Exploring subcultural differences in hofstede's value survey: The case of the Chinese

Hofstede's Value Survey Module (VSM) identifies fundamental differences in the way people in various countries perceive and interpret their worlds. After adjusting value scores on the basis of demographic features of samples in the present study, values between subcultural groupings in four Chinese-populated regions (Taiwan, Beijing, Hong Kong, and Wuhan) were compared, and strong subcultural differences revealed. A methodology is proposed to facilitate VSM comparisons using limited, secondary data sources. Propositions concerning subcultural differences are suggested on the basis of the findings.     

Taxpayer resistance,guarantee uncertainty,and housing finance subsidies

In the absence of external guarantees, a private firm's debt trades in the market at rates reflective of its private default risk. Not all firms go it alone, however. There are entities, government-sponsored enterprises (GSEs), whose debt obligations enjoy federal guarantees. Federal guarantees affect housing finance indirectly in that they tend to enhance the creditworthiness of the debt obligations of the housing intermediary which lessens the debtholder's exposure to default. The market investor then becomes a willing buyer of GSE debt at a lower (subsidized) rate as a result of the government guarantee.Due to the fact that the subsidy rests on the presumption that the GSE debt will be bailed out by the government it can be seen that the subsidy in turn rests upon the presumption by the GSE debtholder that the taxpayers will honor the guarantee in the event of a GSE default. Hence, government subsidies to the housing intermediaries rest not on ongoing government outlays but rather on the confidence that the taxpayers will be willing, if called upon, to cover GSE losses, i.e., the confidence of a bailout.This article analyzes the effects on the GSE subsidy and on the taxpayer, if the debt markets charge for bailout risk. Bailout risk pricing is an economic event. When debtholders seek to protect themselves by pricing for bailout risk, this increases GSE borrowing costs and cuts into both GSE borrowers' subsidies and stockholder earnings. Higher borrowing costs leave the GSE in a weakened condition and increase the ex ante bailout cost to the taxpayer. When bailout risk premiums become priced by the market, it substantially lessens the government's ability to subsidize housing finance or other GSE activities.     

Earnings management and firm valuation under asymmetric information

This paper seeks to provide an explanation for why corporate officers manage the disclosure of accounting information. We show that earnings management affects firm value when value-maximizing managers and investors are asymmetrically informed. In equilibrium, the strategic management of reported earnings influences investors' assessments of the market values of companies' shares.     

Education and wages in the Czech and Slovak Republics during transition

An employer-based sample of over 400,000 Czech and 125,000 Slovak men is used to estimate the benefits of education in 1995–1997. By 1997, education of all types had become substantially more highly rewarded in both countries than it was either under communism or in the early years of the transition. Education's value began increasing earlier and reached a higher level in the Czech Republic than in Slovakia. Increases in the value of education were especially pronounced for types of education ideologically disfavored by communism.     

THE ASSOCIATION BETWEEN EXECUTIVE SUCCESSION AND DISCRETIONARY ACCOUNTING CHANGES: EARNINGS MANAGEMENT OR DIFFERENT PERSPECTIVES?

This paper investigates the association of executive changes with both income increasing and decreasing accounting changes. Two potential explanations for the hypothesis that firms with changes in CEOs are more likely to make accounting changes are examined. The earnings management explanation holds that new management intervenes in the financial reporting process in order to alter perceptions of effectiveness. The different perspectives explanation holds that managements have different tastes, perspectives, or views of the world than the predecessor. Evidence supports the different perspectives explanation.     

The role of federal funding on the demand for state and local government spending

Federal aid to state and local governments lowers the perceived tax price of state and local government output and, in this way, affects the demand for state and local government. After reviewing some theoretical models, an empirical investigation using data from 1960–89 shows that federal aid makes the demand for state and local government spending more income-elastic. State and local government expenditures have grown more rapidly than federal government expenditures since 1960 and there is some empirical support for the idea that federal aid was an important contributing factor.     

Social networks,rule of law and economic growth in China: The elusive pursuit of the right combination of private and public ordering

Social networks have always been an integral part of every society. However, they are different and play a more prominent role in Asian societies. In particular, it will be argued that the relationship of private ordering, networks of relationships, and informal law to formal law are necessary in addition to rule of law for a sustained economic growth. This is evident in how various Asian countries escaped the financial crisis that crippled the region. Rather than an analysis of several different Asian societies, China will be the main focus.     

Let’s Not Go Down that Path Again: Lessons from the Past Applied to Immigrant-Targeted Discrimination

Immigrants, both legal and illegal, are a staple of the modern United States workplace. While much of the discussion of this fact centers on negative consequences for the U.S., far less attention has been paid to the detrimental impact on immigrants resulting from their workplace experiences, particularly relating to being targets of discrimination. In this article, we outline: a) a variety of types of workplace discrimination potentially relating to immigrant status; b) potential negative outcomes arising from said discrimination for both immigrant employees and their employers, and; c) how existing and predicted employment law standards place organizations in a legally vulnerable position when such discrimination goes unchecked. We further discuss implications of immigrant-targeted discrimination (ITD) for organizations and managers, and plausible extensions of workplace discrimination laws to specifically include ITD.