Emerald | Journal of Applied Accounting Research | Table of Contents

Exploring the discharge of e-countability by charities

literatinetwork@emeraldinsight.com (Ciaran Connolly, Alpa Dhanani) — Thu, 25 Apr 2013 00:00:00 +0100

Abstract

Purpose - This research explores the use of the internet, a mechanism that provides the opportunity to reach vast audiences efficiently and cost effectively, by United Kingdom (UK) charities to discharge accountability.Design/methodology/approach - This research combines a content analysis of the websites of large UK charities and semi-structured interviews with key charity personnel responsible for the formulation and dissemination of information to stakeholders.Findings - The results indicate that, in most cases, charity websites, as accountability mechanisms, appear to play a wide role, being directed at both upward and downward stakeholders. However, while the websites are usually professionally created with appropriate website presentation and page design, the discharge of fiduciary accountability via the internet is not universal. Research limitations/implications - This research focuses on large UK charities. This, together with the nature of the items captured by the content analysis checklist and the semi-structured interviews, inevitably affects its generalisability.Practical implications - Accepting that charities have a duty to account to their stakeholders, and that the input of accounting practitioners is vital in this process, this research extends our understanding of how the internet is employed by charities to fulfil this duty.Originality/value - The charity sector has grown extensively in size and prominence in recent years and policymakers have come to embrace the role that charities play in societal development. This paper provides a crucial insight into the discharge of accountability by charities through the internet.

Determinants and Value relevance of Corporate Disclosure: Evidence from the Emerging Capital Market of Ghana

literatinetwork@emeraldinsight.com (Godfred Alufar Bokpin) — Tue, 30 Oct 2012 00:00:00 +0000

Abstract

Purpose - The paper documents the value relevance and determinants of corporate disclosure and transparency on the Ghana Stock exchange.Design/methodology/approach - The paper employs the Fama and French (1998) valuation regression by relating firm value to firm level characteristics whilst using a sample of 27 firms on the Ghana Stock Exchange (GSE) over a 6-year period (2003-2008).Findings - We found positive though statistically insignificant relationship between corporate disclosure and firm value represented by market to book value ratio and negative for stock price. Consistent with the political cost, signalling, agency and economic theories of corporate disclosure, we found firm size, financial leverage, audit quality, age and profitability to be significant firm level characteristics determining corporate disclosure in Ghana. Though, the adoption of IFRS is significant, it has marginally improved disclosure, perhaps it is observed more in breach than in compliance and practical steps must be taken to improve disclosure practices on the GSE.Originality/value - The main value of the paper lies in providing further evidence on the value relevance and determinants of corporate disclosure using emerging market data.

Innovating cost accounting practices in rail transport companies

Tue, 30 Oct 2012 00:00:00 +0000

Abstract

Purpose - The main aim of the study is to present and discuss an accounting innovation in the cost measurement system of rail transport companies. Design/methodology/approach - We identify the main distinctive features that cost accounting systems should have in order to capture the particular structure of the production process of these companies. We therefore develop an innovative accounting practice to take into account the specific features of railway services—in particular, the presence of high fixed costs associated with the infrastructures, a characteristic that is common to other companies operating in a network system (e.g., utilities companies). This specific accounting practice has been applied to Trentino Trasporti, a medium-sized, privately owned passenger railway company operating in the Trentino Alto Adige region, Italy. Findings - Evidence suggests that the new accounting practice allows the operational connection between the company’s resources and their consumption during the provision of transport services. Practical implications - Such connection enables the identification of new opportunities for improvement and for cost optimisation thanks to the possibility of finding the real origins of cost consumption in the rail transport provision. Originality/value - The case study analysed highlights that the ABC system, despite its effectiveness, is not able to fully satisfy the information needs of rail companies. Thus, we propose the adoption of a new practice that takes into consideration the specific features of railway services—in particular, the high fixed costs associated with the infrastructures, a characteristic that is common to other companies operating in a network system (e.g., utilities companies). We believe that the cost accounting system proposed can support the rail transport companies in managing the requirements of the liberalisation process.

Reaping the benefits of two worlds: An exploratory study of the cash and the accrual accounting information roles in local governments

Tue, 30 Oct 2012 00:00:00 +0000

Abstract

Purpose - The current research study explores the coexistence of cash accounting and accrual accounting systems through an investigation of the roles they fulfill in Greek municipalities.Design/methodology/approach - Our survey results are based on the answers of the financial department principals of 106 municipalities to a structured questionnaire. The roles of accounting investigated are informed by Ansari and Euske’s (1987) model.Findings - It appears that cash accounting information prevails in the major function of decision making with accrual accounting information playing a secondary role. Larger municipalities seem to use accounting data more extensively than smaller ones for negotiations both in accrual and cash terms.Originality/value - Our study sheds light on the actual use of accrual accounting information in a public sector setting where customarily decisions were based on cash accounting considerations.

Human Capital Disclosures in Developing Countries: Figureheads and Value Creators

Tue, 30 Oct 2012 00:00:00 +0000

Abstract

Purpose - Purpose To explore if any disparity exists between human capital information desired by financial analysts and fund managers and actual disclosure of such information in company annual reports in the context of developing countries.Design/methodology/approach - Methodology Financial analysts and fund managers were interviewed to obtain opinions on the importance attributed to human capital information and whether their desired information is disclosed in the annual reports. Content analysis was then used to assess the extent and nature of human capital information actually provided in the annual reports of 100 listed companies in Malaysia.Findings - Findings Interviewees seek information on company management and key corporate decision makers who could provide a firm with competitive advantage. However, the human capital information provided is limited, and tends to focus on directors, many of whom may be figureheads with little impact on the way companies are run and in creating value for the firm. Accordingly, analysts rely on alternative sources to get their desired information – a costly process for private shareholders.Originality/value - Value The paper contributes to the literature on the demand for, and disclosure of, human capital information in the context of developing countries. It identifies the inadequacy of current human capital disclosure practices in company annual reports. We theorise that in developing countries, resource dependence, legitimacy-seeking and ‘culture’ causes companies to pay relatively more attention to figureheads than value creators..