Browsing by Author "Lamti, Rania"

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    Share capital impact on the barrier of seriousness and gender equality -A study made after the reduction of minimum share capital
    (2013-08-05) Lamti, Rania; Lägnert, Jenny; University of Gothenburg/Department of Business Administration; Göteborgs universitet/Företagsekonomiska institutionen
    Background and discussion: Many countries including Sweden seek to increase entrepreneurship by reducing the administrative burden for small business owners. On first of April 2010, the minimum capital required for setting up a private limited company in Sweden was lowered from SEK 100 000 to SEK 50 000. The reduction has begun a discussion of whether this is good or not. While the purpose of the reduction was to encourage entrepreneurship, some parties argue that a limited company is not always the best corporate form for all entrepreneurs. There is also an ongoing debate about female entrepreneurship where statistics show that more men than women set up an enterprise but that women are slowly approaching the same level as men. Purpose and contribution: Our purpose with this thesis is to investigate the relation between the reduction of minimum share capital and the barrier of seriousness. We also aim to investigate the effects on gender equality caused by the reduction. Our thesis provides new knowledge, which can be used in practice for future change in legislation of minimum share capital. Our thesis can give an indication of what a future reduction may entail when it comes to the barrier of seriousness and gender equality. Therefore, our study is of both empirical and practical relevance. Research question: To what extent is it possible to identify differences in the barrier of seriousness and effects in gender equality after the reduction of minimum share capital? Methodology: Empirical investigations in the shape of qualitative interviews with four respondents have been made. The results were then analysed based on a theoretical framework on whether the seriousness among entrepreneurs has changed since the reduction of minimum share capital and also if there are any up to the present unidentifiable relations. The theoretical framework and the empirical study are discussed with our personal reflections in section 7. Empirics and conclusions: Insolvency is not directly linked to the reduction of minimum share capital and the barrier of seriousness has not been lowered since the reduction either. Neither the number of balance sheets for liquidation purposes nor the number of bankruptcies has increased. Finally, we have not found a significant affect in gender equality caused by the reduction.
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    Tone Management and Earnings Management. A UK evidence of abnormal tone in CEO letters and abnormal accruals
    (2015-07-06) Carlsson, Sara; Lamti, Rania; University of Gothenburg/Graduate School; Göteborgs universitet/Graduate School
    Background and Problem Definition: The CEO letter is one significant narrative document through which senior management have opportunity to express beliefs and values to their shareholders. The CEO letter is unregulated in its nature and thereby subject to management opportunism through tone management. Tone management could further be used to manipulate the perception of the firm, which causes information asymmetry. Similar to the purpose of tone management, accruals could be opportunistically managed in order to manipulate users’ perceptions of firm fundamentals. Thus, managers could through CEO letters employ tone management to potentially hide earnings management, and thereby mislead users about firm fundamentals. Purpose: The purpose of this thesis is to test the possible association between tone management in CEO letters and earnings management, using data from 2013 including firms listed on the London Stock Exchange. Subsequently, the intention is to investigate if earnings management and tone management are substitutes or complements. The purpose is additionally to test the relation between tone management in CEO letters and financial performance Research Design and Methodology: The theoretical framework of this thesis is used to develop hypotheses, which subsequently guide the research forward. In the execution phase, a customized dictionary is developed to fit with the purpose of the thesis. The execution phase continues in correlation and multiple regression analysis. The outcome of the statistical tests contributes to fulfill the purpose. Empirical Results and Analysis: In accordance with previous literature, the empirical results reveal a positive association between tone in CEO letters and financial performance. Strengthening the purpose and the contribution of this thesis, empirical evidences reveal that abnormal tone in CEO letters and abnormal accruals are positively associated. Concluding Remarks: The tone in CEO letters is generally positive regardless of management discretion. Furthermore the tone in CEO letters can be derived from firm performance, firm size and annual stock return. Finally, the findings indicate that tone management and earnings management through the use of abnormal tone and abnormal accruals functions as complements and are thus not substitutes.