Brett has extensive experience in professional accounting, including over 20 years as a principal in public practice. Prior to joining UTS in January 2009, Brett held an academic position at the University of Western Sydney teaching financial accounting. Brett currently also lectures in Auditing and Assurance Services.
Can supervise: YES
1. The informativeness of accounting information, and how accounting information is used by capital markets.
2. Implications of tax on company's
3. Coorporate Governance in the public sector.
Assurance and auditing; financial accounting
McClure, R., Lanis, R., Wells, P. & Govendir, B. 2018, 'The impact of dividend imputation on corporate tax avoidance: The case of shareholder value', Journal of Corporate Finance, vol. 48, pp. 492-514.View/Download from: UTS OPUS or Publisher's site
© 2017 Elsevier B.V. The objective of this paper is to evaluate whether dividend imputation, whereby tax credits may be passed on to shareholders for corporate tax paid, impacts corporate tax avoidance. This is undertaken with a pooled cross-sectional research design evaluating differences in tax avoidance across firms where there are significant differences in corporate tax avoidance incentives. Specifically, potential differences arise between firms paying dividends with tax credits, paying dividends without tax credits, and not paying dividends. Results suggest that firms paying dividends with tax credits attached are less likely to engage in tax avoidance with an average cash effective tax rate up to 16.9 percentage points higher than firms that pay dividends without tax credits, and up to 14.7 percentage points higher than firms that do not pay dividends at all. Accordingly, this provides insights into the effectiveness of dividend imputation in mitigating corporate tax avoidance, as well as providing support for the continuance of dividend imputation in Australia. Additionally, a positive association is found to exist between outside directors and corporate tax avoidance, extending to firms paying dividends with tax credits where dividend imputation is expected to mitigate such a relation. In combination, these results suggest heterogeneity of costs and benefits of tax avoidance and this is a challenge in evaluating corporate tax aggressiveness generally, and the impact of corporate governance on corporate tax avoidance in particular.
Bond, D., Govendir, B. & Wells, P. 2016, 'An evaluation of asset impairments by Australian rms and whether they were impacted by AASB 136', Accounting and Finance, vol. 56, no. 1, pp. 259-288.View/Download from: UTS OPUS or Publisher's site
This study evaluates how managers of Australian firms are implementing the regulation requiring the impairment of assets and whether asset impairments can be categorised as non-discretionary. We find some evidence that realised asset impairments are reflective of regulatory requirements. However, for the majority of firms exhibiting at least one externally observable indicator of impairment, they are not recognising asset impairments, and recognition is often delayed. Accordingly, while realised asset impairments might be categorised non-discretionary, the timing of their recognition appears highly discretionary. There is some evidence that the realisation of asset impairments increased subsequent to transition to IFRS; however, the majority of firms with indicators of impairment are still not recognising asset impairments.
In this paper we categorise accruals on the basis of how they are generated, and empirically evaluate whether this categorisation provides additional insights into future earnings and is relevant to the estimation of firm value. Specifically, we categorise accruals on the basis of whether the underlying cash flows lead or lag earnings recognition, and whether the accruals are initiating or reversing (i.e. a four-way categorisation). We demonstrate that these accrual categories are not homogeneous, have differing implications for earnings persistence and are relevant for firm valuation. Significantly, where cash flows lag earnings recognition (e.g. sales made on credit) they have greater implications for future earnings than where cash flows lead earnings (e.g. unearned revenues) and depreciation. Similarly, initiating accruals have greater implications for the persistence of earnings than reversing accruals. Paradoxically, while depreciation exhibits high persistence, it has less of an implication for the persistence of earnings than either lag or initiating earnings categories. These findings enhance our understanding of the properties of accounting income and how it is impounded into share prices.
This paper provides empirical evidence on the relative ability of regulated earnings and alternative non-IFRS performance measures to capture firm performance. It also evaluates the appropriateness of the regulatory response to the increasing incidence of non-IFRS performance measures. Our findings suggest that there is no single superior performance measure to regulated earnings and that ASICs response to the growing incidence of non-IFRS performance measures, RG230, and allowing firms to make such disclosures, was most likely appropriate.
Clinch, G.J., Fuller, D., Govendir, B. & Wells, P.A. 2012, 'The accrual anomaly: Australian evidence', Accounting & Finance, vol. 52, no. 2, pp. 377-394.View/Download from: UTS OPUS or Publisher's site
This paper investigates whether there is evidence of the accrual anomaly (Sloan, 1996) in Australia, whereby investors overestimate the impact of accruals on the persistence of earnings. While our results provide general support for the existence of the anomaly in Australia, there are a number of idiosyncrasies. First, there is evidence of Australian investors underestimating the persistence of earnings. Second, there is evidence of investors incorrectly assessing the implications of accruals and cash flows for the persistence of earnings (i.e. an accrual anomaly and a cash-flow anomaly). Third, returns to a hedged portfolio trading strategy based on reported accruals are decreasing over the three-year period subsequent to portfolio formation. Furthermore, they are statistically significant only in the first year. Additional analysis of the hedge portfolio results indicates that these results are primarily attributable to a limited number of firm-year observations in the extreme positive tail of returns.
Govendir, B., Lanis, R., McClure, R. & Wells, P.A. 2018, 'Dividend Imputation and Optimal Tax Rates', Forthcoming: American Accounting Association, 2018 Annual Meeting, National Harbor, MD (Washington, DC).
Bugeja, M., Govendir, B., Matolcsy, Z. & Pazmandy, G. 2018, 'Is there an association between Vice Chancellors' compensation and University performance', European Accounting Associatoion (EAA) 41st Annual Congress, Milan, Italy.
Govendir, B., Bond, D. & Wells, P. 2015, 'An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136', Accounting and Finance with the International Accounting Standards Board (IASB) joint Research Forum, Accounting and Finance, Hong Kong, pp. 259-288.
Bugeja, M., Govendir, B., Matolcsy, Z. & Pazmandy, G.P. 2016, 'Is There an Association between Vice Chancellors' (University Presidents') Compensation and University Rankings in Australia?', AAA - Annual Meeting and Conference, American Accounting Association, New York.
Govendir, B., Matolcsy, Z., Bugeja, M. & Pazmandy, G. 2016, 'Is There an Association between Vice Chancellors' (University Presidents') Compensation and University Rankings in Australia?', European Accounting Association, Maastricht, Netherlands.
Govendir, B., Lanis, R., McClure, R. & Wells, P. 2016, 'The Effect of Dividend Imputation on Corporate Tax Aggressiveness', AAA - Annual Meeting and Conference, American Accounting Association, New York.View/Download from: UTS OPUS
Govendir, B., Bond, D. & Wells, P. 2015, 'An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136', British Accounting and Finance Association, Annual Conference, Manchester, UK.
Govendir, B. & Wells, P. 2014, 'The impact of loss firms and economic cycles on the revelance of earnings and book value', American Accounting Association (AAA) 2014 Annual Meeting, Atlanta, Georgia, USA.
Govendir, B., Bond, D. & Wells, P. 2014, 'An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136', American Accounting Association Annual Conference, Atlanta, USA.
Govendir, B. & Wells, P.A. 2013, 'An evaluation of regulated IFRS and non-IFRS performance measures', British Accounting and Finance Association Annual Conference 2013, British Accounting and Finance Association, Newcastle, UK.
Govendir, B. & Wells, P.A. 2011, 'The influence of the accruals generating process on accruals and the accrual anomoly', 34th Annual Congress - European Accounting Association, European Accounting Association, Rome, Italy.
Clinch, G.J., Fuller, D., Govendir, B. & Wells, P.A. 2007, 'The accrual anomoly: Australian evidence', 2007 AFAANZ Conference, Accounting and Finance Association of Australia and New Zealand Conference, AFAANZ, Gold Coast, Australia, pp. 1-37.View/Download from: UTS OPUS
This paper investigates whether the accrual anomaly identified by Sloan (1996), whereby investors overestimate the impact of accruals on the persistence of earnings exists within an Australian context. While there is general support for the existence of the anomaly in Australia there are a number of idiosyncrasies in the results. First, there is evidence that in Australia investors underestimate the persistence of earnings. Second, there are greater errors in assessing the impact of cash flows on the persistence of earnings than accruals (i.e., a cash flow anomaly rather than an accruals anomaly). Third, returns to the hedged portfolio trading strategy are increasing over the three year period subsequent to portfolio formation. Analysis of these results indicates that they are primarily attributable to a limited number of firm year observations in the extreme positive tail of returns. Additionally, a range of sensitivity tests were undertaken to address the robustness of these results.