Li Li, Mary Ma and Victor Song
The purpose of this paper is to investigate the effects of audit client importance on future bank risk and systemic risk in US-listed commercial banks.
Abstract
Purpose
The purpose of this paper is to investigate the effects of audit client importance on future bank risk and systemic risk in US-listed commercial banks.
Design/methodology/approach
The authors use archival research method.
Findings
The authors mainly find that client importance is negatively related with future bank-specific crash risk and distress risk, and also with sector-wide systemic crash risk and systemic distress risk in the future. The authors also report some evidence that these relations become more pronounced during the crisis period than during the non-crisis period. Moreover, the effect of client importance on systemic risk is found to strengthen in banks audited by Big-N auditors, by auditors without clients who restate earnings, and by auditors with more industry expertise.
Research limitations/implications
These findings contribute to the auditing and systemic risk literature.
Practical implications
This study has implications for regulating the banking industry.
Originality/value
This study provides original evidence on how client importance affects bank-specific risk and systemic risk of the banking industry.
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Feng Chen, Xingqiang Du, Shaojuan Lai and Mary Ma
From the sociolinguistic perspective, the purpose of this paper is to examine whether the honorific and actual-name appellations that Chinese auditors use to address clients in…
Abstract
Purpose
From the sociolinguistic perspective, the purpose of this paper is to examine whether the honorific and actual-name appellations that Chinese auditors use to address clients in audit reports connote differential financial misstatement risk. Specifically, the authors hypothesize that auditors’ use of honorifics signals their inferior social status relative to their clients, thereby leading to compromised auditor independence, lower audit quality, and higher financial misstatement risk.
Design/methodology/approach
The authors use a sample of manually coded appellation data from audit reports of Chinese public firms between 2003 and 2012 to conduct the research.
Findings
The authors find significantly greater financial misstatements, both in terms of likelihoods and magnitudes, for companies addressed by honorifics than for those addressed by actual names. Moreover, compared to auditors’ consistent honorific usage, discretionary honorific usage has a stronger positive association with misstatements. The authors further show that the positive association between honorific usage and client misstatement risk weakens when the audit firm is a Top 10 accounting firms in China, is an industry specialist, is formed as a partnership, or resides in a more concentrated audit market.
Originality/value
This study contributes to the sociolinguistics literature in accounting and provides evidence supporting the reform proposed by the International Auditing and Assurance Standards Board to enhance the usefulness of audit reporting.
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The research on Black underachievement is well documented. But the explanations posited as causes for this failure are problematic. They are reductive and fail to explain…
Abstract
The research on Black underachievement is well documented. But the explanations posited as causes for this failure are problematic. They are reductive and fail to explain adequately the reasons for Black children’s underperformance. The wealth of research into Black underachievement is not matched by research into Black achievement, and explanations for this are equally flawed, as are policies designed to curtail underperformance. I argue in this paper that underachievement is the product of social and cultural forces, and success is dependent on all concerned in the educational development of the child, including the child, overcoming those forces and accommodating each other in order to provide the knowledge and skills necessary for success.
Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the…
Abstract
Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the marketing strategies employed, together with the organizational structures used and looks at the universal concepts that can be applied to any product. Uses anecdotal evidence to formulate a number of theories which can be used to compare your company with the best in the world. Presents initial survival strategies and then looks at ways companies can broaden their boundaries through manipulation and choice. Covers a huge variety of case studies and examples together with a substantial question and answer section.
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Candace Jones, Ju Young Lee and Taehyun Lee
Microfoundations of institutions are central to constructing place – the interplay of location, meaning, and material form. Since only a few institutional studies bring…
Abstract
Microfoundations of institutions are central to constructing place – the interplay of location, meaning, and material form. Since only a few institutional studies bring materiality to the fore to examine the processes of place-making, how material forms interact with people to institutionalize or de-institutionalize the meaning of place remains a black box. Through an inductive and historical study of Boston’s North End neighborhood, the authors show how material practices shaped place-making and institutionalized, or de-institutionalized, the meaning of the North End. When material practices symbolically encoded meanings of diverse audiences into the church, it created resonance and enabled the building’s meanings to withstand environmental change and become institutionalized as part of the North End’s meaning as a place. In contrast, when the material practices restricted meaning to a specific audience, it limited resonance when the environment changed, was more likely to be demolished and, thus, erased rather than institutionalized into the meaning of the North End as a place.
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Eric L. Teksten, Steven B. Moser and Dennis J. Elbert
Today the governance and management structure of business organizations, particularly publicly traded corporations uti lizes a board of directors. Organization use of boards of…
Abstract
Today the governance and management structure of business organizations, particularly publicly traded corporations uti lizes a board of directors. Organization use of boards of directors is considered an openly accepted and utilized structure to provide leadership and management direction in business organization. Because large public companies recognize the value to the corporation and because of the increased regulatory requirements placed on publicly traded companies, the use of boards of directors are strongly endorsed. For small businesses and privately held companies, however, a board of directors is not always viewed as a useful part of the corporate structure. This paper reports on the results of a study which focused on the board functions and operations of small privately held corporations. A survey of 180 small, of ten family owned, non‐public corporations was conducted in one Mid western state. The study corroborated the expanding body of literature suggesting the lack of formality in board functions for small privately held companies. Critical factors influencing board function and action included needs of the company, abilities of the directors, sophistication of ownership and management, as well as life cycle stage, percent of family ownership and trading status of the corporation’s stock.
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Life studies are a rich source for further research on the role of the Afro‐American woman in society. They are especially useful to gain a better understanding of the…
Abstract
Life studies are a rich source for further research on the role of the Afro‐American woman in society. They are especially useful to gain a better understanding of the Afro‐American experience and to show the joys, sorrows, needs, and ideals of the Afro‐American woman as she struggles from day to day.
The purpose of this paper is to pursue the themes of feminine identity, doubling and (in)visibility; first in terms of “signifyin(g)” as a cultural and literary strategy, and…
Abstract
Purpose
The purpose of this paper is to pursue the themes of feminine identity, doubling and (in)visibility; first in terms of “signifyin(g)” as a cultural and literary strategy, and second, in terms of quilting seen from the fiction of Alice Walker to the quilting of Gee's Bend. In the background, there plays the relationship between art and commodification.
Design/methodology/approach
The paper examines “commodification” and “doubling” in the case of the Gee's Bend quilt makers. The quilts foreshadow the modernist aesthetic and are of the highest aesthetic quality. They were made in a traditional rural society by very poor uneducated black women. The quilts were not made to be sold, but were dedicated to familial remembrance and to immediate aesthetic pleasure.
Findings
Commodification doubles self and work, life and object, uniqueness and standardization, art and management. For the artist, the unicity, beauty, inspiration and creativity of art is doubled in the sale, marketing, display, distribution and mass production of “art works.” Making art is intimate, personal and individual; selling art requires public display, pleasing the all‐important customer(s) and dealing with many sorts of in‐betweens. What “commodification” is on the artist/art work level, is “doubling” on the I/me, self/persona, private/public, and in‐group/out‐group level.
Originality/value
The author proposes, from the example of quilt‐making, a wide‐ranging interrogation: “Is escape from commodification possible?”
Details
Keywords
Commodification doubles self and work, life and object, uniqueness and standardization and art and management. For the artist, the unicity, beauty, inspiration and creativity of…
Abstract
Purpose
Commodification doubles self and work, life and object, uniqueness and standardization and art and management. For the artist, the unicity, beauty, inspiration and creativity of art is doubled in the sale, marketing, display, distribution and mass production of “art works”. Making art is intimate, personal and individual; selling art requires public display, pleasing the all important customer(s) and dealing with many sorts of in-betweens. What commodification is on the artist/art work level is doubling on the I/me, self/persona, private/public and in-group/out-group level. This paper aims to examine the commodification and doubling in the case of the Gee’s Bend quilt makers. The quilts foreshadowed the modernist aesthetic and are of the highest aesthetic quality. But, they were made in a traditional rural society by very poor, uneducated black women. The quilts were not made to be sold but were dedicated to familial remembrance and to immediate aesthetic pleasure. But now that they are on display: is escape from commodification possible?
Design/methodology/approach
Reprint for special issue.
Findings
Doubling, in the original article below, was tendentious but artistically and politically to be overcome; doubling currently seems much more ominous, omnipresent and out of control. Signifyin(g) has become bomb throwing. Present day doubling apparently produces terror and not just commodification.
Originality/value
Invited for publication.