[In]visible [in]tangibles: Visual portraits of the business élite

Visual portraits of the business élite are widely disseminated, and form significant sites for communicating messages regarding leadership and associated intellectual, symbolic and social intangibles, yet have been neglected in accounting research. At the same time, accounting for intangibles is recognised to be inadequate. This inter-disciplinary article constructs a framework from art theory to interpret portraits of the business élite and their associated [in]visible [in]tangibles. Four sets of rhetorical codes in portraiture are identified: physical, dress, spatial and interpersonal. Illustrative portraits from annual reports and the media are analysed to indicate how [in]visible [in]tangibles are portrayed through visual rhetoric.     

Responses Toward Corporate Crisis and Corporate Advertising

This article investigates how individual differences affect consumer responses to corporate advertising during a corporate crisis. Study 1, based on qualitative data, showed brand ownership, involvement with the crisis, and news media exposure were important factors in understanding consumer response toward the crisis and the company. Study 2, a survey, empirically demonstrated that prior attitude toward the company was the most critical factor affecting advertising-related behaviors. The study further suggested consumers of the brand were more likely to view the company favorably, to know more about the company, and to be more involved in their following of the crisis.     

Regulating the timing of disclosure: Insights from the acceleration of 10-K filing deadlines

We study the effects of regulating the timing of disclosure on the quality of accounting information, using a 2003 US regulatory change that accelerates 10-K filing deadlines as a research setting. Employing a difference-in-differences design, we find that the likelihood of issuing financial statements that are later restated increases for firms that are required to file more quickly, relative to firms whose filing practices are not affected by the regulatory change. This effect is particularly pronounced during the audit busy season, when auditors also face significant time pressure. These results are consistent with a tradeoff between how quickly accounting reports are required to be filed and the reliability of the resulting reports.     

An Analysis of Accounting Frauds and the Timing of Analyst Coverage Decisions and Recommendation Revisions: Evidence from the US

This paper provides a comprehensive exploration of the types of accounting fraud committed by firms over the period 1995–2009. Using detailed data from US SEC Accounting and Auditing Enforcement Releases (AAER), we examine the likelihood and timing of analyst coverage decisions and recommendation revisions related to fraud firms versus firms without accounting fraud. We find that analysts have a higher probability of taking the more severe action of dropping coverage rather than only revising down recommendations for firms with any type of accounting fraud and also for specific egregious types of accounting fraud. Through the use of competing hazards models, we also find that accounting frauds and their egregiousness are positively (negatively) associated with the timeliness of the analysts’ action to drop coverage (revise only). Overall, we find that analysts’ actions may be useful in determining the occurrence of accounting fraud prior to the public announcement of the fraud.     

Financial innovation and Divisia monetary indices in Taiwan: a neural network approach

In this paper a weighted index measure of money using the ‘Divisia’ formulation is constructed for the Taiwan economy and its inflation forecasting potential is compared with that of its traditional simple sum counterpart. This research extends an earlier study by Gazely and Binner by examining the theory that rapid financial innovation, particularly during the financial liberalization of the 1980s, has been responsible for the poor performance of conventional simple sum monetary aggregates. The Divisia index is adjusted in two ways to allow for the major financial innovations that Taiwan has experienced since the 1970s. The technique of neural networks is used to allow a completely flexible mapping of the variables and a greater variety of functional form than is currently achievable using conventional econometric techniques. Results suggest that superior tracking of inflation is possible for networks that employ a Divisia M2 measure of money that has been adjusted to incorporate a learning mechanism to allow individuals to gradually alter their perceptions of the increased productivity of money. Divisia measures of money appear to offer advantages over their simple sum counter parts as macroeconomic indicators.     

Personality and domain‐specific risk taking

The concept of risk propensity has been the subject of both theoretical and empirical investigation, but with little consensus about its definition and measurement. To address this need, a new scale assessing overall risk propensity in terms of reported frequency of risk behaviours in six domains was developed and applied: recreation, health, career, finance, safety and social. The paper describes the properties of the scale and its correlates: demographic variables, biographical self‐reports, and the NEO PI‐R, a Five Factor personality inventory (N?=?2041). There are three main results. First, risk propensity has clear links with age and sex, and with objective measures of career‐related risk taking (changing jobs and setting up a business). Second, the data show risk propensity to be strongly rooted in personality. A clear Big Five pattern emerges for overall risk propensity, combining high extraversion and openness with low neuroticism, agreeableness, and conscientiousness. At the subscale level, sensation‐seeking surfaces as a key important component of risk propensity. Third, risk propensity differs markedly in its distribution across job types and business sectors. These findings are interpreted as indicating that risk takers are of three non‐exclusive types: stimulation seekers, goal achievers, and risk adapters. Only the first group is truly risk seeking, the others are more correctly viewed as risk bearers. The implications for risk research and management are discussed.     

A discrete‐time hazard analysis of the exit of burley tobacco growers in Tennessee,North Carolina,and Virginia

This article examines the exit and survival dynamics of burley tobacco growers in Tennessee, North Carolina, and Virginia using a discrete‐time hazard logit model. The study also predicts the effects of selected farm and family characteristics on exit hazards, assesses the proportionality of their effects over time and their relative importance in explaining the variation in exit hazards among burley tobacco growers. Results provide the longitudinal progression of the probability of exiting the tobacco industry since the end of the federal tobacco program in 2004, and identify off‐farm participation, percentage of farm receipts from tobacco, tobacco price, educational level, and farm size as the most important determinants of the decision to exit the tobacco industry. Further, the effects of off‐farm participation and farm size on the exit hazards of burley tobacco farms are proportional over time while the effects of the percentage of farm receipts from tobacco and tobacco price are time variant.     

A Breed Apart? Security Analysts and Herding Behavior

Herding behavior occurs when security analysts ignore their private opinions and issue public forecasts that mimic the earnings forecasts of others. Joining the consensus provides cover for analysts' reputations. We question the ethics of this practice when the motive to protect one's reputation takes precedence over the forecast accuracy motive. While seemingly predictable behavior from a self interested perspective, herding behavior has subtle but long term ramifications for the efficient pricing of securities and the preservation of the public trust in the financial services profession. We call upon each individual analyst as well as the profession to exercise the moral courage necessary to cultivate a climate of personal and public integrity. Personal resistance and pro-active policies are prescribed as actions to assist analysts to become more cognizant of their motivations, as well as to promote a more ethical professional context.