https://www.um.edu.mt/library/oar/handle/123456789/65429 2026-04-22T14:49:42Z https://www.um.edu.mt/library/oar/handle/123456789/66223 Title: The lease of commercial property and its financial implications Abstract: PURPOSE: This study analyses the significance of commercial property in Malta, and the financial implications borne by tenants when leasing such property. The key price determinants for the lease price are also analysed in detail. DESIGN: Nine semi-structured interviews were conducted with commercial real estate agents, tenants and landlords. FINDINGS: This study established that commercial property is significant in Malta and as a result of the recent developments in the legislation of the rental market, Malta experienced a rapid upsurge in said market. The liberalisation of the rental market in 1995, has been found to be one of the main factors which contributed to the current market state for commercial property. Other factors which shaped the current market scenario were also identified in this study. This study also established the key determinants when pricing a lease for a commercial property and findings also highlighted the importance of the duration of the lease and the financial effect it has on the lease price. The ‘Di Fermo’, ‘Di Rispetto’, and the ‘break clause’ were found to be the three most important clauses included in the lease agreement which are often brought up during the negotiation between the parties. Finally, the additional incremental expenses associated with the lease were also analysed and a link has been found between the type of commercial property being leased and the lease structure agreed between the parties. CONCLUSIONS: Given the current market state for commercial property, the financial implications borne by tenants are on the rise, and as a result, it is becoming challenging for their businesses to remain profitable especially in the start-up phase. The lease agreement is however subject to negotiation by both parties, and therefore it is vital that tenants are well informed about the clauses in an agreement since they are essential in negotiating a better deal. IMPLICATIONS/VALUE: This study highlights the importance of commercial property in Malta. This study will be useful to existing and potential new tenants, as well as foreign businesses seeking to relocate to Malta, which should help them fully understand the financial implications associated with leasing commercial property in Malta. Description: M.ACCTY. 2020-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/66222 Title: The design of a balanced scorecard framework in a 5-star hotel Abstract: Purpose: A hotel is a business that relies on many intangibles, given that it is a service-oriented business. Consequently, a hotel would greatly benefit from a balanced performance measurement system, such as the Balanced Scorecard. By taking a Maltese perspective, the primary objective of this study is to design a Balanced Scorecard for a 5-star hotel. This is then followed by an evaluation of the current performance measurement system and the Balanced Scorecard, resulting in a comparison between the two systems. The evaluation and comparison contribute towards highlighting the advantages of switching to the Balanced Scorecard. Design: To reach the objectives of this study, a purely qualitative approach has been taken, in the form of a case study. This methodological choice resulted in an in-depth analysis in a specific setting, that of a 5-star hotel. Interviews have been conducted with the General Manager and high-ranking officers of the departments that make up the room operations of the case hotel. The findings obtained have been analysed using a thematic analysis. Findings: The case hotel adopts a KPI Dashboard for all its departments. The KPIs obtained from the interviews were grouped according to Kaplan and Norton’s four perspectives, with each perspective having its objectives, measures and initiatives. This was followed by a visualisation of the cause-andeffect relationship between the perspectives. The evaluation and comparison of the KPI Dashboard and the Balanced Scorecard resulted in multiple advantages that the hotel can benefit from when switching systems. Conclusions: This study concludes that the transition from the current KPI Dashboard to a Balanced Scorecard is feasible and advisable for the case hotel. This is derived from the fact that the hotel already communicates to lower-tiered employees through KPIs. Therefore, the same communication channel can be used to cascade the hotel’s strategic objectives paired with their respective measures. Additionally, this results in a lack of resistance when switching to the Balanced Scorecard. Value: The study is of value to the 5-star hotel since it provides a balanced performance measurement system that the hotel can benefit from. Furthermore, all aspects of the Balanced Scorecard can be applied by other hotels, both local and foreign. Lastly, this study makes a significant contribution to management accounting given the lack of research on the implementation of the Balanced Scorecard in the hotel industry. Description: M.ACCTY. 2020-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/66221 Title: An analysis of raising finance through the stock market Abstract: Purpose: This dissertation aims to analyse the local corporate market’s considerations when raising finance, in particular through the stock market. It also set out a comparison between raising finance through public channels and other traditional forms of finance. It also establishes whether tax and fiscal measures are a viable option to increase the attractiveness of the local stock market. Design: The methodology used involved the collection of qualitative data through the use of semi-structured interviews. These were carried out namely with financial advisors and stock brokers who are the main drivers of the stock market, tax advisors to set out the implications as well as the incentives given when listing on the stock exchange, local companies as well as professionals within the stock market industry. Findings: The results of this research highlighted that generally local companies are more inclined to debt financing due to the retainment of the ownership of their business. This is especially an important consideration, given that the majority of the local businesses are SMEs and family-owned. Moreover, local companies are still captured by a high percentage of bank financing due to the high costs involved in listing on the stock exchange. For this reason, it was found that although tax and fiscal incentives play an important role in the raising finance through the stock exchange decision, other non-financial measures such as the easing of regulation are more predominant options to incentivise more companies to take on the public route. Conclusion: This dissertation concluded that although there was an increased interest amongst local companies to raise finance on the local stock exchange, traditional sources of finance will still remain accommodating to the local corporate market. Value: In recent years it was illustrated that the local scenario is still dominated by bank financing. Thus, this dissertation provides a comprehensive study on how to increase the attractiveness of the local stock market while providing an alternative finance route for local businesses. Description: M.ACCTY. 2020-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/66220 Title: The timeliness of external financial reporting in Malta : an analysis Abstract: PURPOSE: Timeliness is an important qualitative characteristic of financial reporting as it ensures that users receive relevant financial information in time to influence their decisions. This study examines the extent of timeliness during the years 2013 – 2017 by analysing the time taken by Maltese firms to publish financial statements and their compliance with Maltese regulatory deadlines. It also investigates the effect of implementing the General Accounting Principles for Small and Medium Entities (GAPSME) 2015 on the timeliness of financial reporting, and how ten factors may influence this qualitative characteristic. DESIGN: The analysis was conducted using a mixed research approach, with a predominant quantitative aspect. Quantitative data was first analysed using a series of statistical techniques. The results were then discussed with a highranking officer at the Malta Business Registry to obtain further insights from a professional in the field. FINDINGS: On average, Maltese companies filed their financial statements close to regulatory deadlines. The results show that in the short term, the implementation of GAPSME 2015 negatively affected the timeliness of financial reporting. Private companies that are profitable or operating in the financial industry were found to publish their financial statements earlier. Longer periods are experienced by owner-managed companies or those with qualified financial statements. In modelling the likelihood that financial statements are submitted within the regulatory deadlines, a negative relationship was found in the case of the company size and a qualified audit opinion. Conversely, firms that are older; profitable; operating in the financial industry; or have a 31st December accounting reference period were found to be more likely to comply with statutory deadlines. CONCLUSIONS: The findings suggest that regulatory deadlines are a principal factor influencing the timeliness of financial reporting. Increased awareness about the importance of timeliness and higher late filing penalties may improve timeliness in Malta. This could enhance the usefulness of financial information for users of financial statements. VALUE: The research findings provide valuable insights to the regulator, practitioners, and users of financial statements, in better understanding the behaviour of Maltese firms with regard to the publishing of financial statements. Description: M.ACCTY. 2020-01-01T00:00:00Z