The Balanced Scorecard: what is the score? A rhetorical analysis of the Balanced Scorecard

The Balanced Scorecard currently receives much attention. This article analyses the means by which the authors of The Balanced Scorecard have created that attention. Is it the result of a new and convincing theory, or is it merely the result of persuasive rhetoric, where convincing theory differs from solely persuasive rhetoric in that concepts and claims are based on sound argumentation? The article concludes that the text is not so convincing as persuasive—a feature characteristic of the genre of management guru texts; and, at the end, the article discusses the reasons for and appropriateness of such a genre and the consequences that should follow from the results of the analysis.     

The future of Muslim politics : Critique of the ‘fundamentalist’ theory of the Islamic state

This article considers the future of Muslim political thought in the context of growing de-Islamization and the dominance of Western institutions. The ‘fundamentalist’ theory of the Islamic state—total mobilization of Muslim societies under a universal state—is criticized as religiously an immanentist heresy, and politically a totalitarian nightmare. Proposed here is a way out of the moral and intellectual crisis in Islamic political thought through the principle of Shura—meaning that Muslims must evolve their own form of representative government.     

The Winner''s Curse in Banking

Theoretical studies have noted that loan applicants rejected by one bank can apply at another bank, systematically worsening the pool of applicants faced by all banks. This study presents the first empirical evidence of this effect and explores some additional ramifications, including the role of common filters—such as commercially available credit scoring models—in mitigating this adverse selection; implications forde novobanks; implications for banks' incentives to comply with fair lending laws; and macroeconomic effects. The evidence supports the simple theory regarding loan loss rates but indicates a positive association between bank structure and income growth.Journal of Economic LiteratureClassification Numbers: G21, D80, L10.     

Services in the new industrial economy

‘Manufacturing matters’,¹ but ‘So do services’. The future of industrialization is the future of both these increasingly intertwined and interdependent activities. Rather than a post-industrial society, we are seeing a new mode of industrialization encompassing and integrating manufacturing and services. This article considers the prospects for services in the new industrial economy,² focusing on innovation in services. Services have frequently been considered to be relatively poor in economic performance. However, regarding services as laggards is decreasingly useful when considering contemporary services, many of which are the major users, carriers and promoters of many classes of innovative hardware. New services (such as software and telematics) are performing vital roles in the diffusion of new technologies, techniques and organizational styles. This article outlines some trends in the service economy, examines the special nature of services, considers how services are changing their products and processes, and assesses emerging strategies for organization and trade in services.     

Market Reactions to Corporate Restructurings

This article examines the stock price reactions to restructuring announcements by the DJIA 30 corporations over the period 1988–1995 by employing the event study methodology and cross-sectional regression analyses. Corporate restructurings, historically regarded as highly unusual accounting events, became increasingly common after 1987. One probable cause is the discretionary power managers enjoy due to the flexibility allowed by the Accounting Principles and Financial Accounting Standards Boards. Our general findings are that, contrary to contemporary press comments, restructurings, especially those impose a charge against the firm's earnings, are typically associated with negative excess returns. This evidence seems to be consistent with the notion that restructurings reveal unfavorable information of the firm's future performance. Furthermore, the larger the size of the restructuring amount announced in the Wall Street Journal, the more negative the stock price reaction is.     

Simplifying the complex : The paradigms of ecological function and structure

Ecosystem change has usefully been seen as controlled by two functions: exploitation, where rapid colonization of recently disturbed land is emphasized, and conservation where slow accumulation and storage of energy and material are emphasized. Analysis of a series of ecosystems—managed and unmanaged—indicates there are two additional functions. One is that of creative destruction where the tightly bound accumulation of biomass and nutrients is suddenly released by agents such as forest fires, insect pests, or intense grazing. The second function is one of renewal where released material is mobilized to become available for the next exploitive phase. That pattern is discontinuous and is dependent on the existence of multistable states. Resilience and recovery are emphasized during the release and renewal sequence, and stability and productivity during the exploitation and conservation sequence. Such studies of resilience are beginning to combine with hierarchy theory and with the theory of dissipative structures to deepen our understanding of change and how to manage change.     

India’s strategic future: 2025

Based on the geopolitical developments in India’s neighbouring countries and India’s response to them, this paper depicts four scenarios—Storms and Fires, Rainbow in the Sky, Light and Shadows and Across Space. Each scenario explores a set of possible events and the consequences triggered by it. While Storms and Fires is based on the rise of a sharp nationalist Indian sentiment in the face of heightened security tensions in the region, Across Space outlines the future of India’s worldview shaped by the present government’s policy of US primacy. Light and Shadows is based on differential policy towards neighbours—conflict with Pakistan and cooperation with other neighbours. This scenario is predicated on the supremacy of economic objectives whereas Rainbow in the Sky is based on the regional cooperation as the primary guiding force of the Indian foreign policy. Though major geopolitical events in its neighbourhood will impact the immediate future of India, India’s response and internal strengths and weaknesses will determine its long-term future. It is therefore essential for the country to develop a well considered trajectory of its strategic options for the next 25 years.     

Compliance Over Time by Australian Firms with IFRS Disclosure Requirements

Prior literature indicates that compliance with International Financial Reporting Standards (IFRS) is not complete in many countries. This study examines practice under the Australian version of IFRS by measuring compliance with the disclosure requirements of eight standards. The study focuses on data drawn from the consolidated financial statements of a sample of the top 200 Australian listed companies. To enable a time‐series analysis of compliance over time, this study examines three reporting years: 2006, 2010 and 2014. This research identifies material non‐compliance among Australian companies, finding that some disclosure items appear to be neglected by companies, such as some of the requirements of AASB 137 Provisions. This non‐compliance raises questions about accounting and audit quality in Australia. It may suggest poor regulatory oversight.     

Virtual geography

Geography and its study are changing in subtle and dramatic ways in the rapid transition to a digital world. Here we present a preliminary discussion of how this new geography, which we call ‘virtual geography’, might be classified. Virtual geography is not merely Cyberspace per se for it comprises many types of place and space in which the digital world finds expression. We define cspace—the space within computers, cyberspace—the use of computers to communicate, and cyberplace—the infrastructure of the digital world, as key components of what Castells¹ refers to as ‘real virtuality’. Virtual geography is all this as well as the study of these worlds from traditional geographic perspectives. Like all classifications, the interesting questions lie at the boundaries between classes—between espace and cyberspace, cyberspace and cyberplace, and between all of these. We illustrate this variety and complexity with examples.     

Financial Architecture and Economic Performance: International Evidence

The paper examines the relation between the architecture of an economy's financial system—its degree of market orientation—and economic performance in the real sector. I find that while market-based systems outperform bank-based systems among countries with developed financial sectors, bank-based systems fare better among countries with underdeveloped financial sectors. Countries dominated by small firms grow faster in bank-based systems and those dominated by larger firms in market-based systems. The findings suggest that recent trends in financial development policies that indiscriminately prescribe market-oriented financial-system architecture to emerging and transition economies might be misguided because suitable financial architecture, in and of itself, could be a source of value. Journal of Economic Literature Classification Numbers: G1, G21, O1, 04.     

Wall Street''s contribution to management accounting: the Stern Stewart EVAfinancial management system

EVA^®is a variant of residual income marketed byStern Stewart & Co., a New York consulting firm, with the purpose of promoting value–maximizing behaviour in corporate managers. This paper reviews the EVA system in the light of this purpose. First, it outlines the rationale for the use of residual income in ‘value-based management’, highlighting the potential shortcomings of residual income as a single-period performance indicator. Second, it considers the adjustments to GAAP-based accounting advocated by Stern Stewart in order to produce a more economically meaningful version of residual income (EVA) which might serve as an effective indicator of single-period performance. Third, it examines the Stern Stewart approach to the setting of EVA benchmarks. Finally, it reviews the logic behind the use of the ‘bonus bank’ to separate the award of EVA–based bonuses from the payment of such bonuses.     

UNESCO's Associated Universities Project (UAUP)

This article reports on a UNESCO project to create a network of associated universities offering an international education based on global and future-oriented subjects—the studium integrale.     

Financing the United Nations : Some possible solutions

This article suggests four basic propositions. First, financing is not an issue of UN policies or of UN management. Every member-state accepts an outright treaty obligation to pay its share of the organization's costs. The Charter gives no licence whatever to pay or not to pay one's dues according to whether one likes or dislikes some facet of UN work. Second, discussion of the financing of the UN should proceed from the Charter's principles of democratic revenue raising and governance, which plainly need reinforcement. Third, we should certainly explore additional sources, beyond the present triplicate framework of continuous dues assessment for regular budgets, ad hoc assessments for peacekeeping, and voluntary funding of development and humanitarian activities. But they should be additional sources—not devices to compensate for any state not paying its assessments. Fourth, UN financing is extremely vulnerable to disinformation and lack of information.     

Dilemmas for renewal of futures methodology

Using the so-called Transition Paradox for methodological renewal in futures studies, this article derives one paradox plus six dilemmas. The analysis concludes that methodological renewal should be embedded in the renewal of science. The power of new paradigms depends on how much they serve the long run welfare, stability and existence of the whole world population. Methods — and the breakthrough strategies of the East-Central European countries — are intended not only for outlining visions, but also for creating their technological, institutional and other foundations so that they do not remain merely utopias.     

The relationship between managerial ownership and firm performance in high R&D firms

Several studies have examined the relationship between managerial ownership and firm performance/value (e.g., [Journal of Financial Economics 20 (1988) 293; Journal of Financial Economics 27 (1990) 595; Journal of Corporate Finance 5 (1999) 79]). Using different samples, these studies provide general support for the argument that increases in managerial ownership create countervailing interest alignment and entrenchment effects, leading to a nonlinear relationship between managerial ownership and firm performance. However, the actual form of this nonlinear relationship differs across the studies.The present paper examines the relationship between managerial ownership and performance for high R&D firms that are listed on the NYSE, AMEX and NASDAQ. We find that Tobin's Q initially declines with managerial ownership, then increases, then declines again and, finally, increases again—a W-shaped relationship. The findings from our study point to the importance of industry effects in the relationship between managerial ownership and firm performance.     

Factor one: the next great war

This article is the first of four that will conclude the present series. One by one they will consider the principal factors that were responsible for creating the specific 19th century modes of writing about the future—the tales of the war-to-come, the organization of future societies, the certain triumph of man and mechanism, and the analysis of social trends and future possibilities. In this article I. F. Clarke looks at the ways in which the first industrial societies invented La Guerre qui vient, Der Zukunftskrieg, and The Next Great War—fictional devices dedicated wholly, solely and exclusively to showing the nation-states of the 19th century how the next war should, or should not, be fought.     

The most influential journals in academic accounting

In this article we summarize the findings of articles that have ranked academic accounting journals, as well as articles that provide other bases for considering journal quality. Results indicate that five journals—Accounting, Organizations and Society, Contemporary Accounting Research, Journal of Accounting and Economics, Journal of Accounting Research, and The Accounting Review—rank consistently as the top journals in the field. However, these five journals differ substantially as to the numbers of articles they publish overall as well as the proportions of articles that are related to the various specialty areas of accounting. Further, the relative proportions of articles by area do not correspond to the numbers of individuals working in the specialty areas. Financial accounting articles appear in disproportionately high numbers for all journals except Accounting, Organizations and Society, whereas management accounting articles appear in disproportionately low numbers for all journals except Accounting, Organizations and Society. In all journals, systems and tax articles also appear to be disproportionately low vis-à-vis the numbers of individuals working in these areas. Auditing receives fairly even exposure across journals and vis-à-vis individuals in the area, except in the Journal of Accounting and Economics.     

The Journal of Risk and Insurance: Authors of Influence

The purpose of our study is to identify the most influential authors who published in the Journal of Risk and Insurance (JRI) between 1989 and 2010 using citations as our primary indicator of author influence. Extant citation studies concerning the JRI are at the journal level rather than the author level or they examine citations appearing in JRI articles rather than citations to JRI articles. Our study examines articles published in the JRI from 1989 to 2010 and the citations to these articles from 1989 to 2014 reported in Thomson Reuters Web of Science (WOS). This approach is consistent with the method used by WOS to calculate journal impact factors. Our study presents a variety of author productivity measures based on JRI publication activity and citations to JRI articles. The top 50 authors are ranked and identified for each metric.     

A comparative analysis of the construct validity of coefficients in paramorphic models of accounting judgments: A replication and extension

This study adds to research which examines the construct validity of coefficients of cue importance in studies concerned with how decision-makers use accounting information in formulating judgments (see Larcker & Lessig, The Accounting Review, January, 1983, pp. 58–77; Selling & Shank, Accounting, Organizations and Society, 1989, pp. 65–77). Historically, accounting studies have modelled cue importance with almost exclusive reliance upon linear models. But as the Selling & Shank study indicates, inferring the importance of accounting cues through reliance upon only one kind of model can leave “method variance” undetected and raises threats to the construct validity of coefficients (see Cook & Campbell, Quasi-experimentation: Design and Analysis Issues for Field Settings, 1979, pp. 59–70). To the extent that cue importance appears similar across models, then the model coefficients are presumed more valid. While Selling & Shank compare linear models to process tracing models, we compare a linear model to an eigenvector-scaling routine known as the Analytic Hierarchy Process (see Saaty, The Analytic Hierarchy Process, 1980). As with Selling & Shank, we find that the importance of cues is sensitive to model choice, suggesting that more research is needed into method variance before judgments can be made with respect to the construct validity of linear coefficients in accounting studies.