Family status is often regarded as an important factor determining female labor force participation as well as outcomes of that participation such as wages and occupational…
Abstract
Family status is often regarded as an important factor determining female labor force participation as well as outcomes of that participation such as wages and occupational standing. Indeed, employment status can be expected to have implications for the work patterns of both men and women, through timing or scheduling conflicts, and other constraints related to the roles of parent and spouse. In this article the relationship between underemployment and family status is examined in a multivariate framework. Underemployment is measured here as a combination of unemployment, involuntary part‐time work, overeducation, and low wages, using data from the 1972 and 1982 March Current Population Survey. The findings suggest that family status is important for both men and women, although the most salient role for men is that of spouse, while for women the parental role has the strongest effect. Both men and women experience negative work outcomes related to single parenthood.
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The nations of the world are aging. In comparison to decades of the past, older cohorts represent a growing share of the world's population. This trend is the result primarily of…
Abstract
The nations of the world are aging. In comparison to decades of the past, older cohorts represent a growing share of the world's population. This trend is the result primarily of declining fertility rates and, secondarily, of increasing longevity. Even those countries that have only recently experienced significant fertility declines are beginning to deal with the effects of an older population, effects that will become more pronounced early in the 21st century. Indeed, although a larger share of the developed world's population is beyond the age of 55 (22% as opposed to 10% in developing nations), more than half of the world's older population lives in developing countries (U.S. Bureau of the Census, 1992).
Kimberley Peters and Richard G. Rogers
Using data from the linked National Health Interview Survey National Death Index (NHIS‐NDI), a new and unique data set, we examine the interaction of age and self‐rated health as…
Abstract
Using data from the linked National Health Interview Survey National Death Index (NHIS‐NDI), a new and unique data set, we examine the interaction of age and self‐rated health as a predictor of overall and cause‐specific mortality. Proponents of wear and tear theories argue that as the body ages, it begins to degenerate, leaving the aged in poor health and vulnerable to their ultimate mortality. We find that although the majority of the elderly rate their health as good or better, low levels of education and income contribute to poor perceived health, and the effect of age on mortality varies by level of perceived health. While the oldest old who report the poorest health experience greater risks of mortality, elders who report good health experience much lower risks. As a larger share of our population survives into old age, it is important to emphasize preventive health care policy, as well as strong economic and health care safety nets, not only to promote health but also to lengthen life.
The purpose of this paper is to examine the costs to audit firms in terms of lost revenues of losing small clients due to auditor switching or client bankruptcy after issuing…
Abstract
Purpose
The purpose of this paper is to examine the costs to audit firms in terms of lost revenues of losing small clients due to auditor switching or client bankruptcy after issuing first-time going concern modified opinions.
Design/methodology/approach
A population of small Swedish companies receiving first-time going concern modified opinions in 2009 was examined to determine the effects two years later compared with a matched sample of financially stressed companies that had not received going concern modified opinions.
Findings
The results indicate that both auditor switching and client bankruptcy are positively related to receipt of going concern modified opinions. Furthermore, the authors find empirical evidence that auditors issuing first-time going concern modified opinions lose proportionately more fees through auditor switching and client bankruptcy than do auditors not issuing such opinions to financially stressed clients. Finally, the authors found that the going concern modified opinions issued by Big 4 firms are no more harmful to clients than are those issued by other audit firms.
Research limitations/implications
The authors recognize a limitation of this study regarding the choice of control companies. Although the authors attempted to find similarly sized and similarly financially stressed companies from the same industries as those companies in the test group, the authors may have missed other variables relevant to auditor switching or client bankruptcy.
Practical implications
A practical implication for the audit profession is the increased awareness of the fact that the financial dependence issues reported in this study extend to auditors with small client companies.
Originality/value
This is the first study to examine fees lost due to auditor switching and client bankruptcy caused by going concern modified opinions in a population of small companies. It contributes to the mixed evidence presented in previous research as to the extent to which going concern modified audit opinions are self-fulfilling prophecies.
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Mariem Khalifa and Samir Trabelsi
The purpose of this paper is to examine whether managers of bankrupt firms are more or less conditionally conservative in their financial reporting relative to non-bankrupt firms…
Abstract
Purpose
The purpose of this paper is to examine whether managers of bankrupt firms are more or less conditionally conservative in their financial reporting relative to non-bankrupt firms. The study further examines the cross-sectional differences in conditional conservatism among bankrupt and non-bankrupt firms.
Design/methodology/approach
The study employs a sample of US firms to investigate conditional conservatism in firms that experience financial distress and go bankrupt relative to non-stressed non-bankrupt firms. The study also uses switching regression models to identify the drivers of the cross-sectional difference in conditional conservatism among bankrupt and non-bankrupt firms.
Findings
Empirical results show that bankrupt firms are timelier in recognizing bad news than good news when compared to non-bankrupt firms. The higher level of conditional conservatism in bankrupt firms is mainly driven by their higher levels of leverage and tax-reduction incentives. The cross-sectional analyses show that these results largely hold for more leveraged firms and firms with higher tax costs. Taken together, these results suggest that the conservative tendency of managers of bankrupt firms can stem from the agency problem between lenders and managers and from tax-decreasing motivations.
Originality/value
The novelty of the authors’ research stands in studying the drivers of the cross-sectional differences in conditional conservatism between bankrupt and non-bankrupt firms and specifically, the demonstration that taxation also induces conditional conservatism in the setting of ex post bankrupt firms.
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Li (Lily) Zheng Brooks and Jean B. McGuire
This study aims to investigate the cross-sectional differences on the association between corporate social responsibility (CSR) and future bankruptcy along the dimensions of…
Abstract
Purpose
This study aims to investigate the cross-sectional differences on the association between corporate social responsibility (CSR) and future bankruptcy along the dimensions of political connection and corporate governance strength. This study intends to provide evidence on the tangible benefits for firms to invest in social capital of CSR activities and offer insights on what firms may benefit more from CSR expenditure.
Design/methodology/approach
Running a logistic regression on the determinants of bankruptcy model after controlling for financial stress factors based on prior literature, this study examines the moderating effect of political connection and corporate governance on the association between corporate social responsibility and future bankruptcy.
Findings
Current study documents that the negative association between corporate social responsibility and future bankruptcy is only significant for politically connected firms, but insignificant for non-politically connected firms. Specifically, the authors find that one standard deviation increase of CSR expenditure significantly reduces the propensity of future bankruptcy by 53.20% for politically-connected firms. Conversely, the negative relation between CSR only exits for firms with weak corporate governance but do not exit for firms with strong corporate governance.
Research limitations/implications
Current study provides evidence on the tangible benefits for firms to invest in social capital of CSR activities and offers additional insights on what firms may benefit more from CSR expenditure.
Originality/value
Current study extends the research to examine the cross-sectional variations in the negative association between CSR performance and the propensity of bankruptcy. The positive moderating effect of political connection on CSR and bankruptcy suggests that political connection and CSR are complements in reducing the propensity of future bankruptcy. A more pronounced negative association between CSR and bankruptcy for firms with weaker governance suggests that firms with weak corporate governance benefits more in engaging CSR activities than firms with strong corporate governance.