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Do Cyber Security, Digitalisation And Data Visualisation Affect The Quality Of Internal Environmental Audits?, Komang Adi Kurniawan Saputra, Selmita Paranoan

Australasian Accounting, Business and Finance Journal

Introduction/Main Objectives: This research was conducted to provide empirical evidence regarding the analysis of the influence of cyber security, digitalisation, and data visualisation on the quality of internal environmental audits.

Background Problems: Some data finds that many hotel industries are still polluting and not managing waste properly according to applicable regulations. So, it is necessary to carry out an internal environmental audit as a reference material for making management decisions. Novelty: Researchers raised variables based on technological sophistication that were not previously considered in audit research. Another novelty is that the research was conducted in the context of service …

The Mediating Role Of Sustainable Value Creation In The Relationship Between Information Technology And Competitive Advantage, Ahmad Badawi, Wiwik Utami, Bambang Marsoem, Augustina Kurniasih

Australasian Accounting, Business and Finance Journal

This study aims to analyze and determine the magnitude of the influence of information technology capabilities, leadership commitment, competitive advantage and sustainable value creation. This study uses descriptive and causal-explanatory methods with a quantitative approach. The sampling method used is the probability sampling approach (the census). Data analysis used is the Structural Equation Modeling (SEM) approach using primary data. The results of the study state that IT Capability has a significant positive effect on Sustainability Value Creation (SVC) and Corporate Competitive Advantage (CCA). The Top Management Commitment variable positively and significantly affects Sustainability Value Creation but does not affect CCA. …

‘Self-Sustainability’ And ‘Performance’ In Microfinance – The Contextual Relevance Of The Terms, Ashfaq Khan

Australasian Accounting, Business and Finance Journal

The microfinance sector’s Paradigm Shift (PS) of the 1990s caused a drastic shift in how Microfinance Organizations (MFOs) ensured their long-term survival and sustainability. The PS required MFOs to adopt a commercial approach in all their operations and pursue profitability and self-sustainability rather than depending on the provision of subsidized funds. Resorting to Schatzki’s (2002) ‘site of the social’ theoretical construct and DiMaggio and Powell’s (1983) institutional theory, this empirical paper aims to evaluate the real performance of Pakistan’s microfinance sector, following the PS, in terms of its strict adherence to its founding objectives of eradicating poverty and serving the …

Board Effectiveness And Firm Risk: The Moderating Role Of Esg Performance, Rika Nurrizkiana, Desi Adhariani, Doddy Setiawan, Iman Harymawan

Australasian Accounting, Business and Finance Journal

of less risky financial policies. ESG (environmental, social, and governance) performance can strengthen the impact of board effectiveness on firm risk as companies are motivated to act in stakeholders’ interests. This research provides empirical evidence on these premises in the Southeast Asian context. This study used 380 observations from 76 non-financial companies in the Philippines, Malaysia, and Singapore for the 2015–2019 period. The data were analysed using the fixed-effects panel data method. The results show that the board effectiveness has a marginally significant effect in reducing company risk. In addition, when the effectiveness of the board interacts with ESG performance, …

Top Management Characteristics, Performance Measurement Systems Design And Strategic Change Of Reformed Public Hospitals In Indonesia, Made Aristia Prayudi, Nurkholis Nurkholis, Erwin Saraswati, Mohamad Khoiru Rusydi

Australasian Accounting, Business and Finance Journal

This study examined the impact of top management characteristics on strategic change in public hospitals in Indonesia, focusing on the mediating role of performance measurement system (PMS) design. Questionnaires were distributed to 157 top managers from Indonesian regional public hospitals undergoing reform. The findings indicate that younger, short-tenured top managers with business administration backgrounds are likelier to lead the strategic change, specifically the shift from a defender to a prospector strategy. Additionally, PMS design partially mediates the relationship between top managers' age, educational background, and strategic change. However, no significant mediation effect of PMS design was observed in the relationship …

The Effectiveness Of Internal Audit For Fraud Prevention, Miryam Pingkan Lonto, Eko Ganis Sukoharsono, Zaki Baridwan, Yeney Widya Prihatiningtias

Australasian Accounting, Business and Finance Journal

This study explores the measurement of the effectiveness of internal audits from the perception of internal auditors to prevent fraud. It examines the antecedents that affect the effectiveness of internal audits to prevent fraud. This study uses a mixed-method exploratory sequential design approach called instrument development design. This research's unit of analysis is the local government's internal auditor, namely the Financial and Development Supervisory Agency (BPKP), representing the Province of North Sulawesi, and the Inspectorate of the entire Province of North Sulawesi. The data collected were 165 questionnaires, and the analysis technique used PLS. The results of this study, audit …

Understanding The Association Between Constructive Nonconformity And Innovative Work Behavior: An Employee Perspective, Naval Lawande

Australasian Accounting, Business and Finance Journal

Purpose: Organizations have evolved to be entities that focus primarily on efficient systems and procedures. This approach was followed by devising techniques or methodologies for employees to conform to these systems or processes. The employee orientation has often been to conform to the status quo rather than to challenge it. Most of the managers believe that cohesion at workplace can be achieved through alignment of behaviors at the workplace. Contrary to this belief, Henry Mintzberg explains, that innovative organizations need to be flexible, reject bureaucracy and most importantly; avoid emphasis on control mechanisms. Hence, the perennial relationship between nonconformance and …

The Impact Of Corporate Esg Performance Disclosure Across Australian Industries, Amir Gholami, John Sands, Syed Shams

Australasian Accounting, Business and Finance Journal

The aims of this study are threefold. Firstly, it examines the long-term improvement in the corporate environmental, social and governance (ESG) performance. Secondly, it highlights the favourable financial implications of the higher corporate ESG performance disclosure. The third aim is to provide insight into the industrial impact on the relationship between corporate ESG performance disclosure and financial performance. This study uses a sample of all Australian publicly listed companies between 2007 and 2017 and conducts a panel regression analysis. It also performs several robustness checks to address the methodological, sample selection and endogeneity issues concerning corporate ESG performance disclosure. The …

Voluntary Disclosures Of Indian Microfinance Institutions, Arpita Sharma, Shailesh Rastogi

Australasian Accounting, Business and Finance Journal

The microfinance sector is growing at an astonishing rate in India. Reserve Bank of India, from time to time, comes up with a lot of directions to maintain transparency and governance in the microfinance sector. The current study focuses on the voluntary disclosure (VD) of the Non-Banking Financial Companies- Microfinance Institutions in India. The study constructs an unweighted index to measure the VD scores of the firms. The study also estimates the technical efficiency of the firms in meeting dual objectives of social and financial efficiency of the microfinance institutions. The empirical testing derived the association of the VD score …

Corporate Governance’S Role In The Risk-Return Paradox - New Evidence From Indian Firms, Ranjan Dasgupta

Australasian Accounting, Business and Finance Journal

Prior empirical research emphasises ‘troubled’ firm context and ‘quality management’ perspective as reasons for a ‘paradoxical’ or negative risk-return association for firms. But, to the best of our knowledge, no studies examine the role of individual corporate governance mechanisms in influencing such a ‘paradox’. Therefore, the study investigates this issue by classifying 675 sample Indian firms over the period 2000-2017 into high performing and low performing firms in line with the strategic reference point theory and the behavioural theory. To fulfil study objectives, it uses four different firm-return measures and estimate firm-level risk with standard deviations of each return measures …

Antecedents Of Firm’S Risk-Play – A Structural Equation Modeling Approach In An Emerging Market Context, Ranjan Dasgupta, Rashmi Singh

Australasian Accounting, Business and Finance Journal

Firm-risk and managerial risk-taking though distinct are used interchangeably in empirical literature. Here, we identify these two distinctly by examining different proxies for them. We use income stream uncertainty and accounting beta to proxy firm-risk, and market risk and capital intensity ratio represent managerial risk-taking. Once defined, our objective is to find the antecedents of both these by using the most advanced structural equation modelling (SEM) approach from created constructs of performance, psychological, corporate governance, shareholding patterns, fundamental valuation and firm’s characteristics drivers. We formulate seven hypotheses based on empirical literature representing these constructs. We use data of 269 Indian …

Empowering Organisations To Gain From Uncertainty: A Conceptualisation Of Antifragility Through Leveraging Organisational Routines In Uncertain Environments, Albert Munoz, Mathew Todres, Laura Rook

Australasian Accounting, Business and Finance Journal

Economic shifts, disruptive innovations, and competitive rivalries continuously reshape the operating environment of organisations. Such uncertainty impacts organisations and raises significant challenges. While many organisations tend to respond to uncertainty by adopting loss minimisation strategies, others see uncertainty as an opportunity to achieve gains. The latter view is exemplified in Taleb’s (2012) concept of ‘antifragility’, a property of systems that gain when exposed to uncertainty. For organisations, the challenge lies in the identification and execution of fundamental artefacts to accomplish work to achieve antifragile outcomes. One such artefact is the organisational routine; repeatable, regular patterns of behaviour and actions that …

The Role Of Internal Audit In Risk Management From The Perspective Of Risk Managers In The Banking Sector, Oday Tamimi

Australasian Accounting, Business and Finance Journal

The present paper aims to identify the role of internal audit function in risk management from the perspective of risk managers in banks operating in Palestine, with a review of the concept, importance, objectives, and principles of internal audit and its role in risk management for banks. The target population is the risk managers in the banks operating in Palestine. The major findings in the presented paper. First, the main factor in risk management is the risk manager's efficiency, and the internal auditing focuses on evaluating the risk management department and ensuring the efficiency of risk management practices in dealing …

Antecedents Of Firm’S Risk-Play – A Structural Equation Modeling Approach In An Emerging Market Context, Ranjan Dasgupta, Rashmi Singh

Australasian Accounting, Business and Finance Journal

Firm-risk and managerial risk-taking though distinct are used interchangeably in empirical literature. Here, we identify these two distinctly by examining different proxies for them. We use income stream uncertainty and accounting beta to proxy firm-risk, and market risk and capital intensity ratio represent managerial risk-taking. Once defined, our objective is to find the antecedents of both these by using the most advanced structural equation modelling (SEM) approach from created constructs of performance, psychological, corporate governance, shareholding patterns, fundamental valuation and firm’s characteristics drivers. We formulate seven hypotheses based on empirical literature representing these constructs. We use data of 269 Indian …

Organizational Inclusion And Leadership In Times Of Global Crisis, Sunaina Kuknor, Shubhasheesh Bhattacharya

Australasian Accounting, Business and Finance Journal

The globe is facing a never before seen pandemic situation because of Covid-19. Virtual workspaces have become a reality today. With the emergence of newer ways of working, it is necessary to ensure that employees contribute and feel involved in the workspace. This paper attempts to explore the ways in which practitioners and policymakers of inclusion perceive it at the workplace in the current COVID-19 pandemic, outline the role of leaders in fostering inclusion, and empirically test how organizational inclusion (OI) impacts organizational outcomes during the disturbing times. The participants were employees working in the service sector companies in India. …

The Impact Of Individual Needs On Employee Performance While Teleworking, Sonali Bhattacharya, Priyanka Mittal

Australasian Accounting, Business and Finance Journal

Due to change in work structures, the boundaries of private life and office work are getting depleted. There are various factors that may impact the performance of an employee, and they need to be identified. As different people in a company may have different home environments (family size, marital status, electricity, Wi-Fi, dedicated laptop with required software to teleconnect, noise and other distractions based on location of home, etc.), the telework setting varies and conflicts may arise during work and home transitions, especially when the dominant needs of a person are not met. Acquired Needs Theory by David McClelland classifies …

The Readability Of Sustainability Reporting In New Zealand Over Time, Azadeh Nilipour, Tracy-Anne De Silva, Xuedong Li

Australasian Accounting, Business and Finance Journal

This paper examines the readability of sustainability reporting in the annual reports, and stand-alone reports of New Zealand listed companies over a ten-year period. Sustainability reporting was manually extracted from 264 reports, and readability software was used to identify the readability scores using five readability indices. Additionally, the effects of reporting quantity, environmental sensitivity, and global listing on the readability of sustainability reporting were examined.

The results show that over the ten-year period readability has improved by only 6.5 per cent, despite a substantial increase in the number of companies reporting sustainability information, and an increase in the quantity of …

The Reform Of Public Service Bureaucracy In The Investment Sector Within The Pentahelix Perspective: A New Hope In The Era Of Autonomy?, S. Sumartono, H. Hermawan

Australasian Accounting, Business and Finance Journal

Many recommendations have been proposed to enhance the reform of public service bureaucracy. However, they were not effective enough since complaints were still directed toward public service practice. This research was conducted to investigate this issue and propose solutions to enhance the effectiveness of public service reform in the field of investment in order to increase regional economic growth. This research resulted in solutions in the form of an ideal reform model based on multi stakeholder (pentahelix) approach.

A hierarchical qualitative analysis approach was used in this research. This research also employed the phenomenological method through participatory observation. The focuses …

Management Accounting And Service Companies' Performance: Research In Emerging Economies, Tariq Tawfeeq Yousif Alabdullah

Australasian Accounting, Business and Finance Journal

Organizations use management accounting information in a variety of ways, and specifically management accounting information that plays a significant role in the effective management process. In addition, management accounting information contributes to the organization’s performance by giving feedback on carrying out the strategic plans and completing the work, and consequently enhancing the economy of the country. However, new management accounting systems, due to its externally and future-oriented strategic characteristics, (that may avoid many of the weaknesses of conventional management accounting systems) still lack a solid base in empirical studies. The main goal of this research is to determine the effect …

Challenges Of Women Employees In The Managerial Cadre In Indian It, Civil And Electronics Industry: An Analysis, Pooja Misra, Kanika Sirohi

Australasian Accounting, Business and Finance Journal

India was ranked 120th by World Bank from a list of 131 countries as far as female workforce participation in 2017 is concerned (Venkatesh, 2017). Looking at it from a demographic level, there are only a few states which have a women workforce larger than the men workforce. The low percentage of working women is both a social and economic loss. According to a survey, it was seen that working women form an integral part of the junior management level comprising 16%, while women comprise only 4% each at the middle and senior levels and as far as organizational leadership …

Corporate Governance Quality And Earnings Management: Evidence From Jordan, Sinan S. Abbadi, Qutaiba F. Hijazi, Ayat S. Al-Rahahleh

Australasian Accounting, Business and Finance Journal

This paper investigates the effect of corporate governance quality on earnings management in Jordan. Using a panel data set of all industrial and service firms listed on Amman Stock Exchange (ASE) during the period 2009-2013; this paper provides evidence that earnings management is affected negatively by corporate governance quality. In particular; the results show that earnings management is affected negatively by overall categories of governance index represented by board of director, board meeting, Audit and nomination and compensation committee. Furthermore, results suggest that corporate governance quality has increased over time. Thus, its ability to constrain earnings management has also increased. …

Corporate Governance And Environmental Disclosure In The Indonesian Mining Industry, Terri Trireksani, Hadrian Geri Djajadikerta

Australasian Accounting, Business and Finance Journal

Sustainability and corporate governance issues are now considered to be important and integral aspects of company performance. Both have established themselves as well-studied topics in the organisational and accountability areas. While there has been a growing interest to study the relationship between these two areas, research publication in this topic is still mainly focused on the Western societies. This study focuses on the corporate governance and sustainability disclosure practices in one of the emerging economies, Indonesia, and assesses the relationships between corporate governance variables and the extent of environmental disclosures made by the mining companies listed in the Indonesia Stock …

Red Queen Takes White Knight: The Commercialisation Of Accounting Education In Australia, Ted Watts, Graham Bowrey, C. J. Mcnair-Connolly

Australasian Accounting, Business and Finance Journal

This paper investigates the adaptive and maladaptive consequences of changes resulting from the commercialisation of Australian universities, specifically their accounting schools, and aims to identify the organisational changes triggered by competition that affect the growth of universities over time. The paper synthesises organisational learning theory, benchmarking theory, mimetic isomorphism and institutional theories, which are presented as "the Red Queen", itself an evolutionary theory; this synthesis provides the theoretical underpinning. The Red Queen theory posits that competition triggers organisational learning, which in turn intensifies competition in rivals that ultimately triggers an adaptive response. This self-reinforcing process produces results that may be …

The Effect Of Board Independence On The Earnings Quality: Evidence From Portuguese Listed Companies, Sandra Alves

Australasian Accounting, Business and Finance Journal

Agency theory suggests that independent outside board members may have an important monitoring function of the financial reporting process. As a result, boards with more independent directors have a tendency for increased monitoring and are therefore expected to insist on better earnings quality. This study examines whether board independence improves earnings quality by reducing earnings management in Portugal, a country with significantly different institutional and legal characteristics from the Anglo-Saxon countries. Using ordinary least square (OLS) and two stage least squares (2SLS) techniques to control potential simultaneity problems between board independence and earnings quality, we find evidence that independent board …

Changing From A Rules-Based To A Principles-Based Accounting Logic: A Review, Marta Silva Guerreiro, Lúcia Lima Rodrigues, Russell Craig

Australasian Accounting, Business and Finance Journal

We explore influences on unlisted companies when Portugal moved from a code law, rules-based accounting system, to a principles-based accounting system of adapted International Financial Reporting Standards (IFRS). Institutionalisation of the new principles-based system was generally facilitated by a socio-economic and political context that increasingly supported IFRS logic. This helped central actors gain political opportunity, mobilise important allies, and accommodate major protagonists. The preparedness of unlisted companies to adopt the new IFRS-based accounting system voluntarily was explained by their desire to maintain social legitimacy. However, it was affected negatively by the embeddedness of rule-based practices in the ‘old’ prevailing institutional …

Alternative Representation Of Management Control Design: An Empirical Exploration And Critical Analysis, Jim Rooney

Australasian Accounting, Business and Finance Journal

This paper describes a critical analysis of three recently published theoretical frameworks developed to explain management control design within inter-organisational collaborations. The particular concern is that, despite a plethora of theoretical frameworks attempting to explain management control design choices, these frameworks have yet to be utilised in practice. The focus is on their respective ability to explain control change in response to coordination problems, recognising the interactive nature of inter-organisational relationships. It adopts an approach previously used in the accounting literature for the purpose of promoting discussion and critical reflection. The resulting case study analysis provides critical insight on how …

Public Sector Financial Management Reform: A Case Study Of Local Government Agencies In Indonesia, Monir Mir, Wahyu Sutiyono

Australasian Accounting, Business and Finance Journal

Indonesia has taken initiatives to reform its public sector financial management. One of the reform agendas was to introduce ‘cash to accrual’ accounting for improved financial reporting. It is expected that improved financial reporting will enhance financial accountabilities of the governmental agencies and will assist both internal and external decision makers whose decisions will be based on the financial reports. However, it has been observed that there is a significant increase in the number of qualified audit reports when these financial reports were audited. This also means that these financial reports are lacking in providing true and fair views on …

The Road Less Travelled: An Overview And Example Of Constructivist Research In Accounting, Jayne E. Bisman, Charmayne Highfield

Australasian Accounting, Business and Finance Journal

This article provides a discussion of the nature of constructivism as a research paradigm within the context of accounting and presents a detailed example of a research study to demonstrate the application of this paradigm. The commentary features a particular emphasis on how the practicalities involved in designing and conducting the research meshed with the philosophy of the research paradigm. The illustrative research project concerns an investigation of organisational justice in the context of fairness in the workplace in public accounting firms. Semi-structured interviews were used to collect data, and textual transcriptions were interpreted using thematic methods and discourse analysis. …

Accounting Change And Institutional Capacity: The Case Of A Provincial Government In Indonesia, Harun Harun, Haryono P. Kamase

Australasian Accounting, Business and Finance Journal

This study examines a reporting system change of a provincial government in Indonesia. The study also draws attention to the institutional capacity of the provincial administration and implementation problems it encountered in adopting an accrual accounting system. Following the work of Lapsley and Pallot (2000), this study uses economic and institutional perspectives in conceptualising how an accounting change has been undertaken. The study shows that from an economic based perspective, the adoption of the new reporting system was stimulated by the wish to improve government organisations’ performance in the country. It is also found that the change of the reporting …

The Impact Of Technology, Job Complexity And Religious Orientation On Managerial Performance, Jesmin Islam, Majharul Talukder, Hui Hu

Australasian Accounting, Business and Finance Journal

This paper explores the impact of technology, job complexity and religious orientation on the performance of managers in the financial services industries. Data were collected from bank managers representing Islamic and conventional banks in Bangladesh. Path models were used to analyse the data. The results provide support for the hypothesis that a management accounting systems (MAS) adequacy gap exists in the financial sector in a developing country such as Bangladesh. These Islamic and conventional banks also experienced varied outcomes regarding the impact of the MAS adequacy gap on managerial effectiveness. Significant results emerged concerning the direct influence of technology and …