Were regulatory changes in reporting "abnormal items" justified? : evidence of intra-period classificatory earnings management practices in Australia

Purpose Managers generally have discretion in determining how components of earnings are presented in financial statements in distinguishing between ‘normal’ earnings and items classified as unusual, special, significant, exceptional or abnormal. Prior research has found that such intra-period classificatory choice is used as a form of earnings management. Prior to 2001, Australian accounting standards mandated that unusually large items of revenue and expense be classified as ‘abnormal items’ for financial reporting, but this classification was removed from accounting standards from 2001. This move by the regulators was partly in response to concerns that the abnormal classification was being used opportunistically to manage reported pre-abnormal earnings. This study extends the earnings management literature by examining the reporting of abnormal items for evidence of intra-period classificatory earnings management in the unique Australian setting. Design/methodology/approach This study investigates associations between reporting of abnormal items and incentives in the form of analyst following and the earnings benchmarks of analysts’ forecasts, earnings levels, and earnings changes, for a sample of Australian top-500 firms for the seven-year period from 1994 to 2000. Findings The findings suggest there are systematic differences between firms reporting abnormal items and those with no abnormal items. Results show evidence that, on average, firms shifted expense items from pre-abnormal earnings to bottom line net income through reclassification as abnormal losses. Originality/value These findings suggest that the standard setters were justified in removing the ‘abnormal’ classification from the accounting standard. However, it cannot be assumed that all firms acted opportunistically in the classification of items as abnormal. With the removal of the standardised classification of items outside normal operations as ‘abnormal’, firms lost the opportunity to use such disclosures as a signalling device, with the consequential effect of limiting the scope of effectively communicating information about the nature of items presented in financial reports.

Regulating Prostitution: Different Problems, Different Solutions, Same Old Story

This article looks at three main models of intervention that have informed recent policy and practice with people involved in the sex trade. It reveals the inherent contradictions within attempts to both help and punish workers in the existing prostitution strategy.

In search of a youth justice pedagogy? A commentary

Purpose – This paper seeks to look at youth justice (YJ) personnel training and education and the recommendations about it made in Time for a Fresh Start. Design/methodology/approach – The pedagogic tensions that currently shape YJ training are described – particularly those around the question of instructionalism vs education and what “specialist” means in the context of YJ. Findings – The paper suggests that the authors of Time for a Fresh Start missed the opportunity to better serve the public and young people's interests by neither acknowledging the pedagogic tensions nor articulating what a “specialist” “YJ” professional training can mean in twenty-first century England and Wales. Originality/value – The paper highlights an urgent need for an open debate between academics, practitioners and policy makers about YJ pedagogy.

The influence of service quality and trade show effectiveness on post-show purchase intention

Purpose The purpose of this paper is to develop and test an integrative services framework to investigate the role of perceived trade show effectiveness on overall trade show service outcome, conceptualised as the intention to purchase a related product after, rather than during, a show. Design/methodology/approach Drawing on the services marketing and trade show literature, the authors test a model of trade show effectiveness with data collected from 592 attendees at a major automotive trade show in a large metropolitan centre. Findings Results show that improving trade show visitors' perceived service quality positively affects visitor perceptions of trade show effectiveness. Furthermore, both trade show effectiveness and service quality directly influence future purchase intention. Research limitations/implications Employing a services theoretical framework to evaluate trade show visitor experiences provides an alternative to the traditional marketing communications approach. By viewing such visits as service encounters, managers must inevitably consider the effects of service quality and service outcomes in determining the likely success of their shows. The study primarily focuses on one large consumer show and therefore does not constitute a complete, nor necessarily representative, sample of the trade show industry. Originality/value The original contribution of the paper stems from the paucity of research conceptualising trade shows as services and the comparative lack of emphasis placed on visitors rather than exhibitors in the literature. The research not only has utility for trade show organisers but also provides necessary theory-based research in the trade show domain.

Critical sustainability factors in industrialised building systems

Purpose – This paper presents findings of a research study aimed at identifying critical sustainability factors for improved implementation of Industrialised Building Systems (IBS). It also highlights the importance of decision support, through the establishment of decision making guidelines, for sustainability deliverables in IBS development. Design/methodology/approach – A broad range of sustainability factors, as perceived by researchers and practitioners, are identified through a comprehensive literature study. A study of the survey and statistical data analysis is conducted to examine the criticality of these sustainability factors in IBS implementation. Findings – 18 sustainability factors are identified as critical to IBS implementation. Their interrelationships and driving forces are explored, which leads to the development of a conceptual model to map these factors for actions or potential solutions. The work provides a sound basis towards a set of decision making guidelines for sustainable IBS implementation. Originality/value – Compared with previous studies that focus on technical or economical aspects, this study extends existing knowledge on construction prefabrication by linking all aspects of sustainability issues with the design process. It also covers industry characteristics of developing countries, as represented by Malaysia’s scenarios.

Domestic and international strategies in the Queensland wine industry

Purpose Over the past decade, the Queensland wine industry has experienced a greater percentage growth than the Australian national average. The aim of the research undertaken for this article is to identify specific national and international strategies that have allowed the industry to achieve this level of growth. Design/methodology/approach The study involved a quantitative survey of all Queensland wineries at the time (n=101), using a five-point Likert-scaled questionnaire with questions developed from the literature, together with a small-scale qualitative survey involving in-depth interviews of winery managers and industry leaders. Findings The findings indicated that key strategies in the domestic sector included a focus on cellar door sales combined with establishing links with the tourism industry, together with an incremental expansion of domestic markets. For the international sector, additional strategies included targeting familiar, psychically-close and niche markets in the initial stages of exporting, as well as taking advantage of firm-specific strengths and managerial competencies. Originality/value Not previously regarded as a major wine producing region of Australia, the Queensland wine industry has received limited attention in the literature, particularly the reasons for its rapid growth in recent years. The article helps to identify the strategies used by wineries in growing the industry.

Buy, boycott or blog : exploring online consumer power to share, discuss and distribute controversial advertising messages

The availability of new media as a universal communication tool has an impact on the power of the general public to comment on a variety of issues. This paper examines this increase in consumer power with respect to bloggers. The research context is controversial advertising, and specifically Tourism Australia’s “Where the bloody hell are you?” campaign. By utilising Denegri-Knott’s (2006) four on-line power strategies, a content analysis of weblogs reveals that consumers are distributing information, opinion and even banned advertising material, thereby forming power hubs of like-minded people, with the potential to become online pressure groups. The consequences and implications of this augmented power on regulators, advertisers and bloggers are explored. The findings contribute to the understanding of blogs as a new communication platform and bloggers as a new demographic of activists in the process of advertising.

Service convenience and social servicescape : retail vs hedonic setting

Purpose – While there have been numerous studies on the antecedents and consequences of service quality, there has been little investigation of the moderators of service quality. The purpose of this study is to demonstrate the effects of two moderators: service convenience and the social servicescape. The moderating effects are tested in two service settings: retail and hedonic (concert). Design/methodology/approach – A survey of 270 customers at kitchen display showrooms and 320 concert-goers was undertaken. The results were analysed using regression analysis. Findings – The results show support for ten of the 12 hypotheses. Service convenience moderated the relationships between perceived service quality and its three sub-dimensions (interaction, environment, and outcome quality), differently in different settings (retail vs hedonic). This supports the authors' general argument that the outcome dimension tends to be more important to customers in a retail setting, while interaction and environment quality dimensions tend to be more important in hedonic service consumption. Practical implications – These findings suggest that managers need to use different service management tactics in retail and hedonic service settings. Specifically managers in retail settings need to pay more attention to service convenience to achieve service quality and managers in hedonic settings should concentrate on the social servicescape. Originality/value – This paper is the first to test the moderating factors of service convenience and social servicescape on service quality.

Toward a shopping typology of primary male grocery shoppers

Purpose – The purpose of this paper is to segment primary male grocery shoppers based on store and product attribute evaluations. A rich profile for each segment is developed. These developed contemporary shopper typologies are contrasted against earlier works. Design/methodology/approach – Data of 280 male grocery shoppers was attained by a survey questionnaire. Factor analysis, cluster analysis and ANOVA were employed to develop specific segments of male shoppers. Findings – Four distinct cohorts of male shoppers emerge from the data of eight constructs, measured by 46 items. One new shopper type, not found in earlier typology literature, emerged from this research. This shopper presented as young, well educated, at the commencement of their career and family lifecycle, attracted by a strong value offer and willingness to share the family food shopping responsibilities. Practical implications – Research outcomes encourage supermarket retailers to implement targeted marketing and rationalized operational strategies that deliver on attributes of importance. Originality/value – This research makes a contribution to segmentation literature and grocery retail practice in several ways. It presents the first retail typology of male supermarket shoppers, employing a cluster analysis technique. The research provides insights into the modern family food shopping behaviour of men, a channel in which men are now recognised as equal contributors. The research provides the basis for further gender comparative and cross-contextual studies.

Editorial : promoting integrated development for smart and sustainable built environment

Purpose – This purpose of this paper is to introduce the new Smart and Sustainable Built Environment (SASBE) journal to readers by discussing the background and underlying principles of its establishment, the editorial visions, and the range of papers selected in this first issue. It will encourage readers and potential authors to consider the need for integrated approaches to sustainability problems, to take on emerging challenges in the built environment and to join the SASBE journal in finding and promoting optimum solutions. Design/methodology/approach – This paper explores the evolving nature of sustainability, the recent trends of sustainability endeavours in built environment and the current knowledge gaps. The need to bridge these gaps is then discussed in the context of suggested remedies and justifications. This leads to the development of a smart and sustainable built environment as a R&D philosophy for world researchers as part of their interactions with professional bodies and agencies such as CIB, UNEP and iiSBE, and the establishment of the SASBE journal. Findings – Sustainable development in the built environment requires holistic thinking and decision making and innovative solutions that enhance sustainability and result in mutually beneficial outcomes for all stakeholders. A dedicated forum, through the journal of SASBE, is much needed for the exploration, discussion, debate, and promotion of these integrated approaches. Originality/value – Through presenting an overview of the current issues and identifying gaps in the understanding and pursuit of sustainability in the built environment, this paper suggests potential areas for future research and practice as well as possible topics for authors to make new contributions.