Italian Debate and Dialogue on Thorstein Veblen

A bstract . In the first quarter of the 20th century, Thorstein Veblen ranked with John Dewey, George H. Mead, and Charles Sanders Peirce among the topmost American original and creative thinkers. In Italy he was the subject of much debate and dialogue but the perception of his scholarly work evolved through several phases. He was seen first as a forerunner of Franklin Delano Roosevelt's New Deal. Then as a leading figure in institutional economics. Finally as a social scientist pioneering in the interdisciplinary approach to analysis and to the formulation of public policy , as well as an early Futurologist But his considerable influence in America contrasts with his lack of influence in Italy, probably because cultural differences hamper understanding.     

Moral ethics v. tax ethics: The case of transfer pricing among multinational corporations

In recent years there has been an increased awareness with regards to ethics in business. More specifically, the abundance of well-publicized examples of cheating, greed, and hypocrisy has created some alarm about the general state of personal ethics (Josephson, 1988). Recent examples include the Oliver North, Ivan Boesky, and Jimmy Swaggart cases. The tax practitioner probably has little direct concern for matters of misconduct and ethical improprieties as mentioned above. Adherence to a code of conduct appears to circumvent the ethical conflict typically found in the business environment. The tax practitioner's ultimate goal is tax minimization for clients. This goal has the blessings of the courts and the writers of tax law.The present day dynamic global economic system includes organizations which have extensive international activity. In an effort to enhance the performance of these organizations, there is typically decentralization of operations. When decentralization exists it is necessary to evaluate the decentralized units. Profit centers are commonly used for this purpose. With profit centers comes the need for transfer pricing between profit centers. The transfer price should be determined in some objective fashion. However, tax minimization often is the driving force in the transfer price decision.This paper examines the compatibility of tax minimization goals, following a code of professional conduct, with moral ethics, using the transfer pricing problem in a multinational environment. A case that presents a common scenario for international firms is used as a vehicle to discuss the underlying tax and ethical ramifications.Don R. Hansen is Professor of Accounting at Oklahoma State University, Stillwater, OK, USA.Rick L. Crosser is Associate Professor of Taxation and Coordinator of Graduate Programs at Weber State University, Ogden, UT, USA.Doug Laufer is Associate Professor and Willard Eccles Accounting Research Fellow at Weber State University, Ogden, UT, USA.     

Beyond the enterprise: trade union representation of freelances in the UK

Interest has grown in the methods that trade unions can use to organise and represent the substantial proportion of the workforce engaged in ‘contingent work’. This article examines trade union representation of self‐employed freelances in the UK. Empirical material is presented from case studies of the media and entertainment unions, with their long history of representing freelances, and more recently established unions representing freelance tour guides, interpreters and translators. The analysis indicates that there is a distinctive form of freelance unionism in the UK which is distinguished by its emphasis on organising and representing workers in the external labour market where they seek work and develop a mobile career. This orientation ‘beyond the enterprise’ distinguishes freelance unionism from the dominant form of unionism in Britain.     

Voluntary adoption of non-local GAAP in the European Union: A study of determinants and consequences

Abstract

This study examines the determinants and consequences of voluntary adoption of non-local accounting principles (non-local GAAP) by firms listed and domiciled in the European Union (EU). We restrict ourselves to the two predominant internationally accepted sets of accounting standards: International Accounting Standards (IAS) and United States generally accepted accounting principles (US GAAP). We have used various sources to identify EU firms that use non-local GAAP. We examine the 1999 annual reports of all these firms, because accounting standard choices in more recent years may be affected by the announcement of the proposal by the European Commission in February 2001 to mandate IAS usage from 2005 on. The maintained hypothesis is that firms that voluntarily adopt IAS or US GAAP expect to experience net benefits from adoption. The finding that 133 non-financial firms in the EU voluntarily used non-local GAAP in 1999 suggests that the majority of listed EU firms does not expect to benefit from non-local GAAP adoption. By studying the characteristics of non-local GAAP adopters this study provides insight into the determinants of non-local GAAP adoption. We find that firms voluntarily using non-local GAAP are more likely to be listed on a US exchange, the EASDAQ exchange in Brussels, and have more geographically dispersed operations. Furthermore, they are more likely to be domiciled in a country with lower quality financial reporting and where IAS is explicitly allowed as an alternative to local GAAP. We also study whether non-local GAAP adopters have lower levels of information asymmetry, a much cited benefit of using more transparent financial reporting, than non-adopters. We examine three proxies for information asymmetry: analyst following, cost of equity capital, and uncertainty among analysts and investors (forecast dispersion and stock return volatility). We document a positive effect of non-local GAAP adoption on analyst following, but fail to find evidence of a lower cost of capital for non-local GAAP adopters. Contrary to expectations, uncertainty among analysts and investors appears to be higher for firms using IAS or US GAAP than for firms using local GAAP. However, by comparing ‘early’ and ‘late’ adopters, we find some evidence that suggests that benefits take some time to fully materialise.     

SURVIVING JIT: CONTROL AND RESISTANCE IN A JAPANESE TRANSPLANT

This research considers the process of management control and workers' actions in a Japanese-owned consumer electronics plant sited in England. the data are drawn from a period of participant observation which enabled the author to explore, in detail, the style and extent of management control and worker behaviour, and the nature of workplace relations at the plant. the author found that the incorporation of just-in-time JIT) and total quality management (TQM) into clearly defined management objectives had allowed a more complete combination of the control of labour with management's economic goals than that apparent under piece rate systems of control. Worker resistance and 'misbehaviour' persist, but in ways which are increasingly fragmentary and marginal.     

On the Use and Abuse of Thorstein Veblen in Modern American Sociology, I: David Riesman's Reductionist Interpretation and Talcott Parsons' Pluralist Critique

A bstract . The analyses and applications of Thorstein Vehlen's social theory by David Riesman and Talcott Parsons are found to be deficient. Riesman's study of Veblen lacks viability because the reductionist methodology he uses psychologizes and sociologizes Veblen rather than examines the theoretical import of his work. Parsons is wrong in denying the originality of Veblen's work and in treating him as an eccentric Utopian. Thus the paradigmatic and ideological bias of both Riesman and Parsons preclude a proper understanding and use of such Veblenian concepts as status emulation and conflict.     

Evidence of sophisticated voting in a committee setting: theory and experiments

This article seeks to use laboratory experimental methods in order to investigate the extent to which decision makers employ sophisticated voting strategies. Using two experimental settings that provide very different incentives for sophisticated voting behavior, the analysis turns up little evidence that participants rely on perfect foresight when confronting lengthy voting agendas. However, these experimental results point toward members using a weaker version of sophistication when anticipating complex decision settings. The findings from this article suggest that decision makers employ only limited foresight when choosing among voting strategies.     

Solving coordination failure with “all-or-none” group-level incentives

Coordinating activity among members is an important problem faced by organizations. When firms, or units within firms, are stuck in bad equilibria, managers may turn to the temporary use of simple incentives—flat punishments or rewards—in an attempt to transition the firm or unit to a more efficient equilibrium. We investigate the use of incentives in the context of the “minimum-effort,” or “weak-link,” coordination game. We allow groups to reach the inefficient equilibrium and then implement temporary, flat, “all-or-none” incentives to encourage coordination on more efficient equilibria. We vary whether incentives are positive (rewards) or negative (penalties), whether they have substantial or nominal monetary value, and whether they are targeted to a specific outcome (the efficient equilibrium) or untargeted (apply to more than one outcome). Overall, incentives of all kinds are effective at improving coordination while they are in place, but there is little long-term persistent benefit of incentives—once incentives are removed, groups tend to return to the inefficient outcome. We find some differences between different kinds of incentives. Finally, we contrast our results to other recent work demonstrating greater long-term effectiveness of temporary incentives.      

Comparative cheap talk

When are comparative statements credible? We show that simple complementarity conditions ensure that an expert with private information about multiple issues can credibly rank the issues for a decision maker. By restricting the expert's ability to exaggerate, multidimensional cheap talk of this form permits communication when it would not be credible in a single dimension. The communication gains can be substantial with even a couple of dimensions, and the complete ranking is asymptotically equivalent to full revelation as the number of issues becomes large. Nevertheless, partial rankings are sometimes more credible and/or more profitable for the expert than the complete ranking. Comparative cheap talk is robust to asymmetries that are not too large. Consequently, for sufficiently many independent issues, there are always some issues sufficiently symmetric to permit comparative cheap talk.