Laura Parte

Cognitive Load Theory: Why It’s Important for International Business Teaching and Financial Reporting

ABSTRACT Cognitive load theory (CLT) has rarely been applied in the area of financial accounting. This research demonstrates that by using CLT, financial accounting and reporting can benefit in the areas of teaching and decision making. The CLT indicates that by reducing the load of complex concepts in the working memory, a more efficient result is obtained from the expected output. A real example on International Accounting Standard (IAS) 40 on Investment Properties (IP) is used to analyze the assimilation of the true and fair view concept. This standard permits the use of either the fair value or cost value model. Additionally, the study examines whether financial presentation formats are relevant for understanding financial information. The main results show that adequate financial presentation formats reduce extraneous load, and where presentation formats cannot be changed, results can be improved by decreasing cognitive load through dedicating more time to teaching the more complex option. This research aims to aid international business education by recommending these findings to standard setters and improving education material.

Operational efficiency evaluation of restaurant firms

Purpose This study examines the operational efficiency of restaurants in a dynamic context, over the period 2011-2014. The paper also analyzes efficiency with respect to several frontiers and production technologies dependent on restaurant size. Finally, it provides a new perspective by examining financial and non-financial variables that can directly affect the efficiency of restaurant firms. Design/methodology/approach The study applies metafrontier Data Envelopment Analysis (DEA) methodology to investigate differences in production technologies, dynamic Tobit regression models and bootstrap procedure. Findings The results reveal that operational efficiency in the restaurant industry is affected by firm size, showing that large restaurants perform better than medium-sized and small restaurants Moreover, the evidence suggests a link between the efficiency index and financial variables, such as credit ratings, probability of default or bankruptcy, leverage and cash flow, as well as a link with non-financi...

EVENTS PLANNING AND SERVICE ORIENTATION: A COMPREHENSIVE STUDY OF EFFICIENCY IN TRADE SHOWS

Trade show participation is expensive for exhibitors, and therefore developing tools and methodologies in order to assess the performance and efficiency of trade shows is an important issue. The aim of this study is to determine the efficiency of trade shows with a particular focus on the service sector and the influence of business factors in the selection process of the trade show. The efficiency is estimated using audited data of exhibiting firms. Moreover, trade show efficiency in service-oriented shows is examined in detail, as is the influence of explanatory variables related to the business and service orientation of trade shows. Based on the results, the study provides conclusions and managerial implications to inform policy prescriptions that will help exhibitors to design their preshow planning process. From a preshow stage policy, socioeconomic perspective and events planning, the study highlights the importance of improving scale efficiency in the Spanish trade show sector.

Perceptions of True and Fair View: Effects of Professional Status and Maturity

This paper examines the effects that professional status and maturity have on the understanding and perception of the true and fair view (TFV) and its True and fair override in Spain. The effects were deduced by a survey conducted on students and auditors. The results show that, while the goal of reaching the TFV is fully integrated into the Spanish accounting system, the implications of such an objective are far from what would be expected. The evidence suggests a practical rejection of the overriding aspect associated with the TFV notion in the EU Directives which is demonstrated by a preference to follow the accounting standards in all cases rather than having to choose when not to apply them in order to achieve this objective. This aversion is logical in a country whose legislation allows little room for flexibility. Finally, the study identifies a pattern of change according to the participant’s professional status and maturity. It is observed that the younger and less professional participants are more concerned with obtaining the TFV than the strict coherence with the accounting standards. However, as the participants evolve according to age and professional status they prefer the TFV to be obtained by a rigorous following of the standards without having to override them, they are also more demanding for a detailed definition of TFV and are much less favourable to the imposition of fines where the TFV is not achieved by following the accounting standards.