Articles

Letter from the Editor: Why Are Papers Desk Rejected at European Accounting Review? (note)

H. STOLOWY

European Accounting Review

juillet 2017, vol. 26, n°3, pp.411-418

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

http://www.tandfonline.com/doi/full/10.1080/09638180.2017.1347360


The aim of this note is to present desk rejections made by EAR in 2016 and also to provide some suggestions to authors in order to avoid these desk rejections.(Partial reproduction of the Letter published in the EAA Newsletter No. 57, March 2017)Desk rejection is often feared by authors and generates a lot of disappointment. As explained by Craig (2010 Craig, J. B. (2010). Desk rejection: How to avoid being hit by a returning boomerang. Family Business Review, 23, 306–309. doi: 10.1177/0894486510386024[Crossref], [Web of Science ®], [Google Scholar], p. 306), ‘the stories of woe are commonplace in conference hotel bars, campus coffee shops, and faculty photocopy room conversations, and reactions are shared in colorful language in various post rejection emails and phone calls among disenchanted authors’.In a previous newsletter,11 http://www.eaa-online.org/userfiles/file/EAA-Newsletter-Nr39-2012(3).pdf.View all notes Salvador Carmona, Past Editor of EAR, had written a text on ‘Avoiding desk rejections’. In the present text, I would like to extend my predecessor’s view by adding some new insights, based on statistics drawn from my first year of editorship at EAR. These statistics will also highlight the unfortunate development of ethical issues.The aim of the present letter is not only to provide some suggestions to authors in order to avoid these desk rejections but also to explain the functioning of our journal in full transparency

Media bias and the persistence of the expectation gap: An analysis of press articles on corporate fraud

J. COHEN, Y. DING, C. LESAGE, H. STOLOWY

Journal of Business Ethics

septembre 2017, vol. 144, n°3, pp.637-659

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : Expectation gap, Media bias, Corporate fraud, Management behavior, Press, Fraud-related professional standards

https://link.springer.com/article/10.1007/s10551-015-2851-6


Prior research has documented the continued existence of an expectation gap, defined as the divergence between the public’s and the profession’s conceptions of auditor’s duties, despite the auditing profession’s attempt to adopt standards and practices to close this gap. In this paper, we consider one potential explanation for the persistence of the expectation gap: the role of media bias in shaping public opinion and views. We analyze press articles covering 40 U.S. corporate fraud cases discovered between 1992 and 2011. We compare the auditor’s duties, described by the auditing standards, with the description of the fraud cases as found in the press articles. We draw upon prior research to identify three sources of the expectation gap: deficient performance, deficient standards, and unreasonable expectations. The results of our analysis provide evidence that (1) the performance gap can be reduced by strengthening auditor’s willingness and ability to apply existing auditing standards concerning fraud detection; (2) the standards gap can be narrowed by improving existing auditing standards; and (3) unreasonable expectations, however, involve elements beyond the profession’s sphere of control. As a result, the expectation gap is unlikely to disappear given the media’s tendency to bias, with an overemphasis of unreasonable expectations in their coverage of frauds and press articles tending to reinforce the view that the auditor should take more responsibility for detecting fraud, irrespective of whether this is feasible at a reasonable cost. In addition to the primary role of the press in perpetuating the expectation gap, a second reason for continuation of the expectation gap is that the rational auditor will have difficulty in assessing subjective components of fraudulent behavior.

The Effect of Business and Financial Market Cycles on Credit Ratings: Evidence from the Last Two Decades

G. LOBO, L. PAUGAM, H. STOLOWY, P. ASTOLFI

Abacus

mars 2017, vol. 53, n°1, pp.59-93

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : Business cycles; Credit rating agencies; Financial marketcycles; Investor reaction

http://onlinelibrary.wiley.com/doi/10.1111/abac.12096/epdf


We analyze the effect of business and financial market cycles on creditratings using a sample of firms from the Russell 3000 index that are ratedby Standard and Poor’s over the period 1986–2012. We also examine inves-tor reaction to credit rating actions in different stages of business andfinancial market cycles. We document that credit rating agencies areinfluenced by business and financial market cycles; they assign lower creditratings during downturns of business and financial market cycles andhigher ratings during upturns. Our study is the first to find strong evidenceof pro-cyclicality in credit ratings using a long window. We also documentstronger investor reaction to negative credit rating actions during down-turns. Our results confirm theoretical predictions and inform regulators

The Effect of Joint Auditor Pair Composition on Audit Quality: Evidence from Impairment Tests

G. LOBO, L. PAUGAM, D. ZHANG, J.-F. CASTA

Contemporary Accounting Research

Spring 2017, vol. 34, n°1, pp.118-153

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : Joint Audits, Audit Quality, Auditor Independence, Impairment Testing, Conservatism

http://onlinelibrary.wiley.com/doi/10.1111/1911-3846.12244/full


The Relationship between Lack of Controllability and Proactive Work Behaviour: An Empirical Analysis of Competing Theoretical Explanations

M. BURKERT, F. M. FISCHER, F. HOOS, K. SCHUHMACHER

Accounting and Business Research

2017, vol. 47, n°2, pp.144-171

Départements : Comptabilité et Contrôle de Gestion

Mots clés : controllability principle, management control systems, role theory, role conflict, flexible role orientation, proactive work behaviour

http://www.tandfonline.com/doi/full/10.1080/00014788.2016.1222262


The controllability principle suggests evaluating managers solely based on performance measures they can control. In practice, however, companies often disregard this principle. Therefore, our study addresses organisational benefits linked to the lack of controllability in measures used for managers’ performance evaluations. We draw on important case-based findings to establish a positive ‘base relationship’ between lack of controllability and proactive work behaviour. We test this base relationship with a large-scale sample and find that companies encourage higher levels of proactive work behaviour when they rely on less controllable performance measures. Drawing on recent developments in role theory, we advance previous research and extend the base model by including the theoretical construct of flexible role orientation. We examine different mechanisms through which flexible role orientation potentially impacts the base model. Using survey responses from 432 managers, we find evidence for a mediation model as opposed to an interaction model. Specifically, we find that lack of controllability enhances role conflict, which in turn induces more flexible role orientations ultimately resulting in higher levels of proactive work behaviour

Themed Section on Financial Accounting as Social and Organizational Practice: Exploring the work of financial reporting (Editorial)

K. ROBSON, J. YOUNG, M. POWER

Accounting Organizations and Society

janvier 2017, vol. 56, pp.35-37

Départements : Comptabilité et Contrôle de Gestion

https://ac.els-cdn.com/S0361368217300016/1-s2.0-S0361368217300016-main.pdf?_tid=939073fe-fc7b-45f7-885e-3de60a3dabc3&acdnat=1527502362_1a45e59fdd132efd541e12c8cc546542


When being a partner means more: The external role of football club management accountants

F. JANIN

Management Accounting Research

juin 2017, vol. 35, pp.5-19

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Management accountant, External role, Business partner, Critical competences, Institutional domination, Popular culture

https://www.sciencedirect.com/science/article/pii/S104450051630021X


tThe literature on management accountants mainly discusses them in terms of how they relate to theorganisation’s internal actors. Whether considered as routine and technical ‘bookkeepers’ or as serving amore rewarding ‘business partner’ role, it is their relationship with corporate management and/or opera-tional managers that is often put under the spotlight. This paper explores the extent to which managementaccountants can play an active role in how their organisation interacts with the external environment. Theresearch is based on ethnographic immersion in the management accounting department of a French pro-fessional football club. It shows that management accountants can extend externally the business partnerrole they play within the organisation against the industry’s financial regulatory body. This external rolebrings to the fore the ‘critical competences’ (Boltanski, 2009) mobilised by management accountants tochallenge the institutional domination of the regulatory body. By influencing the rules and practices withwhich their organisation must comply, management accountants engender its possible ‘emancipation’ (Boltanski, 2009)

Budgeting in times of economic crisis

S. BECKER, M. MAHLENDORF, U. SCHÄFFER, M. THATEN

Contemporary Accounting Research

Winter 2016, vol. 33, n°4, pp.1489–1517

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : Budgeting, budgeting functions, economic crisis, crisis management

http://ssrn.com/abstract=2605359


This paper examines how corporate reliance on budgets is affected by major changes in the economic environment. We combine survey and archival data from the economic crisis that began in 2008. The results indicate that, as a result of the economic crisis, budgeting became more important for planning and resource allocation but less important for performance evaluation. Additional evidence from interviews and data gathered in a focus group further illustrate these results and show the changes organizations have introduced to respond to the economic crisis. Taken together, and contrary to more general conclusions from the literature such as an overall increase or decrease in the importance of budgeting, we find that companies emphasize certain budgeting functions over others during economic crises

Cost (In)Efficiency and Institutional Pressures in Nursing Home Chains

T. JEROME, C. MARTIN

European Accounting Review

2016, vol. 25, n°4, pp.687-718

Départements : Comptabilité et Contrôle de Gestion

https://www.tandfonline.com/doi/full/10.1080/09638180.2016.1169937


Over the past 10 years, merger activities in the private for-profit nursing home industry have been increasing in Europe. In this paper, we investigate chain affiliation’s influence on the performance of lucrative nursing homes. We measure performance using a cost frontier estimated by stochastic analysis on a sample of 370 French for-profit nursing homes. We find that cost efficiency decreases with the number of facilities in a chain. We also identify different external actor types in nursing homes’ institutional environment and test their influence. We show that nursing home chains’ cost efficiency improves when local governments and shareholders exert pressure. Our results are robust to alternative model specifications and another definition of costs. Overall, our findings inform researchers, as well as standards setters, of the relevance of chain affiliation and of the role of institutional pressures regarding cost containment at the nursing home level.

Disciplinary practices in the French auditing profession

C. LESAGE, G. HOTTEGINDRE, C. R. BAKER

Accounting, Auditing and Accountability Journal

2016, vol. 29, n°1, pp.11-42

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Content analysis, Audit quality, Auditing, Disciplinary practices, Public accounting profession, Public interest

http://www.emeraldinsight.com/doi/full/10.1108/AAAJ-12-2012-1169


Purpose – The purpose of this paper is to contribute to understand the role of the statutory auditing profession in France. The study is theoretically based on distinctions between a functionalist view of professions and a neo-weberian view. Prior research, conducted in Anglo-American countries has shown that the auditing profession has focussed primarily on protecting the private interests of the profession. Hence, there is a need to conduct research on this topic in a code law country where the state is expected to play a significant role in protecting the public interest.Design/methodology/approach – The methodology involves a content analysis of 148 disciplinary decisions issued against statutory auditors in France from 1989 to 2006. This analysis identified 21 types of violations grouped into public interest or private interest offences. Because visible offences are public and are more likely to threaten the reputation of the profession, these types of decisions are also studied with respect to their visibility.Findings – The results reveal that in a code law country such as France the auditing profession tends to defend both the public interest as well as its private interests. The results also support the “visibility” effect.Research limitations/implications – The written disciplinary decisions have been anonymized so that the names of the auditors and the clients cannot be identified.Originality/value – This paper differs from previous studies conducted in the Anglo-American context which show an emphasis on protecting the private interests of the auditing profession. Moreover, this study reveals the existence of “mixed” offences and underlines that a profession primarily focusses on these cases. Thus, the work reconciles in part the functionalist and neo-weberian perspectives. Lastly, this paper confirms the importance of the visibility effect


JavaScriptSettings