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1 – 10 of over 18000Qi Dai and Jingyi Zhang
The purpose of this paper is to investigate the interaction effect between customer satisfaction and monetary incentives on online reviews and test the moderating effect of…
Abstract
Purpose
The purpose of this paper is to investigate the interaction effect between customer satisfaction and monetary incentives on online reviews and test the moderating effect of personal characteristics, filling the research gap in online review behavior from the senders.
Design/methodology/approach
Using a project role-playing technique that is widely applied in the marketing field, the authors conducted two experimental studies in a laboratory setting with student subjects and collected 390 and 362 acceptable samples for analysis in Studies 1 and 2, respectively.
Findings
This research confirms the positive effects of satisfaction and incentives on review scores and tests the interaction effect between satisfaction and incentives on review scores with the moderating effects of moral judgment and sensitivity of promotion. Incentives could strengthen customers’ review scores except under small incentives situation where dissatisfied customers decrease scores instead. Additionally, the moderating effects of moral judgment and sensitivity of promotion are more significant in the case of dissatisfaction.
Research limitations/implications
As this study focuses exclusively on a single service context and uses student samples, limitations persist regarding the generalizability of the results.
Practical implications
The research provides new insights for marketers on designing effective incentive programs, as well as how to better balance costs and benefits in promotion strategies.
Originality/value
This is one of the first studies to explore the interaction effect between satisfaction and incentives on online reviews considering the moderating effects of moral judgment and sensitivity of promotion. As a result, a new model is forwarded.
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Zuraidah Mohd‐Sanusi and Takiah Mohd‐Iskandar
This study examines the mediating effect of effort on the relationship between performance incentives and audit judgment performance under different levels of task complexity.
Abstract
Purpose
This study examines the mediating effect of effort on the relationship between performance incentives and audit judgment performance under different levels of task complexity.
Design/methodology/approach
Using an experimental research design, subjects are randomly assigned to three performance incentive groups: control, financial and feedback. Each subject is required to perform two experimental tasks of two complexity levels (low and high).
Findings
Results indicate that performance incentive variables are positively related to audit judgment performance. Hierarchical regressions of moderated‐mediation analyses support the hypotheses that the mediation effect of effort on the relationship between performance incentives and audit judgment performance occurs under low task complexity and not under high task complexity. In other words, the positive relationship between effort and audit judgment performance is weakened under high task complexity.
Research limitations/implications
The external validity of this study is limited since the audit case contains less information than the real audit environment. This study contends that the expectancy theory can in fact be used to generate empirical prediction on audit judgment performance. The reliance on expectancy theory to supply theoretical mechanism by including the moderating variables provides explanation on when effort should and should not have positive effects on audit judgment performance.
Practical implications
Audit firms need to be careful on the performance incentives offered because incentives affect job output quality. Performance incentives may reduce job turnover and job tension among auditors. In addition, audit firms should ensure that the auditors have proper training to increase their skills and knowledge to help auditors to carry out various job complexities.
Originality/value
This paper can enhance knowledge and understanding on how motivational and environment factors influence audit judgment performance.
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This case covers the framework and process to determine fair value as specified in International Financial Reporting Standards (IFRS) 13. It illustrates an instance in which…
Abstract
Theoretical basis
This case covers the framework and process to determine fair value as specified in International Financial Reporting Standards (IFRS) 13. It illustrates an instance in which auditors interpret the concept of fair value to be consistent with other principles in standards such as the principle of prudence in the conceptual framework. In addition, a lot of the discussion in the case is applicable to accounting education in any regulatory jurisdictions given the convergence of US generally accepted accounting principles (GAAP) and IFRS 13. In addition, while fair value accounting may have been designed to give investors more useful information, in practise it could involve highly subjective judgement and the resulting implementation may be affected by incentives of different stakeholders. The CK Tang’s case provides an excellent opportunity to discuss incentives of varies parties in determining the fair value in financial reporting decisions. In short, this case could be a good jumping-off point to talk about management and auditors’ incentives in financial reporting in general.
Research methodology
Publicly available information (e.g. financial reporting standards, corporate announcements and reports, news reports) was used as the basis for this case.
Case overview/synopsis
The case centres on an iconic Singaporean integrated retailing and property landlord entity: Tang holdings. As part of its succession planning, the company’s founding family decided to take its listing arm, C.K. Tang Limited (CK Tang hereafter), private in May 2006. The Tang brothers, who represented the controlling family, initiated several attempts to delist the company. The minority shareholders of CK Tang were unhappy that the offer price was below the net asset value of the company. The minority shareholders also highlighted that the reported fair value of the flagship Tang Plaza complex understated its highest and best use and might not possibly comply with International Financial Reporting Standards (IFRS) 13.
Complexity academic level
The case can be used for class discussions with undergraduate students or master students in intermediate accounting courses.
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Martin T. Stuebs and C. William Thomas
According to the SEC, the proposed roadmap for adopting principles-based International Financial Reporting Standards (IFRS) is still a priority. The adoption of IFRS will…
Abstract
According to the SEC, the proposed roadmap for adopting principles-based International Financial Reporting Standards (IFRS) is still a priority. The adoption of IFRS will ultimately demand greater emphasis on practitioner judgment (Mintz, 2010). This chapter focuses on the need for building the judgment skills of the practitioner. Our methodology follows a three-step process. We start with accounting standards, reviewing similarities and differences between “rules-based” and “principles-based” standards and conclude that, while applying any standard requires judgment, applying principles-based standards requires more judgment. We then focus on preparer incentives that can influence this requisite judgment. We use the “fraud triangle” to analyze the influence of incentives on judgment under each standards setting approach. Our third and most important step involves equipping practitioners to make judgments in the presence of incentives. We present and discuss a model that considers economic, social (legal), and ethical dimensions for making principled judgments in the presence of incentives and advocate-improved education for accountants in implementing that model.
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The purpose of this paper is to explore the effects of varying motivation induced by financial incentives and common uncertainty caused by time pressure on audit judgment…
Abstract
Purpose
The purpose of this paper is to explore the effects of varying motivation induced by financial incentives and common uncertainty caused by time pressure on audit judgment performance.
Design/methodology/approach
The experimental method is used to examine how financial incentives and time pressure affect audit performance, based on predictions by both economic and behavioral theories. The relative performance contract and the profit sharing contract are two incentive schemes considered. To achieve the incentive effect on subjects when conducting the experiment, all subjects were compensated with real cash rewards, according to their incentive contracts as randomly assigned.
Findings
As predicted, major results show that both incentive contract and time pressure affect audit judgment performance. The audit performance is generally better under the relative performance contract than under the profit sharing contract. Additionally, it is demonstrated that an increase in the level of time pressure significantly improves recall, recognition, and total efficiency under both types of incentive contracts, but impairs recall and total performance, particularly under the relative performance contract. Moreover, the reduction of recall and total performance under the relative performance contract is significantly greater than under the profit sharing contract. Nevertheless, in this case, the relative performance contract still outperforms the profit sharing contract.
Research limitations/implications
The findings suggest the relative superiority of the relative performance contract in comparison with the profit sharing contract in improving auditors' judgment performance for structured tasks.
Practical implications
The relative performance contract would motivate junior auditors to exert more effort to increase their performance in the work environment of increased time pressure. The audit firms may incorporate relative performance evaluations into incentive schemes, to improve junior auditors' performance for structured tasks.
Originality/value
The paper is of value to audit firms in the design of performance‐contingent incentive contracts.
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Saligrama Agnihothri and Raghav Agnihothri
The purpose of this paper is to develop a framework for the application of evidence-based management to chronic disease healthcare.
Abstract
Purpose
The purpose of this paper is to develop a framework for the application of evidence-based management to chronic disease healthcare.
Design/methodology/approach
Chronic healthcare is specially characterized by recursive patient-physician interactions in which evidence-based medicine (EBM) is applied. However, implementing evidence-based solutions to improve healthcare quality requires managers to effect changes in many different areas: organizational structure, procedures, technology and in physician/provider behaviors. To complicate matters further, they must achieve these changes using the tools of resource allocation or incentives. The literature contains many systematic reviews evaluating the question of physician and patient behavior under various types and structures of incentives. Similarly, systematic reviews have also been done regarding specific changes to the healthcare process and their effectiveness in improving patient outcomes. Yet, these reviews uniformly lament a lack of appropriate data from well-organized studies on the question of “Why?” solutions may work in one instance while not in another. The authors present a new theoretical framework that aids in answering this question.
Findings
This paper presents a new theoretical framework (Influence Model of Chronic Healthcare) that identifies: the critical areas in which managers can effect changes that improve patient outcomes; the influence these areas can have on each other, as well as on patient and physician behavior; and the mechanisms by which these influences are exerted. For each, the authors draw upon, and present the evidence in the literature. Ultimately, the authors recognize that this is a complex question that has not yet been fully researched. The contribution of this model is twofold: first, the authors hope to focus future research efforts, and second, provide a useful heuristic to managers who must make decisions with only the lesser-quality evidence the literature contains today.
Originality/value
This model can be used by managers as a heuristic either ex ante or ex post to determine the effectiveness of their decisions and strategies in improving healthcare quality. In addition, it can be used to analyze why actions or decisions taken achieved a given outcome, and how best to proceed to effect further improvements on patient outcomes. Last, the model serves to focus attention on specific questions for further research.
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Noriyuki Tsunogaya, Satoshi Sugahara and Parmod Chand
The purpose of this paper is to examine the effects of a principles-based accounting standard with guidance (principles-with-guidance approach), stringency (conservativeness) of…
Abstract
Purpose
The purpose of this paper is to examine the effects of a principles-based accounting standard with guidance (principles-with-guidance approach), stringency (conservativeness) of numerical thresholds, and incentives (high or low debt-equity ratio environment) on the judgments of Japanese auditors in a lease accounting setting.
Design/methodology/approach
To reflect Japanese auditors’ judgmental features, this study adopts a quasi-experiment that uses both manipulation for different environments (i.e. stable or critical financial condition) and perceptions about the importance of “principles” and “guidance” in different types of lease accounting standards (i.e. substantially all, approximately 90 and 88 percent).
Findings
“Principle” (substantially all) has a positive effect, while “guidance” (approximately 90 percent) has a negative effect on encouraging Japanese auditors to capitalize lease transactions. “More stringent guidance” (approximately 88 percent) has a positive effect only when clients are in critical financial conditions. Other findings indicate that judgments of Japanese auditors are strongly influenced by their colleagues’ perceived judgments.
Originality/value
This is the first quasi-experiment to examine Japanese auditors’ professional judgments using a lease accounting setting. To find out whether Japanese auditors interpret and apply International Financial Reporting Standards (IFRS) in the similar manner as their counterparts in other countries will be important when Japanese policymakers make their final decision regarding the adoption of IFRS. The discussion and findings also contribute to the International Accounting Standards Board (IASB) with regard to enhancing global convergence of financial reporting.
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Takiah Mohd Iskandar, Ria Nelly Sari, Zuraidah Mohd‐Sanusi and Rita Anugerah
The purpose of this study is to examine the mediating effect of effort on the relationship between both accountability pressure and self‐efficacy, and auditors' performance.
Abstract
Purpose
The purpose of this study is to examine the mediating effect of effort on the relationship between both accountability pressure and self‐efficacy, and auditors' performance.
Design/methodology/approach
The paper uses a between‐subjects experimental research design with accountability pressure manipulated randomly to two groups, accountable and non‐accountable. Each participant is required to perform internal control tasks.
Findings
Based on partial least square (PLS) analysis, results indicate that both variables, i.e. accountability pressure and self‐efficacy, are positively related to audit judgment performance through the process of high level of effort. High self‐efficacious participants who received accountability pressure would have high levels of effort, which in turn increase audit judgment performance.
Research implications/limitations
This study provides further evidence on the effect of motivational factors on auditors' performance. Understanding the mediating role of some motivational variables is crucial in designing a continuous development program to enhance auditors' performance. The proposed framework of effort as a mediating variable is consistent with Libby and Lipe and Chang et al., who argue that accountability pressure and self‐efficacy would cause individuals to increase their effort in order to perform better.
Originality/value
The paper contributes to the literature on motivational factors that would explain the variability in audit judgments in coping with complex audit tasks.
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This article proposes a model for justifying decisions that integrates both ethical theory and practice. The usefulness of basic theory and applied practice in justifying…
Abstract
This article proposes a model for justifying decisions that integrates both ethical theory and practice. The usefulness of basic theory and applied practice in justifying decisions is a subject of continued debate. This article sees both as useful. It approaches moral justification from the perspective of responding to incentives. In this justification process, moral confrontation is the process of using theory to identify and analyze incentives and incentive conflicts. Moral imagination is a process of thinking that relies on practical intuition, self-reflection, and moral ideals to reconcile the identified incentives and incentive conflicts. Both theory and practice play vital and complementary roles in this moral justification process. The primary belief is that the proposed combination of moral confrontation and moral imagination can lead to advances in both the theory and practice of business ethics.
Jeffrey J. Haynie, Daniel J. Svyantek, Matthew J. Mazzei and Virajanand Varma
– The purpose of this paper is to examine the relations of job insecurity with pay and incentive satisfaction and the role of overall justice in these relationships.
Abstract
Purpose
The purpose of this paper is to examine the relations of job insecurity with pay and incentive satisfaction and the role of overall justice in these relationships.
Design/methodology/approach
The authors surveyed employees of an industrial equipment sales firm located in the Southeastern USA. Surveys were completed by 151 employees using instruments assessing job insecurity, overall justice, pay satisfaction, and incentive satisfaction.
Findings
The study results indicated job insecurity is negatively related to both pay and incentive satisfaction. Further, the study found that overall justice mediated the job insecurity to pay satisfaction relationship, but not the job insecurity to incentive satisfaction relationship.
Research limitations/implications
Because overall justice only explained the job insecurity-pay satisfaction relationship, future research should examine other potential mediators to better understand these disparate effects when compared with incentive satisfaction. Future research should also examine the model with a larger sample using a time-lagged design to further mitigate the limitations of the study.
Practical implications
The results of this study suggest that employees who contain a strong fear of job loss tend to experience reduced pay and incentive satisfaction levels. Managers should do what they can to limit the impact of job insecurity on these attitudes and provide additional training to employees in coping strategies so that they might better deal with the job insecurity stressor.
Originality/value
Integrating the literatures on stress appraisal and organizational justice, the empirical model provides understanding of how job stressors and perceptions of organizational justice influence pay and incentive satisfaction.
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