Rosalind H. Whiting

Intellectual capital and firm performance in Australia

Purpose – This study aims to examine the effect intellectual capital (IC) has on firm performance of Australian companies.Design/methodology/approach – Quantitative data are collected for Australian companies listed between 2004 and 2008. IC is measured using Pulics value added intellectual coefficient (VAIC) and its components (human, structural and capital employed efficiencies (HCE, SCE, CEE)). Direct and moderating relationships between VAIC, HCE, SCE, and CEE and four measures of performance are statistically analysed.Findings – The results suggest that there is a direct relationship between VAIC and performance of Australian publicly listed firms, particularly with CEE and to a lesser extent with HCE. A positive relationship between HCE and SCE in the prior year and performance in the current year is also found. However evidence also suggests the possibility of an alternative moderating relationship between the IC components of HCE and SCE with physical and financial capital (CEE) which impacts on ...

Voluntary disclosure of intellectual capital in New Zealand annual reports and the “hidden value”

Purpose – The papers purpose is to describe the extent and type of voluntary disclosure of intellectual capital (IC) in New Zealand, and to test for a relationship between “hidden value” (difference between firms market and book value), and its relationship to voluntary IC disclosure in the annual reports of New Zealand companies. The study aims to incorporate the effect of revaluations and growth expectations.Design/methodology/approach – Content analysis of 70 publicly listed New Zealand firms, and database retrieval of independent variable data. Correlation and regression analysis is undertaken.Findings – Only revaluing firms show a significant positive relationship between their levels of hidden value and their voluntary disclosure of IC and its components of external and internal structure. Explanatory power is increased when an interaction term involving hidden value and growth expectations is introduced.Research limitations/implications – Further developments in the growth expectation and market ...

Student-led and teacher-led case presentations: empirical evidence about learning styles in an accounting course

Educators and employers alike have made repeated calls for developing graduates who are active, interdependent, and independent learners. While the use of business case studies has been a frequently promoted method for achieving this objective, there is a dearth of information about how best to use the case study method, i.e. should the method be student- or teacher-led? The findings from this study suggest that the choice is far from trivial. Teacher-led cases, which were associated with low levels of student involvement in and responsibility for the case study, resulted in poorly balanced learners. According to learning style theory, these students are less capable of carrying out plans and tasks and show less proclivity for becoming involved in new experiences. Such a finding reinforces Libbys (Issues in Accounting Education 6(2), 193–213, 1991) view that the presence of cases is not the panacea to enhancing generic learning skills. Rather, it is how the case studies are used and the level of student involvement that is of vital importance.

Firm characteristics and intellectual capital disclosure by Australian companies

Purpose – This study seeks to examine the presence of voluntary intellectual capital disclosure (ICD) in Australian company reports and the influence of company characteristics (industry type, ownership concentration, listing age, leverage and auditor type) on ICD.Design/methodology/approach – This is an empirical quantitative study that statistically tests a theoretically motivated explanatory model of ICD. ICD data were gathered from the annual reports of 70 Australian publicly listed firms using content analysis (CA).Findings – Presence of ICD was low, with external capital being the most frequently disclosed category. Correlation and regression analysis demonstrated that companies that operate in high technology‐based or knowledge‐intensive industries, and companies with large Big Four auditing firms show more extensive ICD than those in other industries and without Big Four auditors. A companys ownership concentration, leverage level and listing age did not influence the occurrence of ICD.Research l...

The Influence of Business Case Studies on Learning Styles: An Empirical Investigation

Abstract The use of business case studies has been promoted frequently as a method for providing realistic learning scenarios and for developing accounting graduates who are active and independent learners. This article extends a recent study into the use of case studies (Adler et al. 2004, Accounting Education: an international journal, 13(2), 213–229). In the light of evidence that indicated that exposure alone to business case studies did not lead to balanced learning styles, the researchers replicated the study a year later, with two changes. The survey was administered at a later point in the particular accounting course, and the course itself occurred later in the academic year. This gave the opportunity to test for a longer treatment time, with students who had more experience of university study. The results of the second survey confirm and extend those of the first, namely, that a lack of active involvement in cases results in less balanced learning styles. Further, even when students have experienced the benefits of active participation, the suspension of such involvement also leads to an erosion of learning style balance. That is, not only is it important to consider how case involvement occurs, it is also necessary to maintain business case activity. The result of non-involvement is a stronger tendency to acquire information from theoretical bases rather than from concrete experience. The fact that the present survey occurred later in the management accounting programme had no discernible effect on the results.

Women and the Prospects for Partnership in Professional Accountancy Firms

This paper examines three possible reasons (stereotypical discrimination, structural obstacles and employees preferences) for the lack of women partners in professional accountancy firms in Australia, UK and New Zealand. Data are collected from an experimental survey and interviews of current partners. Whilst womens perceived preferences and organisational structural barriers contributed strongly to the lack of women partners in all sizes of firms, traditional stereotypical discrimination against women at the partnership decision point was only displayed in metropolitan large non-Big 4 firms, and it is suggested that this is related to intense competitive pressure and a constrained partnership resource.

Perceived Usefulness of Business Succession Planning and Chartered Accountants' Involvement in the Process

Abstract This study provides qualitative data on the business succession (BS) planning process of a sample of New Zealand small and medium enterprises (SMEs), the usefulness of that process and the usefulness of Chartered Accountants’ (CAs’) input into BS planning. Interviews of owners of five provincial family SMEs revealed that BS planning was undertaken in a semi-formal manner and was useful in planning for change to a ‘more balanced lifestyle’, providing reassurance to family members and maintaining business continuity. Assistance from CAs was essential for the technical and financial issues of BS. Successful advice was enhanced by a long-term, trustworthy and honest relationship between the CA and the client. SME owners preferred to address the emotional and personal relationship issues of succession without input from the CA. Four recommendations to CAs on their involvement in BS planning are suggested.

A tool for measuring SMEs’ reputation, engagement and goodwill: A New Zealand exploratory study

Purpose The purpose of this paper is to develop a rating and scoring tool for measuring small and medium enterprises’ (SMEs) reputation, engagement and goodwill (REG), including internet presence and following on social media, by an exploratory study undertaken in New Zealand. Design/methodology/approach A discrete choice experiment (DCE) applying the PAPRIKA method via an online survey was conducted to determine weights representing the relative importance of six indicators related to SMEs’ REG. Usable responses were received from 159 people involved with SMEs. Cluster analysis to identify participants with similar patterns of weights was performed. Findings The six indicators, in decreasing order of importance (mean weights in parentheses), are: “captured” customer opinions about the business (0.28); contact with customer database (0.19); website traffic (0.16); Google Search ranking (0.15); size of customer database, (0.11); and following on social media (0.11). These indicators and weights can be used to rate and score individual SMEs. The cluster analysis indicates that participants’ age has some influence on their weights. Research limitations/implications Only 159 usable responses for the DCE. Practical implications The indicators and their weights provide a practical and inexpensive tool for measuring SMEs’ REG. Originality/value This is the first study to use a DCE to determine weights representing the relative importance of indicators included in a tool for measuring SMEs’ REG. The tool is innovative because it includes readily available indicators of firms’ internet presence and following on social media.

Microfinance institutions’ transparency in Sub-Saharan Africa

ABSTRACT This study analyses the impact of the ownership structure and macro-level factors on Microfinance institutions’ (MFIs) transparency in Sub-Saharan Africa (SSA). Using cross-sectional data from 223 MFIs in 11 countries, we find that MFI transparency in SSA is low and highly variable. Our results indicate that larger MFIs and non-governmental organizations (NGOs) are associated with greater transparency. Greater transparency of NGOs is consistent with the need to sustain and attract donor funding. Country-level resources, such as the level of financial sector development, also impact MFI transparency.

The Determinants of Regulatory Responses to Risks from Financial Innovation: Post GFC Evidence for the G20

We explore the factors that shape the response of G20 countries to a Financial Stability Board (FSB) recommendation aimed at mitigating the risks from financial innovation. Using the FSB’s Implementation Monitoring Network Surveys, we develop an index of disclosed strength of regulatory response. We find that G20 countries have displayed large interpretive differences, little forward planning and have emphasized regulatory capabilities over firm capabilities when addressing the recommendation. Countries with strong central banks, more concentrated regulatory structures and bank-based financial systems responded more robustly, while countries with a large financial sector were marginally associated with a weaker response.