ECB: Independence at risk?

The extraordinary measures taken by the ECB to combat the fi nancial crisis have led many observers to question whether the bank has put its independence at risk. The bank’s vow to do “whatever it takes” to save the euro has added a second (and potentially contradictory) goal alongside its primary mission of achieving price stability. This expansion of the ECB mandate could expose the bank to national and European political demands, thereby endangering its prized independence.     

Technological opportunism effects on IT adoption,intra-firm diffusion and performance: Evidence from the U.S. and Spain

The paper pursues a joint analysis of the direct influence of the level of a firm's technology opportunism capability on performance and on the adoption and intra-firm diffusion of Internet-based technologies. The study here examines the mediating effect that intra-firm diffusion exerts on the relationship between capabilities and performance. This study uses the results from a survey of 100 Spanish and 109 American franchise firms. Results indicate that the firm's level technological opportunism influences the adoption and intra-firm diffusion of technology and also has a positive impact on performance. While intra-firm diffusion is a driver of performance, adoption has no influence. Finally the indirect impact of technological opportunism on performance differs across countries. While for American firms, the integration of technologies into activities that related to communication with partners has a positive impact on performance; Spanish managers should focus on the integration of these technologies into back-end functionalities.     

Annual Conference for Management Accounting Research (ACMAR) –Controllertagung im neuen Gewand

PRAXIS | Magazin

Annual Conference for Management Accounting Research (ACMAR) –Controllertagung im neuen Gewand Konferenz-Review     

The stability and breakup of nations: a quantitative analysis

This paper quantitatively analyzes the stability and breakup of nations. The tradeoff between increasing returns in the provision of public goods and the costs of greater cultural heterogeneity mediates agents’ preferences over different geographical configurations, thus determining the likelihood of secessions and unions. After calibrating the model to Europe, we identify the regions prone to secession and the countries most likely to merge. We then estimate the implied monetary gains from EU membership. As a test of the theory, we show that the model can account for the breakup of Yugoslavia and the dynamics of its disintegration. We find that economic differences between the Yugoslav republics determined the order of disintegration, but cultural differences, though small, were key to the country’s instability. The paper also provides empirical support for the use of genetic distances as a proxy for cultural heterogeneity.     

Risk and Policy Shocks on the US Term Structure

We document two stylized facts of US short‐term and long‐term interest rate data seemingly incompatible with the expectations hypothesis: low contemporaneous cross‐correlation and relatively slow adjustment to long‐run relationships. We explain these features in a small structural model with three types of randomness: While a persistent monetary policy shock implies immediate identical reactions through the term structure, both a transitory policy shock and an autocorrelated risk premium allow for sustained deviations. Indeed, we find important impacts and persistence of risk premia and considerable contribution of transitory policy shocks to short rates. Results of standard expectations hypothesis tests can be rationalized.     

Rationalising Inappropriate Behaviour at Contested Sites

This paper examines how tourists justify inappropriate behaviour at contested cultural heritage sites through an analysis of weblogs of people who climbed Uluru, Australia. The climb is increasingly seen as being inappropriate, culturally insensitive and socially unacceptable. Yet it remains open and up to 150,000 people participate each year. Park managers and traditional owners are trying to demarket it with the hope that falling consumer demand will ultimately result in its closure. The study revealed three types of climbers: those who reject the Aboriginality of the place; those with different value sets who see nothing inherently wrong with their actions; and a large group who is aware that its actions may be inappropriate and who, therefore, need to invoke some sort of neutralisation technique to rationalise their decision. This latter group is more likely to respond to behaviour modification messages and should be the main target of future demarketing activities.     

Can the Repeated Prisoner's Dilemma Game Be Used As a Tool to Enhance Moral Reasoning?

The Treadway Commission examined the causes offraudulent financial reporting and maderecommendations to curb its occurrence. In itsrecommendations to educators, the TreadwayCommission (1987) stated that ``(b)usinessschools should encourage business andaccounting faculty to develop their ownpersonal competence as well as classroommaterials for conveying information, skills,and ethical values that can help prevent,detect, and deter fraudulent financialreporting' (p. 83). The purpose of this studywas to determine whether the repeatedprisoner's dilemma game could be used as a toolto increase individuals' moral reasoning. Itwas hoped that this exercise would encouragetrust (Rapoport and Chammah, 1965) andreciprocal altruism (Dawes, 1988) as theylearned to cooperate with one another in orderto maximize their payoffs.Students enrolled in a financial accountingcourse participated in a five-round repeatedprisoner's dilemma game. Payoffs were bonuspoints to be added to their final exam grade. Students' level of moral reasoning was assessedthree times based on their evaluation of two,short ethical dilemmas – prior toparticipating in the repeated prisoner'sdilemma game, then approximately one week afterthe exercise, and finally three months afterthe exercise. Although we found that students'level of moral reasoning did not significantlyincrease one week after participating in therepeated prisoner's dilemma game, there was aneffect three months later for one of the twoethical dilemmas. Possible explanations forthese results are discussed as well asimplications for future research.     

Lohnt eine Kooperation von Controllerbereich und Innenrevision?

Die Diskussion der Schnittstelle zwischen Controllerbereich und Innenrevision hat eine lange Tradition, die jüngst durch die Regelungen zur Corporate Governance eine neue Dynamik erfuhr. Zwar stellen in diesem Kontext zahlreiche Arbeiten das Potenzial einer Zusammenarbeit der beiden Akteure heraus, jedoch ist die theoretische und insbesondere empirische Durchdringung dieses Themenkomplexes bisher nur unzureichend erfolgt. Dieser Beitrag untersucht erstmals empirisch die Wirkung kooperativen Verhaltens der beiden Akteure auf die Ergebnisqualität der Controllerleistungen. Dabei konnte festgestellt werden, dass die Kooperation von Controllerbereich und Innenrevision positiv auf beide Teildimensionen der Controllerleistungen (Führungsunterstützung und Rationalitätssicherung) wirkt.