The Impact of Smog Pollution on Audit Quality: Evidence from China

Audit quality usually refers to the quality that the auditing services accounting firm auditors provide to an enterprise in the form of an audit report. This study empirically analyzes the impact mechanism of smog pollution on audit quality, based on the data of A-share listed companies in the Shanghai and Shenzhen Stock Exchanges during the period 2013 to 2017 and the air quality monitoring data released by the China National Environmental Monitoring Centre covering the period 2013 to 2018. First, the empirical results show that smog pollution can lead to a decline in audit quality. Second, audit time plays a partial mediating role in the relationship between smog pollution and audit quality. Further analysis indicates that the negative impact of smog pollution on audit quality and the intermediary role played by audit time are only significant in the sample of “top 10” accounting firms. Third, the enterprise′s internal control level positively moderates the mediating effect of audit time on smog pollution and audit quality.

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The Influence of Urban Sprawl on Air Pollution and the Mediating Effect of Vehicle Ownership

Processes ◽

10.3390/pr9081261 ◽

2021 ◽

Vol 9 (8) ◽

pp. 1261

Author(s):

Aiping Tao ◽

Qun Liang ◽

Peng Kuai ◽

Tao Ding

Keyword(s):

Air Pollution ◽

Urban Sprawl ◽

Negative Impact ◽

Empirical Support ◽

Mediating Effect ◽

Vehicle Ownership ◽

Mediating Role ◽

Effect Model ◽

Significant Negative Impact ◽

The Impact

Based on the panel data of 224 prefecture-level and above cities in China from 2003 to 2016, this paper empirically studies the impact of urban sprawl on air pollution and introduces a mediating effect model to test the mediating role of vehicle ownership concerning the impact of urban sprawl on air pollution. The research in this paper arrives at three conclusions. First, urban sprawl has a significant positive effect on air pollution, and this conclusion is still valid after solving the endogeneity problem and conducting a robustness test. Second, the results of mediating effect test show that urban sprawl indirectly affects air pollution through the partial mediating effect of vehicle ownership. By removing the mediating effect, urban sprawl has a significant negative impact on air pollution, indicating that the mediating effect of vehicle ownership is higher concerning the impact of urban sprawl on air pollution. Third, further panel quantile regression results show that the higher the level of air pollution, the weaker the mediating effect of vehicle ownership and the stronger the direct effect of urban sprawl on air pollution. These conclusions can provide some empirical support for solving the air pollution problems caused by urban sprawl in China.

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MANDATORI ROTASI AUDITOR DAN KUALITAS AUDIT DI INDONESIA

eBA Journal: Journal Economics, Bussines and Accounting ◽

10.32492/eba.v5i2.845 ◽

2019 ◽

Vol 5 (2) ◽

pp. 54-64

Author(s):

Wahyu Pramesti ◽

Sayekti Endah Retno Meilani

Keyword(s):

Audit Quality ◽

Negative Impact ◽

Positive Impact ◽

Stock Exchange ◽

Annual Reports ◽

Public Accounting ◽

Accounting Firms ◽

Public Accounting Firms ◽

Using Data ◽

The Impact

The aims of this study is to determine the impact of audit rotation to audit quality in Indonesia. There are two types of audit rotation, first is rotation of public accounting firms and second is rotation of audit partners. This is quantitave research using 876 samples from members of company listing in Indonesia Stock Exchange from 2013 until 2015. Data colletion from annual reports these companies. These data are processes dan raise the regression equation that satisfy the classic assumtion. Using data from all companies listing in Indonesia Stock Exchange for period 2013 – 2015, we obtained te evidance that audit quality in Indonesia be affected by rotation of public accounting firms and rotation of audit partners. The result show that rotation of audit partners has positive impact to audit quality. While negative impact given by rotation of public accounting firm to audit rotation. It means that the higest frequent of rotating audit partners will increase the audit quality. To the contrary, while higest frequent rotation of public accounting firms will decrease the audit quality.

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Of Hurricanes and Harness Racing: The Accounting Fraud at DHB Industries, Inc.

Issues in Accounting Education ◽

10.2308/iace-50297 ◽

2012 ◽

Vol 28 (1) ◽

pp. 131-152

Author(s):

Michael C. Knapp ◽

Carol A. Knapp

Keyword(s):

Financial Reporting ◽

Internal Control ◽

Large Scale ◽

Audit Quality ◽

Securities And Exchange Commission ◽

Accounting Fraud ◽

Accounting Firms ◽

Fraud Risk ◽

Wide Range ◽

The Impact

ABSTRACT: This instructional case focuses on an accounting and financial reporting fraud involving DHB Industries, Inc., the nation's largest manufacturer of bullet-resistant vests. Three executives of this Securities and Exchange Commission (SEC) registrant, including its founder and CEO, masterminded a large-scale fraud that grossly misrepresented DHB's financial statements. The three executives colluded to conceal their misdeeds from the four accounting firms that served as the company's independent auditors over the course of the fraud. In late 2010, a federal jury convicted DHB's former CEO and COO of multiple counts of fraud and related charges. This case addresses a wide range of auditing issues raised by the DHB fraud, including the identification of fraud risk factors, auditing of related-party transactions, the impact of frequent auditor changes on audit quality, and the internal control reporting responsibilities of auditors.

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Top Management, Green Innovations, and the Mediating Effect of Customer Cooperation in Green Supply Chains

Sustainability ◽

10.3390/su11041031 ◽

2019 ◽

Vol 11 (4) ◽

pp. 1031 ◽

Cited By ~ 6

Author(s):

Umar Burki ◽

Pervin Ersoy ◽

Usama Najam

Keyword(s):

Supply Chain ◽

Negative Impact ◽

Customer Relationships ◽

Mediating Effect ◽

Top Management ◽

Mediating Role ◽

Management Commitment ◽

Top Management Commitment ◽

The Impact ◽

The Relationship

This study examines the mediating role of customer cooperation in green supply chain relationships. Employing 181 manufacturer–customer relationships, we test the mediating effect of customer cooperation on the process and managerial innovations. As proposed, customer cooperation positively mediates the relationship between top management commitment and process innovation. However, customer cooperation fails to mediate the relationship between top management commitment and managerial innovation. The findings suggest that the magnitude of customer cooperation increases the adoption of green innovations between supply chain partners to mitigate the negative impact on the environment. Furthermore, customer cooperation enforces a sense of mutuality between supply chain partners to diminish the impact of carbon footprint.

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The Relationship between Gender, Tax Burdens, Corruption Practices, and Tax Compliance

Journal of Southwest Jiaotong University ◽

10.35741/issn.0258-2724.55.3.54 ◽

2020 ◽

Vol 55 (3) ◽

Author(s):

Theresia Woro Damayanti ◽

Ronny Prabowo ◽

Usil Sis Sucahyo ◽

Supramono Supramano

Keyword(s):

Negative Impact ◽

Tax Compliance ◽

Mediating Effect ◽

Mediating Role ◽

Top Managers ◽

Research Gap ◽

Using Data ◽

The Impact ◽

The Relationship

The article describes a new idea: the effect of top managers’ gender on tax compliance that is mediated by perceived tax burdens. This study also analyses the impact of perceived tax burdens on tax compliance as moderated by perceived corruption practices. Using data from the World Bank’s survey on 6,533 firms in the Association of Southeast Asian Nations countries and analyzing the data using a multiple regression analysis and Haye’s bootstrapping, the results confirm the mediating effect of perceived tax burdens on the effect of gender on tax compliance. The study also empirically shows that corruption strengthens the negative impact of perceived tax burdens on tax compliance. The contribution of this study is twofold. First, we fill in the research gap on the mediating role of perceived tax burdens and the moderating role of perceived corruption practices in the tax compliance context. Second, this study informs policymakers that they need to balance their gender equality policies with serious efforts to instill awareness on tax obligations and support anti-corruption institutions to prevent and crack down on corruption cases.

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Social comparison orientation and mental health: The mediating role of psychological capital

Social Behavior and Personality An International Journal ◽

10.2224/sbp.9767 ◽

2020 ◽

Author(s):

Guoliang Yang ◽

Zhihua Wang ◽

Weijiong Wu

Keyword(s):

Mental Health ◽

Social Comparison ◽

Psychological Capital ◽

Mediating Effect ◽

Mediating Role ◽

The Social ◽

Social Comparison Orientation ◽

Using Data ◽

The Impact ◽

The Relationship

Little is known about the relationship between social comparison orientation and mental health, especially in the psychological capital context. We proposed a theoretical model to examine the impact of ability- and opinion-based social comparison orientation on mental health using data from 304 undergraduates. We also examined the mediating effect of the four psychological capital components of hope, self-efficacy, resilience, and optimism in the relationship between social comparison orientation and mental health. Results show that an ability (vs. opinion) social comparison orientation was negatively (vs. positively) related to the psychological capital components. Further, the resilience and optimism components of psychological capital fully mediated the social comparison orientation–mental health relationship. Our findings indicate that psychological capital should be considered in the promotion of mental health, and that the two social comparison orientation types have opposite effects on psychological capital.

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Exploring the Relationship between Communication and Success of Construction Projects: The Mediating Role of Conflict

Sustainability ◽

10.3390/su13084513 ◽

2021 ◽

Vol 13 (8) ◽

pp. 4513

Author(s):

Summaira Malik ◽

Muhammad Taqi ◽

José Moleiro Martins ◽

Mário Nuno Mata ◽

João Manuel Pereira ◽

...

Keyword(s):

Project Success ◽

Negative Impact ◽

Positive Impact ◽

Construction Project ◽

Project Team ◽

Relationship Conflict ◽

Team Members ◽

Mediating Role ◽

The Impact

The success of a construction project is a widely discussed topic, even today, and there exists a difference of opinion. The impact of communication and conflict on project success is an important, but least addressed, issue in literature, especially in the case of underdeveloped countries. Miscommunication and conflict not only hinder the success of a project but also may lead to conflicts. The focus of this paper was to examine the impact of communication on project success with the mediating role of conflict. By using SPSS, demographics, descriptive statistics and correlation were determined. Smart PLS version 3.0 was used for confirmatory factor analysis (CFA), internal accuracy and validity estimates, hypothesis checking and mediation testing. The results showed that formal communication has a negative impact on the success of a construction project, resulting in conflicts among project team members, whereas informal communication and communication willingness have a positive impact on project success because people tend to know each other, and trust is developed. Task, process and relationship conflicts were used as mediating variables. It was found that task conflict effects the relations positively because project team members suggest different ways to do a certain task, and, hence, project success is achieved. On the contrary, process conflict and relationship conflict have a negative impact on communication and project success. Both of these conflicts lead to miscommunication, and project success is compromised. Hence, it is the responsibility of the project manager to enhance communication among project team members and to reduce the detrimental effects of process and relationship conflict on project success.

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The Role of Internal Control in Firms’ Coping with the Impact of the COVID-19 Pandemic: Evidence from China

Sustainability ◽

10.3390/su13116294 ◽

2021 ◽

Vol 13 (11) ◽

pp. 6294

Author(s):

Peiqing Zhu ◽

Jianbo Song

Keyword(s):

Internal Control ◽

Manufacturing Industry ◽

Firm Heterogeneity ◽

Negative Impact ◽

Risk Prevention ◽

High Tech ◽

Obvious Effect ◽

The Difference ◽

The Impact

Internal control plays a role in risk prevention for firms when dealing with serious emergencies, which ensures the sustainable development of firms during a crisis. Based on the rapid outbreak of COVID-19 in China, this paper empirically tests whether internal control alleviates the negative impact of the pandemic on firm performance. Using a sample of Chinese listed firms from the first quarter of 2019 to the third quarter of 2020 and employing the difference-in-difference (DID) method, we find that the firms with a higher quality of internal control achieve better financial performance during the pandemic period; the more serious the pandemic is, the more obvious effect internal control plays. Furthermore, we consider the industry heterogeneity and firm heterogeneity of the risk resistance effect of internal control. In the manufacturing industry, which is a “disaster zone” of the pandemic, and the non-high-tech industry with a low degree of digitization, internal control can play a more important role in firms’ performance. Moreover, for state-owned enterprises, and firms with strong financing constraints, the role of internal control is more prominent. The above results provide empirical evidence for the risk prevention function of internal control and shed new light on the measures for firms to resist emergencies in the future.

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The Impact of Environmental Regulation on the Location of Pollution-Intensive Industries in China under Agglomeration Effect

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18084045 ◽

2021 ◽

Vol 18 (8) ◽

pp. 4045

Author(s):

Yinhao Wu ◽

Shumin Yu ◽

Xiangdong Duan

Keyword(s):

Environmental Regulation ◽

Local Economic Development ◽

Negative Impact ◽

Empirical Test ◽

Mediating Effect ◽

Production Costs ◽

Agglomeration Effect ◽

The Government ◽

Pollutant Discharge ◽

The Impact

Pollution-intensive industries (PIIs) have both scale effect and environmental sensitivity. Therefore, this paper studies how environmental regulation (ER) affects the location dynamics of PIIs under the agglomeration effect. Our results show that, ER can increase the production costs of pollution-intensive firms (PIFs) by internalizing the negative impact of pollutant discharge in a region, and thus, directly reduces the region’s attractiveness to PIFs. Meanwhile, ER can indirectly reduce the attractiveness of a region to PIFs by reducing the externality of the regional agglomeration effect. Moreover, these influences are regulated by the level of local economic development. Based on the moderated mediating effect model, we find evidence from the site selection activities of newly built chemical firms in cities across China. The empirical test shows that compared with 2014, the proportion of the direct effect of ER to the total effects significantly decreased in 2018, while the proportion of indirect effects under the agglomeration effect increased significantly. Our findings provide reference for the government to design effective environmental policies to guide the location choice of new PIFs.

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Epidemics and Chinese firms' stock returns: is COVID-19 different?

China Finance Review International ◽

10.1108/cfri-03-2021-0053 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Quang Thi Thieu Nguyen ◽

Dao Le Trang Anh ◽

Christopher Gan

Keyword(s):

Stock Returns ◽

Negative Impact ◽

Stock Exchange ◽

Market Performance ◽

Disease Outbreaks ◽

Stock Exchanges ◽

Content Type ◽

Event Study Method ◽

Economic Shock ◽

The Impact

PurposeThis study investigates the Chinese stocks' returns during different epidemic periods to assess their effects on firms' market performance.Design/methodology/approachThe study employs an event study method on more than 3,000 firms listed on Shanghai and Shenzhen stock exchanges during periods of SARS, H5N1, H7N9 and COVID-19FindingsEpidemics' effect on firms' stock returns is persistent up to 10 days after the event dates. Although the impact varies with types and development of the disease, most firms experience a negative impact of the epidemics. Among the epidemics, COVID-19 has the greatest impact, especially when it grows into a pandemic. The epidemics' impact is uneven across industries. In addition, B-shares and stocks listed on Shanghai Stock Exchange are more negatively influenced by the epidemic than A-shares and those listed on Shenzhen Stock Exchange.Research limitations/implicationsThe results of the study contribute to the limited literature on the effects of disease outbreaks as an economic shock on firm market performance. Given the possibility of other epidemics in the future, the study provides guidance for investors in designing an appropriate investing strategy to cope with the epidemic shocks to the market.Originality/valueThe research is novel in the way it compares and assesses the economic impact of different epidemics on firms and considers their impact at different development stages.

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