bluuebunny/crossref_metadata_2025 huggingface dataset:
Risk, trust, and consumer online purchasing behaviour: a Chilean perspective
Authors: Bianchi Constanza , Andrews Lynda
Published: May 2012

Purpose

The purpose of this study is to investigate Chilean consumers’ online purchase behaviour with a specific focus on the influence of perceived risk and trust. Studies of this nature have been conducted quite extensively in developed countries and in cross‐cultural comparative studies most noticeably comparing the USA with Asian countries. However, examining consumers’ perceived risk and trust with online purchasing in a Latin American context is very limited. While not a cross‐cultural study, this gap is addressed in the literature with an empirical study conducted in Chile. Moreover, it aims to address calls to investigate consumers’ post adoption acceptance of a technology to gain insights into which factors are most influential in explaining continuance behaviour.

Design/methodology/approach

The paper tests a model of the influence perceptions of risk and trust on consumers’ attitudes and intentions to continue purchasing on the internet. An online survey method is used. The sample consists of 176 Chilean consumers who purchase online. The data were analysed using structural equation modelling (SEM).

Findings

The analysis reveals that perceived risk online had an inverse relationship with consumers’ attitude and that attitude has a positive influence on intentions to continue purchasing. Of the trust factors examined, trust in third party assurances and a cultural environment of trust have the strongest positive influence on intentions to continue purchasing online, whereas trust in online vendors and a propensity to trust were both insignificant.

Practical implications

In a Latin American context, for marketers in domestic and global companies these results identify which trust beliefs have the most effect on consumer continuance behaviour towards purchasing online. Additionally, this research shows that consumers in a Latin American country, recognized as a collectivist, high risk avoidance culture, are willing to continue making purchases online despite the risks involved.

Originality/value

The study and its results is one of few available that investigates consumers’ perceptions of risk and trust for online purchasing in a Latin American country. The value of the findings provides an insight into the specific trust factors that influence post adoption behaviour; that is Chilean consumers’ continued purchasing online. The findings add value not only to the literature on the Latin American population's e‐commerce behaviour, but also have managerial implications for domestic and global companies considering offering online retailing for consumers in this region where internet penetration rates are very high, but local e‐commerce availability is low.
Comparative advertising effectiveness in Latin America: evidence from Chile
Authors: Manzur Enrique , Uribe Rodrigo , Hidalgo Pedro , Olavarrieta Sergio , Farías Pablo
Published: May 2012

Purpose

The purpose of this study is to test the viability of comparative advertising in Chile.

Design/methodology/approach

Data were collected via controlled experimentation. The study employed a 3 (comparative advertising intensity: noncomparative, indirect comparative, and direct comparative)×2 (product category involvement: low, high)×2 (sponsor brand's relative market share: market leader, other brand) between‐subjects factorial design.

Findings

The results suggest that direct and indirect comparative advertisements are not more effective than noncomparative advertisements in Chile. Additionally, data do not support the idea that the effect of comparative advertising intensity is moderated by the product category involvement and/or by the sponsor brand's relative market share. Since comparative advertising was not shown to be more effective than noncomparative advertising, the authors hypothesize that it is due to cultural biases and the novelty of comparative advertising in Latin America, as expressed through negative message believability.

Practical implications

While experimental research is not sufficient to establish the generalized non‐superiority of comparative advertising in the region, the results support the idea that comparative advertising might not be more effective than noncomparative advertising for many marketing campaigns in Latin America.

Originality/value

Several recent studies have investigated international differences in advertising practices. Most of these address advertising in general, leaving the transferability of comparative advertising practices largely unexplored (White Nye et al.). Analyzing the case of Latin America is highly relevant due to the limited development that exists with respect to comparative advertising in the region.
The influence of CSR on purchasing behaviour in Peru and Spain
Authors: Marquina Percy , Morales Carlos E.
Published: May 2012

Purpose

The research study has three objectives. One is to provide empirical validation of the relationship between corporate social responsibility (CSR) and corporate abilities (CA) as an influential factor in socially responsible consumption. The second is to ascertain whether there are significant differences between CSR parameters estimated in the purchasing decisions of consumers from Peru and Spain. Finally, the authors aim to measure people's trade‐off between the social (CSR) and traditional (CA) features of their purchasing decisions in terms of their willingness to pay.

Design/methodology/approach

A discrete choice modelling experiment was used to test the relationship between CSR and CA, quantify consumers’ intention to purchase, and establish their willingness to pay for specific social features.

Findings

It was found that there is a positive relationship between CSR and CA regarding consumer behaviour and that Peruvian consumers seem to be more sensitive to CSR features of products than Spanish consumers. Moreover, the results show that the willingness to pay for each specific social feature seems to be contextually defined.

Originality/value

This paper contributes to the ongoing debate regarding the importance of corporate social responsibility as an influential factor in consumers’ socially responsible consumption. It quantifies the social features of companies’ products and willingness to pay.
The implementation of international advertising strategies
Authors: Fastoso Fernando , Whitelock Jeryl
Published: May 2012

Purpose

The purpose of this paper is to address the issue of the implementation of international advertising strategies by first introducing a framework of four options that multinational enterprises (MNEs) can use to implement such strategies and second by drawing on contingency theory to develop and test hypotheses relating to how environmental factors and company characteristics affect such implementation.

Design/methodology/approach

Hypotheses are tested using web‐survey data obtained from 182 Latin American managers based in the Mercosur trading bloc.

Findings

Findings show that the choice of implementation process option is contingent on the environmental factor, cultural homogeneity and the company characteristics subsidiary size and MNE country‐of‐origin, yet not on regional economic integration.

Research limitations/implications

This exploratory study contributes to advertising theory by offering an alternative approach to the consideration of the international advertising standardization question that focuses on the implementation of strategies rather than on their development. The findings further confirm the theory of regional multinationals in the context of international advertising decisions.

Practical implications

The study presents practitioners with four distinct approaches to implementing their international advertising strategies as well as with clear guidelines as to how managers should implement those strategies depending on the specific benefits of standardization they want to achieve.

Originality/value

To the knowledge of the authors, this study is the first to specifically address the implementation of international advertising strategies.
Do auditors assess inherent risk as if there are no controls?
Authors: Miller Timothy C. , Cipriano Michael , Ramsay Robert J.
Published: May 2012

Purpose

The purpose of this paper is to examine whether auditors interpret the risk of material misstatement (RMM) in accordance with current standards' definition of inherent risk (IR). It is argued that controls should not be presumed when assessing inherent risk and that inherent risk should be considered separate from and prior to control risk when it is practical to do so. Because auditing standards explicitly require auditors to assess IR without consideration of internal controls (i.e. control risk (CR)), RMM should not be adjusted upward for control deficiencies.

Design/methodology/approach

The authors survey and interview practicing auditors to gain an understanding of current risk assessment practice. They then evaluate whether their understanding of risk assessment is in line with current standards.

Findings

Contrary to auditing standards' definition of inherent risk, it appears that auditors presume some level of expected control effectiveness when assessing IR and they may increase RMM in response to internal control deficiencies. Such a presumption is inconsistent with the definition of inherent risk from the Auditing Standards Board (SAS No. 107), Public Company Accounting Oversight Board (AS 8), and International Auditing and Assurance Standards Board (ISA 200). Such misinterpretation may be an inadvertent result of guidance provided by standard setters in the form of SAS No. 109 from the ASB, AS 12 from the PCAOB and ISA 315 from the IAASB, which suggest combining IR and CR into RMM.

Research limitations/implications

The research is limited both by the small sample size and the small number of risk factors investigated.

Practical implications

If auditors presume a level of controls in assessing inherent risk, they may reduce audit effectiveness by estimating a lower RMM than is appropriate.

Originality/value

This study presents insights on the interpretation and assessment of audit risk in audit environments where inherent risk is no longer automatically set to be at the maximum. Namely that due to the definition of inherent risk, control information should have a unidirectional downward effect on the risk of material misstatement.
Enhancing auditors' performance
Authors: Mohd Iskandar Takiah , Nelly Sari Ria , Mohd‐Sanusi Zuraidah , Anugerah Rita
Published: May 2012

Purpose

The purpose of this study is to examine the mediating effect of effort on the relationship between both accountability pressure and self‐efficacy, and auditors' performance.

Design/methodology/approach

The paper uses a between‐subjects experimental research design with accountability pressure manipulated randomly to two groups, accountable and non‐accountable. Each participant is required to perform internal control tasks.

Findings

Based on partial least square (PLS) analysis, results indicate that both variables, i.e. accountability pressure and self‐efficacy, are positively related to audit judgment performance through the process of high level of effort. High self‐efficacious participants who received accountability pressure would have high levels of effort, which in turn increase audit judgment performance.

Research implications/limitations

This study provides further evidence on the effect of motivational factors on auditors' performance. Understanding the mediating role of some motivational variables is crucial in designing a continuous development program to enhance auditors' performance. The proposed framework of effort as a mediating variable is consistent with Libby and Lipe and Chang et al., who argue that accountability pressure and self‐efficacy would cause individuals to increase their effort in order to perform better.

Originality/value

The paper contributes to the literature on motivational factors that would explain the variability in audit judgments in coping with complex audit tasks.
Indicators of audit fees and fraud classification: impact of SOX
Authors: Lenard Mary Jane , Petruska Karin A. , Alam Pervaiz , Yu Bing
Published: May 2012

Purpose

The purpose of this paper is to compare the effect of corporate governance variables and fraud litigation on audit fees both before and after the implementation of the Sarbanes‐Oxley (SOX) Act in 2002.

Design/methodology/approach

The paper utilizes a sample of firms that had litigation proceedings filed against them for fraudulent financial reporting, and compare these firms to a sample of non‐fraud firms in the pre‐and post‐SOX period. First, the authors examine indicators of audit fees using the Simunic model. Next, the authors develop a logistic regression model with corporate governance variables and other financial control variables in order to identify the characteristics of firms that are accused of fraud in the pre‐and post‐SOX period.

Findings

The paper identifies specific components of corporate governance that are positively related to audit fees and which subsequently aid in classifying companies subject to fraud litigation. The most successful logistic regression model for 2005 (post‐SOX) is 64.4 per cent accurate in distinguishing firms litigated for fraud, while the most successful model for 2001 (pre‐SOX) is 61.4 per cent accurate in distinguishing such firms.

Originality/value

The research design and findings assist in providing additional evidence about the association between the effectiveness of the corporate governance structure and the external auditor in assessing the risk of fraud.
Modeling quality commitment in service organizations: an empirical study
Authors: Demirbag Mehmet , Sahadev Sunil , Kaynak Erdener , Akgul Aziz
Published: May 2012

Purpose

The purpose of this paper is to attempt to model the antecedents and consequences of quality commitment among employees in a service organization.

Design/methodology/approach

The conceptual model based on extant literature on quality commitment is validated through a study among employees in a consultancy organization in Turkey involved in servicing SMEs.

Findings

The conceptual model finds reasonable support through the study. All the proposed antecedents and consequences are found to be linked positively as per the propositions.

Research limitations/implications

The study is based on a single organization, which could impact the generalizability of the results. Further two of the constructs are measured using two item scales, affecting the scale validity.

Originality/value

This paper introduces a model of quality commitment, which focuses on the outcomes of quality commitment, and validates it in the context of a service organization.
The lodging quality index: an independent assessment of validity and dimensions
Authors: Ladhari Riadh
Published: May 2012

Purpose

The purposes of this study are: to examine the reliability and validity of the lodging quality index (LQI); and to assess the relative importance of the five dimensions of the LQI in the Canadian hotel context. The LQI was developed by Getty and Getty and published in 2003 in the International Journal of Contemporary Hospitality Management.

Design/methodology/approach

Data are collected from 200 Canadian respondents who had stayed in a hotel in Canada within the preceding three months. Data are examined using confirmatory factor analysis and regression analysis.

Findings

The findings support the reliability and the validity of the LQI's structure of five dimensions. The scale is shown to be a reliable instrument for measuring overall service quality and for predicting the satisfaction and behavioral intentions of hotel guests. In terms of the importance of the five dimensions, the study finds that “tangibility” and “communication” are the most important.

Originality/value

This is the first independent assessment of the reliability and validity of the LQI scale. The research provides valuable insights for hotel managers in Canada. Hoteliers should focus their efforts on the provision of good service quality on “tangibility” and “communication”.
Programming quality of festivals: conceptualization, measurement, and relation to consequences
Authors: Yan Qi , Zhang Hanqin , Li Mimi
Published: May 2012

Purpose

Programming of festivals is more and more becoming a source from which the competitive advantages of the festivals may originate. This study aims to conceptualize the dimensionality of programming quality of festivals and empirically test it and its relationships with the satisfaction and behavioral intention levels of festival visitors.

Design/methodology/approach

Structured interviews were conducted with 350 visitors to a cultural festival. Structural equation modeling (SEM) was utilized in the data analysis.

Findings

The programming quality of festivals was found to consist of six dimensions, namely diversity, stakeholder balance, incrementality, simultaneity, flexibility and linkage. Meanwhile, the positive effects of festival programming quality on the satisfaction and behavioral intention levels of festival visitors are confirmed.

Research limitations/implications

This study is limited for possible inexhaustiveness of the dimensions proposed and examined. Future research is needed to make the current measurement more rigorous, succinct and comprehensive.

Practical implications

This study can offer some valuable insights for festival planners and organizers to better design, operate and manage their festival to such an extent that the experiences of festival visitors are maximized, visitor satisfactions are enhanced, and re‐visits to future festivals facilitated.

Originality/value

This study makes its contribution to better understanding of festival programming quality, where artistic, emotional and technological aspects are integrated. This study aims to delineate the entirety of programming quality of festivals and its relationships to the satisfaction and behavioral intention levels of festival visitors.
Revenue management: resolving a revenue optimization paradox
Authors: Tse Tony S.M. , Tung Poon Yiu
Published: May 2012

Purpose

The objectives of this study are to investigate the relationship between hotel room demand and room rates, and to find a viable solution for the optimal room rate that maximizes the total profit.

Design/methodology/approach

There are various studies in the literature on how room rates affect profitability, and how the optimal room rate that maximizes the total revenue can be determined. Most of these studies assume an algebraic relationship between room rates and room demand, and obtain the optimal solution by applying calculus to the revenue or profit function. This study adopts the alternative approach of using a model with a demand function that has been shown to be a superior causal forecasting model in some markets, and develops a new method to optimize the total profit.

Findings

The traditional method of applying calculus to the profit function based on a causal forecasting model leads to unrealistic solutions. This gives rise to the paradox that, on the one hand, there is a superior causal forecasting model based on room rates, but on the other hand, the traditional method does not yield a realistic solution for room rate optimization. This study analyzes the underlying causes of this paradox and proposes a method to resolve it.

Practical implications

The findings can be used by hotels to fine‐tune the room rates determined by conventional methods to arrive at a realistic and definitive value for the optimal room rate.

Originality/value

This study highlights the problems that arise with the traditional method of applying calculus to revenue and profit optimization and proposes a new method to resolve it.
Knowledge sharing in dynamic labour environments: insights from Australia
Authors: Chalkiti Kalotina
Published: May 2012

Purpose

The purpose of this research is to understand how knowledge sharing takes place in the dynamic labour environment of Darwin's hospitality industry in the Northern Territory of Australia.

Design/methodology/approach

Three hotels, part of the same hotel chain, were used as a case study. Data were acquired through 76 semi‐structured interviews and validated through two focus groups over an eight‐month period.

Findings

The research revealed that organisational and individual factors supported knowledge sharing in the dynamic labour environment of Darwin's hospitality industry. Noteworthy were the participant's attitudes to knowledge sharing as well as the role of social interactions and social networks as they enabled peers to familiarise with one another both professionally and non‐professionally. The product of this familiarity was people knowledge that enabled their adaptation to multiple levels (place, industry, hotels, and peers) and in turn helped them to share knowledge with peers irrespective of labour instability.

Research limitations/implications

The research focused only on one aspect of knowledge management (knowledge sharing) and the front office departments of three hotels located in Darwin, Northern Territory of Australia.

Practical implications

The research provides a knowledge sharing strategy that could help practitioners nurture knowledge sharing in environments of high turnover.

Originality/value

The research contributes to the scant literature available on knowledge sharing strategies in environments of high turnover.
Is the pub still the hub?
Authors: Andrews David , Turner Simon
Published: May 2012

Purpose

The aim of this study is to present an overview of the factors contributing to the difficulties faced by the public house (pub) sector when analysing the general decline in the number of pubs in the UK seen over recent years.

Design/methodology/approach

Due to the nature of the study secondary rather than primary research methods were adopted, although further opportunities to undertake primary research are identified towards the end of the article.

Findings

A review of contemporary literature and key industry data has been used to present findings that evaluate the role traditionally played by public houses within society; to examine the changing structure of the pub retailing sector; and to analyse a range of key internal and external factors that have and are contributing to the decline seen in certain elements of the sector, as evidenced in the number of business closures.

Research limitations/implications

Use of both academic and industry‐focussed research articles present a timely and accurate picture of the true situation and general feeling within the sector while suggesting where future research may be undertaken.

Practical implications

The paper offers a number of practical business improvement recommendations that could be taken forward by the sector.

Originality/value

In acknowledging that each pub business is unique due to its form of ownership and the people employed within it, a strategy for survival is outlined for struggling businesses to adopt in order to not only survive in a very difficult trading environment, but also to re‐establish themselves as a central feature of the communities in which they are located.
Different or alike?
Authors: Lub Xander , Nije Bijvank Marije , Matthijs Bal P. , Blomme Rob , Schalk René
Published: May 2012

Purpose

This study aims to explore generational differences in the psychological contract of hospitality employees and work outcomes such as commitment and turnover intention.

Design/methodology/approach

Data were collected in 20 hotels (n=359) from a four‐star hotel chain in The Netherlands using a self‐administered questionnaire. Data were analysed using MANOVA andpost‐hocanalysis.

Findings

Findings suggest that opportunities for development and challenge, variation and responsibility are more important to younger generations of hospitality workers. Generation X placed high value on work‐life balance, autonomy and job security. No differences were found for work atmosphere, salary and task description. Significantly lower commitment and higher turnover intention was also found for Generation Y.

Practical implications

The findings provide insight into generational differences in expectations that hospitality workers have of their employers. This helps managers in developing management styles as well as human resource policy to better address these expectations.

Originality/value

This study is one of the first to explore the psychological contract in a hospitality context and contributes empirical evidence to the body of knowledge on generational differences.
Financial characteristics and outperformance
Authors: Hua Nan , “Khal” Nusair Khaldoon , Upneja Arun
Published: May 2012

Purpose

The paper aims to provide empirical evidence that certain financial characteristics are critical for lodging firms to earn a higher profit. Further, it proposes, perhaps more importantly, a robust empirical framework for identifying outperformance in profitability, which has been barely studied in the lodging industry.

Design/methodology/approach

The paper employed logit models, under the framework of comparative advantage theory, to explore the relationships between firm financial characteristics and outperformance from a financial perspective.

Findings

This study, for the first time, provides systematic empirical evidence on how to identify lodging firms that outperform their competitors over time. From a practical standpoint, owners and managers should use industry medians to benchmark financial performance, focusing on factors such as leverage, book to market, asset turnover, and firm size to ensure financial performance leadership among lodging firms. Moreover, echoing previous research, a franchise appears to help differentiate an outperforming firm from its competitors in a positive way.

Research limitations/implications

Because of the chosen research framework, the study results need to be interpreted with caution. Specific suggestions appear in the section of limitations and future research.

Practical implications

The paper includes implications of general guidelines to identify financial characteristics that differentiate outperforming firms from their competitors as well as some specific action plans for investors, practitioners, and researchers to consider.

Originality/value

This paper is the first one that provides systematic empirical evidence on how to identify lodging firms that outperform their competitors over time, thus shedding lights on what financial characteristics lodging firms should keep a close eye on for a better future.
Comparative analyses of hotel REITs: examining risk‐return and performance characteristics
Authors: Kim Jinhoo , Jang SooCheong (Shawn)
Published: May 2012

Purpose

This study aims to compare the risk‐return characteristics and performance of real estate investment trust (REIT) hotel companies (hotel REITs hereafter) with those of C‐corporation hotel companies (hotel C‐corps hereafter).

Design/methodology/approach

The risk‐return characteristics and performance of hotel REITs and C‐corps were examined by estimating single‐factor and Fama‐French three‐factor asset pricing models for each portfolio. Differences between the hotel REIT and C‐corp estimations were tested using Wald test statistics.

Findings

Little evidence was found that hotel REITs have significantly different risk‐return characteristics and performance than hotel C‐corps, which suggests that hotel REITs and C‐corps are not significantly different in terms of market risk‐return characteristics and performance. The market portfolio had a significantly positive effect on the returns of both hotel REITs and C‐corps. The size and book‐to‐market factors of common stock also had a significant explanatory power for the returns of hotel REITs and C‐corps. Both hotel REITs and C‐corps performed similarly to the market portfolio, on a risk‐adjusted basis, during the 2000s.

Research limitations/implications

Despite the fact that the three‐factor asset pricing model explains a significantly greater proportion of the variation in the hotel firms' returns than the single‐factor asset pricing model, approximately 30 percent of the total variation still remains unexplained.

Practical implications

The risk‐return characteristics and performance of hotel REITs and C‐corps revealed by this study will render hotel investors' decisions between the two organizational structures less complicated. In addition, the findings can be used by portfolio managers to construct a well‐diversified portfolio.

Originality/value

A multifactor asset pricing model was used for the first time in this article to examine the risk‐return characteristics and performance of hotel companies. In addition, the importance of understanding differences between REIT and C‐corp structures in the lodging industry is emphasized.
Incentives for fixed asset revaluations: the UK evidence
Authors: Emmanuel Iatridis George , Kilirgiotis George
Published: May 2012

Purpose

The purpose of this paper is to examine the incentives for fixed asset revaluation. The motives that are investigated include firm size, fixed asset intensity, firm foreign operations and acquisitions, firm indebtedness and earnings management inclination.

Design/methodology

The study utilises logistic and linear regressions to test the hypothetical relations set up in the study. The categorisation of sample companies into those that perform asset revaluations and those that do not is based on the examination of firms’ annual reports.

Findings

The findings of the study provide evidence that firm size is positively related to fixed asset revaluation. Firms with foreign operations, with low fixed assets, and with high debt capital needs are more likely to perform fixed asset revaluations. This is also the case for firms that carry out acquisitions. The study also shows that fixed asset revaluation is negatively related to earnings management.

Research limitations/implications

Firms that revalue their fixed assets should examine the signals that are likely to be conveyed to investors about their managerial ability and financial prospects. Firms would tend to revalue their fixed assets when it is likely to result in maximum favourable financial consequences. Future research should investigate the possible opportunism in firms’ behaviour, as well as the stock market reaction to fixed asset revaluations.

Originality/value

The paper is useful for investors and financial analysts, as it sheds light on the motives for fixed asset revaluations. The reporting of asset values based on fair values would assist them in making unbiased predictions about firms’ future performance. The paper gives insight about the financial attributes of firms that perform fixed asset revaluations. For example, firms with capital needs would be inclined to undertake a fixed asset revaluation in order to reinforce their financial position.
Corporate social and environmental disclosure by Indonesian listed companies on their corporate web sites
Authors: Gery Djajadikerta Hadrian , Trireksani Terri
Published: May 2012

Purpose

The purpose of this paper is to measure the extent of corporate social and environmental disclosure (CSED) made by Indonesian listed companies in the Indonesia Stock Exchange (IDX) on their corporate web sites, and to investigate the relationship between the company’s environmental sensitivity and the extent of the corporate social and environmental web site disclosure.

Design/methodology/approach

The corporate social and environmental web site disclosure examination in this study was conducted at the company level, with the target sample of Indonesian listed companies that provided their profiles on the IDX web site. The sample consisted of both sensitive and non‐sensitive companies. Content analysis was used to analyse the data.

Findings

The results of this study suggest that the extent of CSED made by Indonesian listed companies on their corporate web sites is low and the nature of disclosure is mostly descriptive, without any specific time frame. The most disclosed information is “community”, followed by “human resources”. It is found that there is no significant difference between the extent of CSED in both sensitive and non‐sensitive industries. Overall, the results indicate that the practice of CSED in Indonesia is still at an early stage. It seems that most of the companies in this study still have a lack of understanding about CSED, and the main reason for their disclosure is to gain societal recognition of the adequacy of their social behavior.

Originality/value

In the lack of studies which explore the practice of CSED within the developing country context, and in media other than annual reports, this paper provides some insight about the practice of CSED made by Indonesian listed companies on their corporate web sites.
Auditor acceptance of dysfunctional behaviour
Authors: Paino Halil , Smith Malcolm , Ismail Zubaidah
Published: May 2012

Purpose

The purpose of this paper is to investigate individual or personal factors contributing to individual auditor differences in acceptance of dysfunctional audit behaviour (DAB). Dysfunctional behaviour and staff turnover are associated with decreased audit quality, and is characterised as premature sign‐off, gathering of insufficient evidence, accepting of weak client explanation, altering or replacing the audit procedures, and under‐reporting of time, and have negative effects on the auditing profession. In this study the organizational behaviour and industrial psychology literatures provide the basis for the development and testing of an individual factors’ model of DAB.

Design/methodology/approach

Using path analysis for direct and indirect effects, survey results from registered Audit Managers are used to provide support for an explanatory model.

Findings

Overall, results indicate that auditors who are more accepting of dysfunctional behaviour tend to possess an external locus of control and exhibit higher turnover intentions.

Originality/value

These results suggest that individual factors play a role in identifying those who are more accepting of dysfunctional behaviour. The results can be useful in the operational and management control mechanism of human and social developments relating to dysfunctional behaviour issues.
Accounting data and UK dividends
Authors: Atieh Abdallah , Hussain Simon
Published: May 2012

Purpose

Accruals data reflect managers’ judgements and estimates. The purpose of this paper is to examine whether they provide users of accounts with additional insight into a firm's dividends beyond that conveyed by cash flows alone.

Design/methodology/approach

The authors employ regression analysis to examine the relative ability of earnings, cash flows and accruals to explain dividends.

Findings

It is found that both cash flows and accruals (earnings) possess significant explanatory power for dividends indicating that, on average, UK financial statements provide users with improved insight beyond that conveyed by cash flows alone.

Research limitations/implications

These results demonstrate the importance of accruals data for users of accounts. However, if accruals are manipulated for opportunistic purposes then their usefulness will likely be compromised and users of accounts will loose out. The study focuses on non‐financial, UK dividend‐paying firms only.

Practical implications

These results provide direct evidence that UK financial statement data has significant explanatory power for dividend‐paying activity, which may be viewed as good news. However, this paper reiterates the need for those who prepare and audit accounts to ensure that accruals truly reflect a firm's financial situation and are not being “managed” to artificially boost reported earnings. Short‐term accruals are an obvious focus for such activities.

Originality/value

The paper reports the first direct test of the link between disaggregated earnings components and UK dividends.
The developing role of the financial controller: evidence from the UK
Authors: Graham Alan , Davey‐Evans Susan , Toon Ian
Published: May 2012

Purpose

The purpose of this paper is to study the work roles undertaken by financial controllers. The literature suggests a recent transformation, with the role of the finance professional making a significant shift from “score‐keeper” to a “value‐added” business partner. The paper suggests that the role has undergone a more complex change and combines elements from both of these descriptions.

Design/methodology/approach

The methodological approach starts by analysing job specifications of financial controller vacancies. Using survey data, it then establishes what tasks they now do. Finally, it uses interviews to understand whether financial controllers believe that they could add more value to the organisation and if any barriers exist preventing the transformation of the role.

Findings

The findings suggest that the role of financial controller has not transformed in recent years, but has instead enlarged, incorporating more “forward‐looking” elements, which are concerned with the management of the whole business. These developments have not replaced the “traditional” tasks such as reporting and control, but are supplementary to them. The research also indicates that financial controllers believe that the role should be expanded and that they could add more value, but are constrained by external pressures.

Research limitations/implications

The authors acknowledge that this paper does not consider the contingent factors which shape the individual role within different types and sizes of business, but nevertheless it discusses many of the characteristics associated with the complex role.

Originality/value

This paper has implications for finance and accounting managers working in business, the accounting bodies and those involved in accounting education.
Evaluation of customer's mall preferences in India using fuzzy AHP approach
Authors: Deb Madhurima
Published: May 2012

Purpose

The purpose of this paper is to develop a structured model to understand mall preferences among Indian customers.

Design/methodology/approach

The present study uses fuzzy analytical hierarchy processing (FAHP). Use of Fuzzy Logic will provide a more reliable solution since it is capable of handling vagueness and uncertainty in the database.

Findings

Findings of the study suggest that the most preferred value that determines mall preference by Indian customers is HV, followed by SV, contrary to the stereotype that Indian customers are price sensitive. Forum mall is the best mall in terms of HV and SV, which motivates customers to shop at a particular mall.

Practical implications

The study will be useful for managers and academicians. The study will help managers develop a better understanding of customer's mall preferences and identify their own strengths and weaknesses. Based on this, they can devise strategies to maximize strengths by minimizing weaknesses.

Originality/value

Most of the work on FAHP is dedicated to either vendor selection or supplier selection. A study of this kind, in the context of mall preference among Indian customers is an original contribution to the literature of Indian retailing.
Managing indigenous and scientific knowledge for resilience building
Authors: Srivastava Sanjay K.
Published: May 2012

Purpose

The purpose of this research is to highlight issues related to the management of indigenous and scientific knowledge, and the approach towards transferring these from one community to another, to therefore reduce risk in communities living with multiple hazards and disasters in cyclone, flood, earthquake and drought prone regions of India.

Design/methodology/approach

A case study based approach and secondary research have been used to understand the disaster‐related problems and the mitigation strategy. Lessons are drawn from Indian scenarios such as Orissa super cyclone, Bhuj earthquake, etc.

Findings

The study highlights a few important points for practising managers/officers. Rural telecentres need to evolve for relief and rehabilitation work. Indigenous knowledge is more in tacit form; therefore, a carefully designed strategy would be needed to manage this.

Practical implications

The study focuses on many practical issues related to disaster management in India. These issues are derived from past experiences.

Originality/value

The research provides insight to researchers and practising officers/managers. Newer insights have been presented on tacit‐knowledge management and use of scientific understanding on the management of natural disasters.
Perception of stakeholders on web‐based corporate reporting practices
Authors: Verma Gakhar Divya
Published: May 2012

Purpose

Web‐based corporate reporting has emerged as a new mode of communication between companies and stakeholders. The purpose of this research is to assess the perception of various stakeholders on adequacy, usefulness and the future of web‐based corporate reporting.

Design/methodology/approach

A questionnaire was administered to 255 respondents and factor analysis was applied to analyse the data.

Findings

Factor analysis identified eight factors, which describe stakeholders’ perceptions about web‐based corporate reporting. These include usefulness of web reporting, future prospects, legal acceptability, adequacy of information, usefulness for investment decision, standardisation of content, mandatory requirement and substitute for traditional reporting.

Practical implications

The research findings will guide companies, regulators and service providers to deliver better information to stakeholders through disclosures on corporate websites.

Originality/value

The paper provides an insight into stakeholders’ beliefs and perceptions with respect to web reporting practices by companies and the future of these practices.
Striving towards strategic alignment in SMEs: an empirical analysis
Authors: Garg Adarsh , Goyal D.P.
Published: May 2012

Purpose

Despite general awareness and acceptance of the benefit of strategic planning/alignment of IS strategy with business strategy, few efforts have been made to define and study the relationship. A review of literature has revealed that past studies have largely neglected the specific consideration of small to medium‐sized enterprises (SMEs) especially IT/software developing SMEs in India. The purpose of this research is to investigate the prevalence of strategic planning activity in Indian IT SMEs and its decisive influence on business performance.

Design/methodology/approach

A survey‐based approach was adopted to understand the prevalence of strategic planning activity in Indian IT SMEs and its crucial influence on business performance at all three levels of management. A short survey instrument was designed by reviewing the literature on strategic planning activity in software developing SMEs. A sample of 23 software developing SMEs in India was used.

Findings

A response rate of 88.8 per cent was achieved and included respondents at senior management, middle management, and lower level management across the software developing SMEs in India. The results indicate that the alignment of IS/IT strategy with corporate strategy has significant effect on performance of IT SMEs besides the general awareness of importance of strategic alignment in SMEs at all three levels of management.

Research limitations/implications

The limited number of software developing SMEs will affect the generalizability of the study to the entire SME population. To negate the limitations of this study, multiple multi‐level case studies will be conducted in SMEs in the next phase of research. This research would contribute by indicating some of the implications, for both decision makers and academia, of an extended IT capabilities viewpoint on strategic planning activity. Future study should focus on performing a global survey on strategic alignment practices in SMEs.

Originality/value

The novelty of the paper lies in conducting a comparative study on the strategic alignment practices at all three levels of management in Indian SMEs and measuring its impact on the performance of the firm.
Capital budgeting decisions: evidence from India
Authors: Singh Shveta , Jain P.K. , Yadav Surendra S.
Published: May 2012

Purpose

The purpose of this paper is to understand current practices in capital budgeting (including real options) in Indian companies and provide a normative framework (guidelines) for practitioners (based on our findings and literature reviewed).

Design/methodology/approach

A questionnaire survey was administered to 166 non‐financial companies of the BSE 200 index. Secondary data were also collated from 2001‐2011.

Findings

Trends towards sophisticated techniques and sound capital budgeting decisions have continued in India. All sample respondent firms used discounted cash flow (DCF) techniques in conjunction with non‐DCF techniques. Internal rate of return (IRR), used by more than three quarters of the sample companies, is favored over net present value (NPV), used by half of the sample companies. Real options are used by half of the sample companies. Permanent (long‐term) capital has been used to finance fixed assets (net) and working capital (net).

Research limitations/implications

The limitations of the study are that it is country specific and a detailed sectoral analysis of the constituent sectors of the sample companies could have perhaps provided deeper insight into the subject.

Practical implications

The findings of this research, decades of teaching experience of the authors and the literature reviewed have been utilized to evaluate current practices and suggest possible improvements in decision making (through a normative framework).

Originality/value

The findings show that there still remains a theory‐practice gap in the usage of IRR over NPV. The usage of permanent (long‐term) capital to fund fixed assets (net) and permanent working capital requirements, although sound, could be an indication of surplus funds which could be used to repay long‐term debt or finance more asset building.
Exploring the role of HR practices in supply chain
Authors: Pandey Prachi , Bhattacharyya Sanghamitra , Kaur Arshinder
Published: May 2012

Purpose

The purpose of this study is to establish the importance of human resource (HR) practices in achieving high levels of supply chain (SC) integration through a conceptual framework (depicting the moderation effect of HR practices on the relationship between information sharing and SC integration) and validating the framework empirically to establish the proposed relationships.

Design/methodology/approach

The conceptual framework is proposed based on gaps in extant literature. Data from 60 automobile component manufacturing organizations in India are used to analyse the relationship between the study variables. Regression analysis is used to find the relative impact of predictor variable (Information sharing) on SC integration and the moderation effect of HR practices (training, collaborative performance systems and reward alignment) on this relationship.

Findings

The results indicate that information sharing has a significant effect on SC integration, and the relationship between these two variables is found to be positively moderated by “training” and “reward alignment”, while “collaborative performance systems” does not emerge as a significant moderator in the proposed relationships.

Research limitations/implications

It is expected that this study will contribute to both academics and practice. Along with extending the scope of research at the academic level, it is also expected to help practising managers to understand the importance of HR in SC, and to identify various HR practices which can be focused on to improve SC integration.

Originality/value

The framework and analysis presented in this paper help to provide an understanding of how HR practices of organizations can help in improving the relationship between information sharing and SC integration.