Stuart Tooley | University of Southern Queensland (original) (raw)
Papers by Stuart Tooley
Qualitative Research in Accounting & Management, 2013
Research in Public Policy Analysis and Management, 2000
ABSTRACT The enactment of the Education Act 1989 set in motion a reform agenda designed to restru... more ABSTRACT The enactment of the Education Act 1989 set in motion a reform agenda designed to restructure the New Zealand state school system. School-based management and decision-making lay at the heart of the reformed system. Responsibility for the administration of schools, previously held by the Department of Education and Regional Education Boards, was decentralised to boards of trustees of individual schools. The Act established a model of governance whereby the elected board of trustees were given responsibility for the management of their individual schools with “complete discretion to control the management of the school as it thinks fit” (s.75). Further, principals, as chief executives, were charged with managing the day-to-day administration of their schools. The philosophy of these reforms was consistent with the general thrust of restructuring and policy change that was occurring, at the time, within the wider public sector (Dale, 1994). Indeed, it was evident that the educational reforms had more to do with issues of performance, in terms of efficiency and effectiveness, than issues of curricula and pedagogy. Whilst the reforms undertaken in the wider sector were unprecedented they were, nonetheless, universally recognised for their conceptual rigour and intellectual coherence (Boston, et al., 1996). A notable feature was the theoretical underpinnings of the reforms providing an “analytical framework grounded in public choice, managerialism and new economics of organizations, most notably agency theory and transaction cost analysis” (Boston, 1992, p.2). Arguable, managerialism, or what is more commonly referred to as ‘new public management’ (NPM) (Hood, 1990), has had the most visible influence upon the restructuring of the public sector. According to Hood (1995), NPM has seen the ‘… lessening or removing differences between the public and private sectors and shifting the emphasis from process accountability towards a greater element of accountability in terms of results” (p.94). For Martin (1994, p.57), NPM represented the ‘debureaucratisation’ of the public service whereby bureaucratic control gives way to managerial responsibility. Hood (1991) noted seven characteristics, or what he terms ‘doctrinal components’, of the NPM approach: (1) financial devolution to service providers, (2) explicit standards and measures of performance, (3) clear differentiation between inputs, outputs and outcomes, (4) increased accountability of service providers, (5) private sector styles of management practice, (6) increased competition and contracting between service providers, and (7) greater stress on efficiency, economy and effectiveness of resource usage. Using Hood’s (1991) seven ‘doctrinal components’ of NPM it is possible to conclude that the educational reforms undertaken in New Zealand are an expression, albeit incompletely, of NPM thinking (Painter, 1988; Self, 1993). The key feature of the reforms was the devolution of financial resources to the school site. In the process it has strengthened the position of the central funding agency and hence accountability. Further, the delegated budget enables a shift in emphasis from input to output (results) accountability. Competition between schools is encouraged through the removal of school zoning restrictions (open admissions). Scarcity of resources has seen schools enter into contracts for the provision of inter-school services and facilities (sporting, technology etc.). Less evident is the enforcement of performance standards. Although Statements of Service Performance are statutorily required, the design and measurement of performance standards is still in its infancy. Nevertheless, external agencies such as the Education Review Office do monitor and appraise the performance of schools with publicly released reports.
Financial Accountability & Management, 2015
New Zealand public sector reforms have provided a clearer delineation between outcome and output ... more New Zealand public sector reforms have provided a clearer delineation between outcome and output responsibilities. Whilst much of the reforms focus upon the performance of chief executives, limited consideration is given to monitoring ministerial performance. This paper develops a model that would enable such a monitoring process to be undertaken.
This paper is concerned with the question of what liability (if any) should be disclosed in respe... more This paper is concerned with the question of what liability (if any) should be disclosed in respect of accumulated frequent flyer benefitts due to regular online travellers. It is concluded that an obligation does exist. There is evidence of the need to recognise, measure, value and disclose the implications of a successful marketing tool such as frequent flyer programmes.
Presenting the critical theory model of societal development and identifying societal steering me... more Presenting the critical theory model of societal development and identifying societal steering media as an important element in it, the paper analyses the forces at play in the reform of the wider public sector, in an economic, political and ideological context, and details the key features of the New Zealand compulsory educational system, including the introduction and application of managerial values and rationality. Concluding the article focuses on the possible range of responses of key actors in the educational process to change.
Society and Economy, 2004
Eighth International Research Symposium on Public Management, Budapest, Mar 1, 2004
ABSTRACT Since the late 1980's the general and financial management of the New Zealand compulsory... more ABSTRACT Since the late 1980's the general and financial management of the New Zealand compulsory school sector has been significantly transformed, in line with other public sector reforms. This present research constructs and explains a school's performance accountability disclosure index (SPADI). It also reports the results of its application to a sample of 18 annual school reports.
This paper examines the intent and consequences of 'new'financial management (the 'New Public Fin... more This paper examines the intent and consequences of 'new'financial management (the 'New Public Financial Management')(NPFM) procedures invoked to facilitate a macro-micro interface within the context of the significant administrative reform of the New Zealand (NZ) state education system. The 1989 administrative reform of the NZ education system was predicated on a particular view of public sector management, which was characterised by the umbrella heading of 'New Public Management'(NPM).
Annual reports are an important component of New Zealand schools’ public accountability. Through ... more Annual reports are an important component of New Zealand schools’ public accountability. Through the annual report the governance body informs stakeholders about school aims, objectives, achievements, use of resources, and financial performance. This paper identifies the perceived usefulness of the school annual report to recipients and the extent to which it serves as an instrument of accountability and/or decision-usefulness. The
Public Financial Management') (NPFM) procedures invoked to facilitate a macro-micro interface wit... more Public Financial Management') (NPFM) procedures invoked to facilitate a macro-micro interface within the context of the significant administrative reform of the New Zealand (NZ) state education system. The 1989 administrative reform of the NZ education system was predicated on a particular view of public sector management, which was characterised by the umbrella heading of 'New Public Management' (NPM). It was claimed that NPFM provided a link between the sets of values highlighted through the NPM reform process and the internal workings of various public sector organisations.
Qut Business School School of Accountancy, 2004
The 1989 transformation of educational administration in New Zealand emphasised a new accountabil... more The 1989 transformation of educational administration in New Zealand emphasised a new accountability framework. The aim of the 'new'accountability was to demonstrate that educational investments yielded educational payoffs; including a demand that educational institutions provide evidence of their performance in terms of efficiency and effectiveness. The accountability was to be, in part, discharged through the provision of performance information in the school annual report. This paper assesses the comprehensiveness of ...
It is to be expected that managers will provide sufficient disclosure to enable informed assessme... more It is to be expected that managers will provide sufficient disclosure to enable informed assessments of firm performance and firm value. Through an investigation of the performance indicators used and/or desired by Australian and New Zealand financial analysts, this study identifies a state of continuing information asymmetry. The empirical results indicate that key performance drivers are under reported; especially in regard to measures of product quality and customer satisfaction, product and process innovation, and the competitive environment. Managers need to take cognisance of the importance for disclosure of non-financial operational-type information that focus on factors that create longer term value to complement the traditional reporting.
Unlike many other advanced economies, New Zealand does not have an explicit capital gains taxatio... more Unlike many other advanced economies, New Zealand does not have an explicit capital gains taxation regime. The distinction between capital and income is therefore of vital significance. An area in which the capital-income distinction is of considerable importance is that of gains and losses from the sale of shares. Prima facie such gains are of a capital nature and thus not taxable. However, depending on the circumstances, they may well come within the ambit of the income tax provisions. Essentially, gains on share realisation may be taxable where the gain constitutes a business profit, the taxpayer is dealing in shares, the taxpayer purchased the shares for the purpose of resale, or where the taxpayer is involved in a scheme or undertaking for the purpose of profit making. The potential taxation of gains from share realisations is an issue of particular concern to investment companies. Recent case law would seem to indicate that the share acquisition and disposal activity of such c...
The narrative section of annual reports has considerable value to various user groups of annual r... more The narrative section of annual reports has considerable value to various user groups of annual reports, such as financial analysts and investors (Tiexiera, 2004; Barlett and Chandler, 1997, IASB, 2006). This narrative section including chairpersons’/presidents’ statement contains twice the quantity of information than the financial statements section (Smith and Taffler, 2000). However, the abundance of information does not necessarily enhance the quality of such information (IASB, 2006). This issue of qualitative characteristics has been long foregone by researchers. However, this issue has gained attention of the IASB (2006). Following this dearth in research this paper explores whether investors’ required qualitative characteristics as stated by the IASB (2006) have been satisfied in management commentary section of a sample of New Zealand companies’ annual reports. Our result suggests that the principal stakeholders’, that is, investors’ qualitative characteristics requirements ...
Since 1992, New Zealand has engaged in a sector-neutral approach to accounting standard setting –... more Since 1992, New Zealand has engaged in a sector-neutral approach to accounting standard setting – where a transaction is accounted for based on its underlying economic nature rather than on the type of entity undertaking it. Underpinned by the premise that GAAP can be generalised across the public/private divide, we examine whether systematic differences exist between accounting policies adopted by reporting entities with different ownership and/or operating objectives. We find evidence of sector preference in the choice of useful life for comparable depreciable assets, and differences in policies for the amortisation of goodwill. We also find evidence of sector convergence in the choice of methods for accounting for valuation of non-current assets, deferred taxation and inventory. It is observed that the two accounting policies indicating sector preference have a more direct impact on the Statement of Financial Performance than the other policies examined.
This study examines users’ perceptions of three digital reporting formats: PDF, HTML and XBRL. Us... more This study examines users’ perceptions of three digital reporting formats: PDF, HTML and XBRL. Using public accounting practitioners as participants, this study examines users’ perceptions of different reporting formats used in disseminating financial information. This study includes examining the link between users’ perceptions and preferred reporting format and whether these perceptions are similar to the quality of their decision in the completion of a specifictask. This study follows Davis (1989, p. 320) who defined perceptions into 2: perceived usefulness as “the degree a user believes that a particular aid would enhance his performance” and perceived ease of use as “the degree to which a user believes that using a particular aid would reduce or be free of effort”. The results indicate that users’ perceptions of usefulness among the digital reporting formatsdiffer significantly. However, perceptions of ease of use are similar across the three digital reporting formats. Users’ p...
This study examines whether digital presentation formats address the concern over functional fixa... more This study examines whether digital presentation formats address the concern over functional fixation in recognition versus disclosure in the reporting of financial information. The literature indicates that the presentation of financial information through either recognition in the financial statements or disclosure in the notes to the financial statements often creates functional fixation where users of financial statements fail to adjust for differences in accounting methods. This leads users of financial statements to judge identical financial situations as different because they are accounted for by different accounting methods. It has been suggested that the use of appropriate digital presentation formats may alleviate functional fixation. Using an experimental design involving professional users, the results show that functional fixation exists in the judgment stage but not in the other stages of information processing (information acquisition, evaluation and weighting). Pres...
Qualitative Research in Accounting & Management, 2013
Research in Public Policy Analysis and Management, 2000
ABSTRACT The enactment of the Education Act 1989 set in motion a reform agenda designed to restru... more ABSTRACT The enactment of the Education Act 1989 set in motion a reform agenda designed to restructure the New Zealand state school system. School-based management and decision-making lay at the heart of the reformed system. Responsibility for the administration of schools, previously held by the Department of Education and Regional Education Boards, was decentralised to boards of trustees of individual schools. The Act established a model of governance whereby the elected board of trustees were given responsibility for the management of their individual schools with “complete discretion to control the management of the school as it thinks fit” (s.75). Further, principals, as chief executives, were charged with managing the day-to-day administration of their schools. The philosophy of these reforms was consistent with the general thrust of restructuring and policy change that was occurring, at the time, within the wider public sector (Dale, 1994). Indeed, it was evident that the educational reforms had more to do with issues of performance, in terms of efficiency and effectiveness, than issues of curricula and pedagogy. Whilst the reforms undertaken in the wider sector were unprecedented they were, nonetheless, universally recognised for their conceptual rigour and intellectual coherence (Boston, et al., 1996). A notable feature was the theoretical underpinnings of the reforms providing an “analytical framework grounded in public choice, managerialism and new economics of organizations, most notably agency theory and transaction cost analysis” (Boston, 1992, p.2). Arguable, managerialism, or what is more commonly referred to as ‘new public management’ (NPM) (Hood, 1990), has had the most visible influence upon the restructuring of the public sector. According to Hood (1995), NPM has seen the ‘… lessening or removing differences between the public and private sectors and shifting the emphasis from process accountability towards a greater element of accountability in terms of results” (p.94). For Martin (1994, p.57), NPM represented the ‘debureaucratisation’ of the public service whereby bureaucratic control gives way to managerial responsibility. Hood (1991) noted seven characteristics, or what he terms ‘doctrinal components’, of the NPM approach: (1) financial devolution to service providers, (2) explicit standards and measures of performance, (3) clear differentiation between inputs, outputs and outcomes, (4) increased accountability of service providers, (5) private sector styles of management practice, (6) increased competition and contracting between service providers, and (7) greater stress on efficiency, economy and effectiveness of resource usage. Using Hood’s (1991) seven ‘doctrinal components’ of NPM it is possible to conclude that the educational reforms undertaken in New Zealand are an expression, albeit incompletely, of NPM thinking (Painter, 1988; Self, 1993). The key feature of the reforms was the devolution of financial resources to the school site. In the process it has strengthened the position of the central funding agency and hence accountability. Further, the delegated budget enables a shift in emphasis from input to output (results) accountability. Competition between schools is encouraged through the removal of school zoning restrictions (open admissions). Scarcity of resources has seen schools enter into contracts for the provision of inter-school services and facilities (sporting, technology etc.). Less evident is the enforcement of performance standards. Although Statements of Service Performance are statutorily required, the design and measurement of performance standards is still in its infancy. Nevertheless, external agencies such as the Education Review Office do monitor and appraise the performance of schools with publicly released reports.
Financial Accountability & Management, 2015
New Zealand public sector reforms have provided a clearer delineation between outcome and output ... more New Zealand public sector reforms have provided a clearer delineation between outcome and output responsibilities. Whilst much of the reforms focus upon the performance of chief executives, limited consideration is given to monitoring ministerial performance. This paper develops a model that would enable such a monitoring process to be undertaken.
This paper is concerned with the question of what liability (if any) should be disclosed in respe... more This paper is concerned with the question of what liability (if any) should be disclosed in respect of accumulated frequent flyer benefitts due to regular online travellers. It is concluded that an obligation does exist. There is evidence of the need to recognise, measure, value and disclose the implications of a successful marketing tool such as frequent flyer programmes.
Presenting the critical theory model of societal development and identifying societal steering me... more Presenting the critical theory model of societal development and identifying societal steering media as an important element in it, the paper analyses the forces at play in the reform of the wider public sector, in an economic, political and ideological context, and details the key features of the New Zealand compulsory educational system, including the introduction and application of managerial values and rationality. Concluding the article focuses on the possible range of responses of key actors in the educational process to change.
Society and Economy, 2004
Eighth International Research Symposium on Public Management, Budapest, Mar 1, 2004
ABSTRACT Since the late 1980's the general and financial management of the New Zealand compulsory... more ABSTRACT Since the late 1980's the general and financial management of the New Zealand compulsory school sector has been significantly transformed, in line with other public sector reforms. This present research constructs and explains a school's performance accountability disclosure index (SPADI). It also reports the results of its application to a sample of 18 annual school reports.
This paper examines the intent and consequences of 'new'financial management (the 'New Public Fin... more This paper examines the intent and consequences of 'new'financial management (the 'New Public Financial Management')(NPFM) procedures invoked to facilitate a macro-micro interface within the context of the significant administrative reform of the New Zealand (NZ) state education system. The 1989 administrative reform of the NZ education system was predicated on a particular view of public sector management, which was characterised by the umbrella heading of 'New Public Management'(NPM).
Annual reports are an important component of New Zealand schools’ public accountability. Through ... more Annual reports are an important component of New Zealand schools’ public accountability. Through the annual report the governance body informs stakeholders about school aims, objectives, achievements, use of resources, and financial performance. This paper identifies the perceived usefulness of the school annual report to recipients and the extent to which it serves as an instrument of accountability and/or decision-usefulness. The
Public Financial Management') (NPFM) procedures invoked to facilitate a macro-micro interface wit... more Public Financial Management') (NPFM) procedures invoked to facilitate a macro-micro interface within the context of the significant administrative reform of the New Zealand (NZ) state education system. The 1989 administrative reform of the NZ education system was predicated on a particular view of public sector management, which was characterised by the umbrella heading of 'New Public Management' (NPM). It was claimed that NPFM provided a link between the sets of values highlighted through the NPM reform process and the internal workings of various public sector organisations.
Qut Business School School of Accountancy, 2004
The 1989 transformation of educational administration in New Zealand emphasised a new accountabil... more The 1989 transformation of educational administration in New Zealand emphasised a new accountability framework. The aim of the 'new'accountability was to demonstrate that educational investments yielded educational payoffs; including a demand that educational institutions provide evidence of their performance in terms of efficiency and effectiveness. The accountability was to be, in part, discharged through the provision of performance information in the school annual report. This paper assesses the comprehensiveness of ...
It is to be expected that managers will provide sufficient disclosure to enable informed assessme... more It is to be expected that managers will provide sufficient disclosure to enable informed assessments of firm performance and firm value. Through an investigation of the performance indicators used and/or desired by Australian and New Zealand financial analysts, this study identifies a state of continuing information asymmetry. The empirical results indicate that key performance drivers are under reported; especially in regard to measures of product quality and customer satisfaction, product and process innovation, and the competitive environment. Managers need to take cognisance of the importance for disclosure of non-financial operational-type information that focus on factors that create longer term value to complement the traditional reporting.
Unlike many other advanced economies, New Zealand does not have an explicit capital gains taxatio... more Unlike many other advanced economies, New Zealand does not have an explicit capital gains taxation regime. The distinction between capital and income is therefore of vital significance. An area in which the capital-income distinction is of considerable importance is that of gains and losses from the sale of shares. Prima facie such gains are of a capital nature and thus not taxable. However, depending on the circumstances, they may well come within the ambit of the income tax provisions. Essentially, gains on share realisation may be taxable where the gain constitutes a business profit, the taxpayer is dealing in shares, the taxpayer purchased the shares for the purpose of resale, or where the taxpayer is involved in a scheme or undertaking for the purpose of profit making. The potential taxation of gains from share realisations is an issue of particular concern to investment companies. Recent case law would seem to indicate that the share acquisition and disposal activity of such c...
The narrative section of annual reports has considerable value to various user groups of annual r... more The narrative section of annual reports has considerable value to various user groups of annual reports, such as financial analysts and investors (Tiexiera, 2004; Barlett and Chandler, 1997, IASB, 2006). This narrative section including chairpersons’/presidents’ statement contains twice the quantity of information than the financial statements section (Smith and Taffler, 2000). However, the abundance of information does not necessarily enhance the quality of such information (IASB, 2006). This issue of qualitative characteristics has been long foregone by researchers. However, this issue has gained attention of the IASB (2006). Following this dearth in research this paper explores whether investors’ required qualitative characteristics as stated by the IASB (2006) have been satisfied in management commentary section of a sample of New Zealand companies’ annual reports. Our result suggests that the principal stakeholders’, that is, investors’ qualitative characteristics requirements ...
Since 1992, New Zealand has engaged in a sector-neutral approach to accounting standard setting –... more Since 1992, New Zealand has engaged in a sector-neutral approach to accounting standard setting – where a transaction is accounted for based on its underlying economic nature rather than on the type of entity undertaking it. Underpinned by the premise that GAAP can be generalised across the public/private divide, we examine whether systematic differences exist between accounting policies adopted by reporting entities with different ownership and/or operating objectives. We find evidence of sector preference in the choice of useful life for comparable depreciable assets, and differences in policies for the amortisation of goodwill. We also find evidence of sector convergence in the choice of methods for accounting for valuation of non-current assets, deferred taxation and inventory. It is observed that the two accounting policies indicating sector preference have a more direct impact on the Statement of Financial Performance than the other policies examined.
This study examines users’ perceptions of three digital reporting formats: PDF, HTML and XBRL. Us... more This study examines users’ perceptions of three digital reporting formats: PDF, HTML and XBRL. Using public accounting practitioners as participants, this study examines users’ perceptions of different reporting formats used in disseminating financial information. This study includes examining the link between users’ perceptions and preferred reporting format and whether these perceptions are similar to the quality of their decision in the completion of a specifictask. This study follows Davis (1989, p. 320) who defined perceptions into 2: perceived usefulness as “the degree a user believes that a particular aid would enhance his performance” and perceived ease of use as “the degree to which a user believes that using a particular aid would reduce or be free of effort”. The results indicate that users’ perceptions of usefulness among the digital reporting formatsdiffer significantly. However, perceptions of ease of use are similar across the three digital reporting formats. Users’ p...
This study examines whether digital presentation formats address the concern over functional fixa... more This study examines whether digital presentation formats address the concern over functional fixation in recognition versus disclosure in the reporting of financial information. The literature indicates that the presentation of financial information through either recognition in the financial statements or disclosure in the notes to the financial statements often creates functional fixation where users of financial statements fail to adjust for differences in accounting methods. This leads users of financial statements to judge identical financial situations as different because they are accounted for by different accounting methods. It has been suggested that the use of appropriate digital presentation formats may alleviate functional fixation. Using an experimental design involving professional users, the results show that functional fixation exists in the judgment stage but not in the other stages of information processing (information acquisition, evaluation and weighting). Pres...