Search results

This study examined, in an organizational budgeting context, several important psychological processes surrounding procedural justice. Specifically, the study tested a causal model in which voice has value‐expressive and control‐mediated effects on procedural justice, and procedural justice has positive effects on organizational commitment. Data were gathered with a survey of production workers (N = 157) and analyzed with a latent variable structural equation model. The results supported control‐mediated voice effects on procedural justice and procedural justice effects on organizational commitment, but failed to confirm value‐expressive voice effects. Based on the findings, we argue that value‐expressive voice effects may be less prevalent than previous research has suggested.

Deception detection is instrumental in business management but professionals differ widely in terms of deception detection performance. The purpose of this paper is to examine the genetic basis of deception detection performance using the classic twin study design and address the research question: how much variance in individual differences in deception detection performance can be accounted for by the variance in genetics vs environmental influences?

In total, 192 twins, with 65 pairs of monozygotic (identical) twins and 31 pairs of dizygotic (fraternal) twins participated in an experiment. A series of behavioral genetic analyses were performed.

The variability in deception detection performance was largely determined by differences in shared and non-shared environments.

The subjects were solicited during the Twins Days Festival so the sample selection and data collection were limited to the natural settings in the field. In addition, the risks and rewards associated with deception detection performance in the study are pale in comparison with those in practice.

Deception detection performance may be improved through training programs. Corporations should continue funding training programs for deception detection.

This is the first empirical study that examines the complementary influences of genetics and environment on people’s ability to detect deception.

To summarize the findings of empirical studies the authors have conducted regarding budgetary procedures fairness and to discuss key implications of these findings.

Summary and synthesis of the authors' empirical research.

Identifies criteria for, and types of attitudinal and behavioral reactions that managers have toward, formal budgetary procedures fairness and budgetary procedures implementation fairness. Provides information regarding how the two forms of budgetary procedures fairness work together to influence managers' attitudes and behaviors, and how they reduce managers' negative reactions to unfavorable budgets. Presents reasons that fair budgetary procedures are important to managers.

The authors' studies used questionnaire data where all variables were measured at a single point in time, which provides little control over unmeasured variables and direction of causality. Future research should seek to expand the sets of criteria for and reactions toward budgetary procedures fairness, as well as to further detail the processes by which budgetary procedures fairness works. Also, relationships involving budgetary procedures fairness should be examined by means of laboratory experiments.

Underscores the importance of promoting formal budgetary procedures fairness and budgetary procedures implementation fairness in organizational budgetary systems, and provides concrete guidance in this regard.

Provides useful information to accounting and audit staff, budget committee members, supervisors, and other employees involved in designing and implementing organizational budgetary systems and to budgeting researchers.

The motive to manage impressions has been broken down into protective and acquisitive orientations. A protective orientation exists when an individual is concerned primarily with encountering disapproval, rather than approval, from the relevant audience. An acquisitive orientation exists when an individual is concerned primarily with obtaining approval from the audience. This study tests the proposition that organizational managers have primarily an acquisitive orientation. The affective sentiments of 95 international middle‐ and upper‐level business managers toward their organization, its leaders, and its business control mechanisms were compared with their perceptions of the acquisitiveness and protectiveness of their work environment. The results indicate that affective sentiments of managers are correlated with the acquisitiveness, but not the protectiveness, of the work environment, supporting the notion that managers have primarily an acquisitive orientation.

One of the most important aspects of managerial accounting is the accumulation of costs in the manufacturing process. This data is of value to the manager owing to the information it provides him for planning, control, and decision making. The purpose of this paper is to describe the different costing systems, compare them, and show how they affect the accumulation of costs for product costing, as well as decision making.

This study reviews the existing literature on the U.S. peer review system and the Public Company Accounting Oversight Board (PCAOB) inspection system to assess our knowledge of audit regulation. The traditional self-regulatory system of the accounting profession came to an end, in 2002, when the PCAOB was established to oversee the audit firms of publicly traded companies. This paper contributes to the controversial debate about self-regulation versus independent regulation by analyzing, categorizing, and comparing the research findings on the peer review system and the PCAOB system along three dimensions: the validity of peer reviews and PCAOB inspections, the recognition of reviews and inspections by decision-makers (e.g., investors, bankers, committees), and the effect of reviews and inspections on audit quality. Synthesizing the research on the regulatory regimes suggests that the notion of external quality control, both through peer reviews and government inspections, is positively linked with an improvement of audit quality. At the same time, the analysis indicates that external users do not seem to recognise peer review and PCAOB reports as very useful instruments for decision-making, which is in line with an identified rather skeptical perception of the audit profession on reviews and inspections. Overall, this study reveals that although the academic literature on peer review and PCAOB inspection is extensive it has not produced definitive conclusions concerning various aspects of audit regulation. This paper shows how this blurred picture is due to conflicting research findings, the dominance of the quantitative research paradigm, and unchallenged assumptions within the literature, and concludes by proposing research opportunities for the future.

This paper contends that, contrary to conventional wisdom, it may be rational to manage translation exposure. Accounting procedures for the translation of foreign currency accounts influence the reported income of a multi‐national firm. With non‐zero agency costs, reported income impacts real costs. In such cases, therefore, it may be rational to hedge translation exposure. Empirical evidence of agency costs and the managerial tendency to report higher levels of translated income, based on the early adoption of Financial Accounting Standard No. 52, is presented.

Output per worker varies significantly from one country to another. Why? Our analysis shows that differences in earnings opacity are important sources of this variation. Earnings opacity is a measure that reflects how little information there is in a firm's earnings number about its true, but unobservable, economic performance. According to our results, a high‐productivity country has the accounting quality associated with low earnings opacity. Results further suggest that the quality of accounting in general, and low earnings opacity in particular helps a country by stimulating the accumulation of human and physical capital and by raising its total factor productivity.

The objective of this paper is to investigate how disclosure informativeness of U.S. multinational corporations varies with the informativeness of numbers produced by their financial accounting systems. We predict that firms whose current accounting numbers do not capture well the effects of the firm's current activities and outcomes on shareholder value proxied by earnings timeliness will institute better disclosure systems and improve their disclosure informativeness to compensate for their less informative accounting numbers. Disclosure informativeness is measured by analyst ratings of corporate disclosures provided in the annual volumes of the Report of The Financial Analysts Federation Corporate Information Committee. The informativeness of accounting numbers is proxied by the timeliness of earnings. We investigate whether the analysts' ratings vary with the timeliness of earnings by examining the cross‐sectional relation between properties of earnings timeliness and subsequent analyst ratings of corporate disclosure of 100 firms included in FORBES' survey of the largest U.S. multinationals. The results support a significant negative relation between the timeliness metrics and subsequent values of disclosure informativeness after controlling for other firm characteristics.

As part of an integrative model of leadership, transformational (versus transactional) styles are proposed to be related to subordinates' motivation and commitment to quality, the strength of empowering norms at the subunit level, and organizational productivity. Transformational and transactional styles also are proposed to be related to the self‐image of leaders. Hypotheses are tested in a military setting, the United States Army Recruiting Command, through the use of survey data provided by mid‐level leaders, station commanders, and recruiters. Data are supplemented by direct measures of subunit productivity. Results support some, but not all, of the proposed hypotheses. Implications for research and practice are presented, along with limitations of the research.