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This paper aims to examine the association between political connections, political uncertainty and audit fees. The authors use various measures of political connections and uncertainty: political connections (civil and military), political events (elections) and a general measure of political stability (i.e. a world bank index).

The authors measure the association between political connections, political uncertainty and audit fees. Audit fees reflect auditors’ perceptions of risk. The authors examine auditors’ business risk, clients’ audit and business risk after controlling for the variables used in prior audit fee research.

Results indicate that civil-connected firms pay significantly higher audit fees than non-connected firms owing to the instability of civil-political connections. Military-connected firms pay significantly lower audit fees than non-connected firms owing to the stable form of government. Furthermore, considering high leverage as a measure of clients’ high audit risk and high return-on-assets (ROA) as a measure of clients’ lower business risk, the authors interact leverage and ROA with civil and military connections. The results reveal that these risks moderate the relationship between political connection and audit fees. Election risk is independent of risk associated with political connections. General political stability reinforces the theme that a stable government results in lower risks.

The authors combine cross-sectional measures of political uncertainty (civil or military connections) with time-dependent measures (general measures of political instability and elections).

One of the strongest connections in politics in developing countries is through military links. This study aims to examine the auditor choice preference of the militarily-connected firms in Indonesia, an emerging country where there is a strong influence from the military on political decision-making.

The analysis used 3,473 firms-year observations listed on the Indonesian Stock Exchange spanning from 2003 to 2017 using regression and other statistical tests.

The results reveal that firms with a militarily-connected director are less likely to appoint one of the Big 4 auditors. Using the military reform as a natural experiment, the finding shows that militarily-connected firms did not change their auditor choice preference even after the military reform. Interestingly, I find that connected firms are associated with high earnings management. In addition, the different retirement position level and military affiliations of the connected directors generate different outcomes related to the auditor choice decision. Overall, the results indicate that militarily-connected firms were less likely to appoint one of the Big 4 auditors both before and after the military reforms. These results are robust, even after the author controlled for political connections, year fixed effects and industry fixed effects.

Because of the limitations of the prior literature on military connections, this study is developed based on the assumption that the militarily-connected directors have identical behavior whether they serve in either public or private companies. However, this assumption could be invalid which potentially affects the interpretation of some of the results in this study.

This paper provides direct evidence of the auditor choice preference of firms with a military connection. The evidence builds on the existing literature on the difference in auditor choice preference between politically and militarily-connected firms.

This study investigates the relationship between companies with military directors and audit fees in Indonesia.

Using upper echelon and audit pricing theories, the authors examine military directors' roles in the demand for and supply of auditing services. The authors use Indonesia as their research setting as their military forces have a long history of involvement in business. The study sample includes 898 firm-year observations on the Indonesia Stock Exchange during 2014–2018.

The authors find a negative relationship between military connections and audit fees. This is consistent with auditors assessing lower audit risk and charging lower audit fees to companies that have leaders with military experience. The study findings are strongest where there is military experience on the board of directors and where the military experience is from the Army.

This study extends the literature on the benefits of military experience in company leadership, especially in the context of auditing research. The study findings also have implications for the selection of board candidates and auditor risk assessments.

This paper aims to investigate the association between political connections and the audit report lag and whether related party transactions moderate the association between the two.

An ordinary least square regression is estimated whereby audit report lag is regressed on political connections, related party transactions and the interaction between the two. Data on the number and amounts of RPTs are hand-collected from audited financial reports. A firm-year observation is politically connected if at least one large shareholder (controlling at least 10 per cent of the votes directly or indirectly) or board member or commissioner is a current or former Member of Parliament, a minister or head of local government or closely related to a politician or party.

Findings show that the audit report lag is relatively short for politically connected firms but increases when such firms conduct both operating and loan-type related party transactions. This suggests that auditors understand the incentives for, and the implications of, related party transactions and hence exert additional audit efforts in scrutinizing financial statements: activities that will increase the audit report lag.

Although a large body of empirical research exists on the determinants of audit report lag, none has examined the impact of political connections. This paper further contributes to the auditing literature by documenting auditors’ evaluation of related party transactions in a developing country.

This study investigates the leadership tenets informing veterans’ work as school leaders. Drawing on 15 interviews and surveys with military veterans working as educational leaders, the study relies on Stake’s (2006) case study method to substantiate assertions that veterans: 1) come into education without the support of a transitional program, 2) are committed to taking care of their people, 3) have a strong belief in service, 4) are influenced by leadership that they have witnessed, and 5) are equipped to manage delegating and accountability by virtue of military experiences.

The purpose of this paper is to review the state of research of police militarization in the USA to explore the claim that the police are becoming more like the military, or “militarized” in order to identify gaps in the research on this topic that require further investigation.

To explore the state of police militarization, this paper draws on a scan of scholarly papers published on militarization in the American context as well as a select array of gray literature on the topic.

While the nature of militarization has received substantial scholarly attention, debate on the phenomenon remains and there is little consensus on the definition of what makes a department militarized. The impact of militarization is similarly unclear: some scholars suggest that it has a negative impact on policing because it creates community hostility and encourages police to see force as a central problem-solving tool. However, other scholars suggest militarization is a positive development, as it could promote professionalism and accountability. To date, there has been little empirical work on the impact of militarization on policing that could inform this debate.

This paper suggests that empirical assessments of how militarization affects use of force and legitimacy will be valuable for informing the militarization debate. As scholars on both sides of the debate have suggested that militarization affect policing outcomes in these areas, empirical tests here offer a way to explore both sides’ claims. Such tests could offer new evidence on how militarization is affecting the character and operations of American police.

The purpose of this paper is to examine the effectiveness of brand experiences on visitors’ memory formation and their revisit intention to a special event.

This study collected survey data from the Great New England Air Show to examine the soundness of the proposed theoretical model. Data were analyzed with partial least squares–structural equation modeling.

The results indicate an individual’s brand experience in the context of a special event can assist him/her in becoming more involved and finding meaningfulness in the experience, and form greater readiness to store memory of the event. Memory formation triggered by brand experience can help event practitioners anticipate positive behaviors of visitors after the experience.

The results suggest that event marketing managers and decision makers should create strong brand experiences focused on a mix of sensory, affective, intellectual and behavioral messages linked to the larger brand knowledge and memory formation.

The development of a theoretical model explaining brand experience with the purpose of explaining the internalization of brand experience in memory formation was documented and the study validated the brand experience concept in a non-monetary setting.

Anecdotal evidence shows that a number of military personnel have been appointed as board members by listed firms in Indonesia. Taking advantage of the unique setting of the strong influence of the military in Indonesian politics, the purpose of this paper is to provide direct empirical evidence on the effect of military connections on interest rate for listed firms in Indonesia.

This study uses a sample of 1,818 firm-year observations of firms listed on the Indonesian Stock Exchange (IDX) from 2004 to 2012 and employs Heckman’s two-stage regression and Coarsened Exact Matching methods to address endogeneity concerns on the firms’ establishment of military connections.

The finding reveals that connected firms significantly enjoy lower interest rates on debt than non-connected ones. These findings are robust to several robustness checks.

The results of this study should be treated with caution since the proxy of military connections limited only based on board connections. Hence, this may underestimate the results from this study. This research has implications for Indonesia’s regulators who are striving to improve accounting information and transparency of militarily connected firms.

The results of this study add to the literature that connected firms enjoy preferential benefits provided by the connections through lower interest charges from banks.

The study aims to examine the military-connected firms' risk preference, specifically in the innovation intensity level context. The authors argue that firms with military-experienced top management have conservative and risk-averse behavior, influencing the innovation investment policy.

The authors use nonfinancial Indonesian-listed firms from 2010 to 2018 amounted to 2,504 firm-year observations.

The authors document a negative relationship between military connection with both innovation activities and outputs. The additional analysis documents that risk-preferences of military-connected firms will be drastically changed when the industry has a high digital level, which confirms that risk-averse military-experienced management is less dominant with adaptation skill. The authors also identify that veterans did not need a long tenure to influence firms' innovation investment policy. Lastly, the result is robust due to various endogeneity tests employed.

This study further examines military-connected firms' technological innovation compared to prior studies and enriches the related literature.

This paper examines the influence of different types of political connections and political uncertainty on earnings credibility in Pakistan. Based on discernible differences, connected firms are grouped into civil connected and military connected firms.

The authors provide evidence concerning the earnings credibility incentives of groups of political connected firms and report that their incentives are significantly different. The findings remain robust to alternate methods of earnings credibility.

The findings evidence that civil (military) connected firms report less (more) credible earnings than the control group. High political uncertainty reduces the credibility of earnings. Results for the interaction of political connections and political uncertainty variables are not significant.

The paper investigates just one aspect of Pakistan's political economy, i.e. credibility of earnings; thus, it requires to be cautious on part of readers and policymakers. To reach a clearer conclusion, earnings credibility should be ex amined in the larger context, i.e. in conjunction with rent extractions, etc. A possible extension of the paper can be to investigate the channels of rent extractions used by the two types of connected firms.

The paper has contribution for policymakers as well as users of general purpose financial reports. The findings indicate that the users of general purpose financial reports should be more careful in the use of financial information during political uncertain periods and also of politically connected firms. Furthermore, policymakers should keep the larger context at the forefront while attempting to strengthen the enforcemnet regime.

This paper adds to extant political connections literature by identifying two types of politically connected firms and report that both groups have divergent financial reporting incentives. Furthermore, political uncertainty reduces the credibility of earnings.