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1 – 10 of over 21000The purpose of this exploratory research is to identify key motivations, administrative costs, and instrumental benefits of translating data-rich budgets into user-friendly…
Abstract
The purpose of this exploratory research is to identify key motivations, administrative costs, and instrumental benefits of translating data-rich budgets into user-friendly reports for citizens. This research draws from interviews with chief financial officers in local governments that are recognized by the Government Finance Officers Association for preparing additional financial reports that appeal to a citizen-based audience. Candid discussions and thoughtful reflections of respondents demonstrate that chief financial officers play a leading role in determining the style and extent to which financial information is communicated to external audiences. The research suggests that adopting this form of financial reporting, however, does not necessarily have an impact on citizen participation in the budget process. Recommendations from the point of view of the research participant are presented for practitioners interested in implementing citizen-based financial reporting. The research concludes with a discussion of the state of practice of citizen-based financial reporting of the research sample and areas for future study.
Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange…
Abstract
Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange for Auto Parts procurement by GM, Ford, Daimler‐Chrysler and Renault‐Nissan. Provides many case studies with regards to the adoption of technology and describes seven chief technology officer characteristics. Discusses common errors when companies invest in technology and considers the probabilities of success. Provides 175 questions and answers to reinforce the concepts introduced. States that this substantial journal is aimed primarily at the present and potential chief technology officer to assist their survival and success in national and international markets.
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Mitali Panchal Arora, Sumit Lodhia and Gerard Stone
With the increasing adoption of integrated reporting and the subsequent interest of the accounting discipline in its development, this paper aims to examine the enablers and…
Abstract
Purpose
With the increasing adoption of integrated reporting and the subsequent interest of the accounting discipline in its development, this paper aims to examine the enablers and barriers to the involvement of accountants in integrated reporting.
Design/methodology/approach
The paper adopts a case study approach by collecting interview data from six organisations that have adopted integrated reporting internationally. In the selected organisations, face-to-face and telephone interviews were conducted with professionals who are involved in the preparation of an integrated report. The interviewees in this study included key integrated report preparers including accountants, corporate reporting managers, sustainability managers and other report preparers. Institutional entrepreneurship provided the theoretical insights for this study.
Findings
The study found that accountants’ expertise in corporate reporting and especially their knowledge of the assurance process was one of the major reasons why they were involved in integrated reporting. Accountants’ in-depth understanding of an organisation in addition to their general analytical and interpersonal skills were also found to be useful in preparing an integrated report. However, the voluntary nature of integrated reporting along with the lack of sufficient guidelines deterred accountants from being involved in integrated reporting. The study also found that accountants themselves did not see value in integrated reporting and found it challenging to convert numerical information to narratives, thus limiting their involvement in integrated reporting.
Research limitations/implications
Whilst prior studies have underlined accountants’ institutionalised practices, this study uncovers the strategies applied by accountants to maintain their institutionalised practices. The specific application of the institutional entrepreneurship concept identifies mechanisms and strategies through which accountants restrict their practices to narrow taken-for-granted roles.
Practical implications
This study uncovers practical implications by highlighting the factors that limit the involvement of accountants within integrated reporting. One of the major implications identified relates to the training of accountants to apply their existing skills and expertise in non-financial reporting to contribute effectively to multi-disciplinary teams that contribute towards integrated reporting in organisations. This study also provides an impetus for the International Integrated Reporting Council to provide more guidance for preparing an integrated report.
Originality/value
This is one of the initial studies that has explored the enablers and barriers to the involvement of accountants in integrated reporting through its focus on organisations that are already practising this form of reporting. The use of institutional entrepreneurship theory adds to the theoretical insights for exploring the involvement of the various actors in integrated reporting.
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Endah Tri Wahyuningtyas and Aisyaturrahmi Aisyaturrahmi
The purpose of this paper is to examine the association between accounting fraud and the gender of chief financial officers (CFOs).
Abstract
Purpose
The purpose of this paper is to examine the association between accounting fraud and the gender of chief financial officers (CFOs).
Design/methodology/approach
This study uses a sample of US-listed firms for the period from 2000 to 2010. This paper takes this distribution of the sample observations because firms sanctioned by the Securities and Exchange Commission as reported in Accounting and Auditing Enforcement Releases for fraud are more heavily weighted in the 2000 to 2010 period.
Findings
This study provides considerable evidence to suggest that firms with female CFOs are negatively associated with accounting fraud. The study also suggests that in state-owned enterprises, in which political concerns are likely to be more pronounced, the relationship between female CFOs and accounting fraud is negatively less significant. This study conducts an additional test about when and why boards’ diversity reduces accounting fraud or concerns. The result shows that the structure of gender-mixed boards is better than male-only boards. Therefore, it is important to control the activities or decisions of powerful chief executive officers.
Research limitations/implications
In general, the findings contribute to the current discussion on the necessity of increasing gender diversity as a corporate governance mechanism. This study is specifically focussed on CFOs that may directly have important implications for financial reporting and corporate governance.
Originality/value
This paper extends prior research by addressing the potential effects of female CFOs on accounting fraud. For example, Zhou et al. (2018) examine the relationship between executive compensation and the incidence of corporate fraud in Chinese listed companies from the perspective of delisting pressure. The result documents that there is no a relationship between CFO gender and accounting fraud. The results, however, find that female CFOs are negatively associated with accounting fraud; meaning that the presence of female CFOs brings positive implications for financial reporting and corporate governance.
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Manoj Chatpibal, Wornchanok Chaiyasoonthorn and Singha Chaveesuk
This study aims to develop a conceptual framework for the role of chief financial officer (CFO) in an ever-changing environment. As previous research focused on responding to…
Abstract
Purpose
This study aims to develop a conceptual framework for the role of chief financial officer (CFO) in an ever-changing environment. As previous research focused on responding to specific crises, there have been theoretical and practical gaps in the role of CFO. The study's goal is to fill a critical gap by developing a comprehensive and integrated set of roles to assist the CFO in a constantly changing environment.
Design/methodology/approach
Using a grounded theory approach, semi-structured interviews and observations were conducted with 21 CFOs from various industries in Thailand, including foreign multinational corporations and domestic companies with international operations. CFOs were asked how they frame their roles in the face of an ever-changing environment and how they prepare for the future.
Findings
The iCFO model is developed, which identifies the critical “core” roles of the CFO in securing the business foundation, as well as the “future opportunities” roles that function as growth engines for long-term business strength. The research delves into the importance of integrity, ethical mindset and corporate governance in the role of the CFO. The iCFO model is designed to help guide future research and provide practical applications for CFOs in both domestic and international contexts. The term “core” refers to the CFO’s primary responsibilities, which include driving profitability, managing risks and optimizing business performance. The “future opportunities” component focuses on the roles that CFOs can play in strengthening the future of business by optimizing investment efficiency, driving digital transformation and being the CEO’s business partner. The findings also emphasized “integrity,” which must encompass all decisions, actions or recommendations made by the CFO.
Originality/value
The study offers unique perspectives on an emerging economy, providing new insights. Through interviews with 21 CFOs, it contributes empirical evidence on the development of roles in accounting and finance, emphasizing good governance practices. The findings highlight the integrated role of the CFO and their self-reflection on their value within the company. Significantly, the study's implications are relevant and applicable to a global audience, particularly in developing economies that prioritize growth. Future studies could incorporate integrated thinking into the iCFO model to address social, environmental and economic factors, making it more universally relevant. Additionally, exploring the adoption of the chief value officer context in developing markets could enable CFOs to expand their focus beyond financial metrics, embracing a comprehensive approach to value creation. By integrating these concepts into the iCFO model, CFOs can effectively drive sustainable and impactful business outcomes on a global scale.
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This paper provides a review of literature on associated practices, challenges, and proposed solutions to bridging the relationship gap between training practitioners and chief…
Abstract
Purpose
This paper provides a review of literature on associated practices, challenges, and proposed solutions to bridging the relationship gap between training practitioners and chief financial officers (CFOs).
Design/methodology/approach
This is a descriptive research paper based on a multidisciplinary and critical review of existing literature discussing the relationship gaps between the training function and chief financial officers.
Findings
Available literature suggests a relationship gap exists between the training function and chief financial officers. As a result, both functions interpret the value of workplace training differently, leading to misalignment in their respective operations. The lack of relationship between the functions may result in defunding of the training function, which can adversely affect an organization’s financial performance. Although CFOs and training functions have the same goal of creating organizational value, an opportunity exists to create a stronger partnership between finance practitioners and training practitioners, leading to increased investment in training and ultimately improved organizational value.
Research limitations/implications
This article presents contextual research findings and may not fit all settings, but offers a comparative account of challenges associated with relationship challenges between the training function and CFOs. A paucity of research exists on the relationships between training and CFOs.
Practical implications
This paper has real and practical implications for learning and development, finance, and human resources practitioners. The findings seek to encourage training practitioners and CFOs to build stronger relationships and jointly define measurement and reporting practices. This research aims to provide an informed perspective on practices to help executives better understand the value of workplace training, leading to an increase of the investment in training, and ultimately changing the categorization of training spend from a cost to an investment.
Originality/value
This paper provides original insights and reviews newly published studies regarding relationships between the training function and chief financial officers, the development of workplace training valuation approaches, the associated challenges faced, and proposed solutions. This paper will be of value to human resources, learning and development, and finance, assisting practitioners in thinking differently about approaches to quantifying the value of workplace training.
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Frameworks on information systems‐sourcing (IS‐sourcing) decisions are frequently based on rational‐choice theory, neglecting such non‐quantifiable aspects as interpersonal…
Abstract
Purpose
Frameworks on information systems‐sourcing (IS‐sourcing) decisions are frequently based on rational‐choice theory, neglecting such non‐quantifiable aspects as interpersonal conflicts. The purpose of this paper is to find out whether such interpersonal conflicts have a determining influence on an organization's IS‐sourcing decision.
Design/methodology/approach
An illustrative case‐study strategy is applied.
Findings
The following interpersonal conflicts had a determining influence on an organization's IS‐sourcing decision: tensions between personnel in the IS department and those in the users' departments; lack of capabilities on a personal level; power in and between departments; and face‐saving in the corporate group. Based on these empirical findings, a generic model is developed to illustrate how interpersonal conflicts enmesh with economic, business, and technical factors, and influence IS‐sourcing decisions.
Research limitations/implications
The generic model enables researchers to study IS‐sourcing decisions better. It enriches previous research on IS‐sourcing decisions and alerts researchers that they need to cope with non‐quantifiable aspects that can have an impact on IS‐sourcing decisions.
Practical implications
Once managers understand how interpersonal conflicts can influence an organization's IS‐sourcing decision, they can assess their own organizations more accurately and estimate outcomes of particular IS‐sourcing decisions more realistically. Thus, this paper enables organizations to make better IS‐sourcing decisions, thereby – in the long run – helping them to use IS more effectively in their attempts to improve their business performances and competitive advantages.
Originality/value
This paper extends previous research on IS‐sourcing and fills a gap in traditional frameworks on IS‐sourcing decisions. It illustrates how various types of interpersonal conflicts enmesh with economic, business, and technical factors, and influence IS‐sourcing decisions.
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Petter Gottschalk, Geoff Dean and Rune Glomseth
The purpose of this paper is to report from an empirical study of white‐collar crime in business organizations and to create insights into perceptions of potential offenders.
Abstract
Purpose
The purpose of this paper is to report from an empirical study of white‐collar crime in business organizations and to create insights into perceptions of potential offenders.
Design/methodology/approach
A survey was conducted among chief financial officers in the largest business organizations in Norway.
Findings
The study identified financial misconduct by chief executives in the company as the crime associated with the most serious consequences for the company. A person in purchasing and procurement functions is assumed to be most vulnerable to and most likely involved in white‐collar crime.
Research limitations/implications
The survey focused on perceptions and threats rather than actual crime cases that might be included in future research.
Practical implications
Most vulnerable persons, including purchasing executives and chief executive officers, should never be left alone signing invoices and other expenditures on behalf of the firm.
Social implications
A four‐eye principle should be introduced in all business organizations in financial matters.
Originality/value
Chief financial officers' perceptions of vulnerability in top management create new insights into white‐collar crime.
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Audit negotiations are impacted by many factors. This study aims to investigate how two such factors, communication of the National Office Accounting Consultation Unit (ACU) and…
Abstract
Purpose
Audit negotiations are impacted by many factors. This study aims to investigate how two such factors, communication of the National Office Accounting Consultation Unit (ACU) and the auditor’s approach, affect chief financial officers’ (CFOs’) willingness to adjust the financial statements and satisfaction with the auditor.
Design/methodology/approach
This study uses a 2 × 3 between-subjects experimental design. Participants are 169 highly experienced CFOs and financial officers. The experimental design crosses the two multi-dimensional auditor approaches found in the literature with two influence tactics used to communicate ACU involvement, as well as a control condition, with no communication of the ACU involvement.
Findings
Communicating the ACU’s involvement as a higher authority (similar to a boss) results in greater willingness to record an adjustment to the financial statements when auditors use a hands-off “compliance-officer” auditor approach, but lower willingness by CFOs to adjust the financial statements when auditors use an expert-advisor auditor approach as compared to when coalition tactics are used. Results also show that communicating the ACU as a higher authority negatively impacts a CFO’s satisfaction with the audit partner. Overall, these results highlight the importance of the auditor’s approach and communication of ACU involvement within the auditor–client relationship. The outcomes of this study are limited to situations where unexpected audit adjustments are found during the year-end process and thus cannot be discussed pre-emptively with clients.
Research limitations/implications
This paper advances the understanding of how the multi-dimensional auditor’s approach can shape and limit the effectiveness of influence tactics. These factors are important, as auditors are tasked with maintaining not only quality audits but also client relationships. However, although rich in detail, factors other than auditor approach may have inadvertently been manipulated and are driving results.
Practical implications
The approach taken by the auditor with a client throughout the audit sets the stage during the auditor–client negotiations. Therefore, audit partners must consider their own approach with the client before communicating the ACU’s involvement as the auditor approach shapes and limits the tactics available for use. Using ill-suited tactics may undermine the client’s willingness to record an adjustment to the financial statements and cause undue harm to the auditor–client relationship.
Originality/value
This paper uses highly experienced CFOs and financial officers to examine how two common elements in the audit negotiation context can significantly affect the outcome to the financial statements and the relationship between the client and audit partner.
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Hsiao-Tang Hsu and Sarfraz Khan
The purpose of this paper is to investigate the roles of chief accounting officer (CAO) on the efficiency of auditing process and to empirically examine the association between…
Abstract
Purpose
The purpose of this paper is to investigate the roles of chief accounting officer (CAO) on the efficiency of auditing process and to empirically examine the association between separate CAO appointment and audit report lag (ARL).
Design/methodology/approach
This study employs firms listed in the US market from 2004 to 2012. The firm year having a CAO who does not simultaneously take other executive position is specifically identified. Firm years with job titles similar to CAO, such as chief accounting executive, vice president of accounting or corporate accounting executive, are categorized into the CAO group.
Findings
The presence of a separate CAO significantly reduces ARL. With the appointment of a new auditor, the presence of a separate CAO is associated with lower ARL, suggesting the moderating effect of separate CAOs on the relationship between auditor change and audit delay.
Practical implications
This study shows the importance of CAO, an executive who is specifically responsible for carrying out accounting functions. The findings suggesting the positive effects of separate CAO on external audit process and the timeliness of information should be of interest to firms, financial reporting users, auditors and regulators.
Originality/value
While few studies address CAO-related issues, the roles of a CAO are not widely explored and how a separate CAO affects external audit process remains an open question. This study fills this gap and further documents the contribution of separate CAO in external audit work to enrich literature in executive roles and audit efficiency at the same time.
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