R&D Accounting and the Tradeoff Between Relevance and Objectivity

We use a simulation model for a pharmaceutical R&D program to examine the tradeoff between objectivity and relevance of accounting information under various methods of R&D reporting. A simple capitalization rule, similar to the successful-efforts method of capitalizing oil and gas exploration costs, provides a stronger relation between accounting information and economic values than immediate expensing of R&D outlays or capitalizing the full cost of outlays. The superior relevance of this "successful-efforts" method persists even when earnings management is widespread.     

“This is England”: Punk rock's realist/idealist dialectic and its implications for critical accounting education

This paper studies the lyrics of two songs from the Clash, one of the two most important bands from the U.K.'s ‘first wave of punk’ scene. The paper interprets the songs within their institutional, social, economic and political context, i.e. pre-Thatcher and Thatcher Britain. I then draw out the implications of the Clash's punk ideology for critical accounting educators today, and especially the implications for ethics education. The Clash's message and moral compass are especially relevant today as (like the Clash's England) both Bush's America and an immediately post-Howard Australia have been vastly altered by a harsh neo-liberalism under which alternative (and especially collectivist) voices have been frequently mocked and suppressed. The Clash was able to simultaneously be both realist and idealist and, whilst this contradiction captured the hearts of many, the classic line-up of the band was to disintegrate under the weight of its own contradictions. The critical accounting community is reminded to continue to aspire to both aspects of the realist/idealist dialectic that is so vividly apparent in the Clash's powerful and poignant early work and especially from the self-titled debut album up to Sandinista!     

Racial biases in recruitment by accounting firms: The case of international Chinese applicants in Australia

This paper documents the difficulties in finding accounting work faced by international Chinese accounting graduates in Australia in the two years after graduation. We argue that Chinese accounting graduates remain a marginalised group within today's Australian society. The interview results support this assertion, with even high-achieving Chinese graduates finding it difficult to obtain work with mainstream accounting firms and corporations. The main reasons appear to be their lack of Australian working experience, lack of knowledge of Australian culture, and lack of “Australian English”. Australian accounting firms, due to a revealed preference to hire white Australian graduates, appear to be missing out on a vast reservoir of Chinese talent. Chinese accounting graduates speak two or three languages and have established business networks in China or at the very least insider knowledge of how that country's business culture operates. Whilst their sub-cultural capital may be lower on average than white graduates on some conventional measures, it is higher in those areas of bilingual capability and cross-cultural knowledge which are becoming of increasing importance to Australian business.     

Analyst Specialization and Conglomerate Stock Breakups

This paper examines whether firms emerging from conglomerate stock breakups are able to affect the types of financial analysts that cover their firms as well as the quality of information generated about their performance. Our sample comprises 103 focus-increasing spin-offs, equity carve-outs, and targeted stock offerings between 1990 and 1995. We find that, after these transactions, sample firms experience a significant increase in coverage by analysts that specialize in subsidiary firms' industries, and a 30–50% increase in analyst forecast accuracy for parent and subsidiary firms. The improvement in forecast accuracy is partially attributable to expanded disclosure. However, forecast improvements for specialists exceed those for non-specialists, leading us to conclude that corporate focus can facilitate improved capital market intermediation by financial analysts with industry expertise.     

The industrial relations of appraisal: the case of teachers

The industrial relations of appraisal is a neglected area. Here the author examines the introduction of an appraisal scheme of a unionised, public sector occupational group, and shows how an apparently individualised approach is collectivised by union involvement. It draws on documentary sources, quantitative and qualitative data in the analysis.     

European integration: Venture capital in Europe

The Single European Act has stimulated venture capital in Europe, especially in cross border transactions. The European Community recognizes the importance of venture capital and has developed programs to further nurture this industry.     

The Internetalisation of information,knowledge, and interaction components of the firm's internationalisation process

Abstract

Transcending traditional national borders, the Internet is an evolving technology that has opened up many new international market opportunities. However, ambiguity remains, with limited research and understanding of how the Internet influences the firm's internationalisation-process components. As a consequence, there has been a call for further investigation of the phenomenon. Thus the purpose of this study was to investigate the Internet's impact on internationalisation-process components, specifically, information availability, information usage, and interactive communication, with international market growth. Analysis was undertaken using structural equation modelling. Findings highlight the positive mediating impact of the Internet on information availability and usage, with the international market growth of the firm.