Production is largely recoverable, but how badly has confidence in British industry been hit? Reports from David Haworth in Brussels, Jack McCarthy in New York and Richard Brooks…
WHAT IS Europe going to do about the juggernaut question—whose problems from the British angle were detailed in January's Industrial Management editorial?
IT IS WRONG TO THINK the departments of the European Commission are staffed by fanatical devotees of centralization. The fact is that the disparities which still exist between the…
Abstract
IT IS WRONG TO THINK the departments of the European Commission are staffed by fanatical devotees of centralization. The fact is that the disparities which still exist between the laws of the various Community states constitute discrimination against medium‐sized firms, to the benefit of larger competitors.
David J. Flanagan, Lori A. Muse and K.C. O'Shaughnessy
The purpose of this paper is to provide an overview of financial restatements by US companies to help students, professors, and practitioners gain a better understanding of…
Abstract
Purpose
The purpose of this paper is to provide an overview of financial restatements by US companies to help students, professors, and practitioners gain a better understanding of restatements. Data from restatement activity that occurred between January 1, 1997 and June 30, 2002 is presented and relevant literature is cited to discus the players involved in restatements, the causes of restatements and their impacts.
Design/methodology/approach
A sample of 919 restatement announcements compiled by the General Accounting Office (GAO) that occurred between January 1, 1997 and June 30, 2002 is analyzed. The data and the relevant literature are used to examine the roles of companies, auditing firms, and the Security and Exchange Commission (SEC) in the financial reporting process and show how they are involved in prompting restatements. Literature is also reviewed on the root causes of restatements and their impact.
Findings
The misstatements that lead to earnings restatements are driven by a variety of forces, the most often studied and discussed being deceptive accounting practices by managers. The results of these restatements include a decline in the market value of the firm, an increase in the cost of capital, a loss of reputation for the firm and managers and an overall loss of confidence from investors. Key players in restatements by US companies are the Securities and Exchange Commission (SEC), the restating firms' auditors and the management of the restating firms. Restatements prompted by the SEC tend to be larger than those prompted by other entities. They also tend to involve firms with high profitability before the restatement. The Sarbanes‐Oxley act is the latest significant piece of legislation that impacts financial reporting by firms.
Research limitations/implications
Data on US restatements occurring between January 1, 1997 and June 30, 2002 are presented. Restatements are a continuing, global, phenomenon so studies involving restatements by firms in various countries and from more recent periods would be useful.
Practical implications
This paper provides a useful overview of restatement activity in the USA for any individual looking to become more familiar with the topic. Ideas for future research are presented.
Originality/value
This paper fills a hole in the literature by providing data and citing relevant literature to provide an overview of accounting restatement activity in the USA.
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Janjaap Semeijn and David B. Vellenga
One‐stop shopping for logistics services has been a popular conceptin theory, but so far has not been very successful in practice. Reviewsthe theoretical basis for the concept and…
Abstract
One‐stop shopping for logistics services has been a popular concept in theory, but so far has not been very successful in practice. Reviews the theoretical basis for the concept and reports the findings of a shipper‐carrier comparison study about one‐stop shopping expectations for international logistics services. Shows that international shippers located in the USA rate the expected effects of one‐stop shopping as positive. Global carrier managers appear to be in tune with these shippers, although they tend to be somewhat less optimistic about the effects of one‐stop shopping. Certain shipper characteristics appear indicative of shipper enthusiasm for adopting the one‐stop shopping concept. Formulates implications of these findings for global carriers.
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THE EUROPEAN COMMISSION recently published a study on ‘The Indices of Concentration and Concrete Application in the Car Sector within the Community’. The study is experimental…
Abstract
THE EUROPEAN COMMISSION recently published a study on ‘The Indices of Concentration and Concrete Application in the Car Sector within the Community’. The study is experimental. The car industry was chosen because it is homogenous, and because there is an abundant supply of information on it. The Commission says this was merely the first stage of the attempts to follow the evolution of concentration in different industries. It deals with the years 1967 to 1969, but the results can be brought up‐to‐date. The level of concentration is high in Italy, less high in France and Germany, but very low in the Netherlands. However, during this period, the level dropped in Italy; Fiat's share fell from 73·3% in 1967 to 69 5% in 1969, despite the absorption of Lancia and Autobianchi. The level of concentration also dropped in France, because of the growth of non‐French makes on the national market. On the other hand, the level rose slightly in Germany and the Benelux countries.
A growing number of American businessmen are forsaking the opportunity of returning to jobs with parent companies in the United States in favour of staying in Britain and Europe.
Commencing with the June 1972 issue, Industrial Management will be both published and printed by Wilding & Son Limited of Shrewsbury, who have recently purchased this Journal from…
Abstract
Commencing with the June 1972 issue, Industrial Management will be both published and printed by Wilding & Son Limited of Shrewsbury, who have recently purchased this Journal from the Mercury House Publishing Group. The quality of the editorial and its forward‐looking policy will remain unchanged under the editorship of John Lawless, whilst plans are formulated for the injection of new initiatives under the fresh leadership of Wildings.