Hamid Pourjalali

Improving activities and decreasing costs of logistics in hospitals: a comparison of U.S. and French hospitals

Abstract This paper investigates logistic (or supply-chain management) differences between large hospitals in the U.S. and France. Given that logistics and supply-chain management have been considered important aspects in hospital management, this paper explores the possible reasons for differences among hospitals in the U.S. and France. The differences are drawn from variables, such as (1) the extent of responsibility given to the logistics department with respect to items, such as purchasing, physical supplying, receiving, inventory management, internal distribution to medical departments, and management information systems; (2) the manner of distribution of supplies (such as central warehouse vs. direct vendor distribution); (3) the amount or the volume of medicine distributed; (4) the degree of partnerships between the hospitals and their vendors and other hospitals; and (5) the past efforts of logistics departments in improving the supply-chain management and future plans for improving the logistic functions. The results provide evidence that U.S. hospitals have been able to reduce the supplies inventory level to a larger extent than their counterparts in France; the French hospitals, however, have a higher level of intention to do so. Both groups support current and future partnerships with other hospitals and suppliers of goods and services. The ability of logistic management to reduce costs associated with medical supplies signals that supplies inventory reduction is possible in even very critical industries (such as medicine). Consequently, the results of this study are relevant to the management of hospitals (and companies), which intend to improve their logistic functions and accounting information systems to decrease the costs associated with inventory. In this paper, we have advocated that Just-in-Time (JIT) philosophy to be applied to hospitals in inventory cost reduction. Contemporary management methods continue to emerge and the healthcare industry needs to continue incorporating these new developments in its operations so it can compete in a market that is more competitive than ever.

Earnings management in Japanese companies

Abstract This study examines choices of accounting accruals using a large sample of Japanese companies, which operate in an environment that is generally regarded as being rather different from the United States. We find that debt-to-equity and asset hypotheses hold in the Japanese environment only for the years after the market crash of 1990. Prior to the crash, the number of employees seems to capture the political (or economic) pressure. Similar to their U.S. counterparts, managers of Japanese companies chose income-increasing accounting accruals to increase their bonus and increase the amount of outside funding. The ownership effect was also observed on the choice of accounting accruals. Those companies that have higher degrees of ownerships by trust companies and stock brokers have incentives to choose income-increasing accruals to provide a more positive picture of the firm. Since this incentive does not exist for ownership by financial institutions, the opposite effect was observed. The effect of ownership by individual investors, management, or corporations on the choice of income-increasing accruals was opposite to that hypothesized in 1989. These opposite-to-expected effects were not present after the Japanese market crash. The stock market crash of 1990 appears to have had a profound effect on the choices of accounting accruals.

Effect of Cultural Environment on Earnings Manipulation: A Five Asia-Pacific Country Analysis

This study examines the possible impact of cross‐country differences in culture on earnings management or choices of accounting accruals in five Asia‐Pacific countries: Australia, Japan, Hong Kong, Malaysia and Singapore. A set of traditional and cultural variables were used to test the hypotheses developed in the paper. The results indicate that both the traditional variables (size and debt‐equity ratio) and cultural variables (individualism, power distance, uncertainty avoidance and long‐term social values) can explain the choices of accounting accruals in different countries. This paper is the first that links earnings management to cultural values and indirectly provides evidence that accounting values (as defined by Gray, 1998) affect earnings management.

Effect of Cultural Environmental and Accounting Regulation on Earnings Management: A Multiple Year-Country Analysis

We analyze the effect of cultural values and disclosure and earnings management scores on earnings management in 27 countries. The results indicate that debt-to-equity ratio (total assets) affects the earnings management upwards (downwards). These results are consistent with prior studies. Uncertainty Avoidance also affects the direction of earnings management downwards. Other cultural values, such as Individualism, Power Distance, and Masculinity, have a significant effect on the magnitude of earnings management. The results indicate that the higher the values of these variables, the higher the magnitude of earnings management. Furthermore, Disclosure Index has a significant effect on the magnitude of earnings management.

Economic Reasons for Reporting Property, Plant, and Equipment at Fair Market Value by Foreign Cross-Listed Firms in the United States:

This paper attempts to provide some preliminary evidence of possible implementation outcome of the use of fair value option for non-financial assets in the U.S. The characteristics of foreign-listed firms in the U.S. Stock Exchanges who use fair value (revaluation) option for measurement and reporting of property, plant and equipment (PPE) are examined. These firms already use the standard without being required to provide reconciliation to the U.S. GAAP. But only 38 of 232 firms choose to report their assets at fair value. As such, the revaluation model is not very popular among the cross-listed firms and the majority of these firms do not choose the option. We test for differences between adopters and non-adopters using leverage ratios, the intensity of PPE, firm size in terms of sales, market value, and total assets and profitability ratios. Our results show that those who adopt the fair value model for PPE (revaluers) have fundamentally different economic characteristics. We find that larger firms with higher value of PPE, and a higher ratio of the total amount of property, plant, and equipment to total assets are more likely to revalue their long-term assets. Our Probit and Factor analyses further show that larger firms with higher debt ratios (e.g., debt-to-equity), are more likely to adopt the PPE revaluation model.

Does International Accounting Standard No. 27 Improve Investment Efficiency

We examine how the adoption of International Accounting Standard No. 27 (hereafter, IAS 27) consolidation rules affects firm-level investment efficiency. IAS 27, effective in Taiwan for fiscal years beginning after 2005, defines the “control” criteria for consolidated entities as majority control rights rather than majority financial ownership. IAS 27 discourages firms’ ability to manage earnings through the use of unconsolidated entities and reduces information asymmetry between managers and shareholders. Consistent with the standard’s intended objectives, we document that firms experience a significant increase in investment efficiency after adopting IAS 27. Firms subject to overinvestment (underinvestment) are more likely to reduce (increase) investment toward a more optimal level after IAS 27 adoption. We also find that foreign investors increase their shareholdings in Taiwanese firms after the adoption of IAS 27.

Management accounting information systems: a case of a developing country: Vietnam

This study discusses the relationship between management accounting information systems and the relevance and usefulness of those systems in hospitals in Vietnam. In particular, it investigates how hospitals have improved/intend to improve their accounting activities and how they have tried to implement known managerial (accounting) systems to improve efficiencies. The study shows the influence of management accounting in hospitals in an environment that is rapidly changing from centrally governed to a more open capital market environment. Based on survey data from 53 hospitals in Hanoi and surrounding provinces, the study reports whether those environmental changes have resulted in actual or planned changes in management accounting activities. Our results show that in response to environmental and regulatory changes, Vietnamese hospitals have improved accounting functions and are planning to continue their development further. However, the improvement is not always in-line with what is expected in western countries.