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The purpose of this study is to investigate whether fees discounting exists in Malaysia and whether such a practice impairs auditor independence.

The paper employs a panel least regression of 3,003 firm‐year observations of firms listed on Bursa Malaysia for the period between 1996 and 2006. The paper collects the audit fees, auditor's identity and other firms' characteristics data from Compustat Global, Stock Performance Guide Handbook and annual reports. The annual reports are obtained from the Bursa Malaysia's web site and Mergent Online database. The paper removes initial public offering (IPO) firms, firms involved with PriceWaterhouse and Coopers and Lybrand merger and firms forced to switch auditor during the Arthur Andersen implosion in 2002.

The analysis shows that price cutting occurs on initial audit engagements even when audit fees are publicly disclosed. Further tests suggest that the auditor recovers the “sunk cost” invested during the initial engagement only during the fourth year of their audit engagement. Further, the paper finds price recovery is not significantly different from normal audit fees charged for the continuing audit engagement during the first three year period of engagement, as the audit firms will only recover the cost on the fourth year of engagement. Overall, this finding has an important implication for regulators, as it suggests that price recovery due to “lowballing” does not impair auditor independence.

Due to data unavailability, this study does not consider other unique factors that determine audit fees in Malaysia. Among them are political connections, institutional investors and ethnicity.

This is the first study that examines audit pricing during an initial engagement in Malaysia.

Artificial intelligence chatbots are shifting the nature of online services by revolutionizing the interactions of service providers with consumers. Thus, this study aims to explore the antecedents (e.g. compatibility, perceived ease of use, performance expectancy and social influence) and consequences (e.g. chatbot usage intention and customer engagement) of chatbot initial trust.

A sample of 184 responses was collected in Lebanon using a questionnaire and analyzed using structural equation modeling (SEM) by AMOS 24.

The results revealed that except for performance expectancy, all the other three factors (compatibility, perceived ease of use and social influence) significantly boost customers’ initial trust toward chatbots. Further, initial trust in chatbots enhances the intention to use chatbots and encourages customer engagement.

The study provides insights into some variables influencing initial chatbot trust. Future studies could extend the model by adding other variables (e.g. customer experience and attitude), in addition to exploring the dark side of artificial intelligence chatbots.

This study suggests key insights for marketing managers on how to build chatbot initial trust, which, in turn, will lead to an increase in customers’ interactions with the brand.

The current study marks substantial contributions to the artificial intelligence marketing literature by proposing and testing a novel conceptual model that examines for the first time the factors that impact chatbot initial trust and the key outcomes of the latter.

The purpose of this paper is to explore the dynamic process of multi-actor engagement by examining how it evolves and spreads in actor networks. The authors challenge the dyadic perspective adopted by previous research.

An abductive theorizing approach uses a longitudinal case study to develop a theoretical framework of the iterative process of multi-actor engagement. The authors draw on the contemporary literature on engagement, service-dominant logic and value propositions.

The research shows that engagement conditions, via actors’ appraisals, lead to engagement properties and result in engagement outcomes as the new conditions for the next iteration. Changes within this multi-actor engagement process lead the network to evolve over time.

The authors highlight the importance of adopting a dynamic multi-actor perspective of engagement and provide foundations for further research. The use of longitudinal methods that focus on the groups of actors in the evolving network is a key consideration.

There is the need to understand and measure the dynamic process of engagement among different groups of actors within networks in the service context.

This is the first empirical study to explore the dynamics of engagement among multiple actors in the network. This leads to the expansion of Storbacka et al.’s (2016) conceptual work by identifying the iterative nature of the multi-actor engagement process, and new components in the process (i.e. actors’ connections, value propositions and engagement outcomes), as well as clarifying existing ones (e.g. engagement properties and actors’ appraisals).

This paper aims to investigate whether the expected implementation of Section 404(b) of the Sarbanes-Oxley Act (SOX 404(b)) (the integrated audit requirement) caused auditors to discount their audit fees for non-accelerated filers in anticipation of expected increased future economic rents (DeAngelo, 1981) from those clients.

This paper predicts that auditors charged their non-accelerated filer clients lower audit fees during the years 2005-2007 (in anticipation of increased expected future economic rents from the implementation of the SOX 404(b) requirement) compared with the years 2010-2012 (when it had been determined that non-accelerated filers were permanently exempt from complying with SOX 404(b)). The authors use ordinary least squares regression analysis to examine whether audit fees increased significantly for non-accelerated filers after the permanent exemption announcement.

The results show a significant positive association between the exemption announcement and audit fees, supporting the theory that auditors discounted their audit fees for non-accelerated filers in the pre-exemption announcement period. This finding is robust when sensitivity tests are used.

The findings of audit fee discounting literature related to the post-SOX period are mixed. This study adds to this stream of literature by supporting the notion that audit fee discounting is being practiced post-SOX and is a potential unintended consequence of SOX 404 and the exemption. Thus, investors will be interested in the results of this paper when making their investment decisions with regard to non-accelerated filers.

The results of this paper show that, even in the post-SOX environment, auditors will employ the use of audit fee discounting if a change in regulation incentivizes it. This commentary on the present state of the audit pricing market should be of interest to audit pricing policymakers.

This paper is one of the first to study audit fee discounting outside the realm of initial audit engagements.

Parenting programmes are increasingly a feature of services and policies aimed at improving outcomes for children and families and tackling inequality, yet they remain underused. This study aims to assess parent engagement and retention in the parent and infant (PIN) programme – a universal, multi-component intervention designed to support parents from birth to when their children reach two years of age. The programme can be tailored to parent/community needs but also includes standardised core elements including two Incredible Years parenting programmes. Programme provider perspectives on recruiting and supporting participation were also explored.

A mixed methods study was conducted involving parents (n = 106) and programme providers involved in the PIN programme. Logistic regression analyses were used to assess the impact of participant demographic characteristics on the likelihood of programme engagement and attendance. Semi-structured interviews explored facilitators’ experiences of parent recruitment and engagement, as well as barriers and facilitators of parental attendance.

First-time mothers were more likely to initially enrol in the PIN programme than younger or lone parents. However, older age and married/cohabiting status were the strongest predictors of attending at least one-third of programme sessions. Qualitative findings highlighted the importance of relationship building and connection in supporting participant recruitment and engagement. Practical and psychological barriers to programme participation are also described.

The findings shed light on factors that influence engagement and attendance in universal, early parent support programmes. Barriers to parent engagement are multi-layered and tailored strategies to promote uptake of parenting programmes are needed.

Despite the importance of increasing engagement and minimising attrition and drop‐out in parenting interventions, there is a paucity of empirical evidence examining factors related to engagement and participation. The range of factors examined in relation to engagement is generally limited in scope and variety, focusing on variables of convenience rather than utilising a theoretically‐driven approach.The aim of this article is to review the factors related to parental engagement with interventions and to describe strategies and implications for improving engagement with parenting interventions. Several policy and practice implications are identified: (1) Poor parental engagement may threaten or compromise the capacity of parenting programmes to deliver valued outcomes. Viable engagement strategies need to be a core part of prevention and early intervention parenting programmes; (2) Agencies delivering parenting services need a proactive engagement strategy, which includes strategies to prevent drop‐out, as well as strategies to actively respond to parental disengagement; (3) Research is needed to test the efficacy and robustness of different engagement enhancement strategies. Empirical tests are needed to test the effectiveness of different engagement strategies in order to ensure that the most efficient, cost‐effective and efficacious approach is used in order to engage parents. Investment of research effort to improve parental engagement is likely to have a high yield in terms of programme efficiency, utility and cost effectiveness. We conclude that research examining how to improve engagement and decrease non‐completion is needed to strengthen the population level value of parenting programmes as preventive interventions.

Health apps offer a potential approach to support healthier food behaviours but a lack of sufficient engagement may limit effectiveness. This study aims to use a user engagement theoretical lens to examine the factors that influence app engagement over time and may prompt disengagement.

A phenomenological exploration of the lived experience was used. Women from a lower socioeconomic background (based on the occupation and employment status of the household’s primary income earner) were randomly assigned to use one of two apps for a minimum of eight weeks. Multiple data collection methods, including accompanied shops, researcher observations, interviews, participant reflective accounts and questionnaires, were used at different time-points to examine engagement. Theoretical thematic analysis was conducted to explore the engagement experience and relevant social, personal and environmental influences.

Healthy food involvement appears to drive app engagement. Changes in situational involvement may contribute to fluctuation in engagement intensity over time as the saliency of personal goals change. Negatively valenced engagement dimensions may contribute to the overall expression of engagement. A lack of congruency with personal goals or an imbalance between perceived personal investment and value was expressed as the primary reasons for disengagement.

Situational involvement may act as a trigger of different engagement phases. There is a need to better distinguish between enduring and situational involvement in engagement research.

Individual characteristics may shape engagement and propensity for disengagement, which highlights the practical importance of incorporating tailored features into app design.

Findings broaden the current conceptualisation of engagement within the digital space and prompt a reconsideration of the role of situational involvement and negatively valenced dimensions throughout the engagement process.

The purpose of the study is to examine how awareness of the prior year fraud detection testing strategy impacts auditor judgments at differing levels of engagement risk.

A 2 × 2 between-subject experiment was conducted using 64 practicing auditors as participants. The independent variables are manipulated at two levels – awareness of prior-year testing strategy (aware versus unaware) and engagement risk (high versus low). The dependent measures are identified risk factors, targeted areas of auditors’ risk assessments, proposed audit procedures and the desire to consult with a forensic specialist.

Although continuing auditors anchor on prior-year audit strategies, new auditors (who are unaware of prior-year testing strategies) focus on generally known high-risk areas and firm standard procedures while planning the audit.

This paper contributes to the ongoing debate regarding how auditor tenure impacts auditors’ decision-making at a time when the profession and US regulators are focused on enhancing audit quality. The findings further suggest that auditors should take steps to enhance their judgments and avoid potential biases, particularly when planning continuing engagements.

Although the extant literature document anchoring by continuing auditors, this paper is the first to examine successor auditors’ fraud testing strategies. The findings suggest auditors on high-risk engagements who are unaware of the prior-year testing strategy may process information at a deeper level, as they are more likely to seek consultation with a forensic specialist rather than relying on simple heuristics.

Audit firm bankruptcy can have significant negative impacts on the stock prices of client firms. The purpose of this paper is to identify determinants of audit firm bankruptcy risk as measured by costs of debt.

Using audit firm data publicly available in Korea, this study empirically examines whether client portfolio, financial, and organizational characteristics are associated with the weighted average interest rates assumed by auditors.

The authors find empirical evidence that audit firms’ client portfolio characteristics, including the incidence (or number) of lawsuits against the auditor, the proportion of audit clients under surveillance, the proportion of initial audit engagements, and the proportion of listed companies of audit clients, are positively associated with the cost of debt. The authors also find several financial and organizational characteristics associated with the cost of debt.

The findings of this study suggest that client portfolio characteristics as well as financial and organizational characteristics are important determinants of the cost of debt in audit firms, and that these characteristics are different from those of firms in other industries. Identifying the determinants of audit firms’ cost of debt provides insight to regulators, client firms, and capital market participants.

This study examines the default risk of audit firms that play an important monitoring role in capital markets. By utilizing unique data about audit firms available in Korea, this study is the first study to empirically examine the effect of detailed audit firm characteristics on audit firm’s default risk.

Since initial demonstrations that categories are consequential for evaluation, scholars of organizations and markets have attended to dynamics in audience evaluations of category spanning. We consider how heterogeneity in evaluator engagement in a market may alter their evaluation of atypical candidates. In markets where evaluators self-propagate theories of diversification, atypical candidates are advantaged because they present a distinct and efficient opportunity to diversify. We argue that evaluator market engagement will (positively) moderate valuations of atypicality, as such evaluators will be better positioned to recognize atypical candidates and their alignment with prevailing theories of value. We find support for our contentions with data from an online peer-to-peer lending market, Prosper.com. Consistent with our hypothesis, we find that lender evaluation of these atypical borrowers is increasing in their market engagement: whereas lenders new to the market devalue atypical candidates, those who have made many evaluations evaluate atypicality positively.