We evaluate here the performance of four models of cross-situational word learning: two global models, which extract and retain multiple referential alternatives from each word occurrence; and two local models, which extract just a single referent from each occurrence. One of these local models, dubbed Pursuit, uses an associative learning mechanism to estimate word-referent probability but pursues and tests the best referent-meaning at any given time. Pursuit is found to perform as well as global models under many conditions extracted from (...) naturalistic corpora of parent-child interactions, even though the model maintains far less information than global models. Moreover, Pursuit is found to best capture human experimental findings from several relevant cross-situational word-learning experiments, including those of Yu and Smith (), the paradigm example of a finding believed to support fully global cross-situational models. Implications and limitations of these results are discussed, most notably that the model characterizes only the earliest stages of word learning, when reliance on the co-occurring referent world is at its greatest. (shrink)

The acceptability of sentences in natural language is constrained not only grammaticality, but also by the relationship between what is being conveyed and such factors as context and the beliefs of interlocutors. In many languages the critical element in a sentence (its focus) must be given grammatical prominence. There are different accounts of the nature of focus marking. Some researchers treat it as the grammatical realization of a potentially arbitrary feature of universal grammar and do not provide an explicit account (...) of its origins; others have argued, however, that focus marking is a (grammaticalized) functional solution to the problem of efficiently transmitting information via a noisy channel. By adding redundancy to highlight critical elements in particular, focus protects key parts of the message from noise. If this information‐theoretic account is true, then we should expect focus‐like behavior to emerge even in non‐linguistic communication systems given sufficient noise and pressures for efficiency. We tested this in an experiment in which participants played a simple communication game in which they had to click cells on a grid to communicate one of two line figures drawn across the grid. We manipulated the noise, available time, and required effort, and measured patterns of redundancy. Because the lines in many cases overlapped, meaning that only some parts of each line could be used to distinguish it from the other, we were able to compare the extent to which effort was expended on adding redundancy to critical (non‐overlapping) and non‐critical (overlapping) parts of the message. The results supported the information‐theoretic account of focus and shed light on the emergence of information structure in language. (shrink)

This paper provides a game-theoretic analysis of contrastive focus, extending insights from recent work on the role of noisy communication in prosodic accent placement to account for focus within sentences, sub-sentential phrases and words. The shared insight behind these models is that languages with prosodic focus marking assign prosodic prominence only within elements which constitute material critical for successful interpretation. We first take care to distinguish the information-structural notion of focus from an ontologically distinct notion of givenness marking, and then (...) outline the core properties of focus. We then introduce a signaling game between a speaker and hearer in which the goal is to transmit semantic content with the smallest signal possible. We apply the Iterated Best Response method of Franke to find equilibrium strategies in this game, where a unique equilibrium strategy in this case picks out the “critical information” of an utterance, which by hypothesis constitutes its focus. We show that iterating this game at different syntactic levels of a sentence makes correct predictions about the role of contrast in determining stress within words and phrases, and can be extended to account for association and second occurrence focus effects. (shrink)

The Sarbanes–Oxley Act of 2002 requires audit committees of public companies’ boards of directors to install an anonymous reporting channel to assist in deterring and detecting accounting fraud and control weaknesses. While it is generally accepted that the availability of such a reporting channel may reduce the reporting cost of the observer of a questionable act, there is concern that the addition of such a channel may decrease the overall effectiveness compared to a system employing only non-anonymous reporting options. The (...) rationale underlying this concern involves the would-be reporter’s likelihood of reporting, the seriousness with which the organization treats an anonymous report, and the organization’s ability to thoroughly follow-up the report. Thus, we explore the extent to which the availability of an anonymous reporting channel influences intended use of non-anonymous reporting channels. Further, in response to Sarbanes–Oxley and the environment of financial scandals that led to its passage, many firms are strengthening their internal audit departments, and providing them with greater independence from upper management’s direct control. Accordingly, our examination tests whether the intended use of the internal audit department as an internal reporting channel is greater when the internal audit department is of “high” versus “low” quality. Finally, the study investigates intended reporting behavior across three different cases (e.g., settings). Results show that the existence of an anonymous channel does reduce the likelihood of reporting to non-anonymous channels, that generally the internal audit department quality does not affect reporting to non-anonymous channels, and that case-setting affects the type of channel to be used. Implications from the study are discussed. (shrink)

We report the results of a study that examines the association between gender and individuals’ intentions to report fraudulent financial reporting using non-anonymous and anonymous reporting channels. In our experimental study, we examine whether reporting intentions in response to discovering a fraudulent financial reporting act are associated with the participants’ gender, the perpetrator’s gender, and/or the interaction between the participants’ and perpetrator’s gender. We find that female participants’ reporting intentions for an anonymous channel are higher than for male participants; the (...) fraud perpetrator’s gender and the interaction with participants’ gender were not significantly associated with anonymous channel reporting intentions. Neither of the two factors nor the interaction between the two factors was associated with reporting intentions to a non- anonymous reporting channel. Results from an additional analysis indicate that male and female participants differ in the extent to which they judge the reduction in personal costs of an anonymous reporting channel compared to a non-anonymous reporting channel and that the reduction in personal costs mediates the relationship between participant gender and anonymous reporting intentions. (shrink)

Fiona Macpherson (2012) argues that various experimental results provide strong evidence in favor of the cognitive penetration of perceptual color experience. Moreover, she proposes a mechanism for how such cognitive penetration occurs. We argue, first, that the results on which Macpherson relies do not provide strong grounds for her claim of cognitive penetrability; and, second, that, if the results do reflect cognitive penetrability, then time-course considerations raise worries for her proposed mechanism. We base our arguments in part on several of (...) our own experiments, reported herein. (shrink)

The current study is designed to propose and test a model about the ethical reputation of a target manager who must decide whether to engage in earnings management. We employ an experimental approach to examine the potential negative reputation effects within the internal labor market of a firm that occur as a consequence of earnings management. We examine participants’ responses to a hypothetical (target) manager when both the target’s behavior and the corporate incentives were manipulated. Participants assessed how ethical they (...) believed a target manager to be, based on the target’s decision regarding earnings management and the nature of the corporate incentives. Participants also assessed the target’s managerial ability. Participants’ judgments regarding the target’s morality were significantly affected by the target’s behavior, but were not affected by the incentive structure. Ability judgments were significantly and positively related with morality assessments. Further analysis indicates that morality assessments mediate the relationships between the target’s behavior and the participants’ willingness to extend work-related opportunities to the target. Implications of these results for management control systems design and for future research are discussed. (shrink)

The current study is designed to propose and test a model about the ethical reputation of a target manager who must decide whether to engage in earnings management. We employ an experimental approach to examine the potential negative reputation effects within the internal labor market of a firm that occur as a consequence of earnings management. We examine participants’ responses to a hypothetical (target) manager when both the target’s behavior and the corporate incentives were manipulated. Participants assessed how ethical they (...) believed a target manager to be, based on the target’s decision regarding earnings management and the nature of the corporate incentives. Participants also assessed the target’s managerial ability. Participants’ judgments regarding the target’s morality were significantly affected by the target’s behavior, but were not affected by the incentive structure. Ability judgments were significantly and positively related with morality assessments. Further analysis indicates that morality assessments mediate the relationships between the target’s behavior and the participants’ willingness to extend work-related opportunities to the target. Implications of these results for management control systems design and for future research are discussed. (shrink)

Organizations are increasingly embedded with consultants and other non-employees who have the opportunity to engage in wrongdoing. However, research exploring the reporting intentions of employees regarding the discovery of wrongdoing by consultants is scant. It is important to examine reporting intentions in this setting given the enhanced presence of consultants in organizations and the fact that wrongdoing by consultants changes a key characteristic of the wrongdoing. Using an experimental approach, the current paper reports the results of a study examining employees' (...) reporting intentions subsequent to their discovery of wrongdoing by a consultant. The results of the study indicate that perceptions about the seriousness of a wrongdoing, personal costs and personal responsibility related to reporting a wrongdoing, and moral-equity judgments are significantly associated with reporting intentions for a normal reporting channel. Only perceptions of seriousness and personal costs are significantly associated for an anonymous reporting channel. Lastly, while personal costs for the anonymous reporting channel were lower than the normal reporting channel, reporting intentions were similar across the two channels. (shrink)

Merchant and Rockness (1994, p. 92) characterize earnings management as "probably the most important ethical issue facing the accounting profession" and provide initial evidence of the ethical judgments of various organizational members. The current study extends their work by examining the extent to which an individual''s ethically-related judgments in response to earnings management activities are associated with the individual''s role.In an experimental study, evening MBA students read three hypothetical scenarios involving a manager engaging in earnings management. The scenarios involved a (...) gain from an operating activity, a gain from an accounting activity, and a loss from an accounting activity. Before reading the cases, however, participants were randomly assigned to one of three roles: a shareholder, another manager from the company who is unfamiliar with the manager in the case, or another manager from the company who is familiar with the manager in the case. Following each case, participants made four ethically related judgments. (shrink)

Although the role of fairness in tax compliance has been of increasing interest among the academic and professional tax communities, very little is known about the role of interactional fairness. Interactional fairness refers to the quality of the treatment provided to individuals from authority figures, such as tax authority representatives. We conduct an experiment using US taxpayers to examine the role of interactional fairness on tax compliance intentions, and how detection influences this relation. Taxpayers’ detection salience reflects their perceptions that (...) they will be audited by the tax authority. Using insights from conditional cooperation theory, we predict and find that detection moderates the relation between interactional fairness and tax compliance intentions, such that the effect of interactional fairness on tax compliance intentions diminishes with higher detection. We discuss the implications of our results for tax policy. (shrink)

Victor and Cullen (1988) identified several dimensions of ethical climate that exist in organizations and organizational subunits. We tested the relationship between these dimensions of ethical climate and ethical behavior at different levels of analysis. Using Within and Between Analysis (WABA) (cf. Dansereau, Alutto and Yammarino, 1984), partial support was found for a relationship between dimensions of ethical climate and ethical behavior.

Kierkegaard’s Concepts is a comprehensive, multi-volume survey of the key concepts and categories that inform Kierkegaard’s writings. Each article is a substantial, original piece of scholarship, which discusses the etymology and lexical meaning of the relevant Danish term, traces the development of the concept over the course of the authorship, and explains how it functions in the wider context of Kierkegaard’s thought. Concepts have been selected on the basis of their importance for Kierkegaard’s contributions to philosophy, theology, the social sciences, (...) literature and aesthetics, thereby making this volume an ideal reference work for students and scholars in a wide range of disciplines. -/- Contents: Envy, Janne Kylliäinen; Epic, Nassim Bravo Jordán; Epigram, David R. Law; Ethics, Azucena Palavicini Sánchez; Evil, Azucena Palavicini Sánchez and William McDonald; Exception/Universal, Geoffrey Dargan; Existence/Existential, Min-Ho Lee; Experience, Jakub Marek; Fairytale, Nathaniel Kramer; Faith, William McDonald; Finitude/Infinity, Erik M. Hanson; Forgiveness, John Lippitt; Freedom, Diego Giordano; Genius, Steven M. Emmanuel; God, Paul Martens and Daniel Marrs; Good, Azucena Palavicini Sánchez; Governance/Providence, Jack Mulder, Jr.; Grace, Derek R. Nelson; Gratitude, Corey Benjamin Tutewiler; Guilt, Erik M. Hanson; Happiness, Benjamin Miguel Olivares Bøgeskov; Hero, Sean Anthony Turchin; History, Sean Anthony Turchin; Holy Spirit, Leo Stan; Hope, William McDonald; Humility, Robert B. Puchniak; Humor, Alejandro González; Hypocrisy, Thomas Martin Fauth Hansen; Identity/Difference, Claudine Davidshofer; Imagination, Frances Maughan-Brown; Imitation, Leo Stan; Immanence/Transcendence, Leo Stan; Immediacy/Reflection, Zizhen Liu; Immortality, Lee C. Barrett; Incognito, Martijn Boven. (shrink)

It has long been recognized that accountants practicing in business settings have a dual role: as employees, they are bound to the organization, and as professionals, they are bound by the profession’s code of ethical conduct : 119–128, 1986). These two roles highlight the need to recognize and consider both the ethical and economic implications of their decisions. Practicing industry accountants are commonly involved in a broad range of their firm’s business practices and decision making, and are increasingly exposed to (...) the commercial aspects of their companies. Also, during their education, they were trained on their professional responsibilities. However, in general, this education was not recent and may not have been reinforced. By contrast, accounting students have been recently and repeatedly exposed to and have knowledge about their professional responsibilities as an accountant, but limited, if any, exposure to the commercial aspects of business. Consequently, our first hypothesis predicts that the ethical sensitivity of practicing industry accountants will be lower than that of accounting students. We find limited support for this hypothesis. Second, we also examine company reward structure and predict that ethical sensitivity will be lower for those in a company with a reward structure narrowly focused only on financial goals as compared to those in a company with a broad reward structure. Third, we predict that the difference in ethical sensitivity levels between those in a company with a narrow reward structure as compared to those in a company with a broad financial reward structure will be higher for practicing industry accountants compared to accounting students. Results from our study generally support these last two predictions. Ethical sensitivity is lower for those in a company with a reward structure narrowly focused only on financial goals as compared to those in a company with a broad reward structure, suggesting that companies may be able to increase ethical awareness in their organizations by including non-financial goals in their reward structures. (shrink)

Although the role of fairness in tax compliance has been of increasing interest among the academic and professional tax communities, very little is known about the role of interactional fairness. Interactional fairness refers to the quality of the treatment provided to individuals from authority figures, such as tax authority representatives. We conduct an experiment using US taxpayers to examine the role of interactional fairness on tax compliance intentions, and how detection influences this relation. Taxpayers’ detection salience reflects their perceptions that (...) they will be audited by the tax authority. Using insights from conditional cooperation theory, we predict and find that detection moderates the relation between interactional fairness and tax compliance intentions, such that the effect of interactional fairness on tax compliance intentions diminishes with higher detection. We discuss the implications of our results for tax policy. (shrink)

CEO compensation has received much attention from both academics and regulators. However, academics have given scant attention to understanding judgments about CEO compensation by third parties such as investors. Our study contributes to the ethics literature on CEO compensation by examining whether judgments about CEO compensation are influenced by two aspects of a company’s tone at the top—social ties between the CEO and members of the Executive Compensation Committee and the CEO’s Reputation, particularly for financial reporting and disclosures. Although, stock (...) exchanges such as NASDAQ require ECC members to be independent, CEOs still may have social connections to the ECC. In addition, CEOs develop a reputation for the quality of their company’s financial reporting and disclosures. We expect both CEO Social Ties and CEO Reputation to impact say-on-pay judgments, and that fairness perceptions about the CEO compensation will mediate the relationship. We conduct an experiment to test our hypotheses. In this study, we employ a two by two experimental design where we manipulate CEO Social Ties with members of the ECC and CEO Reputation for the quality of financial reporting disclosures . Participants were MBA students who provided a say-on-pay judgment , and judgments about the fairness of the CEO’s compensation. Results indicate that CEO Social Ties affected participants’ say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO’s compensation. Further, the CEO’s Reputation also affected participants’ say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO’s compensation. Implications for research and public policy are presented. (shrink)

Recent, well-publicized accounting scandals have shown that the penalties outsiders impose on those found culpable of earnings management can be severe. However, less is known about how colleagues within internal labor markets respond when they believe fellow managers have managed earnings. Designers of responsibility accounting systems need to understand the reputational costs managers impose on one another within internal labor markets. In an experimental study, 159 evening MBA students were asked to assume the role of a manager in a company (...) and respond to a scenario in which another manager (the target manager) has the opportunity to engage in earnings management. Participants provided causal attributions, assessed the morality of the target manager, and indicated whether they would change their judgments about the target manager's reputation. The study manipulated three between-subjects factors: (1) whether the target manager chose to engage in earnings management, (2) whether the company's budgetary control system was rigid or flexible, and (3) whether the target manager's work history was average or above average. We found that causal attributions are affected more by the budgetary systems when the target did not manage earnings than when the manager did. We also found that morality judgments were significantly associated with the target manager's behavior, but not with the budgetary system. In addition, participants' judgments about the target manager's reputation were more strongly associated with morality judgments than with causal attributions. We discuss implications of the role of reputation in management control systems design. (shrink)

Sex differences in reproductive strategy and the sexual division of labor resulted in selection for and maintenance of sexual dimorphism across a wide range of characteristics, including body size, hormonal physiology, behavior, and perhaps spatial abilities. In laboratory tasks among undergraduates there is a general male advantage for navigational and mental-rotation tasks, whereas studies find female advantage for remembering item locations in complex arrays and the locations of plant foods. Adaptive explanations of sex differences in these spatial abilities have focused (...) on patterns of differential mate search and routine participation in distinct subsistence behaviors. The few studies to date of spatial ability in nonindustrial populations practicing subsistence lifestyles, or across a wider age range, find inconsistent results. Here we examine sex- and age-based variation in one kind of spatial ability related to navigation, dead-reckoning, among Tsimane forager horticulturalists living in lowland Bolivia. Seventy-three participants (38 male) aged 6–82 years pointed a handheld global positioning system (GPS) unit toward the two nearest communities and the more distant market town. We find no evidence of sex differences in dead reckoning (p = 0.47), nor do we find any evidence of age-related decline in dead-reckoning accuracy (p = 0.28). Participants were significantly more accurate at pointing toward the market town than toward the two nearest villages despite its being significantly farther away than the two nearest communities. Although Tsimane do show sexual dimorphism in foraging tasks, Tsimane women have extensive daily and lifetime travel, and the local environment lacks directional cues that typically enhance male navigation. This study raises the possibility that greater similarity in mobility patterns because of overlapping subsistence strategies and activities may result in convergence of some male and female navigation abilities. (shrink)

The purpose of this study was to determine whether the ethical climate dimensions identified by Victor and Cullen (1987, 1988) could be replicated in the subunits of a multi-unit organization and if so, were the dimensions associated with particular types of operating units. We identified three of the dimensions of ethical climate found by Victor and Cullen and also found a new dimension of ethical climate related to service. Partial support was found for Victor and Cullen's hypothesis that certain ethical (...) climate dimensions are associated with particular forms of organizational governance and control. (shrink)

The purpose of this research is to examine the effect of two organizational variables, budget goal difficulty and promotion availability, on employee fraud. Limited research shows that difficult, specific goals result in more unethical behavior than general goals :422–432, 2004). We predict that goal difficulty and promotion availability will interact to affect employee fraud. Specifically, we contend that the availability of promotions will have little, if any, effect on employee fraud under easy goals but have a substantial effect on fraud (...) under extremely difficult goals. To test this prediction, we use an experiment in which participants play the role of production employees. All participants are assigned cost goals and are responsible for reporting costs to the organization. Information asymmetry exists such that the organization is unable to assess whether costs have been reported accurately, and any overstatement of costs directly increases the employee’s compensation at the expense of the organization. The results of our experiment support the prediction, even though the cost goal is not tied to current period compensation. Our results have implications for academics and practitioners concerned with factors that affect fraud in organizations. (shrink)

The say-on-pay regulation in the Dodd-Frank Act requires publicly-traded U.S. firms to hold a nonbinding, advisory shareholder vote on executive compensation. Advocates claim that SOP voting gives shareholders a mechanism to hold managers and boards more accountable. Critics contend that SOP votes may simplistically reflect shareholders’ reactions to the overall value of CEO compensation or the firm’s net income. However, based on prior research, we contend that market participants’ SOP votes are likely to consider current income attributes. For example, the (...) market punishes firms that do not meet or beat benchmarks such as analyst earnings expectations, and that shareholders scrutinize the quality of the income sources of firms that consistently meet/beat analyst expectations. We thus expect that more shareholders will provide ‘agree’ SOP votes for a firm that consistently meets/beats analyst forecasts and does so when net income does not include nonrecurring gains. Further, we consider whether perceptions about the fairness of CEO compensation play a mediating role in the relationship between the interaction of these two current income attributes and SOP votes. Results from an experiment using evening MBA students as participants indicates that the two current income attributes significantly interact with respect to the percentage of agree SOP votes, and that compensation fairness perceptions fully mediate this relationship. Further, the mediating effect of compensation fairness perceptions is robust to including CEO-level and other determinants found in prior research. We conclude with a discussion of our findings and their implications for public policy and research. (shrink)

Organizations are increasingly embedded with consultants and other non-employees who have the opportunity to engage in wrongdoing. However, research exploring the reporting intentions of employees regarding the discovery of wrongdoing by consultants is scant. It is important to examine reporting intentions in this setting given the enhanced presence of consultants in organizations and the fact that wrongdoing by consultants changes a key characteristic of the wrongdoing. Using an experimental approach, the current paper reports the results of a study examining employees (...) reporting intentions subsequent to their discovery of wrongdoing by a consultant. The results of the study indicate that perceptions about the seriousness of a wrongdoing, personal costs and personal responsibility related to reporting a wrongdoing, and moral-equity judgments are significantly associated with reporting intentions for a normal (non-anonymous) reporting channel. Only perceptions of seriousness and personal costs are significantly associated for an anonymous reporting channel. Lastly, while personal costs for the anonymous reporting channel were lower than the normal reporting channel, reporting intentions were similar across the two channels. (shrink)

Previous accounting ethics research berates auditors for ethical lapses that contribute to the failure of Andersen (e.g., Duska, R.: 2005, Journal of Business Ethics 57, 17–29; Staubus, G.: 2005, Journal of Business Ethics 57, 5–15; however, some of the blame must also fall on regulatory and professional bodies that exist to mitigate auditors’ ethical lapses. In this paper, we consider the ethical and economic context that existed and facilitated Andersen’s failure. Our analysis is grounded in Akerlof’s (1970, Quarterly Journal of (...) Economics August, 488–500) Theory of the Market for Lemons and we characterize the market for audit reports as a market for lemons. Consistent with Akerlof’s model, we consider the appropriateness of the countervailing mechanisms that existed at the time of Andersen’s demise that appeared to have effectively failed in counteracting Andersen’s ethical shortcomings. Finally, we assess the appropriateness of the remedies proposed by the Sarbanes–Oxley Act of 2002 (SOA) to ensure that similar ethical lapses will not occur in the future. Our analysis indicates that the SOA regulatory reforms should counteract some of the necessary conditions of the Lemons Model, and thereby mitigate the likelihood of audit failures. However, we contend that the effectiveness of the SOA critically depends upon the focus and attention of the␣Public Companies Accounting Oversight Board (PCAOB) towards assessing the ethical climates of public accounting firms. Assessments by the PCAOB of public accounting firm’s ethical climate are needed to sufficiently ensure that public accounting firms effectively promote and maintain audit quality in situations where unconscious bias or economic incentives may erode the public accounting firm’s independence. (shrink)

We give an overview of some remarkable connections between symmetric informationally complete measurements and algebraic number theory, in particular, a connection with Hilbert’s 12th problem. The paper is meant to be intelligible to a physicist who has no prior knowledge of either Galois theory or algebraic number theory.

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)

The frequency of earnings restatements has been increasing over the last decade. Restating previous earnings erodes perceived trustworthiness and competence of management, giving firms strong incentives to take actions to enhance perceived credibility of future financial reports [Farber, D. B.: 2005, The Accounting Review 80(2), 539–561.]. Using an experimental case, we examine the ability of post-restatement actions taken by a firm to positively influence non-professional investors’ perceptions of management’s financial reporting credibility. Our examination considers credibility judgments following two types of (...) restatements – those resulting from fraud in which the character, ethics, and values of an organization may be called into question [cf. Copeland, Jr., J. E.: 2005, Accounting Horizons 19(1), 35–43.], and those resulting from non-fraud (i.e., aggressive accounting). Based on the information in the experimental case, non-professional investors take the role of potential equity investors and make a judgment about management’s financial reporting credibility after reviewing a set of post-restatement actions taken by a firm. The possible actions include changes in four corporate governance mechanisms (i.e., internal audit function, external audit firm, board of directors, CFO) and a buyback of company stock. Our results provide an important contribution to the literature by demonstrating that among non-professional investors, perceptions of management’s financial reporting credibility are affected both by the post-restatement action taken and the nature of the restatement. These results offer insight into the formation of a key credibility judgment made by non-professional investors following a trust-destroying event, an earnings restatement. (shrink)

The frequency of earnings restatements has been increasing over the last decade. Restating previous earnings erodes perceived trustworthiness and competence of management, giving firms strong incentives to take actions to enhance perceived credibility of future financial reports [Farber, D. 2005, The Accounting Review 80, 539-561.]. Using an experimental case, we examine the ability of post-restatement actions taken by a firm to positively influence nonprofessional investors' perceptions of management's financial reporting credibility. Our examination considers credibility judgments following two types of restatements (...) -those resulting from fraud in which the character, ethics, and values of an organization may be called into question [cf. Copeland, Jr., J. E.: 2005, Accounting Horizons 19, 35-43.], and those resulting from non-fraud. Based on the information in the experimental case, non-professional investors take the role of potential equity investors and make a judgment about management's financial reporting credibility after reviewing a set of postrestatement actions taken by a firm. The possible actions include changes in four corporate governance mechanisms and a buyback of company stock. Our results provide an important contribution to the literature by demonstrating that among non-professional investors, perceptions of management's financial reporting credibility are affected both by the postrestatement action taken and the nature of the restatement. These results offer insight into the formation of a key credibility judgment made by non-professional investors following a trust-destroying event, an earnings restatement. (shrink)

This chapter takes the form of a discussion between the editors of this volume and Steven Lukes, one the most eminent critics of methodological individualism. The focus is on Lukes’ interpretation of methodological individualism in terms of linguistic exclusivism (i.e., naive reductionism), the multiple-realization problem, Boudon’s and Elster’s micro-foundationalist approach, ontological individualism, and the rationality of human action.

In this paper I defend Kaplan’s claim that the sentence “I am here now” is logically true. A number of counter-examples to the claim have been proposed, including occurrences of the sentence in answerphone messages, written notes left for later decoding, etc. These counter-examples are only convincing if they can be shown to be cases where the correct context with respect to which the utterance should be evaluated is the context in which it is decoded rather than encoded. I (...) argue that this is not the case, and draw on the distinction between force and content to suggest an alternative account of how information is communicated in these cases that is consistent with Kaplan’s semantic theory. (shrink)

David Kaplan's semantic theory for indexicals yields a distinct logic for indexical languages that generates contingent a priori truths. These special truths of the logic of indexicals include examples like "I am here now", an utterance of which expresses a contingent state of affairs and yet which, according to Kaplan, cannot fail to be true when it is uttered. This claim is threatened by the problem of displaced communications: answerphone messages, for example, seem to facilitate true instances of (...) the negation of this supposed logical truth as they allow the agent of the message to no longer be at the location of the message when it is encountered by an audience. Many such displaced communications can be identified in everyday natural language uses of indexicals. Recent discussion has suggested that Kaplan's error is to be overly restrictive in the possible contexts of utterance his semantic theory recognizes, as he fails to acknowledge the possibility of utterances that occur at a context distinct from that in which they are constructed. I reject this diagnosis and defend Kaplan's semantic theory. Displaced communications, I argue, are best understood as resulting from a pragmatically introduced metalinguistic context-shifting operation and hence do not demand revision of Kaplan's semantic theory. I provide an analysis of the pragmatic process underlying this operation and make the case for its merits over those of rival accounts of displaced communications. (shrink)

The codification of international human rights law and international humanitarian law, and the accession to those treaties by a large majority of states, does not at first glance seem to have any significant effect upon states' behavior in situations of crisis. Any understanding of the prospects for such law in these situations requires an appraisal of both the motivations of states in concluding these treaties and the pressures on them to ignore them. This paper analyzes those motivations and temptations through (...) the framework of precommitment theory, a component of rational choice theory, originally articulated by Jon Elster and Thomas Schelling. The metaphor of Ulysses offers a useful way to address three different dimensions of the purposes that states join treaties: beliefs, i.e., the state's attitude toward the norms in the treaty; predictions, the state's concerns about its own future behavior; and interactions, i.e., the extent to which the state is trying to influence or bind other states. And it permits linking those motivations to the propensity of states to comply at a later time. The paper offers a four-part typology for why states commit to such treaties, contrasting it with notions from contemporary international relations theories. It then explores the contrasting approaches of compliance theories and international law doctrine to the temptation of states to violate treaties and elaborates the contributions of the precommitment framework. Building upon that framework, it proposes a set of strategies that those concerned with compliance might explore for making international law more relevant when governments seem most inclined to discount it. (shrink)

Jon Robson and Aaron Meskin have argued that the insights obtained through the philosophical analysis of video games is not specific to video games, but to a larger class of artistic creations they term Self-Involving Interactive Fictions, or SIIFs. But there is at least one aspect of SIIF video games that is philosophically interesting and does not apply to the class of SIIFs as a whole, the ability to represent non-classical time. If SIIF video games are considered to be an (...) extension of the art form of graphic narrative story-telling, the art form dominated by film, then the ability to represent time in in this fashion represents a revolution akin to that of vanishing point perspective in painting. This makes SIIF video games philosophically interesting for both philosophers of film and philosophers of video games. (shrink)

It is argued that, despite its considerable virtues, Jon Elster's approach to counter-factual reasoning in history misfires in a number of ways. First, his classification of the various approaches to the problem among logicians and philosophers is inadequate and confusing: he claims to follow the meta-linguistic approach, uses the idiom of the possible worlds approach but would be better advised, given his own intuitions and purposes, to adopt the condensed argument approach. This would not only make his argument clearer and (...) less confusing: it would also improve it. It is argued, secondly, that Elster makes exaggerated claims for his own 'branching worlds' theory, which he does not show to be the 'correct' account of counterfactuals; this only serves to relocate the central problem, since everything hinges on the identification of branching points. Thirdly, it is argued that Elster is therefore led into a mistaken account of when counterfactuals are illegitimate: he does not prove that historical counterfactuals must be about real possibilities in the past, and that we are not permitted to suppose, in contravention of our actual beliefs, that the laws we accept are suspended in some specified sphere but otherwise applicable. (shrink)

One of the world's most important political philosophers, Jon Elster is a leading thinker on reason and rationality and their roles in politics and public life. In this short book, he crystallizes and advances his work, bridging the gap between philosophers who use the idea of reason to assess human behavior from a normative point of view and social scientists who use the idea of rationality to explain behavior. In place of these approaches, Elster proposes a unified conceptual framework for (...) the study of behavior. Drawing on classical moralists as well as modern scholarship, and using a wealth of historical and contemporary illustrations, Reason and Rationality marks a new development in Elster's thinking while at the same time providing a brief, elegant, and accessible introduction to his work. (shrink)

Jon Shields's finding—that certain evangelical pro‐life activist groups are more interested in deliberative discussions about abortion than are pro‐choice activists—is wrong on methodological, normative, and philosophical grounds. He generalizes about pro‐life civility from a small, trained sample group, and ignores possibly important variables that would explain pro‐choicers' incivility. Further, politeness is not necessarily a requirement of democratic deliberation—which entails not forcing one's own beliefs on the public, as pro‐lifers manifestly are trying to do, despite their calm demeanor. Conversely, some pro‐choicers' (...) refusal to engage in debates is not a deliberative failure, as Shields suggests, as deliberation includes such things as campaigning and canvassing. Lastly, Shields, and the pro‐lifers he has observed, use the weakest of the pro‐choice arguments, instead of focusing on the best academic work in the field. (shrink)