Foxes in the Henhouse: An Exploratory Inquiry into Financial Markets Fraud

Conventional understandings of fraud are organized around the fraud triangle first developed in the 1950s by Cressey. This conceptual device remains central in our pedagogy and research on this especially timely topic. As long as fraud is imagined to be not much different than a stereotypical act by a single individual out of financial desperation and impulsiveness, the fraud triangle provides a reasonably powerful conceptual organization. However, when applied to abuses that occur in highly organized financial markets, its application takes on new meanings that push the boundaries of its usefulness. Using interviews with traders and other securities market participants, this paper concludes that the prospects for ill-gotten gain are much more systematic and the product of incomplete regulation

The Narrowing of Academic Accounting: The Diminishing Range of Doctoral Student Interest

Accounting doctoral education has been the subject of many conversations. Whether it supports the optimal development of the knowledge that we need in this discipline should be debated. For the most part, the content of that which is taught in these programs and what specific scholarly output they facilitate is generally considered to be outside the bounds of academic discussion. This paper questions such a boundary by studying the research interests of three cohorts of doctoral students in the midst of their career preparation. The empirical evidence assembled suggests that doctoral education in accounting has become much more narrow a pursuit during these recent decades. An interpretation of the trends is offered, as well as a forecast of its consequences

Skin in the Game? Experimental Reactions to Prospective Reputational Damage by Corporate Personnel

All organizations confront the possibility of scandal; however, the reputational threat caused by scandal is exacerbated when these events are not properly addressed. Since scandals also have the potential to adversely affect organizational personnel, dilemmas arise regarding traditional ideas of employee agency. In this study, we conduct an experiment manipulating the severity of the reputational threat and its financial consequences for decision-makers, using actual corporate officers and internal auditors. One key question is this: “Are corporate decision-makers’ responses to potential scandals affected by whether they, as incentivized individuals (via stock options), have “skin in the game?” Findings indicate that corporate personnel believe corporations should respond aggressively to scandals having potential reputational consequences; however, they prefer not to proactively respond to reputational threats when expected personal gains are likely to be jeopardized. Internal auditors, by contrast, are less sensitive to personal gains. An archival supplementary analysis supports these findings by suggesting that equity compensation was 17.7% higher before a severe reputational event

Case Study - Pulling the Plug on a Product Development Project

Project success is traditionally defined as meeting the customer’s expectations by conforming to the triple constraints of time, cost and quality. Since few projects are completed without changes in scope regarding the triple constraints, then it is still possible to consider a project as being successful without meeting the original time, cost and quality requirements. This belief holds true so long as the customer has agreed to the changes and is satisfied that the revised constraints have been met in the end. However, many project managers and project team members would consider the termination of a project prior to completion as a failure regardless of scope changes. Sometimes project teams are so focused on bringing a project to a “successful” conclusion that they perceive any result other than delivering a final product or service to the customer as being a “failure”. As is often the case, perception soon becomes reality and the project team as well as the entire organization can be negatively affected by the perceived failure. This field project report chronicles a product development project that was terminated prior to delivery of a final product. During the assessment phase of this project it was determined that the final developed product would not meet the goals of the organization. While many individuals involved with this project may perceive its termination as evidence of failure, the lessons learned from this experience can help to support project success in the future

Post-scandal Organizational (Dis)order: A Grounded-Theory Approach Shifting from Murphy’s Law to Safer Regulatory Environments

The literature shows that, in the wake of negative media exposition, organizations’ self-regulation tends to be strengthened. We investigate such motivation from the perspective of the psychosocial consequences in executives’ and organizational self-confidence. A grounded-theory approach supports findings from 27 different events described by top-level executives from major publicly traded organizations. Their testimonies document that scandalous episodes, when they occur, leave a trauma footprint within the organizational and individual consciousness because of the perceived post-event humiliation, remorse, guilt, and fear. The paradigm of reliance and trust in the designed structures is severely altered. In turn, a climate of excessive self-regulation explains the recovery from the traumatic experience. New boundaries for regulatory balance, also called “the confidence zone,” exists until design changes coalesce with organizational blame to create the perception that reputational safety has been achieved. Fears of subsequent media scrutiny are mitigated by the perception of moral safety based on governance. Consequently, the over-regulatory response comprises the organizations’ healing process as they recover from the psychosocial trauma caused by media exposition

Counselors, Judges, or Executioners: The Role of Financial Analysts in Capital Markets’ Responses to Alleged FCPA Violations

Academic models grounded in market efficiency and reputational principles argue that market firms value suffer investors punishment as consequence of international bribery allegations. However, there are indicators of potential mispricing when authorities reveal the details of the allegations. To reconcile this phenomenon, this research theorizes the influence of analysts revised expectations as moderators and/or mediators of the relationship between the reputational and economic penalties, and investors’ response. Findings from 124 documented cases (2007 to 2018) suggest that analysts positively moderate (not mediate) the relationship concerning reputational (not economic) penalties and stock returns in the short-term after the press release (three-day window). These results potentially explains the mispricing and the accentuated reputational penalties (over the economic penalties) to stockholders’ returns. Several statistical and theoretical procedures robust the quality of the findings

Quantum Readiness in Healthcare and Public Health: Building a Quantum Literate Workforce

Quantum technologies, including quantum computing, cryptography, and sensing, among others, are set to revolutionize sectors ranging from materials science to drug discovery. Despite their significant potential, the implications for public health have been largely overlooked, highlighting a critical gap in recognition and preparation. This oversight necessitates immediate action, as public health remains largely unaware of quantum technologies as a tool for advancement. The application of quantum principles to epidemiology and health informatics, termed quantum health epidemiology and quantum health informatics, has the potential to radically transform disease surveillance, prediction, modeling, and analysis of health data. However, there is a notable lack of quantum expertise within the public health workforce and educational pipelines. This gap underscores the urgent need for the development of quantum literacy among public health practitioners, leaders, and students to leverage emerging opportunities while addressing risks and ethical considerations. Innovative teaching methods, such as interactive simulations, games, visual models, and other tailored platforms, offer viable solutions for bridging knowledge gaps without the need for advanced physics or mathematics. However, the opportunity to adapt is fleeting as the quantum era in healthcare looms near. It is imperative that public health urgently focuses on updating its educational approaches, workforce strategies, data governance, and organizational culture to proactively meet the challenges of quantum disruption thereby becoming quantum ready.Comment: 13 pages, 1 tabl

When pharmacotherapeutic recommendations may lead to the reverse effect on physician decision-making

For long the medical literature has shown that patients do not always receive appropriate care, including pharmacotherapeutic treatment. To achieve improved patient care, a number of physician-oriented interventions are being delivered internationally in an attempt to implement evidence based medicine in routine daily practice of medical practitioners. The pharmacy profession has taken an active role in the delivery of intervention strategies aimed at promoting evidence based prescribing and improved quality and safety of medicine use. However, the medical literature also supports the notion that valid clinical care recommendations do not always have the desired impact on physician behaviour. We argue that the well-established theory of psychological reactance might at least partially explain instances when physicians do not act upon such recommendations. Reactance theory suggests that when recommended to take a certain action, a motivational state compels us to react in a way that affirms our freedom to choose. Often we choose to do the opposite of what the recommendation is proposing that we do or we just become entrenched in our initial position. The basic concepts of psychological reactance are universal and likely to be applicable to the provision of recommendations to physicians. Making recommendations regarding clinical care, including pharmacotherapy, may carry with it implied threats, as it can be perceived as an attempt to restrict one’s freedom of choice potentially generating reactance and efforts to avoid them. By identifying and taking into account factors likely to promote reactance, physician-oriented interventions could become more effective

Pulse oximeter measurements vary across ethnic groups: an observational study in patients with COVID-19

The pulse oximeter provides regular non-invasive measurements of blood oxygenation and is used in a wide range of clinical settings [1]. The light wave transmission that this technology uses is modified by skin pigmentation and thus may vary by skin colour. A recent study of paired measures of oxygen saturation from pulse oximetry and arterial blood gas reported differing outputs in patients with black skin compared to patients with white skin that has the potential to adversely impact on patient care [2]