Accounting Reforms in China: Cultural Constraints on Implementation and Development

There is considerable theory and evidence to suggest that culture is an important environmental variable influencing the development of accounting systems internationally. According to the Hofstede (1980) and Gray (1988) cultural models, China's accounting development and practice should be in the cluster that supports statutory control, uniform practices, a conservative measurement approach and secrecy in disclosure. A uniform and rigid system of financial reporting has been practised for decades in the People's Republic of China under the centrally controlled economy. The accounting reforms launched since the 1980s aim to establish a new framework for regulating financial reporting which is adaptable to China's recently emerged socialist market economy. The adoption of accounting standards in the later phases of the reforms marks a dramatic turning point in China's accounting history towards a more international Anglo-Saxon orientation in financial reporting. Based on an analysis of the authority for accounting systems, the accounting profession and accounting measurement and disclosure in China, it is argued that this development will be constrained by the influence of China's culture and its accounting subculture. While financial reporting will be governed by accounting standards, their development and enforcement will remain a governmental and legalistic function. Accountants will continue to rely heavily on detailed technical rules. This mixed orientation will constitute China's unique national identity in terms of its accounting and financial reporting system.     

An experimental analysis of the effects of automated mitigation procedures on investment and prices in wholesale electricity markets

In this paper we report the findings of an economic experiment that examines the effects of an automated mitigation procedure (AMP) on prices and capacity investment choices of suppliers in a wholesale electricity market. Specifically, we examine the effects of different market power incentives on markets with and without an AMP. While we find that the AMP does not affect overall investment in capacity, the most significant determinant of long-run prices is investment in new capacity. The AMP also does not reduce long-run prices relative to markets without an AMP. Furthermore, our participants successfully manipulated the AMP’s trigger price. The data and a sample copy of the instructions are available upon request. This article reflects the opinions of the authors and does not necessarily reflect the position of the Federal Energy Regulatory Commission or any individual Commissioner.     

Japanese FDI5 and the Transfer of Japanese Consumer Electronics Production to Malaysia

The purpose of this paper is to assess the impact of Japanese consumer electronics companies within Malaysia. Research between January and April 1994 revealed the interdependence of a production network not only in Malaysia but within the Asia-Pacific region as a whole, and serves to illustrate the integration of trade and investment in Malaysia's industrial development. While, undoubtedly, the surge of Japanese foreign direct investment (FDI) into Malaysia's electronics industry between 1986 and 1990 has had enormous positive effects upon infrastructure development and employment creation, the results of this study question whether Japanese FDI is now contributing to the much needed structural up-grading of this industry. Central to this discussion are the underlying strategies of Japanese multinational corporations (MNCs) which have relocated in Malaysia.     

‘Thinking and feeling’ products and ‘utilitarian and value-expressive’ appeals in contemporary TV advertising: A content analytic test of functional matching and the FCB model

Brand equity is now receiving significant attention, both as a result of changes to international accounting standards relating to intangible assets and as a result of the renewed focus on the impact of marketing communications on brand performance. This paper reports on an investigation of the perceptions of senior marketing and advertising agency personnel regarding (1) the importance of brand equity as a valuation and performance measurement tool and (2) whether financially based brand equity measures and marketing-oriented measures can be translated into a single composite measure of brand equity/value. The findings reported herein indicate that, although financially based brand equity valuations have been a low priority in the past, there is increasing interest in this area and in the evaluation of the long-term impact of promotional activity as part of a wider drive for marketing accountability.     

The Organization,Operation, and Outcomes of Actually Existing Markets: A Suggested Approach for Empirical Analysis

Public policies have become embedded with market‐based mechanisms to radically transform essential goods and services markets. This article proposes a framework for empirical analysis of these markets. Key theoretical propositions are distilled to 12 distinctive properties of markets. These properties foreshadow a set of questions to interrogate a market's structure, operation, participants, behaviors, rules, and price setting to generate a substantive, realistic picture of outcomes. This “analytical grid” of questions is applied to four Australian essential goods and services markets. The findings unequivocally demonstrate a very different picture of markets from that promulgated by mainstream neoclassical economics and public policies.     

Re-visiting Luang Prabang: transformations under the influence of world heritage designation

This article examines the influence of a growing global tourism industry on the World Heritage City of Luang Prabang, Laos and more specifically the role played by the built environment in the transformations that have followed in the wake of its designation as a World Heritage City in 1995. Paradoxically, as increasing numbers of tourists seek to experience the extraordinary milieu of Luang Prabang, the physical and cultural landscapes that undergird this milieu are increasingly transformed by the pressures of global tourism. Using observations of tourists and residents, photographic documentation and comparison to United Nations Educational Scientific and Cultural Organization (UNESCO) archival materials, we show that regulations intended to preserve the heritage of Luang Prabang, have valorized a particular aspect of the city's history while effectively erasing others. As a result, the built environment of the city has been transformed into a tourist landscape. Simultaneously, the intangible heritage, the everyday life and experience of local populations are undermined as the built environment is transformed into tourist-focused landscapes. This case study illustrates, and continued UNESCO concerns over development in Luang Prabang indicate, it is not enough to create a policy designed to protect the physical environment without simultaneously working to protect the embedded socio-cultural dimensions of heritage tourism destinations.     

Product Differentiation and Upstream-Downstream Relations

This paper examines the relationship between a differentiated downstream market and a specialized upstream market. We analyze three different types of vertical relation between the upstream and downstream sectors when the upstream market supplies specialized and complementary inputs to a downstream product-differentiated market. The first is the benchmark case of decentralized markets, the second is a network of alliances among upstream suppliers, and the third is partial vertical integration. We identify the perfect equilibrium for a symmetric model in each case and show that there is no simple relationship between the degree of connection between upstream and downstream firms and profitability. The key factor affecting prices and the relative profitability of the different market organizations is the degree of product differentiation among the downstream firms, because it affects the intensity of competition among upstream suppliers. We show that vertical foreclosure is not an equilibrium strategy.     

Age Discrimination: Converging Evidence from Four Australian Studies

Given that most Australian states have gone further than most U.S. states in their age discrimination legislation, it is of interest to research the types and extent of age discrimination in the recruitment and selection process in a jurisdiction that prohibits all discrimination based on age (not just against those 40 years or over). Four studies examining different parts of the process and the perspectives of different players in the system were conducted. Each study and each methodology detected converging evidence of ongoing age discrimination, from the language used in job advertisements to messages delivered by recruitment consultants to self-reports of employers to the experiences of job applicants.     

Generic Product Advertising, Spillovers, and Market Concentration

We examine the decision to advertise a homogenous good. We show that the likelihood of inefficiently low advertising rests heavily on how one models the mechanism by which advertising affects demand. Regardless of this mechanism, however, there is always a lower bound of concentration below which no advertising occurs even when welfare-enhancing. In such cases, mandatory programs will raise welfare if they induce entry, although producer surplus may decline. Our model also provides an explanation for the stylized fact that advertising intensity first rises and then falls as concentration increases.