Accounting for Expenditure on Intangibles

In search of a unifying measurement feature on which to base a more systematic and potentially comprehensive analysis of intangibles, this paper first analyses the economic and accounting properties of intangibles, and second, empirically evaluates managerial practices for measuring and analysing expenditure on intangibles. We present evidence from a survey of 614 large Australian firms that suggests gaps in the extent with which firms plan, monitor, record, analyse, and report on intangibles. Third, we evaluate the implications of our analysis and survey for accounting practice. Our evidence suggests GAAP has a role to provide guidance that helps firms identify and classify their expenditure on intangibles in ways that elucidate the strategic implications of the different types of intangibles for future output. A secondary step for accountants, after identifying and classifying the expenditure on intangibles, is to apply a capitalization test to distinguish expenses from assets. The current asymmetric treatment of expenditure on purchased versus internally generated intangibles is not supportable on economic grounds. However, economists identify weak property rights as a major cause of uncertainty associated with the outcomes from expenditure on intangibles, suggesting verifiable property rights is a unifying measurement feature on which to base a capitalization test for intangible assets.     

A Methodology for Profiling Consumers' Decision-Making Styles

Consumers use a variety of decision-making styles. This paper conceptualizes eight basic characteristics of these styles and develops a Consumer Styles Inventory to measure them empirically. Factor analysis of the Consumer Styles Inventory validates these eight consumer characteristics. A valid and reliable method for presenting a Profile of Consumer Style, based on measures of the eight style characteristics, is described. Unique findings of the research are discussed, and applications of the Consumer Styles Inventory in consumer education, consumer research, and family financial counseling are suggested.     

Bureaucrats and Babies: Government Regulation of the Supply of Genetic Material*

One might object to the sale of genetic material on the ground that it constitutes a trade in human beings. We argue that such exchange does not constitute a morally significant departure from current practice concerning the sale of other bodily property. Some utilitarians have argued that there is no justification for suppliers of genetic material receiving the competitive market-clearing price for their product. They maintain that utilitarian objectives would be better advanced by distributing genetic material through a government board. We contend that competitive market exchange of genetic material is preferable both because it does more to further individual liberty and because it is more efficient.     

The 1985 Ohio Thrift Crisis,the FSLIC's Solvency,and Rate Contagion for Retail CDs

This paper uses both an ARIMA transfer-function intervention model and a panel data analysis to examine the effect of the Ohio deposit insurance crisis in 1985 on the pricing of six-month retail certificates of deposit (CDs) for federally-insured Ohio banks and savings and loans. Adjusting for pricing reactions due to changes in market rates, we find a significant, unanticipated rise in CD-rate premiums on the initial event week of the crisis that continued for approximately seven weeks. Consistent with a contingent insurance guarantee hypothesis, rate premiums are found to be risk based.     

LABELLING CHARACTERISTICS AND DEMAND FOR RETAIL GROCERY PRODUCTS IN AUSTRALIA*

This paper examines whether labelling characteristics affect short‐run demand for manufactured foods in Australia. We estimate the effect of common labelling characteristics on demand using data from 92 brands in 12 product categories from major supermarket stores across Australia over the period 2002 to 2005. We find that certain characteristics – such as whether the product is made from recycled materials, certified as being Australian‐made, is a private label product, is health‐conscious or supports a charity – have a positive effect on demand. However, being an environmentally‐friendly good had a negative impact on demand as did products which offer the chance to win a prize and uncertified Australian‐made goods.     

The Distribution of Household Health Expenditures in Australia*

Out‐of‐pocket health expenditures in Australia are high in international comparisons and have been growing at a faster rate than most other health costs in recent years. This raises concerns about the extent to which out‐of‐pocket costs have constrained access to health services for low income households. Using data from the ABS Household Expenditure Survey 2003–2004, we model the relationships between health expenditure shares and equivalised total expenditure for categories of out‐of‐pocket health expenditures and analyse the extent of protection given by concession cards. To allow for flexibility in the relationship we adopt Yatchew's semi‐parametric estimation technique. This is the first detailed distributional analysis of household health expenditures in Australia. We find mixed evidence for the protection health concession cards give against high out‐of‐pocket health expenditures. Despite higher levels of subsidy, households with concession cards do not have lower out‐of‐pocket expenditures than non‐cardholder households except for the highest expenditure quintile. Cards provide most protection for GP out‐of‐pocket expenditures.     

Human Resource Structures: Reducing Discrimination or Raising Rights Awareness?

Using data from 84 hospitals linked to Equal Employment Opportunity Commission discrimination-charge data, we consider how four human resource (HR) structures affect hospitals' receipt of discrimination charges. HR structures that establish accountability (affirmative action plans, EEO units) are marginally related to charges. Structures that moderate bias (management diversity training) reduce the odds of receiving a charge while structures that raise employees' rights awareness (employee diversity training) increase the odds of receiving a charge. Structures relate differently to sexual harassment versus personnel charges.