Strengthening the Role of Financial Disclosure in the Governance of Superannuation Funds. This project will provide evidence about the usefulness of superannuation fund financial reports and whether funds are disclosing unbiased measures of their financial position and performance. This evidence will directly assist regulators in their deliberations in reforming accounting standards and other disclosure regulation governing superannuation fund financial reporting. Such reforms are necessary to e ....Strengthening the Role of Financial Disclosure in the Governance of Superannuation Funds. This project will provide evidence about the usefulness of superannuation fund financial reports and whether funds are disclosing unbiased measures of their financial position and performance. This evidence will directly assist regulators in their deliberations in reforming accounting standards and other disclosure regulation governing superannuation fund financial reporting. Such reforms are necessary to ensure that all Australians in superannuation funds have access to relevant, reliable and comparable financial information to facilitate full accountability of superannuation fund trustees and informed decision making by stakeholders, and in turn, enhance the security of superannuation savings and maximise retirement incomes.Read moreRead less
The Management of Corporate Earnings and Audit Committee Effectiveness. The ?management? of corporate earnings as an issue of social and economic importance has been given substantial prominence recently (e.g. Enron, HIH). Mandated audit committees (AC) for large companies has been proposed by Federal Government initiated inquiries (Ramsay 2001, JCPAA 2002) and is a key part to the Government's response to those inquiries (CLERP 9). ACs are not without critics (eg Wolnizer 1995). This study ex ....The Management of Corporate Earnings and Audit Committee Effectiveness. The ?management? of corporate earnings as an issue of social and economic importance has been given substantial prominence recently (e.g. Enron, HIH). Mandated audit committees (AC) for large companies has been proposed by Federal Government initiated inquiries (Ramsay 2001, JCPAA 2002) and is a key part to the Government's response to those inquiries (CLERP 9). ACs are not without critics (eg Wolnizer 1995). This study examines longitudinally the effectiveness of ACs in influencing corporate earnings management behaviour. This study will aid the Federal Government sponsored Financial Reporting Council in its task of monitoring the effectiveness post-CLERP 9 implementation. Read moreRead less
Corporate governance, corporate disclosure policies and the timeliness of price discovery: How competitive is the Australian equity market? This project will help reduce the economic cost of poor corporate governance. It will facilitate more liquid financial markets and potentially it will increase the number and value of worthwhile investment opportunities by lowering the cost to finance them. It will assess Australia's competitive standing in the world's equity markets and establish whether ou ....Corporate governance, corporate disclosure policies and the timeliness of price discovery: How competitive is the Australian equity market? This project will help reduce the economic cost of poor corporate governance. It will facilitate more liquid financial markets and potentially it will increase the number and value of worthwhile investment opportunities by lowering the cost to finance them. It will assess Australia's competitive standing in the world's equity markets and establish whether our market is indeed transparent and a good place to raise risk capital. It will add needed credibility to corporate governance regulation. And it will enhance Australia's standing in the international research community because its research methods can be applied to almost any public capital market.Read moreRead less
Protecting Australia’s brand assets and stakeholder interests. International accounting standards have recently been harmonised to allow firms to recognise the value of purchased brands on their balance sheets, subject to an annual test to verify that value has not been impaired. There are no widely accepted methodologies with which to undertake such tests, despite the requirement for the balance sheet to provide a true and fair view of financial position. This research will develop three approa ....Protecting Australia’s brand assets and stakeholder interests. International accounting standards have recently been harmonised to allow firms to recognise the value of purchased brands on their balance sheets, subject to an annual test to verify that value has not been impaired. There are no widely accepted methodologies with which to undertake such tests, despite the requirement for the balance sheet to provide a true and fair view of financial position. This research will develop three approaches to calibrate brand impairment and draw lessons from applying them over a three year period. The outputs are twofold: first, a suite of detailed methods for accountants, auditors and financial analysts to measure and diagnose brand value; second, several key indicators that can be used to monitor signs of brand impairment.Read moreRead less
The predictive, behavioural and economic forecasting performance of alternative credit risk and bankruptcy models: a global study. This study empirically evaluates a range of "new age" credit risk models using a large global sample of failed firms and bond ratings data. The study will provide a substantive body of empirical evidence to assist regulators, creditors, investors and other users assess the merits, strengths and limitations of alternative risk modelling approaches.
Extended reporting and assurance for not-for-profit organisations. This project aims to improve the relevance and reliability of extended reporting now being required of not-for-profit organisations (NFPOs). Society is increasingly demanding that NFPOs disclose additional information beyond financial information, as evidenced by the service performance reporting and integrated reporting initiatives. These reporting initiatives better align the reporting with the mission of NFPOs: to achieve outc ....Extended reporting and assurance for not-for-profit organisations. This project aims to improve the relevance and reliability of extended reporting now being required of not-for-profit organisations (NFPOs). Society is increasingly demanding that NFPOs disclose additional information beyond financial information, as evidenced by the service performance reporting and integrated reporting initiatives. These reporting initiatives better align the reporting with the mission of NFPOs: to achieve outcomes that are beyond financial returns. This project aims to evaluate and to aid the development and implementation of these extended reporting responsibilities and mechanisms that increase the quality and credibility of the information. This would improve the relevance of the information produced by NFPOs and increase confidence in extended reporting.Read moreRead less
Australia's Regulatory Response to Recent Corporate Collapses and Perceived Auditing Deficiencies. The corporate collapses of recent years have cost shareholders and other stakeholders hundreds of millions of dollars. However, various reforms in accounting and governance are coming into force. As these reforms differ markedly from those in other jurisdictions (notably the USA), Australian based research is essential in understanding the effectiveness of the changes in moderating certain corpor ....Australia's Regulatory Response to Recent Corporate Collapses and Perceived Auditing Deficiencies. The corporate collapses of recent years have cost shareholders and other stakeholders hundreds of millions of dollars. However, various reforms in accounting and governance are coming into force. As these reforms differ markedly from those in other jurisdictions (notably the USA), Australian based research is essential in understanding the effectiveness of the changes in moderating certain corporate behaviour. This research provides a measure of efficacy of these reforms in terms of measures of "manipulation" of corporate earnings. The results of the research will provide evidence of the efficacy of the reforms and pointers to further enhancements. Read moreRead less
Improving fraud detection, financial reporting quality, investor confidence and market returns by using specialist auditors. As investors, managers and auditors grapple with the global financial crisis effects, this project's findings will help them by showing how and when auditor specialisation contributes to greater financial statement quality and returns. Investors will benefit from lower audit costs, increased audit quality and more credible financial statements.
Self-defined measures of financial performance and CEO pay. This project aims to investigate measures of financial performance used to reward executives that do not comply with accounting standards. Such measures are sometimes presented as performance measures to external stakeholders and this can have important implications for organisational governance. This project expects to generate new knowledge by identifying the way decision about performance and its measurement are linked, and the inf ....Self-defined measures of financial performance and CEO pay. This project aims to investigate measures of financial performance used to reward executives that do not comply with accounting standards. Such measures are sometimes presented as performance measures to external stakeholders and this can have important implications for organisational governance. This project expects to generate new knowledge by identifying the way decision about performance and its measurement are linked, and the influence of external auditors in this process. The expected outcomes from this project will will include empirical evidence that significantly improves our understanding of the choices firms make in reporting to stakeholders, as well as determining executive compensation.Read moreRead less
Financial performance, uncertainty and corporate investment decisions. It is well understood that the provision of financial reports to external stakeholders impacts their decision making. Yet the extent to which externally reported financial measures such as earnings can resolve uncertainty, and their influence on corporate investment decisions is largely unknown. This project identifies how disaggregation of earnings into market-, industry- and firm-specific components explains differences in ....Financial performance, uncertainty and corporate investment decisions. It is well understood that the provision of financial reports to external stakeholders impacts their decision making. Yet the extent to which externally reported financial measures such as earnings can resolve uncertainty, and their influence on corporate investment decisions is largely unknown. This project identifies how disaggregation of earnings into market-, industry- and firm-specific components explains differences in the quality of financial information, and the implication for accounting standards regulating the reporting of periodic performance. It applies the resulting insights to identify an uncertainty reduction role for financial reporting, and the way in which information contained in earnings impacts investment decisions. Read moreRead less