Earnings Quality under Rules‐ versus Principles‐based Accounting Standards: A Test of the Skinner Hypothesis / LA QUALITÉ DES RÉSULTATS SELON QUE LES NORMES COMPTABLES SONT AXÉES SUR LES RÈGLES OU SUR LES PRINCIPES: VÉRIFICATION DE L'HYPOTHÈSE DE SKINNER*

We provide preliminary evidence, consistent with Skinner (1995), that Canada's relatively principles‐based GAAP yield higher accrual quality than the United States' relatively rules‐based GAAP. These results stem from a comparison of the Dechow‐Dichev (2002) measure of accrual quality for cross‐listed Canadian firms reporting under both Canadian and U.S. GAAP. However, we document lower accrual quality for Canadian firms reporting under U.S. GAAP than for U.S. firms, which are subject to stronger U.S. oversight, reporting under U.S. GAAP. The latter results suggest that stronger U.S. oversight compensates for inferior accrual quality associated with rules‐based GAAP. Consistent with the positive effect of Canada's principles‐based GAAP and the offsetting negative effect of Canada's weaker oversight, we find no overall difference in accrual quality between Canadian firms reporting under Canadian GAAP and U.S. firms reporting under U.S. GAAP. Our results imply that (1) policymakers who wish to compare the effectiveness of oversight across jurisdictions must control for the GAAP effect; and (2) accounting standard‐setters who wish to compare the effectiveness of principles‐ versus rules‐based GAAP must control for oversight strength.     

An Experimental Assessment of the Effects of Two Alcoholic Beverage Health Warnings Across Countries and Binge-Drinking Status

In recent years, alcohol-related problems on college campuses have been well documented. This research examines how two different alcoholic beverage health warnings placed on the label of a fictitious brand of beer influence alcohol-related risk perceptions, attitudes and intentions, and characterizations of problem-drinking behaviors of binge and non-binge drinkers in Australia and the United States. The consumer welfare implications of our findings, which show that the dependent measures are influenced by both main and interaction effects, are discussed.     

The Federal Reserve's Tools for Policy Normalization in a Preferred Habitat Model of Financial Markets

We develop a model to analyze monetary policy implementation with multiple Federal Reserve liabilities and superabundant reserves. The analysis demonstrates the Federal Reserve's tools including interest on excess reserves (IOER), overnight reverse repurchase agreements (ON RRP), and term deposits should allow the Federal Reserve to raise the short‐term interest rates to any desired level. We find the contribution of each the increase in the IOER and ON RRP offering rates in firming money market rates suggested by the data during the December 2015 policy tightening event is remarkably similar to the effect of each tool implied by the calibrated model.     

Babies for Sale: Market Ethics and the New Reproductive Technologies

This paper proposes the presence of a sacred/profane continuum along which marketing exchanges may be made. The functioning of this continuum is illustrated through the examination of novel reproductive markets, e.g. surrogate mothers, in vitro fertilization, that “mix” aspects of sacred and profane exchange, resulting in anxiety and confusion for market participants and society as a whole. Some ethical guidelines for governing such mixed markets are suggested.     

Consumer Decision-Making Styles as a Function of Individual Learning Styles

The interrelations between individuals' learning styles and their consumer decision-making styles are explored. A Secondary Learning Styles Inventory is developed to measure six characteristics of learning, and a Consumer Styles Inventory is developed to measure eight characteristics of consumer decision making. Significant correlations between 21 of the 48 pairs of learning and consumer decision-making characteristics are found. Implications for the dissemination of consumer education and information are suggested.     

Husbands' and wives' household work: moving towards egalitarianism?

Whether husbands are increasing their time in household tasks, especially when their wives are employed, has been a topic of debate in recent years. Several studies have found that husbands are participating in more child care now than in the past. But are husbands also doing other tasks now? Is there any relationship between the amounts of time that husbands and wives allocate to various household tasks? Are there any weekday versus weekend differences? A small sample of husbands and wives recorded their time spent in various activities for 7 consecutive days. The findings reveal that wives spent more time in general doing household tasks than did their husbands. Employed wives and their husbands both decreased their total time in household work, compared with full-time homemakers and their husbands. At weekends, however, both employed wives and homemakers decreased their overall time in household work while the husbands increased theirs. The t-test revealed that at weekends there were no significant differences in the times allocated to various household tasks by employed wives and their husbands, and significant differences only in time spent in child care and food preparation/clean-up by homemakers and their spouses. There appears to be a more egalitarian approach by husbands and wives to household tasks at weekends than on weekdays, even when the wives are not employed. Although these findings should not be generalized to the population, they indicate an intriguing possible trend which deserves further investigation.     

ANOTHER LOOK AT THE RELATIONSHIP BETWEEN INNOVATION PROXIES*

Shortcomings in the treatment of intangible investment in company accounts imply that there is no statistical collection for innovative activity which abides by the logic used for other economic activity data. As a consequence, analysts rely on innovation proxies derived from administrative and survey data. However, it is still unclear exactly how the different proxies are correlated, and whether the choice amongst different proxies matters. In the light of the innovation measurement, this paper takes another look at the relationship between different proxies of firm innovation. The results show that firm‐level correlations between survey‐based indicators and other proxies for innovation are highest for manufacturing firms and for product innovations.