Calum G. Turvey, Michael Hoy and Zahirul Islam
We develop a theoretical model of input use by agricultural producers who purchase crop insurance, and thus may engage in moral hazard. Through simulations, our findings show a…
Abstract
We develop a theoretical model of input use by agricultural producers who purchase crop insurance, and thus may engage in moral hazard. Through simulations, our findings show a combination of partial insurance coverage and partial monitoring of inputs may reduce substantially the problems associated with moral hazard. The minimum level of input use that must be required by regulation is determined to be substantially lower than the optimal or actual input level chosen by producers. Because the use of inputs for crop production occurs in many stages over the pre‐planting, planting, and growing seasons, only a minimal input requirement is needed. Thus, the cost of implementing such a regulation can be kept much lower than would be the case for a regulation of complete monitoring of input usage.
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Adeyemi Esuola, Michael Hoy, Zahirul Islam and Calum G. Turvey
Asymmetric information in the form of moral hazard and adverse selection can result in sizable program costs for government‐provided crop insurance plans. We present a methodology…
Abstract
Asymmetric information in the form of moral hazard and adverse selection can result in sizable program costs for government‐provided crop insurance plans. We present a methodology and illustrative simulations to show how these two types of information problems interact in a way to create program costs for the providers of crop insurance. Our methodology allows us to ascertain the relative contributions to program costs of these two sources of asymmetric information. The exercise is useful in pointing out directions for future study seeking ways to improve the design of crop insurance plans.
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The aim of this paper is to discuss the lack of harmonization between US rules‐based and European principles‐based approaches to accountancy standards.
Abstract
Purpose
The aim of this paper is to discuss the lack of harmonization between US rules‐based and European principles‐based approaches to accountancy standards.
Design/methodology/approach
The paper is an interview with Zahirul Hoque.
Findings
Zahirul Hoque has written widely on international accounting, strategic management and organizational issues and public sector reform, and here shares his opinions.
Originality/value
The paper provides an outline of developments and issues regarding harmonization of accounting standards.
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Yi‐Feng Yang and Majidul Islam
The purpose of this paper is to demonstrate the influence of transformational leadership (TL) on job satisfaction by using the business perspective of the balanced scorecard.
Abstract
Purpose
The purpose of this paper is to demonstrate the influence of transformational leadership (TL) on job satisfaction by using the business perspective of the balanced scorecard.
Design/methodology/approach
The paper is based on an empirical study of the top four life insurance firms in Taiwan – Cathay, Nan Shan, Shin Kong, and Cumshaw Post Company – that held more than 50 percent of Taiwan's overall market share. The sales employees of these four firms were selected for empirical testing, since in these firms, emphasis is placed on leadership and on how the employees' job satisfaction is reflected in the reduction of internal process costs.
Findings
Consistent with earlier predictions, the authors attained significant results, but they did find that group maintenance, group goal achievement behaviors, and their complementarity truly helped enhance employee job satisfaction. This suggests that group maintenance and group goal achievement behaviors, including their complementarity, will provide a more accurate prediction of the relation between intrinsic and extrinsic components of employee job satisfaction and achieving the objective of an internal business advantage.
Research limitations/implications
Only four firms have been examined in this study. It would be worthwhile to see whether the inclusion of other firms would show similar results. When these four firms are placed in a dynamic environment, TL is a key source for providing an internal business advantage: employee capability to react positively to change provides a very important advantage. Although the integration of both TL and change‐oriented action by the TL and employees to provide employee job satisfaction has not been tested before, it would be useful for future researchers and practitioners to do so.
Originality/value
This paper is of both theoretical and empirical value. Theoretically, it has tried to make use of the business perspective of the BSC. Empirically, this paper has demonstrated the influence of TL in gaining an internal business advantage. There is a dearth of research on how firms successfully integrate the business perspective of the BSC to gain an internal business advantage. The paper investigated the effects on intrinsic and extrinsic components of employee job satisfaction of group direct behaviors as motivated by transformational leadership (TL), including examining group maintenance, group goal achievement, and the interaction between the two (their complementarity).
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The purpose of this article is to present a snapshot review of the papers accepted for publication in this special issue of the 2010 Global Accounting and Organizational Change…
Abstract
Purpose
The purpose of this article is to present a snapshot review of the papers accepted for publication in this special issue of the 2010 Global Accounting and Organizational Change (GAOC) conference which was held in July, 2010 at Babson College, USA.
Design/methodology/approach
A critical review approach was adopted to identify the lessons learned.
Findings
The review reveals a variety of themes that emerged from the papers under review where authors attempted to describe and explain “best practices” in financial and managerial accounting within a variety of organizations across the world.
Originality/value
This review will stimulate interest in and contribute to the body of knowledge of accounting and organizational change for the betterment of society.
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Tharusha N. Gooneratne and Zahirul Hoque
This paper aim to review existing research in the management control systems field in the banking industry. It identifies gaps in the existing literature and suggests some…
Abstract
Purpose
This paper aim to review existing research in the management control systems field in the banking industry. It identifies gaps in the existing literature and suggests some directions for future research.
Design/methodology/approach
The review was carried out principally by consulting leading accounting journals, followed by other relevant journals covering all publications from the inception of the particular journal to 2010. The published articles are categorized by their research topics, theories, methodologies and settings.
Findings
The review reveals a dearth of detailed studies on management controls in the banking sector. As evident from the sizeable number of descriptive studies, most prior studies do not engage in an in‐depth inquiry into control issues of banks, and most lack clear articulation either theoretically or methodologically. It finds that currently little is known on the concerns encountered by banks and the nature of management control practices deployed.
Research limitations/implications
This review is selective and, while illustrative of the state of management control research in the banking sector, does not attempt a comprehensive coverage of all research. However, it identifies gaps in the current literature and makes calls for further research on a number of management control issues in the banking industry. Further, in light of the review findings, the paper offers some lessons and insights for practicing managers.
Originality/value
Although some general reviews on various facets of management accounting across time have been undertaken by past researchers, industry‐based reviews have not been their focus. Through a systematic review of management control research in the banking arena, this paper shows that despite both the significant position occupied by the banking industry in nations' economies and the importance of management controls for banks, there remains a need for researchers to pay adequate attention to exploring control issues in this sector.
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Saiful Alam, Seuwandhi B. Ranasinghe and Danture Wickramasinghe
The purpose of this paper is to reflectively narrate the methodological journey of the authors in penetrating the positivitic hegemony of accounting and management control…
Abstract
Purpose
The purpose of this paper is to reflectively narrate the methodological journey of the authors in penetrating the positivitic hegemony of accounting and management control research in their native countries, Bangladesh and Sri Lanka.
Design/methodology/approach
This paper offers an auto-ethnography to demonstrate the lack of diversity in accounting, accountability and management control research.
Findings
Global developments in accounting and accountability reforms entail not only about how developing countries being governed through these reforms but also about how accounting research itself can be pursued alternatively. In the past several decades, a camp of British accounting researchers initiated a programme of research in this direction. Inspired by post-positivistic traditions, they aimed to explore how these reforms are predicated upon cultural-political milieus in developing countries. However, the academia in most accounting and management researchers from local universities in these countries are blindly bombarded with positivistic traditions.
Originality/value
The authors unpack how this hegemony formed and how attempts were made towards some emancipatory potentials.
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This study aims to explore corporate managers’ perspectives regarding the disclosure (non-disclosure) of social- and environment-related governance information.
Abstract
Purpose
This study aims to explore corporate managers’ perspectives regarding the disclosure (non-disclosure) of social- and environment-related governance information.
Design/methodology/approach
Insights into corporate managers’ perspectives are explored by conducting in-depth personal interviews with senior corporate executives of textile and garment companies in Bangladesh.
Findings
This study establishes that the use of traditional media, such as corporate annual reports, for corporate social responsibility (CSR)-related governance information disclosure can be limited in particular situations, including the case of garment companies, wherein the provision of extensive governance information is necessary, and the information users find special purpose reports, e.g. social audit reports, more comprehensive, credible, and beneficial than annual reports. The results reveal that corporate managers of Bangladeshi supply companies are motivated by financial returns, and they aspire to ensure that buyers (powerful stakeholders) obtain the required CSR-related governance information; this is neither driven by corporate accountability nor transparency. Upon using the managerial branch of the stakeholder theory, the result of this study shows that corporate managers are influenced by powerful stakeholders when they make decisions vis-à-vis the provision of CSR-related governance information.
Originality/value
This study provides an implication for academics and practitioners toward understanding that corporate managers often provide substantive disclosures of CSR-related governance information through alternative media that have not been previously documented in the literature. Herein, a metaphor – veil – is used to illustrate the visibility gap between societal expectations and managers’ perspectives.