AICPA rules of conduct and practitioner knowledge

Accountants practicing in all segments of accounting need to understand both the relevant ethical standards of accounting and the mechanisms for enforcing these ethical standards. Further, accountants need to have an understanding of how to apply these standards in practical situations [Loeb, 1992]. In 1988, the AICPA restructured the profession's Code of Conduct. The changes resulted in a code with a more positive orientation. Since the 1988 Code restructuring, the Federal Trade Commission determined that certain rules embodied in the Code interfered with competition in violation of the FTC Act. Although the AICPA was reluctant to modify the existing Code, AICPA-FTC negotiations resulted in numerous amendments. Because of these recent changes, CPAs may be experiencing difficulty in maintaining an accurate perception of what constitutes acceptable conduct according to the Code. Consequently, this study addresses one important question. Do CPAs exhibit a satisfactory level of code knowledge when presented with a variety of ethical conflict situations? The results of this study are not encouraging for the profession.     

Is Japanese management superior? Evidence from the performance of the USA targets in partial acquisitions

This paper examines the efficacy of Japanese management and corporate governance by comparing the long-term post-merger operating performance of the U.S. targets acquired by Japanese bidders compared to the performance of well-matched U.S. targets of U.S. bidders. Unlike prior studies that focus on short-term stock price reactions of target firms, it is possible to undertake this long-term analysis of performance by identifying targets that survive as independent entities because of partial acquisitions. The findings suggest that targets of Japanese bidders either perform no differently from targets of U.S. bidders, or possibly even underperform. Thus, the evidence does not support the oft-claimed superiority of Japanese management and corporate governance system.     

Building commitment in buyer-seller relationships: A tie strength perspective

The strength of inter firm buyer-seller ties is vital to understanding the formation of commitment. Drawing upon the tie strength sociology and embeddedness literature, this study conceptualizes four dimensions of tie strength and examines their effects on the buyer firm's commitment to the selling firm, as well as the impact of commitment on favorable buyer behavior. A survey of 119 buyer organizations reveals that three of the four identified properties of tie strength (reciprocal services, mutual confiding and emotional intensity) are positively related to buyer commitment to the selling organization. Interestingly, the strongest relationship was found between emotional intensity and commitment — an understudied dimension of buyer-seller relationships. This study contributes to the B2B relationship marketing literature by increasing our understanding of the differential effects of behavioral and emotional aspects of ties on commitment. The study suggests to managers in manufacturing firms to develop strong behavioral and emotional ties with buyer firms in their relationship marketing strategy.