Participant observation, in which research is carried out through the direct participation of the researcher in the situation of interest, is a method of considerable interest to managerial psychologists, and others such as staff officers and other employees who carry out a similar role. Unfortunately it, and qualitative methodology as a whole, of which participant observation is a sub‐species, are approaches which are widely denigrated in the literature. This is unjust, since the method is not without its rigours, and the alternative, complementary and more highly regarded quantitative approach is not without its flaws, some of them fatal. Gives examples where participant observation is likely to be the only viable method of eliciting information, and there may be a significant public interest in such cases. There are ethical objections to covert participant observation, but even this has its valid applications. Participant observation should achieve its rightful place as a major research method with diverse application and usefulness.

PurposeIn recent years, China has been making progress in internationalizing its financial reporting system. However, it is believed that earnings management from legitimate accounting choices to fraud that violates generally accepted accounting principles, is common in the mainland. The purpose of this study is to identify the most frequently used earnings management techniques in China and the underlying factors that motivate firms to engage in earnings management.Design/methodology/approachData were gained through a questionnaire sent to managers and accountants in mainland Chinese companies.FindingsThe results show that the size and form of ownership of companies materially influence earnings management incentives and techniques in China. Public ownership companies have stronger incentives to manage earnings for management compensation, while private ownership companies pay more attention to tax expense savings. Also, several popular techniques employed in China are revealed.Originality/valueThis study presents a general picture of earnings management in China by surveying the opinions of accountants and financial managers in Chinese companies.

All directors are faced with real, or imagined, conflicts of interest or competing demands for time and resources, between shareholders and stakeholders. This has always been the case, but the contemporary emphasis on stakeholders has brought this to a head. Although astute organisations and directors maintain a suitable balance between the various demands placed upon them, and there are systematic ways to do this, there are a few voices opposed to stakeholding in any shape or form. In order to suggest that stakeholding is the viable and sustainable way for companies to proceed, the article considers and criticises one anti‐stakeholder, together with other antagonists, before bringing in endorsements from different quarters, and introducing three categories of stakeholding of which the normative holds most promise. Practical approaches to discriminating among the claims of various stakeholders are indicated.

The failure of the Enron Corporation in late 2001, apart from signalling the largest corporate bankruptcy in the USA, has also thrown up a myriad of questions about the effectiveness of contemporary accounting, auditing and corporate governance practices. There are strong historical antecedents for distrust of the corporation, latterly represented in extreme form by the anti‐capitalists. The causes of the Enron failure and the immediate response in the USA are outlined. This is followed by the response in the UK among the accountancy bodies, and the results of a comprehensive survey to assess the impact of Enron. This then leads to a comprehensive series of lessons to be learnt in the form of recommendations under the headings of serving the public interest, accounting and financial reporting, auditing, corporate governance, and education.

Controversy has always surrounded business schools: they are almost regarded as a necessary evil. Their credentials have been impugned from within academia, and from the outside business community. Periodically committees are formed and reports written on how to overcome the perceived deficiencies. From contemporary literature themes emerge, and the opportunity is taken to both look back and to look forward. Globalisation, partly mediated through the Internet, presents even greater challenges, as do the rise of corporate and virtual universities, heightened competition among schools, finding and nurturing appropriate staff, achieving critical mass and serving the entire economy, working with relevant partners inside and outside the university setting, maintaining quality, and undertaking research meeting the needs of various constituencies. Schools cannot be all things to all people, and need to prioritise their mission objectives in the light of those stakeholders for whom they will decide to dedicate most of their energies.