Welcome to Guest !
 
       IUP Publications
              (Since 1994)
Home About IUP Journals Books Archives Publication Ethics
     
  Subscriber Services   |   Feedback   |   Subscription Form
 
 
Login:
- - - - - - - - - - - - - - - - - -- - - - - - - - - - - -
-
   
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 
The IUP Journal of Accounting Research and Audit Practices

July'11
Focus

Environmental issues have adversely affected most of the business transactions and promoted companies to recognize ecological and social sustainability practices as part of their broader goals.

Articles
   
Price
(INR)
Buy
Is the Balanced Scorecard Appropriate to Measure Intangible Resources?
Segment Reporting Practices in Indian IT Companies
Audit Committees and Corporate Governance:
A Study of Select Companies Listed in the Indian Bourses
Ratio Analysis Approach on Quality of Employees
Accounting Earning, Book Value and Cash Flow in Equity Valuation:
An Empirical Study on CNX NIFTY Companies
Select/Remove All    

Is the Balanced Scorecard Appropriate to Measure Intangible Resources?

-- Stefania Veltri

The main aim of this paper is to demonstrate that, by using the Balanced Scorecard (BSC) model in measuring intangibles, companies are using an ‘old’ model to measure ‘new’ factors.1 This demonstration is given from a theoretical point of view, by comparing the BSC and the Intellectual Capital (IC) measurement models in relation to four variables: the notion of firm, the notion of strategy, the relation between strategy and indicators, and the value creation process that underpins the BSC and IC models. The comparison is carried out by analyzing the BSC and IC literature. From the theoretical analysis of the two models, it emerges that only the IC advanced measurement models address the new assumptions regarding firms, strategy and value creation process. The main managerial implications of the paper are that efficient management of organizational resource assets requires an understanding of the role and the interdependencies of such assets in value creation dynamics, and this happens only using a model (i.e., an IC advanced measurement model) which highlights the direct as well as the indirect dependences between tangible resources and intangible resources and activities.

Segment Reporting Practices in Indian IT Companies

-- Raju L Hyderabad and P B Kalyanshetti

A firm reporting by segments leaves more information in the hands of stakeholders and helps to improve the quality of decisions undertaken by them. AS-17 in India mandates listed and other companies to report information by segments. The present paper analyzes such segmental reporting practices of IT companies in view of their changing customer profile and geographical existence. The study finds the Indian IT companies to identify a few segments and business segment is the primary segment. Multiple-listed companies identify more segments than single stock exchange listed companies and revenue is the basic criteria used for identifying reportable segments. The sample firms score poorly in disclosing both mandatory and voluntary information. Profitability, listing status, external shareholding and proportion of independent directors positively affect the reporting practices of IT companies in India, while size of the firms affects negatively.

Ratio Analysis Approach on Quality of Employees

-- Samuel P D Anantadjaya

In the field of finance and accounting, ratio analyses have become the preliminary concentration prior to progressing to any advanced discussion. The same is true for numerous studies on quality of employees. It may be relatively safe to say that the true connections between the two, if any, may have received minimal attention. Based on the perspective of the knowledge-based theory of the firm, this paper attempts to study the connection between the quality of employees and ratio analysis. Employees are seen as an increasingly important factor in handling the future market uncertainties and minimizing the organizations’ potential downturns. In preliminary literature, qualitative studies have been undertaken concerning the theory of the firm, including its development, as well as its implications to supply chain management, consumer behavior and customer satisfaction. For the purpose of the study, the quality of employees is measured only on basis of employees’ skills and abilities, and the ratio analyses are also limited to growth ratios (sales growth, net profit growth, and cost reduction). It is expected that the higher the quality of employees, the higher the growth ratios of any given firm. A cluster sampling method is used in this study to note the characteristics of small enterprises in certain locations. Aside from the qualitative analyses, which are based on interviews and field observations, a combination of statistical software packages are used as tools toward performing quantitative analysis. Research is conducted by gathering data from primary and secondary sources in service industries in Jakarta and Bandung. As stated, it is expected that such studies would reveal the significance of connections between quality of employees and ratio analysis. It is expected that such issues are mostly true for small/micro businesses.

Accounting Earning, Book Value and Cash Flow in Equity Valuation:
An Empirical Study on CNX NIFTY Companies

-- Santanu K Ganguli

Way back in 1934, Graham and Dodd observed the importance of earning power in investment theory. According to them, history of actual earning with a reasonable expectation should be approximated in future. The empirical study of Ball and Brown (1968) contends that of all the sources of information as regards the working of a firm during a year, income number reported in the annual income statement captures one-half or more. In the backdrop of relevance of accounting numbers for equity valuation, Feltham and Ohlson (1995) and Ohlson (1995) provide an objective valuation model based on abnormal earning. According to the models, the fundamental of valuation depends on abnormal earning—an autoregressive process of the first order [AR(1)] that is related to the abnormal earning of the previous period. Along with abnormal earning there may be other variables like book value of the equity, operating cash flow, accruals and other information (all of them being autoregressive, AR(1), processes) can be used severally and jointly for predicting equity value. In the present paper, an attempt has been made to test the forecasting ability of equity share value of CNX NIFTY companies of the National Stock Exchange of India empirically for a period of 10 years (1999-2008) by pooling cross-sectional data on abnormal earning, book value and operating cash flow in line with the forecasting and valuation equation models of Feltham and Ohlson (1995) and Ohlson (1995). The findings suggest that abnormal earning, book value and operating cash flow component of earning respectively follow an autoregressive process. Information on abnormal earning and book value aids in predicting equity value. The findings are consistent with Ohlson’s model.

Audit Committees and Corporate Governance:
A Study of Select Companies Listed in the Indian Bourses

-- M D Saibaba and Valeed Ahmad Ansari

Audit committees act as an important link in corporate governance mechanisms. As such, SOX Act, 2002, Blue Ribbon Committee’s report and Narayana Murthy Committee’s report have placed greater emphasis on their role in order to strengthen the functioning of these committees. The rationale behind this is that greater independence of audit committees is necessary for effective functioning and for alleviating weaknesses in corporate governance which, in turn, reduces the agency costs. Research evidence reaffirms this aspect. The objective of this paper is to examine the relationship between the independence of the audit committee, board independence and firm performance of listed firms segmented1 between BSE 100 and BSE 200 indices, for the years 2007 and 2008. The results are in consonance with other research studies indicating that performance of firms which have independent audit committees and greater board independence is higher resulting in premium valuations as measured by Tobin’s Q, a proxy for firm performance.

 

Search
 

  www
  IUP

Search
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Click here to upload your Article

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

more...

 
Issues
Accounting Research and Audit Practices