Rick Stephan Hayes

Men and Women: Equal in Accounting?

Abstract This article reports results of a study of differences between men and women enrolled in a college-level principles of accounting course. Factors previously found to be correlated with successful performance on accounting exams were compared by gender; no significant differences for exam-related variables were found. Nor were there any significant differences observed when performance on exams and grade point average were compared by gender. Analysis through a psychological testing instrument revealed some significant differences: Males saw themselves as confident, assertive, and self-sufficient, whereas females saw themselves as more sensitive to criticism, taking things personally, and more inwardly oriented. We concluded that the genders performed equally well in accounting; however, the psychological study raised the question of whether they would perform similarly in business environments.

The negative effect of an accounting standard on employee welfare

Investigates the negative effect on employee welfare caused by economic decisions taken by corporate managements which they attribute to the adoption of an accounting standard, focusing on the case of McDonnell Douglas Corporation, which ended health‐care benefits for non‐union employees as a result of adopting the Financial Accounting Standards Board′s Statement 106 (FASB 106). It is estimated that the adoption of FASB 106 caused

The Enron fallout: Was Enron an accounting failure?

148 billion in charges to earnings to be recorded by companies in the Standard & Poor′s 500 Index. Despite the large negative effect on earnings, FASB 106 had little or no impact on the economic condition of the affected firms. Nevertheless, managements have taken economic actions that have negatively affected employee welfare, and these actions have been attributed to FASB 106. Some of the hardest hit are employees at older industrial companies with mature workforces hired during the 1950s and 1960s. Some companies ended retirement health plans abruptly, while others required ...

Reflecting form over substance: the case of Enron Corp

This paper traces the development of Enron Corp. from a regulated natural gas distribution company to a worldwide energy trading company to its ultimate demise in bankruptcy in December 2001. The paper examines whether Enron should be viewed as an accounting failure, with investors and creditors being severely misled by false financial statements, or whether it was a business failure that was obscured by accounting practices that strained the limits of credibility. It is the contention of this paper that astute financial analysis would have revealed the instability of the Enron business model, thereby alerting investors and creditors to the lack of credit worthiness of the company. At the same time, the paper argues that had there been an appropriate level of transparency in the financial statements, investors and creditors would have been provided with a more realistic view of the company’s financial position and its results of operations, thereby facilitating their ability to assess the viability of the company and avoid their bankruptcy losses.