The framing of financial decisions: a pilot study

We continually need to make decisions, but it is clear that, in so doing, we do not act in accordance with strict rules of rationality. For example, the effect of framing (i.e. the choice of particular words to present a given set of facts) can influence our choices, which raises some serious questions about our real freedom of choice. An increasing body of literature on framing supports a tendency for people to take more risks when seeking to avoid losses as opposed to securing gains. This is explained by framing and the value function within Tversky & Kahneman’s prospect theory. An empirical study was undertaken within a Business School to test the hypothesis that framing influenced subjects’ choices in four simple financial decisions (A,B,C,D) as indicated in the previous paragraph. The results, based on a sample of 51 adults, partly supported the hypothesis (cases B and D), but the anticipated outcomes were not found in cases A and C. It is probably a high level of risk aversion, irrespective of framing, on the part of the subjects which explains these unexpected findings since subjects exhibited a clear tendency to favour certainty over risky options

Some thoughts on marketing controllership

“It is paradoxical that while many of the most significant financial and accounting activities within any company start with the forecasts of market opportunities, sales volumes, prices and anticipated revenues, the explicit role of accounting and finance in the control of the marketing function itself has been neglected.” (Anthony Hopwood in Vernon (1976: p.227).) Whilst there is an increasing trend towards an interdisciplinary approach to managerial problem-solving, there still appears to be an absence of mutual understanding between marketing and control people due to (in Boulding’s terms) ‘specialised ears’ and ‘generalised deafness’

Multiskilled Health Practitioners: Results of a Graduate Assessment

To ascertain the assimilation of graduates into multiskilled practice, the Add-A-Comp Program, Methodist Hospital of Indiana, conducted an assessment of graduates over a 30-month period. Input was received both from the program’s graduates and supervisors of the graduates. Of the 40 responding graduates, 24 (60%) had functioned in a multiskilled capacity. The majority of graduates reported increased job satisfaction, security, challenge, opportunities, and perceived value to their employer resulting from their multiskilled employment, with 58% receiving additional compensation for multiskilled functioning. Of the 24 supervisor respondents, 92% felt that their multiskilled graduates’ knowledge and competency levels had met their expectations and that the sponsorship was worth the investment. Many of the Add-A-Comp modules utilize a self-directed learning packet approach with 92% of graduates using these packets indicating an excellent or satisfactory rating for this instructional method

Biotechnology approaches to developing herbicide tolerance/selectivity in crops

The use of herbicides has revolutionized weed control in many crop production systems. However, with the increasing development of weed resistances to many popular selective herbicides, the need has arisen to rethink the application of chemical weed control. Approaches to maintain the efficiency of chemical weed control include the discovery of new herbicide target sites in plants and the discovery/ synthesis of new, more potent herbicidal molecules. However, these approaches are expensive to execute, take considerably long times to succeed and may lead to increased chemical loads in the environment. Since many existing broad-spectrum herbicides are still effective, an alternative strategy adopted to ensure the safe use of broad-spectrum herbicides in a wide range of crops is the application of biotechnological techniques to engineer crop selectivity to these herbicides. In this review we summarize efforts being made to develop crop herbicide selectivity using biotechnology.Keywords: Biotechnology, herbicide resistance, cell culture, mutagenesis, genetic transformatio

Conceptualising financial literacy

The term financial literacy is one that is not new. Financial literacy is perceived as important and as something to be encouraged in those who are not financially literate. These perceptions are exemplified by the existence of centres or bodies dedicated to financial literacy. These include the Financial Literacy Centre, University of Warwick, the National Endowment for Financial Education (USA), Financial Literacy Center (USA), and programmes such as the Start Right Coalition for Financial Literacy (Canada) and the Jump$tart Coalition for Personal Financial Literacy (USA). In the UK the Money Management Council is involved in a number of projects aimed at raising the financial literacy of consumers. And yet what does the term financial literacy actually mean ? What distinguishes a financially literate individual from one who is financially illiterate ? This paper explores literature examining aspects of individuals’ financial literacy in particular contexts. Use of the term literacy is also explored. Current definitions were found to be lacking (clearly having implications for the operationalisation of the concept of financial literacy). These limitations are explored and suggestions are offered towards developing an explicit conceptualisation of financial literacy

The valuing of Information Assets in UK companies

The primary focus of this study is on the impact of the UK financial reporting standard for goodwill and intangible assets (FRS10) on information assets. It was anticipated that the identification of methods already in use under the terms of FRS10 for valuing information assets would be identified. It was anticipated that once UK companies have recognised information as an asset for valuation purposes this would bring information assets within the compass of financial appraisal. Interviews were conducted with accounting and information professionals as well as with representatives of their professional and regulatory bodies focusing on the valuation of information as an asset. Of the 24 organisations in which interviews were carried out, eight were FTSE 100 companies which were identified as being information-intensive organisations, thus likely to represent the state of the art with regard to the valuation of information assets. The main method of data gathering was by individual interview using a semi-structured approach. The most surprising finding was that UK companies appear not to be using FRS10 to value their information assets. Moreover, many of those interviewed did not believe that information should be categorised as an asset or valued for inclusion on the balance sheet. One difficulty identified in using FRS10 to value information assets was that it specifically excludes internally-generated intangibles which do not have a 'readily ascertainable market value'. The information assets considered most important by interviewees were internally-generated. These were typically not valued for internal purposes, hence one reason why there is little impetus to include information assets on the balance sheet maybe because it could be unwise to report externally that which has not been addressed internally

Valuation of Information Assets

Information is an important asset for organisations. The concepts of intellectual capital and knowledge management have focused managers' attention on how organisations can exploit information assets for commercial gain. Yet, without acceptance of the need for or means of evaluation of information assets, it is difficult to highlight the benefits of such concepts in commercial terms. This paper deals with some of the conceptual issues relating to this issue. The term 'information assets' can be defined as data that is or should be documented, and which has value or potential value. Information is often seen as a raw material and knowledge is an end result achieved through learning. However, knowledge is also raw material, and information an end result through formalisation. Among the identifying attributes of information one can include expandable, compressible, substitutable, easily transportable, diffusable and shareable. These attributes are manifest in organisational activities such as monitoring how processes are performed, integrating different business processes, customising products and services, and creating information products as the primary output of a business. It is evident, therefore, that the scope of information assets within organisations can be extremely far reaching. The accounting concept of assets does not easily accommodate information assets. Since information cannot be readily measured in monetary terms, and since cost is not a measure of value, there is the problem of how the value of information assets might be ascertained. Approaching this issue requires a consideration of the two main reasons for valuing information assets. The first is for financial reporting purposes whilst the second is to encourage the better management of information assets. With regard to the former, there are two potential paths which financial reporting may take in the future which may accommodate information assets. The first is for a major review of accounting practice to include intellectual capital, and the second involves reporting information assets which may impact on the performance of a company as an additional commentary in a company's annual Operating and Financial Review. With regard to the latter, a possible approach might be to value information in the light of its contribution to making improved decisions, although this has both conceptual and measurement problems associated with it

Reviews

The Tolkien Relation: A Personal Inquiry. William Ready. Reviewed by Veronica M. S. Kennedy. The Tolkien Relation: A Personal Inquiry. William Ready. Reviewed by Bonniejean McGuire Christensen. Tolkien: A Look Behind The Lord of the Rings . Lin Carter. Reviewed by Sandra Miesel. Of Middle-earth and the Story of the Hobbit . Lin Carter. Reviewed by Richard V. Knight