Juan L. Gandía and David Huguet
Despite the extensive research on the determinants of audit pricing in both public and private settings, there is a lack of research about the differences in audit fees between…
Abstract
Purpose
Despite the extensive research on the determinants of audit pricing in both public and private settings, there is a lack of research about the differences in audit fees between voluntary audits and mandatory audits. The purpose of this paper is to address this gap.
Design/methodology/approach
First, a theoretical framework is developed to justify differences in audit pricing between voluntary and mandatory audits. Next, using a sample of Spanish private small and medium enterprises (SMEs) running from 2009 to 2014, the authors empirically test whether the fees charged for voluntary audits differ from those charged for mandatory ones. The authors also examine whether the premium observed among large auditors is persistent in the SME setting, and whether this premium differs depending on whether the audits are voluntary or mandatory.
Findings
Although a preliminary analysis does not report significant differences in pricing between voluntary and mandatory audits, additional analyses using samples restricted by company size show that voluntary audits are charged with a premium. The authors observe a premium related to large auditors, and find no significant differences in the audit pricing of Big 4 auditors depending on the mandatory/voluntary nature of the audit, but the premium associated with Middle-Tier auditors disappears in the voluntary setting.
Originality/value
This paper contributes to the previous literature by introducing the examination of differences in audit pricing between voluntary and mandatory audits. As far as the authors know, this is the first study to examine the differences in audit pricing between voluntary and mandatory audits. It also elaborates on studies on audit pricing in SMEs.
Objetivo
A pesar de la extensa investigación sobre los determinantes de los honorarios de auditoría tanto en el entorno de las empresas cotizadas como de las no cotizadas, existe poca investigación sobre las diferencias en los honorarios entre las auditorías voluntarias y las obligatorias. El presente estudio aborda esta carencia.
Diseño/metodología/enfoque
En primer lugar, se desarrolla un marco teórico que trata de justificar diferencias en el precio de la auditoría entre auditorías voluntarias y obligatorias. Después, usando una muestra de pymes españolas no cotizadas para el período 2009–2014, testamos empíricamente si los honorarios cargados en las auditorías voluntarias difieren de los cargados en las auditorías obligatorias. Examinamos también si la prima observada entre los grandes auditores en el entorno de las pymes es persistente, y si esta prima difiere en función de si la auditoría es voluntaria u obligatoria.
Resultados
Aunque el análisis preliminar no reporta diferencias significativas en el precio de la auditoría entre auditorías voluntarias y obligatorias, análisis adicionales usando muestras restringidas por el tamaño de las compañías muestran que las auditorías voluntarias soportan una prima con respecto a las obligatorias. Observamos también una prima relacionada con los auditores grandes y medianos, y no encontramos diferencias significativas en el precio de la auditoría para las Big 4 en función de la naturaleza obligatoria/voluntaria de la auditoría, mientras que la prima asociada con los auditores medianos desaparece en el entorno voluntario.
Originalidad/Valor
El estudio contribuye a la literatura previa al introducir el análisis de las diferencias en el precio de la auditoría entre auditorías voluntarias y obligatorias. Hasta donde sabemos, éste es el primer estudio que examina las diferencias de precio entre ambos entornos. El estudio también extiende la literatura previa sobre los honorarios de auditoría en las pymes.
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The purpose of this paper is to analyse the corporate governance information disclosed by Spanish listed companies on the internet, with the objective of assessing the extent and…
Abstract
Purpose
The purpose of this paper is to analyse the corporate governance information disclosed by Spanish listed companies on the internet, with the objective of assessing the extent and the influence of several corporate characteristics on the level of information voluntarily disclosed.
Design/methodology/approach
The study took as its reference the existing literature on the examination of the quality of web sites and the importance of content as a key variable in determining web site quality. To quantify the corporate governance information disclosed by Spanish listed companies, three transparency indexes were designed. To contrast which variables determine the information provided online, the investigation based itself on studies about voluntary disclosure in companies, and three lineal regressions models and an ANOVA analysis were performed.
Findings
The empirical evidence obtained reveals that the firms that score highest for transparency are also those that are most likely to use the internet as a channel for the disclosure of corporate governance information. The results show that disclosure levels depend on the degree to which firms are followed by analysts, their listing age, their “visibility” and the fact of belonging to the communications and information services industry.
Practical implications
The need for this study was clear in view of the increasing interest shown by supervisory authorities for the oversight of the European and US capital markets in regulating not only the content but also the manner in which corporate governance information is disclosed over the internet. During the coming years, regulatory stock market agencies will have to strive to take advantage of the opportunities that the internet offers to increase both the relational and informational capacity of company web sites.
Originality/value
Corporate governance research has focused mainly on the analysis of the information that firms ought to disclose and the effects of disclosure generally, without considering the media involved. This paper suggests a new approach that examines the relevance of technology, particularly the internet, and orients supervisory authorities in the direction to follow for improving corporate governance transparency in listed companies.
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Juan L. Gandía and Maria C. Archidona
The purpose of this research is to analyse the web sites of large Spanish city councils with the objective of assessing the extent of information disseminated on the internet and…
Abstract
Purpose
The purpose of this research is to analyse the web sites of large Spanish city councils with the objective of assessing the extent of information disseminated on the internet and determining what factors are affecting the observed levels of information disclosure.
Design/methodology/approach
The study takes as its reference point the existing literature on the examination of the quality of web sites, in particular the provisions of the Web Quality Model (WQM) and the importance of content as a key variable in determining web site quality. In order to quantify the information on city council web sites, a Disclosure Index has been designed which takes into account the content, navigability and presentation of the web sites. In order to contrast which variables determine the information provided on the web sites, our investigation bases itself on the studies about voluntary disclosure in the public sector, and six lineal regressions models have been performed.
Findings
The empirical evidence obtained reveals low disclosure levels among Spanish city council web sites. In spite of this, almost 50 per cent of the city councils have reached the “approved” level and of these, around a quarter obtained good marks. Our results show that disclosure levels depend on political competition, public media visibility and the access to technology and educational levels of the citizens.
Practical implications
The strategy of communication on the internet by local Spanish authorities is limited in general to an ornamental web presence but one that does not respond efficiently to the requirements of the digital society. During the coming years, local Spanish politicians will have to strive to take advantage of the opportunities that the internet offers to increase both the relational and informational capacity of municipal web sites as well as the digital information transparency of their public management.
Originality/value
The internet is a potent channel of communication that is modifying the way in which people access and relate to information and each other. The public sector is not unaware of these changes and is incorporating itself gradually into the new network society. This study systematises the analysis of local administration web sites, showing the lack of digital transparency, and orients politicians in the direction to follow in order to introduce improvements in their electronic relationships with the public.
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Martina G. Gallarza, Irene Cil Saura and Haydée Calderón García
Product image formation process is a valuable insight for correct understanding of consumer behaviour. When product is a tourism destination, image formation is even more…
Abstract
Product image formation process is a valuable insight for correct understanding of consumer behaviour. When product is a tourism destination, image formation is even more important due to the inability of pretest the tourist product. This framework gives place to the present research on tourism destination image. The paper starts with a litterature review on the meaning and measurement of destination image divided into two main approaches: the conceptual and the methodological. Secondly, the results of an empirical investigation are reported: it deals with the assessment of attribute‐based destination image of sun and beach resorts on the Spanish Mediterranean coast. The aim and contribution of the paper are to provide an example of one methodological procedure for measurement of destination image (the Principal Component Analysis) which allows, in a first step, to obtain a structure of perceptions on sun and beach destinations. A description of the images of the resorts investigated is also reported in order to understand better perceptions on the tourism market.
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This is a selective annotated bibliography of the literature on Christopher Columbus from 1970 to 1989. The subject is particularly relevant considering the approach of the…
Abstract
This is a selective annotated bibliography of the literature on Christopher Columbus from 1970 to 1989. The subject is particularly relevant considering the approach of the Quincentenary of the “discovery” of America in 1992. For that same reason, there has been an outpouring of literature on the subject since 1990, a significant subset of which contributes to are interpretation of Columbus the man, his voyages, and their impact on the new world. It is hoped that this more recent literature will be part of a subsequent annotated bibliography.
Amid the outbreak of coronavirus disease 2019 (COVID-19), supply chains have faltered. This has influenced operational and financial performance and lead to uncertainty in supply…
Abstract
Purpose
Amid the outbreak of coronavirus disease 2019 (COVID-19), supply chains have faltered. This has influenced operational and financial performance and lead to uncertainty in supply and distribution. Therefore, systems measuring supply chain risk and disruption management performance have gained interest. This study explores barriers to supply chain performance measurement during disruptions such as COVID-19.
Design/methodology/approach
Based on a survey and literature review, the authors formalise the barriers and rank them using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) fuzzy Višekriterijumsko kompromisno rangiranje (VIKOR) methodology. A total of 14 experts in 11 countries were surveyed. Performance measurement is based on a balanced scorecard.
Findings
Fifteen barriers are identified. Based on DEMATEL analysis, the cause–effect relationships among the four scorecard aspects are explored. The customer axis is revealed as the cause, while the financial, internal business and learning/development are identified as the effect of the supply chain performance measurement. Fuzzy VIKOR calculations show that uncertainty of investment, disrupted cash flows and the bullwhip effect are the most critical barriers to measure supply chain performance during outbreaks such as the COVID-19 pandemic.
Research limitations/implications
The study identifies and ranks general barriers; additional research is required to differentiate barriers in specific industrial sectors.
Practical implications
The findings may help develop proactive, resilient supply chain performance strategies to overcome disruptions.
Social implications
Policy-makers and decision-makers in industrial and service firms can explore these findings to inform strategies for robust supply chains that can resist disruption in risky environments.
Originality/value
This research addresses a knowledge gap in barriers to measure supply chain performance in post-pandemic areas. It is unclear how far firms will measure supply chain performance in terms of learning from disruption patterns, managing financial and customer demand processes in light of COVID-19. This study contributes by explaining the influences among the barriers and exploring them, offering insights from multiple stakeholders.
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Rosalia Aldraci Barbosa Lavarda, María Teresa Canet Giner and Fernando Juan Peris Bonet
The purpose of this paper is to analyse how the strategy formation process takes place studying the relevance of the integrative perspective and the use of the variables…
Abstract
Purpose
The purpose of this paper is to analyse how the strategy formation process takes place studying the relevance of the integrative perspective and the use of the variables rationality, implication and vision, and verifying the relationship between an integrative strategy formation process and the management of work and the consequences of this relationship in terms of performance.
Design/methodology/approach
The paper adopted a qualitative methodology, specifically a simple case analysis, following a six‐stage process: establishing the research objectives, the theoretical research framework, unit and the level of analysis, selecting the study cases and a pilot case, and ellaborating the protocol for the case study analysis.
Findings
An integrative strategy formation process that combines with certain equilibrium rationality and emergence facilitates a more effective management of work, specifically of complex work. When the organisation permits a greater degree of participation, it is facilitating an improvement in organisational results (particularly with respect to professional works – administrative or engineering that add more complexity).
Originality/value
The paper highlights the importance of the fit between an integrative strategy formation process and the management of different types of work, considering that a better fit drives to better results.
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Vicente Pina and Lourdes Torres
Online transparency has become a tool to increase legitimacy and trust in governments. The purpose of this paper is to study the online transparency of Spanish Central Government…
Abstract
Purpose
Online transparency has become a tool to increase legitimacy and trust in governments. The purpose of this paper is to study the online transparency of Spanish Central Government agencies and analyze whether their corporate governance (CG) structures influence their online transparency.
Design/methodology/approach
The information used for building an online transparency index and about the board of directors has been collected from the websites of the 168 agencies and from their statutes and activity reports. Ordinary least squares analysis is used. Based on a previous literature review and the requirements of the EU Directive and Spanish legislation, 108 items included in the websites have been analyzed.
Findings
The average information displayed through the website agencies is significantly less than the information considered as relevant in previous literature and in the Spanish legislation. The highest values are presented by the technical dimensions and the lowest by the organizational/political dimension. The presence of independent directors and women on the boards of directors are revealed as the most important explanatory factors of online transparency.
Practical implications
Practical implications to improve online transparency are related to the organizational/political dimension – including the positions and CVs of members of governing bodies, minutes, etc. and to the presence of independent directors and, to a lesser extent, of women, on the board of directors.
Originality/value
The contribution of this paper is the identification of some online transparency determinants in public entities under the same general legal framework. This is the first paper that analyzes the relationship between online transparency and CG in public agencies.
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Isabel‐María García Sánchez, Luis Rodríguez Domínguez and Isabel Gallego Álvarez
The purpose of this study is twofold: to evidence the disclosure practices of Spanish companies in relation to a voluntary typology of strategic information; and to determine the…
Abstract
Purpose
The purpose of this study is twofold: to evidence the disclosure practices of Spanish companies in relation to a voluntary typology of strategic information; and to determine the factors that explain these practices. Among the factors considered, the study seeks to focus on the role of the Board of Directors in depth. According to Agency Theory, strategic information has positive consequences on external funds costs. On the other hand, Proprietary Costs theory limits these practices, given that they can lead to competitive disadvantages.
Design/methodology/approach
First, online strategic information disclosure practices are analysed by examining non‐financial quoted Spanish firms. A disclosure index is created, and subsequently, certain factors related to corporate governance – Activity, Size and Board Independence – as well as other factors traditionally analysed, are used to explain the volume of strategic information disclosed on the internet.
Findings
The results indicate that Spanish companies, on average, give out little strategic information, mainly related to objectives, their mission, and the company's philosophy. “Company annual planning” and “Information on risks” are scarcely disclosed. The findings also emphasise that companies where the Chairperson of the Board is the same person as the CEO and, moreover, in which there is a lower frequency of meetings, disclose a greater amount of strategic information on their web sites.
Practical implications
The findings suggest that the disclosure of strategic information is a decision taken by executives with the aim of satisfying the demands of creditors and investors. The Board of Directors represents the shareholders' interests, but it does not participate in strategic decision‐making disclosure, maybe due to the fact that the proprietary costs lack influence.
Originality/value
The link between corporate governance and strategic information disclosed online has scarcely been analysed in previous literature. This study provides interesting insights into how several Board characteristics can affect the disclosure of strategic information on the internet.
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In formulating his theory of land rent, Ricardo did not take into account the fact that in the Europe of his time relationships between landlords and tenants were often regulated…
Abstract
In formulating his theory of land rent, Ricardo did not take into account the fact that in the Europe of his time relationships between landlords and tenants were often regulated by customs that kept rents below marginal product, sometimes even in the long term. Since all those customs had a number of points in common, understanding the logic governing one of them can be a very useful way to gain an overall understanding of the phenomenon. This chapter analyses a case of such customs in the area of market-gardens surrounding the city of Valencia, eastern Spain. Here, tenants were by custom the owners of the improvements they carried out, agricultural efficiency increased, and land rents stagnated. The chapter addresses issues such as cooperation among large groups of people, definition of rights and the creation of property rights by means of social conventions that clashed with law.