Academic Research on Recast Financials

• Financial statement recasting and credit risk assessment, Batta, G., Ganguly, A., & Rosett, J. (2014). Accounting & Finance,54(1), 47-82. The main aim of this paper is to explain the importance of the adjustment made to the corporate financial statement as regards the credit risk assessment. Another significance of this paper is that it tends to examine the individual adjustment made at a time. According to the research made in this paper, we find out that financial statement recasting adjustment aims at getting a better reflection of the firms financing cost, indebtedness and recurring income than the reported financial numbers which are basically reflected in the bond yield spreads and also have an economically significant impact on loss forecasting and credit pricing.
• The reaction of Share Prices to Issue of IPOs from the NSE: Empirical Evidence, Waweru, J. M. (2010). Unpublished MBA Project, University of Nairobi. According to this paper, the stock exchange market is defined as a market that basically deals in the exchange of securities allotted by publicly quoted governments and private companies. This paper aims of the paper are to study the relationship between the new price of the IPO and the price movement of the securities of companies stated in the NSE. This paper aims to establish if there is an existing relationship between the stock prices as it might have been influenced by the news of initial public offerings in the Nairobi Stock Exchange market. The study time period has stated in this paper was the period between 2004- 2009.
• Disclosure-derived financial statement adjustments in equity valuation, Batta, G., Ganguly, A., & Rosett, J. G. (2014). Review of Pacific Basin Financial Markets and Policies,17(02), 1450008. According to this research thesis, the equity value relevance of disclosure-derived financial statement adjustments was studied. According to the return test and price level test carried out in this paper, it was reported that the financial number have relatively higher explanatory power over the adjustment numbers. The result gotten from this paper suggests that for the summary valuation inputs like assets, liability and the operating profitability, analysts should not change the adjusted numbers for reported numbers.
• The direct relevance of accounting information for credit default swap pricing, Batta, G. (2011). Journal of Business Finance & Accounting,38(910), 1096-1122. This study tests the direct importance of the accounting information for the pricing of the credit default swap (CDS). Before the research on the impact of accounting information for the pricing of the CDS, this pricing has however neglected to include either the output or the theoretically analyzed CDS pricing model or the credit rating of which they both should be in form of a stored credit relevance accounting information. This result notes the empirical findings which give a larger and indirect role for the accounting information in the pricing of the credit default swap (CDS) which helps to play a pertinent role in the discovery of the credit risk prices.
• Preparing financial graphics: principles to make your presentations more effective, Fulkerson, C. L., Pitman, M. K., & Frownfelter-Lohrke, C. (1999). The CPA Journal,69(6), 28. This paper explains the principles to adopt when analyzing the strategies employed to make financial presentations more effective. This study also designed the means of preparing financial graphics.
• Private company accounting: A concept whose time has come, Love, V. J. (2011). The CPA Journal,81(2), 16. This research paper basically explains the concept by which private companies adopt to explain their accounting method. It should be noted that the accounting method of private companies will be different from government accounting strategies. Hence, this paper helps to shed more light on the differences between these two sectors.
• Why are CFO insider trades more informative?, S. Knewtson, H., & R. Nofsinger, J. (2014). Managerial Finance,40(2), 157-175. The main aim of this paper is to test maybe the stronger information content of the chief financial officer (CFO) insider trading relative to that of the chief executive officers was as a result gotten from a different motive to exploit the information as regards the form that exists between outside stakeholders and executives or from differing financial acumen between the Chief Executive Officers and the Chief Financial Officers. These issues were studied in this paper and the way forward was explained as well.
• A Close Look at Valuation Methods, Price, J. (2011). Equity,25(3), 3. This research paper explains the valuation methods explored in the financial accounting sector. Rapt attention was placed on the valuation processes and these methods were totally explained in this paper.
• Evaluating corporate performance within the frame of the expert systems technology, Xidonas, P., Ergazakis, E., Ergazakis, K., Metaxiotis, K., & Psarras, J. (2009). International Journal of Data Mining, Modelling and Management,1(3), 261-290. According to this research thesis, evaluating corporate performance within the frame of the expert system technology was studied in this paper.