Mark Andrew Brimble

Perceptions of the Prevalence and Seriousness of Academic Dishonesty in Australian Universities

Academic dishonesty is a fundamental issue for the academic integrity of higher education institutions, and one that has lately been gaining increasing media attention. This study reports on a survey of 1206 students and 190 academic staff across four major Queensland universities in relation to student academic misconduct. The aim of the survey was to determine the prevalence of academic misconduct, and to investigate the extent to which perceptions of dishonesty are shared between students and staff, as preliminary steps toward developing effective strategies to deal with the academic dishonesty/misconduct problem. Results indicate a higher tolerance for academic misconduct by students in comparison to staff, particularly with respect to falsification of research results and plagiarism, as well as considerable underestimation by staff of the prevalence of virtually all forms of student academic misconduct. Overall, the study’s findings confirm the significance of the issue of academic dishonesty within the Australian tertiary sector, indicating considerable divergence between students and staff in terms of perceptions of the seriousness and prevalence of student academic misconduct. We suggest that university administrators need to examine this issue closely in order to develop mechanisms for managing and curtailing the level of academic misconduct, since a failure to do so may lead to a further undermining of the academic integrity of the Australian tertiary sector.

On the Intertemporal Value Relevance of Conventional Financial Accounting in Australia

This paper examines whether the relevance of conventional (earnings focused) accounting information for valuation has declined in Australia over a recent period of 28 years. Motivation is provided by the anecdotal concerns of financial analysts, accounting regulators, and a cluster of US centric academic research papers that conclude that the relevance of financial accounting (and earnings in particular) has declined over time. After controlling for nonlinearities and stock price inefficiencies, we find that the value relevance of core accounting earnings has not declined. A possible exception is found for small stocks. We also observe that net book values are relatively less important in Australia when compared to the USA. Our results are informative for investors who require feedback on valuation issues and the International Accounting Standards Board regulators in any further moves towards a balance sheet focus.

Where there is a WIL there is a way

While work‐integrated learning (WIL) is seen as a way to address the call for improved ‘employment readiness’ and generic skills of graduates, it has been stated that WIL programs need to be ‘well managed and structured’ and ‘well integrated’. To provide such structure and integration a Professional Development (PD) Program was developed to assist students who would undertake a WIL internship as part of their business degree. This paper details evidence of the impact of the PD Program for first year students compared to those undertaking a conventional orientation process. The preliminary evidence demonstrate that structure and integration of the PD Program has had positive effects in terms of generic skills, satisfaction and self‐efficacy.

Determinants of Client-Professional Relationship Quality in the Financial Planning Setting

Advice provided by financial planners has the potential to impact the financial and emotional well being of clients. Despite the outcomes of quality financial planning relationships, there is little direct evidence to support the importance of ‘relationship quality’ in financial planning. Previous research has emphasised the importance of relationship quality in psychology, nursing, and business settings. This research investigates determinants of client-professional relationship quality in financial planning, measured in a survey of clients and financial planners regarding relationship factors of trust, engagement, empowerment, ownership, client activity and commitment. Ratings for relationship dimensions were compared between clients and financial planners, with financial planners found to overestimate their clients’ levels of trust and commitment and underestimate their client’s levels of empowerment. The relationship dimension of ‘trust’ was found to be critical for client-professional relationship quality.

The Relative Ability of Earnings and Cash Flow Data in Forecasting Future Cash Flows: Some Australian Evidence

Purpose: This paper examines the relative predictive ability of earnings, cash flow from operations as reported in the cash flow statement, and two traditional measures of cash flows (i.e. earnings plus depreciation and amortisation expense, and working capital from operations) in forecasting future cash flows for Australian companies. Further, an empirical investigation of the extent to which firm size, as a contextual factor, influences the predictability of earnings and cash flow from operations is presented. Methodology: Our sample includes 323 companies listed on the Australian Stock Exchange between 1992 and 2004 (3,512 firm-years). We employ the ordinary least squares and fixed-effects approaches to estimate our regression models. To evaluate the forecasting performance of the regression models, both within-sample and out-of-sample forecasting tests are employed. Findings: We provide evidence that reported cash flow from operations has more power in predicting future cash flows than earnings and traditional cash flow measures. Further, the predictability of both earnings and cash flow from operations significantly increases with firm size. However, the superiority of cash flow from operations to earnings in predicting future cash flows is robust across small, medium and large firms.

Assessing the risk relevance of accounting variables in diverse economic conditions

Purpose - This paper aims to examine the contemporary association between accounting information and a number of measures of systematic (beta) risk that incorporate dynamic market features. The goal is to determine the fundamental accounting drivers of beta and to assess whether their explanatory variable power has changed or declined over time. Design/methodology/approach - Beta estimates are calculated using adjustments for thin-trading, central tendency, leverage, and time variance. Accounting risk variables are derived from theoretical foundations and prior empirical research, and classified as operating, financial or growth. Findings - Results show a strong association between accounting variables (operating and growth) and systematic risk that is consistent over time, but with some industry and size differences and possible country effects. Accounting variables are able to capture dynamic risk shifts and generally are able to outperform naive M-GARCH and industry betas in predicting next years systematic risk. Practical implications - Internal management and external decision making enable the development of more efficient Originality/value - This is the first paper that assesses the association between a range of dynamic risk measures and accounting variables and tests whether this long-run association has changed over time.

Islamic Investment Behaviour

Purpose - In the past decade, there has been strong growth in Islamic finance and banking across the globe, there is little empirical evidence on the impact of religiosity on financial decisions. This paper aims to address this issue. Design/methodology/approach - This paper uses an experimental design to investigate the investment behaviours of a group of Muslims. Findings - The paper finds that Islam does influence investment behaviour, however, the degree to which it does this is influenced by the degree of religiosity of the individual. In addition, evidence is found of “Western style” wealth maximisation amongst Muslim investors as well as a desire to consider sustainable investment principles in asset allocations. Research limitations/implications - These findings have implications for investors, financial advisors, and policy makers. Originality/value - The paper is original its use of the experimental design to test the impact of religiosity in the context of investment decisions by Muslims.

Climate Change and Financial Regulation: Challenges for the Financial Sector Following the Global Financial Crisis

Regulation has played a significant role in shaping the financial services sector in Australia over the past few decades. Regulatory changes have included the establishment of the Australian Prudential Regulation Authority (APRA), floating the Australian dollar, allowing foreign financial institutions to operate domestically, the introduction of the superannuation guarantee charge, and the removal of interest rate controls. As the economy emerges from the worst financial crisis since the Great Depression, a new force of change that is recognised as one of the most significant sources of risk and opportunity facing the business community in the foreseeable future has come to the forefront: climate change. Climate change is expected to be a significant change agent in the financial services sector as extreme weather patterns, sea level rises and atmospheric changes impact on asset values (both investment and lending), project finance and risk products. The financial services industry will particularly be affected by these developments, both as a provider of financial products (capital, credit, investment, advice and insurance) and through its powerful influence on the economy in terms of capital allocation. In addition, industry constituents will be impacted significantly by government regulation in this area (reporting, emissions trading and environmental policies) with respect to both their own business practices and those of their clients. This study reports the results of interviews conducted with senior members of the finance sector working in the sustainability area to gauge their perceptions of the challenges facing the sector with respect to climate change. Our results confirm that that regulatory intervention will be critical to climate change response gaining traction and momentum. In particular, regulatory certainty will promote engagement, especially in relation to the Carbon Pollution Reduction Scheme (CPRS), with other developments needed in terms of information disclosure, performance and remuneration, and incentive programs. Accordingly, the significant potential risks and opportunities that climate change presents to the sector, and to the broader economy, will in part be managed/realised only if a swift and significant regulatory response is achieved.

Critical success factors in managing sustainable Indigenous businesses in Australia

Purpose The aim of this paper is to investigate success factors pertinent to the management of Indigenous businesses through the identification of points of intervention at the systemic and structural levels. Through utilising this approach, the economic and social values that First Nations communities attach to intangible Indigenous Cultural Heritage (ICH) and Indigenous Cultural Intellectual Property (ICIP) may be both recognized and realized as assets. Design/methodology/approach This paper adopts a multidisciplinary approach to address a global issue of economic and social significance to First Nation Peoples, their businesses and the Australian Aboriginal communities. We adopt a First Nation epistemological standpoint that incorporates theoretical perspectives drawn from a diverse range of fields and theories (see Preston, 2013) as well as advocating the use of Indigenist methodology for research with First Nation Peoples as it is underpinned by critical race theory. Findings We argue conceptually, that accounting, accountability and auditing consideration are required to fully identify what is impacting the successful management of Indigenous enterprises. Specifically, in relation to accounting, Elders should be included to assist in valuing intangible Indigenous Cultural Heritage and Indigenous Cultural Intellectual Property assets. Furthermore, we emphasize the need to improve the financial and commercial literacy levels of Indigenous entrepreneurs. Practical implications We prescribe the use of tools for the accounting treatment of Indigenous Cultural Heritage and Indigenous Cultural Intellectual Property as intangible assets within an Australian regulatory environment and define an auditing process and accountability model incorporating cultural, social, and environmental measures. A central tenet of this model relates to improving levels of personal and commercial financial literacy in the First Nation participants. Collectively, these factors promote informed participation and decision-making, and may promulgate more sustainable outcomes. Originality/value Integrated thinking requires all factors to be considered in a holistic manner, such that a First Nation enterprise and the wider Aboriginal and Torres Strait Islander peoples can understand, and make decisions based on, the overall impact it has on all their stakeholders and generally on society, the environment and the economy.

The Potential Role of Housing Equity in a Looming Baby Boomer Retirement Cash-flow Crisis: An Australian Perspective

Abstract With Australia’s 5.5 million “baby boomer” generation and tens of millions of others around the world now transitioning into retirement, government and community resources for the developed world’s rapidly ageing populations are increasingly stretched. A key emerging problem is that some retirees do not have sufficient asset liquidity to finance post-retirement consumption needs. This is seemingly despite households holding substantial assets in the form of housing equity in many countries. The family home has the potential to change from a direct investor private financial asset to a more flexible, securitized, financial instrument. The purpose of this paper was to examine the role of housing equity in supporting retirement consumption and income needs and easing financial stress in later retirement. The paper also examines the potential for new financial instruments tailored for retirees seeking to decumulate housing equity at low cost. Incorporating panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, we illustrate the role of housing in Australian household portfolio composition in particular and the experience of homeownership for different Australian households, with the primary objective being to identify issues that affect home equity decumulation.