Organizations & Markets

This paper compares accounting and finance approaches to equity valuation, with a focus on practical investing. It shows how the two endeavors tie to the same theoretical foundation so they have the potential of being unified. Finance has largely focused on the "denominator" aspect of valuation— the discount rate—under the mantra of "asset pricing" while accounting has largely focused on the numerator; specifying the expected accounting outcomes to be discounted. The paper shows how both accounting and finance can be unified to resolve both the numerator and denominator issue in valuation.

This article characterizes optimal policy when a government uses indirect control toexert its authority. Wedevelopadynamicprincipal-agent model inwhich a principal (a government) delegates thepreventionof a disturbance–suchas riots, protests, terrorism, crime, or tax evasion–to an agent who has an advantage in accomplishing this task. Our setting is a standard repeated moral hazard model with two additional features. First, the principal is allowed to exert direct control by intervening with an endogenously determined intensity of force which is costly to both players.

International Financial Management seamlessly blends theory with the analysis of data, examples, and practical case situations. Overall, Bekaert and Hodrick equips future business leaders with the analytical tools they need to understand the issues, make sound international financial decisions, and manage the risks that businesses may face in today"s competitive global environment.

All data in this edition has been updated to reflect the most recent information, including coverage on the latest research, global financial crisis, and emerging markets.

Using informant reports on working professionals, we explored the role of listening in interpersonal influence and how listening may account for at least some of the relationship between personality and influence. The results extended prior work which has suggested that listening is positively related to influence for informational and relational reasons.

We provide evidence from the field that levels of discrimination are heterogeneous across contexts in which we might expect to observe bias. We explore how discrimination varies in its extent and source through an audit study including over 6,500 professors at top U.S. universities drawn from 89 disciplines and 258 institutions. Faculty in our field experiment received meeting requests from fictional prospective doctoral students who were randomly assigned identity-signaling names (Caucasian, Black, Hispanic, Indian, Chinese; male, female).

This chapter on mind perception reviews social cognitive research on how individual perceivers draw inferences about the beliefs, desires, intentions, and feelings of others around them, a process that is at once remarkable and nearly ubiquitous. We begin by examining how perceivers do this, discussing research on various inferential sources, including reading situations, faces, behavior, social groups, and the self. We also discuss accounts that address how perceivers might shift between these inferential sources, such as embracing stereotyping in lieu of social projection or vice versa.

Previous research suggests that cortisol can affect cognitive functions such as memory, decision making and attentiveness to threat-related cues. Here, we examine whether increases in cortisol, brought on by an acute social stressor, influence threat-related decision making. Eighty-one police officers completed a standardized laboratory stressor and then immediately completed a computer simulated decision making task designed to examine decisions to accurately shoot or not shoot armed and unarmed Black and White targets.