A Multidimensional Analysis of Tax Practitioners' Ethical Judgments

This study investigates professional tax practitioners' ethical judgments and behavioral intentions in cases involving client pressure to adopt aggressive reporting positions, an issue that has been identified as the most difficult ethical/moral problem facing public accounting practitioners. The multidimensional ethics scale (MES) was used to measure the extent to which a hypothetical behavior was consistent with five ethical philosophies (moral equity, contractualism, utilitarianism, relativism, and egoism). Responses from a sample of 67 tax professionals supported the existence of all dimensions of the MES other than egoism. Regressions of ethical judgments and behavioral intentions on the MES dimensions indicate that ethical decision making is most heavily influenced by the moral equity dimension, followed by the contractualism dimension. In contrast, the utilitarianism and relativism dimensions were only related to ethical judgments and behavioral intentions in isolated instances.     

Examining Antecedents to Supply Chain Security Effectiveness: An Exploratory Study

In recent years there has been increasing emphasis on managing risk and security in supply chains. Despite this emphasis, there have been relatively few empirical studies dealing with this issue. In an attempt to partially address this lack of empirical research, the primary purpose of this study was to explore the relationship between security management practices and the perceived effectiveness of supply chain security. With a resource‐based view of the firm and supply chain integration as theoretical underpinnings, the study utilized survey data to test propositions derived from the security literature. Internal and external integration efforts, a nodal planning focus, and proactive motivations related to security measures were found to be positively related to security effectiveness. The article concludes with implications for security stakeholders including suggestions for future research.     

How do we make you look good? A social network study of upstream organizational impression management and the rhetorical construction of IPO firm images

We present an upstream model of impression management, focusing on how institutional actors may influence the rhetorical content of images IPO firms present to potential investors. Focusing on impression management to minimize poor and maximize good perceptions, we examined the risk, strategy, and governance images presented in prospectuses of 167 firms who issued an IPO between 1996 and 2000. Our results show that dependence on professional firms and IPO firm network prominence help shape the rhetorical construction of these images and suggest that impression management can be understood in terms of Goffman's team‐based effort to control a social interaction situation. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

Cluster-based industrialization in China: Financing and performance

China's rapid industrialization despite the lack of a well developed financial system seems to defy the conventional thinking on the role of finance in development. This paper tries to explain the puzzle from the clustering point of view. Based on firm-level data from two recent censuses, we find that within industrial clusters: finer division of labor lowers the capital barriers to entry; closer proximity makes the provision of trade credit among firms easier. With less reliance on external financing, more small firms emerge within clusters, leading to higher levels of export and total factor productivity thanks to the resultant more fierce competition.     

OASIS: An Integrative Toolkit for Developing Autonomous Applications in Decentralized Environments

Organization Activity Support and Information System (OASIS) is a computer-based information system that supports; the construction and deployment of business applications. It is aimed at supporting the following 4 major organizational needs: (a) using data processing, reasoning, and communication in an integrative manner; (b) allowing control over one's own applications; (c) tying together independently developed applications for organizational use; and (d) simplifying certain types of changes or evolution. OASIS accomplishes these needs by viewing organizations as consisting of autonomous units with the capability of interacting with each other and by the integrative use of blackboards and forms. This article describes the OASIS system, presents a small example of its abilities, and describes planned future research.     

Market's perception of deferred tax accruals

This study investigates the value relevance and incremental information content of deferred tax accruals reported under the ‘income statement method’ (AASB 1020 Accounting for Income Taxes) over the period 2001–2004. Our findings suggest that deferred tax accruals are viewed as assets and liabilities. We document a positive relation between recognized deferred tax assets and firm value using the levels model, while the results from the returns model suggest that deferred tax liabilities reflect future tax payments. The balance of unrecognized deferred tax assets provides a negative signal to the market about future profitability, particularly for companies from the materials and energy sectors and loss‐makers.     

CEO turnover, firm performance, and enterprise reform in China: Evidence from micro data

In this paper, we use unique data on China's listed firms from 1998 to 2002 to show that CEO turnover is significantly and inversely related to firm performance, although the magnitude of the relationship is modest. In addition, we find that this turnover-performance link is weaker for listed firms that are still controlled by the state and those that have a relatively weak non-state controlling shareholder. In contrast, the appointment of independent directors enhances the turnover-performance link. Moreover, the listing suspension mechanism, adopted by China's securities regulatory agency, appears to be effective in improving the turnover-performance tie. Finally, listed firms with CEOs holding additional positions among the controlling shareholders have a weaker turnover-performance link. Journal of Comparative Economics 34 (4) (2006) 796–817.     

A Comparison of Seasonal Adjustment Methods When Forecasting Intraday Volatility

In this article we compare volatility forecasts over a thirty‐minute horizon for the spot exchange rates of the Deutsche mark and the Japanese yen against the U.S. dollar. Explicitly modeling the intraday seasonal pattern improves the out‐of‐sample forecasting performance. We find that a seasonal estimated from the log of squared returns improves with the use of simple squared returns, and that the flexible Fourier form (FFF) is an efficient way of determining the seasonal. The two‐step approach that first estimates the seasonal using the FFF and then the parameters of the generalized autoregressive conditional heteroskedasticity (GARCH) model for the deseasonalized returns performs only marginally worse than the computationally expensive periodic GARCH model that includes the FFF.