Limiting Auditors' Liability: The Potential Consequences

The recent revival of interest in the issue of limiting auditors' liability raises questions about the potential effect of such a limitation on auditors' performance. This paper considers the consequences of limited liability from the perspectives of contracting theory and economic arguments. We examine the potential effect of a reduction in auditors' liability on the standard of care or quality of service they provide, emphasising the "calculus of negligence" concept used by Australian courts. We consider the potential impact of reduced liability on the auditor's decision to shirk responsibilities (the moral hazard problem) and on the value placed on audit services. The analysis shows that placing a statutory cap on auditors' liability has the potential to reduce the effectiveness of bonding mechanisms; provide an avenue for divergent behaviour; lower the level of care provided by auditors; and decrease the value of audit services.     

Marketing firm performance: When does marketing lead to financial gains?

The research investigated whether economic context and prior financial reinforcement/punishment moderate the effectiveness of marketing behavior in generating gains for the firm. An experiment with a longitudinal design was conducted using 1,759 companies from 2000 to 2017. The results demonstrate that marketing is effective in gaining market share when the country's economy is growing. In contrast, it increases return on assets and Tobin's Q when the country's economy is in recession, this increase being maximized when the company was financially reinforced. The study helps explain the circumstances in which marketing activities boost firms' financial gains.     

Presentation Format and Financial Literacy: Accessibility and Assessability of Retirement Savings Statements

While increased financial literacy may improve individual retirement savings decisions, modifying the placement of key information in retirement savings statements can produce further improvements. We examined the extent to which placement of information and financial literacy affected the accessibility of information for individuals and assisted in their financial decision making. We also disaggregated financial literacy into numeracy and knowledge to identify key drivers. Using an experimental design, we find the increased salience resulting from modifying the presentation format improved participants' ability to locate important information (accessibility) and to evaluate the relative performance of funds (assessability). However, the incremental benefits of placement are only found for individuals with moderate numeracy skills. We conclude there is value accruing from financial literacy programs as advocated by regulators, but suggest additional benefits may be reaped from focusing on numeracy skills and from using presentation formats that improve information accessibility and assessability.     

Decision Usefulness of Cash and Accrual Information: Public Sector Managers’ Perceptions

This study examines the usefulness of accrual accounting information for internal decision‐making contexts in the Western Australian public sector. Based on questionnaire responses of public sector managers, it was found that accrual accounting is perceived to be more useful than cash accounting in 16 of the 19 decision situations. These results suggest that the perceived usefulness of the accrual accounting system has improved with the passage of time. It may well be that perceptions of the usefulness of information derived from an accounting system will change over time as users gain familiarity and experience with a system.     

The potential of and obstacles to agriculture in the Southern African Development Community

This article focuses on the potential of and obstacles to agriculture in the Southern Afri can Development Community. The potential for horizontal and vertical expansion of agri cultural production is discussed Specific attention is given to problems of data availabil ity, macroeconomic policy and trade in the region, inadequate research, technology de velopment and extension, human capital and land tenure. The article integrates the con tributions of an African Development Bank study, regional policy and macroeconomic programmes, international studies on potential population‐supporting capacity and re gional rural and agricultural programmes.     

Consumer perceptions of risks of chemical and microbiological contaminants associated with food chains: a cross-national study

The development and implementation of effective systems to identify vulnerabilities in food chains to chemical and microbiological contaminants must take account of consumer priorities and preferences. The present investigation attempted to understand consumer perceptions associated with chemical and microbiological contaminants in four specific food chains (drinking water, farmed salmon, chicken and milk powder). To this end, ten focus group discussions were held in five different countries (Poland, Ireland, the Netherlands, France and Brazil). Consumers expressed higher concerns about chemical, as compared with microbial, contaminants. Chemical contaminants were more strongly associated with the potential for severe consequences, long-term effects and lack of personal control. Traceability was considered by consumers as a useful tool that offers the potential to improve consumer confidence in food safety.     

数据隐私权之战--欧盟不依不饶美国委屈妥协

意大利的水城威尼斯,向来以古朴静谧而名扬世界,但不久前,这里却围绕国际隐私标准制定而硝烟弥漫.     

Modularity, component outsourcing, and inter-firm learning

Modularization of product architectures is a strategy for managing complex design activities and production systems, and associated supply chain issues. It has wide-reaching implications, from design engineering to business strategy. With standardized interface specifications, component outsourcing is possible, both with respect to the division of tasks in functional specification and detailed engineering of a product architecture. However, failure at the system level could still take place if interface compatibility issues of the outsourced component with the rest of the system are not understood. Outsourcing creates a certain degree of supplier-buyer interdependence and possibilities for inter-firm learning. A study of Chrysler Jeeps WIPERs suggested that learning-by-failure from one product architecture cultivated closer cooperation between the supplier and Chrysler to solve technical problems as well as to be innovative in searching for the best technological solutions for future product architecture designs.