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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.

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.

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.

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.

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.

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 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.

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.

Using China’s key audit matters (KAMs) data, this study aims to examine whether negative press coverage alleviates boilerplate KAMs.

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.

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.

The findings suggest that upon exposure to negative press coverage, reducing the boilerplate of KAMs has a disclaimer effect for auditors.

This study aims to investigate the extent of Shariah compliance in wakalah sukuk and Shariah non-compliant risk disclosure in the sukuk documents and to analyse the risk management techniques associated with the disclosed risks.

This study uses qualitative document analysis as both data collection and analysis methods. The document analysis acts as a data collection method for 23 wakalah sukuk documents selected from 32 issuances of wakalah sukuk from 2017 to 2021. These sukuk documents were selected based on their availability from relevant websites. Document analysis, both content analysis and thematic analysis, were used to analyse the data. Codes were grounded from that data through keywords search of Shariah noncompliant risk and its risk management. Besides these, interviews were also conducted with four active industry players, i.e. two legal advisors of wakalah sukuk, a wakalah sukuk trustee and a sukuk institutional issuer. These interview data were analysed based on categorical themes, on the aspects of the extent of Shariah compliance in sukuk, and the participant’s views on the risk management techniques associated with the risks or used in the sukuk documents.

Overall, the findings reveal three types of Shariah non-compliant risks disclosed in the sukuk documents and seven risk management techniques associated with them. However, the disclosure and the risk management techniques can be considered minimal in contrast to the extent of Shariah compliance in a sukuk, i.e. Shariah compliance at the pre-issuance stage, ongoing stage and post-issuance stage. On top of these, it was also found from the interviews that not all risk management techniques are workable to manage Shariah non-compliant risk in sukuk. As a result, these findings suggest rigorous reviews of the existing Shariah non-compliance risk (SNCR) disclosures and risk management techniques by the relevant parties.

Sukuk documents used in the study are limited to corporate wakalah sukuk issued in Malaysia. Out of 32 issuances from 2015 to 2021, only 23 documents are available in relevant website. Thus, Shariah non-compliant risk disclosure and its risk management techniques analysed in this study are only limited in those documents.

The findings of this study suggest rigorous reviews on the existing Shariah non-compliance disclosures and risk management techniques. Other than these, future research in relation to uncommon risk management clauses, i.e. assurance, Shariah waiver and transfer of risk, are needed.

The insights presented in the analysis are of importance to sukuk issuers and the sukuk due diligence working group in enhancing the sukuk Shariah compliance and Shariah non-compliant risks disclosure and towards sukuk investors, in capturing and assessing Shariah non-compliant risks in a sukuk and to assist them to make informed investment decisions. More importantly, this study has found few areas of future study in relation to SNCR disclosures and SNCR risk management techniques.

To provide human judgment input for computer algorithm development, this study examines the relative importance of source, content, and style cues in predicting the truthfulness ratings of two common types of online health information: news stories and institutional news releases.

This study employed a multi-method approach using (1) a manual content analysis of 400 randomly selected online health news stories and news releases from HealthNewsReview.org and (2) an online experiment comparing truthfulness ratings between news stories and news releases.

Using content analysis, the authors found significant differences in the importance of source, content, and style cues in predicting truthfulness ratings of news stories and news releases: source and style cues predicted truthfulness ratings better than content cues. In the experiment, source credibility was the most important predictor of truthfulness ratings, controlling for individual differences. Experts have higher ratings for news media stories than news releases and lay people have no differences in rating the two news formats.

It is important for health educators to curb consumer trust in misinformation and increase health information literacy. Rather than solely reporting scientific evidence, educators should focus on addressing cues people use to judge the truthfulness of health information.

This is the first study that directly compares human judgments of health news stories and news releases. Using both the breadth of content analysis and experimental causality testing, the authors evaluate the relative importance of source, content, and style cues in predicting truthfulness ratings.

This study aims to examine the effects of risk disclosure and call to action (i.e. encouraging individuals to consult a health provider before they make any purchase decision) on young adults’ cognitive and behavioral responses to dietary supplement advertising.

A 2 (risk disclosure: absence vs presence) × 2 (call to action: absence vs presence) between-subjects online experiment was conducted with 124 college-attending young adults.

Including risk disclosure in probiotic supplement advertising increased young adults’ perceived message credibility, intentions to ask a medical doctor and sense of confidence in decision-making. The addition of call to action in probiotic supplement advertising improved perceived message credibility, trust in advertised brand, favorable attitude toward brand, intention to ask a medical doctor and purchase intention; however, a significant joint effect was not found between risk disclosure and call to action.

Although risk disclosure and call to action are significant techniques in pharmaceutical and health-care marketing, they have been overlooked by both research and practice of dietary supplement marketing. This study closes this gap by providing empirical evidence to generate a clear idea about the benefits of including risk disclosure and call to action in dietary supplement advertising.

This paper aims to determine whether audit opinions in Morocco, an emerging market, are value relevant to the stock market, through the investigation of the market reaction to the issuance of modified audit opinions (MAOs).

The event study approach is used. The data are derived from the financial reports of listed companies on the Casablanca Stock Exchange over a period of 10 years from 2010 to 2019.

This paper does not find evidence that the market reacts to the issuance of MAOs when grouped together. When partitioning the sample by types, there is an evidence of a stock market reaction to qualified audit opinions and the qualified audit opinions with observation paragraph when they are combined with a negative variation of earnings per share. Examination of the impact of different natures of qualifications shows no consistent results and that the market does not distinguish between natures of qualifications.

These results may be due to the fact that some investors have information about the audit opinion long before it is made public, due to privileged access to audit opinions, or that investors underestimate audit opinions relative to other financial indicators.

This study contributes to the existing literature by investigating an emerging market, not previously tested, after the introduction of several regulatory reforms in Moroccan market aimed at enhancing transparency in financial reporting. It refines the market reaction models used in previous studies by using both ordinary least squares and the Scholes–Williams techniques that correct for the effect of thin trading on the market index. In addition, special attention is given to studying the market reaction to each type of MAOs and to each natures of qualifications.

The purpose of this paper is to examine whether the voluntary implementation of an internal audit department (IAD) by municipalities has any influence on external auditors' opinions.

This study population comprises the 308 Portuguese municipalities, from which the authors extracted a sample of 179. Financial and audit reports were collected from the period under analysis (2014–2017). The sample was then divided into two groups: municipalities that had voluntarily implemented an IAD and those that had not. Internal audit departments were characterized according to their robustness – whether they were more or less robust. First, a descriptive statistical analysis of the dataset was performed to analyze the representativeness of the sample and to extract insights. To address the research questions, ordinal random effect regression models were considered.

Contrary to the authors' expectations, the voluntary implementation of an IAD had no influence on the audit report type. However, when the authors refined the approach to include the robustness of the IAD, it became clear that this variable does influence the report issued by the external auditor.

This paper contributes to the current literature by determining the effects of the robustness of IADs on municipality audit reports. As far as the authors know, this paper is novel. Since auditing plays an important role in the transparency of public financial statements and in promoting equity, this study shows that a robust IAD is an advantage in the pursuit of these goals.