bluuebunny/crossref_metadata_2025 huggingface dataset:
Attitudinal perspectives for predicting churn
Authors: Zorn Steffen , Jarvis Wade , Bellman Steve
Published: June 2010

Purpose

As acquiring new customers is costly, putting effort into satisfying and keeping customers over the long term can improve profitability. Firms usually do not know how each individual customer is feeling at any time (their attitude to the firm), so typically a customer's likelihood of leaving (“churning”) is predicted from behavioural data. The purpose of this paper is to investigate how a firm can add attitudinal variables to these churning models by deriving proxy indicators of satisfaction and commitment from behavioural data. The paper tests whether adding these proxies improved predictions of churning compared to a typical model based on purchasing behaviour (PB).

Design/methodology/approach

Analysing data from 6,000 regular customers from an Australian digital versatile disc rental company, logistic regression predicted membership termination (i.e. churning=1) versus continuation (=0). A baseline model used three traditional behavioural variables directly linked to members' PB. A second model including proxies for satisfaction and commitment from the customer database was compared against the baseline model to investigate improvement in churn prediction.

Findings

The most significant predictor of churn is an indicator of commitment: the uncertainty of a customer's commitment, indicated by number of times they changed their subscription plan.

Practical implications

The more customers change their plan, the more likely they are to quit the relationship with the firm, most likely because they are uncertain about how they can benefit from a long‐term commitment to the firm. Monitoring uncertainty indicators, such as plan changing, allows firms to intervene with special offers for uncertain customers, and, therefore, increase the likelihood of them staying with the firm.

Originality/value

The paper discusses the use of customer behaviour recorded in databases to identify proxy indicators of attitude before this attitude translates into churning behaviour.
Island tourism: marketing culture and heritage – editorial introduction to the special issue
Authors: Brown Keith G. , Cave Jenny
Published: June 2010

Purpose

This editorial aims to situate the papers chosen for this special issue within academic literature and identify their contributions to new knowledge.

Design/methodology/approach

The editorial first discusses tourism research literature pertinent to the marketing of cultural and heritage tourism products at island destinations around the globe. Second, the contributions made to this field by the authors in this volume and their implications for theory, industry dynamics and tourism product as well as to island communities are identified.

Findings

Each paper contributes to the field, either by explorations of theory, shifts in paradigm or by revealing new knowledge.

Originality/value

Collectively this collection of papers offers new perspectives on the special characteristics of island tourism, community dynamics, the role of marketing and the development of sustainable cultural and heritage tourism products in island contexts.
Tourism interaction on islands: the community and visitor social exchange
Authors: Moyle Brent , Croy Glen , Weiler Betty
Published: June 2010

Purpose

The purpose of this paper is to explore the cultural interaction between communities and visitors to islands using social exchange theory to enhance the understanding of the island experience.

Design/methodology/approach

The method consisted of 30 in‐depth interviews with community and tourism stakeholders, and formed part of a multi‐phase study that used social exchange theory as the lens to illuminate a range of perspectives of island interaction. This paper presents a comparative case study of Bruny Island in Tasmania, and Magnetic Island in Queensland, Australia.

Findings

Findings revealed that local community members have a wide range of motivations for entering into social exchanges with visitors, ranging from solely economic, to a genuine desire to provide quality experiences. Additionally, findings showed the nature of island cultural interaction could vary immensely, from welcoming and meaningful exchanges through to superficial and even hostile contact.

Research limitations/implications

As this research is on two islands in Australia, within a particular timeframe, the results may not be representative of island communities generally. Nonetheless, the results are indicative of locals' perceptions of their interactions with visitors.

Practical implications

The findings have a range of practical implications for the management of local and visitor interaction on islands. A key implication for island communities is the importance of developing programs that educate and inform locals about the potential benefits of interaction. Additionally, this research illustrates how islands can use cultural interaction to differentiate their tourism product and market island experiences.

Originality/value

The paper's contribution is its use of social exchange theory at a micro‐level to illuminate a range of local community members' perspectives of their tourism exchanges, in order to enhance understanding of the complex process of interaction between locals and visitors to islands.
A research agenda for social entrepreneurship
Authors: Haugh Helen
Published: June 2010

Purpose

To study the nature of social entrepreneurship from the viewpoint of activities associated with the perception of opportunities to create social value and the creation of social purpose organizations to pursue them.

Design/methodology/approach

The ways in which social enterprises adopt financially sustainable strategies to pursue social aims and address a wide a range of social problems, such as unemployment and inequalities in access to health and social care services, are discussed. Applies the results of existing research to summarize the size of the social enterprise sector in the UK, Europe and US. Proposes eight research themes for social enterprises research and endorses the need for researchers to build on current knowledge and to work together to generate a theory and produce valid, reliable and comparable data capable of being shared by researchers, policy makers and those with an interest in social entrepreneurship.

Findings

The eight research themes identified by the study comprise: defining the scope of social entrepreneurship; the environmental context; opportunity recognition and innovation; modes of organization; resource acquisition; opportunity exploitation; performance measurement; and training education and learning about social entrepreneurship.

Originality/value

Facilitates research into social entrepreneurship in the UK by overcoming the handicaps caused by the lack of standard and universally acceptable definitions of social enterprise, social entrepreneur and social entrepreneurship as well as the absence of a national register of social enterprises.
Raising the profile of social enterprises: the use of social return on investment (SROI) and investment ready tools (IRT) to bridge the financial credibility gap
Authors: Flockhart Andrew
Published: June 2010

Purpose

To evaluate the potential of social return on investment (SROI) and investment ready tools (IRT) in enabling social enterprises to address the credibility gap associated with their ability to build capacity and to adopt a more commercial/entrepreneurial approach to their activities.

Design/methodology/approach

The differences that exist between social and financial returns in social enterprises are discussed. Reports the results of interviews conducted with key informants from the social investment industry in Scotland and England to explore their personal understanding or experience of SROI, the tools they use at present to assess social enterprise sustainability and capacity for growth and potential for investment, their likes and dislikes of SROI, and how they see SROI moving forward in a Scottish and/or UK context.

Findings

The results indicated that, should social enterprises find a way to overcome the resource implications of implementing SROI, this would enable them to become the preferred investment vehicle for new sources of social finance.

Originality/value

Presents the findings from an MBA dissertation entitled “Is Measuring Social Return on Investment (SROI) a tool that can be used to raise the profile of social enterprises and help attract investment?” (Flockhart 2004) and includes preliminary findings from a pilot programme conducted by CEiS Ltd on the introduction of an Investment Ready Tool (IRT) for social enterprise.
Social enterprise: through the eyes of the consumer (prepared for the National Consumer Council)
Authors: Allan Bob
Published: June 2010

Purpose

To apply a consumer‐based approach to the study of the underlying concepts involved in social enterprises.

Design/methodology/approach

The report aimed to examine social enterprises from the consumer’s point of view and address the question of how social enterprise can make its case for consumer support. Pays particular attention to market segmentation, including: the ethical marketplace; under‐served markets; companies; public sector; voluntary sector; and consumer agents.

Findings

It is suggested that there are three schools of thought on how social enterprises should be promoted: the first focusing on social enterprises as “ethical businesses”, with the term used as an umbrella term for a wide range of firms practising corporate social responsibility (CSR); the second emphasising the role of social enterprise in trading for a social purpose; and the third focusing on social ownership.

Research limitations/implications

Future research may be directed towards further investigating the market analysis and testing of the concept, identifying the core brand and value proposition of a label, and identifying business plan models for viable growth, including its impact on social enterprise development and growth.

Originality/value

Provides a valuable contribution to the social enterprise literature which tends not to take a consumerist viewpoint.
Social enterprise mythology: critiquing some assumptions
Authors: Reid Kristen , Griffith Jon
Published: June 2010

Purpose

To debate some of the commonly;held assumptions about social enterprises.

Design/methodology/approach

The three main assumptions that are commonly applied to the development and characteristics of social enterprises are discussed, namely: that social enterprise must be a collective or democratic pursuit; that social enterprise is institutionally different from earlier mechanisms designed to usher in a “third way”; and that social enterprise is better than doing nothing. Analyses the development of these three assumptions through the framework offered by DiMaggio and Powell (1983) on institutional isomorphism.

Findings

There are indications that the social enterprises sector would benefit from more co‐ops taking an ever‐greater market share in an ever‐increasing range of industries, but that this should be the outcome of decisions freely made by individual, autonomous organizations that are free to choose social enterprises over other available options. Concludes that the practical danger posed by the wrong kind of isomorphic tendencies is to the potential flourishing of alternative organizational forms, alternative business models, and alternative ways of seeing the economic world.

Originality/value

Clarifies some of the commonly‐held views concerning social enterprises.
Developing fledgling social enterprises? A study of the support required and means of delivering it
Authors: Lyon Fergus , Ramsden Mark
Published: June 2010

Purpose

To explore what type of support is required by social enterprises, how this is different from mainstream business, what the preferred approaches to learning and working with support providers are, and how the provision of social enterprise support can be co‐ordinated and the capacity of support providers built up.

Design/methodology/approach

The study examined the different approaches and indicators used in conventional evaluations of social enterprises. Uses the literature and the views of those delivering support for the pilot projects to identify indicators to include social enterprises’ perceptions of the process of support provision, changes in their operations and behaviour and the extent of constraints faced. Describes the three pilot projects, comprising: Areas of Industrial Decline (Ex‐coalfield areas) pilot project, based on work with 11 eleven existing and 4 pre‐start social enterprises in Derbyshire and Nottinghamshire, UK, exploring the use of tools developed for conventional micro‐businesses; Black, minority and ethnic fledgling social enterprises pilot project, involving 14 social enterprises in the West Midlands, emphasizing those managed by Black Asian Minority Ethnic (BAME) women; and Rural social enterprise pilot project, which provided advisory support to 14 organizations in Lancashire and Oxfordshire on organization structure, management and legal structures.

Findings

The results revealed the importance of meeting those technical skill gaps that are easier to identify plus those that are harder to define (lack of confidence). Concludes that social enterprises may be confused about types of support available, particularly where duplication and competition takes place.

Originality/value

Draws on the author’s official evaluation of three pilot projects that were jointly run by the Department for Education and Skills (DfES), Department of Trade and Industry (DTI), Home Office and Office of the Deputy Prime Minister (ODPM).
Business practices in social enterprises
Authors: Bull Mike , Crompton Helen
Published: June 2010

Purpose

To report the findings of a European Social Fund (ESF) financed study into the investigation and development of business practices and managerial skills in the social enterprises sector.

Design/methodology/approach

The qualitative and grounded research investigation was conducted using interviews with owner/managers of 15 social enterprises in Greater Manchester and Lancashire, UK, and aimed to develop a strategic understanding of social enterprise business practices and issues and to develop baseline information to develop a management tool based on the balanced scorecard (BS) of Kaplan and Norton (1996). Develops a definition of social enterprise and presents a brief background of the post‐war development of the social enterprises sector, its recent growth and increasing competition for resources.

Findings

The results indicated that social enterprises adopt varying practices, face many issues and, while many are beginning to make themselves more accountable in terms of their social value, there was little evidence to suggest that social enterprises were measuring their social impact beyond providing data that was sought by funders. Reveals that the social enterprise managers implied that the next step was to become more proactive in recording and marketing their social values and that developing social value indicators is the next challenge, while evidence suggests that tools developed for social enterprises need to be informal, non‐generic and based on experiential learning.

Originality/value

Reveals key concepts that will form the framework for a modified BS.
A new model for supporting social enterprise through sustainable investment
Authors: Edery Yared
Published: June 2010

Purpose

To show how social enterprises can take advantage of the growing ethical awareness of financial institutions to finance their work whilst remaining true to their social principles.

Design/methodology/approach

The concept of financial intermediation and the growing ethical dimension of financial institutions are discussed to examine the evolving role of ethics within financial intermediation and the opportunities these offer to social enterprises which have hitherto been wary of such finance on principle. Focuses on the fact that many depositors and investors are willing to sacrifice financial return for social results. Reports results of the study, which literature searches and other methods and presents information based on case studies of eight financial intermediaries that provide services to social enterprises and have a strong concern for ethics.

Findings

The case studies comprise: Aston Reinvestment Trust (ART), an industrial and provident society; Charity Bank, an FSA regulated bank with a national lending scale; Derby Loans, an industrial and provident society (IPS) and a community development finance institution (CDFI); The Ecology Building Society (EBS), an FSA‐regulated building society with a national lending scale; Industrial Common Ownership Finance (ICOF), a public company limited by guarantee with a national lending scale; London Rebuilding Society (LRS), an IPS with a local lending scale, with borrowers having to be located in London; Triodos Bank, a regulated bank with a national lending scale; and Ulster Community Investment Trust (UCIT), an IPS with a local lending scale limited to specified geographical areas. Concludes that several financial intermediaries now exist that are willing to provide short and long term finance to social enterprises.

Originality/value

Provides valuable information and encouragement for social enterprises seeking finance for their activities.
Social enterprise under the microscope: comparing and contrasting Green‐Works and ReBoot
Authors: Sharpen Clare
Published: June 2010

Purpose

To understand the factors encouraging growth in two social enterprises involved in recycling based in London, UK, and how these can be interpreted and understood in terms of “managerialist” concepts.

Design/methodology/approach

The study aimed to understand how particular aspects of social enterprise literature relate to practice on the ground, and to gain a clearer picture of the diversity, complexity and contested ideas that coexist within the social enterprise sector. Focuses on the experience of two social enterprises based in London: ReBoot, a project set up by Bootstrap Enterprises, a social enterprise based in Hackney for the recycling of computers donated from individuals and organizations; and Green‐Works, a social enterprise for preventing large volumes of office furniture from going to landfill. Explains that the research comprised two parts: an extensive literature review to provide background theory and context; and the use of semi‐structured interviews with the selected organizations to gain qualitative data for comparison.

Findings

The results provided broad indications relating to the ideas and conflicts existing within and between social enterprises across such broad themes as “growth”, public and private origins, market orientation and long‐term sustainability. Concludes that the research highlights the diversity of social enterprises in terms of their objectives, structures, operations and long‐term visions, while demonstrating the great differences between the two enterprises despite their seeming similarity on the surface.

Originality/value

Challenges the frequently over‐simplified generalizations and assumptions that are applied to social enterprises.
Using human resource management tools to support social enterprise: emerging themes from the sector
Authors: Royce Maureen
Published: June 2010

Purpose

To devise a human resource management (HRM) approach capable of application to the management of employees in social enterprises.

Design/methodology/approach

The difficulty of applying traditional HRM techniques to social enterprises, where the workforce tends to be volunteers, is discussed. Reviews HRM concepts and their relationship/applicability to social enterprise (labour market relationships within social enterprise, resourcing and skills to support social enterprise, leadership and operational strategy within social enterprise). Presents two case studies, involving an inner city credit union in northwest England; and an inner city after‐school club. Reports on a pilot questionnaire survey focusing on the strands identified by the earlier research.

Findings

The results indicated a heavy reliance on volunteer labour with almost all organizations working with volunteers. Notes, however, that when asked whether volunteers were crucial to the running of the organization, only 59 per cent felt they were, with the remaining 41 per cent being uncertain or felt that volunteers were not crucial and only a small fraction (12 per cent) having more volunteers than paid workers. Reveals that the infrastructure to support coherent people‐management systems in social enterprise do not appear to be robust and piecemeal support and advice through a range of well‐meaning board members, fragile networks and higher education institutes cannot provide a strong framework for growth and sustainability in managing human resources in the social enterprise sector. Concludes that labour market relationships, resourcing and skills, and leadership and operational strategy have nevertheless been recurring themes in research in this field which suggests that there may be a very real opportunity for HRM tools and expertise to support social enterprise organizations in achieving their business and social goals.

Originality/value

Sheds light on the HRM aspects of social enterprises.
Recent reforms to corporate legal structures for social enterprise in the UK: opportunity or confusion?
Authors: Snaith Ian
Published: June 2010

Purpose

To study the legal underpinnings of the definition of social enterprise in the context of the problems with the corporate legal structures available in the UK in the late twentieth century and the reforms of the early twenty first century to assess whether further reforms are needed to facilitate the growth of the social enterprise movement.

Design/methodology/approach

A definition of social enterprise is proposed and examined in light of the problems associated with twentieth century company law and the efforts to reform and develop it in the period, 2000‐2006.

Findings

Three major developments may be seen to have important consequences for the continuing reform and development of company law: the Industrial and Provident Societies Act 2002 (Office of Public Sector Information 2002a) (private members bill); the Co‐operatives and Community Benefit Societies Act 2003 (Office of Public Sector Information 2003) (private members bill); the PIU Report “Private Action, Public Benefit” (Cabinet Office/Strategy Unit 2002) and the resulting Companies (Audit, Investigations and Community Business) Act 2004 (Office of Public Sector Information 2004); and the Charities Act 2006 (Office of Public Sector Information 2006). Refers also to other developments impacting on company law, notably the European Co‐operative Society’s European Co‐operative Society Statute (SCE) Regulation and Directive.

Originality/value

Provides a useful guide to UK legal trends likely to impact on social enterprises.
“They have God on their side”: the impact of public sector attitudes on the development of social enterprise
Authors: Chapman Tony , Forbes Deborah , Brown Judith
Published: June 2010

Purpose

To study the reasons why UK social enterprises are not yet fulfilling their potential due to the lack of support and trust on the part of key decision makers.

Design/methodology/approach

The study was based in Tees Valley, the southernmost sub‐region in northeast England, which has suffered from a decline in its traditional industries over the past 30 years. Reports the results of in‐depth qualitative interviews with 18 local authority economic regeneration officers and leading local strategic partnership managers across the five borough councils as key stakeholders across Tees Valley to explore potential barriers to the development of the social enterprises sector in this sub‐region. Explains that each interview focused on: perceived differences in the culture of the social enterprise sector compared with private business and the public sector; representation of the sector in key decision making in the sub‐region; the potential for developing entrepreneurship and foresight in the sector; and opinions on the level of support required for capacity building.

Findings

The results indicated that key stakeholders in the public sector assume that there is a value continuum between the voluntary and community sector, through the social enterprise sector, to the small and medium enterprise (SME) sector, while the assumption is also that the closer an organization is to the voluntary and community sector, the more likely that it will be driven by its social values. Supports the view that social enterprises are both “value led” and “market driven”.

Originality/value

Draws on previously unpublished data from a research project that aimed to assess the size, shape and scope of the social enterprise sector for Tees Valley Partnership.
The impact of entrepreneurial thinking system on risk‐taking propensity and entrepreneurial behavior
Authors: Wenhong Zhao , Liuying Fan
Published: June 2010

Purpose

The purpose of this paper is to assess the impact of entrepreneurial thinking systems on risk‐taking propensity and entrepreneurial behavior.

Design/methodology/approach

The research was conducted using an original data set of 231 entrepreneurs in China. The data were analyzed through regressing models.

Findings

It is found that, in China, the experiential system has a positive impact on risk‐taking propensity yet a negative impact on entrepreneurial behavior; however, the rational system has a negative impact on risk‐taking propensity yet a positive impact on entrepreneurial behavior.

Research limitations/implications

This paper focuses on entrepreneurs in a specific geographical region, China. Despite the hypothesis, the impact of thinking systems on entrepreneurial behavior highlights the importance of the rational system.

Originality/value

Research of entrepreneurs by foreign scholars has focused on the risk‐perception perspective, and the only national research is based on the authors' subjective experience and lacks an empirical basis. Based on Western theory, this paper empirically studies the impact of entrepreneurial thinking systems on risk‐taking propensity and entrepreneurial behavior in China.
Comparative research
Authors: Paisey Catriona , Paisey Nicholas J.
Published: June 2010

Purpose

Although many of the problems currently being faced in accounting education have also been expressed in educational debates within other professions such as medicine, law and architecture, changes in accounting education policy and practice have not been greatly influenced by comparative study of other professions. This paper aims to examine the potentiality of the comparative research method in order to inform the future direction of accounting education.

Design/methodology/approach

Comparative methodology has been defined as “a method of analysis that focuses on several objects of study in order to identify similarities and differences”. This paper begins by critiquing the comparative research method before considering how comparative research can make a contribution to research into accounting education policy and professional issues. The extent to which comparative research has been undertaken in accounting education research is then examined.

Findings

The potentiality of incorporating ideas from other professional education systems has not been fully exploited in accounting education.

Research limitations/implications

This paper advocates comparing accounting education with that in other professions. Other types of comparative research, for example, international comparisons, are not covered in detail.

Practical implications

Accounting educators and education policy setters should be encouraged to explore the accounting systems of similar professions to generate new ideas for change.

Originality/value

The paper discusses how comparative study, with particular reference to other professions, can be used to inform change in accounting education policy.
Strategic management accounting and business strategy: a loose coupling?
Authors: Cinquini Lino , Tenucci Andrea
Published: June 2010

Purpose

The purpose of this paper is to investigate whether business strategy influences strategic management accounting (SMA) usage. Business strategy has been operationalized through strategic pattern, mission and positioning.

Design/methodology/approach

The paper is based on an internet questionnaire survey of Italian companies. Multiple regression analysis is used to test the impact of strategic variables (pattern, mission and positioning) on SMA usage. Company size is included as control variable.

Findings

Several SMA techniques appear to be used in Italian companies as they are in other countries investigated in different studies. Customer accounting, competitive position monitoring, competitor performance appraisal based on published financial statement and quality costing represent the most widely used SMA techniques in the Italian sample. From the regression analysis, both defender‐ and cost leader‐type of strategy are found to be more willing to use SMA techniques addressing cost information.

Research limitations/implications

The issue, common in contingent research, of business strategy definition and operationalization constitutes the main limitation of the paper; in an attempt to restrict its effect, it uses three strategic typologies (pattern, mission and positioning) and employs a measurement method used in previous studies. A second issue concerns the definition of SMA techniques. There is no concurred list of SMA techniques in the literature and further discussion is expected in the future.

Originality/value

First, empirical evidence is provided to a field (SMA) where empirical research is needed in order to be comparable with traditional management accounting techniques. Second, for the first time in SMA studies, a framework is employed that considers all of the three main strategic variables (pattern, mission and positioning) used in management accounting literature. As a result, the loose coupling between SMA techniques and business strategy typologies indicates (with the possible exception of cost‐related SMA techniques) that the same SMA technique can support different strategic approaches of the company.
Resisting compliance with IFRS goodwill accounting and reporting disclosures
Authors: Carlin Tyrone M. , Finch Nigel
Published: June 2010

Purpose

The purpose of this paper is to report the findings of a study designed to understand the extent of compliance with the goodwill accounting and reporting disclosure requirements under AASB 136 among a sample of goodwill intensive Australian firms over the first two years of their IFRS adoption.

Design/methodology/approach

Examining the goodwill reporting practices adopted by a sample of 50 large Australian listed firms, which disclosed the existence of goodwill in each of the first two years in which they produced financial statements pursuant to IFRS. The quality and technical accuracy of the goodwill disclosures produced by these organisations together with an assessment of evidence of variation in these over time provides an evidentiary basis for analysis.

Findings

The paper finds continued high levels of non‐compliance with the goodwill accounting standard suggesting that a viable organisational option in the face of change is to fail to take steps to comply. This organisational response undermines the assumptions of consistency and comparability as key qualitative characteristics under IFRS.

Originality/value

The focal question pondered pertains to the nature of organisational responses to changes such as those brought about by continued development and reform of financial reporting standards. This is a question with potentially significant implications for a range of stakeholders including auditors, financial analysts, regulators and report users.
The Applications Of Management Accounting Techniques In Malaysian Companies: An Industrial Survey
Authors: Kamal Abd Rahman Ibrahim , Omar Normah , Zainal Abidin Zubaidah
Published: June 2010

In exploring the management accouting practices of companies in Malaysia, two categories of companies were chosen: Malaysian‐owned and Multinational corporations (MNCs). The majority of the companies selected were either manufacturing‐based or service‐based. To asess the level of management accounting applications in these organizations, Akira’s “Four‐Phase” model was adopted. While a “drifting phase” connotes an extremely low level of application, the “integrated phase” on the other hand deliberately uses the latest management accounting approaches for strategic purposes. Management accounting techniques surveyed include the applications of traditional methods such as Standard Costing, Budgeting and Cost‐Volume‐Profit (CVP) and other integrated approaches such as Just‐in‐Time (JIT), Activity‐Based‐Costing (ABC), Benchmarking and Target Costing.
Quality Monitoring Of The Accounting Profession: Are We Ready For Peer Review?
Authors: Haji Omar Normah , Johari Alwi Mohd. , Ahmad Zaini
Published: June 2010

One of the main concerns of the accounting profession is to provide consistently high quality services. In line with this objective, the current study was conducted for three main purposes: to determine the level of internal quality control and documentation amongst public accounting practices in Malaysia; to examine the role of the Malaysian Institute of Accountants (MIA) in ensuring members’ compliance to the International Standards of Auditing (AI) on Internal quality and documentation, and to explore the potential of using peer review as a tool for monitoring the quality of public practices in Malaysia. The findings implied that the practitioners have satisfactorily adopted quality control policies and procedures as required by the International Auditing Standards. In addition, the public accounting firms were also found to have placed significant attention to the form and content of documentation as stipulated by the AIs. The potential of using peer review as a quality‐monitoring tool has strong support amongst the locally established public practices.
Awarenes of MRSM’s Students Towards Accountancy As A Profession
Authors: Azmi B. Nias Ahmad Mohamad
Published: June 2010

This study is taken to investigate the Maktab Rendah Sains MARA’s (MRSM) student’s awareness towards accountancy as a profession. The objectives of this study are to identify factors that attract students in choosing the subject Principle of Accounts (PA) in the Sijil Pelajaran Malaysia (SPM) examination and to examine their awareness of accountancy as a profession. The study found out that most of the students chose PA on their own. The study also indicated that the students choose PA subject because they have interest in the subject. Overall, the findings show that MRSM students have a low level of awareness towards accountancy as a profession.
The Driving Forces Behind Malaysian Corporate Social Reporting
Authors: Mohamed Zain Mustaffa
Published: June 2010

Corporate social disclosure has, since the early seventies, attracted the interest of various user groups. As a result, a long history of research into corporate social disclosure practice is observable in developed countries particularly the United States and Western Europe. However, very little attention has been focused on developing countries. This paper seeks to understand why corporations in Malaysia are disclosing social information in their annual report. Semi structured personal interviews were conducted on ten companies from various sectors to find out the reasons for disclosure. A group of financial analysts were also interviewed to understand the need for information by third party. The interviews revealed that most companies are disclosing social information due to top management awareness together with a desire to comply with the government’s social policy and enhance corporate image. The study also highlights that while accountability seems to be the main emphasis for disclosing social information, legitimization of business cannot be ignored due to different market pressures, government policy and values from those of western countries.
Do Malaysian Banks Manage Earnings Through Loan Loss Provisions?
Authors: Ghafar b. Ismail Abd. , Shah Shaharudin Roselee , Samudhram Ananda R.
Published: June 2010

The 1988 Basle regulations are meant to synchronise banking regulations worldwide and add to the stability of the global banking system. Basle II, due to be released in 2006, addresses some of the flaws in the 1988 accord. However, both versions do not close a loophole for managing earnings through discretionary adjustments of the loan loss provisions. Some researchers have found indications of income smoothing through loan loss provisions in banks, but others have concluded otherwise. All of these studies were conducted on banks outside of Malaysia. This study looks specifically at Malaysian banks, and uses a model based on bank‐specific and macroeconomic factors that are peculiar to Malaysia. It concludes that Malaysian banks do not smoothen income. The likely reason is that good governance in Malaysian banks is driven more by regulatory measures imposed by the authorities than stock market discipline. Thus bankers do not seem to be concerned with managing earnings to present a rosy picture to investors. However, from a macroeconomic perspective, stacking up loan loss provisions during good times will help to release more credit during downturns in economic cycles, helping to softwn the impact of recessions. Further research on whether Malaysian banks conduct capital management, to meet regulatory capital requirements, will help to shed more light on the behaviour of Malaysian banks.
Desired Attributes of Public Accounting Firms from Accounting Students’ Perceptions: The Case of University of Malaya & International Islamic University of Malaysia
Authors: Abdullah Mazni , Zakaria Zamzulaila
Published: June 2010

This study is conducted to identify which attributes that are considered important by accounting students of University of Malaya and International Islamic University of Malaysia in the job selection process. The questionnaires which lists the attributes of public accounting firms are distributed to the accounting students and they were asked to rate each attribute on a 5 point Likert scale. The students’ demographic profile and their academic achievements (CGPA) are also analysed to determine their relationships with the preference in the subjects’ job selection. It is found that the students rank opportunity and advancement as the most important attributes followed by office atmosphere/friendliness of staff and firms’ training programme. The findings from this study might assist public accounting firms in developing policies that might attract more quality recruits. They can also be used by institutions of higher learning to give more appropriate career advice to students who are seeking for their first accounting job.
Self‐efficacy and Student Performance in an Accounting Course
Authors: Lai Mooi Tho
Published: June 2010

Self‐efficacy has been defined as individuals’ beliefs, thoughts, and feelings about their personal capabilities that affect how they function and, which in turn influence their performance (Bandura 1977). Self beliefs can influence behaviour choices, determine the amount of effort needed and for how long, and encourage thought patterns and emotional behaviours necessary to succeed. It is theorised that students with unrealistic expectations (especially overly optimistic expectations) may have difficulty aligning efforts with desired performance levels and, as a result, perform more poorly. In this study, selfefficacy is operationalised as the difference between actual and predicted examination performance. Prediction errors in the final examination marks (MERR) and prediction error in the overall course grade (GERR) of a second year management accounting course are used as measures of Self‐efficacy. Using regression analysis, the results indicate that the efficacy measures are significant and positively related to course performance. This suggests that students who are more conservative in their expectations of the course results perform better than those who are more optimistic. The findings also showed that student characteristics of previous academic achievements (CGPA) and hours of study per week (HRWK) explained more that 40 per cent of the variations in the self‐efficacy measures. The higher a student’s CGPA, the more conservative or cautious he is in the prediction of his final course performance. The more pessimistic a student is of his final course performance, the lower the number of hours he estimates for studying the course.
Taxation and Technology: Technology Readiness of Malaysian Tax Officers in Petaling Jaya Branch
Authors: Ming Ling Lai , Muhammad Izlawanie
Published: June 2010

The Inland Revenue Board Malaysia has just launched the electronic tax filing system. To date, there has been little scholarly study in examining people’s state of technology readiness. Technology readiness (TR) is defined as people’s propensity to embrace and use new technologies for accomplishing goals in home life and at work (Parasuraman, 2000). Drawing on insights from the literature, this study attempts to adopt the Technology Readiness Index (TRI) of Parasuraman and Colby (2001) in examining the state of technology readiness of tax officers. A survey questionnaire was personally administered on 210 tax officers in Malaysia. A total of 187 usable questionnaires were collected. The survey found that although Malaysian tax officers are optimistic towards new technologies, they experienced a considerable level of discomfort with new technologies. Notably, male tax officers displayed more optimism than their female counterparts. There were no significant differences between gender and age on innovativeness, discomfort and insecurity dimensions. Based on the TRI, the respondents were segmented into explorers (6 per cent), pioneers (39 per cent), skeptics (35 per cent), paranoids (16 per cent) and technology laggards (4 per cent). This study provides timely and useful information for the tax authorities and has implications for tax administration and policy development.
An Empirical Evidence of Audit Firm Merger and Audit Pricing in Malaysia
Authors: Hariri Hilwani , Abdul Rahman Norshimah , Che Ahmad Ayoib
Published: June 2010

The merger of PriceWaterhouse and Coopers & Lybrand marked another historical event in the accounting and auditing industry. Both firms were optimistic that the merger would enhance the performance as well as the profession of the merged firms. This research studies the impact of the merger and the price of audit service charged to their clients. The findings showed that there is no significant impact of the merger on audit pricing. The results provide richer understanding of the relationship between organizational structure and pricing in a developing country.
Moderating Effect of Balanced Scorecard Measures Usage on Strategy‐performance Relationship: An Empirical Study of Manufacturing Firms
Authors: Jusoh Ruzita , Nasir Ibrahim Daing , Zainuddin Yuserrie
Published: June 2010

This paper empirically examined the role of the balanced scorecard (BSC) measures usage as a potential moderator of the business strategy and performance relationship. Samples were taken from 120 manufacturing firms. Results of this study provide evidence that partially support the moderating effects of the BSC measures usage on the strength of the relationship between business strategy and firm performance.
Ethics of Future Accounting Professionals: Evidence from Malaysia
Authors: Barizah Abu Bakar Nur , Ismail Suhaiza , Mamat Suaniza
Published: June 2010

A strong ethical sense needs to be imbued in potential entrants to the accountancy profession. This paper explores the ethical attitudes of the final year accounting students in the International Islamic University Malaysia. There were 210 students who responded to the self‐administered questionnaire survey. Of these respondents, 38 per cent would opt to become whistleblowers. About 3 per cent would accept bribes. Once an element of risk of being caught was introduced, the percentage opting for whistleblowing increased by 6 per cent. However, none chose the bribe option. These responses indicate that only a small porportion of students will depend on punishment and penalty in order to behave ethically. A larger proportion of male students as compared to female tend to behave unethically. The study indicates that the majority of respondents would prefer not to indulge in unethical behavior. The primary contribution of this paper is that it offers insight on Malaysian accountancy students’ ethical attitudes.
Internship and Audit Expectation Gap Among Undergraduate Students in Universiti Utara Malaysia
Authors: Azham  , Teck Heang Lee , Mohamad Rosli , Ojo Marianne
Published: June 2010

The accounting profession has long faced the issue of an audit expectation gap; being the gap between the quality of the profession’s performance, its objectives and results, and that which the society expects. Studies have been carried out worldwide to determine the effect of education in narrowing the audit expectation gap. Extending the knowledge acquired, this paper investigates whether internship program could reduce the audit expectation gap in Malaysia. Using a pre‐post method, the research instrument adapted from ferguson et al. (2000) is administered to the UUM’s accounting students before and after completing an internship program. The results show a significant change in their perceptions after the internship program. The results show a significant change in their perceptions after the internship program. However, changes in perceptions may not warrant an internship program as a means of reducing the audit expectation gap as misperceptions about the duties of auditors for fraud prevention and detection are still found among respondents. Nevertheless, an internship can still be used to complement audit education as it is an ideal way to expose students to professional issues and enables them to have a better insight of the actual performance and duties of auditors.
The Effect of Free Cash Flow Agency Problem on the Value Relevance of Earnings and Book Value
Authors: Fuad Rahman Aulia , Mohd‐Saleh Norman
Published: June 2010

Prior research identifies free cash flow (FCF) as one source of agency problems between managers and shareholders. Managers of firms with high FCF and of low growth opportunity tend to invest in marginal or even negative NPV project and use income increasing discretionary accruals to camouflage the effects of non‐wealth‐maximizing investments. Therefore, the objective of this study is to assess the value relevance of earnings and book value and the effect of agency problem caused by FCF, on the value relevance of earnings and book value. As predicted, results show that earnings and book value are value relevant and agency problem caused by FCF, reduces the value relevance of earnings and book value. However, the effect is not stable across sample years Firms with FCF agency problem do not have lower earnings (book value) coefficient than other firms in year 2002 (2004). Investigation into specific event that may have driven the difference in result is subject to further research.