bluuebunny/crossref_metadata_2025 huggingface dataset:
Understanding pluralistic ignorance in organizations: application and theory
Authors: Halbesleben Jonathon R.B. , Wheeler Anthony R. , Buckley M. Ronald
Published: January 2007

Purpose

Pluralistic ignorance is defined as a situation in which an individual holds an opinion, but mistakenly believes that the majority of his or her peers hold the opposite opinion. The purpose of this paper is to refocus attention on pluralistic ignorance as an important, applied, and multilevel concept to organizational researchers by developing a theory of pluralistic ignorance in organizational contexts.

Design/methodology/approach

The paper reviews the literature with regard to the causes and consequences (for individuals, groups and organizations) of pluralistic ignorance and develops an integrated understanding of how pluralistic ignorance influences employees and organizations.

Findings

The paper finds that pluralistic ignorance is a complex phenomenon that has important consequences for organizations with relation to behavior of individuals.

Research limitations/implications

The development of a model of pluralistic ignorance, with research propositions, will assist researchers seeking to conduct research on this topic.

Originality/value

This paper is original in that it is the first to delineate the processes underlying pluralistic ignorance in a managerial/organizational context.
Organizational anxiety: applying psychological concepts into organizational theory
Authors: Baruch Yehuda , Lambert Rod
Published: January 2007

Purpose

This paper seeks to present a dual‐level framework for developing change management theory, based on the concept of anxiety as an organizational phenomenon and its potential for prevention, recognition and treatment. When encountering crisis, confusion, and difficulties, both individuals and organizations can suffer from anxiety‐related problems. The paper aims to argue that organizational anxiety can be diagnosed and treated in a similar way to those of individuals.

Design/methodology/approach

This is a conceptual paper and examines how individual anxiety can inform analysis of organizational performance in times of change. A model of organizational anxiety is presented. Three case studies are used to examine the validity of the model. The potential for preventive and treatment strategies for organizational anxiety is examined.

Research limitations/implications

The concepts presented should be examined initially through single case study designs, but developed into the equivalent of a randomized controlled trial across a number of organizations.

Practical implications

Recognition of organizational anxiety is only advantageous if methods of prevention or treatment are possible and available. Preventive strategies include training in threat appraisal and response for senior management teams. Treatment strategies include short‐term consultancies for evaluation of threats and responses; organizational development for organizations where inappropriate responses to threats and opportunities can be recognized, and rethinking/reframing of organizations where an organizational history may be inhibiting progress or development.

Originality/value

This paper presents a new way for organizations to examine their performance in times of change, and adds significantly to the literature on organizational change management.
Gender differences in perceptions of accounting firm alumni
Authors: Iyer Venkataraman M. , Raghunandan K. , Rama Dasaratha V.
Published: January 2007

Purpose

To examine if there are systematic gender‐based differences in the perceptions of accounting firm alumni about their experiences with accounting firms.

Design/methodology/approach

Alumni of Big 4 firms' offices in two large cities in the USA are surveyed. The analysis is based on responses from 110 alumni who had left the firm within the previous ten years.

Findings

Results indicate that women are less likely than men to believe that their former accounting firms developed their abilities to think and express themselves; helped them learn to manage others; and trained them for their present job. Further, women rated the training, personnel evaluation, and counseling programs at their former accounting firms lower than did men. Women were less likely to recommend their former firm to friends and acquaintances, and less likely to inform the former accounting firm about opportunities or pitfalls.

Research limitations/implications

Limitations associated with survey research such as non‐response bias must be taken into account.

Practical implications

The results suggest that more efforts are needed to bridge the gender gap in the public accounting profession.

Originality/value

This study is one of the few that have examined alumni's perceptions about their former firm.
Determinants of audit time as a proxy of audit quality
Authors: Leventis Stergios , Caramanis Constantinos
Published: January 2007

Purpose

The purpose of this paper is to examine auditor‐ and auditee‐related factors that determine audit time, as a proxy of audit quality. The issue of audit quality is of particular significance, while companies in Europe move towards adoption of international accounting standards.

Design/methodology/approach

The paper compares the actual audit hours for corporate audits of listed companies with a minimum prescribed by the Supervisory Council of the Hellenic Institute of Certified Auditors (known in Greek with the acronym SOEL). The data used are from the period immediately preceding the implementation of SOEL's minimum audit time criteria.

Findings

An “audit effort” ratio calculated as actual hours to minimum hours prescribed is found to bear a positive correlation with company size and gearing, and is also significantly higher for companies audited by large multinational audit firms and for companies that seek equity finance. A proportion of audits is found to have been conducted at less than the prescribed minimum.

Research limitations/implications

A number of theoretical and measurement limitations are acknowledged that could further increase the explanatory power of the model. A discussion is also included of the potential effectiveness of regulation as a mechanism for strengthening the agency relationship between management and shareholders.

Practical implications

The study should be of assistance to auditors, auditees and regulatory authorities.

Originality/value

This paper fills a widely acknowledged gap in the literature regarding the determinants of audit time and the concept of audit quality, particularly in a newly developed capital markets.
Communication skills are critical for internal auditors
Authors: Smith Gene
Published: January 2007

Purpose

To provide internal auditors with a summary of the communications skills needed for a successful professional career in internal auditing.

Design/methodology/approach

A range of recently published (2000‐2004) publications, which aim to show the importance of communication skills to internal auditors, is reviewed to show internal auditors the importance of highly‐developed communication skills in almost every aspect of their activities.

Findings

Internal auditors need to possess excellent communication skills in order to succeed and advance in the changing, complex international global marketplace. Auditors utilize communication skills in almost every situation they encounter. Auditors must create an image of adding value to the organization and not just being investigators. Auditors must possess strong listening and interpersonal skills. Auditors have to be careful in using certain voice reflections when working with different types of individuals at various levels within an organization. Auditors must be aware of how their mannerisms impact auditees.

Originality/value

This paper identifies the importance of communication skills for internal auditors in their daily activities as professional auditors. Internal auditors will be more cognizant of the need to continually improve their communication skills throughout their professional career after reading this paper.
The curse of oil! Search for a formula for global ethics
Authors: Doost Roger K.
Published: January 2007

PurposeThis paper aims to discuss one of the most critical issues of our time, impediments to global ethics, and seeks to explore the question more intensely for a better outcome.Design/methodology/approachThe Robert J. Rutland Center for Ethics at Clemson University was the venue for an annual four‐day event to reflect and discuss ethics, ethical principles, and the framework for ethical decision making. The theme for 2004's seminar was Ethics in Politics – the 5th Annual Ethics across the Curriculum. Four philosophy professors each presented ethics from a slightly different angle with specific cases provided to better illustrate the points raised. In addition, several cases were assigned to groups while each of the four professors acted as discussion leaders.FindingsThe paper begins with the information provided by the seminar instructors. It is followed by the creeping case – a case that is followed by a series of variations that change it in important ways. Additional suggestions are provided for analysis of the case. Some concluding remarks are provided at the end together with relevant passages from the 9/11 Commission Report.Originality/valueThis paper is the writer's contribution to the seminar in the form of a creeping case on the ethics of oil, weapons, and the Middle East.
Factors influencing auditor independence: Malaysian loan officers' perceptions
Authors: Barizah Abu Bakar Nur , Rahim Abdul Rahman Abdul , Majdi Abdul Rashid Hafiz
Published: January 2007

PurposeAuditor independence is fundamental to public confidence in financial reporting and the auditing profession. The study aims to provide further understanding of the factors influencing auditor independence from the perspective of commercial loan officers. Loan officers formed the sample as they are relatively sophisticated financial statement users who would understand the importance of audit report and the issues related to auditor independence.Design/methodology/approachThe study examines the perceptions of commercial loan officers in Malaysian‐owned commercial banks and a total of 86 officers responded to the self‐administered questionnaire.FindingsResults indicate that smaller audit firms, audit firms operating in a higher level of competitive environments, audit firms serving a given client over a longer duration, larger size of audit fees, audit firms providing managerial advisory services, and, the non‐existence of an audit committee, are perceived as having a higher risk of losing independence. Audit firm size appears to be the most important factor that affects the auditor independence, followed by tenure, competition, audit committee, audit firms providing managerial advisory services and size of audit fee.Originality/valueThe paper provides important insights into the factors affecting auditor independence and contributes towards better understanding on the ways to improve the confidence in financial reporting and credibility of the auditing profession.
Qualified audit opinions in Malta
Authors: Farrugia Konrad J. , Baldacchino Peter J.
Published: January 2007

Purpose

This paper has the objective of identifying the different types of qualifications in auditor's reports of companies in Malta, the extent of multiple and repeated qualifications in such reports and any significant relationships between such main types of qualifications and firm‐specific variables.

Design/methodology/approach

The study in this small Mediterranean island is designed to investigate the auditor's reports of 419 companies in the period 1997/2000. This is also complemented by an analysis of 12 interviews held with audit partners in different practices.

Findings

Results show that 19.9 per cent of sampled companies had a qualified auditor's report. The most common type of qualification was that of limitation‐on‐scope found in small companies and issued by non‐Big Four audit firms. Small companies were also prone to going concern qualifications in view of their more common net liability situations. Disagreement‐with‐management qualifications were found to be more likely in larger companies and to be mostly issued by Big Four audit firms.

Research limitations/implications

The methodology adopted by the study may also be used in similar future studies in other small states and further research could possibly be undertaken on the motivation behind the issuance of such qualifications.

Originality/value

The study concludes that Maltese companies, which are as yet all required to be audited irrespective of size, have an apparently high rate of audit qualifications and also that the auditor's reports of non‐Big Four audit firms are often deficient or even incompatible with the wording of the International Standards on Auditing.
Disclosure of market risk or accounting measures of risk: an empirical study
Authors: Elmoatasem Abdelghany Khaled
Published: January 2007

PurposeIn 1997, the Securities and Exchange Commission (SEC) issued Financial Reporting Release No. 48. FFR No. 48 requires that companies disclose both qualitative and quantitative market risk information for risks of loss arising from adverse changes in interest rates, foreign currency rates, commodity prices, and equity prices. This research focuses on the required disclosure of market risk related to equity prices which is commonly known as Beta in the capital asset pricing model (CAPM).Design/methodology/approachA sample of 323 companies listed in NYSE was selected to investigate the relationship between the market risk and the accounting measures of risk in order to determine the accounting variables that should be disclosed as a substitute of market risk, if there is no data, for the companies to fulfill the SEC requirements.FindingsBy identifying the accounting measures most closely associated with market Beta, the financial manager may be able to influence the Beta value by changing the company's structure as summarized in the successful accounting – determined risk measures. Such finding may also be used to estimate a company's Beta value in situations where historical stock market price data is limited or not available. An example of this later circumstance occurs in the case of initial public offer (IPO). Market price data may also be limited in acquisition cases, where the acquisition target is a subsidiary of a larger company.Originality/valueThe results of this study address these finance and accounting practice situations.
A multi‐attribute model for internal auditor selection
Authors: Seol Inshik , Sarkis Joseph
Published: January 2007

PurposeThe purpose of the paper is to help organizations more effectively select and evaluate internal auditors by introducing a multi‐criteria decision model, the analytic hierarchy process (AHP) that has been applied to many areas of managerial decision‐making.Design/methodology/approachThe paper structures the decision hierarchy in entering level internal auditor selection based on the competency framework for internal auditing (CFIA) and provides an illustrative application example as part of a decision support system.FindingsRecruiting and hiring qualified employees is one of the critical issues facing any organization. The selection of internal auditors is not an exception. Making the wrong choice can prove to be very costly as organizations try to uncover candidates' potential for success. Recently, there have been increasing numbers of research papers regarding the employee selection process.Originality/valueInvestigates an area that has not seen much progress in the auditing and auditor management field. Contributes to internal auditing research and practice.
Lending validity and consistency to performance measurement
Authors: Samuel Sale Ryan , Lair Sale Martha
Published: January 2007

Purpose

The purpose of this paper is to suggest a performance evaluation technique that allows for the inclusion of qualitative data in a way that is more easily quantified.

Design/methodology/approach

The performance evaluation technique described in this paper is a combination of two existing techniques: the balanced scorecard and the analytical hierarchy process.

Findings

These two methods are found to complement each other quite well. An example illustrates the combined usage of the two techniques and the inherent advantages of the combination.

Research limitations/implications

Use of analytic hierarchy process, without reliance on one of several commercially available software programs, may prove to be unwieldy and time consuming.

Practical implications

This paper demonstrates a technique allowing managers to use qualitative measures in performance evaluations without concern that the results will be judged to be unsubstantiated and overly subjective.

Originality/value

This paper combines two existing methods. The strengths and weaknesses of these two methods combine to create a technique that is superior to the use of either one in isolation.
Informational content of the cost of equity capital: empirical evidence
Authors: Elmoatasem Abdelghany Khaled
Published: January 2007

Purpose

The effect of the cost of capital CEC on the investing and financing decisions is a matter of considerable interest and importance to the financial studies. However, the impact of CEC on the stock prices is not well established. This research aims to examine whether the CEC has a significant incremental explanation of the changes in the stock prices which the basic traditional accounting variables could not provide.

Design/methodology/approach

Applies the adjusted constant dividend‐growth model to measure the CEC and the incremental explanatory power test on a sample of 37 companies listed on NYSE.

Findings

The results indicate that there is non‐significant impact of CEC for the full sample, the small size firms, and the manufacturing firms. However, I find an evidence that CEC has a significant impact on the stock prices for both the large‐size firms and the non‐manufacturing firms.

Research limitations/implications

The study was completed at a specific date of measurement which puts some limitations on the generality of its results.

Originality/value

Assesses whether the cost of equity possess incremental explanation to the change in the stock prices beyond the explanation provided by the traditional accounting variables.
Defining training needs of five‐star hotel personnel: an application in the Antalya Region of Turkey
Authors: Akin Aksu A.
Published: January 2007

Purpose

To provide an useful way for tourism industry professionals regarding defining training needs of hotel personnel and noting the interests of hotel managers in the training subject.

Design/methodology/approach

Questionnaire technique was used both for superiors and staff in a sampled five‐star hotel in Antalya. For statistical evaluation the SPSS program was used.

Findings

According to the combination of the scoring table used in questionnaire, the training areas given before and in the sampled hotel, for superiors and staff most suggested are; organizational structure, management and organization, communication, motivation, accounting‐budgeting, foreign languages (German, English and French) and customer relations.

Research limitations/implications

It is not possible to generalize the findings for all five‐star hotels in Antalya, but this study can be evaluated as a starting point in defining training needs of hotel personnel. In addition to this, much more researches must be done may be in other parts of Turkey in order to compare the results of this study.

Practical implications

Useful information in orienting tourism professionals to defining needs. Beside this study benefiting from managerial observations and forming of focus groups can be suggested.

Originality/value

The findings can be seen as a practical implications for tourism professionals and academicians as well.
The foreign direct investment decision‐making process
Authors: Sykianakis Nicos , Bellas Athanassios
Published: January 2007

Purpose

This paper aims to provide a better understanding of the foreign direct investment (FDI) decision‐making process, and to explore the roles of management accounting information to that.

Design/methodology/approach

An interpretive methodology was preferred, applying the case study method in a Greek company that had engaged in FDIs in the Balkans. In studying FDI decision‐making, the role of context (external environment and organisation) was taken into consideration.

Findings

The study reported here reveals that the FDI decision‐making process is cyclical in nature, with information continuously received, processed and used as feedback for subsequent action. This supports the view that the dichotomy between strategy formulation and implementation is a false one.

Practical implications

Although the FDI process should be recognised as iterative in nature, evidence from this study suggests that it can be thought of as comprising two main tasks, each of which makes different uses of management accounting information and reflects different decision‐making concerns. The first task concerns the decision whether or not to invest abroad while, the second task concerns decisions about how the project will be developed.

Originality/value

The implementation of capital investments enables the participation of various organizational actors trying to influence the final outcome of the process in line with their own interests. The recognition of differential political engagement within these two distinct decision‐making phases has implications for understanding capital investment practice and for reflecting on prior empirical evidence in this domain.
Pricing on Andersen's FIS and internal audit services by successor auditors
Authors: Young Lee Ho
Published: January 2007

Purpose

To examine whether or not new auditors of former Andersen clients perceive prohibited non‐audit services from Andersen as a business risk indicator and, therefore, adjust for the effects of this important risk factor in their audit pricing.

Design/methodology/approach

Utilizing a significant number of involuntary auditor switches in the US as a result of the collapse of Andersen in late 2002, this study uses regression analyses to examine the hypothesized associations between two types of non‐audit services and successor auditors' audit pricing.

Findings

This study finds that the provision of financial information systems (FIS) design and implementation services and internal audit outsourcing services are positively associated with audit fees charged by successor auditors. This study supports the recent prohibition on the provision of FIS and internal audit services mandated by the Sarbanes‐Oxley Act of 2002.

Originality/value

This study adds to the recent body of work on the association between the provision of certain non‐audit services and the predecessor auditor independence or audit quality perceived by the successor auditor and provides valuable information for policy makers.
ABC: adopters, supporters, deniers and unawares
Authors: Cohen Sandra , Venieris George , Kaimenaki Efrosini
Published: January 2007

Purpose

Despite the great interest in activity based costing (ABC), companies seem to be reluctant to adopt it. Our research aims at examining the rate of adoption of ABC by Greek companies that belong to all three sectors of the Greek economy, i.e. manufacturing, retail and services, as well as investigating the reasons that influence a firm's decision to change its current cost accounting system.

Design/methodology/approach

An empirical survey via questionnaires was conducted during 2003 on a sample of 88 Greek leading companies and four company categories were identified in respect to their perceptions towards ABC (ABC adopters, ABC supporters, ABC deniers and ABC unawares).

Findings

Our findings indicate that ABC diffusion in Greece is quite satisfactory. Furthermore, we present evidence that firms that have implemented ABC (ABC adopters) have experienced multidimensional management facilitating benefits from the system. However, the adequacy of resources was found to be the variable that is positively and statistically correlated with the majority of problems encountered during ABC implementation process. On the other hand, the companies that include ABC in their future plans (ABC supporters) seem to be familiar with the corresponding expected benefits and potential problems of its adoption. We present evidence that the possibility of future ABC adoption is related to the degree of satisfaction from the currently used cost accounting system. Companies that do not intend to adopt ABC (ABC deniers) were found to be more satisfied with their existing cost accounting system in comparison to ABC supporters. We also report the characteristics of companies that still have complete ignorance of the ABC technique (ABC unawares).

Originality/value

The paper not only proceeds in a thorough analysis of the benefits perceived in relation to ABC as they have been presented in similar research, but also moves a step further and groups these benefits into distinct categories as well as ranks them in order of perceived importance. Furthermore, it analyzes the basic characteristics of the firms that have complete ignorance of ABC (ABC unawares), a group that is rarely met in ABC research papers.
Measuring the quality of earnings
Authors: ElMoatasem Abdelghany Khaled
Published: January 2007

Purpose

Although the academic research on the quality of earnings has been improved by presenting different approaches of measurement, there is no agreed‐upon generally accepted approach to measure the earning quality. Aims to present results of an empirical study measuring the quality of earnings on companies listed in NYSE.

Design/methodology/approach

Uses a sample of 90 companies listed in the NYSE. The analysis is directed to reach a general assessment of the quality of earnings if there is a complete consistency among the three approaches, and if not, the quality of earnings is questionable and needs further analysis and investigations.

Findings

The results show that different approaches of measuring the quality of earning lead to different assessment, and one industry or one company can not be labeled as having low or high quality of earning based on the result of one approach only. The results also suggest that the stakeholders before making any financing, investing decision or taking any corrective action, have to use more than one approach to assess the quality of earnings.

Originality/value

Indicates that financial analysts and governmental agencies dealing with companies should apply more than one measure for the quality of earning in order to have strong evidence about the level of quality before taking any corrective action or making any decision related to those companies.
The implications of merger for market share, audit pricing and non‐audit fee income
Authors: Pong C.K.M. , Burnett S.
Published: January 2007

Purpose

Concern has been raised over the impact of the PricewaterhouseCoopers merger on the competitiveness of the market for audit services. This paper aims to examine the market share and audit pricing of PricewaterhouseCoopers in the UK before and after its merger. It also seeks to examine the change in consultancy services income of PricewaterhouseCoopers since its merger.

Design/methodology/approach

Numerical data analysis is performed. In particular, concentration indices and audit fee model (OLS) are used.

Findings

The increase in audit services market concentration as a result of the merger has not led to an increase in audit prices. Although the merger has enabled PricewaterhouseCoopers to increase its market leadership in regions and in industrial sectors, neither industry leadership nor city leadership generated a premium in audit pricing. An analysis of non‐audit services fee income leads to the rejection of claims by critics that the main purpose of the merger is to enable PricewaterhouseCoopers to generate more non‐audit services income from their audit clients. Its non‐audit fee income has decreased since its merger.

Research limitations/implications

Audit fee models used in the literature have not included the behavioural aspects of audit pricing, for example, client‐auditor relationship. In addition, due to data availability, consultancy fee income of PricewaterhouseCoopers before the merger cannot be analysed.

Originality/value

The research provides useful information for the accountancy profession and the regulators.
Peer review effectiveness
Authors: Russell Joshua , Armitage Jack
Published: January 2007

Purpose

To assess peer review effectiveness by identifying potential loopholes that could lead to Type II errors, that is, loopholes that would allow reviewed firms to pass their peer review when they should not pass.

Design/methodology/approach

A questionnaire was mailed to a random sample of 500 CPA firms in the USA. A total of 200 responses were received for a 40 percent response rate.

Findings

This study found many firms allowed to self‐select will select their engagements least likely to contain violations, allowing firms to review engagements selected before submitting them to the reviewer is a problem, 1 percent of respondent firms neglected to fulfill relevant professional standards because the firms felt there was an insignificant chance of the engagements being selected, and 9 percent of respondent firms indicated they had duplicated work papers and may not have actually done required procedures.

Research limitations/implications

If improprieties were occurring within respondent firms, those firms could fear some form of backlash from answering the survey truthfully, thus limiting the usefulness of responses received.

Practical implications

Many loopholes discussed in this paper are not supported by results showing large percentages of firms violating peer review standards. However, many violations are so significant (e.g. auditor's intentionally violating auditing standards), that even few violations could harm the profession.

Originality/value

Prior research has not been extensive in this area and generally surveyed auditors or users of financial statements to obtain their opinion of peer review. This study gathered data on specific problems contained within peer reviews.
Accounting professionalism – a cultural perspective of developing countries
Authors: Askary Saeed
Published: January 2007

Purpose

The purpose of this study is to examine the effects of culture on accounting professionalism in 12 developing countries by applying Gray's 1988 model and Hofstede 1980 cultural study.

Design/methodology/approach

Connecting seven variables introduced within a testable model lead the finding to classify the twelve countries within a range from statutory control to professionalism. The data set was collected from 1996 to 2000 through different sources. Twelve developing countries have been chosen from the Middle East and South East Asia in this study and cluster analysis is used for analysing and classifying the countries.

Findings

The results show while the Gray's hypothesis of statutory control is positively confirmed for Iran, and moderately for Bangladesh, Jordan, Oman, and Qatar, it is negatively rejected for Pakistan, Turkey, Malaysia, and Indonesia.

Research limitations/implications

One limitation of this study is the improvised nature of the data set caused by the difficulty in collecting an extensive data set from developing countries.

Practical implications

The findings of the study provides a useful source of information about accounting authority in those developing countries in which improve the knowledge and literature about the accounting practice internationally.

Originality/value

The findings of the study are useful in harmonization process of the international accounting practices. Knowledge about important aspects of accounting setting of the countries is essential to realize the impediments of harmonization.
Determinants of audit fees for French quoted firms
Authors: Gonthier‐Besacier Nathalie , Schatt Alain
Published: January 2007

Purpose

This study seeks to contribute to the international literature by researching the factors influencing audit fees in France, where law requires a joint auditing process involving two separate auditors for firms that publish consolidated financial statements.

Design/methodology/approach

Since, 2003, the disclosure of audit fees has been compulsory in France, but numerous firms decided to voluntarily disclose their audit fees for the year 2002. An attempt is made here to elucidate the amount spent on audit fees in 2002 in a sample of 127 French (non‐financial) firms.

Findings

The main finding is that audit fees depend on firm size, firm risk, and the presence of two of the Big Four firms. When two Big Four firms audit company accounts, the fees charged (adjusted for company size) are significantly lower in comparison with those paid in the other cases. These results appear not to have been influenced by the share of fees paid by the companies to the main auditor.

Originality/value

This study is original because the French law requires a joint auditing process involving two separate auditors.
Auditor concentration in a joint‐auditing environment: the French market 1997‐2003
Authors: Piot Charles
Published: January 2007

Purpose

The French law uses joint‐auditing as an audit quality device. This regulation also indirectly preserves market competition by reducing the domination of the large audit firms. However, concerns emerge about the effects of recent auditor mergers on the effectiveness of joint‐auditing: the reduced number of audit suppliers may favour the development of too frequent joint‐auditing collaborations, causing routine cross‐reviews and interdependencies between co‐auditors. This study aims to address this issue.

Design/methodology/approach

The market shares, individual performance, and joint‐audit interconnections (attraction‐repulsion indices) of the main audit networks in France are investigated for the year 1997 and again for the year 2003.

Findings

Despite the concentration of the audit market for listed companies globally, descriptive market analyses suggest that competition in the audit market has not decreased: the PricewaterhouseCoopers merger in 1998 did not produce any gain in market share to the newly‐formed network; the French member of Arthur Andersen suffered an effective erosion of its audit portfolio resulting from the infamous Enron case; and some national audit networks have maintained significant market positions. Contrary to expectations, the increased concentration did not result in abnormally frequent collaborations between the main audit firms.

Research limitations/implications

The joint‐auditing interconnections are based on the number of common audit clients, and this approach does not take into account the different sizes of the auditees.

Originality/value

This paper is an original approach of auditor concentration in a joint‐auditing environment. To regulators, the results of this study suggest that joint‐auditing can be utilised as a mechanism to preserve market competition and thus potentially maintaining audit quality.
Choice of auditors and earnings management during the Asian financial crisis
Authors: Ming Chia Yew , Lapsley Irvine , Lee Hing‐Wah
Published: January 2007

Purpose

This study sets out to examine the effect of the choice of auditors in constraining earnings management within a rule‐based reporting framework during the Asian financial crisis.

Design/methodology/approach

Using the iterative seemingly unrelated regression methodology, 383 firm‐observations of service‐oriented listed companies in Singapore are analysed.

Findings

The results show that service‐oriented companies engage in income decreasing earnings management during the crisis period. More importantly, the results indicate that only the Big‐6 firms are able to significantly constrain the earnings management of managers of such companies.

Practical implications

The ability of Big‐6 firms to constrain earnings management is perceived to add credibility to the quality of reported earnings, and hence contributes to the competitive advantage of the Big‐6 firms in the market for auditing services.

Originality/value

The evidence contributes to the literature on corporate governance and the competitiveness of the market for audit services in the context of an economy‐wide financial crisis from an Asian perspective.
Fifteen years of reformation – what next?
Authors: Percy J.P. (Ian)
Published: January 2007

Purpose

This paper aims to look back from the point of view of a non‐executive director on the changes in the auditing profession in the last 15 years and to give reflections on the issues which presented the profession and the public today.

Design/methodology/approach

Reviews the last 15 years vis‐à‐vis changes in the auditing profession and considers matters with which auditors and public are faced today.

Findings

This paper highlights that the concept of having fundamental principles and codes is much more likely to gain support and be practical than having rules laid down in statute. People should “explain” more often than “comply” because it is in their business interest and in the interest of the public. Reward comes from taking risk and it is very important that we do not make UK plc less competitive than the world markets by becoming too risk averse.

Originality/value

The paper questions whether it is time to review the efficacy of the statutory audit. The pendulum has now swung and it is time to address whether it should swing any further or whether in fact it is a time for balance to be brought into the various systems and codes based on the experience of the last few years.
A few heads‐ups
Authors: Marren Patrick
Published: January 2007

Purpose

In doing scenario planning, one anticipates a wide range of plausible eventualities, some of which will come to pass. But a short list of issues arises again and again, the possible outcomes of which will affect almost every sphere of the economy and of life.

Findings

What is being (relatively) ignored amid the concern over terrorism is traditional power politics between nation‐states. It is quite likely that these submerged differences will come to the surface at some point in the next two decades. Whether it be over Taiwan, Central Asia, or the Korean peninsula, look for a re‐emergence of traditional “symmetric threat.” A second, related, issue that gets little attention is that of the possibility of a nuclear incident. Third, energy independence is desirable in the USA. for many reasons: economic, ecological, even aesthetic. But there is no reason to believe that it will decrease tensions between the Muslim world and the non‐Muslim world.

Practical implications

Emphasizes the key global issues in scenario planning for the next 20 years.

Originality/value

Of particular value to strategic planners, CEOs, futurists, senior managers.
Run out of steam? Here's how to create a growth action plan
Authors: Wise Richard
Published: January 2007

Purpose

Looks at why traditional growth tactics have become less effective and why it is necessary to balance short term moves with new business building. Looks at understanding customer priorities.

Design/methodology/approach

Over the next year, this column will lay out a practical growth program for managers, balancing short‐term moves with new‐business building.

Findings

Growth moves fall along a spectrum of categories ranging from traditional product innovation to longer‐term strategies such as taking core capabilities to new markets. Managing new growth requires an active feedback loop of constantly monitoring the progress of each initiative.

Practical implications

Provides managers with guidelines for growth action plans.

Originality/value

Of particular to strategic planners, CEOs, senior executives.
Enter the “chief growth officer”: searching for organic growth
Authors: Meer David
Published: January 2007

Purpose

To explore the challenges associated with organic growth, outline three requirements for growing faster than the competition and evaluate the recent trend toward the establishment of a new executive position: “chief growth officer.”

Design/methodology/approach

The article is based on an organic growth study examining the performance of 107 “non‐acquisitive” companies (those with no major acquisitions between 1996 and 2000). It then looked more closely at companies identified as “growth leaders” to isolate the best practices that set them apart from their peers.

Findings

Research into corporate performance over the long term indicates that organic growth is the most important driver of value in the capital markets. Yet sustained organic growth is difficult to achieve. The article identifies common organizational barriers to growth and reveals three best practices of companies that consistently achieve organic growth faster than competitors. These three practices are: a more disciplined approach to growth, better organizational capabilities for driving growth and a more supportive culture. Finally, the article reviews the performance of companies that have appointed chief growth officers as a means to kick‐start growth.

Originality/value

This paper addresses an issue at the top of nearly every corporate agenda – organic growth. It also delivers a key message to companies looking to achieve their growth objectives by creating a new CGO position: strong, value‐enhancing revenue increases require wholesale changes in behaviors, capabilities and culture, not just a new box on the organizational chart.
With all this intelligence, why don't we have better strategies?
Authors: Chussil Mark
Published: January 2007

Purpose

To describe reasons why companies make bad strategy decisions despite having the most capable, motivated, experienced, well‐equipped strategists in history. To recommend practical changes companies can implement to improve strategy decision‐making.

Design/methodology/approach

Why do bad strategy decisions get made when so much effort goes into making them well? After all, no one gets up in the morning intending to make bad strategy decisions. This paper draws on the author's experience in scores of business war games and strategy simulations in Fortune 500 firms around the world and on the author's observations in 30 years of designing and implementing quantitative business tools.

Findings

Helps strategists uncover sources of bad strategy decisions that might not be recognized in their companies, such as overconfidence, use of inappropriate analytical tools, and excessive emphasis on accountability. Discusses remedies and alternatives such as strategy simulation, business war games, examination of uncertainty, and competitor role‐playing. Includes

Practical implications

Improving the quality of strategy decision‐making can hugely affect the bottom line and be a potent source of competitive advantage.

Originality/value

Strategy decisions are among the highest‐leverage actions management can take. This paper offers new ideas to strategists who want to make better strategy decisions, and identifies conventional solutions to avoid.
Poetry in the boardroom: thinking beyond the facts
Authors: Buswick Ted , Morgan Clare , Lange Kirsten
Published: January 2007

Purpose

To convey the findings of an investigation into the relationship between poetry and business thinking, which began with the hypothesis that regular reading and analysis of poetry and its levels of meaning, subtle verbal and nonverbal contextual nuances, emotional content, and required associative thinking will help people deal with ambiguity, delay closure on decisions, and result in more systemic thinking and in better business decisions.

Findings

The research and workshops indicate that reading poetry can expand thinking space by enhancing associative thinking and access to preconceptual areas.

Research limitation/implications

The findings are based on extensive interdisciplinary research and a small number of seminars and workshops. No formal studies have yet been conducted.

Practical implications

This provides a way to open thinking spaces that may be often unused by the business strategist, and that can lead to better decisions. By focusing on how executives can refine their thinking abilities to take them beyond the ordinary limits of cause‐and‐effect approaches, encourages the application of those radical judgments that can help differentiate one organization from another.

Originality/value

The authors believe they are the first to explore this relationship between reading poetry and business thinking.
The migrating locus of strategy
Authors: Marren Patrick
Published: January 2007

Purpose – To provide the author's opinions about key issues in strategy and the future to the readership. Design/methodology/approach – Opinion column. Findings – Discussion of the changing nature of business strategy and offers some speculations as to its future. Research limitations/implications – Speculative, and based not on rigorous research but on the author's experience of planning engagements across a wide variety of private and public enterprises. Practical implications – Warns strategists not to overestimate their sphere of autonomy, nor to underestimate the impact of outside influences on their decisions. Originality/value – Expresses several opinions that the author believes have not been expressed (or adequately appreciated) elsewhere.
Customer‐centered moves can yield quick gains
Authors: Wise Rick , Rothschild Phyllis
Published: January 2007

Purpose

Looks at why traditional growth tactics have become less effective and why it is necessary to balance short term moves with new business building. Looks at understanding customer priorities.

Findings

Managers can take three distinct actions to generate quick gains in revenue and profits: de‐average and re‐segment the customer base, replicate the best customer relationships, and evolve the product offer into a system or value‐added solutions offer.

Practical implications

Provides managers with guidelines for growth action plans.

Originality/value

Of particular interest to strategic planners, CEOs, senior executives.
Brand‐building: finding the touchpoints that count
Authors: Hogan Suzanne , Almquist Eric , Glynn Simon E.
Published: January 2007

Purpose

This paper examines how leading companies are building brands through comprehensive analysis and judicious improvement of the customer experience.

Findings

In the bid to build a world‐class brand, it's tempting for managers to invest everywhere that the brand touches customers. The “do everything’ approach rarely works well, however, because resources are spread too thinly to be cost‐effective. Our research shows that leading brand‐builders such as Citibank and Coach take a more selective, deliberate approach, adhering to several management principles that we have identified: they focus on the most important customers to their business enterprise; they concentrate investments on the customer touchpoints that will do most to increase brand equity and raise profitable demand; they set realistic goals for implementation and focus on changes that are easier to implement; they revisit their performance on a regular basis and make their brand program self‐sustaining and adaptive.

Practical implications

By using the right customer data and analytical tools, companies can identify and support the brand touchpoints with the highest ROI.

Originality/value

Of particular value to brand managers, marketing managers and financial strategists.