Search results

The purpose of this paper is to examine the conduct of the audit committee (AC) in terms of its oversight role of audit quality in the UK.

This study uses semi-structured interviews with 11 AC members and 11 audit partners.

The findings show that the conduct of the AC in relation to audit quality involves the assessment of the contents of the reports prepared by the external auditors for the AC. Furthermore, the oversight of audit quality by the AC involves a thorough assessment of the presentation of the external auditors during the interaction and communication between the two parties. This illustrates the AC’s role as an effective monitoring mechanism when overseeing the audit quality. However, the conduct of the AC in overseeing four major areas (independence, appointment, remuneration and effectiveness of audit process) related to audit quality, as recommended by the UK Code of Corporate Governance, provides mixed results. The findings highlight the ceremonial role of the AC in those areas, which demonstrates the limited supporting role of the AC in enhancing audit quality. Furthermore, it is suggested that the effectiveness of the oversight role is influenced by the quality of the chairman of the AC and the quality of the relationship between the AC and the external auditors.

This study contributes to the existing literature by providing additional insights into the conduct of the AC in overseeing audit quality as well as additional evidence concerning the role and effect of the AC in relation to audit quality as prescribed by the UK Code of Corporate Governance.

This paper aims to investigate the role of corporate governance on the bank profitability of Indian banks vis-à-vis South Asian Association for Regional Cooperation (SAARC) nations.

For the Corporate Governance Index, the authors examined board accountability, transparency and disclosure and audit committee, while Tobin’s Q, return on equity and return on assets are used to measure the bank’s profitability. The study used a two-stage analysis based on balanced panel data for robust findings. Sample of this study consists of 60 commercial banks from India and 60 banks from SAARC nations for the period of 2009–2021. This study used panel regression and a generalized method of moment approach using the CAMELS framework on banking industry-specific variables to determine their respective impacts.

The findings of this study suggest that board accountability is positive and significantly affects the profitability of banks as indicated by return on assets, return on equity and Tobin’s Q. In contrast, the audit committee has a positive and insignificant impact on return on assets, return on equity and Tobin’s Q, while transparency and disclosure have a negative and significant impact on these metrics. Furthermore, the country dummy result shows a significant positive impact on all the bank performance parameters, implying that Indian banks have the highest degree of convergence with corporate governance as compared to other SAARC nations.

This study provides insight to the regulators, policymakers and financial institutions to evaluate the role of corporate governance in emerging economies. However, the findings of the study should be interpreted with caution, as the results are sensitive to the disparity between India and other SAARC nations' government policies, climatic circumstances and cultural or religious traditions.

To the best of the authors’ knowledge, this is the first attempt to gauge the performance of Indian banks vis-à-vis SAARC nations using the CAMELS framework approach. Further, findings of this study suggest some novel evidence tying corporate governance quality with the profitability of banks among SAARC nations.

The purpose of this study is to identify latent profiles based on 3 dimensions of organizational commitment (OC) using 14 Korean samples.

This study used unpublished raw data. Allen and Meyer’s (1996) measurement was used to maintain consistency and facilitate comparison across samples. To determine the number of latent profiles that exist in Korea based on employees’ level of OC, a latent profile analysis (LPA) was performed.

The findings showed that there are two or three profiles (i.e. fully committed, weakly committed and/or moderately committed) across various types of organizations in Korea. These findings are similar to those based on LPA conducted in the West. The number of profiles is more limited in Korean samples than it is in Western samples. Like Western studies, this Korean-focused study identified fully committed, weakly committed and moderately committed profiles, but it did not show any other types of profiles found in the Western sample.

Based on these results, this study suggests academic and practical implications for researchers and practitioners.

The purpose of this paper is to provide a new theory of adjustable speed decoupled generation which has the potential to challenge existing coupled generation based on a classical synchronous generator operating with fixed speed.

The paper's approach is a theoretical consideration of the drawbacks of conventional fixed speed generation based on a synchronous generator and proposal of problem solutions by the introduction of a decoupled generation system with additional degree of freedom. Computer calculations are used as design and for preliminary verification. Tests in a real laboratory system equipped with modern components such as electrical machines and power electronic converters proved the theory.

Decoupled generation is realized in a very original way using new blocks, integration method and control. The developed system has been awarded more than six world patents. The system has additional degrees of freedom in speed and grid connection operation.

The research team has concentrated its research over many years and developed a generation system which has been awarded a great number of patents. A special axial flux, light and simple permanent magnet generator was developed and integrated to the prime mover. A three‐phase AC/AC power electronic converter and a DSP controller are integrated to a very small size and low weight. The invented topology provides a very reliable operation, high‐quality AC voltage in fully three‐phase non‐symmetrical load. There were also presentations on world conferences (EPE, PESC, EPE‐PEMC).

The Edinburgh Engineering Virtual Library (EEVL) is a project, funded by the Joint Information Systems Committee (JISC), which has developed a free gateway to Internet resources in engineering as part of the UK's Electronic Libraries Programme (eLib). The background to the project, its setting up and its development are discussed. Hopes for the future are outlined.

It has been held not infrequently that of the influences which together mould the individual and determine his or her value as a social unit those of heredity are so prepotent as to leave little room for those of the environment. By others this view has seemed to involve unjustifiable pessimism. You will, I think, admit that in the past when there was little objective knowledge to bear on such questions, current views were largely decided by that ingrained difference in social outlook which has divided and still divides human opinion on so many other fundamental questions. Those who are naturally inclined to justify privilege, and who have felt instinctively that class distinctions are a social necessity founded on nature, have been tempted perhaps to emphasise too exclusively the unmistakable influence of heredity; those to whom a different outlook is natural have wished to believe, not, of course, that all are born equal as the eighteenth century philosophers declaimed, but that in favourable environments individuals tend to display greater equality of capacity.

The purpose of this paper is to present an objective decision-making framework and conduct a benchmarking study in the air cargo industry.

The decision-making framework and benchmarking methodology evaluates the aircraft value for money (VfM) as a benefit-to-cost ratio calculated adopting a measure of relative efficiency. This efficiency score is measured as a comprehensive efficiency index obtained by combining several efficiency scores calculated by implementing four data envelopment analysis (DEA) models.

The framework is used to carry on a benchmarking study in the air cargo industry on a sample of 27 airplanes. The average VfM is 67.04 percent, with measurements between 39.96 and 116.03 percent. Only three airplanes achieve full VfM and behave as benchmarks to the remaining airplanes. Boeing B727-200 is a broad player in the market. Some old cargo models (DC 9-30F) deliver the same amount of VfM as more recent aircraft models (i.e. MD-11F and A300-600F).

The decision-making framework and benchmarking methodology can usefully support managers to make sound decisions and plans. Even though DEA generates attributes weights to different alternatives that are independent of the buyer preferences, the framework flexibility allows introducing a weighting scheme to take into account the managers preferences for certain aircraft performance/functional features. It can easily include new functional/performance measurements and adapt the VfM measurement to the particular economic context, strategy, and business model of the airlines, or be transferred to different industries.

The framework combines technical, functional performance, and economic cost measurements to get a unique efficiency index to evaluate the airplane VfM.

This paper aims to examine whether the cultural distance between an international audit firm and target audit clients in emerging countries is associated with auditor choice decisions.

Based on a sample of 104,699 firm-year observations from 20 countries over 2009–2020, logit regression analysis is used to investigate the research questions.

The authors find strong evidence that cultural distance affects the auditor selection decision. The results suggest Big N auditors are more likely to be chosen by target audit clients in emerging countries with less cultural distance. In other words, target audit clients in emerging countries prefer to choose international audit firms whose cultural characteristics are similar. Moreover, results from two-stage least squares regression further suggest that the observed effect of cultural distance on auditor choice is unlikely to be driven by potential endogeneity.

The auditor choice is limited to companies hiring Big N auditors; the authors exclude any switches to non-Big N auditors or switches between Big N auditors. The study also suffers from the concerns about methodological and conceptual criticism that most studies about national culture have to deal with. Finally, through this paper, the authors carry out the auditor selection process from the target audit clients’ side; the authors do not discuss the supply side of the process.

The authors contribute to the audit choice literature by providing evidence that the cultural distance between the countries of audit firms and target audit clients plays a role in the auditor choice decision. The study complements the prior auditor choice literature, focusing primarily on Western economies, by structuring the sample scope to emerging market economies.

The purpose of this study is to examine the association between audit committee expertise and asymmetric information in the US equity market.

The authors use measures of information asymmetry for 705 US firms (5,260 firm-year observations) over the period from 2007 to 2018, and use the theory of expertise (Ericsson and Smith, 1991) to examine the association between audit committee financial expertise and information asymmetry. The authors use multiple econometric approaches such as firm fixed-effect regression and two-stage ordinary least squares regression to control for possible endogeneity and reverse causality and find that the results remain the same.

The authors find that the existence of an audit committee with financial expertise is negatively and significantly associated with information asymmetry. The authors further provide empirical evidence through which audit committee financial expertise affects the firm’s informational environment. Additional analysis supports the argument that the audit committee’s financial expertise enhances the firm’s informational environment by increasing (decreasing) analyst following (dispersion).

One limitation to consider, like most studies on audit committees, is that the authors do not examine the actual role performed by the audit committee. The authors focus on the characteristics stipulated by the Sarbanes–Oxley Act 2002 and stock exchange rules regarding the financial expertise of audit committee members only.

This study is useful to policy makers, standard setters, investors, activists, managers, lenders and various stakeholders who rely on the financial statements of firms with an expert audit committee on board. The outcome of this study promotes recruiting audit committees with financial expertise due to the assumed benefits of this trait to the US firm.

The results of this study are not event-dependent and therefore have persistent effects, which is important to the evaluation of the usefulness of a regulation. This study promotes recruiting audit committees with financial expertise on boards because of the assumed benefits to the firm and investors.

This study is the first to document that financial expertise of audit committee characteristics is not only negatively related to the magnitude of information asymmetry but also driven by the financial expertise of audit committee members rather than chairs.