Tuesday, January 28, 2020
Review of the ball and brown study
Review of the ball and brown study With the rise of multinational companies and the rapid growth of transnational investments, there has been an increasing demand for an empirical evaluation of accounting income numbers. This is a broad area of research that originated with the seminal publication of the Ball and Brown study(1968).The literature has grown rapidly, with over 1,000 published papers in leading academic accounting and finance journals in the past three decades (Kothari,2001).However, several accounting experts assert that there are some weaknesses in the research of Ball and Brown. Meanwhile, critics argue that their empirical evaluation contributed to the positive accounting theory that revolutionized accounting literature in the late 1970s. The purpose of this essay is to introduce the strengths of Ball and Browns paper and identify its influence on the development of accounting. This essay will argue that the limitation of the paper is not serious, but its advantages are very significant. First, argume nts for and against the empirical research are discussed. Then, an evaluation is explored .Lastly, a conclusion is presented. 2. The weaknesses of the paper Providing empirical evidence to ascertain whether accounting numbers contain or convey information about a firms financial performance was the major motivation that led to the research of Ball and Brown (1968). They pioneered capital markets research in accounting. However, their study still has some weaknesses. 2.1 Unreliability As a potential limitation of their studies, the reliability of their results depends on the sources of information. Although we are not disputing the reliability of the said sources, they should be investigated. Research should be conducted to document various types of institutions. According to Zhang (2007), the selection of the sample did not include companies meet the following four conditions. The first one is the failed company. The second one is a company whose financial year does not end on the 31st of December. The third one is the company that is not recorded in the CRSP database of stock price research centers. It also includes the young firm that is not described by the Wall Street Journal. Given those situations, the generality and reliability of their results may be reduced. 2.2 Limitations This research firmly establishes that earnings reflect some of the information in security prices. However, this early research did not perform statistical tests comparing alternative performance measures, considering that the primary concern was to ascertain whether there is any overlap between the earnings information and the information reflected in security prices. In the 1980s, several studies statistically compared stock returns with earnings, accruals, and cash flows (Rayburn, 1986). Aside from providing a formal test, the previous research used a relatively crude measure of cash flow. The succeeding studies used more sophisticated expectation models to isolate accurately the unexpected components of earnings, accruals, and cash flows, given that returns in an efficient market only reflect the unanticipated components (Livnat et al., 1990).ListenRead phonetically 3. The strengths of the paper Although the weakness of this paper is obvious, the design of variables and the results of the test have made outstanding contributions to research of accounting income. 3.1 Ingenious design of variables After identifying the research themes, Ball and Brown selected the most representative accounting income numbers to measure the information content. Considering that shareholders are more concerned about EPS and net income, Ball and Brown used them as variables. To determine the information content of the accounting income, they used market efficiency hypothesis and the capital asset pricing model as references. According to the efficient market hypothesis, the authors maintained that observable stock price is fluctuant and linked with information. This can mean that accounting income numbers are useful. The key to determining the relationship between accounting income and stock price is to distinguish the security prices of a particular company as well as all the other companies. Therefore, the authors built two models of market expected return to examine how the market reacts to accounting income numbers. Ball and Brown separated factors that affect earning into two different kinds: specific factors and system factors. System factors affect all companies, thus, the surplus of one company and other companies can be linked with each other. If the link is suitable, then stability can be shown using a fixed function, enabling us to achieve the income conditional expectation of one company based on other companies data. Thus, changes in the unexpected surplus of earning can be estimated by calculating by the changes in both actual income and conditional expectation. The authors defined the difference as the gain of current information. At the same time, they assumed that the changes in policy and corporate have been enacted before the first estimation. Thus, the influence of macroeconomic and policy changes can be estimated jointly. The authors initially used the Ordinary Least Squares (OLS) to estimate the linear regression coefficient and intercept of samples annual income changes and average income changes. Secondly, the changes in the market income average were used as independent variables and included in the regression model to calculate the expected value of income changes. Finally, the changes in the value of unexpected earnings (prediction residual) referred to the actual value of the earnings change minus the change in earnings expectations. Therefore, market effect was removed from the estimation of expected surplus, which means the authors did not take system factors into account. Similarly, the factors affecting the impact of no stock or stock returns can still be separated into two factors: system factors and specific factors. First, the authors used capital asset pricing model to separate the system factors and from non-system factors, then calculated the deviation of actual rate return and expected stock return. Secondly, Ball and Brown calculated the companys stock return residuals (abnormal returns). Given that markets are efficient, stock prices will adjust quickly and effectively about the new information, so residuals can show the impact on stock prices of new information. To test the validity of statistics, Ball and Brown used an alternative model- naive model. In this model, an alternative variable is the expected surplus for last years actual surplus. The naive model does not eliminate the market effects, but verifies the earnings per share targets. 3.2 Remarkable results This paper distinguished expected changes and unexpected changes in accounting incomes to estimate the abnormal return and changes in unexpected accounting incomes. In addition, it theorized that when the surplus prediction error is negative, it is both advantageous and disadvantageous. This paper presented the hypothesis that if the accounting income numbers could be linked with stock prices, then the announcement of accounting income numbers could result in changes in the stock returns. In the empirical test, the authors defined the month of annual report as 0, API representing the abnormal performance index of month M. In the process of calculating the API, the changes in unexpected earning are first separated into two groups (positive and negative), and then all samples are calculated together. Ball and Brown thought that if accounting income is related to stock returns, it can be assumed that if the changes in unexpected surplus are positive, then API is larger than 1 ; if they are negative, then the API is less than 1. In the combined sample, API is close to 1. Ball and Brown thought that annual income report can provide new information; however, it cannot be transmitted in time, because most of its content comes from various sources (interim report and non-accounting information, annual accounting report is only one of them) .The authors also found that after the announcement of the annual report, API has a tendency to drift on, that is, revenue projections residual error signal and the relationship between stock returns in the annual report may be continued for two months. After analysis, which may be caused by the transaction costs, and excluding the impact of transaction costs, the market reaction to the numbers tends to be unbiased. 4. Evaluation At first glance, one weakness of this empirical research is the limitation of the sample which may decrease the generality and reliability of the results. However, the selection of the sample was similar to the tests used in related literature, which could lead to consistent results if used the same way on other samples. The weaknesses of the paper also include the limitation of the statistical tests. Nonetheless, it had a significant impact on later research. Ball and Brown (1968) provide compelling evidence that there is information content in accounting earnings announcements. In the meantime, they correlate the sign of the abnormal stock return in the month of an earnings announcement with the sign of the earnings change of a certain firms earnings in a previous year earnings. Starting with Ball and Brown (1968), many studies used such association with stock returns to compare alternative accounting performance measures, such as historical cost earnings, current cost earnings, residual earnings, operating cash flows, and so on. Circumstances similar to those that facilitated the Ball and Brown (1968) study also contributed to Watts and Zimmermans positive accounting theory that revolutionized the accounting literature in the late 1970s (Watts and Zimmerman, 1979). As Watts and Zimmerman (1986) po int out, most accounting research since Ball and Brown (1968) has been positive, and the role of accounting theory is no longer normative. Ball and Brown (1968) heralded the positive-economics-based empirical capital markets research in the late 1960s.Concurrent developments in economics and finance constituted the theoretical and methodological impetus to the early capital markets research in accounting. This historical detour exploring the forces that shaped the early capital markets research has positive pedagogical externalities, particularly for guiding new researchers. Seasoned researchers can skip over portions of this section without losing continuity. In addition, this paper analyzes the insufficiency of theoretical studies using empirical testing to find out whether the accounting income numbers are useful. It initially provides reliable evidence that stock markets can influence annual reports. Then researchers began to do a lot in reflect of stock market. Furthermore, the method used is also applicable to a large number of accounting and financial issues, including dividend announcements, earnings announcements, mergers and acquisitions, and investment spending. 5. Conclusion This essay has discussed the weaknesses and strengths of the empirical evaluation of accounting income numbers by Ball and Brown (1968). Although this research has some limitations, the merits far outweigh the disadvantages. It preceded the positive-economics-based empirical capital markets research of the late 1960s. Concurrent developments in economics and finance constituted the theoretical and methodological impetus to the early capital markets research in accounting. Therefore, it is suggested that this research plays a great role in the development of accounting .In this essay, only a few strengths are mentioned; the ways of putting these benefits into practice need further exploration.
Monday, January 20, 2020
News and Politics In the 1920s :: essays research papers
                                                  News and Politics In the 1920's                          The five years (1920-1925) chosen are exciting. There were presidents elected, one dying in office, baseball was still the national pastime, a major political scandal, and there were new inventions everywhere!      Although all of the events can be listed in chronological order and described as news, the 1920’s had many exciting firsts. In telling about them, it seems to be better not to put them in any order. That makes them more interesting. That makes it easier to divide them into events. Those events make up the news, sports, industrial announce-ments, and political reports of the time.      Warren Harding walked a couple of miles down Pennsylvania Avenue on the day he was sworn into office. He appointed the Republican Senator Albert Fall from New Mexico to the Department of The Interior. Secretary Fall became one of the major scandal makers in U. S. History.      The Teapot Dome affair (named for an oil field in Wyoming) was about oil. Albert Fall believed that the Navy’s oil reserves, still underground, should be available to the private enterprise. That was against the law, especially since it was done for a bribe.      Radio station KDKA out of Pittsburgh, Pennsylvania, was the first to make a broadcast in America. There were very few people listening! Radio receivers didn’t exist for the general population. Americans soon caught on to the idea and demanded radio sets for their homes.      A previous World Series was scandalized by bribery. By 1921, â€Å"Shoeless†Joe Jackson, and eight others of the Chicago White Sox players were on trial. Baseball really took it hard. In that same year, baseball enjoyed the first radio broadcast of the World Series, and the Giants beat the Yankees.      Colonel Billy Mitchell decided to prove his theory of airpower to the big shots in 1921. Using German ships from the Great War, Col. Mitchell’s bombers sank the former dreadnaughts pretty easily. Although he was correct, the â€Å"brass†disliked him for showing up the Navy, and the star (General Staff) was never put on his collar. Air-power did take its place in the military and it became every bit as important as he hoped.      The Early Twenties sure went by fast; Lt. Al Williams broke the air speed record in 1923. He was flying a Curtis Racer when he passed 273.7 mph at an airfield in St. Louis, Missouri.      The President died in office. The newly sworn President [Mr.
Saturday, January 11, 2020
Guava Leaves
The purpose of this investigatory project is to prove that herbal plants can cure skin disorders like acne that is irritating and can low our confidence who are going to the stage of puberty like me that’s why I searched on the internet about herbal plants that can treat skin disorders, and I found one guava.Guava has many constituents and high contents which are characterized by their antioxidant functions these nutrients can treat acne that is irritating and boost our confidence down whose going to the stage of puberty like me and 30+ who is still having this type of skin disorder this investigatory project that we can use the extracts of guava to treat acne.Background of the study and introductionGuava plants in the myrtle family which contains about 100 species of tropical shrubs, nowadays people are focusing in herbal plants especially those who are common in the environment. One of the example is the guava plant (Psidium guajava Linn). Based on research this plant is goo d for healing and treating wounds and other skin infections. So in my research I wan't to make a bathing soap out of it, cause I know that it is effective.People, researchers, scientists were focusing to medicinal plants. They want to prove that there are plants that are more effective against diseases especially in skin. This study refers to a plant that can be made into a bathing soap and improves its quality while using this plant (guava leaves). I want people to handle easily in treating their skin disorders. Instead of boiling the leaves, now it’s easy to apply. Boiling takes much time.Statement of the ProblemI stated that Guava leaves extract is good for skin. Based on my research, it has many constituents that are good for skin. It answers the following questions:Is there any constituent of guave leaves that is good for skin? * What are those?It can really treat skin disorders/ Acne?HypothesisCan guava leaves can treat/cure acnes using its extract and making a soap tha t can be used on face for treating acne. Yes, the extract of the guava leaves can be used in making soap and can be used on treating acne my acne has lessen for I applied it on my face for a week.Significance of the StudyYou can make a bathing soap with guave leaves extract as treatment for acne. This plant is very common to our environment, and aside of its avaibility; it is easy to cultivate. It contains many components for healing skin disorders.Scope and LimitationThe study of guava leaves and getting their extract is often useful. It has the ability to treat, cure, disinfect skin disorders and capable of being a herbal plant for acnes.Definition of TermsAstringent- antiseptic propertiesDecoction- infusion of fresh leaves used for wound cleaning and skin to prevent infection and to facilitate healing. Good for skin disorders.Volatile- a substance that changes into a vapor at a relatively low temperature.Eugenol- oily liquid from doves. (C10H12O2)Cloves- aromatic spice from the d ried flower bud of a tropical tree.Tannin- a brownish or yellowish substance found in plants and used in astringents. Saponins- soap from plants; any group of chemical substances extracted from plants that form a soapy lather mixed with water and are used to make soap and detergent.Amydalin- resin used in paints and adhesives.Resin- yellow or brown color and organic substance from plants. Malic Acid- acid from fruit; a colorless crystalline solid found in fruits such as apples. (C4H6O5)Aldehydes- organic compound; a highly reactive organic compound produced by the oxidation of an alcohol and having a CHO group especially the acetaldehyde Ash- the powdery substance that is left when something has been burntGuava:Scientific Name: Psidium GuajavaMethodologyMaterials:Beaker.Molder.NaOH (sodium hydroxide) (60 grams) (150 ml) solution Gas stove.Guava Leaves.The procedurePrepare the stove to be used. Boil it for 10 minutes (Low Heat); Separate the skin from the extract. Put it in a clean c ontainer, let it cool and then set aside. Prepare the Sodium Hydroxide (NaOH) or Lye. Put in a container. (Note: Read first the directions in using Lye. For Example: Don’t put the NaOH on aluminum containers.You must use rubber gloves and Masks in dealing with lye and with other chemical substances. Don’t play with them and Keep out of reach of children.) Put some oil (3 tbsp.) and Water (3 tbsp.). Mix it thoroughly. Put the extract of the fruits to the mixture. (1/2 tbsp.). Stir the mixture continuously in a single direction. (Note: Make sure the mixture is viscous)Let it dry for about 2 days or more.Results, Discussion, Conclusion and RecommendationThe researchers found out that the 4 seasons fruits can help minimize pimples and pores. It can also help clear skin impurities because of the anti-oxidants that the soap contains. This research gave us a hard time because there are a lot of instances that the measurements of the ingredients would not compliment the desire d results. There can also be a downside in this experiment because the soap is not intended to be used in scars because it might irritate it and it stings.The researchers therefore conclude that the guava extract soap can reduce pimples and other skin impurities.This is shown by the experiment that we conducted by putting various kinds of ingredients in different amounts and sizes. The experiment was successful because the researchers came up with their desired result even after several tries.Conclusion and RecommendationThe researchers therefore conclude that the guava extract soap can reduce pimples and other skin impurities.This is shown by the experiment that we conducted by putting various kinds of ingredients in different amounts and sizes. The experiment was successful because the researchers came up with their desired result even after several tries.
Friday, January 3, 2020
Wolff-Parkinson White Syndrome Essay - 869 Words
Wolff-Parkinson White Syndrome Wolff-Parkinson White syndrome is a heart condition where there is an extra electrical pathway or circuit in the heart. The condition can lead to episodes of rapid heart also known as tachycardia. Wolff-Parkinson White syndrome, also known as WPW, is present at birth. People of all ages, even infants, can experience the symptoms related to WPW. Episodes of tachycardia often occur when people are in their teens or early twenties. Most of the time, a fast heart beat are not life threatening, but serious heart problems can occur. Treatments for Wolff-Parkinson White syndrome can stop or prevent episodes of fast heart beats. A catheter-based procedure, known as ablation can permanently correct the heart†¦show more content†¦Ã¢â‚¬Å"Wolf-Parkinson-White syndrome is associated with some forms of congenital heart disease, such as Ebsteins anomaly.†(Mayo Clinic Staff). The heart is made up of four chambers. The two upper chambers known as the at ria, and the two lower chambers known as the ventricles. The rhythm of your heart is controlled by the sinus node. The sinus node is almost like a natural pacemaker which is located in the atrium. The sinus node gives off electrical impulses that start every heartbeat. â€Å"Electrical impulses travel across the atria causing the atria muscles to contract and pump blood in the ventricles.†(Mayo Clinic Staff). The electrical impulses eventually arrive at a cluster of cells known as the atrioventricular node or the AV node. The AV node slows down the signal before sending it to the ventricles. By this delay, it allows the ventricles to fill with blood causing the electrical impulses to reach the muscles of the ventricles so they can contract and pump blood to the lungs and the rest of the body. When a person has WPW syndrome an extra electrical pathway connects the atria and the ventricles. This means that an electrical signal can bypass the AV node. When the impulses use this alternative route through the heart, the ventricles are activated to early. Looped electrical impulses and disorganized electrical impulses are two major types of rhythm disturbances. A looped electrical impulse is when electricalShow MoreRelatedHistory Of Present Illness : 34 Year Old Woman With A History Of Wolff Parkinson White Syndrome3858 Words  | 16 PagesHistory of present illness: 34-year-old woman with a history of Wolff Parkinson White Syndrome complains of intermittent palpitations since 2005. She has had a 24-hour Holter, which was unremarkable. She came in for a follow-up visit and had an EKG done that revealed the presence of pre-excitation. The patient reports a daily sensation of palpitations that lasts for several minutes. The patient reports lightheadedness with the palpitations without syncope. 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