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Expatriate mobility is increasing globally, in volume and diversity. A growing element of this overall increase has been the greater share of self-initiated expatriates (SIEs) working outside their home countries. In some host countries, SIEs make up a majority of the overall workforce. The purpose of this paper is to examine the determinants of innovative work behavior (IWB) of SIEs in one such country. Drawing upon leader-member exchange (LMX) theory and the conceptual framework of the resource-based view of career capital, the authors’ examine the influences of LMX, perceived innovation-reward, job knowledge and contextual knowledge on SIEs’ IWB.

The paper is based on the analysis of survey results from 229 SIEs based in the United Arab Emirates. The authors use hierarchal regression and an SPSS macro to assess the significance of the interaction effects.

Results indicate significant direct effects for LMX and perceived innovation-reward on SIEs’ IWB. Results also reveal significant interaction effects suggesting that the relationship between LMX and SIEs’ IWB is stronger when job knowledge is high and when reward for innovation is high.

This is the first study to examine the determinants of SIE’s IWB. This study investigates the effect of LMX, career capital differences (job knowledge and contextual knowledge) and perceived innovation-reward on SIEs’ IWB. This is also the first study to examine the interaction effects of LMX and individual differences (job knowledge and contextual knowledge) on SIEs’ IWB.

This paper aims to investigate two issues. First, the authors test the effect of the Sarbanes–Oxley Act (SOX) on audit quality after 10 years. Second, the authors test whether it was necessary to close all of the Arthur Andersen offices due to the misbehavior of a few (e.g. the Houston and Atlanta offices).

The authors have used conservatism (Basu) as a proxy for audit quality.

The authors find that, over the long run (10 years) after SOX adoption, there is a significant positive change in conservatism as compared to during the previous similar period. In addition, the authors find that only 6 of the 20 city-level offices of Arthur Andersen were less conservative than were their other Big 6 competitors in the same city. Furthermore, the results also suggest that some city-level offices of Arthur Andersen were engaged in more conservative accounting practices than were their competitors and the Houston Andersen offices.

This study documents, using empirical evidence, that the implementation of SOX is successful, and that one factor that helped lead to this success might be the harsh punishment on Arthur Andersen.