Australian Accounting Review最新文献

We investigate the impact of the power of senior executives with research and development (R&D) backgrounds on firms’ narrative innovation disclosures. Empirical results demonstrate that the presence of R&D expertise among senior managers significantly amplifies narrative innovation disclosure, with their power positively correlated with disclosure levels. This effect is more pronounced in non-state-owned enterprises, firms with lower market positions, those facing intense industry competition and with fewer analyst followings, and those operating in regions with greater market liberalisation. In addition, we find that the power of managers with R&D backgrounds facilitates both innovation input and output, thereby elevating disclosure levels. Enhanced disclosure reduces equity costs and attracts more government subsidies, potentially fostering a conducive environment for sustained innovative activities. Our research contributes to the literature by highlighting the role of R&D-oriented leadership in shaping corporate innovation strategies, motivating innovation disclosures and fostering the development of innovation ecosystems.

This paper investigates the impact of CFO turnover on value relevance. We focus on CFOs because they have primary responsibility for financial reporting quality. We hypothesise that CFO turnover leads to uncertainty about financial reporting quality and the timeliness of financial disclosures, thereby reducing value relevance. Using a sample of US publicly listed firms from 2013 to 2020, we find that CFO turnover reduces value relevance, and the negative relation between CFO turnover and value relevance resolves within three years. Furthermore, we find that CFO turnover following financial restatements does not affect value relevance. These results are consistent with the view that CFO turnover influences stakeholders’ uncertainty regarding financial reporting quality, which diminishes as the new CFO stays longer at the firm. In addition, the impact of CFO turnover on value relevance varies depending on the reason for turnover (e.g., restatement or dismissal). The results highlight the importance of CFO turnover in the market perception of financial reporting risk.

This study investigates whether and how audit committee monitoring mechanisms are associated with corporate innovation. Using panel data with the number of firm patents and citations as innovation output, we find that US public companies assigning members with financial expertise to audit committees, older and longer-tenure members, and larger audit committees attenuate corporate innovation activities. Effective audit committees reduce the firm's risk tolerance and hence there are lower innovation outputs. Our results reveal that companies in less competitive industries or with more institutional investor holdings have lower innovation output, confirming that audit committees’ intense monitoring impairs firm innovation. To ensure robustness, we perform several endogeneity tests, including difference-in-differences regressions, lagged regressors and firm fixed effects, and also control for CEO incentives. We obtain consistent results. Finally, the study findings suggest that audit committees setting too strict supervision regulations could limit future corporate development.

Offshoring has emerged as a strategic tool to enhance competitive advantage, but it also poses significant transactional challenges, such as opportunistic behaviour, information asymmetry, trust deficits and cultural differences between cross-border firms. Drawing from literature in accounting, international business, management and information systems, this study develops a conceptual framework that highlights the role of management control systems (MCSs) in addressing these challenges. The framework suggests that offshoring performance relies on designing MCSs that evolve over time as trust and relationships mature, particularly in managing cultural differences. This interdisciplinary approach expands our understanding of offshoring management by proposing tailored control portfolios that adapt across different stages of offshoring relationships: initial, transition and mature stages. The paper contributes to a deeper understanding of the complexities of offshoring and its potential to foster  trust-driven governance and long-term orientation in international business strategies.