As a prelude to the discussion on theoretical perspective of CSR, this section focuses on the two distinct research approaches to CSR in the prior literature. Gray et al. (1995)[1] hold the view that the research in the field of CSR poles apart due to the inherent nature and certain conundrums in CSR for which includes; the lack of agreed theoretical perspective to research; the absence of systematic reporting by organizations and CSR evokes doubt about its legitimacy.
Saturday, June 4, 2011
Friday, April 15, 2011
Can the auditors predict the bankruptcy prior to its collapse? Review of Previous Literature
Despite the increasing concern on the auditors to reveal the going concern ability of the client, it would be apparent from the literature reviewed that in many cases corporate failure was not perceived by a going-concern modified opinion in the independent auditor’s report.
Tuesday, February 1, 2011
Use of Bankruptcy Prediction Models as an Auditing Tool
One of the best-known models for predicting corporate financial distress is the Altman’s Z-Score model (Altman, 1968, 1983, 1993). This model is constructed using linear relationship of financial ratios weighted by predefined coefficients. Initially the model was developed to assess the bankruptcy of publicly held manufacturers, but later it was re-estimated for private manufacturing, non-manufacturing and service companies. Therefore, the model is three folds: Z-model (original model); Z’-model (private firm model); Z’’-model (nonmanufacturing firm model). Eventually a firm is categorized based on its Z-score as non-bankrupt, bankrupt or gray area in each of the aforesaid three Z-score models.
Wednesday, January 19, 2011
Auditors' Responsibility - Disclosure of Corporate Collapse
Recent collapse of well-established business organizations around the world has intimidated the public investors to introduce new capital flows to the markets while some lose their investments. This chain of continuous corporate collapses had finally led to a global recession, threatening Sri Lankan companies to strive for their survival. Nowadays, the cost of bankruptcy of a single corporate has a fatal repercussion over the individual investors, other organizations and economy as a whole than in the past. Therefore, a mechanism of revealing the going concern ability of an organization prior to its collapse could avoid may pitfalls.
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As a prelude to the discussion on theoretical perspective of CSR, this section focuses on the two distinct research approaches to CSR in th...
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One of the best-known models for predicting corporate financial distress is the Altman’s Z-Score model (Altman, 1968, 1983, 1993). This mode...
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Despite the increasing concern on the auditors to reveal the going concern ability of the client, it would be apparent from the literature ...
Early Warning Signals of Corporate Collapse - Rats Desert the Sinking Ship
Rats desert the sinking ship is an old English proverb which is used to indicate that people start to bail out on a project or abandon co...