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The purpose of this paper is to examine the association between the cost of debt (COD) and auditor industry expertise using Taiwanese data. Since previous studies (Li et al., 2010) have only examined the relation between industry specialization and COD at the audit firm level in western countries, the authors further examine the association between industry specialization and COD at the individual auditor level in an Asian context.

The authors use the interest rate on the firm’s debt as a proxy variable for the COD (Francis, Khurana and Pereira, 2005). The authors adopt three different methods to measure industry specialization, which consist of the auditors’ market share in terms of client sales and number of clients, and client assets.

The results indicate that the clients of industry specialists at individual auditor levels have a lower COD.

First, the authors extend the research of Li et al. (2010) and find that the clients of individual auditor industry specialists also have a lower COD. Second, the authors also believe the evidence on the effects of industry expertise at the individual auditor level may have policy implications for regulators and public investors. Finally, in contrast to works carried out in the US market, the authors provide empirical evidence for the relation between industry specialization and COD in an Asian market.

The purpose of this study is to investigate whether the likelihood that a firm will face financial statement fraud litigation is affected by the disclosure of internal control material weaknesses (MW) and the “busyness” of a firm’s board of directors.

The results are derived from logistic regression models and data are collected from the Audit Analytics database augmented by data from CompuStat, the Stanford Law School website and the SEC Accounting and Auditing Enforcement Releases. The authors also test for endogeneity with a propensity score matching procedure.

The authors find that an MW report is strongly associated with the likelihood of subsequent financial statement fraud litigation, and that the influence of entity-level MW on litigation likelihood is stronger than that of account-level MW. Moreover, the number of outside board directorships significantly increases the influence of entity-level MW on the likelihood of litigation, indicating that board of directors’ busyness significantly increases the risk of litigation.

Previous research notes that board members holding multiple directorships cannot effectively oversee the financial reporting process and, thus, are associated with poorer governance. The authors extend this implication of board busyness to the association between disclosure of MW type and the filing of subsequent litigation alleging financial statement fraud. To the best of the authors’ knowledge, no other research has done so.

The purpose of this study is to investigate the association between a corporate executive’s gender and audit fees. Based on the findings of extant research that there are gender-based differences that may have implications for the financial reporting process, the authors posit an association between CEO gender and audit fees.

The authors test their hypothesis by performing both univariate and multivariate regression analyses on a sample of 8,402 Compustat firm-year observations from US firms for 2003-2010.

The authors' findings indicate that firms with female CEOs are associated with higher audit fees. Their results hold after controlling for self-selection bias and factors shown by prior studies to be associated with audit fees.

Although the authors control for factors that would increase audit fees, their study is limited by the degree to which higher audit fees reflect higher quality audits. Also, because their sample is from large publicly traded nonfinancial firms, their results may not be applicable to other types of firms. The authors study has implications for policy setting because their findings provide some evidence of a significant association between a CEO characteristic (gender) and financial reporting quality. Their findings, thus, provide some support for the Securities and Exchange Commission requirement that CEOs should certify their firm’s financial statements.

The authors study contributes to the audit fees and corporate governance literature by providing empirical evidence of an association between audit fees and CEO gender. To their knowledge, no study, to date, has investigated this association.

The purpose of this study is to investigate the compliance of US‐traded foreign firms with Sarbanes‐Oxley section 404 (SOX 404) by examining recent changes in their material internal control weakness (ICW) disclosures. This study also seeks to explore as a result of compliance, whether large firms can improve their internal controls than small and mid‐sized businesses (SMBs) can.

This study uses a logit regression model to test the data collected from Compustat and AuditAnalytics databases.

Both US firms and US‐traded foreign firms from developed countries experienced a significant descending trend of material ICW disclosures from 2004 to 2006. US SMBs, like large US companies, improved internal controls.

Prior studies asserted that the environment of corporate governance is more favourable for firms in developed countries. This study documents that US‐traded foreign firms from developed countries adjust to SOX 404 more quickly than do those from developing countries, resulting in fewer material ICW disclosures.

Although SOX 404 imposes vast costs on US‐traded foreign firms, investors can benefit from the improved internal control over financial reporting, as the Securities and Exchange Commission asserts. This paper contributes to the literature that US‐traded foreign firms from developed countries adjust to SOX 404 more quickly than those from developing countries. Although the significant fixed cost of implementing SOX 404 impacts SMBs disproportionately, US SMBs, like larger firms, still show an improvement in their internal control systems over time.

The purpose of this paper is to investigate whether gender diversity of audit committees has a significant impact on the firm's earnings management.

This paper uses a performance‐adjusted discretionary accrual model to examine the association between gender variables and the firm's earnings management. Regression analysis is applied using 320 firms from the S&P Small Cap 600.

The authors find consistent evidence to show that the presence of a female director on the audit committee constrains earnings management by increasing negative (income‐decreasing) discretionary accruals.

Future research can explore the behavior of female managers by applying the gender theory. Furthermore, the paper's evidence has implications for regulators and policy makers, since the presence of a female director in the audit committee may affect management decisions and audit quality in a positive way. Therefore, gender diversity on the board should be more strongly emphasized. Moreover, the presence of female members on the board may further enhance public confidence.

This research contributes to the existing literature on gender in four aspects. First, this research provides new evidence to reinforce the existing gender literature that women are more risk averse, cautious and ethical than men. Second, the findings showcase that gender theory can be applied into the research of management behavior. Third, the findings are significantly important in contemporary corporate governance discussions over the SOX enactment and audit committee characteristics Fourth, this study sheds further light on the importance of having women on corporate boards and the positive outcomes that are associated with it, thereby serving as an encouraging force against the existence of the glass ceiling effect.

This paper aims to examine the relation between the cost of debt and the adoption of eXtensible Business Reporting Language (XBRL).

The financial data are obtained from the Compustat database. Regression analysis is used to examine the research hypotheses.

The authors find that both voluntary and mandatory adoption of XBRL lead to a lower cost of debt for firms, with weak evidence that this reduction is greater for the former than the latter.

The findings support the policy of the USA Securities and Exchange Commission (SEC), and thus this paper recommends that adoption of XBRL should be mandatory for all public firms.

The findings encourage top managers to develop their firms’ XBRL systems.

The results support the SEC’s policy of mandatory XBRL adoption, as it can lead to greater financial reporting transparency and mitigate information asymmetry between management and bondholders.

The purpose of this paper is to examine the impact of ethical leadership on employee task performance, specifically the mechanisms through which ethical leadership impacts employee task performance and the moderating role of employee proactive personality. Social identity, social learning, and self-concordance theory were used to explain the way ethical leadership affects employee task performance, and provided another way to understand this relationship.

The authors collected survey-based dyadic data from middle management team members and subordinates in Chinese companies. Multiple regression analysis was used to test the research hypotheses.

The empirical findings indicate that ethical leadership positively influences employee task performance. Organizational identification (OID) mediates the relationship between ethical leadership and employee task performance. Furthermore, the relationship between ethical leadership and employee task performance via OID is moderated by employee proactive personality.

Employee task performance is critical for a firm’s competitive advantage. This paper adds to knowledge about the relationship between ethical leadership and employee task performance and contributes to effective management.

The purpose of the study is to investigate the financing channels and carbon emission abatement preferences of supply chain members, and further examine the optimal contract design of the retailer.

This paper develops a low-carbon supply chain composed of one retailer and one manufacturer, in which the retailer provides trade credit to the manufacturer. Considering the cap-and-trade regulation, the manufacturer with uncertain yield makes decision on whether to invest in emission abatement. There are bank loan and trade credit to finance production for the manufacturer and green credit to finance emission abatement investment. Meanwhile, the retailer may provide the manufacturer with three kinds of contracts to improve emission abatement efficiency, namely, revenue sharing, cost sharing or both sharing.

The results show that the retailer prefers to offer financing service at lower interest rate, but trade (and green) credit financing is always optimal for manufacturer and supply chain. The investment in emission abatement is value-added to all players. The sharing contracts offered by the retailer at lower sharing ratios can realize Pareto improvement of the system regardless of the financing scheme. However, comparing with the revenue or cost sharing contract, the existence of optimal sharing ratios makes the both sharing contract more favorable to the retailer.

The findings provide guidance for the emission-dependent manufacturer in financing and emission abatement decisions, as well as recommendations for the retailer to offer loan service and sharing contract.

This paper integrates green credit into bank loan or trade credit to analyze the financing decision of the manufacturer with uncertain yield and further considers the influence of three kinds of sharing contracts introduced by the retailer on improving operational performance.

Fire smoke detection in petrochemical plant can prevent fire and ensure production safety and life safety. The purpose of this paper is to solve the problem of missed detection and false detection in flame smoke detection under complex factory background.

This paper presents a flame smoke detection algorithm based on YOLOv5. The target regression loss function (CIoU) is used to improve the missed detection and false detection in target detection and improve the model detection performance. The improved activation function avoids gradient disappearance to maintain high real-time performance of the algorithm. Data enhancement technology is used to enhance the ability of the network to extract features and improve the accuracy of the model for small target detection.

Based on the actual situation of flame smoke, the loss function and activation function of YOLOv5 model are improved. Based on the improved YOLOv5 model, a flame smoke detection algorithm with generalization performance is established. The improved model is compared with SSD and YOLOv4-tiny. The accuracy of the improved YOLOv5 model can reach 99.5%, which achieves a more accurate detection effect on flame smoke. The improved network model is superior to the existing methods in running time and accuracy.

Aiming at the actual particularity of flame smoke detection, an improved flame smoke detection network model based on YOLOv5 is established. The purpose of optimizing the model is achieved by improving the loss function, and the activation function with stronger nonlinear ability is combined to avoid over-fitting of the network. This method is helpful to improve the problems of missed detection and false detection in flame smoke detection and can be further extended to pedestrian target detection and vehicle running recognition.