Hazard avoidance,symbolic and practical: the case of Americans’ reported responses to Ebola

Reducing potential dangers by changing routine behavior to avoid certain people, places, or technologies can be prudent, but reporting avoidance also can be symbolic. This study probed Americans’ reactions to Ebola from December 2014 to May 2015 with a longitudinal study (final n = 625), plus a representative sample in May: How much did they claim to avoid West Africans, commercial flights, Ebola-associated cities, and four other targets? What factors affected self-reported avoidance? Did people with opportunities to implement avoidance report more (e.g. frequent flyers can change their routine behavior more to avoid commercial flights than can infrequent flyers)? The December 2014 survey found most people never considered avoidance, but substantial minorities claimed acting or intending to avoid each target; substantial majorities of May 2015 respondents reported avoidance intentions if a new Ebola outbreak occurred in Africa or the United States. Perceptions of personal risk, concern about infection, and following Ebola news were primary factors in reported avoidance, with temporal reversals (e.g. news following increased avoidance in December but decreased it in May). Opportunity enhanced reported avoidance in December 2014 by indirect effects through personal risk, concern, and news following, but decreased avoidance intentions in May 2015 through direct effects of opportunity on avoidance. Temporal shifts in avoidance reports and associations seem consistent with objective declines in Ebola cases, perhaps mediated by changes in news coverage. Further consideration of avoidance behavior and the role of opportunity could enhance hazard management.     

The effects of firm actions on customers’ responses to product recall crises: analyzing an automobile recall in China

In times of product-harm crises, the involved firms always employ some countermeasures, such as releasing messages relevant to their response actions. To evaluate the influence of these messages on the perceptions and behavioral responses of corporate customers relative to the recalls, we conducted a case study of the Volkswagen automobile recall in China in 2013. Guided by the protective action decision model, we developed a conceptual model to first study customers’ responses to the recall crisis. Based on this model, we further examined the influence of two types of firm actions, namely technical and ceremonial, on the customer crisis-coping process. Results show that product experience, risk perception, and information seeking significantly influence customers’ behavioral intentions during the product recall crisis. Customers in the technical action group exhibit a higher level of risk perception based on their product experience and have a higher likelihood of seeking information. However, information seeking fails to influence their behavioral intentions. Ceremonial actions overcome the disadvantages of technical actions, but customers’ lack of solution information should be met. In this sense, crisis-involved firms are encouraged to employ a combination strategy including the implementation of the two types of firm actions and then promptly release the messages containing both actions.     

Firms’ financial and real responses to credit supply shocks: Evidence from firm-bank relationships in Germany

We investigate the importance of firm-bank relationships for the international transmission of bank distress to the real economy. Using a large panel of matched financial statements of firms of all sizes and their relationship banks in Germany, we find that banks with losses from proprietary trading activities during the 2007/8 financial crisis decreased their lending, and that their firm customers responded by reducing real investment and employment. We document how different types of firms partially offset reduced credit supply by resorting to alternative financing sources.     

Structural Changes in China’s Import Market: A Comparison with Korea’s Exports to China

The article examines the structural changes of China’s import market for domestic demand and the corresponding structural changes of Korea’s exports to China for Chinese domestic demand. Using 8-digit HS code data covering the period 2006–2014 and analyzing the processing steps as well as by industry, this study reveals that while the share of ordinary trade in total China’s imports has increased rapidly, the share of processing trade has decreased continuously since the mid-2000s. The article also shows that Korea’s exports to China is still processing trade-oriented. The slowdown of Korea’s exports to China is because of the concentration on processing trade, intermediate goods, electronics and chemistry.     

Transforming teachers’ temporalities: Futures in an Australian classroom

There is much rhetoric in education about the ways in which students are prepared for ‘the future’. The notion of the future in Australian education is dominantly singular, vague and abstract. This paper describes research which investigates changes which occur within teacher practices, enacted curriculum and student learning. The case study at the centre of this research focuses on a primary school south-east of Melbourne, Australia, which is internationally acknowledged as ‘innovative and leading’ in ‘educating for the future’. Initially, it was apparent that this notion of the future was assumed, and these specific teachers had given little thought to what that future looked like, or how that related to students’ learning requirements. As a result of professional learning, the teachers underwent temporal transformation, in integrating explicit futures dimensions within their curriculum. Arising from this research were significant key findings which highlight the need for a reconceptualisation of the ways in which curriculum and pedagogy are enacted in regards to notions of multiple futures. Furthermore, it generates renewed calls for futures perspectives to be addressed explicitly within education. Importantly it highlights a deficit in current teacher thinking about their roles in ‘educating for the future’.     

A note on regulatory responses to COVID-19 pandemic: Balancing banks’ solvency and contribution to recovery

We discuss the implications on banks and the economy of prudential regulatory intervention to soften the treatment of non-performing exposures (NPEs) and ease bank capital buffers. We apply these easing measures on a sample of Globally Systemically Important Banks (G-SIBs) and show that these banks can play a constructive role in sustaining economic growth during the COVID-19 pandemic. In addition, an empirical analysis shows that prudential regulatory responses to COVID-19 along with high regulatory capital and low non-performing loans ratios are positively associated with economic growth. Thus, banks should maintain high capital ratios in the medium-term horizon to absorb future losses, as the effect of COVID-19 on the economy might take time to fully materialize.     

Accounting’s contribution to a conscious cultural evolution: an end to sustainable development

Influential institutions are acknowledging the need for more change to reverse practices that seriously damage social and ecological systems. The depth and extent of these changes are indicated by the call for a conscious cultural evolution. This paper considers a possible contribution from accounting to comply with such an evolution.A theoretical basis for accounting’s contribution to a conscious cultural evolution is outlined by means of a truth classification scheme developed in this paper as well as the works of Foucault, Giddens, evolutionary biologists and life-world theorists. This theoretical basis is then used to interpret the results of an EU funded research project that was to identify the criteria and specifications for a sustainable development management and accounting tool. The strengths and weaknesses of traditional, social and environmental accounting are evaluated against the needs of sustainable development as identified during the course of this project as well as a proposed balanced accounting. The theoretical basis identified in this paper is further employed to re-evaluate the concept of accounting equity in the context of equitable communities and face-to-face relationships. Finally, the potential resistance to changes of this kind that may exist within contemporary mainstream accounting is considered. The end of sustainable development is considered within the conclusion.     

Base independence in the analysis of tax policy effects: with an application to Norway 1992–2004

The analysis contrasts results of two recently expounded microlevel data approaches to derive robust intertemporal characterizations of redistributional effects of income tax schedules; the fixed-income procedure of Kasten et al. (Tax progressivity and Income Inequality, Cambridge University Press, 1994) and the transplant-and-compare method of Dardanoni and Lambert (J. Public Econ. 86:99–122, 2002). Our study is normative in that the Blackorby and Donaldson (Can. J. Econ. 17:683–694, 1984) index of tax progressivity is employed. This enables contributions from vertical redistribution and horizontal inequity also to be assessed, using for the latter one classical measure and one no reranking measure. When the competing methodologies are applied to Norwegian data for 1992–2004, their respective strengths and weaknesses are revealed. The transplant-and-compare procedure is found to have a number of advantages.      

The ‘public auditor’: an experiment in effective accountability

Mutual associations were created to provide, through a system of self-help, for the welfare of members of the British working class increasingly separated from the family unit characteristic of an agricultural-based economy. The appropriate method for protecting the resources required at some future date by the poorly off in conditions of need produced a challenge for Parliament. This paper examines the development of the concept of the ‘public auditor’ to describe the individuals considered suitable to undertake the audit of mutual associations, and the increasing statutory emphasis on the desirability of appointing a person ‘carrying on publicly the business of an accountant’ to certify the annual returns made to the Registrar of Friendly Societies. This paper argues that statutory recognition of the accountant as a member of a skilled occupational group represents an important stage in the professionalisation process. This paper shows that the concept of the public auditor was rejected by most mutual associations, while the larger organisations made the voluntary decision to appoint professional accountants to undertake the audit function.     

Non-cash compensation with production externalities and agency problems related to an agent’s consumption choice

This paper considers remuneration in terms of a good that helps improve or facilitate production in an agency paradigm. In the presence of this production externality, agency problems arise when the agent has an access to an external market for the good or has private, pre-contract information about the production environment. This paper characterises the optimal compensation packages in a variety of settings. The research findings explain various pay practices, such as payment in terms of reimbursement for a certain good and the selective payment of non-cash compensation.     

Value creation with Dye’s disclosure option: optimal risk-shielding with an upper tailed disclosure strategy

Dye [J Account Res 23 (1985) 123] showed that the optimal disclosure policy, when a manager is randomly endowed with perfect private information, is upper tailed, i.e., the manager only discloses firm value above an appropriate cutoff level. We interpret this strategically as an optimal exercise by management of the embedded formal option to report value. Given any disclosure cutoff level, we value the corresponding option using contingent claims analysis. It is shown that the Dye disclosure cutoff value maximizes the formal option value. We find it to be the minimum possible conditional valuation (conditioned by non-disclosure) which is thus consistent with the intuition that investors should value conservatively. We show how the Dye cutoff can be interpreted as a strike price in a ‘protective put’ which offers a shield against risk of disclosure of low value. The strategic analysis is further extended by allowing the probability level that the manager is informed to be a choice variable. We show that the manager will never choose to be perfectly endowed with information, and is likely to be more endowed than unendowed. We also present a simple worked example which shows how the total value of the firm changes once the Dye option is formally incorporated.

Making do: state constraints and local responses in California’s education finance system

California’s unique education finance system combines general state support for school districts, numerous state categorical aid programs, a restricted local property tax, and two unusual small local revenue sources: a parcel tax and contributions from educational foundations. This paper explores the incentives this system creates for local voters and school officials and estimates the impact of these incentives on education costs, school district efficiency, and the demand for student performance. The paper finds that voters in California respond to the price incentives in this system even though they work through the hard-to-pass parcel tax instead of the property tax; that educational outcomes are strongly influenced by student characteristics and other factors that influence educational costs; that school district efficiency is undermined by the state’s current emphasis on categorical instead of unrestricted aid; and that, overall, the education finance system is not well designed to meet the state’s educational objectives.     

Bank debt covenants and firms’ responses to FAS 150 liability recognition: evidence from trust preferred stock

We examine the relation between accounting-based debt contracts and the economic response of firms with trust preferred stock (TPS) to mandated liability recognition under Financial Accounting Standard (FAS) 150. Our results show that firms’ financial covenants significantly affect their choice to redeem versus reclassify their outstanding TPS. Specifically, firms with bank debt covenants that would be adversely impacted by recognizing TPS as a debt liability are 26.88% more likely to redeem their TPS after FAS 150. We also find that firms are significantly more likely to redeem versus reclassify their TPS after FAS 150 if they used the original TPS proceeds to retire existing debt (id est, to enhance their balance sheets). Our findings suggest that when bank debt contracts use “floating” Generally Accepted Accounting Principles (GAAP) to construct financial covenant terms, changes in the underlying GAAP measure significantly influence firms’ economic behavior.     

People’s responses to risks of electromagnetic fields and trust in government policy: the role of perceived risk,benefits and control

Trust in government policy affects the way people perceive and handle risks. In our study, we investigated the relationships between trust in government policy regarding electromagnetic fields (EMF), perceived risk and perceived benefits of public and personal EMF sources, perceived control over exposure to EMF and responses to the possible EMF health risk (e.g. protest against placement of mobile phone base stations or power lines, or taking own measures against EMF exposure). Previous research indicated that perceived risk and benefits mediate the relationship between trust and people’s risk responses. Additionally, we suggest that perceived control over EMF exposure affects the relation between trust in government policy and perceived risk, and, consequently, the risk responses. We performed a survey among the Dutch population (n?=?1009), which contained questions about risk responses to EMF, perceived risk and benefits of several EMF sources, trust in government policy and perceived control over EMF exposure. Comparing public EMF sources, i.e. power lines and mobile phone base stations, to personal EMF sources, i.e. microwave ovens and cordless and mobile phones, we tested our hypotheses. Variations in risk responses to both public and personal EMF sources were mainly explained by risk perception. In addition, perceived risk partially mediated the relationship between trust in government policy and risk responses. For public sources, perceived control over exposure weakened the negative relationship between trust and perceived risk. We conclude that, especially in people with low perceived control, a lack of trust in government policy may enhance perceptions of health risks, thereby increasing their inclination for risk responses.     

A longitudinal study of concern and judged risk: the case of Ebola in the United States, 2014–2015

The goal of the present study was to investigate whether playing a serious game concerning natural and man-made risks leads to increased risk awareness and additional information search. As an experimental task, we developed a serious board game. Fifty-six students participated in the experiment; half of them played the serious game whereas the other half only filled in a questionnaire at pretest and posttest (after two weeks). Participants who had played the game were more aware of risks in their own environment. Furthermore, playing the serious game counterbalanced the decline in self-efficacy as seen in the control condition. In both conditions, participants gathered more information on natural risks. This positive effect in the control condition is probably a side effect of the method used: a reasonably elaborate questionnaire in combination with a delay of two weeks. In all, the results provide a positive basis for further development of the game and to use it on a larger scale to empower citizens to take more responsibility for their own safety.     

An integrated academic literacy approach to improving students’ understanding of plagiarism in an accounting course

Plagiarism in higher education is a widespread and complex issue. Students' understanding of plagiarism differs as a result of combining their prior learning about referencing with their current experience of institutional policies and generic resources. Plagiarism was identified as a major learning issue in a core second-year undergraduate accounting course at an Australian university. The purpose of this field study was to implement and evaluate an educative, integrated, discipline-specific intervention designed to address this learning issue. In the study, the theoretical and practical components of understanding plagiarism are identified as conceptualisation and application. Evaluation of students’ questionnaire responses pre and post the implementation of the intervention showed an improvement in their understanding of plagiarism, both conceptually and in the application of their knowledge. Furthermore, students’ reflections evidenced that they perceived positive changes in their understanding of plagiarism post intervention.     

Higher education and stakeholders’ donations: successful civic crowdfunding in an Italian university

Can civic crowdfunding be used to improve the structures and services offered by public universities? Are stakeholders willing to make donations to such projects? This paper answers these questions by analysing a successful civic crowdfunding project in an Italian university. Stakeholders were found to be willing to engage in crowdfunding and make donations. The key to success is to ensure effective communication and to draw on feelings of belonging to the institution.     

Residents’ behavioural intentions to resist the nuclear power plants in the vicinity: an application of the protective action decision model

Nuclear power is growing rapidly in China. The ultimate goal of developing nuclear power is to mitigate the energy crisis, reduce greenhouse gas emissions, and ensure sustainable economic development. However, the ‘not-in-my-backyard’ (NIMBY) attitude may influence the implementation of nuclear power projects. This study explores the determinants of behavioural intentions to resist nuclear power plants (NPPs) based on the protective action decision model (PADM). A survey of the residents (N = 432) near the Haiyang NPP significantly validated the hypothesized relations. Results suggest that information acquisition and public participation can significantly predict perceived knowledge. Perceived knowledge is important in predicting perceived benefits, NIMBY attitude, and behavioural intentions. Moreover, two inverted-U relationships for perceived knowledge with the NIMBY attitude and with behavioural intentions are observed. Furthermore, the NIMBY attitude and behavioural intentions are significantly stimulated by perceived risks, but failed to be motivated by perceived benefits. An inverted-U relationship between perceived benefits and perceived risk is also indicated. The results that the NIMBY attitude and residential distance to NPP have played significant roles in predicting behavioural intentions are obtained. Implications of our results and areas of further researches are discussed in this article as well.