Sf Shimeld

Corporate governance, the GFC and independent directors

Purpose - – The purpose of this study is to understand how board composition and independent non-executive director (INED) disclosures have changed in light of the global financial crisis (GFC) from an accountability perspective. Design/methodology/approach - – Content analysis techniques were undertaken on a random sample of 75 publicly listed companies across two time periods, 2005 and 2010. Findings - – The findings highlighted increased INED board membership and increased skill and experience disclosure across all board positions, with the most significant increase being the INED position. The results support the notion that firms are attempting to restore their accountability relationships post-GFC through more transparent mechanisms of governance. However, concerns are also raised in the way individual companies are meeting the ASX Corporate Governance independence requirements. Research limitations/implications - – The results raise questions as to whether firms have implemented these changes to ensure effective governance and accountability responsibilities, or simply to give the appearance of good governance. Originality/value - – Little attention has been given in the literature to the characteristics of INEDs and whether board changes have been made in the wake of corporate and financial crises. The findings from this study contribute to an understanding of board composition and disclosures pre- and post-GFC.

Diversity ASX corporate governance recommendations: a step towards change?

Purpose The business case argument was used to underpin the inclusion of diversity disclosures within the Australian Securities Exchange (ASX) Corporate Governance Principles and Recommendations (2010). By adding a requirement for diversity disclosure, an increase in focus on diversity would be expected because of a heightened level of accountability. Whether this change in the Recommendations affected any change in the boardroom is questionable though. The purpose of this paper is to explore the effectiveness of these disclosure requirements. Design/methodology/approach The authors draw on data obtained from a random sample of 120 ASX-listed company annual reports across two time periods: 2009 and 2012 (before and after the change in the Recommendations). Findings Although findings indicate that there has been some change, especially in the more visible companies (ASX200), many of the changes appear to be largely superficial with a continued focus on the business case perspective. Social implications While the disclosure recommendations have the potential to be a driver in addressing gender inequity, the findings of this paper indicate that without deep change at the organisational level, requiring listed companies to disclose on gender diversity may have little impact, with the focus remaining on the business case and business as normal. Originality/value This paper contributes to the literature on gender diversity in the boardroom and the effect of disclosure. The empirical findings contribute to an understanding of the diversity Recommendations within the ASX Corporate Governance Principles and Recommendations, but in doing so, it calls for deeper organisational cultural change if real change is to take effect.

Using pictorial mnemonics in the learning of tax: a cognitive load perspective

The scope and complexity of the Australian taxation system (as with other tax regimes) is daunting for many accounting students. This paper documents the implementation of new practices that were initiated in an effort to address some of the challenges faced by undergraduate students studying taxation. Based on the principles of cognitive load theory, summaries of the lecture material became the focus of tutorials. These summaries provided the impetus for teaching staff to experiment with illustrations as a strategic means of delivery. Drawing diagrams and presenting them in the form of pictorial mnemonics proved to be effective tools in helping students understand and synthesize basic taxation concepts, thereby promoting effective deep learning. Both formal and informal feedback was overwhelmingly positive and affirming of this innovative approach to the subject. A selection of the pictorial mnemonics we designed is provided.