Accounting

Accounting and happiness
This paper begins with the observation that happiness is the primary goal of human endeavour. One critical element of human endeavour is business, leading to the proposition the primary objective of business is to contribute to happiness, with profit being a means towards this end. This central idea linking business and the pursuit of happiness is used to critique the capability of accounting t...


The Effect of Incentive-Based Compensation on Internal Auditors' Perceptions of Objectivity
A key threat to internal audit objectivity is the payment of incentive-based compensation (IBC) to internal auditors. This study uses an experimental approach to examine whether IBC paid to internal auditors based on company performance and individual performance does impact their objectivity. The study also investigates whether the cultural background of internal auditors affects their objecti...
Corporate social accountability through action: Contemporary insights from British industrial pioneers
Corporate social and environmental responsibility has become a major contemporary focus of business, government and community attention globally. With this increased attention and activity have come debates ranging across corporate authenticity, legislative necessity, and the scope of appropriate strategies. Through an historical analysis of four leading British industrialists of the 19th and e...


‘Professionals who understand’: Expertise, public interest and societal risk governance
This paper applies ideas from Beck, Power and Collins Evans to investigate why crises triggered by societal risks heighten tension between self-regulated experts and the state, and why this increased tension threatens professional self-regulation. Using an Irish case of the regulation of professional auditors, we find that Beck helps us to understand the accounting bodies’ view of their own p...
Accounting fundamentals and accounting change: Boulton & Watt and the Springfield Armory
The paper argues that by examining accounting’s technical/objective and relational/social characteristics simultaneously, a deeper understanding can be gained of accounting transition at key stages of economic development. Using the case of Boulton Watt (B&W), a pioneering firm of the British Industrial Revolution (BIR), the paper critiques prior interpretations and applies a taxonomy...


Evidencia empírica de los economistas españoles tras 5 años de aplicación de la reforma contable
Transcurridos 5 años desde la aplicación efectiva de la reforma contable en España, con el presente trabajo se ha buscado mostrar la opinión de los «Economistas Expertos en Contabilidad e Información Financiera» (ECIFCGE) sobre diversas cuestiones relacionadas con la misma. Para ello se ha utilizado una base empírica obtenida de sendas encuestas realizadas en 2008, 2009 y, la última, a...
Finance company failure in New Zealand during 2006–2009: Predictable failures?
Over 31 finance companies (non-bank deposit takers) failed in New Zealand over the 2006–2009 period. With an estimated loss of over NZ$3 billion, there was public outcry and a parliamentary inquiry into the causes of the failures, but few have asked if this was a predictable event. We find that failed finance companies have lower capital adequacy, inferior asset quality, more loans falling du...

Cross-listing as a Global Depository Receipt: The influence of emerging markets, regulation, and accounting regime
This paper examines factors influencing international firms’ decisions to cross-list as Global Depository Receipts (GDRs). We focus on differences in regulatory and accounting requirements between exchanges and the economic clustering that has arisen with increasing globalization. An important economic influence on this decision is the home country, reflecting trade ties. Higher US regulation...
Characteristics of non-audit services and financial restatements in Malaysia
Various types of purchased non-audit services (NAS) and their recurring nature affect the likelihood of financial statement restatements in Malaysia. Based on 953 firm-year observations during the period 2007–2009, evidence of a negative relationship between non-audit fees and financial statement restatements is provided. The purchase of both tax-related and audit-related NAS decreases the li...

Institutional incentives and earnings quality: The influence of government ownership in China
We examine the effect of government ownership and its associated institutional incentives on firms’ earnings quality using a sample of Chinese firms during the transitional economy between 1998 and 2005 when state-owned and non-state-owned firms were traded in the stock exchanges. We find that, in China, state-owned firms exhibit a lower earnings quality property than non-state-owned firms. P...
A classroom example of the deleterious effects of auditor predictability
If an auditor employs the same testing strategy (e.g., type of evidence, sample size, scope, selection method) year after year, or otherwise inadvertently discloses information about the audit plan, the auditee can predict auditor behavior on the current audit. The instructional exercise described in this note illustrates the deleterious effects on audit effectiveness of this predictability. Nu...

The corrosive effects of neoliberalism on the UK financial crises and auditing practices: A dead-end for reforms
The UK's financial sector has been the subject of frauds and crisis during every decade since the 1970s. The crisis has been fuelled by neoliberal ideologies which emphasise light-touch regulation, individualisation, excessive faith in markets and pursuit of private profits, with little regard for social consequences. Auditors are expected to flag matters of concern to shareholders and regulato...
Management accounting and decision making: Two case studies of outsourcing
Studying the outsourcing decision in two substantial manufacturing companies, the paper explores the use of management accounting information in a complex and strategically significant decision-making setting. The setting involves multiple decision participants with potentially conflicting preferences, constrained information provision capabilities and uncertainties in respect of the financial ...
An illusion of success: The consequences of British rail privatisation
This article accounts for the British experiment with rail privatisation and how it has worked out economically and politically. The focus is not simply on profitability and public subsidy, but on the appearances which accounting arrangements create. The article scrutinises the Network Rail subsidy regime, which enables train operators to achieve fictitious profitability without increased direc...
Accounting for rituals and ritualization: The case of shareholders’ associations
This paper uses ritual theory to examine the participation of shareholders’ associations in rituals and ritualization within social spaces. We focus on how the interconnectedness between private rituals (private investor meetings) and public rituals (AGMs and courts) produce psychological and functional benefits for shareholders’ associations. We explore the strategic acts used by sharehold...