Search results
1 – 10 of 19Mohammad Hossein Safarzadeh and Mohammad Amin Mohammadian
This study aims to examine the association between Iranian auditors' narcissism and the auditors' professional skepticism.
Abstract
Purpose
This study aims to examine the association between Iranian auditors' narcissism and the auditors' professional skepticism.
Design/methodology/approach
The authors' sample is comprised of 355 professional auditors working in the private and public sectors in Iranian firms in 2022. The authors use cross-sectional multivariate regression as the main methodology, along with the structural equation modeling (SEM) technique.
Findings
The authors find that a higher level of narcissism leads to a greater level of professional skepticism among auditors, which ultimately can enhance the quality of the audit process. The results provided via the robustness tests also supported this finding.
Originality/value
The authors' findings further the understanding of the role of narcissistic personality traits in improving professional skepticism among auditors of an Islamic and emerging country. In addition, audit firms and audit partners can also consider the findings of this study and enhance the effectiveness of audit processes by assigning appropriate employees with certain personalities to specific tasks.
Details
Keywords
Iryna Alves, Bruno Gregório and Sofia M. Lourenço
This study investigates theoretical relationships among personality characteristics, preferences for different types of rewards and the propensity to choose a job in auditing by…
Abstract
Purpose
This study investigates theoretical relationships among personality characteristics, preferences for different types of rewards and the propensity to choose a job in auditing by management-related higher education students. Specifically, the authors consider motivation, locus of control (internal and external) and self-efficacy (SE) as personality characteristics and financial, extrinsic, support and intrinsic as types of rewards.
Design/methodology/approach
Data were collected through a questionnaire targeted at management-related higher education students in Portugal. Partial least squares structural equation modelling was used to analyse the data.
Findings
The full sample results show that different types of motivation, locus of control and SE are related to different reward preferences. The authors also find a positive association between a preference for extrinsic rewards and the propensity to choose a job in auditing. Moreover, when the authors consider the role of working experience in the model, the authors find that the reward preferences that drive the choice of an auditing job differ according to that experience.
Originality/value
This study enriches the literature by assessing preferences for different types of rewards, considering multiple personality characteristics and a comprehensive set of rewards. Furthermore, the authors identify the reward preferences that drive the choice of an auditing career. This knowledge empowers auditing firms to devise recruitment strategies that resonate with candidates’ preferences, which boosts the capacity of these companies to attract new auditors.
Details
Keywords
Muni Kelly and Muni Kelly
The purpose of this study is to examine whether the gender of an audit engagement partner (EP) is associated with the quality of the EP’s audit output.
Abstract
Purpose
The purpose of this study is to examine whether the gender of an audit engagement partner (EP) is associated with the quality of the EP’s audit output.
Design/methodology/approach
This paper defines a low-quality EP as an EP who leads the audit of at least one client firm that subsequently restates its financial statements, while a high-quality EP is an EP that is not associated with any restatement. Using a sample of 6,082 observations from 2016 to 2020, the study estimates a logistic regression of EP quality on EP gender and control variables.
Findings
The results show that female EPs are more likely to be high-quality EPs. With an odds ratio of 1.25, the results imply that female EPs are 1.25 times more likely to be associated with higher-quality audits compared to male EPs.
Research limitations/implications
The results of this study imply that female EPs are more likely to perform high-quality audits, and it supports the assertion that EP gender plays a significant role in determining EP quality. Further studies may apply gender theory to investigate the behavior of female EPs.
Practical implications
The results show that female EPs are more likely to be high-quality EPs. With an odds ratio of 1.25, the results imply that female EPs are 1.25 times more likely to be associated with higher-quality audits compared to male EPs.
Originality/value
The results of this study should be of interest to stakeholders such as audit committees, regulators, investors and creditors, as they provide an indicator for assessing the quality of audits. Moreover, considering the EP’s important role in an audit, the current study extends the existing literature by providing evidence of a relationship between EP gender and EP quality.
Details
Keywords
Md Jahidur Rahman, Hongtao Zhu and Sihe Chen
This study aims to investigate the relationship between corporate social responsibility (CSR) and financial distress and the moderating effect of firm characteristics, auditor…
Abstract
Purpose
This study aims to investigate the relationship between corporate social responsibility (CSR) and financial distress and the moderating effect of firm characteristics, auditor characteristics and the Coronavirus disease 2019 (Covid-19) in China.
Design/methodology/approach
The research question is empirically examined on the basis of a data set of 1,257 Chinese-listed firms from 2011 to 2021. The dependent variable is financial distress risk, which is measured mainly by Z-score. CSR score is used as a proxy for CSR. Propensity score matching, two-stage least square and generalized method of moments are adopted to mitigate the potential endogeneity issue.
Findings
This study reveals that CSR can reduce financial distress. Specifically, results show an inverse relationship between CSR and financial distress, more significantly in non-state-owned enterprises, firms with non-BigN auditor and during Covid-19. The results are consistent and robust to endogeneity tests and sensitivity analyses.
Originality/value
This study enriches the literature on CSR and financial distress, resulting in a more attractive corporate environment, improved financial stability and more crisis-resistant economies in China.
Details
Keywords
Dwi Marlina Wijayanti, Yayu Putri Senjani and Wilda Farah
This study aims to explore personal and organizational factors in mitigating fraud intention through machiavellian personality, altruistic personality, religiousity…
Abstract
Purpose
This study aims to explore personal and organizational factors in mitigating fraud intention through machiavellian personality, altruistic personality, religiousity, whistleblowing system, and accounting firm size. Companies will suffer greater losses if they cannot prevent fraudulent practices. The fraud hexagon theory is considered effective in detecting the possibility of fraud and the tendency of fraud motivated by personal and organizational factors. Therefore, the researchers examined several factors, including Machiavellian, altruism, religiosity, whistleblowing system and accounting firm size in mitigating fraud intention.
Design/methodology/approach
This study used a self-administered survey of accountants in Indonesia. The accountants were selected as the sample because the accounting profession has considerable potential in committing fraud. To avoid common method bias, the authors performed ex ante and ex post on the questionnaire. This research model was tested using structural equation modeling-partial least square.
Findings
The results revealed that personal factors in the form of Machiavellian, altruism and religiosity had a direct impact on decreasing fraud intention. In addition, whistleblowing system and accounting firm size were able to promote the effectiveness of fraud mitigation.
Research limitations/implications
This study uses one profession, namely, accountants, so it requires further research to see the similarity of results in other professions.
Practical implications
The results contribute to managerial decision-making. Companies should include personal tests during employee recruitment because personal factors are the key to determining individual fraud behavior.
Social implications
Combining personal factors and organizational factors can promote the success of the internal control system, so that individuals are encouraged to do ethical things.
Originality/value
This study combines personal and organizational factors in mitigating fraud, so as to know accurately which factors are most capable of mitigating fraud.
Details
Keywords
Enrico Supino and Maurizio Marano
This article explores the value creation process from player sales in football to understand if the related capital gains correspond to significant increases in the stock value of…
Abstract
Purpose
This article explores the value creation process from player sales in football to understand if the related capital gains correspond to significant increases in the stock value of selling companies. In addition, it aims to detect any potential drivers for higher (or slower) abnormal stock returns.
Design/methodology/approach
The authors analyze all the capital gains of the Italian and Portuguese listed football companies (the only ones for which, based on their annual reports, it was possible to trace the net book value for each player sold and, consequently, if any, the related capital gain) from 2012 to 2020 and use event study analysis to calculate the abnormal returns of the football companies' stocks. Moreover, the authors use a multiple linear regression model to identify the factors affecting investors' reactions and value creation process intensity.
Findings
The results show that, on average, the capital gains from player transfers in football are positive income components and produce statistically significant higher abnormal returns. In addition, the authors identified some relevant drivers related to their intensity which could guide the choices of corporate executives regarding future disposals of the multi-year performance rights of players in the roster.
Research limitations/implications
This study considers only Italian and Portuguese football listed companies. It would be helpful to consider some of the companies from other countries which are also outstanding from the sports perspective, but, in practice, it was not possible due to the impossibility to trace the net book value of the single footballers sold in those clubs' public financial disclosure.
Practical implications
The value relevance of the capital gains from player trading activities should increase their importance, creating cascade effects on several activities generating value for football clubs (youth sector management, player scouting, technical improvement of the players). In addition, financial data show that the capital gains from player transfers are a basic income of European football clubs nowadays. Their executives consider these operations recurrent and continually search for more valuable transfers. Hence, it is reasonable to think that they (will) choose the players to sell considering both sports and financial aspects.
Originality/value
To the best of the authors' knowledge, this is the first study exploring the effects of capital gains from player trading activities on professional football clubs' stock value. The results obtained are even more relevant if one considers the importance these income components have in the profit formula of professional football clubs nowadays, also because of the negative repercussions caused by the recent COVID-19 pandemic.
Details
Keywords
Pilar Mosquera and Maria Eduarda Soares
Work overload has become a relevant issue in the Information Technology (IT) industry, with negative effects for individuals and organizations alike. This study aims to analyse…
Abstract
Purpose
Work overload has become a relevant issue in the Information Technology (IT) industry, with negative effects for individuals and organizations alike. This study aims to analyse the role of personal resources in a broad model regarding the effects of work overload on performance and well-being for the particular case of IT professionals. Considering the specificities of the IT industry, three personal resources were included in this study: one stable personality variable (conscientiousness) and two more malleable variables (work-life balance and psychological detachment).
Design/methodology/approach
To test the model, the authors use a sample of 144 IT Portuguese professionals. The authors collected data through an online questionnaire shared in social networks and IT social network communities. The authors use partial least squares (PLS) for data analysis.
Findings
The results show that work overload negatively impacts on employees’ life satisfaction, psychological detachment, work-life balance and task performance. Conscientiousness is positively related with two positive outcomes: task performance and life satisfaction. Work-life balance has a mediating effect in the relationship between work overload and life satisfaction.
Practical implications
These findings emphasize the need to promote conscientiousness in IT professionals, as well as reduce workload and promote family-friendly working environments to foster work-life balance and life satisfaction.
Originality/value
By testing this model, the authors aim to contribute to the current knowledge on the role of personal resources in the Job Demands-Resources model, which is still unclear and under-researched.
Details
Keywords
The purpose of this research is to examine the impact of audit committee financial experts on the risk of financial corruption in public companies.
Abstract
Purpose
The purpose of this research is to examine the impact of audit committee financial experts on the risk of financial corruption in public companies.
Design/methodology/approach
A time-lagged, matched-pairs sample of 352 corporations was utilized to test the study's hypotheses (176 financially corrupt firms plus 176 compliant firms). To uncover financially corrupt firms, 2,895 Accounting and Auditing Enforcement Releases from the Securities and Exchange Commission were thoroughly evaluated.
Findings
The results show that financial experts on audit committees generally increased financial corruption. However, the impact was reversed when audit committees had three or more financial experts, showing that having at least three financial experts reduced financial corruption.
Originality/value
The study's findings call into question the long-held practice of appointing at least one financial expert to audit committees. This study offers a novel approach to improve corporate oversight and reduce financial corruption by having at least three financial experts on audit committees.
Details
Keywords
Abby Griffin and Rachel Worthington
Social psychology has focused on an individual’s reaction to emergencies and witnessing a crime, which has developed theories of bystander intervention and bystander apathy. The…
Abstract
Purpose
Social psychology has focused on an individual’s reaction to emergencies and witnessing a crime, which has developed theories of bystander intervention and bystander apathy. The purpose of this study is to explore why people choose to intervene when they are a bystander to intimate partner violence (IPV) and the psychological processes that underpin this. Decision-making was explored drawing on literature from the whistleblowing field.
Design/methodology/approach
Through a mixed methods epistemology, this study explored factors that explained intervening behaviour concerning IPV. In total, 212 participants who had known someone who was a victim of IPV were recruited from the general population.
Findings
A logistic regression model indicated that conscientiousness and fairness were found to predict intervening behaviour. Being a child witness was found to predict non-intervening behaviour. Qualitative analysis revealed three types of bystander apathy: those who lacked capability as they were children; those who were indifferent and did not see it as their place to intervene; and those who wanted to intervene but did not as they were frightened of exacerbating the situation.
Practical implications
IPV has significant physical and psychological effects on victims. However, the choice to intervene is complex, and bystander intervention in this study was also associated in some cases with not only a continuation of the IPV behaviour towards the victim but also aggression and physical violence towards the bystander (whistleblower retaliation). Based on the findings of this study, recommendations are made for how to support bystanders and victims of IPV.
Originality/value
This study involved participants with real-life experience of being a bystander to IPV. The mixed methodology provided an insight into the psychological processes, which underpin bystander experiences of IPV and maps onto the literature in relation to whistleblowing.
Details
Keywords
Valerie A. Chambers, Matthew J. Hayes and Philip M.J. Reckers
Counterproductive work behavior (CWB) imposes significant costs on organizations, thus antecedents of CWB are of particular interest to both practitioners and academics. The…
Abstract
Purpose
Counterproductive work behavior (CWB) imposes significant costs on organizations, thus antecedents of CWB are of particular interest to both practitioners and academics. The authors examine how one’s own narcissism interacts with co-worker narcissism to influence willingness to engage in retaliatory CWB against a co-worker.
Design/methodology/approach
The data for this study were obtained from Amazon Mechanical Turk participants and Master of Business Administration students, representing a cross-section of employee representatives.
Findings
The authors find that employees expect narcissistic co-workers to engage in continuing future CWB and this, in turn, increases employees' willingness to engage in retaliatory CWB. That is, non-narcissistic employees are provoked to engage in organizationally-destructive behaviors by peers perceived as narcissists. This affect is attenuated by the employee’s own narcissism. Relative to non-narcissists, narcissistic employees find a narcissistic co-worker more likeable, which reduces their willingness to engage in retaliatory CWB against the co-worker.
Practical implications
For corporations and HR managers, this study demonstrates the caution necessary when considering hiring and operational practices. Specifically, non-narcissists demonstrate increased willingness to engage in organizationally-destructive behaviors after interpersonal conflict with a narcissistic co-worker.
Originality/value
The authors extend prior research about interpersonal drivers of CWB, which primarily considered superior-subordinate dyad, by examining the joint effects of individual and co-worker narcissism in peer-to-peer relationships.
Details