Československá Obchodní Banka, a.s.: Applying Business Risk Audit Techniques in an Emerging Market Economy

2002 ◽  
Vol 17 (3) ◽  
pp. 289-313 ◽  
Author(s):  
Brian Ballou ◽  
W. Robert Knechel
Keyword(s):  
Business Process ◽  
Emerging Market ◽  
Communist Country ◽  
Business Risk ◽  
Accounting Firms ◽  
Business Setting ◽  
Audit Approach ◽  
Available Information ◽  
The Impact

The case involves Československá Obchodní Banka, a.s. (ČSOB or “the bank”), which was the third largest bank in the Czech Republic in 1997 when the case initially takes place. The case is based on publicly available information relating to ČSOB at a time when the bank was emerging from the state-owned environment of the former Communist country of Czechoslovakia. You will serve in the role of an auditor who is trying understand how to assess the fairness of financial information related to one business process of the entity, based, in part, on the effectiveness of the bank in carrying out its strategy and, in part, on the performance of the business process. This case is designed to provide you with an opportunity to apply important aspects of a business risk audit approach similar to what is utilized to some extent by all major international accounting firms (e.g., Lemon et al. 2000; the Joint Working Group [JWG] Report 2000) in a unique business setting. The requirements of the case also involve assessing the impact on the audit of the bank from privatization by a foreign investor.

Managers ability and investment dynamics during the global financial crisis: an emerging market context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rehana Naheed ◽  
Bushra Sarwar ◽  
Rukhsana Naheed
Keyword(s):  
Global Financial Crisis ◽  
Stock Exchange ◽  
Emerging Market ◽  
Investment Policy ◽  
Managerial Ability ◽  
Content Type ◽  
Crisis Period ◽  
Managerial Talent ◽  
The Impact

Purpose Many scholars have developed several theories and empirics to study issues related to investment policy. However, there are still some unexplored issues in the field of finance that require further analysis and investigation, particularly in the corporate governance literature such as the role of managerial talent in the firms. This study investigated the impact of managerial ability on investment decisions of the firms. Design/methodology/approach The study first uses firm efficiency and managerial ability by using data envelope analysis (DEA) proposed by Demerjian, Lev and McVay, 2012. Data is collected for the firms listed in Shenzhen and Shanghai stock exchange for an emerging market of China during the crisis period with 1,640 number of observations. Findings The study reveals that the presence of more managerial talent in a firm is significant for the strategic decisions of the firms. Findings follow a resource-based view and identify that more talented managers help the firms in the acquisition of resources specifically during financial distress. The study subdivides the firms based on: ownership structures and financial constraints. Results generated from propensity score matching imply that the role of high-talented managers is significantly different from that of low-talented managers. Originality/value The study reveals managerial ability as a determinant of investment policy. To the researchers’ best knowledge, none of the previous studies have been conducted in emerging market literature during the crisis period.

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.

The Persuasive Effect of Product Placements

2021 ◽  
Author(s):  
Ravineet Kaur ◽  
Rakesh Kumar Sharma ◽  
Apurva Bakshi
Keyword(s):  
Attitude Change ◽  
Emerging Market ◽  
Behavioral Responses ◽  
Purchase Intentions ◽  
Future Research ◽  
Mediating Role ◽  
Product Placements ◽  
The Impact ◽  
The Relationship

Abstract. Marketers are increasingly relying on covert advertising tactics to persuade consumers. This empirical study selected the context of an emerging market to examine the effectiveness of product placements. Using an experimental design, we captured the affective and behavioral responses of young Indian adults. The results indicated that young adults are positive about product placements. The mediating role of brand attitude change in the relationship between attitude toward product placements and purchase intentions is established. The study provides valuable insights into the impact of execution factors on viewers’ responses. Implications and directions for future research are discussed based on the results of this study.

Female directors and CSR disclosure in Bangladesh: the role of family affiliation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pallab Kumar Biswas ◽  
Helen Roberts ◽  
Rosalind Heather Whiting
Keyword(s):  
Family Firms ◽  
Emerging Market ◽  
Annual Reports ◽  
Content Type ◽  
Female Directors ◽  
Csr Disclosure ◽  
Female Director ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to investigate the impact of female director affiliations to governing families on corporate social responsibility (CSR) disclosures in the context of Bangladeshi firms. Design/methodology/approach This study uses a quantitative empirical research method grounded in Socioemotional Wealth (SEW) theory. Data was sourced from Bangladeshi publicly listed non-financial sector companies’ annual reports and stock exchange trading and publication reports and consists of 2,637 firm-year observations from 1996 to 2011. Pooled multivariate regression models are used to test the association between corporate social and environmental disclosure and female directors, and the family affiliation (or not) of those directors. Findings The findings provide strong evidence that female directors who are affiliated to the governing family, founders and other board members reduce CSR disclosure in family firms; unaffiliated female board directors enhance CSR disclosure, and this effect is significant in both family and non-family firms. Research limitations/implications Definitions of family firms and affiliated directors may lead to over-generalization in the results. Originality/value The study highlights variation in the nature of female board appointments in emerging market family-controlled firms. The findings bring attention to the role of affiliated female director appointments in family ownership structures and speak directly to family business owners, advisors and policy makers about the importance of unaffiliated female directors as catalysts of improved CSR disclosure in family and non-family firms.

scholarly journals Building Customer Loyalty in Intercultural Service Encounters: The Role of Service Employees’ Cultural Intelligence

2019 ◽  
Vol 27 (2) ◽  
pp. 56-75 ◽  
Author(s):  
Nicholas G. Paparoidamis ◽  
Huong Thi Thanh Tran ◽  
Constantinos N. Leonidou
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Cultural Intelligence ◽  
Emerging Market ◽  
Theory And Practice ◽  
Service Encounters ◽  
Research Attention ◽  
Service Employees ◽  
The Impact

Intercultural service encounters, in which customers and service employees from different cultures interact, are becoming more common in the market. Despite the importance of such encounters for international marketers, limited research attention has been directed to this area. Drawing on social exchange theory, this study examines how frontline employees’ cultural intelligence (CQ) influences customer loyalty outcomes of service quality perceptions. Specifically, the authors propose that the three components of CQ—cognitive, emotional/motivational, and physical—have differential moderating effects on the perceived service quality (PSQ)–customer loyalty link and that these effects vary across two national markets. Data collected with a multirespondent (i.e., frontline service employees and customers) cross-cultural research design indicate that cognitive CQ negatively mitigates the impact of PSQ on customer loyalty in an emerging-market context while emotional/motivational CQ has a positive moderating effect in a mature-market setting. When service employees have high physical CQ, the positive role of PSQ in creating and maintaining customer loyalty is strengthened in both markets. The authors discuss these implications for theory and practice.

scholarly journals The impact of related party transactions on firm value

2019 ◽  
Vol 17 (3) ◽  
pp. 571-588
Author(s):  
Ahmed A. Diab ◽  
Ahmed Aboud ◽  
Arafat Hamdy
Keyword(s):  
Firm Value ◽  
Design Methodology ◽  
Emerging Market ◽  
Content Type ◽  
Related Party Transactions ◽  
Intermediary Role ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market. Design/methodology/approach In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017. Findings Unlike the literature, the authors find no significant relationship between RPTs and market value. Practical implications This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt. Originality/value The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.

Agency problems and the value of advertising expenditures in an emerging market: role of product market competition

2020 ◽  
Vol 46 (9) ◽  
pp. 1123-1143
Author(s):  
Omar Farooq ◽  
Zakir Pashayev
Keyword(s):  
Positive Impact ◽  
Emerging Market ◽  
Market Competition ◽  
Agency Problems ◽  
Product Market ◽  
Product Market Competition ◽  
Content Type ◽  
Financial Firms ◽  
The Impact

PurposeThis paper documents the impact of product market competition on the value of advertising expenditures.Design/methodology/approachThe authors use the data for non-financial firms from India and the pooled regression procedure to test their arguments during the period between 2009 and 2018.FindingsThe results show that advertising expenditures of firms operating in sectors with relatively high competition are more valuable than advertising expenditures of firms operating in sectors with relatively low competition. The results of the study are robust across various proxies of advertising expenditures and firm performance. Furthermore, the results also show that the positive impact of product market competition on the value of advertising expenditures is confined only to firms that already have lower agency problems.Originality/valueThe results of the study highlight the importance of product market competition on the value of advertising expenditure in the emerging market setting, where agency problems are supposed to be high.

Insurance of Entrepreneurial Risks As a Factor in the Development of the Russian Economy

Auditor ◽  
2020 ◽  
Vol 6 (6) ◽  
pp. 53-58
Author(s):  
Andrey Grafov ◽  
Sergei Guskov ◽  
E. Kukina
Keyword(s):  
Insurance Market ◽  
Business Risk ◽  
Russian Economy ◽  
Risk Insurance ◽  
The Impact

This article is devoted to the study of the role of business risk insurance in the development of the Russian economy. The article deals with such issues as the nature of insurance risks, methods of minimizing business risks, and the impact of insurance of business risks on the Russian economy. Th e analysis of the business risk insurance market in the Lipetsk region is carried out.

The Impact of Strategic-Positioning Information on Auditor Judgments about Business-Process Performance

2004 ◽  
Vol 23 (2) ◽  
pp. 71-88 ◽  
Author(s):  
Brian Ballou ◽  
Christine E. Earley ◽  
Jay S. Rich
Keyword(s):  
Business Process ◽  
Levels Of Analysis ◽  
Process Performance ◽  
Business Risk ◽  
Strategic Positioning ◽  
Small Problem ◽  
Auditor Judgments ◽  
The Impact ◽  
Process Level ◽  
Level Analysis

Strategic-systems auditing (SSA) approaches require auditors to perform analyses of their clients at two levels (i.e., strategic and business-process levels) when conducting audits (e.g., Bell et al. 2002; Lemon et al. 2000). One advantage of using SSA approaches is that through these analyses, auditors gain a complex systems understanding of the client. This understanding enhances decision making in part by recognizing that small actions can have big effects that increase overall business risk (Jacobson 2001; Richmond 2000). This study examines how the two levels of analysis in SSA impact auditor judgments regarding small changes in a business process that can have big (risk-increasing) effects. Specifically, we predict that when strategic-positioning information (contained within the strategic-level analysis) indicates a client is typical of others in its industry, information at the business-process level regarding a small problem in a business process will be weighted less than when the strategic-positioning information indicates the client is atypical. Results support this contention. This behavior may have implications for the effectiveness of SSA approaches under certain conditions.

scholarly journals Positions and prospects of Russian shipbuilding in the world market of naval equipment

2021 ◽  
Vol 92 ◽  
pp. 08007
Author(s):  
Victor Dengov ◽  
Irina Tulyakova ◽  
Elena Gregova
Keyword(s):  
Value Added ◽  
World Market ◽  
External Factors ◽  
Military Equipment ◽  
Current State ◽  
The World ◽  
Military Security ◽  
Available Information ◽  
The Impact

Research background: The products of the arms and military equipment market create the material basis for the country’s military security. The most important segment of this market is the market of naval equipment. The acquired competencies have naturally led Russia to the role of the most important exporter in this market. The authors have repeatedly addressed the topic of Russian shipbuilding and the role of Russia in the world market of naval equipment and military ships. Purpose of the article: The main goal of the research is to analyze the current state of the market of naval equipment, the positions of its main participants and, especially, Russia. To determine the future prospects of Russia’s presence in this market, it was necessary to identify the main problems of Russian shipbuilding and consider the impact of external factors on the state of the industry. Methods: Generalizations of the research are based on processing and systematization of data obtained from available information sources. Analyzing the statistics, the authors were able to deduce the trends of the current moment and determine the prospects. Findings & Value added: The analysis of key market indicators, as well as the problems of Russian shipbuilding, allowed the authors to build possible scenarios for its future development, from optimistic under favorable external factors to pessimistic, in which the loss of not only military security, but also the position of the largest exporter in the world market of naval equipment and military ships is inevitable.

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