Novelty in Theme Park Physical Surroundings: An Application of the Stimulus–Organism–Response Paradigm

Many theme parks and other “facility-driven” leisure services seek to market and differentiate themselves through the creation and recreation of their physical surroundings. This study examines the extent to which the physical surroundings are perceived as novel influences the shopping values and revisitation behaviours of theme park visitors. This empirical investigation explored two types of theme park. The findings indicate that the more theme park visitors perceive physical surroundings as novel, the higher the level of shopping values (utilitarian and hedonic value) and the stronger their intention to revisit. The researchers propose a number of theoretical and managerial implications.     

Determining Meaningful Sales Relational (Mix) Variances

Further separation of the volume variance component of a multi-product firm's revenue variance into mix and quantity variances is regularly advocated by management accounting educators. Techniques used to achieve this separation are generally an extension of the analytical techniques used in the traditional flexible budget step-down? approach to variance determination. The analysis in this paper suggests that such an extension in most multi-product situations is inappropriate and generates useless and misleading results. Specific situations in which relational (in lieu of mix) variances may be appropriate do exist and applicable techniques are developed.     

The Interpretation And Resolution Of Resource Allocation Issues In Professional Organizations: A Critical Examination Of The Professional-Manager Dichotomy*

Professional organizations have long been depicted as rife with conflict between professionals, who are assumed to represent the interests of their profession, and managers, who are assumed to represent the potentially competing interests of the organization. This study examines the validity of this assumption. Based on past research on both professional organizations and knowledge structure development, we predict that to the extent that professionals and managers conflict, they may do so because they interpret 'identical' issues differently. The results of a study of resource allocation decision preferences with 350 chief financial officers, chief medical officers, and physicians revealed strong support for our issue interpretation predictions, and virtually no support for the simple professional–manager dichotomy. Specifically, using structural equation modeling, we found that: (1) single resource allocation issues could be interpreted in multiple ways; (2) issue interpretations were strong predictors of decision preferences; (3) professionals and managers tended to interpret issues differently, although many of the differences were not consistent with past theorizing about professionals; (4) the interpretations and decision preferences of professionals who occupied management positions were like those of other professionals but different from those of managers; and (5) decision maker status (i.e., professional and/or manager) was only modestly related to decision preference. Our findings suggest that the sources and manifestations of a professional–manager dichotomy are more complex than previously reported.     

Pension-Plan Real Estate Investment in an Asset–Liability Framework

This study explores the role of pension-plan real estate investment in an asset–liability framework. By assuming that the pension-plan manager wishes to have assets of at least equal value to the liabilities at all points in time, an asset selection process is derived which depends on both the asset's covariance with other assets and its covariance with the liability stream. We generally find real estate not to be highly correlated with pension-plan liabilities. This finding is of general interest, since it helps to explain why pension-plan real estate investment is extremely limited and much smaller than one would expect if pension-plan investors cared only about the mean and variance of the real return to their invested wealth.     

Economic Incentives and Foster Care Placement

Using micro-level data on children entering foster care in 1998, we estimate how the financial compensation paid to foster caregivers affects the placement of foster children. Controlling for observable child and county characteristics as well as for unobservable state effects, our estimates indicate that a $100 increase in the basic monthly foster care payment reduces the number of children placed in group homes by 28.7%, with more children instead going to nonrelative foster homes. Further estimates indicate that the children moved out of group homes are equally likely to be placed in two-parent and single-parent homes, but they are disproportionately placed with caregivers who do not share the child's race or ethnicity. Finally, a $100 increase in foster care payment will decrease the number of times the average child is moved from one foster placement to another by 20%.     

Alternatives for addressing major challenges in teaching introductory auditing courses

Due to the numerous and extensive recent changes in business, regulatory, and auditing environments, instructors are faced with difficult choices when designing an introductory auditing course that sufficiently meets the needs of students and the firms that will employ them. Instructors whose students are primarily hired by firms that audit SEC registered companies, for example, might allocate significant class time to PCAOB Auditing Standard No. 5 [Public Company Accounting Oversight Board (2007). Board proposes new standard on internal control over financial reporting. www.pcaob.com]. On the other hand, instructors whose students are primarily hired by firms that audit non-SEC registered companies, might allocate significant class time to reviews and agreed-upon procedure services. This paper presents four alternatives for designing introductory auditing courses, and discusses some of the major issues and constraints that instructors should consider in choosing which alternative best suits their needs. Finally, the paper provides an example that illustrates the differences among the four alternatives by discussing how each might incorporate one such specific regulatory change—PCAOB Auditing Standard No. 5.