Accounting Insights from the Healthcare Sector

There has been a major debate on the merits of accrual accounting in the public sector in general. This paper is an implementation study of accrual accounting in local government. It examines this issue from an implementation perspective. The implementation perspective adopted draws on Matland's ambiguity–conflict model (1995). This research is informed by a combined methods approach: the analysis of public documents and debates; a survey of local authority capital accountants and case study information on management's perceptions of this accounting information. This research reveals a complex outcome of reformers' initiatives which has resulted in these accounting changes being retained within the accounting domain and having limited impact on wider potential users of this information.     

The simple analytics of tobacco taxation with illegal supply

This paper examines the impact of tobacco excise taxes where legal and illegal supplies coexist. The government's objective is to minimize cigarettes smoked in the economy (or to maximize revenue or to minimize illegal activity). It reacts to a competitive illegal supply in an adjoining jurisdiction. A model of consumer choice is used to demonstrate how demand response to tax changes can yield counterintuitive results. While the model mimics the Canadian market, similar situations characterize the US and European markets. A novel element of the paper is the treatment of externalities on the supply side rather than the demand side.     

Tipping

We investigate the trading of institutions immediately beforethe release of analysts’ initial buy recommendations.We document abnormally high institutional trading volume andbuying beginning five days before recommendations are publiclyreleased. Abnormal buying is related to initiation characteristicsthat would require knowledge of the content of the report—suchas the identity of the analyst and brokerage firm, and whetherthe recommendation is a strong buy. We confirm that institutionsbuying before the recommendation release earn abnormal profits.Our results are consistent with institutional traders receivingtips regarding the contents of forthcoming analysts’ reports.(JEL G14, G18, G24)     

Marketing fine art on the Internet: issues and ideas

The fine art market has grown into a $17bn industry. Yet only recently have art dealers and art buyers discovered the Internet as a viable marketing tool. As art galleries begin to move online, a fundamental question arises: are the major stakeholders willing to use this non‐traditional means to buy and sell art? This paper uses three independent studies, of artists, interior designers and organisational buyers, in North America, to analyse the characteristics of those inclined to use the Internet for this service and considers the magnitude of purchases through this medium. Study results indicate that: (1) artists are under‐represented on the Internet and disconcerted about technology issues; (2) targeting buyer segments, like interior designers, through the Internet is a viable and attractive alternative for fine art dealers; (3) organisational buyers often neglect Internet alternatives. Practical implications for those desiring to utilise the Internet to market fine art are discussed. Copyright © 2002 Henry Stewart Publications     

GOVERNMENT POLICY AND THE CHANGING MARKET IN RESIDENTIAL CARE FOR THE ELDERLY: A FINANCIAL ANALYSIS OF THE PRIVATE SECTOR

The market in residential care for the elderly is in a state of flux. Key factors are the increasing proportion of elderly (particularly the 85+ age group) and central governments new community care agenda. The mixed economy of public, private and voluntary residential provision will continue but community care policy changes will entail (a) the new role of case managers in the local authorities and (b) an anticipation that the private sector will play a more significant role than hitherto not only in meeting the demand for residential care but also in leading the way by diversifying into new types of care provision. These issues are addressed by (1) examining and commenting on government policy towards the care of the elderly and (2) examining, in detail, the profitability and financial viability of a random sample of private residential homes for the elderly. This financial analysis suggests that, at present, the ability of the private sector to innovate and expand into new forms of service provision is constrained by the number of homes which operate at the margins of viability. The implications of this are that (a) government policy may be founded on an optimistic view of the ability of private sector provision to respond as expected to the new community care agenda and (b) case managers in local authorities may have to exercise considerable financial expertise in identifying financial vulnerability, as well as social work skills, in the deployment of available funds for residential care for the elderly.     

The CAN-SPAM Act: New rules for sending commercial e-mail messages and implications for the sales force

The CAN-SPAM (Controlling the Assault of Non-Solicited Pornography And Marketing) Act significantly modifies the legal understanding of spam, offers important protections for consumers and, at the same time, holds the company primarily responsible for e-mail sent by salespeople on its behalf. This new law prohibits deceptive headings, using e-mail addresses obtained illegally, requires senders to have a working unsubscribe system, assesses liability, and criminalizes certain types of e-mail actions. Statutory damages are ascribed at up to US$2 million for violations, tripled to US$6 million for intentional violations with unlimited damages for fraud and abuse. Since commercial e-mail messages have become such a vital medium of communication for salespeople, it becomes imperative that sales strategies comply with and benefit from this new regulation. Therefore, this paper serves to clarify the implications of the CAN-SPAM Act for salespeople and sales managers. Specific managerial guidance on how the sales force can comply with this law is provided.     

Do Not‐For‐Profits Need Their Own Conceptual Framework?

This paper raises the issue of whether not‐for‐profit (NFP) oganisations require a conceptual framework that acknowledges their mission imperative and enables them to discharge their broader accountability. Relying on publicly available documentation and literature, it suggests the current Conceptual Frameworks for the for‐profit and public sectors are inadequate in meeting the accountability needs of NFPs. A NFP‐specific conceptual framework would allow the demonstration of broader NFP‐specific accountability and the formulation of NFP‐appropriate reporting practice, including the provision of financial and non‐financial reporting. The paper thus theoretically challenges existing financial reporting arrangements and invites debate on their future direction.