Larissa Kyj

Antecedents of Budget Participation: Leadership Style, Information Asymmetry, and Evaluative Use of Budget

This study explores the causes or antecedents of budget participation to understand more fully the role of participation in the workplace. The study focuses on the reasons why superiors encourage the budget participation of their subordinates and draws upon several theoretical perspectives including leadership theory, agency theory and organizational justice. To examine the issues, a survey was administered to managers and supervisors in several companies. Results of path analysis suggest that superiors encourage subordinate participation when the superiors leadership style is considerate. This implies that budget participation may mediate the relation between leadership style and work outcomes. Results also suggest that superiors encourage participation when budget goals are used in the performance evaluation of subordinates, in which case, the study argues, the superiors encourage participation because of concerns about organizational justice. This finding implies that budget participation may mediate the relation between the evaluative use of budget and those work outcomes that prior research has linked to organizational justice. The proposed relation between information asymmetry and budget participation is not supported.

First Delta bank

Abstract In recognizing the changing environment of the accounting profession, “The CPA Vision Project” of the AICPA speculates that an historical emphasis on facts and numbers may prove to be a major stumbling block to the professions survival. The projects White Paper recognizes that the accountants of today and tomorrow must “step out of the box” and provide their organizations and clients higher levels of analytical advice and business strategic planning. The Federation of Schools of Accountancy (FSA) Position Statement on the Role and Responsibilities of the University Professoriate , revised August 1997, http://www.ramsearch.co.cardweb.com/cardtrack , specifically references the need to “make connections across disciplines and to place specialties in a larger context” in accounting research and education. That accounting professionals draw on diverse disciplines in practice should be reflected in the educational model. This interdisciplinary case deals with financial accounting and analysis in the credit card industry. The case has several objectives. First, it introduces students to practices in the credit card industry, which is becoming very important in the e-commerce age. Second, it provides students with an opportunity to analyze financial statements specifically targeting profitability concerns and to use that analysis to make informed strategic decisions. Third, it reinforces basic concepts of asset securitization accounting, such as accounts receivable and loan securitizations, as well as introduces students to off-balance-sheet accounting issues. Fourth, it promotes critical thinking by asking students to decide what action to take when several options are available. Finally, it helps students develop research skills by using and/or interpreting Statements of Financial Accounting Standards No. 91 and No. 105 as well as Internet searches and library resources. This case can be used at the undergraduate level, in MBA programs, and in executive education programs.

The Role of Marketing in the Evolution of Residential Real Estate in Kiev, Ukraine

This paper looks at the way the Ukrainian residential real estate market has evolved in Kiev, Ukraine through an analysis of primary sources. Real estate information bulletins from three different agencies are studied over a period of four years. The scope and sophistication of marketing has clearly improved and there is strong evidence for growing professionalism within the industry. The authors suggest that improved marketing practices have had an impact in improving the quality of information available to Ukrainian consumers.

An Experimental Examination of the Combined Effects of Normative and Instrumental Commitments on Budgetary Slack Creation: Comparing Individuals versus Group Members

Abstract Purpose The purpose of this study is to investigate how a combination of Normative Commitment (NC) and Instrumental Commitment (IC) affects the creation of budgetary slack when the decision-making mode is individual versus group. Methodology We use 86 students in a two-by-two experimental design (individuals vs. groups and a combination of NC/IC vs. no NC/IC), fully crossed between participants, to examine the combined effects of NC/IC on budgetary slack creation by individuals and group members. Findings The results show that groups without NC/IC create the highest budgetary slack and differ from the other three experimental cells (groups with NC/IC and individuals with and without NC/IC). In addition, individuals with NC/IC also differ from individuals without NC/IC. Research limitation Research limitations are formation of groups, validity threats common to laboratory experiments, and generalizability of the findings. We do not believe these limitations are affecting the results. Practical implications As organizations continue to increase the use of group decision-making for setting their budgets, they may want to monitor groups with low NC/IC due to higher slack creation. Social implications Use of groups can impact prosocial behavior via creating a “label” and/or forming social ties in budgeting. Originality/value of the paper This study extends budgetary slack creation under individuals versus group decision-making, introduces the combined effects of NC/IC as a psychological contract to the accounting literature, and examines the combined NC/IC effect on groups as compared to individuals.

A Relational Framework for Analyzing Ventures in Cognitive Environments: Illustrations from the TNK-BP Experience

This article looks at multinational investments in Central and Eastern Europe from a relational matrix perspective. The matrix posits a set of business relationships as outcomes of environment, regulatory or cognitive, and cluster valence combinations of power, urgency, and legitimacy. BPs pursuit of petroleum reserves leading to the venture with Russias TNK is offered as a case study pointing to two general propositions relating the conduct of global firms in the region. Data analysis relating foreign direct investment with degrees of perceived corruption supports the propositions of opportunistic behavior and acceptance of opaque environments by global petroleum companies. The legitimacy construct is shown to be most prone to erosion, and its diminution impacts a firms operating flexibility.

Flat tax proposals: A current review, with a history of the arguments pro and con

This paper reviews recent political proposals for a flat tax within a broad historical perspective. That perspective traces economic and philosophical arguments about a “just” tax from the 16th century to the present, focusing on progressive versus flat marginal tax rates. The conclusion is that none of the flat tax proposals differ dramatically and none proposes a pure flat tax. The political debate is one that focuses on the issue of whether or not an incalculable and only potential inequity cost to society is overshadowed by a calculable benefit by reducing compliance cost and possibly stimulating economic growth by the reduction of marginal tax rates.