Gidemy Elibray

Items

• Conflicts of Interest Arising From Personal Relationships
• Corporate social responsibility, country-level predispositions, and the consequences of choosing a level of disclosure
  We study the different levels of corporate social responsibility (CSR) disclosures of the largest European firms. We find that firms are more predisposed to disclose more CSR information in countries with: better investor protection, higher levels of democracy, more effective government services, higher quality regulations, more press freedom, and a lower commitment to environmental policies. Our analysis of the association of different levels of CSR disclosure with share prices indicates that a high level of CSR disclosure is associated with higher share prices, whereas a low level of CSR disclosure in sensitive industries is associated with lower share prices (compared to no disclosure). These results are also present when we analyse changes in CSR disclosure, and are robust to the inclusion of an accounting quality measure in our model. The overall effect of the association of higher levels of CSR disclosure with higher share prices is stronger in countries with more democracy, more government effectiveness, better regulatory quality, and more press freedom. Therefore, market participants find CSR disclosures more informative in countries where investors are in a better position to voice their concerns and where there is better regulation and more effective government implementation of regulations.
• The association between dividends and accruals quality
  This paper responds to a specific gap identified in the prior literature by examining whether dividend paying status and dividend size are associated with accruals quality, using three accruals‐based earnings quality proxies on a large sample of 2387 firm‐year observations over 17 years in a developing economy, South Africa. Univariate tests are also conducted to identify differences in characteristics between dividend and non‐dividend paying firms, and large and small dividend paying firms. The paper finds that dividend paying status is positively associated with accruals quality. This association remains robust over sub‐groups of firms that differ in size, growth, profitability, age, maturity, leverage, capital intensity and propensity to raise new capital. The prior literature is extended by using quintiles of dividend size to further investigate the association between dividend size and accruals quality. The findings include that larger dividend paying firms are associated with better accruals quality, and that this relationship is stronger among firms that pay average‐sized dividends. Additionally, there are significant differences in characteristics between dividend and non‐dividend paying firms and between large and small dividend paying firms. Based on these results, policymakers, regulators, legislators and boards may want to explore the use of dividend policy as a corporate governance mechanism.
• The influence of integrated reporting on business model and strategy disclosures
  Business model (BM) and strategy disclosures could provide investors with relevant information. This study offers a platform for future research on BM and strategy disclosure and is the first to analyse the change in BM and strategy disclosures after the introduction of an integrated reporting (IR) requirement, to propose a framework for disclosure quality analyses, and to analyse how companies disclose the relationship between their BM and strategy. The findings show that BMs and strategy were not disclosed before the requirement to publish an integrated report in South Africa, but were disclosed thereafter. By 2014, companies used diagrams, flow charts, and informative narratives of business plans and value chains. Companies now disclose their strategic goals more transparently, but still do not link these goals to BMs, key performance indicators, risks or opportunities. The findings provide insight into disclosures that improved since the IR requirement and matters that are still not fully disclosed, which would be of interest to regulators tasked with investor protection.
• Applying the probability recognition criterion to recognise a deferred tax asset for unused 'secondary tax on companies' credits
  According to AC 501, Accounting for 'Secondary Tax on Companies (STC)', a deferred tax asset for unused STC credits is recognised if it is probable that an entity will declare dividends against which unused STC credits can be used. This study examined the dividend declaration profile of companies recognising a deferred tax asset for unused STC credits to satisfy AC 501. In a literature review, the term 'probable' was analysed, showing that future dividend declarations are only regarded as 'probable' if their likelihood is 64% to 79%. A survey revealed that 45% of the surveyed companies with unused STC credits recognised a deferred tax asset for unused STC credits in their 2004 financial statements, and therefore believed they had satisfied the probability recognition criterion in AC 501. The survey also showed that companies that recognised a deferred tax asset have a dividend policy shareholders are familiar with, and most declare dividends annually. These two indicators can help assess the probability of future dividend declarations.
• Integrated reporting : developing an injustice assessment framework and a research agenda
  PURPOSE – Integrated reporting (IR) provides a joint overview of an organisation’s financial and sustainability performance and strategies. While the prior literature often critiques IR’s potential to entrench injustice, a systematic approach has not been followed. Therefore, this paper provides a systematic literature review, uncovering IR injustices, informing the development of an IR injustice assessment framework to identify injustices and a research agenda. DESIGN/METHODOLOGY/APPROACH – Combining Flyvbjerg’s phronetic social science and the phases of the IR idea journey to focus on injustice, this paper reviews published IR articles to inform a critique of IR. As a result, we identify specific injustice(s), the actors responsible for them, as well as the victims, as a basis for recommendations for praxis through the development of an IR injustice assessment framework and a research agenda. FINDINGS – We find that different approaches are needed in each phase of the IR idea journey. In the (re) generation phase, a pluralistic approach to IR is needed from the very beginning of the decision-making process. In the elaboration phase, the motivations and the features of IR are assessed. In the championing phase, IR champions support radical innovation, whereas IR opponents are obstructing its spread. In the production phase, the extent to which IR and integrated thinking are linked to the business model is assessed. Finally, we find that IR’s impact is often limited by the symbolic implementation of its tenets. PRACTICAL IMPLICATIONS – The findings suggest a need for companies to rethink the ways in which IR is implemented and used to analyse the ways in which IR is supported and disseminated within and outside the organisation, to focus on internal processes and to reflect on the expected impact of IR on the company’s stakeholders. ORIGINALTY/VALUE – This study represents the first systematic approach to identifying IR-related injustices, involving how IR adoption might create injustices and marginalise certain stakeholder groups, and offering recommendations for praxis. Furthermore, the paper details the role of IR in either mitigating or amplifying these injustices and develops a research agenda.
• The value-relevance of equity accounted carrying amounts and disclosed fair values of listed associates
  Equity accounting is a controversial accounting treatment. Although fair value measurement represents a potential alternative measurement base, information content may be lost under a pure fair value measurement approach. This study investigates the value-relevance of equity accounted carrying amounts and disclosed fair values of listed associates, using a sample of the largest firms listed in South Africa, Australia and the United Kingdom. The main finding is that the alternative measurement bases are incrementally value-relevant during the sample period of 31 December 2005 to 31 December 2011, implying that equity investors do not blindly accept either measurement base. Rather, investors include their own assessment of the intrinsic value of an entity’s listed associates in their valuations.
• Do team-based written or video explanations of course content enhance accounting students’ knowledge, communication, and teamwork skills?
  DATA AVAILABILITY : Data will be made available on request.
• The moderating effect of board gender diversity on the relation between corporate social responsibility and firm value
  We examine whether female board representation moderates the effect of corporate social responsibility (CSR) performance on firm value. Using a two-stage dynamic panel generalized method of moments method, we find that the effect of CSR strengths (CSR concerns) on the market assessed firm value, measured by Tobin’s Q and annual stock return, is incrementally more positive (more negative) for firms with greater female representation on the board. Further analysis suggests that female board representation positively moderates the effect of CSR strengths on firm financial performance measured by return on assets (ROA); however, female board representation does not significantly moderate the impact of CSR concerns on ROA. Our findings suggest that board gender diversity enhances the effect of positive CSR performance on firm value, but exacerbates the negative market reactions to CSR concerns. Overall, our evidence suggests that board gender diversity may enhance or destroy firm value depending on a firm’s social and environmental performance in dimensions other than diversity.
• Class absenteeism : reasons for non-attendance and the effect on academic performance
  PURPOSE – Other business education literature, particularly in the field of economics, has developed theories in respect of the reasons for non-attendance of lectures and the positive correlation between class attendance and academic performance. The aim of this paper is to determine the generalizability of these theories to a large accounting class in South Africa. DESIGN/METHODOLOGY/APPROACH – This paper is a differentiated replication of the study by Paisey and Paisey, who provided initial evidence of the generalizability of these theories to a small accounting class in Scotland, employing a research questionnaire and the analysis of quantitative and qualitative data. FINDINGS – The reasons given for the non-attendance of lectures generally correspond with those previously reported. Certain differences that are identified are likely a result of specific country or economic factors. This study found a significant positive correlation between class attendance and academic performance; however, the correlation is low and not very meaningful. Further analysis reveals some difference between language groups suggesting that culture and ethnicity may have an effect on the relationship between class attendance and academic performance. ORIGINALITY/VALUE – This paper raises questions as to the generalizability of prior research on class attendance and academic performance. The findings of this study suggest other factors, including students' economic, cultural and ethnic backgrounds, are likely to affect associations between class attendance and academic performance.
• Title A management accounting strategy for mining rehabilitation
  Thesis (D Com (Accounting Sciences))--University of Pretoria, 2007.
• How flexible is your company?
  No abstract available.
• The influence of integrated reporting on business model and strategy disclosures
  Business model and strategy disclosures could provide investors with relevant information. This study provides a platform for future research on business models and strategy disclosure and is the first to analyse the change in business model and strategy disclosures after the introduction of an integrated reporting requirement, to propose a framework for disclosure quality analyses, and to analyse how companies disclose the relationship between their business model and strategy. The findings show that business models and strategy were not disclosed before the requirement to publish an integrated report in South Africa, but were disclosed thereafter. By 2014, companies used diagrams, flow charts, and informative narratives of business plans and value chains. Companies now disclose their strategic goals more transparently, but still do not link these goals to business models, key performance indicators, risks, or opportunities. The findings provide insights into disclosures that improved since the IR requirement and matters that are still not fully disclosed, which would be of interest to regulators tasked with investor protection.
• Financial accounting and reporting in developing countries : a South African perspective
  South Africa is currently going through major changes in political, social and other arenas. It is therefore appropriate to consider the effect of these developments on financial reporting in a changing environment. This paper explores the origins of the current South African accounting system, given its status as a developing country, and endeavours to show that financial reporting needs to be amended to reflect the changing face of the South Africa's social fabric, its status as a developing country, as well as the emergence of new users of financial statements. Certain recommendations are made to address these issues.
• Effek van die beheeromgewing op werknemersbedrog
  Fraud, especially employee fraud, is a reality facing all businesses and it is increasing dramatically. In any organisation the control environment forms the basis for control. It has a pervasive influence on the manner in which business activities are structured, objectives established and risks assessed. The control environment is the manner in which management sets the "tone at the top". This article attempts to establish a link between the control environment and employee fraud. The results of this study, indicate that weak control environment creates a situation that is conductive to employee fraud. Management can therefore prevent or limit employee fraud by establishing a sound control environment.
• The extent of voluntary disclosure in corporate reports of South African listed industrial companies
  Thesis (DCom (Accounting))--University of Pretoria, 2007.
• South African career guidance counsellors' and mathematics teachers' perception of the accounting profession
  The shortage of accounting professionals is well documented. To address this shortage, greater numbers of school students should be attracted and enrolled in undergraduate accounting programmes. Unfortunately, school students may have misperceptions of the accounting profession. These misperceptions may result in potential entrants to the profession being lost to other professions. Secondary school teachers play an influential role in students’ perceptions of future careers. This survey assessed the perceptions of the secondary school career guidance counsellors and mathematics teachers’ perceptions of the accounting profession in South Africa in comparison to the medical, engineering and legal professions. The findings suggest that the accounting profession is held in lower esteem than the engineering and medical professions, however, in higher esteem than the legal profession. The findings confirm previous research conducted in the USA, Australasia and Japan. Marketing and recruitment programmes should educate secondary school teachers as to the true nature of the accounting profession.
• Sustainability, non-financial, integrated, and value reporting (extended external reporting) : a conceptual framework and an agenda for future research
  PURPOSE : This paper aims to develop a conceptual framework for extended external reporting (EER) influences (EERI), including sustainability, non-financial, integrated and value reporting. Using the Environmental Legitimacy, Accountability, and Proactivity (ELAP) framework as the base, we modify its proposed concepts and linkages using relevant conceptual models, prior reviews and findings of recent studies on EER. This paper presents contributions of the special issue on “non-financial and integrated reporting, governance and value creation” and avenues for future research. DESIGN/METHODOLOGY/APPROACH : Drawing on relevant conceptual models, prior reviews and recent EER studies, we reframed the ELAP framework into a framework that theorises the factors that affects, or are affected by, EER. FINDINGS : The EERI framework poses relationships between and within proactivity, external verification, accountability and legitimacy. It also consolidates possible determinants and consequences of EER. The papers published in this special issue contribute further insights on factors that influence reporting practices, processes and suggestions for capturing and communicating value creation information, and the value of integrated reports and assurance to capital providers. ORIGINALITY/VALUE : Along with the insights provided by papers in this special issue, the conceptual framework can be used to theorise influences of EER and guide future research.
• IFRS for SMEs is small, small enough?
  The IASB is moving closer and closer to issuing the International Financial Reporting Standard for Small and Medium-Sized Entities. The IFAC suggests that these smaller entities or "micro-entities" may have information needs that are more restricted than those of other small and medium enterprises, and compliance with full IFRS or proposed IFRS for SMEs may continue to be to burdensome. An IFAC report indicates that significant research needs to be conducted worldwide to identify exactly what the users' needs are in respect of micro-entities' financial reports. Of particular concern to IFAC is less developed economies in which low literacy levels, lack of accounting education and absence of computerized accounting systems, amongst other things, may be further impairing the ability of such entities to produce fairly presented financial information in accordance with IFRS.
• Gedifferensieerde verslagdoening in Suid-Afrika (Afrikaans)
  Thesis (DCom)--University of Pretoria, 2010.
• Wind of change blowing through financial instrument reporting
  Accounting standards as we know them have undergone rapid change. However, after the Memorandum of Understanding was signed between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in September 2002 and updated in 2008, changes have become more frequent. The aim of the Memorandum is to align International Financial Reporting Standards (IFRS) with US GAAP, thus creating a worldwide standard for accounting, and improving the comparability of financial statements, which is essential in a global economy.
• Loyalty programmes : defer revenue or provide for costs?
  The purpose of loyalty programs is to develop a long-standing customer relationship between the supplier and the consumer and to increase sales. There are the following two opposing views on how loyalty programs should be accounted for: 1. Credits granted to customers in a customer loyalty program can be accounted for as a separate component of the initial sales transaction in which the award credits are granted (a multiple elements approach). 2. Credits granted to customers in a customer loyalty program can be accounted for as an expense incurred in respect of the initial sale (a provision for future cost approach). In Draft Interpretation D20, Customer Loyalty Programs, the IFRIC rejects the use of the provision for future cost approach for all loyalty programs, as the IFRIC considers the multiple elements approach to be the most appropriate application of IAS 18. Although the multiple elements approach is logical and conceptually sound, one might argue that it is more complicated than recognizing the full revenue and an associated liability for the expected cost of supplying the awards.
• Disputed interpretations and active strategies of resistance during an audit regulatory debate
  PURPOSE : The paper aims to examine disputed interpretations of “key meanings” between the audit regulator and Big 4 firms during a highly contentious regulatory debate, showcasing their use of “strategies of resistance” to achieve their intended outcomes. DESIGN/METHODOLOGY/APPROACH : A qualitative analysis is performed of the discourse in a South African audit regulatory debate, set within the country's unique political and historical context. The analysis is informed by the theoretical construct of a “regulatory space” and an established typology of strategic responses to institutional pressures. FINDINGS : The study’s findings show how resistance to regulatory intentions from influential actors, notably the Big 4 firms, was dispelled. This was achieved by the regulator securing oversight independence, co-opting political support, shortening the debate timeline and unilaterally revising the interpretation of its statutory mandate. The regulator successfully incorporated race equality into its interpretation of how the public interest is advanced (in addition to audit quality). The social legitimacy of the Big 4 was then further undermined. The debate was highly contentious and unproductive and likely contributed to overall societal concerns regarding the legitimacy of, and the value ascribed to, the audit function. PRACTICAL IMPLICATIONS : A deeper appreciation of vested interests and differing interpretations of key concepts and regulatory logic could help to promote a less combative regulatory environment, in the interest of enhanced audit quality and the sustainability and legitimacy of the audit profession. ORIGINALITY/VALUE : The context provides an example, contrary to that observed in many jurisdictions, where the Big 4 fail to actively resist or even dilute significant regulatory reform. Furthermore, the findings indicate that traditional conceptions of what it means to serve “the public interest” may be evolving in favour of a more liberal social democratic interpretation.
• Qualitative accounting research : dispelling myths and developing a new research agenda
  This article deals with some common misconceptions about qualitative research. Qualitative studies are well suited to studying complex interconnections and relationships without reducing the complexity to simple numbers or variables. Rather than excluding outliers from a dataset, qualitative researchers are interested in these exceptions and often examine them in‐depth in order to develop better understandings and generate new theories on how accounting develops, functions and influences behaviour. New understandings and theory allow qualitative research to advance recommendations, extend the boundaries of accounting research, and make important contributions to both accounting theory and practice.
• The opinion of investors and lenders on red flags
  Red flags are events, conditions, situational pressures, opportunities or personal characteristics that may cause management to commit fraud for company benefit or for personal gain. Lenders and investors require red flags that are appropriate to their particular interests and their access to information on the enterprise and its management. A questionnaire was developed to survey the opinions of investors and lenders in South Africa regarding red flags. Although the response to the survey was disappointing, 46 questionnaires were returned, of which 29 were from lenders and 17 from investors. Both lenders and investors identified the red flag "dishonest or unethical management" as the most important. What is interesting about the three least important red flags is that they are all related to the operating characteristics of the business. The most important red flags focused on management characteristics and influence over the control environment. This seems to support prior research that the best predictive red flags are those on the attitudes and situational pressures on management.