Abstract:
The Routledge Companion to Fair Value in Accounting.

 

Abstract:
Applying International Financial Reporting Standards.

 

Abstract:
Applying International Financial Reporting Standards.

 

Abstract:
Narrative Reporting: State of the Art and Future Challenges.

Narrative reporting, both in relation to financial and non-financial information, is increasingly used and often mandated, with significant managerial discretion regarding content. As policy makers consider reporting as a tool for regulation to steer the behaviour of companies towards improving practices and performance upon which they have to disclose, the aim of this paper is to provide the state of the art in the academic literature on narrative reporting and identify future challenges. In order to do so, the paper investigates three questions: (1) How has the quality of narrative reporting been defined? (2) What narrative information is required and used by various stakeholders? (3) What are the real effects of narrative reporting? in answering these three questions, our review also gives implications for both future academic research and policy makers. 

Abstract:
Transfer pricing: changing views in changing times.

Transfer pricing for tax purposes has long been contentious, but recent political and public concerns about tax avoidance have energised critiques of current rules and debates about proposals for change. Transfer pricing tax rules are underpinned by the arm’s length principle and we consider how the common understanding of this principle has developed and changed, as criticism of it has grown and there have been increasing calls for change. In this qualitative study we draw on Bourdieusian concepts: we focus on the views of senior transfer pricing professionals relating to the UK and the US and consider how their views and transfer pricing practices have changed over a period of field disruption. This is important because calls for transformation of the field need to be cognizant of the extent to which existing practices are firmly embedded and thereby resilient to change. We find that over the period of our longitudinal study the senior transfer pricing professionals show a degree of adaptability to the use of the arm’s length principle, which continues to dominate. 

Abstract:
Accounting profits, tax profits and unitary taxation (Revisited).

Unitary taxation requires the adoption of a set of rules that enables a combined group tax profit base to be determined. Setting aside questions as to which entities should be included and how the resultant profit should be allocated to relevant jurisdictions, this article focusses on the question of what is an appropriate base, and whether accounting principles, in particular external financial reporting principles, are fit for this purpose. The authors contribute to the ongoing debate on this issue, now even more salient in relation to the digital economy and the “unified approach” proposed by the OECD, by considering more recent changes in both financial reporting and taxation. The article concludes that there is considerable preparatory work to be done before an appropriate base for unitary taxation can be developed, if that is even possible. 

Abstract:
Acting in the public interest: Accounting for the vulnerable.

This article seeks to initiate research around the potential roles of the accounting profession for tackling the challenges of the vulnerable. Its backdrop is the current consideration of the profession’s public interest role. The importance of dialogue around the public interest role is evidenced by the increasing levels of vulnerability, even within developed countries. Accounting underpinned by broader values has potential to provide knowledge of issues relating to the vulnerable. However, the accounting profession has only engaged with such potential to a limited degree. The article overviews existing knowledge and areas within which more research is required. In order to illustrate the potential for such research, initial findings from two case studies of homelessness (an example of the vulnerable) provide evidence as to the importance, and challenges, of accounting for the vulnerable. This article highlights the need to: take a principles-based approach in defining the vulnerable, undertake an accounting that reflects the lives they value, acknowledge that there are different ways for addressing these issues, recognise that an absence of perfect numbers should not become a barrier to action, and that accounting for the vulnerable is one way that the accounting profession may discharge their public interest roles. 

Abstract:
Does gender diversity on banks' boards matter? Evidence from public bailouts.

We are the first to examine the impact of gender diversity on banks' boards on the probability and size of public bailouts. Our findings, based on a sample of listed European banks over the period 2005–2017, suggest that banks with more gender-diverse boards are less likely to receive a public bailout and receive a lower amount of bailout funds as a percentage of total assets than banks with less gender-diverse boards. Specifically, an increase by one standard deviation in gender diversity decreases the probability of a bailout by at least 2.44%, a significant reduction considering that the unconditional probability is 18.7%. Gender diversity is also positively related to bank performance, as proxied by ROA and Tobin's Q and with dividend payout ratios, consistent with the hypothesis that female directors are better monitors than male directors. These results are robust to a variety of econometric approaches and provide support for recent reforms in several EU countries regarding gender quotas. 

Abstract:
Does religiosity influence venture capital investment decisions?.

Theories on contextual behavior (e.g. social norm, self-identity, and legitimacy theories) suggest that the religiosity of the geographical area in which an organization operates influences its behavior. Using a sample of 91,020 VC investments in the U.S. we study whether religiosity influences VC investment decisions. Based on prior literature that finds a positive relation between religiosity and risk aversion, we posit that VCs located in more religious counties make less risky investments. We find that VCs located in more religious areas are more likely to be involved in staging and syndication and have a greater propensity to invest in later and expansion stages of portfolio companies. Taken together, our results suggest that VCs located in religious counties tend to be more risk averse. 

Abstract:
EMPIRICAL EVIDENCE ON AUDIT QUALITY UNDER a DUAL MANDATORY AUDITOR ROTATION RULE.

Regulators in the US ruled against introducing mandatory firm rotations in addition to the existing rule for periodic partner rotations. In contrast, European regulators ruled in favour of a dual mandatory rotation rule in which both audit firm and audit partner rotations are required. Employing a unique setting where a dual regime of audit and firm rotations are required, we assess the net benefit (cost), of audit firm rotation incrementally to partner rotation. Specifically, we analyse several earnings-based measures of audit quality along with the market perception of audit quality. Controlling for partner rotation, we do not find that firm rotations have a positive incremental effect. In contrast, we find audit partner rotation under the dual regime appears to improve both the earnings-based measures of audit quality, and market perceptions of earnings. Our evidence suggests that any benefit arising from dual rotation is likely to be driven by the change in partner. However, whether the audit firm rotation should still be required is unclear, given that the observed benefits arising from the audit partner rotation could potentially be preconditioned on audit firm rotation. 

Abstract:
Pension deficits and corporate financial policy: Does accounting transparency matter?.

We study changes in financial policies following a regulatory shock to the accounting
transparency of defined benefit pension plans. We estimate the hidden pension deficits of
French companies subject to mandatory IAS 19 adoption in 2005 using disclosures of early
adopters of IAS 19. We find that financially risky companies reporting unexpectedly high
pension deficits on first-time IAS 19 adoption subsequently reduce leverage and incur higher
cost of debt. Our results suggest that in the absence of transparency the credit market anticipates
off-balance sheet pension deficits. However, the introduction of the more transparent IAS 19
regime allows the credit market to correct estimation errors. Our study is one of the first to
show that the greater transparency offered by IFRS has negative economic consequences for
some companies. 

Abstract:
Resiliency of Environmental and Social Stocks: an Analysis of the Exogenous COVID-19 Market Crash.

Abstract
. The COVID-19 pandemic and the subsequent lockdown brought about an exogenous and unparalleled stock market crash. The crisis thus provides a unique opportunity to test theories of environmental and social (ES) policies. This paper shows that stocks with higher ES ratings have significantly higher returns, lower return volatility, and higher operating profit margins during the first quarter of 2020. ES firms with higher advertising expenditures experience higher stock returns, and stocks held by more ES-oriented investors experience less return volatility during the crash. This paper highlights the importance of customer and investor loyalty to the resiliency of ES stocks. (JEL G12, G32, M14)
. Received: June 3, 2020; editorial decision June 24, 2020 by Editor Andrew Ellul.
. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online. 

Abstract:
Searching for Gambles: Gambling Sentiment and Stock Market Outcomes.

Using Internet search volume for lottery to capture gambling sentiment shifts, we show that when the overall gambling sentiment is strong, investor demand for lottery stocks increases, these stocks earn positive short-run abnormal returns, managers are more likely to split stocks to cater to the increased demand for low-priced lottery stocks, and IPOs earn higher first day returns. Further, the sentiment-return relation is stronger among low institutional ownership firms, headquartered in regions where gambling is more acceptable and local bias is stronger. These results suggest that gambling sentiment has a spillover effect on the stock market. 

Abstract:
Discretion in accounting for pensions under IAS 19: using the ‘magic telescope’?.

© 2016 Informa UK Limited, trading as Taylor. &. Francis Group. We use a panel data set of UK-listed companies over the period 2005–2009 to analyse the actuarial assumptions used to value pension plan liabilities under IAS 19. The valuation process requires companies to make assumptions about financial and demographic variables, notably discount rate, price inflation, salary inflation and mortality/life expectancy of plan members/beneficiaries. We use regression analysis to analyse the relationships between these key assumptions (except mortality, where disclosures are limited) and company-specific factors such as the pension plan funding position and duration of pension liabilities. We find evidence of selective ‘management’ of the three assumptions investigated, although the nature of this appears to differ from the findings of US authors. We conclude that IAS 19 does not prevent the use of managerial discretion, particularly by companies whose pension plan funding positions are weak, thereby reducing the representational faithfulness of the reported pension figures. We also highlight that the degree of discretion used reflects the extent to which IAS 19 defines how the assumptions are to be determined. We therefore suggest that companies should be encouraged to justify more explicitly their choice of assumptions. 

Abstract:
Earnings performance measures and CEO turnover: Street versus GAAP earnings.

Prior research reports that analysts focus on street earnings, which are measures that typically exceed GAAP earnings. Using a sample of CEO turnovers from 1993 to 2016 we show that the likelihood and speed of forced CEO turnover - but not voluntary turnover - are higher when analysts exclude income-decreasing items. The association between exclusions and forced turnovers is particularly pronounced for high magnitude exclusions. We also show that greater street exclusion of income-decreasing items, the lower CEO bonus payouts. We find that boards use audited and more conservative GAAP earnings in evaluating and dismissing CEOs, except in the recent period of 2010–2016. 

Abstract:
Four priorities for new links between conservation science and accounting research.

Article impact statement: New collaborations with accounting research can improve conservation impact of ecosystem-based information systems. 

Abstract:
Gaming the System: an Investigation of Small Business Owners’ Attitudes to Tax Avoidance, Tax Planning, and Tax Evasion.

To a large extent, the body of research that looks at individuals’ compliance with the law focuses on the dichotomy between compliance as rule-following and noncompliance as rule-breaking. However, a fascinating case of noncompliance is that where individuals selectively follow existing rules in order to circumvent the legal principle, this behaviour has been termed ‘creative compliance.’ in the current study, we investigated the psychological underpinnings of ‘creative compliance’ by assessing the attitudes of tax avoidance (significant minimisation of tax liability perceived to be legal) and tax evasion (illegal tax minimisation) of 330 owners of small businesses. We found that tax avoidance and tax evasion were perceived as qualitatively distinct by respondents and that they were predicted by different factors. While both tax avoidance and tax evasion were associated with weak personal norms to contribute to the tax system, tax avoidance was associated with a perception that the tax system is unfair, and that tax law has ‘loopholes’ that can be exploited, while tax evasion was predicted by the perception that evasion is a trivial crime. Overall, we provide insight into the under-investigated behaviour of ‘creative compliance’ and propose future research directions. 

Abstract:
Taxing Large Businesses: Cooperative Compliance in Action.

Cooperative compliance represents a shift in thinking for tax administrations, away from a deterrence approach where taxpayers are coerced to comply with tax rules and threatened by audits and penalties, toward a more responsive and collaborative approach. 

Abstract:
“Breaking new ground”: the National Enterprise Board, Ferranti and Britain’s Pre-history of Privatization.

Privatization is closely associated with the ideological turn to neoliberalism and regarded as a cornerstone of Britain’s “Thatcherite project”. Margaret Thatcher’s Conservative government did not undertake its major privatizations of state-owned businesses until its second term began in 1983. We argue in this paper, however, that the 1980 disposal by the National Enterprise Board of its controlling interest in the engineering and electronics company Ferranti offers significant insights into the development of privatization policy and practice, as well as the changing role of the state in British business. This disposal reflected the early caution of some of the Thatcher government’s actions but contributed to fulfilment of an electoral commitment and provided valuable privatization experience in addressing difficult financial, industrial and political issues. 

Abstract:
Abnormal Fees and Timely Loss Recognition - a Long-Term Perspective.

We examine the relation between timely loss recognition and abnormal audit, non-audit, and total fees over a long period (2001–2007 and 2010–2015). We use positive abnormal audit fees as a measure of abnormal audit effort, and positive abnormal non-audit fees as a measure of economic bond between the auditor and the auditee. Using the Ball and Shivakumar (2006) model, we report some evidence suggesting audit effort is associated with slower loss recognition in accruals before the Sarbanes–Oxley Act (SOX) became effective. However, we find stronger evidence that audit effort is associated with slower loss recognition post-SOX when clients raise substantial external funds or when the auditor is not an industry specialist. Using C_Score, we find a negative association between changes in abnormal audit fees and total fees, and changes in C_Score post-SOX, but not pre-SOX. We find no sample-wide evidence that abnormal non-audit fees are associated with the speed of loss recognition. Collectively, the results suggest post-SOX auditors exert more effort when losses are delayed and that non-audit services do not compromise auditor independence. 

Abstract:
Debt priority structure, market discipline, and bank conduct.

We examine how debt priority structure affects bank funding costs and soundness. Leveraging an unexplored natural experiment that changes the priority of claims on banks’ assets, we document asymmetric effects that are consistent with changes in monitoring intensity by various creditors depending on whether creditors move up or down the priority ladder. The enactment of depositor preference laws that confer priority on depositors reduces deposit rates but increases nondeposit rates. Importantly, subordinating nondepositor claims reduces bank risk-taking, consistent with market discipline. This insight highlights a role for debt priority structure in the regulatory framework. 

Abstract:
Environmental and Social Disclosures and Firm Risk.

We examine the link between a firm’s environmental (E) and social (S) disclosures and measures of its risk including total, systematic, and idiosyncratic risk. While we do not find any link between a firm’s E and S disclosures and its systematic risk, we find a negative and significant association between these disclosures and a firm’s total and idiosyncratic risk. These are novel findings and are consistent with the predictions of the stakeholder theory and the resource based view of the firm suggesting that firms which make extensive and objective E and S disclosures promote corporate transparency that can help them build a positive reputation and trust with its stakeholders, which in turn can help mitigate the firm’s idiosyncratic/operational risk. These findings are important for all corporate stakeholders including managers, employees, and suppliers who have a significant economic interest in the survival and success of the firm. 

Abstract:
Market Reaction to Bank Liquidity Regulation.

We measure market reactions to announcements concerning liquidity regulation, a key innovation in the Basel framework. Our initial results show that liquidity regulation attracts negative abnormal returns. However, the price responses are less pronounced when coinciding announcements concerning capital regulation are backed out, suggesting that markets do not consider liquidity regulation to be binding. Bank- and country-specific characteristics also matter. Liquid balance sheets and high charter values increase abnormal returns whereas smaller long-term funding mismatches reduce abnormal returns. Banks located in countries with large government debt and tight interbank conditions or with prior domestic liquidity regulation display lower abnormal returns. 

Abstract:
Tax Talk: an Exploration of Online Discussions Among Taxpayers.

We present an analysis of over 400 comments about complying with tax obligations extracted from online discussion forums for freelancers. While the topics investigated by much of the literature on taxpayer behaviour are theory driven, we aimed to explore the universe of online discussions about tax in order to extract those topics that are most relevant to taxpayers. The forum discussions were subjected to a qualitative thematic analysis, and we present a model of the ‘universe’ of tax as reflected in taxpayer discussions. The model comprises several main actors (tax laws, tax authority, tax practitioners, and the taxpayer’s social network) and describes the multiple ways in which they relate to taxpayers’ behaviour. We also conduct a more focused analysis to show that the majority of taxpayers seem unconcerned with many of the variables that have been the focus of tax behaviour research (e.g. audits, penalties, etc.), and that most people are motivated to be compliant and are more concerned with how to comply than whether to comply. Moreover, we discuss how these ‘real-world’ tax discussions question common assumptions in the study of tax behaviour and how they inform our understanding of business ethics more generally. 

Abstract:
Tax avoidance and cost of debt: the case for loan-specific risk mitigation and public debt financing.

Examining the syndicate loans market for publicly traded U.S. firms I show that tax avoidance is positively related to loan spreads. Importantly, however, tax-specific premiums disappear for loans with large number of co-leads, which facilitate credit risk diversification, for loans with performance pricing provisions, which facilitate borrower-lender incentive alignment, and for borrowers with CDS contracts, which facilitate credit risk transfer. Moreover, non-bank institutional investors demand higher risk premiums to compensate for their high-risk investment strategies that also account for tax-specific risks and do not have particular focus on tax-specific risk taking. Finally, I show that simultaneous access to private and public debt financing, which reflects greater firm-level financial flexibility and fewer hold-up problems, largely mitigates agency risks associated with all forms of tax avoidance. These syndicate-level risk-mitigating measures work jointly well and are more effective, ex-ante, at moderating tax-specific risks in comparison to maintenance-based covenant structures alone. These results help identify channels through which firms can mitigate non-tax costs associated with tax avoidance and, hence, effectively pursue strategies that persistently reduce their corporate tax liabilities without incurring material agency costs. 

Abstract:
The Impact of Accounting Standards on Pension Investment Decisions ‡.

© 2018, © 2018 European Accounting Association. This study analyzes the ‘real’ effects of accounting standards in the context of defined benefit pension plans. Specifically, we examine the impact of IAS 19R, which increases expected pension-induced equity volatility by eliminating the so-called ‘corridor method’, a smoothing device for actuarial gains and losses. Supported by interview evidence, we show that IAS 19R leads firms to reconsider their pension investment decisions. Using matched samples of treatment and control firms, results from multivariate difference-in-differences tests indicate that firms affected by the adoption of IAS 19R significantly shift their pension assets from equities into bonds, relative to control firms. This effect is attenuated for firms with larger and better-funded pension plans. Supplementary analyses suggest that this shift in pension investment is mainly due to IAS 19R’s changes in the accounting for actuarial gains and losses (the ‘OCI method’). These results are robust to several sensitivity tests, although endogeneity concerns cannot be fully ruled out. Our study informs accounting standard setters and other stakeholders of potential shifts in firms’ real economic activities due to concerns about pension-induced equity volatility. 

Abstract:
The real effects of banking supervision: Evidence from enforcement actions.

We present a novel way to examine macro-financial linkages by focusing on the real effects of bank supervisors’ enforcement actions. Exploiting plausibly exogenous variation in supervisory monitoring intensity, we show that enforcement actions in single-market banks trigger temporarily large adverse effects for the macroeconomy by reducing personal income growth, the number of establishments, and increasing unemployment. These effects are related to contractions in bank lending and liquidity creation, and are more pronounced when we consider enforcement actions on both single-market and multi-market banks, and in counties with fewer banks and greater external financial dependence. 

Abstract:
A structuration theory perspective on the interplay between strategy and accounting: unpacking social continuity and transformation.

Anthony Giddens is generally considered one of the most prominent sociologists of modern time. In this paper, we draw upon a micro-process case study to explore how his theory of structuration (ST) can be used to analyze the interplay between strategy and accounting in day-to-day-organizational life. In short, we find that strategizing and accounting should not be viewed as two separate practices, but rather as two aspects of one and the same practice, which form and feed each other in a recursive manner over time. Based on these findings, we also elaborate on how ST may be usefully applied to understand continuity and transformation of strategizing practices more generally. An overall conclusion is that ST not only provides a strong and consistent ontological framework for theorizing about these practices, but also offers a rich conceptual toolbox which can be usefully applied to better understand how and why structural continuity and change may coexist and intermingle in the durée of daily organizational life. 

Abstract:
Big egos can be green: a study of CEO hubris and environmental innovation.

This paper examines whether and to what extent CEO personal traits (hubris, in particular) affect firm environmental innovation. Using the overarching theoretical framework of upper-echelons theory, the paper builds on the insights from corporate strategy, innovation, and corporate social responsibility literatures. We also examine the moderating role of firm-specific features (e.g. organizational slack) and the external environment (e.g. market uncertainty) in this context. Based on a sample of UK companies operating in sensitive industries, we find that CEO hubris facilitates the engagement in green innovative projects. We also find that CEO hubris does not have a uniform effect: its effect on environmental innovation increases with the organizational slack, but weakens with the extent of environmental uncertainty. Our findings suggest that availability of resources per se is not enough to produce environmental innovation. Instead, it requires a stable external environment that enables the CEO with a hubristic personality to make a correct use of them. 

Abstract:
Board governance and corporate performance.

We examine the link between the monitoring capacity of the board and corporate performance of UK listed firms. We also investigate how firms use the flexibility offered by the voluntary governance regime to make governance choices. We find a strong positive association between the board governance index we construct and firm operating performance. Our results imply that adherence to the board-related recommendations of the UK Corporate Governance Code strengthens the board’s monitoring capacity, potentially helping mitigate agency problems, but that investors do not value it correspondingly. Moreover, in contrast to prior UK findings suggesting efficient adoption of Code recommendations, we find that firms at times use the Code flexibility opportunistically, aiming to decrease the monitoring capacity of the board, which is followed by subsequent underperformance. This finding questions the effectiveness of the voluntary approach to governance regulation followed in the UK as in many countries around the world. 

Abstract:
Common auditors and cross-country M&A transactions.

© 2017 Elsevier B.V. Using a comprehensive sample of cross-country mergers and acquisitions for the period 2000-2014 we examine the effect of common auditors on the efficiency of cross-country M & a transactions. We predict that the use of common auditors reduces uncertainty, resulting in higher M & a efficiency. We find that this common-auditor effect results in a positive market reaction to the M & a announcement, lower premium and greater increase in return on assets following the M & a transaction. Further, we find that these effects are more pronounced the greater the M & a transaction uncertainty and when the accounting standards of parties differ. 

Abstract:
How should we estimate value-relevance models? Insights from European data.

We study the consequences of unobserved heterogeneity when employing different econometric methods in the estimation of two major value-relevance models: the Price Regression Model (PRM) and the Return Regression Model (RRM). Leveraging a large panel data set of European listed companies, we first demonstrate that robust Hausman tests and Breusch-Pagan Lagrange Multiplier tests are of fundamental importance to choose correctly among a fixed-effects model, a random-effects model, or a pooled OLS model. Second, we provide evidence that replacing firm fixed-effects with country and industry fixed-effects can lead to large differences in the magnitude of the key coefficients, with serious consequences for the interpretation of the effect of changes in earnings and book values per share on firm value. Finally, we offer recommendations to applied researchers aiming to improve the robustness of their econometric strategy. 

Abstract:
Investor reaction to IFRS for financial instruments in Europe: the role of firm-specific factors.

We examine the market reaction to events related to the standard-setting process of International Financial Reporting Standard (IFRS) 9 for over 3,000 European firms that have adopted IFRS. We find that the market reaction to IFRS 9 is largely affected by firm-specific factors associated with information quality and information asymmetry. In particular, lower information asymmetry and higher information quality have a positive effect on market-adjusted returns. This is in conflict with the common view that IFRS 9 will improve accounting quality for those firms that need it most (namely, small firms with low liquidity and concentrated ownership structure). 

Abstract:
Perverse incentives of special purpose acquisition companies, the “poor man's private equity funds”.

Special purpose acquisition companies (SPACs) are an alternative investment, structured as a one-shot private equity (PE) deal. Significant cross-sectional variation exists in SPACs' performance, which can be explained by the strong implicit incentives embedded in contracts. SPAC performance is worse for acquisitions announced near the predetermined two-year deadline, for acquisitions with deferred initial public offering underwriting fees, and for acquisitions with market value close to the required 80% threshold. Also, sponsors' involvement in the merged firm's governance improves long-term performance. This evidence has important implications given SPACs' high popularity in recent years and the new PE industry's trend toward deal-by-deal fund-raising. 

Abstract:
Politicising the sustaining of water supply in Ireland - the role of accounting concepts.

Purpose
This paper examines how the Irish government mobilised accounting concepts to assist in implementing domestic water billing. While such is commonplace in other jurisdictions and is generally accepted as necessary to sustain a water supply, previous attempts were unsuccessful and a political hot potato.

Design/methodology/approach
We use an actor-network theory inspired approach. Specifically, the concepts of calculative spaces and their ‘otherness’ to non-calculative spaces are used to analyse how accounting concepts were mobilised and the effects they had in the introduction of domestic water billing. We utilise publically available documents such as legislation, programmes for government, regulator publications, media reports and parliamentary records in our analysis over the period from 1983 to late 2014.

Findings
Our analysis highlights how the implementation of domestic water billing involved the assembling of many divergent actors including the mobilisation of accounting concepts. Specifically the concept of ‘cost’ became a contested entity. The government mobilised it in a conventional way to represent the resourcing of the water supply. Countering this, domestic water users associated ‘cost’ with a direct impact on their own resources and lives. Thus, an entity usually associated with the economic realm was embroiled in political processes, with much of what they were supposed to represent becoming invisible. Thus we observed accounting concepts being mobilised to support the gaining of a specific political ends, the implementation of domestic billing, rather than as part of the means to implement a sustainable water supply within Ireland.

Research limitations/implications
This research has some limitations, one being we draw on secondary data. However, our research does provide a detailed base from which to continue to study a new water utility over time.

Originality/value
This study demonstrates the complications that can occur when accounting concepts are associated with gaining of a political ends rather than as a means in the process of trying to achieve a sustainable water supply. Further, the process saw the creation of a new utility, which is a rare occurrence in the developed world, and a water utility even more so; this study demonstrates the role accounting concepts can have in this creation. 

Abstract:
The interplay of managerial and non-managerial controls, institutional work. and the coordination of laterally dependent hospital activities.

We explore two hospital departments, one of which is laterally dependent on the other to function, but which are subject to distinct vertical managerial controls. This complexity in vertical-lateral relations generates tension amongst the hospital’s senior managers and a perception of coordination difficulties. However, we show how the interplay between managerial and non-managerial controls, plus important employee ‘work’, moderates tension and facilitates day-to-day lateral coordination at the patient-facing level.
This is a case-study, relying mostly on the findings of semi-structured interviews. Theoretically, we draw from previous insights on inter-organisational relations (but informing our focus on intra-organisational coordination) and an ‘institutional work’ perspective.
Consistent with much extant literature, our research reveals how non-managerial controls help to moderate tensions that could emerge from the coercive use of managerial controls. However, we also show a maintained influence and flexibility in the managerial controls at patient-facing levels, as new circumstances unfold.
Our findings cannot generalise for all laterally dependent spaces in hospitals, nor could we generalise patterns across different hospitals. We recommend future research into the dynamics and interaction of managerial and non-managerial controls in other complex settings, plus focus on the purposeful work of influential agents.
The paper has two primary contributions: (1) extending our knowledge of the interplay between managerial and non-managerial controls inside complex organisations, where non-managerial controls reinforce rather than displace managerial controls, and (2) highlighting that it is seldom just controls per se which ‘matter’, but also agents’ purposeful actions that facilitate coordination in complex organisations. 

Abstract:
Willing to share? Tax compliance and gender in Europe and America.

Studies examining the effects of gender on honesty, deceptive behavior, pro-sociality, and risk aversion, often find significant differences between men and women. The present study contributes to the debate by exploiting one of the largest tax compliance experiments to date in a highly controlled environment conducted in the United States, the United Kingdom, Sweden, and Italy. Our expectation was that the differences between men’s and women’s behavior would correlate broadly with the degree of gender equality in each country. Where social, political and cultural gender equality is greater we expected behavioral differences between men and women to be smaller. In contrast, our evidence reveals that women are significantly more compliant than men in all countries. Furthermore, these patterns are quite consistent across countries in our study. In other words, the difference between men’s and women’s behavior is not significantly different in more gender neutral countries than in more traditional societies.  

Abstract:
CEO power, government monitoring, and bank dividends.

We investigate the role of CEO power and government monitoring on bank dividend policy for a sample of 109 European listed banks for the period 2005–2013. We employ three main proxies for CEO power: CEO ownership, CEO tenure, and unforced CEO turnover. We show that CEO power has a negative impact on dividend payout ratios and on performance, suggesting that entrenched CEOs do not have the incentive to increase payout ratios to discourage monitoring from minority shareholders. Stronger internal monitoring by board of directors, as proxied by larger ownership stakes of the board members, increases performance but decreases payout ratios. These findings are contrary to those from the entrenchment literature for non-financial firms. Government ownership and the presence of a government official on the board of directors of the bank, also reduces payout ratios, in line with the view that government is incentivized to favor the interest of bank creditors before the interest of minority shareholders. These results show that government regulators are mainly concerned about bank safety and this allows powerful CEOs to distribute low payouts at the expense of minority shareholders. 

Abstract:
Can we predict dividend cuts?.

I examine the predictability of dividend cuts based on the time interval between dividend announcement dates using a large dataset of US firms from 1971 to 2014. The longer the time interval between dividend announcements, the larger the probability of a cut in the dividend per share, consistent with the view that firms delay the release of bad news. 

Abstract:
Corporate Social Performance, Competitive Advantage, Earnings Persistence and Firm Value.

In this paper, using a generalised valuation framework inspired by Ohlson, we show that corporate social performance (CSP) is value relevant and that, in particular, it appears to be associated with a higher coefficient on earnings. This could be attributable to either a lower cost of equity for these firms, or greater earnings persistence. We show that, once industry membership is controlled for, any cost of capital effect is minimal. Regression tests based on realised earnings confirm that the valuation effect is attributable mainly to greater earnings persistence in firms with higher levels of CSP. These outcomes are consistent with higher CSP conferring a competitive advantage on firms. 

Abstract:
Equity Incentives and Corporate Fraud in China.

This paper explores how managers’ and supervisors’ equity incentives impact the likelihood of committing corporate fraud in Chinese-listed firms. Previous research has shown that corporate fraud in China is a widespread phenomenon and has severe consequences for affected firms and executives. However, our understanding of the reasons that fraud is committed in a Chinese setting has been very limited thus far. This is an increasingly important topic, because corporate governance is rapidly changing in China, and it is unclear whether adopting the executive compensation practices of the West is appropriate for Chinese firms. We show that managers’ equity incentives increase their propensity to commit corporate fraud. We also find that this effect is more pronounced for state-owned firms. However, we find a negative but not significant relationship between the equity incentives of the supervisory board and the incidence of fraud. 

Abstract:
Long memory and multifractality: a joint test.

The properties of statistical tests for hypotheses concerning the parameters of the multifractal model of asset returns (MMAR) are investigated, using Monte Carlo techniques. We show that, in the presence of multifractality, conventional tests of long memory tend to over-reject the null hypothesis of no long memory. Our test addresses this issue by jointly estimating long memory and multifractality. The estimation and test procedures are applied to exchange rate data for 12 currencies. Among the nested model specifications that are investigated, in 11 out of 12 cases, daily returns are most appropriately characterized by a variant of the MMAR that applies a multifractal time-deformation process to NIID returns. There is no evidence of long memory. 

Abstract:
Tax and performance measurement: an inside story.

Against the background of increasing regulation and spotlight on the tax position of MNEs, this study explores the relationship between tax and performance measurement. The paper is informed by a series of in-depth semi-structured interviews conducted in 2006 with 26 senior tax executives from 15 Silicon Valley-based companies. We also draw on documentary evidence including the relevant 10K reports and take an interpretive approach to the analysis. Many of the performance measures referred to in prior literature were employed in the companies. There was no evidence to suggest the profit centre performance measurement model is being adopted by MNEs for their tax departments. Two distinct aspects particularly exercised the interviewees, that is, the effective tax rate (ETR) and post-tax versus pre-tax performance measurement. Many interviewees did not perceive the ETR as being an appropriate measure of performance, yet they recognised its importance internally and externally. Many companies worked on the basis that there is an 'acceptable range' of ETRs which won't give rise to any unwanted questions. Most interviewees shared the view that a post-tax basis of measuring performance of business units might only serve to increase tax risks, preferring instead for the in-house tax executives to remain the exclusive tax knowledge experts. This study contributes to the diversification of tax research within accounting by demonstrating how qualitative work can provide unique insights. It enhances our understanding of how performance measurement of tax might influence the tax-planning behaviour of in-house tax executives and cautions against exclusive reliance on the ETR as a measure of the effect of tax planning. 

Abstract:
Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance.

In this paper we draw on insights from theories in the management and corporate governance literature to develop a theoretical model that makes explicit the links between a firm’s corporate social responsibility (CSR) related board attributes, its board CSR strategy, and its environmental and social performance. We then test the model using structural equation modeling approach.
We find that the greater the CSR orientation of the board (as measured by the board’s independence, gender diversity, and financial expertise on audit committee), the more proactive and comprehensive the firm’s CSR strategy, and the higher its environmental and social performance. Moreover, we find this link to be endogenous and self-reinforcing, with superior CSR performers tending to further strengthen their board CSR orientation. This result while positive is also suggestive of the widening of the gap between the leads and laggards in CSR. Therefore the question arises as to how ‘leaders’ are using their superior CSR competencies seen by many scholars as a source of corporate (at times unfair) competitive advantage. Stakeholders of corporations therefore need to be cognizant of this aspect of CSR when evaluating a firm’s CSR activities. Policy makers also need to be cognizant of these concerns when designing regulation in this field. 

Abstract:
Conservatism in residual income models: theory and supporting evidence.

In this paper, we develop a framework for evaluating the impact of conservative accounting on the
structure of residual income models of equity valuation. We explore specific examples of both
unconditional and conditional conservatism and observe a common mathematical structure. We
proceed to generalise our model and identify the joint dependency of conservatism and the
persistence of abnormal earnings on the weights attached to book values, earnings and dividends.
We are able to show theoretically the likely numerical impact of conservatism on price-earnings
ratios and under valuations produced by residual income models. We investigate empirically the
interaction between conservatism and persistence and find they accord well with the theory
developed. We briefly discuss the implications for testing of the effect of conservatism on
valuation and linear information dynamics. 

Abstract:
Core values as a management control in the construction of "sustainable development".

Purpose - This paper aims to examine a management control constructed by senior managers, a core value focused on sustainability, as it travels through time and space. The criticality of sustainable development suggests the need to understand the effects that core values have on organisational actions. Design/methodology/approach - a case study methodology carried out at a multinational organisation is used. This analysis was informed by an actor-network theory which allowed placing the organisation's sustainability focused core value at the centre of this research. Findings - it was found that management control, in the form of a sustainability-focused core value, took on an active role in the case organisation. This enabled the opening of space and time that allowed actors to step forward and take action in relation to sustainable development. It is shown how the core value mobilised individual actors at specific points in time but did not enrol enough collective support to continue its travel. The resulting activities, though, provided a construction of sustainable development within the organisation more in line with traditional profit-seeking objectives rather than in relation to sustainability objectives, such as inter- and intra-generational equity. Research limitations/implications - These findings suggest possibilities for future research that examines the active role that management controls may take within sustainable development. Originality/value - This paper shows the active role a management control, a sustainability focused core value, took within an organisation. This builds on the research that examines management control in relation to sustainability issues and sustainable development as well as the literature that examines core values. 

Abstract:
Has the regulation of non-GAAP disclosures influenced managers' use of aggressive earnings exclusions?.

The frequency of non-GAAP (“pro forma”) reporting has continued to increase in the U.S. over the last decade despite preliminary evidence that regulatory intervention led to a decline in non-GAAP disclosures. In particular, the Sarbanes-Oxley Act of 2002 (SOX) and Regulation G (2003) impose strict requirements related to the reporting of non-GAAP numbers. More recently, the SEC has renewed its emphasis on non-GAAP reporting and declared it a “fraud risk factor.” Given the SEC’s renewed emphasis on non-GAAP disclosures, we explore the extent to which regulation has curbed potentially misleading disclosures by investigating two measures of aggressive non-GAAP reporting. Consistent with the intent of Congress and the SEC, we find some evidence that managers report adjusted earnings metrics more cautiously in the post-SOX regulatory environment. Specifically, the results suggest that firms reporting non-GAAP earnings in the post-SOX period are less likely to (1) exclude recurring items incremental to those excluded by analysts and (2) use non-GAAP exclusions to meet strategic earnings targets on a non-GAAP basis that they miss based on I/B/E/S actual earnings. However, we also find that some firms exclude specific recurring items aggressively. Overall, the results suggest that while regulation has generally reduced aggressive non-GAAP reporting, some firms continue to disclose non-GAAP earnings numbers that could be misleading in the post-SOX regulatory environment. 

Abstract:
Social Norms and Tax Compliance: Theoretical overview and practical implications.

Within fields as diverse as psychology, economics, sociology, and law, tax researchers have become increasingly interested in how societal norms influence individuals to comply (or not) with tax laws. However, it is not always apparent how these insights may contribute to tax administration and tax policy. First, this paper will present an overview of current research on social norms and tax compliance, bringing together results from a variety of research traditions. Rather than aiming to provide an exhaustive presentation of all research on social norms and compliance, we aim to highlight primary trends in past research, provide conceptual clarification, and highlight future research directions. Second, the paper will discuss avenues for employing knowledge about social norms in improving tax compliance. We review the social norms approach to changing individuals’ behaviour, including insights from relevant health and environmental campaigns, and discuss several options for designing future social norms campaigns for tax compliance, including potential caveats 

Abstract:
Tax professionals at work in Silicon Valley.

© 2015 Elsevier Ltd. This paper analyses a previously unexamined but nonetheless important facet of modern society - the nature and impact of the relationship between in-house tax professionals in large multinational organizations, and the external business, tax and regulatory environments within which they operate. Drawing on face-to-face interviews conducted with senior tax executives in US multinational enterprises (MNEs), we uncover the social reality of the world in which MNEs' tax executives operate, and find that these tax professionals are a powerful, elite group of knowledge experts who can significantly shape tax law and practices. We analyze the activities of these experts who, although working largely in the shadows of their organizations, are very much engaged in constructing and shaping the wider institutional environment. From a theoretical perspective that brings together institutional work and the endogeneity of law, we find these elite professionals engaging in subtle and diffuse exercise of power at a micro level within their organizations, a meso level between organizations within the field and at a macro level within the wider external environment. This has important implications for our broader understanding of the tax and regulatory environments which corporate actors inhabit. 

Abstract:
The implied growth rates and country risk premium: evidence from Chinese stock markets.

Realized stock market returns are volatile and poor reflections of economic growth and investor expectations in China. In this paper, we estimate simultaneously the implied long run growth rate and cost of equity capital for listed Chinese firms over the period 2004–2012. We find that the implied mean growth rate in earnings is around 10 % and the mean implied cost of capital is about 14.6 %. These suggest that the implied growth rates from companies’ fundamentals are in line with the economic growth and the implied cost of capital is consistent with investors’ expectations. Comparing with estimates for the US markets, we find that the mean country equity risk premium for this largest emerging market is about 6.5 %. Our study has important implications to the Chinese policy makers and international investors. 

Abstract:
The timing of mergers along the production chain, capital structure, and risk dynamics.

I demonstrate that the timing of vertical mergers is generally dependent on industry characteristics. My predictions are consistent with empirically observed patterns of vertical mergers. I show that merger activity during economic upturns tends to be motivated by operating efficiencies, while merger activity during economic downturns tends to occur as a means of keeping production chain operational. Mergers allow firms to capture synergies and improve efficiencies in order to survive economic contractions. The pricing framework implies that a vertical merger decision usually reduces risk during two different economic states. 

Abstract:
Why did preparers lobby to the IASB's pension accounting proposals?.

We examine the characteristics of firms that lobbied on the 2010 Exposure Draft (ED) on pensions and find that signalling influences the decision to lobby. Further, we examine preparer's position to two important proposals in the ED. We find that preparers are less likely to agree with the abolition of the corridor when they report unrecognized actuarial losses and that firms are more likely to oppose the replacement of the expected rate of return with the discount rate when the spread between these two rates is large. These results suggest that while signalling drives firm decisions to lobby, self-interest influences how firms lobby. 

Abstract:
Corporate Social Responsibility and Firm Value: Disaggregating the effects on cash flow, risk and growth.

This paper examines how the stock market values corporate social responsibility (CSR). We consider the multidimensionality of CSR and make a distinction between strengths and concerns. We disaggregate the effect on value by considering differences between forecasted profitability, long term growth and the cost of capital. For individual dimensions, in general strengths are valued positively, but weaknesses do not always detract from value. However, when an overall measure of CSR performance is employed, the result is a significant negative valuation of CSR concerns. These valuation effects are principally driven by CSR performance associated with better long run growth prospects, with a minor contribution made by a lower cost of equity capital. 

Abstract:
Debating diversity in management accounting research.

Purpose: This paper chronicles the evolution of the academic debate regarding diversity in management accounting research and discusses its impact on the current state of management accounting research. 

Abstract:
Do cross border and domestic acquisitions differ? Evidence from the acquisition of UK targets.

We investigate the determinants of short term wealth effects for both public acquiring and target shareholders following the announcement of UK acquisitions over the period 1990-2005. Regardless of their nationality, overall acquirers incur losses, with domestic acquirers' under-performing cross-border acquirers in general. For the latter no differences in returns between regions are found once the differences in corporate governance regimes are controlled for. Instead it is firm characteristics and in particular firm leverage that largely explain acquirers' returns. All targets gain significantly but the higher returns associated with international deals disappear once bid characteristics are controlled for. © 2013 Elsevier Inc. 

Abstract:
From four to zero? the social mechanisms of symbolic domination in the UK accounting field.

Corporate failures and financial crises periodically lead to speculation and critique of the Big Four in the UK. Wide-reaching regulatory changes and reforms have emerged as a consequence, yet the overall dominance of the large accounting firms remains an immutable truth. This paper explores the dominance of the Big Four drawing on Bourdieu’s rich system of thought, and in particular the role of symbolic productions, and how symbolic power and symbolic violence are deployed to secure the social integration of an arbitrary order. We document the social mechanisms of symbolic domination that secure the Big Four’s position in the social structure of professional accounting firms. We identify a circular system of double-structured domination, where three mechanisms of euphemised discourse, rites of institution and socialisation normalise symbolic systems and disabling constraints for smaller firms. In addition to interviewing informants working in the field, this paper examines recent political challenges that have placed the role of the Big Four and their domination under increasing scrutiny. These challenges bring into focus issues of recognition and resistance to symbolic modes of domination, and we contemplate the impact of such discourses on the dynamics of the UK accounting field, and the Big Four’s continued influence. 

Abstract:
Innovation and pragmatism in tax design: Excess Profits Duty in the UK during the First World War.

In this article, we examine the design and administration of Excess Profits Duty (EPD), introduced in the UK in 1915. This represented a significant innovation as the country's first comprehensive attempt to tax ‘excessive’ business profits. EPD was a complex tax which had two objectives: to generate additional revenues to help fund dramatically increased wartime government expenditure and to curb ‘profiteering’. Although criticised on numerous grounds, we argue that the tax was surprisingly successful. For all its defects, it generated very substantial revenues, and its design and administration proved flexible and robust in coping with the uncertainties of war. 

Abstract:
Moral Hazard, Dividends, and Risk in Banks.

In non-financial firms, higher risk taking results in lower dividend payout ratios. In banking, public guarantees may result in a positive relationship between dividend payout ratios and risk taking. I investigate the interplay between dividend payout ratios and bank risk-taking allowing for the effect of charter values and capital adequacy regulation. I find a positive relationship between bank risk-taking and dividend payout ratios. Proximity to the required capital ratio and a high charter value reduce the impact of bank risk-taking on the dividend payout ratio. My results are robust to different proxies for the dividend payout ratio and bank risk-taking. © 2014 John Wiley & Sons Ltd. 

Abstract:
On the relevance of earnings components in valuation and forecasting.

This paper articulates the links between relevance of an earnings component in forecasting (abnormal) earnings and its relevance in valuation in a nonlinear framework. The analysis shows that forecasting relevance does not imply valuation relevance even though valuation irrelevance is implied by forecasting irrelevance. Firstly, I consider an accounting information system where earnings components "add up" to a fully informative earnings number. Secondly, I analyze two accounting systems where a "core" earnings component is the relevant earnings construct for valuation and the second earnings component is irrelevant but may be predictable and relevant in forecasting other accounting items. I find that dividend displacement effect on earnings and the dynamics of individual earnings components are critical in this analysis. © 2013 Springer Science+Business Media New York. 

Abstract:
Pre-adoption market reaction to IFRS 9: a cross-country event-study.

We are the first to examine the market reaction to 13 announcement dates related to IFRS 9 for over 5400 European listed firms. We find an overall positive reaction to the introduction of IFRS 9. The regulation is particularly beneficial to shareholders of firms in countries with weaker rule of law and a smaller divergence between local GAAP and IAS 39. Bootstrap simulations rule out the possibility that sampling error or data mining are driving our findings. Our main findings are also robust to confounding events and the extent of the media coverage for each event. These results suggest that investors perceive the new regulation as shareholder-wealth enhancing and support the view that stronger comparability across accounting standards of European firms is beneficial to international investors and outweighs the costs of poorer firm-specific information. 

Abstract:
Qualitative management accounting research in QRAM: Some reflections.

Purpose - This paper aims to offer a brief personal reflection upon, and celebrates, the 10th anniversary of Qualitative Research in Accounting & Management (QRAM). More specifically, the author highlights the journal's contributions towards advancing qualitative management accounting research over the last decade, and the author suggests possible future avenues. Design/methodology/approach - This short paper mainly constitutes a review of qualitative management accounting articles published in the first ten years of QRAM's publishing life, plus some personal reflection and suggestions for future directions. Findings - the author celebrates the impressive achievements of QRAM's founding editors, and the author is encouraged to offer the personal views on how the journal might excel further in years to come. Research limitations/implications - Although the piece is primarily personal reflection, there is hopefully some food for thought with regard to fruitful directions in tomorrow's qualitative management accounting research. In particular, arguments are made for more undertaking of processual qualitative research and also for more targeted focus on the connections between management accounting and other relevant disciplines such as management and organisation studies. Practical implications - the paper offers no practical implications as such, but does discuss, and in fact heeds some caution against, the apparent trend of (possibly too uncritically) seeking to tease out practical implications from qualitative management accounting research. Social implications - Again, while this paper offers no specific discussion on its social implications, the author would add that any qualitative management accounting research paper inherently carries at least some implications for society; management accounting and the wider society are continually intertwined through time. Originality/value - the author would not claim that there is much that is original in this short piece - most of what is offered simply gathers others' past contributions. But hopefully there will be some values in the ideas offered with regard to the exciting future ahead for qualitative management accounting research in QRAM. © Emerald Group Publishing Limited. 

Abstract:
Taxing Jamaica: the stamp act of 1760 & Tacky's rebellion.

In 1760 the colonial assembly in Jamaica passed an act imposing stamp duties on the island colony as a response to increased costs in the wake of a slave rebellion. This article examines the conditions in Jamaica which led to the introduction of the 1760 stamp act, and discusses the provisions of the Jamaican act along with the reasons for its failure. This episode in eighteenth century taxation serves as a reminder of the importance of both the social context and political expediency in the introduction of new forms of taxation. 

Abstract:
Twice as smart? the importance of managers' Formative-Years' international experience for their international orientation and foreign acquisition decisions.

This study examined how top management team's (TMT) international orientation influences perceptions of environmental uncertainty and how these perceptions impact international strategic decisions, in particular regarding ownership stakes taken in foreign acquisitions. We highlighted the need for the concept of TMT international orientation to encompass executives' formative-years' international experiences along with their international career experiences and nationalities. Empirical tests based on a sample of 2122 international acquisitions completed by 561 UK firms over the period 1999-2008 showed that TMT international orientation positively moderated the negative impact of cultural differences and host country risk on acquisition ownership stakes. The results underscored the importance of considering decision-makers' attributes due to their experiences at a young age, beyond their demographic characteristics or professional experience, in the context of international strategic choices. We also discussed some implications of one of the possible consequences of executives' formative international experience, namely biculturalism, for international business. © 2012 British Academy of Management. 

Abstract:
Taxation.

 

Abstract:
The Role of the Office of Tax Simplification in the United Kingdom and Lessons for Other Countries.

 

Abstract:
Fair value accounting and executive compensation.

 

Abstract:
Venture capital and financial reporting in newly public firms.

 

Abstract:
Tax avoidance, power, and politics.

 

Abstract:
Tax Complexity and Symbolic Power.

 

Abstract:
The Board of Referees: “A Most Useful Addition to Fiscal Machinery”.

 

Abstract:
Memorising, Understanding and Metacognition: an Analysis of the Acquisition of Metacognition in a Group of Students in an Introductory Accounting Class.

 

Abstract:
Natural capital accounting: Revisiting the elephant in the boardroom.