Principles of forming a modern accounting and analytical model of commercial organization in digital economy

Purpose: The article presents basic methodological approaches to the creation of a new model of forming and functioning of the accounting and analytical system to meet the information needs of internal and external stakeholders of organizations. Design/Approach/Methodology: Substantiation of the principles of building a system for accounting and analytical information management that meets current conditions for the business functioning using modern hardware and software. Findings: The developed model of cascade functioning of organization’s information support system optimizes the structure and content of accounting and analytical modules, contributes to the effective implementation of management functions, timely control and rapid response to the impact of negative factors. Practical implications: The principles of information flow management system constructing formulated in the article contribute to optimization of expenses for organization of accounting and analytical functions, improvement of quality of financial and non-financial reporting, realistic assessment and forecasting of business efficiency. Originality/Value: The proposed new model for constructing an accounting and analytical information base allows to improve the procedures of collection, processing, storage and disclosure of financial and non-financial information, to create a balanced structure of the database on the basis of cascade digitization of primary and derived data.peer-reviewe

The processing of non-anticipated information in financial markets: Analyzing the impact of surprises in the employment report

This paper delineates the simultaneous impact of non-anticipated information on mean and variance of the intraday return process by including appropriate variables accounting for the news flow into both the mean and the variance function. This allows us to differentiate between the consistent price reaction to surprising news and the traders’ uncertainty about the precise price impact of this information. Focussing on the US employment report, we find that headline information is almost instantaneously incorporated into T-bond futures prices. Nevertheless, large surprises, and ’bad’ news in particular, create considerable uncertainty. In contrast, if surprises in related headlines cross-validate each other, less room for differences of opinion is left, and hence volatility is decreased.high-frequency data, information processing, macroeconomic announcements, Treasury bond futures, trading process, volatility

Financial markets: very noisy information processing

We report new results about the impact of noise on information processing with application to financial markets. These results quantify the tradeoff between the amount of data and the noise level in the data. They also provide estimates for the performance of a learning system in terms of the noise level. We use these results to derive a method for detecting the change in market volatility from period to period. We successfully apply these results to the four major foreign exchange (FX) markets. The results hold for linear as well as nonlinear learning models and algorithms and for different noise models

The impact of trading mechanisms and stock characteristics on order processing and information costs: A panel GMM approach

My study provides a panel approach to quantify the impact of trading mechanisms and stock characteristics on spread components. Based on the two-way decomposition of Huang and Stoll (1997), a cross-sectional dimension is added. Arrelano and Bover's (1995) dynamic GMM procedure and the Helmert''s transformation allow controlling for company specific effects. In line with former research, I confirm higher order processing costs on the NASDAQ. My model identifies the reasons for higher information costs on dealer markets, namely lower market capitalization and less attention of financial analysts. Yet the trading mechanism itself is not responsible for higher information costs.

Exploring the role of messenger effects and feedback frames in promoting uptake of energy-efficient technologies

The persuasive potential for varying messenger types and feedback frames to increase pro-environmental choice was explored in a 2 (feedback frame: financial vs. environmental) × 5 (messenger type: neighbour, government, industry, utilities vs. control) factorial design experiment. Using the context of home heating choice, 493 non-student participants were given information on either the financial or environmental benefits of selecting an energy-efficient heat pump versus a standard boiler, as described by one of four messenger types (versus a no-messenger control). Likelihood of selecting the ‘green’ technology was assessed, as well as any carry-over effects on real-life behavioural intentions. Additionally, we assessed the messenger attributes that appeared to be most important in this context, in terms of whether sources that were perceived to be trustworthy, knowledgeable, or a combination of both dimensions, would hold greater sway over preference formation. Overall, no evidence was found for any impact of messenger type on either preference formation or behavioural intentions. However, message content (i.e. how information on the benefits of pro-environmental choice was framed), was found to have substantial impact on behaviour; with the financial versus environmental decision frame being significantly more likely to encourage uptake of the energy-efficient versus standard technology. We suggest that the level of processing required for the kinds of large-scale purchase decisions we consider here may explain the lack of any messenger effect on choice behaviour. Implications for the development of behaviour change interventions designed to promote consideration of energy-efficient technologies in this context are discussed

Universality of Measurements on Quantum Markets

We reason about possible future development of quantum game theory and its impact on information processing and the emerging information society. Two of the authors have recently proposed a quantum description of financial market in terms of quantum game theory. These "new games" cannot by themselves create extraordinary profits or multiplication of goods, but they may cause the dynamism of transaction which would result in more effective markets and capital flow into hands of the most efficient traders. We focus upon the problem of universality of measurement in quantum market games. Quantum-like approach to market description proves to be an important theoretical tool for investigation of computability problems in economics or game theory even if never implemented in real markets.

The use of fuzzy logic and expert systems for rating and pricing firms: a new perspective on valuation.

This paper presents an expert system aimed at evaluating firms and business units. It makes use of fuzzy logic and integrates financial, strategic, managerial aspects, processing both quantitative and qualitative information. Twenty-nine value drivers are explicitly taken into account and combined together via “if-then” rules to produce an output. The output is a real number in the interval [0,1], representing the value-creation power of the firm. The system may be used for rating, ranking and pricing firms as well as for assessing the impact of managers’ decisions on value creation and as a tool of corporate governance.Firm valuation, fuzzy logic, expert system, acquisition, rating, pricing

Innovation barriers and risks for food processing SMEs in Malaysia: a logistic regression analysis

The food industry is facing a period of rapid change driven by globalization, trade liberalization, development of genetic, processing and information technology, intellectual property rights, changes in family structure and health and food safety concerns. Given that the food processing SMEs account for a large part of mainstream businesses in Malaysia, this study sought to examine the impact of barriers and risks on the innovation of new product, process and services of food processing SMEs in Malaysia. To achieve this objectives, the study analysed primary data gathered from 247 executives of food processing SMEs in Malaysia with statistical and econometric techniques. The multiple logistic regression models were employed to estimate how innovations were being affected by the existing barriers. The study revealed that the Malaysian SMEs were suffering from financial sourcing problems and beset with the barriers of human capital, business competitiveness, infrastructure, and government policy. Further multiple logistic regression model’s outputs showed significant impacts on innovations from financial barriers, especially in regard to financial assistance from the government or financial institutions, namely, high interest rates or profit charged, complicated loan application process and unable to enjoy promotional financial packages by financial institutions for food processing SMEs in Malaysia. The study recommended that the Malaysian SMEs’ challenges be considered seriously and that the industry be provided with sufficient financial assistance in developing new products, new market and new sources of supply so that they can be truly sustainable and globally competitive