This study examines the history of taxation, specifically how taxation was used over the centuries by major world civilizations. This study provides a comprehensive review of past and more recent studies, spanning the full length of tax history using a quasi-empirical approach, thereby offering a unique contribution to the academic literature. Theoretical foundations include Adam Smith’s Canons of Taxation, benefit theory, ability theory, and tax assignment theory. Implications are drawn for the future of taxation. Findings suggest that various forms of taxation played a critical role in amassing resources necessary to build and sustain world empires and republics. Implications are that this will continue. Excessive taxation was included as a factor in the downfall of some empires. World history might have taken a notably different direction without the revenues accumulated via taxation. Results will interest tax policy makers, academic tax researchers, law professors, and others concerned with the historicity of taxation. Results can also be used by accounting and legal educators.

The success of business firms and other organizations relies on the trustworthiness of reports and other documents prepared by management accountants. This study examines the personal ethical values and ethical value types of management accountants. Data were obtained from a survey of members of the Institute of Management Accountants (IMA). The survey, composed of the Rokeach Values Survey and demographic questions, was delivered by the IMA Research Lab to membership samples. Importantly, the results indicated that the highest-ranked values were consistent with values included in the IMA’s Statement of Ethical Professional Practice. That management accountants hold high ethical values better enables them to provide reliable and meaningful work to business firms and other organizations. Another important finding is that older management accountants are more concerned with moral values than their younger colleagues. This finding has notable implications for the future of the profession.

This study reports on accounting faculty perceptions of ethical tone-at-the-top (TATT) - indicative of ethical leadership - and explores the relationship of TATT to faculty job satisfaction. Both constructs have international applicability. A sample of 539 survey responses from United States accounting faculty provided data for the analyses. Job satisfaction and perceptions of TATT, proxy measured with the Ethical Leadership Scale and the Behavioral Integrity scale, were found significantly and positively related. Most accounting faculty perceived an ethical TATT, and most faculty were satisfied with their jobs. Nevertheless, about a third did not affirmatively indicate that their direct supervisor reflected an ethical TATT and about a fifth did not affirmatively indicate that they were satisfied with their jobs. Female faculty compared to male faculty, and tenured faculty compared to non-tenured faculty, had lower perceptions of the TATT of their direct supervisors and had less job satisfaction. By improving the TATT in accounting departments, academic leaders can perhaps retain more faculty, decrease unethical behaviors, and provide improved ethics training to future accountants.

Human trafficking continues to be a profitable multi-billion dollar business. People are either callous toward human rights or they are unaware of the crime occurring. Many businesses may unknowingly facilitate human trafficking by providing services, such as transportation, hotels, or haircuts, or purchasing products from unfamiliar sources that secretly use forced labor. To be socially responsible, a business must establish effective enterprise governance policies that help prevent and detect trafficking. A business can incur legal fines, damage to its reputation, incur lost business, and be subject to litigation, all as a result of human trafficking. Worldwide, estimates are that 50 million people are being trafficked. Human trafficking is especially harmful to females, both adult women and girls, who comprise about 70 percent of all trafficking victims. Gender theory helps explain this disproportionate impact on women. This study provides an overview of human trafficking, an empirical analysis of the relationship of gender inequality to trafficking, and specific steps that a business can take to help prevent this crime, protect its reputation, and avoid fines and lost business.

This study examines some of the documentation tools and techniques that forensic accountants, internal auditors, external auditors, and others can use to document accounting and financial reporting systems under investigation. While prior research has addressed these items piecemeal, this study is the first to incorporate them, along with current related research and theoretical foundation, and relate them in aggregate to the work of forensic accountants, internal auditors, external auditors, and others. Inputs, processes, and outputs of modern accounting and financial reporting systems are often difficult to fully grasp, with weaknesses obscured by the complexities of the system. These weaknesses make a system vulnerable to fraudsters, embezzlers, hackers, and others who will take advantage of system weaknesses to perpetrate financial fraud, embezzlement, or other financial crimes. Documentation tools and techniques examined in this study will be useful to forensic accountants, internal auditors, external auditors, and others for identifying the components, processes, and potential weaknesses of accounting and financial reporting systems.

Professional and corporate codes of ethics (Codes) are commonly used, but they are not consistently effective. Research has indicated the importance of values included in Codes, but there is little research exploring how to improve the effectiveness of Code values. There are proven pedagogies that can be used in ethics training, notably, the values-focused approach known as value self-confrontation (VSC). VSC comes from the field of psychology and has been researched for over 50 years. This theory-based methodology is effective at increasing the importance of targeted values and positively changing attitudes and behaviors. Based on our thematic review of extant VSC literature, we develop a simplified VSC implementation strategy and instrument called code value self-confrontation (CVSC). CVSC involves a self-confrontation between a participant's personal values and the values of the organization. This confrontation can create value dissonance in the participant, which can increase the importance given to the values of the organization. VSC has been effective at positively impacting pro-organization behaviors as well as societal issues such as equality, race relations, and environmentalism. By increasing the importance of ethical values, organizations can be rewarded with behavioral changes that translate into more ethical work behaviors and decision-making.

The purpose of this study is to examine digital engagement with television commercials using online advertising metrics. Using data collected from 370 Super Bowl ads from 2014 through 2020, this study builds on prior research by examining digital engagement with the ads and related brands. Further, this study adds to prior research by including a broader measure of digital engagement along with the assessment of the sentiment of that engagement. Findings indicate that 'likeable' ads generate higher volume and more positive sentiment in digital engagement with the ad. Contrary to prior research, findings indicate that longer ads and emotional ads do not lead to increases in positive digital engagement. Findings from this research can help marketers design effective commercials that will increase their return on investment by stimulating digital engagement. Given the high cost of Super Bowl ads, this is very useful for marketing managers to know.

A long-time ethical issue in financial accounting is earnings management. Two popular ways that earnings are managed include use of accruals (Kothari et al., 2016) and real activities management (RM). This study examines the association between RM and short selling and an association between short sellers and RM behavior related to earnings management. Instead of using accruals, RM is accomplished by timing investment or financing decisions and thereby alter reported earnings. Our results show that short sellers avoid targeting firms with a high level of RM, but this only holds for those firms that just meet analysts’ forecasts. This result suggests that short sellers interpret RM as a signal used by companies to convey their “good news” and confidence in their future performance. On the other hand, the authors document that heavily shorted firms engage in a lower amount of RM, which is consistent with the notion that short selling plays an external disciplinary role in constraining firms’ RM behavior for earnings management. This chapter would be of interest to anyone concerned with earnings management, such as financial market analysts, investors, academic researchers, and, in particular, regulators, who are involved in setting rules on short selling.

Multinational enterprises (MNEs) must be able to communicate and process data efficiently and effectively throughout the firm. The use of information technology is often affected by the various cultures in which MNEs operate. Technological advances have altered the methods by which MNEs conduct both their domestic and international operations. Advances such as e-business, information security, and electronic financial reporting are among the most significant technological changes facing accountants. As accountants confront and resolve these challenges, they will need to consider the effects of culture on implementation and use of technology. The purpose of this study was to examine differences in cultural and organizational environments of MNEs. Based on these cultural differences, we formed and tested hypotheses regarding the utilization of information technology by accountants. The findings indicate that impediments to international data flow are significantly related to culture.

Prior research has examined the relationship of religiosity to aspects of business risks, notably, the ethical environment in which business firms operate. Religiosity is connected to economic factors and societal factors. This study examines the relationship of religion-based ethics, specifically Judeo-Christian ethicality, in a country (measured by Judeo-Christian presence as a proportion of the population) to economic freedom, economic activity, gender equality, social progress, and corruption. Modern business firms, in efforts to embrace diversity, accommodate cultural factors such as religiosity, particularly so in multinational operations where diverse religions will be encountered. Findings show that Judeo-Christian ethicality has a positive relationship to factors connected to a society’s sustainable business culture—that is, more economic freedom, higher economic activity, improved gender equality, better social progress, and lower corruption.

In this study, we examine major cryptocurrencies, present notable fraud cases, describe fraud risks, and analyze cryptocurrency financial performance. People debate whether cryptocurrency is an investment opportunity, the new Dutch Tulip Bubble, or a giant Ponzi scheme. There have been a number of high-profile fraud cases associated with cryptocurrencies, such as the FTX scandal in late 2022, thereby making fraud a real concern to current and potential future investors. Regarding financial performance, cryptocurrencies experienced a major collapse in value in the most recent period of the study, about three times worse than the major stock market indices. While in prior periods, cryptocurrencies have significantly outperformed stock market indices, recent fraud cases and the extreme volatility of cryptocurrencies indicate that investing in cryptocurrencies comes with much higher risk than traditional stock market investments. The debate over the investment potential of cryptocurrencies continues, whether they have long term value or are simply the new Dutch Tulip Bubble. The study’s findings will be useful to investors, regulators, and academic researchers regarding the cryptocurrency industry.

Purpose Cyber terrorism poses a serious technology risk to businesses and the economies they operate in. Cyber terrorism is a digital attack on computers, networks or digital information systems, carried out to coerce people or governments to further the social or political objectives of the attacker. Cyber terrorism is costly in terms of impaired operations and damaged assets. Cyber terrorism harms a firm’s reputation, thereby negatively affecting a firm’s stock market valuation. This poses grave worries to company management, financial analysts, creditors and investors. This study aims to evaluate the effect of cyber terrorism on the market value of publicly traded firms. Design/methodology/approach Financial information was obtained on business firms that were featured in news stories as targets of cyber terrorism. The firm’s stock price was recorded for 1, 3 and 7 days before and after the news article. Percentage changes in the firm’s stock price were compared to percentage changes in the Dow Jones Index to ascertain whether the firm’s stock price went up or down matching the market overall. Findings Results indicate that stock prices are significantly negatively affected by news of cyber terrorist attacks on companies. In all three time periods after the cyber terrorist attack, there was a significant negative decline in the stock value relative to the Dow Jones Index. Thus, the market valuation of the firm is damaged. As a result, the shareholders and institutions are financially damaged. Furthermore, exposed system vulnerability may lead to loss of business from consumers who have reduced confidence in the firm’s operations. Practical implications This paper examines the risks posed by cyber terrorism, including its impact on individual business firms, which in turn affect entire national economic systems. This makes clear the high value of cybersecurity in safeguarding computer systems. Taking steps to avoid being a victim of cyber terrorism is an important aspect of cybersecurity. Preventative steps are normally far less costly than rebuilding an information system after a cyber terrorist attack. Originality/value This study is original in examining the effect of cyber terrorism on the stock value of a company.

In 1494, the first printed book on double-entry accounting was written by Franciscan Friar Luca Pacioli, later called the Father of Accounting. He would become close friends with Leonardo da Vinci, the iconic symbol of the Renaissance. This study analyzes simultaneously the lives of Pacioli and Leonardo, using a ‘biographical lens’ approach, incorporating older research and more recent work, to shed new light on their lives and contributions, providing a glimpse of how they became friends, where their lives intersected, some interests they shared, and how each contributed to the other's work. Preparers and users of financial information are indebted to Luca Pacioli for his monumental role in the development of accounting. His friend, Leonardo, made myriad contributions to art and science, notably world-famous paintings such as the Last Supper. Pacioli and Leonardo changed the course of history with their exceptional contributions, sometimes collaborating, to their respective fields.

Increased regulatory scrutiny came in the aftermath of the financial scandals of the early 2000s, notably Enron and WorldCom. In addition to ushering in the Sarbanes-Oxley Act, an old law, the Foreign Corrupt Practices Act (FCPA) continues to receive attention. The FCPA was originally implemented over 30 years ago. In recent years, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have increased their investigation and prosecution of companies and individuals for violation of the FCPA, most recently with an increased focus on individuals. This increased scrutiny resulted from the tension between the ever increasing global economy, even in remote and developing countries of the world, and a US based law, enforced by US regulatory bodies but applied in environments with different values and ideals from those that gave rise to the legislation in the first place. This article examines the role of the FCPA in corporate governance, examines recent enforcement activities by the DOJ and SEC, the law’s impact on US companies, and actions taken by other countries around the world to respond to this issue.

A major public policy in most countries is the national tax system, often heavily debated. A citizen's moral responsibility to pay taxes was well established in the First Century AD with Jesus' famous statement: “Render to Caesar the things that are Caesar's, and to God the things that are God's”. Thus, while a citizen's duty is clear, there are still questions about the way taxes are designed and administered. In the USA, many citizens complain that taxes are overly complicated, burdensome and unfair. A potential replacement to the current federal tax system is the consumption-based 'FairTax'. This study examines millennials' perspectives regarding income-based and consumption-based tax systems, thereby ascertaining the level of openness to switch from the current income-based system to the FairTax, a consumption-based system. Findings have ramifications for all countries, if they are considering switching all or part of an income-based system to a consumption-based system.

The globalisation movement has greatly affected accounting practice but also academic accounting. Authors at the US universities have historically been major contributors to accounting academic research. An increasing percentage of contributors now come from other countries, such as Canada, the UK, Australia, New Zealand and others. This study examines representation of the US and non-US universities in six very highly ranked accounting journals over a 26-year period. Findings show that the average percentages of articles with non-US university representation vary across journals from the lowest, 15.34%, in The Accounting Review (TAR) to the highest, 64.12%, in Accounting, Organizations and Society (AOS). This study reveals that the force of globalisation is affecting accounting research and the publication landscape. These changes could help broaden perspectives and enrich understanding of accounting issues and accounting knowledge, thereby benefiting both scholarship and practice.

Research has shown that rankings of personal values significantly differ between accounting professionals and accounting students in the United States and other countries. This difference implies a lack of Person-Organization (P-O) fit between students and the accounting profession. This study presents an educational pedagogy, using both a Curriculum Modification (CM) Intervention and a Value Self-Confrontation (VSC) Intervention, that highlights professional values and can lead to value change in accounting students. Experimental results indicate that this pedagogy can have a significant impact on converging student values with those of the profession (AICPA ethics code). This finding suggests that a Curriculum Modification Intervention combined with a VSC Intervention could be used by educators globally to converge values of accounting students with those of professional accountants, thereby improving ethical decision-making by individuals, as well as having positive impacts on accounting firms' hiring, socialization, and retention of employees.

Public accounting firms increasingly use social media to market their services. Determining which social media platforms are the best fit for the firm and its clients can be a challenge. This study examines the use of social media by major Certified Public Accounting firms in Australia, according to the following measures: revenue, number of partners, number of offices, and gender distribution among partners. Findings indicate that social media can play an important role in marketing CPA services. Social media use differs according to revenue and total partners, but not number of offices. In addition, the findings show a gender difference exists, that social media use varies by the firm’s gender make-up, as measured by the female proportion of the firm’s partnership.

Energy firms provide key sources of energy needed to power the world economy. This paper offers a current overview of major energy firms in Germany, including location, geographic operations, and financial performance. German energy firms increasingly use renewable energy sources, thereby reducing use of fossil fuels, which are considered contributors to climate change. The topic of climate change is a highly contentious political debate. The political debate centers on how much of climate change is human-caused and what will be the future consequences. Extensive research indicates that climate change will not have significant negative consequences and could even have beneficial consequences. Nevertheless, radical environmental activists, aka climate-change-catastrophe-proponents (CCCPs), oppose any fossil fuel use. One thing not debatable is that reducing use of fossil fuels has increased the cost of energy and has thereby negatively affected economic progress. That the speculative benefit of reducing use of fossil fuel is more than the cost to society is unlikely. Political leaders, policy makers, and government regulators, in Germany and other countries, should consider both sides of the climate debate when formulating future energy policy.

Abstract Relationship marketing uses a strong relationship between seller and customer to offset limitations of selling an intangible service, such as insurance. Social media can facilitate interactions between agent and customer, thus strengthening the relationship. Customers willingly connect with companies via social media. This article examines the social media platforms’ usage of insurance companies. Findings show Facebook, Twitter, and LinkedIn to be most commonly used. Differences in social media usage were found between companies selling life and health insurance and those selling property and casualty insurance. Companies highly involved in social media possess higher profit margins than companies with low involvement.