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Part II of the Public Company Accounting Oversight Board (PCAOB) inspection report is released only when firms fail to remediate quality control criticisms and is intended to be a public signal of audit quality. The purpose of this paper is to reexamine whether audit clients react to the release of Part II of the PCAOB inspection report as a signal of audit quality.

This study uses a difference-in-difference regression model to examine the association between the release of Part II of the PCAOB inspection report and an audit firm’s change in market share. A sensitivity analysis is also performed to determine whether the main findings are robust to the timing of the release of the report and type of quality control criticism included in Part II of the inspection report.

After controlling for the prior year’s changes in market share, the authors find no evidence that clients react to the public release of Part II of the report. In the second part of the study, they examine when clients become aware of the contents of the Part II report prior to its release. Firms with audit performance criticisms experience a decrease in market share following the release of Part I. Firms with firm management criticisms experience a significant decrease in market share following the remediation period and before the public release of Part II.

The results suggest that Part II of the PCAOB inspection report does not provide new information to the market. Clients appear to be aware of the information contained in Part II of the PCAOB inspection report prior to its release. The authors believe that the delay in releasing the Part II report may create an information imbalance, and the PCAOB may want to consider ways to improve the timeliness of the information.

This study questions the generalizability of prior research which finds that Part II of the inspection report provides new information that is valued by the public company audit market as a signal of audit quality. The findings provide new evidence that the contents of Part II and the firm’s ability to remediate the quality control concerns are known to audit clients prior to the public release.

In this paper, the authors study the phenomenon of price clustering in the Pakistan Stock Exchange (PSX), a market viewed as one of the best-performing stock markets in the world during 2014–2017. The authors study the effect of stock-level variables on price clustering and analyze the determinants of the cross-sectional patterns of price clustering in the PSX, in particular the causal link between price clustering and political instability.

The authors' dataset comprises daily observations on 100 PSX stocks spanning from January 1, 2009 to June 30, 2019. The authors use multivariate regression and spectral analysis to shed light on the dynamics of stock price clustering in PSX.

The authors document abnormally high levels of stock price clustering, particularly on integer increments, in PSX. The nature of stock price clustering in PSX is consistent with the negotiation hypothesis of Harris (1991). The levels of stock price clustering on PSX are persistent and contain a cyclical component. Furthermore, the authors find that political uncertainty in Pakistan is a significant contributor to the high levels of price clustering on PSX. The authors' conclusions are robust to alternative econometric specifications and different measures of price clustering and political uncertainty.

The authors' findings are of interest to investors and policymakers. Since price clustering decreases market quality and degrades the information content of stock prices, the authors' study shows that price efficiency in PSX has not improved despite major reforms over the last decade. One practical implication of the authors' results is that investors should be cautious while rebalancing portfolios around political events such as general elections because stock price clustering increases in the PSX during these periods. As a result, stock prices are likely to deviate from their intrinsic values.

Research on price clustering is limited to developed markets, and emerging/frontier markets have been largely overlooked. The phenomenon of price clustering in the PSX has yet to be studied, despite the relevance of the PSX for emerging/frontier market investors.

The authors examine how local firms, regardless of industry, influence each other's corporate policies. The authors argue that there are two motives for why local firms may have similar corporate social responsibility (CSR) policies. First, the peer effect argues that a firm's chief executive officer (CEO) will likely interact regularly with fellow CEOs of local firms, especially those of similar size, influencing each other's firm to make similar decisions. Second, firms may believe that CSR policies can be used to attract local talent. That is, if there are many firms in the area, employees may elect to work for the firm that treats their employees better or shares their values. Thus, to compete for labor resources, local firms will herd in similar CSR policies.

Through regression analysis, the authors compare a firm's CSR policies to the policies of other firms in the geographic area (within 100 miles).

The authors find support for the peer effect hypothesis, as local firms of the same size positively and significantly affect a firm's own CSR score. In contrast, local firms of different sizes have a negative relationship. The combination of CSR scores being related to the CSR scores of similar sized firms and not to other size firms suggest that the peer effect dominates the labor pool effect.

Through regression analysis, the authors compare a firm's CSR policies to the policies of other firms in the geographic area.

This paper aims to investigate numerically the free convective heat transfer efficiency inside a rectotrapezoidal enclosure filled with Al₂O₃–Cu/water hybrid fluid. The bottom wall of the cavity is uniformly heated, the upper horizontal wall is insulated, and the remaining walls are considered cold. A new thermophysical relation determining the thermal conductivity of the hybrid nanofluid has been established, which produced results those match with experimental ones.

The governing partial differential equations are solved using the finite element method of Galerkin type. The simulated results in terms of streamlines, heat lines and isotherms are displayed for various values of the model parameters, which govern the flow.

The Nusselt number, friction factor and the thermal efficiency index are also determined for the pertinent parameters varying different ratios of the hybrid nanoparticles. The simulated results showed that thermal buoyancy significantly controls the heat transfer, friction factor and thermal efficiency index. The highest thermal efficiency is obtained for the lowest Rayleigh number.

This theoretical study is significantly relevant to the applications of the hybrid nanofluids electronic devices cooled by fans, manufacturing process, renewable energies, nuclear reactors, electronic cooling, lubrication, refrigeration, combustion, medicine, thermal storage, etc.

The results showed that nanoparticle loading intensified the rate of heat transfer and thermal efficiency index at the expense of the higher friction factor or higher pumping power. The results further show that the heat transmission in Al₂O₃–Cu/water hybrid nanofluid at a fixed value of intensified $\phi_{hnf}$ compared to the Al₂O₃/water nanofluid when an amount of higher conductivity nanoparticles (Cu) added to it. Besides, the rate of heat transfer in Cu/water nanofluid declines when the lower thermal conductivity Al₂O₃ nanoparticles are added to the mixture.