Can Investors Profit from the Prophets? Security Analyst Recommendations and Stock Returns

Risk evaluation of tunneling projects

Most people agree that preparing for the future is necessary to excel, but doing it effectively is difficult. All risk analyses offer some foresight, but tools based on classic probabilistic calculus open for deception through apparent accuracy in some situations because ambiguity and fuzziness is largely ignored. We believe this is particularly a problem in strategic settings as it may lead to less informed decision making. We also believe that strategic risk analysis can hardly be performed well without matching risk management actions to the organization’s characteristics. We therefore present a new approach towards strategic risk analysis that remedies the two aforementioned problems. The purpose is to analyze strategic risks in a meaningful and practical way, yet capable of handling the broader scope of strategic risk. The approach is illustrated by a case.

Strategic risk analysis – a field version

This paper investigates the intra-industry effects of earnings restatements due to accounting irregularities. We detect a significant contagion effect for rival firms whose cash flow characteristics are similar to those of the restating firm. The restatement doesn't seem to influence all the firms in the industry or firms that have a high probability of involving the same type of accounting irregularity as the restating firm does. We do not detect any competitive effect; nor do we find a significant change in the implied cost of equity capital of the rival firms, suggesting that the contagion effect is due to the revision in the expected short-run future earnings of the rival firms.

https://papers.ssrn.com/sol3/Delivery.cfm/jbfa_607.pdf?abstractid=924040&mirid=1&type=2

Intra‐Industry Effects of Earnings Restatements Due to Accounting Irregularities

Quality audits are prominent and proven management tools for assessing compliance and effectiveness of quality systems They are commonly used in the effort to improve overall business performance However, similarly to any other physical or conceptual system, they may fail to achieve objectives set forth, raising concerns among auditees and clients alike Argues for the provision of adequate confidence to various interested parties in the quality of auditing services A quality audit is conceptualized using the systems approach Subsequently, a quality assurance framework based on the application of the 1994 and 2000 versions of the ISO 9001 standard in auditing is presented Audit system effectiveness is modeled using the concepts of audit reliability, availability and suitability Audit failures, risks and maintainability are addressed in detail It is concluded that audit managers must ensure appropriate levels of quality and effectiveness of quality audit systems

Quality assurance and effectiveness of audit systems

Auditors generally describe risk in terms of probabilities. Risk arises from lack of information which in turn leads to uncertainty. Since uncertainty exists when information is deficient and information can be deficient in different ways, it follows that auditors deal with different types of uncertainty. This article describes different types of uncertainty and a relatively new method of dealing with uncertainty referred to as fuzzy logic. Fuzzy logic and fuzzy set theory have contributed greatly to the development of artificial intelligence and have the potential to facilitate internal auditors’ measurement and management of risk and uncertainty in the audit environment.

Fuzzy logic: application for audit risk and uncertainty

Preface iv 1 Understanding Financial Statements and Annual Reports 1 2 Analyzing Profitability 33 3 Analyzing Liquidity and Solvency 71 4 Analyzing Activity with Financial and Nonfinancial Measures 121 5 Quality of Earnings and Cash Flows 145 6 Earnings Releases and EVA Analysis 175 7 E-Business 207 Notes 226 Index 229

Essentials of Financial Analysis

Partial table of contents: Introduction to Cash Management: Fundamentals of Cash Flow. Liquidity, Solvency, and Cash Flow. The Impact of Budgeting on Cash Flows: Effects of Budgeting on Cash Flow. Budgeting Cash Receipts and Disbursements. Using Probabilities to Budge Cash Receipts and Disbursements. Avoiding Pitfalls in Granting Credit: Cash Flow Management. Cash Collection and Delayed Payment Techniques. An Effectiveness Measure for Managmeent's Investment of Idle Cash. Internal Controls to Prevent Losses and Errors. Maintaining Control Over Cash. Index.

Understanding Cash Flow

Preface. Acknowledgments. 1. The Importance of Return on Investment: ROI. 2. Using ROI to Analyze Performance. 3. ROI and Decision Making. 4. Variations of ROI. 5. Analyzing Sales Revenues, Costs, and Profits. 6. ROI and Investment Centers. 7. Return on Technology Investment: ROTI and ROIT. 8. Residual Performance Measures: RI and EVA. Notes. Index.

http://digilib.umpalopo.ac.id:8080/jspui/bitstream/123456789/400/1/0471203750_Wiley_-_Essentials.of.Corporate.Performance.Measurement.Apr.2002.pdf

Essentials of Corporate Performance Measurement

The Accounting Process. Beginning with Business Cash Flows--An Illustration. General Purpose Financial Statements--An Illustration. The Balance Sheet--An Illustration. Illustrative Income Statement and Statement of Cash Flows. Accounting Conventions and Assumptions. The Income Statement. Operating Revenues. Cost of Goods Sold and Operating Expenses. Manufacturing Costs. Process Costs and Standard Costs. Inventory Flows to Cost of Goods Sold. Depreciation, Depletion, and Amortization. Nonoperating Revenues and Expenses Including Income Taxes, Discontinued Operations, Extraordinary Items, and Accounting Changes. Earnings Per Share. The Income Statement, Owners' Equity, and Retained Earnings. The Income Statment and the Statement of Cash Flows. Mergers and Consolidated Income Statments. Contents of the Annual Report. Content of the Annual Report--Footnotes and Supplementary Information. Comparative Analysis. Ratio Analysis. The Quality of Earnings. Income Statements of Foreign Companies. Index.

George T. Friedlob

Papers

Fuzzy logic: application for audit risk and uncertainty

Essentials of Financial Analysis

Understanding Cash Flow

Essentials of Corporate Performance Measurement

Understanding Income Statements