The joint effect of supervisor influence and investor perspective: unintended consequences on assessing accounting estimates

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lei Dong ◽  
Lei Wang ◽  
Wen-Wen Chien
Keyword(s):  
Perceived Risk ◽  
Lower Risk ◽  
Design Methodology ◽  
Joint Effect ◽  
Unintended Consequences ◽  
Unintended Consequence ◽  
Content Type ◽  
Early Evidence ◽  
Accounting Estimates

Purpose The purpose of this paper is to examine the joint effect of supervisor influence and investor perspective on novice auditors’ assessments of accounting estimates. Design/methodology/approach The experiment used a 2 × 2 between-subjects design, randomly assigning proxies of novice auditors among four conditions. The authors manipulated the supervisor’s level of emphasis on evidence that suggests accounting estimate adjustment and whether auditors are prompted to take an investor perspective. Participants were asked to assess the misstatement risk of the allowance for doubtful accounts of the client company. Findings The authors find that auditors assign a higher (lower) risk of misstatement when their supervisor places high (low) emphasis on evidence suggesting accounting adjustment. The authors also find that contrary to the belief that taking the perspective of investors could enhance objectivity and independence, investor perspective leads to a decrease (rather than an increase) in auditors’ perceived risk of misstatement when the supervisor places low emphasis on evidence suggesting accounting adjustment. Originality/value This study provides early evidence on the efficacy of investor perspective and is one of the first to document an unintended consequence of asking auditors to take an investor perspective.

scholarly journals Trimming the social body

2017 ◽  
Vol 6 (2) ◽  
pp. 68-86 ◽  
Author(s):  
Jakob Krause-Jensen
Keyword(s):  
Social Workers ◽  
Cultural Context ◽  
Design Methodology ◽  
Unintended Consequences ◽  
Social Body ◽  
Content Type ◽  
The Public ◽  
Ethnographic Fieldwork ◽  
The Social ◽  
Management Concept

Purpose The purpose of this paper is to analyse through ethnographic fieldwork the social and cultural context and (unintended) consequences of introducing a management concept from the private sector (LEAN) into the public sector. Design/methodology/approach Ethnographic fieldwork combined with reading of reports and material. Findings The major findings are: first, Lean is seen in a cultural context, it is argued that the persuasiveness of Lean depends on building a metaphorical connection between organizational aims and individual experiences and bodily ideals; second, Lean purports to be a win-win game and road to eliminating “waste” through worker participation, empowerment and enthusiasm. The research points to the contrary. Lean was met with scepticism and was seen by the social workers as a waste of time. Originality/value As demonstrated in the paper, the vast majority of research published about Lean is hortatory in nature. It is recipe books trying to convince readers of the benefits of introducing Lean. This paper, on the contrary, attempts an open ethnographic exploration of the Lean process and its social and cultural ramifications.

Trust, risk and transaction intention in consumer-to-consumer e-marketplaces

2019 ◽  
Vol 119 (2) ◽  
pp. 331-350 ◽  
Author(s):  
Kangning Wei ◽  
Yuzhu Li ◽  
Yong Zha ◽  
Jing Ma
Keyword(s):  
Qualitative Study ◽  
Perceived Risk ◽  
Design Methodology ◽  
Future Research ◽  
Trust Building ◽  
Content Type ◽  
Online Transactions ◽  
Starting Point ◽  
Different Types ◽  
Practical Implications

Purpose The purpose of this paper is to compare the relative impacts of trust and risk on individual’s transaction intention in consumer-to-consumer (C2C) e-marketplaces from both the buyers’ and the sellers’ perspectives. Design/methodology/approach Two surveys were used to collect data regarding buyers’ and sellers’ perceptions and transaction intentions at a typical C2C e-marketplace. Partial least squares was used to analyze the data. A complementary qualitative study was conducted to triangulate the results from the quantitative study. Findings Institution-based trust (IBT) exerts a stronger influence on transaction intentions for buyers than for sellers. Sellers perceive a stronger impact of trust in intermediary (TII) than buyers on transaction intentions. The impacts of perceived risk in transactions are not different between buyers and sellers. Furthermore, IBT mediates the impacts of TII and perceived risk on transaction intentions for buyers. Research limitations/implications The results indicate that the impacts of trust and risk on transaction intention in e-marketplaces do differ between buyers and sellers. This suggests a need to further investigate the buyer–seller difference in online transactions. Practical implications Intermediaries need to focus on different types of trust-building mechanisms when attracting buyers and sellers to make transactions in the e-marketplace. Originality/value C2C e-marketplaces cannot survive without participation from both buyers and sellers. Most prior research is conducted from the buyers’ perspective. This research sets a starting point for future research to further explore the differences between buyers’ and sellers’ behavior in C2C e-commerce environments.

Individual investors’ sophistication and expectations of risk and return

2019 ◽  
Vol 11 (1) ◽  
pp. 2-22 ◽  
Author(s):  
Oscar Stålnacke
Keyword(s):  
Lower Risk ◽  
Design Methodology ◽  
Individual Investors ◽  
Risk And Return ◽  
Content Type ◽  
Financial Decisions ◽  
Underlying Mechanisms ◽  
The Relationship ◽  
Linear Regressions ◽  
Survey Measure

Purpose The purpose of this paper is to investigate the relationship between individual investors’ level of sophistication and their expectations of risk and return in the stock market. Design/methodology/approach The author combines survey and registry data on individual investors in Sweden to obtain 11 sophistication proxies that previous research has related to individuals’ financial decisions. These proxies are related to a survey measure regarding individual investors’ expectations of risk and return in an index fund using linear regressions. Findings The findings in this paper indicate that sophisticated investors have lower risk and higher return expectations that are closer to objective measures than those of less-sophisticated investors. Originality/value These results are important, since they enhance the understanding of the underlying mechanisms through which sophistication can influence financial decisions.

scholarly journals Socio-economic sourcing: benefits of small business set-asides in public procurement

2018 ◽  
Vol 18 (3) ◽  
pp. 217-239 ◽  
Author(s):  
Timothy Hawkins ◽  
Michael Gravier ◽  
Wesley S. Randall
Keyword(s):  
Small Business ◽  
Transaction Costs ◽  
Government Spending ◽  
Small Businesses ◽  
Perceived Risk ◽  
Design Methodology ◽  
Public Procurement ◽  
Content Type ◽  
Source Selection ◽  
Selection Processes

Purpose Small businesses are critical to economic health and encouraged in government spending by set-asides – annual small business sourcing goals that often are not attained. Little research has explored the negative and risky stigmas associated with small business sourcing. Design/methodology/approach This research explores reduced transaction costs of small business sourcing to government buyers. A survey of 350 government source selections reveals lower transaction costs derived from lower perceived risk of receiving a bid protest and via more efficient source selection processes. Findings Contrary to common bias, the performance level of small businesses is no less than that of large business. Thus, small businesses engender lower transaction costs for correcting supplier’s performance. On the basis of these findings, managerial and theoretical implications are discussed.

Indirectly productive entrepreneurship

2016 ◽  
Vol 5 (2) ◽  
pp. 161-175 ◽  
Author(s):  
Alexandre Padilla ◽  
Nicolás Cachanosky
Keyword(s):  
New York ◽  
Cell Phone ◽  
Design Methodology ◽  
Government Regulation ◽  
Unintended Consequences ◽  
Entrepreneurial Activity ◽  
Government Regulations ◽  
Content Type ◽  
Market Participants ◽  
Productive Activities

Purpose – Since Baumol (1990), the economic literature has distinguished between two broad categories of entrepreneurship: productive and unproductive. The purpose of this paper is to introduce another subcategory: indirectly productive entrepreneurship. Sometimes, profit-seeking entrepreneurs allocate their talents to indirectly productive activities to mitigate the new costs market participants endure as a result of a government regulation. The resources used to mitigate these costs must be diverted from other uses. Design/methodology/approach – This paper uses the example of cell phone storage outside New York City’s high schools to illustrate an indirectly productive entrepreneurial activity that mitigates the inefficiencies or costs created by a regulation. These costs and the resulting entrepreneurship would not have arisen absent the regulation. Findings – These profit opportunities do not result from market entrepreneurial errors or successes but emerge from inefficiencies or unintended consequences produced by government regulations. When evaluating such entrepreneurship, the question is whether such regulation is desirable from an efficiency viewpoint because such entrepreneurship, while making such regulation less inefficient or less costly, diverts resources from other lines of production. Originality/value – This paper identifies a new category of entrepreneurship: indirectly productive entrepreneurship. This paper also shows that government regulation often deters productive entrepreneurship. However, under some circumstances, regulation can indirectly encourage productive entrepreneurship by creating artificial profit opportunities that would not have existed otherwise.

scholarly journals Me, myself and I

2018 ◽  
Vol 38 (7) ◽  
pp. 1519-1539 ◽  
Author(s):  
Torsten Steinbach ◽  
Carl Marcus Wallenburg ◽  
Kostas Selviaridis
Keyword(s):  
Structural Equation Modeling ◽  
Service Provider ◽  
Structural Equation ◽  
Design Methodology ◽  
Unintended Consequences ◽  
Customer Behavior ◽  
Equation Modeling ◽  
Service Outsourcing ◽  
Content Type

Purpose This research focuses on the role of customer behavior in service outsourcing relationships that are governed by outcome-oriented contracts. The purpose of this paper is to explain how non-collaborative customer behavior impedes the effectiveness of outcome-oriented contracts to align the goals and incentives of the customer and service provider, and leads to service provider opportunism. Design/methodology/approach Nine hypotheses are developed regarding customer behavior and the reaction of the service provider to this. These are tested using structural equation modeling with data from 213 service outsourcing relationships. Findings Outcome-orientated contracts in service outsourcing may have unintended consequences because they create value attribution ambiguity. This ambiguity induces non-collaborative customer behavior, which, in turn, results in service provider opportunism. This reveals a paradox, where customer behavior aimed at curbing service provider opportunism instead induces such opportunism. This chain of effects can be counteracted by increased outcome attributability, which reduces the ambiguity and, thus, the motivation for non-collaborative customer behavior. Originality/value This research extends the existing literature by stressing that non-collaborative customer behavior is a key reason why outcome-oriented contracts fail in effectively governing outsourcing relationships, and that this can be counteracted by increased outcome attributability.

Making culture visible: reflections on corporate ethnography

2015 ◽  
Vol 4 (1) ◽  
pp. 4-27 ◽  
Author(s):  
Anne-Laure Fayard ◽  
John Van Maanen
Keyword(s):  
North America ◽  
Design Methodology ◽  
Participant Observation ◽  
Unintended Consequences ◽  
Multinational Company ◽  
Content Type ◽  
Written Text ◽  
Emic And Etic ◽  
Practical Implications ◽  
Over Time

Purpose – The purpose of this paper is to describe and reflect on the experience as corporate ethnographers working in (and for) a large, multinational company with a remit to study and articulate “the culture of the firm.” Design/methodology/approach – The research relied heavily on interviews and some (participant) observation carried out periodically – in North America, Europe and Asia – over an eight-year period. Findings – The authors discuss how the studies were produced, received, and occasionally acted on in the firm and the realization over time of the performativity of the work as both expressive and constitutive of firm’s culture. Research limitations/implications – The increasing entanglement in the organization raises questions regarding emic and etic perspectives and the possibility (or impossibility) of “enduring detachment” or “going native” and the associated, often unintended consequences of being both outsiders and insiders. Practical implications – The authors start with the premise that ethnography is about producing a written text and conclude by arguing that ethnography is not fully realized until the writing is read. Social implications – The ethnographic reports, when read by those in the company, made visible a version of Trifecta culture that was interpreted, framed and otherwise responded to in multiple ways by members of the organization. Originality/value – Corporate ethnography is a growing pursuit undertaken by those inside and outside firms. This paper focusses on how and in what ways corporate ethnography sponsored by and written for those in the company shifts the positioning of the ethnographer in the field, the kinds of texts they produce, and the meanings that readers take away from such texts.

Welfare effects of limiting bank loans

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arup Bose ◽  
Debashis Pal ◽  
David Sappington
Keyword(s):  
Design Methodology ◽  
Banking Sector ◽  
Unintended Consequences ◽  
Bank Loans ◽  
Loan Portfolio ◽  
Content Type ◽  
The Us ◽  
Practical Implications ◽  
Careful Thought

Purpose This paper examines the effects of limiting the number of loans a bank can issue, reflecting a policy recently implemented by the US Federal Reserve. Design/methodology/approach This paper does so in a streamlined model of the banking sector. Findings This paper finds that a binding limit on loans can enhance welfare by motivating the bank to reduce the number of socially unproductive loans it makes. However, the limit can sometimes reduce welfare by inducing a reduction in the number of socially productive loans the bank issues, the quality of the bank’s loan portfolio, and/or the accuracy with which the bank screens loan opportunities. Practical implications The research demonstrates that limits on the loans a bank issues can have subtle and unintended consequences. Consequently, careful thought is warranted before such limits are imposed. Originality/value To our knowledge, the existing literature does not provide guidance on the merits of such loan restrictions.

The effect of power and gender on technology acceptance

2014 ◽  
Vol 5 (3) ◽  
pp. 299-314 ◽  
Author(s):  
Lu Zhang ◽  
Peter Nyheim ◽  
Anna S. Mattila
Keyword(s):  
Experimental Design ◽  
Gender Difference ◽  
Technology Acceptance ◽  
High Power ◽  
Behavioral Intentions ◽  
Design Methodology ◽  
Joint Effect ◽  
Gender Effect ◽  
Content Type ◽  
And Gender

Purpose – This paper aims to examine the joint effect of power and gender on individuals’ perceptions and evaluations of information systems (IS), and their behavioral intentions of technology acceptance. Design/methodology/approach – This study uses a 2 (powerful vs powerless) × 2 (female vs male) between-subject experimental design. A total of 128 subjects participated in the experiment. Findings – The results suggest that there is a significant gender difference in terms of technology acceptance in the high-power condition. Further, such a gender difference is attenuated in the low-power condition. Specifically, when primed with the feeling of powerful, male users (vs female users) have higher computer self-efficacy and rate the IS as easier to use and more enjoyable. However, when the feeling of powerless was elicited, the effect of gender on technology acceptance disappeared. Originality/value – The gender effect on technology acceptance has been widely studied. The current research extends the literature by considering the moderating effect of power on such a gender effect.

Corruption and perceived risk: a case of the 2011 Fukushima disaster

2014 ◽  
Vol 41 (11) ◽  
pp. 1156-1170 ◽  
Author(s):  
Eiji Yamamura
Keyword(s):  
Perceived Risk ◽  
Design Methodology ◽  
Accurate Information ◽  
Nuclear Accidents ◽  
Endogeneity Bias ◽  
Content Type ◽  
Nuclear Disaster ◽  
Country Analysis ◽  
Cross Country ◽  
Fukushima Disaster

Purpose – Japan's 2011 natural disasters were accompanied by a devastating nuclear disaster in Fukushima. This paper used cross-country data obtained immediately after the Japanese disaster to explore how, and the extent to which, corruption affects the perception of citizens regarding the risk of nuclear accidents. The paper aims to discuss these issues. Design/methodology/approach – Endogeneity bias was controlled for using instrumental variables when the author conducted regression estimation. Findings – The cross-country analysis showed that citizens in less corrupt countries tend to perceive there to be a lower possibility of nuclear accident. Originality/value – The finding made it evident that transparency of government enables citizens to access accurate information, reducing information asymmetry between citizens and government.

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