The use of abnormal and extraordinary items by new management

Pimenta, Merissa Pereira. (1999). The use of abnormal and extraordinary items by new management Honours Thesis, Dept. of Commerce, The University of Queensland.

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Author Pimenta, Merissa Pereira.
Thesis Title The use of abnormal and extraordinary items by new management
School, Centre or Institute Dept. of Commerce
Institution The University of Queensland
Publication date 1999
Thesis type Honours Thesis
Total pages 53
Language eng
Subjects 14 Economics
Formatted abstract
This thesis investigates the proposed association between changes in top management and big bath accounting. Based on opportunistic arguments, it is hypothesised that a nonroutine change in management will result in the implementation of an earnings bath due to management's desire to wipe the slate clean and make room for future improvements. This study is limited to nonroutine changes in management thereby eliminating the mitigating forces of the 'relay process.

An analysis of 56 public companies listed on the Australian Stock Exchange revealed that, after controlling for firm performance, a significant relationship does exist between top management changes and big bath accounting. The proxy used in this study was abnormal and extraordinary items due to their nature and positioning in the financial statements. The research findings of this thesis have implications for regulatory bodies and users of financial statements due to the lack of intercompany and interperiod comparability that results from such actions.

Additional Notes page52 missing

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
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Created: Wed, 27 Oct 2010, 13:22:29 EST by Ning Jing on behalf of Social Sciences and Humanities Library Service