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Article
Publication date: 13 February 2024

Cori Crews, John Abernathy, Jimmy Carmenate, Divesh Sharma and Vineeta Sharma

The purpose of this study is to investigate the association between nonaudit services (NAS) and out-of-period adjustments (OOPAs). Over the years, the number of OOPAs has risen…

Abstract

Purpose

The purpose of this study is to investigate the association between nonaudit services (NAS) and out-of-period adjustments (OOPAs). Over the years, the number of OOPAs has risen while the number of restatements has decreased. This could indicate an improvement in financial reporting quality. It could also indicate the use of a type of stealth restatement for opportunistic purposes. These less prominent restatements are more likely to go undetected and could perpetuate opportunistic disclosure and mitigate the likelihood of unfavorable market reactions.

Design/methodology/approach

The authors use a two-stage multivariate regression analysis to examine the relationship between NAS and the reporting of an OOPA. The authors use prior research on NAS to guide the model development. The authors perform several robustness checks including different types of NAS and different characteristics of OOPAs.

Findings

The results indicate that NAS has a significantly negative association with the existence of OOPAs. The core findings suggest that NAS does not impair auditor independence. Rather, greater amounts of NAS may contribute to knowledge spillover, which leads to higher financial reporting and audit quality. The results are robust to several additional tests.

Research limitations/implications

The results raise interesting implications for regulators, executives, auditors, investors and future research. The authors provide insight into the relationship between NAS and auditor independence.

Originality/value

To the best of the authors’ knowledge, prior research has not considered the effect of NAS on OOPAs. The authors contribute to the literature by providing evidence that OOPAs, a form of stealth restatements, is an important consideration in audit quality research.

Details

Managerial Auditing Journal, vol. 39 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 26 March 2024

Rohit Kumar Singh and Sachin Modgil

The main aim of this study is to explore the relationship between information system flexibility and dynamic capabilities to build sustainable and net zero supply chains under the…

Abstract

Purpose

The main aim of this study is to explore the relationship between information system flexibility and dynamic capabilities to build sustainable and net zero supply chains under the influence of environmental dynamism.

Design/methodology/approach

We have formulated a self-administered survey, with 359 participants contributing responses. Prior to delving into foundational assumptions, such as homoscedasticity and normality, a nonresponse bias analysis was executed. The integrity of the data, in terms of reliability and construct validity, was gauged using confirmatory factor analysis. Subsequent regression outputs corroborated all the proposed assumptions, fortifying the extant scholarly literature.

Findings

The empirical findings of this research underscore a positive correlation between Information system flexibility, dynamic capabilities and a net zero supply chain, especially in the context of environmental dynamism. Data sourced from the cement manufacturing sector support these observations. We also found that environmental dynamism moderates the relationship between data analytics capability and sustainable supply chain flexibility but does not moderate the relationship between Resource flexibility and sustainable supply chain flexibility. Additionally, this research strengthens the foundational principles of the dynamic capability theory.

Originality/value

The conceptual framework elucidates the interplay between information system flexibility, dynamic capabilities, and sustainable supply chain flexibility, emphasizing their collective contribution towards achieving sustainable chain net zero, introducing environmental dynamics as a moderating variable that augments the scholarly discourse with a nuanced layer of analytical depth.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 22 March 2024

Achille Augustin Diendere and Sansan Ali Bepounte Dah

Effective agricultural product price regulation policies depend on market integration and the degree of symmetry in the transmission of agricultural product price signals. This…

Abstract

Purpose

Effective agricultural product price regulation policies depend on market integration and the degree of symmetry in the transmission of agricultural product price signals. This study analyzes the transmission and asymmetry of the price series between the Ouagadougou consumer market and assembly markets considering three primary cereal products in Burkina Faso.

Design/methodology/approach

This study applies the nonlinear autoregressive distributed lag (NARDL) econometric model, which is an asymmetric extension of the ARDL cointegration model. The price series examined covers the period extending from January 2005 to December 2020.

Findings

Our analysis provides novel insights regarding short- and long-term asymmetric effects in the transmission of price signals between assembly markets and the consumer market. We also determine that the effects of negative shocks are more persistent than those of positive shocks in several markets.

Research limitations/implications

For markets that exhibit symmetrical responses of assembly market prices to consumer market prices, the results could reflect the continuous efforts of market players, particularly the government, to eliminate market failures and ensure the long-term efficiency of cereal markets. To this end, an agricultural market information system can have a crucial role in easing information access for all market players.

Originality/value

This study provides new evidence regarding the nature of the transmission and asymmetry of price information on primary cereal products in the largest markets in Burkina Faso. Applying the NARDL model makes it possible to simultaneously estimate short- and long-term asymmetry.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 21 March 2024

Aina Pont and Alexandra Simon

The study aspires to enhance comprehension of the intricate interplay between supply chain management (SCM) and resilience in family businesses, thereby offering valuable insights…

Abstract

Purpose

The study aspires to enhance comprehension of the intricate interplay between supply chain management (SCM) and resilience in family businesses, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.

Design/methodology/approach

Commencing from the premise that family businesses (FBs) prioritize the preservation of socio-emotional wealth (SEW) when formulating strategic decisions, this study endeavours to advance understanding of supply chain practices adopted by FBs and their direct impact on resilience during crisis situations or economically challenging periods. Through an exploratory case study of nine FBs, the present research reveals four pivotal strategies in SCM that contribute to their resilience: (i) reorganization of inventory management; (ii) cultivating close relationships with suppliers; (iii) emphasizing product quality and customer retention; and (iv) implementing cost reduction measures to bolster resilience. The aim of the study is to provide an in-depth understanding of the intricate interplay between SCM and resilience in FBs, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.

Findings

Our approach offers a theoretical framework for SCM aligned with prior research on the interplay between characteristics of family businesses and resilience strategies. Furthermore, this paper illustrates how factors such as the emphasis on high-quality products and services by family businesses contribute to achieving non-economic objectives that owners adopt to reconcile family and business needs, creating intrinsic added value for the company. It reveals various challenges in SCM, including inventory organization changes, supplier closures and the significance of customer retention. Family businesses are implementing product and technology enhancements and leveraging digitization to enhance supply chain processes.

Originality/value

This paper contributes significantly to the field of FBs by highlighting the crucial role of SCM in enhancing business resilience during crises. It empirically examines how the SEW characteristics of FBs influence the reconfiguration of their supply chains to enhance resilience, presenting a theoretical model for this context. Our theoretical framework employs an SEW perspective to elucidate how FBs respond to the challenges posed by the COVID-19 pandemic by adapting their SCM processes to safeguard their social and emotional legitimacy, organizational visibility and reputation. These adaptations gain particular relevance during crises or turbulent conditions, potentially leading to alterations in how FBs formulate their supply chain strategies and manage supply chain-related processes.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 15 February 2023

Pilar Ficapal-Cusí, Joan Torrent-Sellens, Pedro Palos-Sanchez and Inés González-González

Due to the crisis originated by the COVID-19 pandemic, an important number of workers have been incorporating the telework modality. In this context, the distance from the…

Abstract

Purpose

Due to the crisis originated by the COVID-19 pandemic, an important number of workers have been incorporating the telework modality. In this context, the distance from the workplace generates new dilemmas for work performance. In the paper the authors study the role of some individual and social antecedents on telework outcomes. In particular, they empirically investigate the direct relationship between trust (TR) and telework performance (PER) and explore mediators of that relationship such as social isolation (SI) and fatigue (FA).

Design/methodology/approach

A theoretical model with three main hypotheses is proposed and tested using partial least square structural equation modeling (PLS-SEM). The study sample, of an exploratory nature, consists of a dataset of 201 teleworkers working in Spanish companies.

Findings

The relevance of the proposed model is demonstrated and FA is found to be the factor that most affects (negatively) PER, followed by TR (positively) and SI (negatively). Beyond the direct effects, the results provide support for the role of SI and FA in mediating the relationship between TR and PER.

Originality/value

This paper discusses the PER dilemma and proposes and tests a background model that may be useful for future research. The results are of interest to human resource managers, consultants, academics and telework tool developers and managers. Practices are proposed to improve TR or to reduce feelings of SI or FA. The research provides a practical evaluation tool for telework implementation.

Details

International Journal of Manpower, vol. 45 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 26 March 2024

Luiza Ribeiro Alves Cunha, Adriana Leiras and Paulo Goncalves

Due to the unknown location, size and timing of disasters, the rapid response required by humanitarian operations (HO) faces high uncertainty and limited time to raise funds…

Abstract

Purpose

Due to the unknown location, size and timing of disasters, the rapid response required by humanitarian operations (HO) faces high uncertainty and limited time to raise funds. These harsh realities make HO challenging. This study aims to systematically capture the complex dynamic relationships between operations in humanitarian settings.

Design/methodology/approach

To achieve this goal, the authors undertook a systematic review of the extant academic literature linking HO to system dynamics (SD) simulation.

Findings

The research reviews 88 papers to propose a taxonomy of different topics covered in the literature; a framework represented through a causal loop diagram (CLD) to summarise the taxonomy, offering a view of operational activities and their linkages before and after disasters; and a research agenda for future research avenues.

Practical implications

As the authors provide an adequate representation of reality, the findings can help decision makers understand the problems faced in HO and make more effective decisions.

Originality/value

While other reviews on the application of SD in HO have focused on specific subjects, the current research presents a broad view, summarising the main results of a comprehensive CLD.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 20 April 2023

Mohd Tariq Jamal, Imran Anwar, Nawab Ali Khan and Gayas Ahmad

Working remotely in a COVID-19-induced lockdown has been challenging for both organisations and their employees; studies report that job demands changed, and teleworkers…

Abstract

Purpose

Working remotely in a COVID-19-induced lockdown has been challenging for both organisations and their employees; studies report that job demands changed, and teleworkers experienced increased burnout. This paper explores the negative employee outcomes that this work arrangement brings along and offers possible solutions to counter such negative outcomes since they could be detrimental to the much-touted future of work.

Design/methodology/approach

The study adopted a time-lagged longitudinal design and collected two-waved data from 403 quaternary sector employees. The data were analysed using structural equation modelling and model-21 in PROCESS macro for SPSS.

Findings

Findings affirm that employees experienced increased job demands during this crisis. Employees reported an increase in turnover intention because of burnout caused by increased job demands. However, increased task interdependence alone did not have any effect on turnover intention. The perceived organisational task support (POTS) was found to forestall the negative effect of job demands on burnout, and employee resilience (ER) buffered the burnout and turnover intention relationship.

Practical implications

Providing remote work task support and boosting resilience among employees will help in doing away with the negative effects of teleworking. However, managers shall prioritise reducing job demands for teleworkers.

Originality/value

The linkage between work factors and turnover intention is well established. Drawing on the event system theory and using the COVID-19 context, the present study added to the existing knowledge by studying the role of job demands (workload pressure and task interdependence) on turnover intention through the mediation of burnout. The study goes beyond the existing literature by accounting for POTS as a first-level moderator between job demands and burnout relationship, and ER as a second-level moderator between burnout and turnover intention relationship.

Details

International Journal of Manpower, vol. 45 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 10 June 2022

Arash Arianpoor and Seyyed Sajjad Naeimi Tajdar

This study aims to explore the relationship between firm risk, capital structure, cost of equity capital and social and environmental sustainability during the COVID-19 pandemic…

Abstract

Purpose

This study aims to explore the relationship between firm risk, capital structure, cost of equity capital and social and environmental sustainability during the COVID-19 pandemic for companies listed on Tehran Stock Exchange.

Design/methodology/approach

To this aim, the information about 190 companies in 2014–2020 was retrieved to be analyzed. The total risk and systematic risk were used as the indicators of company risk; the industry-adjusted earnings price ratio (IndEP) and GORDON were used for the cost of equity capital. To measure social sustainability and environmental sustainability, the procedure suggested by Arianpoor and Salehi (2020) was used.

Findings

Underleveraged firms have had a lower total risk during the COVID-19 pandemic, while overleveraged firms have not had a higher risk during this time. In overleveraged firms, using systematic risk has a negative impact on social sustainability during the COVID-19 pandemic. In overleveraged firms, using total risk and systematic risk has a significant negative impact on environmental sustainability in the pandemic. Besides, overleveraged firms have a lower cost of equity capital (IndEP) during COVID-19.

Originality/value

To the best of the authors’ knowledge, no similar study has so far examined the joint impact of COVID-19 and corporate risk on social and environmental sustainability and also the joint impact of COVID-19 and capital structure on the cost of equity. This study contributes to the related literature by providing corporations with insightful post-pandemic directions on capital structure decisions and social and environmental activities. Furthermore, this research and the relevant findings can help understand and develop social responsibility in Iran as a developing country.

Details

Journal of Facilities Management , vol. 22 no. 2
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 16 February 2024

Sujie Hu, Yuting Qian and Sumin Hu

The purpose of this study is to explore the economic impact of financial restatements by major customers on the audit opinion of their suppliers, showing that non-financial…

Abstract

Purpose

The purpose of this study is to explore the economic impact of financial restatements by major customers on the audit opinion of their suppliers, showing that non-financial information disclosure potentially helps auditors make better assessments.

Design/methodology/approach

Using a sample of China’s listed firms from 2007 to 2021, the authors aim to find the relationship between customers’ financial restatements and their suppliers’ audit opinions. Heckman selection model, placebo tests and other robustness checks are used as well.

Findings

The findings reveal that customers’ financial restatements have a significant effect on the likelihood of suppliers receiving modified audit opinions. This relationship is pronounced when suppliers face a higher level of financial constraints, exhibit poorer accounting conservatism or receive more negative media coverage. Additionally, this effect occurs through increased business risk and information risk, which heightens auditors’ perceived audit risk. Moreover, the study highlights the influence of switching costs, auditor expertise and restatement severity on this relationship.

Practical implications

Risks originating from customers can spread along the supply chain, emphasizing the necessity for auditors to give heightened attention to both the audited firms and their customer information. Moreover, regulators should carefully consider the important impact of customer information disclosures to maximize the protection of the interests of external information users.

Originality/value

This study not only confirms the crucial role of customer information disclosures in annual reports for stakeholders and auditors but also contributes to the existing literature on customer–supplier relationships.

Details

Managerial Auditing Journal, vol. 39 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

Book part
Publication date: 5 April 2024

Luis Orea, Inmaculada Álvarez-Ayuso and Luis Servén

This chapter provides an empirical assessment of the effects of infrastructure provision on structural change and aggregate productivity using industrylevel data for a set of…

Abstract

This chapter provides an empirical assessment of the effects of infrastructure provision on structural change and aggregate productivity using industrylevel data for a set of developed and developing countries over 1995–2010. A distinctive feature of the empirical strategy followed is that it allows the measurement of the resource reallocation directly attributable to infrastructure provision. To achieve this, a two-level top-down decomposition of aggregate productivity that combines and extends several strands of the literature is proposed. The empirical application reveals significant production losses attributable to misallocation of inputs across firms, especially among African countries. Also, the results show that infrastructure provision has stimulated aggregate total factor productivity growth through both within and between industry productivity gains.

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