U.S. healthcare organizations face unprecedented financial pressures, making it more difficult than ever to maintain the vital re-investment capital required to sustain high levels of care and improve operating efficiency. More than 34% of hospitals reported operating losses for the first half of 2009 and more than 70% of healthcare organizations have slowed down or canceled capital projects as...

The Financial Accounting Standards Board (FASB) regulates financial accounting. FASB issues two kinds of accounting pronouncements. The first kind are Statements of Financial Accounting Concepts (SFACs). They are the theoretical foundation for the regulations which are promulgated in the Statements of Financial Accounting Standards (SFASs). FASB‟s theoretical statements are based on unstated ph...

This study analyzes the evolution of the Financial Accounting Standards Board (FASB)’s Statement of Financial Accounting Standards (SFAS) 141 and 142, through a detailed analysis of comment letters submitted to the FASB on Business Combinations Exposure Drafts 201 and 201 (Revised). Comment letters, an integral part of the standard-setting process, contain valuable insights on the views of part...

Beginning with 2005, all the entities listed on the European Union regulated markets must prepare consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). Romanian listed entities compulsorily apply the IFRSs starting with the consolidated financial statements prepared for the financial year 2007. The main objective of this study is to identif...

Because of delays to input payments, production linkages coincide with trade credit linkages. This paper investigates how these interconnected production and financial linkages of firms propagate shocks upstream and downstream in an input-output model. Theoretically, I obtain that financial frictions in trade and financial linkages of firms are necessary features for generating strong upstream ...

The interests of users of financial statements are, in theory, paramount to accounting standard-setters. However, there is a dearth of research into users’ participation in, and influence on, the process of setting accounting standards. The enhanced status now accorded to the International Accounting Standards Board (IASB) offers the opportunity to examine these issues in a new regulatory conte...

Recent computational advances allow investment managers to search for profitable investment strategies. In many instances, that search involves a pseudo-mathematical argument, which is spuriously validated through a simulation of its historical performance (also called backtest). We prove that high performance is easily achievable after backtesting a relatively small number of alternative strat...

The monetary unit assumption of financial accounting assumes a stable currency (i.e., constant purchasing power over time). Yet, even during periods of low inflation or deflation, nominal financial statements violate this assumption. I posit that, while the effects of inflation are not recognized in nominal statements, such effects may have economic consequences. I find that unrecognized inflat...

Financial assets are generally chosen for encapsulating wealth effects in empirical work on aggregate consumption, but there is growing interest in tangible wealth, notably housing, as a potential determinant. We estimate consumption functions for the G-5 on a Pooled Mean Group panel basis, which encapsulate roles for both tangible and financial wealth. Results suggest that tangible wealth play...

The aim of this study is to investigate the effects of capital structure decisions on firms’ profitability in manufacturing sector in Turkey. The data used in this research corresponds to the financial statements of manufacturing companies collected between 2005 and 2011. Regression analysis was employed by using financial ratios obtained from financial statements of firms within the scope of a...