Lisa Ann McManus

The incidence, perceived merit and antecedents of customer accounting: an exploratory note

The results of a survey appraising the frequency and perceived merit of customer accounting (CA) practices are reported. Given the limited attention afforded the subject in the normative and empirical literatures, CA usage appears to be greater than what might have been reasonably anticipated. Evidence of a positive association between market orientation and CA, as well as a weak positive association between competition intensity and CA is provided.

Enhancing hotel managers’ organisational commitment: an investigation of the impact of structure, need for achievement and participative budgeting

This study investigates the role of decentralised structure and managers’ need for achievement as antecedents of participative budgeting, and the impact of the concurrent relationships of all three preceding variables on organisational commitment. Ninety-one managers from the Australian hotel industry participated in the study and data were analysed using path analysis. Direct and positive relationships were found between the two antecedent variables: decentralised structure and managers’ need for achievement, and participative budgeting. Participative budgeting, in turn, was found to have a direct and positive relationship with organisational commitment. The results of the study have implications for the design of effective management control processes and for human resource management of hospitality organisations.

Corporate governance, firm characteristics and risk management committee formation in Australian companies

Purpose - The purpose of this paper is to examine how a risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisations risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant. Design/methodology/approach - Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, Chief Executive Officer duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and the existence of a RMC, and the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 Australian Stock Exchange (ASX)-listed companies. Findings - The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity. Research limitations/implications - Data limited to top 200 top ASX-listed companies, thus restricting generalisability of the results. Originality/value - The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

Exploring the potential of customer accounting: A synthesis of the accounting and marketing literatures

A review of the marketing and accounting literatures has revealed that to date no previous study has examined the intersection of the marketing and accounting literatures pertinent to Customer Accounting (CA). This paper provides a synthesis of these two literatures by exploring the potential of CA. It updates the recent achievements in the CA literature from an accounting perspective and explores the nature of marketing based measures pertaining to customer marketing and management. It appears there is considerable potential for accountants to draw on points of focus raised in the marketing literature to further advance customer focused accounting measures of performance.

Ethical Evaluations and Behavioural Intentions of Early Career Accountants: The Impact of Mentors, Peers and Individual Attributes

This study examined how mentoring support, peer influence and individual attributes of early career accountants (ECA) influence their ethical evaluations and behavioural intentions. Respondents indicate that their evaluation of the seriousness of the ethical conflict is affected by the perceived standard of ethical conduct of their peers, their personal ethical orientation, the extent of ethics education at university, and gender. ECAs’ evaluation of a senior colleagues unethical behaviour is affected by mentoring support and the perceived standard of ethical conduct of peers. In terms of ECAs’ willingness to contact accounting professional bodies for ethical advice, the size of the accounting firm and the extent of their ethics education at university are significant factors. Furthermore, the likelihood of respondents choosing a more ethical decision is correlated with his or her individual ethical orientation and the extent of ethics education at university.

Extending the Boundaries of Customer Accounting: Applications in the Hotel Industry

In the context of the accounting, hospitality, and marketing literatures, this article explores the potential of applying novel customer accounting methodologies to hotel management. A review of the accounting literature has revealed little consideration given beyond allocating costs differentially across customers. The restricted nature of this approach is highlighted by considering differences in hotel patrons’ purchasing patterns occurring subsequent to the purchase of accommodation. Attention is also drawn to the minimal degree to which accounting commentaries have built on the “relationship marketing” philosophy that has recently commanded much attention in the marketing literature. In light of this philosophy, the notion of customers as assets is promoted and consideration is given to the methodology and implications of valuing customers as assets.

Funding common property expenditure in multi-owned housing schemes

Purpose – The purpose of this paper is to advance a set of criteria for appraising the merits of alternative options to financing common property capital expenditure in multi‐owned housing (MOH) complexes and to then draw on this conceptual framework to determine which mode of common property capital expenditure funding is preferable.Design/methodology/approach – A priori reasoning has been provided to pursue the studys objective.Findings – Sinking funds represent the preferred approach to financing common property expenditure in MOH schemes and special levies are the least preferred approach.Research limitations/implications – Due to the a priori based conceptual development undertaken, some subjectivity is bound to be invoked.Practical implications – The study provides key insights to government policy makers charged with drafting MOH legislation and provides strong support for those jurisdictions that require sinking funds to be raised in MOH complexes. The study also informs the owners executive comm...

Organisational and Professional Commitment of Early Career Accountants: Do Mentoring and Organisational Ethical Climate Matter?

This study assesses the effects of mentoring and organisational ethical climate (OEC) on the organisational and professional commitment (PC) of early career accountants (ECAs) (i.e. accounting graduate recruits with three or less years of working experience). The empirical data are based on a questionnaire survey from 86 ECAs in Australian public accounting firms, and hypothesis testing utilises partial least squares analysis. Our results indicate when a career development style of mentoring is adopted there is greater organisational as well as PC. By contrast, a social support mentoring style has no significant impact on organisational commitment (OC) and a negative effect on PC. Further, our data also reveal OEC to be positively associated with OC, and OC in turn having a positive impact on PC. The results imply that fostering a career-focused mentoring environment and an OEC can increase an ECAs OC and PC. These results have various implications for human resource management at both the accounting firm and professional levels.

A Comparative Study of the Effect of Web-Based Versus In-Class Textbook Ethics Instruction on Accounting Students’ Propensity to Whistle-Blow

The authors examined whether accounting students’ propensity to whistle-blow differed between those instructed through a web-based teaching module and those exposed to a traditional in-class textbook-focused approach. A total of 156 students from a second-year financial accounting course participated in the study. Ninety students utilized the web-based module whereas 66 students were instructed through a traditional teaching approach based on ethical problems presented in the textbook. Subsequently, when presented with a whistle-blowing situation, it was found that students exposed to a web-based ethics instruction module were more likely to whistle-blow than those students exposed to a traditional in-class textbook ethics instruction approach.