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1 – 10 of 379Neil Govender, Samuel Laryea and Ron Watermeyer
Competitive tendering in South Africa is often associated with procurement based on the lowest fee tendered. Previous research on this topic did not provide in-depth examinations…
Abstract
Purpose
Competitive tendering in South Africa is often associated with procurement based on the lowest fee tendered. Previous research on this topic did not provide in-depth examinations of how pricing within consulting engineering companies was affected by competitive tendering nor did it illuminate the extent to which professional services were impacted by competitive tendering. This paper aims to examine the implications of competitive tendering on pricing and delivery of consulting engineering services in South Africa.
Design/methodology/approach
A survey research strategy with a questionnaire as the research instrument elicited qualitative data from 28 experienced consulting engineers in South Africa. Thematic analysis was used to analyse qualitative data from the questionnaires.
Findings
Three key themes were identified, namely: considerations when determining consulting engineering fees on competitively tendered projects; the impact of reduced fees due to competitive tendering on the delivery of consulting engineering services; and interventions to prevent unsustainably “low” professional fees. Many consulting engineers in South Africa still determine fees using fee scales, while other considerations include resources, project complexity, risk, etc. Most participants asserted that design optimisation/value engineering, training, meetings and construction monitoring were adversely impacted by “low” fees.
Originality/value
This paper provides in-depth qualitative feedback from experienced consulting engineers (most having more than 20 years’ experience) on a topical issue in the South African construction industry. Thematic analysis was a novel method of analysis that was not used previously in this area of study.
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Gerasimos Rompotis and Dimitrios Balios
The purpose of this paper is to accentuate whether audit quality or other variables matter for the performance of companies in Greece.
Abstract
Purpose
The purpose of this paper is to accentuate whether audit quality or other variables matter for the performance of companies in Greece.
Design/methodology/approach
This study examines the effect of audit quality on firm performance using data of 75 companies listed in the Athens Exchange in Greece and covering the period 2018–2021. Panel data analysis is applied. The independent variables are audit quality, the size of firms, their age, leverage, liquidity and efficiency ratios. Seven alternative measures of performance are used, including, among others, return on assets and return on equity. Stock returns and risks are used too.
Findings
The results provide evidence of a positive relationship between financial performance and audit quality. The opposite is the case for stock returns and risk. On the other explanatory variables, age has a clearly negative relationship with financial performance. The opposite is the case for liquidity and efficiency. The size factor also has some sort of a positive correlation with financial performance, whereas the opposite correlation concerns the leverage ratio.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine the relationship between audit quality and firm performance with data from Greece.
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Yi Lok Leung, Ron L.H. Chan, Dickson K.W. Chiu and Tian Ruwen
Online food delivery has been prevalent in recent years worldwide, especially during the COVID-19 pandemic, and people's consumption behaviors have changed significantly. This…
Abstract
Purpose
Online food delivery has been prevalent in recent years worldwide, especially during the COVID-19 pandemic, and people's consumption behaviors have changed significantly. This study aims to investigate the consumption behavior of young adults using online food delivery platforms during the COVID-19 pandemic and focuses on the dominant factors influencing their decision to use online food delivery platforms.
Design/methodology/approach
Semi-structured interviews including 14 young adults aged 18–25 living in Hong Kong were conducted to collect data about their perspectives on online food delivery platforms in five areas. This research adopted the stimulus-organism-response model (S-O-R model) to analyze how the factors influence young adult users' loyalty and satisfaction with online food delivery platforms.
Findings
Thematic analyses revealed that young adults were attracted to online food delivery platforms for their numerous benefits. They had a high frequency of usage and significant spending. Usability, usefulness, satisfaction and loyalty influenced young adults' behaviors on online food delivery platforms. Participants were overall satisfied with their experiences, but platforms still had room for improvement.
Originality/value
Few prior studies investigated the factors affecting the consumer experience and behavioral intention of online food delivery for young adults in Asia. This study contributes to understanding young adults' experiences and problems with online food delivery platforms. It provides practical insights for system engineers and designers to improve the current services and for the governments to enhance the existing regulatory loopholes.
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Nichapa Phraknoi, Mark Stevenson and Meng Jia
The purpose of this study is to define and investigate the governance requirements of supply chain finance (SCF).
Abstract
Purpose
The purpose of this study is to define and investigate the governance requirements of supply chain finance (SCF).
Design/methodology/approach
A qualitative analysis of 849 news articles published in UK newspapers (2000–2022) using the Gioia method.
Findings
SCF governance relies on developing capacities for reflexive scrutiny at two stages: (1) prior to entering into an SCF relationship and (2) during its operation. Based on the notion of SCF as a complex adaptive system, we theorise SCF governance requirements as a dual-layered semipermeable boundary. The semipermeability of the two layers allows for a dynamic exchange between the SCF system and its environment. The first layer is the capacity to selectively enable or control the entry and access of certain actors and practices into the SCF system. The second layer is a capacity for ongoing scrutiny of the SCF operation and its development. Further, we identify five aspects of governance to be enabled, i.e. enhancing adaptability, building confidence, improving efficiency, advancing technology and promoting transparency; and four aspects to be controlled, i.e. preventing abuse of power, curbing fraud risk, constraining operational risk and restricting risky extensions to SCF practices.
Practical implications
Our dynamic framework can guide supply chain (SC) members in making decisions about whether to participate, or continue to operate, in an SCF relationship. Moreover, the findings have implications for policymakers and authorities who oversee entry/access and the involvement of SCF providers, particularly, fintech firms.
Originality/value
The study contributes to both the SC and governance literature by providing a systematic analysis of what SCF governance has to accomplish. Our novel contribution lies in its analysis of SCF governance based on a complex adaptive system approach, which expands the existing literature where SCF is described in rather static terms. More specifically, it suggests a need for a dynamic duality of SCF governance through the semipermeable boundary that selectively enables and controls certain SCF actors and practices.
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Solomon Opare and Md. Borhan Uddin Bhuiyan
This research aims to revisit Gul and Goodwin (2010), which focuses on exploring the relationship between debt maturity structure, credit ratings and audit fees. Furthermore, the…
Abstract
Purpose
This research aims to revisit Gul and Goodwin (2010), which focuses on exploring the relationship between debt maturity structure, credit ratings and audit fees. Furthermore, the authors investigate whether this association varies based on firm size, firm life cycle and financial reporting quality.
Design/methodology/approach
To investigate the research question, the authors use an extended sample period, 2004–2017, in comparison to the sample period, 2003–2006, used in Gul and Goodwin (2010). The authors use ordinary least squares regression as a baseline methodology along with two-stage least-squares regression and change analysis to control for endogeneity concerns.
Findings
According to Gul and Goodwin (2010), auditors charge lower audit fees for firms with higher short-maturity debt and better credit ratings, indicating a lower likelihood of financial misreporting. Further, Gul and Goodwin (2010) find that lower credit rated firms benefit more from short-term debt. Primarily, the findings are consistent with Gul and Goodwin (2010) and provide further evidence that the beneficial effects of short-maturity debt for firms with poor ratings are evident for small firms, firms in the growth stage of their life cycle and firms with poor earnings quality.
Practical implications
The findings imply that practitioners in the audit profession and investors should take a more nuanced and comprehensive approach to varied firm and financial factors, taking into consideration the intricate relationships between many elements impacting a firm’s financial health. As a result, audit professionals may give more accurate appraisals of a firm’s financial condition, and investors can make better investment decisions.
Originality/value
The authors reconfirm the findings of Gul and Goodwin (2010) using an extended sample. The findings are novel, which evidence that the lower audit fees for rated firms with short-maturity debt are moderated by firm size, life cycle and financial reporting quality.
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David Hay, Elizabeth Rainsbury and Debbie Van Dyk
The purpose of this study is to examine the cost of the introduction of independent audit inspections in New Zealand.
Abstract
Purpose
The purpose of this study is to examine the cost of the introduction of independent audit inspections in New Zealand.
Design/methodology/approach
The research is conducted using audit fee data from New Zealand and examines the overall impact of the reforms on the cost imposed on auditees.
Findings
The findings show that there was no general increase in audit fees but a significant increase in audit fees for small listed companies compared to audit fees for unlisted companies and large listed companies.
Practical implications
The practical implications of this study suggest that the introduction of independent inspections led to increased costs for some clients, particularly smaller listed companies, and that audit firms were able to pass on these costs to their clients. These results have important implications for policymakers and auditors alike.
Originality/value
This study provides new insights into the cost of the introduction of independent audit inspections, which have been the subject of ongoing criticisms and recommendations for improvement.
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Kitty Mo Kong and Hedy Jiaying Huang
This paper investigates whether the audit fees of Chinese listed firms are associated with the share pledging practice of the firm’s controlling shareholders.
Abstract
Purpose
This paper investigates whether the audit fees of Chinese listed firms are associated with the share pledging practice of the firm’s controlling shareholders.
Design/methodology/approach
This study uses the audit pricing model to estimate the association between the share pledging of listed firms and audit fees. Cross-sectional analysis is conducted on a large sample of Chinese listed firms during the period 2004 to 2019. The authors further test the moderating effects of listing on the Main Board, state ownership and abnormal audit report lag on the association between share pledging and audit fees. The results remain robust to various endogeneity tests including two-stage least squares instrumental variable analysis, entropy balancing analysis and difference-in-difference analysis.
Findings
The study finds that audit fees are positively associated with the proportion of shares pledged by the listed firm’s controlling shareholder in China. The results also provide new evidence that the positive association between audit fees and the share pledging of controlling shareholders could be mitigated if the firm is listed on the Main Board and/or it is a state-owned enterprise. In contrast, pledged firms with abnormal audit report lag are found to have higher audit fees than their pledged counterparts without the excessively long audit delay.
Practical implications
Findings of this study have important practical implications to those charged with governance, as boards need to comprehensively understand the adverse consequences of share pledging when pursuing it as the firm’s major source of financing. The study also has policy implications for stock market regulators such as the China Securities Regulatory Commission in China. Regulators could consider developing a threshold-based share pledging disclosure and pledge ratio requirements based on factors such as a firm’s listing status and ownership structure.
Originality/value
This study provides new evidence on the audit-related consequences of share pledging in a significant capital market. Findings of this study also enrich the existing audit literature by introducing the share pledging activities of controlling shareholders into the audit pricing decision-making model.
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Saeed Rabea Baatwah, Ehsan Saleh Almoataz, Waddah Kamal Omer and Khaled Salmen Aljaaidi
This study investigates the consequences of the key audit matter (KAM) disclosure requirement by considering two salient audit proxies: audit fees and audit report lag. This…
Abstract
Purpose
This study investigates the consequences of the key audit matter (KAM) disclosure requirement by considering two salient audit proxies: audit fees and audit report lag. This investigation is relevant because most auditors worldwide are required to expand their audit report including discussion on key matters faced in the audit engagement. However, the emerging literature on the implications of KAM is inconclusive.
Design/methodology/approach
Using a distinctive dataset of 601 year-observations for firms listed on the Omani capital market over 2012–2019, this study employs pooled panel data regression with robust standard error.
Findings
Results indicate that auditors increased their fees considerably during the period of KAM but substantially shortened audit report lag. Conversely, using the KAM period as a sample, the authors find marginal or insignificant evidence for the effect of the number of KAM on both proxies. In additional analyses, this study shows that entity-level risk KAM is associated with higher fees and shorter audit report lag, while KAM related to account-level risk does not have the same effect. Interestingly, it is observed that KAM disclosure is strongly associated with higher fees and high-quality audit even when the auditors issue their report in a shorter time.
Originality/value
This study contributes to the limited research examining the consequences of KAM in emerging markets. It is also the first to show that KAM is associated with shorter audit report lag.
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Rubaya Rahat, Piyush Pradhananga and Mohamed ElZomor
With the increasing demand for sustainable developments, higher education should focus on teaching both sustainable buildings and infrastructure systems. This study aims to…
Abstract
Purpose
With the increasing demand for sustainable developments, higher education should focus on teaching both sustainable buildings and infrastructure systems. This study aims to investigate the existing sustainable infrastructure (SI) teaching efforts in sustainability courses; identify best practices to integrate SI throughout bachelor’s and master’s programs under the construction management (CM) curricula; and propose guidelines for students to obtain Envision sustainability professional (ENV SP) credential during sustainability education.
Design/methodology/approach
This study conducted keywords search within the sustainability course descriptions under the American Council for Construction Education accredited CM curricula to locate SI topics. Additionally, this research collected inputs from the Envision Academic Committee members to develop a matrix representing the best practices for integrating SI in higher education and provided a guide with a step-by-step procedure to obtain ENV SP credentials.
Findings
This study identified a gap regarding the availability of SI education and offered best practices on how CM curricula might nurture such knowledge. Phase I highlighted that only two CM programs taught infrastructure sustainability, and three programs offered sustainability credentialing processes under a bachelor’s degree. Phase II developed a framework that offered a variety of pedagogical approaches and outlined the process for obtaining the ENV SP certificate for CM students in the freshman, sophomore, junior and senior years.
Originality/value
The findings of this study can facilitate CM education to create awareness among the future workforce and encourage them to establish skills pertaining to the economic, social and environmental implications while designing SI.
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