The determinants of voluntary investment decisions

This paper analyses investments by firms into areas of corporate social responsibility, focussing on the decision by firms whether or not to invest in compliance with voluntary environmental standards. Theoretical predictions of the compliance decision are tested using discrete time survival analysis on a large dataset of UK manufacturing firms. The rate of voluntary compliance is found to have increased since the introduction of the International Standards Organization (ISO) scheme. Further, voluntary compliance is found to be negatively associated with rates of return and industry share, and positively associated with capital intensity and industry export intensity. In contrast to theoretical predictions on corporate social responsibility, there is no evidence that investment in intangible assets, either at the firm or the industry level, is positively associated with the compliance decision. Copyright © 2001 John Wiley & Sons, Ltd.     

The Effects of Fraud Risk and Management Representation on Auditors' Hypothesis Generation

Hypothesis generation is considered to be critical to the effectiveness and efficiency of diagnostic processes in auditing. Using a between-subjects experimental design, this work examines the impact of fraud risk and the availability of a non-misstatement management explanation on auditors' hypothesis generation performance. The context is when managers undertake analytical procedures at the planning stage of the audit. The results indicate that auditors are sensitive to increased fraud risk by generating more fraud hypotheses, while the number of misstatement hypotheses generated is not affected by fraud risk. The availability of a non-misstatement management explanation was found not to interfere with auditors' hypothesis generation performance, but facilitated the generation of proportionately more misstatement and fraud hypotheses from the same transaction cycle as that indicated by the management explanation. Together, these findings provide some insights on the sensitivity of auditors' hypothesis generation to fraud risk and whether this sensitivity could be undermined by the availability of management representations.     

Entrepreneurial Leadership of Social Enterprises: Challenges and Skills for Embracing Paradoxes

Social entrepreneurs seek to improve the world through revenue generating businesses. Their resulting social enterprises have much in common with commercial ventures. However, striving to fulfill a social mission is associated with goals, missions, and stakeholders that can be inconsistent with seeking profit, creating strategic paradoxes, and fostering distinct challenges for social entrepreneurs. The current articles aims to advance current understandings of entrepreneurial leadership by identifying unique challenges and necessary leadership skills for social entrepreneurs.     

The Labor Market for New Agricultural and Natural Resource Economics Ph.D.s

We describe the characteristics and labor market experiences of new agricultural and natural resource economics Ph.D.s. Women earned roughly 27% of the Ph.D.s earned during 1996–97 and 2001–02; 36% of the Ph.D.s awarded were earned by U.S. citizens. About half of the employed graduates found jobs in academe, with the remainder divided roughly equally among government, international or research organizations, business, industry, and consulting. The median salary of new Ph.D.s holding full-time jobs in the United States was $62,500 in 2002, up from $47,500 five years earlier.     

Attitudes Toward Economic Risk and Occupational Choice

This paper examines the effects of attitudes toward economic risk on occupational choice. Workers with a more favourable disposition toward economic risk have a higher probability of being employed in the more prestigious, high‐paying Professional and Administrative occupations. Potential biases associated with omitted genetic and family background factors are considered. The marked differential in attitudes toward economic risk between males and females, however, makes only a minor contribution to the considerable occupational segregation on the basis of gender in the contemporary Australian labor market.     

All in good fun: governing camp experiences through discourses of ‘good’ and ‘fun’

Summer camps have been conventionally associated with the positive development of individual character through the promotion of recreational ‘fun.’ However, popular narratives obscure more critical questions concerning the power-knowledge relations that have shaped the provision of summer camp fun as a significant site of child development in Canadian culture. In this article we examine how camp counsellors mobilise particular discourses about the benefits, or ‘good’, and ‘fun’ of camp to govern themselves and the campers that are in their care. We draw on Foucauldian notions of governmentality to problematise that which is often assumed as the ‘truth’ of camp experiences. We discuss how the ‘good’ of camp often draws on psy-discourses and those of entrepreneurial selves to improve or add value to campers’ lives. Additionally, ‘fun’ discourses and practices can work to produce manageable and docile campers. We conclude the article by identifying the implications of the research for developing a critical approach to the management of young staff who work to provide a broad range of recreational experiences where benefits and fun are promised.     

The Real Effects of Real Earnings Management: Evidence from Innovation

We examine the consequences of real earnings management from an innovation perspective and investigate the patent output of firms likely to be managing earnings through altering their R&D expenditures. We find that R&D cuts related to earnings management lead to fewer patents, less influential patent output, and lower innovative efficiency compared to other R&D cuts. Our results thus suggest that real earnings management may obstruct firms’ technological progress and highlight the potential costs of managerial manipulation of R&D expenditures to alter reported earnings.     

Can individuals’ beliefs help us understand nonadherence to malaria test results? Evidence from rural Kenya

In malaria‐endemic countries about a quarter of test‐negative individuals take antimalarials (artemisinin‐based combination therapies [ACTs]). ACT overuse depletes scarce resources for subsidies and contributes to parasite resistance. As part of an experiment in Kenya that provided subsidies for rapid diagnostic test and/or for ACTs conditionally on being positive, we studied the association between beliefs on malaria status (prior and posterior the intervention) and decisions to get tested and to purchase ACTs. We find that prior beliefs do not explain the decision of getting tested (conditional on the price) and nonadherence to a negative test. However, test‐negative individuals who purchase ACTs report higher posterior beliefs than those who do not, consistent with a framework in which the formers revise beliefs upward, while the latters do not change or revise downward. We also do not find evidence that prior beliefs on ACT effectiveness and trust in test results play any major role in explaining testing or treatment behavior. Further research is needed to improve adherence to malaria‐negative test results.     

Why East Germany did not become a new Mezzogiorno

Economic integration is generally thought to favour convergence in the economic performance of previously separated regions; but this is far from universally true, as the experience of the members of the Eurozone testifies. The paper considers the two sharply contrasting cases of East and West German convergence following reunification and the enduring poverty of the Italian Mezzogiorno since Italian unification a century and a half ago. In both countries, political integration delivers much higher consumption in the lagging relative to the leading region than of per capita GDP. Consumption convergence can be supported by transfers but ‘production’ convergence ultimately requires catch-up in the production of tradeables. The paper demonstrates the radically different performance of the tradeable sector in the two cases, and suggests that this may be the result of differences in labour market flexibility, in investment performance and in the social norms required for the production of complex manufacturing.