Bond, D, Bugeja, M & Czernkowski, R 2012, 'Did Australian Firms Choose to Switch to Reporting Operating Cash Flows Using the Indirect Method?', AUSTRALIAN ACCOUNTING REVIEW, vol. 22, no. 1, pp. 18-24.
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In 2007 Australian accounting standards were amended to allow a choice of presenting operating cash flows using either the direct or indirect method. This study investigates the number of ASX-listed entities that switched to the indirect format. Our results indicate that between 2007 and 2009 nine companies changed their reporting format. The firms adopting the indirect method have similar leverage, liquidity and performance to industry and size-matched controls. Given that previous research indicates that the direct method provides superior information for predicting cash flows and performance, our results will be welcomed by financial statement users and the Australian Accounting Standards Board. © 2012 CPA Australia.
Bond, D, Czernkowski, R & Wells, P 2012, 'A team‐teaching based approach to engage students', Accounting Research Journal, vol. 25, no. 2, pp. 87-99.
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PurposeThe purpose of this paper is to describe the process of renewal undertaken in a large undergraduate financial reporting subject.Design/methodology/approachThe approach taken in the subject is one in which student engagement is critical. Selected quantitative and qualitative data from university course and student feedback surveys were used to assess the effectiveness of the renewal process.FindingsThe renewal process led to increased student engagement, and influenced student learning by demonstrating the relevance of financial reporting regulation. Feedback was also positive in relation to the level of resources, especially technological, provided in the subject.Originality/valueEngaging with students is a critical task in any subject, but especially in a technical accounting subject, as students may not necessarily see the value in the content. This article reveals possibilities for academics to engage with their students and for their students to engage with the subject material.
Bugeja, M & Sinelnikov, K 2012, 'Public versus private takeovers of Australian stock exchange listed targets', AUSTRALIAN JOURNAL OF MANAGEMENT, vol. 37, no. 3, pp. 391-414.
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In this study we investigate the association between bidding firm listing status and the abnormal returns and characteristics of target firms, in the context of Australian takeovers. Similar to the US, target abnormal returns are significantly lower in private bids. However, this difference is only significant when comparing public bidders with private non-operating bidders suggesting the results are driven by a lack of operating synergy available to non-operating bidders rather than public bidder agency problems. We also study how target firm characteristics differ between public and private bidders. The results indicate that different private bidders have alternative motivations for making an acquisition. Private equity targets have a less independent board than targets of public bidders and are more undervalued. In comparison, targets of private bidders without existing business activities are smaller, have higher management ownership, lower growth and lower cash flows than targets of public bidders.
Bugeja, M, Matolcsy, ZP & Spiropoulos, H 2012, 'Is there a gender gap in CEO compensation?', JOURNAL OF CORPORATE FINANCE, vol. 18, no. 4, pp. 849-859.
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The gender pay gap generates significant political and social debate. This study contributes to this discussion by examining if a gender pay gap exists at the highest level of corporate management, the CEOs. While previous studies have documented a gender pay gap for most levels of executives the findings with respect to CEOs are conflicting. In this paper we focus only on CEO's as it is the most homogenous of executive roles and does not require us to assume that executives with similar titles undertake identical roles. Our evidence is based on 291 US firm-years for the period of 1998-2010. We do not find any association between CEO pay and gender using both the total sample and a sample matched using propensity scores to control for firm characteristics. These insignificant results hold for total pay, salary and bonuses, and for different matching procedures and econometric specifications. Our results therefore indicate that women who rise through the 'glass ceiling' to the level of CEO are remunerated at similar levels to their male counterparts. © 2012 Elsevier B.V..
Bugeja, M, Rosa, RDS, Duong, L & Izan, HY 2012, 'CEO Compensation from M&As in Australia', JOURNAL OF BUSINESS FINANCE & ACCOUNTING, vol. 39, no. 9-10, pp. 1298-1329.
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We investigate Australian CEO compensation following mergers and acquisitions (M&As). We find CEOs of acquiring firms receive higher compensation in the year of M&A completion and one year after. We also find a positive correlation between CEO compensation and firm performance, and some measures of CEO effort and skill in completing the deal. However, CEOs of bidding firms receive a lower bonus and other compensation if they wield more managerial power (that is, if the CEO sits on the nominating committee, has a higher level of share ownership, or the board has more executive directors). This result is in sharp contrast to the US where compensation is influenced by CEO power. Overall our findings are more consistent with the predictions of the incentive alignment theory rather than the managerial power theory
Lanis, R & Richardson, G 2012, 'Corporate social responsibility and tax aggressiveness: An empirical analysis', JOURNAL OF ACCOUNTING AND PUBLIC POLICY, vol. 31, no. 1, pp. 86-108.
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This study examines the association between corporate social responsibility (CSR) and corporate tax aggressiveness. Based on a sample of 408 publicly listed Australian corporations for the 2008/2009 financial year, our regression results show that the higher the level of CSR disclosure of a corporation, the lower is the level of corporate tax aggressiveness. We find a negative and statistically significant association between CSR disclosure and tax aggressiveness which holds across a number of different regression model specifications, thus more socially responsible corporations are likely to be less tax aggressive in nature. Finally, the regression results from our additional analysis indicate that the social investment commitment and corporate and CSR strategy (including the ethics and business conduct) of a corporation are important elements of CSR activities that have a negative impact on tax aggressiveness.
Lu, F, Balatbat, M & Czernkowski, R 2012, 'Does consideration matter to China's split share structure reform?', ACCOUNTING AND FINANCE, vol. 52, no. 2, pp. 439-466.
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We investigate the share market response to China's split share structure reform and find average negative daily return around the government announcement on 29 April 2005. However, there is a turnaround at individual companies' decision to implement the reform where we find positive and significant average daily return, contingent on the type of consideration. We attribute this change in market sentiment to the company's announcement that the reform will involve the payment of consideration to holders of tradable A-shares. Our results also show that holders of tradable A-shares earn significant abnormal daily returns when companies propose to pay in cash or warrants or combine any of these payment methods with bonus shares. © 2011 The Authors. Accounting and Finance © 2011 AFAANZ.
Matolcsy, Z, Shan, Y & Seethamraju, V 2012, 'The timing of changes in CEO compensation from cash bonus to equity-based compensation: Determinants and performance consequences', Journal of Contemporary Accounting & Economics, vol. 8, no. 2, pp. 78-91.
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This study examines the determinants and performance consequences of changes in CEO compensation structure. The study uses the unique setting when Australian companies have changed from cash bonus to equity-based compensation. While most US CEOs receive some form of equity-based compensation, Australian CEOs have not always been paid equity-based compensation. According to efficient contracting theories, we argue that the change to equity-based compensation is driven by changes in firm characteristics and by the occurrence of CEO turnover, the latter of which provides a less costly opportunity for such change. Our results are consistent with the above arguments. We also document a significant negative association between changes in compensation structure and subsequent firm performance in the following year, even after controlling for CEO turnover and poor governance environments. Overall, our results suggest that the initial change to equity-based compensation is part of an error learning process made by firms that leads them towards efficient CEO compensation contracts.
Matthews, LR, Bohle, P, Quinlan, M & Rawlings-Way, O 2012, 'Traumatic Death at Work: Consequences for Surviving Families', International Journal of Health Services, vol. 42, no. 4, pp. 647-666.
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Research and policy on occupational health and safety have understandably focused on workers as the direct victims of workplace hazards. However, serious illness, injury, or death at work also has cascading psychological, social, and economic effects on victims' families and close friends. These effects have been neglected by researchers and policymakers. The number of persons immediately affected by workplace death is significant, even in rich countries with relatively low rates of workplace fatality. Every year, more than 5,000 family members and close friends of Australian workers become survivors of traumatic work-related death (TWD). This study investigated the health, social, and financial consequences of TWD on surviving families. In-depth exploratory interviews were conducted with seven family members who had experienced TWD from one to 20 years before the interviews, with an average of three years. All reported serious health, social, and financial consequences, including prolonged grief and unresolved loss, physical health problems, family disruption and behavioral effects on children, immediate financial difficulties, and disturbance of longer term commitments such as retirement planning. Recommendations for policy development and improved practice are proposed to minimize the trauma and suffering experienced by families, mitigate consequences, and improve outcomes following a TWD.
Taylor, S & Wong, L 2012, 'Robust anomalies? A close look at accrual-based trading strategy returns', ACCOUNTING AND FINANCE, vol. 52, no. 2, pp. 573-603.
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The last 40 years have seen an extensive literature documenting so-called anomalies in major capital markets. Evidence of abnormal returns associated with trading strategies based on readily observable phenomena such as accounting-based data involves experimental design choices that can be expected to influence the results. We show how evidence of an accrual anomaly in Australia is sensitive to research design specifications such as the choice of proxy for total accruals; the definition of abnormal returns (i.e. the return generating model); the impact of data trimming as a response to exceptionally large returns; and the choice between value and equal weighting of returns. We show that research design choices do matter and help reconcile conflicting prior evidence of any accrual anomaly in Australia. More broadly, our results suggest the need for caution in drawing inferences from trading strategy tests which claim to identify anomalies.
Wieder, B, Ossimitz, M & Chamoni, P 2012, 'The Impact of Business Intelligence Tools on Performance: A User Satisfaction Paradox?', International Journal of Economic Sciences and Applied Research, vol. 5, no. 3, pp. 7-32.
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While Business Intelligence (BI) initiatives have been a top-priority of CIOs around the world for several years, accounting for billions of USD of IT investments per annum (IDC), academic research on the actual bene?ts derived from BI tools and the drivers of these bene?ts remain sparse. This paper reports the ?ndings of an exploratory, cross-sectional ?eld study investigating the factors that de?ne and drive bene?ts associated with the deployment of dedicated BI tools. BI is broadly de?ned as an analytical process which transforms fragmented data of enterprises and markets into action-oriented information or knowledge about objectives, opportunities and positions of an organization; BI tools are software products primarily designed and deployed to support this analytical process (e.g. data warehouse software, data mining software, digital dashboards applications).
Bedford, DS 1970, 'Controlling contradictory modes of innovation and implications for firm performance', Manufacturing Accounting Research Conference, Helsinki, Finland.
Bedford, DS 1970, 'Controlling contradictory modes of innovation and implications for firm performance', 35th Annual Congress European Accounting Association Programme, European Accounting Association (EAA), Ljubljana, Slovenia.
Bugeja, M & Loyeung, AL 1970, 'Goodwill accounting and takeover premiums: pre- and post- IFRS', American Accounting Association Annual Meeting and Conference on Teaching and Learning in Accounting, American Accounting Association, Washington, DC.
Bugeja, M, Czernkowski, RM & Moran, DV 1970, 'Did IFRS 8 increase segment disclosures?', American Accounting Association Annual Meeting and Conference on Teaching and Learning in Accounting, American Accounting Association, Washington, DC.
Bugeja, M, Czernkowski, RM & Moran, DV 1970, 'Did IFRS 8 increase segment disclosures?', AFAANZ Conference, AFAANZ, Melbourne, Australia.
Bugeja, M, Czernkowski, RM & Moran, DV 1970, 'Did IFRS 8 increase segment disclosures?', British Accounting and Finance Association Annual Conference 2012, British Accounting and Finance Association, Brighton, United Kingdom.
Bugeja, M, Matolcsy, ZP & Spiropoulos, H 1970, 'Is there a gender gap in CEO compensation?', British Accounting and Finance Association Annual Conference 2012, British Accounting and Finance Association, Brighton, United Kingdom.
Bugeja, M, Matolcsy, ZP & Spiropoulos, H 1970, 'Is there a gender gap in CEO compensation?', 35th Annual Congress European Accounting Association Programme, European Accounting Association (EAA), Ljubljana, Slovenia.
Czernkowski, RM, Bugeja, M & Moran, DV 1970, 'Did IFRS 8 increase segment disclosures?', 35th Annual Congress European Accounting Association Programme, European Accounting Association (EAA), Ljubljana, Slovenia.
Ferguson, AC, Pereira Pundrich, G & Raftery, AM 1970, 'Auditor industry specialisation and market segmentation: Evidence from the Perth mining cashbox market', AFAANZ Conference, AFAANZ, Melbourme, Australia.
Giacobbe, F, Matolcsy, ZP & Wakefield, JA 1970, 'Control of wholly owned foreign subsidiaries: An integrated approach', AFAANZ Conference, AFAANZ, Melbourne, Australia.
Jin, K, Shan, Y & Taylor, SL 1970, 'Changes over time in the matching between revenues and expenses: Australian evidence', AFAANZ Conference, AFAANZ, Melbourne, Australia.
Lewis, RL, Brown, DA & Sutton, NC 1970, 'The paradox of management control and employee empowerment', AFAANZ Conference, AFAANZ, Melbourne, Australia.
Loyeung, AL & Bugeja, M 1970, 'Goodwill accounting and takeover premiums: pre- and post- IFRS', 35th Annual Congress European Accounting Association Programme, European Accounting Association (EAA), Ljubljana, Slovenia.
Loyeung, AL & Wells, PA 1970, 'Implementation errors and earnings quality', British Accounting and Finance Association Annual Conference 2012, British Accounting and Finance Association, Brighton, United Kingdom.
Wakefield, JA & Giacobbe, F 1970, 'Control of wholly owned foreign subsidiaries: A transaction cost economics approach', British Accounting and Finance Association Annual Conference 2012, British Accounting and Finance Association, Brighton, United Kingdom.
White, A & Simnett, R 1970, 'Decision Making Under Uncertainty: Auditor Stopping Rules', International Symposium on Audit Research, Waseda University, Tokyo, Japan.
White, A, Simnett, R & Harding, N 1970, 'Auditor decision making under uncertainty: Discovering auditor stopping rules', American Accounting Association Annual Meeting and Conference on Teaching and Learning in Accounting, American Accounting Association, Washington, DC.
Wieder, B, Ossimitz, ML & Chamoni, P 1970, 'The Impact of Business Intelligence Tools on Performance: A User Satisfaction Paradox?', http://www.icesal.org/2012%20PROCEEDINGS/Proceedings_2012.htm, 9 th International Conference on Enterprise Systems, Accounting and Logistics, Chania, Crete, Greece, pp. 1-6.
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While Business Intelligence (BI) initiatives have been a top-priority of CIOs around the world for several years, accounting for billions of USD of IT investments per annum (IDC), academic research on the actual benefits derived from BI tools and the drivers of these benefits remain sparse.This paper reports the findings of an exploratory, cross-sectional field study investigating the factors that define and drive benefits associated with the deployment of dedicated BI tools.BI is broadly defined as an analytical process which transforms fragmented data ofenterprises and markets into action-oriented information or knowledge about objectives, opportunities and positions of an organisation; BI toolsare software products primarily designed and deployed to support this analytical process (e.g. data warehouse software, data mining software, digital dashboards applications).Building upon DeLone and McLean’s (1992, 2002 and 2003) information systems success model, we develop, test and refine a BI quality and performance model adapted for the specific purpose, application, user group and technology of BI tools. The ultimate performance predictors in this model are user satisfaction and the impact of BI tools on managerial decision quality, both of which are determined by data quality.Partial Least Square (PLS) modeling is used to analyse data collected in a surveyadministered to IT executives of large Australian Stock Exchange (ASX) listed companies.The results confirm some of the theoretical relationships established in – especially the original – DeLone-McLean model in the specific context of BI. More importantly, the results also confirm the important role of explicit BI management as antecedent of benefits derived from BI tools, and the key impact of data quality on managerial decision making and organizational performance.However, the results also reveal a ‘user satisfaction paradox’: In contrast to the predictions derived from the DeLone-McLean m...
