Targeting Corporate Political Strategy: Theory and Evidence from the U.S. Accounting Industry

2007 ◽  
Vol 9 (2) ◽  
pp. 1-31 ◽  
Author(s):  
Richard G. Vanden Bergh ◽  
Guy L.F. Holburn
Keyword(s):  
Empirical Support ◽  
Auditor Independence ◽  
Science Literature ◽  
Political Strategy ◽  
Political Campaign ◽  
Accounting Firms ◽  
Political Environments ◽  
Policy Making Process ◽  
Different Types ◽  
Corporate Political Strategy

By analyzing the interaction between a business firm and multiple government institutions (including a regulatory agency, an executive and a bicameral legislature), we develop predictions about how firms target their political strategies at different branches of government when seeking more favorable public policies. The core of our argument is that firms will target their resources at the institution that is ‘pivotal’ in the policy-making process. We develop a simple framework, drawing on the political science literature, which identifies pivotal institutions in different types of political environments. We find empirical support for our thesis in an analysis of how U.S. accounting firms shifted their political campaign contributions between the House and Senate in response to the threat of new regulations governing auditor independence during the 1990s.

Political Strategies of subsidiaries of multinational Enterprises

2020 ◽  
pp. 311-337
Author(s):  
Maria A. De Villa
Keyword(s):  
Host Country ◽  
Multinational Enterprises ◽  
Future Research ◽  
The Political ◽  
Political Strategy ◽  
Political Strategies ◽  
Different Types ◽  
And Performance ◽  
Corporate Political Strategy ◽  
Choice Approach

This chapter analyzes the political strategies of subsidiaries of multinational enterprises (MNEs). In doing so, I review the literature at the crossroads of corporate political strategy and international business (IB) strategy and identify four relevant themes. First, the types of political strategies deployed by subsidiaries dichotomize into engaged and non-engaged; and into legal and illegal. Second, the responses of subsidiaries to host political contexts, involve exercising voice, exit, or loyalty through different types of political strategies. Third, the determinants that explain the choice, approach (transactional or relational), level of participation (individual or collective), intensity, or dissimilarity of the political strategies of subsidiaries, can be clustered into five levels of analysis: home country, host country, multinational, subsidiary, and managerial. Fourth, the main outcomes of subsidiary political strategies are legitimacy in the host country and performance. The chapter concludes with promising opportunities for future research on political strategies from a subsidiary perspective, a growing area of study in IB strategy.

Do Investors' Perceptions Vary with Types of Nonaudit Fees? Evidence from Auditor Ratification Voting

2005 ◽  
Vol 24 (2) ◽  
pp. 9-25 ◽  
Author(s):  
Suchismita Mishra ◽  
K. Raghunandan ◽  
Dasaratha V. Rama
Keyword(s):  
Empirical Support ◽  
Positive Association ◽  
Auditor Independence ◽  
The Other ◽  
Audit Committees ◽  
Single Measure ◽  
Nonaudit Services ◽  
Recent Initiative

In FRR No. 68, the SEC (2003b) updated the rules related to the disclosure of fees paid to the independent auditor by requiring more detailed information about nonaudit fees. The SEC (2002, 2003b) asserted that the partition of nonaudit fees into the categories of audit-related, tax, and other fees would be useful for investors in assessing the auditor's independence and in voting on ratifying the auditor. The SEC suggested that investors would view audit-related and tax services more favorably than “other” nonaudit services. In this paper we test the SEC's assertions by examining shareholder ratification votes, during 2003, at 248 of the S&P 1500 firms. Our results support the SEC's assertion that investors would view audit-related fees differently than the other two types of nonaudit fees. However, contrary to the SEC's assertion, both the tax fee ratio and the other fee ratio have a positive association with the proportion of votes against auditor ratification. The results related to tax fees provide empirical support to the PCAOB's recent initiative to examine the association between tax services and auditor independence. Our results can be useful for client managements and audit committees considering purchases of nonaudit services from auditors. Our findings also suggest that it may be useful to replicate some prior studies (that use a single measure of nonaudit fees) using the newer, more finely partitioned, fee data.

The importance of corporate political strategies

2018 ◽  
Vol 34 (1) ◽  
pp. 31-33
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
Political Strategy ◽  
Research Needs ◽  
Content Type ◽  
Corporate Political Strategies ◽  
New Ideas ◽  
Pertinent Information ◽  
Corporate Political Strategy ◽  
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 There is a substantial body of research on corporate political strategy, but most is theoretical, lacking empirical evidence, and is widely geo specific. More research needs to be done in clarifying the field, and developing new ideas for emerging markets. 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.

Business Lobbying in the European Union

2021 ◽  
Author(s):  
David Coen ◽  
Alexander Katsaitis ◽  
Matia Vannoni
Keyword(s):  
Public Management ◽  
Political Representation ◽  
Political Strategy ◽  
Policy Cycle ◽  
The European Union ◽  
Government Relations ◽  
Cycle Shape ◽  
Business Lobbying ◽  
Elite Interviews ◽  
Corporate Political Strategy

At a time when Europe and business stand at crossroads, this study provides a perspective into how business representation in the EU has evolved and valuable insights into how to organize lobbying strategies and influence policy-making. Uniquely, the study analyses business lobbying in Brussels by drawing on insights from political science, public management, and business studies. At the macro-level, we explore over thirty years of increasing business lobbying and explore the emergence of a distinct European business-government relations style. At the meso-level, we assess how the role of EU institutions, policy types, and the policy cycle shape the density and diversity of business activity. Finally, at the micro-level we seek to explore how firms organize their political affairs functions and mobilized strategic political responses. The study utilizes a variety of methods to analyse business-government relations drawing on unique company and policy-maker surveys; in-depth case studies and elite interviews; large statistical analysis of lobbying registers to examine business the density and diversity; and managerial career path and organizational analyses to assess corporate political capabilities. In doing so, this study contributes to discussions on corporate political strategy and interest groups activity. This monograph should be of interest to public policy scholars, policy-makers, and businesses managers seeking to understand EU government affair and political representation.

scholarly journals Role Conflict, Role Ambiguity, Independensi dan Kinerja Auditor

2019 ◽  
Vol 1 (2) ◽  
pp. 65-77 ◽  
Author(s):  
Bahtiar Effendi
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Role Conflict ◽  
Quantitative Research ◽  
Role Ambiguity ◽  
Sampling Technique ◽  
Auditor Independence ◽  
Public Accounting ◽  
Accounting Firms ◽  
Analysis Technique

This study aims to examine the effect of role conflict, role ambiguity, and auditor independence on auditor performance. This type of research is quantitative research. The sampling technique was purposive sampling with a sample of 35 respondents from 14 Public Accounting Firms in the Jakarta. The data analysis technique used in this study is a multiple linear regression using the IBM SPSS Statistics version 24 program. The results show that: role conflict does not affect auditor performance, role ambiguity does not affect auditor performance, and auditor independence do not affect auditor performance.

scholarly journals The Effect of Independence and Integrity on Audit Quality: Is There A Moderating Role for E-Audit?

2021 ◽  
Vol 23 (3) ◽  
Author(s):  
Diza Dianeke Budi Prabowo ◽  
Dwi Suhartini
Keyword(s):  
Industrial Revolution ◽  
Audit Quality ◽  
Practical Implication ◽  
Financial Statements ◽  
Auditor Independence ◽  
Audit Process ◽  
Accounting Firms ◽  
Audit Reports ◽  
The Impact

The financial statements must be reliable and become a benchmark in considering an audit decision on the financial statements. In order for this to be achieved, independence and integrity is required in carrying out the audit process. E-Audit helps overcome challenges in the industrial revolution 4.0 and prevent fraud. This research aims of testing and analyzing the role of e-audit in moderating the impact of auditor independence and integrity on audit quality. The data was collected through a questionnaire distributed to auditors at Public Accounting Firms in Surabaya. There are 36 respondents involved. The data were analyzed using SmartPLS. The results showed that auditor independence positively effect audit quality, auditor integrity positively effect audit quality; e-audit does non moderate the effect of auditor independence on audit quality; ande-Audit negatively moderates the effect of auditor integrity on audit quality. The practical implication of this research is that when determining high audit quality, independent auditors should at least increase their independence and integrity so that the resulting audit reports are of high quality and can be a reference for decision makers.

scholarly journals Pengaruh Keahlian Auditor dan Independensi terhadap Audit Judgment

2020 ◽  
Vol 2 (5) ◽  
pp. 741-751
Author(s):  
Elizabeth Sihombing ◽  
Valentine Siagian
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Quantitative Method ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Auditor Independence ◽  
Public Accounting ◽  
Accounting Firms ◽  
Analysis Techniques ◽  
Audit Judgment

This study aims to empirically test whether the auditor’s expertise and auditor independence affect audit judgment. The selected sample is fifty respondents with technical purposive sampling. We use a quantitative method, where data is obtained from auditors who work in public accounting firms in Jakarta. We use multiple linear regression analysis techniques with the SPSS program. We find that partially, either expertise of auditors and auditor independence has a positive and significant effect on audit judgment. F test has shown that simultaneously auditor expertise and auditor independence have a  positive and significant effect on audit judgment.

The Politics of E-Learning

2018 ◽  
pp. 109-127
Author(s):  
Mahesh S. Raisinghani ◽  
Celia Romm Livermore ◽  
Pierluigi Rippa
Keyword(s):  
Case Studies ◽  
Learning Strategies ◽  
Two Dimensions ◽  
The Political ◽  
Political Strategy ◽  
Political Strategies ◽  
Organizational Contexts ◽  
Different Types ◽  
E Learning

The goal of this chapter was to study the political strategies utilized in the context of e-learning. The research is based on the e-learning political strategies (ELPoS) model. The model is based on two dimensions: (1) the direction of the political strategy (upward or downward) and (2) the scope of the political strategy (individual or group based). The model assumes that the interaction between these dimensions will define four different types of e-learning political strategies, which, in turn, will lead to different outcomes. The model is presented in the context of the literature on e-learning and is accompanied with four short case studies that demonstrate its political strategies. The discussion and conclusions section integrates the findings from the case studies and outlines the rules that govern the utilization of political e-learning strategies in different organizational contexts.

scholarly journals “LUSSO DI OSTENTAZIONE” E “LUSSO DI COMODO”. TRA ECONOMIA E POLITICA: UN LINGUAGGIO DI RIFORMA DELLA SOCIETÀ NELLA MILANO DEL “CAFFÈ”

2011 ◽  
pp. 69-105
Author(s):  
Manuela Albertone ◽  
Cecilia Carnino
Keyword(s):  
Typical Feature ◽  
Political Strategy ◽  
Free Disposal ◽  
Productive Activities ◽  
Different Types ◽  
Political Objective ◽  
Semantic Dimension ◽  
Italian Context ◽  
Intellectual Environment ◽  
Economics And Politics

Luxury of ostentation and luxury of comfort. Between economics and politics: a Milanese language of reform in the age of Il Caffè. This essay considers the eighteenth-century European debate on luxury and focuses in particular on the distinction between positive luxury – which was considered economically useful and capable of enhancing economic and social development – and negative luxury – which was seen as an essentially unproductive form of overspending. In the Italian setting that distinction, which had been at the centre of European debate since the 1750s, was especially discussed in Milan during the 1760s and 1770s within the circle of reformers gathered around the periodical Il Caffè. One purpose of this essay is to analyse the way in which the contrast between negative and positive luxury took shape in the specific context of the Milanese circle of Accademia dei Pugni. In particular, the essay sets out to prove that the contrast between negative and positive luxury became key to the political language of reform and criticism of hereditary aristocracy and of the conservative institutions regulating landed property and its transmission. The reformers’ goal was in fact to give impetus to a new legitimization of the ruling classes on the basis of economic effectiveness and to promote the abolition of legal institutions such as the majorat and the fideicommissum, which were designed to protect the property of traditional nobility. In this perspective the Milanese, or rather the Italian, context emerged as a distinctive case characterised by a language of transformation of the ancien régime social structures and by strong demands for the redistribution of wealth. Another purpose of the essay is to explore the circulation of ideas between France and the Milanese intellectual environment, and in particular to examine how the circle around Il Caffè was stimulated by the French debate on luxury through the opposing perspectives developed, respectively, by writers around the superintendent of commerce Vincent de Gournay and the Physiocrats. Among the writers who took a positive view of luxury, Forbonnais’s and Plumard de Dangeul’s criticism of luxury whenever it was not associated with productive activities such as trade and agriculture, followed a precise political strategy by attacking the financiers and their accumulation of huge fortunes concentrated in the French capital. The Physiocrats took a different view and identified two different types of luxury. In particular, Quesnay distinguished between luxe de décoration and luxe de subsistence. He justified the former as a manifestation of landowners’ free disposal of wealth, but was also aware that, differently from the luxe de subsistence, it could seriously reduce the net product available for reproduction and accumulation. The essay, by focusing on the semantic dimension, shows that Milanese writers such as Beccaria and Verri developed an original framework combining the consideration of the contrast between useful and harmful luxury in view of a specific political objective (a theme characteristic of Vincent de Gournay’s circle) with the emphasis on agriculture and landowners’ expenses (a typical feature of the Physiocratic approach).

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