Financial Items Research Articles

Smarter Financial Life: Rethinking personal financial planning

An increasingly complex landscape of financial products, in combination with a falling provision of social security, increased life expectancy, and persisting financial illiteracy, calls for a reevaluation of personal financial planning. Currently, personal financial advice is offered predominantly from an institution's point of view, neglecting the personal point of view. We introduce a comprehensive, integrated, and interactive application for financial planning, which defines a person's life in terms of financial items and highlights the interactions among individual financial items and their impact on personal wealth. As individuals make decisions, their financial items interact according to a set of rules. Over time, events occur and global influences determine the growth rates of financial items. Our financial life model, which is accompanied by an interactive visualization and comprehensive analytics, enables financial planning in terms of life choices. Consequently, financial planning will occur from a personal point of view rather than a corporate perspective. This paper introduces our Smarter Financial Life project as well as an early gamified prototype, which has been presented at an Australian conference.

Cost analysis and sociocultural profile of kidney patients. Impact of the treatment method.

The cost analysis of chronic kidney disease based on individual data for treatment methods and components has not been published in Spain. a) To study the health costs of a year of treatment with haemodialysis (HD), deceased donor renal transplantation (RTx), renal-pancreas transplantation (RPTx), and S4 and S5 advanced chronic kidney disease (ACKD) b) Assess the potential relationship between sociocultural diversity, costs and treatment method. Observational study of: 1) 81 patients with ACKD (53 S4 and 28 S5) 2) 162 with more than 3 months on HD and 3) 173 with a Tx for more than 6 months (140 RTx and 33 RPTx). The costs were assessed in five categories: 1) HD sessions, 2) drug intake, 3) hospitalisation, 4) outpatient care and 5) transportation. We carried out a survey with socio-demographic parameters. The financial impact of HD was €47,714&plusmn;18,360 (mean&plusmn;SD), that of Tx €13,988&plusmn;9970, and that of ACKD €9654&plusmn;9412. The cost of HD was the highest in all financial items. The costs were similar between RTx and RPTx. In ACKD, the greater the renal deterioration, the greater the cost is (S4 €7846&plusmn;8901 versus S5 €13,300&plusmn;9820, P<.01). Tx patients had the best sociocultural status, while HD patients had the worst profile. We did not find differences in costs between the three sociocultural groups. HD has the greatest financial impact in all items, five times higher than the ACKD patient cost and three times than the Tx patient cost. Optimising early prevention and Tx, if appropriate, must be priority strategies. This analysis invites us to think about whether sociocultural status can have an influence on opportunities for Tx.

Discussion of “Financial reporting for employee stock options: liabilities or equity”

Barth, Hodder, and Stubben examine how the risk and expected return of existing shares varies as a function of the amount of outstanding employee stock options (ESOs), finding that the association is a negative one, consistent with ESOs being equity-like in character. They suggest that their approach could be used to address the question of how best to characterize other complex financial claims. The study is well executed and provides a thought-provoking contribution to the debate. However, it is far from obvious that the “debt or equity” question can be solved in this manner. Their approach effectively defines a liability as a financial claim that has characteristics akin to fixed-rate debt. I provide examples of the limitations of this perspective, starting by comparing ESOs that are settled with shares with those settled in cash. Whether a claim is treated as a liability or equity is of little consequence if it is simply a matter of balance sheet presentation. The real question is the implications for income measurement. I suggest progress might best be made if we start with Penman’s proposal that assets and liabilities be separated into operating and financial items, an approach which would include many claims that have equity-like characteristics, such as unvested ESOs, within the operating liability category. Once a claim ceases to be an operating item—e.g. when an ESO vests—the approach suggested in the paper can then be used to determine how it should be classified.

Show Me the Money: Incorporating Financial Motives into the Gambling Motives Questionnaire

Although research has only recently begun to measure what motivates all levels of gambling involvement, motives could offer a theoretically interesting and practical way to subtype gamblers in research and for responsible gambling initiatives. The Gambling Motives Questionnaire (GMQ) is one measure that weaves together much of the gambling motives literature, but it has been criticized for neglecting financial reasons for gambling. This study uses a series of factor analyses to explore the effect of adding nine financial motives to the GMQ in a heterogeneous sample of 1,014 adult past-year gamblers. After trimming trivial financial motives, the penultimate factor analysis of the 15 GMQ items and four financial motives led to a four-factor solution, with factors tapping enhancement, social, coping and financial motives, as predicted. A final factor analysis performed on a modified GMQ-F (i.e., 16 items, including a financial subscale) revealed the same four factors, and hierarchical regression showed that the financial motives improve the GMQ-F's prediction of gambling frequency. This study provides evidence that omitting financial motives is a clear gap in the GMQ, yet suggests that the GMQ is a promising tool that can be conceptually and empirically strengthened with the simple addition of financial items.

The Influence of K-IFRS Adoption on the Financial statements Items in the Financial Business

The Influence of K-IFRS Adoption on the Financial statements Items in the Financial Business

Assessing patient satisfaction with community pharmacy in the UAE using a newly-validated tool

Patient satisfaction has become an integral component of the quality of healthcare services. It has been used for the purpose of performance assessment, reimbursement, and quality management of health service delivery. It has been suggested that patient satisfaction could be a predictor of health-related behavior. To develop and validate a tool for use within the Arabic context to assess patient satisfaction. To assess patient satisfaction with current community pharmacy services in the UAE using the validated tool. A systematic process was used to develop an assessment tool that could be used within the Arabic context and establish its validity and reliability. Survey participants assessed their satisfaction with the services based on a 5-point Likert-type scale: Poor = 1, Fair = 2, Good = 3, Very good = 4, Excellent = 5. The anonymous questionnaire was distributed over a 5-month period to eligible participants in public places such as malls and shopping markets, in various emirates across the UAE. Those who were 21 years or older, taking at least one scheduled (regular) medication and having adequate Arabic or English language proficiency were included. The instrument comprised four dimensions: Information, Relationship, Accessibility and Availability. Participants required more information about medications and self-management (Mean = 2.49 ± 1.19). Measures of competence, i.e., care, interest, time, confidence and trust, could also be improved (Mean = 3.05 ± 1.07). Accessibility scores measuring physical, geographical and financial items were lowest (Mean = 2.80 ± 1.33). Overall scores on availability of medications indicated relative satisfaction with this dimension (Mean = 3.51 ± 0.7). This study is the first to use a patient satisfaction tool specifically developed for the Arabic context. Patient satisfaction scores in all dimensions were significantly lower than published data, suggesting patients have unmet expectations of community pharmacy services in the UAE. Stakeholders could utilize this information to help in the design and delivery of improved services that could lead to increased demand.

Lindahl and Frisch: Linking macroeconomics and national accounting in the interwar years for economic policies and planning

The specific Scandinavian contribution to national accounting relates to the links knitted by Ragnar Frisch and Erik Lindahl between macroeconomics and national accounts in the 1930’s. They share a common epistemological aim and a common theoretical inheritance. Firstly they were both driven by the ambition to get concepts and analytical framework for understanding business cycles and for designing economic policies. This conceptual work is strongly embodied to empirical investigations, national accounts being viewed as the experimental basis for macroeconomics and the base for policy and planning purposes. Secondly we will show that their common methodological ambition was rooted in sharing of the legacy of Wicksell’s theoretical proposals. This could explain why Frisch and Lindahl both distinguish real items from financial items, real from financial accounts, real from financial economic circulation in order to stress the impact of money on real economic phenomena. They also attempted to carry on in their respective national accounts an ex ante/ex post analysis in order to underline the role of the agents’ anticipations in the economic processes and cycles.

CSR and sustainable development: are the concepts compatible?

PurposeIn France, an application decree from February 2002 enumerates a series of operational indicators that companies must offer, including a number of accounting and financial items. The information expected notably includes working time organisation, gender equality, health and safety, disability policies, subcontractor arrangements, water, raw material and energy consumption and biodiversity efforts. The present study aims to account for the diversity of the social and environmental information that companies supply by focusing on three stakeholder categories: suppliers; customers; and employees. It also seeks to highlight possible variations among different sectors of activity; influence of three pillars of sustainability (economic, social and environmental); timeframe (short‐term, long‐term, analytical); and type of discourse (situational or action variables).Design/methodology/approachBased on 40 French companies as a qualitative approach, the purpose of the present communication is to offer a discussion of the structuring modes applied to the information found in sustainability reports targeting stakeholders for all the companies belonging to the CAC 40 index.FindingsMobilizing a structural contents analysis, its findings identify differentiated communications practices among the 40 companies in question. The study also unveils the existence of shorter‐term approaches to sustainability action, contrasting to more long‐term and/or analytical orientations. Finally, the reports in question all emphasized sustainability's “economic” dimension, with its “social” dimension being considered secondary and its “environmental” dimension coming last. This inquiry demonstrates that, in the French context, there is a far cry from corporate social responsibility (CSR) dimension and sustainable development (SD) vision.Originality/valueThe paper provides an in‐depth method to analyze CSR and SD reports through its structural discourse.

The Effects of Deregulation on the U.S. Airline Industry

&lt;span style="font-family: Times New Roman; font-size: small;"&gt; &lt;/span&gt;&lt;p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none;" class="MsoNormal"&gt;&lt;span style="font-size: 11pt; mso-bidi-font-size: 10.0pt;"&gt;&lt;span style="font-family: Times New Roman;"&gt;This paper investigates the financial performance of the U.S. airline industry, especially the industry's sensitivity to business cycles, since the 1978 passage of the Airline Deregulation Act.&lt;span style="mso-spacerun: yes;"&gt; &lt;/span&gt;The industry's potential return to profitability through restructuring, particularly through its advocacy and pursuit of globalized markets, is explored.&lt;span style="mso-spacerun: yes;"&gt; &lt;/span&gt;Altman's Z-score model, which reflects 22 financial items (obtained from the Industrial Compustat) for each airline company, is applied to illustrate the stability of the industry during the 1982-1989 period and its deterioration since 1989.&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;&lt;span style="font-family: Times New Roman; font-size: small;"&gt; &lt;/span&gt;

Attesting Adios! Airways' XBRL Filings: A Case Study on Performing Agreed-upon Procedures

On 30 January 2009, the Securities and Exchange Commission (SEC) released Rule 33–9002. This rule phased in the required use of XBRL. The accuracy of mapping financial statement line items to the US GAAP taxonomy and the tagging of the financial statement facts are of fundamental importance to the accuracy of the XBRL instance document. Currently, there is no requirement for separate assurance on XBRL filings. However, given the significance of the information made available, firms may find it desirable to obtain attestation services. This case provides students with an agreed-upon procedures engagement plan based upon SOP 09–1 ‘Performing Agreed-Upon Procedures Engagements that Address the Completeness, Accuracy or Consistency of XBRL Tagged Data’ released by the Auditing Standards Board in 2009. Students assume the role of an engagement manager and complete an agreed-upon procedures engagement for the quarterly financial statements of Adios! Airways Inc. The case is of general application to an international setting.

Identifying Potential Acquisition Targets Using Accounting and Financial Data

Researcher: Maria Papadopoulou. The purpose of this paper is to derive and test the significance of accounting and financial items in explaining the possibility of a firm becoming a target. The sample is drawn from U.K. acquisitions during the period 1987-2002 and the objective is to estimate statistical models for prediction of acquisition targets. The applied model is a binary-logit model, with variables expressed on firm level. The sample covers a broad cross section of firms of different sizes and in different industries. The results indicate that the targets are poor performance companies, with high leverage but high growth prospects. The last two years’ accounting and financial figures, the percentage change between them, in combination with the P/E ratio are significant in estimating the financial status of the company and the possibility of a firm to be taken over. This study’s results could be helpful for companies seeking to acquire other firms, providing a guide regarding the accounting and financial position of the possible targets.

GAAP, GFS and AASB 1049: perceptions of public sector stakeholders

AbstractEfforts by Australian standard‐setters to harmonise public sector financial reporting resulted in AASB 1049, which sought to bridge the divide between generally accepted accounting principles (GAAP)‐based and government finance statistics (GFS)‐based financial statements. However, whether AASB 1049 has resulted in information that is considered appropriate for the public sector has not been examined. We explore this issue by comparing the requirements of AASB 1049 with the responses from a survey of public sector stakeholders on the appropriate accounting treatment and presentation of selected financial items. The analysis suggests consensus with AASB 1049 on presentation issues but less consensus on accounting treatments.

Accounting Reporting in Banks: The Case in Egypt and the UAE Before and after the Financial Crisis

Banks in many countries including those in Egypt and the United Arab Emirates (UAE) suffered losses –at various degrees- as a result of the world financial crisis (started in 2006 by the US credit crisis). This stimulated the researcher to raise a question: Could accounting reporting by banks lessen the losses if more and better transparent information had been issued before the crisis? Corporate governance was considered a relevant framework based on an implicit assumption that: if stakeholders were better informed about the main policies and decisions undertaken in an adequate and timely manner, they may have to react to protect their interests and hence reduce losses. This study tests three hypotheses about disclosure of accounting information of banks and effects on quality of those information in Egypt and the UAE after the crisis. By analyzing data for years (2003-2005) as representative of pre-crisis and (2009-2011) as post-crisis findings show support for the research hypotheses. There is more disclosure about financial items, operations abroad, directors and their remuneration in both countries after the crisis than before and in the UAE more than in Egypt. It was also found a positive association between disclosure and quality of information in terms of the timeliness and credibility it covers. The differences between the two countries could be explained by bigger exposure to international market (financial and trade) and bank having more resources in the UAE compared to Egypt but not because of ownership concentration which had a weak influence on change in transparency and governance between the two countries.

IFRS Taxonomy and financial reporting practices: The case of Italian listed companies

XBRL taxonomies have a crucial role in digital financial reporting. On the one hand, they provide a unique set of computer-readable tags to allow the interchange of interactive information. On the other hand, a systematic, agreed-upon convention for naming each taxonomy tag is needed. In this context, the IFRS Foundation is playing a relevant role in developing well-structured taxonomies, which could simultaneously favor both the interoperability and the homogenization of the firms' financial information at the global level. Due to its importance, XBRL is being applied in many countries, but according to different implementation schemas.In this study, we attempt to verify if the IFRS Taxonomy released by the IFRS Foundation adequately reflects the reporting practices of the Italian listed companies for which XBRL is not yet required. The results reveal a general discrepancy between the financial items disclosed by the companies and the taxonomy tags. Specifically, we noticed that the financial statements items are more disaggregated than the taxonomy tags and that this depends on the sector and the size of the companies. Unless the XBRL implementation system explicitly allows companies to use and disclose taxonomy extensions, a loss of detailed information occurs if the taxonomy is applied.

An empirical study on measuring the relative efficiency using DEA method: A case study of bank industry

Article history: Received 10 June 2010 Received in revised form 25 September 2010 Accepted 26 September 2010 Available online 19 September 2010 Data Envelopment Analysis (DEA) has been widely used as an effective tool for measuring the relative efficiency of similar units by considering various input/output parameters. This paper examines DEA models for the estimation and improvement of organizational inputs and outputs in order to enhance management and decision making processes. We propose an empirical DEA analysis on banking sector by considering several financial and non-financial inputs and outputs. The relative efficiencies of various branches of banks are analyzed in different scenarios. The preliminary results indicate that there are some non-financial items that could significantly change the overall performance of a unit along with other financial items. © 2010 Growing Science Ltd. All rights reserved.

Do external sources generate greater investor awareness that can affect a firm's value and cost of capital?

PurposeThe purpose of this paper is to examine whether focused attention on a firm by an external organization, group, or influential analyst generates greater investor awareness that can affect a firm's value and cost of capital. This study is motivated by contemporary research that provides support for the hypothesis that investors have limited attention. Prior studies have focused on how investors' limited attention has influenced their analysis of firm‐specific financial data. The studies have shown that investors may have limited attention and hence pay more attention to the more salient financial statement items. This paper extends this stream of research by empirically testing to determine if external sources attract investors' limited attention to a firm.Design/methodology/approachThe paper examines the published monthly Center for Financial Research and Analysis (CFRA) research reports from 1998 through 2004 that identify firms experiencing operational problems and/or using unusual or aggressive accounting practices. To provide evidence that information appearing in CFRA research reports has not already been impounded into a firm's stock price prior to the publication of the CFRA research report, the paper tests for abnormal returns around the publication of the CFRA research reports. Second, to provide evidence that the firms' cost of capital decreases after the publication date of the CFRA research reports, the paper tests for a decrease in the bid‐ask spreads after firms appear on the CFRA research reports.FindingsSupport was found for the hypothesis that firms experience a significant decline in their market value in the days surrounding their appearance on the CFRA research reports. For a sample of 892 firms, the cumulative abnormal returns (CARs) for a two‐day window around a firm's appearance on a CFRA research report is −1.89 percent, and the CARs for a seven‐day window around a firm's appearance on a CFRA research report is −3.50 percent.Originality/valueThe paper's findings suggest that the information from the fundamental analysis conducted by the Center for Financial Research and Analysis has not already been impounded into a firm's stock price before its appearance on a CFRA research report. Although the paper found a decrease in the mean difference in the bid‐ask spread change, it cannot provide statistically significant support for the hypothesis that a firm's cost of capital decreases after appearing on a CFRA research report.

An investigation into the personal financial costs associated with stuttering

Stuttering has been found to deteriorate quality of life in psychological, emotional and social functioning domains. It is reasonable to assume then that stuttering would also be associated with economic consequences that may also challenge quality of life. Remarkably, the personal financial costs associated with stuttering in adults has rarely if ever been explored or investigated in the fluency disorders field. This study involved an assessment of the personal costs of stuttering and an investigation into determinants that may influence spending. Two hundred adults who stutter participated in this study. Findings indicated that the average total cost was around $5,500 (median cost $4,165) in 2007/08 Australian dollars over a 5-year period. Major financial items included costs of direct and indirect treatments for stuttering, self-help, stuttering related conferences, and technology. Financial costs were not significantly influenced by the sex of the person, annual income, or by how severe the person stuttered. However, those individuals younger than 60 years old spent significantly more on treatment related costs, while those with elevated levels of social anxiety spent significantly less than those with lower levels of social anxiety. Quality of life implications associated with stuttering are discussed. Educational objectives : The reader will be able to: (a) describe the method for assessing the direct financial costs of stuttering over a 5-year period; (b) describe the financial personal cost of stuttering for adults who stutter; (c) describe the relationship between factors like sex, age, severity of stuttering and financial costs; and (d) describe the relationship between social anxiety and the financial cost of stuttering.

Item Non‐Response to Financial Questions in Household Surveys: An Experimental Study of Interviewer and Mode Effects*

AbstractWe analyse the determinants of non‐response to questions on financial items such as income and asset holdings in household surveys. Our data come from a controlled field experiment. As part of the SAVE study – a representative survey conducted in Germany in 2001 – questions on household income and financial assets were administered using different modes (personal interview versus drop‐off questionnaire). The data also allow us to investigate the influence of interviewer characteristics on non‐response. Our results are in line with predictions derived from models of survey response behaviour that have been developed in survey research and social psychology.

Le attivitŕ reali e finanziarie delle famiglie: un'analisi a livello provinciale

- This paper has two objectives. The former is to describe the methodology for estimating household wealth at provincial level adopted by Tagliacarne Institute. In particular, it aims to explain the reasons for which estimates are restricted to real * Gli autori ringraziano il Prof. Paolo Quirino per gli utili suggerimenti forniti. Le opinioni espresse riflettono esclusivamente il pensiero degli autori e non impegnano in alcun modo la responsabilitŕ degli Istituti di appartenenza. ** Istituto di Studi e Analisi Economica - ISAE. *** Fondazione Istituto Guglielmo Tagliacarne. (bonds, shares and other equity), and technical reserves (pension funds, insurance technical reserves, etc.), concerning financial assets. The latter is to verify the reliability of the estimate by the comparison of corresponding results with other economic variables. Methods and Results It was applied a regressive model finalized to define the relation between the results of the estimation and other aggregates (employment, added value, income) calculated by the National Institute of Statistics and the above mentioned Tagliacarne Institute. The correlation was generally high and in most cases the statistical tests adopted have confirmed a close interdependence existing between provincial household wealth and respective economic variables. Conclusions Comparing theoretical data derived from the model with actual data, the discrepancies between North and South areas appear considerable. The northern provinces show actual values higher than theoretical ones (especially with regard to financial items), while the southern provinces, generally less developed, present a large proportion of real estate and, on the whole, actual values very low. The conclusion of the research is that it could be utilized for monitoring methods and results derived from the estimate.JEL: C13, D31, R20

Unintended Consequence: Fair Value Accounting Informs on Liquidity Risk

We examine in this study the usefulness to investors of the three-level liquidity risk disclosure under SFAS No. 157 through the innovative prism of investors’ reaction to 44 key events (e.g., Lehman’s demise) during late 2008, the peak of the world-wide financial crisis. If fair value accounting informs about the risks (illiquidity) of financial items, then investors’ reaction to the crisis events should be conditional on the three-level disclosure. We indeed find a pecking order of investors’ reaction: For negative - liquidity shrinking - events, investors’ adverse reaction is strongest for Level 3 (highest risk) items, followed by Levels 2 and 1 (often no reaction at all). The reverse holds for positive - liquidity expanding (TARP program, for example) - events. We thus document, for both financial and nonfinancial firms, an important, yet rarely discussed attribute of fair value accounting: Informing on liquidity risk.