Loose coupling in asset management systems in the NHS

This paper aims to identify whether the components of a loose-coupled system were present in the asset management systems of the National Health Service (NHS) in Wales and, if so, whether this had a negative impact. By utilising a qualitative analysis of semi-structured interviews with senior officials at two NHS Hospital Trusts together with the findings of a survey of all of the Hospital Trusts in Wales, we conclude that the asset management system of the NHS in Wales exhibits the features of a loosely coupled system with detrimental consequences. Where information on capital assets has been required below board level, lower management relies on local systems, while the information for senior managers and political leaders relies on the management accounting system and ad hoc enquiries. The result has been an impairment of the ability of lower management to reconfigure capital assets which leads to the nation's health service underperforming.     

Is ‘benchmark beating’ by Australian firms evidence of earnings management?

We investigate the extent to which Australian firms that report small profits and/or small increases in earnings (i.e. benchmark beaters) have done so by the upward manipulation of these earnings. Although evidence of an unusually large number of firms managing to just beat such earnings benchmarks has been interpreted as evidence of earnings management, this approach fails to identify those firms that are the manipulators from those where unbiased earnings fall naturally into the benchmark beating group. Our results suggest that caution is required in interpreting benchmark beating as an indicator of the extent of earnings management. Using several methods for estimating the unexpected accrual component of earnings, we show that although benchmark beaters have larger positive unexpected accruals than other firms, a similar result holds when firms with small losses or earnings declines (i.e. ‘just miss’ firms) are compared with other firms. Moreover, there is no statistically significant difference between unexpected accruals for the benchmark beating and just miss groups. At a minimum, we reject the joint hypothesis that unexpected accruals capture earnings management and that an unusual kink around zero in the distribution of earnings levels or earnings changes is caused by earnings management.     

Institutional sustainability: ‘community’ and waste management in Zimbabwe

This article addresses sustainability as a social process. In doing so it extends beyond the Brundtland notion of present and ‘future generations’ to grapple with the divergent social worlds in which the term is constructed by different actors. It is thus concerned with how learning can take place within development interventions to enable actors to build new norms and behaviours which cut across social divides. A framework has been developed to (i) explore and make explicit the assumptions held by stakeholders; (ii) develop an awareness of the nature and practices of accountability; (iii) build an understanding of cause and effect (attribution) in relation to action. It is suggested that structured participation in these processes can help to build inter-organizational and inter-associational learning which can provide the basis for new norms and behaviours stretching beyond the formal life of any intervention (institutional sustainability). The article draws on research from Zimbabwe, however it is suggested that the framework can have applicability in many situations.     

Discovering the ‘international’ in accounting and finance

As higher education in accounting and finance moves increasingly in the direction of internationalisation of degree programmes and student populations, this paper reflects on the ways in which contemporary research contributes to the academic community's understanding of the rich potential of evidence available on international convergence and diversity.Reviews of research published in recent years have pointed to strong parochiality in the research questions and data choices of many researchers. This paper looks for a meta-structure of cross-sectional international comparisons across a range of papers at one point in time. Research papers of 2005 are selected from eight journals giving a broad coverage of subject matter.A cultural framework is proposed as a basis for an ethnographic view of the data and findings of empirical research papers. Cultural diversity is found as an explicit discussion in some papers but others are silent or even apologetic for cultural differences.Country-specific studies reveal the potential for comparative studies on a wider geographical basis but the achievement of such an aim will require the academic research community (editors, reviewers and authors) to show flexibility in dealing with smaller data sets and greater uncertainty about the nature of accounting information. Most importantly this review shows the considerable wealth of interest waiting for those who take time to peruse academic journals.     

Earnings management, lawsuits, and stock-for-stock acquirers’ market performance

There is a positive association between stock-for-stock acquirers’ pre-merger abnormal accruals and post-merger announcement lawsuits. The market only partially anticipates the effects of post-merger announcement lawsuits at the merger announcement and the post-merger announcement long-term market underperformance is largely limited to litigated acquisitions. Overall, the evidence suggests that it is important that investors not only undo the direct stock price effects of earnings management but also factor the contingent legal costs associated with earnings management.     

医院管理中绩效考核作用的探讨

按照我国医疗体制改革的要求,坚持科学发展观,不断提高医院的服务水平,优化医院内部管理,促进医院的可持续发展,绩效考核发挥着极其重要的作用。本文通过对我国医院实行绩效考核的重要性、科学性、实用性、有效性等方面进行分析,就医院如何建立考核指标体系,医务工作者如何转变工作方式和服务模式,医院如何提高竞争力做了进一步探讨。     

Public Investment,the Stability Pact and the ‘Golden Rule’

The fiscal rules set in the Treaty of Maastricht and in the Stability and Growth Pact have sometimes been criticised as an excessively binding constraint for appropriate counter‐cyclical action. The risk that the rules may permanently reduce the public sector's contribution to capital accumulation has also been pointed out. In this framework, the adoption of a ‘golden rule’ has been suggested. Starting from the recent debate, this paper tackles two questions: (a) the implications of the Pact for public investment and (b) the pros and cons of introducing a golden rule in EMU's fiscal framework, given the objectives of low public debts and adequate margins for a stabilising budgetary policy. The analysis suggests that the rules set in the Treaty and in the Pact may negatively influence public investment spending. However, the golden rule, although intuitively appealing, does not seem to be an appropriate solution to the problem.     

Meanings of the term ‘sustainable development’ in Finnish corporate disclosures

There is an on-going discursive struggle over how the social and environmental problems related to modern societies should be understood and resolved. Sustainable development has become a pre-eminent concept in these discussions and businesses are increasingly employing the term in their communications. However, sustainable development means “different things to different people in different contexts” [Bebbington, J. (2001). Sustainable development: A review of the international development, business and accounting literature. Accounting Forum, 25(2), 128–157; see p. 129]. Thus, there have been recent calls in the literature to analyse what the companies are actually saying in their disclosures [Thomson, I., & Bebbington, J. (2005). Social and environmental reporting in the UK: A pedagogic evaluation. Critical Perspectives on Accounting; Kolk, A. (1999). Evaluating corporate environmental reporting. Business Strategy and the Environment, 8, 225–237]. Subscribing to the social construction of reality, this study critically assesses how the term ‘sustainable development’ is constructed in the disclosures of Finnish listed companies.

Overall, in the disclosures, sustainable development is constructed as a win-win concept, which allows society to enjoy economic growth, environmental protection and social improvements with no trade-offs or radical restructurings in the social order. However, behind the usual business rhetoric, there is very little evidence of anyone actually walking this talk. Accordingly, this research calls for further discussion on companies’ role in achieving sustainable development and on the business interpretation of sustainable development in general.     

The role of international banking in the ‘oil surplus’ adjustment process

In the rapidly changing and dramatically volatile oil market in which the balances of payments of the various countries are characterized by an unpreeendented variability, the role of international banks in the intermediations between countries, has been crucial. The stabilization function of the banking system which is instrumental in allowing a more rational oil production policy and investment policy has been since 1980 under considerable stress due to a decline of deposits. In this paper we shall first analyze the general framework of the problem and then the specific decision process of the banking system by emphasizing the differences between micro- and macroeconomic aspects.     

Wisdom or Widgets: Whither the School of ‘Business’?

The development of quantitative methods has proved to be invaluable in contemporary academic life; it has opened up the world to empirical studies. Yet there is a cost. 'The mind of man,' writes John Dewey, 'is taken captive by the spoils of prior victories' (Gummere, 1988, p. 25). In the social sciences, and particularly in the business area, quantitative methods have become a fetish and have led to the crowding out of non-empirical work. 'Wisdom or Widgets' examines the implications of this disturbing phenomenon.     

Discussion of ‘Strategic pricing by Big 4 audit firms in private client segments’

This article discusses the paper by Dutillieux et al., (2013). The comments are in four main areas, regarding the importance of the research question, the setting in which the study is located, the theoretical development of the study and some thoughts regarding both supply‐ and demand‐side considerations around auditor change.     

Loan officers and loan ‘delinquency’ in Microfinance: A Zambian case

The paper seeks to promote greater understanding of the importance of loan officers in group-based microfinance by explaining their actual roles, dilemmas and tensions when working with poor clients. Few existing studies have used data outside Bangladesh and most focus upon relatively well-performing institutions. Using data from Zambia this study focuses on the recent crisis of Christian Enterprise Trust of Zambia (CETZAM) and the effects of its practices for accounting for and dealing with defaulters. The findings firstly show that loan officers faced powerful hierarchical accountability pressures and pursued inappropriate methods to compel further repayments to resolve this crisis. Its approach to borrower default was found to be stressful for loan officers and potentially detrimental for CETZAM's own short and long-term survival by reducing client loyalty and trust.     

The NHS Plan: Accounting for investment and reform in twenty acute hospital trusts in England (1998–2003)

The National Health Service (NHS) Plan published in 2000 summarised Labour's commitment to modernising the NHS in England. The NHS would receive substantial additional funding bringing expenditure on health, as a share in national income, to levels comparable with a European average. The promise of secure financing from government promised to reduce uncertainty and facilitate medium term resource planning in the NHS. Extra funding, as outlined in the NHS Plan, would also be tied into capital and labour process reform(s) to ensure that investment translated into the much needed additional capacity to treat patients. During the period 1998–2003 funding for an average acute hospital has increased 50% in cash terms satisfying expectations set out in the NHS Plan. It is now an appropriate time to review progress. Using information collected for 20 acute hospitals, selected on the basis that they had started and completed PFI projects in the period 1998–2003. This paper constructs a physical and financial audit which is then used to reveal the degree to which acute hospital finances are now secure and the extent to which physical capacity to treat patients has been robustly transformed.     

A Consulting Giant; a Disgruntled Client: A ‘Failed’ Attempt to Change Management Controls in a Public Sector Organisation

There has been very little research into management consulting interventions in public sector organisations, especially in emerging economies. This paper aims to fill this void by narrating the empirics of a consulting assignment carried out by a large international consulting firm in a Pakistani public sector organisation. The study found that consultants’ recommendations of ‘businesslike’ management controls, such as a modern performance measurement system and a ‘state‐of‐the‐art’ information system, were rejected outright by the client management. Employing a critical realist perspective that focuses on the structural conditions facing both the client and the consultants, and on the strategies adopted by both parties, the study aims to explain the empirics of the case. Through structural and strategic analysis, this paper aims to enhance our understanding of the dynamics of management consulting in public sector organisations, especially in emerging economies.     

Education and the economy: rethinking the question of learning for the ‘knowledge’ era

This paper argues that advanced industrial societies are (i) addressing ‘intended and unintended consequences’ of economic and technological development, and (ii) responding to dilemmas that cannot be solved by existing schema and routines. Paradoxically, the current education–economy/lifelong learning debate rests on traditional interpretation of the concept of learning (i.e. acquisition of pre-existing knowledge and skill). The paper argues that a sociological and educational theory of learning is needed to assist people and communities to use ideas originating from one context to resolve the dilemmas experienced in another. It introduces the concept of ‘reflexive learning’ to illustrate how to reformulate public education policies to address these issues.     

Telework remains ‘made to measure’ The large-scale introduction of telework in the Netherlands

About 25% of all jobs in the Netherlands can be done in telework. We cannot give a quantitative overview of the costs and benefits of telework, partly due to the ‘made to measure’ quality of telework projects, but a qualitative overview shows that overall telework will be beneficial both on the micro and macro level, provided its introduction is voluntarily for all involved. The main barrier to the introduction is that organizations do not know enough about the implementation process. Considering the differences between organizations, a large-scale introduction of telework can be stimulated by creating a large variety of telework examples. Telework will have to remain ‘made to measure’.     

The role of managerial risk‐taking in the ‘rise and fall’ of the CDS market

Since the innovation of credit default swaps (CDSs) in 1997, the market for CDSs grew dramatically to $62 trillion in 2007 (ISDA 2010). However, this market declined significantly with the onset of the GFC, prompting the question, ‘What lies behind the phenomenal growth and the eventual collapse of the CDS market?’ Using CDS spread data from 319 bank and non‐bank financial institutions across 33 countries over the period 2001–2010, I provide evidence of the determinants that affect risk‐taking by financial institutions, proxied by CDS spreads, and argue within an agency theoretical framework that managerial risk‐taking contributed to the ‘rise and fall’ of the CDS market.     

Management accounting,performance measurement and strategy in English local authorities

This paper analyses the results of an extensive survey of UK local government which explored the relationship between strategy, management accounting practices (MAPs), and performance measurement techniques (PMTs). The research investigated a resource-based view of strategic capabilities and Porter’s strategic typologies. PMTs and MAPs were shown to be associated with strategic capabilities. Strategic typologies, however, were found to be only weakly associated with the use of PMTs and MAPs.     

IFRS and U.S. GAAP: Assessing the impact of reporting incentives on firm restatements in foreign and U.S. markets

This study examines the impact of reporting incentives on firm restatements in foreign and U.S. markets. We investigate whether financial reporting, using International Financial Reporting Standards (IFRS) results in quality disclosures, given differences in institutional and market forces. This study examines the quality of financial statements prepared in accordance with IFRS and U.S. GAAP by concentrating on firm restatements as a measure of earnings management. Our results indicate that there is no significant difference in the value of restatements due to differences in accounting standards when the rule of law is high in the international market. Furthermore, firms with better law enforcement and higher traditions of law and order, tend to have smaller restatement amounts or less earnings manipulation. This study contributes to the literature by providing evidence of the quality of financial information prepared under IFRS and its dependency on the institutional factors and market forces of a country.