Some theoretical and methodological suggestions for studies examining accountants' professional judgments and earnings management

The objective of this paper is to provide theoretical and methodological suggestions to guide future research on the controversial topics of accountants' professional judgments and earnings management. Based on an evaluation of prior research, this paper provides four suggestions. First, it is suggested that a focus on the influence of personality variables is likely to provide sharper insights into judgments of individuals. Two relevant personality variables have been selected for this paper, namely, Construal of Self and Regulatory Focus Theory. Both Construal of Self and Regulatory Focus Theory have been, primarily in psychology literature, proven as valid and relevant for judgments, decisions and behavior. Second, prior literature conducted studies on earnings management and ethical issues to a large extent in the United States, often assuming that findings are generalizable and transferable to other countries. Given the importance of contextual factors and of gaining insights from global perspectives, the examination of nations with different contextual environments and particularly of countries in which ethical issues have not been rigorously examined, is suggested. Third, prior research has largely relied on simplistic unidimensional ethics measures that are unlikely to capture the complexity of accountants' professional judgments. It is suggested that a combination of a unidimensional measure and ‘Multidimensional Ethics Measure’ (MEM) provides richer insights into judgments. Fourth, this paper also suggests measuring “holier-than-thou” perception bias. “Holier-than-thou” perception bias means that individuals consider themselves as more ethical than their peers. This bias is important because it may foster an unethical organizational culture. Some of the suggestions included in this paper may provide useful guidance for future studies examining accountants' professional judgments and earnings management.     

From economic theory to leisure practice via empirics: the case of demand and price

Despite the relationship of price and demand being central to economic analysis, doubts have been expressed in leisure studies about the ability of economists to contribute meaningfully to price decisions in leisure, or even to an understanding of price-demand relationships in leisure. This article uses a review of relevant theoretical and empirical considerations and a recent empirical investigation to refute such assertions. It demonstrates how leisure managers might utilize appropriate management information and market research data to improve both their understanding of the price-demand relationship and consequent pricing decisions, with the help of economic analysis.     

Non-tariff and overall protection: evidence across countries and over time

This paper analyzes the evolution of the incidence and intensity of non-tariff measures (NTMs). It extends earlier work by measuring protection from NTMs over time from a newly available database and provides evidence on the evolution of NTMs. In particular, building on Kee et al. (Econ J 119(534):172–199, 2009), this paper estimates the ad valorem equivalents of NTMs for 97 countries at the product level over the period 1997–2015. We show that the incidence and the intensity of NTMs were both increasing over this period, with NTMs becoming an even more dominant source of trade protection. We are also able to investigate the evolution of overall protection derived jointly from tariffs and NTMs. The results show that the overall protection level, for most countries and products, has not decreased despite the fall in tariffs associated with multilateral, regional and bilateral trade agreements in recent decades. We also document an increase in overall trade protection during the recent 2008 financial crisis. Overall, this study sheds light on an under-researched aspect of trade liberalization: the proliferation and increase of NTMs.     

WORLDOUTLOOK

German monetary unification is expected to result in a major expansion in autonomous demand from East Germany. In economic terms this is equivalent to a fiscal shock to West Germany broadly similar to that experienced in the US in the early years of Mr. Reagan's Presidency. Led by the Bundes bank, the monetary authorities' response is again likely to be a tightening of policy, leading to several years of high real interest rates. Overall, the combined monetary-fiscal shock should strengthen growth with only moderate increases in inflation. Germany is expected to grow very rapidly in the -per cent range for several years, with only a slight upturn in inflation. Japan, after a pause over the next year, should be able to return to its under lying growth path fairly quickly. However the US situation is more precarious. FUN adjustment from the previous Reagan shock has not yet taken place, leaving the US vulnerably dependent on increasingly scarce imported capital. In the absence of a significant *peace dividend: the result is the necessity of continued tight policy and sluggish growth in the American economy. US growth stays around 2 per cent, but this allows a substantial reduction in the current account deficit.     

‘Fear of Missing Out’ (FOMO) marketing appeals: A conceptual model

The ‘Fear of Missing Out’ (‘FOMO’) is a well-known concept in popular culture. Consequently, it has been co-opted and successfully utilised in commercial advertising appeals to initiate sales. However, academic research to date has focussed exclusively on FOMO as an individual trait leading to self-initiated FOMO-driven behaviours. By contrast, the success of FOMO sales appeals relies upon consumers’ responses; therefore, it is necessary to understand these response mechanisms. This is the first known academic research to investigate consumer response mechanisms in relation to externally initiated FOMO appeals. In doing so, this research develops an original taxonomy of FOMO appeals; establishes a thematic map of response elements; identifies theory relevant to individuals’ responses; formulates an operational response model; and proposes a future FOMO research agenda.