Journal of Law and Financial Management - Volume 10 (2) December 2011

Editorial »


Measuring Efficiency of UK Chartered Accounting Firms

by Greg Gregoriou, Elsayed Kandiel and Colin Read

In this paper, we examine the input-output efficiency of United Kingdom CPA firms using the Data Envelopment Analysis (DEA) approach. We find that a majority of CPA firms in the United Kingdom appear not to be efficient on a yearly basis, and we further find no evidence of persistent efficiency on a multi-period basis. The results of our study may serve as a yardstick for CPA firms interested in assessing their efficiency relative to their peers, and as a new gauge of CPA performance.

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Why We Need Carbon Pricing ??? A Social and Environmental Accounting Perspective

by Sumit K Lodhia

This paper justifies a need for carbon pricing through the academic social and environmental accounting perspective. An analytical approach is taken whereby current developments in carbon pricing are linked to the academic literature on social and environmental accounting. A need for carbon pricing is justified through a middle of the road social and environmental accounting research perspective and the notion of accountability.

The paper has both research and practitioner implications. Academic work on social and environmental accounting has relevance for contemporary developments such as carbon pricing. Carbon pricing is integral in internalising externalities and there is vast support for this process, including academic support. Practitioners can use social and environmental accounting research to justify carbon pricing, thereby providing further credence to their arguments. This study is one of the first studies to link social and environmental accounting research to carbon pricing and suggests that such research has practical relevance.

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The Impact of Financial Crisis on the Efficiency of Superannuation Funds

by Milind Sathye

Though superannuation funds play an important role in any economy, little is known about their efficiency as the literature on production efficiency is mainly concerned with banks and insurance companies. This paper analyses the production efficiency of retail superannuation funds in Australia from 2005 to 2009. The estimates of production efficiency were obtained using Data Envelopment Analysis and thereafter regressed on contextual variables using the Tobit model. The study finds that fund characteristics, like size and proportion of funds invested in non-risk avenues, have significant positive association while diversification and financial crisis each have a significant negative association, with the production efficiency of retail superannuation funds in Australia. The findings are relevant to a government appointed major review of the superannuation industry tasked to examine, inter alia, the efficiency of superannuation funds. From the applied or practice perspective, the findings could help firms within the industry determine merger or acquisition targets.

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