Mahdi Salehi, Mahdi Saravani and Safoura Rouhi
This study aims to study the relationship between audit components and collusion in the audit market.
Abstract
Purpose
This study aims to study the relationship between audit components and collusion in the audit market.
Design/methodology/approach
The statistical population of the study includes 130 listed firms on the Tehran Stock Exchange from 2012-2017. The data tested using multivariate regression.
Findings
The findings of the study indicate that there is a positive and significant relationship between Rank A audit firms, competition and audit fees and audit market adaptability. The relationship standard fees and audit market adaptability, however, is negative and significant. Moreover, the results of the study show that there is no significant relationship between opinion shopping, type of audit report, audit market concentration, and agency costs with audit market adaptability.
Originality/value
The current study fills the gap in this area, and the results of the study may give direction to researchers and policy makers.
Details
Keywords
Mahdi Salehi and Safoura Rouhi
This study examines whether the auditor's self-esteem and narcissism affect sharing their knowledge with their colleagues and, if practical, increase or decrease knowledge sharing.
Abstract
Purpose
This study examines whether the auditor's self-esteem and narcissism affect sharing their knowledge with their colleagues and, if practical, increase or decrease knowledge sharing.
Design/methodology/approach
This study uses a questionnaire to measure the employed variables: self-esteem, narcissism and knowledge-sharing. The study's statistical population includes auditors membered in the Association of Iranian Certified Public Accountants (AICPA), through which the statistical sample is 153 auditors chosen to analyze the collected information. Finally, the survey-based approach is employed to test the association between variables.
Findings
The results showed a positive and significant relationship between the positive dimension of self-esteem and knowledge sharing of auditors. In contrast, the effect of the negative dimension of self-esteem and narcissism on knowledge sharing is negative and significant.
Practical implications
According to the importance of particular personality traits in audit staff and their impact on improving the efficiency and performance of auditors, audit firms are recommended to employ audit staff suitable for their organizational objectives by taking some psychological tests during recruitment.
Originality/value
The findings expand knowledge sharing and create a new perspective in related research since this is among the pioneer studies investigating the impact of personality traits of individual auditors, particularly narcissism and self-esteem, on encouraging them to share knowledge.
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Mahdi Salehi, Amirhosein Afzal Aghaei Naeini and Safoura Rouhi
The primary purpose is to investigate the relationship between narcissism and managers' overconfidence in listed companies' risk-taking.
Abstract
Purpose
The primary purpose is to investigate the relationship between narcissism and managers' overconfidence in listed companies' risk-taking.
Design/methodology/approach
In this study, two criteria of signature and reward are used to measure manager's narcissism; manager's overconfidence, using multiple regression models and finally to measure companies' risk-taking by using companies' monthly returns. Multiple regression is employed to test the model using a sample of 890 firm-year participation on the Tehran Stock Exchange from 2012 to 2017 with panel data and model with fixed effects.
Findings
The findings indicate that the CEO's narcissism and the board of directors positively and significantly affect corporate risk-taking. Also, managers' overconfidence has a positive and significant relationship with corporate risk-taking.
Originality/value
The results of this study identified other factors affecting companies' risk-taking. This study also contributed to the development of the literature on narcissism, overconfidence and corporate risk-taking.
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Mahdi Salehi, Safoura Rouhi, Mohana Usefi Moghadam and Faezeh Faramarzi
Success in corporate relative performance is one of the factors for the growth and durability of firms. Since the relative performance is a function of managers' decisions and…
Abstract
Purpose
Success in corporate relative performance is one of the factors for the growth and durability of firms. Since the relative performance is a function of managers' decisions and such decisions are under the influence of behavioral and psychological characteristics, this paper aims to assess the managers’ and auditors’ narcissism's effect on the management team's stability relative to corporate performance.
Design/methodology/approach
This paper has used the signature magnitude for examining narcissism and the regression model of Jenter and Kanaan (2015) for assessing relative corporate performance. The logistic regression is used to test the model of the management team's stability, and the multivariate regression is used to test the model of relative corporate performance. Research hypotheses were also examined using a sample of 768 listed year-companies on the Tehran Stock Exchange during 2012–2017 and by employing a panel data approach and fixed effects method.
Findings
The obtained results show a negative and significant relationship between managers' and auditors' narcissism and the management team's stability. The relationship between the narcissism of managers and auditors and relative corporate performance is positive and significant. Moreover, managers' narcissism positively and significantly impacts the relationship between auditors' narcissism and team management stability. A negative and significant relationship is evident between auditors’ narcissism and relative corporate performance.
Originality/value
This study's results can identify the effect of psychological components such as narcissism on people's performance by directing and influencing their decisions. Many studies have been conducted on narcissism, but none of them have examined the impact auditors’ and managers' narcissism has on the management team's stability and the corporate relative performance. Therefore, considering the importance of success in the corporate relative performance and benefits of the management team's stability, this study's results can reveal the importance of such features in accounting research. Also, the results of this research can make it important to know more about financial behavioral theory.