Business: Working Papers
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Item Open Access Financial Openness and Inflation: Recent Evidence(CAMA, Australian National University, 2023) Guender, Alfred; McHugh-Smith, HamishIn a model comprising a bank and goods-producing firm, this paper advances the hypothesis that financial openness should be inversely related to the rate of inflation. Our empirical analysis reveals a strong and robust inverse link between financial openness and CPI inflation in over 100 countries over the 1997-2016 period, adding weight to the argument that inflation in financially open economies is indeed lower. This result obtains for OECD countries as well as non-OECD countries. Trade openness in contrast bears no systematic relationship to inflation.Item Open Access The Mundellian Trilemma and Optimal Monetary Policy in a World of High Capital Mobility(Australian National University, 2021) Froyen RT; Guender, AlfredThis paper proposes that the Mundellian Trilemma remains valid despite the emergence of a world financial cycle. A clear distinction must be made between monetary policy independence and insulation of an open economy’s financial system. A flexible exchange rate allows an optimizing central bank to chart an independent course but does not insulate the domestic economy from foreign monetary or financial shocks. The gains from a flexible exchange rate may be considerable and vary in accordance with the mandate of the central bank. The Mundellian Trilemma highlights the acute shortage of policy instruments. We show that macroprudential policy in the form of an interest equalization tax, enhances the ability of an optimizing central bank to effectively stabilize domestic output and inflation in the presence of policy changes abroad and potentially destabilizing capital flows.Item Open Access Debt Finance and Economic Activity in the Euro-Area: Evidence on Asymmetric and Maturity Effects(2023) Das K; Donald L; Guender, AlfredThis paper presents a model of alternative sources of credit – bank vs. bond finance - to examine the credit substitution hypothesis. Our framework produces testable hypotheses about the behaviour of price- and quantity-based information variables. Examining data from ten Euro-area countries, we find that a credit spread outperforms a finance mix as a predictor of economic activity in both time series and pooled data regressions. There are clear signs of asymmetric and maturity effects in the data. Positive changes in the credit spread predict decreases in economic activity while negative changes bear no informative content. The asymmetric effect is exceptionally strong in pooled data and is present in short-term, long- term, and total credit spreads. In country-specific time-series regressions the asymmetric signalling property is strongest for the long-term credit spread. By contrast, we find no substantive evidence that changes in a quantity-based finance mix have robust predictive power.Item Open Access Value for money (effectiveness) auditing(University of Canterbury. Department of Accountancy, 1983) Glynn, John J.Item Open Access Strategic management accounting : a case example(University of Canterbury. Department of Accountancy, 1994) Lord, Beverley RaeAfter providing a comprehensive review of the literature, this paper presents a model of "strategic management accounting", that is, an extension of traditional management accounting that will collect, analyse and present information relevant to the strategy of the firm. A case study of a New Zealand manufacturing firm and its management accounting is then compared with the expected elements of the model. It is found that the firm incorporates collection of competitor information, and cost reduction through value chain and cost driver analysis. However, the emphasis on traditional management accounting roles is not always as expected for a product differentiator.Item Open Access The regulation of annual accounts in the Federal Republic of Germany(University of Canterbury. Department of Accountancy, 1997) Wysocki, Klaus vonItem Open Access Mosgiel Limited : cash flows and life events(University of Canterbury. Department of Accountancy, 1986) Robb, Alan JohnItem Open Access Social representations of intellectuals : the silence of accounting academics(University of Canterbury. Department of Accountancy, 1994) Sikka, PremAccounting vocabularies and practices have come to permeate everyday life. Accounting now influences not only the corporate sector, but also other sectors. New kinds of managerialisms are facilitated by accounting in fields such as hospitals, schools, universities, charities and trade unions. This has also been accompanied by an increase in the power of accountants and the institutions of accountancy who increasingly function as quasi-legislators. Such developments call for a (re)consideration of the role of accounting academics/intellectuals. The paper argues that in a world where major business and professional interests are organised to advance sectional interests, promote stereotyped images and limit public debates, accounting academics/intellectuals need to give visibility to what in a rush to pass institutional judgements is left out. This can help to broaden debates and mobilise potentialities for greater human participation.Item Open Access Issues in professional advanced accounting education : a survey of tax and auditing courses in Australia and New Zealand(University of Canterbury. Department of Accountancy, 1991) Hasseldine, John; Neale, Ann Y.Accounting education is arguably now attracting more attention, both scholarly and professional, than ever before, to educational issues such as core curricula, institution accreditation procedures and professional society admission requirements. This working paper presents background information about accounting education in the United States, Australia and New Zealand, before focussing special attention on the professional subjects, auditing and taxation. Within the accounting curriculum, traditionally these have been viewed as advanced level professional subjects with relevance to accounting practice. The paper contrasts and compares the teaching of these subjects in Australia and New Zealand, and discusses potential implications and improvements extending from recent United States education research.Item Open Access Social and environmental accounting in the western capitalist economies : a review(University of Canterbury. Department of Accountancy, 1990) Gray, RobSocial accounting has never really been part of the traditional orthodoxy of Western accounting theory or practice. It remains, however, both a fertile area of insights and ideas as well as a· potentially important social mechanism in the processes of accountability, control and the development of democracy. This paper (a) reviews the principal themes of social accounting as revealed by Western accounting literature and western organisational practice; (b) attempts to explain what social accounting is and can be; and (c) and to illustrate some of the problems preventing its wider acceptance. The paper then reviews two major and potentially influential themes: first, the notion of accountability and its implications for accounting; and, second, the new demands that the escalating environmental crisis throughout the world is placing upon the accounting process. It is argued that these two issues are the most important and demanding which accounting has had to face and this recent phenomenon of environmentalism has the most profound implications - not just for accounting but also for the survival of the species.Item Open Access The development of audit concentration in New Zealand, 1968-1983 : cause and consequence(University of Canterbury. Department of Accountancy, 1985) Gilling, Donald M.Item Open Access On the allocation of resources within universities(University of Canterbury. Department of Accountancy, 1994) Whittington, GeoffreyItem Open Access The macroeconomic determinants of the business failure rate in New Zealand : report of a preliminary investigation(University of Canterbury. Department of Accountancy, 1993) Alexander, Peter Bruce; Palmer, Craig D.This paper examines the business failure rate [BFR] in New Zealand over the period 1951 - 1991. It is an empirical OLS regression study that examines the extent to which the BFR can be attributed to monetary instability, because it is argued, that although inflationary pressures may appear to assist business cash flows initially it creates problems in subsequent periods. It also examines the extent to which the BFR can also be attributed to changes in central government current consumption and investment spending which result in a multiplier effect on aggregate demand. It examines the extent to which there is any empirical support for a political business cycle impact on the BFR and finally, it examines the extent to which the BFR can be attributed to a spill over - · effect of business failure impacting unfavourably on other firms. A three variable regression model which forecasts only a very slow recovery of the BFR in New Zealand is developedItem Open Access Hard business networks in New Zealand : an early evaluation of the Canterbury pilot(University of Canterbury. Department of Accountancy, 1995) Cragg, Paul B.; Vargo, JohnBuilding on initiatives in many countries, particularly Denmark and Norway, a pilot programme to foster business networks was launched in New Zealand in September 1994. Eleven network brokers were trained and after eight months 25 networks were in various stages of formation. This paper describes the Canterbury pilot, and provides an early evaluation of the programme to June 1995, ie, after only eight months of operation. A number of negative influences on network formation were identified, indicating areas for improvement to the programme. In particular, broker remuneration during the exploratory phase was viewed as essential. The Tradenz Board has subsequently decided to scale up from the pilot to a national programme, to be launched early in 1996.Item Open Access The management of tax evasion(University of Canterbury. Department of Accountancy, 1989) Bebbington, K. Jan; Hasseldine, D. JohnThis paper reviews previous research relating to tax evasion and outlines a framework of responses potentially available to Governments and/or Revenue Authorities to curb tax evasion. Recent New Zealand anti-evasion reforms arc described within this framework. It is evident that compliance has been a key design objective in their introduction. Several implications of these Governmental reforms for the accounting profession are suggested.Item Open Access Social representations of intellectuals : the silence of accounting academics(University of Canterbury. Department of Accountancy, 1994) Sikka, PremAccounting vocabularies and practices have come to permeate everyday life. Accounting now influences not only the corporate sector, but also other sectors. New kinds of managerialisms are facilitated by accounting in fields such as hospitals, schools, universities, charities and trade unions. This has also been accompanied by an increase in the power of accountants and the institutions of accountancy who increasingly function as quasi-legislators. Such developments call for a (re)consideration of the role of accounting academics/intellectuals. The paper argues that in a world where major business and professional interests are organised to advance sectional interests, promote stereotyped images and limit public debates, accounting academics/intellectuals need to give visibility to what in a rush to pass institutional judgements is left out. This can help to broaden debates and mobilise potentialities for greater human participation.Item Open Access Issues in print media liability(University of Canterbury. Department of Accountancy, 1991) Walsh, John P.; Hasseldine, D.J.This working paper highlights the inconsistent reporting of financial ratios in the New Zealand print media. Legal implications arising under contract and tort are evaluated for the users and publishers of these ratios. Undesirable consequences affecting accounting standards and the position of the small investor are posited and possible improvements suggested.Item Open Access Dividend policy : a New Zealand and American comparison(University of Canterbury. Department of Accountancy, 1992) Alexander, Peter Bruce; Blanchard, CarlThis replication study of the Baker, Farrelly & Edelman [1986] research into US financial managers' perceptions of Lintner's findings, and to clientele and signaling theory, reveals that the financial managers of publicly listed New Zealand companies have some markedly different views. While several reasons for these differences are briefly explored more comparative research is needed to examine the extent to which there 1s any degree of international acceptance of the major theoretical issues.Item Open Access Subsidies and monopoly profits at the MED(1985) Gilling, Donald M.Item Open Access Financial information used by bank lenders : an exploratory New Zealand survey(University of Canterbury. Department of Accountancy, 1993) Alexander, Peter BruceMost research into the information requirements of banks has focussed on the use of questionnaire surveys in which bank lending officers have been asked to indicate the relative importance of an information item included in a list of financial and non-financial variables. These lists of variables have included as few as 43 and as many as 79 items. Despite similarities the major studies have each drawn different conclusions. This study of New Zealand bank lending officers uses open-ended questions so as not to limit or prompt the respondents. Matters of debt and equity were of primary importance, followed by profitability, working capital management and forecasted financial statements. The paper concludes with a wide range of suggestions for further research.