财务报表分析外文文献

INTERNATIONALJOURNALOFBUSINESS,19(1),2014ISSN:1083-4346CaseStudiesofCorporateMisgovernance:ANewApproachtoFinancialStatementAnalysisM.R.KumaraSwamyDirector,OmSaiRamCentreforFinancialManagementResearchMumbai,[e-mail]experiencesthatto-day’sgovernance(Man-Management)hasbeendegradedtosuchanextentthatmoralbankruptcyhasbecomeanintegralpartofdaytodaybusinessactivities–asevidencedbyrecentexperiences–whererighteousnessisatadiscount(accounttampering,manipulation/falsificationofaccountsandfraudsarerampant);truthhasbecomerare,trickeryisspreadingandintegrityisvanishing);andselfishnessisgrowingalarminglyinallspheresofhumanactivity.Thereisanurgentneedtoresorttotheuseoftheproposednewanduniqueapproachtofinancialstatementanalysiswhich,accordingtotheWhartonSchool(UniversityofPennsylvania,USA)corporatefinanceeconomists,isauniquenovelandrevolutionaryapproach.JELClassifications:E65,G21,G33,M14,M41,Z12Keywords:ethicbasedmanagement;moralbankruptcy;novelfinancialstatementanalysis100SwamyI.INTRODUCTIONWritingontherevolutionaryandnewapproachtofinancialstatementanalysisisadifficultassignmentasaptlypointedoutbyrenownedappliedfinancial(accounting)statisticians-cum-corporatefinanceexperts,Lusketal.(2008)(oftheWhartonSchool:TheUniversityofPennsylvania,U.S.A.)intheirseminalpaperrelatingto‘IdiosyncraticRisk’:“...althoughmostoftensocialreactiontomoral,dilemmaistoincreaseregulation,monitoringandsanctions,wewishtoofferthecreativealternativeofferedbyProfessorM.R.KumaraSwamy’sIdeaofEthical-BasedFinancialStatements...Thisisaprovocativeidea(thefirsttimethatwehaveencounteredsucharevolutionaryconcept)inthesensethatitisanattempttouseamoralorspiritualcontentforthedevelopmentoffinancialstatements(Lusketal(2008)”.Acloseexaminationofthemottosofselectedcountries−U.S.A.(world'sstrongestdemocracy):“InGodWeTrust”,NIGERIA(Africa'slargestcountry):“Unity&Faith;Peace&Progress”,INDIA(world'slargestdemocracy):“TruthAloneWins”--inthecontextofBenjaminFranklin’s(thefoundingfatherofAmericanManagement)‘ManagementEthic’(2001)whichconstitutes.Individualism;IndustryandFrugality;ExperimentationandHonestywhichisencodedintheculturalDNAthatcontinuestoshapetheAmericanmanagementvis-a-visothercountriesinstitutionsand‘CharacterEthic’whichisbasedontheideathathumanexistenceisgovernedbyobjective,fundamentalprinciplestowhichpeoplemustconformformaximumeffectivenessinlife−runscontrarytotherealitiesinpresenttimeswherethehighlyrelevantobservationsofDivineSathyaSaiBabaarepertinenttorecall:“Whenthemanagerfollowstheconscience,goodresultsaccrue;whenthemanagerfollowsthevagariesofmonkeymind,destructiveconsequenceswillfollow...wewantaGovernment/Institutionwhichwillmakethepeopletreadthepathoftruthandrighteousness.GOD-MENTistherealGovernment(Prasanthinilayam)”.Inthecontextofpresentdaycircumstancesanddevelopments,insolvency,bankandcompanyfailures;corruption;bribery;fraudslikeaccountsmanipulation,forgingoflettersofcredit(LCs)/bankers’receipts(BRs),etc.,havebecomethenormsofpresentdaybusiness(Swamy,2009).Thehumanmindhasagreatabilitytodeceiveitselfanddirectitselfalongpredeterminedchannels.Amongthenumerousdiseasesprevailingintheworld,thediseaseofgreedhasgrownbeyondbounds.ThereisnoworsediseasethanthisasaptlypointedoutbyHisHolinessPopeBenedictXVI(2009):“Profitisusefulifitservesasameanstowardsanend...onceprofitbecomestheexclusivegoal,ifitisproducedbyimpropermeansandwithoutthecommongoodasitsultimateend,itrisksdestroyingwealthandcreatingpoverty...greedhasbroughtabouttheworsteconomicdownturnsincetheGreatDepression.Theeconomyneedsethicsinordertofunctioncorrectly–notanyethics,butanethicswhichispeoplecentred(2009)”.Thesubject,ethics:corporatebusinessandgovernmenthas,oflate,assumedgreatsignificanceintheoryandpractice−asencodedincustomerservicemanualandemployeesrulebookoforganizationsandasateachingsubject:courseineducationalinstitutionsandorganizations.Thisrelatestoalmostallcountriesoftheworld−industrialized,developingcountriesandlatelyRussiaand,infact,thefocusoftheJune2,2001CongressoftheRussianAssociationofIndustrialistsandEntrepreneursheldinINTERNATIONALJOURNALOFBUSINESS,19(1),2014101Moscow,wasonintroductionofcivilizedrules(basedongoodethics)forcorporategovernanceinRussia(Mezentsev,2001).II.CORRUPTIONANDMORALBANKRUPTCYCorruptionisrampantthroughouttheworld.Empiricalresearchshowsthatbasicallytherearetwocausesofcorruptionnamely:greedandneed.Whileneedscanbemetbyreviewingpaypackages,etc,nopackagecantakecareofthegreedwhichhasnoend.Asanoffshootofmoralbankruptcyandconsequentdevaluationofman–plaguingpracticallyallcountries(developinganddeveloped)–thereisanincreasingtendencytochannelfunds(togetrichtoosoon)tomaintainunproductive/non-performingassets(Swamy,1994,2002).Itistruebutasadcommentarythattoday’sbusinessworldhasbeencharacterisedbymoralbankruptcyviolatingallnormsofgoodbusinessethicswhich,inturn,hascausedmountingfinancialproblemsduetofrequentbankfailuresand/orinsolvencies−theresultoftheirengaginginfraudulentdealslikecurrencyanddrugtrafficking,smuggling,corruption,forgedlettersofcredit