Caddy, I, Kay, J & Pazmandy, G 1994, Practical Compter Accounting Concepts and Applications.
AITKEN, MJ, CZERNKOWSKI, RM & HOOPER, CG 1994, 'The Information Content of Segment Disclosures: Australian Evidence', Abacus, vol. 30, no. 1, pp. 65-77.
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This paper investigates whether the voluntary decomposition of consolidated earnings disclosures into industry segments has information content in the sense that such disclosures better enable investors to predict earnings. The broad rationale underlying the experimental design is that if segment disclosure does enable investors to better predict earnings then residual abnormal returns (after controlling for unexpected earnings) surrounding the earnings announcements of firms providing segment disclosures should on average be significantly lower than a matched’ group of firms that do not provide this type of disclosure. Using a short event window design, our results support this view.
Taylor, SL 1994, 'Executive Share Options: An Economic Framework', Australian Accounting Review, vol. 4, no. 8, pp. 13-21.
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This paper provides an overview of the executive compensation debate with special emphasis on the role of executive share options. Widespread criticism of executive pay typically concentrates on pay levels, rather than the composition of executive pay and its determinants. The paper points out that gains from exercising executive share options are not simply rewards for the period in which they are realised and reported. The economic rationale for rewarding executives through share options is reviewed, leading to the conclusion that options are more likely to form a relatively important part of executive remuneration in organisations which face valuable, but relatively risky, investment opportunities. However, because options can aggravate conflicts of interest such as those that arise between shareholders and lenders, they are not a universally efficient form of executive compensation.
