The role of accounting and the accountancy profession in economic development: A research agenda

A widely held view in the accountancy profession and the donor community is that accounting and the accountancy profession play an essential role in economic development. However, our review of the academic literature finds limited empirical research evidence on the relation between accounting and the accountancy profession and economic development, including specifically whether any such relation is causal, and if so, the direction of the causality. Entities, including those comprising the donor community, policymakers, and professional accountancy organizations (PAOs), need evidence on the question of whether and how the accountancy profession contributes to economic development. Such research could assist donors in evaluating the outcomes of interventions aimed at building the capacity of PAOs in emerging and developing economies and inform future interventions. We summarize the limited academic research addressing the relation between PAOs and economic development and present insights from two roundtables facilitated by the International Association for Accounting Education and Research. We identify research opportunities and research design considerations. We hope our paper will stimulate accounting researchers to advance this literature.     

DO FIRMS SEEK A TARGET BOARD STRUCTURE? EVIDENCE FROM THE POST‐SOX PERIOD

We investigate whether firms restructure board composition to align with changes in their contracting environment. Board size and independence increase with firm complexity, consistent with theoretical predictions. However, the hypothesized negative relation between board independence and information costs is evident only for firms completing acquisitions. Furthermore, board independence increases to offset increases in CEO power in a sample of firms making acquisitions, but decreases when CEO power increases in a large cross‐section of firms. We conclude that after the Sarbanes–Oxley Act of 2002, firms face constraints adjusting to target board structure, but these constraints can be mitigated by a shock to the contracting environment via acquisition.     

Environmental factors of food literacy in Australian high schools: views of home economics teachers

This study set out to examine environmental factors impacting on the food literacy of adolescents. It utilized data from a nation‐wide survey of home economics teachers regarding their experience of food literacy education in Australian high schools. Content analysis and the ANGELO framework were applied to analyse free‐text comments from 78 of the respondents that were collected as part of a more extensive data set. The analysis of environmental factors revealed three enablers and ten barriers that could influence food literacy education delivered by high schools in Australia. High schools are well positioned to improve adolescents’ food literacy through a comprehensive, hands‐on approach in home economics. However, many environmental barriers were reported that could influence food literacy education in Australian high schools such as: lack of teaching materials and facilities, and human resources; the perceived inadequacy of the Australian school curriculum; non‐supportive school canteens; and negative role modelling. This study points to the need to eliminate or reduce these environmental barriers impacting on the capacity for effective food literacy education in high schools to help adolescents increase their food literacy and thereby support them in making informed food choices.     

Beach safety education for primary school children

Childhood drowning remains a serious public health problem worldwide. The Australian Water Safety Council has set as one of its highest priorities the reduction of drowning deaths in children aged 0–14 years. However, concerns have recently been raised that many students completing primary school still lack the ability to recognize potential aquatic risks, cope with emergencies or assist someone else in danger. In this study, 107 primary school children aged 11–12 completed a one day training programme led by surf lifesaving instructors. Pre, post and eight week follow-up measures showed statistically significant improvements in recognition of the red ‘beach closed’ flag, aquatic safety signs, how to identify a rip current and choosing the safest place to swim at a beach that included a rip current in the picture. Following training students were more willing to provide first aid assistance to family members and friends in an emergency situation. Findings reinforce the value of school-based training that provides a general foundation for aquatic safety, with the caveat that current programmes must be evaluated to ensure their content has a robust prevention focus.     

Electronic decision aids: Integration of a consumer perspective

Merchants and manufacturers are rapidly adopting electronic decision aids to help sell a variety of merchandise. These systems provide product information or recommendations based on input from the consumer and affect the way consumers process information. A conceptual framework, based on information processing theory and three strategic consumer difference variables — goal orientation, autonomy, and expertise — is presented. Based on these differences, propositions are derived to guide design of effective electronic decision aids.

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Zusammenfassung Elektronische Entscheidungshilfen: Die Miteinbeziehung der Perspektive des Verbrauchers Händler un Hersteller verwenden in wachsendem Ma\e elektronische Entscheidungshilfen beim Verkauf einer Vielzahl von Waren. Solche Hilfen stellen Produktinformation bereit und liefern Empfehlungen auch aufgrund solcher Dateneingaben, die von der Verbraucherseite kommen, und sie beeinflussen die Art und Weise, wie die Konsumenten Information verarbeiten. Der Beitrag liefert einen begrifflichen Rahmen, der auf der Theorie der Informationsverarbeitung und auf drei Konsumentenvariablen — Zielorientierung, Autonomie und Kompetenz — aufbaut. Auf dieser Grundlage werden Vorschläge für die Gestaltung wirksamer elektronischer Entscheidungshilfen abgeleitet.

     

Two-stage adoption of different types of pollution prevention (P2) activities

Pollution prevention (P2) remains the key pollution reduction strategy in the US despite its limited success in improving environmental performance. To aid the targeting of policies to promote the types of P2 that achieve environmental goals, this study investigates the intricate nature of P2 adoption by (1) distinguishing among three types of P2: procedural changes, input and material changes and equipment and product changes, (2) disentangling the adoption decision into a binary and a count decision, and (3) analyzing benefit- and cost-related factors. Using a sample of facilities of S&P 500 firms, I employ NB hurdle models to analyze how facilities respond to these factors in making P2 adoption decisions. I find that facilities that have lower cost of adoption due to past P2 experience have higher likelihood of adoption and higher rates of adoption of all types of P2. However, those exposed to greater threat of enforcement action find limited scope for P2 in achieving environmental compliance objectives. Some regulatory threat variables even have a negative effect. Facilities also adopt P2 to enjoy market-related benefits: final good producers are more likely to adopt P2 that appeal to consumers (input and material changes), while intermediate good producers are more likely to adopt P2 that is valued by its supply chain (procedural changes). Community characteristics and other knowledge sources are not always positively associated with the likelihood of adoption nor with the rate of adoption.     

From “Lemons” to Lemonade: Lessening the Impact of Adverse Selection through Buyer Trust

This research extends overlapping streams of research examining asymmetric information, adverse selection, and buyer trust by presenting an empirical investigation of the process by which a market for “lemons” emerges in the claiming market for thoroughbred racehorses. The study focuses attention on the potential of quality signals and buyer trust to lessen the impact of adverse selection. Incorporating concepts from economics, marketing, and psychology, a conceptual model suggests that adversely selected racehorses, distinguished by an unintentional signal from sellers to potential buyers, will be priced lower than otherwise similar racehorses perceived to be less subject to adverse selection. Data from one day of claiming races at 16 American racetracks (744 racehorses) are used to test this study hypothesis. Results provide evidence for adverse selection and a mitigating quality signal in the thoroughbred claiming market. Implications for buyers and sellers in this market, as well as more general implications, are discussed and an avenue for future research is proposed.