Detecting Earnings Management Using Neural Networks

Detecting Earnings Management Using Neural Networks. Trying to balance between relevant and reliable accounting data, generally accepted accounting principles (GAAP) allow, to some extent, the company management to use their judgment and to make subjective assessments when preparing financial statements. The opportunistic use of the discretion in financial reporting is called earnings management. There have been a considerable number of suggestions of methods for detecting accrual based earnings management. A majority of these methods are based on linear regression. The problem with using linear regression is that a linear relationship between the dependent variable and the independent variables must be assumed. However, previous research has shown that the relationship between accruals and some of the explanatory variables, such as company performance, is non-linear. An alternative to linear regression, which can handle non-linear relationships, is neural networks. The type of neural network used in this study is the feed-forward back-propagation neural network. Three neural network-based models are compared with four commonly used linear regression-based earnings management detection models. All seven models are based on the earnings management detection model presented by Jones (1991). The performance of the models is assessed in three steps. First, a random data set of companies is used. Second, the discretionary accruals from the random data set are ranked according to six different variables. The discretionary accruals in the highest and lowest quartiles for these six variables are then compared. Third, a data set containing simulated earnings management is used. Both expense and revenue manipulation ranging between -5% and 5% of lagged total assets is simulated. Furthermore, two neural network-based models and two linear regression-based models are used with a data set containing financial statement data from 110 failed companies. Overall, the results show that the linear regression-based models, except for the model using a piecewise linear approach, produce biased estimates of discretionary accruals. The neural network-based model with the original Jones model variables and the neural network-based model augmented with ROA as an independent variable, however, perform well in all three steps. Especially in the second step, where the highest and lowest quartiles of ranked discretionary accruals are examined, the neural network-based model augmented with ROA as an independent variable outperforms the other models.

From Creative Ideas to New Emerging Ventures: Entrepreneurial Processes among Finnish Design Entrepreneurs

This study focuses on self-employed industrial designers and how they emerge new venture ideas. More specifically, this study strives to determine what design entrepreneurs do when they create new venture ideas, how venture ideas are nurtured into being, and how the processes are organized to bring such ideas to the market in the given industrial context. In contemporary times when the concern for the creative class is peaking, the research and business communities need more insight of the kind that this study provides, namely how professionals may contribute to their entrepreneurial processes and other agents’ business processes. On the one hand, the interviews underlying this study suggest that design entrepreneurs may act as reactive service providers who are appointed by producers or marketing parties to generate product-related ideas on their behalf. On the other hand, the interviews suggest that proactive behaviour that aims on generating own venture ideas, may force design entrepreneurs to take considerable responsibility in organizing their entrepreneurial processes. Another option is that they strive to bring venture ideas to the market in collaboration, or by passing these to other agents’ product development processes. Design entrepreneurs’ venture ideas typically emerge from design related starting points and observations. Product developers are mainly engaged with creating their own ideas, whereas service providers refer mainly to the development of other agents’ venture ideas. In contrast with design entrepreneurs, external actors commonly emphasize customer demand as their primary source for new venture ideas, as well as development of these in close interaction with available means of production and marketing. Consequently, design entrepreneurs need to address market demand since without sales their venture ideas may as well be classified as art. In case, they want to experiment with creative ideas, then there should be another source of income to support this typically uncertain and extensive process. Currently, it appears like a lot of good venture ideas and resources are being wasted, when venture ideas do not suite available production or business procedures. Sufficient communication between design entrepreneurs and other agents would assist all parties in developing production efficient and distributable venture ideas. Overall, the findings suggest that design entrepreneurs are often involved simultaneously in several processes that aim at emerging new product related ventures. Consequently, design entrepreneurship is conceptualized in this study as a dual process. This implies that design entrepreneurs can simultaneously be in charge of their entrepreneurial processes, as they operate as resources in other agents’ business processes. The interconnection between activities and agents suggests that these kinds of processes tend to be both complex and multifaceted to their nature.

Samarbete mellan konkurrenter - en undersökning av österbottniska sm-företag

Under senare tid har förekomsten av samarbete mellan konkurrerande sm-företag ökat. Forskningen kring ämnet har dock bedrivits i mindre skala, framför allt om man beaktar finländska (nordiska) förhållanden. Syftet med denna undersökning är att kartlägga förekomsten av samarbete mellan konkurrerande sm-företag i Österbotten (Finland), samt beskriva dessa. Gällande demografiska variabler jämförs dessa företag även med sm-företag som inte samarbetar. Data insamlades genom en enkät utskickad i november 2001 till 345 sm-företag i Österbotten. Svarsprocenten var 35.1. Av de respondenter som besvarade enkäten, var 47.9 procent involverade i ett eller flera samarbeten med ett eller flera företag som var deras konkurrenter. Samarbete mellan konkurrenter är således inte ett ovanligt fenomen, utan innefattar allt från informella, operativa samarbeten till formella, strategiskt viktiga samarbeten. Samarbete inom produktion var den mest vanligt förekommande formen av samarbete. Partnern kom från Finland, även om målmarknaderna för samarbetet fanns både i Finland och i utlandet. Denna undersökning kunde inte identifiera någon större skillnad mellan de sm-företag som samarbetade med konkurrenter och de sm-företag som inte samarbetade. Det intressanta är således att det inte verkar finnas några skillnader vad gäller ålder, omsättning, omsättningsökning, underleverans- och exportverksamhet mellan de samarbetande och de icke samarbetande företagen. Skillnaderna bör således sökas i andra variabler. Den enda signifikanta skillnaden kunde upptäckas i upplevelsen av konkurrens. Tidigare forskning har identifierat att osäkerhet i konkurrensen är ett incitament till att börja samarbeta med konkurrenter. Denna undersökning förstärker detta antagande. De samarbetande företagen upplevde att konkurrensen var hårdare än de icke samarbetande företagen. Bland de samarbetande företagen var det speciellt de mindre (med en personalstyrka mellan 10 och 50 arbetstagare) som upplevde att konkurrensen var hård. Undersökningen har finansierats med stipendiemedel från Sparbanksstiftelsen i Vasa och Handlande Gustav Svanljungs fond.

Hyveiden harjoittaminen : edellytykset ja esteet

In the first half of the 20th century, most moral philosophers took the concept of virtue to be secondary to moral principles or emotions, though in various and mutually conflicting ways. In the early 1960s interest in the virtues was restored by the analytic philosophers Elizabeth Anscombe and Georg Henrik von Wright, the younger colleagues and friends of the late Wittgenstein. Later, Alasdair MacIntyre became a leading virtue ethicist. In 1981, MacIntyre introduced in After Virtue the concept of practices, which he based on the Aristotelian distinction between praxis and poiesis. This dissertation examines MacIntyre s characterization of the interconnectedness between practices and virtues, especially in relation to skills, education, and certain emotions. The primary position of the virtues is defended against the tendency in modern moral philosophy to overemphasize the role either of principles and rules or of emotions. The view according to which rational action and acting according to the virtues is best conceptualized as following rules or principles is criticized by arguments that are grounded by some Wittgensteinian observations, and that can be characterized as transcendental. Even if the virtues cannot be defined by, and are not based entirely on, emotions, the role of certain emotions on the learning and education of skills and virtues are studied more carefully than by MacIntyre. In the cases of resentment, indignation, and shame, the analysis of Peter Strawson is utilized, and in the case of regret, the analysis of Bernard Williams. Williams analysis of regret and moral conflict concludes in a kind of antirealism, which this study criticizes. Where education of practices and skills and the related reactive emotions are examined as conditions of learning and practicing the virtues, institutions and ideologies are examined as obstacles and threats to the virtues. This theme is studied through Karl Marx s conception of alienation and Karl Polanyi s historical and sociological research concerning the great transformation . The study includes six Finnish-published articles carrying the titles Our negative attitudes towards other persons , Authority and upbringing , Moral conflicts, regret and ethical realism , Practices and institutions , Doing justice as condition to communal action: a transcendental argument for justice as virtue , and Alienation from practices in capitalist society: Alasdair MacIntyre s Marxist Aristotelianism . The introductory essay sums up the themes of the articles and presents some central issues of virtue ethics by relating the classical Socratic questions to Aristotelian practical philosophy, as well as to current controversies in metaethics and moral psychology.

Medieberättelser om den politiska retoriken om invandring - Hur konstrueras vår bild av invandring genom nyhetsrapportering?

I min pro gradu-avhandling undersöker jag hur media bidrar till att konstruera bilden av invandring till Finland. Mitt material består av tre nationella tidningar, varav Helsingin Sanomat och Huvudstadsbladet representerar dagstidningar och Iltalehti kvällspressen. Bakgrunden för undersökningen är en tre månaders period under vintern 2008-2009, då invandring låg högt på den politiska agendan. Under denna period skärptes den politiska retoriken mot invandring. Detta tillskrivs främst sannfinländarnas valframgång i kommunalvalet hösten 2008. Materialet består av s.k. hårda nyheter om invandring från tidningarnas inrikessidor samt åsiktsjournalistik i form av ledare och kolumner. Tidigare forskning i medierapportering om invandring och den finländska politiska debatten om invandring utgör den teoretiska bakgrunden för avhandlingen. Långvariga kartläggningsprojekt av medierapporteringen om invandring har utförts av Centret för forskning om etniska relationer och nationalism, gällande finlandssvenska tidningar (se Haavisto 2007) och av Journalismin tutkimuskeskus, gällande finskspråkiga tidningar (se Raittila & Vehmas 2005). Dessa utgör bakgrundskunskap som jag bygger vidare på. Andra viktiga källor är Kaarina Horstis (2005) avhandling, som handlar om medierapporteringen om asylsökande och mångkulturalism och Outi Lepolas (2008) avhandling gällande riksdagsdebatter om invandring och mångkulturalism på 1990-talet. I analysen använder jag kritisk diskursanalys, men tar inslag ur ramanalys och retorikanalys. Ett centralt begrepp i min avhandling är nyhetsgenre och jag undersöker hur nyhetens konventioner påverkar sättet på vilket frågor om invandring presenteras. Media bygger upp olika tolkningar av den sociala verkligheten genom att beskriva berättelser. Jag analyserar rapporteringen av den politiska debatten ur detta perspektiv och ser på vilka talarpositioner ges åt de olika politiska aktörerna i debatten. I rapporteringen om invandrargruppers ankomst till Finland var en krisinramning dominerande. Genom negativa metaforer konstrueras invandring som ett hot mot det finska samhället. Frågan om asylsökande, framom andra invandrargrupper, får mycket utrymme i tidningarna och bidrar till att rama in diskussionen om invandring i stort. I rapporteringen om den politiska debatten från perioden förekommer tillspetsad retorik mot invandring också från politiker ur de stora partierna. Genom denna retorik konstruerar man invandring som ett hot. Denna retorik tillhör den invandrarkritiska diskursen. Andra diskurser genom vilka man behandlar invandring i materialet är den arbetsrelaterade diskursen och den mångkulturella diskursen. Argument som stödjer sig mot dessa diskurser är dock mycket färre och hamnar i skymundan av den invandrarkritiska diskursen.

Formale Aspekte dreier finnischsprachiger Untertitelungsversionen des Films Das Leben der Anderen und bei den Untertitelungen angewandte Übersetzungsstrategien

Työssä tutkitaan yhtäältä saksankielisen elokuvan Muiden elämä ( Das Leben der Anderen ) kolmen suomenkielisen tekstitysversion tekstityksen muotoseikkoja, kuten välimerkkien käyttöä, repliikki- ja rivijakoa, ja toisaalta tekstityksen sisältöseikkoja, joita tarkastellaan tekstityksessä käytettävien käännösstrategioiden avulla. Tutkielmassa tarkastellaan, ovatko tekstityksissä käytetyt muotoseikat konventioiden mukaisia ja minkälaisia käännösstrategioita tekstityksissä on käytetty sekä johtaako tietyn käännösstrategian käyttö merkityksen muutoksiin ja kaventumisiin tekstityksessä. Tutkielman aineistona on elokuva Muiden elämä ja sen kolme suomenkielistä tekstitystä: elokuvateattereissa esitetty versio, DVD-tekstitys ja televisiossa esitetty versio. Hypoteesina oli, että kaikkien versioiden muotoseikat ovat konventioiden mukaisia ja että versioilla on eroavuuksia ruututekstien määrässä ja repliikkijaossa. Lisäksi oletettiin, että tietyn käännösstrategian käytön ja merkityksen muutoksien välillä on yhteys, niin että merkityksen muutoksia esiintyy eniten silloin, kun kaikkea sanottua ei voida kääntää. Tutkielman teoriataustassa esitellään aluksi lyhyesti av-kääntämisen muita lajeja, kuten ns. dubbausta eli jälkiäänitystä, selostusta ja voice-overia, jonka jälkeen syvennytään tekstityksen teoriaan, tekstityksen muotoseikkoihin ja konventioihin sekä tekstityksen käännösstrategioihin. Tekstityksen sisältöseikkojen analyysin viitekehyksenä ovat Henrik Gottliebin (1994, 1997) kymmenen käännösstrategiaa: lisäys (engl. expansion), para-fraasi (paraphrase), suora käännös (transfer), imitaatio (imitation), transkriptio (transcription), siirtäminen (dislocation), tiivistäminen (condensation), lyhentäminen (decimation), poisjättäminen (deletion) ja resignaatio (resignation). Tutkielmassa analysoitiin kaikkien tekstitysversioiden muotoseikat. Tekstityksen sisältöseikkojen tutkimuksessa jokainen dialogin lause tai sivulause analysoitiin omana verbaalisena segmenttinään. Yhteensä analysoitiin 1311 verbaalista segmenttiä ja tutkittiin, mitä käännösstrategiaa missäkin tekstitysversiossa oli missäkin osakäännöksessä käytetty, sekä tarkasteltiin, muuttuuko repliikissä merkitys alkutekstiin verrattuna. Strategiat kuvataan ja niiden käyttöä valaistaan esimerkkien avulla. Tulokset ovat hypoteesia tukevia: Tutkielmassa havaittiin, että kaikkien tekstitysversioiden muotoseikat ovat suurimmalta osin konventioiden mukaisia. Eroja oli havaittavissa tavuviivan, pilkun ja kursiivin käytössä. Versiot eroavat myös ruututekstien määrässä: elokuvaversiossa on eniten ruututekstejä (1091), vaikka siinä on vähiten sanoja (3968); DVD-tekstityksessä on 876 ruututekstiä ja 4278 sanaa ja TV-tekstityksessä on 983 ruututekstiä ja 5293 sanaa. Eroavaisuudet selittyvät sillä, että elokuvatekstityksen ruututekstit ovat lyhyempiä ja nopeammin ilmestyviä kuin DVD- tai TV-tekstitysten. Tutkittu DVD-tekstitys on elokuvatekstityksen muokkaus, mistä johtuu sen vähäinen sana- ja ruututekstimäärä. Tutkielmassa havaittiin myös, että kaikissa versioissa yleisimmin käytetty käännösstrategia oli suora käännös, mutta TV-tekstityksessä sitä oli käytetty yli 50 %:ssa kaikista osakäännöksistä ja DVD- ja elokuvaversiossa yli 35 %:ssa, eli TV-tekstityksessä sitä oli käytetty huomattavasti enemmän kuin muissa versioissa. Lyhentämistä ja poisjättämistä oli DVD- ja elokuvatekstityksessä käytetty enemmän kuin TV-tekstityksessä. Nämäkin erot selit-tynevät elokuvatekstityksen pienemmällä tilalla ja tämän tekstityksen muokkaamisesta DVD-tekstitykseksi. Merkityksen muutoksia ja kaventumisia esiintyi eniten strategioiden poisjättäminen ja lyhentäminen yhteydessä, muiden strategioiden yhteydessä merkityksen muutoksia ja kaventumisia esiintyi vain marginaalisesti. Tulokset tukevat hypoteesia siitä, että merkitys muuttuu ja kaventuu eniten silloin, kun kaikkea sanottua ei voida kääntää.

Interfacial Phenomena in Pharmaceutical Low Moisture Content Powder Processing

Powders are essential materials in the pharmaceutical industry, being involved in majority of all drug manufacturing. Powder flow and particle size are central particle properties addressed by means of particle engineering. The aim of the thesis was to gain knowledge on powder processing with restricted liquid addition, with a primary focus on particle coating and early granule growth. Furthermore, characterisation of this kind of processes was performed. A thin coating layer of hydroxypropyl methylcellulose was applied on individual particles of ibuprofen in a fluidised bed top-spray process. The polymeric coating improved the flow properties of the powder. The improvement was strongly related to relative humidity, which can be seen as an indicator of a change in surface hydrophilicity caused by the coating. The ibuprofen used in the present study had a d50 of 40 μm and thus belongs to the Geldart group C powders, which can be considered as challenging materials in top-spray coating processes. Ibuprofen was similarly coated using a novel ultrasound-assisted coating method. The results were in line with those obtained from powders coated in the fluidised bed process mentioned above. It was found that the ultrasound-assisted method was capable of coating single particles with a simple and robust setup. Granule growth in a fluidised bed process was inhibited by feeding the liquid in pulses. The results showed that the length of the pulsing cycles is of importance, and can be used to adjust granule growth. Moreover, pulsed liquid feed was found to be of greater significance to granule growth in high inlet air relative humidity. Liquid feed pulsing can thus be used as a tool in particle size targeting in fluidised bed processes and in compensating for changes in relative humidity of the inlet air. The nozzle function of a two-fluid external mixing pneumatic nozzle, typical for small scale pharmaceutical fluidised bed processes, was studied in situ in an ongoing fluidised bed process with particle tracking velocimetry. It was found that the liquid droplets undergo coalescence as they proceed away from the nozzle head. The coalescence was expected to increase droplet speed, which was confirmed in the study. The spray turbulence was studied, and the results showed turbulence caused by the event of atomisation and by the oppositely directed fluidising air. It was concluded that particle tracking velocimetry is a suitable tool for in situ spray characterisation. The light transmission through dense particulate systems was found to carry information on particle size and packing density as expected based on the theory of light scattering by solids. It was possible to differentiate binary blends consisting of components with differences in optical properties. Light transmission showed potential as a rapid, simple and inexpensive tool in characterisation of particulate systems giving information on changes in particle systems, which could be utilised in basic process diagnostics.