Free Cash Flow, Debt Monitoring, and Audit Pricing: Further Evidence on the Role of Director Equity Ownership

2001 ◽  
Vol 20 (2) ◽  
pp. 71-84 ◽  
Author(s):  
Ferdinand A. Gul ◽  
Judy S. L. Tsui
Keyword(s):  
Cash Flow ◽  
Positive Association ◽  
Audit Fees ◽  
Free Cash Flow ◽  
Regression Analyses ◽  
Audit Pricing ◽  
Ols Regression ◽  
Equity Ownership ◽  
Low Levels

This paper tests the hypothesis that the positive association between Free Cash Flow (FCF) and audit fees is stronger (weaker) for firms with low (high) levels of director equity ownership. Based on the debt monitoring hypothesis, we also test the hypothesis that the FCF/director equity ownership interaction is less (more) likely to exist for firms with high (low) levels of debt. OLS regression analyses of 157 and 140 low growth Australian firms audited by Big 6 auditors for the years 1992 and 1993 provide support for the hypotheses.

Dual-Class Shares and Audit Pricing: Evidence from the Canadian Markets

2008 ◽  
Vol 27 (2) ◽  
pp. 199-216 ◽  
Author(s):  
Samer Khalil ◽  
Michel L. Magnan ◽  
Jeffrey R. Cohen
Keyword(s):  
Cash Flow ◽  
Positive Association ◽  
Audit Fees ◽  
Control Rights ◽  
Audit Pricing ◽  
Audit Risk ◽  
Dual Class Shares ◽  
Cash Flow Rights ◽  
Dual Class ◽  
And Control

SUMMARY: This paper investigates whether audit fees vary with the wedge between cash flow rights and control rights arising from the presence of dual-class share structures. Dual-class shares exist in firms having two or more classes of shares with disproportionate voting rights. They affect audit fees through their effect on the supply for audit services. External auditors conduct wider (narrower) scope audits depending on whether dual-class shares increase (decrease) audit risk and/or auditor business risk. Wider (narrower) scope audits are more (less) costly for the auditors and for their clients. This paper documents a positive association between audit fees and the wedge between cash flow rights and control rights in a sample of Canadian firms during 2004. It extends current research by investigating whether dominant shareholdings affect audit pricing, and by examining audit pricing in Canada over a time period that witnessed significant changes in corporate governance.

CEO and CFO Equity Incentives and the Pricing of Audit Services

2013 ◽  
Vol 33 (2) ◽  
pp. 1-25 ◽  
Author(s):  
B. Anthony Billings ◽  
Xinghua Gao ◽  
Yonghong Jia
Keyword(s):  
Positive Association ◽  
Audit Fees ◽  
Internal Controls ◽  
Audit Risk ◽  
Pricing Decisions ◽  
Equity Incentives ◽  
Accounting Scandals ◽  
Using Data ◽  
Distinctive Role

SUMMARY: The alleged perverse role of managerial incentives in accounting scandals, and the distinctive role of auditors in identifying and intervening in attempted earnings manipulation, highlight the importance of explicitly considering executive incentive plans by auditors in the auditing process. By empirically testing auditors' responses to CEO/CFO equity incentives in planning and pricing decisions using data from 2002 through 2009, we document compelling evidence that CFO equity incentives are positively associated with audit fees and CEO equity incentives are not statistically related to audit fees, suggesting that auditors perceive heightened audit risk associated with CFO equity incentives. Our further analyses reveal that the positive association between CFO equity incentives and audit fees is more pronounced in firms with weak internal controls, indicating heightened risk associated with CFO equity incentives in this setting perceived by auditors. JEL Classifications: G30, G34, M42, M52.

scholarly journals Parental Warmth, Gratitude, and Prosocial Behavior among Chinese Adolescents: The Moderating Effect of School Climate

2021 ◽  
Vol 18 (13) ◽  
pp. 7033
Author(s):  
Haocheng Luo ◽  
Qingqi Liu ◽  
Chengfu Yu ◽  
Yangang Nie
Keyword(s):  
School Climate ◽  
Prosocial Behavior ◽  
Longitudinal Design ◽  
Positive Association ◽  
Theoretical Explanation ◽  
Parental Warmth ◽  
Physical And Mental Health ◽  
Low Levels ◽  
Moderating Role

Parental warmth plays an important role in the development of adolescents’ physical and mental health. There are numerous empirical studies indicating a relationship between parental warmth and prosocial behavior among adolescents, although the underlying mechanisms of this association remain unclear. Adopting a longitudinal design across two time points, the present study proposes a moderated mediation model to explore the mediating role of gratitude and the moderating role of the school climate between parental warmth and prosocial behavior. The sample consisted of 943 participants (483 boys and 451 girls) who participated in the second assessment and completed questionnaires assessing gratitude, school climate, and prosocial behavior in April 2019. Their parents participated in the first assessment and completed a questionnaire pertaining to parental warmth in October 2018. After controlling for the gender and age of the adolescents, the results showed that the positive association between parental warmth and prosocial behavior is mediated by gratitude, and school climate does play a moderating role in the second half of the mediating path. Specifically, the school climate can play a protective role in adolescents with low levels of gratitude. For adolescents with less gratitude, a strong school climate can promote more prosocial behaviors and can effectively alleviate the negative prediction of low levels of gratitude. This study provides a theoretical explanation for the generation of adolescents’ prosocial behavior and provides theoretical guidance for the interventions of schools and parents.

scholarly journals Surplus Free Cash Flow, Stock Market Segmentations and Earnings Management: The Moderating Role of Independent Audit Committee

2020 ◽  
pp. 097215092093406
Author(s):  
Ahmad A. Toumeh ◽  
Sofri Yahya ◽  
Azlan Amran
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Management Practices ◽  
Free Cash Flow ◽  
The Body ◽  
Moderating Role ◽  
Independent Audit

Management engages in earnings manipulation for different reasons. This article argues that low-growth firms with high free cash flow will opt for income-increasing earnings management in order to obscure the low profits derived from their investments in negative net present value (NPV) projects. On the other hand, we argue that the listed companies might be interested in being listed in the first market due to its privileges and to preserve the competitiveness, through managing their earnings upwardly, so that they can satisfy the condition of achieving a particular earnings limit. This article should advance the body of earnings management literature in the Jordanian context by examining the effect of the moderating role of an independent audit committee (IAC) in the association between surplus free cash flow (SFCF) and income-increasing discretionary accruals (DAC). Further, this is the initial empirical attempt to investigate the moderation effect of IAC between stock market segmentations (SMS) and positive DAC. The results of this current study offer original and beneficial information for the Jordanian government and other countries with a similar institutional environment because the study promotes the application of applying IAC as an efficient tool to constrain management behaviour towards manipulation of the accruals. On top of that, this research offers information concerning the prevailing situation of earnings management practices and corporate governance in Jordan, in which shareholders, local and international investors, policymakers, regulators and academic researchers are interested. Finally, panel data analyses and various statistical techniques are employed to derive conclusions.

scholarly journals PENGARUH FREE CASH FLOW DAN LEVERAGE TERHADAP MANAJEMEN LABA DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

AKUNTABILITAS ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 69-82
Author(s):  
Erma Setiawati ◽  
Mujiyati Mujiyati ◽  
Erma Marga Rosit
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Earnings Management ◽  
Cash Flow ◽  
Free Cash Flow ◽  
Leverage Effect ◽  
Purposive Sampling ◽  
Good Corporate Governance

This research aimed to examine the effect of free cash flow and leverage to earnings management.This study also examines the role of good corporate governance as measured by the index Government in moderating influence of free cash flow and leverage on earnings management. This research was conducted in the company are listed in the JakartaIslamicIndex(JII)from2015-2017 and unlisted in the Bursa Efek Indonesia(BEI).The sample is determined by purposive sampling with 45 samples. This analysis uses regression analysis moderation (MRA). The results of the research indicate where (1) free cash flow significant effect on earnings management, (2) no leverage effect on earnings management, (3) good corporate governance as measured by the index of corporate governance is not able to moderate the influence of free cash flow and earnings management

An Examination of the Free Cash Flow and Information/Signaling Hypotheses Using Unexpected Dividend Changes Inferred from Option and Stock Prices: The Case of Regular Dividend Increases

2011 ◽  
Vol 14 (03) ◽  
pp. 563-600 ◽  
Author(s):  
Sheng-Syan Chen ◽  
Kuei-Chin Fu
Keyword(s):  
Research And Development ◽  
Cash Flow ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Positive Association ◽  
Free Cash Flow ◽  
High Q ◽  
Information Signaling ◽  
Dividend Increases ◽  
Free Cash Flow Hypothesis

This paper measures unexpected dividend changes in testing the free cash flow and information/signaling hypotheses using the Bar–Yosef/Sarig method. The empirical findings reveal the following: (i) The association between announcement period abnormal returns and the cash level is significantly positive for low q firms; (ii) The positive association between announcement period, abnormal returns, and the cash level is stronger in low q than in high q firms for most regressions; (iii) Low q firms reduce their capital and research and development (R&D) expenditures during the four fiscal years following dividend increase announcements. Our results are consistent with the free cash flow hypothesis.

scholarly journals Parental Warmth, Gratitude, and Prosocial Behavior among Chinese Adolescents: The Moderating Effect of School Climate

2021 ◽  
Author(s):  
Haocheng Luo ◽  
Qingqi Liu ◽  
Chengfu Yu ◽  
Yangang Nie
Keyword(s):  
School Climate ◽  
Prosocial Behavior ◽  
Longitudinal Design ◽  
Positive Association ◽  
Theoretical Explanation ◽  
Parental Warmth ◽  
Physical And Mental Health ◽  
Low Levels ◽  
Moderating Role

Parental warmth plays an important role in the development of adolescents’ physical and mental health. There are numerous empirical studies indicating a relationship between parental warmth and prosocial behavior among adolescents, although the underlying mechanisms of this association remain unclear. Adopting a longitudinal design across two time points, the present study proposes a moderated mediation model to explore the mediating role of gratitude and the moderating role of the school climate between parental warmth and prosocial behavior. The sample consisted of 943 participants (483 boys and 451 girls) who participated in the second assessment and completed questionnaires assessing gratitude, school climate, and prosocial behavior in April 2019. Their parents participated in the first assessment and completed a questionnaire pertaining to parental warmth in October 2018. After controlling for the gender and age of the adolescents, the results showed that the positive association between parental warmth and prosocial behavior is mediated by gratitude, and school climate does play a moderating role in the second half of the mediating path. Specifically, the school climate can play a protective role in adolescents with low levels of gratitude. For adolescents with less gratitude, a strong school climate can promote more prosocial behaviors and can effectively alleviate the negative prediction of low levels of gratitude. This study provides a theoretical explanation for the generation of adolescents’ prosocial behavior, and provides theoretical guidance for the interventions of schools and parents.

Is Sclerostin Level Associated with Cardiovascular Diseases in Hemodialysis Patients?

2018 ◽  
Vol 46 (2) ◽  
pp. 118-125 ◽  
Author(s):  
Gokce Kundakci Gelir ◽  
Sule Sengul ◽  
Gokhan Nergizoglu ◽  
Sehsuvar Ertürk ◽  
Neval Duman ◽  
...  
Keyword(s):  
Multivariate Regression ◽  
Pulse Wave ◽  
Positive Association ◽  
Multivariate Regression Analysis ◽  
Hemodialysis Patients ◽  
Male Gender ◽  
Regression Analyses ◽  
Sclerostin Level ◽  
Statin Use

Background/Aims: The objective of this study is to evaluate the relation between sclerostin, arterial stiffness, and cardiovascular events (CVE) in hemodialysis patients (HD). Methods: Sclerostin level and carotid-femoral pulse wave velocity (PWV) in 97 HD patients and sclerostin level in 40 controls were measured. Results: Sclerostin level was significantly higher in patients than in controls. Sclerostin associated positively with age, male gender, cardiovascular disease, statin use, BMI, and PWV while negatively with alkaline phosphatase, parathormone (PTH), Kt/V, cinacalcet and vitamin D use in univariable correlation analyses. Sclerostin associated positively with male gender and statin use but negatively with PTH in multivariate regression analyses. During observation, 30 fatal or nonfatal CVEs were observed. While univariate correlation analysis showed a positive association between PWV and sclerostin, there was no relation between the two in multivariate regression analysis. Conclusion: Further studies are needed to understand the role of sclerostin in predicting PWV changes in HD patients.

Parental rejection and antisocial behavior: the moderating role of testosterone

2018 ◽  
Vol 8 (4) ◽  
pp. 302-313 ◽  
Author(s):  
Matthias Woeckener ◽  
Danielle L. Boisvert ◽  
Eric M. Cooke ◽  
Nicholas Kavish ◽  
Richard H. Lewis ◽  
...  
Keyword(s):  
Young Adults ◽  
Antisocial Behavior ◽  
Undergraduate Students ◽  
Positive Association ◽  
Ordinary Least Squares ◽  
Parental Rejection ◽  
Ols Regression ◽  
Content Type ◽  
Moderating Role

Purpose Research reports a positive relationship between parental rejection and antisocial behavior in adolescents and young adults. Studies also report a positive association between testosterone and antisocial behavior. The purpose of this paper is to examine whether testosterone moderates the influence of parental rejection on antisocial behavior in a sample of young adults. Design/methodology/approach The current study analyzed a sample of undergraduate students (N=322) to examine the interaction between testosterone and parental rejection in the prediction of antisocial behavior. Multivariate ordinary least squares (OLS) regression was used to explore this association. Findings Results from OLS regression models revealed that parental rejection and testosterone were independently associated with antisocial behavior and that the effect of parental rejection on antisocial behavior was stronger at higher levels of testosterone. Originality/value This current study is the first to examine how testosterone conditions the influence of parental rejection on antisocial behavior in young adults. Findings from the study add to the growing body of literature examining the interplay between biological and environmental factors.

scholarly journals Agency problems and audit fees: further tests of the free cash flow hypothesis

2009 ◽  
Vol 50 (2) ◽  
pp. 321-350 ◽  
Author(s):  
Paul A. Griffin ◽  
David H. Lont ◽  
Yuan Sun
Keyword(s):  
Cash Flow ◽  
Agency Problems ◽  
Audit Fees ◽  
Free Cash Flow ◽  
Free Cash Flow Hypothesis
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