Heterogeneous worker ability and team-based production: Evidence from major league baseball, 1920–2009

A detailed longitudinal dataset is assembled containing annual performance and biographical data for every player over the entire history of professional major league baseball. The data are then aggregated to the team level for the period 1920–2009 in order to test whether teams built on a more even distribution of observed talent perform better than those teams with a mixture of highly able and less able players. The dependent variable used in the regressions is the percentage of games a team wins each season. We find that conditioning on average player ability, dispersion of both batting and pitching talent displays an optimal degree of inequality, in that teams with too high or too low a spread in player ability perform worse than teams with a more balanced distribution of offensive and defensive talent. These findings have potentially important applications both inside and outside the sporting world.     

Using forecasted net benefits in designing improved recruitment and selection systems

This paper extends the post hoc application of utility formulae to designing improved recruitment and selection systems. It emphasizes interactive tradeoffs from spending to (I) increase the size of the applicant pool, and (2) increase the accuracy of applicant selection.First, the paper reviews the utility formula. Then it applies the formula towards improving the design of recruitment strategies. Next, the paper examines the dollar costs and benefits of different selection strategies. Finally, it examines the dual impact of recruitment and selection taken together. In short, while recruitment has been both under and overfunded in specific environments, selection has been uniformly underfunded, resulting in substantial opportunity costs to organizations.     

Personalities of accounting students and public accountants: Implications for accounting educators and the profession

This study compares personalities of senior accounting students with public accountants using a rigorous personality instrument, the 16PF. Comparisons are made between accountants and students, between accountants and students by gender, between male and female students, and between students and junior accountants. For all comparisons made, the findings indicate significant differences exist, both overall and for individual personality factors. Implications of these findings for accounting educators concerning curriculum emphasis, content, and counseling of students are discussed, together with possible implications for the profession.     

External auditors’ reliance on internal audit: the impact of sourcing arrangements and consulting activities

This study examines the impact of internal audit outsourcing and involvement in consulting on external auditors’ reliance on the work of internal audit. We test whether these factors influence reliance on internal audit work already undertaken and the use of internal auditors as assistants, distinguishing between control evaluation and substantive testing. Involvement in consulting impacts reliance on work undertaken and the use of internal auditors as assistants for control evaluation. External auditors make greater use of internal auditors as assistants for substantive testing when internal audit is provided in‐house. Overall, external auditors use internal audit more for control evaluation tasks.