Search results

The main purpose of this paper is to look at the link between chief executive officer (CEO) behavior and corporate social responsibility (CSR) engagement with the moderating role of bank risk-taking behavior.

Based on a 13-year data set (2007–2019), the authors applied the feasible generalized least squares with panel data to test the hypotheses.

The findings reveal a positive and significant link between CEO behavior and CSR engagement. Based on these findings, it can be argued that the characteristics of the CEO of the banks would improve the CSR strategies. Furthermore, the study suggests a moderating effect of bank risk-taking in the link between psychological bias and corporate social responsibility engagement (CSR engagement).

As CEO behavioral characteristics are essential to understanding CSR practice, boards of directors should consider the behavioral traits of dominant and overconfident CEOs while designing CSR practices.

If the bank behaves in a socially responsible manner, direct and indirect stakeholders may be able to evaluate the level of risk-taking in more detail.

This research highlights the importance of CEO behavior characteristics for CSR, which is a crucial application that supports the upper echelons theory; and fills a gap in literature research. It is one of the few studies examining the interaction between risk-taking, CEO behavior and CSR engagement.

The purpose of the study is to examine how awareness of the prior year fraud detection testing strategy impacts auditor judgments at differing levels of engagement risk.

A 2 × 2 between-subject experiment was conducted using 64 practicing auditors as participants. The independent variables are manipulated at two levels – awareness of prior-year testing strategy (aware versus unaware) and engagement risk (high versus low). The dependent measures are identified risk factors, targeted areas of auditors’ risk assessments, proposed audit procedures and the desire to consult with a forensic specialist.

Although continuing auditors anchor on prior-year audit strategies, new auditors (who are unaware of prior-year testing strategies) focus on generally known high-risk areas and firm standard procedures while planning the audit.

This paper contributes to the ongoing debate regarding how auditor tenure impacts auditors’ decision-making at a time when the profession and US regulators are focused on enhancing audit quality. The findings further suggest that auditors should take steps to enhance their judgments and avoid potential biases, particularly when planning continuing engagements.

Although the extant literature document anchoring by continuing auditors, this paper is the first to examine successor auditors’ fraud testing strategies. The findings suggest auditors on high-risk engagements who are unaware of the prior-year testing strategy may process information at a deeper level, as they are more likely to seek consultation with a forensic specialist rather than relying on simple heuristics.

The paper reports on a study that investigated the (potential) impact of client use of blockchain technology on financial statement audits of Australian accounting firms.

Data were primarily collected from semi-structured interviews with a range of stakeholders including audit partners from first- and second-tier accounting firms in Australia. The interviews focused on the perceived (potential) impact of blockchain on the stages of obtain (retain) engagement, engagement planning, risk assessment, audit evidence and reporting of financial statement audits of clients that use blockchain technology. Perceptions of changes to financial statement audits were interpreted using the logics of professionalism and commercialism.

Australian accounting firms have either obtained or considered engagements with clients with a cryptocurrency business or that use a blockchain platform although they are a small group. There is a view that blockchain technology is distinctive and therefore poses risks not encountered before in audit engagements. These risks would most likely shift how firms plan, design audit methodologies and execute financial statement audits. The study showed that the logics of professionalism and commercialism are not conflicting but instead complementary. They present both opportunities and challenges for firms to apply and develop audit expertise in an emerging area in audit.

Being an exploratory study, the findings are tentative. A case study of an audit engagement with a cryptocurrency business will add to a nuanced understanding of the challenges posed to financial statement audits by blockchain technology.

This study is novel because of its focus on the impact of an evolving technology on the stages of financial statement audits.

Public administration theory suggests that increased accountability in the public sector influences the auditor to lower materiality levels; thereby increasing the audit sample size; which decreases the likelihood of an inappropriate opinion. Accounting theory posits that engagement risk leads the auditor to lower materiality levels to decrease the likelihood of rendering an inappropriate opinion, in an effort to avoid litigation. The results of this study indicate, that in public sector entities, accountability guides the auditors’ materiality decisions.

Risk-based land-use planning is a major tool for reducing risks and enabling communities to design for and mitigate against natural hazard events. Moving towards a risk-based approach to land-use planning involves changes in planning and public communication practice for local government agencies. However, talking to people about how decisions made in the present may increase risk in the future is notoriously hard and requires carefully crafted public discussion. The paper aims to discuss these issues.

This paper explores the case of a local government planning agency (the Bay of Plenty Regional Council (BOPRC)) who adopted a risk-based approach to the development of their regional policy statement (RPS). The BOPRC designed an innovative approach to talking to their communities about future land use and acceptable risk based on a framework and toolkit of resources (the RBPA – risk-based planning approach).

The process addressed several common challenges of risk engagement for land-use planning as it: integrated input from policy and planning professionals, technical experts and community development specialists across local government organisations; used locally relevant community sessions that developed participants’ understanding of risk; linked ideas about risk tolerance to potential policy implications for local government; and built capacity amongst participants for judgment about risk acceptability and options for safeguard.

The process met public engagement planning criteria for robustness, i.e., valid process design and interpretation of feedback, and transparent integration into the final decisions. It enabled public views on natural hazards to be evaluated alongside technical input and incorporated into final decisions on thresholds for acceptable and unacceptable risk.

The approach taken has made significant contribution to risk engagement and land-use planning practice in New Zealand. In 2017, the BOPRC risk-based approach to their RPS received a national award from the New Zealand Planning Institute for contribution to advancing best practice. In 2018, it received further recognition through the Commonwealth Association of Planners Award for Outstanding Achievement in the Commonwealth.

Product market competition may have various impacts on audit fees. On the one hand, according to the agency theory, product market competition can mitigate agency problems between management and shareholders. For clients with higher product market competition, auditors will lower the level of engagement risk assessment and reduce the required level of audit evidence, and hence audit fees will be lower. On the other hand, according to the audit risk model, product market competition will increase client business risk and audit engagement risk. Moreover, for clients with competition advantage, client business risk and audit engagement risk will be lower, and hence a lower audit fee. The paper aims to discuss this issue.

In this paper, the authors collect financial accounting data and audit fee data from CSMAR database. Our sample selection starts with all available observations on the Chinese listed companies during 2006–2011. Since there is a big difference in accounting practices between financial companies and other industries, the authors delete observations on financial companies. The authors further remove observations with missing data, yielding 6,709 observations for the final analysis. To define the industry, the authors use the first two digits of standard industry classification code set by China Securities Regulatory Commission. In order to reduce the effect of extreme observations, the authors also truncate the data at 1 and 99 percent. The authors use the Herfindahl–Hirschman index (HHI) and the natural logarithm of the number of listed companies within the industry to measure product market competition intensity. HHI is calculated as the sum of the squared percentage of revenues of the client firm among the total revenues of all public companies, i.e. HHI = ∑ i = 1 N ( s i / S ) 2 . N is the number of listed companies in the industry, S_i is the revenues for an individual firm and S is the total revenues of all public companies within the same industry. A higher HHI score indicates fewer companies dominate the industry and hence lower intensity of competition in the product market. The second measure of industry competition intensity is LNN, the natural logarithm of the total number of public companies in the same industry of a client firm. A larger value of LNN indicates a larger number of competitors in the industry, and a higher level of competition intensity. Following the literature (Kale and Loon, 2011), the authors use Lerner index (or price-cost margin (PCM)) to measure the listed company’s competitive advantage. It is actually a measure of a firm’s power to influence product prices in the industry. The authors adopt the Peress (2010) method to estimate Lerner index as net operating income, divided by sales, i.e. PCM=(Sales–COGS–Selling expenses–Administrative expenses)/Sales. A higher value of PCM indicates more product pricing power and a higher competitive advantage of a company. The authors also use Lerner index ranking (R_PCM) to measure the competitive advantage of a company in the industry. The authors sort PCM values in ascending order in each industry and divide into ten groups. Then, the authors assign a value from one to ten to each listed company within each group in each industry. A higher R_PCM value represents higher market power and higher competitive advantage of a company. Based on Simunic (1980) framework, the authors develop the following model to test the relationship between product market competition, competition advantage and audit fees: LNAF_it=β₀+β₁ PMC_it+β₂ SIZE_it+β₃ INV_it+β₄ REC_it+β₅ GROWTH_it+β₆ PRELOSS_it+β₇ LEV_it+β₈ QUICK_it+β₉ OPIN_it+β₁₀ IBIG4_it+β₁₁ DBIG10_it+β₁₂ SWITCH_it+β₁₃ LOCATE_it+β₁₄ STATE_it+∑β YearDummies+ε_it.

Using a sample of 6,709 firm-year observations from the Chinese stock market for the period of 2007–2011, the authors find that the product market competition intensity has a negative impact on audit fees, which means that agency cost effect is dominant in audit pricing at industry level. In addition, a company’s competitive advantage in the industry has a significant and negative impact on audit fees, which means that business risk effect also plays a critical role in audit pricing of individual engagement. The findings indicate that, in determining audit fees, auditors in the emerging market of China consider both the competition intensity of their clients’ product market at the industry level and the competitive advantage of the specific clients within the industry.

The findings indicate that, in determining audit fees, auditors in the emerging market of China consider both the competition intensity of their clients’ product market at the industry level and the competitive advantage of the specific clients within the industry.

Foreign residents in Japan are classified as one vulnerable group at risk of disasters. Therefore, various measures are in place to engage, educate and offer first-hand experiences of disaster countermeasures required to overcome systematic disaster preparedness problems. However, the need for Japan to prevent the spread and infection of COVID-19 has necessitated measures that prohibit public gatherings and other social activities. This study aims to look at how these arrangements have impacted public engagement approaches to disaster preparedness for foreign residents within the Tokyo Metropolitan Area.

This study identifies local organizations and examines their methods of engagement that enhance the disaster preparedness of foreign residents in the Tokyo Metropolitan Area. The activities are examined in the context of when there was no COVID-19 pandemic and the current state of the pandemic. A change in activities attributed to the COVID-19 pandemic is then extracted and explained through field surveys and interviews with the relevant organization.

This study reveals that most disaster preparedness activities were best accomplished through in-person engagements. Nevertheless, online engagements have become the alternative option because of COVID-19 infection prevention. This change has widen the coverage of some activities but major setbacks include events cancelations and technical and technological challenges attributed to using online platforms.

This study did not examine the effectiveness of pre-COVID-19 pandemic engagement approaches and current changes attributed to the pandemic; many public engagement literatures acknowledge success to include the number of participants, the abilities of organizations to find ways to effectively and positively engage their stakeholders for meaningful partnerships, the number of clicks, access to a website and comments made online. Therefore, as organizations in this study have shown a glimpse of the above characteristics, there are indications of some level of effectiveness in their engagement approaches even amid a pandemic.

To avoid such situations in the future, there is the need for the Tokyo Metropolitan Government, local governments and associated organizations to develop public engagement approaches that are flexible to resist or cope with in-person, remote encounters, or sudden circumstances that could potentially derail planned activities.

The most effects attributed to the COVID-19 pandemic are the cancelation of many disaster drill exercises, community disaster walks, training of volunteers for foreign residents’ assistance and many hours of “Yasashii Nihongo” lesson. The cancelation of activities is a setback to the efforts of self-help and mutual aid campaigns by authorities to reduce the impacts of disasters.

The spirit of inclusion has been an embodiment of disaster management approaches in Japan for years for which policy recognitions have been tagged along the dimensions of public aid, self-help and mutual aid. These are aimed at engaging the populace, especially foreign residents in disaster training and exercises, language study and other communal activities for disaster preparedness. However, to prevent the spread of COVID-19, there have been a series of restrictions on gathering and inter-personal public engagement activities in Japan. As foreigners are classified as the most vulnerable to disaster in Japan, it is important to understand how these restrictions will/are affecting the efforts of integration and disaster preparedness, which are a crucial part of the Government’s effort to reduce casualties and damage in the anticipated Nankai megathrust earthquake. Besides the results being useful for government interventions, it also adds to the knowledge of the repercussion of COVID-19 and how to plan for emergencies.

Gripped by the COVID-19 pandemic, the airline industry has faced many restrictions. Based on the determining factor of repurchase intention, this research paper addresses the roles of brand engagement (BE) and consumer trust during the pandemic.

A number of 439 out of 500 questionnaires, which were distributed among the Iranian airlines' customers, were completed and returned (an 87% response rate). SmartPLS 3 was used to carry out the confirmatory factor analysis (CFA) and exploratory factor analysis (EFA) in order to validate the research hypotheses.

The results show that during the COVID-19 pandemic, BE had a significant effect on customer purchase intention. In addition, BE boosted customer trust and thereby increased repurchase intention. Perceived risks of COVID-19 moderated these relationships. The findings also show that airline customers are highly sensitive to various perceived risks and were especially so during the COVID-19 pandemic. These perceived risks have major impacts on customers' intention to reuse the services of airline companies. High levels of perceived risk decrease customer trust, BE and repurchase intention rates, and vice versa.

This paper provides authorities and decision-makers of the air transport industry with several practical recommendations based on the research findings. As the results confirmed, there is a worthwhile relationship between BE and customer trust; regarding the both direct and indirect benefits of customer trust for for-profit firms and the huge importance of trust in creating competitive advantages, different airline companies need to implement various strategies to engage customers with their brand names, and thereby institutionalize trust in their customers' minds during the pandemic. Since customer trust was also found to improve repurchase intention rates significantly, authorities of the airline industry must take actions to reduce feelings of mistrust and risk among consumers and increase customer trust during COVID-19.

This paper is the first to explore the effect of BE on airline customers' repurchase intentions during the COVID-19 pandemic. It has produced practical suggestions to employees and activists of the air transport industry regarding the use of BE as a tool to restore customer trust during and after the COVID-19 epidemic. This research focuses on the airline industry, which is particularly interesting given the industry's intensely competitive environment and the dramatic effect of COVID-19 on the industry.

This study aimed two objectives: The first objective was to explore carriers' intentions to use cargo electric vehicles (EVs) and the factors influencing these intentions in last-mile delivery (LMD). The other objective was to provide recommendations for policymakers and manufacturers to promote and customize cargo EVs to meet the requirements of carriers in the LMD sector.

In this study the authors constructed a research framework that adjusted and extended the original technology acceptance model (TAM). The proposed model combines eight psychological factors, including attitude, perceived usefulness, perceived ease of use, perceived risk, public engagement, face consciousness, financial incentive policy and carrier intention, in which four factors, namely attitude, perceived usefulness, perceived ease of use and intention, were obtained from the original TAM and the four remaining factors, namely perceived risk, public engagement, face consciousness and financial incentive policy, were added.

The results showed that psychological factors such as attitude, perceived ease of use, perceived risk, public engagement and face consciousness might affect carriers' intentions to use electric cargo vehicles in LMD service in Vietnamese cities. These results agree with the previous studies and confirm that attitude, perceived ease of use, perceived risk, public engagement and face consciousness might be important for shaping intention to use electric cargo vehicles in emerging markets.

This study has several limitations, first, the data were collected in Vietnam, a country with weak academic contributions. Therefore, these findings might not be generalizable to other areas. The authors expect to apply the same research framework to other countries to explore the similarities and differences across the countries. Second, the authors conducted the surveys in three cities; except for Hanoi, the other two cities are not really large markets in the LMD service sector. Third, the authors ignored the relationship between the demographic characteristics and electric cargo vehicles. Further studies should address this gap.

Based on the findings, manufacturers should ensure the high-quality performance of electric cargo vehicles in terms of extending driving range and shortening recharging time. Policymakers should develop the roadmaps for electric cargo vehicles, starting from switching from conventional cargo motorcycles to electric motorcycles. In addition, developing public charging infrastructure should be prioritized, which is the fundamental basis for operating electric cargo vehicles. Finally, manufacturers should research and develop a product that would improve the reputation of carriers because carriers with higher face consciousness are more likely to pursue brand-name and high-priced products in order to enhance their reputation.

This study contributes to the literature in two aspects: First, the authors investigated intentions to use electric cargo vehicles in LMD service, which is rare from other studies, and they further identified the psychological determinants of carriers' intentions. Second, the findings increase the knowledge of carriers' intentions and suggest implications for policymakers and manufacturers to promote the adoption of electric cargo vehicles in last-mile deliver service.

This study aims to evaluate how stakeholders affect project risks by analyzing the connection between stakeholder management and risk management in the information technology (IT) project context.

Using the Delphi method, interviews with IT project experts were conducted to examine four factors concerning stakeholder management and define probabilities for three risk variables. The design of experiments (DoE) method was applied for the design of the research instrument and data analysis.

Stakeholder engagement and communication with stakeholders have significant influence on the occurrence of negative risks, opportunities and the development of contingency strategies. These results provide project leaders with relevant data that better guide actions toward stakeholders and enhance project success probability.

This study clarifies important aspects of two main project management areas – stakeholder and risk management – in the IT projects context. This research also presented an unusual application for the DoE method which allows the subjective variables analysis by statistical tools and enables to explore factor influences on real project situations.