Discussion of “Information Asymmetries about Measurement Quality”

This article discusses Glover and Levine (2019). It summarizes Glover and Levine's model, its contributions, and practical implications. It also suggests empirical extensions based on the predictions of the model.     

Managerial Ability and Credit Ratings

We test whether credit rating analysts consider managerial ability as a credit risk factor and find that higher‐ability managers obtain more favorable credit ratings. Controlling for past performance, these results suggest that managerial ability is itself a significant credit rating factor. Cross‐sectional analyses indicate that managerial ability is beneficial specifically in firms facing financial or competitive pressure. We find that high‐ability managers mitigate the adverse impact on ratings of other credit risk factors including negative earnings and low interest coverage. Our results contribute to a growing literature documenting economic benefits to hiring and retaining high‐quality management.     

A statistic for random model testing

Variance of relative frequencies is shown to be a useful statistic for testing for the random model in social science research. An illustration from the sociology of science is provided to document the utility of the measure.     

Semantic cues in reference price advertisements: The moderating role of cue concreteness

Retailers use a variety of semantic cues to advertise discounts at their stores. In this paper we introduce the concept of cue concreteness and examine its impact on effectiveness of semantic cues. Four studies were conducted which concur with the findings of earlier research in this area and expand our knowledge about the effectiveness of semantic cues. Results indicate that between-store cues are perceived to be more effective than within-store cues at moderate price discount levels only when the cues are concrete in nature. In addition, a between-store cue resulted in more favorable evaluations than a within-store cue when the ad was viewed at home, but only when the cue was concrete. Implications for marketers and public policy makers are discussed.     

Sustainability and business-to-business marketing: A framework and implications

Researchers in several business disciplines have convincingly argued that environmentally responsible strategies can contribute to competitive advantage and superior financial performance. While debates on ecological conservation and environmental practices within marketing have raged for over three decades, much of the focus has been on identifying and targeting the environmentally-conscious consumer. Less attention has been given to marketing's role in a green supply chain and its interface with environmentally-friendly manufacturing and operations. We integrate disparate streams of research and develop a broader framework to understand the appropriate role and focus of business-to-business marketing in the supply chain for achieving environmental sustainability objectives. We identify three major strategies - the reduction of surplus supply of products, reduction of reverse supply, and internal marketing - where marketing's role in environmental sustainability is crucial for achieving superior competitive advantage and financial performance.     

Influence of transnational economic alliances on the IFRS convergence decision in India—Institutional perspectives

This study contributes to the literature on global governance by highlighting the importance of not losing sight of the nation state as an important player in the transnational governance arena. Specifically, literature on global (accounting) regulation devotes a great deal of attention to the roles of organisations and agencies with transnational remit (such as global standard setters, donor agencies) while often downplaying the significant impacts of the more traditional cross- country links forged through economic relationships and resource dependencies between national and transnational institutional fields. This was specially noted in the case of the indirect influences of the US’s decision to delay IFRS convergence. While being interpreted as an indirect source of influence, such a decision played a very significant role on the convergence negotiations in India. The study shows how the US influence was channelled through Japan with which India has significant trade and economic relations and, most importantly, holds a joint forum specifically to discuss convergence issues. The consequences of India’s links with countries such as US and Japan in the decision-making process provide a vivid indication of the important roles of cross-governmental relationships in the global governance arena, and also question the position of transnational organisations as pervasive powers in such governance. The study’s findings clearly demonstrate that the pursuit of full IFRS convergence strongly favoured by the transnational forces was invariably challenged in the Indian context by the influences of powerful nation states advocating a more cautious approach.     

Progress billing method of accounting for long-term construction contracts

This article questions the reliability of the amount of revenue recognized in the percentage of completion （POC） method of revenue recognition in construction industry and recommends a new method based on the progress billing which is more reliable. The most commonly used method of revenue recognition in the construction industry is the percentage of completion method （POC）, where the revenue is recognized on the basis of the percentage of work completed. The calculation of percentage of work completed is made on the basis of the cost incurred for the contract work during the financial period and the cost required for completion of the work as estimated by the contractor. Here, the acceptance of the product by the buyer （contractee） is not involved in recognizing the revenue. The reliability of the amount of revenue and its collectability can be assured only when the buyer accepts the product. The approval of the progress bill by the contractee is needed to assure the reliability and collectability and it must be the event that triggers the recognition of revenue.