Group participative budgeting: The effect of information asymmetry on group work standards

The complexity of many organizational tasks requires perspectives, expertise, and talents that are often not found in a single individual. Organizations have therefore been placing employees into groups, assigning them to tasks they would formally have undertaken individually. The use of these groups, known as workgroups, has become an important strategy for managing this increased complexity. Empirical research on participative budgeting however has been limited almost exclusively to individuals. This dissertation empirically examines the effect of the information that management and workgroups have about group members' performance capabilities, on the work standards that workgroups select during the participative budgeting process. ^ A laboratory experiment was conducted in which two hundred and forty undergraduate business students were randomly assigned to three-member groups. The study provides empirical evidence which suggests that when management is unaware of group members' performance capabilities, workgroups select higher work standards and have higher performance levels than when management is aware of their performance capabilities. ^

Analysis and comparison of the moral development of students required to graduate with an ethics course

Accounting students become practitioners facing ethical decision-making challenges that can be subject to various interpretations; hence, the profession is concerned with the appropriateness of their decisions. Moral development of these students has implications for a profession under legal challenges, negative publicity, and government scrutiny. Accounting students' moral development has been studied by examining their responses to moral questions in Rest's Defining Issues Test (DIT), their professional attitudes on Hall's Professionalism Scale Dimensions, and their ethical orientation-based professional commitment and ethical sensitivity. This study extended research in accounting ethics and moral development by examining students in a college where an ethics course is a requirement for graduation. ^ Knowledge of differences in the moral development of accounting students may alert practitioners and educators to potential problems resulting from a lack of ethical understanding as measured by moral development levels. If student moral development levels differ by major, and accounting majors have lower levels than other students, the conclusion may be that this difference is a causative factor for the alleged acts of malfeasance in the profession that may result in malpractice suits. ^ The current study compared 205 accounting, business, and nonbusiness students from a private university. In addition to academic major and completion of an ethics course, the other independent variable was academic level. Gender and age were tested as control variables and Rest's DIT score was the dependent variable. The primary analysis was a 2 x 3 x 3 ANOVA with post hoc tests for results with significant p-value of less than 0.05. ^ The results of this study reveal that students who take an ethics course appear to have a higher level of moral development (p = 0.013), as measured by the (DIT), than students at the same academic level who have not taken an ethics course. In addition, a statistically significant difference (p = 0.034) exists between freshmen who took an ethics class and juniors who did not take an ethics class. For every analysis except one, the lower class year with an ethics class had a higher level of moral development than the higher class year without an ethics class. These results appear to show that ethics education in particular has a greater effect on the level of moral development than education in general. Findings based on the gender specific analyses appear to show that males and females respond differently to the effects of taking an ethics class. The male students do not appear to increase their moral development level after taking an ethics course (p = 0.693) but male levels of moral development differ significantly (p = 0.003) by major. Female levels of moral development appear to increase after taking an ethics course (p = 0.002). However, they do not differ according to major (p = 0.097). ^ These findings indicate that accounting students should be required to have a class in ethics as part of their college curriculum. Students with an ethics class have a significantly higher level of moral development. The challenges facing the profession at the current time indicate that public confidence in the reports of client corporations has eroded and one way to restore this confidence could be to require ethics training of future accountants. ^

Gender differences in audit committees

Issues related to the composition of audit committees have attracted significant interest from legislators and regulators in recent years. In my dissertation, I examine one overlooked component of audit committee composition – namely, the presence of female directors on the audit committee. I empirically test to see if there are any differences in the functioning of audit committee when there is at least one female director on the audit committee. My dissertation examines three issues: audit committee diligence, audit pricing and earnings management. ^ The absence of females on corporate boards has become the focus of legislators in some countries. Prior research, in a variety of contexts, suggests that women are in general more conservative in their judgments and decisions. The first part of my dissertation empirically shows that the presence of at least one female director on the audit committee makes the audit committee have more meetings. The second essay empirically examines if there is a positive association between audit fees and the presence of female directors in the audit committee. I posit that having a female director on the audit committee will result in higher audit fees. I find no significant evidence to show that audit fees are higher when there is a female director on the audit committee. The third part of my dissertation empirically examines if there an association between the presence of a female director on the audit committee and earnings management. I find no significant evidence to show that the presence of female directors on the audit committee constrains earnings management. Overall, the results suggest that having a female on the audit committee changes the form – if not the substance – of audit committee functioning. ^

Executive characteristics and going concern opinions

Auditors have come under increased scrutiny over the past several years about the growing number of client failures without a warning in the form of a going-concern modified (GCM) audit opinion. Statement on Auditing Standards No. 59 requires auditors to evaluate whether substantial doubt exists on an audit client’s ability to continue as a going concern (AICPA 1988). My dissertation consists of three essays. ^ For the three essays, I empirically investigate issues related to GCM audit opinions and executive characteristics. Specifically, I examine the impact of executive tenure and gender on the issuance of GCM audit opinions. In addition, my dissertation addresses two other unique issues. Given that the Sarbanes-Oxley Act represents an important watershed event in the history and regulation of the accounting profession, I provide evidence about auditors’ propensities to issue GCM audit opinions in the post-SOX period. Further, I also expand extant research in this area by using multiple outcomes and thus go beyond the traditional use of bankruptcy alone as a tool to evaluate auditors’ GCM opinion. ^ The results indicate that, after controlling for other financial characteristics, GCM audit opinions are significantly more likely for firms that have CFOs with short tenure and/or for firms with a female CFO or CEO. However, when examining the association between executive characteristics and two types of reporting errors, the results vary with the type of reporting error. Overall, the results provide evidence that executive characteristics are associated with auditors' reporting decisions. ^

Market valuation of environmental performance

This research investigated the general association between corporate environmental performance and the firms’ annual returns independent of any particular environmental event. The association analysis was based on the most recent environmental data for the years 2006, 2007, and 2008. The results indicated that while some environmental variables were significantly associated with firms’ returns, the majority were not. The results also indicated that environmental concerns were more likely to be associated with increase in the firm value than were environmental strengths; however, there were no mean differences between firms whose environmental performance increased as compared with those whose performance deteriorated. Overall, the results provided support for the perspective that environmental strengths require firm expenditures that place additional financial burdens on firms, resulting in lower stock returns.^

Three essays on corporate governance and meeting-beating or missing analyst forecasts

The beginning of the 21st century was plagued with unprecedented instances of corporate fraud. In an attempt to address apparent non-existent or “broken” corporate governance policies, sweeping measures of financial reporting reform ensued, having specific requirements relating to the composition of audit committees, the interaction between audit committees and external auditors, and procedures concerning auditors’ assessment of client risk. The purpose of my dissertation is to advance knowledge about “good” corporate governance by examining the association between meeting-or-beating analyst forecasts and audit fees, audit committee compensation, and audit committee tenure and “busyness”. Using regression analysis, I found the following: (1) the frequency of meeting-or-just beating (just missing) analyst forecasts is negatively (positively) associated with audit fees, (2) the extent by which a firm exceeds analysts’ forecasts is positively (negatively) associated with audit committee compensation that is predominately equity-based (cash-based), and (3) the likelihood of repeatedly meeting-or-just beating analyst forecasts is positively associated with audit committee tenure and “busyness”. These results suggest that auditors consider clients who frequently meet-or-just beat forecasts as being less “risky”, and clients that frequently just miss as being more “risky”. The results also imply that cash-based director compensation is more successful in preserving the effectiveness of the audit committee’s financial reporting oversight role, that equity-based compensation motivates independent audit committee directors to focus on short-term performance thereby aligning their interests with management, and that audit committee director tenure and the degree of director “busyness” can affect an audit committee member’s effectiveness in providing financial reporting oversight. Collectively, my dissertation provides additional insights regarding corporate governance practices and informs policy-makers for future relevant decisions.^

The impact of *experience, industry characteristics, and individual differences on audit risk and the extent of testing decisions: An empirical investigation

The first part of the study examined the effect of industry risk changes on perceived audit risk at the financial statement level and whether these changes depended on individual differences such as experience and tolerance for ambiguity. ^ Forty-eight auditors from two offices of one of the “Big 5” CPA firms participated in this study. The ANOVA results supported the effect of industry risk in the assessment of audit risk at the financial statement level. Higher industry risk was associated with higher perceived audit risk. Tolerance for ambiguity was also significant in explaining the changes in the assessment of audit risk. Auditors with a high tolerance for ambiguity perceived lower audit risk than auditors with a low tolerance for ambiguity. Although ANOVA results did not find experience to be significant, a t-test for experience showed it to be marginally significant and inversely related to audit risk. ^ The second part of this study examined whether differences in perceived audit risk at the financial statement level altered the extent, nature or timing of the planned auditing procedures. The results of the MANOVA suggested an overall audit risk effect at the financial statement level. Perceived audit risk was significant in explaining the variation in the number of hours planned for the total cycle and the number of hours p1anned for the tests of balances and details. Perceived audit risk was not significant in determining the analytical review procedures planned, but assessed inherent risk at the cycle level was significant. The higher the inherent risk the more analytical procedures were planned. Perceived audit risk was not significant in explaining the timing of the procedures, but individual differences were significant. The results showed that experienced auditors and those with a high tolerance for ambiguity were less likely to postpone the performance of the interim procedures or the time at which the majority of audit work would be done. ^

Optimal Reporting Systems With Investor Information Acquisition

This paper analyzes a manager's optimal ex-ante reporting system using a Bayesian persuasion approach (Kamenica and Gentzkow (2011)) in a setting where investors affect cash flows through their decision to finance the firm's investment opportunities, possibly assisted by the costly acquisition of additional information (inspection). I examine how the informativeness and the bias of the optimal system are determined by investors' inspection cost, the degree of incentive alignment between the manager and the investor, and the prior belief that the project is profitable. I find that a mis-aligned manager's system is informative

only when the market prior is pessimistic and is always positively biased; this bias decreases as investors' inspection cost decreases. In contrast, a well-aligned manager's system is fully revealing when investors' inspection cost is high, and is counter-cyclical to the market belief when the inspection cost is low: It is positively (negatively) biased when the market belief is pessimistic (optimistic). Furthermore, I explore the extent to which the results generalize to a case with managerial manipulation and discuss the implications for investment efficiency. Overall, the analysis describes the complex interactions among determinants of firm disclosures and governance, and offers explanations for the mixed empirical results in this area.

Avaliação da eficiência dos programas de pós-graduação acadêmicos em Administração, Contabilidade e Turismo

The Triennial Evaluation of Coordination for the Improvement of Higher Education Personnel (CAPES) is made according to several indicators, divided into several issues and items, and their weights. In these it is evident the importance of scientific periodicals. This study aims to evaluate the relative efficiency of post-graduate students in Business Administration, Accounting and tourism evaluated by CAPES in Brazil. The methodology used the data envelopment analysis - DEA (Data Envelopment Analysis). The data were obtained from the site and organized by the CAPES Qualis score. The analysis was performed by the DEA variable returns to scale, product-oriented (BCC-O), with data from the three-year periods 2004-2006 and 2007-2009. Among the main results are the average increase significantly the relative efficiency of the programs in the period 2007-2009 compared to 2004-2006 period, the highest average efficiency of programs linked to public institutions in relation to private, doctoral programs with the present average efficiency sharply higher than those only with masters, and senior programs in general were more efficient. There is also moderate and significant correlation between the efficiency scores and concepts CAPES. The Malmquist index analysis showed that more than 85% of programs had increased productivity. It is noteworthy that the main effect that influences the increase of the Malmquist index is the displacement of the border (Frontier-shift)

Avaliação da eficiência dos programas de pós-graduação acadêmicos em Administração, Contabilidade e Turismo

The Triennial Evaluation of Coordination for the Improvement of Higher Education Personnel (CAPES) is made according to several indicators, divided into several issues and items, and their weights. In these it is evident the importance of scientific periodicals. This study aims to evaluate the relative efficiency of post-graduate students in Business Administration, Accounting and tourism evaluated by CAPES in Brazil. The methodology used the data envelopment analysis - DEA (Data Envelopment Analysis). The data were obtained from the site and organized by the CAPES Qualis score. The analysis was performed by the DEA variable returns to scale, product-oriented (BCC-O), with data from the three-year periods 2004-2006 and 2007-2009. Among the main results are the average increase significantly the relative efficiency of the programs in the period 2007-2009 compared to 2004-2006 period, the highest average efficiency of programs linked to public institutions in relation to private, doctoral programs with the present average efficiency sharply higher than those only with masters, and senior programs in general were more efficient. There is also moderate and significant correlation between the efficiency scores and concepts CAPES. The Malmquist index analysis showed that more than 85% of programs had increased productivity. It is noteworthy that the main effect that influences the increase of the Malmquist index is the displacement of the border (Frontier-shift)

L'Intégration d'un Module d'Étude Internet Dans la Classe de Comptabilité: Perceptions des Élèves et les Résultats Académiques

Implemented in the context of Business Administration students enrolled in a college level three year technology program, this research investigated students’ perceptions and academic results concurrent with the implementation of an online web module designed to facilitate student self-study. The students involved in this research were enrolled in a program that, while offering a broad education in business disciplines, specialized in the field of accounting. As a result, students were enrolled in academically rigorous accounting courses in each of the six semesters of the program. The weighting of these accounting courses imposes a significant self-study component – typically matching or exceeding the time spent in class. In this context many of the students enrolled in the Business Administration Program have faced difficulties completing the self-study component of the course effectively as demonstrated in low homework completion rates, low homework grade averages and ultimately low success rates in the courses. In an attempt to address this situation this research studied the implementation of a web-based self-study module. Through this module students could access a number of learning tools that were designed to facilitate the self-study process under the premise that more effective self-study learning tools will help remove obstacles and provide more timely confirmation of learning during student self-study efforts. This research collected data from a single cohort of students drawn from the first three sequential accounting courses of the Business Administration Program. The web-based self-study module was implemented in the third of the three sequential accounting courses. The first two of these courses implemented a traditional manual self-study environment. Data collected from the three accounting courses included homework completion rates, homework, exam and final grades for the respective courses. In addition the web-study module allowed the automatic reporting of student usage of a number of specific online learning tools. To complement the academic data, students were surveyed to gain insight into their perceptions of the effectiveness of the web-based system. The research provided a number of interesting insights. First among these was a confirmation of the importance of the self-study process in the academic achievement of the learners. Regardless of the self-study environment, manual or web-enhanced, a significant positive correlation existed between the students’ self-study results, demonstrated in both homework completion rates and homework averages and the corresponding final grades. These results confirm the importance of self-study found generally in the prevailing academic literature regarding students enrolled in higher education. In addition, the web-enhanced learning environment implemented during the third accounting course coincided with significantly higher homework completion rates and corresponding homework averages: homework completion rates in particular increased from a combined average of 63% in the first two accounting courses to 93% in the web-enhanced context of the third accounting course. Moreover, the homework completion rates of the web-enhanced course were evenly distributed across the cohort of students. A quartile-based analysis was subsequently completed. Quartiles were constructed by ranking the students according to their combined average homework completion rates from the first two manual self-study courses, Accounting I and II. The quartile-based homework completion rates for the manual self-study courses Accounting I and II were subsequently compared to the results these same quartiles of students achieved in the web-based self-study within Accounting III. While the first two courses demonstrated significantly uneven homework completion rates across the quartiles ranging from 31% to 91% homework completion rates, the differences among the four quartiles within the web-enhanced module, with an average homework completion rate of 93%, were statistically insignificant. Congruent with the positive academic results observed in the third, web-enhanced course, through the corresponding survey, students expressed a strong attitude in favor of the online self-study environment. This research was designed to add to the existing research that studies the implementation of learning in an online setting. Specifically, the research was designed to explore a middle ground of online learning – a web-enhanced course – a context that supplements the classroom experience rather than replacing it. The web-enhanced accounting course demonstrated impressive favorable results, both academically and in terms of students' perception of the system; these results suggest that a web-enhanced environment can provide learning tools that facilitate the self-study process while providing a structured learning environment that can help developing learners reach their potential.

Psychology of personnel in business and industry.

Includes bibliographies.

Industrial psychology.

Mode of access: Internet.

Development of ``HealthServe'': A measure of customer service orientation in healthcare

An assessment tool designed to measure a customer service orientation among RN's and LPN's was developed using a content-oriented approach. Critical incidents were first developed by asking two samples of healthcare managers (n = 52 and 25) to identify various customer-contact situations. The critical incidents were then used to formulate a 121-item instrument. Patient-contact workers from 3 hospitals (n = 102) completed the instrument along with the NEO-FFI, a measure of the Big Five personality factors. Concurrently, managers completed a performance evaluation scale on the employees participating in the study in order to determine the predictive validity of the instrument.^ Through a criterion-keying approach, the instrument was scaled down to 38 items. The correlation between HealthServe and the supervisory ratings of performance evaluation data supported the instrument's criterion-related validity (r =.66, p $<$.0001). Incremental validity of HealthServe over the Big Five was found with HealthServe accounting for 46% of the variance.^ The NEO-FFI was used to assess the correlation between personality traits and HealthServe. A factor analysis of HealthServe suggested 4 factors which were correlated with the NEO-FFI scores. Results indicated that HealthServe was related to Extraversion, Openness to Experience, Agreeableness, Conscientiousness and negatively related to Neuroticism.^ The benefits of the test construction procedure used here over the use of broad-based measures of personality were discussed as well as the limitations of using a concurrent validation strategy. Recommendations for future studies were provided. ^

Construcción y validación del cuestionario G_Clinic para medir la satisfacción laboral en profesionales de enfermería de las unidades de gestión clínica.

BACKGROUND Job satisfaction of nurses is a determinant factor in the quality and organizational adaptation of clinical management models in the current socio-economic context. The aim of this study was to construct and validate a questionnaire to measure job satisfaction of nurses in the Clinical Management Units in the Andalusian Public Health System. METHODS Clinimetric and cross-sectional study with a sample of 314 nurses of two university hospitals from Seville. Nurses were surveyed in 2011, from March to June. We used the Font Roja questionnaire adapted to our study variables. We performed analyses of correlations, reliability and construct validity, using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) to test the a priori model. RESULTS The end questionnaire consists of 10 items, whose internal consistency was 0.75, with a percentage of variance explaining of 63.67%. CFA confirmed 4 dimensions (work environment, work relationships, motivation, and recognition): significant χ2 (p < .001); χ2/gl = 2.013; GFI= 0.958, RMR = 0.055 y RMSEA = 0.057; AGFI = 0.927, NFI = 0.878, TLI = 0.902, CFI =0.933 e IFI = 0.935; AIC = 132.486 y ECVI = 0.423. CONCLUSION This new questionnaire (G_Clinic) improves clinimetric values of the Font Roja questionnaire, because it reduces the number of items, improves the reliability of the dimensions, increases the value of variance explained, and allows knowing job satisfaction of nurses in clinical managementt.