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The purpose of this paper is to investigate how accountants interpret verbal uncertainty expressions with a focus on numeric‐to‐verbal translation.

Accounting for loss contingencies (SFAS 5) were chosen as a setting to study this research question. The approach used was a behavioral experiment where participants choose probability phrases for 11 numeric probabilities for two default conditions.

The results indicate a clear pattern, where thresholds for accrual and disclosure decisions can be easily identified in the numeric‐to‐verbal translation. Also, the base rate appears to affect the assessment of the uncertainty related to potential default, but does not affect mapping of numeric values to verbal terms.

The use of 11 probabilities does not cover all regions of the [0, 1] probability line and may leave regions of the probability interval not mapping to any SFAS 5 phrase. Also, this study uses upper‐level undergraduate accounting students, whose judgments are similar to novice auditors but may differ from experienced auditors.

The evidence suggests that unlike verbal‐to‐numeric translation, which is unstable and context dependent, numeric‐to‐verbal translation is quite consistent among individuals, and is unlikely to be affected by the contextual information. The results complement prior findings in auditors' judgment, and suggest that interpreting uncertainty expressions can be improved if auditors are encouraged to use numeric‐to‐verbal translation when they apply accounting and auditing standards in forming an opinion on the financial report.

This is the first paper to examine the mapping of numeric probabilities to verbal probability terms.

The author argues and explains that the indigenous Eastern epistemological frame of yin-yang balancing can be taken as a unique system of thinking toward a meta-perspective. It is not only deeply rooted in the indigenous Eastern culture traditions, but also bears salient global implications, especially in the domain of paradox management. The purpose and contribution of this chapter are twofold: (1) to explain the unique and salient features of yin-yang balancing (the “either/and” system to reframe paradox into duality as partially conflicting and partially complementary, both spatially and temporarily) as compared with the Western logic systems (the “either/or” and “both/or” or “both/and” systems); and (2) to explore the global implications of the “either/and” system for future paradox research, including the three unique themes of overlap between opposites with the “seed” of one opposite inside the other; threshold from the contingent balance between partial separation and partial integration in line with specific contexts through three operating mechanisms, and knot for the special role of third-party to shift paradox from a dyadic level to a triadic and even a multiplex level.

The aim of this paper is to investigate the contingency effect of natural resource abundance on the foreign direct investment (FDI)–growth relationship in a nonlinear (threshold) model.

The authors use the fixed effect threshold model for panel data with annual frequency for 83 countries and estimate threshold level of natural resource abundance that split the sample and change the FDI–growth relationship.

The results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold.

The results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold. The results are robust for alternative indicators of natural resources, i.e. natural resources rents.

The purpose of this paper is to show some techniques to perform line contingency screening efficiently.

Computation efficiency and speed are mandatory requirements of contingency screening, especially when multiple outages need to be considered. The classical bounding principle, i.e. the idea that the effects of an outage are restricted to the area where the outage occurs, becomes increasingly difficult to apply to multiple contingencies. In the present work a comprehensive strategy, based on a systematic elimination of non-dangerous outages, is shown to be easily applicable to both single and double contingencies.

Tests show the efficiency of the proposed methods with reference to test systems and to an actual network with up to 800 buses.

The bounding approach is the basis of most efficient contingency screening methods based on the linear dc load flow model. In the present work the method is re-considered to improve computational efficiency. The symmetry of the dc Jacobian and the sparse inverse technique are suitably exploited in the evaluation of line outage distribution factors; this also allows a combination of single and double line contingency screening into a single procedure.

Strategic alignment is a theory-based state that is considered as crucial for organizations in order to realize performance gains from information technology (IT) investments and deployments. Within the domain of purchasing and supply chain management there has been a growing interest on how purchasing strategy can be effectively aligned with IT and what conditions facilitate this state. The purpose of this paper is to investigate complex causal relationships of contingency elements that are key in enabling the “fit” between purchasing strategy and IT.

The paper employs a configuration theory approach and propose that purchasing alignment is dependent upon patterns of multiple contingencies. In adherence with contingency theory, the authors group these elements as relating to strategic orientation, organizational factors, and purchasing decisions. On a sample of 172 international companies the authors then apply the novel methodology of fuzzy set qualitative comparative analysis (fsQCA).

The paper empirically demonstrates that depending on the strategic orientation that a company follows, there are alternative combinations of elements that lead to high purchasing alignment. For companies following an operational excellence strategic orientation, a high contract binding scheme, or a small firm size facilitates purchasing alignment. Enabling elements for product leadership companies include a decentralized purchasing structure, a broad supplier base, and a large firm size. Purchasing alignment for customer intimacy companies is supported by a centralized purchasing structure, loose contract binding, and a large supplier base.

The findings of this study suggest that practitioners aiming to attain a state of purchasing alignment should consider a number of contingency elements in the process. The paper shows that there is equifinality in the configurations that lead to purchasing alignment. This means that attaining purchasing alignment is dependent upon various clusters of contingency elements which must be taken into account when formulating a purchasing strategy.

In contrast with past studies examining purchasing alignment as a result of the isolated impact of several antecedents, we applied a configuration theory approach to demonstrate that it is facilitated by the combined impact of a set of cause-effect relationships. In cases were non-linear and synergistic relationships exist between independent variables, this type of research may be a viable alternative.

The purpose of this paper is to apply the wavelet thresholding technique in order to analyze economic socio-political situations in Tunisia using textual data sets. This technique is used to remove noise from contingency table. A comparative study is done on correspondence analysis and classification results (using k-means algorithm) before and after denoising.

Textual data set is collected from an electronic newspaper that offers actual economic news about Tunisia. Both the hard and the soft-thresholding techniques are applied based on various Daubechies wavelets with different vanishing moments.

The results obtained have proved the effectiveness of wavelet denoising method in textual data analysis. On one hand, this technique allowed reducing the loss of information generated by correspondence analysis, ensured a better quality of representation of the factorial plan, neglected the interest of lemmatization in textual analysis and improved the results of classification by k-means algorithm. On the other hand, the proximities provided by the factorial visualization validate the economic situation of Tunisia during the studied period showing mainly a stable situation before the revolution and a deteriorated one after the revolution.

The results are the first to analyze economic socio-political relations using textual data. The originality of this paper comes also from the joint use of correspondence analysis and wavelet thresholding in textual data analysis.

Most organisations do not have established guidelines for the estimation and management of contingency funds. The purpose of this paper is to identify the risk factors at the construction phase causing project cost overruns, and a reliable method for the estimation of contingency sum is established.

Combined qualitative–quantitative exploratory methods were used. Qualitative interviews were conducted with five expert practitioners working in a Public Works Department in Zambia to determine how contingency sum is estimated and to explore what risk factors should be considered. Quantitative regression used cost and risk data collected from 30 recently completed building and refurbishment projects.

The qualitative study indicated that the project budget overruns constitute a major issue. This finding is in line with the paired-samples t-test results which show that the difference between the total variations and the initial contingency sum tends to be significant. The regression analysis proved that the contingency sum was positively correlated to the estimated contract sum. The qualitative interview results and Pearson correlation analysis also showed that contingency sum and project complexity tend to have a significant correlation. The research also demonstrates that the type of works is not a direct significant factor.

Because the projects used for the study were relatively short, duration of the project and economic factor of tax rate, exchange rate and inflation rate were not examined in the multiple regression analysis. Further studies should be conducted on longer projects to test out whether these risk factors are significant in influencing the project contingency.

The results demonstrate that the multiple regression method can be applied as a reliable tool to predict contingency sums. Accurate contingency sums and project budget estimates benefit construction clients and their project managers. Individual project conditions should be carefully examined when assessing the contingency.

This research establishes a reliable regression method for the assessment of the contingency for the pre-tender estimate which has significant impact on the project feasibility and cost control, using related risk factors involved in construction contingency and client’s contingency.

This paper aims to explore effective supply chain principles, through the theory of transaction cost economics, as measures to improve current contingency pharmaceutical item shortfalls in the Air Force Medical Service (AFMS) Contingency Pharmaceutical Programme.

In this research, AFMS contingency pharmaceutical data was collected from various databases, including the Joint Medical Asset Repository, Medical Contingency Requirements Workflow and the Medical Requirements List. Through the methodology of cost-benefit analysis, alternative sourcing and fulfilment practices are evaluated.

The findings of this research indicate that the application of centralized purchasing principles, in an effort to leverage prime vendor contract fill rates for shortage items, can lead to 12%–17% increases in pharmaceutical material availability across the programme.

This research clearly shows that consolidating demand for shortage items across Active Duty War Reserve Material assemblages, though applications of centralized purchasing principles that leverage prime vendor contract fill rates, can lead to substantial increases in material availability at costs that justify the calculated benefits.

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

Notwithstanding a number of studies that led to the development of different performance measurement systems incorporating contingency factors, very scarce research on the variety of balanced scorecards (BSCs) indicators used in performance management were carried out in France. Accordingly, the purpose of this paper is to investigate if there is a significant relationship between contingency factors and the content of balanced scorecards in terms of the degree of use and a variety of performance indicators.

In total, 2,580 French intermediate-sized enterprises (ISE) were identified through the Diane Database (Bureau Van Dijck) then contacted by the means of a survey questionnaire that was built online using LimeSurvey software. This study receives 156 complete and usable responses. The research model was tested through multiple regressions and multi-group analyses.

The results show that ISEs financial managers do not use, to the same extent, all the indicators constituting the four dimensions of BSCs. Therefore, BSCs implemented by French ISEs can be described as “unbalanced”. Furthermore, three contingency factors (computerization, decentralization and market listing) were found to be significantly associated with the variety and degree of use of performance indicators in balanced scorecards. The remaining contingency and control factors did not seem to influence the degree of use and variety of BSCs content.

The findings highlight the importance of developing tools that have the potential to evolve in line with organizational, environmental and technological changes. Furthermore, this paper provides food for thought for financial directors and management controllers as to how to better meet senior management, managers and operational staff information needs.

While there is scarce academic work on BSCs in ISEs, the present research is, to the best of the knowledge, one of the rarest to apply and test a contingency approach on a sample of ISEs.