Department of Accounting

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Work by the faculty and students of the Department of Accounting

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  • Publication
    On the Causal Link between Financial Development and Economic Growth: Case of Jordan
    (Virtus Interpress, 2016) AbuAl-Foul, Bassam; Genc, Ismail; Darayseh, Musa
    This paper empirically examines the causal relation between financial development and economic growth in the case of Jordan for the period 1965 to 2004. That is, the paper attempts to provide answers to the following questions: a) Does financial development promotes economic growth? Or b) Does economic growth promotes financial development? Using Toda and Yamamoto (1995) Granger-no-causality model, the results reveal that there is a uni-directional Granger causality from economic growth to financial development (as defined by log (DC/GDP)).
  • Publication
    An auditing framework for knowledge-enabled supply chain management: Implications for sustainability
    (MDPI, 2017) Daghfous, Abdelkader; Zoubi, Taisier
    Knowledge management (KM) plays a key role in the success of several enterprise systems, such as supply chain management (SCM). This paper discusses knowledge-enabled supply chain management (K-SCM) as it enhances the organizations’ expertise in SCM. We propose a framework that integrates KM processes with SCM components. We developed an audit methodology that can be performed to assess the organization’s readiness in K-SCM. The developed framework consists of KM dimensions and Supply Chain Operations Reference (SCOR) components. The proposed audit methodology is subsequently illustrated through a case of a manufacturing company based in the United Arab Emirates (UAE). The paper concludes with implications for managerial practice and future research, with a special focus on sustainable SCM.
  • Publication
    Implications of Cost Behavior for Analysts' Earnings Forecasts
    (American University of Sharjah, 2014-03-27) Ciftci, Mustafa; Mashruwala, Raj; Weiss, Dan
    Recent work in management accounting offers several novel insights into firms' cost behavior. This study explores whether financial analysts appropriately incorporate information on two types of cost behavior in predicting earnings - cost variability and cost stickiness. Since analysts' utilization of information is not directly observable, we model the process of earnings prediction to generate empirically testable hypotheses. The results indicate that analysts "converge to the average" in recognizing both cost variability and cost stickiness, resulting in substantial and systematic earnings forecast errors. Particularly, we find a clear pattern - inappropriate incorporation of available information on cost behavior in earnings forecasts leads to larger errors in unfavorable scenarios than in favorable ones. Overall, enhancing analysts' awareness of the expense side is likely to improve their earnings forecasts, mainly when sales turn to the worse.
  • Publication
    R&D Productivity following First-Time CIO Appointments
    (American University of Sharjah, 2013-06-09) Khallaf, Ashraf; Skantz, Terrance R.
    Prior studies find that firms announcing the appointment of a new chief information officer (CIO) are rewarded by stock price increases, suggesting that the market expects new CIOs to add long-term value to the firm. In this paper, we examine whether first-time CIO appointments result in improved R&D productivity. We focus on R&D investments because an important role of IT management is to aid in discovery and management of growth opportunities. Successful R&D activities are designed to create the type of knowledge-based, growth-critical assets (new or improved products, better distribution methods, etc.) that effective IT management would be expected to assist. After controlling for industry performance, we find that the productivity of R&D improves significantly after the appointment of a new CIO. Further tests find that R&D productivity following the appointment of a first-time CIO is priced by the market as much or more than productivity in the pre-appointment period, implying that the market perceives the productivity improvements to persist. Our results for R&D investments suggest that new CIOs improve the way IT is managed and improve their firms' approach to knowledge management. One conclusion from this study is that the IT productivity paradox may be resolvable by focusing on segments of performance that are most directly impacted by improvement in IT management. We recommend avenue for further research.