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1 – 10 of over 4000Thanyaluk Vichitsarawong and Sompong Pornupatham
– The purpose of this paper is to examine the association between audit opinion and earnings persistence of listed companies in Thailand from 2004 to 2008.
Abstract
Purpose
The purpose of this paper is to examine the association between audit opinion and earnings persistence of listed companies in Thailand from 2004 to 2008.
Design/methodology/approach
We use archival data and hand collected data in regression analysis. Content analysis was used to perform decomposition analysis of audit modifications.
Findings
Firms receiving modified opinions have lower earnings persistence than firms receiving unqualified opinions, and the degree of earnings persistence varies among types of modifications. We find that firms with a qualified opinion or a disclaimer have lower earnings persistence than firms receiving an unqualified opinion with an emphasis of matter (UEM). However, we find no difference in earnings persistence between firms receiving a qualification and a disclaimer. Content analysis reveals that there is information in certain types of modified opinions with respect to earnings quality. Firms receiving a scope limitation qualification and a going concern disclaimer have lower earnings persistence than firms receiving an UEM due to going concern issues.
Research limitations/implications
Audit modifications reflect different degrees of problematic issues in clients’ firms, resulting in different impacts on earnings persistence. Thus, policymakers and regulators should emphasize the importance of using auditors’ reports. Strengthened enforcement by regulators makes individual auditors more aware of reputation risk and more likely to express appropriate audit opinions.
Originality/value
We examine a broader set of modified audit opinions than those used in prior research. Our study offers the opportunity to examine the association between earnings persistence and different types of modified opinions, especially a disclaimer, which has been rarely found in prior research.
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Christine Naaman, Karen Naaman and Najib Sahyoun
This paper aims to investigate the determinants and consequences of using disclaimer language in the banks’ audit committee (AC) reports. This study aims to analyze the factors…
Abstract
Purpose
This paper aims to investigate the determinants and consequences of using disclaimer language in the banks’ audit committee (AC) reports. This study aims to analyze the factors tempting AC members of banks to disclose disclaimer language in the AC reports and the effect of such language on the cost of equity.
Design/methodology/approach
The data cover the period from 2006 to 2015 and considers the top US bank holding companies. Voluntary disclosure in the AC report is manually coded by using a scoring grid. Multivariate regression analysis is mainly used in the study.
Findings
The findings suggest that the ACs are using the disclaimer language to protect themselves when disclosing a high level of voluntary information that describes their oversight activities or to reduce their liability exposure due to lower financial reporting quality. The findings also reveal that investors are requiring a higher return on their investments whenever ACs use disclaimer language in their reports.
Originality/value
The AC report provides useful information to shareholders who evaluate the AC’s performance and accordingly vote for or against AC members on annual basis. The paper sheds lights on the motives and consequences of disclaimer language in the ACs report. Thus, the study benefits shareholders by providing empirical evidence in regard to the usage of disclaimer language. Also, the findings benefit industry, corporate governance organizations, standard setters and regulators that analyze AC disclosures and issue recommendations or new standards for improving those disclosures.
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Caleb T. Carr, Rebecca A. Hayes and Cameron W. Piercy
This study empirically assesses the perceptions the public has of employees and their organization following a [re]tweet, and the additional potential ameliorating effect of a…
Abstract
Purpose
This study empirically assesses the perceptions the public has of employees and their organization following a [re]tweet, and the additional potential ameliorating effect of a disclaimer distancing the organization from the individual employee's social media presence.
Design/methodology/approach
A fully crossed 2 (disclaimer vs. no disclaimer) × 2 (positive vs. negative valence post) × 2 (post vs. retweet) experiment exposed participants (N = 173) to an employee's personal tweet. Resultant perceptions of both the poster (i.e., goodwill) and the poster's organization (i.e., organizational reputation) were analyzed using planned contrast analyses.
Findings
Findings reveal audiences form impressions of individuals based on both tweeted and retweeted content. Perceptions of both the poster's goodwill and the poster's organization were commensurate with the valence of the poster's tweets, stronger when posts were original tweets rather than retweets, and there was a significant interaction effect between valence and [re]tweet. Disclaimers did not significantly affect perceptions, suggesting employers may be better served by asking employees to omit reference to their employer on their personal social media accounts.
Originality/value
This research contributes to understanding how employee and organizational reputation are affected by employees' personal social media content. Results suggest that even when a disclaimer explicitly seeks to distance an employee from the organization, audiences still see the employee as an informal brand ambassadors of their organization.
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The 2016 presidential campaign in the United States was marked by widespread interference by Russian agents. The interference was especially prominent in digital media. This…
Abstract
The 2016 presidential campaign in the United States was marked by widespread interference by Russian agents. The interference was especially prominent in digital media. This indicates the possible need for better regulation. To investigate the problem, I examined the legal and regulatory history of US Federal campaign regulation. While these regulations require various disclosures and disclaimers, and set some spending limits, they do not cover advertising messages. More to the point, the disclosure and disclaimer requirements for digital ads are limited and easily circumvented. Possibly because of this, political advertising in digital media has increased dramatically in recent years. I examine current proposals for improved regulation and make recommendations for changes in Federal regulation and in oversight by nonpartisan groups.
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Michael E. Roloff, Gaylen D. Paulson and Jennifer Vollbrecht
Social systems devise rules for member conduct and often specify punitive action for nonconformity. However, confronting and signaling the intent to punish a rule violator may be…
Abstract
Social systems devise rules for member conduct and often specify punitive action for nonconformity. However, confronting and signaling the intent to punish a rule violator may be an inherently face‐threatening and volatile situation. As such, in this paper we seek to add to the research aimed at minimizing the negative effects of confrontation. We conducted an experiment to examine the impact of linguistic cues and coercive potential on message categorization and on receiver perceptions of threat and face‐sensitivity. Results suggest that threats might be considered a special class of warnings, distinguishable by a speaker‐based locus of punishment Locus of punishment did not, however, impact perceptions of having been warned. These findings thus call into question the assumed parallelism between researcher conceptualizations of threats and warnings and those of typical language‐users. Additionally, targets reported feeling less threatened and perceived more face‐sensitivity, in cases when the speaker was not the source of punishment. Perceptions of threat were decreased when disclaimers were employed and where the message originated from a peer rather than an authority. Power of speech had an impact in ambiguous situations. Implications for researchers and practitioners are discussed.
Oluwole Alfred Olatunji and Abiola Akanmu
Building information modelling (BIM) offers a new direction of project implementation. It promotes integration of multiple lifecycle stages as well as multidisciplinary…
Abstract
Purpose
Building information modelling (BIM) offers a new direction of project implementation. It promotes integration of multiple lifecycle stages as well as multidisciplinary integration; whereas conventional approaches are primed on fragmentation. The purpose of this paper is to add to existing debates on the relationship between the rationality of the legal structures underlying fragmented project delivery and BIM’s ability to successfully foster integration across different lifecycle stages. A step further from extant arguments on whether BIM could be sufficiently serviced by the same legal provisions that had serviced fragmented relationships, the study opens up some new fronts regarding the consequences of shared trusts and reciprocity in an integrated project platform.
Design/methodology/approach
In addition to a deep analysis of traditional literature on BIM and project management, the study draws its strength from two recent court cases on the limitations of disclaimers against breaches. It also targets court decisions on consequential loss and the duty of care to explain project team’s liabilities when BIM could not live to its theorized promises.
Findings
The study shows that disclaimers are a weak protection against liabilities. As BIM offers a dynamic project environment, the study relies on decided cases to show that duty of care to a project (and its owners) is not entirely representable by prototype contract language. More importantly, the study concludes that the applications of BIM to facilities management are better supported on BIM’s new dimension of multidisciplinary integration, rather than a mere coalescing of deliverables across different lifecycle fragments.
Originality/value
This work presents a novel approach to the debate on the potentiality of BIM to drive project success. It adds to the growing discourse on the legal implications of BIM by considering the potential of digital models as a valid and admissible contract instrument.
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Since its creation in 2005, YouTube has become a site for significant community building, as the platform and its affordances encourage active audiences. One creator in the…
Abstract
Since its creation in 2005, YouTube has become a site for significant community building, as the platform and its affordances encourage active audiences. One creator in the YouTube wellness space is Abbey Sharp, a registered dietitian who reviews ‘What I Eat in a Day’ videos of popular YouTube creators. Sharp’s videos follow the traditional ‘reaction video’ format; she’s positioned as both viewer and consumer, providing commentary on dietary choices and wellness claims. The author investigates Sharp’s role in the spread of wellness misinformation through a life narrative lens as she participates in the wellness community while actively combatting misinformation. Sharp utilises trends and platform affordances to act against health and wellness misinformation. Sharp’s reaction video format creates a collaborative space, where the original creator is taken out of the context of their video and edited into a space where they are critiqued through the lens of a ‘professional’ other. The author argues that Sharp’s health professional status (and reach of over 570,000 subscribers) provides legitimacy to her critique and consequently alters how wellness narratives on YouTube are consumed.
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Stephanie Y. Crawford and Catherine Leventis
The purpose of this article is to explore boundaries in marketing and science with respect to labeled claims of herbal products and other dietary supplements.
Abstract
Purpose
The purpose of this article is to explore boundaries in marketing and science with respect to labeled claims of herbal products and other dietary supplements.
Design/methodology/approach
Supplement manufacturers are allowed to include claims on product labels without meeting an acceptable substantiation standard, as long as such claims are accompanied by an FDA disclaimer statement. While manufacturers are prohibited (though the regulation is often violated) from making specific claims about prevention or treatment of disease, the implied associated health benefits of using dietary supplement products are usually clear from marketed claims. A case example on themes expressed in labeled structure‐function claims for ginkgo biloba is presented to illustrate the issues.
Findings
Marketing of product claims is controversial due to differing perspectives about the truthfulness of claimed health benefits and quality of information presented to consumers. Although dietary supplements could have pharmaceutical‐like properties, they are not required to demonstrate safety and efficacy before market availability. The US Food and Drug Administration (FDA) can take action only if supplements are shown to be unsafe after market introduction.
Practical implications
The need for consumer choice, meaningful information and free‐market access to dietary supplements must be balanced with the demands for truth‐in‐advertising and consumer protection from unreliable claims and adverse health events. Marketing and policy implications are described.
Originality/value
The outcome would help increase consumer confidence, while continuing to allow free‐market forces for the dietary supplement industry, to a large extent.
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Offers readers a broad overview of recent developments in the areaof professional negligence. Shows that in recent years there has been adramatic increase in the number of cases…
Abstract
Offers readers a broad overview of recent developments in the area of professional negligence. Shows that in recent years there has been a dramatic increase in the number of cases directed against surveyors and valuers for negligence. Details mortgage valuations and disclaimers and the bases for liability; the breach of the duty of care; and finally the negligent chattel valuation.
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Qianqun Ma, Jianan Zhou and Qi Wang
Using China’s key audit matters (KAMs) data, this study aims to examine whether negative press coverage alleviates boilerplate KAMs.
Abstract
Purpose
Using China’s key audit matters (KAMs) data, this study aims to examine whether negative press coverage alleviates boilerplate KAMs.
Design/methodology/approach
This study uses Levenshtein edit distance (LVD) to calculate the horizontal boilerplate of KAMs and investigates how boilerplate changes under different levels of the perceived legal risk.
Findings
The findings indicate that auditors of firms exposed to substantial negative press coverage will reduce the boilerplate of KAMs. This association is more significant for auditing firms with lower market share and client firms with higher financial distress. Additionally, the authors find that negative press coverage is more likely to alleviate the boilerplate disclosure of KAMs related to managers’ subjective estimation and material transactions and events. Furthermore, the association between negative press coverage and boilerplate KAMs varies with the source of negative news.
Originality/value
The findings suggest that upon exposure to negative press coverage, reducing the boilerplate of KAMs has a disclaimer effect for auditors.
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