Matthew D. Crook, Tamara A. Lambert, Brian R. Walkup and James D. Whitworth
The purpose of this paper is to examine the impact hosting the Super Bowl has on audit completion and financial reporting timeliness for companies headquartered in Super Bowl…
Abstract
Purpose
The purpose of this paper is to examine the impact hosting the Super Bowl has on audit completion and financial reporting timeliness for companies headquartered in Super Bowl hosting cities.
Design/methodology/approach
Using 16 years of financial reporting data, this study uses the Super Bowl and related activities, combined with required filings during “busy season,” as a natural experiment to examine how audit firms navigate short-term, exogenously imposed but anticipated, audit team capacity constraints.
Findings
Companies headquartered in a city hosting the Super Bowl, during busy season, have longer audit report lags (by approximately three days, in comparison to non-hosting busy season audits) and less timely securities and exchange commission (SEC) (10-K) filings. The authors find no evidence that Super Bowl hosting affects audit fees or earnings announcement timeliness.
Practical implications
When confronted with anticipated capacity shocks, audit firms take longer to complete the audit, absorbing the financial costs of the delay and maintaining audit quality, resulting in less timely financial reporting.
Originality/value
This study demonstrates the costs of Super Bowl-related inefficiencies and contributes to our understanding of how auditors navigate capacity shocks. This study provides evidence that auditors can effectively manage business risk and continue to facilitate providing timely and accurate information to financial statement users in the face of a capacity shock.
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Sanaz Aghazadeh, Tamara Lambert and Yi-Jing Wu
This study aims to explore the effect of negotiating audit differences on auditors’ internal control deficiency (ICD) severity assessments, an ensuing, non-negotiated judgment, in…
Abstract
Purpose
This study aims to explore the effect of negotiating audit differences on auditors’ internal control deficiency (ICD) severity assessments, an ensuing, non-negotiated judgment, in an integrated audit.
Design/methodology/approach
The experiment manipulates the client’s concession timing strategy as either immediate or gradual, holding the outcome constant. A total of 34 auditors (primarily managers) resolve an audit difference with the client.
Findings
The client’s concession timing strategy during the negotiation of an audit difference spills over to affect auditors’ severity assessment of a related ICD. Auditors judged the ICD severity to be higher (lower) in the immediate (gradual) condition. Client retention risk inferences mediate this effect.
Research limitations/implications
The effect on auditors’ ICD severity assessments may not ultimately affect the audit report. Participants did not control their negotiation strategy, allowing the client’s negotiation strategy and the outcome to be held constant; it is possible that interactive effects between the client and auditor’s strategy might affect the study’s implications.
Practical implications
Features of the auditor–client negotiation process may influence auditors’ downstream, post-negotiation judgments and may therefore help to explain empirical evidence and Public Company Accounting Oversight Board inspection findings that show auditors often fail to identify an internal control material weakness after identifying a financial statement misstatement.
Originality/value
This paper expands current negotiation research by exploring the impact of inferences made based on counterparty concession strategy for downstream, non-negotiated judgments and current integrated audit research by identifying client retention perceptions as a driving factor of lower ICD severity assessments.
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Prior research suggests that decision-makers can be biased by anecdotal data, even in the presence of more informative statistical data. A bias for anecdotal data can have…
Abstract
Prior research suggests that decision-makers can be biased by anecdotal data, even in the presence of more informative statistical data. A bias for anecdotal data can have significant implications for managers since judgments are often made when both statistical and anecdotal data are present. However, since much of the prior research has been conducted primarily on non-professionals engaged in unfamiliar tasks, it is unclear whether anecdotal biases will occur in managerial decision-making, where training and professional duties may reduce the effects of such a bias. Smith and Kida (1991) note, for example, that judgment biases are often mitigated or modified when trained professionals perform job-related tasks. In this study, managers and others with significant business experience were asked to make a capital budgeting decision in the presence of both statistical and anecdotal data. The results indicate that decision-makers ignored, or underweighted, statistical data in favor of anecdotal data, leading to suboptimal decisions. However, a scientific judgment orientation decision-aid did help to mitigate the effects of that bias. The implications of these results for decision-making in managerial accounting are discussed.
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The purpose of this study is to examine the relation between product market competition and audit fees by using firm-level product market competition measures and mitigating the…
Abstract
Purpose
The purpose of this study is to examine the relation between product market competition and audit fees by using firm-level product market competition measures and mitigating the endogeneity issues.
Design/methodology/approach
This study uses 12,136 US firms from 2004 and 2019. To ensure the robustness of the main findings, this study uses three firm-level product market competition measures and import trade tariff rate reductions of the USA as a quasi-natural experiment. This study also performs three cross-sectional tests and validation tests.
Findings
This study demonstrates that there is a negative relation between product market competition and audit fees and establishes a causal relation. Moreover, it reveals that the findings become more pronounced when auditors possess industry-specific expertise, when client firms are younger, and when operating within more homogeneous industries. Additionally, a validation analysis supports the findings.
Practical implications
This study offers significant insights for regulators by highlighting how product market competition plays a constructive role in overseeing firm management.
Originality/value
The authors contribute to the existing literature by showing that there is a negative association between product market competition and audit fees after controlling external monitoring mechanisms. The authors also find the causal relation. These findings indicate that competitive pressures originating from product markets exert a significant influence on disciplining a client firm’s management.
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Victoria Rodner, Amy Goode and Zara Burns
To better understand the uptake of cosmetic procedures in the wake of Instagram, this study aims to unravel how the aesthetic labour of influencers acts as the packaging of the…
Abstract
Purpose
To better understand the uptake of cosmetic procedures in the wake of Instagram, this study aims to unravel how the aesthetic labour of influencers acts as the packaging of the cosmetic servicescape. In doing so, the authors contribute to theorising of aesthetic and emotional labour within the services marketing literature, fleshing out the bodywork of influential others not as employees but endorsers, who act like the “walking billboards” (Zeithaml and Bitner, 2003) for the cosmetic service industry.
Design/methodology/approach
This study adopts a dual qualitative approach to data collection, coupling netnographic material from Instagram posts with 16 in-depth interviews with female Instagram users who have undergone or hope to undergo cosmetic surgery. Using mediated discourse analysis, the authors weave their visual and discursive data together for a richer account of the commoditisation of cosmetic surgery.
Findings
Adopting a postfeminist neoliberal lens, where women are viewed as aesthetic entrepreneurs who are constantly working on the body and the self, the findings of the study reveal how influencers’ aesthetic and emotional labour help package, propagate and demystify the cosmetic servicescape. Through their visual storytelling, we see how influencers help endorse (local) cosmetic services; commoditise cosmetic procedures through the conspicuous display of their ongoing body projects whilst masking the labour and pain involved; and how face-filters that use augmented reality (AR) technology foster new forms of (digitised) body dysmorphia.
Originality/value
The authors shed light on the darker side of social media and body-enhancing technologies, where tales of body transformation trivialise cosmetic intervention and AR technology induces a digitised body dysmorphia.
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Tamara Hoefer and Laura Polley
Avoidable voluntary turnover negatively impacts an organisation’s workforce and decreases its sustainability and productivity. His Majesty’s Prison and Probation Service’s (HMPPS…
Abstract
Purpose
Avoidable voluntary turnover negatively impacts an organisation’s workforce and decreases its sustainability and productivity. His Majesty’s Prison and Probation Service’s (HMPPS) leaving rates are among the highest in the public sector. The purpose of this study is, thus, to support HMPPS in improving Band 3 prison officers’ (POs) retention and in developing an effective employee retention strategy.
Design/methodology/approach
Grounded in retention literature, the present study uses a mixed-methods, cross-sectional, phenomenological research design. Primary data was gathered using an online qualitative survey, which was sent to POs working at a public sector prison in the Northwest of England with less than five years of work experience.
Findings
The results highlight the impact of career development and training and development due to their importance to POs in comparison to the POs’ dissatisfaction with HMPPS’ performance in both factors. Furthermore, most expectations of retention factors were only partially met, illustrating the need to reform the existing recruitment process and the translation of expectations into the reality of the role. In conclusion, HMPPS should focus attention on performance-improvement, especially in relation to career development and training and development, as well as investigating and reforming the current recruitment processes.
Practical implications
Recommendations to improve the retention of POs include the improved management of career plans, an increased selection of managers based on their management abilities, increasing training opportunities and equating staff's access to them, and evaluating the effect of payment boosts.
Originality/value
The role of POs and their professional environment has not previously been combined with contemporary retention literature. To the best of the authors’ knowledge, this research paper is the first of its kind using qualitative data to understand retention in the English and Welsh prison service.
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Mariluz Fernandez-Alles, Juan Pablo Diánez-González, Tamara Rodríguez-González and Mercedes Villanueva-Flores
The purpose of this paper is to analyze potentially significant differences in a series of relevant characteristics of universities’ technology transfer offices (TTOs). To this…
Abstract
Purpose
The purpose of this paper is to analyze potentially significant differences in a series of relevant characteristics of universities’ technology transfer offices (TTOs). To this end, TTOs have been classified by the function of their resources assigned to the enhancement of university entrepreneurship. The factors analyzed are the number of academic spin-offs created with the support of TTOs as well as the TTOs’ age, experience, professionalization and relational capital.
Design/methodology/approach
The authors have performed a hierarchical agglomerative cluster analysis to identify the groups of TTOs with homogeneous behavior and features. This multivariate technique allows determining whether it is possible to identify some differentiated conglomerates of TTOs.
Findings
The results of the cluster analysis allow concluding that the number of academic spin-offs created with the support of TTOs, the age and degree of professionalization of these TTOs, the experiences of their employees in matters related to entrepreneurship and their relationships with market actors explain the different levels of commitment of TTOs toward the enhancement of university entrepreneurship. In contrast with the expected results, the relationship between TTOs and academic actors does not seem to explain such differences.
Originality/value
This research contributes to the identification of the particular design characteristics that TTOs should exhibit to promote the entrepreneurial performance of universities, offering important recommendations to academic institutions regarding the efficient design of TTOs to manage university ambidexterity and to build TTOs’ entrepreneurial identity.
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Tamara Masters, Michael Swenson and Gary K. Rhoads Rhoads
Personnel, particularly frontline employees, represent the face of retailers and help promote the brand, enhancing customer loyalty and satisfaction through positive interactions…
Abstract
Purpose
Personnel, particularly frontline employees, represent the face of retailers and help promote the brand, enhancing customer loyalty and satisfaction through positive interactions. This research examines retailing versus non-retailing marketing positions to uncover factors that can increase job satisfaction in retail: work environment factors, job characteristics and psychological factors. These factors allow for a holistic view of today’s competitive market that addresses human motivation theory and reveals important insights for attracting and retaining retail talent who can provide compelling, positive experiences for customers.
Design/methodology/approach
Survey research provided the means to collect data and compare retailing versus non-retailing marketing positions. A paid online panel of 2,334 marketing and retail professionals yielded 659 completed surveys. To capture workplace experience of retailers and other marketing professionals, the study measured work environment factors (compensation, customers, recognition received, supervisor support and co-workers), job characteristics (performance feedback, power and control, work variety, autonomy and altruistic opportunity) and psychological factors (job stress, work overload, role conflict and job burnout).
Findings
The findings suggest that job characteristics, psychological outcomes, organizational factors, family support and altruistic opportunity affect retail employee satisfaction. These findings offer actionable responses for retailers in their quest to attract and retain retail employees in today’s competitive job market and, in turn, enrich the customer experience journey.
Research limitations/implications
Competition for the best marketing people to work in retail and avoiding negative interactions between retail employees and customers can be expected to increase brand competitiveness. This research was based on survey responses of individuals in marketing positions suggesting individuals that care about their marketing careers. This research has implications for marketing leadership with regard to critical issues of today’s retail personnel. There is an opportunity to make a difference. Without highly satisfied employees, retail will continue to face challenges in finding and keeping individuals who enhance the customer journey and promote desirable brand experiences. Research consistently shows that when job characteristics, satisfiers and stress are negative aspects of the job, people shift to other jobs that provide more personal career fulfillment (Leider et al., 2016; Stamolampros et al., 2019). Even carefully executed digital marketing, strategic data analytics, aesthetics and promotions cannot drive customers to become raving fans of a retail brand without satisfied employees. Retail personnel are critical as they represent the brand and have a significant impact on the customer experience. With limited resources available to retail management, a priority could be in recruiting and training managers to attract and retain the best retail workers and improve the customer experience. Creating positive customer connections is critical in retail.
Practical implications
Practically, this research provides insight into specific areas that need strategic management action to make retail more appealing.
Originality/value
The study provides an overview and comparison of the key aspects of job satisfaction in retail marketing positions compared with non-retail marketing positions.
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This paper aims to improve marketing managers’ use of information from sales. The authors propose and empirically test the link between cross-functional trust and marketing’s use…
Abstract
Purpose
This paper aims to improve marketing managers’ use of information from sales. The authors propose and empirically test the link between cross-functional trust and marketing’s use of information from sales, and whether this effect is contingent on marketing’s power within the firm.
Design/methodology/approach
Cross-sectional survey data were collected from 338 large-scale Hungarian firms. Structural equation modeling and bootstrap procedures were used to test the hypotheses.
Findings
The effect of cross-functional trust on marketing managers’ use of sales information is fully mediated by sales–marketing integration and marketing’s perception of information quality. However, the power of marketing within the firm moderates this mediating relationship.
Research limitations/implications
This paper provides empirical evidence concerning the mediating mechanisms of transferring cross-functional trust to marketing’s successful use of information from sales. The findings imply that cross-functional trust can improve marketing managers’ use of sales information of firms with powerful marketing units by facilitating integration, whereas it can improve the use of sales information of firms with low marketing power by improving marketing managers’ perception of information quality from sales.
Originality/value
This is the first study that models and empirically investigates marketing managers’ use of information collected by sales. The current study conceptually links and advances extant knowledge on the literatures on the sales–marketing interface and utilization of market information at the individual level and increases the understanding of how cross-functional trust contributes to information use under different contingencies of marketing power.
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Jens P. Flanding, Genevieve M. Grabman and Sheila Q. Cox