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The purpose of this paper is to investigate the empirical association between the tone of earnings announcements and a company’s membership in a sin industry.

This study constructs a model of the determinants of earnings announcement tone to examine the impact of sin industry membership on earnings announcement tone. An interaction term between CEO power (CEO–chairman duality) and sin industry membership is used to test whether CEO power moderates the strength of the association. The earnings announcements tone is measured using the spread in the proportion of positive and negative words. The category of sin industry includes not only industries such as tobacco, gambling and alcohol, but also industries associated with emerging environmental, social, and ethical issues (i.e. firearms, oil and cement).

The analysis of a sample of US firms from the 1994 to 2013 period shows that the tone of earnings announcement is less optimistic for companies in sin industries, but this association is weaker for companies that are led by powerful CEOs. The results remain robust to alternative definitions of sin industry membership and CEO power (CEO tenure) and to alternative model specifications.

The findings suggest that although sin companies cannot change the nature of their business, the management of such companies, in general, uses a less aggressive tone in their earnings announcements. These results further investors’ understanding of sin companies’ reporting behavior.

The purpose of this study is to examine the impact of workloads at public accounting firms on the likelihood of an audit deficiency being identified during a triennial inspection by the Public Company Accounting Oversight Board (PCAOB).

Using the human resource information disclosed in PCAOB inspection reports, this study constructs two firm-specific workload measures: the ratio of issuer clients to audit partners; and the ratio of issuer clients to professional staff. Firm-level audit deficiency is measured at three levels of severity: Do any of the audit engagements inspected by the PCAOB reveal an audit deficiency? Are any of the identified audit deficiencies directly related to the auditors’ failure to identify a departure from GAAP in the client’s financial statement? Are any of the identified audit deficiencies associated with a significant adjustment or restatement in the client’s subsequent period financial statements? This study uses logistic regression to examine the association between audit deficiency and the workload of public accounting firms.

The empirical evidence suggests that the workload of public accounting firms is positively associated with the likelihood of a deficient audit, auditor’s failure to identify client’s GAAP departure and/or an audit deficiency resulting in a significant adjustment or even a restatement of the client’s financial statements in the subsequent period.

This study is among the first to investigate the impact of firm workload on deficient audits.

The purpose of this paper is to examine the effect of managerial ability on the tone of earnings announcements and on the market response to the tone.

This study constructs a model of the determinants of earnings announcement tone in order to examine whether managerial ability plays a significant role in determining earnings announcement tone. Further, to test whether the market response to the tone of earnings announcements is affected by managerial ability, this study also examines the interactive term between earnings announcement tone and managerial ability. The tone of earnings announcements is measured using the spread in the proportion of positive and negative words. Managerial ability is measured using the managerial ability rank developed by Demerjian et al. (2012).

More able management teams use a more positive tone in their earnings announcements. Stock markets have more pronounced positive reactions to positive tones in the earnings announcements issued by companies with more able management teams.

This study identifies managerial ability as a previously unrecognized determinant of tone in earnings announcements and of the stock price reaction to earnings announcements.

This study examines whether auditors’ pricing decisions on managerial ability are affected by auditor litigation risk (financial distress or financial crisis), auditor’s familiarity with their client or regulatory changes in the post-Sarbanes–Oxley Act of 2002 (SOX) era.

Building on the extant audit fee literature, this study constructs an audit fee determinants model to examine how context affects auditors’ pricing of managerial ability.

Auditors offer a larger fee discount to more able client management teams when auditors face lower litigation risks or are more familiar with the client. Furthermore, managerial ability has a more pronounced effect on audit fees in the post-SOX era when managers are mandated to play more active roles in financial reporting (i.e. certification of financial statements required by SOX 302).

Based on the audit risk model (Simunic, 1980), Krishnan and Wang (2015) show that the managerial ability of an audit client is relevant and important to auditors’ pricing decisions. This study demonstrates that managerial ability exhibits a non-linear relationship with audit fees and contextual factors, such as litigation risk, and that auditors’ familiarity with managers can alter the negative association between audit fees and managerial ability. This study extends Krishnan and Wang’s study by offering additional insights into auditors’ use of soft information such as managerial ability. Furthermore, the findings add to the literature on the impact of SOX on audit fees by suggesting that SOX has not only increased overall audit fees (Ghosh and Pawlewicz, 2009; Huang et al., 2009), it has also increased auditors’ price sensitivity to soft information (e.g. managerial ability).

This study provides insights for audit firms and client companies who are interested in understanding audit fee-pricing decisions. The findings also suggest that auditors need to be sensitive and responsive to various contextual factors when making pricing decisions.

Previous studies have not addressed the non-linear relationship between audit fees and soft information about managerial ability.

The purpose of this study was to investigate how financial literacy and investment experience impact cryptocurrency investment behavior and explore which factor is more influential in cryptocurrency investment.

Using a sample of US individual investors from the 2018 National Financial Capability Study Investor Survey, a three-step hierarchical logistic regression was conducted following a model-comparison approach. In addition, a mediation analysis was conducted using the Karlson−Holm−Breen (KHB) method to further explore the mediating effect of investment experience between financial literacy and cryptocurrency investment.

This study found that while both financial literacy and investment experience were positively associated with investing in cryptocurrencies, investment experience was more influential in cryptocurrency investment. The findings also demonstrated that investment experience, especially risky asset holding, had a significant mediating effect between subjective financial knowledge and cryptocurrency investment behavior.

The findings of this study offer insight to researchers by providing a deeper understanding of the determinants of cryptocurrency investment in the United States. This study also provides detailed implications for financial institutions, financial professionals and policymakers to guide rational cryptocurrency investment behavior.

This study is one of the initial attempts to explore the determinant factors in cryptocurrency investment, an area that has rarely been studied in the literature.

The purpose of this paper is to conduct the synthesization of LiFePO₄-C (LFP-C) with fine particle size and enhanced electrochemical performance as the positive electrode material for Li-ion capacitors (LICs) with neutral aqueous electrolyte.

LFP-C was prepared by using polyethylene glycol (PEG) as a grain growth inhibitor, and the effects of the calcination temperature and PEG content on the structure and morphology of LFP-C were investigated. LICs using environment-friendly, safe and low-cost LiNO₃ aqueous electrolyte were assembled with LFP-C as the positive electrode and active carbon as the negative electrode. The electrochemical performances of LFP-C and LICs were studied.

The results show that the particle size of LFP-C decreases significantly through the introduction of PEG. Cyclic voltammetry results show that the LFP-C prepared at 550°C with 1.0 g PEG exhibits the highest C_pe of 725 F/g at the scanning rate of 5 mA/s. Compared to LFP prepared without PEG, the electrochemical performance of optimized LFP-C dramatically increases due to the decrease of the particle size. Moreover, the LIC assembled with the optimized LFP-C exhibits excellent electrochemical performances. The LIC maintains about 91.3 per cent of its initial C_ps after 200 cycles which shows a good cycling performance.

The LFP-C is the suitable positive electrode material for LICs with neutral aqueous electrolyte. LICs can be used in the field of automobiles and can solve the problems of energy shortage and environmental pollution.

Both the LFP-C with fine particle size and its optimal LIC using environment-friendly, safe and low-cost LiNO₃ aqueous electrolyte own good electrochemical performances.

This paper aims to present a requirements analysis for the processing of water-based electrode dispersions in inkjet printing.

A detailed examination of the components and the associated properties of the electrode dispersions has been carried out. The requirements of the printing process and the resulting performance characteristics of the electrode dispersions were analyzed in a top–down approach. The product and process side were compared, and the target specifications of the dispersion components were derived.

Target ranges have been identified for the main component properties, balancing the partly conflicting goals between the product and the process requirements.

The findings are expected to assist with the formulation of electrode dispersions as printing inks.

Little knowledge is available regarding the particular requirements arising from the systematic qualification of aqueous electrode dispersions for inkjet printing. This paper addresses these requirements, covering both product and process specifications.