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The use of choice-based, matched, and other stratified sample designs is common in auditing research. However, it is not widely appreciated that the data analysis for these studies has to take into account the non-random nature of sample selection in these designs. A choice-based, matched or otherwise stratified sample is a nonrandom sample that must be analyzed using conditional analysis techniques. We review five research streams in the auditing area. These streams include work on determinants of audit litigation, audit fees, auditor reporting in financially distressed firms, audit quality and auditor switches. Cram, Karan, and Stuart (CKS) (2009) demonstrated the accuracy of conditional analysis, compared to unconditional analysis, of nonrandom samples through the use of simulations, replications, and mathematical proofs. Papers since published have continued to rely upon questionable research, however, and it is hard for researchers to identify what is the reliability of a given work. We complement and extend CKS (2009) by identifying audit papers in selected research streams whose results will likely differ if the data gathered are analyzed using conditional analysis techniques. Thus research can be advanced either by replication and reanalysis, or by refocus of new research upon issues that should no longer be viewed as settled.

The purpose of this paper is to benchmark the solvency status of Indian general insurance firms.

The paper collects, compiles and analyses the key financial, operational and business data of eight Indian insurance firms. The authors first decide on initial firm‐specific economic variables and use data of last five years from IRDA Reports and Company Annual Reports. The NAIC IRIS ratios method was used to obtain an initial risk classification. This was used as a proxy of insolvency risk. Linear regression and logit techniques were thereafter applied to estimate the significant factors (direction‐wise and magnitude‐wise) which influence insurer solvency.

The results suggest that the factors that most significantly influence Indian non‐life insurers are lines of business, the firm's market share, the premium growth rate, the underwriting performance and the claims incurred. Further, the factors which have the strongest effect are market share, change in inflation rate, firm size, lines of business and claims incurred.

The sample of Indian general insurers used is limited with regard to the time span. No holdout sample was used and the entire data set was subjected to statistical analysis. These somewhat limit the findings and implications.

The paper provides insurers with easy‐to‐use operational and marketing indicators to benchmark their solvency risk. It will lead to competitive goal setting for continuous improvement. Estimation of appropriate market/economic parameters can be a useful input for regulators. A few suggested indicators are new.

Previous studies of insurance companies have focused on developed economies (USA, Europe) or the Asian Markets (China and Japan). This paper determines a set of marketing, financial and operational variables to predict benchmark financial strength of general insurance firms in India. It incorporates qualitative inputs from practising managers and industry experts before carrying out quantitative modeling and analysis.

The purpose of this study is to identify antecedent factors in addition to merit that contribute to the designation of first author on a publication. A second purpose is to provide knowledge of the significance and implications of being designated first author on a research article in the management discipline. A third purpose is to propose directions for further research.

The study consists of an empirical analysis of archival data gathered from 780 authors of 260 coauthored articles from top-tier journals and uses logit regression to analyze the data.

The empirical analysis shows that under certain conditions author need and author power are factors that combine with merit as antecedents to the designation of being the first author of an article.

To the best of the authors’ knowledge, this is the first empirical study that identified antecedent factors that contribute to first authorship beyond the prescribed factor of merit which professional norms in management assume is the one and only factor that contributes to being designated as first author.

El propósito de este estudio es identificar los factores que anteceden, además del mérito, a la designación del primer autor en una publicación. Un segundo objetivo es proporcionar conocimiento sobre la importancia y las implicaciones de ser designado primer autor en un artículo de investigación en la disciplina de gestión. El tercer propósito es proponer direcciones para futuras investigaciones.

El estudio consiste en un análisis empírico de los datos de archivo recopilados de 780 autores de 260 artículos de revistas de primer nivel y utiliza la regresión logit para analizar los datos.

El análisis empírico muestra que, bajo ciertas condiciones, la necesidad y el poder del autor son factores que se combinan con el mérito como antecedentes de la designación como primer autor de un artículo.

Hasta donde alcanza nuestro conocimiento, este es el primer estudio empírico que identifica los factores que anteceden a la primera autoría más allá del factor de mérito, el cual es según las normas profesionales el único factor que contribuye a ser designado como primer autor.

O objetivo deste estudo é identificar fatores antecedentes, além do mérito, que contribuem para a designação do primeiro autor em uma publicação. Um segundo objetivo é fornecer conhecimento da importância e das implicações de ser designado primeiro autor em um artigo de pesquisa na disciplina de gerenciamento. Um terceiro objetivo é propor orientações para futuras pesquisas.

O estudo consiste em uma análise empírica dos dados de arquivo coletados de 780 autores de 260 artigos em coautoria de periódicos de primeira linha e usa a regressão logit para analisar os dados.

A análise empírica mostra que, sob certas condições, a necessidade e o poder do autor são fatores que se combinam com o mérito como antecedentes à designação de ser o primeiro autor de um artigo.

Até onde sabemos, este é o primeiro estudo empírico que identifica os fatores que precedem a primeira autoria além do fator de mérito, que, segundo as normas profissionais, é o único fator que contribui para ser designado como primeiro autor.

This paper primarily uses statistical methods to establish financial early‐warning models that make it possible to predict, in advance, the probability of a company experiencing financial distress.

In its empirical analysis, this is the first study that attempts to use financial ratios and non‐financial ratios as variables to analyze business groups, and the present study uses the (K‐S tests), and (M‐U tests) and logit regressions model.

Financial ratio variables remain the primary variables for predicting corporate financial distress. Upon examining the predictor variables for corporate financial distress at one, two, and three years prior to distress, it was found that financial ratio variables were the main ones at one and two years prior to distress, while at three years prior to distress there was one financial ratio variable and two ownership structure variables that showed significant differences. Financial structure, solvency, profitability, and cash flow indicators are the principal financial ratio variables. Ratios of director and supervisor ownership stakes after pledging of shares differed significantly between financially distressed and non‐distressed companies. Establishing independent directors and supervisors can lower the likelihood of financial distress.

As the time remaining before occurrence of financial distress grows shorter, test results show that the number of financial ratios with significant differences goes up. But the longer the time that remains before occurrence of financial distress, the more the financial ratios show non‐significant differences. That is why a number of scholars hold that the longer the period under study, the less explanatory power it has.

The mean contribution of this paper is that establishing independent directors and supervisors can lower the likelihood of financial distress. The paper is useful to researchers or practitioners who are focused on financial risk management and corporate governance implementation.

Factors considered important for predicing attrition were extracted from the research done on university dropouts for the past twenty‐five years and integrated into a conceptual model. Stepwise discriminant analysis coupled with logit regression analysis of freshman data from Brandon University yielded six variables: student status, residence, financial sources, distance of hometown from the university, goal fulfilment, and satisfaction with overall university atmosphere, which were useful in prediction. Several recommendations are made for minimizing the withdrawal phenomenon.

The purpose of this paper is to examine the determinants of involuntary delisting rate for the Egyptian initial public offerings (IPOs) issued over the period 1992-2009.

A definition of survival time that considers the date when the new Egyptian listing rules were enforced to track delisting status for each IPO firm for five survival years is relied on. Binary logit regression analysis is used to identify these determinants. Total sample is divided into two subsamples: the first subsample covers the period from 1992 to 2004. It is used to estimate the logit equations and to predict delisting status of firms included in the second subsample, which covers the period from 2005 to 2009.

The probability of involuntary delisting decreases significantly with the increase in firm size, institutional ownership, assets growth rate, operating efficiency, offering size, initial returns and insider ownership. However, it increases significantly in IPO firms with high financial leverage. Based on the estimated logit regression equations, the status of the six firms included in the second subsample are correctly predicted.

The results provide several implications for investors, issuing firms and setters of listing rules.

This study uses new variables, such as firm type, institutional ownership and listing variables. In addition, several theories are tested and supported.

Based on a survey of 897 farm households, the purpose of this paper is to build a framework using cluster analysis to explain how farmers make decisions on joining group guarantee, and analyzes factors influencing their decisions using multinomial and binary Logit regressions.

The approach of combining cluster analysis with Logit regression is an innovative approach to survey assessment. In addition, by design the authors have identified the four mutually exclusive groups of borrowers combining Group Guarantee membership and actual formal borrowing.

An extremely important observation according to the data is that most farmers appear to be part of group guarantees only because they have to in order to get access to formal credit products. 87.21 percent of the people who belong to groups and utilize the formal credit products belong to this category because their lenders have made participation in groups compulsory for access to credit. This may ration farmers’ willingness to even apply for credit. It also indicates a preference on the part of older and more risk-averse respondents to avoid participation in group guarantees. Out of financial characteristics the total loan holdings appears to be the only significant indicator of participation in group guarantees. Furthermore the results indicate that informal and formal credit appear to be replaceable for farmers.

The survey is confined only to the counties investigated. China is very diverse in its agricultural economies and many RCCs operate under different guidance and rules from those investigated here. Hence, while the authors can claim that the results are indicative, the authors cannot claim that they will hold generally.

Based on group guarantee loan mechanism and survey data analysis of 897 farm households, this paper analyzes influencing factors affecting farmers’ participation in group guarantees from microcosmic level, so as to provide some reference to further perfect micro credit operation mode and mechanism.

The results indicate that the Group Guarantee mechanism, while beneficial to some, may not hold global appeal for Chinese farmers. In the future RCCs may want to consider alternative approaches to loan security than placing the burden of guarantee on farmers’ family and friends.

The approach of combining cluster analysis with Logit regression is an innovative approach to survey assessment. In addition, by design the authors have identified the four mutually exclusive groups of borrowers combining Group Guarantee membership and actual formal borrowing.

Considering the economic dimension of sustainability, the purpose of this paper is to analyze the risk of bankruptcy in the Pakistani firms of the non-financial sector from years 1995 to 2017.

Three techniques were used which include multivariate discriminant analysis (MDA), logit regression and multilayer perceptron artificial neural networks. The accounting data of firms were selected one year before the bankruptcy.

Findings were obtained by comparing and analyzing the methods which show that neural networks model outperforms in the prediction of bankruptcy. They further conclude that profitability and leverage indicators have the power of discrimination in bankruptcy prediction and the best variables to predict financial distress are also found and indicated.

Practically, this study may help the firms to better anticipate the risks of getting bankrupt by choosing the right method and to make effective decision making for organizational sustainability.

Three different techniques were used in this research to predict the bankruptcy of non-financial sector in Pakistan to make an effective prediction.

The purpose of this paper is to examine whether the number of outside directors on the board of directors and dividend payout are substitutes or complements mechanisms applied by UK firms to control agency conflicts of interest within the firm.

The authors use tobit and logit regression models to examine the extent to which firms with a majority of outside directors on their boards experience significantly lower or higher dividend payout after controlling for insider ownership, profitability, liquidity, asset structure, business risk, firm size, firms' growth rate and borrowing ratio.

Based on a sample of 400 non‐financial firms listed at London Stock Exchange for the period from 1991 to 2002, it was found that dividend payout is negatively associated with the number of outside directors on the board of directors.

The results suggest that firms pay lower dividends when higher number of outside directors is employed on the board. This evidence is consistent with the substitution hypothesis, which indicated that firms with weak corporate governance need to establish a reputation by paying dividends. In other words, dividends substitute for independent directors on the board. This finding offers novel insights to policy makers interested in agency conflicts of interest within the firm. It also provides evidence on the use of different substitute mechanisms for reducing agency costs.

The purpose of this paper is to determine the extent to which Canadian companies have embraced value‐based management (VBM) methods, identify the characteristics of these companies and of the executives responsible for the introduction of VBM in their organisations and assess the stock price performance of the companies that use VMB vs. those that do not.

The study is based on a survey of CEOs of a large sample of Canadian companies and examines the relation of a number of explanatory variables, including stock price performance, to the probability of using VBM versus not using VBM via a regression analysis of qualitative choice, namely logit analysis.

The study finds that value‐based management methods are widely used in Canada, with the likelihood of usage being higher for larger companies with younger and more educated executives with an accounting/finance background. The statistical analysis that follows the tabulation of survey results indicates companies that used EVA had a better stock price performance than those not using EVA. Moreover, our logit regression analysis shows that companies with better stock market performance exhibited higher likelihood of using EVA.

The study implies that the lower usage of EVA in Canada, especially at the corporate level, provides some explanation for the stock market under‐ performance of the Canada market vis‐à‐vis the USA in the 1990s.

To our knowledge, this study serves as the first widespread evaluation of VBM methods in Canada and their effect on company and stock price performance.