Public universities and impacts of COVID-19 in Australia: risk disclosures and organisational change

Abstract

Purpose

The purpose of this study is to examine the COVID-19 pandemic risk disclosures in a sample of annual reports of Australian public universities. These universities rely heavily on fee-paying onshore overseas students. Analysing these risk disclosures is essential to understanding the COVID-19 crisis and the implications for organisational change.

Design/methodology/approach

Document analysis and content analysis of the 2019 annual reports of all Victorian public universities were undertaken to identify the disclosure of COVID-19 risk impacts. Applying Laughlin's Habermasian insights of change, the study explores the pathways of change adopted by universities to overcome the risk impacts. However, financial risk disclosures about income from this source were virtually non-existent.

Findings

Any risk associated with COVID-19 disclosed was minimal in a qualitative, neutral and constant format. The quality of disclosures was low. Media statements, however, pointed to significant income loss and suggested a strategy of substantial cost-cutting, including employee redundancies, which we identified as morphostatic changes of universities to overcome the risk impacts.

Research limitations/implications

The study reveals the risk associated with sector's aggressive growth strategy, jeopardising their financial viability and quality of teaching and research.

Practical implications

The findings provide insights to the Australian higher education sector. The low quality of external risk disclosures of these universities suggests an urgent need for transformation.

Originality/value

Australian public universities play a crucial role in society. This role will be diminished by a failure to disclose and manage significant risks adequately.

Citation

Carnegie, G.D., Guthrie, J. and Martin-Sardesai, A. (2022), "Public universities and impacts of COVID-19 in Australia: risk disclosures and organisational change", Accounting, Auditing & Accountability Journal, Vol. 35 No. 1, pp. 61-73. https://doi.org/10.1108/AAAJ-09-2020-4906