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1 – 10 of over 69000Graeme Newell, Nelson Chan and Evan Goodridge
This paper aims to assess all compulsory land acquisition court decisions in Australia over 1985‐2009 to provide a risk assessment and compensation analysis involved in proceeding…
Abstract
Purpose
This paper aims to assess all compulsory land acquisition court decisions in Australia over 1985‐2009 to provide a risk assessment and compensation analysis involved in proceeding to court for compulsory land acquisition cases.
Design/methodology/approach
Using the AustLII legal database, every publicly available compulsory land acquisition court case decision in Australia over 1985‐2009 is assessed. These 58 court cases are assessed for claim, offer and judgment value.
Findings
A total of 91.4 percent of compulsory land acquisition court cases over 1985‐2009 were found to be successful in achieving a judgment value of at least that of the offer. The median judgment value for successful cases was 60 percent higher than the offer value, while for unsuccessful cases it was 68 percent lower than the offer value. Successful smaller judgments (<$2 million) generated more upside compensation (median of 66 percent) than larger judgments (>$2 million) (median 41 percent upside compensation). Appealed cases were found to be only 28.6 percent successful, with only a maximum of 5.6 percent additional compensation achieved.
Practical implications
This paper provides a rigorous empirical risk assessment and compensation analysis for compulsory land acquisition court cases in Australia over the last 25 years. This provides an effective tool for dispossessed property owners, statutory acquirers and their professional legal and valuation advisors for more informed compulsory land acquisition court case decision making.
Originality/value
Using all compulsory land acquisition court decisions in Australia over the last 25 years, this paper is the first attempt internationally to rigorously and empirically conduct a risk assessment and compensation analysis involved with proceeding to court for compulsory land acquisition cases. Given the significance of the compulsory land acquisition process, this empirically validated research enables a more informed and critical understanding of the risk factors and compensation outcomes attached to the compulsory land acquisition court case judgment process.
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This paper aims to determine the adaptability of China’s legal system in recognizing and enforcing foreign judgements in China.
Abstract
Purpose
This paper aims to determine the adaptability of China’s legal system in recognizing and enforcing foreign judgements in China.
Design/methodology/approach
Academic articles, case law and books are examined as are relevant reports by various regulatory authorities and organizations.
Findings
Historically, Chinese courts have strictly adhered to “de facto reciprocity”, which made it difficult for foreign judgements to be recognized and enforced in China. Fortunately, Chinese courts have since abandoned their rigid adherence to de facto reciprocity, and have instead, used flexible tests of reciprocity such as de jure reciprocity, reciprocal commitment and reciprocal understand/consensus. Accordingly, this would facilitate the recovery of stolen assets, as there is a lower threshold for the recognition and enforcement of a foreign judgement.
Research limitations/implications
There are limited data available in relation to the recognition and enforcement of foreign judgements pertaining to the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs within the Belt and Road Initiative.
Practical implications
Those who are interested in examining the viability in recognizing and enforcing foreign judgements relating to stolen assets will have an interest in this topic.
Originality/value
The value of the paper is to demonstrate the difficulties in recognizing and enforcing foreign judgements in China in relation to stolen assets.
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Ruwan Adikaram and Julia Higgs
This study aims to demonstrate how pressures (incentives) in the audit environment can lower audit quality because of a breakdown between professionally skeptical (PS) judgment…
Abstract
Purpose
This study aims to demonstrate how pressures (incentives) in the audit environment can lower audit quality because of a breakdown between professionally skeptical (PS) judgment (risk assessment) and PS action (testing).
Design/methodology/approach
The authors used a Qualtrics-based experiment with attitude change as a proxy measure of cognitive dissonance (CD). The authors analyze the results using a one-way independent between-group ANOVA with post hoc tests and t-tests.
Findings
The authors find that auditors experience CD when they fail to take appropriate high PS action (audit tests) that are in line with high PS judgment (risk assessments). The motivational force to reduce CD drives auditors to revise their assessments upward (rank higher), lower diagnostic audit tests (PS actions) and lower risk assessments (PS judgments). This leads to lower overall professional skepticism, and hence lower audit quality.
Originality/value
This investigation provides an empirical investigation of Nelson’s (2009) model of professional skepticism and demonstrates a specific mechanism for how incentives in the audit environment lower audit quality. Based on the findings, treatments to enhance audit quality can benefit by strengthening the critical link between PS judgments (risk assessments) and PS actions (audit tests).
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Russell Cropanzano, Marion Fortin and Jessica F. Kirk
Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom…
Abstract
Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom been the subject of analysis in their own right. To address this limitation, we first consider three meta-theoretical dualities that are highlighted by justice rules – the distinction between justice versus fairness, indirect versus direct measurement, and normative versus descriptive paradigms. Second, we review existing justice rules and organize them into four types of justice: distributive (e.g., equity, equality), procedural (e.g., voice, consistent treatment), interpersonal (e.g., politeness, respectfulness), and informational (e.g., candor, timeliness). We also emphasize emergent rules that have not received sufficient research attention. Third, we consider various computation models purporting to explain how justice rules are assessed and aggregated to form fairness judgments. Fourth and last, we conclude by reviewing research that enriches our understanding of justice rules by showing how they are cognitively processed. We observe that there are a number of influences on fairness judgments, and situations exist in which individuals do not systematically consider justice rules.
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The underdetermination argument establishes that scientists may use political values to guide inquiry, without providing criteria for distinguishing legitimate from illegitimate…
Abstract
The underdetermination argument establishes that scientists may use political values to guide inquiry, without providing criteria for distinguishing legitimate from illegitimate guidance. This chapter supplies such criteria. Analysis of the confused arguments against value-laden science reveals the fundamental criterion of illegitimate guidance: when value judgments operate to drive inquiry to a predetermined conclusion. A case study of feminist research on divorce reveals numerous legitimate ways that values can guide science without violating this standard.
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Brad A. Schafer and Jennifer K. Schafer
This chapter examines whether professional auditors’ affect toward client management influences fraud likelihood judgments and whether accountability and experience with fraud…
Abstract
This chapter examines whether professional auditors’ affect toward client management influences fraud likelihood judgments and whether accountability and experience with fraud risk judgments moderate this effect. This research also explores the process by which affect influences fraud judgments by examining affect’s influence on the evaluation of fraud evidence cues. Results indicate that more positive affect toward the client results in lower fraud likelihood judgments. Accountability is found to moderate this effect, but only for experienced auditors. These findings have implications for fraud brainstorming sessions where all staff levels provide input into fraud risk assessments and because client characteristics are especially salient during these assessments. Importantly, results also support the proposition that affect impacts inexperienced auditors’ fraud assessments through errant attribution of client likability to evidence cues that refer to management, rather than biasing all client-related evaluations. Together, these findings suggest that education and training can be improved to better differentiate relevant and irrelevant cues in fraud judgment.
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Steven L. Blader, Batia M. Wiesenfeld, Naomi B. Rothman and Sara L. Wheeler-Smith
Purpose – This chapter presents a social emotions-based analysis of justice dynamics, emphasizing the important influence of social emotions (e.g., envy, empathy, schadenfreude…
Abstract
Purpose – This chapter presents a social emotions-based analysis of justice dynamics, emphasizing the important influence of social emotions (e.g., envy, empathy, schadenfreude, and vicarious joy) on justice judgments and reactions. The chapter also identifies a dimension for organizing social emotions, based on the degree of congruence they reflect between self and other. Congruent social emotions align the individual experiencing the emotion with the individual who is the target of their emotion, thus leading individuals to reason about and perceive justice in ways that are aligned with the target. Conversely, incongruent social emotions create misalignment and lead to justice perceptions that are misaligned and oppositional with regard to the target.
Methodology/approach – The chapter is informed by research suggesting that justice judgments are subjective. We consider the perspective of each of the key parties to justice (i.e., decision makers, justice recipients, and third parties) to evaluate the effect of (in)congruent social emotions on justice.
Findings – The core argument advanced in the chapter is that the (in)congruence of parties’ social emotions shape whether people evaluate the outcomes, procedures, and treatment encountered by a target as being fair. Fairness judgments, in turn, shape parties’ actions and reactions.
Originality/value – The chapter is the first to offer a framework integrating research on organizational justice with research on social emotions, arguing that social emotions strike at the very foundation of justice dynamics in groups and teams. In addition, the congruence dimension described in the chapter offers a novel and potentially important way of thinking about social emotions.
Prior research suggests that decision-makers can be biased by anecdotal data, even in the presence of more informative statistical data. A bias for anecdotal data can have…
Abstract
Prior research suggests that decision-makers can be biased by anecdotal data, even in the presence of more informative statistical data. A bias for anecdotal data can have significant implications for managers since judgments are often made when both statistical and anecdotal data are present. However, since much of the prior research has been conducted primarily on non-professionals engaged in unfamiliar tasks, it is unclear whether anecdotal biases will occur in managerial decision-making, where training and professional duties may reduce the effects of such a bias. Smith and Kida (1991) note, for example, that judgment biases are often mitigated or modified when trained professionals perform job-related tasks. In this study, managers and others with significant business experience were asked to make a capital budgeting decision in the presence of both statistical and anecdotal data. The results indicate that decision-makers ignored, or underweighted, statistical data in favor of anecdotal data, leading to suboptimal decisions. However, a scientific judgment orientation decision-aid did help to mitigate the effects of that bias. The implications of these results for decision-making in managerial accounting are discussed.
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Gary M. Fleischman, Sean Valentine and Don W. Finn
Ethical issues and moral reasoning are important in the tax policy context because shared moral values create good societies (Paul et al., 2006). This study of the equitable…
Abstract
Ethical issues and moral reasoning are important in the tax policy context because shared moral values create good societies (Paul et al., 2006). This study of the equitable relief subset of the innocent spouse rules is a good example of Congressional and IRS policy that has been substantially reformed twice (and continues to be reassessed) to create tax law that effectively treats innocent spouses equitably (Fleischman & Shen, 1999). The purpose of this study was to evaluate the degree to which subjects' moral reasoning, using the first two steps of Rest's (1986) ethical reasoning model, is related to perceived moral intensity (Jones, 1991) in several tax-based equitable relief situations. Integrative social contracts theory provides the study's theoretical lens.
Subjects evaluated a mailed-questionnaire containing two separate equitable relief scenarios about a spouse who was unaware of her husband's tax evasion – one scenario included verbal abuse and the other scenario contained no such abuse. The survey also contained a variety of ethics and attitudinal measures used to measure the study's focal variables. The results support the a priori hypotheses that moral intensity is positively related to recognition of an ethical issue, judgment that the ethical scenario is unethical, and judgment to grant equitable relief. In addition, the scenario containing emotional abuse was associated with increased levels of moral intensity as compared to the scenario that did not contain abuse. The paper concludes with a discussion of both professional and public policy implications.
Martin Kelly and Patricia Larres
Following recent high-profile audit failures, concern has been expressed that auditors are not demonstrating sufficient skepticism when exercising professional judgment. In…
Abstract
Purpose
Following recent high-profile audit failures, concern has been expressed that auditors are not demonstrating sufficient skepticism when exercising professional judgment. In particular, client assumptions and estimations relating to hypothetical valuations in financial reporting are not being challenged. This paper seeks to address the issue by advancing a decision-making framework aimed at guiding auditors beyond regulatory reductionist thinking towards an enhanced understanding of the cognitive processes which shape professional judgment in forming a reliable audit opinion.
Design/methodology/approach
Drawing on the normative philosophical and theological teachings of Bernard Lonergan, the authors' decision-making framework embodies reflective thinking and the data of consciousness to highlight the central role played by enquiry in the dynamics of understanding, judgment and decision-making. Such enquiry elicits challenge of the management bias inherent in hypothetical valuations.
Findings
Auditing through a Lonerganian lens allows auditors to reflect on their approach to objective decision-making by offering a set of cognitive tools to enhance the enquiry essential for nurturing professional skepticism.
Originality/value
This paper contributes to the literature by developing the somewhat neglected discourse on the cognitive processes essential for professional skepticism and audit judgment. The authors demonstrate how Lonerganian self-appropriation intensifies an awareness of the recursive cognitive activities pertinent to objective judgment and decision-making. This awakened consciousness has the potential not only to change how auditors question evidence to make informed judgments and decisions, but also to normalize the practice of challenge.
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