New development: The conceptual underpinnings of international public sector accounting

The conceptual underpinnings of accounting standards are potentially very important for the future of public sector accounting internationally. The authors explain why and comment on the implications for public sector accounting.     

Is American business working for the poor?

At first glance, poverty seems to have little to do with business. When most people--managers included--think about poverty, they assume that people are poor because they are isolated from the mainstream economy, not productive participants in it. But according to Harvard University professors Mary Jo Bane and David Ellwood, this is a misleading image of the true face of poverty in the United States today. Most poor adults--and a full 90% of poor children--live in families where work is the norm, not the exception. Poor people often work or want to work. But at the low-wage end of the American economy, having a job is no guarantee of avoiding poverty. Poverty is a business issue, then, because the American poor are part of the American work force. And this poses a problem for managers. In a more competitive and fast-changing economic environment, the performance of companies increasingly depends on the capabilities of their employees. In response to this human-resource challenge, more and more managers are embracing the language of "empowerment". And yet how can low-wage employees believe empowerment when their experience of work is, quite literally, impoverishment? It is unlikely that American companies can create the work force of the future with the poverty policies of the past. Fortunately, there are some simple policy mechanisms that can assist the working poor without putting an undue burden on business. Enacting them, however, requires managers to see poverty policy as one part of a national human-resource strategy that links the strategic concerns of companies to a broad social agenda.     

In search of lost time: the temporal construction of innovation management

This paper presents a methodology that is new to the field of innovation management research (IMR), and which is founded upon current interest in theories of time and temporality within organisation studies. We argue that although time is of central importance to innovation management, established methodologies treat time as simply the background against which organisation is done. Even when research is conceptually framed to afford greater attention to time, established methodologies only succeed in highlighting the importance of managers' mobilisation of the past, present and future of innovations. In contrast, we present a methodology that affords time (rather than innovation actors) the more prominent role in analyses and explanations of innovation management. While established research methodologies might offer accounts of the social construction of organisational innovation, we elaborate its temporal construction. The paper reviews the ways in which time and temporality have been deployed (conceptually and methodologically) within IMR. Following a detailed account of the new methodology, its value to innovation management scholarship is demonstrated with a short illustration in which new insights are presented into the emergence of novelty during the management of innovation. The paper concludes with suggestions of areas within IMR where this methodology may generate new insights.     

Federal Regulation of Use of Genetic Information by Insurers

This paper analyzes policy developments at the national level during 1997, including proposed federal legislation and the response of the insurance industry. With broad bipartisan support, it appears that some form of federal regulation is likely within the next two sessions of Congress. The debate appears to be centering on two issues: the definition of genetic information and whether regulation will extend to a blanket prohibition on testing. The insurance industry is suggesting that restrictions based on an “unfair discrimination” standard would permit coverage and cost distinctions based on actuarially sound data, while the health care industry is opposed to any discrimination based on genetic information. A utilitarian ethical perspective would likely support restrictions on testing for life insurance but not health insurance.     

Mergers,acquisitions, and the pruning of managerial deadwood

This research investigates the role that mergers and acquisitions may play in the disciplining of entrenched and inefficient managers. The relationship between a company's performance history and its subsequent top management turnover is assessed for a sample of target companies, their parents, and a control group of companies not involved in merger and acquisition activity. The results reveal that target company top management turnover is higher than ‘normal’ in the 2 years immediately following a merger or acquisition, but there is no relationship between previous target company performance and its subsequent top management turnover. Further analyses indicate that first-year target company turnover rates are associated with a history of relatively poor parent company performance, while second-year turnover rates are associated with a history of relatively good parent company performance.     

Old wine in new bottles: IFRS adoption in NHS foundation trusts

UK public sector organizations, including NHS foundation trusts, have changed to International Financial Reporting Standards (IFRS). Treasury aims were ‘to bring benefits in consistency and comparability between financial reports in the global economy and to follow private sector best practice’. This comparative analysis of foundation trusts' financial statements under IFRS shows worse financial results and lower surpluses for the year, higher values of fixed (non-current) assets and more indebtedness than under UK GAAP. Implications of the new accounting regime on comparability and transparency of NHS organizations are discussed—some wine shows improvement, while other wine looks worse in the new bottles.     

Examining Audit Committees in the Corporate Governance of Public Bodies

Public bodies have adopted corporate governance regimes from the private sector assuming that accountability and performance will be improved. This paper analyses audit committees in a local public body context, NHS foundation trusts (FTs). Audit committees play a key role in enhancing governance. FTs follow the recommendations made by Monitor, their independent regulator. FTs, however, appear to adapt the role of the audit committee to meet the accountability needs of the wider stakeholders of public hospitals. Audit committees assure (vertical) financial accountability, and also provide assurance along horizontal lines of accountability to local communities, professional bodies and other stakeholders.