Do females in audit firm governance affect firm performance? Findings from Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murat Ocak
Keyword(s):  
Firm Performance ◽  
Least Squares ◽  
Design Methodology ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Audit Firm ◽  
Hierarchical Levels ◽  
And Gender ◽  
Practical Implications

Purpose This study aims to contribute to the literature by offering a different sector and emphasising the importance of females in audit firm (AF) governance on audit firm performance (AFP). Design/methodology/approach Ordinary least squares (OLS) and instrument variables regression (IVREG) with two-stage least squares are used to test the paper’s hypotheses. Findings Both OLS and IVREG estimation results show that both the proportion of females and gender diversity at board and owner levels and the total number of shares of female owners seem to enhance the performance of AFs. Practical implications These results may be important for policymakers and regulators to set a quota for women’s representation on AF governance or decide arrangements for women in AFs as in the regulations for the high hierarchical levels of other corporate firms. Originality/value This paper extends the current literature in the context of AFs in Turkey, positing that females in AF governance might enhance performance to a great extent.

Board gender diversity, board compensation and firm performance. Evidence from Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Least Squares ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Firm Financial Performance ◽  
Board Compensation ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to analyze the relationship between board gender diversity, board compensation and firm financial performance in the developing country, Jordan, whose cultural, economic and institutional context is very different from most previously analyzed countries’ context. Design/methodology/approach Ordinary least squares regression was used to examine the association between board gender diversity, board compensation and firm financial performance in a sample of 510 firm-year observations during the years 2009–2018. Generalized least squares estimation method was used to confirm that the results are robust. Findings The author provides new evidence that board gender diversity does not contribute to firm financial performance. The author also detects that there is a positive relationship between board compensation on firm financial performance. Originality/value This paper examines the under-researched relationship between board gender diversity, board compensation and firm financial performance. In so doing, the author tries to provide new insights into this relationship within the developing context, the case of Jordan that has a different environment from that of advanced markets. To the best of the researcher’s knowledge, this is almost certainly the first research to investigate the impact of board gender diversity and board compensation on firm financial performance in the Jordanian market. This manuscript is expected to be used as a reference by the regulators and policymakers – both in Jordan and other countries with a similar institutional, cultural setting – to provide a deep understanding of the impact of board gender diversity and board compensation on the firm performance.

Auditors’ response to corporate fraud: evidence from audit fees and auditor turnover

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eugenia Yujin Lee ◽  
Wonsuk Ha
Keyword(s):  
Least Squares ◽  
Design Methodology ◽  
Audit Fees ◽  
Ordinary Least Squares ◽  
Least Squares Estimation ◽  
Regulatory Requirements ◽  
Audit Pricing ◽  
Corporate Fraud ◽  
Content Type ◽  
Practical Implications

Purpose This study aims to examine how auditors respond to the revelation of clients’ corporate fraud. Design/methodology/approach This study uses an ordinary least squares estimation to examine how audit fees and audit turnover change after the revelation of corporate fraud. Findings After a client discloses fraudulent activities, average audit fees significantly increase due to an increase in audit hours, rather than in audit premiums. Both new and continuing auditors increase audit hours for fraud firms, but only new auditors charge higher audit fees for the increased effort. In addition, when auditors are designated by regulators following the revelation of fraud, audit fees and premiums increase, but audit hours do not. Finally, auditor turnover becomes more frequent after the revelation of fraud. Overall, the findings suggest that auditors update their assessment of audit risks after fraud revelation and, thus, adjust their audit pricing and client acceptance decisions. Practical implications The study provides regulators and audit practitioners with insights into how to audit contract characteristics and regulatory intervention (auditor designations) affect auditors’ response to increased audit risks. Originality/value The study contributes to the auditing literature and practice by providing evidence on how auditors respond to the revelation of fraudulent activities and how their response depends on their ability to determine audit fees. Moreover, we provide novel evidence that audit contracting characteristics and regulatory requirements result in different responses of auditors toward changes in audit risks.

CFO gender in curbing CEO dominance on overpriced acquisition premiums

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amanda Grossman ◽  
Christine Naaman ◽  
Najib Sahyoun
Keyword(s):  
Design Methodology ◽  
Gender Diversity ◽  
Chief Executive ◽  
Ordinary Least Squares ◽  
Chief Financial Officer ◽  
Business Organizations ◽  
Female Executives ◽  
Content Type ◽  
Acquisition Premium ◽  
Practical Implications

PurposeThe purpose of this study is to evaluate the tempering effect of the presence of a female chief financial officer (CFO) on potentially dominant chief executive officer (CEO) behavior expressed through the overvaluing of acquisition premiums.Design/methodology/approachThis study used Securities Data Corporation (SDC) database data over an eight-year period to analyze the relationships between CEO dominance and the acquisition premiums paid in an acquisition deal. The study also analyzes the effect of CFO gender in curbing CEO dominance in the acquisition deals. The authors employ clustered standard errors ordinary least squares (OLS) regression analysis along with robustness testing, which supports the validity of our conclusions.FindingsThe authors expect and find that as CEO dominance rises, so does the acquisition premium; however, the presence of a female CFO in such situations significantly reduces the overpayment of the acquisition premium.Practical implicationsThe study findings advocate for organizational change in the form of an increased presence of female CFOs within business organizations.Originality/valueThis study contributes to the accounting literature by timely exploiting a rising trend in which female executives are expected to become more prolific. The authors’ research indicates that their entrenchment into business organizations, thereby promoting gender diversity, produces beneficial outcomes for those organizations. It also capitalizes on the specific attributes of the CEO–CFO relationship, which lends itself to particular effectiveness in the hands of female CFOs.

scholarly journals The importance of specificity in occupation‐based social classifications

2008 ◽  
Vol 28 (5/6) ◽  
pp. 179-192 ◽  
Author(s):  
Paul S. Lambert ◽  
Koon Leai Larry Tan ◽  
Kenneth Prandy ◽  
Vernon Gayle ◽  
Manfred Max Bergman
Keyword(s):  
Design Methodology ◽  
Content Type ◽  
Service Grid ◽  
Theoretical Perspectives ◽  
Time Period ◽  
Technological Developments ◽  
Specific Occupation ◽  
Data Environment ◽  
And Gender ◽  
Practical Implications

PurposeThis paper aims to present reasons why social classifications which use occupations should seek to adopt “specific” approaches which are tailored to the country, time period and gender of the subjects under study.Design/methodology/approachThe relative motivations for adopting a specific approach to social classifications are discussed and theoretical perspectives on specificity and empirical evidence on the contribution of specific approaches are reviewed. Also the practical costs of implementing specific social classifications are evaluated, and the authors' development of the “GEODE” data service (grid‐enabled occupational data environment), which seeks to assist this process, is discussed.FindingsSpecific approaches make a non‐trivial difference to the conclusions drawn from analyses of occupation‐based social classifications. It is argued that the GEODE service has reduced the practical challenges of implementing specific measures.Research limitations/implicationsThere remain conceptual and pragmatic challenges in working with specific occupation‐based social classifications. Non‐specific (“universal”) measures are adequate for many purposes.Practical implicationsThe paper argues that there are few excuses for ignoring specific occupation‐based social classifications.Originality/valueThe paper demonstrates that recent technological developments have shifted the balance in the long‐standing debate between universal and specific approaches to occupation‐based social classifications.

Board gender diversity: performance and risk of Brazilian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Mastella ◽  
Daniel Vancin ◽  
Marcelo Perlin ◽  
Guilherme Kirch
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Firm Risk ◽  
Content Type ◽  
Study Approach ◽  
Female Presence ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to intend to check if female board representation affects performance and risk and to analyse the evolution of the demographic aspects of the presence of women on boards in Brazil. Design/methodology/approach The authors used a sample of 150 Brazilian publicly traded companies from 2010–2018, with different measures of firm performance, firm risk and women’s presence on the board. The study approach is based on a set of ordinary least squares, quantile and panel data regressions. Findings The presence of women on the board has a positive effect on all of our accounting and market performance measures. However, the result of the impact on risk is not conclusive. The study also found that the number of females on the board has a more significant effect at the lower levels of firm performance measured by return on equity, but at the higher levels when measured by Tobin’s Q. Regarding return on assets, the more significant effect happened on the extremes of the performance distribution. The study findings point that market investors place more value in female presence on the board than in director positions. Originality/value By estimating the impact of women’s presence on the boards of directors in firm performance and risk, this study aimed to verify this impact in different aspects of the company. In addition, the authors did so in a sample with many years, making it possible to evaluate the historical evolution of the feminine presence in the boards of administration as well as in the groups of directors, assisting Brazilian legislators with new evidence about the possible impacts of Draft Law 7179/2017.

Investigation of communication in budgetary accountability routines

2020 ◽  
Vol 17 (3) ◽  
pp. 321-344
Author(s):  
Jean-Claude Mutiganda ◽  
Giuseppe Grossi ◽  
Lars Hassel
Keyword(s):  
Design Methodology ◽  
Communicative Action ◽  
Mutual Understanding ◽  
Content Type ◽  
Theoretical Contribution ◽  
Hierarchical Levels ◽  
Communicative Process ◽  
Practical Implications ◽  
Repeated Contact

Purpose This paper aims to analyse the role of communication in shaping the mechanisms of accountability routines. Design/methodology/approach Conceptual elements of the theory of communicative action and the literature on routines were used to conduct a field study in two hospital districts in Finland, from 2009 to 2015. Data were based on interviews, document analysis, observed meetings and repeated contact with key informants. Findings The findings explain how accountability routines take different forms – weak or strong – in different organisations and at different hierarchical levels. Differences depend on the generative structures and mechanisms of the communicative process – relational and normative – used to give and ask information to and from organisation members involved in accountability relationships. An explorative finding is that discourse-based communication plays an important role in bridging the gap between weak and strong accountability routines. The main theoretical contribution is to conceptualise and show the role of communicative rationalities in shaping the mechanisms of accountability routines. Practical implications The implication for practitioners and policymakers is to show to what extent the organisation policies and communicative rationalities used in accountability have potential to improve or not to improve the practices of accountability routines. Mutual understanding, motivation and capacity of organisation members to do as expected and agreed upon without pressure improve accountability routines. Originality/value The value of this study is to explain how accountability routines take different forms in practice (weak or strong) in different organisations and at different hierarchical levels, depending on the generative structures of the communicative process used in practicing accountability routines.

Increasing the impact of SHRM on organizational performance

2019 ◽  
Vol 27 (5) ◽  
pp. 7-8
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Pertinent Information ◽  
The Impact ◽  
Practical Implications ◽  
Overall Effectiveness

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 The role of HRM is increasingly being viewed in strategic as well as functional terms. The impact of SHRM on firm performance is also determined by factors in its internal and external contexts. Balance between these contextual dimensions and input from various actors in the organization can help increase the overall effectiveness of a SHRM system. Originality/value The briefing saves busy executives 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.

New trends in intellectual capital reporting

2018 ◽  
Vol 19 (4) ◽  
pp. 814-835 ◽  
Author(s):  
Francesca Manes Rossi ◽  
Giuseppe Nicolò ◽  
Paolo Tartaglia Polcini
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Information Needs ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
University System ◽  
Content Type ◽  
Explanatory Factors ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to explore a new way to disclose intellectual capital (IC) in universities through their websites. Going beyond traditional tools used for intellectual capital disclosure (ICD), this study aims at identifying possible determinants of ICD via the web. Design/methodology/approach This paper analyses the institutional websites of a sample of Italian universities adapting the theoretical framework developed by Low et al. (2015) to the peculiarities of the Italian university system. Moreover, the relationship between certain explanatory factors identified in previous research and the extent of online ICD represented by two disclosure indexes was tested through an ordinary least squares regression model. Findings The analysis reveals the extensive use of ICD via websites, especially regarding human and internal capital, while the disclosure of external capital through this means is still limited. Internationality and online visibility both positively affect the extent of a university’s ICD. Research limitations/implications The paper represents the first study investigating online ICD and its determinants in universities, contributing new knowledge to help answer the how and what of the matter. Practical implications The results can serve as encouragement to university managers to enhance online ICD to meet the information needs of a wider audience. Originality/value This is the first study to provide evidence about online ICD in universities and to reveal some of the possible determinants to improve this disclosure.

How social influence and personality affect users’ social network fatigue and discontinuance behavior

2018 ◽  
Vol 70 (4) ◽  
pp. 344-366 ◽  
Author(s):  
Sajad Shokouhyar ◽  
Seyed Hossein Siadat ◽  
Mojde Khazeni Razavi
Keyword(s):  
Social Network ◽  
Social Influence ◽  
Least Squares ◽  
Design Methodology ◽  
Least Squares Method ◽  
Social Network Sites ◽  
Research Model ◽  
Content Type ◽  
Partial Least Squares Method ◽  
Practical Implications

Purpose The purpose of this paper is to focus on understanding how social influence and personality of individuals differentiate between users’ social network fatigue and discontinuance behavior. Furthermore, the most common discontinuance behavior among users was investigated. Design/methodology/approach The research model was tested with the data from 163 Instagram users based on online and offline surveys. The partial least squares method was used to test the proposed hypotheses of this study. Findings The results indicate that social influence affects users’ discontinuance behavior and social network fatigue. Social network fatigue is greater in users with higher reported social influence compared to those with a lower one. Moreover, in response to social network fatigue, users prefer to keep their activities under control instead of switching to alternative social network sites (SNSs) or a short break in social network activities. Practical implications By achieving a better understanding of users’ feeling and behaviors, social network providers may codify their strategies more efficiently. Originality/value The study is novel in exploring users’ SNS fatigue and their discontinuance behavior by integrating social influence and personality. The authors defined a new concept of effect of social influence on social network fatigue. Additionally, the authors examined which discontinuance behaviors in individuals were more prevalent.

Accrual reliability, earnings persistence, and stock prices: revisited

2015 ◽  
Vol 30 (1) ◽  
pp. 22-48
Author(s):  
R. Mithu Dey ◽  
Lucy Lim
Keyword(s):  
Least Squares ◽  
Stock Prices ◽  
Stock Return ◽  
Design Methodology ◽  
Ordinary Least Squares ◽  
Original Study ◽  
Earnings Persistence ◽  
Content Type ◽  
Total Accrual

Purpose – The purpose of this paper is to replicate Richardson et al.’s (2005) study on how accrual components’ reliability affects earnings persistence and whether investors anticipate the lower earnings persistence through stock return. In this study, the authors use more recent data to examine whether the previous results still hold. Design/methodology/approach – The authors run the analysis using Richardson et al.’s (2005) design of ordinary least squares and report the results using Fama and Macbeth’s (1973) procedures. Findings – The results corroborate Richardson et al.’s (2005) conclusions that lower reliability of total accrual (accrual components) leads to lower earnings persistence. Originality/value – This study replicates Richardson et al. (2005) using more recent US data. The results in this paper confirm the general conclusion in the original study: less reliable accruals lead to lower earnings persistence.

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