A profile of European accounting research: evidence from leading research journals

This paper attempts both to advance understanding about the research profile of accounting in Europe and to evaluate the role of The European Accounting Review in the dissemination of Europe-based accounting research. Empirical evidence supporting this investigation was gathered from all the papers published in thirteen top accounting journals during the period 1992 to 1997. Our results show that (i) a vast majority of European contributions to well-regarded journals are authored by scholars affiliated to British higher education organizations. Therefore, the overwhelming dominance of British accounting academics over Europe-based accounting research posits considerable doubts on the extent to which it is correct to form the notion of European accounting research. Our results suggest that such a notion is strongly shaped by one constituency of the European setting, that is, by researchers affiliated to British higher education institutions. (ii) The European Accounting Review has played a significant role in the diffusion of Europe-based accounting research. The journal constitutes the sole venue providing international visibility to scholars of eleven continental European countries. Moreover, The European Accounting Review has published a significant proportion of contributions from scholars of the other fifteen European countries. (iii) There exists limited mobility of non-English written accounting research across European countries. Lastly, the paper posits some suggestions for further work in this area.     

Unraveling determinants of inferred and stated attribute nonattendance: Effects on farmers’ willingness to accept to join agri-environmental schemes

Attribute nonattendance (ANA) has received very little attention in the context of willingness to accept (WTA), although an increasing number of studies analyze the preferences of ecosystem service providers toward incentive-based schemes. We add to the understanding of ANA behavior by analyzing stated and inferred ANA in a choice experiment investigating farmers’ WTA for participating in agri-environmental schemes (AES) in southern Spain. We use mixed logit models, following Hess and Hensher for the inferred ANA approach. Evidence is found of ANA behavior for both stated and inferred approaches, with models accounting for ANA clearly outperforming those that do not account for it; however, we produce no conclusive results as to which ANA approach is best. WTA estimates are only moderately affected, which to some extent is consistent with the low level of non-attendance found for the monetary attribute. Stated and inferred approaches show very similar WTA estimates. Additionally, we investigate sources of observed heterogeneity related to ANA behavior by using a sequence of bivariate probit models for each attribute. Overall, our results hint at a positive relationship between ease of scheme adoption and nonattendance to attributes. However, further research is still needed in this field.     

Protest Responses and Willingness to Accept: Ecosystem Services Providers’ Preferences towards Incentive‐Based Schemes

The identification and treatment of protest responses in stated preference surveys has long been subject to debate. We analyse protest responses while investigating ecosystem services providers’ preferences for incentive‐based schemes. We use a choice experiment for olive farmers’ preferences for agri‐environmental scheme participation in southern Spain. Our two main objectives are: first, to identify and discuss a range of possible motives for protest responses that emerge in a WTA context; second, we analyse the impact on WTA estimates of censoring serial non‐participation linked to protest or high compensation requirements (very high takers). Using a random parameter logit model in WTA space, we find that the inclusion or exclusion of serial non‐participants in the analysis can have a significant impact on marginal and total WTA estimates. Based on the findings, the paper makes recommendations on how to reduce the incidence of protest responses through survey design, regarding the identification of protesters as opposed to very high takers, and regarding the treatment of both groups of respondents for WTA estimation.     

An Extended Set of Risk Neutral Valuation Relationships for the Pricing of Contingent Claims

This article establishes an extended set of risk neutral valuation relationships (RNVR's), assuming a representative agent who has an extended power utility function, of the HARA class of utility functions. The utility function of the representative agent displays either increasing, constant or decreasing proportional risk aversion. Aggregate consumption and the random payoff of the underlying asset are bivariate three-parameter lognormal distributed. As an application of the RNVR's, closed-form solutions for the price of a call written on a stock are derived. These include an extra parameter, the threshold parameter, not contained in the Black-Scholes formula.     

Remittances and child labour in Ghana: Does the gender of the household head matter?

This study investigates the effect of remittance income on child labour and the role of gender in Ghana. Data were sourced from the Ghana Living Standards Survey Round 6. In order to solve the issue of endogeneity, we adopt the instrumental variable approach. The study finds evidence that, irrespective of whoever is the head of the household, the total effect of remittances on child labour is negative. However, the negative effect is much higher for female-headed households. It is recommended that more mobile money transfer outlets be established and the cost of transferring money be reduced to the barest minimum so as to enable households to maximise the benefits of the remittances they receive. Furthermore, financial transfers should be given to female household heads upon the condition of school attendance by their children so as to reduce child labour.     

The concept of heterogeneity and change among the Mandenka

The Mandenka of West Africa see the universe as having evolved according to a principle of heterogeneity. Heterogeneity is seen as mutually beneficial and generative of symbiosis. On the other hand, homogeneity is considered as source of competition and conflict.Individuals differ, and heterogeneity is amplified by interaction between elements. Life develops as a process of incessant change. Each age group is assigned to certain tasks in the community. As the individual goes through several phases of his life, he acquires the ability to see things from different points of view. He also learns to see himself from the point of view of others through formalized channels of “joking relations” that serve as social feedback loops.Westernization is seen as having two basic disadvantages: Its homogenistic philosophy of “unity by similarity” is fallacious because homogeneity creates conflicts, and the principle of specialization brought about by westernization will lock each person into one task and makes him incapable of seeing situations from another person's point of view, accompanied by the homogenistic misconceptions that all persons have the same thought structure.     

Ex ante capital position,changes in the different components of regulatory capital and bank risk

We investigate the impact of changes in capital of European banks on their risk-taking behaviour from 1992 to 2006, a time period covering the Basel I capital requirements. We specifically focus on the initial level and type of regulatory capital banks hold. First, we assume that risk changes depend on banks’ ex ante regulatory capital position. Second, we consider the impact of an increase in each component of regulatory capital on banks’ risk changes. We find that, for highly capitalized, adequately capitalized and strongly undercapitalized banks, an increase in equity or in subordinated debt positively affects risk. Moderately undercapitalized banks tend to invest in less risky assets when their equity ratio increases but not when they improve their capital position by extending hybrid capital or subordinated debt. On the whole, our conclusions support the need to implement more explicit thresholds to classify European banks according to their capital ratios but also to clearly distinguish pure equity from hybrid and subordinated instruments.