Unethical and Fraudulent Financial Reporting: Applying the Theory of Planned Behavior

This research applies the theory of planned behavior to corporate managers’ decision making as it relates to fraudulent financial reporting. Specifically, we conducted two studies to examine the effects of attitude, subjective norm and perceived control on managers’ decisions to violate generally accepted accounting principles (GAAP) in order to meet an earnings target and receive an annual bonus. The results suggest that the theory of planned behavior predicts whether managers’ decisions are ethical or unethical. These findings are relevant to corporate leaders who seek to improve ethical work climates of organizations and to many regulators, accountants, corporate governance officials and investors.     

The transition from ‘socialist’ agriculture to the common agricultural policy: the case of Slovenia

This article describes the changes in Slovenian agricultural policy in the period 1993–2001 in light of Slovenia's anticipated accession to the European Union. Agriculture in Slovenia is characterised by relatively unfavourable natural and structural conditions, which also explains its status as a net food importer and its relatively protectionist agricultural policy. The period of transition was also a period of thorough restructuring of agricultural policy, which was gradually brought into line with the goals and mechanisms of the Common Agricultural Policy (CAP). Even before accession Slovenia started to implement CAP-like measures, including direct payments and rural development policy measures. Slovenia is thus the only candidate country for EU accession with a level of support for agriculture comparable with that in the European Union. In its negotiations for EU membership, Slovenia agreed on the same level of direct payments for Slovenian farmers as received by farmers in the European Union, except that in the first period they will be largely covered from the national budget. As a result of the outcome of negotiations, the economic position of Slovenian farmers after accession is not expected to change markedly on the aggregate level, particularly if all the necessary steps are taken with regard to the building of an efficient system for the transposition of the CAP. Accession to the EU will, however, not solve the problem of relatively poor compeititiveness of the agricultural sector in Slovenia, which still has to undergo comprehensive structural changes and adjustments.     

Outsourcing as a cooperative game between the CEO and labor: theory and evidence

Review of Quantitative Finance and Accounting - We develop a model of a cooperative power game between a chief executive officer (CEO) and labor over a proposed corporate outsourcing, and test the...     

Compulsory technology adoption and adaptation in education: A looming student privacy problem

Educational settings worldwide have a significant impact on the early use of digital devices and online media by children. Therefore, schools' educational technology (EdTech) adoption decisions may lead to long-term repercussions for students and society. The authors explore how schools make technology decisions on behalf of their students, focusing on the ways that privacy and data security are considered in technology adoption decisions and use. Adaptation-level theory helps to illustrate the growing dependence on technology in compulsory educational settings, the convenience of adopting digital tools, and the risks to children that result as they use and adapt to technology. Analysis of in-depth interviews and text analysis of public state reports indicate that confusion between information technology and EdTech consequentially leads to a “privacy-security chasm.” Findings highlight privacy-security challenges in K-12 school districts and the growing need to understand student privacy protection as part of children's digital well-being.     

Institutional investors and corporate environmental and financial performance

We propose a conceptual framework to illustrate that when three conditions hold, institutional investors moderate a positive relation between corporate financial performance and corporate environmental performance. We explore heterogeneities across institution types to demonstrate the importance of each condition. The moderating effect works through the channels of expert consulting and effective monitoring. Our results have important policy and practical implications given the global trend of ownership concentration in institutional investors and the projection that by 2025, one out of three dollars under professional management will be invested in corporate social responsibility assets.