Auditor independence, self-interested behavior and ethics: some experimental evidence

Our paper presents the results obtained in a laboratory environment in which subjects revealed their beliefs about an uncertain state of the world and then participated in a simple task which required them to report on whether the report of a second party is consistent with the subjects’ beliefs. Because maintaining prior judgements (audit independence) which were in disagreement with the second party’s decision (a potential for a qualified audit opinion) were costly to the subject, a situation was created in which the subject might compromise her beliefs at a price. The results suggest that amoral, self-interested profit-maximizing behavior does not generally characterize the subjects in this experiment. Furthermore, subjects compromise their beliefs less often, i.e., breach independence, the higher their scores on a Defining Issues Test, but more often, the greater the cost of adhering to their beliefs.     

Comparative analysis on the effects of the Asian and global financial crises on precious metal markets

The global financial crisis has vigorously struck major financial markets around the world, in particular in the developed economies since they have suffered the most. However, some commodity markets, and in particular the precious metal markets, seem to be unscathed by this financial downturn. This paper investigates therefore the nature of volatility spillovers between precious metal returns over fifteen years (1995-2010 period) with the attention being focused on these markets’ behavior during the Asian and the global financial crises. Daily closing values for precious metals are analyzed. In particular, the variables under study are the US$/Troy ounce for gold, the London Free Market Platinum price in US$/Troy ounce, the London Free Market Palladium price in US$/Troy once, and the Zurich silver price in US$/kg. The main sample is divided into a number of sub periods, prior to, during and after the Asian crisis. The aim of this division is to provide a wide and deep analysis of the behavior of precious metal markets during this financial event and of how these markets have reacted during times of market instability. In addition, this paper also looks at the effects of the global financial crisis from August 2007 to November 2010 using GARCH and EGARCH modeling. The main results show that there is clear evidence of volatility persistence between precious metal returns, a characteristic that is shared with financial market behavior as it has been demonstrated extensively by the existing literature in the area. In terms of volatility spillover effects, the main findings evidence volatility spillovers running in a bidirectional way during the periods; markets are not affected by the crises, with the exception of gold, that tends to generate effects in all other metal markets. However, there is little evidence in the case of the other precious metals generating any kind of influence on the gold market. On the other hand, there is little evidence of spillover effects during the two crisis episodes. Finally, the results from asymmetric spillover effects show that negative news/information have a stronger impact in these markets than positive news, again a characteristic that has been also exhibited by financial markets.     

Human extinction scenario frameworks

It is a natural human instinct to wonder about the future. Some have long speculated about the various events that could potentially lead to the extinction of the human race. While a dark subject, the point of exploring factors that could drastically impact the ability to sustain life on our planet has utility in preparing for events of this nature. It is in the spirit of learning how to change before catastrophe strikes that such wondering occurs.     

Government Revenue and Child and Maternal Mortality

Open Economies Review - Most maternal and child deaths result from inadequate access to the critical determinants of health: clean water, sanitation, education and healthcare, which are also among...     

Problematising ‘Festival Tourism’: Arts Festivals and Sustainable Development in Ireland

This paper problematises the term ‘festival tourism’. It conceptualises festivals as socially sustaining devices and argues that while they frequently function as tourist attractions, their social significance extends far beyond tourism. Using empirical material gathered in two case study arts festivals in Ireland, the paper demonstrates how festivals can contribute to arts development by inter alia creating demand for the arts, enhancing venue infrastructures, encouraging local creativity and animating local involvement. The paper contends that arts festivals, irrespective of their initial objectives almost inevitably develop tourist profiles over time and it proceeds to examine how changing tourism priorities in the two festivals studied impact upon sustainable festival practices. The findings suggest that tourism emerged as a key force promoting festival growth and expansion. It was found to be associated with increased revenue flows but also with increased arts activity on a year-round basis and with an improved venue infrastructure in both places. However, problems were identified with respect to the quality of the relationship forged between the festivals and local populations in the respective places. The paper concludes by arguing that festivals’ engagement with tourism needs to be carefully managed in the interests of promoting the socially sustaining function of festivals and of encouraging sustainable approaches to tourism development.     

An Empirical Investigation of the Relationship Between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory Perspective

Stakeholder theory provides a framework for investigating the relationship between corporate social performance (CSP) and corporate financial performance. This relationship is investigated by examining how change in CSP is related to change in financial accounting measures. The findings provide some support for a tenet in stakeholder theory which asserts that the dominant stakeholder group, shareholders, financially benefit when management meets the demands of multiple stakeholders. Specifically, change in CSP was positively associated with growth in sales for the current and subsequent year. This indicates that there are short-term benefits from improving CSP. Return on sales was significantly positively related to change in CSP for the third financial period, indicating that long-term financial benefits may exist when CSP is improved.     

Consumer Adaptation Strategies: From Austrian Shilling to the Euro

On 1st January 2002, in 12 countries of the European Union, euro notes and coins replaced existing national currencies. The currency changeover required citizens to adapt in various ways. They had to learn to handle new coins and notes, and evaluate prices in the new currency. Data on how these tasks were performed by Austrians are presented. In particular, Austrian consumers applied four different strategies to establish price intuition for the euro: a conversion strategy, an intuitive strategy, an anchor strategy, and a marker value strategy. Data on these strategies show that their application varies across socio-demographic characteristics, differs with purchase situations, relates to euro attitudes, and changes over time. Although the introduction of the euro took place about 5 years ago, the adaptation process is still ongoing.