143 research outputs found
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Optimal incentive-based compensation contracts for CEOs: The moderating roles of age and tenure
No full textThis study examines the relationship between CEO compensation packages and firm performance. We suggest that CEO age and tenure moderate the relationship between the aforementioned variables. Our results indicate that younger and newly minted CEOs perform better with greater proportions of incentive-based compensation than their older and longer tenured counterparts. These findings suggest CEOs respond differently to different compensation packages. Therefore, firms should evaluate the characteristics of their CEOs prior to designing the compensation package.
Testing the Effect of LMX and HR System Strength on Employee and Work Unit Outcomes
Full text linkA single, large organization with a uniform set of HR practices, was used to test a model predicting that HR system strength (HRSS) and leader-member exchange (LMX) variables will predict employee perceptions of HR practices (HRPs), which in turn predict employee job satisfaction and work unit performance. The study findings suggest that HRSS and LMX are positively related to variance in job satisfaction and work unit performance, and that part of the variance is related to work unit supervisors charged with implementing HR practices. The proposed relationships were analyzed using structural equation modeling
Affect and Choice: A Case for the Affect Heuristic in Image Theory
Full text linkThe decision literature has generally viewed an individual’s choice through the lens of cognitive psychology. This perspective has been a fruitful path in many ways, but not always satisfying in terms of results. Some recent studies in the field of psychology have suggested that there are numerous conditions in which emotions play an important role in decision making. Using image theory as a lens, this paper reviews these findings as they relate to judgment and choice, and discusses some of the theoretical and practical implications of this research on the field
The Consumer Costs and Rewards of Direct Social Interaction with Vendors at Farmers' Markets
Full text linkThe purpose of this research paper was to examine the consumer rewards and costs of having direct interaction with a farmer at a farmers’ market. This analysis sought to deepen our understanding of the interpersonal benefits and costs of this direct exchange. This research uncovered several themes that encapsulate the customer experience regarding direct, face-to-face communication with the farmer. These included the importance of face-to-face communication, friendship, trust, customized service, accountability, and regularity. Negative aspects of direct consumer-farmer interaction included obligation, guilt, and rude farmers.
Which IFRS Should the United States Adopt?
Full text link AbstractAccounting is a byproduct of its environment. It takes information and transmits it for users that are both internal and external to the company. The United States has been working to converge with IFRS since the Norwalk Agreement in 2002. These environmental factors have caused different accounting standards to develop in different countries. The International Financial Reporting Standards (IFRS) were developed to address the differences in accounting standards worldwide. However problems persist with IFRS. Comparability even within countries that use IFRS is not perfect. Many countries use a local variation of IFRS. In addition, the European Union has a formal endorsement process for every IFRS standard published by the IASB to decide if the EU will adopt the standard. In addition to the political pressure this causes, it could cause further problems with comparability in the future if the United States adopt IFRS. The fundamental rules vs. principles debate and the cost of conversion to IFRS for US companies is also a barrier to the convergence project
Evaluating the Role of Income in National Software Piracy
Full text linkOur study investigates the proper role of income in predicting national software piracy rates. We run regressions isolating various measures of income, including GDP per capita and median household income and variations thereof, to predict national software piracy rates. Then we also run multivariate regressions incorporating GDP and other non-income predictors such as corruption in a manner consistent with previous studies. This topic is of importance due to the multi-billion dollar losses incurred globally each year due to pirating. Our results show that a square root version of median household income is the best measure of national income and consistent with what economic theory predicts.
IPO Firms’ Voluntary Compliance with SOX 404 as Evidence on the Value Relevance of Internal Control Quality
Full text linkNewly public firms are not required to comply with SOX 404 for their initial public offerings. This provides a unique setting in which to investigate the benefits of voluntary disclosure with SOX 404 and the value of information revealed as a consequence of compliance. We investigate whether voluntary compliance with SOX 404, either fully or partially, impacts the perceived risk of firms conducting IPOs on the first day of trading (reflected in underpricing) or following the IPO. Our results indicate that neither full compliance with SOX 404 at the time of the IPO, nor a managerial discussion of internal controls prior to the IPO, result in lower underpricing or higher post-IPO performance. This suggests that the costs incurred through the SOX 404 compliance process may be unnecessary. Indirectly, our results provide additional evidence that some of the requirements of SOX extract costs from shareholders without supporting better quality information
Auditor Bargaining Power and Audit Fee Lowballing
Full text linkIncoming auditors usually charge less audit fees to obtain the business (audit fee lowballing). Prior research shows that industry expert auditors have better expertise and resources to perform higher quality audit than the non-expert auditors. Consistent with this literature, we predict and find empirical evidence that the magnitude of lowballing will be significantly smaller for industry expert auditors comparing with non-experts auditors. This result adds new evidence of the impact of auditors’ barging power to the audit fee lowballing literature.
An Examination of Façades of Conformity as a Social Mobility Strategy
Full text linkThis study examines the façade of conformity construct as a social mobility strategy employed by minority employees to enhance their social identity in organizations. Results from a survey of 102 African Americans employed in higher education indicate that demographic dissimilarity moderates the relationships between both perceived value of diversity and ethnic identity and facades of conformity. The creation of facades of conformity is positively related to work stress, and work stress is negatively related to job satisfaction