The Impact of Retention Incentives and Client Business Risks on Auditors' Decisions Involving Aggressive Reporting Practices

2003 ◽  
Vol 22 (2) ◽  
pp. 207-218 ◽  
Author(s):  
C. Janie Chang ◽  
Nen-Chen Hwang
Keyword(s):  
Experimental Study ◽  
Interactive Effect ◽  
Interactive Effects ◽  
Accounting Firms ◽  
Big 5 ◽  
Client Retention ◽  
Reporting Practices ◽  
Main Effect ◽  
The Individual ◽  
The Impact

This research examines the individual and interactive effects of client retention incentive and client business risks on auditors' decisions regarding whether to accept clients' aggressive reporting practices. Fifty-five audit seniors and managers from all of the Big 5 accounting firms participated in this experimental study. We find a significant main effect of client business risks and an interactive effect between client retention incentives and client business risks on auditors' decisions. Specifically, the results indicate that, when a client's business risks are high, auditors tend to scrutinize such risks and carefully evaluate a client's proposed accounting practices. However, when there is less concern over a client's business risks, auditors may be willing to accept the client's aggressive reporting proposal if retention incentives are high.

scholarly journals THE INTERACTIVE EFFECTS OF REMITTANCES ON ECONOMIC GROWTH AND INEQUALITY IN WESTERN BALKAN COUNTRIES

2021 ◽  
Vol 22 (3) ◽  
pp. 757-775
Author(s):  
Ujkan Q. Bajra
Keyword(s):  
Economic Growth ◽  
Migrant Workers ◽  
Interactive Effect ◽  
Strong Support ◽  
Interactive Effects ◽  
Western Balkans ◽  
Migrant Remittances ◽  
The Individual ◽  
High Level ◽  
The Impact

Hardly any studies have investigated the impact of migrant remittances on economic growth (EG) and inequality in the Western Balkans as a whole (WB6). Using the method of instrumental variables (VI), the findings show that while remittances influence economic growth, their inflow also promotes a high level of migration and absorbs a large workforce by influencing the labor market and encouraging uncontrolled individual relocation. This paper also reveals that although remittances have eased income inequalities the share of remittances in a country’s economy has declined over the years. After testing for the endogeneity of remittances and controlling for various variables, the results indicate that migrant workers’ remittances do not provide strong support for economic growth and inequality. For the sample average, a 1-percent rise in the share of remittances in the economy (i.e., to GDP) will lead to a 0.10-percent rise in the economic cycle i.e. GDP growth, respectively will lead to a 0.05-percent drop in the share of people living in inequality. The findings also show that the interactive effect of remittances and foreign direct investment is lower on economic growth and inequality than the individual effect of each factor.

The Interactive Effect of Chlorine, Copper and Nitrite on Methaemoglobin Formation in Red Blood Cells of Dorset Sheep

1992 ◽  
Vol 11 (3) ◽  
pp. 223-228 ◽  
Author(s):  
Cynthia J. Langlois ◽  
Edward J. Calabrese
Keyword(s):  
Blood Cell ◽  
Blood Cells ◽  
Interactive Effect ◽  
Interactive Effects ◽  
In Vitro Experiments ◽  
Simultaneous Exposure ◽  
Individual Effects ◽  
The Individual ◽  
Effect Of Chlorine

Simultaneous exposure to chemicals which can oxidize the haemoglobin of the red blood cell to methaemoglobin is common. Although the effects of some of these agents have been documented individually, little research considers the interactive effects. In-vitro experiments on the treated blood of female Dorset sheep assessed the interactive capacity of chlorite, copper and nitrite to affect methaemoglobin formation. All combinations of doses which produced 2.5, 5, 10% methaemoglobin were tested in all possible combinations (a total of 80), as were the controls. This included data on each chemical alone, each two-way combination and the three-way combination. The response is largely additive (the sum of the individual effects) except for one of the two-way interactions, chlorite/nitrite (P < . 01), which showed antagonism. Chlorite may oxidize nitrite which could explain the less-than-additive response. Overall, the result of combining these agents on methaemoglobin was additive.

How to make use of team knowledge variety? The role of power disparity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jin Yao ◽  
Xinmei Liu ◽  
Wenxin He
Keyword(s):  
Positive Impact ◽  
Interactive Effect ◽  
Underlying Mechanism ◽  
Interactive Effects ◽  
Open Communication ◽  
Team Creativity ◽  
Content Type ◽  
Team Members ◽  
Power Disparity ◽  
The Impact

Purpose Based on the social dominance theory, this study aims to theorize the moderating effect of power disparity in the impact of team knowledge variety on team creativity and further to verify team open communication as the mediating mechanism of the aforementioned interactive effect. Design/methodology/approach The multisource (team members and their team leaders) and longitudinal (separated by four months) survey data were collected from 67 research and development teams in China to test the research model. The authors used multiple regression analyses to validate all the proposed hypotheses. Findings Results reveal that team knowledge variety has a more positive impact on team creativity when teams have lower power disparity. Besides, team open communication is significantly and positively related to team creativity and mediates the interactive effect of team knowledge variety and team power disparity on team creativity. Originality/value This study reconciles the mixed findings in the previous study and provides new insights regarding the functionality of team knowledge variety. By identifying team power disparity as a moderator in shaping the effects of team knowledge variety, the authors extend the research that explores the moderators of the team knowledge variety–team creativity relationship, and make comprehensive consideration of the coexistence of multiple diversities within teams (i.e. knowledge variety and power disparity) and their joint effects on team creativity. Besides, this research identifies team open communication as an important underlying mechanism in transmitting the interactive effects of two different types of diversities on team creativity, thus offering new insights on how teams can perform creatively.

Client negotiation strategy spillover to integrated audit judgments

2020 ◽  
Vol 35 (9) ◽  
pp. 1261-1278
Author(s):  
Sanaz Aghazadeh ◽  
Tamara Lambert ◽  
Yi-Jing Wu
Keyword(s):  
Internal Control ◽  
Negotiation Process ◽  
Interactive Effects ◽  
Negotiation Strategy ◽  
Material Weakness ◽  
Content Type ◽  
Client Retention ◽  
Negotiation Research ◽  
Public Company ◽  
The Impact

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.

CSR types and the moderating role of corporate competence

2018 ◽  
Vol 52 (7/8) ◽  
pp. 1358-1386 ◽  
Author(s):  
Xiaoye Chen ◽  
Rong Huang ◽  
Zhiyong Yang ◽  
Laurette Dube
Keyword(s):  
Experimental Study ◽  
Repeated Measures ◽  
Empirical Studies ◽  
Interactive Effects ◽  
Survey Study ◽  
Content Type ◽  
Different Types ◽  
The Impact ◽  
Moderating Role

PurposeThis paper aims to investigate the impact of different types of corporate social responsibility (CSR; i.e. value-creating CSR, promotional CSR and philanthropic CSR) on consumer responses and the moderating role of corporate competence.Design/methodology/approachThe authors tested the hypotheses by using two empirical studies – a survey and an experimental study. The evidence is generated based on generalized linear model repeated-measures ANOVAs for the survey study and two-way factorial ANOVAs for the experimental study.FindingsThe findings show that in general, consumers respond to value-creating CSR more favorably than to philanthropic CSR or promotional CSR. In addition, corporate competence moderates consumers’ responses to different types of CSR in such a way that promotional CSR is more likely to have the desired effects when carried out by low-competency rather than by high-competency firms, whereas value-creating CSR is more effective for high-competency firms than for low-competency ones. Philanthropic CSR works equally in both types of firms.Research limitations/implicationsThis research answers a long-term call to study the differential consumer effects of various CSR types. It also identifies perceived corporate competence, an important consumer-based corporate factor, as a potential moderator of consumers’ response to CSR types.Practical implicationsArmed with the findings, companies can choose CSR practices that fit with their company characteristics. This research offers important and specific managerial implications to firms with different company profiles on their CSR choices.Originality/valueGiven that today’s managers are faced with the challenge of selecting desirable CSR activities from a group of options, the authors answered the call by studying the differential effects of a wide array of CSR choices and provide important practical guidance to managers. For the first time in the literature, the study also investigates the potential interactive effects between specific CSR types and corporate competence on consumer reactions. This inquiry bears significant relevance to the ongoing discussions concerning whether and how company characteristics generate influences on the outcomes of CSR strategies.

scholarly journals Response of Cytoprotective and Detoxifying Proteins to Vanadate and/or Magnesium in the Rat Liver: The Nrf2-Keap1 System

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Agnieszka Ścibior ◽  
Iwona Wojda ◽  
Ewa Wnuk ◽  
Łukasz Pietrzyk ◽  
Zbigniew Plewa
Keyword(s):  
Rat Liver ◽  
Interactive Effect ◽  
Total Content ◽  
Catalytic Subunit ◽  
Interactive Effects ◽  
Glutathione Synthetase ◽  
Heme Oxygenase 1 ◽  
Related Factor ◽  
Glutamate Cysteine Ligase ◽  
The Impact

Oxidative stress (OS) is a mechanism underlying metal-induced toxicity. As a redox-active element, vanadium (V) can act as a strong prooxidant and generate OS at certain levels. It can also attenuate the antioxidant barrier and intensify lipid peroxidation (LPO). The prooxidant potential of V reflected in enhanced LPO, demonstrated by us previously in the rat liver, prompted us to analyze the response of the nuclear factor erythroid-derived 2-related factor 2/Kelch-like ECH-associated protein 1 (Nrf2-Keap1) system involved in cellular regulation of OS to administration of sodium metavanadate (SMV, 0.125 mg V/mL) and/or magnesium sulfate (MS, 0.06 mg Mg/mL). The levels of some Nrf2-dependent cytoprotective and detoxifying proteins, i.e., glutathione peroxidase (GPx), glutathione reductase (GR), glutathione S-transferase (GST), glutamate cysteine ligase catalytic subunit (GCLC), glutathione synthetase (GSS), NAD(P) H dehydrogenase quinone 1 (NQO1), UDP-glucumno-syltransferase 1 (UGT1), and heme oxygenase 1 (HO-1); glutathione (GSH); metallothionein (MT1); and glutamate-cysteine ligase (GCL) mRNA were measured. We also focused on the V-Mg interactive effects and trends toward interactive action as well as relationships between the examined indices. The elevated levels of Nrf2, GCL mRNA, and GCL catalytic subunit (GCLC) confirm OS in response to SMV and point to the capacity to synthesize GSH. The results also suggest a limitation of the second step in GSH synthesis reflected by the unchanged glutathione synthetase (GSS) and GSH levels. The positive correlations between certain cytoprotective/detoxifying proteins (which showed increasing trends during the SMV and/or MS administration, compared to the control) and between them and malondialdehyde (MDA), the hepatic V concentration/total content, and/or V dose (discussed by us previously) point to cooperation between the components of antioxidant defense in the conditions of the hepatic V accumulation and SMV-induced LPO intensification. The V-Mg interactive effect and trend are involved in changes in Nrf2 and UGT1, respectively. The p62 protein has to be determined in the context of potential inhibition of degradation of Keap1, which showed a visible upward trend, in comparison with the control. The impact of Mg on MT1 deserves further exploration.

An Experimental Study of the Influence of Manufacturing Errors on the Planetary Gear Stresses and Planet Load Sharing

2008 ◽  
Vol 130 (4) ◽  
Author(s):  
H. Ligata ◽  
A. Kahraman ◽  
A. Singh
Keyword(s):  
Experimental Study ◽  
Planetary Gear ◽  
Load Sharing ◽  
Position Errors ◽  
Manufacturing Errors ◽  
Time Histories ◽  
Analysis System ◽  
The Individual ◽  
Torque Values ◽  
The Impact

In this paper, results of an experimental study are presented to describe the impact of certain types of manufacturing errors on gear stresses and the individual planet loads of an n-planet planetary gear set (n=3–6). The experimental setup includes a specialized test apparatus to operate a planetary gear set under typical speed and load conditions and gear sets having tightly controlled intentional manufacturing errors. The instrumentation system consists of multiple strain gauges mounted on the ring gear and a multichannel data collection and analysis system. A method for computing the planet load-sharing factors from root strain-time histories is proposed. Influence of carrier pinhole position errors on gear root stresses is quantified for various error and torque values applied to gear sets having three to six planets. The results clearly indicate that manufacturing errors influence gear stresses and planet load sharing significantly. Gear sets having larger number of planets are more sensitive to manufacturing errors in terms of planet load-sharing behavior.

scholarly journals Individual and interactive effects of genetic background and environmental conditions on amount and size distribution of polymeric proteins in wheat grain

2011 ◽  
Vol 47 (Special Issue) ◽  
pp. S186-S189 ◽  
Author(s):  
A.H. Malik ◽  
M.L. Prieto-Linde ◽  
R. Kuktaite ◽  
A. Andersson ◽  
E. Johansson
Keyword(s):  
Wheat Flour ◽  
Environmental Conditions ◽  
Storage Proteins ◽  
Interactive Effect ◽  
Sodium Dodecyl ◽  
Quality Parameters ◽  
Interactive Effects ◽  
Bread Making ◽  
Temperature Levels ◽  
The Individual

Bread-making quality of wheat flour is influenced by wheat storage proteins. The percentage of sodium dodecyl sulphate (SDS)-unextracted polymeric proteins in total polymeric proteins (% UPP), as one important factors determining bread-making quality, is largely influenced by the individual and interactive effect of genetical background and environmental conditions. Four spring wheat cultivars were grown in green house. Two of the cultivars have high molecular weight glutenin subunits 5+10 while the other two have 2+12. Four different nitrogen regimes and two different temperature levels (distinguished as low and high temperature) were used. The results highlighted the importance of interactive influence of cultivars, nitrogen regimes and temperature levels for creating differences in the amount of % UPP during grain maturation period (GMP) and at maturity. The shift to end up with either high or low % UPP at maturity happened early during GMP (around 12 days after anthesis). Influences of cultivars on % UPP was found early during the GMP while influences of temperature and nitrogen regimes were seen much later during the GMP. The results will help in understanding the relationship between quality parameters of wheat flour and how these are influenced by different environmental and genetic factors.

scholarly journals The Influence Of Nonaudit Services On Perceptions Of Auditor Independence

2011 ◽  
Vol 17 (3) ◽  
Author(s):  
J. Gregory Jenkins ◽  
Kathy Krawczyk
Keyword(s):  
General Public ◽  
Auditor Independence ◽  
Public Perceptions ◽  
Future Research ◽  
Accounting Firms ◽  
Big 5 ◽  
Cpa Firms ◽  
Expectations Gap ◽  
Nonaudit Services ◽  
The Impact

This paper examines how nonaudit services influence public perceptions of auditor independence.&nbsp; Recent expansion of these services by public accounting firms has caused some to question whether auditors who provide nonaudit services to audit clients can remain independent of their clients.&nbsp; However, others view nonaudit services as enhancing the auditor's uniqueness to the client, thus strengthening the auditor's independence.&nbsp; Given the importance of auditor independence, a survey was conducted to assess the specific influence of six particular nonaudit services on the ratings of auditor independence from members of the general public, professionals from non-Big 5 CPA firms and professionals from Big 5 CPA firms.&nbsp; Results suggest that an expectations gap may exist between the general public and the accounting profession with respect to how they view the impact of nonaudit services on auditor indpendence.&nbsp; Implications of the survey as well as directions that future research may take are discussed.

Appropriation of profits or retention of the team: experimental study of the firm head's behavior

2020 ◽  
Vol 18 (3) ◽  
pp. 17-31
Author(s):  
Albert L. Karpov
Keyword(s):  
Decision Making ◽  
Experimental Study ◽  
Consumer Behavior ◽  
Firm Behavior ◽  
Significant Part ◽  
Competitive Market ◽  
Joint Work ◽  
Total Profit ◽  
The Individual ◽  
The Impact

The article presents an experiment that explores the behavior of a firm in a competitive market. The main problem of the participant in the experiment, as the firm's head, is the choice between individual benefit and collective needs. The first conclusion suggests that information on the contribution of individual workers affects the decision-making on the distribution of total profit. More than a half of the participants refused the individual appropriation of profit and distributed it among other employees. Moreover, a significant part of those who decided to distribute the results within the group was guided by their own ideas about the justness of such distribution. More than half of the participants in the experiment made an egoistic choice: 45.8% of the participants decided to individual appropriate the results of joint work, 11.2% distributed the profit in favor of ineffective participants. 43% of the participants in the experiment made a fair choice. Of these, 34.6% distributed the received profit equally, and 8.4% distributed the profit in proportion to the contribution to the overall result. The second conclusion is that when choosing between maximizing profits and ensuring employment, a large proportion of participants also refused the optimal volume of production and provided an opportunity to work for inefficient excess employees. Such results indicate a significant impact of social and group effects on the market behavior of firms, even in a competitive market. Understanding the impact of these effects can change the perception of firm behavior that was previously thought to be more understandable than consumer behavior.

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