Trust serves as a foundational factor facilitating efficient and transparent transactions among trading parties. Blockchain has emerged as a platform for enhancing trust and transparency and promises significant improvements in assurance services. Whether trusting a technology influences assurance practitioners' judgment and decision-making is currently unclear. Therefore, it is imperative to understand the perceptions of practitioners and the implications of trusting mechanisms inherent in the network within the context of information assurance. The study examines whether perceptions of practitioners in assurance services about IT risks are influenced by features of information systems based on centralized (e.g., ERP) and decentralized (e.g., blockchain) architectures and how these perceptions shape their IT risk assessment in the assurance process. The findings reveal distinctions in trust perceptions between centralized and decentralized IT architectures and provide valuable insights into perceptions of assurance professionals that may impact assurance strategies, risk evaluations, and resource allocation in the assurance processes.

In the ever-evolving landscape of online advertising, where revenue holds significant importance for Internet-based organizations, the efficient scheduling of banner advertisements has become paramount. This paper studies the banner advertisement scheduling problem, expanding its scope to include ad conflicts and display time windows, highlighting the complex dynamics of modern advertising. Conflicts arise when advertisements cannot be shown in the same time slots, often due to brand rivalry or content incongruity. Furthermore, each accepted ad must be displayed within a designated time window. The study develops a column generation-based algorithm to tackle this challenging scheduling problem. Computational experiments on large datasets show that the column generation approach is highly effective, delivering near-optimal solutions in a reasonable time frame. This efficiency is crucial in an industry where time-sensitive decisions to maximize revenue are paramount.

This paper examines whether ethical corporate citizenship moderates the effect of CEO power on financial leverage, cost of debt, dividend payout, and firm value. Results show that powerful CEOs who lead WMECs are likely to borrow more money at cheaper cost of debt, and pay higher dividends compared to powerful CEOs who lead non-WMECs. CEO power is not linearly related to Tobin's q measure of firm value. Results do not change if we include corporate governance variables on the dual role of CEO and chairperson, CEO's tenure, and percent of shares owned by the CEO. Our findings provide important policy implications for firms disclosures on ESG activities beyond a mere compliance exercise to an effective monitoring and enforcement process that protects investors in the capital markets, similar to WMECs annually re-certified by Ethisphere.

Despite external evidence that employers seek MBA graduates with cross-functional problem-solving skills, prior research does not utilize financial statement analysis (FSA) as a tool for nonprofessional investors (NPIs) to develop interdisciplinary perspectives on problem-solving. This paper examines whether individual and group of NPIs stock investment decisions are influenced by the interaction of management credibility, competitive strategy, and financial flexibility as interdisciplinary FSA factors that professional analysts use for decision-making. Results indicate that when an NPI perceives the management of a public company is credible and the company has favorable (unfavorable) competitive strategy, the NPI is likely to buy (sell) the stock. Also, an NPI is virtually certain to buy (76% likely to sell) stock of a public company with credible management and unfavorable (favorable) financial flexibility. An NPI makes consistent stock investment decisions as the respective NPIs group. Results have implications for using FSA in solving business problems that have high rather than low integrative complexity.

We examine whether accounting for high performing employee services as a right of use (ROU) asset and related liability on the balance sheet provide decision-useful financial statement information to nonprofessional investors (NPIs). We compare accounting for the right to use employees services as an asset on-balance-sheet (ONBS) and off-balance-sheet (OFFBS) to examine the extent to which a ROU asset and related liability provides NPIs with decision-useful information in assessing investment opportunity and likelihood to invest in a company's stock. We analyze one hundred and fifty-five usable responses of which 84 are in OFFBS control condition and 71 are in ONBS treatment condition. We find that accounting for high performing employees services as a ROU asset ONBS or OFFBS provides decision-useful information to NPIs that is not statistically different. Further analysis indicates that accounting for high performing employees as a ROU intangible asset presented ONBS, measured at fair value, or amortized cost with enhanced disaggregation and roll forward disclosures provide decision-useful information to NPIs. The likelihood to invest in a company's stock significantly increases if the ROU asset is measured at fair value with changes recorded in net income. Results have economic and practical implications for investors, standard-setters, and researchers.

ABSTRACTWe examine how an IT service provider’s persuasive communication related to SOC2 report findings influences management’s (i.e., user-entities’) perceptions of the outsourced services. Within SOC2 reports, service providers can attempt to influence management’s impressions of auditor-identified issues and, due to the report’s limited audience, also follow up with management about these issues. Using dual-process theories of persuasion, we predict the type of persuasion used by a service provider in a SOC2 report (contend or concede), and its consistency with follow-up persuasive appeals (contend or concede), will influence management’s perceptions of the services provided. In an experiment, only when the service provider first contends the auditor’s findings does a follow-up concession (rather than contention) result in more favorable perceptions. Persuasion tactics also influence management’s processing of risk factors, which impact their trust in the service. Thus, IT service providers’ initial and follow-up persuasive communications influence management’s assessment of SOC2 auditor-identified issues.Data Availability: Data used in this study are available upon request.

This paper examines the impact of managerial entrenchment on financial flexibility, and financial leverage decisions of small public firms compared to medium and large firms. We group firms into market capitalization quartiles where small public firms are within the first, medium firms are between the first and second, and large firms are above the third quartile. Results show that entrenched managers in small firms hold significantly less excess cash than entrenched managers in medium or large firms. Small public firms borrow significantly more money using short-term maturity compared to medium and large size firms, which borrow less money using long-term maturities. Compared to pre-2008 crisis levels, most firms borrowed more money and held more excess cash during and after the global economic crisis, though small firms had limited access to cheap long-term funding compared to medium and large firms. Managers adopted more antitakeover practices after the 2008 global crisis and they became more entrenched. Results have economic and policy implications.

Based on his experience during the past two decades of research, teaching, and administration in a department composed of Accounting and Information Systems, the author makes several observations as well as some predictions for the next two decades based on trends that suggest accounting students need strong technology and analytics skills, as well as understand how new forms of trust mechanisms can impact their work. Predictions, in the absence of having a crystal ball, is a difficult task and can merely rely on technological trends and developments. Some trends can have a high likelihood of finding traction and have transformational power to fundamentally change the nature of work for accounting and auditors responsible for information assurance even beyond financial information, to other types of real-time streaming information. The potential transformation of the accounting profession has implications for teaching and curriculum development that can prepare students for new work paradigms.

We consider the multiple knapsack problem with setups which is a generalization of the classical knapsack problem. In this problem, there are multiple knapsacks and the items belong to families such that an item can be placed in a knapsack only if its family is selected and assigned to that knapsack. We present an algorithm based on a Lagrangean relaxation of the problem that takes advantage of the structure of the problem. The algorithm produces solutions whose quality can be assessed automatically without ever knowing the optimal solutions. We carry out a computational study to evaluate the performance of the proposed algorithm on a benchmark data set from the literature. The results show a great performance of the algorithm compared to published state-of-the-art approaches, as it generates better values for 9% of the instances and the same values for 90% of the instances. The algorithm generated new best-known values for 6% of the instances compared to both the published state-of-the-art approaches and the commercial solver CPLEX. We also report the results of an additional computational study that show that the algorithm scales up extremely well, solving near-optimally very large instances with up to 5 knapsacks, 200 families, and 300,000 items in a reasonable amount of time on a desktop PC.

As companies begin to explore and develop technology solutions based on blockchain and smart contracts, there is a need to understand the impact of blockchain and smart contracts on the assessment of internal controls and enterprise risk. Especially since the distributed ledger and smart contracts blur the system boundaries between trading partners, there is a need to understand whether internal control assessments based on a single company approach is adequate in an integrated and collaborative environment. This paper provides an overview of smart contracts for practitioners and describes the associated risks of engaging in a blockchain consortium. We also list potential questions related to internal controls that may be considered when either engaging in a consortium or executing a smart contract. We then discuss whether current frameworks, specifically the Committee of Sponsoring Organizations' (COSO) integrated and COSO's Enterprise Risk Management (ERM) frameworks, adequately address a collaborative supply chain ecosystem.

Purpose The traditional image of an accountant as a boring, number cruncher may affect the likelihood that students with certain personality traits pursue the profession. This paper aims to identify differences in the traditional personality traits and cognitive styles associated with an accountant and identify the personality traits and cognitive styles of students currently entering the profession using empirical data. Design/methodology/approach A survey including a previously validated scale based on the Myers-Briggs type indicator and the Rational-Experiential Inventory-10 short scale was administered to 182 students enrolled in upper-level accounting courses. Findings Agreeing with the traditional image of an accountant, this study finds an uneven split for sensing/intuition and judgment/perception. Interestingly, this study finds a near even split in extraversion/introversion, thinking/feeling and cognition/intuition, which may affect interactions within the workplace. These near-even splits may indicate a positive shift in those pursuing a career in accounting toward individuals more capable of thinking outside the "box." Practical implications This study informs firms of changes in the characteristics of accounting graduates entering the profession. Many firms have promoted the need for skills such as critical thinking, teamwork and communication recently, and it is expected that potential employees would exhibit these skills and behaviors. Determining the characteristics of new staff auditors, using empirical data, is critical given the increased analytical and interpersonal skills expected of those currently entering the profession. Originality/value Assessing the current composition of students pursuing careers in accounting is important because individuals' personality differences can account for a large portion of differences in their behaviors. Shifting away from the stereotypical boring, nerdy, number cruncher accountant to a more colorful individual who thinks outside the "box" could have both positive and negative implications on the quality of work performed.

The main issue of the study is the analysis of the impact of the level of information security of the construction process and the impact of the level of professional competence of personnel on the reliability characteristics of the planned terms of construction work. The aim of the study was to construct a simulation model and conduct simulation cycles/experiments in order to obtain the probabilistic characteristics of the output parameters, which are the possible terms of construction and the probability of implementation of these terms. Also, the aim of the study was to determine the permissible level of professional competence of personnel and the permissible level of non-availability of primary information necessary for construction work. Results. Methods of computational mathematics in the Excel software environment built a simulation model of the construction process, which includes the sequential execution of several stages of construction work, taking into account the level of information uncertainty and probabilistic level of competence of personnel. Numerous graphical information of the change of construction terms under the influence of probabilistic factors is given. Conclusions: the Model has shown the possibility of controlling the probability vector of the construction process, and the ability to bring its output probability characteristics to acceptable deviations from the planned value.

We examine how audit clients’ persuasion tactics in limited distribution (non-public) assurance reports influence end-user decisions. Auditees can persuade end-users by formally discussing auditor-identified issues disclosed in certain assurance reports and, due to the limited audience, informally follow-up with end-users. Using the Elaboration Likelihood Model, we predict the type of formal persuasion used by a service provider in an attestation report (contend or concede), and its consistency with informal follow-up persuasive appeals to management (again, contend or concede), will influence end-users’ judgments. In an experiment, only when the service provider first contends the auditor’s findings does a follow-up concession (rather than contention) result in more favorable managers’ perceptions of the provider’s ability to deliver on the contracted services. Persuasion tactics impact judgments by influencing managers’ processing of risk factors and their trust in the service. These findings provide insight into how multiple persuasion tactics impact users’ decisions during compliance audits.

Abstract The article deals with the methodology of assessing the culture of construction production of the contractor on the object of capital repairs, in particular repairs of facades of apartment buildings. Due to the fact that the culture of production is a mirror of labor relations, a mirror of human, political and economic maturity of managers, the quality of work performed will directly depend on this. For complex assessment 8 groups of criteria were determined, which, depending on the types of work, contain various controlled indicators, estimated by the linear function of the associated values.

This study investigates the influence of climatic conditions on the performance of the construction process and the characteristics of the elements of the construction process: construction machines, workers, the estimated cost of construction, and the reliability of construction deadlines. As an integral indicator of weather and climatic conditions, the indicator of "weather hardness"was chosen. The method of simulation modeling with its ability to generate random numbers with the given parameters is chosen as a mathematical model on a computer. The aim of the study is to identify the regression and correlation relationships between the indicators of weather hardness and the corresponding indicators of the elements of the construction process: the Fund for working time of workers, the coefficient of technical readiness of construction equipment, increasing the estimated cost of construction, increasing labor costs for the re-installation of construction equipment, identification of additional costs by types of work,for all the stated dependencies, regression equations are obtained.The results are presented in graphical form, and the results show that the proposed simulation model of the impact of weather and climatic conditions on the characteristics of the construction process allows to optimize management decisions, and reduce construction risks, reduce the estimated cost of construction.

Аннотация.Основным вопросом исследования является изучение влияния погодноклиматических условий на показатели строительного процесса и характеристики элементов строительного процесса в контексте надёжности и безопасности функционирования основных элементов строительного: процесса: строительные машины, рабочих, сметной стоимости строительства, надёжности сроков выполнения строительства.В качестве интегрального показателя погодно-климатических условий выбран показатель «жёсткости погоды».В качестве математического вычислительного аппарата выбран метод имитационного моделирования.Целью исследования является выявление регрессионно-корреляционных зависимостей между показателями жёсткости погоды и соответствующими показателями элементов строительного процесса: фонда рабочего времени рабочих, коэффициента технической готовности строительной техники

Введение. Рассмотрена система организации и внедрения риск-менеджмента на строительных предприятиях. Внедрение и управление рисками на строительном предприятии является актуальной проблемой в связи с возникновением следующих факторов: неполная информация, элементы случайности, непредсказуемость действий партнера или конкурента и т.д. По сути, риск является обратной стороной свободы производственной деятельности в строительстве, при возникновении риска необходимо самостоятельно принять решение в условии неопределенности. На практике невозможно предугадать без конкретных и определенных знаний будущие последствия принятого решения. Управление рисками в строительстве - процесс, который необходимо начинать уже на стадии разработки стратегии строительной компании, причем обязательно с участием ее владельцев, поскольку именно владельцы при разработке стратегии должны определить максимальный уровень суммарного риска, на который будет готова идти промышленная компания в процессе своей деятельности. Управление рисками на строительных предприятиях необходимо осуществлять в рамках системного и процессного подходов, с учетом специфики отрасли с использованием современных эффективных методов управления и организации производства, а также с использованием инструментов риск-менеджмента. Материалы и методы. Для исследования строительных организаций и внедрения риск-менеджмента использовалась методология непрерывного процесса управления рисками, также были использованы методы системного анализа, моделирования и синтеза. Результаты. Определено, что для эффективного риск-менеджмента в строительной организации целесообразным является создание отдела управления рисками. Основные обязанности данной структурной единицы, в том числе для персонала и других пользователей (включая сотрудников, консультантов и подрядчиков), в целях успешной реализации стратегии управления требуют безоговорочного выполнения для минимизации рисков и исключения издержек при внедрении риск-менеджмента. Выявлено, что в результате внедрения риск-менеджмента на строительных предприятиях различных отраслей должен быть разработан комплекс мероприятий, позволяющих оценить операционные риски предприятия, интегральный риск, количественная оценка которого основана на комплексном анализе финансовой и бухгалтерской отчетности, и проведение оценки интегрального риска на основе всех уровней ответственности строительного предприятия. Выводы. Управление рисками в строительных организациях необходимо осуществлять в рамках системного и процессного подходов, с учетом специфики отрасли с использованием современных эффективных методов управления и организации производства, а также с использованием инструментов риск-менеджмента.

Introduction. Consider the system of organization and implementation of risk management in the building enterprise. The introduction and management of risks in an industrial enterprise is an actual problem due to the occurrence of the following list of factors: incomplete information, elements of randomness, unpredictability of actions of a partner or competitor, among others. Risk management is a process that must begin at the development stage of a industrial company’s strategy, and necessarily with the participation of its owners, since it is the owners who, when developing a strategy, should determine the maximum level of total risk that the industry company will be ready to accept in the course of its activities. Risk management in industrial enterprises should be implemented within the framework of the system and process approaches, taking into account the specifics of the industry using modern effective management methods and production organizations, as well as using risk management tools. Materials and methods. The methodology of the continuous risk management process was used to study the industry organization and implementation of risk management, and systems analysis, modeling and synthesis methods were used. Results. It was determined that the creation of a risk management department is appropriate for effective risk management at the industry enterprise. The main responsibilities of this unit, including for staff and other users (including employees, consultants and contractors), in order to successfully implement the management strategy, require unconditional implementation to minimize risks and eliminate costs in implementing risk management. It was revealed that as a result of introducing risk management in industry enterprises of various industries, a set of measures should be developed to evaluate the operational risks of an enterprise, integral risk, quantitative assessment of which is based on a comprehensive analysis of financial and accounting reports, and conducting an integrated risk assessment based on all levels of responsibility within the industrial enterprise. Conclusions. Risk management at industrial enterprises should be carried out within the framework of the system and process approaches, taking into account the specifics of the industry using modern effective management methods and production industrial organizations, as well as using risk management tools.

With the Internet permeating every aspect of daily life, organizations of all types are increasingly concerned about the degree to which their employees are cyberloafing by shirking their work responsibilities to surf the Internet, check e-mail, or send text messages. Although technological interventions against cyberloafing have been shown to be effective, they might be perceived by employees as an invasion to their privacy, and are expected to have repercussions on employee behavior and loyalty. The main objectives of this study are to (1) examine how the introduction of such technological interventions might affect employees’ emotions and fairness perceptions, and (2) understand the effect of the interventions on behavioral outcomes, i.e., employees’ intentions to cyberloaf and their loyalty to the company. We developed a justice-based framework that we empirically test using a field experiment composed of field surveys complemented with hypothetical scenarios describing new organizational initiatives to curb employees’ cyberloafing. Our findings suggest that technological interventions, although associated with perceptions of unfairness, are effective at controlling cyberloafing, albeit at the expense of employee loyalty. On the other hand, contrary to prior findings, we find that fairness perceptions of technological interventions, although reinforcing employee loyalty, are ineffective at curbing cyberloafing. These findings are especially enlightening in that they contradict a common belief that perceived fairness encourages employees, as a sign of their appreciation for this fairness, to curb their misuse of IT. The findings also help managers fine-tune their cyberloafing policies to achieve a long-lasting remedy to their employees’ cyberloafing while maintaining a necessary level of employee loyalty.

Modern economic conditions require construction companies to promptly prevent, identify and manage risks in various areas of their construction activities. As this research shows, many of the best practices of corporate risk management are adopted and applied in large Russian construction companies and in various industries. At the same time, the results of the research demonstrate the possibilities for further development. Key areas of development include: the process of integrating risk management into the development strategy of a construction company, the collection and accumulation of statistical data, interaction between units, the participation and active participation of key stakeholders, and the quality of information on key risks. Risk management is one of the most important functional areas in the methodology of project management in the construction sector. In practice, as a rule, in addition to quantitative risk assessment, qualitative risk assessments in construction is also always utilized. However, the theory of risk management based on qualitative assessments is virtually absent in the Russian practice. This article provides a definition of qualitative risk assessments and complex risks in the construction field. We desceibe the tasks involved in risk management in construction and propose algorithms for solving corresponding problems in the construction field.