10.18639/MERJ.2015.01.159412
Original Research Article
Aug 28, 2015
The purpose of this manuscript is to shed light on problems associated with lost sales and the incurring of cost associated with lost sales. An investigation is made to determine if seasonality in sales and lost sales have effects on the efficient operations of supply chains. Optimization is always a goal of management supply chains, but cost increases due to insufficient inventory, low-quality product and the like lead to customers not returning. These are lost sales that occur for many reasons. We study a data set to determine if the ignoring of time series component also has an effect on the variation in lost sales. If so, can we measure the magnitude of the effects of seasonal variation in lost sales, and what are their consequences?
10.18639/MERJ.2014.01.30309
Original Research Article
Nov 12, 2013
Most companies listed on the Standard & Poor’s 500 (S&P 500) index have smoothed reported earnings since the 1990s inspiring questions from regulators about the accuracy of financial statements. In 2002, the Sarbanes- Oxley Act (SOX) was issued to eradicate earnings management activities and improve transparency in financial reporting. Although many studies have been conducted to evaluate changes in reporting requirements, much less is known about the effectiveness of these regulations on earning smoothing with discretionary accruals (DA). Accordingly, this study was an investigation of DA from 2002 to 2011. In addition, this study included an evaluation of DA before and after the financial crisis of 2008. This study is a quasi-experimental research design where 330 observations from the U.S. financial industry segment were used for the analysis. The Modified Jones model was used to separate DA and repeated measures analyses of variance were used to assess differences in levels before and after the financial crisis of 2008. The findings suggest DA activities are decreasing but represent over 50% of total net accruals (TNA) for all years. Improved financial regulation is needed. The study contributes to positive social change by providing regulators and investors with new information about accruals for income conservative firms by segmenting DA within the financial industry segment.
