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Book part
Publication date: 24 June 2017

Lukman Raimi

The chapter discusses Corporate Social Responsibility (CSR) with appropriate theoretical framings with the intent of creating a deeper understanding and application of CSR…

Abstract

The chapter discusses Corporate Social Responsibility (CSR) with appropriate theoretical framings with the intent of creating a deeper understanding and application of CSR theories in Ibero-America’s hospitality industry. The research method is a qualitative research approach relying on critical review of scholarly articles on CSR theories. The sourced articles were critically discussed and analysed to fit the needs of the hospitality industry in Ibero-America. The shareholder/agency, stakeholder, legitimacy, instrumental, social contract, conflict, green and communication theories were identified as the eight dominant theories of CSR with diverse applications in the hospitality industry. The CSR theories discussed are not exhaustive, as there are emerging theories that explicate CSR in different contexts. The implication is that better understanding and application of CSR theories would strengthen conceptual, theoretical and empirical research in Ibero-America. The CSR theories are useful sources of information for practitioners for designing corporate CSR policies as well as providing scholars with sound theoretical framework for academic research. The chapter is a novel attempt at bridging theory and practice in the field of CSR, as well enriching the understanding of this concept among both practitioners and scholars in Ibero-America.

Details

Corporate Social Responsibility and Corporate Governance
Type: Book
ISBN: 978-1-78714-411-8

Keywords

Book part
Publication date: 3 July 2017

Alan Reinstein, Mohamed E. Bayou, Paul F. Williams and Michael M. Grayson

Compare and contrast how the accounting, organizational behavior and other literatures analyze sunk costs. Sunk costs form a key part of the decision-making component of the…

Abstract

Purpose

Compare and contrast how the accounting, organizational behavior and other literatures analyze sunk costs. Sunk costs form a key part of the decision-making component of the management accounting literature, which generally include previously incurred and unrecoverable costs. Management accountants believe, since current or future actions cannot change sunk costs, decision makers should ignore them. Thus, ongoing fixed costs or previously incurred sunk costs, while relevant for matters of accountability such as costing, income determination, and performance evaluation are irrelevant for most short- and long-term decisions. However, the organizational behavior literature indicates that sunk costs affect decision makers’ actions – especially their emotional attachments to the related project and the asymmetry of attitudes regarding the recognizing of losses and gains. Called the “sunk cost effect” or “sunk cost fallacy,” this conflict in sunk costs’ underlying nature reflects one element of incoherence in contemporary accounting discourse. We discuss this sunk cost conflict from an accounting and a philosophical perspective to denote some ambiguities that decision usefulness and accountability introduces into accounting discourse.

Methodology/approach

Review, summarize and analyze the above literatures

Findings

Managerial accountants can apply many lessons from the various literature sources.

Originality/value

We also show how differing opinions on how to treat sunk costs impact a firm’s decision-making process both economically and socially.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78714-530-6

Keywords

Book part
Publication date: 1 January 2014

Florian Kellner, Andreas Otto and Bernhard Lienland

Tooling is a common component of an industrial product’s manufacture. Specific tooling is devised to serve the fabrication of a particular product, while generic tooling can be…

Abstract

Purpose

Tooling is a common component of an industrial product’s manufacture. Specific tooling is devised to serve the fabrication of a particular product, while generic tooling can be used in the manufacture of multiple products. In the latter case, companies are confronted with the problem of fairly allocating the indirect costs of the tooling. This article studies how to allocate costs of generic tooling to single production orders.

Methodology

Ten allocation methods (AMs) are described that are in principle suited to the distribution of generic tooling costs to production orders. Since the presented methods have for the most part been discussed in differing contexts, we apply them to a specified generic tooling problem for comparison. Evaluation of the various methods is based on 16 criteria. Reasoning is supported by a computational Monte Carlo simulation. Furthermore, we suggest using the Analytical Hierarchy Process (AHP) to elaborate one final proposition concerning the most preferable allocation scheme.

Findings

The article reports the single allocation rules’ performances for different allocation scenarios. The described characteristics refer to fairness, efficiency, and simplicity as well as to empty-core performance. Using AHP analysis allows for the aggregation of the rules’ criteria ratings. Thus, especially suitable allocation schemes for the problem at hand are identified.

Practical implications

An allocation is required for budgeting reasons and also for the definition of projects’ bottom-up sales prices. Selecting the “right” AM is important, as a suboptimal AM can result in unfair allocation vectors, which will act as incentives to stop using the common resource, potentially leading to higher total costs.

Originality/value of the article

Research on the comparison of AMs is typically performed for certain purposes, such as enterprise networks, horizontal cooperative purchasing scenarios, or municipal service units. This article will augment the research evaluating AMs by introducing a novel set of evaluation criteria and by providing an in-depth comparison of AMs suited for the allocation of generic tooling costs.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78350-632-3

Keywords

Abstract

Details

Employee Inter- and Intra-Firm Mobility
Type: Book
ISBN: 978-1-78973-550-5

Book part
Publication date: 1 October 2015

Dobrina Georgieva

Internal capital markets of diversified firms have been associated with inefficient allocation of investment funds across divisions, leading to value losses. Utilizing a sample of…

Abstract

Internal capital markets of diversified firms have been associated with inefficient allocation of investment funds across divisions, leading to value losses. Utilizing a sample of diversified firms that adopted or eliminated Residual Income (RI) plans between 1990 and 2009, we show that adoptions of these plans mitigate investment distortions and lead to value gains. Following the adoption of RI plans, diversified firms start allocating investment funds based on growth opportunities of their divisions. RI plan adopters lower their divisional investment levels, especially in segments with below-average growth opportunities. The overall investment allocation efficiency improves, and the diversification discount diminishes after the adoption of RI plans. However, RI plans appear to be used only as temporary tools for assessing corporate performance. The plans are adopted primarily by firms expected to immediately generate plan bonuses for management, and they are frequently eliminated by firms with bad accounting performance and low managerial bonuses. The study contributes to the literature on organizational efficiency, internal capital markets, and on the importance of measures based on economic profits or RI.

Details

International Corporate Governance
Type: Book
ISBN: 978-1-78560-355-6

Keywords

Book part
Publication date: 23 September 2014

Donald K. Clancy and Denton Collins

The purpose of this study is to review the capital budgeting literature over the past decade.

Abstract

Purpose

The purpose of this study is to review the capital budgeting literature over the past decade.

Design/methodology

Specifically, over the years 2004–2013, we review works appearing in the major academic journals in accounting, finance, and management. Further, we review the specialized academic journals in management accounting. We examine the frequency of articles by journal and year published, the type of research method applied, and the topic area studied. We then review the research findings by topic area.

Findings

We find 110 articles appearing in the selected journals. While the articles increase in frequency, the research methods applied are predominantly analytical and archival in nature with relatively few experiments, case studies, or surveys. Some progress is observed for capital budgeting techniques and new methods for structuring uncertainty. The studies find that the size of capital budgets is about right for companies with high financial reporting quality, for liquid companies, during periods of normal cash flow, when the budget is financed by equity, for companies when they first go public or first go private. Tax rates and financial reporting methods for depreciation and tax expenses distort capital budgets. Organization structure and performance measurement can distort capital budgeting. Individual differences, especially optimism and honesty, can influence capital budgeting decisions.

Limitations and Implications

This review is limited to the major journals in accounting, finance, and management; and the specialized journals in management accounting. There is much research to be done on capital budgeting, especially case studies of actual practice and experiments related to individual and group decision processes.

Book part
Publication date: 15 November 2018

Savannah (Yuanyuan) Guo, Sabrina Chi and Kirsten A. Cook

This study examines short selling as one external determinant of corporate tax avoidance. Prior research suggests that short sellers have information advantages over retail…

Abstract

This study examines short selling as one external determinant of corporate tax avoidance. Prior research suggests that short sellers have information advantages over retail investors, and high short-interest levels are a bearish signal of targeted stock prices. As a result, when short-interest levels are high, managers have been shown to take actions to minimize the negative effect of high short interest on firms’ stock prices. Tax-avoidance activities may convey a signal of bad news (i.e., high stock price crash risk). We predict that, when short-interest levels are high, managers possess incentives to reduce firm tax avoidance in order to reduce the associated stock price crash risk. Consistent with this prediction, we find that short interest is negatively associated with subsequent tax-avoidance levels. This effect is incremental to other factors identified by prior research. We conclude that short selling significantly constrains corporate tax avoidance.

Book part
Publication date: 18 January 2022

Brian McBreen, John Silson and Denise Bedford

This chapter introduces the concept of an intelligent organization in the context of the twenty-first-century knowledge economy. An intelligent organization is one in which…

Abstract

Chapter Summary

This chapter introduces the concept of an intelligent organization in the context of the twenty-first-century knowledge economy. An intelligent organization is one in which individuals behave intelligently, work is grounded in intelligent methods and choices, and rich stocks of intelligence in the form of knowledge capital to support intelligence work and choices. Intelligence is defined as both a thing and attribute and behavior and way of working. The chapter also highlights examples of intelligent behaviors and or organizational pathologies. The chapter also highlights the importance of becoming aware of intelligent and unintelligent choices.

Details

Organizational Intelligence and Knowledge Analytics
Type: Book
ISBN: 978-1-80262-177-8

Book part
Publication date: 30 March 2023

Jap Efendi, Li-Chin Jennifer Ho, L. Murphy Smith and Yu Zhang

A long-time ethical issue in financial accounting is earnings management. Two popular ways that earnings are managed include use of accruals (Kothari et al., 2016) and real

Abstract

A long-time ethical issue in financial accounting is earnings management. Two popular ways that earnings are managed include use of accruals (Kothari et al., 2016) and real activities management (RM). This study examines the association between RM and short selling and an association between short sellers and RM behavior related to earnings management. Instead of using accruals, RM is accomplished by timing investment or financing decisions and thereby alter reported earnings. Our results show that short sellers avoid targeting firms with a high level of RM, but this only holds for those firms that just meet analysts’ forecasts. This result suggests that short sellers interpret RM as a signal used by companies to convey their “good news” and confidence in their future performance. On the other hand, the authors document that heavily shorted firms engage in a lower amount of RM, which is consistent with the notion that short selling plays an external disciplinary role in constraining firms’ RM behavior for earnings management. This chapter would be of interest to anyone concerned with earnings management, such as financial market analysts, investors, academic researchers, and, in particular, regulators, who are involved in setting rules on short selling.

Details

Research on Professional Responsibility and Ethics in Accounting
Type: Book
ISBN: 978-1-80455-792-1

Keywords

Abstract

Details

Politics and the Life Sciences: The State of the Discipline
Type: Book
ISBN: 978-1-78441-108-4

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