Asian Review of Accounting

Satoshi Sugahara; Kazuo Hiramatsu; Greg Boland

doi: 10.1108/13217340910956487pmid: N/A

Purpose – The purpose of this paper is to investigate the factors influencing career intentions toward becoming a Certified Public Accountant (CPA) by students who are studying at the accounting schools in Japan. This paper focused on students' work experience, prior major/s at their undergraduate level, gender, attitude toward the opportunity cost of becoming a CPA and their perceptions of the CPA profession. Design/methodology/approach – The sample comprised students studying at 13 accounting schools in Japan. A questionnaire was given to these students in order to empirically examine the relationship between these influential factors and their career intention, with particular reference to those who intended to pursue a CPA career. Those studying in these accounting schools generally consist of two type of students; those who want to become a CPA and those who merely want to brush up on their accounting skills and do not wish to sit the CPA entrance exams. A total of 349 effective responses were analysed. Findings – Findings indicate that students who have work experience and major in disciplines other than accounting or business are more reluctant to become a CPA. This is in direct contrast to one of the objectives for the CPA reform scheme in Japan, which is to extend the diversity of CPA candidature. Originality/value – This paper is the first study undertaken in Japan to successfully provide a new dimension on the factors that influence career intention of students aspiring to become a CPA.

Abdulrahman Al‐Twaijry

doi: 10.1108/13217340910956496pmid: N/A

Purpose – The corporate governance should look at the investment on intangible assets (ITAs) from two angles: its influence on future growth and the influence of other factors on ITA. Therefore, the purpose of this paper is first, to empirically investigate the relationship between investment on ITAs and future growth in the manufacturing sector earnings and second, to examine the effect of various variables on the level of investments on ITA in this sector. Design/methodology/approach – Based on data of 384 Japanese listed manufacturing companies founded before 2001, four regression models were developed and estimated using ordinary least squares. In part, this study extends the work of Singh and Faircloth, which examined the relationship between research and development (R&D) expenditure and corporate leverage, by taking into account the other ITAs and other factors. The dependent variable used in the first model was the corporate growth and explanatory variables are changes in the ITAs (ΔITA), whilst in the other models, total investments on ITA (and changes in the investments on ITAs) against the company's size, sector, age, financial status, dividends, cash flow, and growth are regressed. Both logs and lags were used with the model's variables. Findings – The results showed that the mean of total investment on ITA increased heavily (85 percent) between 2001 and 2005. However, ITA represents, on average, only about 1.2 percent of total assets and 1.3 percent of total sales. Regression results suggest that investment on ITA forecasts around 15 percent of the variation in a company's future growth. The company's size, segment, financial status, dividends, cash flow and growth are significant variables which predict nearly half of the variation in the investments on ITA. The inclusion of two lags of the appropriate variables in the model provides better results and the adjusted R 2 increased significantly to reach, on average, 0.60. Originality/value – In the internet era, companies have become heavily involved in larger investments on ITAs (intellectual capital). Since the research in the area of ITAs is undersized and much of it was directed towards R&D, this study contributes to this area of study showing how can investments on ITA in the manufacturing sector be an important element for future growth which concerns corporate governance.

Dennis W. Taylor

doi: 10.1108/13217340910956504pmid: N/A

Purpose – The objective of this study is to compare the costs to financial statement prepares of making the transition to International Financial Reporting Standards (IFRSs) relative to the benefits to financial statement users from receiving “higher quality” IFRS‐based information (measured as incremental value‐relevance for listed companies in the UK, Hong Kong and Singapore). These countries had different approaches to harmonization leading up to IFRS adoption. Design/methodology/approach – This study is based on secondary data from financial statements and share market databases for a sample of 150 randomly selected listed companies in three countries for the year of first‐time adoption of IFRSs. Findings – Results show that the extent and cost of adjustments to financial statements of UK companies at first‐time adoption of IFRSs is greater than companies in Hong Kong and, in turn, Singapore. But, in each of the three countries, financial statements prepared under IFRSs generate insignificant benefits to users in terms of providing incrementally more value‐relevant information than financial statements prepared under local generally accepted reporting practices. The self‐develop‐then‐harmonize strategy of the UK's Accounting Standards Board caused companies to incur higher costs‐to‐benefits on adoption of IFRSs than the selective‐importing‐of International Accounting Standards strategy in Hong Kong and Singapore. Originality/value – The evidence enables a retrospective evaluation of historically different national standards setting strategies in terms of the cost‐benefit outcomes at time of adoption of IFRSs.

Ali Saleh Al Arussi; Mohamad Hisyam Selamat; Mustafa Mohd Hanefah

doi: 10.1108/13217340910956513pmid: N/A

Purpose – The purpose of this paper is to investigate whether the voluntary financial and environmental disclosures through the internet can be explained by the same determinants as in conventional reporting. Specifically, this paper examines the relationship between the extent of financial and environmental disclosures on the internet and six variables, namely, ethnicity of chief executive officer (CEO), leverage, level of technology, existence of dominant personalities, profitability, and firm size. Design/methodology/approach – Six hypotheses were tested using data collected from 201 Malaysian listed companies on the Bursa Malaysia's Main and Second Boards for the financial year 2005. A regression model is utilized to analyze the results of this paper and this is in tandem with the previous studies. Findings – The results indicate that level of technology, ethnicity of CEO and firm size are determinants of both internet financial and environmental disclosures. However, the existence of a dominant personality is found to negatively affect the level of financial disclosures but not environmental disclosures. The other variables did not show any significant relationship with either financial or environmental disclosures. Originality/value – This paper investigates whether internet financial and environmental disclosures can be explained by the same determinants used in other similar studies. The results indicate that only level of technology, ethnicity of CEO and firm size are found to be significant for both internet financial and environmental disclosures.

Abdel Halabi

doi: 10.1108/13217340910956522pmid: N/A

Purpose – The purpose of this paper is to examine the academic performance of students in their first full year of accounting at Monash University to determine the variability in the marks in the second accounting subject that can be explained by performance in the first. Monash University has a number of campuses in Australia and internationally, and analysis is also undertaken on the variability by campus. Design/methodology/approach – Data for this paper are obtained from the end of semester marks in the first and second accounting subject. The variability in the marks is analysed using the co‐efficient of determination. Findings – The findings show there is some relationship between the marks obtained in first two accounting subjects, however the results show that the variability in the marks in the second subject that can be explained by the knowledge in the first subject accounts for between 25 and 28 per cent. The analysis by campus also shows wide discrepancy. Practical implications – The results of this paper have implications for academics teaching the first two introductory subjects and students. Originality/value – While the advantage of prior knowledge is well documented, this paper provides more insight on the conflicting research findings on the value of the prior knowledge of the first accounting subject on the second. It also provides a statistical measure of that accounts for the variability. The paper also examines the results of students in the first and second accounting subject at various campuses as very little prior research has addressed this issue.