Accounting Literature Research Articles

Can innovation be measured? A framework of how measurement of innovation engages attention in firms

Abstract Many firms manage the innovation process by using metrics. Yet, whether measurement supports or hinders innovation continues to be a topic of debate. To shed new light on this debate, this paper presents a conceptual framework of how measurement engages attention in firms. We draw on attention based theory and conceptualize innovation measurement as an attention-focusing device. We identify two ideal types of measurement practices. i) Directional Measurement: which is based on few and unidirectional metrics and encourages exploitative innovation efforts. ii) Conversational Measurement: which is based on multiple and ambiguous metrics and encourages exploration. We extend theory building in the technology and accounting literatures by theorizing the role of metrics and measurement for attention and by discussing the implications of such attentional engagement for innovation performance. In so doing, we engage closely with the managerial task of managing innovation while simplifying its conditions, thereby providing actionable advice.

Toshiba's Creative Accounting for Construction Contracts

ABSTRACT This case aims to help you understand how a world-known Japanese conglomerate—Toshiba Corporation—managed its earnings using the percentage-of-completion method to account for construction contracts in its Energy and Infrastructure division. In response to inquiries from Japan's Securities and Exchange Surveillance Commission (SESC) and internal investigations, Toshiba restated its earnings for an extended period (2008–2014) by the staggering amount of $1.86 billion. Twenty-one percent of this amount related to its improper accounting for construction contracts. The case requires you to research authoritative accounting literature, evaluate Toshiba's accounting practices, and determine which GAAP-compliant procedures Toshiba should have followed. The case assignment intends to improve your ability to (1) identify, interpret, and apply the new revenue recognition standard (ASC 606), (2) appreciate the distinction between a company's stated accounting policies and their implementation, (3) recognize the importance of estimates and judgments in the accounting process, and (4) understand the critical role played by the senior management and organizational culture in the assurance of integrity in financial reports.

Integrated extinction accounting and accountability: building an ark

PurposeWe are currently experiencing what is often called the sixth period of mass extinction on planet Earth, caused undoubtedly by the impact of human activities and businesses on nature. The purpose of this paper is to explore the potential for accounting and corporate accountability to contribute to extinction prevention. The paper adopts an interdisciplinary approach, weaving scientific evidence and theory into organisational disclosure and reporting in order to demonstrate linkages between extinction, business behaviour, accounting and accountability as well as to provide a basis for developing a framework for narrative disclosure on extinction prevention.Design/methodology/approachThe paper is theoretical and interdisciplinary in approach, seeking to bring together scientific theories of extinction with a need for corporate and organisational accountability whilst recognising philosophical concerns in the extant environmental accounting literature about accepting any business role and capitalist mechanisms in ecological matters. The overarching framework derives from the concept of emancipatory accounting.FindingsThe outcome of the writing is to: present an emancipatory “extinction accounting” framework which can be embedded within integrated reports, and a diagrammatic representation, in the form of an “ark”, of accounting and accountability mechanisms which, combined, can assist, the authors argue, in preventing extinction. The authors suggest that the emancipatory framework may also be applied to engagement meetings between the responsible investor community (and non-governmental organisations (NGOs)) and organisations on biodiversity and species protection.Research limitations/implicationsThe exploratory extinction accounting and accountability frameworks within this paper should provide a basis for further research into the emancipatory potential for organisational disclosures and mechanisms of governance and accountability to prevent species extinction.Practical implicationsThe next steps for researchers and practitioners involve development and implementation of the extinction accounting and engagement frameworks presented in this paper within integrated reporting and responsible investor practice.Social implicationsAs outlined in this paper, extinction of any species of flora and fauna can affect significantly the functioning of local and global ecosystems, the destruction of which can have, and is having, severe and dangerous consequences for human life. Extinction prevention is critically important to the survival of the human race.Originality/valueThis paper represents a comprehensive attempt to explore the emancipatory role of accounting in extinction prevention and to bring together the linkages in accounting and accountability mechanisms which, working together, can prevent species extinction.

Learning from cultural diversity? The case of European Union-funded transnational projects on employment

This article aims at analysing inter-cultural learning dynamics on the ground. For this purpose, I investigate dynamics of learning from cultural diversity in European Union-financed transnational projects on employment and vocational training. Taking into account literature on new modes of governance and policy learning, I propose first a framework for the study of learning in a context of cultural diversity. The empirical part of this article serves to illustrate under which circumstances flexible modes of governance (such as the EU-programmes under analysis) lead to different types of learning. In cases of epistemic learning, project managers aimed at the transfer of one-size-fits all solutions and thus, cultural diversity appeared as an obstacle. Flexible governance arrangements in inter-cultural contexts also led to reflective learning (learning from diversity) and ultimately to innovation and empowerment. The understanding of learning from diversity required an in-depth qualitative analysis. Empirical evidence is drawn from document analysis and in-depth semi-structured interviews in France and the Netherlands.

Who’s the boss? The economic and behavioral implications of various characterizations of the superior in participative budgeting research

Participative budgeting can benefit a firm by incorporating subordinates’ private information into financing and operating decisions. In the managerial accounting literature, studies of participative budgeting posit superiors that range from passively committed to highly active participants, some of whom are permitted to communicate, choose compensation schemes, negotiate with subordinates, and reject budgets. This paper synthesizes and analyzes experimental research in participative budgeting with a focus on the role of the superior defined in the research design, and on how that role affects budget outcomes, subordinate behavior, and in some cases superior behavior. We demonstrate how superior type influences economic and behavioral predictions, and likewise affects budgeting outcomes and the interpretation of the results. This paper is intended to further our understanding of how superior type affects behavior in participative budgeting studies, and to facilitate the choice of superior type in future research designs.

Literature Review on Cloud Computing Technology Integration in Small and Medium Sized Enterprise’s Accounting System

The purpose of this research is to review past literature of accounting in relation to technological advancement, especially in cloud-based accounting application. We begin by discussing the integration of technology into accounting process on small and medium sized enterprise (SME), continued by review on cloud computing, its advantage and disadvantage, and its importance to keep the SMEs up to date within modern business world. Lastly, we will review the current available literatures on cloud-based accounting, their research methods, and possible future research.

“Italian or Empirical Accounting…” by Ivan Akhmatov: Analysis and history of its creation

This article represents the first biography of Ivan Akhmatov (1766–1829), an analysis of his works on Accounting and History. Until now all the Russians encyclopaedias stated that Akhmatov the professor and author of the accounting book, and Akhmatov the historian were different persons with the same surname. However, the results of archive research show that it was one person. This article also contains a detailed review of Akhmatov’s book, Italian of Empirical Accounting. Its sources were studied in detail. In particular, it was proven that Akhmatov did not copy de la Porte’s La science des negocians et teneurs de livres in full, but added some corrections and amendments to it based on the first publication of Pierre Bouchet’s book in 1800, and not on the second one as it was stated by Russian bibliographies. Moreover, Akhmatov included in his book other Russian sources as well as his own thoughts. This article contains a description of the book’s structure, content and its main ideas. It proves that Akhmatov was the first one, in Russian accounting literature, to call Luca Pacioli, the founder of the science of accounting. It examines Akhmatov’s proposals regarding the classifications of accounts and bookkeeping rules. It also considers Akhmatov’s own proposal to use a double-entry system in government institutions. Finally, it discusses the opinions of Russian historians of accounting in Russia on Akhmatov. This article describes the creation by Akhmatov of the first historical atlas of Russia. This atlas was reissued many times. It also analyses the atlas’ funding sources. It presents Akhmatov’s biography: studies, works, life in retirement. Finally, it establishes that Ivan Akhmatov was the first person in Russia to be appointed as professor of accounting at the university.

China's Great Migration: How the Poor Built a Prosperous Nation by Bradley Gardner

Reviewed by: China's Great Migration: How the Poor Built a Prosperous Nation by Bradley Gardner C. Cindy Fan (bio) Bradley Gardner. China's Great Migration: How the Poor Built a Prosperous Nation. Oakland, CA: Independent Institute, 2017. xii, 219 pp. Hardcover $27.95, isbn 978-1-598-13222-9. This book champions migrants, especially migrants in China. While Gardner's statement that "The value of an open labor market is one of the truisms of economics" (p. 165) is not exactly provocative, his notion that "China has embraced an idiosyncratic pro-migrant development policy" (p. 8) may surprise many, given a mainstream understanding, especially in the West, that China uses the draconian hukou policy to restrict migration. Moreover, his goal to show how China's experiences can help "policymakers elsewhere to consider solutions to some of the problems associated with large-scale migration and capture the substantial economic benefits" might be met with more than a few jaws dropped. What can the rest of the world possibly learn from China, when it is widely assumed that migrants there live in plight, like those in Foxconn factories who committed suicide? Refuting myths and challenging assumptions happen to be Gardner's strong suit. In the Introduction of the book, he tells us that China's success in lifting its population out of poverty is due to the "Great Migration." By his account, between 1978 and 2012, more than 260 million economic migrants moved from China's countryside to its cities, surpassing the total number of international migrants worldwide. Drawing from the growth accounting literature, which he admits is marked by considerable disagreements, he reports that rural–urban migration alone added US$1.1 billion to the Chinese economy over the twenty years between 1990 and 2010. The eight chapters that follow elaborate the case why migration should be embraced as a tool of development policy not only in China but in other parts of the world as well. Chapter 1, titled "Leaving the Countryside," is about how the Great Migration started. It details the early years of the Chinese Communist regime, focusing on land reforms, and the subsequent transition from an agricultural economy to an industrial economy, which also lowered barriers to migration. Gardner's narrative about historical changes is straightforward yet lively, filled with real-life stories. His explanation of hukou is among the best in the literature, due to its simplicity and its emphasis on what hukou means to real people. How the Chinese government adapted to the Great Migration is the subject of chapter 2, "Coming to the City." Here, Gardner highlights major changes that accelerated China's urban development, including the collapse of state-owned enterprises (SOEs), the 1994 fiscal reform, and increased liberalization of the labor market. He also shows convincingly the connections among conditions that explain the labor-heavy path of development, that is, China is capital poor, its intellectual property regulations are weak, but it [End Page 261] has plenty of flexible labor that could be mobilized to scale up production quickly. One of the two chapters on a specific city, chapter 3, is about the miracle story of how Wenzhou transformed itself from one of the poorest cities in China to where privatization first began and where millionaires were bred. The chapter tells an interesting story of how the Wenzhou people found a way out of poverty via informal-sector entrepreneurship in niches with low barriers to entry, high-volume demand, and extremely low margins. While Gardner attributes Wenzhou's success to migrants from the countryside and gives credit to diaspora and the local government's hands-off attitude, he also warns that Wenzhou needs to reinvent itself in order to remain successful. Chapter 4, titled "The Returns on the Great Migration," is concerned with the question "To what degree has the Great Migration been responsible for China's growth" (p. 70). Gardner estimates that by improving agricultural productivity and labor reallocation, migration has contributed 33 percent to China's gross domestic product growth. In addition, migration has advanced urbanization and labor market reforms, contributing to growth in industrial productivity, human capital, and capital investment. However, he also cautions that as China's...

Reference points for measuring social performance: Case study of a social business venture

We present a longitudinal qualitative case study to elaborate on how a social venture forms reference points for social performance. Although organizations increasingly use various social performance targets to direct their operations, the scholarly knowledge on social performance reference points remains limited. We make use of the prior accounting literature and draw on the idea of compromising accounts to discuss how provisional and performative metrics can have a significant role in how organizations develop new ways to evaluate their social performance. Given that the social performance reference point criteria are ambiguous and the corresponding referents malleable, performative accounts are helpful as they can intervene in the organizational life by making particular things visible, providing space for interpretations, and facilitating discussion, thus creating temporary settlements and enabling opportunities for productive compromises between different organizational groups and evaluative principles. The recursive feedback loops between reference point referents, criteria and accounting artefacts help the organization to make sense of its own social performance and interpret the associated performance feedback, and thereby provide ground for organizational decisions on further action. Moreover, we discuss how imperfect accounts can be useful for social businesses in their pursuit of developing their activities and achieving social impact.

Reforms to the Market for Audit and Assurance Services in the Period after the Global Financial Crisis: Evidence from the UK

AbstractThe global financial crisis (GFC) had little effect on audit practices in Australia, as the country was largely sheltered from the GFC. The UK and Europe, which had experienced significant reforms to audit, were not sheltered from the GFC and regulators and law makers were pressured to take further action. The key UK and European audit reforms included the expanded auditors' report, disclosures on materiality thresholds, restrictions on non‐audit services, more powers for audit committees and mandatory firm rotation by auditors. The aim of this exploratory research study is to obtain the views of relevant stakeholders in relation to the benefits and costs of the recent UK audit reforms and the new EU Audit Directive (July 2016), and via a synthesis of these results and a review of the relevant Australian accounting literature, consider whether there is scope for Australia to adopt similar reforms to audit services. The study finds that there are significant reforms to auditing that have benefited the UK audit profession, and an open debate in Australia needs to be considered regarding the need for similar reforms. The study suggests a need for a proactive approach to audit reform and this lends support to recent findings from Australian accounting research studies.

Does the Use of Honorific Appellations in Audit Reports Connote Higher Financial Misstatement Risk? Evidence from China

From the sociolinguistic perspective, this study examines whether the honorific and actual-name appellations that Chinese auditors use to address clients in audit reports connote differential financial misstatement risk. Specifically, we hypothesize that auditors’ use of honorifics signals their inferior social status relative to their clients, thereby leading to compromised auditor independence, lower audit quality, and higher financial misstatement risk. We find significantly greater financial misstatements, both in terms of likelihoods and magnitudes, for companies addressed by honorifics than for those addressed by actual names. Moreover, compared to auditors’ consistent honorific usage, discretionary honorific usage has a stronger positive association with misstatements. We further show that the positive association between honorific usage and client misstatement risk weakens when the audit firm is a Top 10 accounting firm in China, is an industry specialist, is formed as a partnership, or resides in a more concentrated audit market. This study contributes to the sociolinguistics literature in accounting and provides evidence supporting the reform proposed by the International Auditing and Assurance Standards Board (IAASB) to enhance the usefulness of audit reporting.

MENGUPAS PERSOALAN STANDAR AKUNTANSI KEUANGAN-GOODWILL DI BERBAGAI NEGARA : SUATU PENDEKATAN STUDI LITERATUR

This literature study explains and describes the development of the concept of goodwill from the perspective of accounting by observing and describing until the development at this time, discusses differences in accounting standards of goodwill applicable in some countries, and explains the things that contradict the goodwill. This research method used qualitative with literature study. The results of this study are some countries, the concepts and rules on goodwill accounting have undergone various changes, including international accounting standards issued by the IASC. Initially goodwill is capitalized and amortized over no more than 20 years. But, along with the increasing use of fair value accounting in accounting standards, the treatment for goodwill also experienced a shift that is eliminated by the amortization method is replaced by doing impairment test to goodwill. The results of this study contribute as add to the treasury of financial accounting literature,especially accounting treatment of goodwill as intangible assets in the financialstatements of various countries such as Indonesia, America and the England

MENGUPAS PERSOALAN STANDAR AKUNTANSI KEUANGAN - GOODWIL DI BERBAGAI NEGARA : SUATU PENDEKATAN STUDI LITERATUR

This literature study explains and describe the development of the concept of goodwill from the perspective of accounting by observing and describing until the development at this time, discusses differences in accounting standards of goodwill applicable in some countries, and explains the things that contradict the goodwill. This research method used qualitative with literature study. The results of this study are in some countries, the concepts and rules on goodwill accounting have undergone various changes, including international accounting standards issued by the IASC. Initially goodwill is capitalized and amortized over no more than 20 years. But, along with the increasing use of fair value accounting in accounting standards, thetreatment for goodwill also experienced a shift that is eliminated by the amortization method is replaced by doing impairment test to goodwill. The results of this study contribute as add to the treasury of financial accounting literature, especially accounting treatment of goodwill as intangible assets in the financial statements of various countries such as Indonesia, America and the England.Keyword :Goodwiil, Impairment, Financial Accounting Standard

Institutional and Economic Factors Affecting the Adoption of International Public Sector Accounting Standards

ABSTRACTThis article investigates the environmental factors associated with countries’ decision to adopt International Public Sector Accounting Standards (IPSAS). Based on a sample of 110 countries, the results reveal a positive influence of external public funding (coercive isomorphic pressure), the degree of external openness (mimetic isomorphic pressure), and public sector organizations’ importance on IPSAS adoption. They show a negative effect of the availability of local GAAP on this decision, whereas education level (normative isomorphic pressure) is a nonsignificant factor.This research contributes to the international accounting literature in the public sector. The results are relevant to standard-setters, regulators, researchers, international financial organizations, and non-adopting countries.

Auditors’ Perceptions of Corporate Governance in Hong Kong

Corporate governance system plays an important role in the contemporary accounting and management literature. The purpose of this study is to examine the auditors’ perceptions on corporate governance in the Hong Kong market. 92 experienced professionals of Big 4 audit firm auditors are interviewed to summarize the ideas of how to maintain an efficient corporate governance system. Results of the study show that effective corporate governance should avoid family directors to dominate the board. Second, effective audit committee plays a crucial role in order to maintain sound corporate governance. The study would be advantageous for listed companies in HK to adopt a better corporate governance structure in the firm.

Information risk, stock returns, and asset pricing: Evidence from China

PurposeThis study aims to investigate information risk in relation to stock returns of a firm and whether information risk is priced in China.Design/methodology/approachThe authors used accruals quality (AQ) as their measure of information risk and performed Fama-Macbeth regressions to investigate association of AQ with future realized stock returns. Moreover, two-stage cross-sectional regression analysis was performed, both at firm level and at portfolio level, to test if the AQ factor is priced in China in addition to existing factors in the Fama French three-factor model.FindingsThe authors found poor AQ being associated with higher future realized stock returns. Moreover, they found evidence of market pricing of AQ in addition to existing factors in the Fama French three-factor model. Further, subsample analysis revealed that investors value AQ more in non-state owned enterprises than in state owned enterprises.Research limitations/implicationsThe study sample comprises A-shares only and the generalization of the findings is limited by the peculiar institutional and economic setup in China.Originality/valueThis study contributes to market-based accounting literature by providing further insight into how and if investors value information risk, and it seeks to fill gap in empirical literature by providing evidence from the Chinese capital market.

Apuntes para una teoría de la poesía infantil

Se caracterizan los rasgos considerados esenciales de la poesía infantil, a la luz de una visión integradora e interdisciplinar que toma en cuenta las ciencias del lenguaje y de la literatura contemporáneas. La vuelta del lenguaje hacia sí mismo en una materialidad fónico-rítmica de los significantes estimuladora de acciones lúdicas; la intertextualidad con el caudal folclórico oral; la densidad isotópica favorecedora de la coherencia textual; la narratividad dinamizadora del discurso; el predominio de lo imaginal sobre lo abstracto; la constitución frecuente de hablantes líricos infantiles, son, entre otros, factores que tienden a estimular la recepción y que caracterizan a un género literario proclive a una relación singular con la tradición y que se mueve entre tensiones resueltas ejemplarmente en la obra de muchos poetas de alta maestría creadora. Se ejemplifican dichos rasgos mediante textos de algunos de los más relevantes autores de España e Hispanoamérica.

The Effect of Incentive Framing and Descriptive Norms on Internal Whistleblowing

AbstractFirms are under increasing pressure to implement effective internal whistleblowing systems. While firms can provide incentives to encourage internal whistleblowing, it remains controversial how such incentives should be structured. We examine whether the effectiveness of incentives encouraging internal whistleblowing is a joint function of the framing of such incentives (reward or penalty) and the strength of descriptive norms supporting internal whistleblowing. We predict and find in a lab experiment that penalties lead to a greater increase in internal whistleblowing (compared to rewards) when descriptive norms supporting whistleblowing are stronger. Our study contributes to the previous accounting literature on dishonesty and the role of management control systems design in promoting honesty and ethical norms in organizations. We also contribute to an emerging accounting literature on the links between controls, norms, and individual behavior by distinguishing between descriptive norms and injunctive norms and by highlighting the interplay between these two types of norms. Our results have important implications for organizations considering adopting incentives to encourage internal whistleblowing.

Mapping the field: A bibliometric analysis of accountability literature in healthcare

This paper’s objective is to illustrate the state of art of the research on accountability in healthcare for obtaining an overall view of a field’s intellectual structure. The high complexity of the healthcare system and the consequence of the New Public Management (NPM) and Post NPM reforms have contributed to the need for effective accountability by healthcare providers. A bibliometric review a co-word of research published in scientific journals and indexed in the SSCI (Social Science Citation Index) database over a period of 23 years (1990-2013) is been performed. To better understanding the conceptual structure of the research field a Hierarchical Cluster Analysis is been conducted: it allowed identifying prevailing areas in the research field. Literature paid great attention to the proposal and analysis of instruments for improving accountability and to the description of laws and regulations. Several topics have been poorly explored: a) the identification of obstacles that hinder the healthcare organisations’ ability to be accountable; b) the effectiveness of Instruments through which healthcare organisations respond to the demand for accountability; c) healthcare organisations’ strategies for responding to the pressure generated by regulations. The added value is the elaboration of a keywords map, which is a useful tool to understand the intellectual structure of the field, identifying the issues that have been more explored, or those that remain relatively unstudied, on which scholars should focus their future efforts.

Male labor supply and generational fiscal policy

Between 1948 and 2000, hours worked by men in the United States fell by twenty percent. Using a life cycle model of labor supply with intensive and extensive margins, we assess how much of this decline can be accounted for by changes in tax and transfer policies. We use policy measures from the generational accounting literature, capturing the lifetime fiscal burdens faced by each male birth-year cohort. Changes in age demographics and fiscal policy account for 44% of the decline in hours worked. Policy alone explains approximately a quarter of the decline, both in the aggregate and across age groups.