Weitere Artikel dieser Ausgabe durch Wischen aufrufen
We discuss how the approach taken by regulators to address financial reporting issues has a significant influence on tone at the top. While tone must ultimately be established internally, regulators are more likely to have a positive impact on the quality of financial reporting by addressing organizational tone. A strong tone at the top should ensure that the financial reports are characterized by greater transparency and complete disclosures, and a regulator’s response will depend upon their perspective as to what motivates management. A compliance-based approach, rooted in agency theory’s assumption that managers act in their own best interests, seeks to mandate desirable behavior through elevated monitoring and reduced managerial discretion. Alternatively, an empowerment-based approach rooted in stewardship theory views managers as trustworthy guardians and grants them greater discretion without burdensome external monitoring. In practice, regulations fall on a continuum between these two approaches. To illustrate the continuum between compliance and empowerment, we present three cases in financial and tax reporting and examine the outcomes of these recent regulatory responses. We then provide conclusions regarding the effectiveness of each regulation by considering how tone was influenced within organizations.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
Albrecht, W. S., Albrecht, C. C., & Albrecht, C. O. (2004). Fraud and corporate executives: Agency, stewardship and broken trust. Journal of Forensic Accounting, V, 109–130.
Ashbaugh-Skaife, H., Collins, D. W., Kinney, W. R., & Lafond, R. (2008). The effect of SOX internal control deficiencies and their remediation on accrual quality. The Accounting Review, 83, 217–250. CrossRef
Baldwin, B. (1984). Segment earnings disclosure and the ability of security analysts to forecast earnings per share. The Accounting Review, 59(3), 376–389.
Berger, P. G., & Hann, R. (2003). The impact of SFAS 131 on information and monitoring. Journal of Accounting Research, 41(2), 163–223. CrossRef
Bitzer, V., & Glasbergen, P. (2010). Partnerships for sustainable change in cotton: An institutional analysis of African cases. Journal of Business Ethics, 93(2), 223–240. CrossRef
Botosan, C. A., & Stanford, M. (2005). Managers’ motives to withhold segment disclosures and the effect of SFAS 131 on analysts’ information environment. The Accounting Review, 80(3), 751–771. CrossRef
Bouillon, M. L., Ferrier, G. D., Stuebs, M. T., & West, T. D. (2006). The economic benefit of goal congruence and implications for management control systems. Journal of Accounting and Public Policy, 25, 265–298. CrossRef
Brickley, J., Smith, C., & Zimmerman, J. (2003). Corporate governance, ethics and organizational architecture. Journal of Applied Corporate Finance, 15(3), 34–45. CrossRef
Buck, T., Bruce, A., Main, B. G. M., & Udueni, H. (2003). Long term incentive plans, executive pay and UK company performance. Journal of Management Studies, 40(7), 1709–1727. CrossRef
Collins, D. W. (1976). Predicting earnings with sub-entity data: Some further evidence. Journal of Accounting Research, 14, 306–324. CrossRef
Committee of Sponsoring Organizations of the Treadway Commission (COSO). (1992). Internal Control: Integrated Framework: Framework. September. Coopers & Lybrand.
D’Aquila, J. M., & Bean, D. F. (2003). Does a tone at the top that fosters ethical decisions impact financial reporting decisions? An experimental analysis. International Business and Ethics Research Journal (IBER), 2(8), 41–54.
Davis, J. H., Shoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. The Academy of Management Review, 22(1), 20–47.
Deppe, L., & Omer, S. C. (2000). Disclosing disaggregated information. Journal of Accounting, 190(3), 47–52.
Donaldson, L., & Davis, J. (1991). Stewardship theory or agency theory, CEO governance and shareholder returns. Australian Journal of Management, 16, 49–64. CrossRef
Doyle, J. T., Ge, W., & McVay, S. (2007). Accruals quality and internal controls over financial reporting. The Accounting Review, 82(5), 1141–1170. CrossRef
Epstein, M., & Palepu, K. (1999). What financial analysts want. Strategic Finance, 80(10), 48–52.
Ettredge, M., Kwon, S. Y., Smith, D., & Zarowin, P. (2005). The impact of SFAS No. 131 business segment data on the market’s ability to anticipate future earnings. The Accounting Review, 80, 773–804. CrossRef
Fang, T., Gunterberg, C., & Larsson, E. (2010). Sourcing in an increasingly expensive China: Four Swedish cases. Journal of Business Ethics, 97(1), 119–138. CrossRef
Financial Accounting Foundation (FAF). (2012). Post- implementation review report on FASB Interpretation No. 48, accounting for uncertainty in income taxes. January, Norwalk, CT.
Financial Accounting Foundation (FAF). (2012). Post- implementation review report on FASB Statement No. 131, disclosures about segments of an enterprise and related information. December, Norwalk, CT.
Financial Accounting Standards Board (FASB). (1997). Disclosures about segments of an enterprise and related information. Statement of Financial Accounting Standards 131. Norwalk, CT: FASB.
Goh, B. W., & Li, D. (2011). Internal controls and conditional conservatism. The Accounting Review, 86(3), 975–1005. CrossRef
Harris, M. (1998). The association between competition and managers’ business segment reporting decisions. Journal of Accounting Research, 36, 111–128. CrossRef
Herrmann, D., & Thomas, W. B. (2000). An analysis of segment disclosures under SFAS 131 and SFAS 14. Accounting Horizons, 14(3), 287–302. CrossRef
Hunton, J. E., Hoitash, R., & Thibodeau, J. C. (2011). The relationship between perceived tone at the top and earnings quality. Contemporary Accounting Research, 28, 1190–1224. CrossRef
International Federation of Accountants (IFAC). (2007). Tone at the top and audit quality. New York, NY: Transnational Auditor Committee.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. CrossRef
Johnstone, K., Li, C., & Rupley, K. (2011). Changes in corporate governance associated with the revelation of internal control material weaknesses and their subsequent remediation. Contemporary Accounting Research, 28, 331–383. CrossRef
Jones, T. M. (1991). Ethical decision making by individual organizations: An issue-contingent model. Academy of Management Review, 16(2), 366–395.
Kerr, S. (2003). The best-laid incentive plans. Harvard Business Review, 81(1), 27–37.
Kinney, W. R. (1971). Predicting earnings: Entity v. sub-entity data. Journal of Accounting Research, 9, 112–136. CrossRef
Kinney, W.R., Martin, R.D., & Shepardson, M.L. (2012). Some observations about SOX 404(b) control process audits. Working paper, University of Texas.
Lail, B. E., Thomas, W. B., & Winterbotham, G. (2013). Segment classification shifting using the “Corporate/Other” segment. Accounting Horizons, forthcoming.
Lennox, C.S., Lisowsky, P. & Pittman, J. (2013). Tax aggressiveness and accounting fraud. Journal of Accounting Research, forthcoming.
Libby, R., & Brown, T. (2013). Financial statement disaggregation decisions and auditors’ tolerance for misstatement. The Accounting Review, 88(2), 641–665. CrossRef
Maines, L. A., McDaniel, L. S., & Harris, M. S. (1997). Implications of proposed segment reporting for financial analysts’ information judgments. Journal of Accounting Research, 35(3), 1–24. CrossRef
Mària, J. F., & Lozano, J. M. (2010). Responsible leaders for inclusive globalization: Cases in Nicaragua and the Democratic Republic of the Congo. Journal of Business Ethics, 93(1), 93–111. CrossRef
McGrath, S., Siegel, A., Dunfee, T. W., Glazer, A. S., & Jaenicke, H. R. (2001). Assessing your audit firm’s independence: Guidance for Audit Committee Members. Corporate Board Member (Autumn).
Munsif, V., Raghunandan, K., Rama, D. V., & Singhvi, M. (2011). Audit fees after remediation of internal control weaknesses. Accounting Horizons, 25(1), 87–105. CrossRef
Paul, J. W., & Largay, J. A. (2005). Does the “management approach” contribute to segment reporting transparency? Business Horizons, 48(4), 303–310. CrossRef
Penno, M. C. (2005). Analytical auditing research: New directions from several disciplines. Working paper. Available at SSRN: http://ssrn.com/abstract=497963.
Rest, J. (1986). Moral development: Advances in research and theory. New York: Praeger.
Rice, S., & Weber, D. (2012). How effective is internal control reporting under SOX 404? Determinants of the (non-) disclosure of existing material weaknesses. Journal of Accounting Research, 50(3), 811–843. CrossRef
Rockness, H., & Rockness, J. (2005). Legislated ethics: From Enron to Sarbanes-Oxley, the impact of corporate America. Journal of Business Ethics, 57, 31–54. CrossRef
Rosanas, J. M., & Velilla, M. (2005). The ethics of management control systems: Developing technical and moral values. Journal of Business Ethics, 57, 83–96. CrossRef
Schwartz, M. S., Dunfee, T. W., & Kline, M. J. (2005). Tone at the top: An ethics code for directors? Journal of Business Ethics, 58, 79–100. CrossRef
Sundaramurthy, C., & Lewis, M. (2003). Control and collaboration: Paradoxes of government. Academy of Management Review, 28(3), 397–416.
Thomas, W. B. (2000). The value-relevance of geographic segment earnings disclosures under SFAS 14. Journal of International Financial Management and Accounting, 11, 133–155. CrossRef
Tomohara, A., Lee, H., & Lee, S. (2012). Did FIN 48 increase companies’ tax payments? Trade-off between disclosure and tax burdens. Applied Economics, 44, 4239–4248. CrossRef
- The Influence of Regulatory Approach on Tone at the Top
- Springer Netherlands
Neuer Inhalt/© Stellmach, Neuer Inhalt/© BBL, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, Neuer Inhalt/© hww, So bewältigen Sie Stress im Fernstudium/© granata68 | stock.adobe.com | AdobeStock