Pacific Accounting Review

Perceptions of accounting: a qualitative New Zealand study : Table of Contents

Sue Malthus, Carolyn Fowler — Sun May 10 14:15:05 BST 2009

Abstract:
Purpose – The purpose of this paper is to ascertain the perceptions of New Zealand high school and tertiary students regarding accounting and accountants, as well as the perceptions of high school accounting educators and career advisers who potentially influence these students. Design/methodology/approach – The methodology used here is qualitative, including semi-structured interviews and focus groups. Findings – The paper finds that the majority of the high school students and first-year tertiary students have little understanding of the tasks accountants perform, and their image of an accountant was the typical “boring” stereotype. However, the final year tertiary students have a good understanding of what accounting entails and do not have a negative image of an accountant. The high school accounting educators have a favourable view of accounting and are positive about a career in accounting, in contrast with the career advisers who view an accounting career as dull and boring or a backstop to other more exciting careers. Practical implications – Recently, there has been a decline in the number of New Zealand accounting graduates, which may in part be caused by negative stereotyping and limited accurate knowledge about accountants. The challenge for the local professional accounting body is to attempt to change this stereotype and find new ways of promoting accounting careers to the current generation of New Zealand high school and tertiary students. Originality/value – The paper integrates the study of students' perceptions of accounting in New Zealand with that of the high school accounting educators and career advisers to provide a comprehensive qualitative study of the current New Zealand situation.

The moral awareness of future accounting and business professionals: The implications of a gender divide : Table of Contents

Elizabeth Gammie, Bob Gammie — Sun May 10 14:15:05 BST 2009

Abstract:
Purpose – The purpose of this paper is to examine the moral awareness and ethical virtue of current university students with a view to identifying whether there are any gender differences. Design/methodology/approach – The study analysed undergraduate responses from final year honours student cohorts, one from a degree in accounting and finance (n=51), the other from a programme in business studies (n=79), to a series of value statements and a number of academic and business-related scenarios. The study employed a Kantian approach to ethics. Findings – Accounting students who had been exposed to ethical educational interventions do not display a higher level of moral awareness or ethical intention than their business counterparts. Whilst gender differences were apparent, this was only evident for moral awareness not ethical virtue and only the case for business students, thus suggesting that gender id may have more explanatory power than biological gender. Research limitations/implications – The sample size was small as the study was restricted to relevant class populations and hence may not be generalisable. In addition, a gap may exist between what students state they would do in a situation and their actual behaviour. Practical implications – Further work is required which concentrates on gender id rather than biological gender and examines why feminine moral awareness would appear to be higher than the masculine but converges for ethical intention. Originality/value – The study presents a comparative analysis of two different student cohorts which enables a more detailed investigation of gender differences, initially for moral awareness and then ethical virtue.

Testing for asymmetric effects in the accrual anomaly using piecewise linear regressions: Australian evidence : Table of Contents

Kristen Anderson, Kerrie Woodhouse, Alan Ramsay, Robert Faff — Sun May 10 14:15:05 BST 2009

Abstract:
Purpose – The purpose of this paper is to test the persistence and pricing of earnings, free cash flows (FCF) and accruals using Australian data. In response to arguments concerning omitted variables in the Mishkin test, it seeks to explore asymmetric effects by incorporating categoric variables capturing firm size (microcap, small, medium and large); industry (industrial/mining); profit making (profit/loss); and dividend paying (contemporaneous dividend/no contemporaneous dividend) into forecasting and pricing equations. Design/methodology/approach – The paper examines a large sample of hand-checked Australian earnings, accruals and cash flow data. It analyses these data using a series of piecewise linear regressions. Findings – The results indicate that asymmetry is a valid concern since the extent and nature of mispricing of earnings components vary considerably across the categories included in the model. For example, the base case firms (microcap, loss-making, resource companies that pay no contemporaneous dividends) exhibit no evidence of significant differences between the actual and implied persistence of FCF and accruals. Conversely, for industrial firms, the implied persistence of FCF and accruals from the pricing equation significantly underestimates the persistence of both earnings components as shown in the forecasting equation. Originality/value – The study extends the research investigating the accruals anomaly by accommodating different factors that might induce asymmetric effects. Based on the evidence, such effects represent an important consideration for work conducted in this and related accounting research areas.