Auditors' Fee Premiums and Low‐Quality Internal Controls*

We examine the relation between low‐quality internal controls and audit fee premiums. Using a novel data set of audit hours and audit fees we find, consistent with the audit risk model, that auditors increase their effort (hours) owing to low internal control quality. We find that auditors also charge a significant fee premium to clients with internal control weaknesses. This premium is observed for severe internal control weaknesses and companies with low‐quality alternative governance mechanisms. The results are robust to multiple methods to address endogeneity, including company fixed effects, difference‐in‐differences design, and a propensity score‐matched sample. Taken as a whole, low internal control quality leads to fee premiums, which are a deadweight loss to client companies.     

Black political power and the decline of black land ownership

Conclusion The absence of a viable equity base has been costly to the black community both economically and politically. Black dependency on white economic support has served to rob the black community of its autonomous decision-making potential. Further, without the advantage of a steady income and personal property in which they can take pride, many povertystricken Blacks have been unable to develop a serious interest in political activity. At the same time, black organizational efforts—both political and economic—have been crippled by the lack of a sufficient equity base to keep them independently viable.     

Monetary policy for an open economy: an alternative framework with optimizing agents and sticky prices

The 'new open-economy macroeconomics' seeks to provide an improvedbias for monetary and exchange-rate policy through the constructionof open-economy models that feature rational expectations, optimizingagents, and slowly adjusting prices of goods. This paper promotesan alternative approach for constructing such models by treatingimports not as finished consumer goods but rather as raw-materialinputs to the home economy's productive process. This treatmentleads to a clean and simple theoretical structure that has someempirical attractions as well. A particular small-economy modelis calibrated and its properties exhibited, primarily by meansof impulse response functions. The preferred variant is shownto feature a pattern of correlations between exchange-rate changesand inflation that is more realistic than provided by a morestandard specification. Important recent events are interpretedin light of the alternative models.     

Role of Gender in Conflict Handling in the Context of Outsourcing Service Marketing

Do male and female outsourcing service marketers differ in their responses to conflict‐handling styles of outsourcers? The paper addresses this question by identifying relationship‐oriented typologies of conflict handling from extant literature and examining their effects on key relational outcomes in outsourcing relationship in A sia. Specifically, the paper considers how outsourcers’ conflict‐handling styles impact trust and commitment by male and female outsourcing service providers’ ( OSP s). Data were collected from male and female OSP s and analyzed using F actor and H ierarchical M ultiple R egression analyses. Findings show significant differences in the relationship between conflict‐handling styles and relational outcomes between male and female OSP s. Precisely, integrating conflict handling–trust relationship is significantly stronger for males than for females, whereas compromising conflict handling–trust relationship is significantly stronger for females than for males. Findings show no statistical differences in accommodating conflict handling–trust relationship between the groups. These findings lead to research and managerial implications that conclude the paper.     

Thirty years of research on tourism and hospitality management in China: A review and analysis of journal publications

The tourism industry in China has undergone rapid development since 1978 and is foreseen as being the world's largest tourism market by 2020. However, no comprehensive review of literature in this context has been completed, and international academics have little understanding of China tourism research. This paper aims to provide an overview of 119 articles selected from six leading English language academic journals published from 1978 to 2008. Content analysis points to the evolving trend in Asian universities in terms of journal contributions. Consumer behavior has gained popularity as a research topic, and will likely remain as a prevalent research theme in the near future. A tendency toward multiple-authorship, rather than single authorship, and more sophisticated methodological procedures has also been found. Future analysis may focus on including other forms of publications and Chinese language journals to capture the full picture of China tourism.     

BOOK REVIEWSS

Gordon, John S. and Jack R. Arnold, Profitable Exporting: A Complete Guide to Marketing Your Products Abroad, New York: John Wiley &; Sons, 1988, vii + 358 pages.

Haggard, Stephan and Chung-in Moon (Eds.), Pacific Dynamics: The International Politics of Industrial Change, Boulder, CO: Westview Press, 1989, ix + 389 pages.

Eichengreen, Barry, and Lindert, Peter H. (Eds.), The International Debt Crisis in Historical Perspective, Cambridge, MA: MIT Press, 1989, 282 pages.

Cohen, Richard, World Trade and Payments Cycles: The Advance and Retreat of the Postwar Order, New York: Praeger Publishers, 1989, xxiii + 229 pages.

Schaffer, Matt, Winning the Countertrade War: New Export Strategies for America, New York: John Wiley and Sons, 1989, xvii + 226 pages.

Grimwade, Nigel, International Trade: New Patterns of Trade Production and Investment, New York: Routledge, 1989, xv + 459 pages.

Salvatore, Dominick, International Economics, 3rd ed. New York: Macmillan Publishing Company, 1990, xxxii + 695 pages.

Hibbert, Edgar P., The Management of International Trade Promotion, London: Routledge, 1990, x + 287 pages.

United Nations Centre on Transnational Corporations, Services and Development: The Role of Foreign Direct Investment and Trade, New York: United Nations, 1989, x + 181 pages.

Friedländer, Michael (Ed.), Foreign Trade in Eastern Europe and the Soviet Union, Boulder, CO: Westview Press, 1990, xiii + 241 pages.

Rollo, J. M. C., The New Eastern Europe: Western Responses, New York: Council on Foreign Relations Press, 1990, 137 pages.

Gill, William J., Trade Wars Against America: A History of United States Trade and Monetary Policy, New York: Praeger, 1990, xvi + 325 pages.

Destler, I. M., and C. Randall Henning, Dollar Politics: Exchange Rate Policy-making in the United States, Washington, DC: Institute for International Economics, 1989, xi + 174 pages.

Schott, Jeffrey J. (Ed.), Completing the Uruguay Round, Washington, DC: Institute for International Economics, 1990, x + 223 pages.