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Article
Publication date: 25 January 2024

Ferdy van Beest and Robert Pinsker

The purpose of this study is to construct and test a new measure of auditor orientation using two audit quality-related tasks.

Abstract

Purpose

The purpose of this study is to construct and test a new measure of auditor orientation using two audit quality-related tasks.

Design/methodology/approach

The sample consists of 66 Dutch and US graduate auditing students. Participants complete two tasks: one involving a lease classification and another, supplemental experiment involving a contingent liability judgment. The purpose is to construct a new measure for rules-based/ principles-based orientation. Rigorous, psychometric testing confirms that parts of tolerance for ambiguity (TOA) and need for cognition (NFC), together, form a new construct the authors identify as auditor orientation. The authors next conduct a main and supplemental experiment with novice auditor participants from both the USA and the Netherlands.

Findings

The authors begin with rigorous, psychometric testing using participants from the USA and the Netherlands. The resulting 10-item scale combines parts of TOA and NFC to reflect auditor orientation. The common themes across scale items are high (low) adaptability to complexity and a substance-over-form (form-over-substance) preference for principles-oriented (PO) (rules-oriented [RO]) auditors. Conducting two experiments, results from two distinct tasks confirm our research question; novice auditors classified as RO (PO) are more (less) likely to recommend a more aggressive/client-favorable disclosure judgment.

Originality/value

Auditor orientation (i.e. rules or principles) has a significant impact on the application of rules-based or principles-based standards. How the standards are applied, therefore, influences auditor decision-making and thus audit quality. However, there is a paucity of auditor orientation research to date, including a validated measure. The study contributes a new measure for future research in the related accounting standards and audit quality literatures, while also identifying a potentially important construct in auditor training.

Open Access
Article
Publication date: 13 March 2024

Keanu Telles

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…

Abstract

Purpose

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

Design/methodology/approach

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

Findings

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

Originality/value

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 20 December 2023

David Amani

This study aims to develop and test a research model that explores the empirical relationship between consumer religiosity, brand love and consumer forgiveness. Its objective was…

Abstract

Purpose

This study aims to develop and test a research model that explores the empirical relationship between consumer religiosity, brand love and consumer forgiveness. Its objective was to enhance our understanding of the mechanisms that can influence consumers to extend forgiveness to brands in the context of Islamic banking in Tanzania.

Design/methodology/approach

The study used a quantitative cross-sectional survey design to gather data from 399 respondents in the Dodoma and Dar-es-salaam regions of Tanzania. A structured questionnaire was used to collect the data, which were subsequently analyzed using structural equation modeling (SEM) with AMOS 21.

Findings

The study’s findings revealed that consumer forgiveness is influenced by the level of brand love at an individual level. Additionally, the findings indicate that in the context of Islamic banking, brand love is an emotional behavior that is influenced by the strength of religious beliefs, that is, consumer religiosity. Consequently, the findings highlighted the mediating role of brand love in the proposed relationship between consumer religiosity and consumer forgiveness.

Practical implications

The fact that Islamic banking is guided by Islamic laws (Sharia) and Islamic values means that competitiveness in this sector can be established by serving consumers who are well-versed in Islamic teachings and doctrines. Furthermore, customers who possess a strong understanding of Islamic teachings and doctrines can be an asset to Islamic banks, as they are less likely to switch banks due to service delivery issues.

Originality/value

This empirical study is one of the few attempts to explore the relationship between consumer religiosity, consumer forgiveness and brand love. It expands our understanding of consumer forgiveness by examining the influence of deontological norms (applying norms to assess Islamic banking practices) and teleological evaluation (evaluating Islamic banking practices based on the overall balance of right and wrong expected to occur).

Details

Journal of Islamic Marketing, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 20 March 2024

Nisha, Neha Puri, Namita Rajput and Harjit Singh

The purpose of this study is to analyse and compile the literature on various option pricing models (OPM) or methodologies. The report highlights the gaps in the existing…

Abstract

Purpose

The purpose of this study is to analyse and compile the literature on various option pricing models (OPM) or methodologies. The report highlights the gaps in the existing literature review and builds recommendations for potential scholars interested in the subject area.

Design/methodology/approach

In this study, the researchers used a systematic literature review procedure to collect data from Scopus. Bibliometric and structured network analyses were used to examine the bibliometric properties of 864 research documents.

Findings

As per the findings of the study, publication in the field has been increasing at a rate of 6% on average. This study also includes a list of the most influential and productive researchers, frequently used keywords and primary publications in this subject area. In particular, Thematic map and Sankey’s diagram for conceptual structure and for intellectual structure co-citation analysis and bibliographic coupling were used.

Research limitations/implications

Based on the conclusion presented in this paper, there are several potential implications for research, practice and society.

Practical implications

This study provides useful insights for future research in the area of OPM in financial derivatives. Researchers can focus on impactful authors, significant work and productive countries and identify potential collaborators. The study also highlights the commonly used OPMs and emerging themes like machine learning and deep neural network models, which can inform practitioners about new developments in the field and guide the development of new models to address existing limitations.

Social implications

The accurate pricing of financial derivatives has significant implications for society, as it can impact the stability of financial markets and the wider economy. The findings of this study, which identify the most commonly used OPMs and emerging themes, can help improve the accuracy of pricing and risk management in the financial derivatives sector, which can ultimately benefit society as a whole.

Originality/value

It is possibly the initial effort to consolidate the literature on calibration on option price by evaluating and analysing alternative OPM applied by researchers to guide future research in the right direction.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 25 March 2024

Morten Jakobsen

The purpose of this paper is to gain insight into how management accountants can become relevant business partners out of respect for existing locally developed accounts of…

Abstract

Purpose

The purpose of this paper is to gain insight into how management accountants can become relevant business partners out of respect for existing locally developed accounts of economic performance for decision-making.

Design/methodology/approach

The paper is based on qualitative semi-structured interviews with local business actors, in this case, families from seven financially successful Danish dairy farms. The casework and the analysis have been informed by pragmatic constructivism.

Findings

The local business actors do not use the official accounting system for ongoing cost-management-related decision-making. Instead, they use several epistemic methods that include locally developed decision models, experiences, rules of thumb and intuition. The farmers use these vernacular accountings to compensate for the cost management illusion that the formal accounting system tends to create. What the study suggests is that when management accountants engage as business partners, they are likely to enter a space where accounting is already present.

Originality/value

This paper argues that local business actors practice epistemic methods where they develop and use vernacular accountings to support their managerial practice, also in the absence of a professional management accountant. These vernacular accountings may lead the local actors into an illusion because the vernacular accountings do not necessarily have an inherent economic logic and theoretical reliability. The role of the management accountant in such a setting is hence to understand, support and advance local epistemic methods. Becoming a business partner requires a combination of management accounting analytical skills and a sense of empathy and sensitivity regarding what is already at play and how this can become an object of discussion without violating the values of the other.

Details

Qualitative Research in Accounting & Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 21 April 2023

Nimruji Jammulamadaka

This study aims to explore the benefits of strategy as way-finding approach to strategic thinking suggested by Robert Chia for small community-based Southern NGOs. The purpose is…

Abstract

Purpose

This study aims to explore the benefits of strategy as way-finding approach to strategic thinking suggested by Robert Chia for small community-based Southern NGOs. The purpose is to find alternatives to the strategic planning (SP) approach.

Design/methodology/approach

The study adopts the perspective of phronesis (Flyvbjerg, 2006) using the case study of a 45-year-old NGO based in India and working for community development. The data has been collected for over more than 20 years. Qualitative analysis of the data has been done by focusing on the activities that were performed in keeping with the requirements of phronetic research.

Findings

The study finds that through way-finding approach to strategic thinking, a Southern NGO is able to manage and reduce its resource dependence while maintaining organizational autonomy and pursuing its vision. The approach avoids the pathologies produced through SP in such organisations.

Research limitations/implications

This study adds to empirical contexts in which strategy as way-finding may be practiced. This study explicitly shows how this may be very useful to smaller community-based Southern NGOs. This study also adds to the research on strategy as practice by showing its relevance in the NGO sector.

Practical implications

This study shows alternatives to NGOs that are reluctant to engage in SP. This study also shows how NGOs can benefit from the way-finding approach to strategic thinking to improve their community connect, autonomy and impact.

Social implications

This study provides alternatives to resisting the power asymmetry of the global North-South development agenda.

Originality/value

This study demonstrates the usefulness of the way-finding approach to strategy in the context of smaller Third-World NGOs and provides alternatives to SP.

Details

International Journal of Organizational Analysis, vol. 32 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 29 December 2023

Sita Mishra, Tapas Ranjan Moharana and Ravi Chatterjee

This research aims to examine how consumer minimalism (CM), self-conscious feelings (such as consumer guilt (CG) and consumer pride (CP)) and the inclination to use rental…

Abstract

Purpose

This research aims to examine how consumer minimalism (CM), self-conscious feelings (such as consumer guilt (CG) and consumer pride (CP)) and the inclination to use rental services interact. It also looks at how attitudes toward pro-environmental advertisements affect these relationships as a moderator, recognizing the importance of pro-environmental advertising in influencing consumer behavior.

Design/methodology/approach

This study employed a quantitative methodology to investigate the aforementioned associations. Survey questionnaires are used to collect data, which is then analyzed using AMOS 25 and Process Macro to generate meaningful insights.

Findings

The findings indicate that the willingness to use rental services is directly associated with CM, while self-conscious emotions (SCEs) play the role of a mediator in this relationship.

Research limitations/implications

It is essential to recognize the limitations of this study. There may be other variables at play, but the research focuses on SCEs (CG and CP) and their role as mediators. The findings must be interpreted based on the selected research methodology and sample size. Future research could investigate additional variables and enlarge the sample size to increase generalizability.

Practical implications

Targeted marketing can leverage CM, SCEs and willingness to use rental services. Recognizing the moderating effect of attitude toward pro-environmental advertisements can help create more effective campaigns promoting environmental behavior.

Originality/value

Underpinned by SCEs, the current study is one of the initial studies to explain how CM encourages responsible environmental behavior through access-based consumption models.

Article
Publication date: 23 September 2022

Visar Hoxha and Veli Lecaj

The purpose of this paper is to highlight the regulatory barriers to achieving sustainable buildings in Kosovo. The present paper focuses on regulatory barriers viewed from the…

Abstract

Purpose

The purpose of this paper is to highlight the regulatory barriers to achieving sustainable buildings in Kosovo. The present paper focuses on regulatory barriers viewed from the perspective of construction industry experts in achieving sustainable buildings.

Design/methodology/approach

The present study uses a qualitative research method and semi-structured interviews as a research instrument. The present study interviews around 20 experts in construction and property management, property development, spatial planning and energy management.

Findings

The study finds that Kosovo building laws and regulations provide for the materials assessment criteria, but the materials assessment criteria are only for mechanic strength. The study further finds that the sustainability concept is not included and incorporated in Kosovo's urban planning laws and regulations. The study also finds that despite specific clauses mentioning energy performance certificates in the Law on Energy Performance of Buildings in Kosovo, energy performance certificates appears to be not enforced and the nature of the barrier is more organizational rather than regulatory. Finally, the study finds that Kosovo laws are silent as far as green labeling of building materials is concerned.

Practical implications

The implication of the present finding is that policymakers in Kosovo not only should include clear sustainable materials assessment criteria in the law, but also enforce those criteria through testing and inspection mechanisms included in the law and implemented in practice through funding and organizational support. Nonetheless, policymakers in Kosovo should contemplate amending the urban planning laws in Kosovo and include both the term of sustainability at the planning level and conformity guidelines for sustainable design that can be done at the administrative directive level. Further, the clauses in the law do not suffice if the clauses are not accompanied by specific systemic and organizational support in the issuance of energy performance certificates. Policymakers in Kosovo should be proactive in designing clauses that specify green labeling standards for materials; however, these labeling standards should not adversely affect the cost of construction and reduce the demand for real estate.

Originality/value

The study is the first qualitative study about the perception of construction professionals in Kosovo, regarding the regulatory barriers of sustainable buildings in Kosovo.

Details

Property Management, vol. 42 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

Open Access
Article
Publication date: 13 December 2023

Oli Ahad Thakur, Matemilola Bolaji Tunde, Bany-Ariffin Amin Noordin, Md. Kausar Alam and Muhammad Agung Prabowo

This study empirically investigates the relationship between goodwill assets and capital structure (i.e. debt ratio) of firms and the moderating effect of financial market…

Abstract

Purpose

This study empirically investigates the relationship between goodwill assets and capital structure (i.e. debt ratio) of firms and the moderating effect of financial market development on the relationship between goodwill assets and capital structure.

Design/methodology/approach

This research applied a quantitative method. The article collects large samples of listed firms from 23 developing and nine developed countries and applied the panel data techniques. This research used firm-level data from the DataStream database for both developed and developing countries. The study uses 4,912 firm-level data from 23 developing countries and 4,303 firm-level data from nine developed countries.

Findings

The findings reveal a significant positive relationship between goodwill assets and capital structure in developing countries, but goodwill assets have a significant negative relationship with capital structure in developed countries. Moreover, financial market development positively moderates the relationship between goodwill assets and the capital structure of firms in developing countries. The results inform firm managers that goodwill assets serve as additional collateral to secure debt financing. Moreover, policymakers should formulate a debt market policy that recognizes goodwill assets as additional collateral for the purpose of obtaining debt capital.

Research limitations/implications

The study has several implications. First, goodwill assets are identified as a factor of capital structure in this study. Fixed assets have been identified as one of the drivers of capital structure in previous research, although goodwill assets are seldom included. Second, this article shows that along with demand-side determinants, supply-side determinants also play an important role in terms of the firms' choice about the capital structure. Therefore, firms should take both the demand-side and supply-side factors into consideration when sourcing for external financing (i.e. debt capital).

Originality/value

The study considered goodwill as a component of capital structure. The study analysis includes a large sample of enterprises, including 4,912 big firms from 23 developing countries and 4,303 large firms from nine industrialized or developed countries, which adds to the current capital structure information. Furthermore, a large sample size increases the results' robustness and generalizability.

Details

Journal of Economics, Finance and Administrative Science, vol. 29 no. 57
Type: Research Article
ISSN: 2077-1886

Keywords

Article
Publication date: 12 January 2024

Adel Ali Al-Qadasi

Institutional investors are major shareholders in publicly traded firms and play crucial roles in the financial and governance aspects of these firms. Despite their importance…

Abstract

Purpose

Institutional investors are major shareholders in publicly traded firms and play crucial roles in the financial and governance aspects of these firms. Despite their importance, little is known about their role in internal auditing. This study aims to fill this gap by investigating the relationship between institutional investors’ ownership and investment in the internal audit function (IAF).

Design/methodology/approach

The study uses ordinary least squares regressions with two-way cluster-robust standard errors (firm and year) to estimate the relationship between institutional investors’ ownership and investment in IAF for Malaysian listed firms between 2009 and 2020.

Findings

The findings show that companies with higher levels of institutional ownership invest more in IAF, suggesting that institutional investors can effectively monitor managers due to their large holdings. Moreover, both transient and dedicated institutional investors are more likely to invest in IAF.

Originality/value

The results highlight the importance of institutional investors as a significant determinant of investment in IAF, which can aid regulators and managers in understanding the institutional investors’ role in governing and optimizing the efficient use of a firm’s resources. The findings also provide insight into institutional investors’ behavior regarding monitoring systems, which may inspire regulators and policymakers to consider increasing institutional investors’ participation to enhance governance structures.

Details

Managerial Auditing Journal, vol. 39 no. 2
Type: Research Article
ISSN: 0268-6902

Keywords

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