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.     

Organizational Commitment over the Gendered Life Course at a Mexican Company

Mexican workplaces have changed significantly in response to the global marketplace by restructuring, downsizing, and implementing new production and administrative processes. This case study analyzes organizational commitment at a Mexican‐owned multinational corporation within the context of workplace transformation. Based on in‐depth interviews with 83 women and men, I identify two sources of commitment—family‐friendly and career‐friendly employment practices. Using the framework of the gendered life course, I show commitment fluctuated given the employees' stage in the life course. This study builds on the gender and work research by exploring how individual attributes of gender and parental status contribute to organizational commitment, but are underscored by the complexity of workplace context.     

Risk Perception and Information Processing: The Development and Validation of a Questionnaire to Assess Self‐Reported Information Processing

The role of information processing in understanding people's responses to risk information has recently received substantial attention. One limitation of this research concerns the unavailability of a validated questionnaire of information processing. This article presents two studies in which we describe the development and validation of the Information‐Processing Questionnaire to meet that need. Study 1 describes the development and initial validation of the questionnaire. Participants were randomized to either a systematic processing or a heuristic processing condition after which they completed a manipulation check and the initial 15‐item questionnaire and again two weeks later. The questionnaire was subjected to factor reliability and validity analyses on both measurement times for purposes of cross‐validation of the results. A two‐factor solution was observed representing a systematic processing and a heuristic processing subscale. The resulting scale showed good reliability and validity, with the systematic condition scoring significantly higher on the systematic subscale and the heuristic processing condition significantly higher on the heuristic subscale. Study 2 sought to further validate the questionnaire in a field study. Results of the second study corresponded with those of Study 1 and provided further evidence of the validity of the Information‐Processing Questionnaire. The availability of this information‐processing scale will be a valuable asset for future research and may provide researchers with new research opportunities.     

Marriage Promotion Policy and Family Inequality

In 1996, Congress overhauled welfare policy to promote marriage and work as ways to lift American families out of poverty. Almost all of the funding for governmental marriage promotion has been devoted to relationship skills programs intended to help couples strengthen their relationships, encourage them to marry, and thereby prevent poverty. Marriage promotion policy has sparked intense debate, especially over the connection between marriage and family inequality. While advocates of the policy argue the government should promote marriage because it fosters social and economic well‐being, critics challenge the assumption that marriage itself causes these benefits or will help lift poor families out of poverty. Recent sociological research on why poor and low‐income couples marry less finds that they tend not to marry if they cannot meet a specific economic threshold. This suggests that rather than promoting the view that relationship skills en route to marriage can help prevent poverty, marriage promotion policy could likely better serve disadvantaged families by acknowledging and addressing the socioeconomic roots of family inequality.     

Dashed Hopes,Dashed Selves? A Sociometer Perspective on Self‐esteem Change Across the Transition to Secondary School

The transition from primary to secondary school challenges children's psychological well‐being. A cross‐transitional longitudinal study (N = 306; mean age = 12.2 years) examined why some children's self‐esteem decreases across the transition whereas other children's self‐esteem does not. Children's expected social acceptance in secondary school was measured before the transition; their actually perceived social acceptance was measured after the transition. Self‐esteem and Big Five personality traits were measured both pre‐ and posttransition. Self‐esteem changed as a function of the discrepancy between children's expected and actually perceived social acceptance. Furthermore, neuroticism magnified self‐esteem decreases when children's ‘hopes were dashed'—when they experienced disappointing levels of social acceptance. These findings provide longitudinal support for sociometer theory across the critical transition to secondary school.     

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)