W. Mark Wilder

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.

Factors impacting the credibility of website disclosures

Purpose – The purpose of this study is to examine credibility attributes in a website disclosure venue.Design/methodology/approach – A total of 100 MBA and Masters of accountancy students participated in an experiment to assess whether specific disclosure characteristics impact the credibility of optimistic, forward‐looking voluntary disclosures. The disclosure characteristics examined include managements ability to meet the current earnings forecast and the disclosure of positive corporate governance qualities. A between‐subjects 2×2 analysis of variance (ANOVA) is used to test the hypotheses.Findings – The findings indicate that disclosure of positive corporate governance qualities improves the credibility of optimistic, forward‐looking voluntary disclosures. In addition, the credibility of optimistic, forward‐looking voluntary disclosures is greater when management has met its current earnings forecast.Research limitations/implications – Suggestions for future research include determining whether the ...

Pro forma disclosure practices of firms applying IFRS

Purpose - – The purpose of this paper is empirically investigate the pro forma disclosure behavior of US-listed foreign firms applying International Financial Reporting Standards (IFRS). Design/methodology/approach - – The annual earnings press releases of US-listed foreign firms on the New York Stock Exchange are analyzed to compare the effect that reporting standard (specifically IFRS) has on pro forma disclosure frequency, disclosure characteristics and benchmarking. Findings - – US-listed foreign firms applying IFRS report pro forma disclosures more frequently than firms using the USA’s generally accepted accounting principles (GAAP), but less opportunistically. Originality/value - – This paper extends Epping and Wilder’s (2011) study and contributes to the pro forma disclosure literature by providing a cross-country analysis of non-GAAP disclosure based on reporting standard (IFRS or US GAAP). Understanding the non-GAAP disclosure of firms applying IFRS is useful to investors and regulators, as more countries adopt IFRS.

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?.