Internal control system,earnings quality,and the dynamics of financial reporting

Using an earnings management model in which managers manipulate information when the firm’s control system fails, I introduce a measure of earnings quality, based on the notion of integral precision, that has solid theoretical foundations. A trade‐off between the frequency and the magnitude of overstatements is shown: overstatements are larger when misreporting is less likely. Overall, the model generates a distribution of earnings announcements similar to its empirical analogue and provides a structural method to identify the likelihood and magnitude of misreporting by exploiting information from the moments of the distribution of reported earnings.     

Unbundling tolls from contracts: a new road PPP model

Considerable evidence from different countries has revealed important shortcomings in most road public–private partnership (PPP) models. In this paper a new PPP model is presented that overcomes some of the problems found in PPP road contracts. The new model is based on separating user tolls from the fees paid to PPP contractors and setting up new institutional arrangements to oversee PPPs.     

Developing an alert system for local governments in financial crisis

This article presents a new model which will show whether a local authority is heading for financial trouble. The model is simple for national audit bodies to use and provides an early warning of financial tensions allowing corrective action to be taken before there is a crisis.     

Job quality in the customer contact centre: conceptual foundation and scale development

To develop a comprehensive framework of dimensions of job quality in a customer contact centre (CCC), this study adopts the employee's perspective and proposes 12 dimensions. Previous studies suggest conceptualizations of the dimensions of job quality, but have failed to address the specific dimensions that need to be taken into account in a CCC setting. With its multiple dimensions, the proposed job quality scale achieves high internal validity, reliability and generalizability in the CCC setting. Yet the increasing role of such centres for service delivery makes them and their employees critical to customers' quality perceptions, and the findings of this study offer managers clear guidelines adjusted to the CCC environment.     

Private Label Development: The Large Food Retailer Faced with the Supplier's Opportunism

For the last 20 years, large food retailers have had an important place in fast-moving consumer good sales. This article describes their buying strategies, focusing on supplier selection in the case of private label contracts. It introduces the concept of opportunism to explain recent and probably irreversible developments in retail buying organisations, integrating a growing number of technologists and scientists. New businesses, with close relationships to industrial purchasing, have appeared in the retailing industry. In the end, they will require a new ‘species’ of managers, able to simultaneously monitor logistical, technical and commercial interfaces between large food retailers and their private label producers.     

Executives and Business Services: Key Factors of French Metropolitan Growth

France has experienced since the 1970s a huge change in employment trends concerning activity sectors but also location patterns. Research by the authors tends to show that the business service sector plays an effective driving role in these dynamics, particularly during the last decade. It seems that new geographical dynamics are now emerging: after a period characterised by an overwhelming tendency to concentrate on the Parisian pole, some diffusion shifts are appearing in favour of second rank metropolitan areas. Their attractiveness depends mainly on executives, particularly inside the business service sector. The variety of activities inside this sector, which was clearly playing the main role at the regional level, seems to be just a second rank variable when explaining the economic dynamism of the metropolis.     

Capital Structure of Portuguese Service Industries: A Panel Data Analysis

Using panel data for the period 1999–2003, this study shows that internal and external financing are not perfect substitutes, not corroborating the theorem of Modigliani and Miller. Portuguese service industries prefer internal to external financing, corroborating Pecking Order theory. The bigger the size of the company, the greater the level of debt, corroborating Trade-Off and Signalling theories. The negative relationship between the amount of fixed capital and debt corroborates Agency theory. The results allow us to conclude that debt contributes to improving management efficiency, agency problems between shareholders and creditors having little relevance.     

Private label brands: major perspective of two customer-based brand equity models

In recent years the retail industry has been characterized by the fast growth of private labels, with an increase of the offer of private labels and the enhancement of their value in the marketplace. This research focuses in private label brand equity to deepen the understanding of its origins, by analyzing two alternative customer-based conceptual models. The present study was developed in the large retailing industry, comprising different retailing formats that offer private labels to consumers. Our findings suggest a conceptual private label brand equity model, which is slightly different from the Aaker's brand equity model, considering store image as an antecedent and stressing its importance in building and enhancing private labels' brand equity. Additionally, retailers searching for successful ways to compete in the retail market need to examine in more detail the customer-based brand equity related to their private labels.     

Managing Ethically Cultural Diversity: Learning from Thomas Aquinas

Cultural diversity is an inescapable reality and a concern in many businesses where it can often raise ethical questions and dilemmas. This paper aims to offer suggestions to certain problems facing managers in dealing with cultural diversity through the inspiration of Thomas Aquinas. Although he may be perceived as a voice from the distant past, we can still find in his writings helpful and original ideas and criteria. He welcomes cultural differences as a part of the perfection of the universe. His systemic approach leads one to place the problem in its proper context, and to reflect on it from the perspective of virtue ethics, with a central role for practical wisdom and giving primacy to neighborly love and natural moral law. Rather than a set of rigid standards with no consideration of diversity Aquinas focuses on the common human ground, which allows for the indispensable dialogue between different positions. When dealing with practical questions, the problem is one of finding the right balance between general principle and cultural specifics, tolerance, and dialogue, always guided by practical wisdom. In this way, Aquinas’ approach is neither rigid ethical universalism with no consideration for diversity nor moral relativism with no place for any transcultural and absolute morals.     

Measuring CSR Image: Three Studies to Develop and to Validate a Reliable Measurement Tool

Although research on the corporate social responsibility (CSR) dimension of corporate image has notably increased in recent years, the definition and measurement of the concept for academic purposes still concern researchers. In this article, literature regarding the measurement of CSR image from a customer viewpoint is revised and areas of improvement are identified. A multistage method is implemented to develop and to validate a reliable scale based on stakeholder theory. Results demonstrate the reliability and validity of this new scale for measuring customer perceptions regarding the CSR performance of their service providers. With regard to this, CSR includes corporate responsibilities towards customers, shareholders, employees and society. The scale is consistent among diverse customer cohorts with different gender, age and level of education. Furthermore, results also confirm the applicability of this new scale to structural equation modelling.