Creative compliance in financial reporting

There is significant evidence of the practice of creative accounting by large listed corporations. However, little is known about the process by which such schemes are devised and succeed in escaping legal and regulatory sanction. This study examines this process of creative compliance in the case of complex convertible securities issued by U.K. listed companies between 1987 and 1990. There was an active dialectic of creativity in the design of these instruments — a shift from avoidance to rules to avoidance again. The evidence shows how a small group of professionals in finance, law and accountancy cooperated in the development of these instruments. They helped the issuers to manage their financial reporting process in a way in which compliance was assured. Where regulatees are able to command such creative compliance skills and resources, regulators may find themselves facing an uphill struggle.     

A Glass Escalator for Female UVA Graduates? Gender Gaps Across the Starting Salary Distribution

Atlantic Economic Journal -     

In union lies strength: Collaborative competence in new product development and its performance effects

It is widely recognized that new product development (NPD) is a highly interdependent process, yet efforts to empirically model the interdependence and examine its effect on firm performance are scarce. Our study addresses this research gap. We model firms’ abilities to collectively collaborate with suppliers, customers, and internal employee teams in NPD as collaborative competence and examine its impact on project and market performance. Using responses collected from 189 NPD managers, we find empirical evidence for collaborative competence and its differential impact on project and market performance. Specifically, we find that collaborative competence has a direct impact on project performance, but its impact on market performance is indirect, mediated through project performance. The results have significant managerial implications; achieving superior market performance from inter- and intra-organizational involvement is contingent on achieving superior project performance, and companies that fail to achieve desired project performance outcomes will also fail in achieving market performance goals.     

Assessing the performance impact of supply chain planning in net-enhanced organizations

This paper presents a conceptual framework that hypothesizes the nature of the relationships between a firm’s use of Internet-based information technology (IT), supply chain planning capability, and operational performance. Using data from 266 manufacturing sites and structural equation modeling, we show that the impact of IT on operational performance is contingent upon the intent of its use. Specifically, our results suggest that IT’s use in exploiting existing opportunities has both a direct effect and an indirect effect, mediated through supply chain planning capabilities, on operational performance. In contrast, when IT is used to explore new opportunities, it has neither a direct nor an indirect effect on operational performance. Implications of these research findings are reported.     

Healthcare utilization and costs associated with COPD among SEER-Medicare beneficiaries with NSCLC

Aim: To estimate the healthcare utilization and costs in elderly lung cancer patients with and without pre-existing chronic obstructive pulmonary disease (COPD).

Methods: Using Surveillance, Epidemiology and End Results (SEER)-Medicare data, this study identified patients with lung cancer between 2006–2010, at least 66 years of age, and continuously enrolled in Medicare Parts A and B in the 12 months prior to cancer diagnosis. The diagnosis of pre-existing COPD in lung cancer patients was identified using ICD-9 codes. Healthcare utilization and costs were categorized as inpatient hospitalizations, skilled nursing facility (SNF) use, physician office visits, ER visits, and outpatient encounters for every stage of lung cancer. The adjusted analysis was performed using a generalized linear model for healthcare costs and a negative binomial model for healthcare utilization.

Results: Inpatient admissions in the COPD group increased for each stage of non-small cell lung cancer (NSCLC) compared to the non-COPD group per 100 person-months (Stage I: 14.67 vs 9.49 stays, p?<?.0001; Stage II: 14.13 vs 10.78 stays, p?<?.0001; Stage III: 28.31 vs 18.91 stays, p?<?.0001; Stage IV: 49.5 vs 31.24 stays, p?<?.0001). A similar trend was observed for outpatient visits, with an increase in utilization among the COPD group (Stage I: 1136.04 vs 796 visits, p?<?.0001; Stage II: 1325.12 vs 983.26 visits, p?<?.0001; Stage III: 2025.47 vs 1656.64 visits, p?<?.0001; Stage IV: 2825.73 vs 2422.26 visits, p?<?.0001). Total direct costs per person-month in patients with pre-existing COPD were significantly higher than the non-COPD group across all services ($54,799.16 vs $41,862.91). Outpatient visits represented the largest cost category across all services in both groups, with higher costs among the COPD group ($41,203 vs $31,140.08).

Conclusion: Healthcare utilization and costs among lung cancer patients with pre-existing COPD was ～2–3-times higher than the non-COPD group.     

Decisions,decisions: Cybervetting through the eyes of students

How do students believe employers use social media in vetting job candidates? In this instructional experiment, students evaluated three hypothetical job candidates who had divergent social media presences. Questionable content, even if through an indirect link, was thought to reflect on a candidate's character and was extrapolated to future work performance. Professionally related social media activity boosted perceptions of both the candidate's character and skills. A nonexistent online presence prompted polarized assumptions—most frequently that he/she was asocial, deceptive, or technologically inept. Findings from this activity can inform business educators and help students develop a sharper awareness of how employers might weigh the online profiles of job candidates.     

The pattern of deaths in road traffic crashes in Sindh, Pakistan

The objectives of this study were to examine the pattern and magnitude of deaths in road traffic crashes (RTCs) in Sindh province of Pakistan. This cross-sectional study used data obtained from government documents and content analysis of daily newspapers' reports on incidents of deaths in RTCs. Results showed that the total annual number of RTCs, fatal RTCs and deaths in RTCs were 2272 (+/-293), 1104 (+/-89) and 1321 (+/-136) respectively. On average, there were four deaths per day in RTCs. The victims were 85% male and the majority were between 15 and 49 years of age. Pedestrians, passengers, motorcyclists and drivers were most commonly the victims. Deaths in RTCs were double in rural areas compared to urban areas. The most common causes of fatal RTCs were by being hit by a vehicle, breakdown and collision of motor vehicles and speeding. The frequent involvement of the men of working age in RTCs may have serious social and economic implications; therefore, the prevention of RTCs, as far as possible, is imperative.