5. DISEÑO PROPUESTO PARA LA RED DE INFORMÁTICA
5.9. Recomendaciones de Medidas de Seguridad para la Red
This thesis is subject to some limitations. The first limitation is the ability to conceptually identify the variables involved in the research, and empirically validate the associations between these variables. With many facets of the development of a stock market to consider, and different countries having different institutional reforms along with varying political, economic and social settings. These institutional reforms are unique to each country and may have a unique impact on its own capital market. It is difficult to have a
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common scale for such vast and diversified set of arrangements. These IP variables, I use, are not ratio scale variables and are mostly with ordinal numerical properties. Moreover, these governance indicators are highly correlated with each other. These variables primarily represent different dimensions of the IP arrangements within a country (Kaufman et al., 2009). Thus, to cater for multicollinearity, I use principal component analysis and use the first principal component of these variables as my IP variable.
Second, there is a wide variety of other information sources other than accounting based firm fundamentals and other institutional arrangements present across the world with each having its impact on SPS. For example, studies (Chen, Roll, & Ross, 1986; Kilian & Park, 2009; Fama, 1981) suggest that macrocosmic news such as such as oil price shocks, inflation, and interest rates, affect share price returns and thus may affect SPS.
Third, the thesis is limited to the use of country-level IP arrangements. There is no universally accepted IP index such as index developed on the basis of independence of the board of directors, audit committees, repute of external auditors etc. at the firm level which could be used across the study.
Last but not the least, the study uses total accruals as a proxy for FFI in the FFI and SPS stage. Total accruals is a crude measure. The use of a more direct sophisticated measure of accruals such as abnormal accruals or components of accruals may give more robust results. However, due to data constraints such sophisticated measures could not be used for the purposes of this study.
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6.4 Opportunities for Future Research
This thesis highlights several prospective areas for future research. This thesis investigates the effects of IP environment on SPS on a cross-country basis. An interesting area would be to conduct a more in-depth comparative analyses of the developed and developing countries with respect to IP environment at firm-level in each country such as with board of directors, audit committees, Big-Four auditors, etc. Second, the effects of major corporate collapses or financial crises on SPS could also be studied specifically in in each country. Third, since the results of this thesis suggest that macroeconomic indicators affect SPS, further investigation of the macroeconomic variable such as inflation, oil prices, the level of debt, trade openness etc. could be beneficial. Fourth, this study is only limited to the use of a few accounting based FFI items; an investigation of SPS with other FFI could also be interesting at firm-level and country-level. Fifth, this thesis uses total accruals as an information signal; however, others may wish to investigate finer measures of earnings quality when the data are more readily available. Sixth, SPS could also be investigated with respect to earnings management, and cost of capital etc. Seventh, a study of the relation of the timeliness and accounting conservatism with SPS could be another area for future research, as Ball et al. (2000) argue that conservatism facilitates monitoring of managers and of debt contracts which is an important factor of efficient CG.
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