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Improving audit quality is an important research area of managerial accounting. This study focuses on the informal institutions within organizations and their impact on audit quality. Specifically, this study aims to examine the impact of the informal hierarchy among directors on audit quality.

The authors examine Chinese companies with listed shares from 2008 to 2020. The authors proxy for audit quality using discretionary accruals and small profits, and use ordinary least squares regression to test their hypotheses.

The results demonstrate that the informal hierarchy of the board improves audit quality. The results are robust to a battery of sensitivity analyses. Additionally, there is weak evidence that the effect of the board’s informal hierarchy on audit quality is weaker in state-owned enterprises. Moreover, the mechanism tests indicate that the board’s informal hierarchy improves audit quality through the improvement of internal controls. In addition, the impact of the informal hierarchy among directors on audit quality further improves firm performance. However, audit fees are not reduced further because the board’s informal hierarchy demands higher audit quality by choosing industry audit experts.

This study not only enriches the research on the economic consequences of the board’s informal hierarchy but also expands on studies on antecedents of audit quality.

Utilizing the expectation states theory in sociology, this study probes into the influence of the board's informal hierarchy on the quality of enterprise innovation, originating from the perspective of internal directorial interactions, while analyzing the boundary effects exhibited by the nature of property rights and the intensity of geo-culture.

The study selects China's A-share listed companies from 2008 to 2021 as the research sample, employing the Tobit regression analysis method to scrutinize the hypotheses presented in the text.

The regression results demonstrate a positive correlation between the board's informal hierarchy and the enterprise innovation quality (EIQ). Upon introducing variables specific to property rights and geographical culture, the authors found that in comparison to non-state-owned enterprises (non-SOEs), the influence of the board's informal hierarchy on the quality of corporate innovation is diminished in SOEs. Conversely, the intensity of geo-culture across Chinese provinces enhances their mutual positive influence. In the additional analysis, the authors also found that the elevation of corporate risk tolerance is a significant pathway for the positive effect of the board's informal hierarchy on EIQ. Moreover, this positive influence is more profound in high-tech enterprises, businesses implementing equity incentive plans and companies that have subscribed to director and officer liability insurance.

The findings not only deepen the understanding of how the board's internal status characteristics influence corporate decision-making but also enrich the application scope of expectation states theory. Furthermore, this study offers valuable guidance for optimizing innovation decision-making by adjusting the personnel structures of corporate boards.

The purpose of this paper is to examine how analyst recommendation change is associated with a firm’s magnitude of strategic change.

This study argues that unfavorable analyst recommendation change serves as a powerful external assessment that current strategies are inappropriate and that changes are needed. This study also incorporates the moderating roles of CEO power and board’s informal hierarchy in the relationship between analyst recommendation change and firm’s magnitude of strategic change. Results from a sample of 824 observations generally support our predictions.

The findings of this study show that the greater the analysts downgrade for the company’s stock, the larger the magnitude of strategic change will be made. This study also considers the moderating roles of CEO power and the clarity of board’s informal hierarchy. In particular, the higher the CEO power, the weaker the relationship between analyst recommendation change and the magnitude of strategic change will be. The higher the clarity of board’s informal hierarchy, the more positive the relationship between analyst recommendation change and the magnitude of strategic change will be.

It extends research on the external predictors of strategic change by incorporating the role of unfavorable analyst recommendation change. In addition, it contributes to institutional theory by showing how external legitimacy pressure and internal corporate governance tool complement each other.

This article addresses why movements towards less-hierarchical organizing may be unsustainable within organizations.

Eschewing hierarchy may prove sustainable if alternative forms of management are acceptable to both employees and managers accountable for those employees’ performance. Developing alternatives means dealing with the fundamentally contradictory functions of coordination and control. Through a qualitative case study of a manufacturing company that removed first-line supervisors, this article analyses how issues of control and coordination were dealt with formally and informally.

Removal of the formal supervisor was followed by workers’ and middle managers’ efforts to informally reconstruct hierarchical supervision. Their efforts to deal pragmatically with control and coordination were frustrated by formal prescriptions for less hierarchy, leading to contested outcomes. The article identifies upward and downward pressures for the hierarchy’s reconstruction, undermining the sustainability of less-hierarchical organizing.

This study is limited by the use of cross-sectional data and employees’ retrospective narratives. Future research on the sustainability of less-hierarchical organizing should preferably be longitudinal to overcome these limitations.

Unless organizational changes towards less hierarchy engage with issues of managerial control and upward accountability, they are likely to induce pressures for hierarchy’s reconstruction.

The article offers an original approach to the classical problem of eschewing hierarchy in organizations. The approach allows us to explore the interrelated challenges facing such restructuring, some of which are currently unacknowledged or underestimated within the literature.

This paper aims to evaluate critically the conventional binary hierarchical representation of the formal/informal economy dualism which reads informal employment as a residual and marginal sphere that has largely negative consequences for economic development and needs to be deterred.

To contest this depiction, the results of 600 household interviews conducted in Ukraine during 2005/2006 on the extent and nature of their informal employment are reported.

Informal employment is revealed to be an extensively used form of work and, through a richer and more textured understanding of the multiple roles that different forms of informal employment play, a form of work that positively contributes to economic and social development, acting both as an important seedbed for enterprise creation and development and as a primary vehicle through which community self‐help is delivered in contemporary Ukraine.

This survey reveals that depicting informal employment as a hindrance to development and deterring engagement in this sphere results in state authorities destroying the entrepreneurial endeavour and active citizenship that other public policies are seeking to nurture. The paper concludes by addressing how this public policy paradox might start to be resolved.

This paper is one of the first to document the role of informal employment in nurturing enterprise creation and development as well as community exchange.

This chapter explores the multiplicity, formation, and porosity of organizational boundaries in new, fluid forms of production. Conceptualizing them as “partial organizations,” we argue that both the intentional design of organizational elements (such as membership, hierarchy, rules, monitoring, and sanctioning) as well as unintended adjustments of “unorganized” aspects drive boundary formation and impact boundary porosity. In addition, we contend that structuring dynamics will create specific trajectories for boundaries over time. Empirically, we further our theoretical framework on the basis of an in-depth case study of the Apache open-source software community during its formative years (1995–2002). We find that both the salience and formalization of boundaries increase over time. However, different conceptions of boundaries (such as efficiency, competence, power, and identity) become salient at different points in time. While design and adjustment drive boundary formation with regard to all boundary conceptions in our empirical case, porosity develops differently for each of them. We also demonstrate that the formalization of boundaries does not necessarily reduce boundary porosity, but actually may increase it.

Ethnographers in the field aim to familiarise themselves with processes and practices of local cultures in their chosen research setting. This usually means that they collect a wide range of data using diverse, multiple methods such as participant observation, interviewing and document collection. As we have suggested previously, the gaze of ethnographers often tends to be drawn to visible and audible activities; therefore, we also wanted to ask how to observe, record and analyse silence. We argued that it is more difficult for participant observers to focus on mundane everyday practices and stillness and silence than it is to record the use of voice and movement during lessons and breaks (Gordon, Holland, Lahelma, & Tolonen, 2005). Here, I shift the focus and examine how a researcher looks at what is eventful and striking in the field. Usually, in the course of a school day there are numerous incidents that are clearly visible to the ethnographer's gaze or loudly audible to her ears. I ask what strikes the researchers as particularly symptomatic among the many observations they make in the course of the day; why and how are some incidents interpreted as laden with significant meanings.

This paper aims to examine the nature of corporate governance systems in Ghanaian Family-owned Businesses (FOBs). Specifically, the study investigates the nature of boardroom decisions structures, sources of governance regulations and family roles in corporate governance.

Drawing on Bourdieusian perspectives of the field, capital, habitus and doxa, a case study design is used to gather detailed insights about the phenomena. Purposively, the study conducts 20 interviews with participants from 15 FOBs in Ghana. The interview data are complemented with secondary sources, such as FOB handbooks, website information, legal documents and scriptures. Subsequently, data gathered were thematically analysed.

The study finds that human actors blended traditionally tacit and legally expressed boardroom decisions structures in FOBs governance. Again, traditional values, social acceptance of religious sociology and regulatory frameworks of the field dictate corporate governance practices in FOBs. In multiple family ownerships, orthodoxy of doxa is challenged; hence, power struggles and family roles in governance depend on capital possessed by social actors.

To continue as a going concern, FOBs must be mindful of traditional, religious sociology of family and regulatory frameworks within the field in which they operate. This is because, without this, the going concern of FOBs becomes suspicious and highly unlikely, especially where there are multiple family ownership and generations.

The previous literature predominantly focussed on formal boardroom structures in addressing FOBs' corporate governance issues. Notwithstanding, family governance risk of domineering and distrust associated with traditional and relational governance mechanisms remain under-represented and inconclusive, especially in Sub-Saharan Africa.