Corporate Social Responsibility and the Benefits of Employee Trust: A Cross-Disciplinary Perspective

Research on corporate social responsibility (CSR) has tended to focus on external stakeholders and outcomes, revealing little about internal effects that might also help explain CSR-firm performance linkages and the impact that corporate marketing strategies can have on internal stakeholders such as employees. The two studies (N = 1,116 and N = 2,422) presented in this article draw on theory from both corporate marketing and organizational behavior (OB) disciplines to test the general proposition that employee trust partially mediates the relationship between CSR and employee attitudinal and behavioral outcomes. Both studies provide evidence in support of these general relationships. Theoretical and practical implications of these findings are discussed in the context of CSR and corporate marketing research.     

Behavioral insurance and economic theory: A literature review

Decisions to purchase insurance should be a perfect place to see economic theory at work in general, and behavioral economics at work in particular. We have well‐developed theories of the demand for, and welfare evaluation of, insurance products. These theories extend relatively easily to the insights of behavioral economics. Unfortunately, the empirical literature has not maintained this tight connection. In fact, much of the empirical literature illustrates the dangers of the modern passion with agnostic economics: avoiding theory at all costs to focus on “what works.” We identify these dangers and the implications in the literature.     

The information content of annual earnings announcements and mandatory adoption of IFRS

This study examines whether the information content of earnings announcements – abnormal return volatility and abnormal trading volume – increases in countries following mandatory IFRS adoption, and conditions and mechanisms through which increases occur. Findings suggest information content increased in 16 countries that mandated adoption of IFRS relative to 11 that maintained domestic accounting standards, although the effect of mandatory IFRS adoption depends on the strength of legal enforcement in the adopting country. Utilizing a path analysis methodology, we find evidence of three mechanisms through which IFRS adoption increases information content: reducing reporting lag, increasing analyst following, and increasing foreign investment.     

Further Evidence on the Capital Structure of REITs

This study examines the determinants of real estate investment trust (REIT) capital structure decisions from 1990 to 2008. Using a broad sample of 2,409 firm‐year observations, we find that asset tangibility is positively related to leverage, whereas profitability and market‐to‐book ratios are negatively related. Additional evidence suggests that firm debt capacity varies systematically with the unique operating and financing mechanisms employed by REITs. These results are robust across both aggregate firm debt levels and marginal security issuance decisions. Finally, our results provide further insight into competing capital structure theories, generally supporting empirical predictions derived from the market timing and trade‐off theories, although failing to support pecking order theory predictions.     

Forging success: Soviet managers and accounting fraud, 1943–1962

Attempting to satisfy their political masters in a target-driven culture, Soviet managers had to optimize on many margins simultaneously. One of these was the margin of truthfulness. False accounting for the value of production was apparently widespread in some branches of the economy and at some periods of time. A feature of accounting fraud was that cases commonly involved the aggravating element of conspiracy. The paper provides new evidence on the nature and extent of accounting fraud; the scale and optimal size of conspiratorial networks; the authorities’ willingness to penalize it and the political and social factors that secured leniency; and inefficiency in the socialist market where managers competed for political credit.     

Remarks on Virtual World and Virtual Reality Experiments

In recent years there has been increased behavioral research in virtual reality and virtual worlds. While these experiments could offer substantial advantages to researchers, they might also pose risks. We begin by identifying key concepts in virtual experimental research. Then we review the critical virtual reality component of virtual worlds. Finally, we offer guidance in conducting virtual world research.     

Initiating events and independent protection layers

Layer of protection analysis (LOPA) is a semiquantitative tool for analyzing and assessing process risk. The tool has grown greatly in popularity and usefulness since the publication of the first CCPS/AIChE guidebook on the subject, Layer of Protection Analysis, Simplified Process Risk Assessment (LOPA). This article is a summary of a new CCPS guideline book that includes the following:

• Initiating events (IEs).
• Independent protection layers (IPLs).
• Criteria for identifying the value of each prospective IE and prospective IPL.
• Example IE and IPL data.

This book is a necessary reference for those applying the LOPA methodology. © 2009 American Institute of Chemical Engineers Process Saf Prog, 2009