Forensic Accounting and Fraud： Capability and Competence Requirements in Malaysia

The 2011 Global Economic Crime Survey instituted by PricewaterhouseCoopers （PwC） confirms the economic crime in Malaysia to be on the increase and, therefore, requires immediate attention to stem the tides. In anticipation of the challenges occasioned due to a shift from the modified cash basis to the accrual basis of accounting, the Malaysian State＇s determination to move from a developing nation to a developed nation, and to be ranked among the first 10 in 2020, this paper presents the need for forensic accountant and auditor capability （i.e., mindset and skills） on forensic accountant and auditor competence （i.e., task performance fraud risk assessment （TPFRA）） in the Malaysian public sector. It also draws the attention of the users of public sector accountants and auditors to the understanding of fraud mechanisms and how to deal with fraudsters. The population of this study comprised the accountants and auditors in the office of the Accountant General and Auditor General of Malaysia. The objective of this paper is to investigate the competence requirements of accountants and auditors in the effective and efficient utilization of capability requirements, which have the potentials to usher in the best global practices in fighting fraud in the Malaysian public sector.     

HRM and IR in multinational corporations in Denmark: uneasy bedfellows?

As multinational corporations operate in multiple countries, headquarters must take into account differences in local settings when seeking the means to coordinate and control subsidiaries. The local system of industrial relations sets the framework for what kind of human resource management a multinational corporation can implement. Yet another question is whether the still stronger multinationals can change the existing systems of industrial relations, directly or indirectly.

The paper analyzes four Danish enterprises over a 10-year period. This longitudinal study shows that none of the multinationals directly try to interfere in local industrial relations. However, by exercising their management prerogative in a way that differs from the Northern European tradition of industrial relations, they do influence the cooperation between employers and employees. In particular, the results show, that a shift from a stakeholder to a shareholder management style and an increased degree of HQ control have an effect on the whole cooperative atmosphere in each of the companies. In the long run, they may affect the collective bargaining system as such.     

Small,Local and Cheap? Walkable and Car-oriented Retail in Competition

Abstract

I develop a model of competition between walkable shops, and other shops whose customers drive (car-oriented shops). Walkable shops operate in monopolistic competition within a local area, or neighbourhood. A small cost advantage for car-oriented shops can turn into a larger price advantage. High prices in walkable shops effect a regressive transfer from poorer to richer consumers, since the poorer are less likely to have cars. Internalizing environmental and social costs of urban automobile use could reduce prices and increase capacity utilization in walkable shops in more densely populated local areas. Many common combinations of planning and pricing tools fail to internalize important costs, and may actually subsidize driving to shop, but a combination of planning and the pricing (through taxation) of retail parking could effectively internalize the relevant costs.     

Loan managers’ decisions and trust in entrepreneurs in different institutional contexts

Loan managers’ trust in entrepreneurs can be a useful tool for overcoming entrepreneurial firms’ opaqueness. Nevertheless, the possibility for loan managers to leverage trust can be affected by differences in the regulative institutions within the banks (type of bank) and by place-bound normative institutions (social context). By relying on semi-structured interviews and a survey of 450 bank-entrepreneur relationships, this study finds that a positive impact of trust in lending relationships is sensitive to different place-bound normative institutions and to the regulative institutions within the banks. The results are robust with respect to potential endogeneity issues.     

What's in it for me? Creating and appropriating value in innovation-related coopetition

There has been a substantial increase in collaboration with external stakeholders in R&D and innovation activities in modern economies. In particular, collaborating with competitors (coopetition) has been found to be an effective way of creating both incremental and radical innovations, especially in high-tech industries. However, coopetition also includes some major risks and disadvantages, which makes it undesirable in certain cases. The focus in this study is on the factors that distinguish coopetition from collaboration. We propose that the ability of a firm to reap benefits in innovation-related coopetition is contingent on factors that enable collective value creation, and on those that facilitate the individual isolation of the innovations and any subsequent profits. Further, we suggest that the effectiveness of these factors depends on the novelty of the innovation with respect to current markets and technology. In explicitly analyzing such issues we aim to expand current understanding of how firms can create and appropriate value in collaborative R&D and innovation with competitors as specific partners.     

Narrating strategy in the flow of events – Illusion and disillusion in strategy-making

Narrative strategy-making is useful in the mobilization of strategies because narratives impart coherence and linearity to our understanding of organizational events. Our paper examines the relation between narrative strategy-making and the flow of events. We present a longitudinal, participatory study of a software company seeking global growth. Specifically, we followed events preceding and succeeding construction of the strategic ‘success stories’ used by the software company’s managers in investor negotiations. We conceptualize the point of illusion and disillusion underlying the temporal construction and use of strategy narratives and show how the former enables strategy-making, while the latter constrains it. We add to narrative strategy research by elaborating the relation between the construction of strategy narratives and the flow of organizational events.     

Formal control and social control in domestic and international buyer–supplier relationships

Focusing on long-term buyer–supplier relationships, this article addresses two questions: (1) What are the antecedents that lead to the adoption of formal control, social control, or both? (2) What is the nature of the relationship between formal control and social control - are they substitutes or complements? We develop a model to investigate the impact of the length of cooperation and institutionalization on the use of control mechanisms. Further, we argue that in China, formal control and social control may be substitutes in domestic buyer–supplier relationships, but they may be complements in international relationships. Survey data collected nationwide with executives in 380 domestic and 200 international buyer–supplier relationships in China are used to test our hypotheses.     

The importance of ‘fitting in’: collaboration and social value creation in response to community norms and expectations

Abstract

This article explores the effects of embeddedness in communities upon entrepreneurial practices. Based on the lived experiences of 10 craft entrepreneurs, this study reveals that within certain contexts, such as craft communities, entrepreneurs are expected to exhibit high levels of camaraderie and generosity, which leads them to create social value by supporting their peers and freely sharing their resources. Entrepreneurs achieve ‘fitting in’ not only by learning accepted norms, but also by performing strategic actions which allow them to temporarily adapt their conduct to meet the expectations of community members. Thus, this study exposes a largely concealed element of social entrepreneurial practice. This article also reveals that embeddedness in communities can lead entrepreneurs to collaborate with potential competitors. Craft entrepreneurs share their economic, cultural, social and symbolic capital in order to support and help revitalise their communities, to perpetuate their respective industries and to sustain a genuine interest in hand-crafted products. They consider such supportive behaviour a social responsibility that is shared among community members and a task that is passed from one generation to the next. Thus, this article reveals that collaboration and social value creation can be embraced in response to community norms and expectations.     

Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales

High rates of self-employment among ethnic minorities in England and Wales are investigated using a framework in which the self-employment decision is influenced by ethnic-specific attributes as well as sectoral earnings differentials. As expected, differences in an individual's predicted earnings in paid and self-employment are strongly correlated with self-employment decisions. Individuals with low English fluency, and recent immigrants, are less likely than other members of ethnic minorities to be self-employed. Perhaps surprisingly, this is also true of individuals living in “enclaves” — areas with a high percentage of their own ethnic group. The relatively deprived nature of such areas of England and Wales may explain this.     

Trade friction and price discovery in the USD–CAD spot and forward markets

This paper examines the impact of trade friction on price discovery in the USD–CAD spot and forward markets. Using the recently developed fractionally cointegrated vector autoregressive (FCVAR) model, we investigate how the foreign exchange spot and forward markets respond to trade friction. We consider two major trade friction events: the United States–Mexico–Canada Agreement and the recent trade friction between Canada and China. Both events show that the forward market plays a dominant role in price discovery, and the influence of the forward market increases as trade tension increases. By comparing the fractional and non-fractional models, we find that the fractional model fits the data better and has superior forecasting performance to the cointegrated vector autoregressive (CVAR) model.     

Reforms and agricultural productivity in Central and Eastern Europe and the Former Soviet Republics: 1989–2005

This paper analyses the changes in agricultural performance in Central and Eastern Europe and the Former Soviet republics since the start of the transition process. We provide a conceptual framework for the evolution of productivity and efficiency measures and link this evolution to the issue of factor abundance taking into account specific transition characteristics. We document the changes in agricultural performance using empirical data on the evolution of partial productivity and total factor productivity estimates and we illustrate how productivity varies between countries at various stages of the transition process. Over the past twenty years, virtually all transition countries witnessed an initial decline in productivity, and virtually all countries currently witness an increase in productivity. However, the depth and length of the initial decline differs enormously between countries. Our analysis indicates that the productivity changes were related to the extent of the pre-reform distortions, initial resource endowments and technology use, and the reform implementation in the countries.     

Does Culture Matter in Inter-Firm Cooperation? Research Consortia in Japan and the USA

Collaborative research consortia allow firms to pursue scale and scope economies in research, finance large costly proposals, share risks, avoid unnecessary duplication, internalize the externalities created by research spillovers, and allow the use of firm-specific complementary skills and resources. In this study we examine the evolution of cooperative research organizations in the USA and Japan. We explore the factors which influence the emergence of alternative forms of cooperation. Specifically, we examine the role of culture and the institutional environment in molding the organization of cooperation between firms in R&D and the consequences of such cooperation. © 1997 John Wiley & Sons, Ltd.     

Collective and individual voice: convergence in Europe?

This paper uses longitudinal survey data from Britain, Germany and Sweden to examine whether, as some researchers have suggested, there has been a convergence internationally towards individual forms of employee voice mechanism and, if so, to measure the extent and trajectory of change. The paper begins by examining the importance of the employee voice issue. It then reviews competing accounts of the utility of different forms of employee voice and their manifestations within different varieties of capitalism. It is hypothesized that there has been a general trend away from collective and towards individual voice mechanisms; this reflects the predominant trajectory of managerial practices towards convergence with the liberal market model. This hypothesis is largely rejected. The data showed only very limited evidence of directional convergence towards individual voice models in the three countries. Collective voice remains significant in larger organizations, and although it takes a wide range of forms that include but go beyond unions and works councils, this is a positive finding for proponents of those institutions.     

The Beveridge–Nelson decomposition in retrospect and prospect

Beveridge and Nelson [Beveridge, Stephen, Nelson, Charles R., 1981. A new approach to decomposition of economic time series into permanent and transitory components with particular attention to measurement of the ‘business cycle’. Journal of Monetary Economics 7, 151–174] proposed that the long-run forecast is a measure of trend for time series such as GDP that do not follow a deterministic path in the long run. They showed that if the series is stationary in first differences, then the estimated trend is a random walk with drift that accounts for growth, and the cycle is stationary. In contrast to linear de-trending, the smoother of Hodrick and Prescott (1981) and Hodrick and Prescott [Hodrick, Robert, Prescott, Edward C., 1997. Post-war US business cycles: An empirical investigation. Journal of Money Credit and Banking 29 (1), 1–16] and the unobserved components model of Harvey, [Harvey, A.C., 1985. Trends and cycles in macroeconomic time series. Journal of Business and Economic Statistics 3, 216–227]. Watson [Watson, Mark W., 1986. Univariate detrending methods with stochastic trends Journal of Monetary Economics 18, 49–75] and Clark [Clark, Peter K., 1987. The cyclical component of US economic activity. The Quarterly Journal of Economics 102 (4), 797–814], the BN decomposition attributes most variation in GDP to trend shocks while the cycles are short and brief. Since each is an estimate of the transitory part of GDP that will die out, it seems natural to compare cycle measures by their ability to forecast future growth. The results presented here suggest that cycle measures contain little if any information beyond the short-term momentum captured by BN.     

Inflation and stabilization in Latvia: 1918–1922

The central European stabilization efforts of the interwar period, based on fiscal cuts coupled with the adoption of a pegged exchange rate and external support are often portrayed as prototypes defining the necessary conditions for successful stabilizations. While prevalent, the orthodox package was not universal in the period. We examine one exception, the Latvian stabilization of 1921–1922. Commencing from a background of multiple circulating currencies, the stabilization program was money-based, implemented without external assistance and followed rather than accompanied by exchange rate stabilization.     

On startups and doublethink – resistance and conformity in negotiating the meaning of entrepreneurship

Startup entrepreneurship is – in the literature, in the discourse of those engaging in it, and in cultural representations of the same – presented both as resistance against prevailing corporate logics and as a path towards becoming a corporate entity. Resistance, claimed or otherwise, is not just a reaction to a perceived outrage or a power imbalance, but is in itself a constitutive part of contemporary entrepreneurship, particularly as this is culturally constructed. We study this paradox, where a discourse of resistance becomes a productive part of entrepreneurial culture, by way of a case study of a successful startup. We analyze the manner in which people working in the startup utilize ‘doublethink’ to portray the organization both as resistance to an assumed, more corporate, ‘Other’ and also as a budding corporation unto itself. By doing so, we highlight how a discourse of resistance works as a value in entrepreneurship culture as well as a productive element of the same. In our case, resistance and corporate conformity come together in a way that defies easy classification; one where notions of resistance exist as easy-to-adopt identity positions and where doublethink becomes a productive way of dealing with corporate success.     

The joint effect of leader–member exchange and emotional intelligence on burnout and work performance in call centers in China

We examined the joint effect of LMX and emotional intelligence (EI) on burnout and work performance. Results based on data collected from 493 leader-member dyads in the call center of a large Chinese telecommunication company indicated that LMX was negatively related to burnout, yet was not significantly related to objective work performance. Moreover, we examined the effects of the four dimensions of EI (self-emotion appraisal, other-emotion appraisal, use of emotion, and regulation of emotion) on burnout and performance, and found that burnout mediated the link between use of emotion and work performance. Results also showed that LMX was associated with burnout and work performance more strongly for service workers with lower levels of self-emotion appraisal. More surprisingly, the link between LMX and work performance was stronger for service workers with higher levels of use of emotion.