reliable measurement. In the football industry, a wide variety of accounting policies are employed in accounting for player registrations and other material transactions. Hypotheses regarding the reasons for selecting particular accounting policies are developed and tested. Findings suggest that institutional pressure which influences perceptions of legitimacy and credibility can affect the selection of accounting policies. The thesis also develops and tests a model to value player registrations as intangible assets where they are not subject to market transactions. The ability to reliably measure intangible assets is regarded as crucial to their recognition in financial reporting. In addition, it will lead to the acceptance of intangible asset policies as legitimate and credible, despite the market orientated bias of traditional financial reporting.

This research set out to establish whether the supranational management by the European Central Bank (ECB) of the monetary policy and exchange rate policy of the 12 European Union (EU) member states adopting the euro single currency, could be considered as a precursor to the development of a one-size-fits-all model of EU capitalism. In doing so, eight typologies of EU national capitalisms were constructed from the broad range of literature of types or varieties of capitalism, and were employed to test the performance of their economies between 1986 and 2006. Using a broad range of macroeconomic variable indicators over a period that began with Single European Act (SEA) and coursed through seven years past the launch of the euro in 1999, levels of influence of the ECB and euro as institutions on the performance of the selected capitalism groups were measured in order to establish the extent to which the ECB as a genuine supranational body would be able to both complete the planned transmission to full EU economic and monetary union as a basis for future EU political union. The findings suggest that although there is evidence of significant overall influence over most of the macroeconomic variable indicators of the selected typologies, it remains unclear whether such supranational influence will be enough to overcome the difficulties surrounding the more politically sensitive areas of taxation and unemployment. And, until the effective supranational management of these variables, which would ultimately encompass levels of supranational influence over fiscal policy and tax harmonisation, the current level of ECB supranational power will remain as it is for the foreseeable future.

This thesis investigates value creation in MBO transactions and the effect of earnings management on the perceived performance improvements following buyout. Various samples of buyouts are used to examine earnings management and performance, however, especial attention is given to private-to-private MBOs. We find that MBOs and private equity sponsors generate little additional value after controlling for selection bias. MBO performance peaks in the year preceding MBO, a result that could indicate practice of earnings management before MBO transactions. Further analysis of accounting numbers reveals that managers of private firms inflate earnings prior to MBO. The earnings management practice and resulting accrual reversals have substantial impact on the subsequent performance. We also show that earnings management is mainly practiced by private non-family firms while family firms do not engage in earnings management prior to MBO transaction. The presence of a private equity investor in the team tends to constrain practice of earnings management in MBOs, while private equity investors tend to inflate earnings at the time of exit. Overall, the results suggest that value gains or losses subsequent to buyout do not fully reflect operational activities. Selective investment strategies of private equity funds and earnings management influence performance. Key to understanding performance is the distinct managerial and ownership motivations for undertaking an MBO that vary across different types of buyouts.

This thesis includes four empirical studies related to foreign direct investment (FDI), governance, economic growth and the environment. We firstly investigate the existence of the so called pollution haven hypothesis (PHH) in China, i.e. the impact of regional environmental regulations (ER) on FDI inflows. We then examine the other determinants of FDI: regional government effort to tackle corruption and government efficiency. It then extends the methodology of the first two studies and revisits the PHH issues by treating ER as endogenous. Finally, we observe the effects of economic growth and foreign direct investment on the environmental quality across Chinese cities. After addressing the weaknesses in previous literature, our findings provide the following results. First, an intra-country pollution haven effect does exist in China. Such an effect is also found when ER is treated as endogenous but not robust for the sensitivity checks using different instrumental variables and estimators. Second, FDI is attracted to regions that have made more effort on fighting against corruption and that have more efficient government. Third, government variables do not have a significant impact on ER. Fourth, economic growth has a negative effect on environmental quality at current income levels in China. Finally, foreign investment has positive effects on water pollutants and a neutral effect on air pollutants. Such effects vary across pollutants and investment from different sources.

Microfinance institutions (MFIs) may be flourishing in commercial terms but few are profitable. While MFIs in other regions have consistently reported positive profits, those operating in Africa continue to post negative profits. What explains this disparity? This thesis contributes to the current state of knowledge and research on microfinance profitability by investigating the potential determinants of MFIs profitability with a focus on Africa. Further empirical work is carried out to examine: (i) profit persistence and the speed of convergence; (ii) impact of financing choice on microfinance profitability and (iii) the impact of institutional environment of the host economy where MFI is located on profitability. This thesis is pioneering in using System-GMM estimators in studies of determinants of microfinance profitability which enables us to control for possible endogeneity. The analytical framework uses an unbalanced panel dataset comprising of 210 MFIs across 32 countries operating from 1997 to 2008. Our main estimations show that MFI profitability is non-negligibly driven by MFI specific factors and the institutional environment of the host country. Specifically, average profitability is higher in MFIs that are efficient, well-capitalized and with scale advantages. A key result is that macroeconomic environment is not significant in explaining microfinance profitability.

With the move towards a society where responsibility has been placed upon the individual to make financial provision for future events, comes the need for individuals to be able to interact with the financial services sector and make informed decisions regarding their financial choices. This research focuses on the barriers that influence why and how consumers access advice from Regulated Financial Advisers. Three key variables are highlighted by this research that each affect the consumer’s ability to access regulated financial advice; Firstly, knowledge, where sub-themes relating to need, knowledge of services and ‘finding an adviser’ were identified. These highlighted the concept of advice not generally being the ‘subjective norm’. Secondly, trust, where the concepts of ‘general trust’ and ‘individual trust’ emerged along with the issues surrounding consumers’ abilities to apply ‘critical trust’. Thirdly, affordability and cost, which includes the consumer’s appreciation of the value of advice. Finally, this research asks whether consumers are overwhelmed by the extent of the provision they need to make to shape their financial future. It therefore begs the question as to whether the degree to which the welfare state has already been rolled back has resulted in financial planning issues beyond the capabilities of most consumers.

In recent years, most developed countries have suffered a severe recession due to a financial crisis starting in the US with mortgages loans. The lack of credit risk management has been pointed out as one of the causes of this bank panics. To avoid a similar situation, the credit card companies need to have proper risk management tools. This thesis presents a credit scoring system which aims at setting credit lines and thus, controlling credit risk. It includes three types of models: application scorecards, early detection scorecards and behavioral scorecards. They have been built on real and recent data coming from a German credit card company. The models have been built with a training sample and validated accordingly, using logistic regression. Information value and validation charts have been used for comparing the models. In the scoring process described, the scorecards are used in a sequential order. The author shows that minimizing losses might not be optimal in order to maximize profit. Finally, the author presents possible extensions to the research. The author hopes that the microeconomic analysis of the mechanics of a particular lender’s credit allocation process described in this thesis can play some part in preventing future financial crisis.

This doctoral thesis aims to contribute to the interaction between exchange rates and stock prices at firm level, using a large unbalanced panel consisting UK non-financial companies over the period 1990—2011. There are six chapters. After the Introduction, Chapter 2 critically and comprehensively reviews previous theoretical and empirical studies of the relationship between exchange rates and stock prices, and then suggests several new research ideas. Chapter 3 derived a theoretical framework for the transmission channels through which changes in exchange rates pass-though into stock prices. The model is then calibrated to provide implications. Two main transmission channels are identified: the revenue-side channel and the cost side channel. The findings show that the effect through the revenue-side channel can explain more than 80% of currency exposures, while less than 20% can be explained by impact through the cost-side. Chapter 4 develops an empirical model to provide evidence for the theoretical framework in Chapter 3. Meanwhile, this chapter also examines how firms’ characteristics have an impact on identified transmission mechanism. Chapter 5 distinguishes the unanticipated parts of exchange rate variations from the anticipated ones, using more advanced return decomposition techniques and VAR specifications. To be specific, foreign exchange beta is decomposed into foreign exchange beta due to unanticipated changes in cash flows and discounted rates. The key findings, contributions and limitations are given in Chapter 6, as well as new research ideas for the future.

This thesis is based on a case study of the design and use of management control systems (MCS) in a post-merger organisation. The study, which is motivated by the lack of literature on management control systems under mergers and acquisitions, is based on a Nigerian bank that has gone through a merger under the Central Bank of Nigeria’s (CBN) directives to consolidate the banking sector. Data for the analysis was gathered from two sources. Firstly, semi-structured interviews were conducted with managers at various levels of the bank. Secondly, various internal and external documents were examined to corroborate the findings from the interviews. Theoretically speaking, the study drew on different strands of institutional theory to provide an understanding and interpretation of the results. First, new institutional sociology (NIS) provided an explanation of the impacts of external institutions on the merger as well as the design and use of post-merger controls. Old institutional economics (OIE) and power framework were also drawn on to explain the impact of internal institutions and power relations on the merger and the design and use of post-merger controls. The study found evidence of how various coercive, mimetic, and normative isomorphic forces as well as intra-organisational power relations contributed to the institutionalisation of controls as rules and routines in the post-merger organisation. The study contributes to knowledge by extending our understanding of the management controls literature on mergers and acquisitions.

Executive ownership and CEO over-confidence can affect the issue of firm policies. The thesis examines the influence of executive ownership on the firm accounting strategy and the dividend payout policy in China. The thesis also examines the influence of CEO over-confidence on the cash policy and the cash adjustment speed in the U.S. Firstly, I investigate the relationship between the executive ownership and accounting conservatism in China. The results show that accounting conservatism has a U shape relationship with the executive ownership. I further find that any deviations from the optimal executive ownership can increase accounting conservatism level in the firms. Secondly, I examine the relationship between executive ownership and dividend tunnelling behaviour in China. The results show that the increase of executive ownership can increase the dividend tunnelling behaviour. Thirdly, I investigate the relationship between CEO over-confidence and cash adjustment speed to make the cash reverse to the target cash level. The results show that the over-confident CEOs have the intentions to store more cash. Therefore, they reduce the cash adjustment speed when there is excess cash in the firm.