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11 – 20 of 102Malek Alsharairi, Robert Dixon and Radhi Al-Hamadeen
The purpose of this paper is to re-examine the motivation to manage earnings in US mergers and acquisitions (M&As) by investigating whether the enactment of Sarbanes-Oxley act…
Abstract
Purpose
The purpose of this paper is to re-examine the motivation to manage earnings in US mergers and acquisitions (M&As) by investigating whether the enactment of Sarbanes-Oxley act (SOX) has affected pre-merger earnings management.
Design/methodology/approach
The authors used a sample of over 700 completed M&As of US public firms during 1999-2008. Using quarterly reports, they tracked down earnings management during the four quarters preceding the deal and consequently drew inferences about the implications of SOX on interim reporting practices.
Findings
We report evidence that in the post-SOX era, non-cash acquirers begin pre-merger upwards earnings management in an earlier quarter than in the pre-SOX era. Further, our evidence indicates that in the quarters prior to the takeover, targets engage in more aggressive upwards earnings management in the post-SOX era.
Originality/value
Unlike what is anticipated regarding earnings management practices after SOX, the study reveals significant evidence of upward earnings management by firms engaging in M&A in post-SOX era.
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Vincent K. Chong, Michele K. C. Leong and David R. Woodliff
This paper uses a laboratory experiment to examine the effect of accountability pressure as a monitoring control tool to mitigate subordinates' propensity to create budgetary…
Abstract
This paper uses a laboratory experiment to examine the effect of accountability pressure as a monitoring control tool to mitigate subordinates' propensity to create budgetary slack. The results suggest that budgetary slack is (lowest) highest when accountability pressure is (present) absent under a private information situation. The results further reveal that accountability pressure is positively associated with subordinates' perceived levels of honesty, which in turn is negatively associated with budgetary slack creation. The findings of this paper have important theoretical and practical implications for budgetary control systems design.
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Charles H. Cho and Dennis M. Patten
This investigation/report/reflection was motivated largely by the occasion of the first Centre for Social and Environmental Accounting Research (CSEAR) “Summer School” in North…
Abstract
This investigation/report/reflection was motivated largely by the occasion of the first Centre for Social and Environmental Accounting Research (CSEAR) “Summer School” in North America.1 But its roots reach down as well to other recent reflection/investigation pieces, in particular, Mathews (1997), Gray (2002, 2006), and Deegan and Soltys (2007). The last of these authors note (p. 82) that CSEAR Summer Schools were initiated in Australasia, at least partly as a means to spur interest and activity in social and environmental accounting (SEA) research. So, too, was the first North American CSEAR Summer School.2 We believe, therefore, that it is worthwhile to attempt in some way to identify where SEA currently stands as a field of interest within the broader academic accounting domain in Canada and the United States.3 As well, however, we believe this is a meaningful time for integrating our views on the future of our chosen academic sub-discipline with those of Gray (2002), Deegan and Soltys (2007), and others. Thus, as the title suggests, we seek to identify (1) who the SEA researchers in North America are; (2) the degree to which North American–based accounting research journals publish SEA-related research; and (3) where we, the SEA sub-discipline within North America, might be headed. We begin with the who.
Kristie M. Young, William W. Stammerjohan, Rebecca J. Bennett and Andrea R. Drake
Psychological contracts represent unofficial or informal expectations that an individual holds, most commonly applied to an employer–employee relationship. Understanding…
Abstract
Psychological contracts represent unofficial or informal expectations that an individual holds, most commonly applied to an employer–employee relationship. Understanding psychological contracts helps explain the consequences of unmet expectations, including increased budgetary slack and reduced audit quality. This chapter reviews and synthesizes accounting behavioral research that discusses psychological contracts and that was published in academic and practitioner journals in the areas of financial accounting, management accounting, auditing, taxes, non-profit organizations, accounting education, and the accounting profession itself. Despite the prevalence of psychological contracts in the workplace and the applicability to behavioral research, accounting literature remains limited regarding applications of psychological contracts. This chapter aggregates research across all areas of accounting to provide suggestions for use of psychological contracts in future research and thus create a connected research stream.
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While Dalton and Radtke (2013) examine the effects of Machiavellianism and an organization's ethical environment within a low moral intensity setting, I examine the effects of…
Abstract
While Dalton and Radtke (2013) examine the effects of Machiavellianism and an organization's ethical environment within a low moral intensity setting, I examine the effects of Machiavellianism and an organization's ethical environment across both low and high moral intensity settings. Using a sample of 192 MTurk workers (i.e., online labor pool participants from Amazon's Mechanical Turk) and 127 undergraduate accounting students, the results using the full-sample of participants indicate the following: (1) Machiavellianism is negatively associated with whistle-blowing intentions across both low and high moral intensity scenarios; (2) an organization's ethical environment is positively associated with whistle-blowing intentions across both low and high moral intensity scenarios; and (3) in the low moral intensity scenario (but not the high moral intensity scenario), I find an interaction between Machiavellianism and the strength of the ethical environment. Implications for research and practice are discussed.
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