The effect of accounting standards on Big Bath behavior

This paper investigates the influence of accounting standards on systematic earnings understatement. To isolate the effect of reporting regulations from those of other institutional drivers of earnings management, Holthausen (2003) proposes analyzing reporting practices in a country undergoing a transition in accounting standards. We respond to this call by analyzing earnings management practices of large German-listed companies before and after their transitions from German GAAP to IFRS. Specifically, we focus on Big Bath behavior following Chief Financial Officer turnovers between 1999 and 2006. Our findings provide evidence of the effect of accounting standards on the existence of this particular earnings understatement pattern. However, while we detect Big Bath behavior for our sample of German GAAP firms, we find no such indication for those firms reporting under IFRS. Controlling for alternative explanations such as self-selection bias does not change our findings. We conclude that accounting standards seem to have a considerable influence on earnings management behavior, independent of managers’ and auditors’ incentives.     

The Science of Two‐Timing: The State of Infidelity Research

This article provides an overview of research on infidelity in an effort to synthesize past studies and orient future studies. It begins with infidelity estimates, followed by a synopsis of evolutionary explanations prominent in both popular and academic writing. Despite the potential utility of evolutionary arguments, I argue that infidelity needs to be understood as a dynamic social process subject to influence by the context in which it is embedded. This conceptualization urges scholars to attend to the component, proximate, and psychological factors that affect one’s decision to engage in infidelity. Accordingly, I categorize empirical infidelity research in this manner. I conclude by addressing new developments and avenues for future research.     

Curation: a theoretical treatment

Curation is a key mechanism of sociality in a digital era. With an abundance of information, sifting, sorting, selecting, hiding, and standing out become laborious tasks. While researchers have diligently documented people’s curatorial strategies, digital curation remains undertheorized in its own right. I therefore theorize digital curation by disentangling productive curation from consumptive curation, addressing how people curate content that they share, and that which they consume. I embed these agentic curatorial practices within structural bounds, both social and technological. In doing so, I offer a basic theoretical model that captures a dynamic relationship between individual curators, their social networks, and technological design.     

WHICH JOURNAL RANKINGS BEST EXPLAIN ACADEMIC SALARIES? EVIDENCE FROM THE UNIVERSITY OF CALIFORNIA

The ranking of an academic journal is important to authors, universities, journal publishers, and research funders. Rankings are gaining prominence as countries adopt regular research assessment exercises that especially reward publication in high‐impact journals. Yet even within a rankings‐oriented discipline like economics there is no agreement on how aggressively lower‐ranked journals are down‐weighted and in how wide is the universe of journals considered. Moreover, since it is typically less costly for authors to cite superfluous references, whether of their own volition or prompted by editors, than it is to ignore relevant ones, rankings based on citations may be easily manipulated. In contrast, when the merits of publication in one journal or another are debated during hiring, promotion, and salary decisions, the evaluators are choosing over actions with costly consequences. We therefore look to the academic labor market, using data on economists in the University of California system to relate their lifetime publications in 700 different academic journals to salary. We test amongst various sets of journal rankings, and publication discount rates, to see which are most congruent with the returns implied by the academic labor market. (JEL A14, I23, J44)     

Thomas Dew and the rise of proslavery ideology at William & Mary

In 1831, Nat Turner led an insurrection in Southampton County, Virginia that left more than 60 men, women, and children dead. This slave revolt left white Virginians in fear for their lives and questioning the ‘peculiar institution’ in their midst. Proslavery ideologue and William & Mary professor, Thomas Roderick Dew, stepped in and provided the intellectual foundation that calmed their fears and made the continuation of the southern way of life possible – at least for a little while longer.     

Ethical living: relinking ethics and consumption through care in Chile and Brazil

Mainstream conceptualizations of ‘ethical consumption’ equate the notion with conscious, individual, market‐mediated choices motivated by ethical or political aims that transcend ordinary concerns. Drawing on recent sociology and anthropology of consumption literature on the links between ordinary ethics and ethical consumption, this article discusses some of the limitations of this conceptualization. Using data from 32 focus groups conducted in Chile and Brazil, we propose a conceptualization of ethical consumption that does not centre on individual, market‐mediated choices but understands it at the level of practical outcomes, which we refer to as different forms of ‘ethical living’. To do that, we argue, we need to depart from the deontological understanding of ethics that underpins mainstream approaches to ethical consumption and adopt a more consequentialist view focusing on ethical outcomes. We develop these points through describing one particular ordinary moral regime that seemed to be predominant in participants’ accounts of ethics and consumption in both Chile and Brazil: one that links consumption and ethics through care. We show that the moral regime of care leads to ‘ethical outcomes’, such as energy saving or limiting overconsumption, yet contrary to the mainstream view of ethical consumption emphasizing politicized choice expressed through markets, these result from following ordinary ethics, often through routines of practices.     

Asymptotic theory for maximum likelihood estimates in reduced-rank multivariate generalized linear models

Reduced-rank regression is a dimensionality reduction method with many applications. The asymptotic theory for reduced rank estimators of parameter matrices in multivariate linear models has been studied extensively. In contrast, few theoretical results are available for reduced-rank multivariate generalized linear models. We develop M-estimation theory for concave criterion functions that are maximized over parameter spaces that are neither convex nor closed. These results are used to derive the consistency and asymptotic distribution of maximum likelihood estimators in reduced-rank multivariate generalized linear models, when the response and predictor vectors have a joint distribution. We illustrate our results in a real data classification problem with binary covariates.     

Deliberative street politics and sacralized dissent: Morocco’s 20 February movement and the Jamaa Al Adl Wal Ihsane

During a wave of protest in 2011, Morocco was home to its own uprisings, spurred on by the 20 February movement. Unlike its neighbors to the east, the Moroccan regime was never dismantled. So, what was the sociopolitical significance of the 20 February movement? This profile examines the landscape at the time of uprisings and presents brief interview data to make the case that these protests facilitated a political articulation and a new deliberative street politics.