Corporate Governance and Accounting Conservatism in China* Donglin Xiaa and Song Zhub,** b School of Economics and Management, Tsinghua University, China School of Economics and Business Administration, Beijing Normal University, China a Abstract A principal-agent relationship exists among creditors, shareholders and management, and information asymmetry among them leads to asymmetric loss functions, which induces conservative accounting. This paper investigates the determinants of accounting
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answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar with, refer to the Student Guide for that particular week. Week One: Understanding the Meaning of Statistics Objective: Explain the role of statistics in business research and its application in business decision making. 1. When TV advertisements report, "2 out of 3 dentists surveyed indicated they would recommend
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Macroeconomics • Concerned with the big economic issues that determine you own economic well-being as well as that of your family and everyone. Each issue involves the overall economic performance of the nation rather than whether one particular individual earns more of less than another • Global economic crisis o Began in late 2007 has created enormous losses of income and jobs for millions. • Big three concepts o Unemployment rate • Higher the overall unemployment rate the harder it is for
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distribution. The conditional probability of an event A assuming that B has occurred, denoted ,equals The two faces of probability introduces a central ambiguity which has been around for 350 years and still leads to disagreements about when probabilities can be used. For example, if I throw a dice, look at the result but don't show it to you, what is the probability (for you) that it is a 6 In one interpretation it is still 1/6, since you don't know the result, but in another interpretation
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Electoral College is that each state received a certain number of electoral votes according to its population. All of which went to candidates who win the states popular vote. Each state is allocated a number of Electors equal to the number of its U.S Senators. It’s always two plus the number of its U.S Representatives. This could vary according to the size of each State’s population as determined in the census. There’s twenty-nine electoral votes in the states of Florida. President Obama won State
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debt. Weighted average cost of capital (WACC) is the average after tax cost of all the sources. It is calculated by multiplying the cost of each source of finance by the relevant weight and summing the products up. Formula For a company which has two sources of finance, namely equity and debt, WACC is calculated using the following formula: Cost of equity is calculated using different models for example dividend growth model and capital asset pricing model. Cost of debt is based on the yield
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Saving Function KM: The Multiplier Model - Principles of Macro - RIT - Dr. Jeffrey Burnette The Keynesian Model: The Multiplier Model Assumptions • Each market is analyzed on an aggregate scale (One interest rate, One type of labor, One type of output) Differences from the Classical Model • The Keynesian model does not assume that markets clear in the short-run. In fact, it believes that prices are sticky downward. That is, prices may not decrease to bring the market to equilibrium. This is
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1 Accounting- Information and measurement system that identifies records and communicates relevant information about a company’s business activities Accounting equation- equality involving a company’s assets liabilities and equity, assets equal liability plus equity/ aka balance sheet equation Assets- resources a business owns or controls that are expected to provide current and future benefits to the business Auditors- An individual who checks the accuracy, fairness, and general acceptability
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Midterm 1 Name____________________________________ Date____________________________________ 1 The net wealth of the aggregate economy is equal to the sum of A) all real assets. B) all financial assets. C) all physical assets. D) all real and financial assets. E) none of the above 2 Asset allocation refers to ____________. A) choosing which securities to hold based on their valuation B) investing only in "safe" securities C) the allocation of assets into broad asset classes
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revenue and total revenue is calculated when marginal revenue is equal to the change in total revenue divided by the change in quantity, when the change in quantity is equal to a single unit. Mathematically marginal revenue is calculated using the product rule formula of MR = d(TR)/dQ where MR equals marginal revenue, TR equals total Revenue, and Q equals quantity On the contrary, marginal cost is the cost incurred to create one additional unit. This would include for example the cost of additional
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