ORCID Profile
0000-0003-3034-8051
Current Organisations
University of New England
,
University of Adelaide
,
Queensland University of Technology
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Publisher: Emerald
Date: 21-07-2023
Abstract: The authors investigate the adoption of nomination committees in Australia and identify the managerial power perspective as one explanation for firms not establishing nomination committees. A positive outcome of establishing a nomination committee from the perspective of board ersity is also examined. The authors adopt an archival approach by collecting data for firms listed on the Australian Securities Exchange (ASX) during the period 2010 to 2018. The authors establish the prevalence of nomination committees for small medium and large Australian firms. Regression analyses are used to determine whether the power of the chief executive officer (CEO) influences the adoption of a nomination committee. The association between having nomination committee and board ersity is also analyzed using regression analyses. Less than half of firms adopt a nomination committee. Larger firms are more likely to adopt a nomination committee than medium and smaller sized firms. Firms with less powerful CEOs are more likely to adopt a nomination committee. Adoption of a nomination committee is also associated with greater board tenure dispersion and board gender ersity in medium and smaller sized firms. Evidence on nomination committees provides original research that extends previous research focusing on the audit, risk and remuneration committees and s les restricted to large firms. The nomination committee has an important role to play in the appointment of directors yet limited evidence exists of the adoption rate, explanation for non-adoption and benefits of adoption. The authors add to this evidence.
Publisher: Wiley
Date: 23-10-2008
Publisher: Virtus Interpress
Date: 2009
DOI: 10.22495/COCV7I1C3P6
Abstract: Ullmann’s (1985) three-dimensional model of social responsibility disclosure is tested to determine whether it can be operationalized to help explain the quantity and quality of environmental disclosures in Australian annual reports. The stakeholder power dimension of Ullmann’s framework is significant in explaining environmental disclosures while content of the mission statement and existence or otherwise of environmental or social responsibility committees also find strong statistically significant support in the results. Ullmanns’ stakeholder theory has previously been applied to explain social disclosures in general (Roberts, 1992) and is an important theory because it introduces a measure of strategy. The current paper demonstrates how this theory can be applied to a specific social disclosure using variables that are idiosyncratically applicable to the types of disclosures.
Publisher: Wiley
Date: 05-01-2022
DOI: 10.1111/ACFI.12906
Abstract: We test whether proprietary costs (relating to competition) are associated with disclosure of greenhouse gas (GHG) emissions of companies in annual and stand‐alone sustainability reports. We use the National Greenhouse and Energy Reporting Act 2007 disclosure requirement to create a natural experiment to control for endogeneity issues. Disclosure is significantly higher when there are lower proprietary costs from existing rivals and higher proprietary costs from potential new entrants for hard , and soft disclosures.
Publisher: Emerald
Date: 19-10-2022
Abstract: The purpose of this study is to examine if partner cross-contagion in audit offices is associated with client reporting quality. To this end, the authors test if the presence in an audit office of a partner with a highly aggressive style is associated with the reporting quality of other partners’ clients. Partners with a highly aggressive style are identified by their tendency to approve favorable client reporting. The authors add to the existing literature that provides limited and equivocal evidence on audit office cross-contagion. Partner style is determined in an estimation period from 2010 to 2014. Aggressive style is identified when partners tend to approve favorable client reporting, which is shown by a positive value for their clients’ median discretionary accruals. Partners are considered to exhibit a highly aggressive style if they have positive median client discretionary accruals within the 90th percentile. Cross-contagion analysis is then conducted in a test period from 2015 to 2019 by determining if the presence in an office of a partner with a highly aggressive style is associated with the reporting quality of other partners’ clients. Two measures of client reporting quality used. These are the accuracy of current-period accruals in predicting period-ahead cash flows and earnings management related to benchmark beating. This study finds partner cross-contagion of highly aggressive style in Big 4 offices that is associated with lower client reporting quality for non-Metals and Mining industry clients. This cross-contagion only occurs when the contagious partner has a very high level of aggressive style. This study finds Big 4 partners are susceptible to aggressive style cross-contagion regardless of their own idiosyncratic style. The results of this study show more cross-contagion in small Big 4 offices and mitigation of cross-contagion for economically important clients. Cross-contagion in non-Big 4 offices is observed for Metals and Mining industry clients. By determining style from partners’ past clients’ discretionary accruals, this study extends prior cross-contagion research that relies on restatements to identify style. This study examines several other cross-contagion issues not addressed in prior studies. These include differences in cross-contagion for Big 4 and non-Big 4 offices and for large and small Big 4 offices, partners’ susceptibility to cross-contagion and the influence of client importance.
Publisher: Virtus Interpress
Date: 2003
DOI: 10.22495/COCV1I2P11
Abstract: This study investigates the firm specific characteristics which provide ex ante incentives to Australian companies to utilize an executive stock option (ESO) plan. We hypothesize that the remuneration of the Chief Executive Officer, the firm’s investment opportunity set, the level of leverage and the degree of international ersification of the firm are related to the firm’s utilization of an ESO plan. Using a s le of 378 firms drawn from the largest 500 firms in Australia, we find that the results support our hypotheses, with the exception of the level of firm leverage.
Publisher: SAGE Publications
Date: 07-1994
Abstract: DR. PAMELA KENT IS SENIOR LECTURER IN commerce at the University of Queensland, Australia. This paper presents research that tests empirically the previously unsubstantiated assumption made in literature of a positive relationship between the use of management advisory services by managers and financial performance of small clients. Hypotheses were tested using relatively homogenous businesses in a controlled environment. Need for achievement and locus of control of managers were also tested because these variables were not controlled in the research design. It was found that financial performance was positively significantly related to using management advisory services from external advisers when profit and sales growth were used as indicators of financial performance. The need for achievement of managers also added significantly to the profit growth and sales growth regression models. A comparison of the sources of advice indicated that accountants tended to concentrate on financial advice while non-accountant advisers stressed selling and marketing techniques such as shop displays, advertising, promotions, and knowledge of products sold.
Publisher: Wiley
Date: 11-1988
Publisher: Wiley
Date: 09-2006
Publisher: Virtus Interpress
Date: 2006
DOI: 10.22495/COCV3I4P6
Abstract: This paper examines the determinants of voluntary disclosure by firms of employee entitlement actuarial assumptions under AASB 1028. It draws on proprietary costs of information and stakeholder theory to make predictions about factors, which influences the disclosure of the actuarial assumptions. This framework is chosen after a review of alternative theories used to investigate voluntary disclosure. It is found that disclosure is negatively related to the power of firms’ employees, and firm economic performance. Disclosures are weakly, positively related to firm size in the multivariate model.
Publisher: Wiley
Date: 27-07-2017
DOI: 10.1111/ACFI.12286
Publisher: Wiley
Date: 07-2005
Publisher: SAGE Publications
Date: 12-2003
DOI: 10.1177/031289620302800303
Abstract: This study examines the voluntary disclosure of future earnings information in annual reports for Australian listed companies. We find that most Australian companies in our s le do not provide quantitative earnings, forecasts in their annual reports, although more than half of the s le do disclose forward-looking information relating to earnings, without specifically disclosing point estimates for the future. These companies mostly supply qualitative information with a positive bias, while the remainder of the s le discloses no forward-looking information relating to earnings. Our findings also suggest that larger companies with less volatile earnings tend to provide more future earnings information than smaller companies with relatively volatile earnings.
Publisher: Wiley
Date: 25-07-2016
DOI: 10.1111/ACFI.12222
Publisher: Emerald
Date: 06-09-2011
DOI: 10.1108/02686901111161331
Abstract: The purpose of this paper, using transaction cost economics as a theoretical framework, is to seek an understanding of a company's decision to purchase Management Advisory Services (MAS) from their external auditors and other consultants as opposed to assembling MAS internally within the company. Data from annual reports for a pooled s le of 3,154 company years were collected for listed Australian companies to determine MAS from auditors. Data for a second s le were collected by undertaking a survey of listed companies to provide a figure for total management advisory services paid to auditors and other consultants. Ordinary least squares regression was used to analyse the data and predict companies' decision to outsource or internally generate MAS. It is found that purchases of MAS from external auditors and other consultants are associated with, restructuring, number of controlled entities (subsidiaries), number of geographical segments, management change and frequency of contracting. Other company characteristics, including company's industry membership, short‐term growth, leverage, return on assets, use of a “big 5” auditor, type of audit report, and audit fees also explain the quantity of MAS purchased by a company from their external auditors and other consultants. Transaction cost economics has not previously been applied to explain the decision to generate MAS internally by assembling knowledge within the company versus outsourcing from auditors and other consultants. The study makes use of unique data sets because it covers the period when regulations were not foreshowed restricting accounting firms supplying their audit clients with MAS.
Publisher: American Accounting Association
Date: 06-2015
DOI: 10.2308/AJPT-51173
Abstract: We examine the relation between audit partner rotation and audit fees for a s le of Australian firms from 2007 to 2010. We find a significant positive association between audit fees and partner rotation in the year of rotation. The association persists in the first year post rotation and to a lesser extent in the second year post rotation. Our analysis suggests that higher audit fees are associated with both mandatory and voluntary partner rotation. However, when we ide the s le into large global clients, mid-level clients, and small local clients, we find that mandatory and voluntary rotation are associated with higher audit fees for large global clients, while only voluntary rotation is associated with higher audit fees for small local clients. We do not find an association between partner rotation and audit fees for mid-level clients. Our study suggests that the extent to which firms are able to pass on the costs of partner rotation varies across different segments of the audit market.
Publisher: Elsevier BV
Date: 2020
Publisher: Emerald
Date: 07-11-2016
Abstract: The purpose of this paper is to examine the effectiveness of voluntary governance mechanisms in Australia. This study identifies similar choices of corporate governance by Australian firms and tests the effectiveness of the choices made based on the earnings quality of reported firms. Cluster analysis is conducted using governance best practice variables, firm size and an earnings quality variable. This paper’s results support the voluntary governance approach for smaller firms, but suggest that mandatory governance requirements could be beneficial for larger firms. Evidence suggests that a benefit accrues for larger firms with the adoption of governance best practice. Cluster analysis indicates that larger firms tend to exhibit higher levels of adoption of governance best practice than smaller firms. This paper adds to the literature by providing important information regarding the suitability of adoption of voluntary governance mechanisms in Australia.
Publisher: Wiley
Date: 23-07-2022
DOI: 10.1111/ACFI.12987
Abstract: The Commonwealth's stimulus package required the unexpected distribution of cash by superannuation funds to members during the Covid‐19 pandemic. We focus on disclosure and maintenance of an operational risk financial reserve and reporting of the statement of cash flows in annual reports by Australian superannuation funds. These disclosures represent mandated sources of information providing evidence of liquidity levels for meeting cash payouts and disclosure adherence. Many funds did not meet their statutory reporting requirements. More members and higher union board membership as measures of stakeholder power explain higher disclosure in support of managerial stakeholder theory.
Publisher: Emerald
Date: 20-03-2023
Abstract: Considering the importance of environmental lawsuits in the capital market specifically and society more generally, the authors examine whether environmental lawsuits are related to the cost of bank loans for the first time. This study uses a US s le of 7,684 loans from 1,409 in idual borrowing firms over the 1995–2015 period. The hypothesis is tested using lagged data from the year before the start of a bank loan, and firm fixed effects panel regression analysis is applied to control for correlated omitted variable bias. To further address endogeneity concerns, the authors use a difference in differences analysis that exploits the Deepwater Horizon oil spill on April 20, 2010, to establish causality. Finally, the authors use the entropy balancing method as an additional endogeneity check. The authors find a positive relationship between environmental lawsuits and firms' bank loan costs. The results are economically significant. In particular, a one standard deviation increase in environmental lawsuits is related to a 2.07 basis point increase in bank loan costs. The results are robust to various endogeneity checks. Cross-sectional analyses indicate that a poor information environment, weak corporate governance, and low corporate social responsibility (CSR) levels strengthen the positive relationship between environmental lawsuits and bank loan costs. Finally, additional analyses show that environmental lawsuits are significantly negatively related to the loan amount and maturity contract provisions. The authors provide new empirical evidence that increasing understanding of the economic consequences of environmental lawsuits on bank loan costs.
Publisher: Wiley
Date: 03-2021
DOI: 10.1111/ACFI.12767
Abstract: We explore whether firms with more conditionally conservative accounting practices have higher stock returns than other firms during the Covid‐19 outbreak. We find evidence that Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges applying more conditionally conservative reporting have lower declines in stock return performance during the Covid‐19 outbreak relative to other firms. We also find that the beneficial role of conditional conservatism is higher when firms have greater information asymmetry following the Covid‐19 pandemic. Our results are robust to various model specifications with four different measures of conservatism and an alternative return window.
Publisher: Emerald
Date: 2006
DOI: 10.1108/02686900610634775
Abstract: The purpose of this study is to explore the voluntary use of internal audit by Australian publicly listed companies and to identify factors that lead listed companies to have an internal audit function. Drawing on the Institute of Internal Auditors' definition of internal auditing, the paper predicts that internal audit use is associated with factors related to risk management, strong internal controls and strong corporate governance. To test the predictions, the study combines data from a survey of listed companies with information from corporate annual reports. The paper also provides descriptive information on the use of internal audit. The results indicate that only one‐third of the s le companies use internal audit. While size appears to be the dominant driver, there is also a strong association between internal audit and the level of commitment to risk management. However, the study finds only weak support for an association between the use of internal audit and strong corporate governance. A limitation of our study is that some of the variables in the model may not be good proxies for the factors being measured. Refinement of the model and the variables used provides an opportunity for future research. The limited use of internal audit by Australian companies has important implications for sound corporate governance. This is the first study that identifies factors associated with the use of internal audit by Australian listed companies.
Publisher: Emerald
Date: 08-2006
DOI: 10.1108/02686900610680530
Abstract: The purpose of this study is to examine the association between external audit fees, and board and audit committee characteristics of 736 Malaysian listed firms. It is hypothesised that good corporate governance practices reduce auditors' risk assessments, resulting in lower audit fees. Drawing on the existence of a clearly identifiable ethnic domination of board membership and ownership of Malaysian listed firms, the study also posits that Bumiputera‐controlled firms pay higher audit fees because of their weaker governance practices. This study employs a cross‐sectional analysis of 736 firms listed on the Bursa Malaysia for the financial year ending in 2003. Multiple regression analysis is used to estimate the relationships proposed in the hypotheses. Overall, the results of this study reveal that external audit fees are positively and significantly related to board independence, audit committee expertise, and the frequency of audit committee meetings. The study also finds a strong negative association between external audit fees and Bumiputera‐owned firms. An additional analysis into the internal governance structures of firms in the s le show that Bumiputera firms practice more favourable corporate governance practices compared to their non‐Bumiputera counterparts. This study is a unique contribution in that it provides data on corporate governance practices in Malaysia for a large s le in the period after the corporate governance reforms taken by Malaysian capital market regulators and participants. Previous studies have shown that Bumiputera‐controlled firms pay higher audit fees than non‐Bumiputera‐controlled firms. These studies have not tested theoretical explanations for this fee differential. A theoretical explanation provided in the current study is that Bumiputera‐controlled firms pay higher audit fees than non‐Bumiputera‐controlled firms partially because of differences in corporate governance practices. The study finds conflicting results with previous research suggesting that corporate governance practices have changed in Malaysia since the amendments of Bursa Malaysia Listing Requirements , 2001.
Publisher: Wiley
Date: 03-08-2011
Publisher: American Accounting Association
Date: 03-2023
Abstract: The standard principal-agent model predicts that, ceteris paribus, a negative relation exists between firm risk and CEO incentives or pay-performance sensitivity. We examine how a CEO’s risk tolerance (captured by national culture) affects pay-performance sensitivity using international data from 29 countries. We find that CEOs from countries with high (low) risk tolerance are associated with high (low) pay-performance sensitivity, suggesting that they require a low (high) risk premium. We contribute to the CEO compensation literature by introducing CEO risk tolerance, an overlooked factor, into CEO compensation contracts.
Publisher: Emerald
Date: 19-09-2023
Publisher: Emerald
Date: 19-09-2008
DOI: 10.1108/01140580810920218
Abstract: 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. The authors analyse 405 firm‐years data for agricultural firms over 1980‐1995. For comparison, they also analyse matched‐pair s les of 17 and 30 non‐agricultural firms for the drought years of 1983 and 1995, and matched‐pair s les of 19 non‐agricultural firms for the non‐drought years of 1986 and 1990, respectively. Both univariate and multivariate analyses are used to test the hypotheses. It is found that agricultural firms are more likely to take big baths in drought years than in non‐drought years. Further, in a given drought year, agricultural firms are more likely to take big baths than non‐agricultural firms. Further analyses of sales, profitability, and extraordinary and abnormal items support the idea that big baths reflect managerial opportunism rather than the economic consequences of droughts. Previous studies have not investigated the impact of natural calamities like flood and drought on accounting choices. This paper makes an original contribution to the accounting literature by documenting evidence on the extent to which an act of nature, over which management has little or no control, can influence accounting choices.
Publisher: SAGE Publications
Date: 12-2001
DOI: 10.1177/031289620102600202
Abstract: This paper investigates the composition of remuneration packages for middle managers and relates the structure of remuneration contracts to firm-specific attributes. A statutorily defined position in a single industry is studied as an ex le of middle management. This allows us to control for differences in task complexity across managers and industry-induced factors that could determine differences in remuneration contracts. Higher-risk firms are expected to pay their mine managers a greater proportion of variable salaries and market and/or accounting-based compensation than low-risk firms. Results indicate that high-risk firms pay a higher proportion of variable salaries and more compensation based on market and/or accounting performance.
Publisher: Emerald
Date: 16-09-2013
Publisher: Wiley
Date: 03-1998
Publisher: Wiley
Date: 02-10-2017
DOI: 10.1111/IJAU.12074
Publisher: Informa UK Limited
Date: 2014
DOI: 10.5172/SER.2.1-2.73
Publisher: Wiley
Date: 29-06-2017
DOI: 10.1111/ACFI.12153
Publisher: Wiley
Date: 18-11-2010
Publisher: Wiley
Date: 23-02-2010
Publisher: Wiley
Date: 05-1994
Publisher: Wiley
Date: 07-2006
Publisher: Elsevier BV
Date: 05-2021
Publisher: Wiley
Date: 12-11-2013
DOI: 10.1111/ACFI.12055
Publisher: Wiley
Date: 12-01-2019
DOI: 10.1111/ACFI.12258
Publisher: Wiley
Date: 26-01-2021
DOI: 10.1111/ACFI.12755
Abstract: We provide evidence on the consumer staples industry's commitment and accountability to employees prior to the COVID‐19 pandemic by analysing their employee‐related disclosures in annual reports. A high level of disclosure exists from 2004 to 2019 with 93 percent of the industry disclosing some information about employees. The highest categories of disclosure are remuneration, health and safety, and training and development. We find that total disclosure is significantly related to having employee share ownership, a Big 4 auditor, a larger board of directors, a majority independent board, independent chair, an audit and nomination committee and higher ROA.
Publisher: Wiley
Date: 13-11-2008
Publisher: Wiley
Date: 23-04-2016
DOI: 10.1111/ACFI.12119
No related grants have been discovered for Pamela Kent.