Controversies over fair value accounting： The case of SMEs

This study analyses IASB＇s stipulations on fair value usage in its standard designed for SMEs and the reactions of national standard setters, preparers and users of financial reporting in this respect. It tries to clarify fair value applications such as market value and value in use and the appropriateness of their usage for the case on hand. This research determines the inconsistencies within IASB ED IFRSfor SMEs （2007） related to the usage of fair value, underlined by the respondents＇ comment letters. The content analysis of all the above, conducted according to the type of economy and nature of respondent, along with the statistical techniques applied, indicates a partial approval of fair value usage under the following conditions： clarification of the concept, details on its usage in relation to market liquidity and the nature of the asset, additional guidance regarding the measurement methods. We advocate for the value in use, an application of the fair value based on internal valuations, which offers an adequate cost-benefit rate. The final version ofIFRSfor SMEs highlights both the preference of market information over the internal valuations and the insufficient information regarding solutions suited for non-liquid markets. It may be appropriate for the IASB, maybe in collaboration with the IVSC, to provide guidance and details regarding the implementation and disclosure of the valuation techniques applicable to this type of entities.

Agriculture, Profitability and Climate Change: Can Accounting Help Identify Best Farming Practices? Empirical Case Study in Spain

We perform an empirical analysis on the benefits of, and the challenges faced by, sustainability accounting in measuring the effects of climate change for a sample of Spanish rice farms. We use farm yields, revenues and incomes as indicators of economic performance, and greenhouse gas emissions, and direct and indirect energy consumption as indicators of climate change effects. According to our data, farms with higher yields, revenues and income are responsible for a greater environmental impact, measured in total gigajoules of energy consumed and tons of carbon dioxide emitted, than farms with a lower economic performance. Results show that in our sample the achievement of higher yields is attributable to the greater use of chemical inputs and fossil fuels and not to innovative and sustainable farming practices. The results indicate that accounting for climate change effects is not only possible but also necessary to provide more accurate information on the overall costs and benefits of farming. Greater transparency in accounting information should serve to highlight which farming activities are better able to reduce climate change impacts.

The accounting valuation of bank stocks in Europe

In this study we examine the validity of the earnings-book value capitalization model in the pricing of bank stocks in Europe. We perform cross-sectional tests using a sample of banks operating in 21 European Union countries. We split our sample into code and common law countries to control for the influence of the financial reporting system upon the pricing of earnings and book value. Our empirical findings suggest that disaggregating total reported clean surplus income into reported gains and losses from securities and other income increases the explanatory power of the accounting valuation model. Indeed, reported gains and losses from securities are priced lower than other income, irrespective of whether the financial reporting system is classified as a code or a common law system, probably because the market considers the former as a less stable source of income. Additionally, we observe that the pricing of both earnings and book value is influenced by the financial reporting system. We conclude that earnings announced under a common law financial reporting system are priced differently from those reported under the respective code law system. Finally, we provide evidence that comprehensive and dirty surplus income are two value relevant variables for banks reporting earnings under the code law system, although dirty surplus income is priced lower than clean surplus income.

Predicting the returns of the US real estate investment trust market:evidence from the group method of data handling neural network

Purpose:The Group Method of Data Handling(GMDH)neural network has demon-strated good performance in data mining,prediction,and optimization.Scholars have used it to forecast stock and real estate investment trust(REIT)returns in some coun-tries and region,but not in the United States(US)REIT market.The primary goal of this study is to predict the US REIT market using GMDH and then compare its accuracy with that derived from the traditional prediction method.Design/methodology/approach:To forecast the return on the US REIT index,this study used the GMDH neural network and the generalized autoregressive conditional heteroscedasticity(GARCH)model.In this test,the training samples,testing samples,and kernel functions of the GMDH model are controlled to investigate their impact on the accuracy of the machine learning approach.Corresponding experiments were performed using the GARCH model,and the accuracies of these two approaches were compared.Findings:Compared with GARCH,GMDH’s accuracy is much higher,indicating that the machine learning approach can provide a highly accurate prediction of REIT prices.The size of the training samples and the kernel functions in the GMDH model affect the accuracy of the prediction results.In particular,the kernel function has a signifi-cant impact on prediction accuracy.The linear and linear covariance kernel functions are simple to train and yield accurate predictions,whereas the quadratic function is difficult to train.Even with small training samples,GMDH can outperform GARCH in prediction accuracy.Research limitations/implications:Although GMDH shows good performance in predicting the US REIT return,it is still a black-box model,and the algorithm is difficult for financial analysts to develop and customize.The data used in this study come from the US REIT market,which is the world’s largest and most liquid market.Social implications:This research shows that the GMDH model outperforms the GARCH model in forecasting REIT returns.Hence,investors can use the machine thus better investment decisions.Future investors and researchers may use GMDH to forecast the performance of REITs in other markets.Originality/value:This is the first study to apply the GMDH neural network to the US REIT market and determine the impact of the two factors on its performance.For example,this research first discusses the impact of kernel functions on the US REIT market using the GMDH neural network.It also includes short-term daily prediction returns that were not previously considered,making it a valuable reference for financial industry analysts.

Governance of artificial intelligence applications in a business audit via a fusion fuzzy multiple rule‑based decision‑making model

A broad range of companies around the world has welcomed artificial intelligence(AI)technology in daily practices because it provides decision-makers with comprehensive and intuitive messages about their operations and assists them in formulating appropriate strategies without any hysteresis.This research identifies the essential components of AI applications under an internal audit framework and provides an appropriate direction of strategies,which relate to setting up a priority on alternatives with multiple dimensions/criteria involvement that need to further consider the interconnected and intertwined relationships among them so as to reach a suitable judgment.To obtain this goal and inspired by a model ensemble,we introduce an innovative fuzzy multiple rule-based decision making framework that integrates soft computing,fuzzy set theory,and a multi-attribute decision making algorithm.The results display that the order of priority in improvement—(A)AI application strategy,(B)AI governance,(D)the human factor,and(C)data infrastructure and data quality—is based on the magnitude of their impact.This dynamically enhances the implementation of an AI-driven internal audit framework as well as responds to the strong rise of the big data environment.Highlights Artificial intelligence(AI)promotes the sustainability development of audit tasks.A fuzzy MRDM model extracts key factors from large amounts of data.Fuzzy decision-making trial and evaluation laboratory analysis accounts for dependence and feedback among factors.An effective framework of AI-driven business audit is proposed in which“AI cognition of senior executives”is the most important criterion.

The Impact of Satellite Communications on Environmental Hazard Control: Tool for the Realization of African Union Agenda 2063 Aspirations

Africa is a developing economy and as such, emphasis has been placed on the achievement of revolutionary goals that will place her on a similar rank as the developed economies. Pertaining to this objective, Heads of States and government all over Africa instigated the African Union (AU) Agenda 2063, which is a framework put in place to achieve a continental transformation over the next 40 years. The use of satellites has been proven to be a major influence on economic growth since it facilitates the exchange of information. Environmental hazards such as climate changes, pollution, and inefficient waste management can be classified as one of the drawbacks to achieving this economic growth we hope to accomplish. The purpose of this paper is to analyze and examine satellite communication as a tool for the attainment of an integrated, prosperous and peaceful Africa by means of combatting environmental hazards in the continent.

Comparative Analysis of Credit-Strength among Industries of Bangladesh:Altman’s Z-score Measurement

The main motive of the study is to explore the financial position of prominent industries in Bangladesh to give direction to investors for sound investment decisions.The Altman Z-score model has been used to assess the financial soundness of the 23 companies of five prominent industries in Bangladesh.Secondary data have been collected from the annual reports of the selected companies.This study found that 20%and 40%of the selected companies of the ceramic industry and tannery industry fall on the safe form respectively that means where investors can invest without any doubt as they are financially sound.Similarly,28.57%,40%,and 25%of the selected companies of cement,ceramic,and paper and printing industries stand in the grey zone respectively which indicates the companies have a good chance of bankruptcy within two years.Again 71.43%,40%,75%,60%,and 100%of companies in the cement,ceramic,paper&printing,tannery,and jute industries’financial conditions are not satisfactory respectively as they fall in the distress zone.And only 20%of the selected industries fall in the safe zone.That means the overall financial soundness of the selected industries is not well.This study will be an important source for further study in the field of credit strength measurement.Every actor of society those are involved in the business(investors,lenders,workers,suppliers,financial institutions as well as the economy itself)can be able to make adequate decisions by the findings of the study.

Are Socially Responsible Banks More Risk Averse and Dividends Providers?Empirical Evidence from a Developing Economy

Purpose:This study examines whether socially responsible firms are uninterested in risk-taking and whether socially responsible banks are more dividend providers than socially irresponsible ones.We conducted the analysis using the least-squares method for 290-panel data observations of 32 commercial banks operating in Bangladesh from 2008 to 2018.Methodology:We employed Ordinary Least Squares Regression for 290-panel data observations of 32 commercial banks operating in Bangladesh from 2008 to 2018 using EViews software version-8.Moreover,we conducted descriptive analysis and correlations using SPSS software.We considered CSRI and CSRPI as the indicators of corporate social responsibility,dividend per share and stock dividend as a proxy of dividend policy,LEV(leverage),and non-performing loan to total loan as the indicators of financial risk,and lastly,Z score as the indicator of financial stability.Findings:Studies have shown that banks prioritizing social responsibility tend to pay dividends to their shareholders more frequently and consistently than banks that do not.In particular,banks that invest heavily in corporate social responsibility(CSR)tend to maintain a stable dividend payout,which can help address agency problems that arise from overinvestment in the CSR sector.Additionally,we found that banks that make huge expenditures on CSR also seem to have a low eagerness for risk-taking.Again,we found that the financial stability of a socially responsible bank is high and stable enough,which will help efficiently handle the bank’s financial risks,reduce price fluctuations,and increase financial assets that generally influence a bank’s monetary stability.Implications:Banks implementing fruitful CSR strategies can produce substantial shareholder advantages through high dividend payout levels.An expansion in CSR-related expenditure does not prompt a cut-down or reduce the portion of income paid out as dividends to shareholders.Therefore,the Output of our study will help provide critical information and a thorough understanding of corporate social responsibility and its association with the dividend policy,risk,and financial stability in the banking sector.This will also be useful to the researcher,students,and corporate policymakers while making a critical decision about whether a firm should make expenditures on CSR purposes,how it impacts a firm’s dividend decision,and its connection with its overall risk and financial stability.According to the study,corporate social responsibility should be integrated into a firm’s mission and strategy rather than appearing to be a mere act of generosity.Originality/Value:This study uniquely considers CSR,dividend policy,risk,and financial stability simultaneously in a developing country.Besides,the three-dimensional measures of CSR used in the research focused on developing the economy are a precious contribution.

The Realization Path of Japan's Agricultural Modernization and Its Precious Experience for China

In Japan, the per capita arable land area is small, the natural resources are short, and agricultural production has the typical characteristics of the peasant economy. Even if there are many unfavorable conditions, the level of agricultural modernization of Japan has exceeded that of many developed countries. We conduct comparative analysis on the development characteristics of China's agriculture and Japan's agriculture, and summarize the realization path of Japan's agricultural modernization. Based on the reality of China, we can draw on the following experience from Japan: establishing and improving the agricultural legislation for agriculture; improving the rural cooperative economic organizations; deepening the reform of the agricultural land property right system; increasing the government's direct funds input of into agriculture; improving the agricultural technology extension system.

Factors influencing the internet banking adoption decision in North Cyprus: an evidence from the partial least square approach of the structural equation modeling

Purpose:This paper aims to examine how the adoption decision of the internet banking in North Cyprus would be affected based on the following dimensions;the technology features,the personal characteristics,the social environment and the expected risk.Design/methodology/approach:A self-administered survey was conducted with 291 participants responded to it.The partial least square approach of the structural equation modeling(PLS-SEM)is employed to investigate the direct effects of the proposed factors on the adoption decision.Additionally,the mediation test is used to examine indirect effects.Findings:Results showed that even though the participants appreciated the benefits of the online banking as the perceived usefulness factor exerts the greatest direct effect,they would rather use clear and easy-to-use websites,adding to that their assessments of the usefulness of these services are significantly influenced by the surrounding people’s views and prior experience.This is demonstrated by the total effects of the perceived ease of use and the subjective norm factors,which are greater than the direct effect of the perceived usefulness factor since both of these factors have significant direct and indirect effects mediated by the perceived usefulness factor.The negative impact of the perceived risk factor is weak compared to the previous factors.While the personal innovativeness factor showed the weakest effect among the proposed factors.

Deployment Challenges of Offshore Renewable Energy Systems for Sustainability in Developing Countries

This research aims to expose deployment challenges of offshore renewable energy systems in developing countries. The investigation of the deployment model covers climate conditions, economic conditions, necessary infrastructure services and wind power by considering the case of Cyprus Island which is one of the Small Island Developing States (SIDS) countries. The convenience of Offshore Energy Systems to the territory and their systematic proper work is an important issue. Because of that, the setting up of Offshore Wind Energy Tribunes in Cyprus, the planning process, structuring of cost values and necessary resources, the investigation of the geographic conditions for obtaining the energy flow and assessment of these conditions for Offshore Wind Tribunes are the prime objectives of this study. The orientation period and the applicable qualifications of the offshore energy systems were evaluated on the basis of the world wide references. The study is concluded by the estimation of the advantages and disadvantages of the system for Cyprus.

Financial constraints and investment decisions of listed Indian manufacturing firms

Background:The purpose of the study is to understand the role of cash flow sensitivity to investment as a measure of financial constraints among listed Indian manufacturing firms.It also analyses the role of tangibility in alleviating financial constraints.Further,the role of other financial factors in investment decisions is explored.Methods:The study is conducted using the generalized method of moments(GMM)estimator on dynamic panel data for the period of(2009–2015)on 768 listed manufacturing firms.Results:The analysis finds that cash flow sensitivity is a valid measure of financial constraints in the Indian manufacturing sector.Results according to splitting criteria found that investment decisions of standalone firms are more sensitive to cash flow than group affiliated firms.Further,splitting the firms according to market capitalization and tangible net worth reveals a higher degree of cash flow sensitivity by firms with lower market capitalization and asset tangibility.The results for the effects of tangibility of assets on easing financial constraint were found significant only in the case of firms with low tangible net worth and medium market capitalization.Conclusions:The study confirms cash flow sensitivity to investment as a valid measure of financial constraints.It will confirm pooling of internal funds by financially constrained firms to accept profitable investment opportunities in future.Further,it also reports that asset tangibility eases the financial constraints faced by firms.

The effect of option trading

This paper studies the effect of option trading on corporate investment and financing policies.Based on prior literature,I hypothesize that option market induces informed trading and thus reduces information asymmetry and the cost of capital.As a result,firms with high option trading have more investment and financing.Specifically,based on the United States public data,this paper finds that option trading volume increases corporate investment and financing,but reduces cash holdings and corporate payouts.These results are robust to the inclusion of industry or firm fixed effect,a control for endogenous options trading,and the use of alternative measures of option trading and corporate policies.The effect of option trading is stronger for firms with higher information asymmetry problems.Finally,this paper finds the results are inconsistent with the“quiet Life”hypothesis and the catering hypothesis.

Fatigue behaviour of welded joints assembled by longitudinal corrugated plates

Fatigue is usually the cause for the cracks identified at bridge elements in service. With an increase in the introduction of corrugated steel web girders in recent highway bridge construction, the understanding of the fatigue behaviour of welded details in such structures becomes an important issue for the design. The typical welded details were represented as welded joints assembled by longitudinal corrugated plates. All the experiments were performed under fatigue loading using a servo-control testing machine. The test results from the failure mode observation with the aid of infrared thermo-graph technology show that the failure manner of these welded joints is comparable to that of the corrugated steel web beams reported previously. It is indicated from the stiffness degradation analysis that the welded joints with larger corrugation angle have higher stiffness and greater stiffness degradation in the notable stiffness degradation range. It is shown from the test S-N relations based on the free regression and forced regression analyses that there is a good linear dependence between lg(N) and lg(ΔS). It is also demonstrated that the proposed fracture mechanics analytical model is able to give a prediction slightly lower but on the safe side for the mean stresses at 2 million cycles of the test welded joints.

Impact of petroleum and non-petroleum indices on financial development in Oman

This study analyzes the impact of petroleum and non-petroleum indices on the financial development of the Sultanate of Oman from 1978 to 2017.To this end,it uses the petroleum proxy of oil rents(%of gross domestic product,GDP)and the non-petroleum proxy of industry(including construction)value added(%of GDP);agriculture,forestry,and fishing value added(%of GDP);and services value added(%of GDP)to determine the effect on financial development,measured by the amount of domestic credit extended to the private sector by banks(%of GDP).It applies an autoregressive distributed lag(ARDL)model.The long-term equation illustrates that the agriculture and industry GDPs have a negative and significant relationship with domestic credit in Oman.However,the oil and service sector GDPs promote financial development.The short-term equation illustrates that the oil,agricultural,and service sectors have positive and significant effects on domestic credit.The conclusion is that the economy of Oman is still in the first phase of economic diversification.Accordingly,the government should use oil revenues to develop various non-oil industrial sectors.This would enhance the country’s competitiveness in the global economy and positively contribute to improving the liquidity of the banking sector for stimulating credit at the macroeconomic level.

Uses of Invasive Alien Plant Species in Rema-Kalenga Wildlife Sanctuary of Bangladesh

An exploratory survey was conducted on the uses and role of invasive alien species(IAS) to local livelihoods in the Rema-Kalenga Wildlife Sanctuary in the northeastern hilly region of Bangladesh.Vegetation was sampled in 50 quadrates,each 10 m×10 m,and 25 line transects,each 50 m×20 m,through a combination of random and systematic sampling.Group discussions were also arranged with fifty local inhabitants(17 % of the total inhabitants) to learn the various uses of IAS.A total of 17 alien plant species belonging to 10 different families,of which Leguminosae constitutes the highest number(5 species),include tree(53%) followed by herb(12%),shrub(12%) and others(weed,climber and palm).The majority of the identified species were found to be used for fuel,followed by timber production,medicinal or curative uses,fodder,and many others.In addition to providing various forest products,alien tree species planted in forest plantation help provide many vital ecosystem services such as soil amelioration through nitrogen fixation.It is true that the alien species have some negative impacts on local ecosystems,and not all of them are harmful.Therefore,a national programme must be initiated to distinguish the harmful from the harmless species and to identify the uses and impacts of the former and latter.

Investigation of availability,demand,targets,and development of renewable energy in 2017-2050:a case study in Indonesia

Abundant potential of renewable energy(RE)in Indonesia is predicted to replace conventional energy which continues to experience depletion year by year.However,until now,the use of RE has only reached 2%of the existing potential of 441.7 GW.The main overview of this work is to investigate the availability of RE that can be utilized for electricity generation in Indonesia.National energy demand and targets in the long run during the 2017-2050 period are also discussed.Besides,government policies in supporting RE development are considered in this work.The results show that the potential of RE in Indonesia can be utilized and might replace conventional energy for decades.The use of RE for electricity generation can be achieved by employing a government policy that supports the investor as the executor of RE development.The selling price of electricity generated from RE is cheaper than electricity generated from fossils;this makes economy is more affordable for people.Finally,the target set by the government for utilizing RE as the main energy in Indonesia can be done by implementing several policies for the RE development.Thus,greenhouse gas emissions and the use of petroleum fuels can be reduced.

The witching week of herding on bitcoin exchanges

This paper analyses the herding behaviour among exchanges around the expiration of bitcoin futures traded on the Chicago Mercantile Exchange(CME).The database extends from December 2017 to October 2020,taking as a reference the main exchanges that trade bitcoin(Binance,Bitfinex,Bitstamp,Coinbase,itBit,Kraken,and Gemini)and using hourly closing prices and trading volumes in bitcoin and US dollars.Adapting the proposal of Chang,Cheng and Khorana(2000)(CCK)to test conditional herding,we obtain results that indicate that the herding effect is significant during the week before expiration.After expiration,the herding effect lasts for a few hours and disappears.Information overload originating,among other causes,from sophisticated investors’strategies may generate this mimetic behaviour.The results show the relevance of intraday data applied to specific events such as expiration since the unconditional analysis shows,in general,anti-herding behaviour throughout the period of study.

Systematic Analysis of Safety and Security Risks in Smart Homes

The revolution in Internet of Things(IoT)-based devices and applications has provided smart applications for humans.These applications range from healthcare to traffic-flow management,to communication devices,to smart security devices,and many others.In particular,government and private organizations are showing significant interest in IoT-enabled applications for smart homes.Despite the perceived benefits and interest,human safety is also a key concern.This research is aimed at systematically analyzing the available literature on smart homes and identifying areas of concern or risk with a view to supporting the design of safe and secure smart homes.For this systematic review process,relevant work in the most highly regarded journals published in the period 2016–2020(a section of 2020 is included)was analyzed.A final set of 99 relevant articles(journal articles,book sections,conference papers,and survey papers)was analyzed in this study.This analysis is focused on three research questions and relevant keywords.The systematic analysis results and key insights will help researchers and practitioners to make more informed decisions when dealing with the safety and security risks of smart homes,especially in emergency situations.

Exploration and Consideration of the Development of Sino-foreign Cooperation of Higher Education——A Comparative Analysis Perspective Based on the Data of Municipal Universities of Wuhan, Hubei Province and China

With the tide of economic globalization and the practice of“One Belt and One Road”Initiative,Sino-foreign cooperation has gradually become one of the effective ways to improve the quality of higher education.This paper based on the statistics and analysis of the data released by the Ministry of Education’s foreign-related supervision information platform,combining with the actual investigation and research on the situation of Sino-foreign cooperation of higher education in municipal universities of Wuhan,has found that the Sino-foreign cooperation programs commonly have problems of non-standardized enrollment of students,insufficient quality of teachers and teaching qualities,and lack of core competitiveness.Therefore,it is essential to upgrade the level of foreign cooperative institutions and the standards of students’recruitment,optimize the curriculum,pay attention to the public welfare of education,improve the teaching model,improve the level of teachers,so as to truly realize the original intention of Sino-foreign cooperation in municipal universities of Wuhan.