Patricia Everaert

Corporate social responsibility reporting: A comprehensive picture?

Abstract This study develops a content analysis framework that provides information on the comprehensiveness of corporate social responsibility (CSR) reporting, an important aspect of social and environmental accountability. Comprehensive reporting, as defined here, requires three types of information for each disclosed CSR item: (i) vision and goals, (ii) management approach, and (iii) performance indicators. The feasibility of the framework to assess the comprehensiveness of CSR reporting is demonstrated using the 2005 annual reports of a sample of publicly traded Belgian companies. The content analysis reveals a low level of comprehensive reporting. This finding complements those of prior studies on the completeness of CSR reporting and, therefore, feeds the debate regarding the extent to which CSR reporting can be considered a mechanism for discharging social and environmental accountability.

Cost modeling in logistics using time‐driven ABC: Experiences from a wholesaler

Purpose - The purpose of this paper is to describe the experiences of a wholesaler with time-driven activity-based costing (TDABC). Three research questions are addressed: How are complex logistics operations modeled by TDABC? Does TDABC provide more accurate cost information than activity-based costing (ABC)? How is TDABC cost information used? Design/methodology/approach - Case study research was performed at a Belgian wholesaler. Interviews were conducted. The cost and activity database was analyzed. Findings - This case study illustrates that there are logistics operations that cannot be modeled using a single cost driver, as is done with ABC. TDABC uses time equations to estimate the time spent on each activity. The results herein show how the time equations can capture the different complexities, by including different terms or interaction terms in the time equations. The database analysis clearly demonstrates that TDABC provided more accurate cost information than ABC at this case company. ABC oversimplified 64 percent of the activities, and misallocated 55 percent of all indirect costs. Research limitations/implications - This study is one of the first, investigating the experiences with TDABC. The results are derived from analyzing all activities, at a single case company. Practical implications - The study illustrates the technique of TDABC and provides a real company example of time equations in logistics. The users declared the TDABC model very useful for profitability reporting and profit management. The time drivers provided insight into the causes of excessive distribution and logistics costs. Originality/value - This paper complements current discussion on cost drivers and subtasks and logistics costing.

Cost targets and time pressure during new product development

Investigates the impact of using cost targets during new product development (NPD), in terms of design quality, product cost and development time. An NPD environment with cost targets is compared with an NPD environment where design engineers receive no specific cost targets, but are expected to “minimize” the cost level of future products. The impact of cost targets versus no‐cost targets is investigated in combination with high/low time pressure. The 2 * 2 factorial design was tested in a laboratory experiment that simulated a real design process, with customers asking for the highest design quality. The results demonstrate that cost targets during NPD lead to lower‐cost new products, while not impairing design quality or development time. However, under high time pressure, cost targets lead design engineers to work longer on the design, without a corresponding cost decrease.

Time-driven activity-based costing: exploring the underlying model

The authors propose the new approach to due diligence that employs sophisticated business modeling to identify profit opportunities in advance of an acquisition. They call it Fast-Track Profit Models, which leverages advances in process models and costing. Today, industry process templates can be customized to simulate actual operations of a prospective acquisition. Transaction data from the prospect can be run through this model to provide valuable and accurate insight into business profitability and performance across the enterprise. Specific opportunities and risks can be more rigorously identified. Synergies can also be quantified. The purpose of this article is to add a new tool that focuses on the specific opportunities to boost the profitability of the company. Through the new Fast-Track Profit Models, buyers can enjoy more accurate profitability, cost, and capacity utilization across the enterprise in days instead of months. These models highlight which specific customers, sales representatives, contracts, products, services and vendors are undermining profitability, and which changes can be made to enhance profits. This can be used for valuation, post-merger management, problem identification, exit strategies, and fundraising. In this article, the author will explain how this new tool works, demonstrate its success, and discuss its potential usage for would be acquirers, whether they be industry insiders or financial outsiders.

Characteristics of target costing : Theoretical and field study perspectives

Purpose – Despite appearing in the literature over 10 years ago as a potentially exciting cost management technique, there is still limited agreement about the nature of target costing. The purpose of this study is to explore the characteristics of target costing, and to test whether these characteristics were adopted in three European companies that used target costing. Design/methodology/approach – This paper draws on case study data, collected at three manufacturing companies (consumer electronics, machinery, and transportation equipment). Findings – The paper identifies eight characteristics of target costing, based on the early Japanese case descriptions. These characteristics are related to the way a target is set and how progress towards that target is measured. The findings of the case studies confirm these characteristics. However, some differences were found regarding the interpretation of the strict rule that “the target cost cannot be exceeded at product launch”. Research limitations/implications – The results indicate that future research on the adoption of target costing cannot be disconnected from its characteristics. Further studies might investigate whether degree of openness to suppliers, leadership position, time pressure and position in the supply chain can explain the noted differences in characteristics among companies. Practical implications – The characteristics identified in this paper provide an aid to researchers and managers considering target costing. Detailed case descriptions provide best practices examples for other companies. Originality/value – This study is the first empirical paper concerned with describing the typical characteristics of target costing. By exploring the characteristics, we hope to inspire others to further explore this interesting phenomenon.

Sourcing strategy of Belgian SMEs: empirical evidence for the accounting services

The primary objective of this paper is to examine the sourcing strategy for one business function (accounting services), by looking at the degree of outsourcing for each task of this function. Three research questions are addressed: (1) What sourcing strategy do SMEs use for accounting services? (2) What are the reasons? (3) Is there a link between sourcing strategy and company characteristics? The research design consisted of a postal survey sent out to 1200 managers of SMEs in Belgium. The main results showed that 53% use selective outsourcing, i.e. combining both an inhouse accountant with an accounting service provider. The results also showed that 35% use total insourcing and 12% prefer total outsourcing. Surprisingly, cost reduction is not the main reason for outsourcing. External expertise is the main reason for selectively outsourcing. SMEs select a total insourcing strategy because they want the accounting information at hand. Finally, larger SMEs decide for a total insourcing strategy and prefer to keep the accounting services internal. The conclusions show that future research should focus on the degree of outsourcing. The practical implication of this study is that accounting service providers should highlight their expertise and overcome the disadvantage of remote data analysis to attract more SME-customers.

How a Two-Step Approach Discloses Different Determinants of Voluntary Social and Environmental Reporting

Previous research on the determinants of voluntary social and environmental disclosure assumes that the determinants underlying the company’s decision to disclose and the disclosure level are the same. This paper addresses the influence of this assumption on: (i) the operationalization of the dependent variables; (ii) the estimation method; and (iii) the subsequent empirical results, using both a sample of listed Belgian and US firms. Overall, the findings suggest that not distinguishing between the determinants underlying the decision to disclose and the disclosure level may be misleading.

Intellectual capital disclosure commitment: myth or reality?

Purpose – The purpose of this paper is to compare intellectual capital disclosure in the prospectus of an initial public offering (IPO) with the intellectual capital disclosure in the subsequent annual report. The first objective was to investigate whether companies make a commitment toward intellectual capital disclosure. The second objective was to investigate whether companies report more on intellectual capital in the prospectus.Design/methodology/approach – This study investigated the prospectus and annual report using a sample of 55 firms that applied for an initial listing in Belgium and The Netherlands from 2005‐2009. A coding framework of 86 items was used to perform the content analysis.Findings – The existence of intellectual capital disclosure commitment was confirmed. Moreover, the results demonstrated that companies report more extensively on intellectual capital in their prospectus in comparison to their annual reports.Originality/value – This paper documents the first study to provide empi...

The impact of cultural factors on students’ learning style preferences : A global comparison between Japan, Australia and Belgium

Purpose - The purpose of this study is to examine empirically the relationship between cultural factors and students’ learning style preferences in the context of the current global convergence in accounting education. Design/methodology/approach - Kolbs Learning Style Inventory and Hofstedes Value Survey Model for Young People were administered to 244 undergraduate students studying accounting in Japanese, Australian and Belgian universities. Findings - The outcome of this research revealed that the student groups from Australia and Belgium tended to be more individualistic in their learning and were more willing to learn by doing, while Japanese students do not prefer to learn by doing, but prefer learning by watching. Originality/value - The results might be of interest to accounting educators to assist them with the smooth introduction of the International Education Standards (IES) by the International Federation of Accountants (IFAC) and the International Accounting Education Standard Board (IAESB).

Gender and Performance in Accounting Examinations: Exploring the Impact of Examination Format

This paper addresses the question of whether the increasing use of multiple-choice questions will favour particular student groups, i.e. male or female students. Using data from Belgium, this paper empirically examines the existence of a gender effect by comparing the relative performance of male and female students in both multiple-choice and constructed-response questions in financial accounting examinations. The study is motivated by the increasing number of students in accounting classes, changes in the gender mix in accounting classes, and debates over appropriate means of assessment. We find that female students outperform male students in answering questions in both formats, but their superiority in multiple-choice questions is diminished in comparison with constructed-response questions. This might suggest that multiple choice questions favour male students more than female students. The results hold even if we restrict the comparison to multiple-choice and constructed-response questions having the same general content (e.g. exercise type). Furthermore, the diminishing result was found both for undergraduate and postgraduate students. These results should prompt those involved in assessment to be cautious in planning the type of assessment used in evaluating students.