Morris H. Stocks

The impact of an increase in accounting information level on the judgment quality of individuals and groups

Abstract A judgment modeling experiment which used bank loan officers as participants was performed in a field setting to examine the impact of an increase in information level on the judgments of individuals and groups. The results indicate that, as predicted, groups reached judgments of higher quality than individuals at both information levels. Also as predicted, groups responded more positively (or less negatively) than individuals to increases in information level, resulting in an increase in the judgment quality gap between groups and individuals. Individuals experienced greater information processing difficulties than groups as information level increased.

Internal control systems in US churches

The concept of internal control is just as relevant to churches as it is to profit seeking organizations. Inadequate internal controls can hinder the management responsibilities of church officers and employees and place them in a position where they may be tempted to engage in questionable activities and accounting practices, or could subject individuals to unwarranted accusations of such activities. This study was designed to evaluate the effects of church size as well as the polity and hierarchical structure of denominations on systems of internal control. A questionnaire was used to collect data regarding internal controls currently in place in churches. The internal control evaluation scores were found to be significantly different based on church size. Three major denominations with different types of church polity and differing hierarchical structures were included in the study. The internal control evaluation scores were found to be significantly different based on denomination. This suggests that the polity and hierarchical structure of a denomination affect the quality of a local church’s system of internal control.

The Role of Web Site Characteristics in Initial Trust Formation

Within the context of the initial Trust Building Model (TBM) of McKnight et al. (39), we examine specific factors related to Web site quality and structural assurance. Our model is tested using an actual Web site and consumers experienced in e-commerce. Findings show that consumer perceptions of certain cognitive cues (i.e., communication, opportunism, product brand equity, Web site attractiveness) are important predictors of initial trust in an e-retailer. However, Web assurance structures are less important in the formation of initial trust and purchase intentions. It is important in the development of Web assurance and consultative services to address pertinent trust issues by offering specific Web site solutions.

A comparison of job attitudes and turnover intentions among CPAs in public, private and governmental work settings

This study examines the differences among several attitudinal variables using CPAs from three work settings. The work settings include public accounting, private industry accounting, and governmental accounting. This study uses General Linear Models to investigate the effect of work setting on the attitudinal variables of organizational commitment and job satisfaction and the effect of work setting on the behavioral variable of turnover intentions. Work setting was observed to significantly affect the reported levels of organizational commitment, job satisfaction, and turnover intentions. The results of the study also suggest that governmental CPAs and private industry CPAs do not differ with regard to the attitudinal variables addressed in this study.

Income level and income type as determinants of tax return preparation fees: An empirical investigation

Abstract This paper examines whether income level and income type, two factors affecting a taxpayers ability to pay taxes, impact tax preparation fees. To examine this research question, an empirical analysis was conducted using both an experimental approach and a survey. Experimental results indicate that CPAs estimated higher tax preparation fees for a client with a higher level of income or more unearned income. Survey results suggest that a significant number of CPAs indicate that they would charge higher fees to clients with higher incomes or more unearned income. Respondents who indicated that they, personally, would not charge higher fees to individuals with higher levels of income reported that most CPAs would charge higher fees to these individuals.

The effect of capital gains tax policy on investment company capital gains realizations

Investment companies dominate U.S. equity markets, both in terms of the large proportion of equity capital they control and the sizable trading volume they generate. This shift in the ownership of U.S. equity securities could lessen the impact of changes in U.S. capital gains tax policy which are aimed at individual investors. This paper examines the effect of capital gains tax rates on investment company capital gains realizations. Empirical tests on cross-sectional, time-series data provide evidence of an unlocking effect of lower marginal capital gains tax rates. Investment companies exhibit economic response behavior consistent with the lock-in effect characteristic of individual investors. Capital gains realized are higher during periods of low marginal capital gains tax rates. The significant permanent tax effects estimated in the analysis are strengthened when transitory effects are introduced into the model.

Does the FASB decision on stock options encourage inefficient compensation practices

The wide range of accounting treatments afforded employee stock option plans has been less than satisfactory for some time. With focus on this issue spotlighted by big money CEO compensation, the FASB is now providing guidance but does it really help?.