Contracting and Reporting Conservatism around a Change in Fiduciary Duties*

We exploit an influential 1991 Delaware court ruling to examine simultaneously two types of conservatism that play important roles in resolving creditor–owner agency conflicts: contracting conservatism and reporting conservatism. The ruling expanded managerial fiduciary duties in favor of creditors for Delaware-incorporated firms in the vicinity of insolvency. In those firms, following the ruling, debt contracts are less likely to include conservative adjustments to accounting numbers used for covenant compliance (i.e., contracting conservatism decreases), while public financial reporting becomes more conservative (i.e., reporting conservatism increases). The decrease in contracting conservatism is concentrated in firms that exhibit a greater increase in reporting conservatism, suggesting that reporting conservatism is more cost-effective in resolving agency conflicts. In addition, the substitution effect is more pronounced in firms facing greater business uncertainty and firms with greater board independence.     

Krazy Kimmy's: A Case in Fraud Examination

This two‐part case allows for maximum student engagement through preparation, in‐class discussion, and through a Part B case that is part of the Teaching Note. Through this case, students work to identify possible fraud schemes, plan an investigation, and perform horizontal analysis calculations. Students will learn about the concept of ethical hacking, red flag identification, internal control weaknesses, and investigation considerations for fraud schemes. Further, in‐class planning for next steps and investigation can occur, providing an opportunity for group work and in‐depth learning. This case offers flexibility for instructors in that it can be covered over one class or multiple classes, or can be assigned as an independent or group assignment. This teaching note provides an overview of the case along with guidance for teaching this case.     

Fair Value Measurements of Control Premiums

As the overview of the current state of research within this paper shows, the debate around fair value measurements is far from over. This paper analyzes fair value measurement requirements in a controversial scenario, namely when a control premium exists. The analyses of the paper show that, while measurement rules around control premiums could have a material impact on fair value measurements and the financial statements as a whole, significant fair value measurement issues remain unresolved. The conclusion is that fair value measurements should include or exclude control premiums consistently. It is argued that including control premiums for all fair value measurements is the most faithful representation of the underlying economic phenomenon. This paper contributes to the fair value measurement debate by comparing the merits of alternative fair value measurements for control premiums and highlights an area where researchers, investors, and other users should exercise caution when evaluating financial statements.     

Applying the Principles of Soccer Training to the Design and Delivery of Classes in Introductory Accounting Courses

Accounting instructors face numerous challenges in structuring and teaching accounting classes. This paper describes the experience of redesigning classes in an introductory accounting course to follow the format of team training sessions in the sport of soccer. The soccer format includes six sections: warm‐up, balance/agility/coordination, skill/technique, simplified small game, game, and cooldown. We explain how the activities in each of these sections can be translated into parts of a class session. While adopting this format requires instructors to invest time in preparation and to be flexible and responsive when facilitating classes, informal results indicate that this class format is rewarding for both instructor and students and that it enhances student performance and experience. We suggest that elements of this class format could be successfully adopted for courses in other business subjects, and in nonbusiness disciplines.     

Behaviour‐Based and Outcome‐Based Control Systems: A Meta‐Analytic Study

Sales control systems are instruments used by firms to improve performance and other organizational outcomes. To understand their antecedents and consequences, this paper conducts a meta‐analysis based on 104 studies. The results showed significant relationships between behaviour‐ and outcome‐based control systems and the complexity of the products, bonuses, financial performance, sales innovation, organizational support and satisfaction with supervisors. The outcomes revealed that behaviour‐based control systems were the most effective mechanism in turbulent markets and for determining financial performance. However, outcome‐based control systems were the most efficient instrument for complex products.     

Auditors' Responses to Workload Imbalance and the Impact on Audit Quality*

Using detailed data for fieldwork hours and audit hours by rank from audit engagements in Korea, we examine whether audits conducted under workload imbalance, proxied by busy‐season audits, impair audit quality, and how auditors adjust staff assignments for busy‐season audits. We generally find that busy‐season audits are associated with lower audit quality, and that audit firms reduce the involvement of senior auditors during busy‐season audits. In addition, the greater the involvement of senior auditors and junior auditors, the lesser the deterioration in audit quality. Finally, although there is no increase in interim audits in response to workload imbalance during busy seasons, increasing interim audits can mitigate the negative impact of busy‐season audits on audit quality. Our results are relevant to auditors and regulators, who have expressed concerns about the adverse effects of workload imbalance on audit quality.     

Framing the usefulness of eHRM in talent management: A case study of talent identification in a professional services firm

As talent management evolves from intuitive to evidence‐based decision‐making, the role of electronic Human Resource Management (eHRM) to gather, distribute, and analyze data becomes more critical. However, surprisingly few academic studies investigate the role of technology in talent management. Drawing on a qualitative case study of talent management in a large professional services firm, this paper critically examines how eHRM information technologies are framed as useful within talent identification discourses. The findings reveal two distinct but interrelated sets of processes employed to identify talent and suggest that the perceived usefulness and centrality of eHRM are influenced by how stakeholders shape their understanding of effective talent management. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

模拟月壤在不同堆积状态下的紧实度研究

月球表面覆盖着一层细颗粒粉末状的松散月壤,这必将对月球探测车辆的行驶性能带来影响。研究用于月面力学试验的模拟月壤紧实度,对保证月球探测车辆的正常工作具有重要意义。圆锥指数和容重都可以表征模拟月壤的紧实度,通过不同的分析方法对模拟月壤进行整备,从而得出模拟月壤在不同堆积状态下圆锥指数和容重的变化规律,并且将其结果与真实月壤进行比较,其结果为月球车内场试验提供了标准和依据。     

挠力河流域土地利用变化地形梯度效应分析

研究目的：探讨地形因素对土地利用格局变化的影响,揭示土地利用时空演变的原因、过程及机理,为区域土地利用规划与管理提供决策支持。研究方法：土地利用信息图谱法、地形位分析法和标准差椭圆分析法。研究结果：（1）各地类在地形梯度上表现出明显的层级分布特征,水田、草地、水域和未利用地的地形梯度优势分布区均为低区段,旱地和建设用地为低、中低区段,林地为中低、中高和高区段;（2）土地利用变化以稳定型和前期变化型为主,二者分布较为分散,稳定型主要为低、中低地形梯度的旱地和中、高地形梯度林地,前期变化型主要为低地形梯度的旱地和中地形梯度的林地二者转变为水田,其余图谱类型的比例均在5%以下,分布较为集中,主要表现为低地形梯度耕地内部结构转变。研究结论：在自然、社会和政策因素综合作用下,挠力河流域土地利用变化地形梯度效应显著,未来应加强对低地形梯度耕地和中、高地形梯度林地的规划管理。     

Entrepreneurs and the context of cooperative organizations: A definition of cooperative entrepreneur

We focus on the role of entrepreneurs in organizations that are structured as cooperatives. In considering the similarities and differences among various forms of entrepreneurship, a comprehensive definition of the cooperative entrepreneur is formulated. A model illustrating four variations in the manner in which cooperative entrepreneurship contributes to the creation of cooperatives is also presented. These contributions help to more clearly frame future research and lend visibility to the challenges faced by entrepreneurs in the cooperative context. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.