This paper examines the determinants of venture capital investment decision from both the venture capitalists and entrepreneur's perspective to analyze the investment decision. In this study, we have used a large sample of 100 venture capitalists and 104 entrepreneurs. The present study validates the venture evaluation criteria along with some economic factors in investment decision. From a venture capitalist’s perspective, we found that economic factors along with entrepreneurial characteristics influences the venture capitalists’ decision-making process. While, from the entrepreneur’s perspective, entrepreneurs’ personality and experience are considered as the prime indicators of venture capital investment decision. The findings revealed that venture capitalists and entrepreneurs share some perception about investment criteria; but they do not always follow each other’s criteria.

An Analysis of Engagement Risk Differences in Big Four and Non-Big Four Firms

Mohamad Naimi Mohamad-Nor, Universiti Utara Malaysia

Shamharir Abidin, Universiti Utara Malaysia

Previous studies reveal that engagement risk, which consist of audit risk, auditor business risk and client business risk, has an important role in audit firms’ client acceptance decision. This study examines the engagement risk differences between auditee of Big Four and non-Big Four firms in Malaysia from 2008 to 2010. The results suggest that both of the firms have different types of engagement of risk characteristics. The differences are prevalent in the case of auditor business risk and client business risk. Auditor business risk is higher for large audit firms, and their client business risk is lower than non-Big Four firms. The differences of engagement risk characteristics of both types of the firms might be due to their business strategy adaptation.

The Curious Case of Pension Accounting

Prince Doliya, Indian Institute of Technology Roorkee

Jatinder P Singh, Indian Institute of Technology Roorkee

Accounting for postretirement benefit is one of the most discussed phenomena in last few years. In last few years sharp decline in interest rate and rapid increases of life expectancy rate generated a huge liability for employers (Bloom, 2013).However, economic factors (death rate ,interest rate) are not only one perpetrator behind this, accounting practise for pension product has also contributed in making situation worse. To improve the measurement process and reporting of pension product International Accounting Standards Board (IASB) launched IAS19(R) in 2011.This article is an attempt to analyze the IAS 19 R practical implication using case study methodology.

Ex-Ante Asset Pricing: US & Southeast Asian Portfolios

Jordan French, Stamford University

The developing market of the Association of Southeast Asian Nations (ASEAN) increases the amount of investors that want to know how asset pricing fits into this new undeveloped market. This research looks at the forecasting capabilities of the Capital Asset Pricing Model (CAPM) using time-varying ex-ante Generalized Auto Regressive Conditional Heteroskedasticity GARCH models and Artificial Neural Networks. This study also compares the forecasting abilities of the ex-ante GARCH models and Artificial Neural Network with that of the standard market ex-post CAPM. In addition, the effectiveness of the different models within the ASEAN region and US sectors is analyzed. The effectiveness of the models are ranked based on their errors and out of sample forecasts.