Managerial and Functional Influences on Perceived Environmental Uncertainty

Perceived environmental uncertainty (PEU) is an important construct in behavioral research that has been widely studied. Critics argue that management should be used in the measurement of PEU, though many studies continue to ignore the distinction between management and non-management in the measurement of PEU. The distinctness of constructs and scales has important implications for the integrity of prior research. This paper examines the differences in PEU based on management versus non-management personnel, firm size, and functional areas. The research is based on a sample of 504 professionals in public accounting. The results indicate that management and non-management personnel have a significantly different level of PEU, thus confirming the criticism of studies that ignore the distinction between management and non-management measurement of PEU. Results also confirm the effects of firm size and functional areas on PEU. Future research using PEU in behavioral accounting research should consider the effect of management versus non-management, firm size, and functional areas in their research design

Relationship among Job Satisfaction, Task Complexity, and Organizational Context in Public Accounting

Prior research provides evidence on the link between job satisfaction and employee affective outcomes, including turnover and job performance. Given the importance of these variables to the management of accounting firms, this study provides insight on the variables that impact job satisfaction. While a number of researchers have examined the association between task and job satisfaction, very few if any have examined the link between organizational context and job satisfaction. This study examines the association between task complexity, organizational context variables of centralization, organizational complexity, formalization, and environmental uncertainty with job satisfaction. Based on regression results, task complexity, perceived environmental uncertainty, and organizational complexity have a strong influence on employee job satisfaction in accounting firms

An Evaluation of the Impact of Strategic Linkage on BSC Usage and Performance

Previous research supports the link between the balanced scorecard and firm performance. Research further suggests that this link may be affected by strategy, though few studies provide empirical support for this link. The purpose of this study is to examine and provide empirical evidence on how strategic linkage affects the relationship between BSC usage and performance. The research also examines factors that affect the extent of BSC usage in an environment outside the United States. Based on a sample of 259 South Korean firms, the results indicate that strategic linkage mediates the link between BSC usage and firm performance, though there was no moderating effect. The results provide support for the significant effects of organization size, market position and market competition on BSC usage. Marginal support is found for market uncertainty on BSC usage. Results indicate that product life-cycle and market growth do not impact on BSC usage

Using Lattice Models to Value Employee Stock Options Under SFAS 123(R)

SFAS 123(R) requires that employee stock options (ESO) be measured at fair value. While either the Black-Scholes or the lattice option-pricing model is acceptable under the standard, the lattice model is better suited to the unique characteristics of ESOs. The use of a lattice model has broad implications. Auditors and corporate executives must understand the variables that are used to calculate the fair value of ESOs. Lattice models are option-pricing models that involve constructing a binomial tree representing different paths that might be followed by the underlying asset during the life of the option. SFAS 123(R) requires that companies use observable market prices of identical or similar equity or liability instruments to value share-based compensation cost, when such measures are available. The unique features of ESOs and the flexibility of the lattice model lead to a more accurate measure of fair value

Evaluating the Competence of a Financial Expert Witness

The financial complexities involved in most modern business disputes often necessitate the need for financial expert witnesses to provide testimony for inclusion as evidence in legal trials. These experts can be called upon to aid in the compilation, testing, and evaluation of financial evidence, as well as to communicate the results to a judge and jury. Because completing these tasks can be an important prerequisite for the successful resolution of litigation, a qualified financial expert represents an invaluable asset for any side in a legal dispute. Rule 702 of the Federal Rules of Evidence establishes the qualifications necessary for an expert witness to testify in a court of law. The quantity and quality of the education and professional credentials possessed by an expert witness can serve as a sign of the individual\u27s expertise, as well as a signal of the expert\u27s quality to potential jurors. Given the increasing role of the financial expert witness in the resolution of complex litigation, it is critically important to understand the characteristics that a qualified witness must possess

The Impact of Job Satisfaction and Organizational Context Variables on Organizational Commitment

Employee commitment continues to be an important issue for organizations. Even though prior studies link job satisfaction to organizational commitment, few have examined how job satisfaction together with organization context (formalization, organizational inflexibility, and satisfaction with organization structure) impact organization commitment. Using a sample of 504 professional accountants, regression results indicate that job satisfaction and organization context variables such as formalization, organizational inflexibility, and satisfaction with organization structure significantly impact organization commitment. Years in the accounting profession and growth needs strength are also significantly associated with organization commitment. Results provide insights on how firms can better manage organizational context variables to improve organization commitment

The Value Relevance of Financial Statement Recognition versus Disclosure: Evidence from SFAS No. 106

This study examines whether the market values financial statement data differently if it is disclosed rather instead of recognized in the body of the financial statements. We identify a sample of 229 SFAS No. 106 adopters who disclose an estimate of their anticipated liability for retiree benefits other than pensions (PRB) in their financial reports prior to the year of recognition. We then test whether the disclosed estimate of the PRB liability is valued differently by the market than is the subsequently recognized PRB liability. We provide modest and model-sensitive evidence that the recognized PRB liability receives more weight than the disclosed liability in market value association tests