Quality of internal control procedures : antecedents and moderating effect on organisational justice and employee fraud

Purpose – This study aims to bring together theoretical concepts from the organizational justice, internal control and fraud literature to develop two distinct models relating to employee fraud and the quality of internal control procedures (ICP), respectively.

Design/methodology/approach – Survey data from 64 Australian firms were used to develop the two models. The first model was tested using a logistic regression analysis, and the second model was tested using a multiple regression analysis.

Findings – The first model reveals that the quality of ICP has a moderating effect on the relationship between perceptions of organizational justice and employee fraud. The second model indicates that ICP quality is significantly and positively related to three key organizational factors: the corporate ethical environment, the extent of risk management training of staff, and the internal audit (IA) activity level.

Practical implications – Risk management strategies relating to employee fraud will need to pay greater attention to organizational factors that affect both perceptions of justice at the workplace and ICP quality, including fostering a more ethical and equitable work environment, increasing IA activities and staff training in risk management.

Originality/value – Using the fraud triangle framework, this study extends previous literature by providing empirical evidence on the role of organizational justice and ICP regarding employee fraud.

Future landscapes in South-eastern Australia : the role of protected areas and biolinks in adaptation to climate change

The extent and rapidity of global climate change is the major novel threatening process to biodiversity in the 21 st century. Globally, numerous studies suggest movement of biota to higher latitudes and altitudes with increasing empirical -evidence emerging. As biota responds to the direct and consequent effects of climate change the potential to profoundly affect natural systems (including the reserve system) of south-eastern Australia is becoming evident. Climate change is projected to accelerate major environmental drivers such as drought, fire and flood regimes. Is the reserve system sufficient for biodiversity conservation under a changing climate? Australia is topographically flat, biologically mega-diverse with high species endemism, and has the driest and most variable climate of any inhabited continent. Whilst the north-south orientation and aftitude gradient of eastern Australia's forests and woodlands provides some resilience to projected climatic change, this has been eroded since European settlement, particularly in the cool-moist Bassian zone of the south-east. Following settlement, massive land-use change for agriculture and forestry caused widespread loss and fragmentation of habitats; becoming geriatric in agricultural landscapes and artificially young in forests. The reserve system persists as an archipelago of ecological islands surrounded by land uses of varying compatibility with conservation and vulnerable to global warming. The capacity for biota to adapt is limited by habitat availability. The extinction risk is exacerbated. Re-examination of earlier analysis of ecological connectivity through biolink zones confirms biolinks as an appropriate risk management response within a broader suite of measures. Areas not currently in the reserve system may be critical to the value and ecological function of biological assets of the reserve system as these assets change. Ecological need and the rise of ecosystem services, combined with changing socio-economic drivers of land-use and social values that supported the expansion of the reserve system, all suggest biolink zones represent a new, necessary and viable multi-functional landscape. This paper explores some of the key ecological elements for restoration within biolink zones (and landscapes at large) particularly through currently agricultural landscapes.

The impact of small business on the environment

Objectives: Small businesses are estimated to contribute a significant proportion of global pollution, yet there is little empirical evidence to support this claim. The main aim of this research was to conduct an exploratory analysis of small business’s environmental impact in terms of waste, water and energy.

Prior work: Due to the negative impact small businesses are reported to have on the environment, their disengagement in environmental management practices has caused international concern. Much of the literature has concentrated on identifying the barriers and drivers of small business engagement. Little empirical work being conducted on the actual impact of they have on the environment or on the influence of the local context on their environmental practices.

Approach: A survey was developed and distributed to 466 small businesses within two light industrial areas in Perth Western Australia, which achieved a response rate of 87%. This survey will be replicated after a 12 month intervention is conducted. The two light industrial areas were selected as their Local Government Authorities are looking for businesses within their boundaries to improve their environmental performance.

Results: Initial results suggest that the small businesses do have a considerable impact on the environment in terms of waste disposal. Moreover, their environmental management practices concerning waste, energy and water were found to differ depending on the local contexts in which the small businesses operate.

Implications: As small businesses are both economically and socially important to all major industrialised nations, empirical research that provides evidence of their impact on the environment is critical. The implication here is that if the context in which these businesses operate influences the practices employed, developing strategies that acknowledge the influence and consequences of context may be more effective than those currently available. Differences identified within practices suggest that greater awareness and education is needed on water management than energy or waste, as this is the area where small business owner-managers have shown they have less knowledge and/or active engagement.

Value: This research is valuable in three ways. First, it adds to the knowledge of small business impact on the environment. Second, it identifies that context may be a factor that needs to be considered when developing strategies to engage small businesses in environmental management. Finally, it shows that the environmental management of water is the least well established environmental priority of small businesses at this time.

Buffering effect of leisure self-determination on the mental health of older adults

Leisure self-determination was tested for its capacity to buffer the effects of life stress on the level of depression of older adults. A direct association between leisure-self-determination and level depression was also tested. A sample of 152 individuals aged 49 years and over completed a questionnaire which included measures of stress, leisure self-determination, and depression. Hierarchical multiple regression analysis incorporating an interaction component to represent the buffering effect was used to analyse the data. Higher levels of leisure self-determination were significantly associated with lower levels of depression regardless of life stress. Leisure self-determination also acted as a buffer of the association between life stress and depression. The study has significant theoretical and practical implications. Theoretically, it supports the stress buffering hypothesis of Coleman and Iso-Ahola (1993) when applied to a sample of older adults. The practical implications of the empirical evidence focus on the importance of fostering leisure self-determination dispositions through leisure practices, policies, and leadership styles that facilitate and support older adult autonomy in leisure experiences.

Corporate governance, firm characteristics and risk management committee formation in Australian companies

Purpose – The purpose of this paper is to examine how a risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation's risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant.

Design/methodology/approach – Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, Chief Executive Officer duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and the existence of a RMC, and the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 Australian Stock Exchange (ASX)-listed companies.

Findings – The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity.

Research limitations/implications – Data limited to top 200 top ASX-listed companies, thus restricting generalisability of the results.

Originality/value – The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

Preparing accounting students for success in the professional environment : enhancing self-efficacy through a work-integrated programme

This study provides empirical evidence of the effect of a simulated work integrated learning (WIL) program on students’ self-efficacy within an accounting context. An Accounting WIL Program was designed as a two-staged module using information seminars, networking sessions and in-depth workshops that helped develop final year accounting students’ understanding of the accounting profession as well as some basic skills expected of a new recruit. Data from a questionnaire survey of 35 participant students indicates that the students perceived greater self-efficacy upon completion of the WIL program, and that male students appeared to show greater self-efficacy for selected items.

The existence and nature of risk management committees in Australian companies

A risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation’s risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant. Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, CEO duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and (1) the existence of a RMC, and (2) the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 ASX-listed companies. The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity. The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

Clinical judgements : research and practice

This paper explores issues that are relevant to the judgements routinely made by clinical psychologists. It first considers the relative merits of clinical and statistical approaches to decision making and notes that although much of the empirical evidence demonstrates the greater accuracy of statistical approaches to making judgements (where appropriate methods exist), they are rarely routinely used. Instead, clinical approaches to making judgements continue to dominate in the majority of clinical settings. Second, common sources of errors in clinical judgement are reviewed, including the misuse of heuristics, clinician biases, the limitations of human information-processing capacities, and the overreliance on clinical interviews. Finally, some of the basic strategies that can be useful to clinicians in improving the accuracy of clinical judgement are described. These include advanced level training programs, using quality instruments and procedures, being wary of overreliance on theories, adhering to the scientist-practitioner approach, and being selective in the distribution of professional efforts and time.

Measuring life balance through discrepancy theories and subjective well-being

The concept of life balance implies that there is some optimal time allocation between the various forms o(human activity we engage in each day. So life balance can be measured by the size of the discrepancy between how we should and how we do allocate our time.
If someone chooses to spend all of their discretionary time writing poetry, is this a balanced life? Many people would say no. They would judge such a life to be imbalanced because life is full of competing demands, and writing poetry all day means that other aspects of life are neglected.
But is this just an imposed value judgment, or does the concept of a balanced life have deeper meaning? The answer must lie with whatever we use to measure the outcome. Any conclusion that balance is better than imbalance must be based on empirical evidence. So, what should be measured?

Phenomenological inquiry into the experience of web project managers

The advent of the Internet and the World Wide Web has been instrumental in bringing about the growth in the implementation of web-based information systems (WBIS). Such systems are designed with the aim of improving productivity, data accuracy, and the reduction of paperwork and administrative overheads. Moreover, unlike their conventional non-web-based predecessors, the WBIS are commonly aimed at users who are casual and untrained, geographically distributed and non-homogenous. The dissemination of WBIS necessitates additional infrastructure support in the form of a security system, workflow and transaction management, and web administration. WBIS are commonly developed using an evolutionary approach, whereby the version of the application, acquired from the vendor, is first deployed as a pilot, in order to gather feedback from the target users before the evolutionary cycles commence. While a number of web development methodologies have been proposed by existing research, there is a dearth of empirical evidence that elucidates the experiences of project initiators in pursuing the evolution of web services, a process that undoubtedly involves dealing with stakeholder issues. This research project presents a phenomenological investigation of the experiences of project managers with the implementation of web-based employee service systems (ESS), a domain that has witnessed a sharp growth in Australia in recent times. However, the project managers’ rich, multidimensional account of their experiences with the implementation of ESS revealed the social obstacles and fragility of intra-organizational relationships that demanded a cautious and tactful approach. Thus, the study provides a socio-organizational perspective to web projects in contrast to the functionalist paradigm of current web development methodologies. The research also confirms that consideration of the concerns of stakeholders by project managers is crucial to the successive cycles of ESS evolution. Project managers address stakeholder concerns by pursuing actions that are aimed at encouraging ESS usage, but at the same time, such actions can have consequences necessitating subsequent iterations of system enhancement and improvement. Finally, the research also discovered that despite the different socio-political climate prevalent in various organizations, in which ESS are being implemented, the experiences of project managers in dealing with stakeholder concerns can be captured and independently confirmed in terms of their perceived relevance and usefulness in problem-solving within the application domain.

Employee psychological contracts

This thesis concerns the psychological contracts of employees. A psychological contract is an employee’s perception that: 1) an employer has certain obligations to them, and 2) in return, they have obligations as employees. A psychological contract is therefore a set of subjectively perceived reciprocal obligations. The psychological foundations of this construct are linked with cognitive schemas and social exchange theories. While the concept of psychological contracts was first proposed in the early 1960s, it has only been operationalised for empirical study in the last decade. The purpose of the thesis was to increase the understanding of the content and structure of employee psychological contracts and their links with career cognitions. The specific aims of the thesis were to: 1) examine the relational-transactional dimensions of psychological contracts, 2) develop a comprehensive set of workplace obligations for use with employees, 3) consider alternative dimensions of employee psychological contracts, 4) demonstrate reciprocity between obligations, and 5) determine whether psychological contracts directly affect career cognitions. The thesis contains four quantitative studies. Data were collected using self-report questionnaires that contained both established and new measures. Most participants were employees from a large insurance company, government vocational services or educational institutions. The analyses included canonical correlation, factor analysis, development of measurement models and structural analysis. The findings did not strongly support a distinction between relational and transactional obligations. Instead, a five-factor model of psychological contracts emerged from an expanded set of workplace obligations when it was used with two separate employee samples. This model demonstrated reciprocal relationships between the dimensions of employee and employer obligations. It was also found that alternative dimensions of the psychological contract have a direct influence on organisational commitment and career satisfaction. The thesis supports several general conclusions about the nature of employee psychological contracts, appropriate measures and future research. General workplace obligations that apply across different workplaces can be found, and these should continue to be refined. Such workplace obligations group in meaningful ways, and they can be usefully studied in terms of employer support and employee attitudes to work, rather than in terms of relational and transactional dimensions. Furthermore, this thesis shows that reciprocity in psychological contracts can be demonstrated by correlations between dimensions of employee and employer obligations. The measure used for studying reciprocity was new, and it requires further work. However, this measure is as reliable and valid as any currently available. Measurement is the single most urgent issue facing researchers. Finally, this thesis provides sufficient empirical evidence to support the claim that psychological contracts are an important variable for the understanding of careers.

Relationship between workplace reform and workforce participation

This thesis sought to advance understanding of the politics of workplace reform, explaining the respective roles of management and employees and how they relate. The literature on workplace reform usually argues that reform is predicated on greater workforce participation in managerial decisions. More specifically, different approaches to workplace reform can be aligned to different forms of participation. Thus quality management can be associated with direct forms of participation, institutional workplace reform may depend on representative forms, and best practice may require a combination of both. This thesis uses empirical evidence to explore this alignment between the different approaches to workplace reform and forms of participation. The period chosen for empirical study is approximately 1985-1992 - an era of rapid innovation in workplace reform for Australian manufacturing. Three workplaces were chosen for intensive study from automotive component manufacturers because that industry was itself a laboratory for workplace reform and also because these firms exemplified different approaches to competitiveness and reform. Three approaches to workplace reform - quality management, institutional workplace reform, and best practice - were distinguished to capture the range of Australian practice at that time. Similarly two approaches to workplace participation were distinguished - direct and representative - to reflect the range of observable practices at that time and to represent competing philosophies. Direct participation illustrated an approach founded in managerial context of the political status quo, whilst representative forms were considered to permit a pluralist shift of power to enable employees to manage in place of management. The three case studies depict companies sharing the competitive crisis of their industry. From this stems the impetus for workplace reform. At this point the firms diverged in their choice of competitive strategies for workplace reform. The case studies reveal, at the superficial level, a match between the chosen approaches to workplace reform and forms of participation. Basically, quality management is associated with direct employee participation, institutional workplace reform with collective bargaining and representative consultative committees, and best practice with both. However when the implementation of reform and participation are examined this match becomes less significant. One firm, Auto Air, achieved highly effective outcomes in both reform and participation. Another firm, Auto Electrical, failed in both. The thesis concluded that the relationship between forms of participation and reform is less significant than the effective implementation of policy. Unitarist or pluralist approaches to power distribution count less than managerial capacity to integrate successive reform initiatives and their commitment to workforce participation hi change.

Nature, extent and antecedents of risk managment practices in knowledge-intensive firms

This study provides empirical evidence on the nature and extent of risks faced by Small to Medium-Sized Knowledge Intensive Firms (SMKIFs) and the risk management approaches adopted by them. The study also assesses the effects of selected organisational factors such as industry, entity size and risk governance leadership on the commitment by SMKIFs to using an Enterprise Risk Management (ERM) approach. Data was obtained through a questionnaire survey of SMKIFs in the state of Victoria, Australia which were either in the bio-technology (bio-tech) or the accounting and legal (business services) industry sectors. Based on a total of 104 (13%) useable responses from senior managers in charge of risk management, some of the key findings include the identification of the top three risks faced by SMKIFs being (i) potential damage to firm’s reputation, (ii) inability to recruit and retain workers who have appropriate skills and expertise, and (iii) increase in costs. Interestingly, while 51% of the respondents described their firms as being willing to or keen to take risks, 38% saw their firms as being either preferring not to take risks or refuse to take risks, with the remainder of the firms (11%) viewed as neutral. The data also indicates that more than half of the respondent firms (54%) had established either a complete or a partial ERM system. Further, data analysis based on a binary logit regression model indicates bio-techs, firm size and directors’ support of risk management as key predictors of ERM implementation in SMKIFs.

Male and female effects on fertilization success and offspring viability in the Peron's tree frog, Litoria peronii

There is increasing theoretical and empirical evidence that genetic compatibility among partners is an important determinant of fertilization success and offspring viability. In amphibians, females often actively choose partners from among a variety of males and polyandry is common. Genetic compatibility among partners may therefore be an important determinant of fertilization success and offspring viability in some amphibians. Amphibians also show some of the highest levels of genetic differentiation among neighbouring populations known in vertebrates, and as such, populations may have evolved different co-adapted gene complexes. This means that offspring from among-population crosses may have reduced fitness. It is therefore essential to understand to what extent crossings between and within populations may interfere with successful fertilization and offspring viability. Here, we test whether crossing individuals within and between two different populations of the Australian Peron's tree frog (Litoria peronii) using artificial fertilizations affect fertilization success and offspring viability. Fertilization success per se is strongly influenced by male identity, which is likely to depend at least to some extent on the experimental procedure (e.g. resulting in variation in sperm number per ejaculate), whereas there was no fertilization effect of female identity. More importantly, male and female identity, independently of each other, explained significant variation in offspring viability, whereas no such effect could be linked to population of origin. Thus, our experiments suggest that crossing populations may not always be the most significant factor affecting fertilization success or offspring viability, but may be more influenced by the genetic quality or the genetic compatibility of partners.

Profiling the sport consumption attitudes and behaviours of fantasy football players

Most sporting codes encourage participation in Fantasy Sport (FS), despite few making direct revenue from it. There is a lack of empirical evidence whether this is good practice, for although FS can increase involvement and education, it may also compete with other forms of sport consumption for consumers limited resources. This study begins to address whether FS competes with or  complements sport consumption by comparing FS players with nonplayers. Data was collected from surveys (n=182) of AFL fans, with findings indicating FS players had higher tested measures of attitudes (e.g., team identification, commitment) and behaviours (e.g., game attendance, television viewing) related  to the sport. What remains to be determined is causality, and suggestions on how to examine this are given.