scholarly journals The impact of guanxi on auditor independence: Perceptions of auditors and CFOs in Hong Kong

2013 ◽  
Vol 10 (2) ◽  
pp. 685-699
Author(s):  
Philip Law ◽  
Desmond Yuen ◽  
Lyu Chan
Keyword(s):  
Hong Kong ◽  
Multinational Corporations ◽  
Auditor Independence ◽  
Best Interests ◽  
Asia Pacific ◽  
Chief Financial Officers ◽  
Chinese Society ◽  
Ethical Guidelines ◽  
Big 4 ◽  
The Impact

Auditor independence has long been referred to as the cornerstone of the auditing profession. Guanxi refers to the networks of informal relationships and exchanges of favors that dominate all business and social activities that occur throughout China. This research will analyse the impact of guanxi and client size on the perceived independence of auditors in the setting of Hong Kong. Survey data is obtained from 524 questionnaire responses from Chief Financial Officers (CFOs), Big 4 and Non-Big 4 auditors. Two within-subjects independent variables: “guanxi” and the “client size”, and one between-subject independent variable: auditors versus CFOs, are employed. Results indicate guanxi is a significant factor influencing perceived auditor independence in Chinese society, which has largely been neglected in the accounting literature. Independence is severely impaired when the duration of guanxi with clients reaches five years or more. Large client size has a negative influence on the perceived independence of auditors and this result contradicts an earlier U.S. study. The results indicate that the longer the guanxi when the auditor is associated a with large audit client, the greater the decrease in their perceived independence and this has implications for audit legislation. CFOs generate the lowest mean scores (greatest threat to auditor independence) for the perceived effects of all levels (durations) of guanxi among the three groups. This result supports the stewardship theory that asserts stewards (CFOs) motives are aligned with the objectives of their principals. CFOs consider the increasing levels of guanxi associated with the auditors are not in the best interests of their principals, and hence affect the reliability of the audited accounts. Though this study is conducted in the Asia Pacific region, western counterparts will find the results useful. Multinational corporations which have subsidiaries or headquarters established globally, should be aware that guanxi has implications for their Asian operations and their consolidated audited accounts. In view of the critical importance of the guanxi factor on the perceived auditor independence, standard setters in this region should consider devising ethical guidelines requiring mandatory rotation of public accounting firms.

scholarly journals Tourism under the Early Phase of COVID-19 in Four APEC Economies: An Estimation with Special Focus on SARS Experiences

2020 ◽  
Vol 17 (20) ◽  
pp. 7543
Author(s):  
Bao-Linh Tran ◽  
Chi-Chung Chen ◽  
Wei-Chun Tseng ◽  
Shu-Yi Liao
Keyword(s):  
Hong Kong ◽  
New Zealand ◽  
Fixed Effects ◽  
Negative Impact ◽  
Asia Pacific ◽  
International Tourism ◽  
Special Focus ◽  
Tourism Demand ◽  
Data Set ◽  
The Impact

This study examines how experience of severe acute respiratory syndrome (SARS) influences the impact of coronavirus disease (COVID-19) on international tourism demand for four Asia-Pacific Economic Cooperation (APEC) economies, Taiwan, Hong Kong, Thailand, and New Zealand, over the 1 January–30 April 2020 period. To proceed, panel regression models are first applied with a time-lag effect to estimate the general effects of COVID-19 on daily tourist arrivals. In turn, the data set is decomposed into two nation groups and fixed effects models are employed for addressing the comparison of the pandemic-tourism relationship between economies with and without experiences of the SARS epidemic. Specifically, Taiwan and Hong Kong are grouped as economies with SARS experiences, while Thailand and New Zealand are grouped as countries without experiences of SARS. The estimation result indicates that the number of confirmed COVID-19 cases has a significant negative impact on tourism demand, in which a 1% COVID-19 case increase causes a 0.075% decline in tourist arrivals, which is a decline of approximately 110 arrivals for every additional person infected by the coronavirus. The negative impact of COVID-19 on tourist arrivals for Thailand and New Zealand is found much stronger than for Taiwan and Hong Kong. In particular, the number of tourist arrivals to Taiwan and Hong Kong decreased by 0.034% in response to a 1% increase in COVID-19 confirmed cases, while in Thailand and New Zealand, a 1% national confirmed cases increase caused a 0.103% reduction in tourism demand. Moreover, the effect of the number of domestic cases on international tourism is found lower than the effect caused by global COVID-19 mortality for the economies with SARS experiences. In contrast, tourist arrivals are majorly affected by the number of confirmed COVID-19 cases in Thailand and New Zealand. Finally, travel restriction in all cases is found to be the most influencing factor for the number of tourist arrivals. Besides contributing to the existing literature focusing on the knowledge regarding the nexus between tourism and COVID-19, the paper’s findings also highlight the importance of risk perception and the need of transmission prevention and control of the epidemic for the tourism sector.

Greater China and the Chinese Overseas

1993 ◽  
Vol 136 ◽  
pp. 926-948 ◽  
Author(s):  
Wang Gungwu
Keyword(s):  
Hong Kong ◽  
World Politics ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
Greater China ◽  
Republic Of China ◽  
Future Developments ◽  
Communist Ideology ◽  
Chinese Overseas ◽  
The Impact

Some of the most important developments of the last quarter of the century have taken place in the Asia-Pacific region. Of these, the Chinese shift from Communist ideology and central planning to a commitment to build a market economy has had extensive ramifications. These have led to much speculation about the re-emergence of China as a powerful actor in world politics. The idea of Greater China is one of the products of that speculation. The lack of precision in the term “Greater China” – whether it should cover Hong Kong-Macao (hereafter Hong Kong), Taiwan and all of the People's Republic of China (PRC) or only parts of it – should not prevent it being used to explore some current and future developments. In this article, which examines the impact the concept of Greater China has on the Chinese overseas, the term would obviously not include those Chinese who live outside. Nevertheless, depending on which aspect is emphasized, the actual area covered can be significant.

scholarly journals African Trading Post in Guangzhou: Emergent or Recurrent Commercial Form?

2012 ◽  
Vol 5 (1) ◽  
pp. 27-50 ◽  
Author(s):  
Sylvie Bredeloup
Keyword(s):  
Hong Kong ◽  
Sub Saharan Africa ◽  
Chinese Society ◽  
Kuala Lumpur ◽  
Republic Of China ◽  
Trading Posts ◽  
Commercial Networks ◽  
Sub Saharan ◽  
The Impact ◽  
The City

Abstract In the early 2000s, nationals of Sub-Saharan Africa who had settled in the market places of Hong Kong, Bangkok, Jakarta, and Kuala Lumpur, moved to Guangzhou and opened offices in the upper floors of buildings in Baiyun and Yuexiu Districts. These were located in the northwest of the city, near the central railway station and one of the two fairs of Canton. Gradually these traders were able to create the necessary conditions of hospitality by opening community restaurants on upper floors, increasing the number of showrooms and offices as well as the services of freight and customs clearance in order to live up to an African itinerant customer’s expectations. From interviews carried out between 2006 and 2009 in the People’s Republic of China and in Hong Kong, Bangkok, Dubai, and West Africa, the article will first highlight the economic logics which have contributed to the constitution of African trading posts in China and describe their extension from the Middle East and from Asia. The second part will determine the respective roles of migrants and traveling Sub-Saharan entrepreneurs, before exploring their interactions with Chinese society in the setting up of these commercial networks. It will also look at the impact of toughening immigration policies. It is the principle of the African trading posts of anchoring of some traders in strategic places negotiated with the host society that allows the movement but also the temporary settlement of many visitors. The first established traders purchase products manufactured in the hinterland to fulfill the demand of the itinerant merchants who in turn supply customers located in other continents.

Corporate governance and no fraud occurrence in organizations

2011 ◽  
Vol 26 (6) ◽  
pp. 501-518 ◽  
Author(s):  
Philip Law
Keyword(s):  
Corporate Governance ◽  
Hong Kong ◽  
Audit Committee ◽  
Internal Audit ◽  
Organizational Factors ◽  
Influential Factor ◽  
Asia Pacific ◽  
Chief Financial Officers ◽  
Content Type ◽  
Tone At The Top

PurposeThe purpose of this study is to examine empirically the organizational factors that are associated with the absence of fraud.Design/methodology/approachFactor analysis using principal component extraction was first employed. Logistic regression was then performed to analyze the survey responses of 253 chief financial officers (CFOs) in Hong Kong. A total of 20 semi‐structured interviews were also carried out with CFOs to supplement the research results.FindingsThe results indicate that audit committee effectiveness, internal audit effectiveness, the tone at the top managerial level, and ethical guidelines and policies are positively associated with a lack of fraud within organizations. Neither auditors' prior success in fraud detection nor the type of auditor employed is an influential factor in the absence of fraud. These results are interesting and counter those of earlier studies conducted in the USA. Also contradicting prior research, the receipt of unqualified audit reports was not found to be significant in this study.Practical implicationsThe lack of significance for certain variables, and the counterintuitive nature of some of the results offers opportunities for further research. The results provide auditors with practical insights that will prove useful in the course of their work.Originality/valueThis is the first empirical study of its nature to be conducted in Hong Kong, and its results will make an important contribution to the corporate governance and auditing literature, particularly that focused on the Asia‐Pacific region. These results also have important implications for the accounting profession and for the corporate governance process within organizations.

scholarly journals 1048Characteristics of ST-Elevation Myocardial Infarction (STEMI) patients in Asia Pacific: findings from the ASPECT collaboration

2021 ◽  
Vol 50 (Supplement_1) ◽  
Author(s):  
HuiJun Chih ◽  
Angela Brennan ◽  
KK Yeo ◽  
Mark Chan ◽  
Bryan Yan ◽  
...  
Keyword(s):  
Myocardial Infarction ◽  
Hong Kong ◽  
Coronary Artery ◽  
Artery Bypass ◽  
Patient Characteristics ◽  
Stemi Patient ◽  
Asia Pacific ◽  
Chi Squared ◽  
History Of ◽  
The Impact

Abstract Background The Asia Pacific Evaluation of Cardiovascular Therapies (ASPECT) Collaboration was established to better understand the characteristics of patients undergoing PCI and cardiac interventions across the Asia Pacific region, including STEMI. The aim of this study was to compare STEMI patient characteristics across Asia Pacific (AP) countries in order to understand regional differences. Methods Each site across Australia, Singapore, Malaysia, Vietnam and Hong Kong provided de-identified individual patient data. Comparison of characteristics by sites were performed using one-way ANOVA, Kruskal-Wallis or Chi-squared tests, using Stata 14.2. Results Of the 12,620 cases, there were more males (p < 0.001) and the average of patients’ age ranged from 55 (Malaysia) to 68 (Vietnam) years old. Family history of coronary artery disease was not common amongst Hong Kong (1%) and Singaporean (12%) patients, and most patients did not have history of congestive heart failure, peripheral vascular disease or coronary artery bypass grafting. History of dyslipidaemia varied significantly among patients in Malaysia (98%) and Vietnam (12%) (p < 0.001). About 37% of the Malaysian patients had previous myocardial infarction, which is greater than twice of other cohorts (p < 0.001). Most cohort had either normal or mild ejection fraction (EF) but 40% of the Singaporean patients had severely reduced EF (p < 0.001). Conclusions Patient characteristics varied significantly across AP countries. On-going analyses will focus on the impact of varying patient characteristics on clinical outcomes. Key messages As characteristics varied, prevention and procedural strategies need to be adapted carefully. Additional input from other AP countries will better inform these strategies.

scholarly journals Employment by clients of former CPAs from different non audit services departments on auditor independence

2010 ◽  
Vol 7 (4) ◽  
pp. 153-169 ◽  
Author(s):  
Philip Law ◽  
Desmond Yuen
Keyword(s):  
Hong Kong ◽  
Corporate Finance ◽  
Time Lapse ◽  
Auditor Independence ◽  
Due Diligence ◽  
Audit Firm ◽  
Fund Managers ◽  
Big 4 ◽  
One Year ◽  
Transaction Services

It is not uncommon for auditors to accept employment with their clients upon leaving their audit firm, but regulators have expressed concerns that this may impair auditor independence. The purpose of this study is to examine the perceptions of Hong Kong “Big 4” CPAs and the fund managers (users) of the impact of the employment by clients of former CPAs from different non audit services (NASs) departments on auditor independence. The time lapse between a CPA leaving the audit firm and taking up employment with a former client is also examined. To cover the most important issues and gaps in the literature, two within-subjects independent variables – types of NASs departments and the time-lapse factor – and one between-subject independent variable – “Big 4” CPAs versus users – are examined. This Hong Kong research is the first study to encompass these variables in a study in the post-Enron environment. A mixed ANOVA was employed to analyse the perceptions of 235 “Big 4” CPAs and 185 fund managers (users). Results show that former CPAs coming from different NASs departments have an influence on perceptions of auditor independence. However, the direction of the relationship may be positive or negative. The results show that former CPAs coming from compliance services and risk management departments enhance perceptions of independence whereas transaction services (due diligence) and corporate finance departments undermine independence. This study does support the earlier finding that NASs may increase the value of the auditor to the client (Goldman and Barlev, 1974; Gul, 1989). Second, the longer the lapse of time between a CPA departing from the audit firm and joining the audit client was, the greater the perceived auditor independence was. An interval of one year seems to be a reasonable time for independence to be preserved. Third, there is an interaction effect between the time-lapse factor and the types of NASs departments on perceptions of independence. When the time lapse between a CPA leaving the audit firm and joining the client is less than one year, audit clients should be restricted from employing CPAs from the transaction services (due diligence) and corporate finance departments of the audit firm. Finally, there are significant differences in the overall perceptions of auditor independence held by the CPA and users groups, with the CPA group ratings being higher for all types of services provided and all time lapse intervals. It may be the expectation gap that results in this difference in perception, but further research is needed to validate this theory.

THE ACCESS TO GOVERNMENT FINANCIAL SUPPORT THROUGH LEGAL CHANNELS OF SMALL AND MEDIUM ENTERPRISES IN FOUR ASIA PACIFIC COUNTRIES

2020 ◽  
Vol 9 (2) ◽  
pp. 298
Author(s):  
Muhamad Marwan
Keyword(s):  
Financial Support ◽  
Small And Medium Enterprises ◽  
Mediation Effect ◽  
Asia Pacific ◽  
Survey Questionnaire ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

The aim of this study is to determine the impact of networking on SME’s ability to access government financial support through legal channels in Asia Pacific. This study is quantitative in nature in which the data has been gathered from 281 employees and managers working in SMEs through survey questionnaire. The SEM technique was utilised for the purpose of analysing and testing the mediation effect. The study found that there is a partial mediation of government financial support through legal channels among the relationship between networking with officers and access to finance. This study is restricted to the SMEs operating in the region of Asia Pacific.

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