Does accounting choice influence US investment in non-US companies? Evidence from US institutional investment in Australian companies

Previous research asserts that companies that choose accounting methods more familiar to investors reduce information asymmetry and increase credibility of their financial statements to those investors, thereby attracting higher levels of foreign investment. This study examines the variation in accounting policies associated with institutional investment in Australian equity. The results suggest that large US institutional holdings in Australian companies are associated with American Depositary Receipt listing and, incrementally, choice of accounting methods that conform to US Generally Accepted Accounting Principles (GAAP). Although making accounting choices in compliance with US GAAP is significantly associated with higher levels of institutional ownership in a statistical sense, examination of the specific differences in accounting choices suggests that the differences in informational content are relatively minor.

Quality in accounting education and low English standards among overseas students : is there a link?

Two studies of stakeholders in university education for accounting professionals in Australia provide evidence of a decline in the quality of accounting education as perceived by accounting academics. This decline may be linked to increasing enrolments of international students with poor English language skills. Some university lecturers indicate that the quality of students entering their courses has declined, as has the quality of those graduating. In an environment increasingly dominated by the need to publish or perish, assessment tasks such as essays, case studies, and research reports, designed to improve the English language and communications skills of graduates, may have been compromised. This may contribute to the fact that many employers of graduates are concerned about the low levels of English language and communication skills displayed by accounting graduates, particularly international students.

Changes in higher education and valuing the job : the views of accounting academics in Australia

In a previous article (Bellamy et al., 2003), the authors reported on survey research that investigated reasons why academics from business disciplines enter and remain in academia, and the conditions they deem necessary to creating ideal work satisfaction. For both entering and remaining, as well as in achieving ideal work satisfaction, the most important factors were found to be autonomy and flexibility, with teaching and research the next most important factors. In a subsequent analysis of the data, reported in this article, the authors identify and explore significant differences between accounting academics and other business academics in the relative importance placed on these key factors. The findings may be used to inform policy makers and university administrators of the importance of discipline differences when identifying key factors for recruitment and retention of accounting academics specifically, and business academics generally.

Forensic accounting and Benford's law

An article [1] in the Journal of Forensic Accounting reviewed the background and development of forensic accounting using Benford’s Law (BL)—an interesting property in natural occurring numbers that can help identify fraudulent data in corporate financial records. The field of forensic accounting, and this law in particular, are relevant in light of several recent events that required the identification of false or otherwise misrepresented information in corporate financial statements. Such information was used or intended to be used to fraudulently misappropriate company funds, cover up illegal transactions, or evade taxation. In this article, we comment on forensic accounting and BL from a signal processing (SP) perspective.

Value relevance of accounting information in China pre- and post-2001 accounting reforms

Purpose – This paper aims to investigate whether the accounting reform in China has improved the relevance of China's accounting information. It seeks to investigate the association between earnings and book value of equity to share returns before and after the introduction of the Accounting System for Business Enterprises (ASBE) in 2001 for A- and A&B-share firms.

Design/methodology/approach – The paper employs the return regression model. The pre-ASBE period is designated as 1997 through to 2000, and the post-ASBE period is designated as 2002 through to 2004. All firms listed on the Chinese stock market during the investigation period constitute the sample.

Findings – It is found that accounting information better explains share returns for both A-share firms and A&B-share firms in the post-ASBE period. The paper also finds that the book value of equity for A&B-share firms is incrementally value relevant to that of A-share firms in the post-ASBE period.

Research limitations/implications – Further studies will contribute to understanding how governance mechanisms and liquidity influence the association between accounting information and share returns in the Chinese A-share market.

Practical implications – The findings provide empirical evidence regarding the relevance of accounting information in emerging markets.

Originality/value – The paper contributes to the extant value relevance literature by investigating time periods surrounding the issue of ASBE in 2001 in the Chinese stock market.

Ethics education in accounting curricula : evidence from Malaysia

This study reveals that the extent to which accounting academics integrate ethics in their teaching is significantly and positively associated with the belief in their ability to teach ethics, which is found to be a function of peer support, Head of Department leadership and their own attitudes towards ethics education.

Student perception of learning approach and teamwork benefits in accounting : a qualitative study

Accounting academics have heeded the call to incorporate team learning activities into the curricula, yet little is known of student perception of teamwork and whether they view it as beneficial to them. This study addresses the gap by utilising qualitative techniques to examine student perception of the benefits of teamwork and what aspects of the teamwork will contribute to their future professional work. Results indicate that students perceive teamwork enables the use of deep learning and, further, that teamwork at the undergraduate level contributes to their future abilities in the profession. The paper ends by presenting implications for accounting educators.

Expanding the horizons of accounting education : incorporating social and critical perspectives

This paper examines a case of accounting education change in the context of increased interest in ethical, social, and environmental accountability, presenting a reflexive case study of a new university accounting subject incorporating social and critical perspectives. Foundational pedagogical principles and key aspects of curriculum are outlined. The pedagogy draws on the integration of humanistic and formative education (principally based on Gramscian and Freirean approaches) and deep and elaborative learning. Two key aspects of curriculum and pedagogy are analysed. First, a curriculum based on a broad conception of accounting and accountability as power-laden social processes, drawing on a range of research literature. Second, the adoption of an authentic, supportive, and collegial team teaching approach. Students’ feedback relating to identified issues is presented. The paper contributes to the renewal of the social and ethical worth of accounting education, concluding that deep accounting educational change encompasses both the content and practice of classroom activity and changes in the self-consciousness of staff and students.

The effect of the work environment on accounting students' moral reasoning and development

Puxty et al. (1994) claim that professional accountants are induced to act ethically through two aspects of their socialisation, the education process, and the influence of work experience and role models who show what it means to be ethical. The education of accountants is not simply a matter of becoming technically competent, it is also a process of internalising accepted norms of professional conduct. Student accountants learn acceptable behaviour by learning the principles of good conduct in their education, and receiving advice and observing what significant others do in the workplace. The purpose of this paper is to explore the effect of the work environment on accounting students moral reasoning and development by comparing the DIT P-scores of accounting students pre and post cooperative education. Cooperative eduction is an industry placement program where students are required to work in commerce and industry for one year. Findings indicate that DIT P-scores decrease during cooperative education suggesting that accounting students, whilst in the work environment, do not reason according to their capability as measured by their pre-test scores.

Perceptions of corporate social and environmental accounting and reporting practices from accountants in Bangladesh

Purpose – The aim of this study is to elicit accountants' perceptions regarding corporate social and environmental accounting and reporting practices in a developing country such as Bangladesh.

Design/methodology/approach – Members of the Institute of Chartered Accountants of Bangladesh (ICAB) were surveyed to determine their perceptions on issues pertaining to social and environmental accounting and reporting practices in Bangladesh.

Findings – Whilst the findings show that accountants have positive attitudes toward corporate social and environmental accounting, progress is limited, with the absence of ICAB in making any noticeable effort to develop such practices.

Research implications – Unlike prior studies, the implications of this study suggest that without international influence, it is less likely that institutional forces in Bangladesh (ICAB and the government) would be effective in dealing with social and environmental accounting and reporting issues.

Originality/value – While prior studies advocate proactive roles of the accounting profession, this study argues that proactive roles are less likely to prevail in the context of Bangladesh without direct intervention from institutional and regulatory authorities in the international arena.