Screening incentives and privacy protection in financial markets: a theoretical and empirical analysis

We study a model in which firms offer financial products to individuals, post prices for their products, and screen consumers who apply to purchase them. Any information obtained in the screening process may be traded to another firm selling related products. We show that firms' ability to sell consumer information can lead to lower prices, higher screening intensities, and increased social welfare. By exploiting variations in the adoption of local financial‐privacy ordinances in five California Bay Area counties, we are able to provide simple estimates of the effects of stricter financial‐privacy laws on mortgage denial rates during 2001–2006. Consistent with the model's predictions, denial rates for home‐purchase loans and refinancing loans decreased in counties where opt‐in privacy ordinances were adopted. Moreover, estimated foreclosure start rates during the financial crisis of 2007–2008 were higher in counties where the privacy ordinance was adopted.     

基于Logistic回归的企业RFID采纳关键因素研究

以技术接受模型为基础,结合RFID的特征,建立了包含技术、组织和制度与外部环境三方面因素的企业RFID技术采纳模型,并对我国企业采纳RFID的情况展开实地调研。通过Logistic回归等实证研究方法,研究发现：我国目前企业RFID的应用水平还很低;有用性认知、易用性认知、客户对隐私的关注对我国企业是否采纳RFID产生了显著影响。     

Investigating individual privacy within CBDC: A privacy calculus perspective

Central Bank Digital Currencies (CBDC) are a digital innovation based upon distributed ledger and smart contract technology. In this paper we examine how potential users of CBDC technology willingly disclose their personal information. The researchers conducted an online quantitative survey which investigates the privacy perceptions of consumers. Using the privacy calculus theory lens, this study looks at the potential benefits of CBDC and how these influence user perceptions towards privacy disclosure. While this research suggests that participants in the study had negative perceptions in relation to the disclosure of personal information, many were willing to offset these concerns if there are significant benefits in the usage of CBDC. Factors such as ease of use, convenience, availability, and credibility were viewed as key benefits in this scenario. Thus, future banking strategies and marketing approaches need to consider these components to foster CBDC adoption.     

The effect of SFAS 142 on the ability of goodwill to predict future cash flows

This study examines the effect of Statement of Financial Accounting Standards No. 142 (SFAS 142) on the ability of goodwill to predict future cash flows. SFAS 142 allows substantial managerial discretion and leads to a significant magnitude of economic impact on financial statements, resulting in critical debates over the consequence of its adoption. I find that the ability of goodwill to predict future cash flows has improved since the Financial Accounting Standards Board (FASB) adopted SFAS 142. Furthermore, sub-sample analyses fail to reveal compelling evidence that reporting discretion induced by SFAS 142 is used opportunistically or informatively, contrasting with the pervasive view based on the opportunistic reporting hypothesis. Overall, contrary to the position of critics of SFAS 142, the results support the view taken by the FASB and proponents of SFAS 142: eliminating systematic amortization and adopting fair value estimates improve representational faithfulness of goodwill reporting.     

Planned Changes in Accounting Principles for UK Life Insurance Companies: A Preliminary Investigation of Stock Market Impact

The Association of British Insurers' (ABI) proposals for an 'accruals' method would have the effect of 'front-loading' profits reported on life assurance business compared with the traditional 'statutory solvency' basis. The ABI argued that adoption of the method would lead to a more realistic valuation of life company shares. This research tests this view by investigating, by means of an event study, the stock market impacts of the announcements of the proposals and the initial releases of 'accruals' profits, utilising a recently developed methodology for allowing for the effect of industry and event date clustering. The results found here do not provide any evidence to substantiate the ABI's view, although they do indicate that, where companies signal a change in the allocation of results as between shareholders and policyholders, share prices do reflect the perceived change in shareholder wealth. Moreover, it is argued that the accruals method itself may be more appropriately seen as reflecting and enabling a more pervasive change in managerial approach, refocusing on adding value for shareholders rather than policyholders. Any improvement in share prices resulting from this development might therefore only be expected to be very gradual and hard to distinguish from the impact of other effects.     

The influence of perceived risk on Internet shopping behavior: a multidimensional perspective

The present study analyzes the influence that perceived risk in online shopping has on the process of e‐commerce adoption by end consumers. With this aim, the Technology Acceptance Model is taken as a reference framework, proposing an Extended E‐Commerce Acceptance Model that includes the diverse constructs of perceived risk: financial, performance, social, time, psychological and privacy. Empirical evidence is obtained from two samples, one is composed by Internet users with no experience in web shopping and the other is formed by online buyers. The results obtained confirm that the intention to shop through the Internet is positively influenced by general attitude toward the system and negatively influenced by the risk associated with the Web. Regarding the importance of the risk dimensions considered in the study, the economic and performance facets are the ones that have a greater influence on e‐commerce adoption, while social and time dimensions are the less relevant.     

社交网络营销在中国(英文)

随着网络越来越深入中国人的日常生活中,社交网络的崛起,正改变着公司的营销策略与方式。进入Web2.0时代,传统的网络营销手段,诸如搜索引擎竞价排名,门户网站广告等方式所起到的营销效果已经大不如前。随着Facebook、twitter等国外的社交网络媒体在网络营销上的优势日益体现,以及社交网络媒体在中国的蓬勃发展,越来越多的中国企业,看到了SNS营销的潜力,意识到了利用了SNS网站进行营销的重要性。SNS在中国起步较晚,近几年却发展迅速,对于中国企业,如何利用SNS达到期望营销效果,已经成为重要的话题。本文希望,通过参考国内外成功的SNS营销案例,借助菲利普·科特勒的市场营销模型,为中国企业的SNS营销方式提供参考。     

Social Implications of Genetic Testing

This paper examines the social implications of predictive genetic testing and its impact on the insurance industry. Although the Human Genome Project has the potential to improve the health of our nation, it also may serve as a means of highlighting genetic differences among individuals and ethnic groups. Thus, if we are to reach the full promise of the Project, society must address the public’s fears of genetic discrimination in insurance and employment contexts. Following an analysis of state and federal legislation on genetic privacy and discrimination, the paper concludes with a challenge to the insurance industry to work with the medical community and health care advocates to formulate a public policy approach that promotes informed consent and the fair use of genetic information.     

Earnings management using classification shifting of revenues

This paper examines a novel form of classification shifting as an earnings management tool using a sample of 12,804 UK listed firm-year observations for the 1995–2014 period. It proposes a new approach to classification shifting whereby firms have scope to misclassify revenues from non-operating activities as operating revenues. The results establish that firms engage in classification shifting of non-operating revenues to inflate operating revenues. They indicate that firms in the period following mandatory IFRS adoption are associated with an increase in this practice, consistent with IFRS offering greater scope for manipulation. Further tests reveal that classification shifting of revenues is more pervasive for firms that report operating losses or have low growth.     

The Israeli XBRL Adoption Experience

eXtensible Business Reporting Language (XBRL) is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world. It is a tool to bridge potential language barriers and unify financial reporting. This has appeal to foreign investors, among others, who can rely on information in XBRL‐tagged financial reports to make investment decisions without having to translate financial statements from local language. In 2008, Israel required most public companies to adopt International Financial Reporting Standards (IFRS) for financial reporting and to use XBRL‐tagged reporting format, as part of an aggressive effort to make its capital markets more transparent and attractive for foreign investors. In this paper, we study all Israeli public companies and analyze the accuracy and reliability of their XBRL‐tagged financial statements that are available on MAGNA, the Israel Securities Authority's electronic system. We describe the process by which the XBRL‐based data were collected and reported. We document, categorize, and analyze deficiencies in the XBRL‐tagged filings, and inconsistencies between them and the Hebrew‐based annual reports. We observe pervasive data entry errors resulting in inaccurate XBRL‐generated financial reports, which went undetected for over one year. Further, first year XBRL reporting (in conjunction with IFRS adoption) did not increase foreign investment in the Israeli capital markets. This analysis allows us to better understand the benefits and challenges of the adoption of XBRL.     

Ethical impact of artificial intelligence in managerial accounting

Recent advances in technology have accelerated digitalization and intelligence in modern business. Particularly, the increasing use of Artificial Intelligence (AI) in managerial accounting is expected to accurately measure corporate performance, provide intelligent analyses, and predict the future of a company. However, along with the benefits, ethical concerns of using AI also arise, such as deprofessionalization, data breach, and isolation among accountants. This paper explores the ethical impact of AI in managerial accounting at both pre- and post-adoption stages. Based on 47 interviews conducted with companies, an AI system vendor, and regulators, we found that data security, privacy, and misuse; accountability; accessibility; benefits and challenges; and transparency and trust of AI are among the most common ethical risks in the development and use of AI in managerial accounting. Unique ethical impacts on four types of stakeholders: developers, managers in charge of AI adoption, managerial accountants, and regulators, were also discovered.     

Does inflation targeting improve fiscal discipline?

We explore the performances of inflation targeting (IT) adoption in terms of fiscal discipline (FD), while most existing studies focus exclusively on the role of FD as a precondition for IT adoption. Using a sample of developing and developed countries, we show that IT adoption exerts a positive and significant effect on FD, a result robust to a wide variety of alternative specifications. In addition, this effect is statistically significant only in developing countries, a result that may fuel the current debate regarding the relevance of IT adoption in general, and particularly for developing countries.     

The prospect of online communication in the event of a disaster

In modern society, enormous amounts of information are instantly exchanged, and topics shift rapidly. People desire and share information to foster a sense of membership in their societies. The trend of Internet communication is present in many types of groups. During the circumstances of disasters, the 2011 Great East Japan earthquake and Tsunami and Typhoon Haiyan (local name, Yolanda) in the Philippines in 2013, social networking services (SNS) constituted a considerably effective method for sharing/exchanging information about the significance of the disaster, confirming family members’ and friends’ whereabouts, locating shelters, relief, food and goods rationing, and so on. Not only did individuals seek/provide information, but government agencies also utilized the social media channels to communicate with the public. Hence, developing and adopting communication in a virtual space were considerably effective for decision-makers in providing emergency services. This study examined SNS users’ accounts based on discretionary decisions during two major disasters: the Great East Japan Earthquake and Tsunami in 2011 and Typhoon Haiyan in the Philippines in 2013. In the case of the Great East Japan Earthquake and Tsunami in 2011, government agencies and NPOs actively utilized SNS functions, whereas the mass media distributed information during Typhoon Haiyan in the Philippines in 2013.     

On the robustness of the results of adoption date choice studies: The case of pension accounting

This paper examines the robustness of the results of adoption date choice studies to sample selection criteria, variable set, and the approach to model building. We use the new pension accounting standard (SFAS 87) in our examination. To this end, we develop a model of the relationship between the adoption date of the pension standard and the variables commonly used in adoption date studies. The variables are: (1) Firm size (2) income change prior to the adoption date and proxies for income management; (3) tightness of debt constraints; and (4) extent of the impact of the standard on financial statements.The results are consistent with the smoothing and compensation hypotheses, but not with the size hypothesis. Debt constraints did not have a significant effect on the selection of the adoption date; but, to the extent that the funding status of pension plans is a measure of the income effect of SFAS 87, the results are also consistent with the selection of adoption date to ease accounting-based debt constraints.Further tests indicate that the results of adoption date choice studies depend on the sample selection critiera, the variable set, and the approach to model building. Future researchers should be aware of the sensitivity of the results to these factors.     

The Diffusion of Tax Effect Accounting in Australia

This paper examines the impact of regulation and earnings management incentives on the evolution of tax effect accounting in Australia. Following the release of the first accounting standard on the issue the method spread roughly equally throughout the mining and industrial sectors. Amendments to the standard, which loosened the recognition criteria for tax loss carry forwards, led to a significant increase in the proportion of companies (particularly industrials) adopting income tax allocation. Subsequent amendments restricting such carry forwards were associated with a significant decline in the proportion of companies allocating tax (particularly miners). We also observe differential financial statement effects between mining and industrial companies and, within both sectors, differential financial statement effects across time. Consistent with the arguments of Leppinus (1977) and Gibson (1984) the adoption of tax effect accounting is, on average, earnings enhancing in the post-DS4 period. However, in the pre-DS4 period, adoption was just as likely to reduce income for industrial companies as it was to increase it. In contrast, adoption was almost uniformly earnings reducing for mining companies. Thus something other than an earnings management hypothesis is needed to explain the voluntary adoption decision of the early (pre-DS4) adopters. We conjecture on the alternatives.     

The Effect of the Mandatory Adoption of Corporate Governance Mechanisms on Executive Compensation

This study investigates empirically the effect of corporate governance principles on executive compensation and firm performance prior to and after the adoption of the first Greek Law on corporate governance. Prior to the adoption of the law, managers were not compensated in line with their performance. Since its introduction, a significant link has been observed between executive compensation and company performance as measured by accounting measures of performance. Following the adoption of corporate governance principles by law, the main mechanism that controls executive compensation is the election of independent non-executive board members. The results are robust to alternative accounting measures of performance.     

Information friction and investor home bias: A perspective on the effect of global IFRS adoption on the extent of equity home bias

This paper provides a perspective on the effect of IFRS adoption on the tendency of investors to under-invest in foreign equities. We consider explanations for the equity home bias described in prior research and discuss research relevant to the informational consequences of global adoption of IFRS. Specifically, we evaluate whether IFRS adoption reduces information processing costs or decreases investor uncertainty about either the quality of financial reporting or the distribution of future cash flows. We predict that the effect of any reduction in information processing costs from the adoption of IFRS is likely to be small relative to the effects of other determinants of home bias such as the strength of investor protection mechanisms in foreign countries, behavioral biases toward familiar equities, and informational advantages related to geographical proximity. We argue that the quality of the information that investors have (or perceive they have) decreases with distance, conclude that global IFRS adoption is unlikely to affect home bias, and propose avenues for future research.     

The effect of mandatory IFRS adoption on real and accrual-based earnings management activities

This study examines the effect of mandatory adoption of International Financial Reporting Standards (IFRS) on both accrual-based and real earnings management. While prior literature has mainly examined the effects of IFRS adoption on accrual-based earnings management, no study to date has focused on the impact of IFRS adoption on real earnings management. Using a sample of 15,206 observations from 22 European countries between 2000 and 2010, this study employs a control sample of voluntary adopters and applies a differences-in-differences design to control for confounding concurrent events. The results suggest that mandatory IFRS adoption had no significant impact on either real or accrual-based earnings management practices. Additional analysis on a sub-sample of firms with relatively strong earnings management incentives supports a dominant role for firm-level reporting incentives over accounting standards in shaping financial reporting quality.     

The Effect of Managerial Litigation Risk on Earnings Warnings: Evidence from a Natural Experiment

We examine the causal effect of managerial litigation risk on managers’ disclosure of earnings warnings in the face of large earnings shortfalls. Exploring the staggered adoption of universal demand (UD) laws as an exogenous decrease in litigation risk, we find that the adoption leads to a decrease in managers’ issuance of earnings warnings, especially among firms facing a higher litigation risk prior to the adoption. In contrast, we find no change in managers’ tendency to alert investors of impending large positive earnings surprises. Collectively, our results provide causal evidence that higher litigation risk incentivizes managers to issue more earnings warnings. Our results differ from Bourveau et al.’s finding of an increase in the frequency of management earnings forecasts after the adoption of UD laws. We reconcile our findings with theirs by demonstrating that the effect of adopting UD laws on management earnings forecasts depends critically on forecast horizon: The adoption increases long-horizon forecasts, but decreases short-horizon forecasts.     

Social Ties and the Demand for Financial Services

This paper studies the importance of social interactions for the adoption of financial services among young adults. Specifically, we investigate whether, how, and why financial decisions among interacting agents are correlated. We exploit a unique dataset of friendship networks in the United States and a novel estimation strategy that accounts for possibly endogenous network formation. We find that not all social contacts are equally important: only long-lasting relationships influence financial decisions. Moreover, this peer influence exists only in cohesive social structures. This evidence is consistent with an important role of trust in financial decisions. When agents consider whether or not to adopt a financial instrument, they face a risk and may place greater value on information coming from agents they trust. These results can help explain the importance of face-to-face social contacts for financial decisions.