Whistleblowing and Good Governance

The Sarbanes-Oxley Act of 2002 (SOX) has forever changed corporate governance for publicly held corporations. Recent data suggest that the costs of compliance with the provisions of SOX can be very significant. Problems exist in the government and nonprofit sectors just as they do in the corporate sector. Recent alleged problems at the World Bank include kickbacks, payoffs, bribery, embezzlement, and collusive bidding. In 2002, the United Way scandal came to the public\u27s attention. Its aftermath has had a dramatic impact on fundraising. Even universities are not immune from scandals. Organizations of all kinds should better understand what whistleblowing is, what the components of a whistleblowing policy are, and where to turn for more information. All organizations, including universities, governmental entities, and nonprofits, should consider implementing whistleblowing provisions. The purpose of this article is to increase awareness of the need for whistleblower policies for universities, governmental entities, and nonprofit organizations

An Empirical Examination of Whistleblowing Policies and Mechanisms at Universities

This study empirically examines the implementation of whistleblowing policies and mechanisms at universities

Managers’ Incentives to Manipulate Earnings in Management Buyout Contests: An Examination of How Corporate Governance and Market Mechanisms Mitigate Earnings Management

In an MBO contest, managers offer to buy the firm from public shareholders at a premium to the current market price and thus have incentives to buy the firm “cheap.” Prior studies have found evidence that managers, on average, manipulate earnings downward prior to an MBO offer in an attempt to convince shareholders that their offer is fair. We extend this finding by attempting to explain the substantial cross sectional variation in the degree of manipulation across firms reported in these earlier studies. We find that boards with more independent directors and higher levels of incentive based compensation for the CEO act to discourage such manipulation. Additionally, our results show that some shareholders, minority and preexisting large outside blockholders, appear to be misled by the manipulation. However, new blockholders that acquire large shareholdings in the year before the offer are not. We also discover that managers are more likely to revise their bid upwards when the manipulation is most severe and that these new blockholders put pressure on managers to make these revisions. Finally, we investigate whether the manipulation has an impact on the final buyout contest outcome. We find that downward manipulation does not prevent managers from retaining control of the firm; however, they pay a higher premium

Measuring And Changing The Values Of Accounting Students

Although prior research has consistently shown that personal values influence behavior, limited research and curricular activity have been conducted with respect to the role of personal values in accounting. This purpose of this paper is to propose a methodology that accounting programs can use to measure the personal values of students. Specifically, we examine the Muser and Orke Typology for measuring personal values. Using students from a comprehensive, private university in the Midwest, we discuss the administration of the instrument and the evaluation of the results. The paper concludes with a detailed description of how accounting programs can apply this methodology to change students’ values toward a desired goal

The Coming Accounting Crisis

The accounting profession is facing a potential crisis not only from the overall shortage of accounting faculty driven by smaller numbers of new faculty entering the profession as many existing faculty retire but also from changes that have been less well documented.  This includes: (1) changes in attitude towards the roles of teaching, service and research and (2) changes in performance measurement and compensation.  If not adequately addressed, many institutions may have difficulty staffing adequate sections of accounting courses.  Implications could include an even greater increase in teaching by non-tenure track faculty, which could have significant implications for accreditation and potentially on the quality of accounting educatio

Underreporting Chargeable Time: A Continuing Problem for Public Accounting Firms

Prior research shows that underreporting chargeable time has been a concern for public accounting firms even though many of these firms have policies and procedures that prohibit eating time. The purpose of this study is to examine the current state of this problem and to provide recommendations to manage the problem more effectively. Practicing public accountants at all professional levels were surveyed to determine the extent, opportunity, ethical perception and perceived benefits of underreporting time. The results show that although the majority of the respondents believe underreporting time is unethical, the majority of them did not report all of their chargeable hours in the prior year. The main reasons for such behavior stem from the desire to: (1) receive better periodic performance evaluations, (2) be viewed as competent by superiors and (3) receive promotions

A Criminological Profile Of White-Collar Crime

Using criminology as a foundation, this research explores the personality, psychology, and sociology of white-collar crime. While there has been much focus on various techniques (internal controls, prevention software, employee monitoring systems, etc.) to prevent fraud within companies and organizations, other important behavioral aspects have received less attention. The goal of this manuscript is to explore the literature from other disciplines to help better identify criminological personality profiles and incorporate different behavioral features such as personality characteristics, psychology, and sociology, with application to actual cases of white-collar fraud. Examining theory from other disciplines and merging it with the technical aspects of accounting and fraud prevention allows for a greater understanding of the motivations and processes behind these crimes and, hopefully, allowing for better prevention in the future

Where to Retire? The Tax Implications of Geography in Retirement

Retirement planning is an issue of growing concern to the nation’s aging population and state governments as the number of retirees continues to increase each year. Retired individuals and individuals planning for retirement should consider state tax policies, as they vary from state to state, when selecting a retirement location. State governments should also consider making tax policy changes in order to attract the older population. State tax policies could impact a retiree’s financial stability during retirement. This paper examines the tax implications of geography in retirement and how relocation has the potential to significantly decrease an individual’s pension income tax liability

Improving Undergraduate Learning For Employability Through International Exposure

The purpose of this study is to identify how undergraduate business programs can incorporate international exposure to increase employability among its graduates. We first examine how international opportunities in corporations have impacted the skills needed by employees to excel in a globalized work environment. From this, we identify desirable employee characteristics. Next, we discuss the research methodology to determine how highly ranked undergraduate business programs are adapting to employer demands. A four-tiered research approach is used to: identify criteria for measurement; select top undergraduate business programs for assessment; research university websites for curriculum requirements; and confirm observations directly with institutions. The findings show how universities have adapted undergraduate learning experiences to incorporate global exposure to help ensure graduates possess the required skills for employability. Finally, we discuss what characteristics many undergraduate business programs may lack in terms of international exposure and offer suggestions on how they could improve. This study should be of interest to university faculty and administrators by providing practical implications to aid undergraduate business programs in adopting initiatives, courses, and opportunities to stress an international focus for students. Introducing global education to a business curriculum could improve graduate job placement and improve a business program’s overall ranking to external constituencies