Accounting Theory Question

What is positive accounting theory? how does it differ from normative accounting theory? what was/were the major dissatisfaction(s) with normative accounting theory which led to the development of a positive theory accounting? 2. Explain the meaning of an efficient market. what is meant by the following terms: weak-form efficiency, semistrong-form efficiency, strong-form efficiency? which form is the most important to accounting research? why? Explain the important of examining the impact the profit on share prices for financial analysis. can this analysis be used to make abnormal returns from the share markets? 4. Does study of the information content of profits announcements explain why firms use particular accounting practice? does it help to predict which firms will use particular accounting practices? 5. Give reasons that non-linear model relating unexpected returns to share prices would provide a more precise estimate of the earnings response coefficient (ERC). . Why would share prices have a greater reaction to the profit announcement released by small firm compared with those released by large firms? do you think this research has any implications for measurement issues in accounting or for formulation of accounting standards? 7. outline the research that has been undertaken on the impact of permanent and temporary increases in profits. why is this research important? 8. how will risk and uncertainty affect the valuation of a firm and, through this valuation model, the ERC? . The impact of profits for valuation has diminished over the years. what is the impact? how was the research adjusted to reflect this fact? 10. Outline a research project which explain how share prices are determined. would this project include factors other than accounting data? Briefly explain the outline the research of mechanistic hypothesis. what are the implications of the research? 12. Why would financial analysis be fooled by accounting numbers and provide optimistic and biased estimates of profits? an you offer a positive economic reason for their actions? 13. outline the different procedures that can be used to determine whether accounts have quality accruals or whether they create more noise. 14. what are the two main explanations for the association between the choice of high-quality auditor and a lower cost of debt or equity capital? 15. why do we have to be carefull drawing conclusions about causality based on studies using archival data?

International Marketing Strategy Essay Example | Topics and Well Written Essays - 2000 words - 1

International Marketing Strategy - Essay Example The company whose headquarters are in Switzerland has embraced an international marketing program partly because its local market is too small to address its projections (Nestle.com, 2014). Nevertheless, the program has had associations with different matters. There was a boycott that was started in the 80s against the marketing of the infant formula that is manufactured by the company in the developing countries and has progressed from time to time (Multinationalmonitor.org, 1987). In the present times, the company has had to deal with issues associated with its growth through acquisitions. This paper will evaluate Nestles international marketing strategy with specific emphasis on the strategies it uses in Europe. The present set up of Nestle was established in the early 1900 when a company that has American owners and was based in Switzerland merged its operations with a company of Swiss origins (http://www.nestle.com.eg, 2014). Initially, the American company had been employing canning technology to process milk while the Swiss company had employed technology that had fruitfully marketed infant formula (Wilkins, 2004, p. 27). The company adopted the Swiss name and started a run of acquisitions as well as a global expansion program. The initial expansions, including in to the United States, took place as the First World War progressed (Encyclopedia.com, 1999). Even though the company was largely unaffected by the war particularly because of the neutrality of Switzerland, its main markets as well as sources of milk were heavily affected (Referenceforbusiness.com, 2014). This made the owners of the company to look for diversification so that they could make sure the company could survive this and other shakeups that may be faced in the market. After the war ended, the company continued its global expansion, creating new categories of products through acquisition as

MOD 5 FIN 301 CA Essay Example | Topics and Well Written Essays - 750 words

MOD 5 FIN 301 CA - Essay Example This paper aims to analyze the advantages and disadvantages for AMSC to forgo their debt financing and take on equity financing. AMSC can use its cash from equity financing to invest in the project or business without carrying the burden of debt on its back. In a period of financial turmoil, where businesses are faced with a credit crisis, equity financing helps in providing the necessary cash and reduces the risk of bankruptcy. By forgoing debt financing, AMSC is gaining a major advantage by using the cash to grow its business rather than paying a bank loan. Equity financing also brings new resources with itself such as valuable human capital which can provide necessary skills, contacts and experience to run the business. In addition to that, as the business grows over the period of time the investors are often willing to provide additional funding in case if it is needed so AMSC can have access to future sources of funding with the current owners. The owners of the equity can control the business without any interference from the creditors since the company will have no debt obligations. The biggest advanta ge lies in the fact that the business will be free from any interest costs thus it can boost its profits. Furthermore, during a recessionary period where there is a lack of credit in the economy, AMSC can have a chance to obtain funding through debt financing since it will have a lower Debt-to-Equity ratio. Financial institutions often extend credits to those corporations who have a lower Debt-to-Equity ratio in their balance sheets thus AMSC’s ability to borrow will be improved. Too much debt financing can tarnish the reputation of AMSC if they have already huge liabilities on their books. Finally, Corporations also collateralize their important assets due to debt financing and creditors impose certain stringent rules and regulations on the use of those collateralized assets which limits the ability of the organizations to use those assets