Explaining the Accounting Disclosure Index of Stock Exchanges by Foreign Exchange Market Activity

In this article, researcher-created accounting disclosure index of 23 stock exchanges for the year 1992 and its relationship with variables including foreign exchange turnover, economic and financial indicators were investigated. The accounting disclosure index of global stock exchanges crafted by Adhikari and Tondkar (1992) was regressed on foreign market turnover which was utilized as a proxy for foreign exchange market activity. The OLS results supported that along with the activity of foreign exchange market; GNI per capita, market capitalization, energy and electric consumption, number of listed companies were significantly related with the accounting disclosure index. The foreign market turnover was found to be positively influencing the accounting disclosure index. The models explained about 73% of the variation in the index with an F-ratio of 26.56 indicating the overall significance of the model

Resource Allocation, Level of International Diversification and Firm Performance

This paper investigates the threads between international diversification and firm performance, resource allocation to R&D and capital expenditure. The context of this study is a resource-based view and transaction costs theory. Firms that are going international, benefit from the resources available to them outside their home country as well as from the utilization of their core competencies in other countries. Regression models without interactive terms indicate that resource allocation significantly impacts firm performance. Capital expenditure is positively associated with return on assets, while research and development expenditure undermines the firm’s performance. Analyses suggest that there is no thorough relation between international diversification and returns, regardless of using asset or sales diversification variables. The estimates of diversification variable are negative and insignificant in most models

Are U.S. academics and professionals ready for IFRS? An explanation using technology acceptance model and theory of planned behavior

International Financial Reporting Standards (IFRS) have been adopted by several countries around the world as a common accounting and financial language. However, the U.S. is yet to do so. In this study, we investigate the acceptance of the U.S. academics (accounting and auditing students and professors) as well as practitioners (auditors, accountants, CPAs, and financial analysts) to embrace IFRS as a common accounting and financial reporting language. We discuss the extent to which they are familiar with IFRS as well as their perception about the usefulness and risks in adopting IFRS. We further touch on IFRS education, training, and information technology role. Finally, we introduce a modified model based on the technology acceptance model (TAM) and the theory of planned behavior TPB to examine the extent to which perceived risk, perceived usefulness, and perceived familiarity with IFRS affect the perception of readiness to adopt the new standards. We do this by surveying 84 U.S. academics and practitioners. The results from structural equation modeling (SEM) show that perceived risk, familiarity, and usefulness are significant determinants of the adoption of the new standards. In particular, perceived risk of IFRS had the strongest power in predicting the readiness to adopt the new standards

Does Interpersonal Trust Influence Organizational Behavior?

This research investigates into interpersonal trust and workplace outcomes in organizations within social exchange perspective. Current study is building upon the theoretical underpinnings of trust studies that pose trust as a psychological state and a social glue. Current research develops a theoretical model of interpersonal trust presuming that different trust objects -namely peers and senior managementhave unique and direct effects on global workplace outcomes: Affective commitment, turnover intention, and job satisfaction. The data was collected via convenience sampling and data consists of 134 professionals working in Turkey. Structural Equation Modeling (SEM) using Partial Least Squares (PLS) is employed to test our model. Findings suggest that trust in peers and trust in senior management translate into higher affective commitment. Results indicate a positive association between job satisfaction and trust in senior management. Turnover intention however, did not significantly associate with any of the trust variables suggesting the difference between economic exchange and social exchange, which involves reciprocal behaviors. Simultaneous investigation of two trust objects in organizations as well as inclusion of variety of contextual factors bring rigor to the scope of the research and the explanations of workplace outcomes

Granger Causality between Financial Deepening and International Trade: Evidence from Regional Panel Data

Finance-growth nexus has been a prolific research subject whereas research exploring whether there is an interrelationship between financial system and economic growth is somewhat inconclusive (Levine, 2003). Remarkable studies noted that financial system and its level of development are argued to stimulate economic growth whilst some other important figures in academia investigated the opposite link or simply ignored such association. Current research aims to explore aforementioned association with respect to regional financial deepening in Turkey through developing a panel model and exploring causality. The level of total credits and deposits recorded in each province of Turkey in all banks -regardless of state, private or foreign owned- are utilized as measures of local financial deepening. Foreign trade of each province -both imports and exports- is hypothesized to be determined by financial deepening variables as well as a number of control variables. Results using panel data from 2007-2010 (81 province, N: 324) suggest that credits alone do significantly explain the amount of export and import of that particular province. Interestingly, amount of deposits is negatively associated with the level of imports. Combined measure for provision of financial services (sum of loans and deposits) statistically explains foreign trade (sum of exports and imports). Granger causality analysis revealed that there is bi-directional causal relationship between financial deepening and international trade