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Full-Text Articles in Business

Innate And Discretionary Accrual Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart Aug 2009

Innate And Discretionary Accrual Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart

Pamela Kent

The empirical analysis presented in this paper provides further insight into the important issue of the association between corporate governance structures and the quality of reported company earnings. The analysis uses the measure of accrual quality developed by Dechow and Dichev (2002) which provides a direct measure of the quality of current accruals. We derive measures of the innate and discretionary components of accrual quality following Francis et al. (2005), and subsequently include these measures in regressions against corporate governance characteristics. The results show that sound governance structures have a positive association between the innate and discretionary components of accrual …


Auditor Orientation, Strategies, And Tactics In Audit Negotiations, Janice Hollindale, Pamela Kent, Ray Mcnamara Aug 2009

Auditor Orientation, Strategies, And Tactics In Audit Negotiations, Janice Hollindale, Pamela Kent, Ray Mcnamara

Pamela Kent

This paper establishes the tactics that auditors use in negotiations with their client-management. It analyses those tactics to determine whether they are related by some underlying dimensions and their relevant strategies. Auditors performed a sorting task on 38 audit-specific tactics and assembled the tactics into groups of similar tactics. We used the auditors’ own cognisant representations of those tactics to determine their underlying structure. Multidimensional scaling found that there are four dimensions to the tactics that auditors use. During negotiations with their clients, auditors employ tactics representing core dimensions which can be interpreted as “Concern for Self”, “Concern for Client”, …


Droughts And Big Baths Of Australian Agricultural Firms, Pamela Kent, Reza Monem, Glenn Cuffe Aug 2009

Droughts And Big Baths Of Australian Agricultural Firms, Pamela Kent, Reza Monem, Glenn Cuffe

Pamela Kent

Purpose – The purpose of this paper is to examine whether Australian agricultural firms display big bath behaviour during droughts by recognising extraordinary and abnormal losses. It is hypothesised that Australian agricultural firms are more likely to report big bath losses in drought years than in non-drought years and, in a given drought year, agricultural firms are more likely to report big bath losses than firms in other industries.

Design/methodology/approach – The authors analyse 405 firm-years data for agricultural firms over 1980-1995. For comparison, they also analyse matched-pair samples of 17 and 30 non-agricultural firms for the drought years of …