Keryn Chalmers, David Hay and Hichem Khlif
In 2001, the US moved to regulate internal control reporting by management and auditors. While some jurisdictions have followed the lead of the US, many others have not. An…
Abstract
In 2001, the US moved to regulate internal control reporting by management and auditors. While some jurisdictions have followed the lead of the US, many others have not. An important question, therefore, is the relevance of internal control to stakeholders. The more specific issue of the benefits of US-style regulation of internal control reporting is also topical. We review studies on the determinants of internal control quality and its economic consequences for stakeholders including investors, creditors, managers, auditors and financial analysts. We extend previous reviews by focusing on US studies published since 2013 as well as all non-US studies investigating IC quality including countries regulating IC disclosure as well as unregulated settings and both developed and developing economies. In doing so, we identify research questions where evidence remains mixed and new directions in which there are research opportunities.
Three main insights arise from our analysis. First, evidence on the economic consequences of internal control quality suggests that the quality of internal control can have a significant effect on decision making by users of financial information. Second, the results of research on the empirical association between ownership structure, certain board characteristics and internal control quality is generally mixed. Empirical evidence concerning the association between audit committee characteristics and internal control quality generally supports a positive and significant association. Finally, while studies in non-US jurisdictions are increasing, opportunities remain to explore the determinants and consequences of internal control in other jurisdictions. Our review provides evidence for policy makers of whether there are benefits from requiring management and auditors to report on internal control over financial reporting.
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Cindy S. H. Wang and Shui Ki Wan
This chapter extends the univariate forecasting method proposed by Wang, Luc, and Hsiao (2013) to forecast the multivariate long memory model subject to structural breaks. The…
Abstract
This chapter extends the univariate forecasting method proposed by Wang, Luc, and Hsiao (2013) to forecast the multivariate long memory model subject to structural breaks. The approach does not need to estimate the parameters of this multivariate system nor need to detect the structural breaks. The only procedure is to employ a VAR(k) model to approximate the multivariate long memory model subject to structural breaks. Therefore, this approach reduces the computational burden substantially and also avoids estimation of the parameters of the multivariate long memory model, which can lead to poor forecasting performance. Moreover, when there are multiple breaks, when the breaks occur close to the end of the sample or when the breaks occur at different locations for the time series in the system, our VAR approximation approach solves the issue of spurious breaks in finite samples, even though the exact orders of the multivariate long memory process are unknown. Insights from our theoretical analysis are confirmed by a set of Monte Carlo experiments, through which we demonstrate that our approach provides a substantial improvement over existing multivariate prediction methods. Finally, an empirical application to the multivariate realized volatility illustrates the usefulness of our forecasting procedure.
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Jingli Yang, Zhen Sun and Yinsheng Chen
This paper aims to enhance the reliability of self-validating multifunctional sensors.
Abstract
Purpose
This paper aims to enhance the reliability of self-validating multifunctional sensors.
Design/methodology/approach
An effective fault detection, isolation and data recovery (FDIR) strategy by using kernel principal component analysis (KPCA) coupled with gray bootstrap and fault reconstruction methods.
Findings
The proposed FDIR strategy is able to the address fault detection, isolation and data recovery problem of self-validating multifunctional sensors efficiently.
Originality/value
A KPCA-based model which can overcome the limitation of existing linear-based models is used to achieve the fault detection task. By using gray bootstrap method, the position of all faulty sensitive units can be calculated even under the multiple faults situation. A reconstruction-based contribution method is adopted to evaluate the amplitudes of the fault signals, and the fault-free output of the faulty sensitive units can be used to replace the fault output.
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Futao Zhao and Hao Liu
The purpose of this paper is to detect predefined service attributes and their sentiments from online restaurant reviews, and then to measure the effects of customer sentiments…
Abstract
Purpose
The purpose of this paper is to detect predefined service attributes and their sentiments from online restaurant reviews, and then to measure the effects of customer sentiments toward service attributes on customer satisfaction (CS) and revisit intention (RVI) simultaneously.
Design/methodology/approach
This study proposed a supervised framework to model CS and RVI simultaneously from restaurant reviews. Specifically, the authors detected the predefined service dimensions from online reviews based on random forest. Then, the sentiment polarities of the reviews toward each predefined dimension were identified using light-gradient boosting machine (LightGBM). Finally, the effects of attribute-specific sentiments on CS and RVI were evaluated by a bagged neural network-based model. The proposed framework was evaluated by 305,000 restaurant comments collected from DianPing.com, a Yelp-like website in China.
Findings
The authors obtained a hierarchal importance order of the investigated service themes (i.e. location, service, environment, price and food). The authors found that food played the most important role in affecting both CS and RVI. The most salient attribute with respect to each service theme was also identified.
Originality/value
Unlike prior work relying on the data collected from surveys, this study is among the first to model the relationship among service attributes, CS and RVI simultaneously from real-world data. The authors established a hierarchal structure of eighteen attributes within five service themes and estimated their effects on both CS and RVI, which will broaden our understanding of customer perception and behavioral intention during service consumption.
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Cheng Xu, Z.W. Zhong and W.K. Choi
The fan-out wafer level package (FOWLP) becomes more and more attractive and popular because of its flexibility to integrate diverse devices into a very small form factor. The…
Abstract
Purpose
The fan-out wafer level package (FOWLP) becomes more and more attractive and popular because of its flexibility to integrate diverse devices into a very small form factor. The strength of ultrathin FOWLP is low, and the low package strength often leads to crack issues. This paper aims to study the strength of thin FOWLP because the low package strength may lead to the reliability issue of package crack.
Design/methodology/approach
This paper uses the experimental method (three-point bending test) and finite element method (ANSYS simulation software) to evaluate the FOWLP strength. Two theoretical models of FOWLP strength are proposed. These two models are based on the location of FOWLP initial fracture point.
Findings
The results show that the backside protection tape does not have the ability to enhance the FOWLP strength, and the strength of over-molded structure FOWLP is superior to that of other structure FOWLPs with the same thickness level.
Originality/value
There is ample research about the silicon strength and silicon die strength. However, there is little research about the package level strength and no research about the FOWLP strength. The FOWLP is made up of various materials. The effect of individual component and external environment on the FOWLP strength is uncertain. Therefore, the study of strength behavior of FOWLP is significant.
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Minyoung Noh, Hyunyoung Park and Moonkyung Cho
This paper aims to examine the effect of audit quality of consolidated financial statements on the accuracy of analysts’ earnings forecasts from the viewpoint of users of…
Abstract
Purpose
This paper aims to examine the effect of audit quality of consolidated financial statements on the accuracy of analysts’ earnings forecasts from the viewpoint of users of financial statements.
Design/methodology/approach
This paper investigates the effect of dependence on the work of other auditors on error in analysts’ earnings forecasts based on samples from 2011 to 2012 (the period since implementation of the International Financial Reporting Standards in Korea). In addition, this paper examines the effects of use of Big 4 auditors, use of auditors with industry expertise and the proportion of overseas subsidiaries in relation to all subsidiaries on the association between dependence on the work of other auditors and error in analysts’ earnings forecasts.
Findings
This paper finds a positive relation between dependence on the work of other auditors and error in analysts’ earnings forecasts, suggesting that more dependence on the work of other auditors decreases the quality of the audit of consolidated financial statements; thus, to the extent that low-quality audits decrease reporting reliability, analysts’ forecasts are less likely to be accurate. This paper also finds that the positive relationship between dependence on the work of other auditors and error in analysts’ earnings forecasts is weakened when the principal auditor is a Big 4 auditor or one with industry expertise, because such auditors provide higher-quality audit services. However, the positive relationship between dependence on the work of other auditors and error in analysts’ earnings forecasts is further strengthened in cases where the proportion of overseas subsidiaries to all subsidiaries is higher. These results suggest that the complexity of the consolidation process increases as the proportion of overseas subsidiaries increases.
Originality/value
The findings are useful in analyzing the effects of adoption of the New ISA, implemented in 2014, which does not allow the division of audit responsibilities between principal auditors and other auditors. This paper also provides insights for regulators and practitioners to improve the auditor appointment system in the future.
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This chapter aims to (1) examine the effect of full-time employees’ STARA awareness on innovative work behavioural intentions in US casual dining restaurants; (2) investigate the…
Abstract
This chapter aims to (1) examine the effect of full-time employees’ STARA awareness on innovative work behavioural intentions in US casual dining restaurants; (2) investigate the mediating roles of employees’ challenge–hindrance appraisals of STARA awareness on the relationship between their STARA awareness and innovative work behavioural intentions; (3) compare the group differences between management employees and non-management employees; and (4) provide recommendations for the casual dining restaurants.
This chapter employed an online survey to collect data from 609 full-time employees in US casual dining restaurants, including 306 management employees and 303 non-management employees. Partial least squares–structural equation modelling was applied for data analysis. The results reveal that the high levels of employees’ STARA awareness raise innovative work behavioural intentions through the mediations of challenge appraisal of STARA awareness.
The proposed conceptual framework and empirical findings in this chapter enrich the literature of cognitive appraisal theory, transactional model and stress, two-dimensional stressor framework, and person-environment fit theory. Employees’ challenge appraisal of STARA awareness makes the job insecurity stressor to drive innovative work behavioural intentions. As STARA adoption deepens in casual dining restaurants, managers need to be aware of full-time employees’ stress and psychological responses towards STARA adoption. Restaurants are suggested to provide employees with adequate resources and support to help employees’ professional competency growth. The capable employees will appraise the job insecurity stressor induced by STARA adoption as an opportunity and be motivated to perform innovatively in the workplace. The casual dining restaurants may enjoy a competitive advantage in the market through value-added innovative activities.
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The examination and identification of solvents and binder resins in particular has been discussed in detail previously. It is the sole purpose of this section to indicate the…
Abstract
The examination and identification of solvents and binder resins in particular has been discussed in detail previously. It is the sole purpose of this section to indicate the means available for obtaining these substances from finished paints in such a way as to facilitate their analysis. For example, the ASTM (15) has published a standard procedure for examining the solvent portion of paints by direct injection on to a GC. In this case, so as to prevent blockage of the column by the resin and pigment components, the sample was injected either via a glass injection port sleeve or on to a glass wool plug positioned in the heated injection port. Hence solvent analysis could be carried out without the need to apply any preliminary separation procedures. If however, both solvent and binder resin are to be examined then a procedure for separating these constituents must be applied.
This paper applies the directional distant function and the meta-frontier to analyze the efficiency and technology gap ratio (TGR) of 20 publicly traded restaurant companies based…
Abstract
This paper applies the directional distant function and the meta-frontier to analyze the efficiency and technology gap ratio (TGR) of 20 publicly traded restaurant companies based on the stock market of the United States (US) from 2009 to 2016. The efficiency scores and TGRs are first computed by restaurant types (i.e. quick-service and full-service) and then by marketing strategies (i.e. single-brand and multi-brand). There are three major findings. First, employee utilization has the greatest room for improvement, and restaurant owners and managers should prioritize the improvement of this input. Second, the average TGR of quick-service restaurants (QSRs) is higher than that of full-service restaurants (FSRs), indicating that the inputs of FSRs need to be adjusted in comparison to QSRs. Third, the average TGR is higher in restaurants with a multi-brand strategy in comparison to a single-brand strategy, and the inputs of multi-brand strategy restaurants need to be adjusted accordingly.
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David A. Askay, Anita Blanchard and Jerome Stewart
This chapter examines the affordances of social media to understand how groups are experienced through social media. Specifically, the chapter presents a theoretical model to…
Abstract
Purpose
This chapter examines the affordances of social media to understand how groups are experienced through social media. Specifically, the chapter presents a theoretical model to understand how affordances of social media promote or suppress entitativity.
Methodology
Participants (N=265) were recruited through snowball sampling to answer questions about their recent Facebook status updates. Confirmatory factor analysis (CFA) was used to examine the goodness of fit for our model.
Findings
We validate a model of entitativity as it occurs through the affordances offered by social media. Participant’s knowledge that status update responders were an interacting group outside of Facebook affected their perceptions of interactivity in the responses. Interactivity and history of interactions were the strongest predictors of status update entitativity. Further, status update entitativity had positive relationships with overall Facebook entitativity as well as group identity.
Practical implications
To encourage group identity through social media, managers need to increase employees’ perceptions of entitativity, primarily by enabling employees to see the interactions of others and to contribute content in social media platforms.
Originality/value
This is the only study we know of that empirically examines how groups are experienced through social media. Additionally, we draw from an affordance perspective, which helps to generalize our findings beyond the site of our study.