Apostolos Ballas - Academia.edu (original) (raw)

Papers by Apostolos Ballas

European Accounting Review, 2008

Article usage statistics combine cumulative total PDF downloads and full-text HTML views from pub... more Article usage statistics combine cumulative total PDF downloads and full-text HTML views from publication date (but no earlier than 25 Jun 2011, launch date of this website) to 12 Feb 2013. Article views are only counted from this site. Although these data are updated every 24 hours, there may be a 48-hour delay before the most recent numbers are available.

Page 1. 1 MANAGEMENT CONTROL SYSTEMS, STRATEGY AND PERFORMANCE: THE CASE OF A SLOVENIAN COMPANY M... more Page 1. 1 MANAGEMENT CONTROL SYSTEMS, STRATEGY AND PERFORMANCE: THE CASE OF A SLOVENIAN COMPANY Metka Tekavčič University of Ljubljana, Faculty of Economics Kardeljeva pločad 17, SI-1000 Ljubljana ...

Emerald Group Publishing Limited eBooks, Apr 8, 2010

This study explores whether the implementation of Management Control Systems (MCS) by the Greek s... more This study explores whether the implementation of Management Control Systems (MCS) by the Greek shipping companies influences the adoption of their performance measurement systems and the implication of this choice on organizational performance. The study uses data collected from semi-structured interviews and a survey instrument addressed to shipping companies located in Greece. The paper finds evidence that MCS are defined in terms of the informational purposes these MCS fulfill. Analysis of responses to the questionnaire results that the choice of MCS is contingent upon the strategy pursued by the shipping companies. In addition, evidence suggests that shipping companies with an optimal fit between their strategy and their MCS experience superior performance and higher perceived usefulness of MCS. Moreover, it is concluded that Greek shipping companies adopt subjective performance measures irrespectively of the MCS they implement and that this choice leads to enhanced perceived performance.

SSRN Electronic Journal

This study investigates the relationship of asymmetric cost behaviour with earnings quality for E... more This study investigates the relationship of asymmetric cost behaviour with earnings quality for European listed firms. We employ a sample that consists of 11,416 firm-year observations of European listed firms over the period 2005-2019 to explore the relationship of asymmetric cost behaviour with (i) the managerial incentives to meet earnings targets, (ii) conditional conservatism, (iii) the level of operating accruals, and (iv) earnings smoothing. Our empirical evidence indicates that the presence of managerial incentives to meet earnings targets decreases the intensity of SG&A cost stickiness. We also document that asymmetric timeliness estimates in the conditional conservatism estimation models have an upward bias unless these models do not control for asymmetric cost behaviour. Finally, it seems that the levels of operating accruals and earnings smoothing are more sensitive to sales decreases than sales increases.

Journal of Accounting and Management Information Systems, 2021

Research question: This paper investigates the impact that specific audit quality dimensions have... more Research question: This paper investigates the impact that specific audit quality dimensions have upon European Union Banks’ income smoothing behavior. Motivation: Although previous studies have investigated the characteristics of audit quality, little is known about the audit quality in the banking sector. Excessive risk taking and business complexity may further impair auditors’ work and an audit’s outcome may be conditioned upon banks’ risk. Idea: We examine whether auditors’ independence influences bank managers’ decision to smooth income and whether this attribute depends on bank risk and systemic importance. We investigate the association between auditors’ industry specialization and auditors’ tenure with the level of Loan Loss Provisions Data: We use a sample of 133 banks from 26 European Union countries for the period 2006-2013. Tools: Similar to previous research, we use ordinary least squares analysis to test the results. Findings: Empirical findings provide evidence that ...

International Journal of Comparative Management, 2018

This study investigates whether corporate governance mechanisms have an impact upon EU banks' acc... more This study investigates whether corporate governance mechanisms have an impact upon EU banks' accounting policy decisions. We investigate if certain banks' corporate governance characteristics are related to the level of loan loss provisions (LLPs) reported by a sample of EU banks. We examined the accounting policy decisions of a sample of 98 banks from 23 EU countries regarding the level of LLPs. Initially, we investigate whether banks adjust LLPs in order to smooth their reported earnings. Subsequently, we investigate the association between two corporate governance characteristics of the sample banks, i.e., the structure of the board of directors (one-tier vs. two-tier system) and the disclosure of CEOs' remuneration, with their accounting policy decisions regarding LLPs. We found that banks with a two-tier board system are more likely, comparing to the one-tier system banks, to adjust the level of LLPs. Furthermore, we found that banks that do not disclose CEOs' remuneration are more likely to report higher loan loss provisions.

Economic and Financial Challenges for Eastern Europe, 2019

This paper investigates whether European banks smooth income and regulatory capital ratios throug... more This paper investigates whether European banks smooth income and regulatory capital ratios through loan loss provisions in the Basel period. Using a sample of 1064 bank-year observations from 26 European Union countries, we find that banks use loan loss provisions in order to smooth income after the adoption of IFRS and the Basel regulatory framework. However, our results do not support the regulatory capital management hypothesis. In addition, we find that the risk level and direct market discipline affect bank managers’ accounting discretion. On the other hand, we do not find evidence to support the hypothesis that the legal environment plays a substantial role in banks’ accounting policy decisions.

SSRN Electronic Journal, 2019

The primary objectives of this paper are to critically analyze and extend a fundamentals-based in... more The primary objectives of this paper are to critically analyze and extend a fundamentals-based investment criterion (HSBC’s Rating to Economic Profit – REP) and to examine its ability to justify analysts’ target prices. Although variations of this model are used extensively in practice, REP has mostly been ignored by academics. This study justifies the use of REP as an investment appraisal technique, provides significant extensions of the basic formula, and discusses implementation issues. It also conducts a content analysis of selected analysts’ reports, which may serve as insightful cases facilitating the work of valuation educators and practitioners. The authors provide some descriptive evidence of the usefulness of accrual accounting numbers over dividends for valuation purposes. Finally, the authors empirically show that analysts may use REP to justify their target prices, and offer estimates of the implied growth rates by reverse-engineering the growth-adjusted formula of REP. This paper should be of interest to empiricists in the area of market-based accounting research, valuation educators, and financial analysts. To the best of the authors’ knowledge, this is the first academic study that offers a comprehensive analysis of REP.

SSRN Electronic Journal, 2018

We explore the relation of CSR activities with SG&A cost stickiness and asymmetric sales response... more We explore the relation of CSR activities with SG&A cost stickiness and asymmetric sales response by using a data sample of 7.464 firm-year observations of European firms for the period 2009-2015. Our empirical findings indicate that SG&A expenses exhibit cost stickiness (anti-stickiness) in the case of firms with high (low) intensity of CSR activities. Depending on a firm"s intensity on CSR activities, it seems that sales revenues exhibit asymmetric responses towards different directions on the changes of SG&A expenses. The asymmetric sot behaviour of SG&A expenses and the asymmetric sales response are also affected by the extent that CSR activities are anchored with investing or signalling profile. A possible explanation is that firms with high intensity of CSR activities tend to focus on improving long term growth, they adopt a prospector"s strategy and they are characterised with high intensity of intangible investments.

Spoudai Journal of Economics and Business, Mar 30, 2015

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

SSRN Electronic Journal, 2015

The current study examines the effect of strategy and managerial ability on asymmetric cost behav... more The current study examines the effect of strategy and managerial ability on asymmetric cost behavior of SG&A expenses. We use a sample of US listed firms for the period 1991-2014 to provide empirical evidence that sticky cost phenomenon is associated with firms' strategic orientation. Our findings suggest that a firm's strategic orientation determines the direction of cost asymmetry in the case of SG&A expenses. Firms classified as prospectors exhibit SG&A cost stickiness whereas firms classified as defenders exhibit SG&A cost anti-stickiness. Sensitivity tests indicate that a firm's decisions on its strategic positioning and its portfolio of strategic intangible resources affect resource allocation decisions that are associated with the direction of asymmetric cost behavior. In addition, is seems that strategy remains a significant contributing factor concerning the intensity of cost asymmetry in the case of SG&A expenses under the presence of different levels of market concentration. Thus, the presence of asymmetric cost behavior seems to be an outcome of managerial decisions rather than a primary cause of a firm's strategic positioning.

Contemporary Issues in Accounting Regulation, 2001

The purpose of this paper is to present a study of the evolution of accounting regulation within ... more The purpose of this paper is to present a study of the evolution of accounting regulation within one country in the context of that country's historical development, the origins and motivations of the legal system and the state, and the subsequent outcomes in terms of accounting rules and regulations. The case in point is Greece. However, the paper neither describes specific regulatory practices in a systematic manner nor rules that exist for the preparation of the financial statements. It is concerned instead with the relationship between the state and corporate accountability. In the context of accounting regulation, Greece has recently attracted attention in the research literature. Papas (1993) and Ballas (1994) were among the first to describe to an international academic audience various institutional aspects of corporate accounting in Greece while Neal (1997) has attempted to describe the social and economic forces that have shaped its development. However, this study offers new insights into the institutional framework of accounting and in particular the relationship of the state to accounting regulation.

Managerial Finance, 2010

PurposeThis paper aims to examine the relevance of International Financial Reporting Standards (I... more PurposeThis paper aims to examine the relevance of International Financial Reporting Standards (IFRS) in emerging markets, with special reference to the case of Greece.Design/methodology/approachThis paper adopts a mixed methodology relying primarily on secondary sources such as the relevant legislation, published annual reports and reports on the effects of the application of IFRS by Greek firms as well as the results of a postal survey addressed to the finance managers of the top 100 Greek firms. For the postal survey, a modified version of the questionnaire used by Tyrall et al. was adopted.FindingsAlthough the Greek environment was not appropriate for IFRS application, participants in the survey believe that their adoption improved the quality of financial reporting. The introduction of IFRS increased the reliability, transparency and comparability of the financial statements.Practical implicationsThis study provides insights regarding the extent to which the introduction of IFR...

SSRN Electronic Journal, 1998

ABSTRACT

SSRN Electronic Journal, 2014

ABSTRACT This article receives motivation by the fact that tax-minimizing incentives will result ... more ABSTRACT This article receives motivation by the fact that tax-minimizing incentives will result in a lower reported income, whereas financial reporting incentives are satisfied with a higher book income, when the capitalization of R&D costs per se increases current-period profits. We use all listed firms reporting under IFRS from the UK, France, Germany, Italy, Spain, and the Netherlands and find that R&D-related tax benefits at the country level induce firms to either capitalize, or use a mix of expensing and capitalizing, rather than expense R&D. Our results also indicate that country-specific R&D tax benefits provide significant incentives for increasing R&D expenditures, especially among high R&D spenders. Our findings are interpreted as being indicative of the influence of R&D tax incentives on accounting policies, well and above the amount of investments they are meant to induce.

SSRN Electronic Journal, 2010