Following SOX, financial restatements increased dramatically. Prior research suggests that how investors respond to restatements, particularly those involving fraud, may mitigate or exacerbate damage suffered. We extend both accounting and management research by examining the joint effects of pre-restatement managerial reputation and the announcement of managerial corrective actions in response to a restatement on nonprofessional investors’ judgments. We find that pre-restatement managerial reputation and the announcement of managerial corrective actions jointly influence investors’ managerial fraud prevention assessments, which mediate their trust (...) in management. These trust perceptions in turn affect investors’ investment and CEO retention judgments. Our results have implications for firms that are concerned with lessening the negative consequences associated with issuing a restatement. (shrink)
Affordances, i.e. the opportunity of actions offered by the environment, are one of the central research topics for the theoretical perspectives that view cognition as emerging from the interaction between the environment and the body. Being at the bridge between perception and action, affordances help to question a dichotomous view of perception and action. While Gibson’s view of affordances is mainly externalist, many contemporary approaches define affordances as the product of long-term visuomotor associations in the brain. These studies have emphasized (...) the fact that affordances are activated automatically, independently from the context and the previous intention to act: for example, affordances related to objects’ size would emerge even if the task does not require focusing on size. This emphasis on the automaticity of affordances has led to overlook their flexibility and contextual-dependency. In this contribution I will outline and discuss recent perspectives and evidence that reveal the flexibility and context-dependency of affordances, clarifying how they are modulated by the physical, cultural and social context. I will focus specifically on social affordances, i.e. on how perception of affordances might be influenced by the presence of multiple actors having different goals. (shrink)
The topic is characterized by a highly interdisciplinary approach to the issue of action and language integration. Such an approach, combining computational models and cognitive robotics experiments with neuroscience, psychology, philosophy, and linguistic approaches, can be a powerful means that can help researchers disentangle ambiguous issues, provide better and clearer definitions, and formulate clearer predictions on the links between action and language. In the introduction we briefly describe the papers and discuss the challenges they pose to future research. We identify (...) four important phenomena the papers address and discuss in light of empirical and computational evidence: (a) the role played not only by sensorimotor and emotional information but also of natural language in conceptual representation; (b) the contextual dependency and high flexibility of the interaction between action, concepts, and language; (c) the involvement of the mirror neuron system in action and language processing; (d) the way in which the integration between action and language can be addressed by developmental robotics and Human-Robot Interaction. (shrink)
This paper examines the role of management's earnings preannouncements on judgments about its trustworthiness by nonprofessional investors. We predict that management's preannouncement decision and the resulting direction of the earnings surprise influence investors' ethical judgments about management's trustworthiness; these judgments, in turn, are associated with investors' other investment related judgments. We test our predictions in an experiment in which MBA students make investment-related judgments under four different preannouncement strategies. Consistent with our predictions, the results of our study show that managers' (...) preannouncement decisions are significantly associated with investors' evaluations of management's trustworthiness. Specifically, holding the size of the earnings surprise constant, we find that judgments of management's trustworthiness are damaged more following a negative as opposed to a positive earnings surprise, and the release of a preannouncement compared to when management does not issue a preannouncement. Also consistent with our predictions, we find that evaluations of management's trustworthiness are significantly and positively associated with judgments of the attractiveness of the firm's equity as an investment. Based on our findings, we encourage further research to explore whether managers understand the trust implications associated with their preannouncement decisions and the extent to which this understanding influences their disclosure decisions. (shrink)
Two experiments, one on school-aged children and one on adults, explored the mechanisms underlying responses to an image prime followed by graspable objects that were, in certain cases, dangerous. Participants were presented with different primes and objects representing two risk levels . The task required that a natural/artifact categorization task be performed by pressing different keys. In both adults and children graspable objects activated a facilitating motor response, while dangerous objects evoked aversive affordances, generating an interference-effect. Both children and adults (...) were sensitive to the distinction between biological and non-biological hands, however detailed resonant mechanisms related to the hand-prime gender emerged only in adults. Implications for how the concept of “dangerous object” develops and the relationship between resonant mechanisms and perception of danger are discussed. (shrink)
Behavioral ethics research has focused predominantly on how the attributes of individuals influence their ethicality. Relatively neglected has been how macro-level factors such as the behavior of firms influence members’ ethicality. Researchers have noted specifically that we know little about how a firm’s CSR influences members’ behaviors. We seek to better merge these literatures and gain a deeper understanding of the role macro-level influences have on manager’s ethicality. Based on agency theory and social identity theory, we hypothesize that a company’s (...) commitment to CSR shifts managers’ focus away from self-interests toward the interests of the firm, bolstering resistance to temptation. We propose this occurs through self-categorization and collective identification processes. We conduct a 2 × 2 factorial experiment in which managers make expense decisions for a company with commitment to CSR either present or absent, and temptation either present or absent. Results indicate that under temptation, managers make decisions consistent with self-interest. More importantly, we find when commitment to CSR is present, managers are more likely to make ethical decisions in the presence of temptation. Overall, this research highlights the interactive role of two key contextual factors—temptation and firm CSR commitment—in influencing managers’ ethical decisions. While limited research has highlighted the positive effects that a firm’s CSR has on its employees’ attitudes, the current results demonstrate CSR’s effects on ethical behavior and imply that through conducting and communicating its CSR efforts internally, firms can in part limit the deleterious effects of temptation on managers’ decisions. (shrink)
Arbib suggests that language emerged in direct relation to manual gestural communication, that Broca's area participates in producing and imitating gestures, and that emotional facial expressions contributed to gesture-language coevolution. We discuss functional and structural evidence supporting localization of the neuronal modules controlling limb praxis, speech and language, and emotional communication. Current evidence supports completely independent limb praxis and speech/language systems.
Despite regulatory reforms aimed at inhibiting aggressive financial reporting, earnings management persists and continues to concern practitioners, regulators, and standard setters. To provide insight into this practice and how to mitigate it, we conduct an experiment to examine the impact of two independent variables on CFOs’ discretionary expense accruals. One independent variable, incentive conflict, is manipulated at two levels —i.e., the presence or absence of a personal financial incentive that conflicts with a corporate financial incentive. The other independent variable is (...) CFOs’ earnings management ethics, measured as their assessment of the ethicalness of key earnings management motivations. We find that incentive conflict and EM-Ethics interact to determine CFOs’ discretionary accruals such that in the presence of incentive conflict, CFOs with low EM-Ethics tend to give into the personal incentive by booking higher expense accruals; and in the absence of an incentive conflict, CFOs with low EM-Ethics tend to give into the corporate incentive by booking lower expense accruals. We also find support for a mediated-moderation model in which CFOs’ level of EM-Ethics influences their moral disengagement tendencies which, in turn, differentially affect their discretionary accruals, depending on the presence or absence of incentive conflict. Theoretical and practical implications of these findings are discussed. (shrink)
Artefacts are usually understood in contrast with natural kinds and conceived as a unitary kind. Here we propose that there is in fact a variety of artefacts: from the more concrete to the more abstract ones. Moreover, not every artefact is able to fulfil its function thanks to its physical properties: Some artefacts, particularly what we call “institutional” artefacts, are symbolic in nature and require a system of rules to exist and to fulfil their function. Adopting a standard method to (...) measure conceptual representation (the property generation task), we have experimentally explored how humans conceptualise these different kinds of artefacts. Results indicate that institutional artefacts are typically opposed to social objects, while being more similar to standard artefacts, be they abstract or concrete. (shrink)
Management has the opportunity to promote self-serving accounting practices, such as earnings management, when management can effectively avoid oversight by the audit committee. This article investigates the effects of financial knowledge and dispositional trust on the ability of audit committee members to recognize management attempts to avoid full disclosure to the board and potentially deceive board members. The results of a controlled laboratory experiment with 40 experienced audit committee member participants indicate that: (1) Audit committee members with less financial knowledge (...) are more likely to accept insufficient client explanations for accounting judgments than are more knowledgeable audit committee members; (2) Audit committee members with less financial knowledge are more likely to reject sufficient client explanations for accounting judgments than are more knowledgeable audit committee members; and (3) Audit committee members that place higher levels of trust in others are more likely to accept insufficient client explanations for accounting judgments than are less trusting committee members. (shrink)
Increasingly, feminist scholars examine how the stability of racial hierarchies is maintained through discourse. This article explores the importance of race discourse in the construction of white women's accounts explaining their race politics. Specifically, the author examines the connections between race discourse and politics as they emerged in interviews with white women involved in a local women's movement between 1972 and 1999. The interviews revealed five discursive strategies women used to talk about race and the movement's antiracist practices. In addition, (...) one of the most important contributions of this study is the evidence it provides of the relationship between the discursive construction of an “invisible white self” and the broader structure of power relations. (shrink)
The writer Anna M. Stoddart published biographies of Isabella Bird and the classical scholar John Stuart Blackie before this 1908 life of the educationalist Hannah E. Pipe. Pipe was sent in 1847 to Chorlton high school, run by William Ballantyne Hodgson, who mapped out for her a teaching career. This biography was written for, and at the urging of, Pipe's ex-pupils, concerned to record her life 'before it crumbles into oblivion'. She opened her first school in Manchester, but moved (...) to London in 1856: Stoddart herself was one of her staff; music was taught by Sterndale Bennett, and science by William Huggins. The school was enormously successful, and Pipe also became involved in other philanthropic causes, being a friend of Octavia Hill and F. D. Maurice. This is a fascinating account of an inspiring teacher and educational pioneer. (shrink)
The new concept of embodied cognition theories has been enthusiastically studied by the cognitive sciences, by as well as such disparate disciplines as philosophy, anthropology, neuroscience, and robotics. Embodiment theory provides the framework for ongoing discussions on the linkage between “low” cognitive processes as perception and “high” cognition as language processing and comprehension, respectively. This review gives an overview along the lines of argumentation in the ongoing debate on the embodiment of language and employs an ALE meta-analysis to illustrate and (...) weigh previous findings. The collected evidence on the somatotopic activation of motor areas, abstract and concrete word processing, as well as from reported patient and timing studies emphasizes the important role of sensorimotor areas in language processing and supports the hypothesis that the motor system is activated during language comprehension. (shrink)
Thinking about what the senses cannot grasp is one of the hallmarks of human cognition. We argue that “intangible abstracta” are represented differently from other products of abstraction, that goal-derived categorization supports their learning, and that they are grounded also in internalized linguistic and social interaction. We conclude by suggesting different ways in which abstractness contributes to cement group cohesion.
That Catullus’ sixty-fourth poem influenced Virgil's work has long been accepted. We approach a little nearer a resolution of the enigma of the Fourth Eclogue when we recognize epithalamian elements within it that echo not only the song of the Parcae, but also the themes of the Golden Age, of the Voyage of the Argo, and of the relations between gods and men from Catullus’ poem. Similarly, Ariadne's part in the creation of Aeneid 4, both in the ‘marriage’ scene and (...) in Dido's reproaches to Aeneas, has been noted. (shrink)
The article introduces theories of epistemic justification to the problems of understanding in communication. Two dominant approaches in contemporary epistemology — foundationalism and coherentism — are applied in intercultural discourse. Since the intended meaning of utterances in communication is reached through inference, beliefs about the intended meaning are justified with respect to the evidence of communicative behaviour and context. Tracing the difficulties of intercultural dialogue, the article argues that the coherentist method of justification is more useful than foundationalist one. Coherentism (...) is consistent with the open-mindedness and unprejudiced reasoning, both of which are crucial parts of intercultural competency. (shrink)