Template-Type: ReDIF-Article 1.0 Author-Name: Vichet Sum Title: EMPLOYEE BENEFITS AND STOCK RETURNS: A LOOK AT HEALTH CARE BENEFITS Abstract: This study finds firms that pay their employees’ health-care premiums earn average positive risk premiums and positive risk-adjusted excess returns. The problem of the study is to analyze risk premiums and risk adjusted returns of an equal-weighted portfolio of firms that pay 100% of their employee’s health-care premiums. The results show that the portfolio average risk premiums are positive and greater than the market risk premiums from 2007 to 2011 (except 2008). The portfolio average risk-adjusted excess returns are positive for the 3-year holding period intervals and statistically significant for the 5- year holding period. The implication of this study is that it is important for firms to invest in their people in the form of competitive compensation package, and this investment will pay off in the long run as evidenced from the capital market. Classification-JEL: G11, G12, G14 Keywords: Risk premiums, Risk adjusted excess returns, Health-care premiums Journal: Accounting & Taxation Pages: 1-8 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:1-8 Template-Type: ReDIF-Article 1.0 Author-Name: Laetitia Pozniak Author-Name: Melanie Croquet Author-Name: Olivier Colot Title: THE RELATIONSHIP BETWEEN FINANCIAL COMMUNICATION AND FIRM PERFORMANCE: EVIDENCE FROM FRANCE Abstract: This research identifies potential links between performance and the level of financial communication on the web. This study examines 216 firms quoted in 2010 on the Free Market of Paris. We use a content analysis of websites and scoring technique, to compute a score of financial communication for each firm. Based on mean scores, two groups are constructed. We measure performance for these two groups. The Probit model shows a negative relation between financial performance and the probability of having a higher score for virtual financial communication. Classification-JEL: M15, G10, C50 Keywords: Communication, Internet, Performance, Web Journal: Accounting & Taxation Pages: 9-17 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:9-17 Template-Type: ReDIF-Article 1.0 Author-Name: Ya-Fang Wang Title: INTERNAL CONTROL AND FINANCIAL QUALITY: EVIDENCE FROM POST-SOX RESTATEMENT Abstract: Studies of post-SOX restatements have examined the cause of the increase and have documented the association with internal controls in a negative light. In general, restatements result from internal control problems because internal controls are the first line of defense for financial statement quality. However, prior research ignores internal controls have different quality levels and may make various impacts on restating companies. Thus, this study examines the association between restatements and internal controls by examining whether and how internal control quality affects degree of restatement severity. Empirical results show that restatement severity increases in degree of internal control deficiency under among three definitions of internal control quality. Classification-JEL: M41, G32, G24, K20 Keywords: Internal control, Financial quality, Restatement Journal: Accounting & Taxation Pages: 19-28 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:19-28 Template-Type: ReDIF-Article 1.0 Author-Name: Roshaiza Taha Title: STOCK MARKET AND TAX REVENUE COLLECTION IN MALAYSIA: EVIDENCE FROM COINTEGRATION AND CAUSALITY TESTS Abstract: This study empirically examined the relationship between stock market performance and taxation in Malaysia over the period 1980 to 2008. The Gregory Hansen methodology was utilized to examine which tax collected by Malaysia’s Government most impacted stock market performance in Malaysia. The results show that stock market performance contributes most to the changes in company tax revenue as compared to personal taxes and real property gain taxes. In addition, the analysis detects a significance break, which impacts the nature of the relationship between variables. This finding indicates that stock market performance in Malaysia was influenced by strong growth of company tax revenue collection. Thus, fiscal policy authorities in Malaysia should enhance efforts to promote stock market activities, which will subsequently increase the tax revenue collection. Classification-JEL: F3, G1, H2, O2 Keywords: Company tax, Personal tax, Stock market, Structural break Journal: Accounting & Taxation Pages: 29-39 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:29-39 Template-Type: ReDIF-Article 1.0 Author-Name: L.W. Makasi Author-Name: J. W. Kruger Title: SHARE REPURCHASES ANNOUNCEMENT EFFECT ON EARNINGS: EVIDENCE FROM SOUTH AFRICA Abstract: This study investigates the effect share repurchases announcements have on earnings of companies listed on the Johannesburg Stock Exchange over a period of 8 years from 2001 to 2008. The study investigates 27 companies listed in the middle capitalization and large capitalization stocks of the Johannesburg Stock Exchange. The study measured earnings by 1) earnings per share percentage change, 2) dividend per share percentage change and 3) cash flow per share percentage change. These variables were investigated over a period of 6 years, 3 years pre- and 3 years post-announcement of share repurchase. The data was analyzed and tested using the T-test and the Wilcoxon parametric paired test. Classification-JEL: G14 Keywords: Stock buy-back, share repurchases, repurchase announcement, earnings Journal: Accounting & Taxation Pages: 41-46 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:41-46 Template-Type: ReDIF-Article 1.0 Author-Name: Ifraz Khan Author-Name: Priyashni Vandana Chand Author-Name: Professor Arvind Patel Title: THE IMPACT OF OWNERSHIP STRUCTURE ON VOLUNTARY CORPORATE DISCLOSURE IN ANNUAL REPORTS: EVIDENCE FROM FIJI Abstract: The extent of voluntary corporate disclosure by companies in annual reports in recent years has increased due to various factors. A number of prior studies examined the relationship between ownership concentration and voluntary corporate disclosure. Their findings suggest there is less voluntary corporate disclosure in family owned and high shareholder concentrated firms. On the other hand, companies with low shareholder concentration are likely to have more voluntary corporate disclosure because of the principal to agent relationship. Though studies have examined the impact of ownership structure on the extent of voluntary disclosure, there is still a need to investigate the issue in the Pacific Island countries, such as Fiji. The ownership structure of the companies in Fiji is highly concentrated. This paper examines the relationship between ownership structure and the extent of voluntary corporate disclosure in annual reports of listed companies in Fiji. A content analysis approach suggests how the ownership structure affects the extent of voluntary corporate disclosure in Fiji. Classification-JEL: M14, M41 Keywords: Ownership Structure, Voluntary Corporate Disclosure Journal: Accounting & Taxation Pages: 47-58 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:47-58 Template-Type: ReDIF-Article 1.0 Author-Name: Zunaidah Sulong Author-Name: John C. Gardner Author-Name: Amariah Hanum Hussin Author-Name: Zuraidah Mohd Sanusi Author-Name: Carl B. McGowan, Jr. Title: MANAGERIAL OWNERSHIP, LEVERAGE AND AUDIT QUALITY IMPACT ON FIRM PERFORMANCE: EVIDENCE FROM THE MALAYSIAN ACE MARKET Abstract: This paper extends the agency cost literature by examining whether managerial ownership, leverage and audit quality are associated with higher performance of companies traded on the Malaysian ACE (Access, Certainty, Efficiency) Market. The sample consists of 82 companies listed on the Malaysian ACE Market for the period from 2007 to 2009. Analyses of descriptive statistics, correlation analysis, and multiple regressions are used to address the research hypotheses. The descriptive statistics analysis reveals that ACE Market companies do not perform better for the three year test period. This result may explain why the number of listed stocks on the ACE Market decreased from 2006 to 2009. Contrary to the proposed hypotheses, this study finds that audit quality has a statistically significant negative effect on firm performance. The empirical results suggest that higher audit fees received by auditors may create bonding between client and auditors. Classification-JEL: G15, G32, M41 Keywords: Managerial ownership; Leverage; Audit quality; Governance mechanisms; ACE market Journal: Accounting & Taxation Pages: 59-70 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:59-70 Template-Type: ReDIF-Article 1.0 Author-Name: Monique O. Durant Author-Name: Mary McCarthy Title: GENERATIONAL DIFFERENCES IN ATTITUDES TOWARD DEFICIT REDUCTION POLICY Abstract: In an effort to understand the generation gap as it is manifested in attitudes toward current tax policy, this study compares survey responses from experienced tax professionals and inexperienced undergraduate tax students applied to the most effective tax and budgetary changes to reduce the federal deficit. The authors created the survey from tax students’ suggestions after a semester (Spring 2011) of reading tax-related articles in an international business journal. At the end of that semester, the authors requested suggestions from students for changes to the federal tax code (revenue) and budget (spending) and incorporated them into a survey to which students during that semester and the next two semesters responded. In July 2012, the authors asked a group of experienced tax professionals to respond to the survey. The authors found significant variation in a few predictable areas. Results include findings that the Millennial generation is less conservative on social issues, and favors Social Security reform and reduced defense spending. Classification-JEL: H60; H62 Keywords: Federal Tax Policy, Age Gap, Generation Gap, Millennials, Tax Code, Federal Budget Journal: Accounting & Taxation Pages: 71-84 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:71-84 Template-Type: ReDIF-Article 1.0 Author-Name: Bea Chiang Title: INDIRECT LABOR COSTS AND IMPLICATIONS FOR OVERHEAD ALLOCATION Abstract: Cost accounting typically allocates indirect labor cost to cost object based on direct labor hours. The allocation process implicitly assumes that indirect labor costs vary proportionally with direct labor hours. The assumption of a linear relationship between indirect and direct labor is particularly suspicious at low production volume levels because there tends to be a fixed component in indirect labor. The linearity assumption is also challenged by recent increasing complexity of indirect labor tasks. As automation technology replaces some work of the of traditional labor, the cost of non-production workers becomes an important element of manufacturing overhead and it may not be related to labor hours in a simple linear manner. A model is derived to show the relationship between indirect labor overhead and direct labor hours under different conditions. The implication for the allocation of indirect labor overhead is also discussed. Classification-JEL: J3, M2 Keywords: Indirect Labor Cost, Labor Cost, Overhead Allocation, Cost Accounting, Indirect Labor Cost Allocation Journal: Accounting & Taxation Pages: 85-96 Volume: 5 Issue: 1 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v5n1-2013/AT-V5N1-2013-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:5:y:2013:i:1:p:85-96