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Book part
Publication date: 23 November 2016

Hank C. Alewine and Timothy C. Miller

This study explores how balanced scorecard format and reputation from environmental performances interact to influence performance evaluations.

Abstract

Purpose

This study explores how balanced scorecard format and reputation from environmental performances interact to influence performance evaluations.

Methodology/approach

Two general options exist for inserting environmental measures into a scorecard: embedded among the four traditional perspectives or grouped in a fifth perspective. Prior balanced scorecard research also assumes negative past environmental performances. In such settings, and when low management communication levels exist on the importance of environmental strategic objectives (a common practitioner scenario), environmental measures receive less decision weight when they are grouped in a fifth scorecard perspective. However, a positive environmental reputation would generate loss aversion concerns with reputation, leading to more decision weight given to environmental measures. Participants (N=138) evaluated performances with scorecards in an experimental design that manipulates scorecard format (four, five-perspectives) and past environmental performance operationalizing reputation (positive, negative).

Findings

The environmental reputation valence’s impact is more (less) pronounced when environmental measures are grouped (embedded) in a fifth perspective (among the four traditional perspectives), when the environmental feature of the measures is more (less) salient.

Research limitations/implications

Findings provide the literature with original empirical results that support the popular, but often anecdotal, position of advocating a fifth perspective for environmental measures to help emphasize and promote environmental stewardship within an entity when common low management communication levels exist. Specifically, when positive past environmental performances exist, entities may choose to group environmental performance measures together in a fifth scorecard perspective without risking those measures receiving the discounted decision weight indicated in prior studies.

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Article
Publication date: 18 May 2012

Timothy C. Miller, Michael Cipriano and Robert J. Ramsay

The purpose of this paper is to examine whether auditors interpret the risk of material misstatement (RMM) in accordance with current standards' definition of inherent…

Abstract

Purpose

The purpose of this paper is to examine whether auditors interpret the risk of material misstatement (RMM) in accordance with current standards' definition of inherent risk (IR). It is argued that controls should not be presumed when assessing inherent risk and that inherent risk should be considered separate from and prior to control risk when it is practical to do so. Because auditing standards explicitly require auditors to assess IR without consideration of internal controls (i.e. control risk (CR)), RMM should not be adjusted upward for control deficiencies.

Design/methodology/approach

The authors survey and interview practicing auditors to gain an understanding of current risk assessment practice. They then evaluate whether their understanding of risk assessment is in line with current standards.

Findings

Contrary to auditing standards' definition of inherent risk, it appears that auditors presume some level of expected control effectiveness when assessing IR and they may increase RMM in response to internal control deficiencies. Such a presumption is inconsistent with the definition of inherent risk from the Auditing Standards Board (SAS No. 107), Public Company Accounting Oversight Board (AS 8), and International Auditing and Assurance Standards Board (ISA 200). Such misinterpretation may be an inadvertent result of guidance provided by standard setters in the form of SAS No. 109 from the ASB, AS 12 from the PCAOB and ISA 315 from the IAASB, which suggest combining IR and CR into RMM.

Research limitations/implications

The research is limited both by the small sample size and the small number of risk factors investigated.

Practical implications

If auditors presume a level of controls in assessing inherent risk, they may reduce audit effectiveness by estimating a lower RMM than is appropriate.

Originality/value

This study presents insights on the interpretation and assessment of audit risk in audit environments where inherent risk is no longer automatically set to be at the maximum. Namely that due to the definition of inherent risk, control information should have a unidirectional downward effect on the risk of material misstatement.

Details

Managerial Auditing Journal, vol. 27 no. 5
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 11 November 2014

Dan N. Stone, Alexei N. Nikitkov and Timothy C. Miller

This paper aims to adapt Simons’ (1995b) theory of the role of information technology (IT) in shaping and facilitating the levers of control (i.e. the Levers of Control…

Abstract

Purpose

This paper aims to adapt Simons’ (1995b) theory of the role of information technology (IT) in shaping and facilitating the levers of control (i.e. the Levers of Control Applied to Information Technology – LOCaIT) as a framework for investigating how eBay’s business strategy was realized through its management control system (MCS) in the first 10 years of the online auction market.

Design and method

The qualitative method uses data from public record interviews, teaching cases, books, Securities and Exchange Commission filings and other archival sources to longitudinally trace the realization of eBay’s strategy through its MCS and IT.

Findings

Realizing its strategy through the eBay MCS necessitated a diagnostic control system unlike any previously seen. This system created a close-knit online community and enabled buyers and sellers to monitor one another’s performance and trustworthiness.

Research limitations and implications

The LOCaIT theory facilitated understanding the core aspects of the realization of eBay’s strategy through its MCS and IT. However, LOCaIT largely omits the strong linkages evident among elements of the MCS, the importance and necessity of building a core IT infrastructure to support eBay’s strategy and the central role of building consumer trust in the realization of this strategy.

Practical and social implications

eBay’s MCS is now, perhaps, the world’s most widely imitated model for creating online trust and user interactions (e.g. Yelp, TripAdvisor, Amazon). In addition, eBay’s MCS was “sold” as a consumer product that was instrumental in facilitating consumer trust in the online auction market.

Originality/value

Contributions include: tracing the creation, growth and evolution of, perhaps, the world’s largest and most widely imitated MCS, which redefined the boundaries of accounting systems monitoring; and testing the range, usefulness and limitations of Simons’ LOCaIT theory as a lens for understanding eBay’s use of IT in their MCS.

Details

Qualitative Research in Accounting & Management, vol. 11 no. 4
Type: Research Article
ISSN: 1176-6093

Keywords

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Book part
Publication date: 23 November 2016

Abstract

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78560-972-5

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Book part
Publication date: 29 August 2018

Paul A. Pautler

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the…

Abstract

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.

Details

Healthcare Antitrust, Settlements, and the Federal Trade Commission
Type: Book
ISBN: 978-1-78756-599-9

Keywords

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Book part
Publication date: 23 July 2015

Abstract

Details

Tourism Research Frontiers: Beyond the Boundaries of Knowledge
Type: Book
ISBN: 978-1-78350-993-5

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Book part
Publication date: 27 October 2016

Alexandra L. Ferrentino, Meghan L. Maliga, Richard A. Bernardi and Susan M. Bosco

This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications…

Abstract

This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications in business-ethics and accounting’s top-40 journals this study considers research in eight accounting-ethics and public-interest journals, as well as, 34 business-ethics journals. We analyzed the contents of our 42 journals for the 25-year period between 1991 through 2015. This research documents the continued growth (Bernardi & Bean, 2007) of accounting-ethics research in both accounting-ethics and business-ethics journals. We provide data on the top-10 ethics authors in each doctoral year group, the top-50 ethics authors over the most recent 10, 20, and 25 years, and a distribution among ethics scholars for these periods. For the 25-year timeframe, our data indicate that only 665 (274) of the 5,125 accounting PhDs/DBAs (13.0% and 5.4% respectively) in Canada and the United States had authored or co-authored one (more than one) ethics article.

Details

Research on Professional Responsibility and Ethics in Accounting
Type: Book
ISBN: 978-1-78560-973-2

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Book part
Publication date: 26 October 2020

Gregg M. Gascon and Gregory I. Sawchyn

Bundled payments for care are an efficient mechanism to align payer, provider, and patient incentives in the provision of health care services for an episode of care. In…

Abstract

Bundled payments for care are an efficient mechanism to align payer, provider, and patient incentives in the provision of health care services for an episode of care. In this chapter, we use agency theory to examine the evolution of bundled payment programs in private and public payer arrangements, and postulate future directions for bundled payment development as a key component in the provision and payment of health care services.

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Book part
Publication date: 1 July 2014

Timothy P. Munyon, James K. Summers, Robyn L. Brouer and Darren C. Treadway

Coalitions are informal and interdependent groups of actors operating within organizations, yet their effects in organizations are not widely understood. In this paper, we…

Abstract

Coalitions are informal and interdependent groups of actors operating within organizations, yet their effects in organizations are not widely understood. In this paper, we develop a model of coalition formation and functioning inside organizations. By extrapolating the behavioral intentions (i.e., altruistic or antagonistic) and compositional differences (i.e., supplementary or complementary) among these informal group structures, we classify coalitions into four forms (i.e., lobby, cartel, circle, and alliance), theorizing how each coalition form affects work role innovation, resource allocations, and work performance. Our conceptualization helps clarify previous theoretical inconsistencies and establish an agenda for the study of coalitions at work. Furthermore, this paper provides insights into the ways that coalitions support or impede the organization’s objectives.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78350-824-2

Keywords

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Book part
Publication date: 29 August 2018

Abstract

Details

Healthcare Antitrust, Settlements, and the Federal Trade Commission
Type: Book
ISBN: 978-1-78756-599-9

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