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The remainder of this column provides an update on the governance committee currently operating in the Section and will supply information regarding Section activities. The Board of Officers has discussed the creation of two governance committees: a Bylaws Committee and a Policy and Procedure Manual Committee. The Section's bylaws are undergoing their first comprehensive review in several years. A committee has been formed and charged with evaluating all aspects of the bylaws including the structure of the Section's Board of Officers, standing committees, and duties of each Section officer. A preliminary report is to be prepared for discussion by the Board of Officers at the Fall 1998 planning meeting. In consultation with the Bylaws Committee, the Board of Officers plans to prepare a bylaw amendment proposal to be published in the winter 1998 newsletter. A ballot will subsequently be published for Section members to vote on the proposed bylaw changes. Changes approved by a two-thirds vote of those casting ballots will become effective the following August. The Section's Policy and Procedure Manual Committee will be created in the near future. It will be charged with providing specific operating procedures to be used when undertaking routine Section activities. This group will address such issues as the creation of committees and the commitment of Section resources. The primary Section activity currently planned is the ABO research conference. Special thanks to Jean Bedard, Jeff Cohen, and Dennis Hanno for stepping forward to plan the 1998 conference on short notice. Details for registration are provided elsewhere in this newsletter. The Section has been very successful at organizing high quality conferences and there is every reason to believe the Orlando conference will be equally successful. Preliminary plans are being developed by coordinators Chee Chow and Joan Luft for the 1999 ABO research conference. The tentative location and date for the conference is in the western U.S. during October 1999. Please attend the ABO Section business meeting in New Orleans. There are many important issues to discuss including the status of the bylaws committee. In addition, there will be updates on the Section's financial position, the program for the 1998 conference and the status of the 1999 research conference. Sincerely,
Congratulations to Dennis Bline, who has served as chair of the ABO Section this year. The Section's cash flow problems have been addressed and an exciting annual meeting and research conference are planned this year. The program for the Annual Meeting in New Orleans during August is included in this newsletter. Thanks are due Les Kren for an outstanding program! In addition, the 1998 ABO Research Conference will take place in Orlando, Florida, during October. Important dates for this conference are included in the newsletter. Do plan on taking the family! I am pleased to include in this issue two short research notes. Professor Steve Sutton of Texas Tech has a short piece, "Behavioral Research on the Impact of Decision Aids," and Professor Timothy Fogarty discusses research and postmodernity in "A Nine Paragraph Primer on Postmodernism." Other sections of the newsletter include regional AAA behavioral programs and reports from our overseas coordinators. Thanks are due the regional coordinators and the international coordinators for their efforts on behalf of the section! In addition, a "Have You Seen" column is included, and ballot information for officers of the section. I am very interested in publishing essays, research notes and commentary that would be of interest to ABO members. I try to take an inclusive approach and am looking for short pieces in the areas of decision making, ethics, critical research, grounded research (especially international) and other areas of interest to membership. Also, send all future announcements, call for papers, and other materials to me by October 15, 1998 at jrigsby@cobilan.msstate.edu for inclusion in the next issue of the newsletter. In addition, please note the request for working papers for the next issue. Have a great annual meeting! Sincerely,
The deadlines for future issues of the ABO Reporter are: 1999 Winter Issue–October 15, 1998Send news items to: Dr. John T. RigsbyBack to top Please send all submissions AFTER July 1, 1998 to: Don W. Finn, EditorBack to top
Recently, I found myself with some time to kill in the lobby of the library of Columbia College of Chicago. Searching a popular database of social science literature, I noted 488 references to the keyword "Postmodern." The breadth and depth of this tradition over the last ten years exists in ironic juxtaposition to its absence in the U.S. accounting literature. The purpose of this essay is to flesh out some basic dimensions of postmodern thought in the hope that it will resonate among behavioral accounting researchers. An understanding of postmodern approaches to behavioral research necessitates uncovering the many implicit characteristics of modernity. Initiated most clearly by Max Weber, Fredrick Taylor and the many proponents of the scientific method, the modern era's fundamental mark is its belief in rationality. Through reason, higher levels of coordination are believed to yield progress along any disciplinary line. Reason allows the development and elaboration of technologies that control that which was previously uncontrollable and yield knowledge that continues the cycle. Although researchers disagree as to its content, modern life is understood as data for a singular theory of the way things work (psychological determinism, efficient markets, Marxism) that is expounded in scholarly work. Postmodernity is a shorthanded way of dispelling the slavish belief in reason. Just suppose that rationality was a limited strategy and that progress was neither inevitable or axiomatic. Rather than attempting to make everything fit into a singular paradigm, suppose there were several equally powerful perspectives that could not be reconciled and that nobody tried? If so, we would be well down the part whereby modernity transitions to postmodernity. The release of absolute belief in rationality reflects the growing recognition that what had been called rationality was both artificial and limited. Postmodernity gives up the fight to suppress the chaos and the "noise" in furtherance of the objective of giving a hearing to that which had been otherwise silenced. Among the many stories that become possible there is no ultimate truth, just perspectives and strategies. The dream of total control (100% R²) and social engineering ("Implications for Practice") is jettisoned amidst the perpetually tenuous social relations that lie at the heart of matters. Postmodernism greatly opens that which is measured. Rather than content itself with the reifications that we often call constructs, postmodern research instead queries how such constructs are made as if real by organizational interaction. This problematization does not converge upon an absolute essence but instead is a matter of guided choice among differing possibilities. Postmodernism is not content to accept the organization as it seems to be. The pluralities, regularities and contradictions of reproduction form central questions for measurement and discussion. How does the organization maintain itself amid the chaos is a better question. Compared to modernistic inquiry, postmodern analysis tends toward more "uncomfortable" and politically incorrect questions. By refusing to subscribe to the literal "truth" of notions such as employee empowerment and goal congruence it does not implicitly legitimize managerial prerogatives and profit maximization. Challenging the fiction of organizations could be seen as a threat to those that currently benefit from these antromorphizations of personal agendas. Modernity was very grounded in conceptions of temporal and spatial certainty. Although organizations continue to grapple with the "tools" of advanced information technology, these advances must be seen as going to the heart of what the organization is. Now that we can no longer find the line between organizational presence and absence or, for that matter, between the organization and the individual, radical new ways of seeing the organization are called for. The trajectory of the self within the organization cannot be reduced to X amount of job satisfaction and Y amount of commitment. As organizations colonize the life world of their people, reflexively alter their configuration, proactivity penetrates their environments and harvests their futures, we must ask the big bold questions offered by postmodern perspectives. This is a mighty "to do" list for a group still uncomfortable with modernistic organization structure, occupational culture and language qua discourse. One obvious way postmodernism should matter to us is in our choice of methodologies. Although the divide between theory and method is illusionary, it is clear that altering how we do work will inch us toward postmodern analysis. The data we need exists nowhere but in the process of imaging the questions. We have to allow agents to be more active and to have more choices than we do when we survey them or extract "experimental" decisions from them. The idealized objectivity of our own professional practices must be opened up and its imperfections explored. "Facts" that speak for themselves aren't worth listening to. Subjectivity should not be denied but instead celebrated. Postmodernism recommends that we, as academics, come to a more "realistic" view of ourselves. Too often we tend to be seduced by our own research and captivated by our success. We allow ourselves no escape from the way we have learned to craft journal articles, ask questions and trot out the conventional motivations and implications. We tend to be conservative in our fear of failure and to prefer defensible work to interesting work. Aren't you tired of mimicking the natural sciences? Our preference for incrementalism over big leaps testifies to our perceived powerlessness, our subscription to the progress motif and our deficient imaginations. We are, on a daily basis, making our modernistic beds. That they are uncomfortable is something we don't have to accept. Introduction Over the past two decades, accounting researchers' fascination with decision aids has come and gone in waves. In the '80s, the emphasis was largely on the design, development and validation of decision support systems, intelligent decision support systems, and expert systems (the latter two are referred to as intelligent decision aids). This wave of research waned toward the end of that decade, primarily because building systems ceased to be respected as research and the accounting firms largely found intelligent decision aids to be less than successful in practice. In the '90s, there has been a bit of a revival in decision aid research; and, in large part, this wave has been fueled by behavioral researchers' interests in the impact of decision aids on individuals and organizations. This short note will focus on the current directions of this stream of research and the opportunities for behavioral accounting researchers to expand our understanding of the impact of computerized decision aids. Three specific areas are overviewed: (1) group technologies, (2) intelligent decision aids, and (3) ethical issues. Group Technologies One of the recent phenomena in the technology application area within accounting firms and corporate environments has been the rapid proliferation of group support systems. While most of these systems are Lotus Notes based and intended for use in document sharing during completion of team based work, they have the power to transform the way work teams communicate and function. Such systems are particularly beneficial when working in distributed environments where face-to-face communication is very difficult. Only a limited amount of work has been completed in this area by accounting researchers, although there is a wealth of research published in the management information systems domain. Both Bamber et al. (1995) and Hayne and Sutton (1996) provide substantial reviews of the results in the management information systems arena. However, much of that work has limited usefulness in accounting domains as the focus is generally on idea generation during problem solving tasks. This type of communication is quite different from the shared communication required of accounting professionals during completion of choice and judgment tasks. A recent article by Briggs et al. (1997–98) is an excellent source for reviewing what we do and do not know about the impact of group decision support systems and the behavioral accounting researcher should be able to easily extract the relevant questions to use in accounting domains. There are at least four published studies in accounting. Bamber et al. (1996) found that GSS and face-to-face groups arrived at similar levels of consensus, while GSS groups had greater levels of acceptance. Karan et al. (1996) found that unlike face-to-face groups, GSS supported groups did not exhibit a choice shift in judgments. Kerr and Murthy (1994) found that individuals working in GSS supported groups exhibited greater learning than did face-to-face groups. Finally, Smith et al. (1998) found that GSS supported groups outperformed face-to-face groups in a competitive choice task environment-even under time pressure. Intelligent Decision Aids One of the more perplexing questions surrounding decision aid use in practice has been the fairly consistent failure of intelligent decision aids. Bouwman (1996) notes that we know very little about why such systems have failed and infers that success may come from understanding failure. One of the issues that have added complexity to the domain is the fact that frequently individuals refuse to use a system. Reliance is a tricky concept also, as both over and underreliance can have deleterious effects on decision making. If you examine the recent literature, the results are very mixed and potentially confusing (e.g., Whitecotton 1996, Ghosh and Whitecotton 1997; Bonner et al. 1996; Eining et al. 1998, Davis 1998, and related). Arnold and Sutton (1998) put forth a theory of technology dominance based on a synthesis of the extant literature both in and out of accounting. The theory provides a framework for predicting when a user will place reliance on a decision aid, prescribes the conditions under which short-term success in use of an intelligent decision aid will occur, and predicts conditions under which long-term use will have substantial detrimental effects. In short, the theory perceives reliance to evolve from either the user being unqualified to make the decision without the aid or from a qualified decision maker finding the system familiar, the task complex, and a good cognitive fit between the user's and computer's decision processes. Further, reliance is most likely to lead to success when the expertise of the user matches the system and is most likely to fail when the system significantly outmatches the user. Only preliminary evidence supporting this theory exists; but if the theory does hold, it has broad implications for the manner in which practice has traditionally implemented intelligent decision aids. Namely, the public accounting firms have perceived intelligent decision aids to be a tool for allowing novice decision makers to make expert decisions. The theory of technology dominance would suggest this would be a major source of failure. Rather, the theory suggests that success will exude from use by experts with the intelligent decision aid becoming an electronic colleague of sorts. Thus, intelligent decision aids could improve decision making through the benefits of peer group approaches, but not through efforts to achieve labor reductions. Ethical Issues To date, the accounting literature related to ethical issues surrounding decision aid development, implementation and use has focused on intelligent decision aids. The bulk of this research has evolved from two competing philosophies: cathekontics and contractarian. The Dillard and Yuthas arguments focus on a moral philosophy approach (e.g., a theological basis) to evaluate the general impact of intelligent decision aids on various members of society that have a vested interest in the use of such technologies by audit firms. In some ways, their approach resembles stakeholder ethics, but is focused on reaching a resolution that is acceptable to all constituents (see Dillard and Yuthas 1997; Yuthas and Dillard 1996 and related). The second approach examines different traditional philosophies (teleological, deontological, and contractarian) before coming to the conclusion that contractarian ethics and the inherent focus on justice is most applicable to business environments. Contractarianism blends attributes from both teleological and deontological approaches. The focus of the Arnold, Arnold and Sutton work (see Sutton et al. 1995, Arnold et al. 1997 and related) is on the relationship between the expert and the firm developing the intelligent decision aid. Within this focus, the primary question becomes what is a just relationship between the expert and the firm. The main issue explored in demonstrating the contractarian reasoning approach is who owns the expertise in an intelligent decision aid-the expert or the firm? Should the firm be able to use the intelligent decision aid after terminating the employee? Sutton et al. (1998) note that there is a much broader array of technology related issues that have not been explored in the ethics literature. Five broad areas of concern are put forth: (1) intellectual property, (2) epistemology, (3) quality of work life, (4) competitive advantage, and (5) information privacy and security. The prior research has mostly delved into the first two with some attention given to the third category. With the advent of technologies such as group support systems, the impact on the quality of work life can be significant. Similarly, such systems have the potential to tip the balance on competitive advantage and to place information privacy at risk. All of these issues would seem to warrant investigation. This latter area of information privacy and security is also of concern in terms of imaging technology, electronic workpaper systems, and electronic mail where information can be tapped into or stolen with little trace of the violation in privacy. Little consideration has been given to these concerns while adoption has rapidly escalated. Concluding Remarks This report has been a very brief overview of several areas of research opportunity for behavioral accounting researchers who are interested in technology oriented issues. While the discussion has been intentionally brief based on the venue, the citations provided in each section should be sufficient to provide the reader with a starting pointing for identifying the relevant literature. The findings from future studies have the potential to provide a great deal of knowledge to both practice and academe in regards to the impact of technologies that are being rapidly introduced into accounting environments. Selected References Arnold, V., T. D. Arnold, and S. G. Sutton. 1997. Toward a philosophical foundation for ethical development of audit expert systems: A contractarian approach. Research on Accounting Ethics 3. Arnold, V. and S. G. Sutton. 1998. The theory of technology dominance: Understanding the impact of intelligent decisions aids on decision makers’ judgments. Advances in Accounting Behavioral Research1. Bamber, E. M., R. T. Watson, and M. C. Hill. 1996. The effects of group support system technology on audit group decision making. Auditing: A Journal of Practice & Theory. Bonner, S. E., R. Libby, and M. W. Nelson. 1996. Using decision aids to improve auditors’ conditional probability judgments. The Accounting Review (April): 221–240. Bouwman, M. J. 1996. Opportunities for behavioral research in AIS: The matter of expertise. Advances in Accounting Information Systems 4: 255–278. Briggs, R. O., J. F. Nunamaker, Jr., and R. H. Sprague, Jr. 1997–98. 1001 unanswered research questions in GSS. Journal of Management Information Systems (Winter): 3–21. Davis, E. 1998. Improving choice by aiding judgment. Advances in Accounting Behavioral Research 1. Dillard, J. F. and K. Yuthas. 1997. Ethical issues in expert systems: lessons from moral philosophy. Research On Accounting Ethics3. Eining, M. M., D. R. Jones, J. K. Loebbecke. 1997. Reliance on decision aids: An examination of auditors’ assessment of management fraud. Auditing: A Journal of Practice & Theory (Fall): 1–29 Ghosh, D. and S. M. Whitecotton. 1997. Some determinants of analysts’ forecast accuracy. Behavioral Research in Accounting 9 (Supplement): 50–68. Hayne, S. C., and S. G. Sutton. 1996. Toward effective group decision making: Integrating group support systems into the accounting environment. Advances in Accounting Information Systems 4: 279–304. Karan, V., D. S. Kerr, U. S. Murthy, and A. S. Vinze. 1996. Information technology support for collaborative decision making in auditing: an experimental investigation. Decision Support Systems 16: 181–194. Kerr, D. S., and U. S. Murthy. 1994. Group decision support systems and cooperative learning in auditing: An experimental investigation. Journal of Information Systems (Fall): 85–96. Smith, C. A. P., S. C. Hayne, V. Arnold, and S. G. Sutton. 1998. An investigation of the effect of computerized support systems on group decision making under time pressure. Advances in Management Accounting: Forthcoming. Sutton, S. G., V. Arnold, and T. D. Arnold. 1995. Toward an understanding of the philosophical foundations for the ethical development of audit expert systems. Research On Accounting Ethics 1. Sutton, S. G., V. Arnold, and T. D. Arnold. 1998. An integrative framework for analysis of the ethical issues surrounding information technology integration by the audit profession. Research On Accounting Ethics 5. Whitecotton, S. M. 1996. The effects of experience and confidence on decision aid reliance: A causal model. Behavioral Research in Accounting 8: 194–216. Yuthas, K. and J. F. Dillard. 1996. An integrative model of audit expert system development. Advances in Accounting Information Systems 4. I would appreciate hearing from any section members with suggestions for papers you feel would be of interest to others and that should be included in this column in the future. Please send any citations to me at: jrigsby@cobilan.msstate.edu. Anderson, Urton and Liza Koonce, "Evaluating the Sufficiency of Causes in Audit Analytical Procedures," Auditing: A Journal of Practice & Theory (Spring 1998, Vol. 17, No. 1): 1-12. The authors argue in this paper that one way auditors might make a judgment mistake is to conclude that only one cause is responsible for an unexpected fluctuation when, in fact, multiple causes are responsible. They test their prediction on auditors performing plausibility and sufficiency checks.Bamber, M. and R. Ramsey, "An Investigation of the Effects of Specialization in Audit Workpaper Review," Contemporary Accounting Research (Fall 1997, Vol. 14, No. 3): 501-513. The authors studied the effect of specialization at the different stages of an audit workpaper review, and did not find that specialization automatically improved review effectiveness.Beattie, V. and S. Fearnley, "Auditor Changes and Tendering: U.K. Interview Evidence," Accounting, Auditing & Accountability Journal (1998, Vol. 11, No. 1): 72-98. Examined competitive pressures in the audit market in the U.K. and found that auditor choice is strongly influenced by both economic and behavioral factors, in particular, by directors' assessment of the quality of nonattest services and the expected quality of working relationships, in addition to price and audit quality.Briers, Michael, Peter Luckett, and Chee Chow, "Data Fixation and the Use of Traditional Versus Activity-Based Costing Systems," Abacus (March 1997, Vol. 33, No. 1): 49-68. This paper reports on an experiment designed to investigate whether decision makers are able to overcome data fixation in a setting involving the use of product cost information.Chen, M. "Some Theoretical Propositions Pertaining to the Context of Trust," The International Journal of Organizational Analysis (1997, Vol. 5, No. 3): 227-248. This conceptual paper formulates hypotheses concerning trust using interpersonal and organizational contextual variables.Dalton, D. J. Hill, and R. Ramsey, "The Threat of Litigation and Voluntary Partner/Manager Turnover in Big Six Firms," Journal of Accounting and Public Policy (1997, Vol. 16, No. 4): 379-413. The authors report the results of an empirical analysis of unique questionnaire data obtained from former partners and managers who left Big Six firms during the period 1990-1992.Davis, G. and H. Greve, "Corporate Elite Networks and Governance Changes in the 1980s," American Journal of Sociology (July 1997, Vol. 103, No. 1): 1-37. Changes in corporate governance practices can be analyzed by linking the adaptations of individual firms to the structures of the networks in which firms' decision makers are embedded.DeZoort, F. T. "An Analysis of Experience Effects on Audit Committee Members Oversight Judgements" Accounting, Organizations and Society (1998, Vol. 23, No. 1): 1-21. The paper examines whether experience affects audit committee members' oversight judgements. A sample of 87 audit committee members completed an internal control oversight task to evaluate whether experience facilitated comparability with a criterion group of external auditors.Hoffman, J., G. Couch, and B. Lamont, "The Effect of Firm Profit Versus Personal Economic Well Being on the Level of Ethical Responses Given by Managers," Journal of Business Ethics (1998, Vol. 17, No. 3): 239-244. This study examines if enhancement of firm profits vs. personal economic well being caused business managers to act more or less ethically. Their findings suggest that individuals will become or act less ethically when the personal consequences are greater.Hoffman, V. and J. Patton, "Accountability, the Dilution Effect, and Conservatism in Auditors' Fraud Judgements," Journal of Accounting Research (1997, Vol. 35, No. 2): 227-237. The authors examine whether increased accountability of auditors would exacerbate the dilution effect. They did not find this effect, but increased accountability did result in more conservative fraud risk judgments.Hogue, Z. and Trevor Hopper "Political and Industrial Relations Turbulence, Competition and Budgeting in the Nationalized Jute Mills of Bangladesh," Accounting and Business Research (Spring 1997, Vol. 27, No. 2): 125-143. This paper reports an empirical investigation based on triangulation methods, of how a set of environmental facts affect budgeting characteristics in the nationalized jute mills of Bangladesh.Hunter, J., M. Platow, L. Bell, and K. Kypri, "Intergroup Bias and Self-evaluation: Domain-specific Self-esteem, Threats to Identity, and Dimensional Importance," British Journal of Social Psychology (1997, Vol. 36, No. 4): 405-426. The authors examined whether in-group bias enhances self-esteem and whether threats to self-esteem enhance in-group bias. They found support for the first postulate, but not the second one.Kennedy, J., D. Kleinmuntz, and M. Peecher, "Determinants of the Justification of Performance in Ill-structured Audit Tasks," Journal of Accounting Research (1997 Supplement, Vol. 35): 105-123. The authors examined an ill-structured audit task since performance emulation for these tasks generally rest upon the perceived justification of either the decision process or the actual choice such that understanding expert performance requires understanding the determinants of justification.Kren, Leslie and Jeffery Kerr, "The Effects of Outside Directors and Board Shareholdings on the Relation Between Chief Executive Compensation and Firm Performance," Accounting and Business Research (Autumn 1997, Vol. 27, No. 4): 297-309. In this paper, the premise was tested that boards with a relatively higher proportion of outsiders and boards with significant shareholdings maintain a closer link between corporate performance and executive pay than do boards with fewer outsiders and boards holding little stock.Labianca, G., D. Brass, and B. Gray, "Social Networks and Perceptions of Intergroup Conflict: The Role of Negative Relationships and Third Parties," Academy of Management Journal (1998, Vol. 41, No. 1): 55-67. This study investigated the relationship between interpersonal relationships among members of different departments and individuals' perceptions of intergroup conflict within an organization.Llewelly, Sue "Boundary Work: Costing and Caring in the Social Services," Accounting, Organizations and Society (1998, Vol. 23, No. 1): 23-47. This empirical research study examined front line welfare professionals responses on costing information which could, possible, assist in making "value for money" assessments and, second, on the contracting regime within which such costing information assumes a potentially highlighted significance.Lodh, S. and M. Gaffikin, "Critical Studies in Accounting Research, Rationality and Habermas: A Methodological Reflection," Critical Perspectives on Accounting (1997, Vol. 8): 433-474. The paper explores the methodological approaches to accounting research and practice and the "critical accounting movement". After surveying the literature, they look at the debates over the concept of rationality in critical accounting research, drawing attention to an account of socio-theoretical rationality which investigates the impact of accounting theory on economic and social life.Richardson, F. and B. Fowers, "Interactive Social Science: An Overview," American Behavioral Scientist (January 1998, Vol. 41, No. 4): 465-495. While mainstream social sciences in the 20th century have always been highly fragmented, this article argues that it may be helpful to classify diverse approaches to social or human science as (a) explanatory, (b) descriptive, (c) critical, (d) post modern/social constructionist, and (e) hermeneutic or interpretive approaches to such inquiry.Rupert, T. and M. Wartick, "Facilitating Performance with Cued Wording: An Examination of Reasoning in the Tax Context," Applied Cognitive Psychology (1997, Vol. 11, No. 4): 321-337. The authors investigated the ability of cued working (i.e., "is permitted" or "is required") to increase the accuracy of subject's reasoning by conducting two experiments using versions of the Wason selection task to present tax rules involving permission and obligation situations.Salterio, S. and R. Denham, "Accounting Consultation Units: An Organizational Memory Analysis," Contemporary Accounting Research (Winter, Vol. 14, No. 4): 669-691. The authors examine the role of accounting consultative units in public accounting firms through the lens of organizational memory theory.Shields, J. F. and M. D. Shields, "Antecedents of Participative Budgeting," Accounting, Organizations and Society (1998, Vol. 23, No. 1): 49-76. This paper does several things. First, it analyzes 47 published studies on participative budgeting. Second, to provide additional insight, they report the results of a survey which identifies reasons why managers participate in setting their budgets. Third, they report how these reasons are associated with four theoretical antecedents-environmental and task uncertainty, task interdependence and superior-subordinate information asymmetry.Siegel, P., R. Rutledge, and J. Hagan, "The Mentor Relationship Within the Public Accounting Firm: Its Impact on Tax Professionals' Performance," Advances in Taxation (1997, Vol. 9): 175-199. This study compared the effects of formal and informal mentoring activities within the tax departments of two large public accounting firms.Stenning, K. and P. Yule, "Image and Language in Human Reasoning: A Syllogistic Illustration," Cognitive Psychology (November 1997, Vol. 34, No. 2): 109-159. Existing accounts of syllogistic reasoning oppose rule-based and model-based methods. The authors extend previous research by showing that all these theories are members of a family of abstract individual identification algorithms variously implemented in diagrams or sentences and their analysis suggests a novel individual identification task for observing syllogistic reasoning processes.Tsui, A., J. Pearce, L. Proter, and A. Tripoli, "Alternative Approaches to the Employee-Organization Relationship: Does Investment in Employees Pay Off?" Academy of Management Journal (1997, Vol. 40, No. 5): 1089-1121. An empirical study of employees from ten companies found support for the basic hypotheses that employee responses differ under four defined approaches to the employee-organization relationship.Vera-Munoz, S. "The Effects of Accounting Knowledge and Context on the Omission of Opportunity Costs in Resource Allocation Decisions," The Accounting Review (January 1998, Vol. 73, No. 1): 47-72. This study examines whether accounting knowledge is associated with a decision maker's tendency to ignore opportunity costs in business decisions.Wright, A. and S. Wright, "An Examination of Factors Affecting the Decision to Waive Audit Adjustments," Journal of Accounting, Auditing and Finance (Winter 1997, Vol. 12, No. 1): 15-36. The authors examine variables that may explain the decision to waive an audit adjustment, and found that in addition to materiality, other factors considered include the directional impact on income, the nature of the adjustment, and the size of the client.Back to top Behavioral To Manage is Not to Control: Perspectives on Individuals, Business Settings and Universities –Roger K. Doost, Clemson University Job Satisfaction in Accounting Practice: A Comparison of Two Periods – Joyce Strawser, Seton Hall University; James C. Flagg, Texas A&M University; and Sarah A. Holmes, Texas A&M University Are Group Judgments and Memories of Audit Evidence Susceptible to Recency Effects? –Sunita S. Ahlawat, Rutgers University
The Effects of Information Conditions on Auditors' Decision Making in Analytical Review: Probability and State Judgements – Monwoo Lee, Western Kentucky University
ABO Panel: "Group/Team Research in
Accounting: Lessons From Other Disciplines"
Behavioral Research and Auditor Expertise: Time to Broaden the Focus –Joseph A. Russo, Jr., Pace University Agency Relationships and Internal Auditors' Consideration of Fraud – Bryan K. Church and Arnold Schneider, Georgia Tech University Jeffrey J. McMillan, Clemson University
The Effect of Subject Type and Experiment Setting on Corporate Bankruptcy Prediction: A Meta-Analysis –Jerry W. Lin, University of Nevada, Las Vegas and Mark I. Hwang, Central Michigan University The Use of Prospect Theory in Describing Stock Price Predictions and Earnings Disclosures – D. Elaine Sanders, University of Texas at San Antonio and Jane L. Coelho, University of Texas at San Antonio
The Effect of Balance in Team-Player Styles on Team Effectiveness – Richard Ott, Kansas State University and Dann G. Fisher, Kansas State University Innovativeness in Public
Accounting: Consulting vs. Audit and Tax –Scott L. Summers, University
of Missouri-Columbia; John T. Sweeney, University of Missouri-Columbia;
and Carel M. Wolk, University of Tennessee at Martin
Time Pressured Persuasion and Consideration of Source Expertise–Terri L. Herron, University of Montana Papers presented at the 1997 Canadian Academic Accounting Association Conference, in the ABO domain, May 29 to June 1, 1997, St. John's, Newfoundland. Topic: "The Many Faces of Accounting" Auditing Research Chair: Dan Simunic,
University of British Columbia
Auditor-Client Management Negotiations and Relative Expertise: Model, Corroboration and Predictions –Michael Gibbins, University of Alberta and Steven Salterio, University of Alberta Audit Group Decision Making: The Impact of Time Pressure and Group Support Systems – Vicky Arnold, University of Massachusetts Dartmouth; Steve Sutton, Bryant College; Stephen Haync, Arizona State University West; and Charles Smith, University of Montana Management Control Chair: Alan Richardson,
Queen's University
Fairness as a Nonmonetary Performance Incentive–Theresa Libby, Wilfrid Laurier University Cost Management Chair: Margaret Shackell,
Michigan
Changes in Cost Management in a CIM Environment–Paul Scarborough, Brock University and Michiharu Sakurai, Senshu University Research Using Canadian Accounting Students Chair: Angela Downey,
University of Lethbridge
An Analysis of the Association of Demographic Variables with the Cognitive Moral Development of Canadian Accounting Students – Linda E. Thorne, York University "Auditor's Judgement Performance of a Going-Concern Task: The Mediating Effect of Informational Abundance and a Decision Aid"–Anamitra Shone, Concordia University and Mohamed Ibrahim, Concordia University and the Hong Kong Polytechnic University "Issues in Investment Analysis" Chair: Peter Clarkson,
Simon Fraser University
The Importance of Accounting Information Investment Analysis – Gaétar Breton, Université du Quebec á Montreal and Richard Taffler, City University Business School University of Tampere Publications
Ihantola, Eeva-Mari, "Understanding the Budgeting Climate in its Organizational and Social Context," in Hyvönen & Ihantola & Leppänen & Vuorinen, Management Accounting in the Organizational Context. University of Tampere. School of Business Administration, Series A2: Research Reports 70. Tampere 1997. Turku School of Economics and Business Administration Publications
Abstract: The key elements of this study consist of management accounting, communication cultures, and people pursuing management accounting in companies. Based on our evidence, we argue that management accounting practice in Finland is tied to the national culture surrounding it, i.e., Finnishness, and that the Finnish management accounting culture is currently in a significant transition. The most prominent sign of such transformation is the emergence of the controller accountant as an important player in organizational decision-making. The background for this transition can be traced, among other things, to intense internationalisation of Finnish companies in recent years. Vanharanta, H. & Pihlanto, P. & Chang, A. M. (1997) Decision Support for Strategic Management in a Hyperknowledge Environment and the Holistic Concept of Man. In: Ralph H. Sprague Jr. (Ed.), Proceedings of the 30th Hawaii International Conference on Systems Sciences, Volume V, Advanced Technology Track, IEEE Computer Society Press: Los Alamitos, CA: 1997. (307–316). Pihlanto, P. & Vanharanta, H. (1997) Kohti ihmisläheistä päätöksenteon tukijärjestelmää ("Towards a Human Centered Decision Support System"). Tietoyhteys 2: 1997. (16–18). Carr, A. & Pihlanto P. (1997) Marketization of Government Activity: A Cautionary Note. Publications of the Turku School of Economics and Business Administration. Series: Discussion and Working Papers 8: 1997. Pihlanto, P., The Holistic Concept of Man and Perspectives on Accounting Research. Publications of the Turku School of Economics and Business Administration. Series: A–11:1997. Carr, A. & Pihlanto, P. (1997) Can We Turn Government Over to the Market? A Critique of the Marketization of Government Activity. In Demetri Kantarelis (Ed.), Business & Economics for the 21st Century–Volume 1 (Business & Economics Society International, 1997). Ongoing research
Granlund, M. & Lukka, K., "It Is a Small World of Management Accounting Practices". Abstract: In this paper it is argued that there is currently a global tendency of management accounting system designs and general ideas to get alike. After offering examples of such homogenization, the drivers of this development are distinguished and analyzed, primarily based on the model of institutional isomorphism by DiMaggio and Powell (1983). The basic explanation for the claimed tendency appears to be that drivers of convergence have started to dominate those of divergence. Also, it is argued that firms probably do not aim at gaining unique competitive advantage through their management accounting systems, but instead see them at best as supporting their operational effectiveness only. The current Finnish management accounting practices and their developments are presented as an illustrative example in order to show that management accounting systems in relatively unique cultures also follow the claimed overall homogenization tendency. Lukka, K. & Haapaniemi,
I., "Management Accounting in International Firms"
University of Vaasa Publications
Laitinen Teija (1993). The information content of alternative income concepts in predicting corporate failure. Acta Wasaensia No. 35, Business Administration No. 14, Accounting and Finance. Vammalan kirjapaino Oy: Vammala. Laitinen Teija and Maria Kankaanpää (1997). Comparative Analysis of Failure Prediction Methods. Proceedings of the University of Vaasa, Research Papers 216, Business Administration 79, Accounting and Finance. University of Edinburgh Publications
There is a forthcoming conference on management control, the Fourth International Management Control Systems Research Conference, Reading, U.K. on July 6–8, 1998. The Accounting, Behavior and Organizations Section of the American Accounting Association invites you to attend and participate in the 1998 ABO Research Conference. The Conference will be held on Friday and Saturday, October 16–17, 1998, in Orlando, Florida. Final registration details will be available in future editions of The ABO Reporter and Accounting Education News. Call for Papers
Call for Participants
Conference Facilities
May 1, 1998 – Final date for submission of papers and notice of participant's interest. Non-refundable submission fee for papers is $50, payable to AAA/ABO. June 30, 1998 – Notification of acceptance of papers. September 11, 1998 – Deadline for conference registration. Early registration fee is $195 ($145 for submitting authors, one per paper; $65 for doctoral students). October 16-17, 1998 – Conference dates. Conference Coordinators
Professor Jeffrey Cohen
Professor Dennis Hanno
Statement of Purpose
Review Procedures
Manuscript Submission
Dr. Philip H. Siegel, Dean Appointment
of New Editor
Call
for Papers
Non-empirical manuscripts should be academically rigorous. They can be theoretical syntheses, conceptual models, position papers, discussions of methodology, comprehensive literature reviews grounded in theory, or historical discussions with implications for current and future efforts. Reasonable assumptions and logical development are essential. Most manuscripts should discuss implications for research. For empirical reports sound research design and execution are critical. Articles should have well articulated and strong theoretical foundations. In this regard, establishing a link to the non-accounting literature is desirable. Replications and extensions of previously published works are encouraged. As a means for establishing an open dialogue, responses to, or comments on, articles published previously are welcomed. Submission
Information
Call
for Reviewers
The ABO Working Paper Series will be included in the next issue of the newsletter. If you have working papers in the behavioral area that you would like to share with other ABO members, then email information to me concerning: (1) the author(s), (2) the school(s), and (3) the title of the working paper. You do not have to send a copy of the working paper to me. Interested parties will contact you directly. To illustrate: Anderson, Urton and Lisa Koonce. The University of Texas at Austin. "Evaluating the Sufficiency of Causes in Audit Analytical Procedures."I would like to express my appreciation to the many researchers who have sent in working papers in the past, and encourage them and others to send in their working papers to me at jrigsby@cobilan.msstate.edu by October 15, 1998. Thanks a lot for your interest and cooperation! John T. Rigsby
Accounting research is not keeping pace with the growing internationalisation of the world of accounting practice. While accounting in action is now embedded in multinational enterprises and multinational audit firms, and subject to emerging forms of supranational regulation, accounting research still tends to focus on national contexts and thereby remains largely influenced by national traditions and national schools of thought. One result is that we still have rather crude notions of accounting diversity and the reasons for it, and rather minimal understandings of the nature and forms of international pressures for change. Even where research insights into particular national traditions of accounting exist, they almost invariably focus on a few Western countries and uncritically reflect the perspectives of the observers rather than the observed. In the international accounting literature we still seem to have more Anglo-American views of German accounting, for instance, than internally probing insights into the nature and dynamics of the accounting calculi of not only European countries but also China, Japan and other internationally significant countries.The proposed research conference aims to stimulate an alternative research agenda, one that is explicitly internationalist in orientation, probing in intent, and interdisciplinary in outlook. The conference aims both to argue for the importance of more internationally oriented forms of accounting research and to produce thought provoking exemplars of what good research of this type might look like. Within its internationalist remit, the conference should have a broad agenda covering all significant aspects of the subject. Amongst the topics it would be desirable to include are the following:
Critical histories of internationalization in accounting; accounting, empires and markets; narratives of internationalism in accounting; comparative notions of the spheres of public and private action and their implications for accounting; comparative histories of the professionalization of accounting; the internationalization of economic calculation and associated discourses and practices. The globalization of capital markets and the associated pressures for accounting change; comparative governance structures and accounting policy choices; the rise of the multinational audit firm and the creation of an international market in accounting services; comparative analyses of accounting responses to shifting agendas of the state; the globalization of key business enterprises and the functioning of management information and control systems at the global level; pressures for the internationalization of accounting education; an emerging international politics of accounting research. The emergence of regional and international forms of accounting regulation; the influences on accounting of international agencies such as the World Bank; the international migration of accounting practices and discourses, for example to the newly emergent economics of China, Eastern Europe and the former Soviet Union; the roles of international consultancy firms. Professor Anthony G. Hopwood and Professor Judy TsuiBack to top Call for Submissions
The conference will be held at the Omni Hotel in Atlanta. The Omni is located next to the CNN Tower. Tours through the CNN news studios will be available. After a long, thought-provoking day of meetings, Atlanta is a great place to enjoy a fine restaurant, abundant shopping, active nightlife and other outstanding tourist attractions. Submission Guidelines
Abstracts only will be published in the proceedings booklet. By December 1, 1998, authors of accepted submissions are expected to provide the designated session discussant with a final printed copy. Instructions for placing accepted papers on the Section's web site will be included in acceptance letters. Submission Deadline
Stanley F. BiggsBack to top The Sixth AIS Research Symposium will again take place at Scottsdale in February 1999. The symposium is sponsored by the Information Systems section of the AAA and the journal Advances in Accounting Information Systems. The symposium will be hosted by Arizona State University-West. The symposium uses a format centering around acceptance of a small number of papers for the main program, permitting time for extensive discussion during each presentation. A forum session has also been added to the symposium venue to enable small group discussion on papers at an earlier stage of development (including advanced stage working papers). All accepted papers for the main program will be published in Advances in Accounting Information Systems at the authors' prerogative. The symposium has traditionally had a strong behavioral research influence and ABO section members are strongly encouraged to submit their papers related to information technology issues. Four copies of all submissions should be forwarded to Ken Harmon to be received by September 15, 1998. Authors should follow the style guidelines for Advances in Accounting Information Systems. Submissions should include a cover letter that clearly states whether the authors wish to have their paper included in Advances if accepted, whether they wish to have their paper also considered for the forum session, and/or if they prefer that the paper only be considered for the forum.
Ken Harmon Steve G. SuttonBack to top Advances in Accounting Behavioral Research (AABR) publishes articles encompassing all areas of accounting that incorporate theory from and contribute new knowledge and understanding to the fields of applied psychology, sociology, management science and economics. The journal is primarily devoted to original empirical investigations; however, critical review papers, theoretical analyses, and methodological contributions are welcome. The journal especially welcomes manuscripts that integrate accounting issues with organizational behavior, human judgement/decision making, and cognitive psychology. Manuscripts are accepted for review with the understanding that the same work has not been previously published, that it is not under consideration for publication elsewhere and that its submission for publication has been approved by all of the authors. Articles published in AABR represent the opinions of the author(s) and should not be construed to reflect the opinions of the editor, associate editors, or publisher. Manuscripts should be double-spaced, formatted with one-inch margins all around, typeset using a 12-point proportional font (such as Times-Roman), and printed on one side of high quality white paper. Authors are requested to follow the instructions provided by the Publication Manual of the American Psychological Association, 4th ed., 1994 (see the Journal of Applied Psychology for formatting examples). Four copies of the manuscript should be submitted, along with four copies of any experimental materials or survey instruments. The first page of the manuscript should contain the article title, names and affiliations of all authors, and complete mailing address, email address, and telephone number of the corresponding author. The second page should contain the article title and an abstract. Pages should be consecutively numbered, beginning with the abstract page. Manuscripts will be reviewed by an associate editor and two blind reviewers. Please send submissions and a $25.00 processing fee (make checks payable to AABR/USF) to the following address: James E. Hunton, EditorAABR intends to provide the accounting research community with a high quality publication outlet for the growing body of accounting behavioral research. The editor and associate editors of Advances in Accounting Behavioral Research look forward to receiving your manuscripts. Advances in Accounting is a research journal providing academics and practitioners a forum to address current and emerging issues in accounting. Manuscripts may embrace any research methodology and examine any accounting-related subject. All manuscripts are blind-reviewed by two members of the editorial board. The results of initial reviews normally will be reported to the authors within ten to 12 weeks from the date of the manuscript submission. Editorial correspondence pertaining to manuscripts should be sent to the editor. A $50 submission fee is required. Philip M. Reckers, EditorAssociate Editors of Advances in Accounting include:
The Accounting Historians Journal, a double-blind-refereed, semi-annual publication of the Academy of Accounting Historians, is rated in the Brown-Huefner Contemporary Accounting Research rankings (1994) in the 19th position (of 44) in both the categories of journal familiarity and journal quality. In order to enhance the flow of research manuscripts, the Academy is pleased to announce the discontinuation of its submission fee for nonmembers of the organization, effective immediately. Manuscripts may be sent to Richard Fleischman, John Carroll University, University Heights, OH 44118. Call for literary submissions-short
fiction and poetry
The editors are seeking:
Submissions should be sent to:Back to top The AAA's 1999 Annual Western Regional Conference will be held at the Westin South Coast Plaza Hotel in Newport Beach, California during April 29–May 1, 1999. Now in its 34th year, the Western Regional Meeting brings together 250-300 scholars-faculty, administrators and doctoral students-for presentations of papers, panels and workshops on new developments in accounting. The theme of the conference will be Electronic Commerce. The Westin is a well-located business hotel nestled in the heart of Southern California's Orange County. Close to fine beaches and attractions like Disneyland, the hotel is a short free shuttle ride from the John Wayne Orange County, California, International Airport. There also are a host of shuttles connecting the hotel with the Los Angeles International Airport and other airports serving Southern California. Special discount rates have been negotiated by the American Accounting Association for the hotel and airfares. Papers submitted for presentation will be blind refereed, and authors of accepted papers can chose to have either an abstract or an up-to-eight-page version published in the Proceedings. Five copies of completed manuscripts conforming to The Accounting Review style guidelines are to be submitted; the submission deadline is November 1, 1998. Papers will be presented in 90 minute concurrent sessions on Friday, April 30 and Saturday, May 1. For further information and updates, visit the Western Region's web page at http://www.rutgers.edu/accounting/raw/aaa/western/western.htm, or contact: John E. Karayan, J.D. Ph.D.Back to top Invited Review Comparing and Contrasting Two New Resources for the Behavioral Accounting Researcher - Jacob G. Birnberg, Vicky B. Hoffman and Donald V. Moser Main Articles Critical Analysis and Recommendations Regarding the Role of Perceived Environmental Uncertainty (PEU) in Behavioral Accounting Research - Walter G. Tymon, Jr., David E. Stout and Karyll N. Shaw An Examination of Potential Gender-Based Differences in Audit Managers' Performance Evaluation Judgments - Eric N. Johnson, Steven E. Kaplan and Philip M. J. Reckers The Use of Outcome Feedback and Task Property Information By Subjects With Accounting Domain Knowledge to Predict Financial Distress - Brad Tuttle and Morris Stocks The Existence of Multiple Measures of Organizational Commitment and Experience-Related Differences in A Public Accounting Setting - Alice A. Ketchand and Jerry R. Strawser An Examination of the Validity of a New Measure of Moral Judgment - John T. Sweeney and Dann G. Fisher An Examination of Factors influencing Financial Reporting Decisions of Small Business Owner-Managers - Peggy A. Hite Going Concern Judgments: An Economic Perspective - Robert R. Tucker and Ella Mae Matsumura Instructions to Authors The Association Between Audit Reports and Bankruptcies: Further Evidence - Dasaratha V. Rama, K. Raghunandan and Marshall Geiger Retention of Women in Public Accounting: Directions for Future Research - Karen L. Hooks, Paula B. Thomas and William D. Stout Effects of Engagement-Wide Inherent Risk Factors on Auditors' Evaluations of Multiple Explanations from Client and Audit Team Sources - Saeed J. Roohani and Zabihollah Rezaee Evidence of the Relations Between Firm Characteristics and Reserve Revisions in the Petroleum Industry - Frances L. Ayres, Richard G. File and Sunkook Kwon Accounting Accruals and the Incremental Content of Earnings and Cash Flows from Operations - C. S. Agnes Cheng, Chao-Shin Liu and Thomas Schaefer An Investigation of the Impact of Market Discipline on Individuals' Price Revisions - Charles E. Davis, Elizabeth B. Davis and Daniel P. Murphy The Impact of Earnings Management on Bond Risk Premia - Thomas R. Robinson and Julia Grant A Comparison of Dysfunctional Behaviors by Tax Accountants and Auditors Under Time Budget Pressures - Tom Dalton and Tim Kelley A Comparison of AHP and ANOVA Decision Modeling Techniques in Internal Control Procedures Evaluations - Sally A. Webber and John Hassell A Longitudinal Analysis of Environmental Disclosure Practices - Sarah D. Stanwick and Richard Tabor A Bayesian Analysis of Cost-Effectiveness of Auditing for Small Businesses - Ash Deshmukh, Philip H. Siegel and Khondkar E. Karim Participative Budgeting Under Uncertainty: Multi-Period Experimental Evidence - Larissa Kyj and Penelope Sue Greenberg
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Many
ABO Section members have expressed concern regarding the Section's cash
flow difficulties announced in the previous newsletter. I am pleased to
report that the Section's cash flow position has improved since the winter.
While the cash balance is not at historical levels, it seems that actions
taken by the Board of Officers have had the anticipated result. Close monitoring
and active efforts to eliminate unnecessary expenditures will return the
Section to a sound financial position.