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Purpose Postmodernist ideas – most particularly those of Foucault but also those of Latour, Derrida and Barthes – have had a much longer presence in accounting research than in other business disciplines. However, in large part, the debates in accounting history and management history, have moved in parallel but separate universes. The purpose of this study is therefore one of exploring not only critical accounting understandings that are significant for management history but also one of highlighting conceptual flaws that are common to the postmodernist literature in both accounting and management history. Design/methodology/approach Foucault has been seminal to the critical traditions that have emerged in both accounting research and management history. In exploring the usage of Foucault’s ideas, this paper argues that an over-reliance on a set of Foucauldian concepts – governmentality, “disciplinary society,” neo-liberalism – that were never conceived with an eye to the problems of accounting and management has resulted in not only in the drawing of some very longbows from Foucault’s formulations but also misrepresentations of the French philosophers’ ideas. Findings Many, if not most, of the intellectual positions associated with the “Historic Turn” and ANTi-History – that knowledge is inherently subjective, that management involves exercising power at distance, that history is a social construct that is used to legitimate capitalism and management – were argued in the critical accounting literature long before Clark and Rowlinson’s (2004) oft cited call. Indeed, the “call” for a “New Accounting History” issued by Miller et al. (1991) played a remarkably similar role to that made by Clark and Rowlinson in management and organizational studies more than a decade later. Originality/value This is the first study to explore the marked similarities between the critical accounting literature, most particularly that related to the “New Accounting History” and that associated with the “Historic Turn” and ANTi-History in management and organizational studies.

Purpose The purpose of this paper is to provide a historical account of four unsuccessful merger attempts between Australia’s two major professional accounting bodies over a 30-year period (1969 to 1998), each of which ultimately failed. An analysis of the commonalities and differences across the four attempts is provided and social identity theory is used to explain the differences between members level of support for these merger bids. Design/methodology/approach This study adopts a qualitative approach using a historical research methodology to source surviving business records from public archives and other data gathered from oral history interviews. Findings The study found that, across all four merger attempts between Australia’s two professional accounting bodies, there was strong support from society members (the perceived lower-status group) and opposition exhibited by institute members (the perceived higher-status group). This study also found that the perceived higher-status organisation always initiated merger discussions, while its members rejected the proposals in the members’ vote. Research limitations/implications This paper focusses on the Australian accounting profession, considering a historical account of merger attempts. Further research is required that includes interviews and surveys of those involved in making decisions regarding merger attempts. Originality/value This paper is the first to examine in detail these four unsuccessful merger attempts between the largest accounting organisations in Australia.

In both the New and Old Worlds, the railways were invariably the largest business enterprises of the nineteenth century in terms of both employment and capitalisation. This article explores whether Australia’s railroads were also seminal institutions for the employment of accountants and the advance of their discipline, through a consideration of the effects of commonalities and differences with the American experience. Commonalities exist in the similar roles played by American and Australian railways in the global economy, while differences principally relate to ownership structure – the former being privately owned and the latter state-owned. State ownership is found to have had a more significant influence than economic commonalities. Financial accounting was retarded due to (1) dealings with investment markets being the responsibility of Parliamentarians and (2) the abstinence of Australian railways from financial endeavours such as land speculation. The domination of cost accounting by professional engineers also left little room for qualified accountants.

The disclosure of non-GAAP earnings in Australian annual reports has risen steadily in recent years. These non-statutory earnings measures are generally disclosed in the unaudited section of the annual report and are not consistent with statutory profit as defined under generally accepted Australian accounting standards (GAAP). Recent research conducted in the United States (US) has provided evidence that non-sophisticated investor decisions are influenced by the presence and prominence of non-GAAP earnings information. Further evidence suggests that investor perception changed after non-GAAP earnings disclosures became subject to regulation in that jurisdiction. Australia has high investor participation rates by international standards, including investors operating self-managed superannuation funds, resulting in a significant number of active individual investors. This study employs an experimental design to investigate the impact on non-sophisticated investors of the reporting of non-GAAP earnings information in addition to GAAP earnings information in Australian annual reports. The results of this study show a positive association between the prominent disclosure of non-GAAP earnings information and non-sophisticated investor reliance on this information. These results provide important evidence to Australian regulators as these narrative disclosures are not subject to regulation, in contrast to the US where mandatory regulation has been in place since 2003.

We investigate the association between a number of dimensions of corporate governance and the earnings quality of financial statements for Australian companies in 2000 and 2002, before and after a number of large corporate collapses. We create four dimensions of corporate governance, board, committee, ownership and audit quality, using fifteen individual corporate governance attributes. The results indicate that only the corporate governance dimension, audit quality, consisting of the presence and independence of the audit committee, its meeting frequency, the use of a big 6 auditor and the auditor's independence, appears to improve the quality of financial reports and only in 2002. Higher quality firms are more prominent in 2002, than in 2000, indicating an improvement in the reporting quality of firms across time. However the control variables persist in returning statistically significant results across 2000 and 2002. In particular, a positive relationship is found between earnings quality and firm size in 2000 and 2002. A positive association also exists between a company's earnings quality and its information environment for both years. A persistent negative relationship between earnings quality and firm leverage is also identified for 2000 and 2002, indicating that more highly leveraged firms have a significant association with lower quality accruals. This is an interesting result when you consider the recent debt problems with Centro.

PurposeMuch research has focused on the reasons for child labor. This paper, in examining the experiences of late nineteenth century Australia seeks to ask the alternate research question: “What are the factors that cause managers to desist from the use of child labor during periods of initial industrialization, even where the society is characterized by a youthful demography and low levels of manufacturing productivity?”.Design/methodology/approachThis study measures the incidence of child labor in Queensland, Australia's third largest state, through an examination of the censuses for 1891 and 1901. It then locates the results of this analysis in the nineteenth century Australian peculiar pattern of economic investment.FindingsIt is found that industrializing Australia had an extremely low incidence of child labor. This is attributed to the highly capitalized nature of the Australian rural and mining sectors, and the linkages between these sectors and the wider economy. This suggests that counties, or regions, with a highly commercialized primary sector, and with manufacturing establishments with high skill requirements (even if characterized by low productivity), will have a low incidence of child labor.Practical implicationsThe most effective policy for reducing the incidence of child labor is to enhance capital investment in the primary sector and enhance the need for workplace skills in the secondary sector.Originality/valueThe International Labor Organisation suggests that there is currently a revival in child labor. This paper suggests that the most effective policies for reducing the incidence of child labor are ones that seek to foster increased levels of capital investment in the primary sector, rather than ones directed towards legal restriction or poverty alleviation.

This article documents the response of cooperative institutions that were required to adhere to new capital adequacy regulations traditionally geared for profit-maximising organisations. Using data from the Australian credit union industry, we demonstrate that the cooperative philosophy and internal corporate governance structure of cooperatives will lead management to increase capital adequacy ratios through the application of accounting window dressing techniques. This is opposite to the intended purpose of template regulation aimed at efficiently increasing operating margins and lowering risk. Our results raise several debatable issues regarding the ethics of accounting management and the imposition of one-shoe-fits-all external regulation.

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.

This paper estimates the value added by Big 8/6/5 auditors after controlling for the permanent and non‐permanent impact of earnings and cash flows using linear and nonlinear (arctan) regression models. The linear model shows significant value added for industrial firms that utilise Big 8/6/5 auditors; while an arctan model shows that large auditors value‐add by attesting to the permanence of earnings for large firms. We demonstrate that refinements to the audit research can be made by using response coefficients to filter out the different timing components inherent in earnings and cash flows.

The relation between stock returns, earnings and cashflows is of importance because it directly addresses the issue of whether accounting data provide value relevant information. The empirical evidence to date, however, has documented low explanatory power for earnings and inconclusive incremental information content for cashflows. This research re-evaluates the incremental information content debate using Australian data. Our research is motivated by: recent innovations in research design, including the specification of nonlinear functional relations between accounting variables and prices, and the fact that differences in firm size characteristics may influence the relative information content of the accounting variables. We observe that: (i) a nonlinear functional relation provides greater explanatory power for both earnings and cashflows; (ii) the results are consistent with more transitory earnings components for smaller firms; and (iii) contrary to received theory, cashflows add greater incremental explanatory power for large firms.

The fundamental relationship between accounting variables and firm valuation is a recurring theme in capital market research. This paper investigates this relationship within a balance sheet context and highlights the importance of controlling for relevant economic factors. We do this by conditioning explanatory power on the firm's relative financial leverage position, after controlling for cashflows and firm size, and using an arctan regression model to take account of temporary components in cash and earnings flows. Using data for 743 firm‐years for Australian Stock Exchange listed stocks, we find that for firms which are ‘above optimal leverage’: (i) earnings contain a greater level of transitory items, particularly when firm size is small; and (ii) cashflows provide higher incremental information. Our results are consistent with investors perceiving earnings as progressively less informative as the probability of failure increases, and the likelihood of earnings manipulation for the purpose of reducing proximity to debt covenants increases.

Academic dishonesty is a fundamental issue in terms of the educational integrity of higher education institutions. Accordingly, there is a growing pool of literature that examines this issue. This study adds to this literature by investigating factors that may influence student engagement in academic misconduct. We examine the influence of the type of assessment items, age, gender, nationality, discipline and level of study and the students' self-reported history of cheating. Drawing from a survey of 1,057 students across four major Queensland universities, we find that a student's age, gender and nationality are useful in explaining the probability of a student cheating. Our key finding, however, suggests that the likelihood that a student will engage in any given cheating behaviour is most strongly influenced by the extent to which the student engages in other forms of cheating, supporting the notion of "once a cheat always a cheat". We conclude that more needs to be done to combat a culture of acceptance of academic dishonesty and to minimise defensive misconduct by students who otherwise might not engage in such behaviour. We suggest that university administrators devote increased resources to this issue and develop mechanisms for managing and curtailing the level of academic misconduct. A failure to do so may result in a further undermining of the academic integrity of the Australian tertiary sector.

This paper examines managerial behaviour and firm success among America’s late nineteenth century railroads through the lens of organizational life-cycle theory. Whereas organizational life-cycle t...