In this paper, we analyze the social value of accounting objectivity in maintaining bank stability. Building on an early, in‡uential accounting work by Ijiri and Jaedicke (1966), we operationalize two informational properties, objectivity and accuracy, in a correlated information structure and embedded them into a model of bank runs. We show that, when compared with the accuracy property, the o...

A new application of nominal data analysis to computational accounting system is introduced. ''Chart of Account " (COA), the structure of the Enterprise Requirement Planning (ERP) Accounting System is used as a nominal dataset enabling nominal feature selection technique be used to determine the close-optimal number of accounting segments. Five datasets are simulated with entropy measurement us...

The integration of activity-based costing (ABC) and environmental cost accounting (ECA) systems provides companies with more accurate information to make both well-rounded and effective decisions. The purpose of this study is to propose an effective approach to integrate both ABC and ECA systems. A case study analysing process is used to compare the traditional accounting system and the ABC sys...

The literature presents a clear divide between the so called market and accounting based approaches to bankruptcy prediction. With this in mind, this paper employs the discrete time hazard model framework of Shumway (2001) to test the information content of both market and accounting based models using Australian data. We …nd that market based models signi…cantly outperformed accounting based m...

User participation and organizational commitment are important things that can improve the performance of accounting information systems. This study aims to determine effect user on uses a quantitative approach with descriptive verification analysis methods. The research was conducted by distributing questionnaires employees systems division at Medco Energi Company 45 respondents. results this ...

Introduction We examine the relationship between the Cobb-Douglas production function that is frequently used in information technology (IT) productivity studies and the income accounting identity. In doing so we evaluate the impact of this relationship on the question about aggregation from firm-level data to industry-level data when estimating IT productivity, that is, whether industry-level ...

This paper studies how information disclosure a ects investment e ciency and investor welfare in a dynamic setting in which a rm makes sequential investments to adjust its capital stock over time. We show that the e ects of accounting disclosures on investment e ciency and investor welfare crucially depend on whether such disclosures convey information about the rm's future capital stock or abo...

This study addresses conservatism in financial reporting. Firms seek financing for an investment. Investors have access to an imperfect accounting signal that may also have a conservative tendency. If the firms have no private information, conservatism is desirable only for negative ex ante expected value investments, consistent with the spirit of the results of Gigler et al (2009) and other st...