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The New Public Management allows us to reflect upon whether intellectual capital helps public sector organisations meet their performance benchmarks. Sustainable economic performance gains importance from the public sector’s service ideal. Although there have been empirical endeavours using intellectual capital as operational variables, this study examines the theoretically informed relationship between the intellectual capital construct and its construct dimensions and the sustainable economic performance construct and its construct dimensions. The decision-making inputs of senior officials in the Malaysian public sector are vital for evaluating the relationship, as these officials are the individual strategists of the collective organisational strategy. The study conducted a survey that received 1092 usable responses and analysed them using the structural equation modelling research method. The findings showed a robust theoretical relationship between intellectual capital and sustainable economic performance. Furthermore, the study identified intellectual capital items that play a vital role in supporting public sector sustainable economic performance in Malaysia under New Public Management. The findings provide useful knowledge for public sector officials and policymakers, and for further research.
Kardina Kamaruddin; Indra Abeysekera. Intellectual Capital and Sustainable Economic Performance in the Public Sector: The Context of the New Public Management in Malaysia. Sustainability 2021, 13, 7885 .
AMA StyleKardina Kamaruddin, Indra Abeysekera. Intellectual Capital and Sustainable Economic Performance in the Public Sector: The Context of the New Public Management in Malaysia. Sustainability. 2021; 13 (14):7885.
Chicago/Turabian StyleKardina Kamaruddin; Indra Abeysekera. 2021. "Intellectual Capital and Sustainable Economic Performance in the Public Sector: The Context of the New Public Management in Malaysia." Sustainability 13, no. 14: 7885.
The concept of materiality, originating in the accounting domain and applied in the auditing domain, is an essential tool for improving audit quality. A renewed interest in materiality research emerged in Australia after submitting Exposure Draft no. 243 by the Australian Accounting Standards Board (AASB) proposing the withdrawal of AASB 1031 Materiality, which became effective in July 2015. The purpose of this paper is to review the audit literature to examine how the materiality concept is located in the regulatory framework, the standards and guidance that support the application of this concept, and research undertaken using different research methods. As our review reveals significant gaps in recent research on the subject, gaps need to be addressed. The paper concludes by proposing research propositions that fit into the audit triangle for materiality research developed in this paper.
Raul David; Indra Abeysekera. Auditor Judgements after Withdrawal of the Materiality Accounting Standard in Australia. Journal of Risk and Financial Management 2021, 14, 268 .
AMA StyleRaul David, Indra Abeysekera. Auditor Judgements after Withdrawal of the Materiality Accounting Standard in Australia. Journal of Risk and Financial Management. 2021; 14 (6):268.
Chicago/Turabian StyleRaul David; Indra Abeysekera. 2021. "Auditor Judgements after Withdrawal of the Materiality Accounting Standard in Australia." Journal of Risk and Financial Management 14, no. 6: 268.
This paper empirically examines whether there is an association between financial reporting disclosure quality and sustainability disclosure quality of the top 100 socially reputed Chinese listed firms. The paper computed financial disclosure quality by empirically combining earning qualities of accrual, persistence, predictability, and smoothness. Using content analysis and survey questionnaire research methods, it calculated sustainability quality by combining disclosure quantity (through quantitative weightings), disclosure type (through qualitative weightings), and disclosure item importance (through qualitative weightings) of economic, social, and environmental disclosures made in annual and sustainability reports, ascertained using the Global Reporting Initiative sustainability framework. The study finds that sustainability disclosure in the current period is sufficiently associated with financial disclosure quality of the current period and future period. Consistent with stakeholder theory, firms with a social reputation are perceived as trustworthy by stakeholders and shareholders. The findings lead to a cultural stakeholder theory where underlying values of societal culture create a condition supporting mutual stakeholder relationships between firm and various stakeholders. Demonstrating trustworthiness through disclosures can help boost consumer confidence and foreign trade relations for Chinese firms. The Chinese government can design innovative schemes to reward and promote trustworthiness in firms, such as regulating base-point reductions in interest rates on borrowing or raising funds.
Indra Abeysekera; Feng Li; Yingjun Lu. Financial disclosure quality and sustainability disclosure quality. A case in China. PLOS ONE 2021, 16, e0250884 .
AMA StyleIndra Abeysekera, Feng Li, Yingjun Lu. Financial disclosure quality and sustainability disclosure quality. A case in China. PLOS ONE. 2021; 16 (5):e0250884.
Chicago/Turabian StyleIndra Abeysekera; Feng Li; Yingjun Lu. 2021. "Financial disclosure quality and sustainability disclosure quality. A case in China." PLOS ONE 16, no. 5: e0250884.
Over the past decade, the body of literature on intellectual capital and knowledge management has grown exponentially, responding to the growing knowledge-based and digital economy. This article reviews the concepts and applications proposed at the initial stages of the launch of these two research paradigms. It then examines the interconnection between the two. The study selected a set of articles on intellectual capital and knowledge management that forward concepts and applications vital to the inception of these two research domains. The analytical review demonstrates that these concepts and applications, although considered separately in research, are interconnected and inform each other. The paper analyzes, discusses, and forms conclusions based on the self-selected literature with informed research knowledge.
Indra Abeysekera. Intellectual Capital and Knowledge Management Research towards Value Creation. From the Past to the Future. Journal of Risk and Financial Management 2021, 14, 238 .
AMA StyleIndra Abeysekera. Intellectual Capital and Knowledge Management Research towards Value Creation. From the Past to the Future. Journal of Risk and Financial Management. 2021; 14 (6):238.
Chicago/Turabian StyleIndra Abeysekera. 2021. "Intellectual Capital and Knowledge Management Research towards Value Creation. From the Past to the Future." Journal of Risk and Financial Management 14, no. 6: 238.
We examine the value relevance of the corporate social responsibility (CSR) expenditure of Bangladeshi banks from 2007–2014 in response to a regulatory directive on banking firms’ engagement in CSR activities. We find a positive association between CSR expenditure and a firm's market value. Evidence of an inverse U‐shaped curvilinear association between CSR expenditure and market value suggests that the impact of CSR expenditure on a firm's market value has a certain limit. We also document that unexpected or abnormal components of CSR expenditure comprise value‐relevant information. Our study provides empirical evidence to support the value relevance of CSR expenditure as an explanation for why firms should invest in CSR and why they should inform various stakeholders about their CSR activities.
Sudipta Bose; Amitav Saha; Indra Abeysekera. The Value Relevance of Corporate Social Responsibility Expenditure: Evidence from Regulatory Decisions. Abacus 2020, 56, 455 -494.
AMA StyleSudipta Bose, Amitav Saha, Indra Abeysekera. The Value Relevance of Corporate Social Responsibility Expenditure: Evidence from Regulatory Decisions. Abacus. 2020; 56 (4):455-494.
Chicago/Turabian StyleSudipta Bose; Amitav Saha; Indra Abeysekera. 2020. "The Value Relevance of Corporate Social Responsibility Expenditure: Evidence from Regulatory Decisions." Abacus 56, no. 4: 455-494.
This paper examines whether equity overvaluation duration influences managers’ choice of different earnings management mechanisms and how corporate governance and the Australian Securities and Investment Commission’s underlying earnings disclosure guidelines influence managers’ choices. The study samples Australian Securities Exchange 200 firms from 2009–2016. Findings show that on average, firms more likely engage in accrual-based earnings management in the early overvaluation stage. In later stages, firms more likely disclose underlying earnings aggressively to sustain overvaluation. Additionally, firms with a high proportion of independent directors on the board prefer to disclose underlying earnings aggressively to sustain the equity overvaluation; firms with a low proportion of independent directors prefer both accrual-based earnings management and aggressive underlying earnings disclosure to sustain the overvaluation. Moreover, firms that conform to the Commission’s underlying earnings disclosure guidelines use neither accrual-based earnings management nor aggressive underlying earnings disclosure to sustain overvaluation, but non-conforming firms use both mechanisms.
Yiru Yang; Indra Abeysekera. Duration of equity overvaluation and managers’ choice to use aggressive underlying earnings disclosure and accrual-based earnings management: Australian evidence. Journal of Contemporary Accounting & Economics 2019, 15, 167 -185.
AMA StyleYiru Yang, Indra Abeysekera. Duration of equity overvaluation and managers’ choice to use aggressive underlying earnings disclosure and accrual-based earnings management: Australian evidence. Journal of Contemporary Accounting & Economics. 2019; 15 (2):167-185.
Chicago/Turabian StyleYiru Yang; Indra Abeysekera. 2019. "Duration of equity overvaluation and managers’ choice to use aggressive underlying earnings disclosure and accrual-based earnings management: Australian evidence." Journal of Contemporary Accounting & Economics 15, no. 2: 167-185.
Indra Abeysekera; Sam Jebeile. Why Learners Found Transfer Pricing Difficult? Implications for Directors. The Journal of Asian Finance, Economics and Business 2019, 6, 9 -19.
AMA StyleIndra Abeysekera, Sam Jebeile. Why Learners Found Transfer Pricing Difficult? Implications for Directors. The Journal of Asian Finance, Economics and Business. 2019; 6 (1):9-19.
Chicago/Turabian StyleIndra Abeysekera; Sam Jebeile. 2019. "Why Learners Found Transfer Pricing Difficult? Implications for Directors." The Journal of Asian Finance, Economics and Business 6, no. 1: 9-19.
This study examines the ways in which entrepreneurs influence stakeholders to form perceptions using intangibles disclosed on business websites. Interviews were conducted with 10 entrepreneurs, each representing an entrepreneurial business, and 17 intangible capabilities disclosed to impress three stakeholder groups using five impression‐management tactics were uncovered. The study uses an entrepreneurship perspective to investigate entrepreneurs’ motivation to share their beliefs with stakeholders, and resource‐based theory to posit that intangibles combined with business capabilities are competencies for such communication, in addition to stakeholder theory for targeting specific stakeholders.
Indra Abeysekera. Intangibles Disclosure on Entrepreneurial Small Businesses’ Websites to Influence Stakeholders’ Impressions. Australian Accounting Review 2018, 30, 22 -32.
AMA StyleIndra Abeysekera. Intangibles Disclosure on Entrepreneurial Small Businesses’ Websites to Influence Stakeholders’ Impressions. Australian Accounting Review. 2018; 30 (1):22-32.
Chicago/Turabian StyleIndra Abeysekera. 2018. "Intangibles Disclosure on Entrepreneurial Small Businesses’ Websites to Influence Stakeholders’ Impressions." Australian Accounting Review 30, no. 1: 22-32.
Trang Cam Hoang; Indra Abeysekera; Shiguang Ma. Earnings Quality and Corporate Social Disclosure: The Moderating Role of State and Foreign Ownership in Vietnamese Listed Firms. Emerging Markets Finance and Trade 2018, 55, 272 -288.
AMA StyleTrang Cam Hoang, Indra Abeysekera, Shiguang Ma. Earnings Quality and Corporate Social Disclosure: The Moderating Role of State and Foreign Ownership in Vietnamese Listed Firms. Emerging Markets Finance and Trade. 2018; 55 (2):272-288.
Chicago/Turabian StyleTrang Cam Hoang; Indra Abeysekera; Shiguang Ma. 2018. "Earnings Quality and Corporate Social Disclosure: The Moderating Role of State and Foreign Ownership in Vietnamese Listed Firms." Emerging Markets Finance and Trade 55, no. 2: 272-288.
Identifying disclosure communication signals as narrative, visual, and numerical, and measuring them using two methods, this study investigates how best the intangible resources can be used to communicate future-period corporate-growth reputation, measured as future sales growth, of the fastest growing small companies in Australia over a continuous three-year period. Using insights from resource-based theory and signaling theories, and generating data using content analysis from 276 companies, this study finds that communication signals when combined rather than in isolation are predictors of future-period corporate-growth reputation. The study provides additional support for current-period corporate-growth reputation mediating intangible resource signals in predicting future-period corporate-growth reputation.
Indra Abeysekera. How Best to Communicate Intangible Resources on Websites to Inform Corporate‐Growth Reputation of Small Entrepreneurial Businesses. Journal of Small Business Management 2017, 57, 738 -756.
AMA StyleIndra Abeysekera. How Best to Communicate Intangible Resources on Websites to Inform Corporate‐Growth Reputation of Small Entrepreneurial Businesses. Journal of Small Business Management. 2017; 57 (3):738-756.
Chicago/Turabian StyleIndra Abeysekera. 2017. "How Best to Communicate Intangible Resources on Websites to Inform Corporate‐Growth Reputation of Small Entrepreneurial Businesses." Journal of Small Business Management 57, no. 3: 738-756.
Previous studies have established that firms’ effectiveness can differ based on the differences among directors within a board, and between boards. However, studies have yet to establish the effectiveness of the diverse attributes of the board on firms’ quality of earnings in an emerging market setting such as Vietnam. This study investigates the effect of board diversity on earnings quality in a sample of Vietnamese listed firms. The two dimensions of board diversity measures in this study cover a wide range of structural and demographic attributes of board of directors, using a diversity-of-boards index (dissimilarities among firm boards, i.e., board structure) and a diversity-in-boards index (dissimilarities among directors within a board, i.e., demographic attributes of board members). Earnings quality is an aggregate measure compiled from four accounting-based measures of earnings quality: accruals quality, earnings persistence, earnings predictability and earnings smoothness. We find a significant, positive linear relationship between diversity of boards and earnings quality, while the relationship between diversity in boards and earnings quality is non-linear, with a U-shaped curve.
Trang Cam Hoang; Indra Abeysekera; Shiguang Ma. The Effect of Board Diversity on Earnings Quality: An Empirical Study of Listed Firms in Vietnam. Australian Accounting Review 2016, 27, 146 -163.
AMA StyleTrang Cam Hoang, Indra Abeysekera, Shiguang Ma. The Effect of Board Diversity on Earnings Quality: An Empirical Study of Listed Firms in Vietnam. Australian Accounting Review. 2016; 27 (2):146-163.
Chicago/Turabian StyleTrang Cam Hoang; Indra Abeysekera; Shiguang Ma. 2016. "The Effect of Board Diversity on Earnings Quality: An Empirical Study of Listed Firms in Vietnam." Australian Accounting Review 27, no. 2: 146-163.
Many studies confirm that intangibles have future economic benefits included in them. This study examined whether analysts consider intangibles to be similar in economic value, regardless of the accounting treatment assigned to them. It conducted four experiments by providing 26 analysts with future earnings potentials, and asking them to forecast stock prices for three companies over three firms’ continuous years. One firm had an internally produced brand, the second company had a bought brand, and the third firm had an internally produced brand and bought brands. These three firms were used in four forecasting environments designed for this study. Each forecasting environment constituted an experiment. Each forecasting environment differed, with capital market information specific to each firm. Provided with this information, the analysts forecast stock prices for the three firms in each of the four experiments. Comparing the forecast stock prices, the study found that the two brand classes had similar influence on analysts’ stock pricing forecasts, to infer them as equivalent in economic value, in each of the four forecasting environments.
Indra Abeysekera. Does the classification of intangibles matter? An equivalence testing. Advances in Accounting 2016, 35, 135 -142.
AMA StyleIndra Abeysekera. Does the classification of intangibles matter? An equivalence testing. Advances in Accounting. 2016; 35 ():135-142.
Chicago/Turabian StyleIndra Abeysekera. 2016. "Does the classification of intangibles matter? An equivalence testing." Advances in Accounting 35, no. : 135-142.
Debates around sound corporate governance propose board diversity as a key attribute to sufficiently challenge executive management for stakeholder engagement. This study contributes to this debate by empirically investigating the effect of board diversity on corporate social disclosure (CSD) of Vietnamese listed firms. The study finds a significantly positive effect of diversity-in-boards (dissimilarities among directors within a board, i.e., demographic attributes of board members) on CSD while diversity-of-boards (dissimilarities among firm boards, i.e., board structure) has no effect on CSD. The results contribute by showing that a single theoretical approach can provide an adequate explanation for board diversity. The study contributes methodologically by demonstrating the design and measurement of board diversity indices, and a three-dimensional stakeholder-relevant CSD index. The findings benefit regulators and corporate executives in better understanding firms’ CSD practices and stakeholders’ expectations.
Trang Cam Hoang; Indra Abeysekera; Shiguang Ma. Board Diversity and Corporate Social Disclosure: Evidence from Vietnam. Journal of Business Ethics 2016, 151, 833 -852.
AMA StyleTrang Cam Hoang, Indra Abeysekera, Shiguang Ma. Board Diversity and Corporate Social Disclosure: Evidence from Vietnam. Journal of Business Ethics. 2016; 151 (3):833-852.
Chicago/Turabian StyleTrang Cam Hoang; Indra Abeysekera; Shiguang Ma. 2016. "Board Diversity and Corporate Social Disclosure: Evidence from Vietnam." Journal of Business Ethics 151, no. 3: 833-852.
This article investigates the relation between accounting-based earnings quality attributes and the financial status of Chinese companies listed in Shanghai and Shenzhen stock exchanges from 2005 to 2007 by classifying them as either “healthy” or “bankrupt” firms. The authors find that accruals quality, earnings predictability, and earnings smoothness are significantly different between healthy and bankrupt firms, but not earnings persistence. Additional analysis undertaken indicates that firm categories (healthy, financially distressed, and bankrupt) based on financial status does not indicate distinct differences in earnings quality attributes.
Feng Li; Indra Abeysekera; Shiguang Ma. The Effect of Financial Status on Earnings Quality of Chinese-Listed Firms. Journal of Asia-Pacific Business 2014, 15, 4 -26.
AMA StyleFeng Li, Indra Abeysekera, Shiguang Ma. The Effect of Financial Status on Earnings Quality of Chinese-Listed Firms. Journal of Asia-Pacific Business. 2014; 15 (1):4-26.
Chicago/Turabian StyleFeng Li; Indra Abeysekera; Shiguang Ma. 2014. "The Effect of Financial Status on Earnings Quality of Chinese-Listed Firms." Journal of Asia-Pacific Business 15, no. 1: 4-26.
Much of the discussion of voluntary disclosure of external capital in annual reports entails only limited examination as signals for capital accumulation. Using the method of content analysis, this paper examines the signalling of external capital disclosure practices, the most disclosed category of intellectual capital, in annual reports of a sample of listed firms in Sri Lanka, a developing nation. Eleven case study interviews from the sample firms explore the role of signal for capital accumulation. Findings reveal that signals differ between industry sectors in convincing stakeholders to advance capital accumulation
Indra Abeysekera. Signalling external capital disclosure in annual reports. Corporate Ownership and Control 2014, 11, 193 -202.
AMA StyleIndra Abeysekera. Signalling external capital disclosure in annual reports. Corporate Ownership and Control. 2014; 11 (4):193-202.
Chicago/Turabian StyleIndra Abeysekera. 2014. "Signalling external capital disclosure in annual reports." Corporate Ownership and Control 11, no. 4: 193-202.
This paper investigates the link between earnings management and earnings quality for the Chinese firms listed in the Shanghai and Shenzhen stock exchanges from 2003 to 2007. The earnings quality is measured by four separate earnings attributes: accruals quality, earnings persistence, earnings predictability, and earnings smoothness. We find that the stressed/bankrupt firms prefer opportunistic earnings management; the non-stressed/non-bankrupt firms are more likely to choose more efficient earnings management than the stressed/non-bankrupt firms. We find that earnings management performs better than earnings quality in predicting future profitability. We also find that the earnings quality has deteriorated over the sample period; the number of stressed/bankrupt firms increased and the number of non-stressed/non-bankrupt firms decreased.
Feng Li; Indra Abeysekera; Shiguang Ma. Earnings management and the effect of earnings quality in relation to stress level and bankruptcy level of Chinese listed firms. Corporate Ownership and Control 2011, 9, 366 -391.
AMA StyleFeng Li, Indra Abeysekera, Shiguang Ma. Earnings management and the effect of earnings quality in relation to stress level and bankruptcy level of Chinese listed firms. Corporate Ownership and Control. 2011; 9 (1):366-391.
Chicago/Turabian StyleFeng Li; Indra Abeysekera; Shiguang Ma. 2011. "Earnings management and the effect of earnings quality in relation to stress level and bankruptcy level of Chinese listed firms." Corporate Ownership and Control 9, no. 1: 366-391.