Jenice Prather-Kinsey - Academia.edu (original) (raw)

Papers by Jenice Prather-Kinsey

International Journal of Disclosure and Governance

The International Accounting Standards Board (IASB) seeks to provide global financial reporting c... more The International Accounting Standards Board (IASB) seeks to provide global financial reporting comparability of its International Financial Reporting Standards (IFRS). The objective of this study is to propose an organizational dynamic that could improve global comparability of financial reporting under IFRS through rigorous and homogeneous global enforcement. We use the qualitative framework of Gioia et al. (Organ Res Methods 16:15–31, 2012) to identify the relevant literature, methodologies, and organizational dynamics to understand the issues and changes needed to possibly achieve full-IFRS financial reporting for cross-border listed firms. We draw on previous studies that provided evidence of limitations and issues about comparability of financial reporting based on (not homogeneous) adoption, application, and enforcement of IFRS worldwide. A content analysis of IASB’s deliberations in developing its interactions with (International Organization of Securities Commissions (IOSCO...

Journal of International Accounting, Auditing and Taxation, 2018

Despite efforts to increase convergence and comparability in financial reporting across national ... more Despite efforts to increase convergence and comparability in financial reporting across national borders and regulatory boundaries, inconsistencies in the interpretation of accounting standards persist. The current study examines whether accounting decision-making (consolidation of an investee) is influenced by accountants' work location (United States (US) vs. India) and personality (core self-evaluations). We expect these relationships to differ based on whether the

Journal of Accounting, Auditing & Finance, 2010

We test a hypothesis that financial analysts use a simple algorithm of an equal growth rate for e... more We test a hypothesis that financial analysts use a simple algorithm of an equal growth rate for expenses as is for sales when they forecast corporate earnings by examining the errors in analysts' earnings forecasts. If expenses change at a lower rate than sales in absolute terms due to the fixed portion of expenses, then analysts' forecasted expenses will be higher (lower) than actual when they forecast an increase (decrease) in sales, resulting in lower (higher) forecasted than actual earnings assuming that analysts have perfect sales forecasts. Using 3,220 individual financial analysts' sales and earnings forecasts during the period of 1996–2005 for which sales forecast errors are close to zero, we find that the errors in analysts' earnings forecasts are positively related to their expected sales growth rate. This result is consistent with the hypothesis that analysts' imperfect adjustments of cost behavior result in systematic errors in their earnings forecasts.

The objective of this study is to examine whether analysts fully incorporate a nonproportionate a... more The objective of this study is to examine whether analysts fully incorporate a nonproportionate algorithm of cost-change relative to revenue-change in forecasting earnings. We conjecture that the errors in analysts ’ earnings forecasts made in the first month after the fiscal year-end are largely due to the errors in estimating expenses as a result of analysts ’ use of a proportionate cost-change model. Using 19,666 consensus analysts ’ earnings forecasts for fiscal years 1983-2001, we find that, ceteris paribus, the earnings forecast errors are lower in the years when revenue decreases than when revenue increases. Our results of estimating a rational expectations model using a non-linear generalized least squares method are consistent with our hypothesis that these differential earnings forecast errors between revenue decreasing and increasing years can be attributed to analysts ’ systematic under (over) estimation of expenses in revenue decreasing (increasing) years.

The International Journal of Accounting, 2010

The International Journal of Accounting, 1999

We analyze the international accounting research published in 30 U.S. academic journals and Accou... more We analyze the international accounting research published in 30 U.S. academic journals and Accounting Organizations and Society (AOS) from 1980 to 1996 to provide strategies for those interested in pursuing academic careers in international accounting. We focus on the relationship between the most prolific authors and their academic environment. Our findings show that the set of authors and schools of the most prolific authors in international accounting in the U.S. are not the same as the set of the most prolific authors and schools of AOS. Neither the international accounting authors nor their academic affiliations were dominated by U.S. or U.K. academic institutions. The authors in international accounting were promoted within and between schools and many were full professors with professorships. The dominant research methods used and topics researched in AOS were different from those of U.S. journals. Young faculty should develop their career objective and align their employment and publication goals accordingly because they have a broad selection of mentors, universities and journals for which to target their research. Aligning research interests with academic environment choices should maximize an international accounting faculty's publication productivity and academic rank.

Journal of International Financial Management & Accounting, 2007

International Financial Reporting Standards (IFRS) are required for consolidated financial statem... more International Financial Reporting Standards (IFRS) are required for consolidated financial statements of all European Union (EU) publicly traded companies starting from the December 2005 fiscal year end [Regulation (EC)]; and endorsed by the International Organization of Securities Commission (IOSCO) for its member countries beginning in 2000. We examine the challenges and benefits, including value relevance, of the adoption of IFRS by DAX-30 companies, the German premium stock market. Based on a survey sent to DAX-30 company executives, we find most companies agreeing that implementing IFRS should improve the comparability of financial statements. The complex nature, high cost of adopting and lack of guidance for implementing IFRS, as well as increased volatility of earnings after adopting IFRS, are listed among the most important challenges of conversion to IFRS. We use regression to measure another benefit: the value relevance of book values of earnings and equity in explaining market values of DAX-30 companies during the period 1995-2004. Using 265 observations, we find that adopting IFRS or US Generally Accepted Accounting Principles or cross-listing on the New York Stock Exchange significantly increases the value relevance of earnings relative to market prices.

Journal of International Accounting Research, 2004

ABSTRACT: Faculty and administrators are called upon to evaluate international accounting researc... more ABSTRACT: Faculty and administrators are called upon to evaluate international accounting researchers' performance, which requires knowledge of international accounting research journal outlets, journal rankings, topics, methods, and authorship. Both seasoned and novice international researchers are faced with the need to know the placement, turnaround review time, rankings, topics, methods, and authorship of potential international accounting research outlets. Thus, the objective of this study is to provide timely information to the international accounting research evaluator as well as to international accounting researchers, whether at the entrance, mid-career, or senior level. We compare and analyze accounting research published in 41 U.S.- and non-U.S.-based academic journals from 1981–2000 in order to describe and discern the trends of international accounting research within five dimensions: quantity, internationality, topic, method, and author. Our regression-based growt...

… paper, University of …, 2008

This paper examines the capital market's reactions associated with the mandatory adoption of Inte... more This paper examines the capital market's reactions associated with the mandatory adoption of International Financial Reporting Standards (IFRS) by European firms in 2005. We provide insight on the heterogeneity in capital market consequences from IFRS adoption by investigating the value relevance of book values and information content of earnings announcements of firms before and after IFRS adoption. Additionally, the impact of adopting IFRS on the cost of equity capital is examined. We selected a sample of 157 European firms that implemented IFRS in 2005, used domestic GAAP only for financial reporting in 2004, and reported under IFRS only in 2006. We found that capital market participants consider IFRS adopters' financial reports more value relevant and informative, and thus resulting in a lower cost of capital after adoption of IFRS. We test whether the heterogeneity in capital market consequences from adopting IFRS can be explained by differences in the legal origin of the country in which firms are domiciled, shareholder rights, and the quality of enforcement. Firms from code law countries experienced more significant market consequences from implementing IFRS than firms from common law countries.

Accounting, Organizations and Society, 2010

This study examines whether auditors from different countries come to different conclusions when ... more This study examines whether auditors from different countries come to different conclusions when they perform analytical procedures to assess the risk of misstatement in accounts. During a laboratory experiment, auditors who worked for the same firm in the United Kingdom, France, and the United States performed analytical procedures on identical case materials. Although auditors from all three countries came to similar conclusions about the overall risk of misstatement, they attributed risk differently across the individual financial statement accounts they evaluated.

Journal of Management and Governance, 2018

We investigate the reasons why “adoption” of one set of globally accepted accounting standards is... more We investigate the reasons why “adoption” of one set of globally accepted accounting standards is presently unachievable. By “adoption” we mean that a jurisdiction incorporates IFRS instantly as its national accounting as issued by the IASB. We state that the IASB has used a Legitimacy Theory strategy to gain acceptance of its standards by more than 120 countries across the globe but it has only gained pseudo-“adoption” (not as published by the IASB) of its standards by many countries. We contend that achieving policing and enforcement of its standards globally has proven to be empirically illusive. This legitimacy deficit may explain why convergence between the IASB and FASB is currently idle. We offer a possible solution to bridging the legitimacy gap of global adoption of IFRS. We propose an internationally respected regulator and suggest the IOSCO for this role through its participation in the IFRS Foundation Monitoring Board for policing and enforcement of IFRS for cross-listed firms reporting in compliance with IFRS so that the IASB’s output legitimacy may be achieved globally.

Accounting Horizons, 1996

Abstract: This study analyzes the number and quality of international accounting research article... more Abstract: This study analyzes the number and quality of international accounting research articles during the period 1980 through 1993 by using a multidimensional analysis of refereed, academic, US-based accounting journals. International accounting academics are ...

I examine the usefulness (relevance and timeliness) of earnings announcements in two emerging mar... more I examine the usefulness (relevance and timeliness) of earnings announcements in two emerging markets, the Johannesburg Stock Exchange (JSE) and the Bolsa Mexicana de Valores Stock Exchange (BMV). A weighted least-squares regression is used to test the association of book values of earnings and equity with firm market value. I find that, on JSE and BMV, earnings and/or book value of equity are value relevant in explaining stock prices. I also find that this association is greater in 2000 as compared to 1998 on the BMV. Regarding timeliness, I find that earnings announcements are accompanied by unusually different returns on JSE, but not on BMV. Market infrastructure, specifically insider-trading rules, may explain BMV results. I suggest that accounting and market infrastructure interact and that such interaction is valuable input to the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) in their deliberations regarding one set of accounting regulations for all countries.

Accounting Horizons, 2014

SYNOPSIS The objective of our study is to test whether the adoption of International Financial Re... more SYNOPSIS The objective of our study is to test whether the adoption of International Financial Reporting Standards (IFRS) in the United States (U.S.) is perceived positively by American Depository Receipt (ADR) firms' equity market participants. We conduct our tests by studying market reactions to the Securities and Exchange Commission's (SEC) IFRS-related press releases, between 2007 and 2011, regarding potential adoption of IFRS in the U.S. Using a sample of ADR firms and multivariate regression analyses, we test the 3-day cumulative abnormal returns (CAR) of investors of ADR firms in response to SEC announcements on potential IFRS adoption. We find a significant and positive market reaction to the SEC's announcements related to the potential adoption of IFRS in the U.S. for ADR firms reporting their financial statements using IFRS, especially in the industry where IFRS is the globally predominant accounting standard. Conversely, we find a significantly negative market...

European Accounting Review, 2004

... DOI: 10.1080/0963818032000138206 Jenice Prather-Kinsey a * & Gary K. Meek b pages 213-234... more ... DOI: 10.1080/0963818032000138206 Jenice Prather-Kinsey a * & Gary K. Meek b pages 213-234. ... European Accounting Review , 6(1): pp. 4568 [Taylor & Francis Online] View all references), and Dumontier and Raffournier (199811. Dumontier, P. and Raffournier, B. (1998). ...

Advances in International Accounting, 2005

In this study, we investigate whether financial reporting, using International Accounting Standar... more In this study, we investigate whether financial reporting, using International Accounting Standards (IAS) results in quality disclosures, given differences in institutional and market forces across legal jurisdictions. This study contributes to the global accounting debate by utilizing U.S.based companies complying with U.S. Generally Accepted Accounting Principles (U.S. GAAP) as a benchmark for measuring the quality of IAS as applied by South Africa (S.A.) and United Kingdom (U.K.) companies. Although South Africa, United Kingdom, and the United States are common law countries with strong investor protection, South Africa's institutional factors and market forces vary from that of the U.K.