Household savings constraints,uncertainty and macroprudential policy

We investigate the impact of macroprudential policy on Irish households' perception of savings adequacy, with a particular focus on households intending to purchase a home. These measures tighten loan-to-value ratios and raise the entry cost for home purchase. We find that the measures have had a significant impact on savings constraints. Indeed, constrained potential buyers, who are planning to purchase, but not presently saving to buy a home, are the group most affected as the macroprudential rules increase the downpayment size required. Heterogeneous effects across households indicate younger, private renting households, and those with relatively uncertain cash flows.     

The Interaction of Learning Styles and Teaching Methodologies in Accounting Ethical Instruction

Ethical instruction is critical for trainee accountants. Various teaching methods, both active and passive, are normally utilised when teaching accounting ethics. However, students’ learning styles are rarely assessed. This study evaluates the learning styles of accounting students and assesses the interaction of teaching methods and learning styles in an ethics instruction environment. The ethical attitudes and preferred learning styles of a cohort (137) of final year accounting students were evaluated pre-instruction. They were then subject to three different teaching methods while studying ethics during an auditing course. When ethical attitudes and preferred learning styles were re-assessed post-instruction, the teaching methods were found to have influenced active learners more than passive ones. Furthermore, when learning styles matched teaching methods used, usefulness was assessed as high but when learning styles and teaching methods differed, usefulness deteriorated significantly. Students displayed a preference for passive learning styles, despite being so advanced in their education. The implications are that instructors should consider learning styles before deciding on appropriate teaching methods, in accounting ethics environments.     

Short reviews

Centre for Employment Research, 1990: Ethnic Minority Businesses and Employment in Greater Manchester. Manchester: Greater Manchester Economic Development Officers Ltd, no price stated.

The National Economic Development Council, 1990: Working for Pleasure -Tourism and Leisure Tomorrow. London: NEDO, £15.00 Report, £35.00 Conference Papers.

John Freeman, Frank Gaffikin and Mike Morrissey, 1989: The Irish Economies: A Common Future? Amalgamated Transport and General Workers Union, Belfast. No price given.

Morrissey, H. 1989: Women in Ireland: The Impact of 1992. The Amalgamated Transport and General Workers Union.

Gorman. G. 1989: School-Industry Links. London: Kogan Page.

Brewster, C. and Teague, P. 1989: European Community Social Policy-Its Impact on the UK. Institute of Personnel Management, £30.00 cloth.     

Stated Preferences, Real Behaviour and Anchoring: Some Empirical Evidence

We compare different contingent valuation question formats with each other and with observed behaviour for a non-monetary estimation task, the expected number of kilometers travelled by automobile. Open-ended questions, open-ended follow-up questions, dichotomous choice (DC) questions, and double-bound DC questions are included. The single and double-bound DC questions result in an estimated mean about twice as high as the actual value and the open-ended mean. The DC question overestimation seems to be due to an anchoring effect leading to yea-saying behaviour. Our results about the difference between DC questions and open-ended questions is consistent with the pattern observed in contingent valuations studies of the willingness to pay. Our results indicates that DC questions seem to be associated with a general overestimation problem that is present even for simple non-monetary estimation tasks.     

Place,space, and foreign direct investment into peripheral cities

Perspectives drawn from the economic geography literature are increasingly used to generate insights into locational issues in international business. In this paper, we seek to integrate these literatures further by investigating the locational determinants of foreign direct investment (FDI) into peripheral cities within an emerging economy. Peripheral cities in emerging economies are attracting a growing proportion of global FDI flows, but the international business literature lacks a framework for understanding subnational determinants of FDI, particularly into non-core locations. We draw on the core-periphery model to build and test theory on how spatial interdependencies between subnational locations impact on the distribution of FDI inflows into a large and heterogeneous country China. Our results show that whilst peripheral cities tend to have a negative effect on FDI, this effect is positively moderated by proximity to core cities. The results highlight the importance of considering interactions between place and space when investigating locational issues in international business.     

An Analysis of Australian Final Year Accountancy Students' Ethical Attitudes

Ethical behaviour is a critical component of theaccountancy/auditing profession. This study examines ethicalattitudes of final year accountancy students in Australia.Students were surveyed as to whether they would accept a bribe todefraud a public institution (Taxation Office) or shareholders,cheat in an exam, and/or become whistleblowers in differingcircumstances. A high proportion of students appeared willing toaccept the bribe (25% Taxation Office and 20% shareholders). Thispercentage plummeted when the risk of being caught was introduced(9% Taxation Office and 6% shareholders). The difference betweenmale and female responses was significant. Males appeared fourtimes more likely than females to act unethically. 28% ofstudents appeared willing to cheat in an exam. Interestingly,the difference between male and female responses was lesssignificant. Again the risk of being caught drastically reducedthese figures (6%). Just greater than 50% of students appearedwilling to become whistleblowers for the frauds against theTaxation Office and shareholders, however, only 8% wouldwhistleblow on cheating in an examination. Finally theimplications for educators, attempting to provide effectiveethical education for trainee accountants/auditors, are considered.     

From conflict to crisis in collaborative NPD

While manufacturer–supplier co-development of projects can contribute shared knowledge and expertise, such commitment also presents managerial challenges, particularly where crisis threatens the entire project. This paper explores how crisis is manifested, amplified, handled, and its outcomes in two longitudinal case studies, one between a food manufacturer and its packaging supplier and another between a window manufacturer and its software supplier. The analysis, the first to focus on co-development crisis, results in a better understanding of crisis episodes and in propositions around the crisis management challenges in co-developing new product projects.     

Quick-service expenditure in Ireland: parametric vs. semiparametric analysis

The aim of this study is to identify the economic and socio-economic factors influencing Irish households' expenditure on quick-service meals, a particularly dynamic component of the foodservice industry, and to determine the extent to which these factors have changed over the course of the 1990s. Maximum likelihood estimation and semiparametric alternatives are considered with the conclusion that in this instance semiparametric techniques do not offer a viable alternative to maximum likelihood estimation of tobit models, even in the presence of heteroscedasticity and non-normality. The results revel that household income, place of residence, commuters and household size have significant and positive influences on quick-service expenditure. Older families, single households and married couples, together with homeowners, display reduced expenditure. The opportunity cost of time is positively related to quick-service expenditure, consistent with theory, while health knowledge has a negative impact on quick-service consumption.