A Comparison of Ethics of Investment Professionals: North America Versus Pacific Rim Nations

This study examines the ethical attitudes and practices of securities analysts and portfolio managers from four Pacific Rim countries – Hong Kong, Japan, Singapore and Thailand – and compares the findings to a similar study of North American investment professionals to identify significant differences. The findings show that many differences exist due to cultural differences and differences in the regulatory environment between the Pacific Rim countries studied and North America.     

An evidential reasoning approach to Sarbanes-Oxley mandated internal control risk assessment

In response to the enactment of the Sarbanes-Oxley Act 2002 and of the release of the Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 5, this study develops a risk-based evidential reasoning approach for assessing the effectiveness of internal controls over financial reporting (ICoFR). This approach provides a structured methodology for assessing the effectiveness of ICoFR by considering relevant factors and their interrelationships. The Dempster-Shafer theory of belief functions is utilized for representing risk.First, we develop a generic ICoFR assessment model based upon a Big 4 audit firm's approach and apply it to a real-world example. Then, based on this model, we develop a quantitative representation of various levels of ICoFR effectiveness and related risk-assessment as defined by the PCAOB and contrast these representations with levels implied by Auditing Standard No. 5. In doing so, we demonstrate the potential value of formal risk assessment models in both facilitating the assessment of risks in an individual engagement and in assessing the effects of different regulations.     

Technology Education and Developing Countries

This article considers the problem of introducing technology education as a school subject in development countries. Should the subject draw inspiration from everyday circumstances in these countries, or should it leapfrog to the space age? Answers depend upon circumstance. Alternative scenarios for how technology can be introduced in these settings are set forth. They include technology as reconstituted industrial arts, and technology across the curriculum. This revised version was published online in July 2006 with corrections to the Cover Date.     

Wendell Bell and his contribution to the field of futures

In training to be a pilot one of the earliest lessons taught and repeated is that no matter what happens, the pilot must first and foremost fly the airplane. It can be bouncing in turbulence, slammed up or down in a thunderstorm, caught up in the vortex of a jumbo jet that has just taken off, radios gone, night dark and foreboding, but fly the airplane first, then solve the problem. This may be a metaphor that Wendell uses when he looks at life span and the prospects of death. He says (emphasis his) the first task of life is to live.     

Greek airports: Efficiency measurement and analysis of determinants

This paper presents a performance evaluation of the Greek airports considering their relative technical efficiencies and factors determining these determinants. The analysis shows the importance of seasonality in demand on the performance of the airports, and the effect of location, size and operating characteristics on their technical efficiency, signifying peculiarities of the Greek airport system.     

The performance implications of intra‐ and inter‐regional geographic diversification

Engaging the debate regarding the appropriate level of geographic diversification for multinational enterprises (MNEs), we examine a critical, yet unresolved, question: How is performance impacted by the MNE's level of intra‐ and inter‐regional diversification versus the total level of geographic diversification? Using data from 123 U.S.‐based MNEs over a seven‐year period and leveraging both sales‐based and subsidiary‐based measures for diversification, we find that performance increases at an increasingly higher rate as firms concentrate more heavily on intra‐regional diversification. Regarding inter‐regional diversification and total geographic diversification, we find inverted‐U relationships to exist between firm performance and the level of geographic diversification. Different from recent research on multinationality, our robustness checks indicate no evidence of a sigmoidal relationship between the degree of regional diversification and performance. Copyright © 2010 John Wiley & Sons, Ltd.     

Chinese Investment in Latin American Resources

China's need for vast amounts of minerals to sustain its high economic growth rate has increasingly turned Chinese investors towards Latin America.This demand has propelled China into third place among Latin American investors,directing over $15 billion (about 9     

Beyond 'employability'

Concentrating on British welfare-to-work policy, the paper presentsa critique of 'employability-based' approaches to supply-sideintervention in the labour market. It is argued that the likelymacroeconomic impacts of the Blair Government's 'New Deal' programmeare being exaggerated, and that a more realistic appreciationof the limits and possibilities of such supply-side interventionsis required. Some suggestions for a reformed approach to welfare-to-workpolicy - based on a client-centred and developmental ethos,an enlarged concept of 'employment' (embracing the social economy)and active social redistribution - are proposed.     

Perception of What the Ethical Climate is and What it Should be: The Role of Gender, Academic Status, and Ethical Education

This study examined ethical attitudes and perceptions of 691 undergraduate seniors and freshmen in a college of business. Gender was found to be correlated to perceptions of "what the ethical climate should be" with female subjects showing significantly more favorable attitude towards ethical behaviors than males. Further, Seniors had a more cynical view of the current ethical climate than freshmen. Freshmen were significantly more likely than seniors to believe that good business ethics is positively related to successful business outcomes. Ethical education was significantly correlated to both perceptions of "current ethical climate" as well as "what the ethical climate should be". Students who had been exposed to ethical issues in a course were more likely to believe both, that ethical behavior is, and should be, positively associated with successful business outcomes.     

US Managers' Use of 'Pro Forma' Adjustments to Meet Strategic Earnings Targets

Abstract:  The practice of reporting manager-adjusted 'pro forma' earnings numbers in quarterly earnings press releases has attracted considerable attention in recent years in the United States. Prior research suggests that while some managers report these adjusted numbers to better reflect core earnings, others may use these earnings adjustments to meet strategic earnings targets on a pro forma basis when they fall short based on GAAP reporting standards. Assuming the latter motivation could potentially mislead investors, the difficulty lies in distinguishing the 'good guys' from the 'bad guys.' Using hand-collected pro forma earnings data, we investigate the extent to which different types of earnings adjustments affect the spread between pro forma earnings and GAAP earnings from continuing operations. Moreover, we investigate which types of adjustments managers use to meet strategic earnings targets. In addition to the exclusion of one-time items like restructuring charges, the results indicate that managers often exclude recurring expenses such as depreciation, research and development, and stock-based compensation to meet these strategic targets. The exclusion of recurring items is especially indicative of aggressive pro forma reporting. Finally, we find that firms that report adjusted earnings numbers only sporadically are more likely than firms that adjust earnings figures on a regular basis to use pro forma reporting to achieve strategic earnings targets by excluding recurring items.