A.H Amershi and E.H Feroz
Conducts an exploratory analysis of the probability distribution of the ratio total debt/total invest capital, to determine if the occurrence of the Finobacci golden mean and…
Abstract
Conducts an exploratory analysis of the probability distribution of the ratio total debt/total invest capital, to determine if the occurrence of the Finobacci golden mean and ratio, as possible values of this ratio, are random or indicative of firm survival. Uses highly technical mathematical and algebraic explanatory means to emphasize points. Adopts the use of figures and tables to aid explanation. Concludes that, although some progress has been made, more sophisticated analysis is required.
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This exploratory study aims to contribute to theory extension regarding the unique factors that characterize performance evaluation in the public sector.
Abstract
Purpose
This exploratory study aims to contribute to theory extension regarding the unique factors that characterize performance evaluation in the public sector.
Methodology/approach
The chapter reviews the Public Sector and the Interpretation literatures and develops a framework that introduces the concept of interpretation asymmetries, and then uses two case studies and a survey applied to both South American and European public managers to illustrate and analyze propositions derived from the framework.
Findings
Public agencies and managers are not assessed by their activities and outcomes but by how the general public may come to interpret and perceive them. Public officers – besides getting their organizations’ job done – struggle to show the truth of their organizations and preserve their organizations’ legitimacy due to the conditions of interpretation asymmetry and the dynamics of politicization prevalent in the public domain.
Research limitations/implications
This study was designed to be exploratory and fundamentally oriented to theory extension. As such, the findings and conclusions are tentative and require further research.
Practical implications
Governments, public officers, politicians, and researchers would benefit from going beyond usual considerations of information asymmetries and start paying attention to, understanding, and managing interpretation asymmetries.
Originality/value
This chapter contributes to the increasing research on the intersection of performance management and the public sector, and provides new concepts that enhance our understanding of the dynamics of assessment in environments prone to politicization. While prior research has been mainly focused on agent’s dysfunctional responses to performance measures, this chapter illustrates functional behaviors through which agents aim to increase the dimensionality and integrity of principals’ interpretations.
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Prior work has focused on the impact of using alternative bases for allocating costs to products but there has been little work that evaluates the use of alternative allocation…
Abstract
Prior work has focused on the impact of using alternative bases for allocating costs to products but there has been little work that evaluates the use of alternative allocation bases for allocating costs to departments. In particular, if different departments of a multi‐national firm are located in settings with different reporting requirements, exchange rate risks, and costs of capital, then the choice of cost allocation base can be important. This paper examines the economic impact of alternative service department allocation bases in a decentralised setting. A non‐linear programming (NLP) approach is used to model the problem. A review of prior literature identifies a method, based on the NLP approach, for determining the economic impact of alternative allocation bases in a multi‐product setting. The method is adapted in this paper for the multi‐divisional context. The study finds that centralised production volume decision‐making is superior to decentralised decision‐making using either revenue or volume‐based cost allocation bases. Under certain conditions, revenue‐based allocation bases are also found to be superior to volume bases. Under the assumptions of the model no distinction can be made between the centralised solution and a profit‐based allocation regime. A practical implication of this study is that designers of cost allocation systems need to consider not only the direct income‐shifting effect of different cost allocation bases but also the indirect economic effect of consequential changes in the operating decisions of the firm.
Kwangmin Park and SooCheong (Shawn) Jang
The purpose of this study is to present a brief overview of hospitality finance/accounting (HFA) research and to propose the utility of interdisciplinary research in the HFA…
Abstract
Purpose
The purpose of this study is to present a brief overview of hospitality finance/accounting (HFA) research and to propose the utility of interdisciplinary research in the HFA field.
Design/methodology/approach
This study outlines HFA research and adds a brief summary of mainstream finance and accounting research topics. To further improve HFA research, this study suggests the need for interdisciplinary research that could effectively integrate finance/accounting with other management subjects in the hospitality field.
Findings
Despite its importance, interdisciplinary research has not been given enough attention in the field of HFA. This study sheds light on the need for interdisciplinary research and proposes paths for conducting interdisciplinary HFA research, such as behavioral finance, marketing-finance interface, human resource management finance/accounting, etc.
Practical implications
This study suggests that the results of interdisciplinary HFA research can provide useful practical implications from shareholder and organizational perspectives in the hospitality industry.
Originality/value
Although the interdisciplinary research concept is not really new, it has not been extensively addressed in hospitality academia. In this respect, this study suggests expanding the horizon for HFA researchers.
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Jan M. Smolarski, Neil Wilner and Jose G. Vega
This paper aims to examine the applicability of real options methodology with respect to developing internal transfer pricing mechanisms. A pervasive theme in existing models is…
Abstract
Purpose
This paper aims to examine the applicability of real options methodology with respect to developing internal transfer pricing mechanisms. A pervasive theme in existing models is their inability to handle the dynamic and volatile nature of today’s business environment, as well as their lack of objective managerial flexibility. The authors address these and other issues and develop a transfer pricing mechanism based on Black–Scholes and the binomial options pricing methodology, which is better suited in today’s dynamic business environment.
Design/methodology/approach
The authors use a conceptual approach in developing theoretical justifications and show, practically, how a transfer price can be developed using two different real options pricing models.
Findings
The authors find that real options transfer price mechanism (real options framework [ROF]) can effectively deal with many of the issues that permeate a modern organization with complex multi-dimensional operations. The authors argue that uncertainty and behavioral issues commonly associated with setting transfer prices are better handled using a transfer pricing mechanism that preserves flexibility at the business unit level, the managerial level and the firm level. The approach allows for different managerial styles in both centralized and decentralized sub-units within the same organization. The authors argue that an open multi-dimensional framework using real options is suitable under conditions of uncertainty and managerial opportunism.
Practical implications
ROF-based transfer pricing may be significant in that firms can use it as a tool to manage an organization by setting the prices centrally and at the same time allowing managers to select the transfer price that best suits their specific situation and operating conditions. This may result in a more efficient and more profitable organization.
Originality/value
The contribution of the paper is the melding of the ROF from the finance literature with the accounting problem of setting a transfer price for items lacking a competitive market price. The authors also contribute to existing research by explicitly developing a framework that values managerial flexibility, takes into account uncertainty and considers the behavioral aspects of the transfer pricing process. The authors establish the conditions under which a generic real options model is a feasible alternative in determining a transfer price.
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Wai Fong Chua, Cameron Hooper and Bobby Wai Yeong Mak
Much managerial and behavioural accounting research assumes that people are rational, self‐interested, expected‐utility maximisers. Often, this reduces to the central expectation…
Abstract
Much managerial and behavioural accounting research assumes that people are rational, self‐interested, expected‐utility maximisers. Often, this reduces to the central expectation that individuals are concerned only with their own material self‐interest and are unconcerned with the welfare of others. Here, we consider a preference for achieving fair outcomes in the context of an interdivisional cost and benefit allocation scenario. Consistent with prior research, we reject a simple wealth maximisation hypothesis and find that subjects actively attempt to achieve fair allocations. Interestingly, subjects were willing to adversely affect the outcome of one party to the transaction when they considered themselves to have been treated unfairly by a third party against whom they had no redress. Also, where subjects expected to have their wealth reduced by another party, who freely chose not to do so, these subjects appeared willing to give a lower share of a future windfall gain to them.
Morten Hertzum and Preben Hansen
Information seeking is often performed in collaborative contexts. The research into such collaborative information seeking (CIS) has been proceeding since the 1990s but lacks…
Abstract
Purpose
Information seeking is often performed in collaborative contexts. The research into such collaborative information seeking (CIS) has been proceeding since the 1990s but lacks methodological discussions. The purpose of this paper is to analyze and discuss methodological issues in existing CIS studies.
Design/methodology/approach
The authors systematically review 69 empirical CIS studies.
Findings
The review shows that the most common methods of data collection are lab experiments (43 percent), observation (19 percent) and surveys (16 percent), that the most common methods of data analysis are description (33 percent), statistical testing (29 percent) and content analysis (19 percent) and that CIS studies involve a fairly even mix of novice, intermediate and specialist participants. However, the authors also find that CIS research is dominated by exploratory studies, leaves it largely unexplored in what ways the findings of a study may be specific to the particular study setting, appears to assign primacy to precision at the expense of generalizability, struggles with investigating how CIS activities extend over time and provides data about behavior to a larger extent than about reasons, experiences and especially outcomes.
Research limitations/implications
The major implication of this review is its identification of the need for a shared model to which individual CIS studies can contribute in a cumulative manner. To support the development of such a model, the authors discuss a model of the core CIS process and a model of the factors that trigger CIS.
Originality/value
This study assesses the current state of CIS research, provides guidance for future CIS studies and aims to inspire further methodological discussion.
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Collaboration is often required for activities that are too complex or difficult to be dealt with by a single individual. Many situations requiring information-seeking activities…
Abstract
Collaboration is often required for activities that are too complex or difficult to be dealt with by a single individual. Many situations requiring information-seeking activities also call for people to work together. Often the methods, systems, and tools that provide access to information assume that they are used only by individuals working on their tasks alone. This review points to the need to acknowledge the importance of collaboration in information-seeking processes, to study models, and to develop systems that are specifically designed to enable collaborative information seeking (CIS) tasks. This chapter reviews the literature from various domains including library and information science, human–computer interaction, collaborative systems, and information retrieval. Focus of the review is on the extent to which people work together on information seeking tasks and the systems and tools that are available for them to be successful. Since CIS occurs in the broader context of collaboration in general, a review of literature about collaborations is first undertaken to define it and place it into context with related terms such as cooperation and communication. A more focused review of research follows relating CIS to systems that have attempted to support such interactions. Included are identification and synthesis of a number of core issues in the field and how best to evaluate systems and collaborative tools. Key lessons learned from the review are summarized, and gaps in the literature identified to spur future research and study.