Search results

21 – 30 of 104
Article
Publication date: 11 February 2020

Wahab Effiezal Aswadi Abdul, Wan Zurina Nik Abdul Majid, Iman Harymawan and Dian Agustia

The purchase of non-audit services from incumbent auditors has generated considerable attention. This study aims to examine the relationship between characteristics of non-audit…

Abstract

Purpose

The purchase of non-audit services from incumbent auditors has generated considerable attention. This study aims to examine the relationship between characteristics of non-audit services, namely, the recurrence and types of services, and accruals quality in Malaysia.

Design/methodology/approach

This study analyzed hand-collected audit and non-audit fees of 1,117 observations from Malaysian firms from 2009 to 2011. This study used descriptive analysis, univariate tests and multivariate regression to investigate the potential effect of non-audit services on accruals quality.

Findings

Non-audit services are associated with lower accruals quality. Recurring and non-recurring non-audit service fees are detrimental to the quality of accruals, as are all types of recurring non-audit services. Only non-recurring audit-related services decrease accruals quality. The results demonstrate that provisions of non-audit services create economic bonding, and thus a threat to auditor independence. Results remain robust with the inclusion of corporate governance and institutional variables.

Research limitations/implications

The sample period might represent a limitation as it only covers three years of data. This limitation is mainly because of the nature of data collection of the non-audit services fees.

Practical implications

The findings could suggest a refinement on the Malaysian Institute of Accountants (MIA) by-laws focusing on auditor independence, and it could assist other regulative bodies such as the Securities Commission, the stock exchange (Bursa Malaysia) in ensuring better governance on the provision of non-audit services.

Originality/value

This study is the first that provides evidence on the relationship between non-audit services, types, and recurring and non-recurring non-audit services and accruals quality in Malaysia.

Details

Pacific Accounting Review, vol. 32 no. 2
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 1 February 1981

IRENE ROBERTSON, PHIL MANCUSI‐UNGARO, RICK MCGEE and STEVE MELTON

Introduction In the last decade the problem of product liability has become one of the major concerns affecting industry, consumers and government. Product liability, which…

Abstract

Introduction In the last decade the problem of product liability has become one of the major concerns affecting industry, consumers and government. Product liability, which relates to the responsibility of a manufacturer to compensate a user who suffers injury from using his product, is not a new concept. King Hammurabi of Babylon instituted these two laws over 4,000 years ago:

Details

Studies in Economics and Finance, vol. 5 no. 2
Type: Research Article
ISSN: 1086-7376

Article
Publication date: 10 November 2022

KoEun Park

This study examines the relation between pay inequalities in top management teams and how efficiently firms convey valuation-relevant information to investors. Given that reward…

Abstract

Purpose

This study examines the relation between pay inequalities in top management teams and how efficiently firms convey valuation-relevant information to investors. Given that reward comparisons with reference groups create feelings of inequity, top management team pay inequalities can impair the information environment. This manifests into lengthier or less readable financial reports.

Design/methodology/approach

This paper employs an ordinary least squares (OLS) regression model to test whether and how the pay distribution in the top management team is associated with the readability of the annual report. It also employs a two-stage least squares (2SLS) regression model to further address the endogeneity concern. Lastly, it conducts cross-sectional analyses to examine heterogeneity in the observed relation.

Findings

Using the intra-firm pay gap as a proxy for pay inequality and file size, Bog Index and Fog Index of the 10-K filings as a proxy for financial report readability, the author finds that firms with larger pay gaps exhibit lengthier or less readable 10-K filings. The main findings are robust to the use of an instrumental variable approach. She finds some evidence that the relation is less pronounced when pay gaps are justified by explicit legal authority of CEOs or high ability of CEOs. The main results are robust to considerations of alternative explanations.

Originality/value

This paper adds a new dimension to the debate on pay inequality by studying pay gaps in the top management team and financial report readability. The author's findings have important implications for executive compensation policies and for corporate disclosure policies.

Details

Managerial Finance, vol. 49 no. 5
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 January 1978

The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act…

1363

Abstract

The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act (which has been amended by the Sex Discrimination Act 1975) provides:

Details

Managerial Law, vol. 21 no. 1
Type: Research Article
ISSN: 0309-0558

Article
Publication date: 1 February 1978

The most obvious symptom of the most obvious trend in the building of new libraries is the fact that, as yet, no spade has entered the ground of the site on Euston Road, London…

Abstract

The most obvious symptom of the most obvious trend in the building of new libraries is the fact that, as yet, no spade has entered the ground of the site on Euston Road, London, upon which the new building for the British Library Reference Division has to be erected. Some twenty years of continued negotiation and discussion finally resulted in the choice of this site. The UK and much more of the world awaits with anticipation what could and should be the major building library of the twentieth century. The planning and design of a library building, however large or small, is, relatively speaking, a major operation, and deserves time, care and patience if the best results are to be produced.

Details

Library Review, vol. 27 no. 2
Type: Research Article
ISSN: 0024-2535

Article
Publication date: 23 July 2019

Alonso Moreno, Michael John Jones and Martin Quinn

The purpose of this paper is to longitudinally analyse the evolution of multiple narrative textual characteristics in the chairman’s statements of Guinness from 1948 to 1996, with…

1268

Abstract

Purpose

The purpose of this paper is to longitudinally analyse the evolution of multiple narrative textual characteristics in the chairman’s statements of Guinness from 1948 to 1996, with the aim of studying impression management influences. It attempts to contribute insights on impression management over time.

Design/methodology/approach

The paper attempts to contribute to external accounting communication literature, by building on the socio-psychological tradition within the functionalist-behavioural transmission perspective. The paper analyses multiple textual characteristics (positive, negative, tentative, future and external references, length, numeric references and first person pronouns) over 49 years and their potential relationship to profitability. Other possible disclosure drivers are also controlled.

Findings

The findings show that Guinness consistently used qualitative textual characteristics with a self-serving bias, but did not use those with a more quantitative character. Continual profits achieved by the company, and the high corporate/personal reputation of the company/chairpersons, inter alia, may well explain limited evidence of impression management associated with quantitative textual characteristics. The context appears related to the evolution of the broad communication pattern.

Practical implications

Impression management is likely to be present in some form in corporate disclosures of most companies, not only those companies with losses. If successful, financial reporting quality may be undermined and capital misallocations may result. Companies with a high public exposure such as those with a high reputation or profitability may use impression management in a different way.

Originality/value

Studies analysing multiple textual characteristics in corporate narratives tend to focus on different companies in a single year, or in two consecutive years. This study analyses multiple textual characteristics over many consecutive years. It also gives an original historical perspective, by studying how impression management relates to its context, as demonstrated by a unique data set. In addition, by using the same company, the possibility that different corporate characteristics between companies will affect results is removed. Moreover, Guinness, a well-known international company, was somewhat unique as it achieved continual profits.

Details

Accounting, Auditing & Accountability Journal, vol. 32 no. 6
Type: Research Article
ISSN: 0951-3574

Keywords

Abstract

Details

Further Documents from the History of Economic Thought
Type: Book
ISBN: 978-1-84950-493-5

Article
Publication date: 1 November 1917

The unsatisfactory state of the law with regard to prosecutions for impoverished milk has been further exemplified in a series of prosecutions at Oldham. Three farmers were…

Abstract

The unsatisfactory state of the law with regard to prosecutions for impoverished milk has been further exemplified in a series of prosecutions at Oldham. Three farmers were summoned for having sold milk “ not of the nature, substance and quality demanded by the purchaser,” and the evidence produced showed that the milk in each case was not only deficient as compared with the standard set by the Board of Agriculture, but even more deficient when compared with mixed samples taken at the farm. The Deputy Town Clerk, who conducted the prosecution, pointed out that the case of Wilkinson v. Clark clearly showed that the Inspectors were justified in going to the farm for a second sample, if the second was comparable with the first, and were entitled to rely on the Public Analyst's certificate for both samples. He argued that, in view of the enhanced price of milk, it was very necessary that the purchaser should be adequately protected and that he should obtain what he paid for — pure unadulterated milk. The defence in the first case was a denial of the milk having been tampered with, it being sold “ as it came from the cow.” Results of experiments at the Yorkshire College for Agricultural Education were quoted to show that wide variations in the quality of the milk might occur for which the farmer ought not to be held responsible. In the present case it was admitted that one of the cows was not milking satisfactorily, and had a “ hard udder.” The milk from this cow when examined closely, was stated in the defendant's evidence to be “ more like water.” This had only been found out on the morning when the first sample had gone into the churn for sale. The Bench, after consultation, expressed themselves satisfied that the milk had not been tampered with, and dismissed the summons.

Details

British Food Journal, vol. 19 no. 11
Type: Research Article
ISSN: 0007-070X

Abstract

Details

Documents on and from the History of Economic Thought and Methodology
Type: Book
ISBN: 978-1-84663-909-8

Article
Publication date: 1 December 1964

THE re‐organisation of local government in Greater London and the resultant amalgamation of library authorities is viewed by many with considerable misgivings. The upheaval of…

Abstract

THE re‐organisation of local government in Greater London and the resultant amalgamation of library authorities is viewed by many with considerable misgivings. The upheaval of staff, the loss of status for some senior officers, the general uncertainty for the future—these are very real consequences of the Act and they cannot be ignored. Many chief librarians will see the work of a lifetime, perhaps spent in building up a comprehensive and unified system, made virtually meaningless overnight.

Details

New Library World, vol. 66 no. 7
Type: Research Article
ISSN: 0307-4803

21 – 30 of 104