Template-Type: ReDIF-Article 1.0 Author-Name: Catherine M. Rodriguez Milanes Author-X-Name-First: Catherine M. Rodriguez Author-X-Name-Last: Milanes Author-Name: Saif Ullah Author-X-Name-First: Saif Author-X-Name-Last: Ullah Author-Name: Thomas Walker Author-X-Name-First: Thomas Author-X-Name-Last: Walker Title: CEO turnover after poor performance: turnaround or scapegoating? Abstract: This paper explores whether firms that dismiss their CEO following poor corporate performance exhibit better performance post-turnover or whether dismissal merely serves a scapegoating function. We match firms in the same industry, by size, and by Altman Z-score, and compare our turnover sample with the matched group of firms without CEO dismissal. A subset of our results suggests that, after some delay, the market reacts positively to CEO dismissals that occur following bad performance: underperforming firms that fire their CEO exhibit positive and significant abnormal returns whereas their counterparts that retain their CEO exhibit negative abnormal returns. However, the majority of our findings indicate that CEO turnovers do not translate into better operating performance or firm valuation (Tobin's q), thus lending credence to the scapegoating hypothesis. Journal: Int. J. of Accounting and Finance Pages: 1-37 Issue: 1 Volume: 8 Year: 2018 Keywords: CEO turnover; scapegoating; performance. File-URL: http://www.inderscience.com/link.php?id=89971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:1:p:1-37 Template-Type: ReDIF-Article 1.0 Author-Name: Kunal Author-X-Name-First: Author-X-Name-Last: Kunal Author-Name: Supriya Katti Author-X-Name-First: Supriya Author-X-Name-Last: Katti Author-Name: B.V. Phani Author-X-Name-First: B.V. Author-X-Name-Last: Phani Title: Private equity investment, exit strategy and IPO performance: evidence from Indian IPOs Abstract: Private equity (PE) is one of the important sources of financing. The certification hypothesis associated with PE investment influences the performance during the process of going public. The listing day performance of initial public offerings (IPO) is significantly influenced by various financial intermediaries involved in the IPO process due to certification effect associated with their reputation. In this study we try to evaluate certification and grandstanding hypothesis associated with PE investors in IPO market. Our empirical results refute certification hypothesis since the PE investment does influence the IPO performance. However, the ownership stake of PE investment has negative impact on the first day of IPO performance. This supports grandstanding hypothesis where the ownership stake and the urge of PE investors in liquidating the stake determines the IPO performance. The insignificant ownership stake held by private equity investors is a consequence of regulatory constraint. The insignificant impact on long-term IPO performance is also due to insignificant ownership stake retained after IPO. In addition, it is also observed that business group affiliated firms have lower degree of IPO underpricing. The overall performance of IPO follows 'U' shape curve indicating positive performance in the short term and long-term. Journal: Int. J. of Accounting and Finance Pages: 38-59 Issue: 1 Volume: 8 Year: 2018 Keywords: underpricing; grandstanding; private equity; initial public offering; IPO. File-URL: http://www.inderscience.com/link.php?id=89988 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:1:p:38-59 Template-Type: ReDIF-Article 1.0 Author-Name: Yasean Tahat Author-X-Name-First: Yasean Author-X-Name-Last: Tahat Author-Name: Ghassan H. Mardini Author-X-Name-First: Ghassan H. Author-X-Name-Last: Mardini Author-Name: Ayman E. Haddad Author-X-Name-First: Ayman E. Author-X-Name-Last: Haddad Title: A longitudinal analysis of financial instruments disclosure in an emerging capital market: the case of Qatar Abstract: This study explores the extent of financial instruments (FI) information that is supplied by Qatari listed companies under International Accounting Standards (IAS) 30, IAS 32 and International Financial Reporting Standards (IFRS) 7 for the period between 2005 and 2012. The study adopts the unweighted disclosure approach to measure the extent of FI-related information provided by a sample of 282 Qatari firm observations between 2005 and 2012. The results of the study indicate that the implementation of IFRS 7 statistically improved FI-related information. Specifically, the quantity of FI disclosure rose from 24% in 2005 (under IAS 30/32) to greater than 28% in 2007 (under IFRS 7) and this rise was sustained, reaching 47% in 2012. Also, the results of the study reveal that the level of FI disclosure varies among companies by year, category of information and industry type. The current paper provides a great insight into the accounting profession and is of interest to both national (Qatari) and international accounting regulators regarding the implications of applying IFRS 7 in an emerging capital market. Journal: Int. J. of Accounting and Finance Pages: 60-79 Issue: 1 Volume: 8 Year: 2018 Keywords: financial instrument disclosure; Qatar; financial reporting; international financial reporting standards; IFRS. File-URL: http://www.inderscience.com/link.php?id=90000 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:1:p:60-79 Template-Type: ReDIF-Article 1.0 Author-Name: Roopali Batra Author-X-Name-First: Roopali Author-X-Name-Last: Batra Author-Name: Satish Verma Author-X-Name-First: Satish Author-X-Name-Last: Verma Title: Non-financial criteria in project appraisal methodologies: empirical evidence from Indian companies Abstract: There is an abundance of literature advocating the growing usage of sophisticated capital budgeting practices in corporate India. However, the qualitative aspects in project appraisal are still disregarded. Our research investigates the extent to which Indian companies incorporate non-financial criteria in their project appraisal practices. In addition it makes a contribution to project appraisal methodologies by presenting a comprehensive framework of factors to be considered in project selection. Based on a survey of 77 listed companies, SWOT analysis, customer market analysis, technical considerations, social considerations and necessity to maintain existing product lines emerged as important non-financial criteria in project appraisal. Gratifyingly, the qualitative criteria are used by almost all companies and only 2.6% of the companies do not use this type of criterion. Furthermore exploratory factor analysis identified technical factors, stakeholders' expectations, financial feasibility, social factors, strategic alignment and external factors as the prime factors affecting project selection. According to the authors' knowledge, this is the first study on the significance of non-financial criteria in project appraisal in a developing country like India. Journal: Int. J. of Accounting and Finance Pages: 80-102 Issue: 1 Volume: 8 Year: 2018 Keywords: non-financial criteria; project appraisal methodology; investment; capital budgeting; factors; India. File-URL: http://www.inderscience.com/link.php?id=90003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:1:p:80-102 Template-Type: ReDIF-Article 1.0 Author-Name: James G.S. Yang Author-X-Name-First: James G.S. Author-X-Name-Last: Yang Title: Tax planning strategies for corporate inversion Abstract: This article investigates the problem of corporate inversion. It describes how international transactions are taxed in the United States and points out the possible tax loopholes. This paper shows that the tax rate in the United States is one of the highest in the industrialised countries and imposes tax on the basis of worldwide income, rather than domestic income only. This paper then explains how the corporate inversion was employed to take advantage of the pitfalls in the tax law. It uses four cases for demonstration - McDermott, Helen of Troy, Burger King, and Medtronic. This paper illustrates one example to determine the amount of tax savings using corporate inversion. It further looks into the anti-corporate inversion regulations under IRC §7874, the Internal Revenue Service (IRS) Notices 2014-52 and 2015-79, and the Treasury Regulations TD 9761. This paper also offers some strategies to maximise the benefits of corporate inversion. Journal: Int. J. of Accounting and Finance Pages: 103-121 Issue: 2 Volume: 8 Year: 2018 Keywords: corporate inversion; controlled foreign corporation; international taxation; merger; worldwide income; territorial income; US-sourced income; foreign-sourced income. File-URL: http://www.inderscience.com/link.php?id=93242 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:2:p:103-121 Template-Type: ReDIF-Article 1.0 Author-Name: Nguyen Huu Anh Author-X-Name-First: Nguyen Huu Author-X-Name-Last: Anh Author-Name: Doan Thuy Duong Author-X-Name-First: Doan Thuy Author-X-Name-Last: Duong Author-Name: Sung Wook Yoon Author-X-Name-First: Sung Wook Author-X-Name-Last: Yoon Title: Capital structure and firm financial performance in Vietnam Abstract: We investigate the relation between the capital structure and financial performance of 235 Vietnamese companies listed on the Ho Chi Minh Stock Exchange during 2011-2013. Ordinary least squares (OLS), fixed effect method (FEM) and random effect method (REM) are employed to address econometric issues and to improve the accuracy of the regression coefficients. Furthermore, the dynamic panel generalised method of moments (GMM) estimator is adopted to address the problems of endogeneity, unobservable heterogeneity and simultaneity. The results show that financial performance, measured by return on equity (ROE) and earning per share (EPS), has a statistically significant negative association with leverage level. Journal: Int. J. of Accounting and Finance Pages: 122-132 Issue: 2 Volume: 8 Year: 2018 Keywords: capital structure; financial performance; Vietnamese listed companies. File-URL: http://www.inderscience.com/link.php?id=93255 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:2:p:122-132 Template-Type: ReDIF-Article 1.0 Author-Name: Rashedul Hasan Author-X-Name-First: Rashedul Author-X-Name-Last: Hasan Author-Name: Mohammad Dulal Miah Author-X-Name-First: Mohammad Dulal Author-X-Name-Last: Miah Title: Intellectual capital and firm performance: evidence from the financial sector in Bangladesh Abstract: The paper aims at investigating the effect of intellectual capital (IC) on the performance of financial institutions in Bangladesh. Quantitative data are collected from 49 financial institutions listed in the Dhaka Stock Exchange (DSE) for the year ending 2012 and 2013. IC is measured using Value Added Intellectual Coefficient (VAIC) developed by Pulic (1998). The impact of both the current and past years' VAIC on firm performance is measured, along with the effects of its three components - human capital efficiency (HCE), capital employed efficiency (CEE), and structural capital efficiency (SCE). The stepwise regression results indicate a positive and significant relationship between current year VAIC and two measures of firm performance (ROA, ROE) while past years' VAIC is found insignificant for all three measures of firm performance. HCE for the current year is found to be the most significant contributor toward firm performance among all the three components of VAIC, having a substantial positive relationship with all three measures of firm performance. SCE of the current year significantly affects ROA and ROE whereas CEE is found to be significant only for ROA. While measuring past years' effect on performance, only HCE has been found to have a negative influence on current year's revenue growth (RG). Journal: Int. J. of Accounting and Finance Pages: 133-150 Issue: 2 Volume: 8 Year: 2018 Keywords: intellectual capital; firm performance; financial institutions; Bangladesh. File-URL: http://www.inderscience.com/link.php?id=93261 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:2:p:133-150 Template-Type: ReDIF-Article 1.0 Author-Name: Nidal Rashid Sabri Author-X-Name-First: Nidal Rashid Author-X-Name-Last: Sabri Author-Name: Diama K. Abulabn Author-X-Name-First: Diama K. Author-X-Name-Last: Abulabn Author-Name: Dima Walid Hanyia Author-X-Name-First: Dima Walid Author-X-Name-Last: Hanyia Title: Selecting a saving currency in the Palestinian banking system Abstract: This research aims to examine how banking clients in the Palestinian economy move from one currency to another in case of savings and term deposits. The study used two research instruments including: analysing the related data to examine the relationship between changes in the value of banking deposits of the used currencies and their respective interest rates. In addition, structured questionnaires were directed to selected samples of bankers and banks' clients from 12 banks working in Palestinian economy. The study found that the interest rate is not a critical factor in selecting a currency for saving and deposits in banks, as reported by the clients and banking staff, as well as found by the financial analysis. In addition, it showed a weak correlation between changes in interest rates for a specific currency and changes in values of deposits in Palestinian banks. Journal: Int. J. of Accounting and Finance Pages: 151-160 Issue: 2 Volume: 8 Year: 2018 Keywords: savings in banks; deposits in banks; Palestinian banking system; Palestinian economy. File-URL: http://www.inderscience.com/link.php?id=93273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:2:p:151-160 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmed A. Elamer Author-X-Name-First: Ahmed A. Author-X-Name-Last: Elamer Author-Name: Ismail Benyazid Author-X-Name-First: Ismail Author-X-Name-Last: Benyazid Title: The impact of risk committee on financial performance of UK financial institutions Abstract: Following the recent financial crisis, Walker (2009) recommended that financial institutions should form a separate board level risk committee (RC) to manage various risks and prevent excessive risk taking. This research focuses on investigating how firms with separate risk committees differ from those that do not have one. The main research question we address is whether RCs have a fundamental influence on financial performance. We measure financial performance by ROA and ROE and we control for firm size, liquidity and gearing. Our sample consists of all listed financial institutions in FTSE-100 index from 2010 through 2014. Results indicate a negative relationship between risk committee characteristics (i.e., existence, size, independence, and meeting frequency) and financial performance. The results also indicate that firms without RC performed considerably well than firms with RC. The results are contradictory to Walker's (2009) where RCs are recommended for their ability to mitigate and manage risks more expertly. However, we argue that establishing strong RC constrains management ability to make excessive risk taking behaviour, which may affect financial performance negatively. We contribute to the current research on the impact of risk committee governance attributes on financial performance after banking and governance reforms. Journal: Int. J. of Accounting and Finance Pages: 161-180 Issue: 2 Volume: 8 Year: 2018 Keywords: corporate governance; risk management; risk committee; financial institutions; UK. File-URL: http://www.inderscience.com/link.php?id=93290 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:2:p:161-180 Template-Type: ReDIF-Article 1.0 Author-Name: Luisa Anderloni Author-X-Name-First: Luisa Author-X-Name-Last: Anderloni Author-Name: Alessandra Tanda Author-X-Name-First: Alessandra Author-X-Name-Last: Tanda Author-Name: Daniela Vandone Author-X-Name-First: Daniela Author-X-Name-Last: Vandone Title: The European consumer credit industry: determinants of performance Abstract: Despite the relevance gained by the consumer credit industry since the 2000s and its importance in supporting the financial needs of households, there is very little evidence on how this industry has performed over the years. This paper fills a gap in the literature by providing updated evidence through a dynamic generalised method of moments (GMM) estimation of the determinants of performance, measured as profitability and as cost efficiency, in a sample of European consumer credit companies over the period 2005-2014. Results show that both firm-specific and market-specific features influence the performance. Among these, larger size contributes to enhanced performance, while credit risk has a strong deleterious effect. The negative effect prevails also for the market household debt. On the contrary, credit diffusion has a positive impact both on profitability and efficiency. Journal: Int. J. of Accounting and Finance Pages: 181-193 Issue: 2 Volume: 8 Year: 2018 Keywords: consumer credit; profitability; Europe; cost efficiency; finance; cross-country analysis; financial intermediation; household debt; generalised method of moments; GMM; crisis; credit risk. File-URL: http://www.inderscience.com/link.php?id=93293 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:intjaf:v:8:y:2018:i:2:p:181-193