Janus Jian Zhang, Yun Ke, Shuo Li and Yanan Zhang
The purpose of this paper is to investigate whether and how auditors’ pricing decisions are affected by their clients’ offshore trading activities, which are comprehensively…
Abstract
Purpose
The purpose of this paper is to investigate whether and how auditors’ pricing decisions are affected by their clients’ offshore trading activities, which are comprehensively measured through a textual analysis technique.
Design/methodology/approach
The authors identified a sample of 32,264 firm-year observations from publicly listed firms in the US during 2004 to 2015. The authors then used multivariate regressions to examine the effect of offshore trading activities on audit fees. In the regression models, the authors also control for a series of factors that are documented to influence audit pricing.
Findings
The authors find that offshore trading activities are positively associated with audit fees, suggesting that offshore activities are likely to increase a client firm’s business risk and/or the extent of client complexity. The authors also find that auditors charge higher audit fees only to firms purchasing inputs produced by their own assets overseas but not to firms buying inputs produced by local firms overseas. Moreover, the association between offshore trading activities and audit fees is more pronounced for offshore activities that are in countries with high trading centrality, for Big 4 auditors, or for auditors with industry expertise.
Originality/value
This paper extends the literature on the consequences of offshore activities by providing evidence on how auditors react to offshore activities. Moreover, it contributes to the audit fee literature. Prior studies largely focus on client-level determinants, while this study complements this line of literature by identifying firm’s offshore activities as an important risk indicator, which is perceived by auditors in their pricing decisions. A firm’s offshore activity is unique because the risk implication of the offshore activities depends not only on factors within the firm, but also on factors outside the firm in foreign nations.
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Xiaodong Lu, Jingjun Liu and Janus Jian Zhang
This study aims to take advantage of exporters’ product codes and examine the effects of government subsidization on corporate product strategies by focusing on the dimension of…
Abstract
Purpose
This study aims to take advantage of exporters’ product codes and examine the effects of government subsidization on corporate product strategies by focusing on the dimension of product differentiation.
Design/methodology/approach
This study uses harmonized system (HS) product codes to construct a novel measure of product differentiation among a sample of Chinese exporters during 2000–2012. It uses propensity score matching to construct a comparable sample of control firms for exporters receiving government subsidies, and then a difference-in-differences (DID) analysis is conducted.
Findings
This study finds that product differentiation decreases immediately upon receiving a government subsidy. This finding suggests that in an emerging market, firms use their subsidy to imitate competitors rather than increase innovation. Further analyses show that this effect is concentrated among wholly foreign-owned enterprises and firms that focus on general trade rather than processing trade. In addition, the authors find some evidence that government subsidization leads to an increase in the number of product lines and decreases in domestic value added and export product quality.
Originality/value
This study constructs a novel measure of product differentiation for a large sample of Chinese exporters and provides insights that government subsidization can affect corporate product strategies.
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Anushree Tandon, Puneet Kaur, Namita Ruparel, Jamid Ul Islam and Amandeep Dhir
Scholars are increasingly focusing on the adverse effects of digitization on human lives in personal and professional contexts. Cyberloafing is one such effect and…
Abstract
Purpose
Scholars are increasingly focusing on the adverse effects of digitization on human lives in personal and professional contexts. Cyberloafing is one such effect and digitization-related workplace behavior that has garnered attention in both academic and mainstream media. However, the existing literature is fragmented and needs to be consolidated to generate a comprehensive and contemporary overview of cyberloafing research and map its current intellectual boundaries. The purpose of this paper is to shed some light on systematic literature review (SLR) in cyberloafing and cyberslacking in the workplace.
Design/methodology/approach
A SLR is conducted to assimilate the existing research. A total of 87 studies selected through a robust protocol are analyzed through content analysis.
Findings
A total of four thematic research areas and inherent gaps are identified, including conceptualization, operationalization, antecedents and stakeholders and consequences. Results are used to assimilate thematic gaps and potential research questions (RQs) to be addressed by future scholars. To advance cyberloafing research, the authors propose a theoretically grounded comprehensive framework based on the SLR findings.
Originality/value
Our study's novelty rests in its state-of-the-art synthesis of cyberloafing research, which encompasses a broader scope than prior SLRs. Furthermore, developing a theoretically grounded comprehensive framework for advancing future research is a unique contribution of this study.
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This study aims to examine the effects of dialect connectedness between the chairman and the chief executive officer (CEO) (DCCC) on the tunneling activities of controlling…
Abstract
Purpose
This study aims to examine the effects of dialect connectedness between the chairman and the chief executive officer (CEO) (DCCC) on the tunneling activities of controlling shareholders.
Design/methodology/approach
This study uses abnormal related-party transactions (ARPT) as a proxy for tunneling activities and traces dialects of chairmen and CEOs based on the respective birthplace information. Baseline results are examined using a fixed-effects model. The results remain robust when using the instrumental variable approach, propensity score matching (PSM) technique, changing the measurement of tunneling and Heckman two-step selection model.
Findings
The results show that DCCC reduces tunneling activities. This negative association is more pronounced for non-state-owned enterprises and firms whose chairmen and CEOs work in the respective hometowns. DCCC restrains tunneling activities through mechanisms by establishing an informal supervisory effect on CEOs because the CEOs fear reputational damage and strengthening cooperation between chairmen and CEOs. Further analyses suggest that this negative association is more significant when chairmen and CEOs are non-controlling shareholders, but the association is weakened during the coronavirus disease 2019 (COVID-19) crisis.
Originality/value
As dialect is a carrier of culture, this study's results imply that cultural proximity can replace formal mechanisms to enhance corporate governance.
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Jinwei Zhao, Shuolei Feng, Xiaodong Cao and Haopei Zheng
This paper aims to concentrate on recent innovations in flexible wearable sensor technology tailored for monitoring vital signals within the contexts of wearable sensors and…
Abstract
Purpose
This paper aims to concentrate on recent innovations in flexible wearable sensor technology tailored for monitoring vital signals within the contexts of wearable sensors and systems developed specifically for monitoring health and fitness metrics.
Design/methodology/approach
In recent decades, wearable sensors for monitoring vital signals in sports and health have advanced greatly. Vital signals include electrocardiogram, electroencephalogram, electromyography, inertial data, body motions, cardiac rate and bodily fluids like blood and sweating, making them a good choice for sensing devices.
Findings
This report reviewed reputable journal articles on wearable sensors for vital signal monitoring, focusing on multimode and integrated multi-dimensional capabilities like structure, accuracy and nature of the devices, which may offer a more versatile and comprehensive solution.
Originality/value
The paper provides essential information on the present obstacles and challenges in this domain and provide a glimpse into the future directions of wearable sensors for the detection of these crucial signals. Importantly, it is evident that the integration of modern fabricating techniques, stretchable electronic devices, the Internet of Things and the application of artificial intelligence algorithms has significantly improved the capacity to efficiently monitor and leverage these signals for human health monitoring, including disease prediction.
Zhuanzhuan Sun, Yanzhen He, Xiao-Xiao Liu and Yijiao Ye
Drawing on research on organisation-based self-esteem (OBSE) and self-consistency theory, this study aims to investigate whether, how and when leader aggressive humour (LAH…
Abstract
Purpose
Drawing on research on organisation-based self-esteem (OBSE) and self-consistency theory, this study aims to investigate whether, how and when leader aggressive humour (LAH) impacts hospitality employees’ proactive customer service performance (PCSP).
Design/methodology/approach
A total of 294 supervisor–employee dyads from eight hotels in China participated in the survey. The data were analysed by hierarchical multiple regression and PROCESS macro in SPSS.
Findings
LAH undermines hospitality employees’ PCSP by threatening their OBSE, and this effect is significant only for highly entitled employees.
Practical implications
Organisations could improve leaders’ awareness of the dark side of aggressive humour, especially for those who supervise highly entitled employees. Organisations could also cultivate positive leader–member relationships to improve employees’ OBSE and provide training for highly entitled employees to cope with leaders’ LAH.
Originality/value
This study contributes to the LAH literature by examining its influence on hospitality employees’ PCSP and identifying the mechanism and boundary conditions underlying this effect.