Creditor protection is the main goal of insolvency proceedings. In order to accomplish said goal, various legal institutes are created to prevent damage to creditors during insolvency. One of the ...particularly important issues is how to prevent related parties from using their specific insider status and obtaining gain for themselves, harming the other creditors. The emphasis in this paper is on shareholders that provide additional funding to the financially distressed company. The main issue is how to treat said transaction in insolvency - as a loan or as an equity contribution, which has consequences, mainly on their priority order in insolvency. The paper is thematically divided into two parts. The first deals with issues related to subordination as a legal institute, while the second puts this issue in the context of selected individual legal systems. The author identifies two groups of legal orders - ones that don't regulate this issue and the ones where the subordination has its legal foundation. Comparative overview covers on the one hand systems that have subordination based on objective criteria, such as German legal system that has rich history in application of this legal institute, Austrian and Spanish legal systems that have used German law as a role model, and on the other hand the US law that is an example of opposite approach based on subjective criteria (equitable subordination).
The growing expenses, dependence on IT for business operations, and growing requirements regarding related party transaction (RPT) reporting impose the need for increased attention to this area. The ...paper’s objective is to examine the nature of RPTs, identified by auditors as a key audit matter (KAMs), challenges and solutions to problems related to risk management, and the detection of factors affecting audit quality. The research methodology is qualitative, with an analysis of the level of disclosure of KAMs reported by auditors from the Related Parties category, grouped by type of auditors, their opinion, year, country, and fields of activity. Data were collected from the Audit Analytics database and filtered by category KAM: Related parties, period 2013–2021. The selection resulted in 111 companies reporting 248 KAMs related to RPTs, from which most were reported in 2017–2019. Of these, nearly two-thirds were reported by auditors from the Big4 category. Most KAMs were reported by companies in the U.K., Germany, and France, and the industries with the most KAMs were finance, insurance, and real estate. In conclusion, there are factors that can affect audit quality due to the reporting of RPTs, but by identifying them, the audit process can be better managed, thus increasing its efficiency.
Recent scandals of companies in America (Adelfia, Enron) and Europe (Parmalt) have magnified transactions with related parties. Experience has shown that transactions with related parties not only ...can disrupt in create value for shareholders, but also can provide caused of the collapse of firms. In this line, the aim of this study is to predict the amount of transactions with related parties using artificial neural network in companies listed in the Tehran Stock Exchange. Multi-layer artificial perceptron Neural Network with backwards propagation algorithm, the duality of the Board of Directors, the independence of the board of directors, financial leverage, Institutional ownership, the ratio of market value to book value of assets, company size and profitability were used to predict the amount of transactions with related parties , the predictor variables of board size. Finally, a network with the mean square error 0.229 , 0.424, 0.299, 0.268 were chosen respectively for educational data, validation, test and total data, and coefficient of determination more than 76%, as the best network to predict the amount of transactions with related people were selected.
Intention to reduce food waste: A study among Malaysians Chun T'ing, Loh; Moorthy, Krishna; Gunasaygaran, Nirossheni ...
Journal of the Air & Waste Management Association (1995),
07/2021, Letnik:
71, Številka:
7
Journal Article
Recenzirano
Malaysia, also known as a food haven, is currently facing an excessive food waste problem which poses a threat to the environment. The objective of this research is to study the factors that affect ...the behavioral intention of Malaysians to reduce food waste. This study employs the Theory of Planned Behavior (TPB) and the Norm Activation Model (NAM) to better understand the behavioral intention of Malaysians toward reducing food waste. A cross-sectional study was conducted, using 352 self-administered survey questionnaires. Data collected were analyzed through PLS-SEM analysis. The results show that awareness of consequences (AC) and ascription of responsibility (AR) influence personal norms, while attitude, perceived behavioral control, and personal norms (PN) have significant effect on behavioral intention (BI) to reduce food waste. Furthermore, PN partially mediates the relationship between AC and BI as well as AR and BI. This study offers critical insights which will benefit the Malaysian Government, Non-Governmental Organizations (NGOs), and other related parties in recognizing factors influencing the intention to reduce food waste which can be adopted to develop practical solutions to curb food waste in Malaysia.
Implications: This study offers critical insights to the Malaysian Government, non-governmental organizations (NGOs), and other related parties in recognizing factors influencing the intention to reduce food waste which can be adopted to develop practical solutions to curb food waste in Malaysia.
The aim of this paper is to examine the nature of related party transactions, how they are reflected in the context of a financial audit and the challenges of resolving risk management issues, ...detecting fraud and the effects of coordinating these transactions by company management between two or more affiliated companies. To achieve the objective, the research methodology is qualitative and is based on the selection of a sample of relevant articles from journals indexed in the international database in which the risks identified in transactions with related parties were highlighted. The research results show the main risks identified were fraud risk, risk of misstatements and the company value manipulation risk. In conclusion, it can be stated that there are additional factors in the audit of related party transactions that the auditor must take into account so that there is no impact on the correctness and accuracy of the results of the final audit report.
Wireless sensor networks (WSNs) have great potential for numerous domains of application because of their ability to sense and understand unattended environments. However, a WSN is subject to various ...attacks due to the openness of the public wireless channel. Therefore, a secure authentication mechanism is vital to enable secure communication within WSNs, and many studies on authentication techniques have been presented to build robust WSNs. Recently, Lu et al. analyzed the security defects of the previous ones and proposed an anonymous three-factor authenticated key agreement protocol for WSNs. However, we found that their protocol is vulnerable to some security weaknesses, such as the offline password guessing attack, known session-specific temporary information attack, and no session key backward secrecy. We propose a lightweight security-improved three-factor authentication scheme for WSNs to overcome the previously stated weaknesses. In addition, the improved scheme is proven to be secure under the random oracle model, and a formal verification is conducted by ProVerif to reveal that the proposal achieves the required security features. Moreover, the theoretical analysis indicates that the proposal can resist known attacks. A comparison with related works demonstrates that the proposed scheme is superior due to its reasonable performance and additional security features.
Purpose This paper aims to investigate the relationship between the audit committee’s (AC) cash compensation and related-party transactions (RPTs). This paper also explores whether the affiliation of ...directors on the AC has a differential effect on the association between AC members’ cash compensation and RPTs. Design/methodology/approach This paper uses data from Chinese-listed firms for the period from 2007 to 2017 and use the ordinary least square regressions, to test the association between AC cash compensation and RPTs. To alleviate the endogeneity concerns, this paper applies the generalized method of moment, the two-stage least square regression technique and the Granger causality test. Findings This paper documents a negative association between the AC members’ cash compensation and RPTs. The findings reveal that one standard deviation increase in the AC’s cash compensation leads to around 0.08% reduction in the amount of RPTs. Further analysis shows that the cash compensation of AC independent directors is negatively associated with RPTs, whereas that of nonindependent directors shows no significant impact. The results remain robust to endogeneity tests. The results might be of interest to both practitioners as well as regulatory bodies and investors. Originality/value To the best of the authors’ knowledge, this study is the first to try to examine the relationship between AC cash compensation and RPTs in the context of China. This study also is the first attempt to consider the affiliation of AC directors by decomposing the AC compensation into independent and nonindependent directors. Also, it adds to the literature on the determinants of RPTs.
The main purpose of this study was to investigate the effect of transactions with individuals related to the auditor's inability to detect corporate fraud using the analysis of auditors in companies ...listed on the Tehran Stock Exchange. In order to collect research literature, library method and taking notes were used. The method of this research was descriptive and based on composite data and regression statistical method was used to examine the relationship between independent and dependent variables. The statistical population of this study was the companies listed on the Tehran Stock Exchange in the period from 2009 to 2018. Using elimination screening sampling method, 97 companies were studied as a statistical sample size.Data were analyzed and processed using Eviews9 software and statistical tests (logistic regression). The findings of this study showed that in companies with high transactions with affiliates, the probability of fines (inability) of the auditor is high. In other words, transactions with related parties increase the likelihood of the auditor's inability (audit failure due to fraud in the company).
Purpose
This paper aims to conduct a review of the recent literature on inter-firm relationship quality (RQ) in the supply chain (SC) settings.
Design/methodology/approach
100 English-language ...scientific publications on inter-firm RQ, published from 2006 to 2015 were selected and analyzed by using a content analysis approach.
Findings
The results of the frequency analysis map the antecedents, dimensions and consequences – particularly the performance and behavioral intentions of collaborating partners – of buyer–seller RQ presented in the current literature. The contingency analysis offers insights into the use of relevant constructs of inter-firm RQ in SCs in the individual papers. A range of research gaps is uncovered.
Research limitations/implications
The category building for the content analysis was based on an RQ framework that focuses on the mediator structure and neglects the effects of moderators.
Practical implications
The developed framework of inter-firm RQ in SCs provides managers with a guide to the relevant influencing factors, evaluation indicators and consequences of the quality of their relationships with SC partners.
Originality/value
This paper provides the first literature review at the intersection of RQ and SC. The research framework developed specifies the use of the previous RQ framework in the business-to-business and SC context. A critique of the existing studies is discussed and the agenda for future research are suggested.
The purpose of the study is to identify the impact of specific types of related parties, which are allocated in International Standards on Auditing 550 “Related Parties”, not only on the organization ...of the audit of financial statements in the context of assessing the risk of material misstatement, but also on the organization of accounting in enterprises. To achieve the goal set in the work, a complex of general scientific methods (analysis, synthesis, induction, deduction, abstraction) and methodical techniques (systematization, generalization, review, comparison) based on the provisions of International Standards of Auditing was used. In the study of the essence of related parties transactions and elaboration their classification method of system analysis, logical method, and method of modeling were used. There are three major tasks within the overall responsibility of the auditor while fulfilling such engagement as audit of the financial statements have been determined. It is substantiated that two different phrases (“has a responsibility to perform audit procedures” and “needs to obtain an understanding”) which are used in International Standards on Auditing 550 “Related Parties” requires a separate approach to formation a set of optimal audit procedures. Specific types of related parties based on the International Standards 550 “Related Services” that should be considered when performing audit of financial statements has been identified. Classification of related parties transactions according to their riskiness and connection with the normal course of business into four different types has been elaborated. Two groups of inquiries concerning related parties transactions have been analyzed. It has been proved that making inquiries the auditor should provide as much information as possible in order to avoid misunderstandings, which may lead to difficulties in forming an opinion. It is noted that determining the characteristics of the dominant influence and significant transactions will allow effective communication and cooperation between auditors, management staff and those responsible for governance in formation inquires and answers for them. Using proposed classification in the process of audit of financial statements and in developing regulatory documents for accounting at the entity will allow appropriate assessing of risk of material misstatement and increasing the effectiveness of internal control at the entity. It has been substantiated that the objectives of accounting policy not only in terms of meeting the interests of the company as an entity that prepares financial statements and interacts with related parties, but also in terms of meeting the interests of the entity as a responsible party, interacting with the auditor, that seeks to establish an internal control system that will ensure reducing its own risks.
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