Changes in accounting estimates: An update of priors or an earnings management strategy of “last resort”?

Evidence from prior research is mixed about whether accounting estimate changes are strategically motivated, on average, or whether they reflect new or updated information. To interpret this difference, we investigate, by category of material changes in accounting estimates, the association between estimate changes and subsequent restatements. We also explore the determinants of both income-increasing and income-decreasing estimate changes for different categories of estimate changes. We find that the motivations for and the determinants of estimate changes depend on the type of change and on whether the changes in estimates are income-increasing or income-decreasing. Overall, we conclude that when companies are motivated to bias earnings and they cannot do so by manipulating other within generally accepted accounting principles (GAAP) accruals, they sometimes resort to using estimate changes. Our more detailed investigation of estimate changes at the account level suggests a more nuanced view of the determinants of changes in accounting estimates. We develop a more complete model of the determinants of changes in accounting estimates than those used in this emerging literature, which should be of interest to accounting academics, regulators, audit practitioners and audit committee members.     

Keynes's Z function, heterogeneous output and marginal productivity

Keynes was adamant that the assumption of homogeneous outputand capital in macroeconomic theory is inadmissable. His aggregatesupply or Z function is a generalisation of Marshall's ordinarysupply function to take account of heterogeneous output, andis an essential element of the principle of effective demand.The ‘linear Z curve’ controversy can be attributedto Keynes's desire to demonstrate how his general monetary theoryof value and output encompasses the special case of Classicaltheory, including the marginal productivity theorem. The infamoussecond footnote on pages 55–6 of The General Theory canthereby be fully resolved.     

Logrolling Procedure for Multi-Issue Negotiation

In order to better deal with the complexity in multi-issue negotiation, a quantitative method which produces Pareto optimal solutions through jointly improving exchange of issues is proposed. The trade-off process is modelled using logrolling, in which loss in some issues is traded for gain in others, resulting in overall gain for all parties. This mutual gain approach is designed based on the integrative negotiation strategy. The objective of the logrolling method is in negotiation support by providing a structure and systematic analysis for ill-defined multi-issue negotiation problems. This study presents a formal representation of logrolling, the sequential logrolling procedure that is based on the exchange of two issues, and the general properties of the efficient frontier produced by logrolling under a linear preference assumption. The study also includes some discussion on implementation aspects of the logrolling method.     

Are Prices Higher for the Poor in New York City?

Despite earlier evidence to the contrary, recent inquiries appear to reach a consensus that the poor pay more for food. However, these studies utilize samples drawn on the basis of prior knowledge of unfair pricing strategies, proximity of volunteer surveyors, or selected by other non-random methods. This paper revisits the issue of price discrimination by analyzing price data collected using a stratified, random sample design to answer the question of whether prices are higher in poor, urban neighborhoods. Contrary to the recent literature, it is found that market prices in poor neighborhoods are not higher than those in more affluent areas.     

Attrition bias in the Capitalia panel

The Capitalia survey of manufacturing firms in Italy represents an important source of panel data on Italian firms. Panel attrition, however, represents a potential obstacle to such use of the sample. In this paper, sample entry and exit behaviour are studied, and a test for attrition bias is carried out in order to evaluate the potential for using panels constructed from the Capitalia survey. The analysis reveals the presence of distorting panel attrition effects in simple models of firm performance. In addition, the paper discusses both the implications of attrition bias for estimates and also briefly considers possible solutions. Finally, some suggestions are made as to how to reduce the impact of attrition bias through the provision of additional information on the nature of the attrition process available to the surveying institution at the moment of data collection.     

Impacts of recreational diving on hawksbill sea turtle (Eretmochelys imbricata) behaviour in a marine protected area

The hawksbill sea turtle (Eretmochelys imbricata) is a critically endangered species encountered by recreational divers in marine protected areas (MPAs) circumtropically. Few studies, however, have examined the impacts of recreational diving on hawksbill behaviours. In 2014, we collected turtle sightings surveys and dive logs from 14 dive operations, and conducted in-water observations of 61 juvenile hawksbill turtles in Roatán, Honduras, to determine if differences in dive site use and diver behaviours affected sea turtle behaviours in the Roatán Marine Park. Sightings distributions did not vary with diving pressure during an 82-day study period. We found the amount of time turtles spent eating, investigating and breathing decreased when approached by divers. Our results suggest diver interactions may negatively impact sea turtle behaviours, however it is unknown if recreational diving has a cumulative effect on turtles over time. We recommend that MPA managers should implement monitoring programmes that assess the impacts of tourism on natural resources. We have established monitoring of hawksbills as representatives of the marine habitat in an MPA, which has the potential to be heavily impacted by dive tourism, and provide recommendations for continued monitoring of the resource.     

Clio in the business school: Historical approaches in strategy,international business and entrepreneurship

On the back of recent and significant new debates on the use of history within business and management studies, we consider the perception of historians as being anti-theory and of having methodological shortcomings; and business and management scholars displaying insufficient attention to historical context and privileging of certain social science methods over others. These are explored through an examination of three subjects: strategy, international business and entrepreneurship. We propose a framework for advancing the use of history within business and management studies more generally through greater understanding of historical perspectives and methodologies.     

Heuristics and CAD modelling: an examination of student behaviour during problem solving episodes within CAD modelling activities

Design activities typically involve and culminate in the creation of models representative of new ideas and conceptions. The format is often dictated by the specific discipline, with ideas in design and technology education regularly being externalised through the use of computer aided design (CAD). This paper focusses on the realisation stage of a design process, specifically when conceptual ideas are being externalised through CAD. Acknowledging students as novices or quasi-experts with regards to their levels of technical expertise and recognising the limitations in the cognitive capacities of humans suggests merit in investigating problem solving strategies through the lens of heuristics. A comparative study was employed between two distinct CAD systems to examine students modelling behaviour. Considering the situational context of the problems encountered and the bounded rationality which the students are operating within, a number of insights are generated from the findings which are of importance from a pedagogical perspective within design and technology education.     

Taking worker productivity to a new level? Electronic Monitoring in homecare—the (re)production of unpaid labour

This article explores the use of Electronic Monitoring (EM) in homecare and its impact on the ratio of paid to unpaid working time. It argues that whilst Zero Hours Contracts (ZHCs) blur the distinction between paid and unpaid labour, the introduction of EM can formalise and regulate the demarcation between the two. In the context of local authority commissioning and constrained budgets, the combination of EM and ZHC's may excise so‐called ‘unproductive’ but available labour from homecare. In particular, the minute‐by‐minute commissioning of care that EM facilitates means the cost of homecare is anchored in the time that worker's spend in client's houses, squeezing out paid travel, time between visits, training and supervision. Paid working time is minimised whilst maximising the use of unpaid time with resulting intensification of care labour.