The Impact of Cultural Differences on the Convergence of International Accounting Codes of Ethics

The International Federation of Accountants (IFAC) has issued a revised “Code of Ethics for Professional Accountants” (IFAC Code). The IFAC Code is intended to be a model code of ethics for national accounting organizations throughout the world. Prior research demonstrates that approximately 50% of IFAC member organizations have adopted the IFAC Code as their organizational code of conduct. There is therefore empirical evidence that international convergence of accounting ethical standards is occurring. We employ Hofstede’s (2008, http://www.geert-hofstede.com/hofstede_dimensions.php) cultural dimensions in an attempt to empirically explain accounting organizations’ decisions about whether to adopt the IFAC Code or to retain their organization-specific code. Our results indicate that accounting organizations in cultures with high levels of Individualism and Uncertainty Avoidance are less likely to adopt the model IFAC Code. Organizations in high Individualism and Uncertainty Avoidance societies are therefore less likely to surrender the setting of ethical standards to an outside, international organization.     

Evaluating an Agricultural Extension Program Aimed at Improving Biodiversity in Alberta,Canada

We evaluate an agricultural extension program aimed at increasing on‐farm biodiversity in Alberta. Using reports prepared for program participants by the extension agency, customized surveys were used to collect data on whether recommended practices were adopted. Data were also collected from producers who were willing but unable to participate in the program due to its unexpected cancellation. A count model compared the number of practices adopted by participants and nonparticipants to evaluate the program's efficacy, and a probit model using participants’ adoption data were used to understand factors affecting adoption. Simple, low‐cost, and easily trialed practices were adopted at high rates, though some higher cost practices associated with observable benefits were also adopted at moderate or high rates. Farm‐specific characteristics, such as size, tenure, or group membership were also significantly linked to the likelihood of adoption. Results suggest that the extension program was successful in encouraging adoption of environmentally beneficial practices with caveats; project completion and quality were not verified, and decreasing marginal returns to extension efforts may have been realized within the small participant pool. Nous évaluons un programme d'éducation permanente en agriculture visant l'augmentation de la biodiversité fermière en Alberta. Utilisant des rapports préparés par les agences d'éducation pour les participants de programmes, des sondages individualisés ont servi à la collecte de données concernant l'adoption de pratiques recommandées. Des données ont aussi été recueillies auprès de producteurs qui auraient voulu participer mais qui n'ont pas profité du programme suivant son annulation inattendue. Un modèle de comptage a servi à comparer le nombre de pratiques adoptées par les participants et non‐participants pour évaluer l'efficacité du programme, et un modèle probit basé sur les données d'adoption par les participants a servi à comprendre les facteurs ayant un impact sur l'adoption. Les pratiques simples, peu coûteuses et faciles à tester ont été hautement adoptées. Certaines pratiques à coûts plus élevés, associées à des avantages observables, ont aussi vu des taux moyens et élevés d'adoption. Les caractéristiques spécifiques aux exploitations agricoles comme la taille, la longévité et l'adhésion à un groupe se sont aussi trouvées liées de façon significative aux probabilités d'adoption. Les résultats suggèrent que le programme d'éducation permanente a réussi à encourager l'adoption de pratiques bénéfiques pour l'environnement avec quelques bémols: la réalisation des projets et leur qualité n'ont pas fait l'objet de vérification, et la diminution des rendements marginaux en fonction des efforts d'éducation pourrait avoir été réalisée dans le cadre d'un petit bassin de participants.     

Three facts about marijuana prices*

Australians are among the largest consumers of marijuana in the world, and estimates show that their expenditure on marijuana is approximately twice that on wine. In the present paper, the evolution of Australian marijuana prices over the last decade is analysed, and a decline in real terms by almost 40 per cent is shown. This decline is far above that experienced by most agricultural products. Why has this occurred and what are the implications? One possible reason is the adoption of hydroponic growing techniques that have enhanced productivity and lowered costs and prices. Another reason is that laws have become softer and penalties reduced. Patterns in prices are found that divide the country into three broad regions: (i) Sydney, where prices are highest; (ii) Melbourne and Canberra, which have somewhat lower prices; and (iii) everywhere else, where marijuana is cheapest. An exploratory analysis indicates the extent to which the price declines have stimulated marijuana consumption and inhibited the consumption of a substitute product, alcohol.     

REFLECTIONS ON MANAGEMENT AGREEMENTS FOR CONSERVATION OF EXMOOR MOORLAND

The impact of grant aid schemes and modern farm technology is considered in relation to the Study of Exmoor carried out by Lord Porchester. The development in the last three years of an administrative system based on voluntary notification using a moorland map, policies for protection of areas of special landscape value and financial guidelines for compensation is described. The conservation objectives behind management agreements are discussed and present practices with examples are illustrated. Future hazards facing successful use of management agreements are discussed with special reference to problems of funding, misuse of the system and the philosophy of progressive farming.     

Estimating the price deflator for nominal cash balances

A differential money demand equation is used to estimate the weight given to each commodity group in the price index which transforms nominal into real cash balances. The results indicate that food receives the largest weight and that the CPI is a good proxy for the true deflator.     

Genetically Modified Food Market Participation and Consumer Risk Perceptions: A Cross-Country Comparison

As developing nations look to become more competitive in world agricultural markets, genetically modified (GM) crops are one avenue of pursuit. However, fears of primary export market loss, negative media attention, and adverse government regulations often hinder GM crop implementation and increase GM food risk perceptions among domestic consumers. In this study we analyze consumer surveys of GM food purchase propensity conducted in the developing countries of Romania and China. Through the examination of marginal effects and the drivers of purchase propensity, we find that in spite of demographic and psychographic similarities, consumer willingness to purchase GM foods is quite different between the two samples. Consumer preferences are largely dependent on risk perceptions, which are high in the Romanian sample, but low in the Chinese sample. Additionally, the effect of regressors on GM purchase propensity is invariant across foods in Romania, but distinctly different across foods in China, possibly due to the stated nutritional enhancement (vitamin A) in GM rice. Comme les pays en développement cherchent à devenir plus concurrentiels sur les marchés agricoles mondiaux, les cultures génétiquement modifiées (CGM) constituent une avenue. Cependant, la crainte de perdre les principaux marchés d'exportation, l'attention médiatique négative et les règlements gouvernementaux défavorables retardent souvent l'ensemencement de CGM et augmentent la perception des risques liés aux aliments génétiquement modifiés (AGM) chez les consommateurs nationaux. Dans la présente étude, nous avons analysé des enquêtes auprès des consommateurs sur la propension à acheter des AGM dans les pays en développement, notamment la Roumanie et la Chine. En examinant les effets marginaux et les facteurs de propension à acheter, nous avons trouvé que, malgré des similarités démographiques et psychographiques, la volonté des consommateurs à acheter des AGM variait considérablement dans les deux échantillons. Les préférences des consommateurs dépendent grandement de la perception des risques, qui était élevée dans l'échantillon de la Roumanie et faible dans l'échantillon de la Chine. De plus, l'effet des variables indépendantes sur la propension à acheter des AGM était invariant pour tous les aliments en Roumanie, mais distinctement différent entre les aliments en Chine, probablement en raison de l'enrichissement nutritionnel déclaré (vitamine A) du riz génétiquement modifié.     

Quantile forecasts of daily exchange rate returns from forecasts of realized volatility

Quantile forecasts are central to risk management decisions because of the widespread use of Value-at-Risk. A quantile forecast is the product of two factors: the model used to forecast volatility, and the method of computing quantiles from the volatility forecasts. In this paper we calculate and evaluate quantile forecasts of the daily exchange rate returns of five currencies. The forecasting models that have been used in recent analyses of the predictability of daily realized volatility permit a comparison of the predictive power of different measures of intraday variation and intraday returns in forecasting exchange rate variability. The methods of computing quantile forecasts include making distributional assumptions for future daily returns as well as using the empirical distribution of predicted standardized returns with both rolling and recursive samples. Our main findings are that the Heterogenous Autoregressive model provides more accurate volatility and quantile forecasts for currencies which experience shifts in volatility, such as the Canadian dollar, and that the use of the empirical distribution to calculate quantiles can improve forecasts when there are shifts.