The Role of Informal Controls and a Bargaining Opponent's Emotions on Transfer Pricing Judgments

While accounting research has demonstrated the role of a decision maker's own emotions during judgments, psychology research proposes that others’ emotions provide an informational signal to assess an opponent's limits, cooperativeness, and toughness during bargaining. We examine how a bargaining opponent's emotions provide information signals that can be used by a selling division manager during transfer pricing decisions and whether informal control system choices by corporate management to foster cooperation can create a context that influences how managers react to these signals. In an experiment, when informal controls to encourage cooperation were absent (less collaborative environment), managers’ selling price estimates were more conciliatory when the opponent was described as displaying negative emotions than when described as displaying positive emotions. However, when informal controls to cooperate were present (more collaborative environment), managers’ selling price estimates were more conciliatory when the opponent displayed positive rather than negative emotions. Path analyses suggest that managers’ perception of their opponents’ signals is the mechanism by which opponents’ emotions influence transfer‐price decisions. This study highlights the role of others’ emotions as information signals during accounting bargaining and provides insight into the context dependency of opponents’ emotions under various control system structures.     

Linking strategy and human resource practices: How employee and customer contracts are created

Organizations implement their business strategies through the human resource (HR) practices they use. These practices are major determinants of employees' psychological contracts. How employees interpret the terms of their employment impacts motivation, innovation, and customer service. This article describes four common types of psychological contracts in US firms and the HR practices that create them. It develops a framework for understanding how each contract shapes employee performance, retention, cooperation with fellow employees and customer responsiveness. It presents recommendations for more effectively managing the link between business strategy and the psychological contract of employees. © 1994 by John Wiley & Sons, Inc.     

Ethics and the defense procurement system

A large U.S. government investigation into arms procurement procedures with corporate contractors has recently led to guilty pleas to fraud and illegal use of classified documents. Operation Ill Wind has brought public attention to the criminal and unethical conduct of large defense contractors in their dealings with the government. This article will review how the defense contract bidding process operates and why illegal activity has been able to compromise the process. We will offer proposals to improve the process in light of the present inquiry.Paul Lansing is Professor of Business Law at the University of Illinois. Previous articles have appeared in the Harvard International Law Journal; New York University Journal of International Law and Politics; the Journal of Corporation Law; the Journal of Business Ethics and others.Kimberly Burkard received her M.B.A. from the University of Iowa.     

Representation,testing and policy implications of planning processes

Various ways to represent planning processes to test and draw policy implications from them are presented. We argue that three kinds of variables should be included: context, process and outcome. Four different models which incorporate these three variables are proposed, and data from a large public sector planning study are fitted to these four models. The findings suggest that the process-outcome link is the key to understanding the effectiveness of planning processes.     

Beyond the lamppost: Optimal prevention and control of the Brown Tree Snake in Hawaii

We develop an integrated model for the prevention and control of an invasive species. The generality of the model allows its use for both existing and potential threats to the system of interest. The deterministic nature of arrivals in the model enables clear examination of the tradeoffs inherent when choosing between prevention and control strategies. We illuminate how optimal expenditure paths change in response to various biological and economic parameters for the case of the Brown Tree Snake in Hawaii. Results suggest that it is more advantageous to spend money finding the small population of snakes as they occur than attempting to prevent all future introductions. Like the drunk that looks for his keys only where the light is, public policy may fail to look “beyond the lamppost” for snakes that have already arrived but have not yet been detected. Actively searching for a potential population of snakes rather than waiting for an accidental discovery may save Hawaii tens to hundreds of millions of dollars in future damages, interdiction expenditures, and control costs.     

The IASB's Discussion Paper on the Conceptual Framework for Financial Reporting: A Commentary and Research Review

Consistent with the mission of the International Association for Accounting Education and Research (IAAER) to “promote global excellence in accounting education and research, and to maximize accounting academics' contribution to the development and maintenance of high‐quality, globally recognized standards of accounting practice,” this paper provides a commentary and research review by an ad hoc committee of the IAAER on the IASB's Discussion Paper DP/2013/1—A Review of the Conceptual Framework for Financial Reporting. The comments focus on four main areas about which prior academic research can inform standard setters in their consideration of the revised Conceptual Framework: (1) recognition and derecognition, (2) measurement, (3) presentation and disclosure, and (4) other comprehensive income. The views expressed here by the ad hoc committee are those of the authors and do not necessarily reflect a consensus view of the IAAER membership or its Executive Committee. The paper supports the IASB's general objective of developing one set of globally acceptable accounting standards based on a cohesive and complete Conceptual Framework.     

When experience meets national institutional environmental change: foreign entry attempts of U.S. firms in the Central and Eastern European region

We develop an institutional change perspective to examine the tension that can exist between evolving external environmental influences and internal organizational influences on foreign entry attempts. Using data on the entries of 215 U.S. public firms made into 11 Central and Eastern European transition economies during the period of 1990–2003, we find that shifts in national institutional environments, from a socialist to a market economy, reduce the extent of challenges encountered to make a hierarchical entry, which leads to an increase in foreign hierarchical entry attempts but not necessarily to a decrease in relational entry attempts as institutional transformation. We find evidence of inertial influences as experienced entrants tend to follow their previous decisions when making subsequent entry attempts. Further, they are less responsive in their foreign entry strategies to the institutional transformation in a given host country than inexperienced firms. We also find that the experience gained from relational entries results in more hierarchical entry attempts, but hierarchical entry experience results in fewer relational entry attempts. Copyright © 2009 John Wiley & Sons, Ltd.     

Transfer Payments without Growth: Evidence for German Regions, 1992–2005

After German reunification, interregional subsidies accounted for approximately 4% of gross fixed capital investment in the new federal states (i.e. those which were formerly part of the German Democratic Republic). We show that, between 1992 and 2005, infrastructure and corporate investment subsidies had a negative net impact on regional economic growth and convergence. This result is robust to both the specification of spatially weighted control variables and the use of instrumental variable techniques to control for the endogeneity of subsidies. Our results suggest that regional redistribution was ineffective, potentially due to a lack of spatial concentration to create growth poles.     

Determinants of Leisure Time Physical Activity Participation Among Latina Women

The goal of this study was to examine leisure time physical activity (LTPA) among Latina women and to determine factors influencing their LTPA participation. The ecological model was employed as a theoretical framework in order to examine attitudes, social support, and constraints affecting physical activity. Surveys and in-depth interviews were used to collect data. Results showed that although women's LTPA participation was low, they had positive attitudes toward LTPA, and they believed they had high levels of support for LTPA. The most often mentioned constraints included lack of child-care and lack of time. Attitudes toward LTPA, social support for LTPA, and certain constraints were significant predictors of LTPA participation. Results of the in-depth interviews complemented the survey data.     

Technology legitimation in the public discourse: applying the pillars of legitimacy on GM food

ABSTRACT

The public sphere, reflected by the public discourse, is an important domain for the legitimation of technology. In the institutional literature, four pillars of legitimacy are distinguished: normative, cognitive, regulative, and pragmatic. The aim of this study was to investigate to what extent these pillars can be used as a framework for analysing the legitimation of technological innovations in the public discourse. We conducted a qualitative media analysis of the case of GM food in the Netherlands, analysing 287 articles from nine Dutch newspapers in the period of 1996–2016. The results show that the pillars provide insight into legitimacy in a multi-dimensional way and serve as a structure for the dynamics of legitimation processes. Regarding GM food, the public debate was pre-dominantly negative, with a strong focus on the normative pillar. Emotional rhetoric exceeded knowledge and understanding (cognitive pillar) of GM food. The regulative and pragmatic pillars were hardly addressed.