Jeffrey J. Quirin

A Fundamental Analysis Approach to Oil and Gas Firm Valuation

Most fundamental analysis studies have focused on fundamentals selected by a data-driven approach on large samples of firms from numerous industries. This paper reports the results of a fundamental analysis of a single industry, the US oil and gas exploration and production industry, using variables identified by industry financial analysts. The results demonstrate a significant relationship between a number of the fundamentals with both the market value of equity and cumulative stock return. The results also suggest that the fundamentals provide incremental information beyond earnings, change in earnings, and book value of equity when explaining equity values and stock returns. Copyright Blackwell Publishers Ltd 2000.

Using accounting equation analysis to teach the statement of cash flows in the first financial accounting course

Abstract Understanding the statement of cash flows requires that students have some knowledge of accrual-basis accounting. This means that coverage of the statement of cash flows is deferred until late in the introductory financial accounting course and related textbooks, a time when student motivation and retention may be waning. The timing of statement of cash flow coverage is unfortunate for two reasons. First, the statement of cash flows is an important topic that all business students need to understand. Second, most students understand cash flows at the start of their financial accounting class, so there is no reason to defer coverage of this topic. This paper describes a user-oriented, pedagogical approach to integrating the statement of cash flows throughout the first financial accounting course. The essence of this approach is the use of an expanded accounting equation with temporary cash accounts corresponding to the major categories on the statement of cash flows. Directly capturing cash flow information simplifies the preparation of the statement of cash flows.

Antecedents of organizational commitment: The role of perception of equity

The concept of organizational commitment has recently impacted the participative budgeting and employee performance streams of accounting research. Specifically, a series of studies by Nouri, Nouri and Parker have shown that an individuals level of organizational commitment negatively impacts budgetary slack and positively impacts employee performance (Nouri, 1994; Nouri & Parker, 1996a, Nouri & Parker, 1996b, Nouri & Parker, 1998). A related issue, which has seen little attention in accounting research, is the notion of what causes antecedes an individuals level of organizational commitment. The current study attempts to address this issue by investigating the relationship between an individuals perception of equity and organizational commitment. Using a cross-organizational design, measures of perceptions of pay and workload equity, organizational commitment, and self-rated performance were gathered from a sample of 105 employees from 15 organizations. In accordance with the studys hypotheses, results reveal that a significant portion of an individuals organizational commitment can be explained by his/her perception of pay equity and workload equity. Additional analysis reveals that perception of equity has a significant, direct effect on performance, but this effect is fully-mediated by organizational commitment.

A NOMOLOGICAL FRAMEWORK OF BUDGETARY PARTICIPATION AND PERFORMANCE: A STRUCTURAL EQUATION ANALYSIS APPROACH

This study extends Quirin et al. (2000) by incorporating equity theory (Adams, 1965) into a theoretical model of budgetary participation and performance. The study develops and tests a nomological framework of budgetary participation that includes two organizational constructs, budgetary participation and budget-based compensation, and three individual characteristics, perception of equity, organizational commitment, and employee performance. Measures of these constructs were gathered from a sample of 98 employees in 15 organizations. In accordance with the proposed theory and hypotheses, results reveal that budgetary participation is associated with increased use of budget-based compensation as well as higher levels of perception of equity and organizational commitment. Budget-based compensation and perception of equity, in turn, are also associated with increased levels of organizational commitment, while elevated commitment was related to higher performance. The results provide further insight into the beneficial aspects of budgetary participation. Specifically, the results indicate that budgetary participation is positively associated with perception of equity, which in turn increases organizational commitment and, ultimately, employee performance.