INFORMATION ASYMMETRY AND COMPETITIVE BIDDING IN AUDITING

This article finds that clients with greater risk of fraud are less likely to engage prospective auditors in competitive bidding, consistent with the theory that these companies seek to limit access to information that might reveal their high-risk status. In contrast, we find no support for the expectation that companies with higher agency costs will seek competitive auditor bids, due to the need for better monitoring. Our results also show that bidding competition is more likely when the bidding firm is not an industry specialist, when clients have more active corporate governance, and when there are difficulties with the predecessor auditor.(JEL D44 , D82 , M42 )     

Mental health service users' experiences of returning to paid employment

Research into mental health and employment has focused largely on people who are unemployed. This paper reports the experiences of 20 clients of employment support agencies who had succeeded in returning to work. A number of barriers to getting back to work were identified, but receiving employment support could enable people to overcome them. There was consistency with previous studies of factors associated with high and low levels of job satisfaction. Even those participants who were less satisfied with their jobs identified benefits and none described any negative effects. The quality of the employment support provided was important, including advice and counselling during the job search, enabling informed choice about disclosure and support in work. Job retention targets are required for funding programmes in addition to placement targets. Further research into the timing and processes of disclosure and into occupational health screening processes would be helpful.     

On the Choice of a Prior for Bayesian D-Optimal Designs for the Logistic Regression Model with a Single Predictor

The Bayesian design approach accounts for uncertainty of the parameter values on which optimal design depends, but Bayesian designs themselves depend on the choice of a prior distribution for the parameter values. This article investigates Bayesian D-optimal designs for two-parameter logistic models, using numerical search. We show three things: (1) a prior with large variance leads to a design that remains highly efficient under other priors, (2) uniform and normal priors lead to equally efficient designs, and (3) designs with four or five equidistant equally weighted design points are highly efficient relative to the Bayesian D-optimal designs.     

Socially Structured Games

We generalize the concept of a cooperative non-transferable utility game by introducing a socially structured game. In a socially structured game every coalition of players can organize themselves according to one or more internal organizations to generate payoffs. Each admissible internal organization on a coalition yields a set of payoffs attainable by the members of this coalition. The strengths of the players within an internal organization depend on the structure of the internal organization and are represented by an exogenously given power vector. More powerful players have the power to take away payoffs of the less powerful players as long as those latter players are not able to guarantee their payoffs by forming a different internal organization within some coalition in which they have more power. We introduce the socially stable core as a solution concept that contains those payoffs that are both stable in an economic sense, i.e., belong to the core of the underlying cooperative game, and stable in a social sense, i.e., payoffs are sustained by a collection of internal organizations of coalitions for which power is distributed over all players in a balanced way. The socially stable core is a subset and therefore a refinement of the core. We show by means of examples that in many cases the socially stable core is a very small subset of the core. We will state conditions for which the socially stable core is non-empty. In order to derive this result, we formulate a new intersection theorem that generalizes the KKMS intersection theorem. We also discuss the relationship between social stability and the wellknown concept of balancedness for NTU-games, a sufficient condition for non-emptiness of the core. In particular we give an example of a socially structured game that satisfies social stability and therefore has a non-empty core, but whose induced NTU-game does not satisfy balancedness in the general sense of Billera.      

Another chapter in the story of /r/: ‘Labiodental’ variants in British English

In this article we trace the history of [bnu;]-like variants of British English /r/. Although [bnu;] has generally been dismissed as an infantilism, or indicative of affected or disordered speech, it seems to have become established as an accent feature of non-standard south-eastern accents. We present tentative evidence to suggest this may be related to the presence of similar variants in the London East End Jewish community. After summarising previous discussions of [bnu;], we concentrate on a sociophonetic study of /r/ variants used by speakers from Derby and Newcastle. [bnu;] is found in both cities, with a higher incidence in Derby. Acoustic evidence suggests that the spreading variants are qualitatively different from [?]. We conclude that the spread of [bnu;] is part of a general and widespread process of accent levelling.     

Independence pays: a cost and resource analysis of direct payments in two local authorities

Although there is an increasing amount of literature on direct payments (DP), to date there have been few studies which have examined in any detail the costs and resources associated with them. This paper presents findings from a two year study conducted in two Welsh local authorities that jointly fund an Independent Living Support (ILS) scheme. The main study was not designed to provide definitive cost comparisons with conventional services, however, cost and resource implications of DP were considered and an analysis to determine comparative costs between DP and traditional services was undertaken. The study notes the difficulty in identifying the true cost of DP and reasonable comparators with traditional services. A set of four case studies are presented comparing actual costs of DP and in‐house and independent sector services in the two local authorities studied. The comparison of costs and resources, which did not include significant costs for traditional local authority services but included the cost of the DP support scheme, found that DP was cheaper than traditional in‐house service provision and relatively cost neutral when compared with independent sector provision. User satisfaction, however, was significantly greater with DP than traditional service delivery methods. The paper also examines factors which can potentially influence the cost of DP. The study suggests that DP represent a substantial improvement over traditional arrangements from a cost–benefit perspective. There is strong evidence to suggest that greater ‘opportunity cost’ savings can be anticipated when DP schemes become more fully integrated into policy, practice and procedures.     

The Family Affluence Scale as a Measure of National Wealth: Validation of an Adolescent Self-Report Measure

One explanation for a lack of consistency in SES-health associations in youth is that parent-based income and occupation measures are inadequate. The Family Affluence Scale (FAS), a four-item measure of family wealth, has been developed in the WHO Health Behaviour in School-aged Children Study as an alternative measure. The aim of this paper is to examine the criterion and construct validity of the FAS as a measure of national absolute wealth in 35 countries. A general measure of national wealth, Gross Domestic Product (GDP) for the year 2001, corrected for Purchasing Power Parity, was used as a gold standard. For the composite FAS index, there was a similar strength in country rank order correlation (0.87) as with GDP, and a Kappa agreement coefficient of 0.57, indicating good criterion validity. FAS index associations with national health indicators were systematically higher than the values obtained with GDP. These features suggest that FAS can be used with confidence in aggregate analyses of HBSC data that focus on relationships between SES and adolescent health.     

Re-appraising Managers' Perceptual Errors: A Behavioural Decision-Making Perspective

Findings reported by Mezias and Starbuck (2003), indicating that managers have inaccurate perceptions of their organization and its environment, are appraised in the context of work from the field of behavioural decision-making (BDM) on heuristics and biases. Drawing on theory, research and criticisms concerning calibration of human judgement, continuous versus discrete judgements and the adequacy of the normative solutions used, we identify issues that require further clarification and suggest lines of research to address them.