FINRA Investor Education Foundation Newsletter
| February 8, 2010 |
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Foundation Funds Fraud Detection Research Using Nonfinancial Data
A company's employment growth could help investors determine if a high-flying company is truly on a growth trajectory or over-inflating its revenue numbers, research funded by the FINRA Foundation reveals.
In their paper, Using Nonfinancial Measures to Assess Fraud Risk, accounting professors Joseph Brazel of North Carolina State University, Keith L. Jones of George Mason University, and Mark F. Zimbelman of Brigham Young University provide evidence that publicly available nonfinancial measures such as employment, warehouse space and retail outlets, can be used to assess the likelihood of corporate fraud.
The professors reviewed the public financial records of 220 companies from 1994 through 2002. Half committed fraud and half did not. According to their paper, which was recently published in the Journal of Accounting Research, a large difference between revenue growth and growth in nonfinancial information is a “red flag” with respect to fraudulent financial reporting and argues for inclusion of nonfinancial measures in fraud risk detection models that auditors and others use.
Read the paper and related research now.
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Investing for Farm Families: Online Education for Farm Households The eXtension Foundation adapted its award-winning curriculum—Investing for Your Future—to serve the investor education needs of farm households in the United States through an interactive, Web-based learning program.
Funded by the FINRA Foundation and developed by Extension educators across the nation, the eight-lesson course helps families plan for a financially stable future. The course was developed based on detailed research about the investment practices and learning preferences of farm families. Quantitative and qualitative data was gathered during 300 interviews with members of farm households representing 43 states and through two in-depth telephone focus groups.
Farm families can obtain information to make strategic decisions while weaving together farm and personal investments. Participants work at their own pace, with each lesson taking less than an hour. The program includes a variety of topics, including how to increase future financial security, the basics of asset allocation, and different investment strategies. In addition, participants learn how to evaluate investment alternatives to agriculture business risks and how to invest for retirement and farm succession planning.
Visit the Investing for Farm Families Web site now. Read the audience/marketing analysis (PDF 589 KB) behind the course. |
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Application Deadline for General Grant Program: March 4, 2010
Apply by Thursday, March 4, 2010 for September 2010 grant awards. Applicants must first submit a simple, three-page Project Concept Form (DOC 92 KB). Those applicants whose projects closely align with the Foundation’s priorities and show good potential for success will then be invited to submit a full grant proposal.
Project Concept Forms may be submitted at any time throughout the year; however, submission deadlines correspond to the announcement of grant awards. For complete information, please visit the Grants section on the FINRA Foundation Web site.
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