The Market Value of Scrum

2021 ◽  
pp. 228-235
Author(s):  
Sathiadev Mahesh ◽  
Kenneth R. Walsh ◽  
Cherie C. Trumbach
Keyword(s):  
Business Strategy ◽  
Exploratory Study ◽  
Market Value ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Senior Management ◽  
Financial Reports ◽  
Business Software ◽  
The Us ◽  
Innovation Processes

Scrum technologies have been applied in business software for two decades and are an important part of organizations' innovation processes. This exploratory study examines whether the use of Scrum within an organization can be detected from its financial statements by reviewing references to scrum in corporate financial reports filed with the US Securities and Exchange Commission (SEC). While scrum use is widespread in software development, there are very few references to scrum in corporate financial reports. Fewer than one-half percent of businesses filing reports with the Securities and Exchange Commission include scrum capabilities in their business strategy or business competency sections. It appears that senior management has not yet recognized the value of the technology and evaluated its impact on investor evaluation of business prospects. Investors need to seek other media to evaluate scrum implementation at the business.

scholarly journals Accounting conservatism and uncertainty in business environments; using financial data of listed companies in the Tehran stock exchange

2020 ◽  
Vol 5 (2) ◽  
pp. 179-194
Author(s):  
Marziyeh Hejranijamil ◽  
Afsane Hejranijamil ◽  
Javad Shekarkhah
Keyword(s):  
Financial Reporting ◽  
Business Strategy ◽  
Stock Exchange ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Financial Data ◽  
Financial Reports ◽  
Content Type ◽  
Business Environments ◽  
Natural Mechanism

PurposeApplying conservatism to the preparation of financial statements has been considered not only as a natural mechanism to protect the interests of the stockholders but also as a practical way to assist managers to deal with uncertainty in business environments. This study aimed to determine if increasing uncertainty can lead to raising the level of conservatism used in preparing financial statements. The result of the study could provide a better understanding of the factors that influence the level of applying conservative methods in accounting and financial reporting.Design/methodology/approachThe model introduced by Basu (1997) was used to measure accounting conservatism. Business strategy and alertness were considered as two proxies for classifying companies according to their level of uncertainty. By adding each proxy of uncertainty to the model and using the financial data of 183 companies for five years (from 2013 to 2018), the multiple regression models were estimated through EViews. It was assumed that inert companies and those with prospector strategy face a higher level of uncertainty. Consequently, they were expected to report their financial status conservatively.FindingsFindings revealed that companies, which adopted a prospector strategy, applied more conservative methods in their financial reports. This indicated that facing wider uncertainty results in reporting more conservatively, which could not be said about inert companies.Originality/valueThe current research is the first research undertaken in a developing country such as Iran, and the study's results may benefit other developing countries.

The Value Relevance of Financial Statement Recognition vs. Disclosure: Evidence from SFAS No. 106

1999 ◽  
Vol 74 (4) ◽  
pp. 403-423 ◽  
Author(s):  
Paquita Y. Davis-Friday ◽  
L. Buky Folami ◽  
Chao-Shin Liu ◽  
H. Fred Mittelstaedt
Keyword(s):  
Value Relevance ◽  
Market Value ◽  
Financial Statements ◽  
The Body ◽  
Financial Statement ◽  
Financial Reports ◽  
Association Tests ◽  
Market Values ◽  
Value Association

This study examines whether the market values financial statement data differently if it is disclosed instead of recognized in the body of the financial statements. We identify a sample of 229 SFAS No. 106 adopters who disclose an estimate of their anticipated liability for retiree benefits other than pensions (PRB) in their financial reports prior to the year of recognition. We then test whether the disclosed estimate of the PRB liability is valued differently by the market than is the subsequently recognized PRB liability. We provide modest and model-sensitive evidence that the recognized PRB liability receives more weight than the disclosed liability in market value association tests.

SEC approves amendments to the NYSE’s substantial stockholder issuance rule and 20 per cent rule for shareholder approval of certain private offerings

2019 ◽  
Vol 20 (2) ◽  
pp. 16-19
Author(s):  
Justin Hoffman ◽  
Jude Dworaczyk
Keyword(s):  
New York ◽  
Listed Company ◽  
Market Value ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
Book Value ◽  
The Us ◽  
Before And After ◽  
Private Placements ◽  
Definition Of

Purpose To explain recent amendments by the US Securities and Exchange Commission (the SEC) to Sections 312.03(b) relating to issuances of securities to substantial stockholders (the Substantial Stockholder Issuance Rule) and 312.03(c) (the 20 Per cent Rule) of the New York Stock Exchange’s (the NYSE) Listed Company Manual to change the definition of “market value” for purposes of the 20 Per cent Rule and eliminate the requirement for shareholder approval of certain private issuances at a price less than book value but greater than market value. Design/methodology/approach This article provides background on the purpose and policy behind the Substantial Stockholder Issuance Rule and the 20 Per cent Rule and summarizes the provisions of each rule, both before and after the recent SEC amendments thereto. This article then highlights the most important changes to the Substantial Stockholder Issuance Rule and the 20 Per cent Rule and explains the implications thereof for NYSE-listed issuers. Findings The amended Substantial Stockholder Issuance Rule and the 20 Per cent Rule provide NYSE-listed issuers greater flexibility in structuring transactions involving private placements of equity and will likely reduce the number of such transactions requiring a shareholder vote. Originality/value Practical guidance from experienced corporate finance and capital markets lawyers.

scholarly journals Pengoptimalan Sektor Perekonomian pada UMKM dengan Disusunnya Suatu Laporan Keuangan Sederhana di Dusun Kwarigan, Desa Bakulan, Kecamatan Cepogo, Kabupaten Boyolali

2021 ◽  
Vol 2 (2) ◽  
pp. 55-62
Author(s):  
Anasia Fathiyati Mutoharoh ◽  
Sigit Muryanto
Keyword(s):  
Business Strategy ◽  
Production Cost ◽  
Balance Sheet ◽  
Financial Statements ◽  
Marketing Strategies ◽  
Major Influence ◽  
Financial Reports ◽  
Maximum Profit ◽  
Main Production ◽  
The Right

Financial statements have a major influence in assessing, developing marketing strategies and evaluating a business. Kwarigan Hamlet is one of the villages that has several MSME actors, but none of the MSMEs has implemented financial reports properly so that there is no clear evaluation and it is difficult to develop into a larger MSME and it is difficult to determine the business strategy to be run. This article aims to improve the optimization of the economic sector by compiling financial reports for MSMEs in Kwarigan Hamlet and applying them to their business fields and determining the right strategy for the advancement of MSMEs in Kwariganq Hamlet. The results obtained are from the balance sheet financial statements it can be known the amount of assets and laundry business capital for sure. From the Profit and Loss report, it can be used as a benchmark that there is a main production cost, namely clean water which can be kept to a minimum in order to achieve maximum profit because it uses water sourced from wells. From the emphasis on water costs, it can be used for transportation costs for picking up dirty laundry and delivering clean clothes to customers as a marketing solution in order to increase sales turnover. With this strategy, customers will be interested and feel that they are given maximum service from the Laundry business but will still be able to increase profits.

US SEC approves amendments to Nasdaq’s 20 per cent rule for shareholder approval of certain private offerings

2019 ◽  
Vol 20 (1) ◽  
pp. 1-4 ◽  
Author(s):  
Justin F. Hoffman ◽  
Jude A. Dworaczyk
Keyword(s):  
Design Methodology ◽  
Market Value ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
Book Value ◽  
The Us ◽  
Before And After ◽  
Private Placements ◽  
Practical Guidance ◽  
Definition Of

Purpose To explain a recent amendment by the US Securities and Exchange Commission (the SEC) to Nasdaq Rule 5635(d) (the 20 per cent Rule) to change the definition of “market value” for purposes of the 20 per cent Rule and eliminate the requirement for shareholder approval of certain private issuances at a price less than book value but greater than market value. Design/methodology/approach This article provides background on the purpose and policy behind the 20 per cent Rule and summarizes the provisions of the 20 per cent rule, both before and after the recent SEC amendment thereto. This article then highlights the most important changes to the 20 per cent Rule and explains the implications thereof for Nasdaq-listed issuers. Findings The amended 20 per cent Rule provides Nasdaq-listed issuers greater flexibility in structuring transactions involving private placements of equity and will likely reduce the number of such transactions requiring a shareholder vote. Originality/value Practical guidance from experienced corporate finance and capital markets lawyers.

A Perspective on the SEC’s Proposal to Accept Financial Statements Prepared in Accordance with International Financial Reporting Standards (IFRS) without Reconciliation to U.S. GAAP

2008 ◽  
Vol 22 (2) ◽  
pp. 241-248 ◽  
Author(s):  
Karim Jamal ◽  
George J. Benston ◽  
Douglas R. Carmichael ◽  
Theodore E. Christensen ◽  
Robert H. Colson ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Regulatory Changes ◽  
Better Than

SYNOPSIS: The Securities and Exchange Commission (SEC) recently issued a call for comment on a proposal to accept financial statements prepared in accordance with International Financial Reporting Standards (IFRS) without reconciliation to U.S. GAAP. Accounting researchers have attempted to assess the quality of IFRS using different methods and criteria. While we are skeptical of drawing direct conclusions about the SEC’s proposal based on this research, there is adequate evidence that both IFRS and U.S. GAAP provide useful information to investors and other users of financial statements. Moreover, we see no conclusive research evidence that financial reports prepared using U.S. GAAP are better than reports prepared using IFRS. The prudent approach when faced with alternatives with no clear difference in quality is to promote competition among them, which supports adopting the SEC’s proposal to permit foreign private issuers a choice between IFRS and U.S. GAAP. Furthermore, to help improve U.S. and international GAAP through standards-setting competition, we recommend that the Commission extend the choice of IFRS to U.S. companies, and require all companies to indicate clearly whether they are filing under U.S. GAAP or IFRS. Finally, we recommend that the Commission and its staff investigate and seek feedback on the educational consequences of its proposed actions. This attention will help educators to better prepare future professionals to implement these proposed regulatory changes.

Section 404 Compliance and Financial Reporting Quality

2010 ◽  
Vol 24 (3) ◽  
pp. 441-454 ◽  
Author(s):  
Albert L. Nagy
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Reporting Quality ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Small Companies ◽  
Section 404 ◽  
Financial Reports ◽  
Sarbanes Oxley

SYNOPSIS: This study examines whether the Sarbanes-Oxley Act Section 404 (S404) compliance efforts lead to higher quality financial reports. An objective of S404 is to encourage companies to devote adequate resources and attention to their internal control systems, which should lead to more reliable financial statements. A natural laboratory of S404 compliance and noncompliance companies exists because the Securities and Exchange Commission has deferred the S404 compliance date for small companies (nonaccelerated filers). A logistic regression model is estimated using a sample of companies surrounding the S404 compliance threshold to measure the S404 compliance effect on the likelihood of issuing materially misstated financial statements. The results show a significant and negative relation between S404 compliance and issuance of materially misstated financial statements, and suggest that the S404 regulation is meeting its objective of improving the quality of financial reports.

scholarly journals Kinerja Keuangan Bank Umum Syariah Di Indonesia Dengan Pendekatan Metode Market Value Added (MVA)

2018 ◽  
Vol 4 (03) ◽  
pp. 206
Author(s):  
Yudi Siyamto ◽  
Sumadi Sumadi
Keyword(s):  
Financial Performance ◽  
Economic Value ◽  
Good Condition ◽  
Value Added ◽  
Market Value ◽  
Financial Statements ◽  
Added Value ◽  
Financial Reports ◽  
Average Value ◽  
Market Value Added

This study aims to determine the financial performance of the 2014-2016 Market Value Added (MVA) method in Islamic commercial banks in Indonesia. The sample determination technique used in this study is to use the type of purposive sampling, namely the criteria of having financial reports published and audited in the period 2014 to 2016 and complete financial statements from the period 2014 to 2016 with calculations using the MVA method (Market Value Added. The results show that the financial performance of BUS in this period has a positive average value using EVA and MVA. This situation shows that the positive EVA and MVA values are in good condition and have more economic added value after the company pays all obligations to the funders or creditors according to their expectations, so that the company's profits provide economic value for the company.

Reporting Technologies and Textual Readability: Evidence from the XBRL Mandate

2021 ◽  
Author(s):  
Xitong Li ◽  
Hongwei Zhu ◽  
Luo Zuo
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Annual Reports ◽  
Financial Reports ◽  
Public Firms ◽  
Business Reporting ◽  
Perceived Benefit ◽  
Research Opportunity ◽  
Negative Effect

The eXtensible Business Reporting Language (XBRL) can standardize numerical disclosures and make it easier for computers to process and compare financial reports. This perceived benefit of XBRL has prompted the U.S. Securities and Exchange Commission to mandate that public firms must submit financial statements in the XBRL format as part of their financial reports. Leveraging the research opportunity created by the XBRL mandate, we examine whether financial reporting technologies affect how firms construct textual disclosures. We find that the initial adopters’ HTML-formatted annual reports become harder to read after the XBRL mandate. Further analysis reveals that this effect is concentrated among adopters with more quantitative disclosures, a smaller firm size, or a higher level of financial complexity. Importantly, we show that managers’ reduced attention to preparing HTML-formatted annual reports, rather than increased disclosures, is likely the explanation for this decrease in textual readability. We also find that the negative effect on textual readability persists at least in the subsequent year. Our findings suggest that the XBRL adopters need to pay attention to process optimization and technology enablement to mitigate the possible negative effect of XBRL adoption on the readability of financial reports.

Pengaruh Jumlah Dewan Komisaris, Leverage, Profitabilitas, Intensitas Modal, Cash Flow, Dan Ukuran Perusahaan Terhadap Konservatisme (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2012-2017)

2019 ◽  
Vol 8 (1) ◽  
pp. 17-24
Author(s):  
Siti Suharni ◽  
Arini Wildaniyati ◽  
Dea Andreana
Keyword(s):  
Cash Flow ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Intensity ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Company Size ◽  
Manufacturing Companies ◽  
Financial Reports

This study is aimed at examining the effects of the Number of Board of Commissioners, Leverage, Profitability, Capital Intensity, Cash Flow, and Company Size toward Conservatism in the manufacturing companies listed on the Indonesian Stock Exchange (IDX). The population used in this study is the yearly financial statements on firm of manufacturing listed at BEI period 2012-2017, using purposive sampling method. The type of data used is secondary data obtained from yerly financial reports published and downloaded through the official BEI website. Data analyzed with Descriptive statistics, test of classic assumption and exmination of hypothesis with multiple linier regression method. The result of hypothesis research shows variable Profitability and Cash Flow have a significant effect on the ability of Conservatism, while the Number of Board of Commissioners, Leverage, Capital Intensity, and Company Size has no effect on the ability of Conservatism.

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