ORCID Profile
0000-0002-3715-2927
Current Organisation
UNSW
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Publisher: Elsevier BV
Date: 02-2011
Publisher: SAGE Publications
Date: 09-03-2021
Abstract: A handful of prior marketing studies have examined the impact of customer satisfaction (CS) on the cost of equity (COE). These studies have estimated the COE using the ex post proxy (e.g., stock market beta) that may be susceptible to market fluctuations. Going beyond the conventional COE approach, we thus reestimate the effect of CS on COE, measured by the more robust ex ante expected returns (implied cost of equity [ICE]). Furthermore, we examine whether this relationship is subject to both external (product market conditions) and internal (chief marketing officer [CMO] presence) factors. Using 753 firm-year observations in the period 2000–2014, we find that firms with high satisfaction ratings have lower equity financing costs. The significant moderating effects of product market conditions and the presence of a CMO in firms are also observed. The negative relationship becomes weaker under conditions of greater product market competition and demand uncertainty, but stronger when a firm has a CMO in its senior management. Our findings provide useful insights for managers who need to justify and refine their marketing strategies in respect of CS to acquire a firm’s required level of equity financing costs. In addition, we highlight the importance of CMOs as significant contributors to the COE reduction. The results are also useful for investors when valuing a firm through the COE.
Publisher: American Accounting Association
Date: 05-2014
DOI: 10.2308/AJPT-50814
Abstract: Using a unique setting in which mandatory audit firm rotation was required from 2006–2010, and in which both audit fees and audit hours were disclosed (South Korea), this study provides empirical evidence of the economic impact of this policy initiative on audit quality, and the associated implications for audit fees. This study compares both pre- and post-policy implementation and, after the implementation of the policy, mandatory long-tenure versus voluntary short-tenure rotation situations. Where audit firms were mandatorily rotated post-policy, we observe that audit quality (measured as abnormal discretionary accruals) did not significantly change compared with pre-2006 long-tenure audit situations and voluntary post-rotation situations. Audit fees in the post-regulation period for mandatorily rotated engagements are significantly larger than in the pre-regulation period, but are discounted compared to audit fees for post-regulation continuing engagements. We also find that the observed increase in audit fees and audit hours in the post-regulation period extends beyond situations where the audit firm was mandatorily rotated, suggesting that the introduction of mandatory audit firm rotation had a much broader impact than the specific instances of mandatory rotation. Data Availability: Most of the financial data used in the present study are available from the KIS Value Database. The data for audit hours and fees were drawn from statements of operating results filed with the Financial Supervisory Services (FSS) in Korea.
Publisher: Wiley
Date: 16-09-2022
DOI: 10.1111/ABAC.12242
Abstract: In this study, we examine whether firms learn from pre‐announcement experience by focusing on optimistic pre‐announcements and market responses. Optimistic pre‐announcements are pre‐announced Earnings Per Share (EPS) higher than or equal to actual EPS. Based on organizational learning theory, we hypothesize that firms experiencing negative market responses to positive pre‐announcements (pre‐announced EPS higher than or equal to analysts' consensus) are less likely to make another pre‐announcement during subsequent time periods. Our findings support this hypothesis. For firms making another pre‐announcement, we find that the experience of a negative market response to a positive pre‐announcement is negatively related to making an optimistic pre‐announcement. Taken together, our findings suggest that firms learn from the previous experience of pre‐announcements and the corresponding market responses.
Publisher: Elsevier BV
Date: 08-2021
Publisher: Wiley
Date: 09-2020
DOI: 10.1111/ABAC.12201
Publisher: Springer Science and Business Media LLC
Date: 12-10-2012
Publisher: Wiley
Date: 17-11-2012
Publisher: American Accounting Association
Date: 25-04-2022
Abstract: We investigate changes to the use of private debt covenants following the mandatory adoption of IFRS globally. Using a difference-in-differences specification, we find a significant decrease in accounting-based debt covenants (mainly balance sheet covenants) in IFRS-adopting countries after IFRS adoption, but not in non-IFRS countries. The post-IFRS decrease in accounting-based debt covenants is greater in countries with low creditor rights or with high depth of credit information sharing. The decreases are greater in countries with high enforcement and/or large differences between IFRS and local GAAP. In contrast, the use of nonaccounting covenants does not change but other loan conditions tighten after IFRS adoption. IFRS also leads to increased technical violations of accounting-based debt covenants. Overall, our findings are consistent with IFRS reducing contractibility.
Publisher: Wiley
Date: 13-05-2009
Publisher: Wiley
Date: 17-10-2022
DOI: 10.1111/JBFA.12569
Abstract: We link the reputational incentives of independent directors in the labor market to firms’ corporate social responsibility (CSR) performance. We show that when a larger fraction of a firm's independent directors considers the firm more prominent, the firm has better CSR performance. This association is more pronounced for firms that are more visible and those that face greater external CSR pressure. Such firms are also more likely to (1) issue CSR reports and obtain independent assurance on those reports (2) include CSR items in annual general meeting agendas (3) invest in the optimal level of CSR. Finally, we show that an independent director is more likely to gain directorships if the CSR performance of their most prominent board improves. Our results are robust to controlling for firm fixed effects and when using plausibly exogenous shocks to the reputational incentives of independent directors. Overall, our results are consistent with our conjecture that the reputational incentives of independent directors have a positive influence on firms’ CSR performance.
Publisher: Elsevier BV
Date: 08-2019
Publisher: Emerald
Date: 14-09-2018
Abstract: The purpose of this study is to examine the relevance of American Customer Satisfaction Index (ACSI) to management voluntary forecasts of earnings. The authors further investigate whether the market reacts to such forecasts in respect of satisfaction. The authors’ econometric models are constructed from previous work in accounting to specify the effect of ACSI on the issuance and optimism of management forecasts. Our model also specifies the impact of management optimism with respect to ACSI on stock returns. The data consisting of US firms in the 2001-2010 is collated from several databases and analyzed using multiple regression procedures. Results indicate that ACSI is positively associated with the likelihood of issuing management forecasts and boosts management optimism. It is also found that investors react negatively to management optimism that is inherent in forecasts and results from satisfaction. The authors’ research findings not only complement prior work on the linkage between customer satisfaction and firm value by incorporating a managerial perspective but also respond to the recent call for further work on how relevant marketing metrics drive organizational decisions and firms’ financial performance. It should be noted that findings are limited to firms that release both a voluntary issuance of management forecasts and ACSI. The study results shed light on the justification of marketing expenditures and provide a response to the call for marketing accountability. The study results also enable managers to make better decisions about whether and when to issue a forecast. The authors’ research further calls stakeholders’ attention to the presence of management forecast optimism with respect to satisfaction. Despite the importance of managers as primary information generators and disseminators in the capital markets, there appears to be little discussion on the satisfaction’s relevance to market participants, particularly in relation to the role of managers. Therefore, this investigation is the first to empirically show the relevance of ACSI to management earnings forecasts that have been ignored in the marketing literature.
Publisher: Wiley
Date: 13-09-2023
DOI: 10.1111/ACFI.13177
Publisher: SAGE Publications
Date: 08-06-2022
Abstract: Using 41,648 firm-year observations from 30 countries during the period 2000–2011, we investigate the relation between analyst coverage and audit fees. We also examine whether the adoption of International Financial Reporting Standards (IFRS) and shareholder protection at the country level interacts with analyst coverage to affect audit fees. We find that auditors charge firms higher fees when the firms have greater analyst coverage. This supports our argument pertaining to analyst pressure. The positive impact of analyst coverage on audit fees is weaker for firms that adopt IFRS and in countries where there is high shareholder protection. This study enhances an understanding of the effect of analyst coverage on audit fees in relation to IFRS adoption and shareholder protection levels in an international setting.
Publisher: Wiley
Date: 31-08-2020
DOI: 10.1111/IJAU.12202
Publisher: Canadian Tax Foundation
Date: 2021
DOI: 10.32721/CTJ.2021.69.4.PF.MINAS
Abstract: This article compares the preferential tax treatment of capital gains in Australia and in Canada, with a view to determining whether there are any lessons from the Australian experience that may be of relevance to Canada. The tax treatment of capital gains is similar in the two jurisdictions in that both apply a 50 percent inclusion rate or the equivalent. Several aspects of the taxation of capital gains in Australia might be considered cautionary from the Canadian perspective. The Australian experience indicates that winning support for an increase in the capital gains inclusion rate can prove difficult, as demonstrated by the unsuccessful proposal by the Australian Labor Party, during the 2019 federal election c aign, to effectively raise the inclusion rate to 75 percent.
No related grants have been discovered for Youngdeok Lim.