Search results

The Covid-19 pandemic and the war in Ukraine are a real example of how uncertainty can trigger radical changes in the socio-economic system on a macro and micro scale. The indicated events contributed to the increase in the level of uncertainty, and its effects appeared in the real conditions of the functioning of international communities.

The purpose of the chapter is to determine the impact of the Covid-19 pandemic and the war in Ukraine on the situation of Polish consumers and the resulting behaviour in the context of business–consumer relations.

This goal was achieved through literature studies, analysis of changes in selected indicators of the economic situation and analysis of basic variables determining the relationships between consumers and suppliers.

The presented research results allow us to conclude that both the pandemic and war had an impact not only on the economic indicators but also the financial standing of households. We are seeing an increase in the differences between the nominal and real value of these incomes. Inflation is on the rise, forcing households to change their spending structure and look for savings. Of course, there have been and will be companies that do not have to be significantly affected by the effects of these events. In this group, companies related to the provision of IT infrastructure and specialising in establishing multidimensional relationships in the digital space should be pointed out.

In a supplemental analysis, Krawczyk and Sawyers (1995) (K&S) found evidence that variations in engagement letter language affect the likelihood that taxpayers hold CPAs “responsible” for additional tax assessments, a broad measure of risk. We extend the K&S analysis by examining the effect of engagement letters on a larger set of precisely-defined tax practice risks. Our factor analysis identifies two risk constructs relating to client loss and reimbursement. MANCOVA shows that engagement letters reduce the likelihood of incurring both categories of risks. Also, some evidence suggests that higher-income participants are greater tax practice risks, and subjects with external loci of control represent higher client loss and reimbursement risks. Finally, we find that engagement letters reduce the percentage of professional fees subjects request as reimbursements following an unfavorable IRS audit and that prior legal suits, gender, age, and income level also may affect the fee reimbursement requested.

We study how giving depends on income and luck, and how culture and information about the determinants of others’ income affect this relationship. Our data come from an experiment conducted in two countries, the USA and Spain – each of which have different beliefs about how income inequality arises. We find that when individuals are informed about the determinants of income, there are no cross-cultural differences in giving. When uninformed, however, Americans give less than the Spanish. This difference persists even after controlling for beliefs, personal characteristics, and values.

As with most professional service occupations, liability claims are a major concern for accounting professionals. Most of the academic research on accountants’ professional liability has focused on audit services. This study extends research on accountants’ professional liability by examining liability claims arising from the provision of tax services. In addition to a descriptive analysis, the current study explores the role of merit in tax malpractice litigation. Hypotheses are developed based on the legal construct of claim merit, which requires the presence of accountant error and damages as a result of that error for a claim to be considered meritorious. The hypotheses are tested using logistic and OLS regression of 89 actual claims filed with an insurer of tax professionals. The results suggest that the components of merit are significant in determining both the presence of compensatory payments to the client and the dollar amount of those payments, although the hypothesized interaction effect is only significant for the dollar amount of compensatory payments.

Purpose – Recruiting sufficient participants who adequately represent the population of interest is an ongoing issue for accounting experimental researchers. This study investigates the impact of recruitment method on the number of participants, effort on the experimental task, and sample bias with respect to three individual difference variables (locus of control, social desirability response bias, and prosocial behavior). We employ five different recruitment methods: three forms of monetary compensation and two levels of an appeal for help with a research project.

Methodology – We recruit students in five sections of the same course taught by the same instructor (not one of the researchers), manipulating recruitment method across sections. Immediately following recruitment, participants completed a simple experimental task and scales for the individual difference variables.

Findings – We find that the method of recruiting resulted in different response rates, with appeal from a fellow student yielding the highest response rate, and appeal from a professor yielding the lowest response rate. Effort was greatest for the appeal from the professor and least for the draw. While the five subsamples that resulted from the five recruiting methods were not different with respect to the individual difference variables, the relationship of those variables to effort did vary.

Research Implications – Our findings suggest that researchers must carefully consider recruitment method not only in terms of how many participants can be attracted, but also in terms of the potential impact of the manner in which recruitment was conducted on the attitudes and behaviors of the participants during the experiment.

Tourism, as a system, develops strategies for risk prevention and mitigation. The shock generated by the COVID-19 pandemic is different when compared with previous events because it is more intense and prone to structural changes. Tourists' perceptions condition their behaviour and decisions, with adverse results on travel and tourism consumption; and hygiene and health risks generate a cause-effect relationship on destination specificities.

From globalisation to risk perception and crisis management, in a framework where technology, communication and digital content represent undeniable importance, we are facing circumstances especially conducive to the redesign of the collective future, where the sustainability of tourism is a collective goal, arising from the right balance between the competitiveness of destinations and climate action.

Given the prospects for the next decade, health and hygiene are structural factors to be considered in decision-making processes. Thus, so the proposed approach contributes to the awareness, by the various stakeholders, of its importance and the need to implement methods and processes compatible with more inclusive and responsible tourism.

Purpose – This chapter offers an integrative review of psychological and neurobiological differences between younger and older adults that might impact economic behavior. Focusing on key health economic challenges facing the elderly, it offers perspectives on how these psychological and neurobiological factors may influence decision-making over the life course and considers future interdisciplinary research directions.

Methodology/approach – We review relevant literature from three domains that are essential for developing a comprehensive science of decision-making and economic behavior in aging (psychology, neuroscience, and economics), consider implications for prescription drug coverage and long-term care (LTC) insurance, and highlight future research directions.

Findings – Older adults face many complex economic decisions that directly affect their health and well-being, including LTC insurance, prescription drug plans, and end of life care. Economic research suggests that many older Americans are not making cost-effective and economically rational decisions. While economic models provide insight into some of the financial incentives associated with these decisions, they typically do not consider the roles of cognition and affect in decision-making. Research has established that older age is associated with predictable declines in many cognitive functions and evidence is accumulating that distinct social motives and affect-processing profiles emerge in older age. It is unknown how these age differences impact the economic behaviors of older people and implies opportunities for path-breaking interdisciplinary research.

Originality/value of the chapter – Our chapter looks to develop interdisciplinary research to better understand the causes and consequences of age-related changes in economic decision-making and guide interventions to improve public programs and overall social welfare.

Kenya basks of a vibrant digital financial sector from her mobile and digital financial services that have led to financial inclusions. On the flip side of it, the Kenyan digital loans sector is facing ethical scrutiny from all and sundry. Issues that are arising include a customer base being trapped in the debt trap, inflated pricing model, high interest rates, and short-term loan tenures. The sector is shrouded in poor transparency and many consumer rights infringement. Undeniably, providers inadvertently breach consumers' right to privacy and tend to promote ‘push loans’ with unsolicited messages to the vulnerable. Additionally, the use of Artificial Intelligence (AI) in determining the suitability of loan applicants via algorithms is seen to be intrusive. With consumer data being mined from the mobile phone, data utilisation, mobile payment usage, airtime usage without users' express consent, it renders the sector an unethical jungle for hunting consumers. Furthermore, consumers who by default end up receiving aggressive uncouth and unprofessional treatment in a bid to recover the unpaid loans. New Product Development (NPD) should, therefore, listen to the consumer's voice for ethical concerns to be reflected in the final product. Thus, marketers should endeavour to give ethical dimensions in NPD a measurable attribute by constantly reviewing it. This chapter examines the ethical implications of developing digital loans in Kenya.