• Management & Information Systems Review
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• v.13
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• pp.99-125
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• 2003

The purpose of this study is to improve local government accounting system for value creation. In order to achieve this object: First, improvement of public finance policy can be obtained through connection of policy and estimate, and evaluation of soundness and rationality of tax system. Second, innovation of appropriation is achieved through effective division of cost, efficient division of budgetary resources and perfect accrual accounting. Third, a performance report must include accurate performance measures and performance indicators, for its effect is linked to public finance policy. Fourth, general principles of local government accounting must include significance, reliability, consistency with user concepts, relevance, understandability and comparability for financial reports.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.347-353
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• 2022

Using the Heckman two-step procedure, this study investigates the relationship between management accounting implementation and firm effectiveness. The research data for this study was acquired from 450 publicly traded companies in Vietnam; however, the final sample only includes 304 responses containing useful information. The reliability analysis was used to evaluate the acquired data to examine the qualities of constructs and the dimensions that make them up. Then, the Heckman two-step technique was performed to analyze the causal connection from the acceptance of management accounting to firm effectiveness allowing for the effect of environmental uncertainty and organizational characteristics on the likelihood of adopting management accounting. The empirical findings show that management accounting acceptance determines firm effectiveness; however, the research model on the relationship between management accounting adoption and firm effectiveness has a sample selection bias. The main conclusions of this study are that there is a difference in the effects of management accounting adoption on business effectiveness when sample selection bias is not taken into consideration. When potential sample selection bias is taken into account by integrating environmental uncertainty and organizational characteristics in the research model, the effect of adopting management accounting on company effectiveness becomes minor.

• Korean Business Review
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• v.18 no.1
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• pp.19-41
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• 2005

The informativeness of accounting earnings to investors may be used as a measure of the quality of accounting information. The ownership structure is considered to be related to both of two variables, the reliability of earnings reflecting the economic performance of the enterprise and the existence of alternative information sources. Earnings manipulation may mitigate the correlation between accounting earnings and the economic performance and alternative information sources decrease the value of accounting earnings as an information. Thus ownership structure could influence the informativeness of accounting earnings. This paper classifies ownership into three categories, management or inside ownership, institutional investors and large outside blockholders, and diffuse outside ownership and examines theoretically the difference of information effectiveness under each ownership structure. The earnings manipulation hypothesis supports the assertion that the separation of ownership from control motivates earnings manipulation. And differential information hypothesis suggests that more non-accounting information of firms with institutional or concentrated outside ownership is provided. Outside blockholders have alternative information sources that make accounting manipulation ineffective. While most previous studies have examined the effect of ownership on the informativeness of earnings from earnings manipulation hypothesis, this study is motivated by both earnings manipulation hypothesis and differential information hypothesis.

• Korean Management Science Review
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• v.12 no.2
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• pp.129-146
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• 1995

As society's relience on computerized information systems to support a wide range of activities proliferates, the long recognized importance for adequate data quality becomes imperative. Furthermore, current trends in information systems such as dispersal of the data resource together with its management have increased the difficulty of maintaining suitable levels of data integrity. Especially, the importance of adequate accounting (transaction) data quality has been long recognized and many procedures (extensive and often elaborate checks and controls) to prevent errors in accounting systems have been introduced and developed. Nevertheless, over time, even in the best maintained systems, deficiencies in stored data will develop. In order to maintain the accuracy and reliability of accounting data at certain level, periodic internal checks and error corrections (internal audits) are required as a part of internal control system. In this paper we develop a general data quality degradation (error accumulation ) and cost model for an account in which we have both error occurrences and error amounts and provide a closed form of optimal audit timing in terms of the number of transactions that should occur before an internal audit should be initiated. This paper also considers the cost- effectiveness of various audit types and different error prevention efforts and suggests how to select the most economical audit type and error prevention method.

• Korean Business Review
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• v.17 no.2
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• pp.111-129
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• 2004

The purpose of this study is to indicate problems of accounting for social welfare corporations and to suggest the improvement on them. To accomplish this objective, this study reviewed the existing relevant studies and literatures. The main results of this study are summarized as follows. First, it is necessary to convert from cash basis accounting to accrual basis accounting and to introduce the double entry bookkeeping. Second, it is needed to capitalize the tangible fixed assets and to depreciate them. Third, Cost accounting is necessary to evaluate the operating results. Fourth, it is necessary to establish the generally accepted accounting principles in consideration of the characteristics of accounting for social welfare corporations. Last, it is necessary to introduce the external audit system to ensure the reliability of accounting information.

• Journal of Information Technology Applications and Management
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• v.26 no.4
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• pp.41-50
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• 2019

Block chain technology revolutionizes the 'double entry bookkeeping' of accounting principles in 600 years. It will be an opportunity for you to become one. The advent of the block chain will revolutionize the accounting world. It is no exaggeration to say that it is a skill. The use of block chains for accounting leads to the occurrence of transactions. It's easy to identify a transaction, and it's easy to fake or tamper with it. The accounting industry because it is difficult to communicate transparent accounting information to stake holders. Transformations will be possible across the board (Carlozo, 2017). An entity shall provide financial information that is useful to interested parties in making reasonable economic decisions. Transactions arising from business activities are recorded and provided in the books. Interested parties are here. We need to make decisions to protect our interests and make those decisions rationally. To make a decision, we know how the outcome of the decision will affect our self-interest. Because it has to do so, it uses corporate information for this purpose. But the investor is one way of doing business. It is difficult to trust the information provided by (Yermack, 2017). As a result, ICO companies, startups, small businesses lose a lot of business opportunities because they don't have investors. In addition, the management mixes cash flows with accounting interests to indicate changes in cash flows. It experiences failure in its business due to its inability to analyze and predict faithfully. But it's a blockhead in accounting. Applying the factors and recording them in the book will result in a number of benefits for different stake holders. It can be provided. The financial information in the block chain is not subject to further review or verification. It can improve the timeliness and increase reliability of financial information because it cannot be forged or tampered with (Delloitte, 2016). Based on the fourth industrial revolution, the pace of change in all sectors of society has never been faster. Based on block chain technology, decision-making structure is based on vertical structure of the past. Transforming into a horizontal structure collapses existing tools and advances transparency and decentralization a change of Copernican interpersonal awareness with the trend of the times, which is becoming angry with modern people.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.707-715
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• 2021

This article examines the potential impact of the Covid-19 Lockdown on earnings manipulation and stock market sensitivity to earnings announcements. It also explores the effects of earnings manipulation after the COVID-19 outbreak on the share price sensitivity to the earnings disclosures. The study uses a quantitative method to analyze the financial data consisting of 87 firms listed on the Iraq Stock Exchange for the period from 2018 to 2020, which constitutes a total of (174 observations). We used Ohlson (1995) model to estimate financial market reaction and sensitivity to earnings manipulation fluctuations and accounting information. The results show that companies practice earnings manipulation to maintain earnings over a time series, which means a negative impact of earnings manipulation on all earnings measures' value relevance (EPS, BVS, and CFS). Accordingly, earnings manipulation negatively influences investor behavior in the financial market, based mainly on financial reporting. The value relevance of financial reports has also decreased because of the COVID-19 outbreak and related economic Lockdown. These results reflect a long-term adverse impact of earnings manipulation on investor behavior and financial statements reliability.

• Asia-Pacific Journal of Business
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• v.11 no.4
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• pp.271-289
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• 2020

Purpose - This paper examined the relation between Correction of Annual Reports and Earnings management. The annual reports are used as key reports for critical decision making by providing useful information to various stakeholders across the firm. Design/methodology/approach - The sequence of this study is analysed that each of the following two cases affects the earning management: 1. that corrections have been made; 2. Where financial information have been modified or non-financial information have been modified during the correction of the annual report. We draw an initial sample of firms listed on the Korea Stock Exchange from 2014 to 2017. Among these, we excluded firms that were not able to obtain the variables needed to measure the correction of Annual Reports and the earnings management. Finally, we use the 7,035 firm-year observations. Findings - Our empirical results of this study are as follows; First, it turned out that the earnings management of companies that report business reports on corrections is larger than those that do not. Second, among the types of annual report corrections, the correction of non-financial information is significantly larger on earnings management than the correction of financial information. Research implications or Originality - The correction disclosure of business reports is a very important issue in terms of accounting information accuracy and reliability. The results of this study will provide policy implications for correction disclosures and regulations due to an important issue as accounting information. An entity that initially prepares accounting information should advanced in such a way that it provides high quality accounting information and then complements and accepts it by various stakeholders.

• Asia pacific journal of information systems
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• v.5 no.2
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• pp.79-100
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• 1995

Internal Control(IC) comprises the plan of organization and all of the coordinating methods and measures adopted in a business to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to the prescribed managerial policies. If an organization's IC is not adequate, Accounting Information System (AIS) will be vulnerable to accomplish the organizations successes. Therefore, an effective and efficient IC is essential to its successes. The purpose of this study is to analyze the impact of EDP IC on the perceived usefulness of AIS. Do the general controls indirectively affect to the usefulness of AIS through th application controls? To solve these problems, a research model and a set of hypotheses were established and empirically tested. 60 financial institutions (banks, insurance companies, security companies) agreed to participate in the study. Data were gathered through structured interviews with 60 information systems managers and 537 users of accounting information of each company. Survey forms were designed and collected from financial institutions in Seoul. Information systems' managers of financial institutions responded to questionnaire(1) which consists of a series of 70 questions related to practice and perceived importance. Questionnaire (2) was received from 537 users, who responded to series of 17 questions related to the perceived usefulness. The results of analysis are summarized below. Effects of general controls are more direct on AIS's usefulness than those of application controls. Whereas, indirect effects of application controls are geater than those of general controls. Therefore, the greater the effects of application controls on general controls, the higher the perceived usefulness of AIS. In conclusion, this study supports that the perceived usefulness of AIS is affected by IC which are composed of general controls and application controls. The results of this study has significant implication to financial institution as computer fraud potential increases. Because of global competitions, financial institutions should restructure to IC and AIS in order to take advantage of the technological progress in Information System.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.4
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• pp.107-119
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• 2020

The study investigates the effect of the widened daily stock price limits on the usefulness of accounting information in Korea: 1) whether investors place a higher importance on audit quality, an indicator of the reliability of accounting information, and 2) whether there are differences in the relationships between audit quality and stock-price earning-rates two years before and after June 15, 2016. This study employs samples of two years (2013 to 2015) before the widening and two years after the widening (2016 to 2017). The samples are limited to the companies listed on the Korea Stock Exchange, accounting settled in December, collected from Fn-Guide and TS-2000 of the Korea Listed Companies Association. The results show that the positive association between audit quality and stock return was increased during the later period, compared to the preceding period. This tendency was more evident in companies with higher debt ratios and companies with lower levels of income smoothing, which is considered to have higher risks. The findings suggest that it is the first study evaluating the effect of widening daily stock price limits, made on June 15, 2015, on the usefulness of audit quality information by examining the relevance between audit quality and stock return.