Helen Kang

Measuring the performance of IT services: An assessment of SERVQUAL

Abstract As many organisations search for ways to compete more effectively in todays ever-growing markets, information technology (IT) has become quite critical in organisational control due to the enormous size of its expenditure. As a result, managers have faced growing pressure to measure the performance of IT departments. However, the applicability of traditional performance measures in an IT setting is at best questionable and, thus, there is an urgent need for alternative measurement systems. One such measure is service quality as perceived by customers of IT service. This study develops a conceptual “gaps model” of IT service quality, which identifies seven gaps between customers and suppliers of IT service. Furthermore, the study examines the applicability of SERVQUAL, perhaps the most popular standardised survey instrument designed to measure service quality, as the measure of IT service quality.

Information Asymmetry of Fair Value Accounting and Loan Loss Provisions During the Global Financial Crisis

This paper investigates whether U.S. banks’ assets and liabilities, reported using Fair Value Accounting (FVA) under SFAS 157 Fair Value Measurement, are associated with information asymmetry among equity investors during the 2008 Global Financial Crisis. Using bid-ask spread as a proxy for information asymmetry, and controlling for bank size, profitability, default risk and capital adequacy, we find that bid-ask spread is positively and significantly associated with total fair value net assets and net assets measured using inputs of fair value Level 1, Level 2, and Level 3, as specified in SFAS 157. We also examine whether banks’ loan loss provisions are associated with information asymmetry, since the U.S. Securities and Exchange Commission (2008) has alleged that large loan loss provisions, determined based on managerial internal information and discretion, played a significant role in bank failures in the Global Financial Crisis. We find that loan loss provisions are also positively and significantly associated with bid-ask spread. In summary, our findings show that both FVA and loan loss provisions are associated with information asymmetry among equity investors during the 2008 Global Financial Crisis, with loan loss provisions being the stronger of the two effects.

Corporate Financial Reporting in the BRIC Economies: A Comparative International Analysis of Segment Disclosure Practices

Abstract Purpose Our aim is to investigate the quality of segment disclosures by companies in Brazil, Russia, India and China (known as the BRIC economies) that are expanding their operations internationally, and in so doing to assess the extent of convergence with globally recognized standards, that is, International Financial Reporting Standards (IFRS). Methodology We examine the financial statements and narrative information provided by the largest BRIC companies. We carry out a content analysis and also apply multivariate regression techniques to evaluate if key firm-specific factors are associated with the number of operating and geographic segments disclosed. Findings Our results show that the extent of disclosure by the majority of BRIC companies is of a high standard taking into account both quantitative and narrative data. The disclosure of operating segments is commonly based on business lines though most companies also report additional geographic information. As expected, operating segment disclosures are positively associated with the extent of internationalization (percentage of foreign sales) and majority state ownership. Limitations We have examined only the largest companies in each BRIC country and so there are limitations regarding the generalizability of our results. Future research could usefully examine the practices of a wider range of companies within each of the BRIC countries. This could also be extended to a study of disclosure behaviour in other emerging economies. Originality/value Our study provides new evidence concerning the quality of corporate financial reporting in the BRIC economies with special reference to a comparative international analysis of the segment disclosure practices of major BRIC companies expanding internationally.