Ideological reactions to Sarbanes–Oxley

The Sarbanes–Oxley Act of 2002 has been generally seen as a legitimate response to a significant crisis in the capital markets. Not often acknowledged, however, is the observation that the law's overarching emphasis on restoring credibility to the capital markets is revelatory of a deep ideological commitment to maintaining the capitalist system which is inherent in the American political structure. Intriguingly, several groups have emerged in recent years which stand in opposition to the Sarbanes–Oxley Act. On the face of it, the efforts of these groups appear to contradict the law's intent of restoring credibility to the capital markets. This paper describes certain of these groups and the ideological claims that have been advanced with respect to their arguments. While it will be seen that the Sarbanes–Oxley Act has some weaknesses which might be corrected, it has generally been a progressive piece of legislation that has contributed to increased levels of transparency in financial reporting and a greater independence of auditors. While these goals might be viewed as self-serving measures intended to protect the interests of capital, they may also be seen as beneficial to society in a larger sense. Credible financial reporting and independence of auditors helps to provide greater societal control over corporations. In the absence of explicit multinational structures to reign in corporate power, it is difficult to conceive of any other potential control mechanisms apart from effective systems of financial reporting and corporate governance.     

Spatial Outcomes of Capital Restructuring: ‘new industrial spaces’ as a symptom of crisis,not solution

This article considers the spatial outcomes of post-Fordist economic developments with particular reference to the flexible specialisation models of the ‘new industrial spaces’. It is argued that greater consideration must be given to the claimed role of these new industrial spaces in developing theory. Furthermore, the concept of transaction costs, which is located at the centre of such theories, must be treated with caution. A more profitable approach lies with a detailed investigation of the power relationships between large and small firms and capital and labour, with a greater emphasis on the institutional aspects of power.     

Macroeconomic Impact of Establishing a Large-scale Fuel Ethanol Plant on the Canadian Economy

This paper analyzes the macroeconomic impact of establishing a large-scale fuel ethanol plant that uses com as its feedstock. An input-output model of the Canadian economy is used to estimate the macroeconomic impact. The agricultural output data required for the input-output analysis are generated using an econometric model. The macroeconomic impact of operating this plant is increases in industrial output of $328.6 million, in GDP at factor cost of $84.2 million and in employment of 1,390 jobs.
Ce document a pour but d'analyser l'impact macro-économique de l'installation d'une grande usine productrice d'éthanol, utilisant le maï's comme matière première. Un modèle entrées-sorties de l'économie canadienne est employé afin d'estimer l'impact macro-économique. Les données de rendements agricole requises pour cette analyse sont générées à l'aide d'un modèle économétrique. Les impacts macro-économique qui résultèrent suite à l'opération de cette usine sont: un augmentation de $328.6 millions du rendement industriel, une augmentation de $84.2 millions du PIB au coût des facteurs, ainsi qu'un gain de 1,390 emplois.     

An Economic Theory of Mortgage Redemption Laws

Redemption laws give mortgagors the right to redeem their property following default for a statutorily set period of time. This article develops a theory that explains these laws as a means of protecting landowners against the loss of nontransferable values associated with their land. A longer redemption period reduces the risk that this value will be lost but also increases the likelihood of default. The optimal redemption period balances these effects. Empirical analysis of cross-state data from the early twentieth century suggests that these factors, in combination with political considerations, explain the existence and length of redemption laws.     

A Catering Theory of Dividends

We propose that the decision to pay dividends is driven by prevailing investor demand for dividend payers. Managers cater to investors by paying dividends when investors put a stock price premium on payers, and by not paying when investors prefer nonpayers. To test this prediction, we construct four stock price-based measures of investor demand for dividend payers. By each measure, nonpayers tend to initiate dividends when demand is high. By some measures, payers tend to omit dividends when demand is low. Further analysis confirms that these results are better explained by catering than other theories of dividends.     

Beyond bean counting: Establishing high ethical standards in the public accounting profession

Business professions are increasingly faced with the question of how to best monitor the ethical behavior of their members. Conflicts could exist between a profession's desire to self-regulate and its accountability to the public at large. This study examines how members of one profession, public accounting, evaluate the relative effectiveness of various self-regulatory and externally imposed mechanisms for promoting a climate of high ethical behavior. Specifically, the roles of independent public accountants, regulatory and rule setting agencies, and undergraduate accounting education are investigated. Of 461 possible respondents, 230 questionnaires (a 49.6% response rate) indicated that the profession's own rule setting body (The American Institute of Certified Public Accountants) and the use of peer review were perceived as the most effective mechanisms, while government regulation was ranked least. Respondents also evaluated the extent to which ethics should be covered in the accounting curriculum. For every course, the CPAs believed a greater emphasis on ethics is appropriate than presently exists. Suggestions for more effectively integrating ethics into accounting courses are made. Finally, respondents were also asked whether in answering the questionnaire they used a definition of ethics as either the Professional Code of Conduct or a moral and philosphical framework for guiding beliefs. Those who viewed ethics as abiding by a professional code had more confidence in the mechanisms addressed in this study to aid the public accounting profession's ability to ensure high ethical standards of conduct. Methodological implications of this distinction for future studies in business ethics are discussed. Jeffrey R. Cohen is Assistant Professor of Accounting at Boston College. He received his Ph.D. from The University of Massachusetts at Amherst. He is a C.M.A. and a Peat Marwick Research Fellow. His articles have appeared in the Journal of Accounting Research, Decision Sciences and The Organizational Behavior Teaching Review. His work on Ethics has appeared in Issues in Accounting Education, Management Accounting, and The CPA Journal. Laurie W. Pant is Assistant Professor of Accounting at Boston College. She holds an M.B.A. and a D.B.A. from Boston University and an M.Ed. from Emory University. She serves on the editorial board of Issues in Accounting Education. Her articles on Ethics have appeared in Issues in Accounting Education, Management Accounting and The Organizational Behavior Teaching Review.An earlier version of this paper was presented at the 1989 American Accounting Association National Meeting.     

Contemporary Accounting Research: A Retrospective between 1984 and 2021 using Bibliometric Analysis*

This study critically evaluates research published by Contemporary Accounting Research (CAR) between 1984 and 2021 using bibliometric analysis. We examine the following: (i) CAR's publication quality and the factors associated with its citations and (ii) CAR's scope regarding research diversity, methods, authors geographical dispersion, and collaborative networks. The methodology permits observation of finer collaboration details and research patterns not apparent by simply categorizing the data. We use tools such as performance analysis, coauthorship analysis, bibliographic coupling, and regression analysis. The bibliometric analysis shows improvement in CAR's CiteScore and source-normalized impact per paper over time, consistent with publishing high-quality research. Our analysis reveals that authors' geographical affiliations, research subject areas, and research methods are not systematically associated with citations across our various subsamples. A notable exception is that research on audit topics generates more citations than studies examining financial accounting topics. Other factors significantly and positively associated with citations include article age, article length, number of authors, order of author names, and number of references. We also show that CAR has become more diverse regarding author affiliations, subject areas, and research methods than most leading accounting journals. Only Accounting, Organizations and Society emerges as more diverse, thereby serving as a benchmark for CAR in the future. CAR should consider focusing on high-interest areas to boost citations and tightening its acceptance criteria.     

Is Background Music Effective On Retail Websites?

Web designers often advise online retailers against incorporating background music on websites. However, the effect of music in brick-and-mortar retail settings has generally been found to be favorable. The research on the effects of music has been mixed. Our study aims to examine whether congruent music on the website homepage influences online consumers. Using the responses of 290 visitors to two different commercial websites, we test the influence of background music on consumers’ arousal and pleasure perceptions. The results indicate congruent background music on a website's homepage will generate positive affective responses of arousal and pleasure within users, and will enhance users’ perceived usefulness and perceived enjoyment as well. The findings reveal the effects of respondent’ affective responses to the music differed by gender. Website music produces significant affective and cognitive responses in high web skill/low web challenge users and explains more of website enjoyment.     

Packing for the trip: A model of competencies for successful expatriate hospitality assignment

This paper aims to propose a model to assist international hotel companies to prepare expatriate executives for their overseas assignments to minimize expatriate failure. Survey questionnaires measuring competences and skills of expatriation were administered to 66 representatives of the lodging associations and properties who are members in the International Hotel & Restaurant Association. Exploratory factor analysis findings indicate that three categories of attributes are keys for successful overseas assignments: personal competencies, global management skills, and expatriate adjustment. Human resource development professionals should be especially cognizant of identifying personal competencies as the distinguishing elements for selecting high-potential expatriate managers. Educational programs preparing students for work in international hospitality business should strive to expose students to all of the behavioral aspects of international hospitality business identified in this study.