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.     

5‐Month‐Olds’ Categorization of Novel Objects: Task and Measure Dependence

To examine key parameters of the initial conditions in early category learning, two studies compared 5‐month‐olds’ object categorization between tasks involving previously unseen novel objects, and between measures within tasks. Infants in Experiment 1 participated in a visual familiarization–novelty preference (VFNP) task with two‐dimensional (2D) stimulus images. Infants provided no evidence of categorization by either their looking or their examining even though infants in previous research systematically categorized the same objects by examining when they could handle them directly. Infants in Experiment 2 participated in a VFNP task with 3D stimulus objects that allowed visual examination of objects’ 3D instantiation while denying manual contact with the objects. Under these conditions, infants demonstrated categorization by examining but not by looking. Focused examination appears to be a key component of young infants’ ability to form category representations of novel objects, and 3D instantiation appears to better engage such examining.     

La répartition régionale de la prime aux qualifications en Chine urbaine: implications sur la croissance et les inégalités

Les auteurs observent que la prime aux qualifications a augmenté dans toutes les régions de Chine entre 1995 et 2002, mais seulement dans les régions côtières entre 2002 et 2007. Ainsi, ces régions présentent de plus fortes inégalités salariales, notamment en zones urbaines. Si les privatisations ont été la première raison de la montée de la prime aux qualifications entre 1995 et 2002, entre 2002 et 2007 cela a été l'intégration, inégale selon les régions, à l'économie mondiale. Réduire cette prime et les inégalités suppose de réformer le système du hukou qui fait obstacle à la mobilité de la main‐d'?uvre, donc à la croissance.     

Constructing poverty in anti-welfare Singapore

In recent years, attention on the issue of poverty in Singapore has been increasingly placed in the spotlight. This study examines the various types of attitudes among Singaporeans and how they are formed, relating them to the broader institutional context of Singapore. A mixed method design is employed where clusters or groups of attitudes are derived through the use of cluster analysis. Subsequently, discourses of poverty and welfare attitudes are construed through qualitative interviews with the aid of Foucauldian Discourse Analysis. Quantitative findings point to three clusters of attitudes: ‘Conservatives’, ‘Liberals’, and ‘Sui Generis’. Qualitative findings, however, show that ‘Sui Generis’ ultimately align themselves closer to either ‘Conservatives’ or ‘Liberals’ in their discourses of welfare. In fact, respondents in all three clusters reproduce state discourses, albeit in varying ways. In essence, this study explicates poverty and welfare attitudes as a product of social identities premised on subjective notions that are shaped by state discourses of meritocracy, self-reliance and anti-welfarism. It is thus argued that current socio-political constructions of poverty ensue a paucity of major welfare reform in the near future of Singapore.     

Permutation tests of scale using deviances

Robust tests for comparing scale parameters, based on deviances—absolute deviations from the median—are examined. Higgins (2004) proposed a permutation test for comparing two treatments based on the ratio of deviances, but the performance of this procedure has not been investigated. A simulation study examines the performance of Higgins’ test relative to other tests of scale utilizing deviances that have been shown in the literature to have good properties. An extension of Higgins’ procedure to three or more treatments is proposed, and a second simulation study compares its performance to other omnibus tests for comparing scale. While no procedure emerged as a preferred choice in every scenario, Higgins’ tests are found to perform well overall with respect to Type I error rate and power.     

Religion in the Lives of Older Women Serving Life in Prison

This exploratory qualitative study examined the roles of religiousness in the lives of 21 older women (mean age = 63) serving life sentences in one southern state. Based on survey and focus group methodology, several themes emerged as important focal points, including early religious experiences prior to incarceration, imprisonment and religious doubt, participation in formal and informal religious activities, and use of religion in coping with stressors such as interpersonal relationships, trauma, and health statuses. Irrespective of their religious upbringing, all participants agreed that religiosity/spirituality played a key role in their ability to cope with their prison experience as well as for maintaining hope and the opportunity for release.     

Assessing Value Differences Between Leaders of Two Social Venture Types: Benefit Corporations and Nonprofit Organizations

This study considers key value differences between leaders of two types of social ventures: for-profit social benefit corporations and nonprofit organizations. The research question asks to what degree the value sets of leaders of benefit corporations are congruent with those of similarly situated individuals in nonprofit organizations. The results show the values of leaders working in benefit corporations and nonprofit organizations are in many ways aligned, but there are notable statistical differences. A sectoral association of values is also present with employees in both types of organization, especially when the previous work experience of employees is considered.