Flexibility in cash-flow classification under IFRS: determinants and consequences

International Financial Reporting Standards (IFRS) allow managers flexibility in classifying interest paid, interest received, and dividends received within operating, investing, or financing activities within the statement of cash flows. In contrast, U.S. Generally Accepted Accounting Principles (GAAP) requires these items to be classified as operating cash flows (OCF). Studying IFRS-reporting firms in 13 European countries, we document firms’ cash-flow classification choices vary, with about 76, 60, and 57% of our sample classifying interest paid, interest received, and dividends received, respectively, in OCF. Reported OCF under IFRS tends to exceed what would be reported under U.S. GAAP. We find the main determinants of OCF-enhancing classification choices are capital market incentives and other firm characteristics, including greater likelihood of financial distress, higher leverage, and accessing equity markets more frequently. In analyzing the consequences of reporting flexibility, we find some evidence that the market’s assessment of the persistence of operating cash flows and accruals varies with the firm’s classification choices and the results of certain OCF prediction models are sensitive to classification choices.     

The last taboo?: surfacing and supporting Emotional Labour in HR work

The emotional challenges Human Resource Professionals (HRPs) face, and the work they do in managing emotion in day to day HR practice, have largely gone unacknowledged and unsupported and yet is arguably HR’s most value-added activity. Through in-depth interviews and diary study, we uncover the emotion handling aspect of HR work. Specifically we explore Emotional Labour (EL) which, despite its centrality to HR work, remains under-researched in the HR context. By asking our participants to recount and reflect on emotive interactions, we examine HRPs’ use of EL in their relational work; how they come to learn the emotion display rules of their role; the strategies they use to cope with such emotional demands and the factors that help/hinder this process. Our contribution is to ‘surface’ emotion in HR work and identify how organisations can prepare HRPs for, and support them in, their emotion handling efforts.     

A research and development decision model for pharmaceutical industry: case of China

This paper evaluates prospective technology areas, development strategies, and various innovation resources in China's pharmaceutical sector through the use of a hierarchical decision model. The results indicate that although domestic SMEs are the major preferred innovation alternative, it is followed closely by foreign MNCs. The sensitivity analysis indicates that the effectiveness of policy decisions are influenced by certain high technology areas. Recombinant therapeutic proteins, recombinant vaccines, and monoclonal antibody technologies are identified as the major areas that will influence the priority of innovation resources. The research crafts a research framework to formulate innovation strategies in dealing with the uncertainties of technology development and policy decisions in the biopharmaceutical industry.     

Regulatory science-Towards a sociological framework

The close relationship between scientific expertise and regulatory policy in certain controversial and public areas has prompted commentators to suggest the concept of ‘regulatory science’. However, definition is generally constrained either to the concerns of regulatory science or to its context. This paper proposes an approach to regulatory science which is both empirically-based and allows a more theoretical treatment of the new conditions of scientific and regulatory activity. A particular case-study of the British agrochemicals sector is presented in terms of a five-way analytical framework for regulatory science. The paper concludes by considering the wider relevance of regulatory science for future sociological and policy research.     

NGOS VS CIVIL SOCIETY: REFLECTIONS ON THE ILLIBERAL,THE ILLEGITIMATE AND THE UNACCOUNTABLE

This essay evaluates the nature of non‐governmental organisations and their relation to civil society, and examines appropriate criteria of legitimacy and accountability for NGOs. Unfortunately, many common understandings of NGOs embody fundamental confusions, and obscure the ways in which NGOs are inimical to individual liberty.     

Factors influencing strategic alliance outcomes in a manufacturing supply chain: Role of alliance motives,interdependence, asset specificity and relational capital

Integration of various theories is essential to completely understand and explain strategic alliances in a supply chain. The purpose of this paper is to develop a framework by integrating the features of transaction cost theory, resource-based theory, contingency theory, social exchange theory, and Kelley's personal relationship theory and test the framework through empirical research. The present study addresses the impact of strategic alliance motives, environment, asset specificity, perception of opportunistic behavior, interdependence between supply chain partners, and relational capital on strategic alliance outcomes. Besides, the study has also tested the role of relational capital as a central mediating construct. A sample of 2156 companies representing different industries in manufacturing in Malaysia was selected for the distribution of questionnaire. We tested the structural model using structural equation modeling (SEM). Based on the results, we conclude the following significant relationships: (1) strategic alliance motives and perception of opportunistic behavior on interdependence and relational capital, (2) interdependence on relational capital, (3) environment on strategic alliance motives, (4) relational capital on strategic alliance outcomes, and (4) the mediating role of relational capital. The current study adds significantly to the body of knowledge on strategic alliances and can help managers identify factors that influence the success of strategic alliances and provide a proper direction to develop robust and effective collaborative relationships between supply chain partners.