Do high-reputation companies pay more non-audit fees?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xuan Huang ◽  
Fei Kang
Keyword(s):  
Knowledge Spillovers ◽  
Audit Fees ◽  
Agency Conflicts ◽  
Managerial Decision ◽  
Public Companies ◽  
Content Type ◽  
Corporate Behavior ◽  
Company Reputation ◽  
Potential Benefits ◽  
Practical Implications

Purpose The purpose of this study is to investigate the association between companies’ reputation and their purchase of non-audit services (NAS). Design/methodology/approach This study measures company reputation using the reputation scores from Fortune’s “America’s Most Admired Companies” list. Multivariate analysis is performed to examine the association between public companies’ overall reputation and their decision of NAS purchase. Robustness checks are performed to control for self-selection bias and alternate measures are used to proxy for company reputation and NAS fees. Findings This study finds that high-reputation companies on average pay more NAS fees than their counterparts. The results suggest that due to less severe agency conflicts, high-reputation companies tend to purchase more NAS from their incumbent auditors to appreciate the potential benefits of the auditors’ knowledge spillovers. Originality/value The findings of this study on the association between company reputation and NAS fees contribute to the literature by providing additional insight on the factors influencing companies’ NAS purchases. The results of this study suggest that a unique company-level characteristic, company reputation, is significantly associated with companies’ NAS purchase, and therefore has both policy and practical implications for the demand of NAS. This study also adds to the growing literature on the influence of company reputation on corporate behavior by documenting the important role that company reputation plays in the managerial decision-making process.

The role of maintenance in improving company's competitiveness and profitability

2014 ◽  
Vol 25 (4) ◽  
pp. 441-456 ◽  
Author(s):  
Damjan Maletič ◽  
Matjaž Maletič ◽  
Basim Al-Najjar ◽  
Boštjan Gomišček
Keyword(s):  
Gap Analysis ◽  
Research Problem ◽  
Maintenance Policy ◽  
Content Type ◽  
Potential Benefits ◽  
Points Of View ◽  
Potential Improvement ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the role of maintenance in improving company's competitiveness and profitability. In the first part the paper aims to discuss the potential improvement areas from the company perspective. Second part of this paper examines maintenance impact on company's business. Design/methodology/approach – An empirical case study was utilized aiming to provide an understanding of the role of maintenance in improving company's business. The empirical data for this study were collected from a Slovenian textile company. A gap analysis was used in order to address the research problem and to identify potential improvement areas. Findings – Based on the gap analysis, the results suggest that from respondents’ points of view, maintenance practices related to condition-based maintenance approach represent the highest opportunity for improvement. The most notable empirical results of the case study showed that around 3 per cent of additional profit could be generated at weaving machine, especially if all unplanned stoppages and loss of quality due to decrease in the productivity would be prevented. Practical implications – This paper demonstrates to managers the potential benefits of maintenance policy in terms of productivity, quality and profitability. In this regard, this paper builds on a premise that company can gain higher performance benefits using more effective maintenance policy. Originality/value – The proposed conceptual model contributes to the existing literature by showing the interactions between maintenance and company's competitiveness and profitability. Empirical findings of this study therefore, acknowledge maintenance's potential of increasing the overall profit. In addition this study advances prior studies by utilizing a gap analysis which is rare in this type of research.

Brewing success in Burundi’s coffee industry

2018 ◽  
Vol 34 (2) ◽  
pp. 27-29
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Content Type ◽  
Potential Benefits ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This review highlights the potential benefits of strategic chain investments to the coffee industry in Burundi, finding that the greater the investment, the better those in the industry perform. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Investigating the effects of consistent visual identity on social media

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harsandaldeep Kaur ◽  
Kanwal Roop Kaur
Keyword(s):  
Social Media ◽  
Online Marketing ◽  
Media Environment ◽  
Content Type ◽  
Visual Identity ◽  
Company Reputation ◽  
Social Media Platforms ◽  
Sphere Of Influence ◽  
The Impact ◽  
Practical Implications

Purpose Although the prominence of social media for companies is widely acknowledged, a close examination of the literature reveals a lack of empirical research pertaining to the effect of consistency specifically on social media. Therefore, the purpose of this paper is to fill the gap in social media communication concerning the effect of consistent visual identity on social media users. Design/methodology/approach The study executed an experiment 2 (corporate visual identity condition) × 2 (organization type) between subjects design to map the effects of consistent visual identity on social media users appreciation of the visual identity, attitude toward the company, reputation and intention to commit to a company on social media. Findings The results of the study indicated the significant effects of consistent visual identity on social media users over the inconsistent conditions of visual identity on all dependent variables. Furthermore, there were insignificant main effects of organization type on general judgment, credibility, distinctiveness and reputation of the company. Practical implications This study presents the effects of consistent visual identity on social media platforms. The research will help marketing academicians, graphic designers and social media practitioners in online marketing by using its practical implications to strategically positioning their corporate brand in a social media environment. Originality/value This study provides novel insights on the impact of consistency on social media users. This is the first study to determine the role of consistent visual identity in the social media environment. It thereby adds to the literature of visual identity by developing the sphere of influence of consistency and its effects toward the user’s attitude.

scholarly journals Knowledge capabilities in supply chain networks: a taxonomy

2020 ◽  
Vol 24 (3) ◽  
pp. 655-674
Author(s):  
Robert Ogulin ◽  
Gustavo Guzman ◽  
Subasinghage Maduka Nuwangi
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Research Process ◽  
Managerial Decision ◽  
Content Type ◽  
Supply Chain Networks ◽  
Different Types ◽  
The Relationship ◽  
Practical Implications ◽  
Two Bodies

Purpose This paper aims to develop a conceptual taxonomy for building requisite knowledge capabilities for different supply chain network (SCN) types. Specifically, it examines knowledge capabilities required for three types of SCNs: efficient, collaborative and agile SCNs. Design/methodology/approach This paper integrates two bodies of thought (i.e. knowledge management and organisational learning) and applies them to SCNs. An abductive research process is used to develop this conceptual taxonomy. Findings The conceptual taxonomy details three archetypical knowledge capabilities – exploitation, exploration and ambidextrous. Those knowledge capabilities are required for efficient, collaborative and agile SCNs, respectively. Research limitations/implications This paper is conceptual and theory-based. The next stages of the research seek to further strengthen the explanatory value of the taxonomy through empirical validation. Practical implications The taxonomy developed in this paper provides a valuable and pragmatic tool for managerial decision-making in the context of SCNs. Specifically, it provides a roadmap for practitioners since the study develops an understanding of the relationship between knowledge capabilities and types of SCNs. Originality/value This is one of the earliest studies that attempt to unearth requisite knowledge capabilities for different types of SCNs.

scholarly journals Is online fraud just fraud? Examining the efficacy of the digital divide

2019 ◽  
Vol 5 (2) ◽  
pp. 120-131 ◽  
Author(s):  
Cassandra Cross
Keyword(s):  
Digital Divide ◽  
Virtual Environments ◽  
Design Methodology ◽  
Government Funding ◽  
Content Type ◽  
Online Fraud ◽  
Perceived Benefit ◽  
Potential Benefits ◽  
The Media ◽  
Practical Implications

Purpose Fraud is not a new offence. However, the recent evolution and proliferation of technologies (predominantly the internet) has seen offenders increasingly use virtual environments to target and defraud victims worldwide. Several studies have examined the ways that fraud is perpetrated with a clear demarcation between terrestrial and cyber offences. However, with moves towards the notion of a “digital society” and recognition that technology is increasingly embedded across all aspects of our lives, it is important to consider if there is any advantage in categorising fraud against the type of environment it is perpetrated in. This paper aims to discuss these issues. Design/methodology/approach This paper examines the perceived utility of differentiating online and offline fraud offences. It is based upon the insights of thirty-one professionals who work within the “fraud justice network” across London, UK and Toronto, Canada. Findings It highlights both the realities faced by professionals in seeking to ether maintain or collapse such a differentiation in their everyday jobs and the potential benefits and challenges that result. Practical implications Overall, the paper argues that the majority of professionals did not feel a distinction was necessary and instead felt that an arbitrary divide was instead a hindrance to their activities. However, while not useful on a practical front, there was perceived benefit regarding government, funding and the media. The implications of this moving forward are considered. Originality/value This paper provides new insights into how fraud justice network professionals understand the distinction between fraud offences perpetrated across both online and offline environments.

scholarly journals Advisor gender and advice justification in advice taking

2019 ◽  
Vol 55 (1) ◽  
pp. 4-21
Author(s):  
Vinicius Farias Ribeiro ◽  
Adriana Victoria Garibaldi de Hilal ◽  
Marcos Gonçalves Avila
Keyword(s):  
Gender Stereotypes ◽  
Design Methodology ◽  
Research Field ◽  
Male Gender ◽  
Amazon Mechanical Turk ◽  
Managerial Decision ◽  
Content Type ◽  
Managerial Decisions ◽  
Advice Taking ◽  
Practical Implications

Purpose The purpose of this paper is to identify under what circumstances advisor gender and advice justification influence advice taking by managers. Design/methodology/approach The authors designed a quasirational managerial decision experiment with both analytic and intuitive cues. The design was a 2 × 2 between-subjects factorial, in which gender (male/female) and advice justification (intuitive/analytic) were crossed. The experiment involved two independent samples, taken from Amazon Mechanical Turk workers and Brazilian professionals. Findings Results suggest that, in general, analytic justification is more valued than intuitive justification. The findings also infer that depending on the advisees’ sample and providing that advice justification is analytic, quasirational scenarios seem to favor male advisors (MTurk sample) or both male and female advisors with “male values” (professional sample), as analysis is traditionally considered a “male value.” Practical implications Analytic justification will likely lead to more advice utilization in quasirational managerial situations, as it may act as a safeguard for the accuracy of the offered advice. Social implications The results might signal an ongoing, but slow, process leading to the mitigation of gender stereotypes, considering that the male gender stereotype was active in the MTurk sample, but not in the professional one. Originality/value This study contributes to the advice-taking research field by showing the interplay between advisor gender and advice justification in a quasirational managerial decision setting with both analytic and intuitive cues. In advice-taking literature, observations are usually collected from students. However, as this study focused on managerial decisions, the authors collected independent samples from MTurk workers and Brazilian professionals.

SOX 404(b) exemption effects on auditor changes

2016 ◽  
Vol 31 (4/5) ◽  
pp. 387-402 ◽  
Author(s):  
Benjamin W. Hoffman ◽  
Albert L. Nagy
Keyword(s):  
Positive Association ◽  
Negative Effects ◽  
Significant Positive Association ◽  
Public Companies ◽  
Content Type ◽  
Sarbanes Oxley ◽  
Sensitivity Tests ◽  
Prior Literature ◽  
Pros And Cons ◽  
Practical Implications

Purpose This paper aims to investigate whether the Sarbanes-Oxley Act: Section 404(b) exemption caused an increase in auditor changes due to changes in expectations for both auditors and their clients. Design/methodology/approach This paper predicts that this exemption caused a significant amount of auditor changes post-exemption, due to a change in expected future economic rents (audit scope demands) for auditors (clients). Logistic regression analysis is used to examine whether auditor changes increased for non-accelerated filers (public companies with less than $75 million in public float), who were affected by this exemption, compared to auditor changes for accelerated filers (public companies with greater than $75 million in public float), who were not affected by this exemption. Findings The results show a significant positive association between the exemption and auditor dismissals for non-accelerated filers compared to that of accelerated filers. This finding is robust when sensitivity tests are used. Practical implications Prior literature finds that an increase in auditor changes can have various positive and negative effects on the affected companies. Thus, investors will be interested in the results of this paper when making their investment decisions with regard to non-accelerated filers. Social implications The results of this paper will aid policymakers as they consider the pros and cons of this exemption, as it pertains to the affected companies. Originality/value This paper is the first to study the effects of this exemption on auditor turnover for the affected companies.

Probing organizational efficiency

2014 ◽  
Vol 22 (2) ◽  
pp. 149-160 ◽  
Author(s):  
Necmi Kemal Avkiran
Keyword(s):  
Operations Research ◽  
Cultural Norms ◽  
Data Envelopment ◽  
Managerial Decision ◽  
Content Type ◽  
Multiple Variables ◽  
Overall Performance ◽  
Alignment Model ◽  
Hierarchical Nature ◽  
Practical Implications

Purpose – In investigating the performance of multidivisional organizations, ability to account for each division's importance and contribution enhances the deftness of resource allocation and targeting desired outcomes. With this motivation, the author aims to introduce network data envelopment analysis (NDEA) from operations research in this conceptual article and discuss how two articles from this journal can be extended using this approach. Design/methodology/approach – NDEA was first developed to deliver a more in-depth understanding of underlying sources of operational inefficiency. Thus, NDEA can be viewed as a peer benchmarking method useful in comparing performance of organizations and identifying divisional inefficiencies that may detract from overall performance. NDEA's ability to capture interactions among multiple variables in an objective manner based on actual observed data rather than sample averages is one of its key advantages. Findings – The author discusses how NDEA can be applied in organisational analysis by examining two articles from this journal. Briefly commenting on one of the cases here, the author shows that a network can be defined as the interacting divisions of cultural norms and structural forms. The potential improvements (i.e. horizontal re-alignment) indicated by NDEA can guide management on the extent organisational alignment that could be changed in reaching strategic aims. The author's theoretical model is conducive to assessing the amount and direction of change from the proposed alignment model in a multi-criteria framework – characteristics embraced by NDEA. Practical implications – Given the hierarchical nature of organizations where employees are nested in work groups or teams, groups nested in departments or divisions, and divisions nested in organizations, application of NDEA at various levels of analysis is feasible. Originality/value – NDEA's ability to account for each division's importance or assign desired weights in what-if analyses adds to flexibility in managerial decision-making regarding allocation of resources, or re-alignment of processes and targeting of desired outcomes. Such a method that does not assume independence among multiple performance measures provides additional assurance to those concerned about shortcomings of additive scales in complex organizations.

The effects of consumer perception of volume discount benefits on intention to purchase grocery products

2017 ◽  
Vol 29 (5) ◽  
pp. 1017-1035 ◽  
Author(s):  
Mohammad Iranmanesh ◽  
KrishnaSwamy Jayaraman ◽  
Suhaiza Zailani ◽  
Seyed Mohammadreza Ghadiri
Keyword(s):  
Design Methodology ◽  
Common Type ◽  
Sales Promotion ◽  
Consumer Perception ◽  
Content Type ◽  
Intention To Purchase ◽  
Potential Benefits ◽  
Grocery Products ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the effects of consumers’ perceptions towards volume discount (VD) benefits on their intention to purchase grocery products under this scheme using deal proneness as a moderator. Design/methodology/approach Data were gathered through a survey of 583 Malaysian consumers, and were analysed using the partial least squares technique. Findings The results showed that perceived savings, self-expression value, and convenience positively affected consumers’ intention to purchase grocery products under VDs. Deal proneness negatively moderated the relationship between perceived quality, innovation, and consumers’ intention to purchase under VDs. Practical implications The findings of the study will help retailers to understand the effects of consumers’ perceptions of VD benefits on their intention to purchase products under VDs, thereby allowing retailers to promote products under VDs more effectively. Originality/value Although the VD is a common type of sales promotion, this topic is rarely explored. This study thus contributes to the advancement of knowledge by determining the effects of the potential benefits of VDs on consumers’ intention to purchase.

scholarly journals Concerned protesters: from compassion to retaliation

2017 ◽  
Vol 51 (5/6) ◽  
pp. 983-1010 ◽  
Author(s):  
Paolo Antonetti ◽  
Stan Maklan
Keyword(s):  
Design Methodology ◽  
Potential Role ◽  
Unique Role ◽  
Content Type ◽  
Corporate Behavior ◽  
Stakeholder Relationships ◽  
Present Information ◽  
Key Drivers ◽  
Practical Implications

Purpose The purpose of the study is to outline the unique role of compassion in reactions to cases of irresponsible corporate behavior that present information about victims of these events. In this study, four antecedents of compassion for the victims of irresponsibility are presented, and a model that explains the consequences of this emotion is tested empirically. Design/methodology/approach Two studies test the research hypotheses using a mix of experimental and survey research. The effects are tested both in laboratory conditions, where consumers assess a fictitious case of corporate irresponsibility, and through a test of reactions to real online campaigns. Findings Compassion is one of the drivers of consumers’ anger at the culprit, playing an indirect role in decisions to retaliate against perpetrators. Four key drivers of compassion are identified in the research: the perceived suffering of the victims, the perceived similarity of the victims to the observer, victims’ derogation and the vividness of the description of the victims. Practical implications The study offers insights both for campaigners wishing to instigate boycotts and organizations managing complex stakeholder relationships following a crisis. Insights on the role of compassion and its antecedents lead to more effective communications able to heighten or dampen this emotion. Originality/value Existing research offers contrasting views on the potential role of compassion in reactions to injustices. This study presents a novel account that clarifies previous findings and extends our knowledge of causes and consequences of compassion.

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