Parallel Session 4

Parallel Session 4

Friday 10 January 2020 from 09.30-11.00.

A new presentation starts every half hour if nothing else is stated. Open tabs to read abstracts. Click on venue name to go to an electronic map.

Accounting IV

Aud.A Session Chair: 

  • Tonny Stenheim: Earnings Quality in Family vs. Non-Family Private Firms - Evidence rom Specific Accruals

    Tonny Stenheim: Earnings Quality in Family vs. Non-Family Private Firms - Evidence rom Specific Accruals

    This study examines whether the reporting of impairment losses in private family firms differ from private non-family firms, and whether the reporting practices in family firms vary with CEO and board of directors characteristics. Family firms are likely to be more sensitive to reputational loss and threats to continued control and influence over the firm compared to non-family firms, suggesting a reluctance to report impairment losses in family firms as this will reveal poor performance. Family firms also differ in their ability to manage earnings. A family firm with a family CEO is likely to have more influence over the firm’s reporting decisions compared to a family firm without a family CEO. Also, a family firm that has some board members that are independent of the family, may be able to mitigate some of the family’s control over reporting decisions. Our results show that private family firms are less likely to report impairment losses, and report lower impairment losses compared to private non-family firms. We also provide some evidence that suggests that the reported impairment losses in non-family firms better reflect future economic fundamentals than impairment losses in family firms. Moreover, we document that private family firms with a family CEO report lower impairment losses than private family firms without a family CEO.  Finally, we show that the likelihood to report impairment losses and the impairment amount increases with board independence in private family firms.

  • Norvald Monsen: Ideelkameralistikk og statuskameralistikk: Et talleksempel

    Norvald Monsen: Ideelkameralistikk og statuskameralistikk: Et talleksempel

    Kameralregnskap i form av forvaltningskameralistikk (FKAM) er utviklet for å rapportere informasjon til bruk for demokratisk kontroll med offentlige skatteinntekter. Det er likevel noen interessante opp¬lysninger som mangler i FKAM. Derfor videreutvikles FKAM til to nye kameralregnskapsvarianter: Ideellkameralistikk (IKAM) og statuskameralistikk (SKAM).
     
    Denne videreutviklingen foreta s med utgangspunkt i et talleksempel, som brukes til å illustrere IKAM og SKAM. Avslutningsvis tilbys dette talleksemplet, som representerer IKAM og SKAM, som en mal som kan brukes ved utarbeidelse av informative offentlige regnskap, slik som kommuneregnskap.
  • Ellen M. Kulset og Kjell Magne Baksaas: Regnskapsestimater og straff - når er dårlige vurderinger straffbare?

    Ellen M. Kulset og Kjell Magne Baksaas: Regnskapsestimater og straff - når er dårlige vurderinger straffbare?

    Bestemmelsene om straff knyttet til overtredelser av regnskapsloven, har over tid gjennomgått betydelige endringer i innhold og ordlyd sammenlignet med bestemmelsene i Regnskapsloven 1977 og Straffeloven 1902. Mens det i Regnskapsloven (1977) og Straffeloven (1902) ble stilt krav til at overtredelser måtte innebære en vesentlig tilsidesettelse av kravene i loven for at de skulle være straffbare, er i dag enhver overtredelse av bestemmelsene i regnskapsloven straffbar (uten et eksplisitt vesentlighetskrav), jf. Straffeloven §§ 392-393, jf. Straffeloven § 23 så sant andre straffbarhetsvilkår er oppfylt, for eksempel lovgivingens krav til uaktsomhet. Denne utviklingen samsvarer med en generell samfunnstendens der stadig flere handlinger kriminaliseres (Kvam 2014).

    Vollan (2005) gjennomførte en grundig gjennomgang av regnskapslovens (1998) § 8-5 og straffelovens § 286 og konkluderte med at disse straffebudene ikke var i samsvar med legalitetsprinsippet når det gjelder krav til klarhet og forutsigbarhet. Et tema som ikke berøres i denne utredningen er hvordan man skal forstå begrepet regnskapsovertredelse i forbindelse med regnskapsposter som må estimeres. En rekke av bestemmelsene i regnskapsloven omhandler slike usikre størrelser, noe som innebærer at det ikke finnes fasitsvar for hvordan disse postene skal føres, og det er således problematisk å vurdere hvorvidt bestemmelsene er overtrådt. Bestemmelsene om straffbarhet i lovtekst og forarbeider definerer ikke begrepet regnskapsovertredelse og skiller ikke mellom ulike typer regnskapsovertredelser. Vi er ikke kjent med andre studier som har fokus på straffebestemmelsene i regnskapsloven, og dette er således et interessant tema for videre forskning.

     

    Hensikten med denne artikkelen er todelt: for det første ønsker vi å bidra til en bedre forståelse av regnskapsprodusentenes strafferettslige ansvar knyttet til den regnskapsmessige behandlingen av skjønnsbaserte regnskapsposter ved å foreta en juridisk fortolkning av de kravene som stilles for at en «dårlig» vurdering av en skjønnsmessig regnskapspost er straffbar med et særlig fokus på begrepet «regnskapsovertredelse».

     

    Ettersom lovgivningen på området favner relativt bredt og det dermed er «opp til påtalemyndigheten å ta stilling til hvilke overtredelser som bør bli gjenstand for strafforfølgning» (Ot. prp. 22 (2008-09), er hensikt nummer to med denne artikkelen å foreta en gjennomgang av rettspraksis for å fremskaffe en oversikt over hva som kjennetegner de bruddene på regnskapsloven som påtalemaktene har funnet det passende å påtale, med et særlig fokus på brudd som dreier seg om estimater. Artikkelen vil således bidra med kunnskap som bør være av interesse for både lovgiver og praktikere så vel som bedriftsledere og styremedlemmer.

Accounting & Digitalization

Aud.B Session Chair: Trond Bjørnenak

  • Andreas Ulfsten: Design challenges of data driven control: A case study of maitenance improvement in a global firm

    Andreas Ulfsten: Design challenges of data driven control: A case study of maitenance improvement in a global firm

    In this paper we argue that important issues can be learned about management control as we study its relations to information technologies influence on work practices. New information technology produce different understandings about what and how something can be modeled, and in that way also how it can be calculated and accounted for. Based on examples of new big data analytics (BDA) tools, the study shows how data driven technology creates a digital representation of reality that collide with control practices´ representations of reality and therefore fail to get legitimacy. The control representation focuses on giving transparency in the hierarchy which both gives voice and action to the manager while new technology focus on involvement and alignment horizontally in the organization. We argue that actors’ interpretation of managerial and corporate ambitions, expert judgement and existing structures of control challenge implementation of data driven control.

  • Terje Berg: The "modern" finance function and autonomy - the development of a digital controller

    Terje Berg: The "modern" finance function and autonomy - the development of a digital controller

    Purpose: Map the relationship between IT and controller autonomy in order to add knowledge about the development of the modern finance function.
    Design/methodology/approach: Survey among large Norwegian firms. Framed through the lens of contingency theory.
    Findings: The extent of autonomy correlates with influence on business decisions, something that is related to the access to non-financial information. Furthermore, there is a positive relationship between use of IT and innovative controls.
    Research limitations/implications: The usual disclaimers for surveys applies.
    Practical implications: If the controllers are expected to be involved in decision-making, they should be allocated autoonmy and access to non-financial data. If the use of innovative tools are expected, there is a strong relationship to IT-systems.
    Social implications (if applicable): N/A
    Originality/value: We show that the access to non-financial information can be significant to understanding controller autonomy. We also make the connection between innovative management accounting tools and IT-systems explicit. Also, we find some surprising evidence about the attitude towards technology such as artificial intelligence, big data and machine learning.
  • Roy-Ivar Andreassen: Socio-ideological control and vernacular accounting systems: Exploring a case of low-tech accounting in the high-tech banking sector

    Roy-Ivar Andreassen: Socio-ideological control and vernacular accounting systems: Exploring a case of low-tech accounting in the high-tech banking sector

    The paper explores the existence and function of informal and private accounting systems through a case study in a regional bank. While previous studies have conceptualised private and informal accounting systems as vernacular accounting systems (VAS), they have not explicitly addressed how control systems and information technology (IT) influence the use of VAS. Adversely to assumptions of IT leading to increased performativity measurement and tight control through central information systems as implied by management science theories, the case study explores how this might not be the situation. The use of socio-ideological control rather than technocratic control to ensure goal congruence can contribute to understand the prevalence of VAS in the case company.

Teams

Aud.C Session Chair: Vidar Schei

  • Malin Arve: Delegation in Teams

    Malin Arve: Delegation in Teams

    This paper considers delegation of a decision to a team of informed agents. It
    shows under what conditions delegation is optimal as well as to whom to delegate the formal decision-making right. The latter depends on a trade-of between 1) improved communication and better information in the team when the player with the decision-making rights is considered closer to the other agents' preferences and 2) the cost from
    distorted decisions due to biased and misaligned preferences.
  • Marius Jones: Don't calm down! Affect regulation and team learning in new ventures

    Marius Jones: Don't calm down! Affect regulation and team learning in new ventures

    Affect (mood and emotions) is both likely to emerge and influence outcomes in new ventures. Less, however, is known about how entrepreneurs and new venture teams manage mood and emotions as they work towards turning an idea into a profitable business. Through a multiple case study, this paper explores how individual entrepreneurs and new ventures deal with the presence of negative affect. Preliminary findings indicate that ventures where entrepreneurs are able to accept and speak openly about negative mood and emotions are able to generate increased team learning, compared to ventures where entrepreneurs supress and hide negative affect.

Finance IV

PC Lab 1  Session Chair: Jøril Mæland

  • Nataliya Gerasimova: And the AR goes to… Shock to Brand Capital: Evidence from the Oscars

    Nataliya Gerasimova: And the AR goes to… Shock to Brand Capital: Evidence from the Oscars

    We identify the effect of changes in the brand capital on stock market performance. Using hand-collected data on the red carpet outfits during the Academy Awards ceremonies, we find that companies providing outfits to nominees experience a positive stock market performance with respect to a control group of comparables. This outperformance is unlikely to be attributable to differential risk, while Google search trends suggest the Academy Awards ceremonies have a positive impact on investor attention.

    DISCUSSANT: Espen Sirnes

  • Maria Lavrutich: "Deep pockets" in a stochastic production game

    Maria Lavrutich: "Deep pockets" in a stochastic production game

    We analyze a dynamic Cournot equilibrium in a continuous time stochastic game between capital constrained firms. We depart from the standard literature by allowing the firms to choose both the production strategy and the dividend policy. When profits evolve stochastically, a negative liquidity shock can lead to bankruptcy. In this setting the financially strong firm may have an incentive to engage in aggressive competition that could drive the opponent out of the market. We focus on the link between predation incentives and the dividends policy and find that the presence of product market competition induces fewer dividend payouts. We also find that predatory behavior only occurs when the prey is not distributing any dividends. When both firms pay out dividends it is optimal to be completely myopic in their production strategy, i.e. to choose the production plan that maximizes their deterministic period profits.

  • Per B. Solibakke: Stochastic Volatility Models Predictive Relevance for Equity Markets

    Per B. Solibakke: Stochastic Volatility Models Predictive Relevance for Equity Markets

    This paper builds and implements multifactor stochastic volatility models where the main objective is step ahead volatility prediction and to describe its relevance for the equity markets. The paper outlines stylised facts from the volatility literature showing density tails, persistence, mean reversion, asymmetry and long memory, all contributing to systematic data dependencies. As a by-product of the multifactor stochastic volatility model estimation, a long-simulated realization of the state vectors is available. The realization establishes a functional form of the conditional distribution, which is evaluated on observed data convenient for step ahead predictions. The paper uses European equity for relevance arguments and illustrational prediction purposes. Multifactor SV models empower volatility visibility and predictability enriching the amount of information available for equity market participants.

Marketing & Management

PC Lab 2 Session Chair: Peter Schou

  • Natalia Mæhle & Frode Skjeret: Purchase intentions and willingness to pay for novel foods: The case of microalgae-based bread and butter

    Natalia Mæhle & Frode Skjeret: Purchase intentions and willingness to pay for novel foods: The case of microalgae-based bread and butter

    The current study looks on purchase intentions and willingness to pay for microalgae-based bread and beer. Compared to conventional food, the products with microalgae ingredients – microscopic photosynthetic organisms found in both marine and freshwater environments – have health benefits and more environmentally friendly profile (due to using low cost carbon sources for microalgae production). However, consumers may be skeptical to microalgae food innovations due to potential perceived risks and negative associations (e.g., perceived bad taste). To explore the marketing potential of the microalgae-based foods, we conducted a survey with a Scandinavian consumer panel (380 females, 631 males). Respondents indicated their attitudes, purchase intentions and willingness to pay for such products and filled out several scales: attitude towards innovation in food, food neophobia, general health interest and environmental concern. A structural equation modelling (SEM) was used to identify the determinants of purchase intentions and willingness to pay for microalgae-based bread and beer.

  • Deodat E Mwesiumo: Public purchasers' attitude towards public procurement of innovations: Role of organizational support, anticipated benefits, and incentives

    Deodat E Mwesiumo: Public purchasers' attitude towards public procurement of innovations: Role of organizational support, anticipated benefits, and incentives

    Public demand is now widely recognized as an important driver for the development and diffusion of innovations. Thus, scholars argue that it can be used to address grand societal challenges such as global warming and public health. The present study has surveyed 114 public purchasers in Norway to determine the effect of organizational support and incentives on the public purchaser’s attitude towards public procurement of innovations (PPoI). The results show that organization support is significantly associated with increased perceived benefits of PPoI and in turn, increased level of perceived benefits of PPoI is significantly associated with positive attitude towards PPoI. However, the direct effect of organization support on attitude towards PPoI is not signicant. Interestingly, perceived level of incentives for PPoI is negatively associated with positive attitude towards PPoI while perceived level of incentives for PPoI significantly weakens the effect of perceived benefits of PPoI  on ttitude towards PPoI.