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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.

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.

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.

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.

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.

The purpose of this paper is to annotate an attribute of a problem, a solution or no annotation on learners’ opinions automatically for supporting the learners’ discussion without a facilitator. The case method aims at discussing problems and solutions in a target case. However, the learners miss discussing some of problems and solutions.

Because opinions about problems and solutions on the same case are similar to each other, the proposed method uses opinions that are correctly annotated in past discussions for annotating an appropriate attribute on each opinion in discussions of the same case. The annotation on each opinion is identified by Support Vector Machine learned with opinions and annotations in the past discussion.

Compared to a simple method that uses decision tree classification, this proposed method improves the recall rate and the precision rate of annotating the attribute by over 10 per cent. The proposed method is effective for automatic annotation.

Because the recall rate and the precision rate of annotating an attribute of a problem are over 80 per cent, it is possible to make learners aware of problems that they should discuss. On the other hand, the recall rate and the precision rate of annotating an attribute of a solution are still low. The authors discuss the research issue to improve the rates for automatic annotation.

The purpose of this article is to examine the US Supreme Court’s much anticipated decision in Omnicare, Inc. v. Laborers Dist. Council Const. Indus. Pension Fund. In this 2015 case, the Supreme Court announced important principles for interpreting the application of the two bases for liability under Section 11 of the Securities Act of 1933 to statements of opinion expressed in registration statements filed with the Securities and Exchange Commission in connection with public securities offerings.

The article examines the Supreme Court’s articulation of the standards federal courts must apply under Section 11 to determine if opinion statements were untrue statements of a material fact or misleading because they omitted material facts necessary to make the statements of opinion not misleading. The paper identifies a number of the complexities involved in the Supreme Court’s approach and emphasizes the nuanced assessment of the facts surrounding opinion statements courts will be required to undertake by Omnicare.

The Omnicare decision has significant implications for the litigation of Section 11 claims challenging statements of opinion and for the preparation of registration statement disclosures. The Omnicare decision dramatically alters the standards for reviewing Section 11 claims premised on opinions long applied in a number of US federal appellate circuits. The decision is likely to result in more Section 11 claims based on supposedly misleading opinion statements, and potentially in a greater number of Section 11 claims that survive at least an initial motion to dismiss. Omnicare highlights the importance of including in registration statement disclosures meaningful cautionary statements identifying important facts that could cause actual outcomes to differ materially from views expressed in an opinion.

Expert guidance from experienced financial services lawyers.

The role of evidence-based psychological knowledge in cases of juvenile offending is essential to make appropriate decisions relating to youth who violate legal or social norms, as it carries implications for treatment, intervention and practice. Psychological expert opinions therefore need to meet high formal and methodological requirements while maintaining ethical standards. The purpose of this study is to investigate psychological expert opinions in cases of juvenile misbehavior reported to regional courts in Poland. Juvenile court proceedings concern cases of demoralization and/or delinquent offenses. Demoralization is a legal concept described in the Act of June 9, 2022 on juvenile support and resocialization. This concept was not defined; it was only described through examples of behaviors indicating demoralization. These include the following: violations of the principles of community life; evading compulsory education or schooling; use of alcohol, narcotic drugs, psychotropic substances, their precursors, substitutes or new psychoactive substances; and prostitution.

To reach these goals, court records of juvenile cases in six district courts (N = 253) were gathered and analyzed. A semistructured questionnaire was used to examine the cases in which psychologists were appointed and to analyze the procedures used by these experts for assessing adolescents and their families.

Findings revealed that family judges appoint psychologists both in cases of “demoralization” (i.e. status offenses) and in cases of juvenile delinquency. The opinions were delivered by psychologists who were mostly members of diagnostic teams. Results indicate that such opinions generally comply with the minimal standards recommended by the Ministry of Justice, yet a few problems were observed with the determination of levels of demoralization.

The limitations of diagnostic tools used by psychologists are discussed, and recommendations for future practice are provided.

With pay transparency (PT) as an emerging trend in organizations around the world and the European Union promoting open pay regulations, PT is of increasing interest to scientists, managers and policymakers. However, it is still unclear what people think about PT and what theoretical perspectives might explain people's views on transparent pay. Therefore, the purpose of this paper is to explore and systematize opinions about PT and to propose theoretical frameworks to understand different reactions to it.

Qualitative reflexive thematic analysis of the Internet debate that emerged in Poland in 2019 in response to the proposition of new law regulations aimed to improve PT by introducing obligatory pay ranges in job offers.

The author's analysis revealed a set of 41 specific and often opposite opinions about PT, which allow for the systematization of hopes and concerns related to PT around the 7 favorable and 6 unfavorable higher-order themes.

The author's results might inform policymakers and managers about the possible risks and benefits of PT implementation. Revealed opposite opinions about PT raise awareness that PT policies, while solving some social problems, might simultaneously create others.

The author provides new insights into opinions that people hold about transparent pay based on real-world data. The author suggests theoretical perspectives for understanding and predicting reactions to PT, such as Hobfoll's Conservation of Resources Theory and Adam`s Equity Theory. Based on this, the authors propose that opposite opinions about PT might be explained by (a) perceived pay dispersion fairness and (b) perceived PT costs-benefits ratio.

The paper aims to construct a spatiotemporal situational awareness framework to sense the evolutionary situation of public opinion in social media, thus assisting relevant departments in formulating public opinion control measures for specific time and space contexts.

The spatiotemporal situational awareness framework comprises situational element extraction, situational understanding and situational projection. In situational element extraction, the data on the COVID-19 vaccine, including spatiotemporal tags and text contents, is extracted. In situational understanding, the bidirectional encoder representation from transformers – latent dirichlet allocation (BERT-LDA) and bidirectional encoder representation from transformers – bidirectional long short-term memory (BERT-BiLSTM) are used to discover the topics and emotional labels hidden in opinion texts. In situational projection, the situational evolution characteristics and patterns of online public opinion are uncovered from the perspective of time and space through multiple visualisation techniques.

From the temporal perspective, the evolution of online public opinion is closely related to the developmental dynamics of offline events. In comparison, public views and attitudes are more complex and diversified during the outbreak and diffusion periods. From the spatial perspective, the netizens in hotspot areas with higher discussion volume are more rational and prefer to track the whole process of event development, while the ones in coldspot areas with less discussion volume pay more attention to the expression of personal emotions. From the perspective of intertwined spatiotemporal, there are differences in the focus of attention and emotional state of netizens in different regions and time stages, caused by the specific situations they are in.

The situational awareness framework can shed light on the dynamic evolution of online public opinion from a multidimensional perspective, including temporal, spatial and spatiotemporal perspectives. It enables decision-makers to grasp the psychology and behavioural patterns of the public in different regions and time stages and provide targeted public opinion guidance measures and offline event governance strategies.

This study aims to investigate whether auditors compromise their independence for economically important clients in family business settings.

The authors empirically examine the research question based on China for the years 2011 to 2020. The dependent variable is the auditors’ propensity to issue modified audit opinions, which is a proxy for auditor independence. The authors use relative client audit fees as a proxy for client importance. To address endogeneity issues in the selection of family firms, the authors use the two-stage least squares regression model and, subsequently, the propensity score matching and Hausman firm fixed effect modeling.

This study reveals that the propensity to issue modified audit opinions is positively correlated with client importance. Big-N auditors are more likely to issue modified audit opinions for their economically important family firm clients, whereas such evidence is not found for non-Big-N auditors. Results are consistent and robust to endogeneity test and sensitivity analysis.

This study enriches the literature on auditor independence and the effect of family firms’ ownership structure factors on audit reporting behavior for their economically important clients. Findings may prove useful for managers and practitioners interested in family business.

The objective of this study is to examine how formal and informal institutional environment influences managers’ fair value opinion shopping behaviour in the largest International Financial Reporting Standards adopter, China.

To test the hypotheses, I conduct a 2 × 2 between-subject randomised experiment since the inferences about cause and effect are important in this study. The between-subject experimental situations are manipulated on the basis of the financial condition of companies and boards’ oversight.

I find that managers are likely to seek favourable fair value opinions from external valuation professionals when they are under the weak boards’ oversight and high stress to meet the regulation target of the China Securities Regulatory Commission. These results are more pronounced for managers with higher both rent-seeking and favour-seeking guanxi orientations are more likely to engage in fair value opinion shopping.

Consistent with theoretical analysis of Balfoort et al. (2017), this study provides empirical evidence that guanxi influences the neutrality and faithful representation in fair value measurement in China. In addition, the findings extend Salzsieder’s study (2015) and reflect the context-embeddedness nature of accounting.

Once a corporate crisis is entangled with a social issue, how consumers make sense of the crisis can be impacted by issue-based opinion polarization. This study investigates the underlying mechanisms as consumers go through this process. This study also examines whether corporate social advocacy (CSA) can be an effective crisis-response strategy for mitigating reputational loss.

Theoretical inquiries were empirically tested using an online experiment (N = 792). The experiment set the context in China, in a working-overtime-issue-related crisis. It had a 2 (online exposure: anti-issue opinion vs. pro-issue opinion) × 2 (CSA: absence vs. presence) between-subject design with a continuous variable (pre-existing issue attitudes) measured before the manipulation.

This study found that pre-existing issue attitudes can be directly and indirectly associated with corporate reputation, for the issue attitudes influence how consumers attribute crisis blame. Such a direct effect of pre-existing issue attitudes varies depending on which polarized opinion consumers were exposed to on social media. This study also found CSA to be a robust crisis response strategy, through multiple mechanisms, in protecting the corporate reputation.

Scholars are scarcely aware of the threats that issue-based opinion polarization poses to corporate reputation. This study serves as an early attempt to provide theoretical explanations. In addition to this, this study extends the current conceptual understandings of CSA during corporate crises that involve social issues while adding fresh insights into the established typology of crisis-response strategies.

The purpose of this paper is to provide an empirical approach to the understanding of the potential interplay between influencer opinions and consumer-generated information on consumer decision-making. Given the growth of influencer marketing and the pervasive nature of consumer star-ratings, it becomes critical to understand how and why these information sources influence consumers’ shopping decisions.

Drawing from the literature on source credibility, this paper proposes that influencer opinion interacts with the influencer’s reach on influencer credibility, skepticism towards the product and purchase intentions. Boundary conditions of consumer-generated information are also tested.

Convergent results across three studies indicate that the effect of influencer opinion is contingent upon both valence of the opinion and reach of the influencer. Consumer-generated information (i.e. star-ratings and the volume of ratings) moderates the effect of influencer opinion on purchase intentions. These effects are mediated by the credibility of the influencer and skepticism towards the product.

Understanding the relative impact of influencer opinions in the presence of other consumer-generated information provides managers with a framework to effectively manage online communications.

To the best of the authors’ knowledge, this paper provides a theoretically grounded first look at the potential interplay between two extremely powerful factors, influencer opinion and consumer-generated information. This paper provides a better understanding of the psychological mechanism behind the intricate workings of consumer-generated information.