Race and the development of career interest in accounting

Data from the AICPA (2009b) show that African–Americans comprise only 1% of CPAs and were only 4% of new hires by CPA firms in academic year 2007–2008. The current study uses social cognitive career theory to examine whether this shortage of diversity may be caused by differences between African–American and Caucasian students in factors that lead to career interest in accounting. Students were surveyed on two key personal variables: self-efficacy and outcome expectations. Results suggest that African–American students are more likely than Caucasian students to perceive accounting as providing outcomes that match their values. However, favorable perceptions may be countered by differences in self-efficacy. African–American students value outcomes provided by accounting, but they may have less confidence, compared to Caucasian students, that they can successfully complete the course of action necessary to enter the profession.     

Milton Friedman's monetary economics and the quantity-theory tradition

This article provides a selective review of Milton Friedman's contributions to monetary economics focusing on five areas in particular: the demand for money, the joint historical and empirical work with Anna J. Schwartz, the theoretical and empirical analyses of the Phillips Curve, monetary policy and monetary dynamics.     

Managerial Rationale for Entry and the Relation to Performance and Small-Business Lending

In a survey of banks founded from 1994–2002, we find over 85% of respondents think their small-business market was underserved, 72% felt the market needed more competition, almost half indicated they were likely to start a bank because takeover activity displaced them, and 75% entered due to a market merger. Markets of banks started by displaced managers or following a merger have performance and lending characteristics similar to comparable banks, but larger changes in asset growth rates. Managers who responded that small-businesses were underserved have higher numbers and amounts of small-business loans 3 years after entry. Managers responding that entry was due to mergers eliminating community banks have lower ROA, but larger changes in market ROA. Markets had smaller changes in ROA when entry was to provide competition or when managers thought the small business market was underserved.

The impact of cultural environment on entry-level auditors’ abilities to perform analytical procedures

We focus on the impact of three of Hofstede’s cultural dimensions, power distance, uncertainty avoidance, and individualism, on the results of analytical procedures conducted by entry-level auditors in Mexico and the U.S. Analytical procedures are ideal for this research as they require auditors to use professional judgment and appropriate levels of professional skepticism, abilities related to all three cultural characteristics. We find no other study investigating the impact of culture on the application of auditing procedures similar across the studied cultures.We find cultural characteristics do not affect the participants’ abilities to predict income statement balances, but they may influence the ability to predict changes in balance sheet accounts. We also find culture is associated with differences in risk assessments. Our results indicate that participants rarely differentiate accounts that change according to expectation from those that change contrary to expectation, but rather alter their risk assessments to match the direction of balances that increase or decrease.     

Common factors in international securitized real estate markets

This study investigates the presence of common factors in the securitized real estate markets of the Untied States (US), United Kingdom (UK), Hong Kong (HK), and Singapore (SG). Using a combination of factor analysis and canonical correlation analysis on 10-year monthly return data for 142 real estate securities in the four markets, more common risk factors among real estate securities within a country than across countries are detected. In addition, there is at least one common securitized real estate market factor that is moderately correlated with the world real estate market, and to a lesser extent, with the world stock market. However, the degree of linkage across the four securitized real estate markets is much weaker than the strong linkages present across the four economies. It further appears that the extent to which correlations are found in international securitized real estate markets might largely be due to the increasing integrated nature of the world real economy, rather than a result of the globalization of financial markets. The results are preliminary, but indicative, and suggest that more studies exploring how common factors, together with the local market portfolio, could help explain the return-generating process of securitized real estate.     

Educational Insights: A Hybrid Course in Risk Management and Insurance

Universities and colleges continue to face constraints related to classroom space and faculty time, thus increasing the need to consider options such as hybrid courses that can leverage available resources. This article discusses the benefits of a hybrid course, as well as its design and implementation at a large, public university. In addition, for universities that use the introduction to risk and insurance course as a significant course for attracting majors, we identify the benefits for students from the use of hybrid courses, such as the variety of materials and activities utilized, as well as the flexibility in scheduling. This information may be useful in marketing the course so that it will be immediately attractive to students.     

Cultural values in international advertising: An examination of familial norms and roles in Mexico

Past research suggests that the cultural value orientation, individualism-collectivism, should be considered when developing international advertising campaigns. The present study examines how (in)consistencies in collectivist values (e.g., familial norms and roles) may affect attitudes and behaviors toward advertised products within a collectivist culture, Mexico. The findings suggest advertisements that depict consistencies in local cultural norms and roles are viewed more favorably and purchase intention is higher than for advertisements that depict inconsistencies. The data provide no support for the moderating role of individual-level differences in value orientation (i.e., allocentric versus idiocentric tendencies) on persuasion measures. Interestingly, product category advertised appears to be the best moderator of the relative strength of role and norm effects on ad attitudes and purchase intention. © 1997 John Wiley & Sons, Inc.     

Environmental proactivism and firm performance: evidence from security analyst earnings forecasts

There is an ongoing debate over the impact of corporate pro-environment actions and strategies (reflected, for example, in pollution prevention and emission reductions, product re-design, materials stewardship) on corporate financial performance in US corporations today. A review of the existing literature in this area yields no consistent pattern of relationships between corporate environmental proactivism and financial performance when historical corporate accounting performance and stock market measures of performance are used. We revisit this relationship using a novel measure of firm performance: security analyst earnings forecasts. Specifically, we demonstrate a significant, negative relationship between environmental proactivism (using Toxic Release Inventory data) and industry analyst 1- and 5-year earnings-per-share performance forecasts for a sample of 523 US firms in 1992. We discuss the implications of these findings and provide suggestions for future research. © 1997 John Wiley & Sons, Ltd and ERP Environment.     

Embracing change: a leadership model for the learning organisation

Accelerating environmental change has allowed theorists and practitioners to envision an organisational entity known as the learning organisation. The phrase ‘learning organisation’ has existed in the literature for several decades. More than other writers, Senge has popularised the term in the 1990s. However, other writers have made significant contributions to this topic. Woolner, for example, developed a model that identified five distinct stages through which organisations progress on the way to becoming learning organisations. A needed link in the literature should portray a model of leadership and the stages of a learning organisation. The model proposed by this author utilises the three leadership behaviours of visioning, empowerment, and leading-learning, and is offered as a catalyst for improved practice as well as food for thought for researchers who aspire to build theoretical relationships between the topics.     

The Evaluation and Enhancement of Training Transfer

The transfer component of training evaluation was examined in a study conducted in 1996. ‘Transfer’ is the evidence that what was learned is actually being used on the job for which it was intended. The study, through a survey technique, examined what organisations are doing to evaluate the transfer of training (as described by the Kirkpatrick taxonomy of the four levels of training evaluation). In addition, training and support strategies which are judged to be the most effective in enhancing transfer were identified.