Naomi S. Soderstrom

Bio: Naomi S. Soderstrom is an academic researcher from University of Melbourne. The author has contributed to research in topics: Market value & Accounting information system. The author has an hindex of 28, co-authored 65 publications receiving 3723 citations. Previous affiliations of Naomi S. Soderstrom include Northwestern University & University of Colorado Denver.

IFRS Adoption and Accounting Quality: A Review

Abstract: In 2002, the European Union (EU) Parliament passed a regulation that requires consolidated and simple accounts for all companies listed in the EU to use International Financial Reporting Standards (IFRS) for fiscal years starting after 1 January 2005. This change in accounting systems will have a large impact on the information environment for EU companies. This paper provides a review of the literature on adoption of different Generally Accepted Accounting Principles (GAAP). We thus provide background and guidance for researchers studying the change in accounting quality following widespread IFRS adoption in the EU. We argue that cross-country differences in accounting quality are likely to remain following IFRS adoption because accounting quality is a function of the firm's overall institutional setting, including the legal and political system of the country in which the firm resides.

IFRS Adoption and Accounting Quality: A Review

Abstract: In 2002, the European Union (EU) Parliament passed a regulation that requires consolidated and simple accounts for all companies listed in the EU to use International Financial Reporting Standards (IFRS) for fiscal years starting after January 1, 2005. This change in accounting systems will have a large impact on the information environment for EU companies. This paper provides a review of the literature on adoption of different GAAPs. We thus provide background and guidance for researchers studying the change in accounting quality following widespread IFRS adoption in the EU. We argue that cross-country differences in accounting quality are likely to remain following IFRS adoption because accounting quality is a function of the firm's overall institutional setting, including the legal and political system of the country in which the firm resides.

Does Capacity Utilization Affect the “Stickiness” of Cost?

Abstract: Traditional cost models are constructed using the assumption (Noreen [ 19911) that costs change proportionately with activity levels. The implicit assumption is that the proportionality of the change in cost is independent of the magnitude and direction of change in activity levels. Considerable attention has been devoted to examining the explicit proportionality assumption (e.g., Noreen and Soderstrom [ 1994, 19971; Balakrishnan and Soderstrom [2000]). Recent research (Anderson, Banker, and Janakiraman [2003]) has begun to examine the implicit assumption of whether the direction of change in activity moderates the cost response. A differential response is expected because, as Cooper and Kaplan (1998) observe, managers seem more inclined to increase costs when activity levels increase than they are to decrease costs when activity levels decrease. Anderson et al. (2003) coin the term “sticky” cost to capture this asymmetric cost response. Their analysis of selling, general and administrative costs provides broad support for the conjectured behavior.’ This paper extends the analysis in Anderson et al. (2003) to capture the effect of two factors that may also moderate the manager’s response to changing activity levels. First, the magnitude of the change may influence the proportionality of response. Significant transactions costs associated with changing cost levels may rationally lead to the response to a “large” change in activity being proportionately larger than the response to a “small” change in activity.’ The response to small

Regression Diagnostics: Identifying Influential Data and Sources of Collinearity

Abstract: 1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.

Stakeholder Theory: The State of the Art

Abstract: For the last 30 years a growing number of scholars and practitioners have been experimenting with concepts and models that facilitate our understanding of the complexities of today’s business challenges. Among these, “stakeholder theory” or “stakeholder thinking” has emerged as a new narrative to understand and remedy three interconnected business problems—the problem of understanding how value is created and traded, the problem of connecting ethics and capitalism, and the problem of helping managers think about management such that the first two problems are addressed. In this article, we review the major uses and adaptations of stakeholder theory across a broad array of disciplines such as business ethics, corporate strategy, finance, accounting, management, and marketing. We also evaluate and suggest future directions in which research on stakeholder theory can continue to provide useful insights into the practice of sustainable and ethical value creation.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

Abstract: What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.