Although public accountability first became an issue in the 1980s, little has changed over the three decades since. In particular there have been calls for more public accountability research in the context of emerging economies (Uddin and Tsamenyi, 2005; Kim, 2009; Guthrie and Parker, 2012). This thesis responds by using a case study of the Nigerian Federal Ministry of Transport to examine public accountability issues in depth. It addresses the following research questions: What are the current Nigerian accountability structures and how should they work? What is the difference between what should happen (i.e. the structures) and what is happening (practices)? Why have public accountability reforms been difficult to implement effectively?This study uses a critical accounting and case study approach. Evidence was gathered using a triangulation approach, and included: interviews, documents, newspapers, speeches, photographs and observation in a number of contexts. For the analysis, this study develops a unique theoretical approach which applies New Institutional Theory (NIT) (paying particular attention to decoupling and coercive isomorphism), within broader Political Economy Theory (PET) and drawing on notions of imperialism. This study finds that Nigeria has in place formalised structures that should ensure public accountability, but there are state norms which render these structures ineffective. Hence, formalised structures do not work as intended. Based on NIT and imperialism, this study finds that the role of the state within Nigeria and the nature of relationship with external financial institutions produce coercion which is not as strong as NIT advocates, consequently, this is labelled subtle coercion. Because coercion is subtle, the state is able to resist. Furthermore, this study finds that decoupling can be understood from the cultural perspective. Moreover, based on PET and decoupling, it finds political interference to be a major issue and politicians are not genuinely interested in pursuing accountability reforms. This study contributes new and in-depth evidence to the growing body of literature about public accountability in emerging economies. Until now, no study has used the concept of imperialism to extend NIT in public accountability research. Predominantly, this study extends our knowledge of NIT and serves as a base for further studies on subtle coercion. Finally, this study informs policy makers by increasing their understanding of why transferring accountability policies from advanced nations to Nigeria and similar emerging economies may prove problematic.

This thesis examines the effects of behavioural traits and power on the governance role of audit committees (ACs). A conceptual view implicit in most extant studies is that the AC process is similar across countries, and as such research tends to focus on the existence of, and effects associated with, structural features as stipulated in governance codes based on agency theory. In contrast, this thesis is premised on the view that, while the adoption of ACs is influenced inter alia by international convergence, local country factors are also potentially a major influence affecting the role and functioning of ACs. Apart from the country factors, the causes for variations in AC’s impacts on the external audit have not been subject to much research. In response to the calls for additional theoretical work on AC operations and more studies on the AC process, this thesis introduces the concepts of behavioural traits and power to the study of ACs. Semi-structured interviews of the ACs and the participants in the AC process in Thailand were conducted during 2011 and 2012. The interviewees include 11 AC members (three being foreigners in Thai ACs), 12 external auditors and 17 other participants. The research explores how “behavioural traits”—the behaviour of interviewees as conditioned by the cultural context—affect AC governance role. Power is analysed in terms of contexts and structures, sources of power, will and skill, and content of power, a model proposed by Pettigrew and McNulty (1998; 1995).This thesis finds that while professional traits, such as AC independence, expertise, and diligence, still play a role in conditioning the AC process and related outcomes, behavioural traits and the will and skill to exercise power by the ACs and the AC participants are fundamental to the AC process. Krengjai, one of the most prominent Thai behavioural traits, has both positive and negative effects on the AC governance process, depending on the level of krengjai of the participants. Krengjai may lead to positive governance outcomes when the other participants in the AC process are krengjai of the ACs. On the contrary, governance can be compromised when the ACs are krengjai of the other participants in the AC process, whether of another AC member, management or external auditor. The participation of foreign AC members in Thai ACs in this research results in strong and diverse ACs because of their lower krengjai trait. The findings also reveal that, although there are wide variations of AC’s influence on the governance process, especially in the areas of auditor selection and the resolution of disputes between management and external auditors, a majority of ACs in this research only have ceremonial effects. On auditor selection, the main causes of AC’s ceremonial effect are the perception of similar quality among the Big-4 audit firms, favouring of management preferences regarding auditor choice by ACs and time constraints of AC members, all of which result in reduced will to exercise power by ACs. However, ACs with strong will and skill to exercise power can also effect auditor changes. The AC’s effects on dispute resolution vary, depending very much on the AC’s will to deploy power. Factors causing ACs to have weak will include the lack of AC independence and the krengjai behavioural trait of AC members. Inadequate power source (knowledge), skill and context also contribute to ACs only having ceremonial influence. The thesis reveals that for ACs to have significant influence, they need a combination of all power components appropriate to the circumstances.

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The Saudi financial reporting environment witnessed significant development in the past two decades, which is evidenced by the incorporation of the Saudi accounting standard setter (Saudi Organization for Certified Public Accountants (SOCPA)) and its subsequent development of the accounting profession. The main objective of this study is to investigate whether developments in financial reporting following SOCPA’s inception resulted in financial statement information being more value relevant over time. This study focuses solely on quantitative methods and employs secondary data in addressing the research questions. This study uses adjusted R² as a primary metric for measuring value relevance. Value relevance of accounting information has been investigated through its association with contemporaneous market values and future cash flow-predictive ability studies. The theoretical frameworks of Ohlson (1995)and Easton and Harris (1991) have been used to specify the relationship between accounting information and market values. To link accrual-based earnings and accrual components with future cash flows, the theoretical frameworks of Dechow, Kothari and Watts (1998) and Barth, Cram and Nelson (2001) have been used. A sample of firms listed in the Saudi Stock Market during the 1993–2009 time period has been used. The total number of observations included in the sample is 997 from 97 firms, which excludes firms in the banking and insurance sectors. The main findings of the value relevance of accounting information in equity valuation are: First, earning (book value) coefficients were found to be significant in (nine) all years in the price regressions. Second, earning levels and changes have not been found significantly related to stock returns in all years. Third, hedge portfolio strategies based on pre-knowledge of accounting information yielded non-zero returns. Fourth, the explanatory power of the price model increased from the 1993–1997 to the 1998–2003 time period and declined in the following time period. Fifth, the explanatory power of the return model shows no significant change over time. Sixth, earnings are not value-relevant in equity valuation for loss-making firms, while book value is value-relevant for the 1993–1997 and 1998–2004 time periods. Earnings are only asymmetrically timely in reflecting good and bad news in the 1998–2003 and 2004–2009 time periods. Findings from the predictive ability of future cash flows show that earnings provide incremental explanatory power beyond that provided by current cash flows in all three pooled cross sections. Earnings’ accrual components have also been found been found to significantly provide incremental explanatory power beyond that provided by current cash flows in predicting future cash flows. These two measures did not witness any significant change over time. Earnings as a summary measure have not been found to outperform current cash flows in their predictive ability except for three years. This study concludes that accounting information has been value relevant during the entire period of this study and that an increase in value relevance might only be present in the early period of this sample.

This study conducts research to investigate whether Nigeria gaining Extractive Industries Transparency Initiative (EITI) compliance status in 2011 has, in practice, improved transparency practices in its oil and gas industry. Its findings are the result of applying an accountability theoretical framework to the disclosure practices of the oil and gas industry. Although other studies have been published on the activities of the Nigerian oil and gas industry, they did not relate specifically to the issue of improved transparency practices in Nigeria after it achieved EITI compliance status. In line with many studies in the field, this study has adopted a mixed methods approach to analysing the issues. This study uses a questionnaire to gather perceptions from the responses of key stakeholders from seventeen different organisations in Nigeria. These data are then used to test various hypotheses. It also conducts follow-up in-depth interviews in order to gain further insights from experts in Nigeria to help interpret the results obtained. Anecdotal commentaries from the popular press in Nigeria had suggested that, despite gaining EITI compliance status there were still major shortfalls in what might be described as acceptable standards of disclosure relating to oil and gas revenue transparency. This study’s findings to a certain extent provide evidence that this is the case. In addition, it finds that there appears to be no corresponding improvement in accountability for the use of the said revenue for the good of Nigerian society. This study found out that there was information about oil revenue and other activities of the oil and gas industry, in addition to an increase of oil revenue to the Government. Further, this study discovers that there is a need for the Government and its related agencies to improve, in the management of oil and gas revenue. The Government should also allow the remedial actions to be made appropriately in the oil and gas industry, as recommended by the NEITI audit reports. This study also recommends Nigerian Government to allow civil societies and NGOs to act independently, in the activities of oil and gas industry. They should also be involved in the decision making on how to use the oil and gas revenue received. There is also a need for consultation or a group discussion among the key stakeholders of the oil and gas industry, including the government officials and those that were not accessing enough information of the oil and gas revenue, to discuss on how the Government, related agencies and the oil and gas companies will improve and maintain effective processes in providing sufficient and accurate information of the oil and gas revenue at the appropriate period. The results of this study have importance to the policy and also the body of literature.

The thesis comprises three associated empirical studies that aim at facilitating better understanding of the salient trading features that typify the sampled stock markets of Africa. The first study explored the recent trends in trading activities observed in ten African stock markets of Botswana, BRVM, Egypt, Ghana, Kenya, Mauritius, Morocco, Nigeria, South Africa and Tunisia. The exercise identified the prominent trait of sluggish price movements and low levels of stock liquidity. Further analysis on the potential causes of the identified delays in price movements distinguish high stock illiquidity levels, lack of trades and low impact of traded volumes on stock prices as the main contributors of price rigidity in these African stock markets. The second study investigated the salient trait of high levels of stock illiquidity captured using seven liquidity proxies, including a newly proposed illiquidity proxy. Further test on the performance of the different liquidity proxies on the two benchmark of price impact and held capital facilitated identification of the most appropriate liquidity proxy that effectively capture stock illiquidity levels in each of the ten African stock markets. Implications of liquidity risk on cost of capital confirmed that these markets substantially suffer from stock illiquidity issues. The last study analyzed the influence of framing prior returns under different periods on the observed stock trading activities and stock illiquidity levels in the ten African stock markets. The results showed that the use of shorter framing periods of prior returns induced increased sensitivity to the nature of evaluated returns besides causing hyped stock trading, which subsequently lowered the observed levels of stock illiquidity in these markets. On the other hand, the use of longer frames of prior returns induced increased trading of profit-making stocks with prolonged holding onto loss-making stocks; a trading behaviour propelled by disposition effect biasness among traders.