Internal control system in small businesses

The purpose of this research is to evaluate the effectiveness of the financial part of the internal control system in an organisation. This research is conducted to examine the effectiveness of the financial system. This study adopted qualitative methods by using semi-structured interviews. The primary data collection was by face-to-face interviews. The number of participants was five people, including the manager, owner and two employees working in the organisation. Thematic analysis was used for the primary textual data. The main findings revealed that inventory is not classified according to its types, e.g. food and beverages. There is no separate account used for the financial transaction of food from beverages. The inventory is consumed randomly. In the restaurant no computer system is used, all the transactions are done manually. No allowances are made for urgent cases. There is an inability to detect fraud due to inaccurate manual recording. The organisation does not adopt any strategy of pricing, the process is made randomly. They do not have any future plans. They only have records that relate to sales, which are calculated at the end of each day. It is recommended that the inventory needs to be classified according to its types. The consumption of inventory should be made systematically. A computer system should be used to prevent errors and fraud. A skilled employee who can guide current employees regarding the operations of financial system in the organisation is needed

Financial planning

This research study is based on a small outlet. The company has many outlets all over New Zealand and expanded business to Australia through an online website. Financial planning has been proved to be one of the important factors for any organisation. A firm with a good or viable financial plan grows at a very fast pace and minimises its losses to some extent. The aim of this study is to evaluate the financial planning part of the internal control system of the organisation. It helps to understand the way organisation works and to determine the shortfalls of its system. The research focused on challenges and difficulties faced by vaping industries and suggested solutions to improve their financial planning. This research is qualitative in nature. Data collection was made through semi-structured interviews. The assistant manager of the company was interviewed using a series of questions. It was found that the company has some major problems in the area of finance as well as with its inventory control system. It was found that the company had no proper inventory system and was not able to generate targeted sales. It is recommended that the organisation should work upon lowering the prices of products and focus on different strategies of marketing. The organisation also should follow an established inventory system (LIFO, FIFO) in order to avoid wastage and random transactions

Improving inventory management systems

Inventory management is an important part of operations management of any organisation. Maintaining a balanced condition in the inventory operations, maintaining the efficiency of all systems as well as minimizing all losses, is a difficult process. The organisation involved in this research deals in retail convenience of dairy products and it is unable to produce detailed reports regarding economic conditions of the market due to its outdated accounting systems. The aim of the research is to study the issues of improper and outdated inventory record systems, accounting systems and inventory tracking systems in order to develop solutions to upgrade them. The research will also help to upgrade the weak cost saving system of the company along with solving the problem of time delays due to the location of its warehouses. Theory of just-in-time inventory theory, economic order theory, and economic production theory have been applied in this study. The major objective for application of these theories is to stabilise inventory management system along with the systems regarding cost analysis. Participants were specifically chosen for data collection method and the process was carried out ethically. The results exclusively pointed out the requirement of new technologies to digitalize the system and upgrade the current cost analysis system. Therefore, the research concluded that with incorporation of skilled staff and high-tech systems to manage organisational resources, the organisation can achieve a better inventory management system and minimise excessive expense

The impact of corporate social responsibility disclosure on financial performance of industrial companies in New Zealand

Corporate Social Responsibility (CSR) maintains the balance between internal and external factors of the organisations. The study aims to explore the relationship between the CSR disclosure and the Financial Performance (FP) of industrial organisations operating in New Zealand. Six industrial companies of New Zealand were selected randomly, and secondary data of their annual reports as well as CSR reports and online reports were prepared for a regression analysis. Average Share Price and CSR activities disclosed are the variables of the regression analysis. Findings revealed that there is a positive relationship between CSR disclosure and the FP of the industrial companies operating in New Zealand

Impact of corporate social responsibility disclosures on financial performance

The purpose of this study is to explore the impact of corporate social responsibility (CSR) disclosure on the financial performance of industrial companies operating in Australia. The study adopts a quantitative methodological approach. Using a statistical analysis technique, the study makes use of regression analysis to explore the relation between the independent variable (number of CSR achievements) and the dependent variable (average share price). The number of CSR achievements was extracted from annual reports using content analysis. The average share price was taken from the annual reports. The total sample is 10 industrial companies listed in Australian Stock Exchange (ASX), and the sample comprises 50 annual reports. The result of the analysis shows that overall there is positive relationship between CSR disclosure and the financial performance of listed Australian companies operating in the industrial sector of the economy. It is recommended that these companies pay more attention to their CSR disclosure, and view it to achieve better financial performance

Impact of board directors on financial performance

This study examines the impact of boards of directors on corporate financial performance. The aim of the research is to explore the relationship between the number of people on the board of directors and corporate financial performance. . Five retailer companies operating in New Zealand were selected. Regression analysis was used to explore the relationship between size of the board (independent variable) and the average share price (dependent variable). A quantitative approach was adopted for this study. Findings revealed that there is a positive association between the board size and the corporate financial performance. The study suggests that small board size should be encouraged, and the composition of independent directors should be sustained and improved upon to enhance corporate financial performance. The board of directors plays a vital role influencing the firm’s strategy and to authorise decision making

Impacts of financial reporting standards for registered charities

Financial reporting standards for registered charities were introduced in the year 2015 in New Zealand. Certain charities were also required to have their financial statements audited and reviewed by independent auditors. These legislative changes brought about a paradigm shift in the accounting and reporting practices of charities. The intention behind these changes were to improve public trust in the functioning of charities. This report aims to examine the impact of these reporting legislations on charities in Waikato region. It also aims to analyse the need for improving public trust in charities and the perception of charities on the new auditing requirements. A literature review has been performed to understand the history of charities regulation in New Zealand, the need for new financial reporting standards and the tier system based on which the new reporting requirements have been implemented. A qualitative research was conducted among participating accountants in Hamilton. The results have been analysed and recommendations have provided with an aim to improve the legislative changes implementation process for charities sector, particularly for smaller charities

Impact of corporate social responsibility disclosures on financial performance

The purpose of this study is to explore the impact of corporate social responsibility (CSR) disclosure on the financial performance of industrial companies operating in Australia. The study adopts a quantitative methodological approach. Using a statistical analysis technique, the study makes use of regression analysis to explore the relation between the independent variable (number of CSR achievements) and the dependent variable (average share price). The number of CSR achievements was extracted from annual reports using content analysis. The average share price was taken from the annual reports. The total sample is 10 industrial companies listed in Australian Stock Exchange (ASX), and the sample comprises 50 annual reports. The result of the analysis shows that overall there is positive relationship between CSR disclosure and the financial performance of listed Australian companies operating in the industrial sector of the economy. It is recommended that these companies pay more attention to their CSR disclosure, and view it to achieve better financial performance

Impact of earnings components on future profitability of banking and insurance companies in Jordan

This study aimed to examine the impact of a firm’s total accruals and operating cash flows on future profitability (one-year-ahead ROA) using a static model on unbalanced panel data for all the (15) banks and (18) insurance companies listed on the Amman Stock Exchange from 2002 to 2019. The final sample of the study, for analysis, consisted of 280 observations taken from the banking sector and 410 observations from the insurance sector. The pooled sample of banks’ observations showed no significant impact of a firm’s total accruals and operating cash flows on one-year-ahead ROA. This result is consistent with previous studies’ results, which are still under debate, especially in developed countries. The investors of the Jordanian banks are not counting on the accrual earnings components, which are affected by the different estimation procedures of GAAP and managerial discretion. The pooled sample of the insurance companies’ observations showed a significant impact of a firm’s total accruals and operating cash flows on one-year-ahead ROA. The result showed a higher variable value of a firm’s operating cash flow than the firm’s total accruals for the pooled sample of insurance companies. This result indicates a more incrementally negative relation between the growth in operating assets and a one-year-ahead ROA in addition to the probable impact of the lower rate of economic profits and the conservative bias in accounting

A salient stakeholder-driven model for integration of sustainability education into the accounting curriculum in Jordan

This thesis examines the perceptions of salient stakeholders in Jordan towards the importance of integrating sustainability education into the accounting curriculum. Employing salient stakeholder theory as a lens the thesis seeks to explore the possible integration of sustainability education into the Jordanian tertiary accounting curriculum. This study attempts to answer four research questions: 1. How important is it to integrate sustainability education into the Jordanian accounting curriculum? 2. What do salient stakeholders expect to find in the Jordanian accounting curriculum with regard to sustainability education? 3. What are the challenges and benefits of integrating sustainability education into the accounting curriculum of Jordanian business schools? 4. How can an integrated sustainability accounting education model be developed in the Jordanian accounting curriculum? This study adopts a mixed method approach. It first uses a quantitative research method to investigate the perceptions of a wide group of salient stakeholders in Jordan. A total of 966 questionnaires were distributed to five different groups of salient stakeholders (educators, students, practitioners, the government, and the accounting profession). There were 702 final usable responses with a response rate of approximately 72.6%. The data collected was analysed using IBM SPSS Statistics v.22 software. The study then attempted to gain insight into and understanding of the issue under investigation. Thus, the study adopted a qualitative research method and used semistructured interviews to understand the perceptions of 46 participants who reflected the same groups of stakeholders surveyed in the quantitative part of this study. A thematic analysis approach was used to analyse these 46 interviews. Nvivo 12 was used for this purpose. The study finally triangulated the quantitative and qualitative findings to develop a salient stakeholder driven-model for sustainability accounting education in Jordan. This study provides evidence that the accounting curriculum in Jordan does not appear to meet the needs of its stakeholders. The study also shows that all stakeholders in Jordan believe that it is important to integrate sustainability education into the current accounting curriculum and that there is a need for this integration first, because sustainability accounting education in Jordan will lead to transparency and accountability in the future, and second, because its integration into the curriculum will lead to an increase in the awareness and understanding of global sustainability issues not only amongst students but also in Jordanian society. The usefulness of integrating sustainability in the Jordanian accounting curriculum lies in its ability to enhance future sustainability practices. The study also shows that sustainability education meets the aims of Jordanian higher education, which should support the integration process. In addition, the study shows that stakeholders in Jordan want to see sustainability education integrated into the accounting curriculum in two different ways. First, they advocate adding sustainability accounting topics to individual accounting paper sessions (e.g., lectures) within the existing accounting curriculum structure and second, developing a new compulsory stand-alone course on sustainability accounting for inclusion in the existing accounting curriculum. According to the participants, both methods of integration should be applied in parallel. The study shows moreover that stakeholders focused on integrating specific sustainability accounting topics into the existing accounting curriculum. These include disclosure of corporate sustainability information, sustainability implementations in cost and management accounting, and the role of sustainability accounting information in the decision-making process and in solving local and global sustainability issues. Additionally, this study shows that the government sector is the strongest advocate for integrating sustainability education into the accounting curriculum, whereas the student group is the least supportive of the issue. The study found that accounting educators are more supportive of this integration than participants from the industrial sector and the accounting profession are. The study uncovered some of the challenges that may face integrating sustainability education into the accounting curriculum in Jordan. These challenges relate to the Higher Education Accreditation Committee’s (HEAC) power, legitimacy, and urgency. All accounting curriculum contents are controlled by this committee, rendering stakeholders powerless to change it. The lack of qualified educators to teach sustainability issues and the lack of appropriate textbooks are another challenge. Finally, the accounting curriculum itself is overcrowded. The study’s qualitative findings provide insight into the challenges and benefits of integrating sustainability education into the curriculum in Jordan. It was found that this integration faces different challenges including educational, governmental, institutional, ideological, and social challenges. Nevertheless, the findings show that sustainability accounting education brings various benefits for Jordan, as it benefits the accounting curriculum and education, the accounting students, the business organisations, and the overall society and environment. The qualitative findings also show that there is an inappropriate distribution of power, legitimacy, and urgency amongst salient stakeholders which prevents the implementation of sustainability accounting education in Jordan. Furthermore, the findings indicate a lack of synergies among salient stakeholders. These findings are important because they provide a guideline for how to develop a model to integrate sustainability education into the accounting curriculum in Jordan, something which has not been done before in Jordan. This study is important because it investigated wide groups of stakeholders and compared the support amongst them for the issue under investigation. This study’s Jordanian stakeholders share many common beliefs and behaviours with others in the Middle Eastern countries overall. Consequently, their opinions and perceptions offer a very good example which other studies undertaken in the Middle East and North Africa can follow. This thesis should assist the government of Jordan and other education providers to integrate sustainability education into the existing accounting curriculum. This integration may help bring about changes that improve the teaching of sustainability education from a business and accounting perspective. Universities, including business schools, are the main providers of sustainability education, yet these educational institutions need cooperation from the government, the industrial sector and the accounting profession to manage the development of the ongoing education process. There is a lack of research concerning how salient stakeholders perceive sustainability education within business schools particularly in developing nations such as Jordan. This PhD study contributes to the discussion on integrating sustainability education into business schools’ curriculum to produce future managers who are more responsible towards their environment and society. The thesis also contributes to theory not only because it employs salient stakeholder theory to develop a theoretical framework for Jordan, but also because that theory helps to explain the findings of the study in light of the stakeholders’ possession of power, legitimacy, and urgency. All research have limitations; this study was focussed on a developing country in the Middle East and may not be generalisable to other developing countries which also have significant sustainability issues. Recommendations for future research include the investigation of sustainability accounting education in other developing countries to compare findings that enables a better and more comprehensive understanding to the overall sustainability education position in business schools in developing countries