The influence of executive age,career horizon and incentives on pre-turnover earnings management

In this paper we hypothesize that CEOs will be motivated to manage earnings prior to a turnover decision. This motivation comes from the horizon problem for CEOs nearing retirement age and for CEOs whose profit-based bonus is a large portion of their total compensation. We find that firms in which CEOs are nearing retirement age have large discretionary accruals in the year prior to turnover. Although we find firms with a larger proportion of profit-based bonus pay have larger discretionary accruals, this result is not robust with the inclusion of control variables in the regressions.

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The Organizational Architecture of Nonprofit Governance: Economic Calculation Within an Ecology of Enterprises

This paper treats nonprofit firms as elements within the ecology of enterprises that constitute an economy. Within this ecological framework, nonprofit governance must to a significant extent be guided by economic signals generated through market competition. After we examine the problems of economic calculation that nonprofit enterprises face, we consider the organizational logic of nonprofit firms as one that is driven by the creation of points of contact with the market economy. The operation of this logic creates some general limit on the range and size of nonprofit firms, and also presents issues of governance that differ from those faced by profit-seeking firms. Subsequently, we use our conceptual framework to illuminate some issues concerning the organization of nonprofit firms.

Motivating job design as a factor in open source governance

Successful open source software (OSS) projects can be considered as examples of how ambitious work results can be achieved in web-based collaboration even when monetary incentives are low or absent. While former explorations of motivational processes in OSS projects primarily focused on person-oriented aspects such as motives, interests, and expected benefits of contributors, job-related factors have been largely neglected. After discussing the limitations of a person-oriented focus, a research perspective is suggested that concentrates on job design and work context in OSS based on frameworks from work psychology. A theoretical analysis is presented discussing job characteristics of successful OSS projects as potential explanations of the high motivation of OSS contributors. Compared to a person-oriented perspective, the results of a job-oriented approach might be better transferable to other projects (both OSS and “closed source” software development) and provide guidelines for the governance of successful web-based collaboration.

Thinking About Stakeholders of Public Agencies: The Georgia Department of Transportation Stakeholder Audit

Practitioners and scholars have grown increasingly interested in recent decades in how public administrators should and can work with the constituencies they serve. To date, most of this conversation has focused on citizens and broader communities rather than on stakeholders more generally, but these other stakeholders, ranging from oversight policy-making bodies to private sector and nonprofit contractors to governmental partners, are no less important than the general public. The purpose of this paper is to propose a first step that many agencies might take in thinking about their range of stakeholders, a step that we term a “stakeholder audit.” A stakeholder audit entails (1) mapping the universe of an agency’s stakeholders, (2) assessing the agency’s perceived needs for additional information relative to various stakeholder groups, and (3) developing suggestions on how to obtain that information. After first discussing the more general idea of stakeholder analyses, we describe the stakeholder audit technique, and illustrate how it has been applied to a particular agency, the State of Georgia’s Department of Transportation. We conclude by considering how a stakeholder audit could represent a first step for an agency in improving relationships with its stakeholders.

Substitution, availability and preferences in earnings management: empirical evidence from China

Our study analyzes financial reporting data on earnings management from a rapidly changing economy—the PRC. Some Chinese regulatory reforms allow for an easy identification of incentives to engage in both accounting and real earnings management activities. In addition, straightforward economic reasoning suggests that firms incur different costs for pursuing these strategies, which leads to the possibility of a hierarchy or ranking of different earnings management practices. Our results show that accounting and real earnings management activities were significantly higher for firms in danger of missing a regulation imposed performance threshold. After controlling for the availability of the different instruments, our results provide weak evidence for a ranking of different earnings management activities.

Japan’s Innovation of Public Organizations in the Research and Development Field

The Japanese government implemented drastic restructuring of the central government in 2001. As a part of this reform, the incorporated administrative agency (IAA) system was newly introduced in view of carrying out certain public functions in a more flexible, business-like and autonomous way. Research and development activities in the public sector are now mostly conducted by the incorporated administrative agencies. In this article, the purpose of this reorganization is firstly described followed by the outline of this system and current accomplishments. In concluding, the Japanese undertaking of a new public organization is analyzed in comparison with the European and “Anglo-Saxon” countries.

Revisiting the Dartmouth Court Decision: Why the US has Private Nonprofit Agencies Instead of Public Non-Governmental Organizations (NGOs)

In 1819, the US Supreme Court ruled in Dartmouth v. Woodward that Dartmouth College, even though originally chartered by government, was legally akin to a private corporation. This landmark decision was the founding legal document of what has become the American private nonprofit sector. While the decision has attained hagiographic status, this paper explores what the US nonprofit sector would look like if the Supreme Court had ruled the other way. Using alternate history and scenario writing as research methodologies, it highlights the invisible losses due to the decision and depicts what a public nonprofit sector would have looked like.

The role of risk preferences and flexibility for risk management: lessons from a custom manufacturing environment

In this paper, we study the management of financial risks of a custom manufacturer in the specialty chemicals industry arising from increased volatility of profits caused by market uncertainty and growing competitive pressure due to globalization. We argue that such risk management can be established either by creating and utilizing flexibility or by adjusting the risk preferences. Using a model-based approach, we operationalize flexibility and risk preferences to show their effects on the profit/risk and the decision making of a firm through a stylized example motivated by the specialty chemicals business.

Perceptions of Nonprofit Funding Decisions: A Survey of Local Public Administrators and Executive Directors of Community-Based Housing Organizations (CBHOs)

This article compares how local public administrators and executive directors of community-based housing organizations (CBHO) perceive nonprofit funding decisions. The article’s findings suggest that both groups shared perceptions about the scope of affordable housing and factors influencing its funding. Yet, important differences existed. Public administrators were ambivalent about nonprofit capacity and affordable housing outcomes. They also underestimated the importance of networks, partnerships, and minority leadership. Professionals in the nonprofit sector underestimated fair housing concerns and overestimated the importance of promoting homeownership. These insights improve our understanding of the connection between funding patterns, public-nonprofit sector relations, local governance, and administrative structures.

The effect of product variety on purchase probability

Regarding the effect of product variety on purchase probability, there exist findings which demonstrate a positive effect of variety for small assortments and a negative effect of variety for large assortments. Despite these results, little evidence exists about the causal mechanism of this effect. We conduct a field study among German consumer electronics customers to investigate the previously proposed constructs of anticipated product utility, anticipated regret and evaluation costs. The results suggest that anticipated regret and evaluation costs play a powerful role in explaining the negative link between variety and purchase probability for high variety assortments. Anticipated product utility on the other hand serves to explain part of the positive causality for low variety assortments. The results obtained give rise to recommendations for the planning of assortments.