Evaluation of auditor decisions: Hindsight bias effects and the expectation gap

Hindsight bias is said to exist when individuals overestimate the extent to which an outcome could have been anticipated prior to its occurrence. Ex post, litigants tend to blame auditors in hindsight for failing to foresee and anticipate subsequent financial problems of their audit clients. However, it is not known whether the blame attributed in hindsight is due to hindsight bias or other factors such as the generally hypothesized user-preparer expectation gap. A behavioral experiment was conducted with 65 federal and state general jurisdiction judges and 58 auditors from one of the Big-Six public accounting firms. Results indicate that judges provided significantly lower evaluations of auditors' performance than did auditors, reflective of an expectation gap. Of greater importance, our results reveal that evaluative judgments of auditors' performance are subject to hindsight bias. Additional analysis revealed that our results are consistent with a cognitive interpretation of hindsight bias.     

Designing and facilitating collaboration in R&D: A case study

This case study aims to highlight the strategic decisions and managerial practices in the formation and operation of a co-located research unit within a national laboratory. The empirical evidence is based on interviews with members of the research unit as well as responses from a research environment survey. The findings of the case study suggest specific strategies that are conducive not only for the co-location of research units but also for research management in general. Principal among these are the need to balance increases in diversity and complexity with mechanisms of integration and the use of specific management practices and leadership qualities that support these activities.     

Moral Values, Moralism, and the 2004 Presidential Election

The "moral values vote" in the 2004 American presidential election should be interpreted more broadly than as a reflection of concerns about same-sex marriage and abortion. Instead of specific hot-button social policy issues, a general personality trait of moralism—the tendency to perceive a moral dimension in everyday decisions—may have contributed to the election outcome. Specifically, we hypothesize that some Bush supporters shared Bush's high level of moralism (as reflected in his rhetoric) and that this moralism motivated their votes. Consistent with our hypothesis, a preliminary empirical investigation suggests that Bush voters were, indeed, higher in moralism than were Kerry voters. Plans for further research and political strategy implications are discussed.     

Effects of nonverbal intimacy on arousal and behavioral adjustment

The effects of two intimacy manipulations, 80% eye contact (EC) and combined lean, touch, 50% eye contact (LT), were examined in a bogus waiting period involving a male confederate-male subject pairing. Hypothesized arousal increase was found only for the LT manipulation when it occurred later, rather than earlier, in the waiting period. Associated with that increased arousal were weak tendencies for increased eye contact and talking. These results offered limited support for the arousal model of interpersonal intimacy (Patterson, 1976). However, it also appeared that the directing effect of the specific social context qualified the impact and meaning of the confederate's high intimacy.The authors thank Larry Halligan and Joan Naylor for their assistance in conducting this experiment and also Bill Ickes for his constructive comments.This project was completed under National Institute of Health grant, USPH RO1 MH 32386 01 awarded to the first author.     

“Feeling Warmth and Close to Her”: Communication and Resilience Reflected in Turning Points in Positive Adult Stepchild–Stepparent Relationships

With the goal of understanding the development of positive stepchild–stepparent relationships, the researchers focused on turning points characterizing the interaction of adult stepchildren who have a positive bond with a stepparent. Engaging a relational turning points perspective, 38 stepchildren (males and females, ages 25 to 52 years old) who reported a positive stepparent relationship were interviewed, generating 269 turning points which were categorized into 15 turning point types and coded by valence. Turning points occurring most frequently were: prosocial actions, quality time, conflict/disagreement, changes in household/family composition, and rituals. Findings are discussed, including implications for developing and enacting resilient and positive stepchild–stepparent relationships and future directions for researchers wanting to focus on positive family interaction.     

Disrupting global disability frameworks: settler-colonialism and the geopolitics of disability in Palestine/Israel

In recent years, Israel has seen an increase in disability studies scholarship and disability rights activism. At the same time, critical disability studies scholars have begun calling attention to the role of colonization and neocolonial powers, too often obscured in disability studies work, in disabling oppressed nations. This article brings these critiques in conversation with disability studies scholarship regarding Occupied Palestine to argue that disability is inextricably intertwined with the settler-colonial project of the Israeli state. By highlighting the geopolitical production of disablement, this work suggests that social approaches to disability have largely effaced disability injustice rooted in geopolitical power imbalances.     

Building Supply Chain Resilience through Virtual Stockpile Pooling

Stockpiling inventory is an essential strategy for building supply chain resilience. It enables firms to continue operating while finding a solution to an unexpected event that causes a supply disruption or demand surge. While extremely valuable when actually deployed, stockpiles incur large holding costs and usually provide no benefits until such a time. To help to reduce this cost, this study presents a new approach for managing stockpiles. We show that if leveraged intelligently, stockpiles can also help an organization better meet its own regular demand by enabling a type of virtual pooling we call virtual stockpile pooling (VSP). The idea of VSP is to first integrate the stockpile into several locations’ regular inventory buffers and then dynamically reallocate the stockpile among these locations in reaction to the demand realizations to achieve a kind of virtual transshipment. To study how to execute VSP and determine when it can provide the most value, we formulate a stylized multi‐location stochastic inventory model and solve for the optimal stockpile allocation and inventory order policies. We show that VSP can provide significant cost savings: in some cases nearly the full holding cost of the stockpile (i.e., VSP effectively maintains the stockpile for free), in other cases nearly the savings of traditional physical inventory pooling. Last, our results prescribe implementing VSP with many locations for large stockpiles, but only a few locations for small stockpiles.     

Two Thomases: Dublin Castle and The Quality of Life in Victorian Ireland

Administration of Ireland in the nineteenth century was carried out, principally, by three senior officials who were appointed by the current Prime Minister in London, and who served at his pleasure. There were two periods, 1835–1840, and 1853–1869, when Ireland was served by two outstanding men, Thomas Drummond and Thomas Larcom. Both men were trained as military engineers, and were well acquainted by both their membership in the Corps of Royal Engineers and by their shared participation in some projects of the civil government. Their paths to high office were different; Drummond distinguished himself by his skill at technology, and Larcom achieved wide recognition through his imaginative service in the mapping of Ireland. In their periods of service, these two Sappers further distinguished themselves by the quality and selflessness of their of their work. Improvement of quality in the life of the Irish people is documented by presentation of social indicators data from the period 1831–1871.     

Comparing child protective investigation performance between law enforcement agencies and child welfare agencies

This study examines the comparative effectiveness of using law enforcement agencies for child protective investigation (CPI), in contrast with the traditional approach of CPI conducted by the public child welfare agency. The analysis uses 2006-2007 data from a natural experiment conducted in Florida to show modest differences in performance and cost-efficiency between the two approaches to CPI. These findings may have implications for other states considering outsourcing CPI to law enforcement.     

Confidence regions for the common mean vector of several multivariate normal populations

Suppose that there are independent samples available from several multivariate normal populations with the same mean vector m? but possibly different covariance matrices. The problem of developing a confidence region for the common mean vector based on all the samples is considered. An exact confidence region centered at a generalized version of the well-known Graybill-Deal estimator of m? is developed, and a multiple comparison procedure based on this confidence region is outlined. Necessary percentile points for constructing the confidence region are given for the two-sample case. For more than two samples, a convenient method of approximating the percentile points is suggested. Also, a numerical example is presented to illustrate the methods. Further, for the bivariate case, the proposed confidence region and the ones based on individual samples are compared numerically with respect to their expected areas. The numerical results indicate that the new confidence region is preferable to the single-sample versions for practical use.