Bernard Morard

The contractual and value relevance of reported earnings in a dividend-focused environment

This study investigates the relevance of reported earnings in the context of an institutional environment, i.e., Switzerland, in which investors focus on dividends. In conjunction with a dividend focus, the financial reporting environment faced by Swiss firms provides their managers with more accounting discretion than managers of Anglo-Saxon firms typically have. From a contractual perspective, dividendbased earnings management is expected since Swiss corporate law explicitly states that dividends, which must be voted on by stockholders, are to be based upon a firms reported earnings. From a value perspective, thin trading conditions and a long-term investment horizon are expected to increase the importance of dividend payments and to influence the informativeness of reported earnings. Results indicate that Swiss managers do engage in dividend-based earnings management, that earnings quality signals are used by managers to voluntarily constrain their accounting choices and that the value relevance of earnings is conditional upon dividend payments.

The reaction of managers and financial analysts in the US and Canada towards current cost information: a positive approach

This paper1 examines the usefulness of current cost data in respect of two user groups, managers and financial analysts. The opinions expressed by managers concerning accounting procedures (specifi...

DEFINING A REALISTIC BALANCED SCORECARD - A BUILDING PROCESS TECHNIQUE

This paper examines the connection between structural equation modeling and Balanced Scorecard in a Swiss non-profit organization. Using financial and non- financial data taken directly from the establishment, the paper puts forward a rational construction and analysis of Balanced Scorecard by choosing the right indicators for the right strategic perspectives. This choice is made by implementing a series of Partial Least Squares in the proposed model. In addition, the method determines the cause-and-effect chain defined by Kaplan and Norton as: the measures of organizational learning and growth will impact the measures of internal business processes which in turn will affect the measures of the customer perspective which, finally, will shape the financial measures. It will be observed that the Kaplan and Norton model of Balanced Scorecard is different from the findings in this paper, a case somehow too general to cope with todays complex market environment. Subsequent to this, the study suggests a general approach to build step-by-step a realistic Balanced Scorecard rooted in the actual companys strategy. Finally, the proposed approach will be applied and evidenced in a detailed real case of a Swiss non-profit organization. (Abstract)