Toward a More Phronetic Leisure Science

In this essay, we examine the assumptions underlying natural science, social science, and the humanities. More specifically, we suggest that social science in general and leisure science in particular be guided by a different set of assumptions than those guiding natural science and the humanities. Drawing on the Aristotelian idea of phronesis, we propose that value rationality more so than instrumental rationality guide social scientific inquiry, and that social science in general, and leisure science in particular, be viewed as a bridge between natural science and the humanities.     

Working the skies: Changing representations of gendered work in the airline industry, 1930–2011

The influence of the media, whether print, celluloid or contemporary electronic, on life and career choices, particularly from a gender perspective is well documented. Indeed, the power of today’s e-media imagery has, arguably, a more ubiquitous influence on such decisions than was in the case for previous generations. However, both traditional print and more contemporary media influencers remain important and, therefore, gaining an understanding of their role in the representation of gendered work, both historically and in a modern context, is of considerable value. Working in the sky, whether as a pilot or member of the cabin crew, continues to hold a fascination and attraction for potential entrants that far exceeds the technical demands or financial rewards of the reality of such work. Perceived as ‘glamorous’ work since the early days of commercial flight in the 1930s, this tag has largely remained, despite major changes to the business and workplace environment in the intervening years. Commercial aviation is an area of work that has inspired a genre of influential romantic literature and numerous ‘real-life’ recollections alongside serious academic analysis. This paper charts the representation of, in particular, female flight attendant work from its ‘golden era’ through to the present context where the influence of the low-cost airline model has radically impacted upon the working environment within the sector. The discussion focuses on the broad ‘genre’ of airline-related employment literature, drawing on romantic, comic and biographical accounts alongside sources that address this theme from academic/research perspectives, in order to ask whether contemporary representation is any more a true reflection of this work than that during previous generations. In undertaking this analysis, this paper draws upon the role and career representation literature, particularly with respect to embodied and gendered work.     

Information Leakage Prior to Company Issued Guidance

We find that information leakages prior to public guidance issued by company management exist even after Regulation Fair Disclosure (FD), and are more pronounced when characteristics of the firm, the guidance, or the industry reflect higher levels of information asymmetry. Since public guidance is only partially leaked, this information leakage can be used to anticipate the information content of the impending public guidance. We simulate a trading strategy based on the preguidance leakage in the period after Regulation FD, which suggests that information leakage is an effective signal of the information content within impending public guidance.     

“Non‐Financial” Is a Misnomer,but Doesn't Have to Be a Missed Opportunity

With enterprise values now representing increasing multiples of companies' net book assets, investors are clearly looking beyond financial reporting for enhanced insights and understanding of when and how companies are adding value. This shift includes growing attention to environmental, social, and governance (ESG) information. Although ESG data presents its own unique challenges, dismissing it as “non‐financial” can be misleading. When explicitly linked to a company's long‐term value creation strategy, ESG information can serve as a valuable input to more farsighted financial analysis. Market‐driven initiatives, notably that of the Sustainability Accounting Standards Board (SASB), aim to standardize a subset of business‐critical, industry‐specific sustainability data for investors. Research indicates such approaches can generate positive outcomes not only for providers of financial capital, but for their portfolio companies and markets in general. In illustrating these concepts, the authors explore ESG impacts in three sectors and industries, while examining how access to consistent, comparable, reliable sustainability information in those sectors can augment an analysis of traditional business fundamentals. One example focuses on water management in the Oil & Gas Exploration & Production industry, a major environmental issue where geographic considerations can shed light on company‐specific exposures to cost increases, production disruptions, increased CapEx and R&D spending, as well as the potential for asset write‐downs. In the Food & Beverage sector, health and nutrition concerns are shown to be changing consumer preferences, triggering regulatory action, and reshaping companies' product portfolios—with significant implications for the companies' brand values and ability to compete for market share. Finally, in Aerospace & Defense, lapses in business ethics such as bribery of government officials present a governance challenge that comes with the risk of value‐destroying fines and penalties and, even more significant, associated reductions in revenues.     

Editorial proximity equals publication success: A function of rational self-interest or good-faith economy?

This paper inquires into a recent finding that shows that proximity to the editor of a top accounting journal significantly increases one's chances of publishing in that journal. Three explanations are provided for this finding—two based on ‘rational self-interest’ and one on the ‘good-faith economy’. These explanations are further considered in light of interview data collected from individuals who worked in the same social space as these editors. While the first two of these explanations align themselves with the field's dominant methodological assumptions they alone do not fully describe actual practice in this field. Indeed, to the extent that this field's actors ignore or discount the third, good-faith explanation the field abrogates its scientific commitment to truth-seeking and objectivity, putting its faith instead in a naïve and potentially damaging vision of human behavior.     

Impact of Regulatory Enforcement on Leakages Prior to Analyst Recommendations

The financial press suggests that information is commonly leaked prior to analyst recommendations. We examine the impact that three regulatory actions (Regulation Fair Disclosure, Global Analysts Research Settlement, and the legal case against Galleon Group) have on information leakage prior to analyst recommendations. We find that all three regulatory actions have significantly reduced the leakage of information prior to analyst recommendations, even after controlling for several characteristics that explain the variation in information leakage. Our results are robust when applying an alternative method of measuring information leakage, and when forming various samples of analyst recommendations based on different criteria.     

Do specialized board committees impact the transparency of corporate political disclosure? Evidence from S&P 500 companies

This study examines how the specific attributes of one type of voluntary corporate governance mechanism, a specialized political contribution committee, improves the transparency of corporate political disclosure (CPD). The results demonstrate that the existence of a committee that establishes and reviews key political activities and disclosure policies, particularly one composed entirely of outside directors, significantly enhances the transparency of corporate political disclosure, and reveal that an under-studied board committee, the political contribution committee, effectively improves CPD transparency. The results are consistent with agency theory and further support the more generalizable idea that specialized governance mechanisms (e.g., a political contribution committee) and fully independent committees lead to more transparent disclosure. Finally, the results suggest that the existence of a political contribution committee and committee independence are channels to improve CPD transparency. Public-policy makers and regulators seeking to enhance CPD transparency might consider implementing regulations that mandate or recommend these governance mechanisms as best practice.     

Client Importance and Audit Quality at the Individual Audit Partner,Office, and Firm Levels

We investigate whether audit partner level data provides a more powerful measure than office or firm level measures of client importance. We find that the likelihood of issuing a going-concern opinion (any and first-time) increases, and the absolute value of discretionary accruals decreases, in relation to the proportion of audit fees to the total audit fees received by audit partners from all their clients. We also find that the likelihood of issuing a going-concern opinion (any and first-time) increases, and the absolute value of discretionary accruals decreases, in relation to the proportion of non-audit services fees from a client to total non-audit service fees, and the proportion of total audit and non-audit service fees from a client to total fees from all their clients at the office and firm levels. Our findings provide evidence to regulators, audit clients, and stakeholders that audit partners do not succumb to pressure from economically more important clients as audit quality has a positive association with client importance.     

Accounting and networks of corruption

This study examines the nature and role of accounting practices in a network of corruption in an influence-market setting. The study focuses on the Canadian government’s Sponsorship Program (1994–2003), a national unification scheme that saw approximately $50 million diverted into the bank accounts of political parties, program administrators, and their families, friends and business colleagues. Relying on the institutional sociology of Bourdieu, the study demonstrates the precise role of accounting practices in the organization of a corrupt network imbued with a specific telos and certain accounting tasks. The study illustrates how accounting is accomplished and by whom, and it shows how the ‘skillful use’ of accounting practices and social interactions around these practices together enable corruption. In so doing, the study builds on a growing body of work examining criminogenic networks and the contextual, collaborative and systemic uses of accounting in such networks.     

Bond Market Response to the Collapse of Prominent Investment Banks

We find that the Bear Stearns rescue in March 2008 elicited a neutral or moderately favorable impact on bond prices. Conversely, we find that the Lehman Brothers failure (combined with news about Merrill Lynch and American International Group) in September 2008 elicited a pronounced negative impact. Bond prices of financial firms suffered more than bonds of nonfinancial firms following the Lehman failure. Our multivariate analysis shows that bonds issued by financial institutions that were previously presumed to be protected (based on bond rating and firm size) suffered more pronounced losses in response to the Lehman failure.