Mandatory partner rotation, audit timeliness and audit pricing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masoud Azizkhani ◽  
Sarowar Hossain ◽  
Alicia Jiang ◽  
Wenjing Yap
Keyword(s):  
Design Methodology ◽  
Audit Fees ◽  
Costs And Benefits ◽  
Audit Pricing ◽  
Ongoing Debate ◽  
Content Type ◽  
Simultaneous Approach ◽  
Audit Partner Rotation ◽  
Shed Light ◽  
Over Time

Purpose The purpose of this study is to provide further evidence on the ongoing debate on the costs and benefits of mandatory audit partner rotation (MPR). Specifically, this study examines how MPR simultaneously affects audit reporting lag (ARL) and audit fees (AFs). Design/methodology/approach A simultaneous approach was adopted to further shed light on the findings currently documented by this line of research. Findings Using Australian data, it was found that MPRs increase AFs but do not affect ARL simultaneously in the year of MPRs. It was also found that the departing audit partners do not charge higher fees or delay the completion of the audits in the final year before their departure and that neither AFs nor ARL changes significantly for the second round of MPRs. Originality/value To the best of the authors’ knowledge, no prior study on MPR has examined the issue using a simultaneous approach although failure to consider the simultaneous effect of interrelated variables may lead to estimation biases and problems of parameter identification. The results herein provide further evidence that the clients do not bear both costs of paying higher AFs and having the delayed audits and that the costs associated with MPRs do not occur earlier and the costs associated with MPRs may dissipate over time.

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.

Performing intersectional identity work over time: the historic case of Viola Turner

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madison Portie-Williamson ◽  
David R. Marshall ◽  
Milorad M. Novicevic ◽  
Albert J. Mills ◽  
Caleb W. Lugar
Keyword(s):  
Design Methodology ◽  
Social Contexts ◽  
Identity Work ◽  
Power Relationships ◽  
Moral Foundations ◽  
Analysis Software ◽  
Content Type ◽  
Intersecting Identities ◽  
Shed Light ◽  
Over Time

Purpose This study aims to analyze the exemplary historic case of Ms Viola Turner – an African-American insurance executive in the early 1900s to gain insights into how individuals negotiate the tension between intersecting identities and moral foundational values over time. Design/methodology/approach This study uses a mixed research design and a genealogical-pragmatic approach to analyze this exemplary case. This study uses computer-aided textual analysis software to analyze interviews conducted with Ms Turner, generating quantitative insights. This study qualitatively codes the interviews to aid in establishing the behavioral patterns across Ms Turner’s lifespan. Findings This study found that Ms Turner altered her underlying configurations of moral foundations to better align with her intersecting identities. This study also revealed cross-level interactions of intersecting identities, life stages and social contexts. Individuals manage and cope with power imbalances through these identity-value alignments. Originality/value The findings shed light on how intersectional history contributes to understanding the ways in which individuals deal with power relationships embedded in intersecting identities over time.

scholarly journals What do we know about the dividend puzzle? – A literature survey

2019 ◽  
Vol 15 (2) ◽  
pp. 205-235 ◽  
Author(s):  
Basil Al-Najjar ◽  
Erhan Kilincarslan
Keyword(s):  
Emerging Markets ◽  
Design Methodology ◽  
Dividend Policy ◽  
Empirical Studies ◽  
Theory And Practice ◽  
Ongoing Debate ◽  
Content Type ◽  
Comprehensive Survey ◽  
The Relationship ◽  
Shed Light

Purpose The purpose of this paper is to shed light on the ongoing debate of dividend policy, which is considered one of the most controversial topics in corporate finance literature. Design/methodology/approach The paper provides a survey of literature; it, first, outlines the main theoretical arguments of dividend policy and then critically discusses the most important and influential previous empirical studies in the dividend literature. Findings The analysis of literature review detects that no general consensus has yet been reached after many decades of investigation, despite extensive debate and countless research. Consequently, the main motivation for paying dividends is still unsolved and thus remains as a puzzle. In addition, there is no doubt that carrying the dividend debate into the context of emerging markets attaches more pieces to this puzzle. Originality/value This paper offers an updated and more comprehensive survey of literature by examining the relationship between theory and practice from both developed and emerging markets.

Differences in audit pricing between voluntary and mandatory audits

2018 ◽  
Vol 31 (2) ◽  
pp. 336-359 ◽  
Author(s):  
Juan L. Gandía ◽  
David Huguet
Keyword(s):  
Preliminary Analysis ◽  
Design Methodology ◽  
Small And Medium Enterprises ◽  
Audit Fees ◽  
Audit Pricing ◽  
Public And Private ◽  
Content Type ◽  
Middle Tier ◽  
Big 4 ◽  
Medium Enterprises

PurposeDespite the extensive research on the determinants of audit pricing in both public and private settings, there is a lack of research about the differences in audit fees between voluntary audits and mandatory audits. The purpose of this paper is to address this gap.Design/methodology/approachFirst, a theoretical framework is developed to justify differences in audit pricing between voluntary and mandatory audits. Next, using a sample of Spanish private small and medium enterprises (SMEs) running from 2009 to 2014, the authors empirically test whether the fees charged for voluntary audits differ from those charged for mandatory ones. The authors also examine whether the premium observed among large auditors is persistent in the SME setting, and whether this premium differs depending on whether the audits are voluntary or mandatory.FindingsAlthough a preliminary analysis does not report significant differences in pricing between voluntary and mandatory audits, additional analyses using samples restricted by company size show that voluntary audits are charged with a premium. The authors observe a premium related to large auditors, and find no significant differences in the audit pricing of Big 4 auditors depending on the mandatory/voluntary nature of the audit, but the premium associated with Middle-Tier auditors disappears in the voluntary setting.Originality/valueThis paper contributes to the previous literature by introducing the examination of differences in audit pricing between voluntary and mandatory audits. As far as the authors know, this is the first study to examine the differences in audit pricing between voluntary and mandatory audits. It also elaborates on studies on audit pricing in SMEs.

The dynamics of regional and global expansion

2015 ◽  
Vol 23 (4) ◽  
pp. 306-327 ◽  
Author(s):  
Christian Geisler Asmussen ◽  
Bo Bernhard Nielsen ◽  
Tom Osegowitsch ◽  
Andre Sammartino
Keyword(s):  
Design Methodology ◽  
Global Market ◽  
Market Penetration ◽  
Content Type ◽  
Global Expansion ◽  
Rates Of Change ◽  
Global Space ◽  
The Impact ◽  
The Relationship ◽  
Over Time

Purpose – The purpose of this paper is to model and test the dynamics of home-regional and global penetration by multi-national enterprises (MNEs). Design/methodology/approach – Drawing on international business (IB) theory, the authors model MNEs adjusting their home-regional and global market presence over time. The authors test the resulting hypotheses using sales data from a sample of 220 of the world’s largest MNEs over the period 1995-2005. The authors focus specifically on the relationship between levels of market penetration inside and outside the home region and rates of change in each domain. Findings – The authors demonstrate that MNEs do penetrate both home-regional and global markets, often simultaneously, and that penetration levels often oscillate within an MNE over time. The authors show firms’ rates of regional and global expansion to be affected by their existing regional and global penetration, as well as their interplay. Finally, the authors identify differences in the steady states at which firms stabilize their penetration levels in the home-regional and the global space. The findings broadly confirm the MNE as an interdependent portfolio with important regional demarcations. Originality/value – The authors identify complex interdependencies between home-regional and global penetration and growth, paving the way for further studies of the impact of regions on MNE expansion.

Changes in the contents of corporate codes of ethics: an institutional interpretation

2015 ◽  
Vol 27 (4) ◽  
pp. 369-388 ◽  
Author(s):  
Jang B. Singh
Keyword(s):  
Design Methodology ◽  
Management Practices ◽  
A Priori ◽  
Codes Of Ethics ◽  
Legal Authority ◽  
Valuable Contribution ◽  
Content Type ◽  
Innovative Management ◽  
Study Population ◽  
Over Time

Purpose – The purpose of this paper was to examine changes in the contents of Canadian corporate codes of ethics over a period of two decades from an institutionalization perspective. Design/methodology/approach – The paper tracks changes in the contents of the codes of large Canadian corporations longitudinally by analyzing their contents at two points over two decades, in 1992 and 2012. In particular, the paper tests three hypotheses related to the institutionalization of codes. Findings – It was found that the codes have become more prescriptive, they are more concerned with social responsibility and are more likely to identify their moral and legal authority. Overall, the findings support an institutional interpretation of the observed changes. Research limitations/implications – While large corporations are critical in establishing new and innovative management practices, their selection as the study population limits the generalizabilty of the findings. Another limitation of this paper is that it used an a priori determined set of items to analyze the contents of the codes and while this was needed to facilitate the comparison across time, it also meant that some important items were not clearly identified. Originality/value – Codes of ethics are the foundation of ethics programs in corporations and their contents could be critical in the development of a culture of ethics in corporations. This paper makes a valuable contribution to research on business ethics by analyzing the codes of ethics of the largest corporations in Canada at two points over two decades. The need to track changes in corporate codes of ethics over time has been advocated by several researchers, but longitudinal studies in this area are rare.

“It's the work climate that keeps me here”: the interplay between the HRM process and emergent factors in the construction of employee experiences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maarit Laiho ◽  
Essi Saru ◽  
Hannele Seeck
Keyword(s):  
High Performance ◽  
Design Methodology ◽  
Qualitative Interview ◽  
Employee Perceptions ◽  
Content Type ◽  
Systematic Data ◽  
High Performance Work System ◽  
Employee Experience ◽  
The Relationship ◽  
Shed Light

PurposeThe purpose of this paper is to explore the interplay between human resource management (HRM) and emergent factors in constructing a strong HRM climate. Specifically, the paper aims to shed light on how employee perceptions of the HRM process and emergent factors together construct a strong HRM climate, i.e. employees' shared perceptions of HRM.Design/methodology/approachThe paper uses qualitative interview data (managers and employees) from two organisations operating in Finland. The data are analysed based on a systematic data analysis and gives an illustration of the interplay between high-performance work system and the emergent factors.FindingsThe findings illustrate the three types of interplay between HPWS and emergent factors – supplementation, substitution and suffocation – that construct employee experience.Originality/valueThe paper extends earlier discussions on the relationship between HRM and employee experience by empirically examining how the HRM process – together with emergent factors – constructs a strong HRM climate. The present study contributes to further theorising and increasing our understanding of the creation of employee experience.

Predictors of e-publishing adoption in environments of uncertainty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emmanuel Chukwunonye Ifeduba
Keyword(s):  
Copyright Protection ◽  
Predictive Value ◽  
Design Methodology ◽  
Publishing Industry ◽  
Innovation Adoption ◽  
Digital Publishing ◽  
Empirical Examination ◽  
Content Type ◽  
Education Industry ◽  
Shed Light

Purpose Many developing environments are characterised by uncertainties and research on how these uncertainties impact development in different industries is on-going. However, there is hardly any empirical examination of how this phenomenon impacts innovation adoption in the publishing industry, notwithstanding that the education industry largely depends on publishing. This study aims to interrogate this phenomenon with a view to describing clearly the factors that influence e-publishing innovation adoption in environments of uncertainty. Design/methodology/approach E-publishing data were collected from 79 websites whereas 109 firms filled out a questionnaire both online and offline. Four interviews were conducted and data were analysed using the SPSS to compute frequencies, percentages and correlates of digital publishing innovation adoption. Findings Book piracy and curriculum uncertainty were found to play greater influential roles in the adoption of e-publishing; and though they both correlated positively with e-publishing adoption, only book piracy has a significant predictive value in the adoption of e-publishing. Originality/value The results of this study shed light on the predictors of digital publishing adoption and should help interested publishers and scholars in environments of uncertainty to understand why efforts should be intensified to pursue copyright protection and enforcement.

Dynamics of convergence behaviour in social media crisis communication – a complexity perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Milad Mirbabaie ◽  
Stefan Stieglitz ◽  
Felix Brünker
Keyword(s):  
Social Media ◽  
Emergency Management ◽  
Crisis Communication ◽  
Design Methodology ◽  
Content Type ◽  
The Public ◽  
Analysis Techniques ◽  
Twitter Data ◽  
Convergence Behaviour ◽  
Over Time

PurposeThe purpose of this study is to investigate communication on Twitter during two unpredicted crises (the Manchester bombings and the Munich shooting) and one natural disaster (Hurricane Harvey). The study contributes to understanding the dynamics of convergence behaviour archetypes during crises.Design/methodology/approachThe authors collected Twitter data and analysed approximately 7.5 million relevant cases. The communication was examined using social network analysis techniques and manual content analysis to identify convergence behaviour archetypes (CBAs). The dynamics and development of CBAs over time in crisis communication were also investigated.FindingsThe results revealed the dynamics of influential CBAs emerging in specific stages of a crisis situation. The authors derived a conceptual visualisation of convergence behaviour in social media crisis communication and introduced the terms hidden and visible network-layer to further understanding of the complexity of crisis communication.Research limitations/implicationsThe results emphasise the importance of well-prepared emergency management agencies and support the following recommendations: (1) continuous and (2) transparent communication during the crisis event as well as (3) informing the public about central information distributors from the start of the crisis are vital.Originality/valueThe study uncovered the dynamics of crisis-affected behaviour on social media during three cases. It provides a novel perspective that broadens our understanding of complex crisis communication on social media and contributes to existing knowledge of the complexity of crisis communication as well as convergence behaviour.

What challenges and opportunities will lead to success?

2018 ◽  
Vol 10 (6) ◽  
pp. 631-634 ◽  
Author(s):  
Jorge Costa ◽  
Mónica Montenegro ◽  
João Gomes
Keyword(s):  
International Economic ◽  
Developing Countries ◽  
Content Analysis ◽  
Design Methodology ◽  
Theme Issue ◽  
Content Type ◽  
Income Sources ◽  
Tourist Flows ◽  
Challenges And Opportunities ◽  
Shed Light

Purpose This paper aims to introduce the papers in this issue and explain the pertinence of the strategic question. Design/methodology/approach A brief context for the strategic question is provided, as well as the issue alignment and a content analysis of the papers selected. Findings From the analysis of the papers selected for this theme issue, it becomes clear that tourism has become one of the major players in international economic, social and technological sectors, while representing one of the main income sources for developed and developing countries. Originality/value The papers selected for this issue shed light on an important problem: increasing tourist flows and overtourism at some world top destinations.

Sign in / Sign up

Export Citation Format

Share Document