Behind the headlines : an analysis of Australian Commonwealth, State and Territory budget balance numbers

The introduction of accrual accounting principles for government reporting in recent years has been complicated by the presence of two alternative financial reporting frameworks, the Government Finance Statistics (GFS) framework and the Australian professional accounting standard rules. This paper presents the findings from a study of the 2004-05 and 2005-06 annual budgets prepared by the Australian Commonwealth government and the governments of the six Australian States and the two Australian Territories. The study examined the basis for the budget balance numbers (government surplus or deficit) headlined in the budgets of each of the nine governments over the two year period. Findings indicate the adoption of varying measurement bases and a resultant lack of inter-governmental and inter temporal comparability. A number of departures from the measurements
prescribed in the reporting frameworks were also observed.

Voices of experience : developing export capability through eCommerce in Australian SMEs

This paper reports an exploratory study of 19 Australian SMEs which had successfully used eCommerce develop to or enhance their export capability. The purpose of the study was to identify both successful adoption processes and impediments to using eCommerce for export. Few companies had  adopted a strategic and planned approach to managing this adoption. The lack of easily accessed and trustworthy information and advice was partly responsible. The study identified a number of other obstacles to  eCommerce export development, including infrastructure and technical deficiencies, lack of awareness and expertise, problems with banking and finance and problems with physical links into export destinations. The developments that would most enable Australian companies to use eCommerce for export are identified as: improvements in the infrastructure on which eCommerce depends; the provision of consolidated, impartial information and advice about the use of eCommerce for export; and training and skills development to facilitate the implementation of eCommerce for export.

Linking eCommerce and human resource strategies: a case study in a large Australian retail bank

The implementation of eCommerce technologies has considerably changed how employees in the banking industry interact with customers. For example, some customers use electronic banking applications to such an extent that they find little or no need to go into a branch. This change has had a significant impact on the way that jobs are designed and the way that employees are being managed. The preliminary findings from the case study of a large bank in Australia indicate that moving customers out of the branch to an online environment has created unforeseen issues for the way employees interact with customers and this in turn has changed the way that they do their jobs. The key challenge for banks in the future is how to form effective relationships with customers without some kind of face-to-face interaction. This impacts how organisations recruit and retain their staff as well as the level and type of skills required for jobs redesigned after the implementation of eCommerce applications. It is also an important factor in employee satisfaction.

To choose or not to choose: exploring Australians` views about internet banking

This paper explores Australian domestic customers' choices with regard to Internet banking, examining why it is taken up by some Australians and not others. The constructivist conceptual framework and the grounded nature of the method enabled in-depth exploration of key issues not undertaken before by the mainly positivist studies. The purposeful sample of 32 participants was selected to represent the major categories of people relevant to the research. Everett Rogers' famous analysis of 'diffusion of innovations' was one theoretical framework used to illuminate the findings; the other was digital divide factors in relation to banking choices. The findings include 1) that the major motivation for people to adopt Internet banking is convenience, closely linked to time savings and ease of accessibility, as well as confidence and skill in Internet use; and 2) that, at the time of the study, digital divide factors were playing an important part in banking choices.

Firms as adaptive organizations : the case of Australian trading banks

The conventional accounting notion of ‘going concern’ — that a firm will continue its business operations in the same manner indefinitely — has underpinned accounting practice for over one hundred years. This idea has provided a rationale for spreading costs over accounting periods and for deferring costs as assets in balance sheets. An alternative idea that is widely regarded as reliable in the literatures of economics and deliberate action is that firms continually adapt to changes in market and economic conditions. That is economic behaviour. The implications of that view of a firm for accounting have been systematically explored by Chambers (1966). While not examining those particular implications, many other accounting theorists have been critical of the conventional accounting idea of 'going concern' and of its impact on accounting practice. The two notions of ‘going concern’ - as static or adaptive enterprises - are examined by referring to the business operations of the four major Australian trading banks over the period 1983-1991. Banks were selected because they are commonly thought to be particularly ‘conservative’ organizations. The period 1983—1991 was chosen because it covers the era of deregulation of the Australian financial system. The evidence adduced by this study indicates that the Australian trading banks have continually adapted their organizational structures and business operations in the light of changes in technology, markets for financial services, government policies and domestic and global economic conditions. Illustrations of adaptive behaviour by banks ate drawn from their normal operating procedures such as the provision of products and services, loan services, acquisitions, sale of property, non-core banking operations and international banking. It is argued on analytical grounds that the cost basis of accounting does not yield financial statements that provide factual and up-to-date information about the financial capacity of firms to pay their debts and to continue trading generally; that is, to be going concerns. At any time, those financial capacities are determined by the amount of money commanded by a firm, including the money's worth of its assets, and by its level of debt. It is concluded on empirical grounds that the Australian trading banks, at least, are adaptive entities.

The relationship between exchange rates, interest rates and Australian bank returns

Although there has been significant research on US financial intermediaries' stock returns and sensitivity to interest yields, there has only been limited research on Australian bank stock returns and key macro variables, such as interest rates and exchange rates. The aim of this article is to examine this relationship for four major Australian banks, namely the Australia New Zealand bank (ANZ), the Commonwealth Bank of Australia (CBA), the National Australia Bank (NAB) and the Westpac Banking Corporation (WBC). We use the EGARCH model and examine the relationship using monthly data covering the period 1992 to 2007. The results suggest that for all four banks: (1) there is a similar and statistically significant negative relationship between interest rates and stock returns; and (2) there is evidence of an increase in returns during the period of appreciation of the Australian dollar.

Social cognitive theory in mobile banking innovations

This paper examines the behavior Australian youths have toward mobile banking. Social cognitive theory is the theoretical framework in which a conceptual model is empirically tested. The conceptual model includes five constructs (media, modeling, outcome expectancy, learning orientation and entrepreneurial orientation), which are proposed to influence an individual’s intention to adopt mobile banking. The conceptual model is tested in a sample of Australian youths and the analysis supports a portion of the proposed conceptual model. The findings support the link between the media and an individual’s entrepreneurial orientation with their intention to adopt mobile banking. The paper demonstrates how social cognitive theory is a useful foundation to understand the external and internal stimuli that influence an individual’s desire to adopt mobile banking.

Cyber security and protection of ICS systems: An australian example

Many aspects of our modern society now have either a direct or implicit dependence upon information technology. As such, a compromise of the availability or integrity in relation to these systems (which may encompass such diverse domains as banking, government, health care, and law enforcement) could have dramatic consequences from a societal perspective. These key systems are often referred to as critical infrastructure. Critical infrastructure can consist of corporate information systems or systems that control key industrial processes; these specific systems are referred to as ICS (Industry Control Systems) systems. ICS systems have devolved since the 1960s from standalone systems to networked architectures that communicate across large distances, utilise wireless network and can be controlled via the Internet. ICS systems form part of many countries’ key critical infrastructure, including Australia. They are used to remotely monitor and control the delivery of essential services and products, such as electricity, gas, water, waste treatment and transport systems. The need for security measures within these systems was not anticipated in the early development stages as they were designed to be closed systems and not open systems to be accessible via the Internet. We are also seeing these ICS and their supporting systems being integrated into organisational corporate systems.

The impact of target board recommendations in Australian takeovers

This paper examines the impact of targe board recommendations on the probability of the bid being successful in the Australian takeovers context. Specifically, we model the success rate of the bid as a binary dependent variable and target board recommendations or the board hostility as our key independent variable by using logistic regression framework. Our model also includes bid structures and conditions variables (such as initial bid premium, bid conditions, toehold, and interlocking relationship) and bid events (such as panel and bid duration) as our control variables. Overall, we find board hostility has statistically significant negative effect on the success rate of the bid and almost all control variables (except for the initial bid premium) are statistically significant with the correct sign. That is, we find toehold, the percentage of share required to make the bid becomes successful, and the unconditional bid have positive impact on the success rate of the bid, at least as predictive determinants prior to the release of any hostile recommendation. Consistent with Craswell (2004), we also find the negative relation between interlocking relationship and the success rate of the bid. Our finding supports that from target investors’ point of view, interlock is consistent with the negative story of self interest by directors. Finally, like Walking (1985), we find that the initial bid premium does not have influence on the success rate of the bid. Hence our results reinstate Walking’s bid premium puzzle in Australian context.