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The purpose of this paper is to illustrate how emotion display rules are influenced by relational, occupational, and cultural expectations.

The authors compare these influences by assessing anger and happiness display rules toward customers, coworkers, and supervisors across four cultures.

Overall, the findings suggest that anger can be expressed with coworkers, can be slightly leaked to supervisors, but must be almost completely suppressed with customers. In contrast, happiness expression is most acceptable with coworkers. Moreover, though culture dimensions (i.e. power distance and collectivism) do predict display rules with organizational members, display rules with customers are fairly consistent across culture, with two exceptions. French respondents are more accepting of anger expression with customers, while American respondents report the highest expectations for expressing happiness to customers.

The results support that several countries share the “service with a smile” expectations for customers, but these beliefs are more strongly held in the USA than in other cultures. Thus, importing practices from the USA to other culturally distinct countries may be met with resistance. Management must be aware of cultural differences in emotions and emotion norms, as outlined here, to improve the experience of employees of globalized service organizations.

The authors integrate social, occupational, and cultural theoretical perspectives of emotional display rules, and build on the small but growing research identifying variation in display rules by work target, specifically speaking to the globalized “service culture.”

The purpose of this paper is to examine the relation between audit tenure and how clients manage the annual earnings surprise.

A sample of 5,029 firm‐year observations from 1996 to 2003 were employed to examine whether audit tenure is negatively related to the incidence of accrual‐based‐upward earnings management to avoid negative earnings surprises; and whether audit tenure is positively related to the incidence of downward forecast guidance to avoid negative earnings surprises.

Empirical results indicate a substitution of downward forecast guidance for upward earnings management as audit tenure lengthens.

The paper provides evidence that, as the auditor‐client relationship lengthens over time, firms turn to downward forecast guidance as a substitute for upward earnings management. One possible limitation of the sample period involves the implementation of the Sarbanes‐Oxley Act (SOX) of 2002. Because of the increased financial reporting scrutiny on both management and auditors that accompanies SOX, it is likely that constraints on earnings misstatements increase after SOX. Any decrease in upward earnings management resulting from SOX would thus work against finding a relation between audit tenure and the substitution of downward forecast guidance to prevent negative earnings surprises.

This paper supports the notion that audit tenure affects firms' choices among various tactics in their attempts to avoid negative earnings surprises. The results also contribute to the ongoing debate on mandatory audit firm rotation by showing that audit quality increases with audit tenure.

Studies in psychology have long revealed that making personal choice involves multiple motivational consequences. It has only been recent, however, that the literature on neuroscience started to examine the neural underpinnings of personal choice and motivation. This chapter reviews this sparse, but emergent, body of neuroscientific literature to address possible neural correlates underlying personal choice. By conducting the review, we encourage future systematic research programs that address this topic under the new realm of “autonomy neuroscience.” The chapter especially focused on the following motivational aspects: (i) personal choice is rewarding, (ii) personal choice shapes preference, (iii) personal choice changes the perception of outcomes, and (iv) personal choice facilitates motivation and performance. The reviewed work highlighted different aspects of personal choice, but indicated some overlapping brain areas – the striatum and the ventromedial prefrontal cortex (vmPFC) – which may play a critical role in motivational processes elicited by personal choice.

The study addresses the mechanism of how cultural dimensions influence the different dimensions of emotional intelligence. Building on the cascading model described by Joseph and Newman (2010), we extend our previous findings (Gunkel, Schlaegel, & Engle, 2014) by exploring the influence of cultural dimensions on a cascading model of emotional intelligence.

We use survey data from 2,067 business students in nine countries (China, Colombia, Germany, India, Italy, Russia, Spain, Turkey, and the United States), representing 8 of the 11 cultural clusters identified by Ronen and Shenkar (2013).

We find that uncertainty avoidance and long-term orientation have a positive influence on self-emotional appraisal, which in turn influence regulation of emotion, which then has a positive influence on the use of emotion. At the same time, others’ emotional appraisal mediates the relationship between all cultural dimensions except power distance and use of emotion. We also find that uncertainty avoidance, masculinity, and long-term orientation directly influence the use of emotion, suggesting a partial mediation effect.

Our findings have to be interpreted in the light of the limitations of our approach owing to the cross-sectional study design and the limited generalizability of the sample.

We contribute to the existing literature by examining the mechanism through which culture influences the different facets of emotional intelligence and whether and how the different facets affect each other. The proposed influence of culture on a cascading model of emotional intelligence provides a more detailed and nuanced understanding of the mechanism and the pathways in which culture affects emotional intelligence.

Many psychologists posit that intrinsic motivation generated by personal interest and spontaneous satisfactions is qualitatively different from extrinsic motivation generated by external rewards. However, the contemporary neural understanding of human motivation has been developed almost exclusively based on the neural mechanisms of extrinsic motivation. In neuroscience studies on extrinsic motivation, striatum activity has been consistently observed as the core neural system related to human motivation. Recently, a few studies have started examining the neural system behind intrinsic motivation. Though these studies have found that striatum activity is crucial for the generation of intrinsic motivation, the unique neural basis of intrinsic motivation has not yet been fully identified. I suggest that insular cortex activity, known to be related to intrinsic enjoyment and satisfaction, is a unique neural component of intrinsic motivation. In this chapter, I addressed the theoretical background to and empirical evidence for this postulation.

Based on the situated focus theory of power, this chapter empirically investigates the relationship between an individual’s organizational power position and emotion recognition accuracy (ERA), and it examines individuals’ stress experiences at work as a boundary condition for this relationship.

Survey data were collected in a field sample of 117 individuals employed across various organizations in Germany. We used an established, performance-based test of ERA and applied hierarchical regression analysis to examine our model.

An individual’s power was negatively related with his or her ability to decipher others’ emotional expressions among individuals experiencing higher work stress, whereas this relationship was not significant for participants with lower stress.

Although the cross-sectional study design and data collection within one country are relevant limitations, the findings promote a better understanding of the complex relationship between power and ERA.

Given the relevance of accurate emotion perception, the results indicate that stressful work environments may be an important risk factor for organizational power holders’ personal and professional success.

The findings advance the literature on power and emotion recognition by highlighting the role of work stress as an important, heretofore neglected boundary condition that may explicate the ambiguous results in prior research.

As we move into a knowledge economy, employee skills are fast becoming an organization’s most valuable asset. Fundamental to successfully completing the complex range of tasks presented by construction projects is bringing together individuals with the correct balance of skills. No one individual has the complete set of skills to do everything themselves, which makes the team only as strong as its weakest link. Sponsored by a leading UK‐based engineering design consultancy, a specification for a technologically driven skills management system was developed. It allowed the organization, its teams and the employees, to better measure, manage and develop their skill capabilities effectively. Key issues addressed by the paper include how skill ability can be measured, how skills can be structured, and how these measurements and structure can be combined to generate skills reports. The development of a prototype application, based on the above mentioned specification, tested the validity of the specification, and demonstrated to the sponsor the benefits that can be achieved by a systematic and practical approach to capturing, reviewing, planning and managing employee skills. It also highlighted the important business rationale for using such systems.

The purpose of this paper is to shed new light on the debate about the appropriateness of the Kaizuka rule, a Samuelson type of efficiency rule for public inputs, for the provision of firm‐augmenting public inputs. Firm‐augmenting public inputs are commonly included in public infrastructure modelling.

In the microeconomic social surplus framework, and assuming perfect competition, the paper analyses how firm‐augmenting public inputs should be provided in order to maximise the welfare of consumers and producers. For this purpose, the paper develops a social surplus efficiency rule, i.e. the Boadway rule. Afterwards the question what the characteristics of firm‐augmenting public inputs mean for its efficient provision is examined.

The findings show that under perfect competition an omniscient government is unable to efficiently provide firm‐augmenting public inputs due to the characteristics of firm‐augmenting public inputs but not due to inappropriate efficiency rules.

The findings show that future research would be ill advised to model public infrastructure as a firm‐augmenting public input.

Policy conclusions drawn from models that include firm‐augmenting public inputs, such as fiscal competition and endogenous growth models, should be reconsidered.

The paper makes a strong case that firm‐augmenting public input is not a viable concept for modelling public infrastructure. Rather, firm‐augmenting public inputs are similar to free goods.

Previous research has provided mixed evidence on the relative importance of three earnings thresholds that managers seek to achieve: avoiding losses, avoiding earnings declines and avoiding negative earnings surprises. The purpose of this paper is to investigate whether firm‐specific factors influence management's preferences for an earnings threshold.

Logit models are estimated to explore the relationships between firm‐characteristics and management's perceptions of the relative importance of each threshold.

This paper finds that: large firms, firms with high growth prospects and firms with high trading volume are more concerned with avoiding negative earnings surprises, while small firms, firms with low growth prospects and firms with low trading volume are more prone to avoid earnings declines and losses; for firms with high analyst forecast accuracy (relative to a random walk model forecast), avoiding negative earnings surprises is more important than avoiding earnings declines and losses; and firms with low analyst forecast dispersion focus more on avoiding negative earnings surprises and losses, while firms with high analyst forecast dispersion focus more on avoiding earnings declines. Overall, this paper shows that firm characteristics do affect management's perceptions of the relative importance of each threshold.

This study recognizes the cross‐sectional differences in the earnings threshold hierarchy. The results suggest that regulators and practitioners should focus on different thresholds for different types of firms when investigating the mechanisms used to achieve the thresholds.

Prior literature has found that as uncertainty in a firms information environment increases, optimism increases in equity analysts’ earnings forecasts. The studies suggest an economic incentive explanation, commonly called the management‐relations hypothesis. However, there is conflicting evidence that managers would prefer pessimistic forecasts and encourage analysts to “walk‐down” their forecasts to prevent negative earnings surprises. To test these contradictory findings, this study uses an experimental setting to remove economic incentives from the analyst’s decision process and isolate the cause of observed bias in analysts’ reports. The results of the experiment show that an increase in the perceived uncertainty of the forecasting task results in significantly lower relative optimism in analysts’ earnings forecasts. This finding is consistent with a negativity hypothesis and the managementrelations hypothesis extolled in the empirical research. The findings also show that relative forecast optimism bias is positively related to the level of analysts’ buy/sell recommendations consistent with more recent findings that suggest that analysts use motivated reasoning (the tendency to process information in a manner that supports one’s goal) in their judgments of forecasted earnings and recommendations. Together, these results suggest that analysts consider and use financial information differently depending on their decision goal.