School of Accounting and Commercial Law

Events

Listed below are forthcoming events either hosted by the School of Accounting and Commercial Law (SACL) or the Centre for Accounting, Governance and Taxation Research (CAGTR) or the Chair in Public Finance.

Non-Linear Equity Valuation: An Empirical Analysis - Professor Mark Tippett (Honorary Professor, University of Sydney; Former Adjunct Professor at Victoria University)

Date: 6 March 2015

Time: 9.00 am

Venue: RWW129

Legacy COMPUSTAT Data pertaining to 226,165 firm-year observations covering a 57 year period (1950-2006) across all industrial groups are used to empirically assess the likely form and magnitude of the biases that arise from linear equity valuation models. Linear equity valuation models dominate the empirical analysis of the literature but ignore a firm’s growth and adaptation options which by default, are nonlinear in their determining variables. Given this, an orthogonal polynomial fitting procedure as summarized in Ataullah, et al. (2009), which does take account of the growth and adaptation options available to firms, is used to obtain a power series expansion for the relationship between equity prices and their determining variables. Our purpose is to assess whether the inclusion of the non-linear terms associated with the growth and adaptation options available to firms can provide a more complete description of the relationship between equity prices and their determining variables when compared to the simple linear models which characterise the empirical research of this area of the literature. Our empirical analysis classifies firms into negative efficiency, low efficiency and high efficiency levels and then for each efficiency level, estimates the parameters implied by the Ataullah, et al. (2009) orthogonal polynomial fitting procedure. Our results show that there is a very strong non-linear relationship between equity value and its determining variables although the nature of the relationship varies according to the efficiency level considered.

Critical Realist Accounting Research: Whence and Whither? - Professor Sven Modell (Manchester Business School & Norwegian School of Economics)

Date: 20 March 2015

Time: 11.00 am

Venue: RWW129

Over the past decade, a small but growing body of accounting research explicitly informed by critical realism has started to emerge and be deployed to diverse research tasks. This paper offers a review and critique of this emerging strand of accounting research against the backdrop of broader developments in the critical realist research programme in the social sciences and explores its potential to contribute to critical accounting scholarship. It is argued that the use of critical realism in the accounting literature has thus far been rather piecemeal and only partially geared towards developing an explicitly critical or politically engaged research agenda aimed at advancing radical social critique. Whilst these features can partly be traced to internal divisions within the larger critical realist project in the social sciences, I elaborate on how emerging accounting studies can be developed into a more coherent and integrative research programme drawing on diverse strands of critical realist thought. In doing so, I pay particular attention to how such research can be imbued with more clearly articulated, critical intent. This is achieved by incorporating explanatory critiques pivoting on the twin concepts of retroduction and retrodiction into a contingent approach to critical research interventions recognising the varying ontological possibilities of emancipation embedded in social structures and the subjectively induced propensity for reflexivity among human agents. I elaborate on how such an approach may take critical accounting research beyond past controversies concerning the degrees of determinism and radicalism ascribed to especially Marxist and post-modernist (or post-structuralist) research as well as empiricist tendencies emerging as a counter-reaction to the allegedly pre-conceived notions of critique associated with these research genres.

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