Michael Sherer

Corporate social accounting disclosure in Thailand

Little is known of the actualities or possibilities of corporate social reporting in Thailand. This study aims to move towards an appreciation of this neglected but important area. This survey focuses on the annual reports of Thai companies, and thereby contributes to a tradition of related prior empirical work upon corporate social accounting practices which has to date largely focused upon English‐speaking and Western contexts. Its concern is to gain insights into and to critically appraise various dimensions of these annual reports, so as to construct a critique of corporate social disclosure in Thailand. Pursuing a critical perspective sensitive to the context of Thailand, it is concluded that the various aspects of the Thai accounting disclosure that are analysed are disabling, and more generally that the Thai practices explored fall short of their potential to function as enabling communication.

ERP Customization Failure: Institutionalized Accounting Practices, Power Relations and Market Forces

Purpose: This paper examines a detailed case study of Enterprise Resource Planning (ERP) customization failure in an Egyptian state-owned company (AML) by drawing on new institutional sociology and its extensions. It explains how ERP customization failure is shaped by the interplay between institutionalized accounting practices, conflicting institutions, power relations and market forces.Methodology/Approach: The research methodology is based on using an intensive case study informed by new institutional sociology, especially the interplay between conflicting institutions, power relations and market forces. Data were collected from multiple sources, including interviews, observations, discussions and documentary analysis.Findings: The findings revealed that the inability of the ERP system to meet the core accounting requirements of the control authorities (the Central Agency for Accountability) was the explicit reason cited for the ERP failure. The externally imposed requirements of the Uniform Accounting System and planning budgets were used to resist both other institutional pressures (from the Holding Company for Engineering Industries) and market and competitive pressures.Research limitations: There are some limitations associated with the use of the case study method, including the inability to generalize from the findings of a single case study, some selectivity in the individuals interviewed, and the subjective interpretation by the researchers of the empirical data.Practical implications: The paper identifies that the interplay between institutional pressures, institutionalized accounting practices, intra-organizational power relations, and market forces contributed to the failure to embed ERP in a major company. Understanding such relationships can help other organizations to become more aware of the factors affecting successful implementation of new ERP systems and provide a better basis for planning the introduction of new technologies. Originality/value of paper: This paper draws on recent research and thinking in sociology, especially the development and application of new institutional sociology. In addition, the paper is concerned with ERP implementation and use and management accounting in a transitional economy, Egypt, and hence contributes to debate about exporting Western accounting practices and other technologies to countries with different cultures and different stages of economic and political development.

Audit automation as control within audit firms

This paper explores the nature of audit automation as control within audit firms. The themes of the paper are control over the work process and audit staff, deskilling and resistance, and competition, which are analysed using the theoretical framework provided by Coombs et al., who applied Giddens’ structuration theory to research the impact of information technology in organizations. Building on a previous survey study we interviewed audit staff at all levels in two Big 5 audit firms. The results show that audit automation cannot be viewed simply as a technology for improving the quality and/or productivity of the audit process. It also has value as a symbol of the firm’s market competitiveness and hence helps to promote the firm both to clients and internally. In addition, the research shows that audit automation offers considerable opportunities for greater managerial surveillance and control, but at the same time it facilitates a less hierarchical and more informal organisational structure.

Audit Automation in the UK and the US: A Comparative Study

The purpose of this paper is to investigate the nature and extent of the use of audit automation by audit firms in the UK and the US. In particular, the paper seeks to identify the significant differences between practices in the two countries. The authors argue in the paper that there are two main forces that might account for these differences. On the one hand, globalization tends to promote similar audit automation practices in the two countries. On the other hand, cultural factors mitigate homogeneity in audit automation practices. The research consisted of a survey of current audit automation practice in large and medium sized audit firms in the UK and the US. The principal conclusions from the research are: (1) that there are differences in the practice of audit automation in the UK and the US; (2) that these differences persist even amongst Big 6 firms. These two conclusions would suggest that cultural differences are not dominated by the forces of globalization. The authors also conclude that (3) the most important benefit of audit automation in both countries is perceived to be improvements in audit quality; and (4) the most important costs across all types of audit firm are training and staff learning time.

Analysis of Changes in External Accountability and Accounting in Privatized Industries: A Case Study of British Gas

This study investigates the consequences of regulation for organizational and accounting change in privatized industries by means of a case study of the gas industry, with particular emphasis on issues of accountability and the role of accounting information. The paper extends Stewart and Ransons (1988) discussion of the distinctive conditions which apply to public and private sector organizations by highlighting an important interim phase in relation to privatized industries, where public service obligations coexist to varying degrees with private sector objectives. The extension of their framework of public and private sector models to include a new ‘commercial’ model provides the basis for an analytical framework encompassing the three cultures — that is, public service, commercial and competition — which is used to understand organizational change in the gas industry.

A weighting for accountants in southern universities? A note on the academic staff recruitment problem

Abstract This note discusses the factors that influence demand for academic accounting staff in UK universities and the supply of suitably qualified applicants, with particular reference to regional variations. The authors urge the adoption by universities of a more positive strategy towards the recruitment of accounting staff, particularly in southern universities, where accounting is under-represented as a university discipline and recruitment is most difficult.

In the name of others: an investigation of earnings management motives in Egypt

Previous literature on earnings management (EM) indicates that managers are motivated to adjust reported income to serve their own self-interests, and to try and influence capital markets. However, previous research has failed to provide an appropriate theoretical underpinning for EM and has ignored the effect of cultural and environmental factors on shaping managers’ motivations. Therefore the purpose of this paper is to draw on interpretive methodology and new institutional sociology (NIS) theory to identify the external factors that motivate managers of Egyptian companies to use EM to modify financial statements.,The research adopted an interpretative methodology and interview methods. Interviewees were conducted with 34 participants, who were divided into four different categories; executives, financial analysts, auditors and stock exchanges’ authorities.,This paper provides empirical evidence on the range of external factors that motivate Egyptian corporate executives to adjust the earnings number in financial statements. These external factors include the expectations of investors, lenders and employees, the impact of stock exchange listing rules, beating an earnings target, and the privatisation of key state-owned companies.,The authors recognise that the paper has a number of limitations. The research is concerned solely with EM in Egypt and, therefore, it would not be safe to generalise the results to other contexts, even in the Middle East. Further research on the behaviour of managers towards EM in other countries would be useful to test validity of the results reported in this paper.,The principal contribution of this paper is to build on the previous EM literature to include external factors within the Egyptian context which motivate Egyptian managers to manage the earnings of companies in an upward direction. It adds additional EM motives to available literature including: employees, stock exchange’s rules, privatisation and meeting industrial norms. Also, the paper provides evidence of the effect of concentrated share ownership on managers’ likelihood to engage in EM behaviour. The paper also extends NIS theory to recognise the importance of the interplay between institutional and economic environment by including economic reform, and non-financial providers as factors that can explain the EM behaviour.

Mind that gap! An investigation of gender imbalance on the governing bodies of UK universities

This paper evaluates the factors affecting the representation of females on governing bodies of UK universities. Applying resource dependence and stakeholder theory, the paper argues that it is in the interests of the organisation that there should be an equitable gender balance on the governing bodies of universities. Using data from university websites and the Higher Education Statistics Agency, the authors observe the proportion of female members of UK university boards to be 32%, higher than the corporate sector and similar to Parliament, but unsatisfactory, given that it fails to reflect the percentage of female staff and students at UK universities. The principal findings of the research are that a gender imbalance persists across the sector with some differences between different types of university. For example, there are lower levels of overall female board membership for ‘New’ (post 2000) universities, but lower female outsider members in pre-92 universities.

The effect of political-economic reform on the quality of financial reporting in Egypt

Purpose This paper aims to study the influence of political-economic reform and especially privatisation on the quality of financial reporting of the Egyptian companies. Design/methodology/approach The paper analyses data from official documents and 34 interviews with company executives, financial analysts, external auditors and Stock Exchange regulators to inform our understanding of the relationship between changes in the Egyptian environment and the quality of financial reporting. Findings The findings of the research suggest that the recent Egyptian political-economic reform, resulting in privatisation has significant influence on negative accounting practices and hence on lowering the quality of financial reporting through its effect on: departure from uniform accounting system and public accounting regulations; issuing new stock exchange regulative rules; reviving the role of Stock Exchange; and increasing competition within Stock Exchange regarding raising funds. Originality/value This paper contributes to the literature by identifying the effect of socio-cultural factors on motivating executives to 7 exercise negative accounting practices and hence producing low-quality financial reports (FRs) and by highlighting the fact that accounting practices cannot be generalised worldwide due to the absence of universal socio-cultural factors which shape these practices. This paper employs new institutional sociology theory and contributes to that theory by acknowledging the active interplay between institutional context and economic environment.

Research Methodology and Methods

The previous chapter discussed the theoretical framework that this study uses to analyse the empirical results. This chapter describes the design and implementation of the empirical phase of the study. It explores the research methodology and techniques used to collect empirical data. The remainder of this chapter is divided into seven sections. Section 4.2 presents different research methodologies and their relation to theory and research method selection. Section 4.3 discusses the interpretive case study as the preferred method for collecting empirical data. Section 4.4 describes the pilot case study that clarified the research issues and research design. Section 4.5 describes the design of the case study and the organisations and individuals chosen for the empirical study. Section 4.6 discusses data collection methods particularly the use of semi-structured interviews which was selected as the main method. Section 4.7 discusses the weaknesses and problems of the case study method. The last section provides a summary and conclusion.