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The purpose of this paper is to examine the stability or loyalty in the auditor‐client relationship. It explores the association between audit fees and auditor loyalty. Specifically, it investigates whether clients paying less audit fees relative to other companies in their industries are more likely to be loyal to their auditors.

Logistic and ordinal regression analyses are used to compare loyal clients to clients that switched audit firms after controlling for factors that are expected to be associated with client loyalty.

Results show that relative audit fees have a significant effect on the degree of loyalty of clients to their audit firms. Additional analysis shows that the loyalty of clients that pay higher audit fees relative to similar clients in their industry are highly affected by increases in audit fees. However, the loyalty of clients who pay lower audit fees compared to similar clients in their industry is not affected by further increases in relative audit fees.

The study does not differentiate between auditor dismissal and auditor resignation in the classification of clients that switched auditors. It also does not classify auditor switches into auditor‐initiated switches and client‐initiated switches.

It is cost effective for clients to stay with the same audit firm. Audit firms should be careful when adjusting their audit fees from one period to another, as there is a higher probability of losing a client, when increasing the audit fees, especially if this client is already paying higher audit fees relative to similar clients.

The findings of this study increase the understanding of how relative audit fees affect client loyalty in the audit market.

Different from Marx's analysis of the dialectical relationship between the production and realization of surplus value, the Okishio theorem only shows one aspect of the contradictory movement of the total social capital, that is, the reverse effect of the realization of surplus value on the production of surplus value.

The production of surplus value and the realization of surplus value are simplified into one process. This simplification eliminates the contradiction between the production and realization of surplus value, and the antagonistic contradiction between accumulation and consumption and the antagonistic production-distribution relationship in capitalist society are naturally covered up.

Therefore, it cannot explain the actual expansion way of the falling general rate of profit as the historical development law of capitalism. Nevertheless, it should be noted that the Okishio theorem places the analysis of the general rate of profit back into the social reproduction model with department equilibrium, which points out the significance of wage income to the realization of surplus value and outlines the macro mechanism of the realization of surplus value reacting to the production of surplus value. It also strongly promotes the research progress of the law that the profit rate tends to decline.

The mistake of the Okishio theorem is that the exchange process in the labor market forms the real wage rate. It determines the production price of wage goods, which thereby determines that the production price of capital goods and general rate of profit, the production of surplus value and realization of surplus value are simplified into the same process, and only the value that can be realized is the real value.

The purpose of this study is to test whether the realization rate on audit engagements increases with auditor tenure in competitive markets, suggesting the presence of initial audit lowballing.

Using regression analysis, we test this hypothesis with fee- and cost-related data from a sample of local governments audited by a single audit firm. Based on representations of the firm, we classify the audit market for the 127 cities, counties and school districts in our sample as competitive and the audit market for the 93 special district audits as non-competitive.

As hypothesized, we find that in the competitive market, the realization rate on audit engagements increases with auditor tenure but does not do so in the non-competitive audit market.

We cannot identify the specific engagements which were subject to a competitive bidding process, so we rely on the auditor’s representation of competitiveness by entity type.

To our knowledge, the central prediction of audit pricing models that the auditor’s realization rate increases with auditor tenure has not been tested in real audit markets because proprietary cost data are rarely available. Testing this prediction is the primary contribution of this paper.

Using the strong motion data of K-net in Japan, the continuous magnitude prediction method based on support vector machine (SVM) was studied.

In the range of 0.5–10.0 s after the P-wave arrival, the prediction time window was established at an interval of 0.5 s. 12 P-wave characteristic parameters were selected as the model input parameters to construct the earthquake early warning (EEW) magnitude prediction model (SVM-HRM) for high-speed railway based on SVM.

The magnitude prediction results of the SVM-HRM model were compared with the traditional magnitude prediction model and the high-speed railway EEW current norm. Results show that at the 3.0 s time window, the magnitude prediction error of the SVM-HRM model is obviously smaller than that of the traditional τ_c method and P_d method. The overestimation of small earthquakes is obviously improved, and the construction of the model is not affected by epicenter distance, so it has generalization performance. For earthquake events with the magnitude range of 3–5, the single station realization rate of the SVM-HRM model reaches 95% at 0.5 s after the arrival of P-wave, which is better than the first alarm realization rate norm required by “The Test Method of EEW and Monitoring System for High-Speed Railway.” For earthquake events with magnitudes ranging from 3 to 5, 5 to 7 and 7 to 8, the single station realization rate of the SVM-HRM model is at 0.5 s, 1.5 s and 0.5 s after the P-wave arrival, respectively, which is better than the realization rate norm of multiple stations.

At the latest, 1.5 s after the P-wave arrival, the SVM-HRM model can issue the first earthquake alarm that meets the norm of magnitude prediction realization rate, which meets the accuracy and continuity requirements of high-speed railway EEW magnitude prediction.

This study aims to render a fundamental assessment of the Basel II internal ratings-based (IRB) approach by taking readings of the Australian banking sector since the implementation of Basel II and comparing them with signals from macroeconomic indicators, financial statistics and external credit ratings. The IRB approach to capital adequacy for credit risk, which implements an asymptotic single risk factor (ASRF) model, plays an important role in protecting the Australian banking sector against insolvency.

Realisations of the single systematic risk factor, interpreted as describing the prevailing state of the Australian economy, are recovered from the ASRF model and compared with macroeconomic indicators. Similarly, estimates of distance-to-default, reflecting the capacity of the Australian banking sector to absorb credit losses, are recovered from the ASRF model and compared with financial statistics and external credit ratings. With the implementation of Basel II preceding the time when the effect of the financial crisis of 2007-2009 was most acutely felt, the authors measure the impact of the crisis on the Australian banking sector.

Measurements from the ASRF model find general agreement with signals from macroeconomic indicators, financial statistics and external credit ratings. This leads to a favourable assessment of the ASRF model for the purposes of capital allocation, performance attribution and risk monitoring. The empirical analysis used in this paper reveals that the recent crisis imparted a mild stress on the Australian banking sector.

Given the range of economic conditions, from mild contraction to moderate expansion, experienced in Australia since the implementation of Basel II, the authors cannot attest to the validity of the model specification of the IRB approach for its intended purpose of solvency assessment.

Access to internal bank data collected by the prudential regulator distinguishes this paper from other empirical studies on the IRB approach and financial crisis of 2007-2009. The authors are not the first to attempt to measure the effects of the recent crisis, but they believe that they are the first to do so using regulatory data.

The literature on individual differences in innovative work behavior (IWB) reveals inconsistencies in the relations of personality traits and tenure on innovation at work. To provide greater clarity about the effects of these antecedents, the purpose of this paper is to report a study of the moderating effects of tenure on the associations of traits and IWB, and apply a theoretical lens based on the trait-activation theory.

In all, 146 employees of a UK-based financial institution completed measures of conscientiousness and openness, and had three aspects of IWB (idea generation, promotion, and realization) rated by their line-supervisor. All participants were on graduate training programs. Hierarchical regression analyses were used to test the moderating effects of tenure on the associations of the self-reported traits with the supervisor-rated IWB outcomes.

Tenure moderated the effects of conscientiousness on IWB, with highly conscientious employees being less innovative with longer tenure. Tenure moderated the effect of openness with idea generation with highly open employees generating more ideas if they were longer tenured.

Management of innovation requires differentiated strategies based on the personality traits and tenure of individual employees. Implications for recruitment, socialization and development are discussed.

This is the first study to examine empirically the interactions of traits and contextual factors (i.e. organizational tenure) on IWB, framed around a strong theoretical foundation (i.e. trait activation theory). The study also makes notable contributions by measuring innovative behavior using a supervisor-rated and multidimensional approach.

The purpose of this paper is to know the relevance between the changes in non-taxable income with the receipt of Income Tax Article 21, Income Tax Article 25/29, the receipt of value added tax and the receipt of luxury sales tax r (PPnBM).

Changes in non-taxable income have potentially reduced the receipt of Income Tax Article 21, Income Tax Article 25/29 of individual taxpayers, otherwise it increased value added tax and luxury sales tax receipts. This study used the descriptive qualitative approach, by conducting a simple case study based on actual data. Data analysis technique used is descriptive statistics and comparison analysis. Research conducted at the Kantor Wilayah Direktorat Jenderal Pajak Jawa Timur II.

The results show that the changes of non-taxable income in 2013 and 2015 did not affect the receipt of Income Tax Article 21 but the growth is slowed, while the receipt of Income Tax Article 25/29 increased.

Value added tax and luxury sales tax receipts, increasing every year, slowed down in 2013, but increased higher in 2015.

The purpose of this study is to use a steady-state model structure to investigate earnings management (EM) theoretically in the context of different expense theories. Empirically, the objective is to apply the theoretical model to investigate the implicit choice of expense theories for reporting expenses. The study aims to present a new approach to analyze EM.

The study makes use of ten-year time-series data originally from 1,015 Finnish public and private firms to estimate the parameters of the steady-state model, and to investigate which expense theories the firms implicitly follow in financial reporting. The parameters are estimated using the restricted least squares regression method. The final sample included data from 631 firms fulfilling restrictions for the consistency of estimates.

The paper provides empirical insights about expense theories that Finnish firms implicitly follow in financial reporting. Evidence shows that the reporting of expenses mainly follows the units-of-revenue and the rate-of-return theories. Only a small number of firms follow the interest expense theory.

The study is based on a steady-state approach, and therefore, the research results may lack generalizability as only 62% of the original sample firms obtained consistent estimates. Therefore, researchers are encouraged to use more general models for further theoretical and empirical work.

The paper includes implications for a new approach to EM. It also gives implications how to analyze different expense theories in the context of EM both theoretically and empirically.

This paper develops a new approach to investigate EM.

This paper aims to study whether noisy public information that investors receive about the expected aggregate dividend growth rate can help better understand the large average equity premium and stock return volatility in the US financial market.

This paper considers a dynamic asset pricing model with a representative agent, who cannot observe the expected growth rate of dividends and must learn its value by using noisy information. In addition, this paper presents a simple model for noisy information calibration.

With a coefficient of relative risk aversion below 10 and the time impatience parameter between 0 and 1, the calibrated model is able to yield an average risk-free interest rate, equity premium and stock return volatility that are close to the stylized facts in the US financial market.

First, this paper presents a different equilibrium model with a simple “catching up with the Joneses” preference and noisy information. Second, this paper develops a simple calibration procedure to calibrate the information process to study whether the calibrated model can help explain the large average equity premium and stock return volatility in the US financial market data.

The paper aims to develop an intelligent anti-corrosion expert system based on browser/server (B/S) architecture to realize an intelligent corrosion management system.

The system is based on Java EE technology platform and model view controller (MVC) three-tier architecture development model. The authors used an extended three-dimensional interpolation model to predict corrosion rate, and the model is verified by cross-validation method. Additionally, MySQL is used to realize comprehensive data management.

The proposed anti-corrosion system thoroughly considers a full use of corrosion data, relevant corrosion prediction and efficient corrosion management in one system. Therefore, this system can achieve an accurate prediction of corrosion rate, risk evaluation, risk alert and expert suggestion for equipment in petrochemical plants.

Collectively, this present study has important ramifications for the more efficient and scientific management of corrosion data in enterprises and experts’ guidance in controlling corrosion status. At the same time, the digital management of corrosion data can provide a data support for related theoretical researches in corrosion field, and the intelligent system also offers examples in other fields to improve system by adding intelligence means.