The influence of domain knowledge and task complexity on tax professionals'' compliance recommendations

This study examined how procedural knowledge and outcome expectations interact with task complexity when tax professionals develop recommendations for clients. Practicing tax professionals participated in two experiments. Results suggest that outcome expectations about whether a position can be defended are positively associated with aggressive recommendations. As complexity increases, professionals with more procedural knowledge (a) favor less aggressive recommendations and (b) rely more heavily on their outcome expectations. These findings illustrate the importance of accounting for knowledge as a two-dimensional construct.     

Juridisch Germanisme

Hilversum, 1 Maart 1902Door omstandigheden is de opname van dit artikel onwillekeurig vertraagd.Red.     

INFORMATION GATHERING BY A PRINCIPAL*

In the standard principal–agent model, the information structure is fixed. In this article the principal can choose to acquire additional information about the state of the world before he contracts with an agent. In the event that the principal acquires this information, the agent never learns what the principal knows about the state of the world. I examine cases where the agent can and cannot observe whether the principal has acquired the additional information. The implications for risk sharing, information acquisition, investment, and welfare are examined for both cases.     

The happy story of small business financing

We examine two data sets, one from the UK (n = 15,750) and one from the US (n = 3239), to show that SME financial behaviour demonstrates substantial financial contentment, or ‘happiness’. We find fewer than 10% of the UK firms seek significant growth and only 1.32% of US firms list a shortage of capital other than working capital as a problem. Financial performance indicators (growth, return on assets, profit margin) were not found to be determinants of SME financing activities, as might be expected in a ‘rational’ risk–return environment. Younger and less educated SME owners more actively use external financing – even though more education reduces the fear of loan denial – while older and more educated (‘wiser’) SME owners are found to be being less likely to seek or use external financing. The contentment hypothesis for SME financing also extends to high-growth firms in that we show that they participate more in the loan markets than low-growth firms. By way of contrast to the finance gap hypothesis, the contentment hypothesis observes the importance of social networks (connections) [for finance] and confirms the ‘connections – happiness’ linkage in the literature on happiness while doubting the theoretical suitability of Jensen and Meckling [Jensen, M., Meckling, W., 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3, 305–360.] base-case analysis for SMEs.     

Ecological services to and from rangelands of the United States

The over 300 million ha of public and private rangelands in the United States are characterized by low and variable precipitation, nutrient-poor soils, and high spatial and temporal variability in plant production. This land type has provided a variety of goods and services, with the provisioning of food and fiber dominating through much of the 20th century. More recently, food production from a rangeland-based livestock industry is often pressured for a variety of reasons, including poor economic returns, increased regulations, an aging rural population, and increasingly diverse interests of land owners. A shift to other provisioning, regulating, cultural, and supporting services is occurring with important implications for carbon sequestration, biodiversity, and conservation incentives. There are numerous goods and services possible from rangelands that can supply societal demands such as clean water and a safe food supply. The use of ecologically-based principles of land management remains at the core of the ability of private land owners and public land managers to provide these existing and emerging services. We suggest that expectations need to be based on a thorough understanding of the diverse potentials of these lands and their inherent limits. A critical provisioning service to rangelands will be management practices that either maintain ecological functions or that restore functions to systems that have been substantially degraded over past decades. With proper incentives and economic benefits, rangelands, in the U.S. or globally, can be expected to provide these historical and more unique goods and services in a sustainable fashion, albeit in different proportions than in the past.     

The National Audit Office's Evaluation of RIAs: Reflections on the Pilot Year

In 2003, the National Audit Office undertook its first year of evaluations of the quality of a sample of Regulatory Impact Assessments (RIAs). This article reflects on the experiences of this pilot year. It sets out the background to the National Audit Office's work, describes the methodology adopted, and then explains the main findings. Finally, it considers the benefits and limitations of this type of ex-post evaluation of the quality of RIAs.     

Evaluating the human resource shared services model: evidence from the NHS

This paper examines the shared service model of organizing the human resource management function. It reports the results from a study of the introduction of human resource shared services (HRSS) in four NHS organizations. Findings suggest that the HRSS model has a number of advantages for organizations but that it has difficulty addressing the transformational HR agenda. In contrast, with the exception of a small cadre of staff, there is few advantages for HR employees themselves in HRSS systems. We suggest that the apparent neglect of the work experience of HR staff under HRSS models may significantly undermine the potential for its wider successful implementation.