Mariano González, Juan M. Nave and David Toscano
In this paper, the authors aim to analyze the impact of International Financial Reporting Standards' (IFRS) mandatory adoption on the financial statements of Spanish listed…
Abstract
Purpose
In this paper, the authors aim to analyze the impact of International Financial Reporting Standards' (IFRS) mandatory adoption on the financial statements of Spanish listed companies.
Design/methodology/approach
The authors estimate a panel data model by generalized least squares' within-between in order to contrast the possible structural breaks in the relations between income statement items and balance sheet items, using data from the 35 largest listed companies.
Findings
The results show significant changes on these relations, but with different signs and degrees of intensity depending on the balance sheet item analyzed.
Research limitations/implications
The data choice introduces a size bias that could be taken into account in the generalization of the results to other listed companies.
Originality/value
This work is developed using a mandatory, local, accounting and panel data framework for first time using Spanish listed companies in order to measure the impact of the IFRS adoption.
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Olga Fullana, Mariano González and David Toscano
In this paper we analyse the effect on unconditional conservatism of the mandatory adoption of International Financial Reporting Standards (IFRS) by the European listed firms in…
Abstract
Purpose
In this paper we analyse the effect on unconditional conservatism of the mandatory adoption of International Financial Reporting Standards (IFRS) by the European listed firms in January 2005. Under the hypothesis that accounting regulation influences the accounting conservatism, we use a non-market-based measure of unconditional conservatism – the accrual-based measure proposed by Givoly and Hayn (2000) – to test this effect, controlling for the other determinants of the unconditional conservatism found in the accounting literature.
Design/methodology/approach
We use a panel data of 10 years and 96 non-financial listed firms in the Spanish stock market in which the differences between local GAAP and IFRS are more important. A pre-estimation analysis of the data reveals that GLS with random effects is the correct estimation procedure. However, to try to deal with the likely endogeneity in the set of variables, the authors perform an estimate with a dynamic estimator for panels with few periods and many individuals where the independent variables are not strictly exogenous.
Findings
As expected, results show evidence that support a significant reduction on the unconditional conservatism of firms in the sample due to the adoption of IFRS. This evidence is relevant to equity market, debt market and corporate governance users of the financial information, and also for the policymakers who can assess the effects of their mandate.
Research limitations/implications
Results shown in this paper have all the limitations of system-, country-, sample- and event-specific studies but, along with many others drawn in alternative contexts, may help to correctly understand both the time-evolution and cross-sectional country differences of firms’ unconditional conservatism.
Originality/value
The study represents the first analysis of the effect of the adoption of IFRS on unconditional conservatism of the European listed companies using a non-market accrual-based measure. Results are not influenced by the dynamics of the stock market and, by comparison, allow us to analyse this influence in results provided by using market-based measures of the unconditional accounting conservatism provided by previous literature.
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Nilda Barrutia-Montoya, Elia Ramirez-Asis, K. P. Jaheer Mukthar, Mercedes Huerta-Soto, Robert Concepción-Lázaro and Juan Villanueva-Calderón
Many scholars and practitioners in the fields of business and management have recently published theoretical and empirical studies on the subject of business culture and its…
Abstract
Many scholars and practitioners in the fields of business and management have recently published theoretical and empirical studies on the subject of business culture and its impact on its growth and effectiveness; yet, there has been a dearth of research on the topic of how organizational culture affects productivity. Moreover, there are hardly any theoretical or empirical research that examines these two concepts within the context of a micro-enterprise. This chapter uses a sample of 279 Ancash Region microenterprises to investigate the effect of local entrepreneurial culture on businesses’ overall performance. Among the four types of entrepreneurial cultures studied, only the Hierarchical culture was shown to have no effect on the degree of performance of the microenterprises. There is evidence of a significant causal relationship between the variables studied, the coefficient of determination was; business performance (r2 = 0.796), with an SRMR of 0.037, the confirmatory model is relevant within its range of accuracy, while market culture has the greatest impact on business performance.
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Brighton will remain pleasantly in the memory of those who attended the Library Association Conference there. The meeting was well‐organized from the business and social points of…
Abstract
Brighton will remain pleasantly in the memory of those who attended the Library Association Conference there. The meeting was well‐organized from the business and social points of view; and a generous hospitality extended by those in authority there gave a real delight to every day, indeed every hour, spent in the sea‐side city. The beautiful weather that prevailed added much to the event. On the purely technical side the conference compared favourably with any of recent years. The remarkable advance in the roll of members ; the progress of the net books question ; a new and keen interest shown in co‐operation, the immediate first‐fruit of which is to be union catalogue of London's municipal reference libraries ; the interest of the exhibitions, that of the Library Association being a promise of real excellence in the future; and the trade exhibition being one or the best we have examined—these were memorable features of a memorable conference. Our gratitude may perhaps be added to that expressed more officially at Brighton to all who had the arrangement of a most successful affair.
BEFORE MISUNDERSTANDING OCCUR I should explain at once that this essay has nothing whatsoever to do with the latest esoteric theories of library management. It concerns the rather…
Abstract
BEFORE MISUNDERSTANDING OCCUR I should explain at once that this essay has nothing whatsoever to do with the latest esoteric theories of library management. It concerns the rather more gentle art, or science, of collecting picture postcards of libraries. An innocuous pastime, you will agree, and one which may be indulged in without fuss or bother or, indeed, any great expenditure of time, energy, or money. It all started when I received cards from two ex‐students, one from Port Elizabeth, the other from New Hampshire. Admittedly the first featured the Mayor's Garden, ‘flanked by old buildings and modern structures,…a quiet refuge in this busy port and industrial city’. But there, large as life and twice as ugly, behind a monument of the old Queen, stands the Public Library, built in that curious mishmash style typical of the last years of Victoria's reign. The second was of the tower of The Baker Memorial Library, Dartmouth College, Hanover, N.H., a 1928 building but in a style strongly reminiscent of a James Gibbs eighteenth‐century church. For someone who has always suffered from an over‐developed magpie instinct it was enough, and this highly specialized branch of deltiology took its place in the long line stretching back through books, old comics, postage stamps, matchbox labels to the very beginnings of car numbers.
Grass roots movements in relationships of cooperation and conflict between firms, communities, and government have an important role to stop a living city from disappearing. This…
Abstract
Grass roots movements in relationships of cooperation and conflict between firms, communities, and government have an important role to stop a living city from disappearing. This chapter describes and analyzes the implications of the collective action used by grass roots movements in the defense of an old mining town, Cerro de San Pedro, of being disappeared due to the pollution of fresh watersheds by the operations of a mining company and the effects on the living city of San Luis Potosì, in the center of Mèxico.
The aim of this paper is to analyze relationships of cooperation and conflict between a mining company and the involved communities, focusing on the presence of the mining company…
Abstract
Purpose
The aim of this paper is to analyze relationships of cooperation and conflict between a mining company and the involved communities, focusing on the presence of the mining company (MSX) in Cerro de San Pedro, Mexico.
Design/methodology/approach
The paper focuses on the co‐operation and conflict between firms, communities, new social movements and the role of government.
Findings
The presence of the mining company has caused a severe social conflict among the inhabitants of San Pedro, Soledad y San Luis, alerting all who are concerned with historic heritage, cultural and environmental issues. At the center of the controversy is the cheap and efficient technology. Federal and state laws were violated. It is quite evident that there was a lack of sensitivity of foreign mining companies toward the consequences of their activities upon the communities and environment. This case also shows the lack of negotiation between firms, communities, new social movements and governments. Information about externalities and future costs of company activities is crucial but more crucial is formulation and implementation of more sensitive policies to avoid damage to the environment, biodiversity and health of the population. Governmental institutions must be aware that their decisions may affect the quality of life of present and future generations for the sake of a small increment in economic growth and large increase in private benefits of a small group of investors. More informed citizens tend to be more active protestors, such as the case of the students in San Luis. Contact between informed individuals of diverse groups and organizations helps to exchange experiences and create public opinion in favor of mobilization. Community participation and involvement in decision‐making of community development planning is quite limited by the lack of critical information. This fact is critical when the local government cannot provide the right information because there are other interests affecting the process.
Originality/value
The paper highlights the lack of sensitivity of foreign mining companies towards local communities.