Aims and Scope Financial Accountability & Management (FAM ) aims to advance the academic understanding, original research and policy debate in respect of the efficient, effective and equitable conduct of financial accountability and management in `governments, public services and charities'. FAM covers organisations largely insulated from market forces and operating without a profit-maximising or profit-distributing objective, and having social objectives not easily captured in purely financial performance-assessments. FAM seeks to be inter-disciplinary and welcomes insight from economics, political science, social and public administration, and management sciences, to meld with accounting and finance in improving the planning, monitoring and control of all types of not-for-profit organisations. FAM publishes annually a special issue based on a single theme or type of organisation, with invitation papers sometimes linked to a conference. It publishes a further three quarterly issues per year comprising submitted papers chosen after double-blind refereeing. Topics covered, either for individual types of organisations or for not-for-profit organisations in general, include resource funding and allocation, planning and budgeting, cost measurement and control, performance measurement and evaluation, financial disclosure and reporting, audit, and issues of corporate governance and the linkages between financial and social accountability. Editorial Board of Reviewers and Advisers Margaret Abernethy, Melbourne, Australia Richard Laughlin, Essex, UK Max Aiken, La Trobe, Bundoora, Australia Andrew Likierman, Treasury, London, UK Aad Bac, Tilburg, The Netherlands Sue Llewellyn, Edinburgh, UK Gwyn Bevan, Lon. Sch. Econ., UK Klaus LÏder, Speyer, Germany Richard Briston, Hull, UK David Mayston, York, UK Nils Brunsson, Stockholm Sch. Econ., Sweden Howard Mellett, Cardiff, UK James Chan, University of Chicago, USA Arthur Midwinter, Strathclyde, Glasgow, UK James Cutt, Victoria, BC, Canada Norvald Monsen, NHH. Bergen-Sandviken, John Edsberg, European Union, Brussels, Norway Belgium Riccardo Mussari, Siena, Italy Vernon Sore, CIPFA, London, UK June Pallot, Canterbury, New Zealand Mahmoud Ezzamel, Cardiff, UK Lee Parker, Adelaide, Australia Dana Forgione, Baltimore, USA James Patton, Pittsburgh, USA Howard Glennerster, Lon. Sch. Econ., UK Maurice Pendlebury, Cardiff, UK John Glynn, Wollongong, Australia Walter Robbins, Alabama, USA Jeff Greenberg, Aud. Gen. Off., Ottawa, Brian Rutherford, Kent at Canterbury, UK Canada Jean-Claude Scheid, CNAM, Paris, France David Hatherly, Edinburgh, UK Hannes Streim, Bochum, Germany David Heald, Aberdeen, UK Cyril Tomkins, Bath, UK Regina Herzlinger, Harvard Bus. Sch., USA Relmond Van Daniker, Kentucky, USA Jesse Hughes, Old Dominion, Virginia, USA Wanda Wallace, William & Mary, Virginia, Peter Jackson, Leicester, UK USA Alicja Jaruga, Lödz, Poland Geoffrey Whittington, Cambridge, UK Marc Jegers, Free University, Brussels, Kiyoshi Yamamoto, Okayama, Japan Belguim Hiroshi Yoshida, Kobe, Japan Rowan Jones, Birmingham,UK Subscriptions: See inside back cover
Subscriptions The mailing-address and instructions for subscription orders, changes of address etc. are printed on the page following the `Contents and Abstracts' section. Prices may alter annually: the prices for the 2001 volume, single issues, and back numbers, are as listed below: 2001 volume UK/Europe Rest of The the World Americas and professional»170.00»214.00 $329.00 Teachers or students» 59.00» 69.00 $109.00 Single Issue and professional» 52.00» 65.00 $ 88.00 Teachers or students» 18.00» 21.00 $ 33.00 Journal of Business Finance & Accounting and Financial Accountability & Management (combined rate) and professional»519.00»613.00 $950.00 Teachers or students»139.00»184.00 $285.00 Advertising in FAM FAM accepts advertising from publishers and other appropriate sources. Copy must be cameraready. Type area is 190 112 mm. Rates are»225 plus VAT for a full page and»145 plus VAT for a half page, with 15% discount for advance booking of space in four consecutive issues. Loose inserts»15 per 100. Advertisements must be pre-booked with the Journal Advertising Manager, Blackwell Publishers Ltd., 108 Cowley Road, Oxford OX4 1JF, England. Camera-ready copy deadlines are 21st December (February issue), 21st March (May), 21st June (August) and 21st September (November). Printed in the UK by Whitstable Printers Ltd. ISSN 02674424
Financial Accountability & Management Editor Assistant Editor Associate Editor Associate Editor Irvine Lapsley Audrey Marsh (Asian-Pacific) (North America) June Pallot Dana Forgione Editorial Addresses The addresses for manuscript submission and other editorial correspondence is as follows: Editor: Professor Irvine Lapsley, Institute of Public Sector Accounting Research, Department of Accounting and Business Method, The University of Edinburgh, William Robertson Building, 50 George Square, EDINBURGH EH8 9JY, UK, TEL/FAX 0131 650 3790, (International) +44 131 650 3790, e-mail I.Lapsley@ed.ac.uk Associate Editor (Asian-Pacific): Professor June Pallot, Department of Accountancy, University of Canterbury, Private Bag 4800, CHRISTCHURCH, New Zealand 8020, FAX +64 3 364 2727, e- mail J.Pallot@afis.canterbury.ac.nz Associate Editor (North America): Professor Dana Forgione, Merrick School of Business, 1420 North Charles St, BALTIMORE, Maryland 21201-5779, USA. TEL +410 837 5253, FAX +410 837 5722, e-mail dforgione@ubmail.ubalt.edu Subscription Information New orders and sample copy requests should be addressed to the Journals Marketing Manager at the publishers address (Blackwell Publishers, 108 Cowley Road, Oxford OX4 IJF, UK or 350 Main Street, Suite 501, Malden, MA 02148, USA) or by email to jnlsamples@blackwellpublishers.co.uk, quoting the name of the journal. Renewals, claims and all other correspondence relating to subscriptions should be addressed to Blackwell Publishers Journals, PO Box 805, 108 Cowley Road, Oxford OX4 1FH, UK (tel: +44(0)1865 244083, fax: +44(0)1865 381381 or email: jnlinfo@blackwellpublishers.co.uk). Financial Accountability & Management (FAM ) is published quarterly in February, May, August and November, and is sold on a calendar-year subscription, or by single issues. Prices may vary from year to year with inflation, and the latest prices should be obtained from the inside back cover of an issue from the current volume, or by enquiry to the Subscription Address given above. Subscriptions should be paid by cheques/ drafts made payable to Blackwell Publishers Ltd. and sent direct to the publishers' UK or USA addresses above. Information for Authors Submission requirements and other information for authors is printed on the following page. The Editors welcome enquiries regarding the suitability of particular topics, types of paper etc. for publication. Noticeboard This journal will publish without charge announcements of reasonable length on matters deemed of interest to readers; e.g. news of conferences and workshops, and calls for papers; announcements of new publications or other information sources; invitations for the exchange of research data, or for collaboration in research; and news on planned and desired international academic visits, and requests for contacts and invitations. Information for inclusion in Noticeboard should be sent direct to the Editor, but any information calling attention to specific future events must be sent several months in advance of the relevant dates. Index An annual index is included at the back of each November issue of FAM. Ten-year cumulative Contents and Author Indexes were published in the February 1995 issue of FAM (Vol.11,No.1). US Mailing Periodicals postage paid at Rahway, New Jersey. Postmaster: send address corrections to: Financial Accountability & Management, c/o Mercury Airfreight International Ltd. Inc., 2323E-F Randolph Avenue, Avenel, NJ 07001, USA (US mailing agent). Copyright All rights reserved. Apart from fair dealing for the purposes of research or private study, or criticism or review, as permitted by the Copyright, Designs and Patents Act 1988, no part of this publication may be reproduced, stored or transmitted in any form or by any means without the prior permission in writing of the Publisher, or in accordance with the terms of photocopying licences issued by organisations authorised by the Publisher to administer reprographic reproduction rights. Authorisation to photocopy items for educational classroom use is granted by the Publisher provided the appropriate fee is paid directly to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, USA (tel. 508-750-8400), from whom clearance should be obtained in advance. For further information see CCC Online at http://www.copyright.com/. Microform The journal is available on microfilm (16mm or 35mm) or 105mm microfiche from the Serials Acquisitions Department, University Microfilms Inc, 300 North Zeeb Road, Ann Arbor, MI 48106, USA. ß 2000 by the publishers, Blackwell Publishers Ltd., 108 Cowley Road, Oxford OX4 IJF, UK. ISSN 0267 4424 iv
INFORMATION FOR AUTHORS All manuscripts submitted for review should be sent to the Editor, Professor Irvine Lapsley (see previous page for address). Both the Editor and the Associate Editors, June Pallot (Asian-Pacific), and Dana Forgione (North America) are happy to respond to informal enquiries about the suitability of papers for possible publication. Manuscripts are considered on the understanding that they are original, unpublished works not currently under consideration for publication elsewhere. The receipt of manuscripts will be acknowledged, but the editors and publishers can accept no responsibility for any loss or non-return of manuscripts. Suitable manuscripts will be given anonymous double-blind review, following which a copy of any review report will be supplied together with the editors' decision. As regards papers accepted for publication, the author(s) will be asked to transfer copyright to the publishers. Authors are requested to follow FAM's manuscript and style requirements closely, to minimise later delay or redrafting. In particular, authors should draft their papers and footnotes etc. to avoid identifying themselves directly or indirectly, to help ensure a fair review. FAM seeks to stimulate the flow of papers submitted for possible publication. To this end and until further notice no submission fees or publication fees will be required for papers sent for editorial consideration. MANUSCRIPT REQUIREMENTS Manuscripts may be up to 7,000 words in length, or occasionally 8,000 if justifiable, inclusive of reference lists and the space equivalence taken up by illustrations. Submit four photocopies of the manuscript, typed double-spaced (preferably on international-size A4 paper). On the title page include the names, titles and institutional affiliations of the author(s), and also the complete correspondence address of the designated author to whom decisions, proofs, reprint requests and readers' enquiries should be sent. Also provide a running title of fewer than 50 characters and spaces, which will appear on alternate pages in the journal. If the paper is to include any acknowledgements these should be typed as a footnote on the title page. The second page should repeat the full title of the paper (but not the author(s)' names) and contain the Abstract of the paper, not exceeding 100 words for full-length papers, or 60 words for shorter Notes, Comments Replies or Rejoinders. Immediately below the Abstract, enter the heading Keywords:, followed by a listing of up to five most relevant keywords. The third page may repeat the full title of the paper (but not the author(s)' names) and here the text proper begins. The main text should be followed by any appendices, by any footnotes (which should be kept to the essential minimum, identified in the text by superscript numerals and listed together at the end, not separately at the bottom of each page), and by the list of source references (see below). Tables and figures should be numbered in order of their appearance with Arabic numerals, and each should have a concise descriptive title (and source, where relevant). REFERENCES Citation in the text is by name(s) of author(s), followed by year of publication (and page numbers where relevant) in parentheses. For references authored by more than two contributors use the first author's name and `et al'. For multiple citations in the same year use a, b, c immediately following the year of publication. The source reference list should be typed in alphabetic order, and in accord with the following examples of style: Beattie, V.A. and M.J. Jones (1992a), Certified Research Report 31: The Communication of Information Using Graphs in Corporate Annual Reports, Certified Accounts Education Trust (London). (1992b), `The Use and Abuse of Graphs in Annual Reports: A Theoretical Framework and Empirical Study', Accounting and Business Research (Autumn), pp. 291^303. Bourn, M. and M. Ezzamel (1986), `Costing and Budgeting in the National Health Service', Financial Accountability & Management, Vol. 2, No. 1 (Spring), pp. 53-ö71. Jones R. and M. Pendlebury (1992), Public Sector Accounting, 3rd edn. (Pitman). Propper, C. (1993), `Quasi-Markets Contracts and Quality in Health and Social Care: The US Experience', in J. Le Grand and W. Bartlett (eds.), Quasi Markets and Social Policy (Macmillan, London). Teece, D. et al. (1990), `Firm Capabilities, Resources and the Concept of Strategy', CCC Working Paper No. 90-8. MATHEMATICAL AND STATISTICAL MATERIAL Mathematical notation should be used only when its rigour and precision are essential to comprehension, and authors should explain in narrative format the principal operations performed. Preferably detailed mathematical proofs and statistical support should be relegated to appendices. Any equations used should be numbered sequentially in parentheses positioned flush with the right-hand margin. Whilst the journal does not wish to publish unnecessary mathematical or statistical detail, or specimen questionnaires, supplementary information of these kinds may be of assistance to the editors and reviewers in assessing papers, and authors are invited to submit such supporting evidence as separate documents clearly marked as being for information rather than publication. Authors may include a footnote to inform readers that copies of questionnaires, supporting mathematical/statistical analysis, or other detail are available on request from the published address for correspondence. PROOFS AND OFFPRINTS The designated author will receive proofs, which should be corrected and returned within ten days of receipt. This author is responsible for proofreading the manuscript: the editors/ publishers are not responsible for any error not marked by the author on the proofs. Corrections to proofs are limited to rectifying errors: no substantial author's changes can be allowed at this stage unless agreement to pay full costs is communicated with the return of proofs. Similarly, offprints in excess of the twenty-five free copies automatically supplied to the designated author (for sharing among any co-authors) must be ordered at the time of the return of proofs, in accord with the instructions and price list accompanying the proofs. COMMENTS AND REPLIES The journal welcomes non-trivial Comments on papers previously published in FAM. To avoid publishing Comments based on misunderstandings, and to obtain Replies quickly so that they can be published simultaneously with the Comments, it is required that draft Comments should be sent to the original authors for their reactions, prior to any formal submission to the editors for publication. v
CIPFA is one of the leading professional accountancy bodies in the UK and the only one which specialises in the public services. It is responsible for the education and training of professional accountants and for their regulation through the setting and monitoring of professional standards. Uniquely among the professional accountancy bodies in the UK, CIPFA has responsibility for setting accounting standards for a significant part of the economy, namely local government. CIPFA's members work (often at the most senior level) in public service bodies, in the national audit agencies and major accountancy firms. They are respected throughout for their high technical and ethical standards, and professional integrity. CIPFA also provides a range of high quality advisory, information and training and consultancy services to public service organisations. As such, CIPFA is the leading independent commentator on managing and accounting for public money. CIPFA has a particular interest in public sector accounting research, in the fields of accounting and financial reporting, internal and external audit, corporate governance and financial management. This interest is reflected in CIPFA sponsorship of the British Accounting Association (BAA) and its Public Services Accounting Special Interest Group. To find out more about CIPFA's policy and technical work and its support for the accounting research community, please contact Vernon Sore, Policy and Technical Director at CIPFA on +44 (020) 7543 5676 (e-mail: vernon.sore@cipfa.org). vii