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1 – 10 of 67David John Gilchrist, Dane Etheridge and Zhangxin (Frank) Liu
The purpose of this study is to investigate the prevalence of earnings management in the Australian not-for-profit (NFP) disability service providers sector, as well as to…
Abstract
Purpose
The purpose of this study is to investigate the prevalence of earnings management in the Australian not-for-profit (NFP) disability service providers sector, as well as to understand the motivations for and implications of such practices. This research is important for stakeholders, such as members and funders, as well as the broader Australian community, considering the significant financial resources allocated to these organizations from the public purse.
Design/methodology/approach
The authors employ a longitudinal dataset containing financial data from 154 Australian NFP disability service providers, collected over a two-year period (2015–2016). Through the analysis of detailed balance sheets and income statements, the authors seek to uncover evidence of earnings management practices in this sector. The study’s results provide valuable insights into the behaviour of the charitable human services sector.
Findings
The findings reveal that Australian NFP disability service providers engage in earnings management practices, primarily aimed at reducing reported profits to meet the normative financial expectations of stakeholders, such as public sector funders and philanthropists. The executives of these organizations strive to report profits close to zero, being cautious not to report a loss, which might raise concerns about their sustainability.
Originality/value
The authors contribute to the existing literature on earnings management in the NFP sector by focussing on Australian disability service providers, an area that has been under-researched due to a lack of suitable data. The results offer insights into the incentives and implications of earnings management practices in this sector and highlight the need for a revaluation of accounting standards, reporting requirements and audit arrangements applicable to the NFP sector.
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Martin Kelly and Patricia Larres
Following recent high-profile audit failures, concern has been expressed that auditors are not demonstrating sufficient skepticism when exercising professional judgment. In…
Abstract
Purpose
Following recent high-profile audit failures, concern has been expressed that auditors are not demonstrating sufficient skepticism when exercising professional judgment. In particular, client assumptions and estimations relating to hypothetical valuations in financial reporting are not being challenged. This paper seeks to address the issue by advancing a decision-making framework aimed at guiding auditors beyond regulatory reductionist thinking towards an enhanced understanding of the cognitive processes which shape professional judgment in forming a reliable audit opinion.
Design/methodology/approach
Drawing on the normative philosophical and theological teachings of Bernard Lonergan, the authors' decision-making framework embodies reflective thinking and the data of consciousness to highlight the central role played by enquiry in the dynamics of understanding, judgment and decision-making. Such enquiry elicits challenge of the management bias inherent in hypothetical valuations.
Findings
Auditing through a Lonerganian lens allows auditors to reflect on their approach to objective decision-making by offering a set of cognitive tools to enhance the enquiry essential for nurturing professional skepticism.
Originality/value
This paper contributes to the literature by developing the somewhat neglected discourse on the cognitive processes essential for professional skepticism and audit judgment. The authors demonstrate how Lonerganian self-appropriation intensifies an awareness of the recursive cognitive activities pertinent to objective judgment and decision-making. This awakened consciousness has the potential not only to change how auditors question evidence to make informed judgments and decisions, but also to normalize the practice of challenge.
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Darshan Pandya, Gopal Kumar and Shalabh Singh
It is crucial for the Indian micro, small and medium enterprises (MSMEs) to implement a few of the most important Industry 4.0 (I4.0) technologies and reap maximum benefits of…
Abstract
Purpose
It is crucial for the Indian micro, small and medium enterprises (MSMEs) to implement a few of the most important Industry 4.0 (I4.0) technologies and reap maximum benefits of sustainability. This paper aims to prioritize I4.0 technologies that can help achieve the sustainable operations and sustainable industrial marketing performance of Indian manufacturing MSMEs.
Design/methodology/approach
I4.0-based sustainability model was developed. The model was analyzed using data collected from MSMEs by deploying analytic hierarchy process and utility-function-based goal programming. To have a better understanding, interviews were conducted.
Findings
Predictive analytics, machine learning and real-time computing were found to be the most important I4.0 technologies for sustainable performance. Sensitivity analysis further confirmed the robustness of the results. Business-to-business sustainable marketing is prioritized as per the sustainability need of operations of industrial MSME buyers.
Originality/value
This study uniquely integrates literature and practitioners’ insights to explore I4.0’s role in MSMEs sustainability in emerging economies. It fills a research gap by aligning sustainability goals of industrial buyers with suppliers’ marketing strategies. Additionally, it offers practical recommendations for implementing technologies in MSMEs, contributing to both academia and industry practices.
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Ane Haugdal, Frode Kjærland, Levi Gårseth-Nesbakk and Are Oust
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian…
Abstract
Purpose
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian authorities provides the opportunity for an empirical study.
Design/methodology/approach
The authors adopt a two-stage strategy to investigate the existence of earnings management, using the Jones (1991) and modified Jones (Dechow et al., 1995) models to construct a random-effects model.
Findings
The authors test the hypothesis that, given decentralisation of control, there will be an increase in opportunistic financial reporting. This study's findings suggest that this is not the case, thereby indicating that a soft control regime does not diminish discipline in municipalities.
Practical implications
This study has practical implications for policymaking in the public sector. Its findings suggest that municipalities do not engage in more earnings management under a soft regulatory regime. Hence, other authorities should consider adopting a soft regulatory approach to controlling local governments and their financial reporting systems.
Originality/value
This study contributes to a growing body of literature regarding earnings management by local governments. The authors investigate a hypothesis previously untested in the literature by comparing the degree of earnings management under different regulatory control regimes.
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Tai-Yi Yu, Jeou-Shyan Horng, Chih-Hsing Liu, Sheng-Fang Chou, Ming-Tsung Lee, Yung-Chuan Huang and Maria Carmen B. Lapuz
This study attempts to fill the research gap by extending sustainability literature and providing empirical evidence that considers sustainability marketing commitment (SMC) as a…
Abstract
Purpose
This study attempts to fill the research gap by extending sustainability literature and providing empirical evidence that considers sustainability marketing commitment (SMC) as a fundamental attribute of effective marketing strategy that consequently improves tourism service quality, as represented by service attractiveness.
Design/methodology/approach
In the current study, data was collected from 313 tourism and hospitality firms. To test the model, this study applied structural equation modeling (SEM) to investigate the relationships among environmental strategy, SMC, supplier trust and service attractiveness in a mediation-moderation setting.
Findings
The results indicate that the multiple mediation effects of environmental strategy may indirectly influence tourist attractiveness through SMC and tourism services. The two-way moderating effects reveal that supplier trust and socialization strengthen the service attractiveness development process, while three-way interaction discovered that socialization and supplier trust positively moderate the relationships between tourism services and service attractiveness.
Originality/value
Sustainable strategy is a future trend for tourism business management; however, unknown to most is the role of marketing and environmental strategy in tourism business due to lack of integration with concepts in marketing strategy, with the multidimensionality of tourism services, and with the function of trust and socialization, critically undermining analyses of service attractiveness. This paper combines corporate sustainability and sustainability marketing methods to explore how an environmental strategy can improve tourism services and enhance a destination's attractiveness based on a mediation-moderation mechanism.
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Since the 1980s, governments worldwide have been implementing the move from cash to accrual accounting. Scholars initially considered the appropriateness of this accounting reform…
Abstract
Purpose
Since the 1980s, governments worldwide have been implementing the move from cash to accrual accounting. Scholars initially considered the appropriateness of this accounting reform to be self-evident, but later they have expressed critical views. This paper systematises the existing literature intending to reflect on the adverse effects of adopting accrual accounting in the public sector and identify implications for future research.
Design/methodology/approach
The present study builds on a systematic literature review of 106 academic articles published between 1980 and 2021. It is based on the “preferred reporting items for systematic reviews and meta-analyses” (PRISMA) method. Synthesising research through a transparent, rigorous and replicable process makes it possible to identify and discuss the adverse effects of adopting public sector accrual accounting.
Findings
Significant issues are linked to organisational impacts and accountability. Resistance to change is the main negative consequence and is more likely in countries that have chosen to adopt accrual accounting without maintaining cash accounting. The new accounting rules make accounting information more complex and arbitrary for citizens and politicians. How these criticalities should be addressed deserves further investigation.
Originality/value
This paper offers a comprehensive literature review on the drawbacks of adopting accrual accounting in the public sector. It could provide a general lesson to be applied to policymakers of other jurisdictions currently considering this transition to prevent the adverse effects and act proactively.
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Viola Deutscher and Anke Braunstein
This study aims to support researchers and practitioners in finding suitable instruments for future research studies and organizational quality assessments.
Abstract
Purpose
This study aims to support researchers and practitioners in finding suitable instruments for future research studies and organizational quality assessments.
Design/methodology/approach
Employees’ success of learning at work is strongly influenced by the quality of the workplace learning environment. In the recent decades growing effort has been given to the development of surveys to measure the quality of workplace learning, resulting in a large number of available survey instruments. This study conceptually draws on a 3-P model and uses a qualitative metasynthesis to collect and categorize n = 94 surveys that intend to measure the quality of workplace learning (WPL).
Findings
The results underline that research on WPL environments is a highly interdisciplinary endeavor, where every discipline enriches the field by a new perspective and own foci. Overall, this study finds a focus on learning culture and working conditions, on social and functional inclusion of the learner and on support and feedback during training. Products of WPL such as professional competences or career aspirations play a minor role.
Originality/value
With the integration of quality measurement instruments from various research studies, this study produces an interactive online instrument map that gives a broad, yet organized overview of available quality measures in the WPL field.
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Renu L. Rajani, Githa S. Heggde, Rupesh Kumar and Deepak Bangwal
The purpose of this paper is to empirically examine the impact of supply chain risks (SCRs) and demand management strategies (DMSs) on the company performance in order to study…
Abstract
Purpose
The purpose of this paper is to empirically examine the impact of supply chain risks (SCRs) and demand management strategies (DMSs) on the company performance in order to study the use of DMSs in delivering improved results even in the presence of SCRs. The SCRs considered under the study are as follows: demand variability, constrained capacity and quality of services delivery, and competitive performance, customer satisfaction and financial performance are the measures considered for company performance.
Design/methodology/approach
This study is based on a survey of 439 businesses in India representing 10 groups of services industries (information technology/IT enabled services, business process outsourcing, IT infrastructure, logistics/transportation, healthcare, hospitality, personal services, consulting, education and training, consumer products and retail), using structural equation modeling (SEM) methods.
Findings
The findings reveal that presence of demand variability risk has significant influence upon the use of demand planning and forecasting, controlling customer arrival during peaks and shifting demand to future. Mismatch of capacity against demand (unused capacity) leads to the use of techniques to influence business during lean periods, thereby resulting in enhanced supply chain (SC) and financial performance. Controlling customer arrival during peaks to shift the demand to lean periods leads to enhanced financial performance. Presence of delivery quality risk does not significantly influence the use of DMS. Also, short-term use of customer and business handling techniques does not exert significant influence on company performance.
Research limitations/implications
The study has limitations as follows: (1) respondents are primarily from India while representing global organizations, (2) process/service redesign to relieve capacity as a DMS is not considered and (3) discussion on capacity management strategies (CMSs) is also excluded.
Practical implications
SC managers can be resourceful in shifting the peak demand to future with the application of techniques to control customer arrival during peaks. The managers can also help enhance business by influencing business through offers, incentives and promotions during lean periods to use available capacity and improve company performance.
Originality/value
This study is one of the first empirical works to explore how presence of SCRs influences the use of DMS and impacts the three types of company performance. The study expands current research on demand management options (DMOs) by linking three dimensions of company performance based on the data collected from ten different groups of service industry.
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Tahira Javed, Ali B. Mahmoud, Jun Yang and Zhao Xu
This study aims to investigate the ecological awareness of Chinese consumers towards fast fashion and examine the effect of social sustainability claims on green brand image and…
Abstract
Purpose
This study aims to investigate the ecological awareness of Chinese consumers towards fast fashion and examine the effect of social sustainability claims on green brand image and purchase intentions in China, considering China’s unique environmental policy landscape and its significant role in the global fast fashion industry. The study explores the role of altruistic values in promoting sustainability within the well-known fast fashion brand “H” and how they shape brand image, consumer satisfaction and brand equity.
Design/methodology/approach
The study collected data from 257 Chinese participants and used a serial mediation model through the PROCESS macro in SPSS to analyse the correlation between green brand image, created through sustainability claims and consumer purchase intentions. The model also assessed the intermediary effects of brand image, satisfaction and equity.
Findings
The findings of the research indicate a direct and positive relationship between green brand image and consumer purchase intentions, emphasising the need for clothing and textile industry marketers to strategically promote altruistic values in their sustainability efforts and highlighting the importance of ecological awareness in shaping consumer behaviour in the Chinese context. This approach enhances green satisfaction and green brand equity and ultimately leads to higher green purchase intentions.
Originality/value
This study provides significant insights into the effectiveness of incorporating social sustainability claims in advertising to improve a brand’s green image and influence consumer behaviour. It emphasises the importance of altruistic values in sustainability strategies, offering valuable guidelines for marketers in enhancing green satisfaction and brand equity, thereby boosting consumer purchase intentions in the context of green branding and sustainability advertising. Focussing specifically on the Chinese market, this research sheds light on the impact of ecological awareness among Chinese consumers within the fast-fashion industry. Given China’s substantial role in shaping global fast-fashion production and its evolving environmental policies, this focus adds significant depth to our understanding of sustainability claims’ influence within this crucial consumer base.
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Ana M. Arboleda and Acosta Pilar
This paper evaluates consumers' responses to claims regarding fruit sustainability. The authors compared the effects of this factor on consumers' moral satisfaction and purchase…
Abstract
Purpose
This paper evaluates consumers' responses to claims regarding fruit sustainability. The authors compared the effects of this factor on consumers' moral satisfaction and purchase intention with respect to 12 sustainability claims.
Design/methodology/approach
A mixed-model experiment was conducted with seven fruits (i.e. guava, pineapple, red apple, green apple, red grape, green grape and avocado) to evaluate the effects of the 12 sustainability claims on purchase intention through moral satisfaction, relative to a control condition.
Findings
The results show that claims of supporting local farmers are those that move consumers the most. Claims regarding local farmers' production positively affect moral satisfaction and purchase intention.
Practical implications
This paper takes a consumer behavior approach to sustainability, enabling organizations to consider consumer behavior outcomes that could affect their strategic investments and commitment to social responsibility.
Originality/value
Food-related studies have not produced consistent results with respect to the relevance that sustainability claims have for consumers. This study differs from previous studies, as it focuses on fruit, a product that is important for social and environmental sustainability issues. This study demonstrates that, in the case of fruit, sustainability arguments are meaningful to young consumers through the mediating effect of moral satisfaction. Thus, the effect of claims is predicted by the meaning these arguments have for the consumer.
Propósito
Este artículo evalúa las respuestas de los consumidores a los argumentos de sostenibilidad en una fruta. Se comparan los efectos de este factor en la satisfacción moral y la intención de compra de los consumidores con respecto a 12 argumentos de sostenibilidad.
Diseño/metodología/enfoque
Se realizó un experimento de modelo mixto con siete frutas (guayaba, piña, manzana roja, manzana verde, uva roja, uva verde y aguacate) para evaluar los efectos de los 12 argumentos de sostenibilidad sobre la intención de compra a través de la satisfacción moral, en relación con una condición de control.
Hallazgos
Los resultados muestran que las afirmaciones de apoyo a los agricultores locales son las que más influyen en los consumidores. Las afirmaciones relativas a la producción de los agricultores locales afectan positivamente a la satisfacción moral y a la intención de compra.
Implicaciones prácticas
Este trabajo adopta un enfoque de la sostenibilidad basado en el comportamiento del consumidor, lo que permite a las organizaciones considerar los resultados del comportamiento del consumidor que podrían afectar a sus inversiones estratégicas y a su compromiso con la responsabilidad social.
Originalidad
Los estudios relacionados con la alimentación no han arrojado resultados consistentes respecto a la relevancia que los argumentos de sostenibilidad tienen para los consumidores. Este estudio difiere de los anteriores, ya que se centra en la fruta, un producto importante por cuestiones de sostenibilidad social y medioambiental. Este estudio demuestra que, en el caso de la fruta, los argumentos de sostenibilidad son significativas para los consumidores jóvenes a través del efecto mediador de la satisfacción moral. Así, el efecto de los argumentos se predice por el significado que estos tienen para el consumidor.
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