Research in Accounting Regulation
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1 2 3 4 5 6 7 8 9 1011 11 12 13 14 15 16 17 18 19 2011 21 22 23 24 25 26 27 28 29 3011 31 32 33 34 35 36 37 38 39 40 i 1 2 3 4 RESEARCH IN ACCOUNTING 5 6 REGULATION 7 8 9 1011 11 12 13 14 15 16 17 18 19 2011 21 22 23 24 25 26 27 28 29 3011 31 32 33 34 35 36 37 38 39 40 i ii RUNNING HEAD 1 2 3 4 RESEARCH IN ACCOUNTING 5 6 REGULATION 7 8 Series Editor: Gary J. Previts 9 1011 Recent Volumes: 11 12 Volumes 1–14: Research in Accounting Regulation 13 14 Supplement 1: 10th Anniversary Special 15 16 17 18 19 2011 21 22 23 24 25 26 27 28 29 3011 31 32 33 34 35 36 37 38 39 40 Running Head iii 1 RESEARCH IN ACCOUNTING REGULATION VOLUME 15 2 3 4 5 RESEARCH IN 6 7 8 ACCOUNTING 9 1011 11 REGULATION 12 13 EDITED BY 14 15 GARY J. PREVITS 16 17 Case Western Reserve University, 18 Cleveland, USA 19 2011 ASSOCIATE EDITOR 21 22 THOMAS R. ROBINSON 23 University of Miami, Coral Gables, USA 24 ASSISTANT EDITOR 25 26 NANDINI CHANDAR 27 28 School of Management, Rutgers University, USA 29 3011 31 2002 32 33 34 35 36 37 JAI 38 39 An Imprint of Elsevier Science 40 Amsterdam – London – New York – Oxford – Paris – Shannon – Tokyo iv RUNNING HEAD 1 ELSEVIER SCIENCE Ltd The Boulevard, Langford Lane 2 Kidlington, Oxford OX5 1GB, UK 3 © 2002 Elsevier Science Ltd. All rights reserved. 4 This work is protected under copyright by Elsevier Science, and the following terms and conditions apply to 5 its use: 6 Photocopying 7 Single photocopies of single chapters may be made for personal use as allowed by national copyright laws. 8 Permission of the Publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document 9 delivery. 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Address permissions requests to: Elsevier Science Global Rights Department, at the mail, fax and e-mail 27 addresses noted above. 28 Notice 29 No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, 3011 instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in 31 particular, independent verification of diagnoses and drug dosages should be made. 32 First edition 2002 33 Library of Congress Cataloging in Publication Data 34 A catalog record from the Library of Congress has been applied for. 35 British Library Cataloguing in Publication Data 36 A catalogue record from the British Library has been applied for. 37 ISBN: 0-7623-0841-9 ISSN: 1052-0457 (Series) 38 ϱ The paper used in this publication meets the requirements of ANSI/NISO Z39.48-1992 (Permanence of 39 Paper). 40 Printed in The Netherlands. Running Head v 1 2 3 4 CONTENTS 5 6 7 8 EDITORIAL BOARD ix 9 1011 LIST OF CONTRIBUTORS xi 11 12 INVITED REFEREES xiii 13 14 PART I: MAIN PAPERS 15 16 SEGMENT DISCLOSURES UNDER SFAS 131: 17 IMPACT ON THE BANKING INDUSTRY 18 Nancy B. Nichols, Ashton C. Bishop and Donna L. Street 3 19 2011 DELAY IN ACCOUNTING HARMONIZATION: 21 EVIDENCE ON AUDITOR SELECTION AND 22 COST-OF-CAPITAL EFFECTS, 1986–1990 23 Wanda A. Wallace 39 24 25 VOLUNTARY DISCLOSURE OF VALUE DRIVER 26 INFORMATION: A CONTENT ANALYSIS OF 27 GLOBAL M&A AND OTHER CROSS-BOUNDARY 28 DISCLOSURES OF THE FORD MOTOR 29 COMPANY 1995–2000 3011 Orhan Celik, Garen Markarian and Gary John Previts 69 31 32 FINANCIAL STATEMENT FRAUD: CAPITAL MARKET 33 EFFECTS AND MANAGEMENT ACTIONS 34 Albert L. Nagy 95 35 36 EVIDENCE OF EARNINGS MANAGEMENT WITH 37 THE SELECTION OF THE DISCOUNT RATE FOR 38 PENSION ACCOUNTING: THE IMPACT OF A 39 SEC LETTER 40 David R. Vruwink 119 v vi RUNNING HEAD 1 PART II: RESEARCH REPORTS 2 3 SEC AUDIT REQUIREMENTS AND AUDIT FEES 4 Charles P. Cullinan 135 5 6 AUDIT COMMITTEE CHARACTERISTICS AND 7 AUDITOR SWITCHES 8 Lawrence J. Abbott and Susan Parker 151 9 1011 STAFF ACCOUNTING BULLETIN 101: 11 TESTING STUDENTS’ KNOWLEDGE OF 12 REVENUE RECOGNITION PRINCIPLES 13 Jimmy W. Martin 167 14 15 THE LEGALITY OF THE SEC’S AUTHORITY 16 TO REGULATE THE SCOPE OF SERVICES 17 FOR CPA FIRMS 18 Mark A. Segal and Frank R. Urbancic 191 19 2011 PART III: PERSPECTIVES 21 22 EBITDA! 23 Julia Grant and Larry Parker 205 24 25 DISCLOSURE AND ACCOUNTING IN A GLOBAL 26 MARKET: LOOKING TO THE FUTURE 27 Lynn E. Turner 213 28 29 THE DEVELOPMENT OF FINANCIAL REPORTING, 3011 THE STOCK EXCHANGE AND CORPORATE 31 DISCLOSURE IN THAILAND 32 Aim-orn Jaikengkit 239 33 34 MANDATORY AUDITOR ROTATION: A CRITIQUE 35 OF THE PANEL ON AUDIT EFFECTIVENESS 36 Jeffrey R. Casterella, Barry L. Lewis and Paul L. Walker 259 37 38 39 40 Running Head vii 1 PART IV: BOOK REVIEWS 2 3 MARQUIS G. EATON: A COLLECTION OF 4 HIS WRITINGS 5 Edited by Edward N. Coffman and Daniel L. Jensen 6 Reviewed by Timothy J. Fogarty 271 7 8 FOUNDATIONS FOR THE FUTURE: THE AICPA 9 FROM 1980–1995 1011 by Philip B. Chenok with Adam Snyder 11 Reviewed by Kevin Carduff 274 12 13 ACCOUNTING AND THE INVESTMENT 14 OPPORTUNITY SET 15 by Ahmed Riahi-Belkaoui 16 Reviewed by Reed A. Roig 279 17 18 FRANKENSTEINS OF FRAUD: THE 20TH CENTURY’S 19 TOP TEN WHITE-COLLAR CRIMINALS 2011 by Joseph T. Wells 21 Reviewed by Larry M. Parker 284 22 23 DELIVERING THE PROMISE: HOW TO ATTRACT, 24 MANAGE, AND RETAIN HUMAN CAPITAL 25 by Brian Friedman, James Hatch and David M. Walker 26 Reviewed by Julia Grant 291 27 28 MANAGING MULTINATIONALS IN THE MIDDLE EAST 29 by Wagdy M. Abdallah 3011 Reviewed by Garen Markarian 293 31 32 33 34 35 36 37 38 39 40 vii viii GERALD R. FERRIS 1 This Page Intentionally Left Blank 2 3 4 5 6 7 8 9 1011 11 12 13 14 15 16 17 18 19 2011 21 22 23 24 25 26 27 28 29 3011 31 32 33 34 35 36 37 38 39 40 Overview ix 1 2 3 4 EDITORIAL BOARD 5 6 Dennis R. Beresford Paul A. Pacter 7 University of Georgia International Accounting Standards 8 Committee 9 Peter Bible 1011 General Motors Corporation Larry M. Parker 11 Case Western Reserve University 12 Jacob Birnberg 13 University of Pittsburgh Robert H. Parker 14 University of Exeter, England 15 Michael P. Bohan 16 Deloitte & Touche, LLC James M. Patton 17 Federal Accounting Standards 18 Paul Brown Advisory Board 19 New York University 2011 Robert Sack 21 Graeme W. Dean University of Virginia – Darden 22 University of Sydney, Australia School 23 24 Timothy Fogarty E. Kent St. Pierre 25 Case Western Reserve University University of Delaware 26 27 William Holder William J. L. Swirsky 28 University of Southern California Canadian Institute of Chartered 29 Accountants 3011 David L. Landsittel, CPA 31 Winnetka, Illinois Sir David P. Tweedie 32 Accounting Standards Board, U.K. 33 Harry T. Magill 34 Arizona State University Wanda Wallace 35 College of William and Mary 36 Donald L. Neebes 37 Ernst & Young, LLP Yuksel Koc Yalkin 38 University of Ankara 39 Hiroshi F. Okano Head, Commission of Accounting 40 Osaka City University, Japan Standards, Turkey ix x LIST OF CONTRIBUTORS 1 This Page Intentionally Left Blank 2 3 4 5 6 7 8 9 1011 11 12 13 14 15 16 17 18 19 2011 21 22 23 24 25 26 27 28 29 3011 31 32 33 34 35 36 37 38 39 40 Running Head xi 1 2 3 4 LIST OF CONTRIBUTORS 5 6 7 8 Lawrence J.