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Article
Publication date: 15 June 2022

Chia-Ling Chao

Prior research documents that chief executive officer (CEO) characteristics and succession planning affect audit fees. However, whether new CEOs’ media coverage influences audit…

Abstract

Purpose

Prior research documents that chief executive officer (CEO) characteristics and succession planning affect audit fees. However, whether new CEOs’ media coverage influences audit fees remains unexplored. This study aims to fill this gap by examining whether auditors price media coverage of the new CEO.

Design/methodology/approach

The sample comprises 89 US listed firms with CEO turnover over the period 2012–2016, resulting in a total of 445 firm-year observations. Panel data models are used in the analyses.

Findings

The results show that audit fees are higher for firms that hire a new CEO covered with more negative media tone. This study further documents that CEO media tone is determined independently of audit pricing, but that the extent of audit fees is positively related to a new CEO covered with more negative media tone, consistent with a sequential media-tone-then-audit-pricing process.

Research limitations/implications

The results of this study should motivate future auditing research to consider the media as an important source of external information. The findings are also relevant to stakeholders who are interested in understanding the relationship between auditors and their clients’ CEOs.

Originality/value

This study contributes to the audit fee literature by providing new evidence that auditors view their clients’ CEO with a negative media tone as requiring greater audit effort and leading to higher risks, due to greater public and regulators’ attention conveyed in news coverage. Moreover, the finding of this study that audit fees are higher for firms that hire a new CEO covered with more negative media tone is novel, and extends Joe’s (2003) empirical finding that negative press coverage increases auditors’ perception of risk.

Details

Managerial Auditing Journal, vol. 37 no. 6
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 July 1999

Jon‐Chao Hong and Chia‐Ling Kuo

Businesses have to go through constant innovations on management, and innovation principles must be acquired through constant learning. Learning principles are realized through…

7868

Abstract

Businesses have to go through constant innovations on management, and innovation principles must be acquired through constant learning. Learning principles are realized through knowledge and wisdom sharing with colleagues, clients, and others in such learning activities as instruction, sharing, and self‐study. Such knowledge and wisdom sharing activities include study circles, on the job training, and technology exhibitions. Different learning activities such as survival learning, benchmark learning and leading learning are subject to different sharing mechanisms. Moreover the mastery of each sharing function is fundamental to enhancing the performance of knowledge management in a learning organization.

Details

Leadership & Organization Development Journal, vol. 20 no. 4
Type: Research Article
ISSN: 0143-7739

Keywords

Article
Publication date: 1 March 2000

Thomas N. Garavan, Patrick Gunnigle and Michael Morley

Addresses some of the key debates within the HRD literature and considers the extent to which HRD can be described as a field of study. The paper addresses the issues raised in…

6312

Abstract

Addresses some of the key debates within the HRD literature and considers the extent to which HRD can be described as a field of study. The paper addresses the issues raised in the contributions that make up this special issue and identifies a broad range of methodologies and use of research methods. It argues that all of the contributions fit into at least one theoretical perspective: capabilities, psychological contacts and the learning organization/organizational learning. The paper concludes with a consideration of the prescriptions which the perspectives advocate for HRD in organizations.

Details

Journal of European Industrial Training, vol. 24 no. 2/3/4
Type: Research Article
ISSN: 0309-0590

Keywords

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