Multivariate ‘analysis of dispersion’ in the presence of intra-class correlation

Summary Subsequent to a review of the effects of familial or intra-class correlation (=ϱ) on the univariateF, or analysis of variance tests, and of methods for obtaining confidence limits for ϱ, results are presented on the effects of familial correlations in tests in multivariate ‘analysis of dispersion’. Methods for obtaining confidence limits are given in the case where a common variance-covariance matrix may be assumed for the successive multivariate samples.     

Individual characteristics and the arousal of mixed emotions: consequences for the effectiveness of charity fundraising advertisements

• Charities that deal with emotionally upsetting issues (severe physical disfigurement, cruelty to animals, etc.) frequently include in their fundraising materials images and messages with the potential to cause substantial psychological distress to some members of the public. Often, the materials presented arouse mixed positive and negative emotions within viewers. This study examined the influences of a number of potential antecedents of the stimulation of mixed emotions among individuals confronted with highly emotional charity fundraising advertisements. The research sought to identify the type of person most likely to experience mixed emotions when observing an emotional charity advertisement, the specific kinds of emotion felt most deeply by individuals with various characteristics, and the consequences of mixed emotions for a person's attitude towards the advertisement and for the individual's behavioural intention vis‐à‐vis future donations. Three made‐up charity advertisements were presented to a sample of 771 respondents. A model was constructed to predict the participants' emotional reactions to the advertisements and was estimated, the results suggesting that mixed emotions represented an important determinant of both attitude towards the advertisement and the sample members' behavioural intention.

Copyright © 2014 John Wiley & Sons, Ltd.     

The Effect of Deadline Pressure on Pre‐Negotiation Positions: A Comparison of Auditors and Client Management

This study compares auditors' and chief financial officers' pre‐negotiation judgments and considers the potential differential impact the end of the audit (deadline pressure) has on each party. General negotiation literature suggests that individuals change their behaviors as deadline pressure increases (i.e., when there is less time in which to conduct a negotiation) in order to increase the probability of reaching an agreement. In an audit context, the end‐of‐engagement deadline is often based on regulatory filing deadlines (e.g., SEC filings for public companies), which are not determined by either negotiating party. The audit context is also unique in that there are asymmetric consequences for each party (the auditor and client management) for failing to reach an agreement and different negotiation tactics used by the two parties potentially leading to differing levels of concessions. We predict that auditors, who are in a stronger negotiation position, will generally concede less than client management when determining their pre‐negotiation position and will tend to use more contentious strategies. However, such contentious strategies require time. Thus, we expect, based on negotiation theory, that as deadline pressure increases, auditors' concessionary behavior will be more affected than that of client management. Consistent with expectations, results of our experiment suggest that CFOs concede more than auditors in general; however, auditors are more reactive to deadline pressure and increase concessions when faced with high deadline pressure, while CFOs do not. We also measure planned strategy use and find results to be consistent with theory: when deadline pressure is high, auditors are less likely to use contentious tactics, while CFOs' strategy choices are unaffected by deadline pressure. These results suggest that characteristics of the unique auditor–client negotiation environment, such as deadline pressures, have potentially differential effects on both parties due to the differing negotiation strategies employed by these parties.     

Ethnocentric tendencies amongst arts audiences

• According to empirical research, the most regular consumers of art are well-to-do, well-educated members of the social elite who, as a socio-demographic group, would not be expected to exhibit ethnocentric tendencies. Yet, curators of arts institutions and art critics have long been concerned that ethnocentrism does exist amongst visitors to museums and art galleries. This paper reports the findings of a study that investigated the ethnocentric tendencies of arts audiences in Hungary (where, allegedly, individuals are more inclined to exhibit ethnocentric bias) and England (where the opposite is said to be true). The research examined whether ethnocentrism significantly impacted upon perceptions of artworks from (i) a visitor's own country, (ii) a culturally similar and (iii) a culturally dissimilar country. Intentions to attend art exhibitions featuring artists from these countries were then explored. The empirical analysis confirmed that individuals who exhibited ethnocentric tendencies did in fact overvalue the quality of artworks from their home country. Moreover, ethnocentrism within the Hungarian (but not the English) sample had a significant impact on intentions to visit particular types of exhibition.

Copyright © 2006 John Wiley & Sons, Ltd.     

HARSH NORMS AND SCREENING FOR LOYALTY

Norms that restrict choice sets or impose otherwise harsh requirements would seem to act as barriers to group formation by raising the costs of adherence to potential and continuing members. Contrary to that intuition, one observes a broad range of group norms in the real world that impose large costs on group members. Iannaccone provides a rationale for harsh norms as a mechanism to reduce free‐riding in supplying a club good. This paper proposes a new rationalization for harsh group norms as a mechanism under which harsh norms serve to screen out disloyal members, providing what is essentially a technology for measuring loyalty in environments where group leaders cannot reliably measure group members' loyalty. The model demonstrates that loyalty can be signalled through acts that are seemingly irrelevant to the group's core objectives and identity.     

Transparent Practices: Primary and Secondary Data in Business Ethics Dissertations

We explore the availability and use of data (primary and secondary) in the field of business ethics research. Specifically, we examine an international sample of doctoral dissertations since 1998, categorizing research topics, data collection, and availability of data. Findings suggest that use of only primary data pervades the discipline, despite strong methodological reasons to augment business ethics research with secondary data.     

Policy Uncertainty about Australia's Carbon Price: Expert Survey Results and Implications for Investment

Australia's carbon‐pricing policy remains in doubt due to a lack of bipartisan political support. A survey of Australian‐based carbon‐pricing experts demonstrates profound policy uncertainty: 40 per cent of respondents expect the current carbon‐pricing mechanism to be repealed, but 80 per cent expect that there will be a carbon price in 2020. The forward price curve is U‐shaped and has great variance, with the 60 per cent confidence interval spanning from zero to A$25/t in 2020. Carbon policy uncertainty causes large excess costs in Australia's energy sector and may result in delay and diversion of investment.