The Audit Opinion of Earnings Management in Listed Companies of China

The paper testes the relationship between audit opinions and financial sensitive zones and accounts on the basis of the data of A-share companies in China. The author finds that when ROE of listed companies is in the small-profit zone or in the large-loss zone, the probabilities that they get modified audit opinions increase. But the right-offering zone, accrual accounts and accounts below the line have no significant effects on the modified audit opinions. Besides, the author also finds that the ratio of accounts receivable to asset, debt ratio, previous year＇s audit opinion and change of CPA firms have significant positive effects on the modified audit opinions, while the ratio of major business revenue and size of companies have no notable effects. Some other factors such as cash ratio, age of the listing and CPA firm ranking have no consistent and continuous effects.     

The determinants of shareholders＇ wealth of acquiring firms in India

Corporate restructuring has become a major component in the financial and economic environment all over the world. Industrial restructuring has raised important issues for business decisions as well as for public policy formulation. Since 1991, Indian industries have been increasingly exposed to both domestic and international competition and competitiveness. The companies started restructuring there operations around their core business there M ＆ A. But M ＆ A is an area of potential good and harm in corporate strategy including manufacturing industry. Therefore, an attempt has been made to analyze the security returns and to find out the net wealth increase or decrease to the shareholders of acquiring firms. In India, there are totally 58 manufacturing companies which have undergone mergers and acquisitions during 2000, 2001 ＆ 2002. Thirty percentage from the total population was taken as sample size （i.e., 17 companies out of 58）. The present study is mainly based on secondary data. The Market Model and Market Adjusted Returns Model analysis are used as tools of analysis.     

The role of leaders in generating management innovation†

Abstract

This study provides an empirical insight into the level of management innovation in Australian service organisations, conceptualising management innovation using an integrative framework of management innovation which encompasses four dimensions, new managerial practices, processes, structures and techniques. In addition, the study contributes to the contingency-based literature by examining the role of leaders, in respect to both leadership style (initiating and consideration styles) and the use of controls (diagnostic and interactive use), as drivers of management innovation. Data were collected through a mail questionnaire distributed to 445 middle level managers. The findings show that leadership style influences management innovation with a more initiating style associated with the extent of use of new managerial techniques. Management innovation was also influenced by the use of controls with a more interactive (diagnostic) approach associated with the extent of use of new managerial processes and techniques (practices and structure). In line with the Competing Values Framework, the findings highlight the tension involved in the role of leaders in generating management innovation.     

The Role of Overbilling in Hospitals’ Earnings Management Decisions

Abstract

This paper examines the role of overbilling in hospitals’ earnings management choices. Overbilling by hospitals is a form of revenue manipulation that involves misclassifying a patient into a diagnosis-related group that yields higher reimbursement. As overbilling allows hospitals to increase revenues without altering operations, affecting costs, or having to reverse such behavior in the future, I propose and find that overbilling reduces hospitals’ use of managing accruals or cutting discretionary expenditures. Next, I find that hospital managers prefer overbilling to managing accruals (cutting discretionary expenditures) when cutting discretionary expenditures (managing accruals) is constrained, and vice versa. Collectively, my findings suggest that overbilling is an important alternative manipulation tool in hospitals.     

The role of the public sector in the provision of housing supply in Turkey, 1950–2009

This study examines the changing role of the public sector in Turkey with regard to housing provision since 1950, and particularly since 2000, and seeks to clarify how public intervention has affected housing provision and urban development dynamics in major cities. Three periods may be identified, with central government acting as a regulator in a first period characterized by a ‘housing boom’. During the second period, from 1980 to 2000, a new mass housing law spurred construction activity, although the main beneficiaries of the housing fund tended to be the middle classes. After 2000, contrary to emerging trends in both Northern and Southern European countries, the public sector in Turkey became actively involved in housing provision. During this process, new housing estates were created on greenfield sites on the outskirts of cities, instead of efforts being made to rehabilitate, restore or renew existing housing stock in the cities. Meanwhile, the concept of ‘urban regeneration’ has been opportunistically incorporated into the planning agenda of the public sector, and — under the pretext of regenerating squatter housing areas — existing residents have been moved out, while channels for community participation have been bypassed.     

The Productivity of Government Spending in Asia: 1983–2000

Leightner [The Changing Effectiveness of Key Policy Tools in Thailand. Institute of Southeast Asian Studies for East Asian Development Network, EAON Working Paper 19(2002)x0219-6417] develops a new analytical technique, named Reiterative Truncated Projected Least Squares (RTPLS), which produces 1/2 the error of OLS when omitted variables interact with the included independent variable. In this paper, RTPLS is applied to annual panel data on government spending and GDP from 1983 to 2000 for 23 developing Asian and Pacific countries. RTPLS produces estimates for the government spending multiplier for these countries and shows how omitted variables have affected these multipliers across countries and over time.JEL Classification: C13, E62, O23     

Who Speaks,and in What Voice? The Challenge of Engaging ‘The Public’ in Health Policy Decision-Making

Abstract

Despite widespread calls for greater public involvement in governance, especially in relation to health policy, significant challenges remain in identifying any such legitimate ‘public’ voice. This research investigates this problem through a case study. It examines how actors experienced and interpreted a government-commissioned citizen’s jury on health spending prioritization in relation to the work of the local health care consumers’ organization. The analysis highlights an unproductive tension around this encounter, and points to more complementary ways in which such top–down and bottom–up efforts might be coordinated. It, therefore, contributes significantly to efforts to strengthen the public voice in contemporary health governance.     

Property rights out of anarchy? The Demsetz hypothesis in a game of conflict

The Demsetz hypothesis states that secure claims to property arise when the value of creating those rights is sufficiently high. This paper examines the conditions under which this holds in an anarchy equilibrium in which players may allocate labor to production, to conflict, or to the public good of secure claims to property protection. In a simultaneous choice Nash equilibrium, no secure claims to property are created. However, if players play a sequential choice game in which secure claims to property protection occurs in the first stage, then the strategic benefit of reducing others’ subsequent conflict allocation causes secure claims to property to arise. Secure claims to property in a social contract are imperfect, but for sufficiently high productivity of resources, the social contract welfare dominates autocracy.     

On The Notion of Organic Holism in Aristotle＇s Poetics

The theories in Aristotle＇s Poetics are the earliest and the basis of western principal aesthetic notions. This article generally analyzed a very important aesthetic thinking of Aristotle in this work --the notion of organic holism. The significance of this notion to literary theories is also included.     

The role of Technological Business Incubators in supporting business innovation in China: a case of regional adaptability?

This paper examines the extent to which both the support services of Technological Business Incubators (TBIs) and exogenous local factors facilitate the innovation activity of incubated new ventures. Using data on all 215 surviving Chinese incubators and their incubated firms from government surveys conducted over five consecutive years from 2009 until 2013, combined with information from nine case studies, we examine the effects of four incubator services on three levels of innovation in incubated firms, whilst also taking account of key exogenous factors. Technical service support from an incubator was found to have had a positive influence on all levels of innovation activity across all regions whilst incubator financial support had a positive effect on the making of more advanced innovations. The availability of venture capital had a significant impact on making lower order innovations whereas the availability of scientific knowledge resources influenced more advanced innovation activity. Whereas TBI support services in the more developed Eastern region are mainly concerned with leveraging external resources, those in the less developed Central and Western regions are more concerned with compensating for the lack of external resources to support innovation.     

The Development of Accounting Regulation in Extractive Industries in Australia, South Africa and Canada

In view of the economic significance of extractive industries, the special accounting issues raised, and the numerous calls over many years for standardization, there has been less regulation of their accounting than as expected. The development of accounting regulations and practices in the extractive industries in 3 countries is reviewed, which are Australia, South Africa and Canada.     

The production of outstanding leadership — an analysis of leadership images in the Swedish media

In this paper the constructive and ideological aspects of (business) journalism provide the starting point for an exploration of the images of (outstanding) leadership (re)produced in the Swedish printed media. Using an ethnographic semantics method, articles in five major Swedish publications during two separate weeks were scanned, selected and analysed, resulting in 853 media statements about leadership subsumed under 60 leadership categories. These statements were further categorised and analysed, resulting in 12 underlying leadership themes that together suggest a dominant implicit model of leadership. The results were found to be consistent to some extent with central aspects of a “Swedish leadership style” as reported in previous studies, but they also gave rise to some interesting paradoxes. These paradoxes were partly resolved by introducing a distinction between leadership in a political as opposed to a business context. The analysis shows that institutional contexts seem to generate different implicit models of leadership, but within the same national framework. Excellent leadership is evidently exercised and enacted as an expression of socially constructed institutions and culturally grounded values.     

Commentary on “The meaning of ‘talent’ in the world of work”

This paper provides a commentary on the article in this Special Issue on “The meaning of ‘talent’ in the world of work”, welcoming its analysis of the definition, meaning and conceptualisation of talent and seeking to develop further its research recommendations. In particular, it argues that the relationships between talent and gifts should be further explored, proposes that exploring its use in other languages than English would be useful, and suggests comparing its identification and development in management and other fields, especially sport and the arts. It also proposes multidisciplinary research and research into talent and talent management in various contexts, including sectorial, cultural, institutional and structural contexts. Finally, it proposes that factors which influence how talent is identified need further analysis, and perspectives from resource-based theories, ethical theories, development economics, and social capital theories should be utilised.     

The effect of unethical behavior on trust in a buyer–supplier relationship: The mediating role of psychological contract violation

Research on trust in buyer–supplier relationships has tended to focus on the performance outcomes of a trusting relationship, as well as the processes that serve to build trust. Largely absent from the buyer–supplier literature is an in-depth examination of activities that break down trust, and the resulting effect on supplier trust in the buyer. The authors propose and test a model that evaluates psychological contract violations between a buyer and a supplier as a mediating variable of the effect of unethical activities on trust within a partnership. Survey data was collected from 110 tier one suppliers of major corporations in the state of Ohio. Our results show how a supplier's perception of a violation of the psychological contract either partially mediates or fully mediates the relationship between the buyers unethical activity and the suppliers trust in that buyer. We discuss how suppliers may demonstrate bounded ethicality when they overlook perceived unethical behaviors by the buyer.     

The dynamics of entrepreneurs’ networks in a transitioning economy: the case of Russia

Despite its theoretical and practical importance, the evolution and development of entrepreneurs’ networks has attracted a little attention of researchers. The emerging research literature on this topic found that the dynamics of entrepreneurial networks were contingent upon venture lifecycle, industry and region, and resource needs of the firm. In addition and contrast to the previous research, this article examines the effects of the initial network structure, and firm performance of previous years on the changes in entrepreneurs' network structure, relations, and resources over 4 years. The empirical data is composed of the face-to-face interviews with 75 Russian entrepreneurs in 1995, and the follow-up interviews with 56 original respondents in 1999. I found that the greater the initial network size, the less the increase in network size, strong and weak ties, and resources over time. Further, the findings indicate that revenue growth of previous years predicts the changes in networks in the reverse manner. Thus, I found that the greater the average revenue growth, the less the increase in network size, weak ties, and resources over time.     

Regulating Audit in Europe: The Case of the Implementation of the EU Eighth Directive in Denmark 1984–2006

This paper examines the extent of financial information disclosure on the Internet by the largest companies in the UK in 1998. Companies were surveyed to establish whether they had a website and if so whether financial information was available. We also investigated whether that information was in summary form or whether the full annual report was available. This study finds a statistically significant positive relationship between the size of a company and the use and extent of disclosure on the Internet. There was no significant association between industry type and disclosure.