Nourhene BenYoussef and Mohamed Drira
Prior research has examined the impact of corporate governance mechanisms, including external auditing, on accounting restatements likelihood. However, little is known about…
Abstract
Purpose
Prior research has examined the impact of corporate governance mechanisms, including external auditing, on accounting restatements likelihood. However, little is known about auditor’s monitoring role in restatement disclosure practices. The purpose of this study is to address this gap by investigating the impact of auditor’s oversight on the timeliness of accounting restatement disclosures as measured by the length of the restatement dark period.
Design/methodology/approach
The study examines panel data from a sample of restating publicly traded US firms. Negative binomial regression is used to analyze the data because the dependent variable is a count variable and is over-dispersed.
Findings
The main study’s results indicate that longer auditor tenure and non-audit services provision improve restatement disclosure timeliness. Conversely, companies whose auditors exerted abnormally high levels of audit effort have longer restatement dark periods.
Originality/value
This study is the first archival research that focuses on auditor’s monitoring role and its impact on the timeliness of restatement disclosures. By doing so, this study contributes to the auditing academic research, professional practice and regulation by providing empirical evidence on an exasperating issue for all participants in the financial markets. In addition, it provides a better understanding of auditor’s monitoring role in the accounting restatement process and offers insights to policymakers, practitioners and investors interested in corporate financial transparency and corporate governance.
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Mohamed M. El-Dyasty and Ahmed A. Elamer
Although a number of studies suggest that big audit firms provide higher audit quality in strict legal environments, empirical evidence remains inconclusive. As little is known…
Abstract
Purpose
Although a number of studies suggest that big audit firms provide higher audit quality in strict legal environments, empirical evidence remains inconclusive. As little is known about the effect of auditor type on audit quality in less strictly legal environments, this study aims to investigate the impact of auditor type on audit quality in the Egyptian market.
Design/methodology/approach
Data of Egyptian-listed companies during the period 2011–2018 are used. To examine the impact of auditor type on audit quality, ordinary least square regression and robust standard errors clustered at year and industry level are used. This study uses discretionary accruals as a proxy for audit quality. Several additional analyzes are conducted to assess the robustness of the main results, including alternative measures of audit quality and auditor type.
Findings
The results show that audit firms tend to provide higher audit quality when they are affiliated with a foreign audit firm. However, Big 4 auditors do not provide higher audit quality compare to their counterparts. Additionally, the governmental agency, accountability state authority, that monopolize audit function in state-owned companies do not appear to be associated with higher audit quality. Finally, local audit firms have a negative association with audit quality. This may be their strategy to secure future clients that seek low-quality audits.
Research limitations/implications
This study suggests that affiliation with foreign audit firms will help the Egyptian firms to develop their abilities by using advanced technology and techniques and transfer rare expertize to the Egyptian auditors. This study also shows that the strategy adopted by many Egyptian audit firms to affiliate with foreign auditors reflects the desire of these firms to be included in one tier alongside Big 4 audit firms to increase their market share under a claim of providing a higher audit quality.
Originality/value
This study adds to the rare but growing body of literature by investigating how auditor type affects audit quality in the context of less strictly legal environments. The results are important, as investors, standards-setters and regulators have growing concerns over audit quality since the Enron scandal. The findings suggest that audit quality depends on auditor type. These findings have important implications for investors, standards-setters and auditors interested in auditor oversight, audit quality and auditor choice.
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Mansourou Samba Garba and Sherazede Bouderbala
The purpose of this study is to investigate the effect of olive cake (OC) on oxidant/antioxidant biomarkers, lipase activity and on the histological analysis of epididymal fat, in…
Abstract
Purpose
The purpose of this study is to investigate the effect of olive cake (OC) on oxidant/antioxidant biomarkers, lipase activity and on the histological analysis of epididymal fat, in high-fat diet (HFD)-induced obese rats.
Design/methodology/approach
Male obese rats were divided into two groups and were fed an HFD supplemented (HFD-OC) or not (HFD) with OC for 28 days. A control group was fed a standard diet for the same experimental period.
Findings
HFD significantly increased body weight, which was reduced by OC in the HFD-OC compared to HFD (p = 0.038). Lipase activity was higher (52%; p = 0.009) in the HFD group than the control group. Administration of OC to the obese rats decreased significantly this activity (38%; p = 0.025) compared to the HFD group. Serum thiobarbituric acid-reactive substances, lipid hydroperoxide and advanced oxidation protein products levels were significantly increased in the HFD group than the control group (p = 0.032, p = 0.023 and p = 0.017, respectively). These levels were significantly reduced in HFD-OC compared to the HFD group (p = 0.030, p = 0.021 and p = 0.010, respectively). Superoxide dismutase, glutathione peroxidase and catalase activities were decreased (53%; p = 0.04), (61%; p = 0.03) and (32%; p = 0.002), in the HFD group than the control group. OC restored these activities (46%; p = 0.01), (58%; p = 0.003) and (30%; p = 0.0003) in the HFD-OC rats than the HFD rats. Consumption of the HFD resulted in adipocyte hypertrophy. Indeed, epididymal adipocyte size was significantly larger in the HFD group than the control group (p = 0.0001), whereas it was reduced in the HFD-OC compared to the HFD group (p = 0.012).
Originality/value
OC possesses an anti-obesity effect. This effect might be mediated by lipase inhibition, reduced oxidative stress and increased antioxidant activities. In addition, the reduction of fat accumulation in adipose tissue by OC consumption is reflected by reducing adipocyte size.
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Helio Aisenberg Ferenhof, Andrei Bonamigo, Louise Generoso Rosa and Thiago Cerqueira Vieira
Knowledge is companies’ crucial asset, especially when they are inserted in continuous collaboration and value co-creation. However, problems related to knowledge may occur…
Abstract
Purpose
Knowledge is companies’ crucial asset, especially when they are inserted in continuous collaboration and value co-creation. However, problems related to knowledge may occur without proper management, which can compromise the strategic objectives associated with a business collaboration network. Given the presented gap, this study aims to propose and test a business-to-business (B2B) knowledge management (KM) framework focused on value co-creation. Therefore, this study seeks to answer the following guiding questions: what are the main elements that a KM model should present in a context of value co-creation between companies? What are the limitations? What are the advantages and disadvantages? Is there any group that would benefit most from it?
Design/methodology/approach
This is an exploratory study grounded on mixed methods, having a qualitative approach (systematic literature review and content analysis) followed by a quantitative approach (exploratory and confirmatory factor analysis), which grounded the proposed framework.
Findings
The qualitative approach grounded on the systematic literature review resulting in 38 articles that were submitted to content analysis, which resulted in six record units: active communication between the organization, employees and other stakeholders; documents and organizational knowledge stored; knowledge map; collaborative network; searching tools and database, which provided the KM elements to develop and test the proposed framework by the quantitative approach. The results have shown that the framework may assist in managing knowledge in B2B value co-creation relationships.
Research limitations/implications
As an exploratory study, the chosen research approach used nonprobabilistic for convenience sampling. Therefore, the results may lack generalizability. Thus, researchers are encouraged to use probabilistic sampling techniques to ensure generability. Also, more and better items should be used to upgrade the initial questionnaire, improving it and, by doing so, have a better scale.
Practical implications
Assuming the proposed framework’s effectiveness, company managers can use it to drive knowledge within the network of interested parties to promote cooperative products and services. In addition, due to the theoretical framework’s broad vision, it can serve as a strategic aid to leverage innovation, productivity and competitive advantage. This study also provides an initial instrument that assists in understanding KM elements, which may assist in value co-creation.
Originality/value
It was learned that the elements, tools, concepts and KM preconized solutions can assist in value co-creation. Considering that value assists business performance, and value co-creation is one way to enhance it, furthermore, by knowledge sharing, the value co-creation may occur in the B2B ecosystem. Also, it is the first theoretical KM framework proposed to assist companies to understand better ways that could get advantages on structuring knowledge, meaning mapping it, sharing it through a system that can retain what is needed and release it to the ones that need and have the defined access to receive it.