The economics of external reporting: Three frameworks for the classroom

In this paper three frameworks are presented that can be used by accounting instructors to explain some of the economic issues surrounding the external reporting process. The first framework explains accounting numbers in terms of the relationships among capital providers, managers, and auditors. The second framework explains external reporting in terms of its role in determining capital market allocations. The third framework focuses on the policymaking process and the notion of “economic consequences.” In each case the framework is first described and then some suggestions are provided on how it might be used in the classroom. The frameworks have been developed for use in introductory, intermediate, and advanced accounting courses at both the undergraduate and graduate level.     

Book Reviews

Book Reviewed in This Article: THE ORIGINS OF TRADE UNION POWER: Henry Phelps STEEL STRIKE: A CASE STUDY IN INDUSTRIAL RELATIONS : Jean Hartley, John Kelly and Nigel Nicholson BACK FROM THE BRINK : Michael Edwardes IN SEARCH OF EXCELLENCE: LESSONS FROM AMERICA'S BEST RUN COMPANIES : Thomas J. Peters and Robert H. Waterman Jr. CORPORATE CULTURES: THE RITES AND RITUALS OF CORPORATE LIFE : Terrence E. Deal and Allen A.     

BOOK REVIEWS

NIGHT WORK: by J. Carpentier and P. Cazamian INDUSTRIAL RELATIONS–ATEXT BOOK: by M. P. Jackson RULE-MAKING AND INDUSTRIAL PEACE: INDUSTRIAL RELATIONS IN THE FOOTWEAR INDUSTRY; by J. F. B. Goodman, E.GA. Armstrong, J. E. Davis and A. Wagner GRIEVANCE ARBITRATION: A PRACTICAL GUIDE: International Labour Office THE SHIPPING INDUSTRY IN THE UNITED KINGDOM: by J. McConville The Development of Industrial Relation Systems: Some Implications of Japanese experience.     

Book Reviews

Book Reviewed in This Article: MULTINATIONAL COLLECTIVE BARGAINING ATTEMPTS H. R. Northrup, R. L. Rowan EMPLOYEE POTENTIAL, ISSUES IN THE DEVELOPMENT OF WOMEN WHITE-COLLAR PROLETARIAT: THE INDUSTRIAL BEHAVIOUR OF BRITISH CIVIL SERVANTS Michael P. Kelly ECONOMICS OF WAGES AND LABOUR L. C. Hunter C. Murray WORKERS' CO-OPERATIVES: JOBS AND DREAMS Jenny Thornley     

Helpful Reviewers in TripAdvisor,an Online Travel Community

Online communities need a critical mass for communication, information, and entertainment and should provide useful information for their members in order to obtain this critical mass. The abundance of online travel reviews increases cognitive costs of travelers, and travelers use extrinsic cues to judge the quality of online reviews to eliminate costs associated with the information process. Of various cues used in online environments, this study examined an online reputation system in TripAdvisor.com and profiled the reviewers who post helpful reviews in the online travel community. The key findings include that helpful reviewers are those who travel more, actively post reviews, belong to any age and gender groups, and give lower hotel ratings. This study adds to research of online travel reviewers by characterizing helpful information creators among online content creators.     

Modeling the time-varying volatility of the paper–bill spread

The spread between the rates on commercial paper and Treasury bills has received considerable attention in the literature for its role as an indicator of real economic activity. In this paper we empirically examine what happens when the volatility of the spread changes over time. We estimate a nonlinear model that enables us to discern the asymmetric impact of negative and positive shocks to the spread. We find that a positive shock has a larger impact on the volatility of the spread than does a negative shock.     

Why Firms Engage in Corruption: A Top Management Perspective

This study builds upon the top management literature to predict and test antecedents to firms’ engagement in corruption. Building on a survey of 341 executives in India, we find that if executives have social ties with government officials, their firms are more likely to engage in corruption. Further, these executives are likely to rationalize engaging in corruption as a necessity for being competitive. The results collectively illustrate the role that executives’ social ties and perceptions have in shaping illegal actions of their respective firms.