Newspaper article THE JOURNAL RECORD
World Market Changing Financial Reporting
STILLWATER - Financial reporting is changing as more companies go after international dollars.
"Being able to tap into banks around the world can lower capital costs," said Gary Meek, professor of accounting in the College of Business Administration at Oklahoma State University at Stillwater. "Competition for those international dollars is already stiff, and we expect it to grow even more so."
Most companies have traditionally sought funds in their capital markets.
"But when they begin to look toward the international dollars, they have to find ways to stand out," Meek said. "One way to do that is to provide more information in their financial reporting."
"One thing that can be done to reduce the cost of finance is to provide additional accounting information, that is, voluntary accounting disclosures," he said.
"Theoretically, the more information that is provided, the more likely the company is to get funding at a reasonable rate," Meek said. "We want to know what kind of additional reporting information a company provides in order to get those dollars."
Meek has been awarded a $37,750 research grant from KPMG Peat Marwick Foundation's Research Opportunities in International Business Information awards program to study the trend. He will research how the market is changing disclosure decisions by multinational companies. Meek will work with Sidney J. Gray, professor at the University of Glasgow.
The award was one of seven proposals funded by the KPMG Peat Marwick Foundation.
The KPMG Peat Marwick program began in 1989. Another OSU professor of accounting, Dennis Patz, received an award in 1989 to study the impact of transnational information flows on security prices.
"It is a pretigious award," said Rocky Duckworth, managing partner, KPMG Peat Marwick, Oklahoma City. "It's not often that a school boasts more than one recipient."
Meek is well known outside of Oklahoma for his work in international accounting, Duckworth said. …