Governance and control of sharing economy platforms: Hosting on Airbnb

Sharing economy platforms have recently surged as popular venues of business enabling people around the world to digitally interact and temporarily exchange their under-utilised assets. Beyond a very small number of exploratory studies of accounting practices underpinning these digital platform organisations, little is known about their governance and management control. This paper examines the governance and management control exercised by a digital platform owner over global users exhibited by Airbnb, a successful and pervasive sharing economy platform in the holiday accommodation sector. Through netnographic method, this study investigates the platform owner governance and control issues with respect to hosts. The analysis reveals the platform owner using predominantly formal bureaucratic control systems as mechanisms to govern and control its users. Through users’ compliance, they and their activities are made visible to the platform owner, which in turn maintains control over the value creation process. This study provides insights into how accounting systems are mobilised in digital platforms to facilitate their governance through mechanisms of surveillance, monitoring control over digital users worldwide, and how innovative and disruptive phenomena nonetheless rely on traditional technologies of governance to maintain power and control.     

Business groups in China

We investigate whether business groups in China act as internal capital markets, in an environment that is characterized by a high level of government intervention, a weak legal system, and an underdeveloped financial market. We study how institutional factors, such as the ultimate owner and level of market development, shape the role of these business groups. We find that business groups help member firms overcome constraints in raising external capital, and that the internal capital market within a business group is more likely to be an alternative financing channel among state-owned firms than among private firms. We also find that the internal capital market is more likely to help those affiliated firms which are private, local government owned relative to those owned by central government, or located in regions with a well-developed institutional environment. We present evidence of the role of business groups in risk sharing among affiliated firms, but find that business group affiliation has no impact on firm accounting performance. This study sheds new light on the theory of the firm and its boundaries, and provides a better understanding of China's rapidly growing economy.     

The impact of voluntary audit and governance characteristics on accounting errors in private companies

This paper examines the extent to which the audit and corporate governance characteristics of UK private companies are associated with defective accounting information. Despite the economic importance of private firms, relatively little is known about their financial reporting and governance characteristics. Using a large sample of UK private companies, we examine the effects of voluntary audit, board gender balance and financial expertise on the likelihood of errors occurring in published annual accounts. Our results indicate that audited accounts are approximately half as likely as unaudited accounts to contain errors. In addition to contributing to recent academic research in this field, our findings are likely to be of interest to policy makers, who are considering exempting more firms from mandatory audit. We also find that gender diversity among board members is positively associated with the accuracy of accounting information, though our primary measure of directors’ financial expertise has no significant effect.     

Inside the Black Box of IASB Standard Setting: Evidence from Board Meeting Audio Playbacks on the Amendment of IAS 19 (2011)

We provide evidence on the little researched internal sphere of private IASB standard setting, more specifically, on the dynamic of board discussions and the respective impact of exogenous input such as comment letters, the array of arguments evoked in IASB debates, individual board member contribution and board-staff relations. We conduct a content analysis of audio recordings of 14 IASB meetings on the amendment of IAS 19 Employee Benefits (2011) between November 2008 and February 2010. Our main findings comprise the argument-based handling of comment letters not being conditioned by the political or economic importance of the senders, the gatekeeper role of staff members in channelling exogenous input and their equal role in board discussions and the dominant reference to conceptual arguments there. We also point to the heterogeneous involvement of board members, their different attribution to key issues and to further observations regarding the meeting governance, board’s discussion culture and etiquette. Our paper adds to the literature on private IASB standard setting, pension accounting and group decision making.

Data: All data are available from the public sources identified in this paper     

Fascist Corporative Economy and Accounting in Italy during the Thirties: Exploring the Relations between a Totalitarian Ideology and Business Studies

In the last century the fascist era in Italy continued for more than 20 years, ending with the conclusion of the Second World War. This paper explores how the strong ideological commitment of Fascism, in contrast to liberal ideologies of democracy and free market, operated within the field of accounting and business studies at the pinnacle of the dictatorship experience (the thirties). The totalitarian regime called for the transformation of society and the economic system by introducing an alternative corporative economy, planned and regulated but without abolishing private enterprises. The degree of adhesion to the 'corporative' ideology on the part of academics, the influence on subjects and on further development of Italian accounting and business research are investigated and discussed.     

Public Versus Private: The Empty Definitions of National Accounting

The policy-making processes and the policies of the two international systems of national accounts are addressed, from the perspective of the accounting discipline. The particular measurement issue that determines which parts of an economy are public and which are private - the reporting entity - is discussed. The main conclusion is that the definition of the reporting entities is so vague as to be empty; in other words, national accounting's definition of what is public and what is private is empty.     

Governance Structure and Firm Performance in Private Family Firms

Although a large proportion of firms are family owned and most family firms are private, our understanding of private family firms is limited. Using confidential information on family relationships between board members, CEOs, and shareholders, this is the first study to provide large‐scale evidence on the association between governance structure and firm performance in family‐controlled private firms. Our sample is unique as it covers almost all private limited liability firms in Norway, spans 11 years, traces firm ownership to ultimate owners, and identifies family relationship using data on kinship, marriage, and adoption. The results show a U‐shaped relationship between family ownership and firm performance. Higher ownership of the second largest owner, higher percentage of family members on the board, stronger family power, and smaller boards are associated with higher firm performance. In addition, the positive association between the ownership of the second largest owner and firm performance also occurs when the second largest owner is a member of the controlling family, but the association is stronger when the second largest owner is a non‐family member. We further test the relative importance of these test variables and find that ownership structure is more associated with firm performance than board structure.     

A productivity growth accounting approach to the ranking of developing and developed nations

Productivity growth accounting studies generally focus on productivity growth or decline in more developed countries such as the Organization of Economic Cooperation and Development (OECD) members. In this paper, we develop a generalized efficiency index for a much larger set of 57 national governments (NGs), both developing and developed, by employing four components of gross national product and five resource-availability indicators. Using a Data Envelopment Analysis (DEA) linear-programming approach, we maximize the components of Gross National Product (GNP), subject to minimizing specific resource-input measures. If used with appropriate precautions, the DEA-based comparative production-efficiency measures developed here can be used by individual NGs and international organizations like the World Bank and the International Monetary Fund to make equitable and sustainable lending-allocation decisions in the public and private sectors of the increasingly interdependent global economy.     

Modelling the Accounting Information Requirements of Small Businesses

Studies in various locations have indicated that practising accountants are an important source of advice and information to the small business sector. However, prior research has concentrated on establishing a relationship between the two parties and in ascertaining the extent of services provided. This paper highlights the limited acquisition or preparation of detailed accounting information by Australian small business owner/managers. Operating and environmental variables which influence the preparation or acquisition of detailed accounting information are established and logistic regression techniques used to estimate an appropriate explanatory model, from which estimates of the probability that a firm, with particular attributes which are reflected in the explanatory variables in the model, will prepare or acquire a given level of accounting information.     

Stockholding: Participation, location, and spillovers

This paper provides the first joint analysis of household stockholding participation, location among stockholding modes, and participation spillovers. Our model matches observed participation, conditional and unconditional, and asset location patterns. We find that financial sophistication correlates strongly only with direct stockholding and mutual fund participation, while social interactions mainly influence stockholding through retirement accounts. Whether retirement account owners include stocks in their accounts strongly depends on owner characteristics, which is not the case with mutual fund owners and investment in stock funds. Stockholding is more common among retirement account owners, but mainly because of owner characteristics rather than of any participation spillovers from retirement account ownership.     

Goodwill or “No-will”: Hubris in the tone at the top

In this study, we examine the effect of hubris in the “tone at the top” on goodwill accounting, specifically the proportion of the purchase price allocated to goodwill following a business combination, and subsequent decisions to write down goodwill. Using a sample of CEO letters to shareholders from firms listed on the Stockholm Stock Exchange, we carry out textual analysis of CEO letters to identify hubristic language markers. Regression analyses show that hubristic tone is positively and significantly associated with the purchase price allocation to goodwill. Furthermore, we predict that hubristic managers are more likely to overestimate future cash inflows related to goodwill and are less likely to perceive the need for a potential write-down. Consistent with this prediction, we find that hubristic tone in the CEO letters is associated with less timely goodwill write-downs. This study contributes to the literature on goodwill accounting, the role of CEO attributes on corporate decision making, and to research on CEO-speak, by providing evidence that a hubristic tone at the top can explain strategic choices by management and accounting outcomes.     

浙商对长春民营经济的启示

浙江,特别是温州,以其人均资源全国倒数第三,而人均GDP却多年稳居全国第一的温州模式,成为全国民营经济的一面旗帜。它们所依靠的“民资、民智、民力”而形成的民营企业群给长春的民营经济发展以很好的启示:长春的民营经济要快速发展,必须在发展环境上做文章,为民营经济创造一个大展宏图的广阔天地。     

The Evolution of Private Equity in Emerging Markets: The Case of Poland

In the last ten years, there has been a pronounced shift toward emerging markets in institutional investor allocations of capital to private equity. While the lion's share of the allocations to emerging markets have gone to the “BRIC” nations, lesser‐known markets like Poland are threatening to steal the spotlight. Economic stabilization, development of the private sector, a favorable business outlook, and continuous improvement of the local institutional infrastructure (laws, accounting rules, and fiscal regimes) have all contributed to the development of a vibrant private equity industry in Poland. Most private equity firms in Poland structure their deals around five broad investment themes: technology; media; and telecommunications; manufacturing; consumer services; business services; and financial services. Local private equity firms have traditionally adopted two different strategies towards these sectors. The first group of private equity firms initially targeted manufacturing, with the conviction that, as the Polish economy developed, the satisfaction of consumer needs for basic products would be the largest source of market demand. The second group assumed that the market would require access to more services to accommodate the growing local economy. Both approaches have proved reasonably successful, as the leaders among these two groups of firms have continued to succeed in raising new funds while achieving high returns for their limited partners. And while the accomplishments of the private equity industry have been made possible by the extent of Poland's transformation from a socialist into a market economy, the industry itself continues to play an important role in this transformation by providing both outside capital and know‐how for local firms and managers.     

Implications of the ‘IAS Regulation’ for Research into the International Differences in Accounting Systems

Meek and Thomas (2004) call for research on the continued relevance of ‘rediscovered’ dichotomous accounting classifications. We provide such evidence by examining how developments surrounding the ‘IAS Regulation’ (1606/2002) influenced international differences in accounting systems in the European Union. Since a sufficient time series of actual post-2005 International Financial Reporting Standards (IFRS) reporting practice is not yet observable, we propose an initial re-classification of accounting systems based on evidence available to date, that is, the degree of implementation of the IAS Regulation in the Member States. Consistent with Nobes (1998), we find that the degree of public accountability to outside investors (the ‘public/private’ criterion) is becoming the primary differentiator for accounting systems in Europe, surpassing country-level variables such as legal system and culture. The distinction between consolidated and individual financial statements is the second emerging differentiator. While consolidated accounting is becoming more uniform across countries, cross-country cultural differences are most likely to persist in individual accounting. Based on our analysis we highlight two important areas of future research beyond the consolidated financial statements of listed firms (e.g. Nobes, 2005; Schipper, 2005). First, at the country level, the interaction of IFRS and individual financial statements will need to be reassessed. In addition, research could help introduce a degree of differentiation into financial reporting regulation for unlisted firms, because these firms are not a homogeneous group. Also, the convergence of national GAAP systems with IFRS will benefit from fresh research insights. Second, at the firm level, future research could analyze the extent to which the determinants and consequences of IFRS adoption, an area well researched for publicly traded firms (e.g. Cuijpers and Buijink, 2005), generalize to unlisted firms. Such research will help detect emerging patterns of accounting systems within an international context. It will generate insights into the disconnect of consolidated accounts from national influences, the degree of uniformity of consolidated accounts among international firms, the continued relevance of traditional classifications of international accounting systems for individual accounts and accounts of unlisted companies, and the convergence of national standards with IFRS.     

我国破产会计研究的回顾与评价

商品经济产生了企业的优胜劣汰、产生了企业破产制度,进而产生了企业破产会计的理论和实践。本文以1978年为起点,重点回顾了1978年以来我国企业破产会计研究的简要历程,分析了不同时期相关的政治、经济、法律等环境影响,总结了破产会计研究的主要成果和存在的问题,提出了改进我国企业破产会计研究的相关建议。     

Owner liability and financial reporting information as predictors of firm default in bank loans

We examine the effects of owner liability and non-accounting and financial accounting information on the probability of default as defined in Basel II in bank loan contracted by non listed firms. We model default as a function of owner liability and accounting and non-accounting information of non-listed firms, drawing on 43,117 annual accounts of 16,029 firms over a 7-year period. Our estimations based on mixed logistic regressions with random parameters show that the predicted default probability of full-liability firms is 0.72 times that of limited liability firms. The likelihood ratio test for omitted variables confirms the additional predictive ability of liability status over and above other non-accounting and financial accounting information. A Heckman self-selection model does not indicate sampling bias. The particular definition of default used in the study enables the findings to be generalizable across other institutional contexts.     

LARGE ACCOUNTING FIRMS’ SURVEY REVEALS EMERGENCE OF “TWO STANDARD” SYSTEM IN THE EUROPEAN UNION

Convergence with International Financial Reporting Standards (IFRS) as promulgated by the International Accounting Standards Board (IASB) is receiving great attention. In 2005, all listed companies domiciled in the European Union (EU) will be required to prepare consolidated accounts based on IFRS. Individual EU member states are, however, permitted to decide whether IFRS will be required or allowed for non-listed companies or for listed companies’ individual accounts. Based primarily on data collected by the six largest international accounting firms during their most recent convergence survey, this paper examines each of the 15 EU member states’ convergence plans and their perceived barriers to convergence.The findings indicate that most EU members do not plan to converge national GAAP with IFRS, thereby highlighting the great significance of the large firms’ concerns regarding emergence of a “two-standard” system in the EU. The survey indicates the majority of EU countries will continue to require or allow national GAAP for individual accounts. While Belgium is considering requiring IFRS for all consolidated accounts, other EU countries have decided to allow or are considering allowing non-listed companies to prepare IFRS consolidated accounts.In most EU countries, the link between financial accounting and tax accounting represents a major barrier to convergence. Other frequently cited barriers include disagreement with certain IFRS and the complicated nature of certain IFRS. International requirements for financial instruments are viewed as particularly problematic.     

Household Debt and Income Inequality, 1963–2003

I construct an economy with heterogeneous agents that mimics the time-series behavior of the earnings distribution in the United States from 1963 to 2003. Agents face aggregate and idiosyncratic shocks and accumulate real and financial assets. I estimate the shocks that drive the model using data on income inequality, aggregate income, and measures of financial liberalization. I show how the model economy can replicate two empirical facts: the trend and cyclical behavior of household debt and the diverging patterns in consumption and wealth inequality over time. While business cycle fluctuations can account for the short-run changes in household debt, its prolonged rise of the 1980s and the 1990s can be quantitatively explained only by the concurrent increase in income inequality.     

Through a glass clearly: management practice on the Bowes family estates c.1700-70 as revealed by the accounts

Through the accounts, the article examines the management practices employed on the Bowes estates in order to ascertain whether they were managed as profit centres to be exploited, and whether accounting aided managerial activity at this early stage of industrial development. The majority of the estate accounts were designed to keep track of rights and obligations. The survival of cost analysis, profit statements and planning data indicates that the estates were not treated simply as units of consumption and that the accounts played an important facilitating role. There are indications that a knowledge-power mechanism also existed within the estates, casting doubt both on the mutual exclusivity of Economic-rationalist and Foucauldian explanations of accounting activities and on the notion that a relevant distinction exists between modern and pre-modern business organization.     

我国中小企业政策:演进过程与创新思路

我国中小企业政策的演进过程,可以分为四个阶段:以"单一公有制"为特征的中小企业政策;以"分户口"和"所有制等级序列"为特征的中小企业政策;以"重大轻小"为特征的中小企业政策;统一整体的中小企业政策。构建我国中小企业政策体系的基本思路是:一要切实落实法律精神;二要设立专门管理机构;三要全面深入地加大整顿市场经济秩序的力度;四要建立中小企业的社会化服务体系;五要促进行业性中小企业协作会的建立;六要从政策方面进一步促进中小企业发展。