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This study examines the economic implications of fair value liability gains and losses arising from the adoption of Statement of Financial Accounting Standards No. 159 (hereafter, FAS 159). We find a positive correspondence between a firm's FAS 159 fair value liability gains and losses and current period stock returns, consistent with the notion that these gains and losses are priced by equity investors. However, further analysis indicates that fair value gains and losses from liabilities have a statistically significant negative association with future returns, suggesting that investors misprice this earnings component and subsequently correct the mispricing. We also find that the negative association for fair value gains is stronger for firms with lower levels of institutional ownership. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We provide evidence that for advanced economies' sovereign bond markets in recent decades, both sides of the government balance sheet matter: for explaining government borrowing cost empirically, (i) government assets are significant in addition to government liabilities, and (ii) it is government net worth (total financial and non‐financial assets less liabilities) rather than government liabilities that matters when both are included. The central country‐specific fiscal factor driving sovereign bond yields thus appears to be government net worth. The focus of policy and academic debates though has tended to be narrowly on government debt, even as government net worth has declined substantially in many OECD countries in recent decades. [ABSTRACT FROM AUTHOR]

Recent studies show that the tax‐induced lock‐in effect discourages CEOs from unwinding their unrestricted equity and subsequently exacerbates their risk‐aversion. I investigate how CEOs' unrealized capital gains tax liabilities (tax burdens) influence financial reporting conservatism. I find that the demand for accounting conservatism decreases with CEO tax burdens. Further analyses show that the negative relation between CEO tax burden and conservatism is stronger when the firm has high leverage and high default risk and when the CEO's incentives are more aligned with equity holders. This highlights the shareholder–creditor agency conflicts mitigation role of CEO tax burdens in reducing creditors' demand for conservatism. I exploit the Federal Taxpayer Reform Act of 1997 and staggered state‐level tax cuts that significantly decreased personal capital gains tax rates as identification strategies. [ABSTRACT FROM AUTHOR]

The literature has called on business and management scholars to help understand the global challenges we face and to find solutions. The prevailing narratives that have implicitly informed our understanding of business and management knowledge and practice as good need to be reimagined. We question whether our existing theoretical lenses, along with fundamental underlying assumptions about what constitutes labour, value and its creation, and the nature of assets, liabilities and materiality, act as a barrier to advancing business and management practice as a force for good and explore whether we need to go beyond applying existing theory to new research questions. Both Agency Theory and Stakeholder Theory have proven ineffective in aligning social and economic interests, while our disciplinary and publishing customs constrain our imagination and impede conceptions of fundamentally new ways of practising business. We explore why we need to reimagine business and management; what we mean by reimagining business and management and what it means to be a force for good. We conclude that if the purpose of business needs to be reimagined, business schools will also need to change to be major catalysts in this process. [ABSTRACT FROM AUTHOR]

We study investors' preferences for corporate political connections in the United States using a novel measure: shareholder votes given to individual directors. We find that, after fully accounting for all firm‐year specific information and a wide range of director characteristics, politically connected directors on average do not obtain significantly greater shareholder support. During our sample period (2010–2020), we observe a diminishing popularity of politically connected directors. Political alignment to the incumbent government matters in the sense that Democrat directors are viewed as valuable to shareholders during the Obama administration. However, during Donald Trump's presidency, a Democrat party affiliation instead turned into a liability. We also find that shareholders have a stronger preference for politically connected directors in heavily regulated industries, suggesting that board members can alleviate regulatory risk. Our study has implications for director selection and the role of political connections in shaping corporate governance practices. [ABSTRACT FROM AUTHOR]

Mental accounting refers to a set of cognitive processes in which people code, categorize and evaluate money depending on where it came from and what they are going to spend it on, and this influences the way they make decisions. The concept of mental accounting violates the principles of standard economic theories, which consider money to be fungible or interchangeable. When people mentally account, they prefer to keep accounts separate and not to move money from one mental account to another. The current study aimed to investigate how people mentally account by designing a tax compliance laboratory experiment and using a variety of scenarios. In the first scenario, which involved different tax rate variations, participants were asked to pay tax on their earned and capital incomes. The results showed that participants formed separate mental accounts and treated their earned and capital incomes differently. Specifically, when faced with high tax rates of 60%, tax evasion was significantly higher for earned (labour) incomes compared to capital incomes. This willingness to cheat in order to protect labour income, suggests that individuals value their earned income more compared to income received from a given endowment (capital income). Interestingly, in subsequent scenarios involving different audit probabilities and fine rates, no mental accounting effects were found. In conclusion, this study provides initial experimental insights into the effects of mental accounting on taxpayer's compliance, but further research is needed to explain nuanced findings and investigate tax decisions for different reference points and other sources of income. [ABSTRACT FROM AUTHOR]

The Treasurer's report from the American Economic Association (AEA) provides financial information for the organization, including an expected operating deficit of $2.8 million for 2023 and a projected deficit of $2.6 million for 2024. The report includes audited revenues and expenses for previous years, as well as a balance sheet. It also mentions changes in pricing for library subscriptions and membership dues. The document highlights the AEA's total expenses, which ranged from $11,946,000 to $14,315,000, resulting in operating losses. The AEA's operating revenue primarily comes from membership dues, publication fees, and conference fees. The report also acknowledges the management of the AEA's financial assets by the Budget and Finance Committee and recognizes the contributions of key staff members. [Extracted from the article]

The article discusses the liability of the beneficiary's bank for cybercrime involving fraudulent funds transfers in the U.S. Topics include the most pervasive form of cybercrime involving fraudulent funds transfers, liability of the beneficiary's bank for misdescription of beneficiary, and liability found for the beneficiary's bank under Uniform Commercial Code (UCC) Section 4A-207.

In the contemporary context, characterized by the paramount importance of sustainability, both governments and companies, particularly multinational enterprises (MNEs), play an important role in fostering and overseeing the transformative processes necessary to establish a robust accounting framework for natural capital. The objective of this paper is twofold: firstly, to conduct a comprehensive review of the existing body of literature on this subject and to highlight the importance of avoiding intangible liabilities in MNE from bad practices based on Natural Capital bad practices, and secondly, to outline prospective directions for further research in this domain. To achieve these objectives, we pose two fundamental research questions: (1) What is the current state of knowledge regarding the intangible liabilities and accounting practices of MNEs concerning Natural Capital? (2) How can future research in the field of Natural Capital Accounting be oriented to assist MNEs in accounting for their interactions with Natural Capital? A mixed-method approach is used to address these inquiries. Initially, we substantiate the intrinsic connection between MNEs and the natural environment, utilizing bibliometric techniques to identify the primary themes and areas of focus in the realm of natural capital accounting. Subsequently, we employ in-depth analysis and logical reasoning to propose potential avenues for future research. Additionally, we present a comprehensive model designed to guide forthcoming research endeavors in the domain of natural capital accounting. Among the salient findings derived from our model analysis, it is evident that the inclusion of other environmental factors, such as ecosystem services and biodiversity, should be integral to the overall framework of natural capital accounting. Furthermore, the incorporation of such accounting practices into the day-to-day operations of companies is essential to preserving the natural capital and the reputation of the firms. [ABSTRACT FROM AUTHOR]

The article deals with the approval by the Corporate Laws Committee of the American Bar Association (ABA) Business Law Section of proposed amendments to section 2.02 to permit a corporation to include in its articles of incorporation a provision to eliminate or limit the monetary liability of specified corporate officers. Topics include general classes of provisions relating to the business or affairs of the corporation that may be included in the articles and basic tenet of corporation law.

Multiple-liability immunization strategies require that three conditions are satisfied. These conditions are based on the value, duration, and dispersion of the cash flow stream. The validity of immunization strategies depends on assumptions about how the term structure changes over time. Given that actual term structure changes may violate these assumptions, the performance of these strategies is an empirical question. Using historical weekly changes in the spot rate curve over a 32-year period applied to a large number of simulated portfolios, this article backtests the performance of multiple-liability immunization strategies. The author finds that the dispersion condition, in various forms, does not improve the performance of duration-matched portfolios. Statistical tests of portfolio performance do not depend on whether the dispersion condition is satisfied. Further, duration is a fairly good measure of interest rate risk. Only one duration-targeted portfolio out of 50,000 has a statistically significant historical median return at the 10 percent level. [ABSTRACT FROM AUTHOR]

I study the empirical importance of debt overhang using a unique data set on resource extraction firms that provides ex ante measures of investment opportunities and important variation in terms of a firm's obligations. In particular, unsecured reclamation liabilities create overhang that is costly to resolve and induces firms to forgo and postpone positive NPV investments. Traditional debt, in contrast, imposes few overhang-related investment distortions. These results show that (a) the overhang problem is potentially large and more broadly applies to firms' nondebt liabilities and (b) overhang problems associated with traditional debt can be avoided through contracting and debt composition. [ABSTRACT FROM AUTHOR]

We construct a new data set tracking the daily value of life insurers' assets at the security level. Outside of the 2008–2009 crisis, a |${\$}$| 1 drop in the market value of assets reduces an insurer's market equity by |${\$}$| 0.10. During the ?nancial crisis, this pass-through rises to |${\$}$| 1. We explain this pattern by viewing insurance companies as asset insulators, institutions with stable, long-term liabilities that can ride out transitory dislocations in market prices. Illustrating the macroeconomic importance of insulation, insurers' market equity declined by |${\$}$| 50 billion less than the duration-adjusted value of their securities during the crisis. [ABSTRACT FROM AUTHOR]

Water resource accounting constitutes a fundamental approach for implementing sophisticated management of basin water resources. The quality of water plays a pivotal role in determining the liabilities associated with these resources. Evaluating the quality of water facilitates the computation of water resource liabilities during the accounting process. Traditional accounting methods rely on manual sorting and data analysis, which necessitate significant human effort. In order to address this issue, we leverage the remarkable feature extraction capabilities of convolutional operations to construct neural networks. Moreover, we introduce the self-attention mechanism module to propose an unsupervised deep clustering method. This method offers assistance in accounting tasks by automatically classifying the debt levels of water resources in distinct regions, thereby facilitating comprehensive water resource accounting. The methodology presented in this article underwent verification using three datasets: the United States Postal Service (USPS), Heterogeneity Human Activity Recognition (HHAR), and Association for Computing Machinery (ACM). The evaluation of Accuracy rate (ACC), Normalized Mutual Information (NMI), and Adjusted Rand Index (ARI) metrics yielded favorable results, surpassing those of Kmeans clustering, hierarchical clustering, and Density-based constraint extension (DCE). Specifically, the mean values of the evaluation metrics across the three datasets were 0.8474, 0.7582, and 0.7295, respectively. [ABSTRACT FROM AUTHOR]

In Armstead v Royal Sun Alliance Insurance Company Ltd, the Court of Appeal considered the limits of the 'proprietary fiction' established by The Winkfield, allowing bailees to recover loss through their possessory title of bailment property against a wrongdoer. Despite the decision being defensible on its facts, the Court of Appeal failed to clarify: (i) whose consequential loss the bailee can recover, or whether the bailee and bailor possess 'one set of rights'; (ii) the interface between the recoverability of third‐party contractual liabilities in tort and the rules of bailment; and (iii) the nature and scope of the 'proprietary fiction' established by The Winkfield. This note argues that the bailee's claim against the wrongdoer arises solely from the possessory title (without reference to the bailor) and the ordinary rules of tort should apply after establishing such title. [ABSTRACT FROM AUTHOR]

The aim of this article is to verify how the choice of accounting theory applied to equity and its accounting statements produces consequences that can affect the understanding of government officials, causing effects that were not intended as objectives. The Owner, Entity and Fund theories and public accounting, as the main source of government information, are used to provide the evidence that led to this article. The global growth of the economy has expanded business and created a new need among countries: to reduce the asymmetry of accounting information between those who provide it and its users. The convergence of several countries to international accounting standards is an international cooperation for this purpose: to harmonize accounting information in order to understand and compare the information of governments and their entities in various countries. In Brazil, it began in 2008 (Ordinance MF No. 184), and Brazil has made several adjustments. The Federal Government’s Balance Sheet (BPU) is a “snapshot” of the Federal Government’s net worth as seen by governments, institutions and investors in Brazil and other countries. In Brazil, the conceptual framework for net worth stems from the owner theory, which defines it as the difference between assets and liabilities. The BPU showed positive values for the years 2011 to 2014 and negative values for the years 2015 to 2021. In the 2021 BPU, the negative net worth is R$5.166 trillion. The 2015 BPU shows a negative net worth of R$1.424 trillion and an indication of R$344 billion in liabilities not accounted for in previous years. The Union has no owner or partners. Calculating assets and calling them “net assets” can lead to biases in interpretations, including the perception that users, when looking at the “photographs” from 2011 to 2021, may misunderstand that they are dealing with a private entity. This similarity is associated with the accounting theory used and not the common characteristics between the entities. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Using a natural experiment to identify the causal effect of an increase in default risk on firm actions, I find little evidence managers shift risk to corporate pension plans following an exogenous shock to the firm's long-term liabilities. The finding is robust to focusing on firms where the incentive to engage in risk shifting is arguably the greatest, such as financially vulnerable firms and firms with fewer agency conflicts. This study casts doubt on the risk-shifting hypothesis and shows managers do not take risk-shifting actions that would increase shareholder value even when those actions pose little threat to managerial utility. [ABSTRACT FROM AUTHOR]

Longevity is without a doubt on the rise throughout the world due to advances in technology and health. Since 1960, Ghana's average annual mortality improvement has been about 1.236%. This poses serious longevity risks to numerous longevity-bearing assets and liabilities. As a result, this research investigates the effect of mortality improvement on pension annuities related to a particular pension scheme in Ghana. Different stochastic mortality models (Lee–Carter, Renshaw–Haberman, Cairns–Blake–Dowd, and Quadratic Cairns–Blake–Dowd) are used to forecast mortality improvements between 2021 and 2030. The results from accuracy metrics indicate that the quadratic Cairns–Blake–Dowd model exhibits the best fit to the mortality data. The findings from the study demonstrate that mortality for increasing ages within the retirement period was declining, with increasing improvement associated with increasing ages. Furthermore, the forecasts were used to estimate the associated single benefit annuity for a GHS 1 per annum payment to pensioners, and it was discovered that the annuity value expected to be paid to such people was not significantly different regardless of the pensioner's current age. [ABSTRACT FROM AUTHOR]

Municipal liability is important to parties but complicated to litigate, with multiple types of claims falling within the municipal liability realm. This Article is a roadmap for litigators and judges in municipal liability cases in the Tenth Circuit. It clarifies the pleading requirements and elements for various types of municipal liability claims. It also highlights some unresolved issues in municipal liability litigation and tensions within the Tenth Circuit and among the other circuits. [ABSTRACT FROM AUTHOR]

Purpose: The study aims to examine the financial performance of air passenger carriers in the case of a developing country with transition economy like Bulgaria. It also examines both the main trends in the digital transformation processes of the aviation sector and the obstacles that hinder the widespread implementation of information and communication technologies in the sector. Methodology: Through regression modelling, it is identified which financial performance indicators most strongly influence the digital transformation process of air passenger carriers. Results: The results of the study show that Bulgarian aviation operators are not capable to cover their short-term liabilities and are strongly dependent on their creditors, especially in terms of exogenous shocks like COVID-19 pandemics, political crisis, ongoing military conflicts in Ukraine and uncertain business environment. The country ranks on last place according to the values of DESI index in comparison to EU average levels in terms of digital skills of transport workers, e-commerce, and deployment of ICT. Practical implications: The implications of the study could serve as basis for future research in the field of financial performance of other modes of transport or to be used for examining the air transport of countries with similar political and economic characteristics like Bulgaria. Paper type: Research paper. [ABSTRACT FROM AUTHOR]

Can cost-benefit analyses change the terms of debate over resource utilisation - in political and civil society and the state, among environmentalists, in the courts, and especially with respect to community, grassroots-feminist, labour and youth activists opposed to extractive industries and in particular, fossil fuels? Since late 2021, hundreds of protests against gas exploration along the coastline of KwaZulu-Natal, the Eastern Cape, Western Cape and Northern Cape, which is the site of debate in this paper, have helped society better consider fossil fuel costs and benefits. There are revealing controversies regarding the application of natural capital accounting (especially the Gaborone Declaration), overdue reforms to Gross Domestic Product national accounts, the 'Social Cost of Carbon' (and related carbon taxation and liability accounting), and intergenerational sustainable development calculations (such as the Hartwick Rule). In some cases, Environmental Impact Assessments allow for such narratives, but more important was a court case in 2022, Sustaining the Wild Coast et al. versus Shell et al., initially won by community critics of offshore gas (although subsequently being considered on appeal). On all these terrains, dangers of technicism and legalism abound, but if conceptualised with care, the merits of a broader, multi-scale environmental-economic consideration of the extractive industries could ultimately be foundational in resistance narratives and practices. [ABSTRACT FROM AUTHOR]

Detection of fraudulent financial stewardship in the cash flow section is an exciting thing and is rarely studied. This research empirically tests the discovery of fraudulent financial statements based on basic cash flow shenanigans. The sample of this study amounted to 470 data mining companies in Indonesia, Malaysia, China, and Japan. The analysis method used is a positive approach. The results show that all ratios used can predict fraudulent financial statements. Three ratios of cash flow shenanigans, namely change in receivable to cash flow operations, days payable outstanding, and change in inventory to cash flow operations, significantly affect the F-Score. Meanwhile, the six cash flow shenanigans ratios, namely cash flow operations to current liability, operating cash flow ratio, free cash flow, cash flow operations to total liability, days payable outstanding, and change in inventory to cash flow operations, have a significant effect on the M-Score. [ABSTRACT FROM AUTHOR]

Low-income households with proximate access to payday loans exhibit greater economic distress, higher take-up of food assistance benefits, and greater delinquency on child support payments than peers without proximate loan access. These findings suggest that borrowing can exacerbate distress, leading borrowers to use transfer programs and to prioritize payday loan payments over other liabilities like child support. In that way, payday lending produces negative externalities—costs imposed on taxpayers that fund transfer programs and nonresident family members that fail to receive child support. Received August 13, 2014; editorial decision December 5, 2016 by Editor Alexander Ljungqvist. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

The Bank of Canada's purchases of securities under quantitative easing are tantamount to an exchange of a fixed interest rate expense for a floating rate paid on certain liabilities of the Bank of Canada. They also imply that the Government of Canada remains liable for potential losses on these assets. This significantly increases the proportion of federal government debt financed in the money market, exposing the Government of Canada to higher interest rate risk than indicated in the budget documents and has resulted in significant losses to date. The exit from quantitative easing in an anti-inflationary environment poses significant challenges for monetary policy and points to a difficult fiscal situation. [ABSTRACT FROM AUTHOR]

The article provides information on the Form I-9 or employment eligibility verification which is described as a complex legal form. Topics discussed include suggestions to minimize business disruptions and mistakes, how fines for I-19 violations are determined, and application of statutory penalty factors to mitigate the employer's liability.

Purpose: This study analyses Chinese data to revisit the relationship between directors' and officers' (D&O) insurance and accounting conservatism, aiming to investigate the impact of investors' legal protection on the function of D&O insurance. Design/methodology/approach: The study sample included all A-share firms listed on the Shanghai and Shenzhen Stock Exchanges from 2006 to 2019. Multiple regression was used to investigate the association between D&O insurance and accounting conservatism. The Heckman two-stage model and the propensity score matching method were used to check the robustness of the main results. Findings: D&O insured companies exhibited greater accounting conservatism. The higher the indemnity limit, the more conservative a firm's earnings reporting. The positive correlation was stronger when investor protection was relatively weak. The impact of D&O insurance on accounting conservatism was stronger for companies with weaker internal or external supervision mechanisms. Originality/value: The study findings show that D&O insurance plays a positive role in the governance of listed companies when investors' legal protection is weak, which supports the effective supervision hypothesis of D&O insurance. [ABSTRACT FROM AUTHOR]