Reviews

Unemployment and social exclusion. Hills, J. 1999: SOCIAL EXCLUSION, INCOME DYNAMICS AND PUBLIC POLICY. Northern Ireland Economic Council, no price listed.

Turok, I. and Edge, N. 1999: THE JOBS GAP IN BRITAIN'S CITIES: EMPLOYMENT LOSS AND LABOUR MARKET CONSEQUENCES. The Policy Press and Joseph Rowntree Foundation, £13.95 paper.

GREEN, A. E. AND OWEN, D. 1998: WHERE ARE THE JOBLESS? CHANGING UNEMPLOYMENT AND NON-EMPLOYMENT IN CITIES AND REGIONS. The Policy Press and Joseph Rowntree Foundation, £11.95 paper.

Fifty years of planning. Cullingworth, B. (ed) 1999: BRITISH PLANNING: 50 YEARS OF URBAN AND REGIONAL POLICY. London: Athlone Press, £47.50 cased, £16.99 paper.

LETS in low income areas. Hudson, H., Newby, L., Hutchinson, N. and Harding, L. 1999: MAKING “LETS” WORK IN LOW INCOME AREAS. Forum for the Future. “Insights”: The Sustainable Economy Programme Publication Series, £10 paper.

Sustainable economic development. Newby, L. (ed) 1999: CASE STUDY OF SUSTAINABLE LOCAL ECONOMIC DEVELOPMENT. Forum for the Future, £40.00 set in a ring binder.

Ahrel, F., Schofield, S. and Newby, L. 1999: THE MISSING LINK? A STUDY OF THE INTEGRATION OF LOCAL AGENDA 21 AND ECONOMIC DEVELOPMENT IN NORTHERN LOCAL AUTHORITIES. Forum for the Future, £15.00 paper.

MacGillivary, A., Weston, C. and Unsworth, C. 1998: COMMUNITIES COUNT! A STEP BY STEP GUIDE TO COMMUNITY SUSTAINABILITY INDICATORS. New Economics Foundation, £15.00 paper.     

Mechanization and the spatial distribution of industries in the German Empire, 1875 to 1907

The adoption of water, steam, and electric power transformed manufacturing in the nineteenth century. This article studies the relationship between this technological change and the spatial distribution of manufacturing industries in the German Empire during the late nineteenth and early twentieth century. The adoption of steam powered machinery created incentives for manufacturers to form industry clusters near coal mining regions. Specifically, this article shows that a one standard deviation increase in the average size of steam power operations was associated with a rise in geographic concentration of one‐quarter of a standard deviation. In contrast, a one standard deviation increase in the size of water power operations was associated with a drop in geographic concentration of one‐sixth of a standard deviation. This is consistent with the constraint that water powered plants had to be located on a stream with a sufficient gradient and away from other water powered plants to avoid disruption from neighbouring gates and dams. Together the findings indicate that the transition from water to steam powered machinery contributed to the geographic concentration of manufacturing in the nineteenth century.     

State Foreclosure Laws and Mortgage Origination in the Subprime

Foreclosure procedures in some states are considerably swifter and less costly for lenders than in others. In light of the foreclosure crisis, an empirical understanding of the effect of foreclosure procedures on the mortgage market is critical. This study finds that lender-favorable foreclosure procedures are associated with more lending activity in the subprime market. The study uses hand-coded state foreclosure law variables to construct a numerical index measuring the favorability of state foreclosure laws to lenders. Mortgage origination data from state-border areas shows that lender-friendly foreclosure is associated with an increase in subprime originations, but has less effect on the prime market.     

Pirate Wireless: Revenue Recognition in the Telecommunications Industry

Pirate Wireless is a telecommunications company with stores and offices all over the globe. Jim Bayley is an extremely busy professional who enters into a contract with Pirate Wireless for the ultimate purchase of a smartphone with one‐year warranty, voice and data services, Cryptonite encryption software, and an extended warranty. The case requires students to act as Assistant Controller of Pirate Wireless Corporate and determine the appropriate revenue recognition for Pirate Wireless's contract with Jim Bayley. This mandates a thorough review of the five steps of revenue recognition set forth in Revenue from Contracts with Customers, the jointly converged standard issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) in May 2014. The FASB's Accounting Standards Codification 606 is effective for all U.S. public entities for fiscal years ending after December 15, 2017. The IASB's International Financial Reporting Standards (IFRS) 15 applies to an entity's first annual IFRS financial statements for a period beginning on or after January 1, 2018. This case is appropriate for an undergraduate or graduate level Intermediate Accounting course.     

Bad bosses and self-verification: The moderating role of core self-evaluations with trust in workplace management

Who responds most strongly to supervisor social undermining? Building on self-verification theory (Swann, 1983, 1987), we theorize that employees with positive views of the self (i.e., higher core self-evaluations [CSEs]) who also maintain higher trust in workplace management are more likely to experience heightened stress and turnover intentions when undermined. We argue that this subset of employees (high CSE, high trust) are more likely to feel misunderstood when undermined by their supervisor and that this lack of self-verification partially explains their stronger responses to supervisor undermining. We find initial support for the first part of our model in a study of 259 healthcare workers in the United States and replicate and extend our findings in the second study of 330 employees in the United Kingdom. Our results suggest that the employees Human Resources often wishes to attract and retain—employees with high CSE and high trust in workplace management—react most strongly to supervisor social undermining.     

Why do we feel bored with our clothing and where does it end up?

Boredom reflects the dynamic nature of consumer tastes and preferences. Understanding the role of boredom in clothing disposal is of particular importance given that consumers often dispose of clothes they feel bored with, leading to harmful environmental consequences. Despite its substantial influence on postacquisition behaviours, boredom has received insufficient attention in the disposal literature. In this paper, we explore the factors that lead to boredom and the effect of boredom on retention, recycling and discarding of clothing. We use a sequential mixed‐methods approach, consisting of a first qualitative phase that uses in‐depth interviews to generate hypotheses, followed by a second quantitative phase that tests the hypotheses using survey data. In two phases, we identify the oldness of clothing, decreased social fit and purchase of new clothing as drivers of boredom, which implies that the physical and aesthetic attributes of the clothing, social meaning ascribed to the clothing and situational factors collectively influence feelings of boredom towards owned clothing. As boredom intensifies, consumers are less inclined to keep the item and more inclined to recycle or discard it. Furthermore, we find that attachment and resource input (i.e., money, time and effort) moderate the effect of boredom on decisions regarding disposal methods. The results add to our understanding of emotion‐laden disposal by revealing the role of boredom in clothing disposal. Finally, our findings call for the collective efforts of consumers, retailers, campaigners and policymakers to break away from an increasingly extravagant and wasteful culture of clothing consumption.     

Revealing Corporate Financial Misreporting

This study examines how frequently firms restate when they materially misstate their financial statements using stock option backdating as the setting. Stock option backdating provides a unique opportunity to study this issue because it is possible to estimate misstatements with publicly available information to a high level of confidence, and the extensive media coverage of backdating notified boards of directors of the significant risk of misstatement. After identifying firms that materially misstated earnings due to stock option backdating with 95 percent (99 percent) probability, we find that only 11.5 percent (16.1 percent) of these firms subsequently restated. Restating firms are larger, have greater board independence, higher litigation risk and ROA, a lower market‐to‐book ratio, less discretionary accruals, and are more likely to have a CFO that was not involved in backdating. Restating firms are also more likely to disclose other adverse news, face securities litigation, and turn over the CFO than firms that appear to materially backdate but do not restate. Since nearly 9 of 10 firms failed to restate, our results give pause to researchers who use restatements as an indicator of misreporting, and to regulators who levy penalties on those who do self‐report.     

Intra-regional variation in land use and livelihood change during a forest transition in Costa Rica's dry North West

The work reported here examined intra-regional differences in land use and livelihood changes made by landholders during a forest transition in a dry region of North-West Costa Rica. It drew on the Sustainable Livelihoods Analysis framework to evaluate a qualitative, comparative study of landholders’ access to livelihood resources in two key landholder groups across five communities. Research findings show that while forest outcomes were similar across the two landholder groups and the five communities (net forest recovery), the livelihood dynamics leading to these outcomes varied. One important factor influencing this was small differences in the geographic location of the five communities, which shaped the effect of mediating institutions and policies on the accessibility and deployment of livelihood resources. The findings point to the importance of locally tailored interventions that reach beyond the field of forest conservation and management. These would include interventions to strengthen rural peoples’ access to resources needed to adapt livelihoods to changing socio-economic conditions. They would also include programs to reduce locally felt trade-offs between conservation and development. The findings also raise doubts that Costa Rica's payments for environmental services (PES) program, as it is currently structured, is an effective mechanisms for linking forest recovery and sustainable rural livelihoods in this particular region.     

The Effects of Vertical Pay Dispersion: Experimental Evidence in a Budget Setting

Vertical pay dispersion is the difference in pay across different hierarchical levels within an organization (Milkovich and Newman 1996 ). While vertical pay dispersion may be useful in attracting, retaining, and motivating highly skilled employees (Lazear and Rosen 1981 ; Lazear 1995 ; Prendergast 1999 ), our study investigates a potential disadvantage; specifically, the negative impact of perceived unfairness of vertical pay dispersion on employees' budgeting decisions. We predict and find that high vertical pay dispersion motivates subordinates to misreport costs to a greater extent than low vertical pay dispersion. Furthermore, we predict and find that superiors, on average, exercise more lenient cost controls when vertical pay dispersion is high rather than low. Supplemental analysis indicates superiors are more lenient on average because of their aversion to inequity caused by vertical pay dispersion. Our results suggest that high vertical pay dispersion can compromise the overall corporate budgeting environment, where higher levels of misreporting by subordinates goes unchecked by superiors.