The market for audit services has been affected in recent years by significant changes like the demise of Andersen and the implementation of the Sarbanes-Oxley Act of 2002. One impact of these market ...changes has been an increase in the frequency of auditor switches, and in particular, the frequency of clients switching from Big 4 auditors to smaller audit firms. We examine whether this switching activity has resulted in changes in the risk characteristics of publicly traded clients of Second Tier audit firms. This analysis is important as regulators are concerned about audit market concentration and would like to see the Second Tier audit firms expand their share of the publicly traded client market. Results indicate that Second Tier firms are accepting clients with potentially increased audit and client business risk characteristics relative to their existing client base, but they also appear to be “shedding” clients that have increased audit and client business risk characteristics relative to their existing client base. Some of the differences in risk characteristics for those departing clients are more pronounced in the period after 2000, when we expect the most significant changes in the audit market occurred. Second Tier auditors are increasingly exposed to more business risk as they accept larger clients coming from Big 4 predecessor auditors, which may increase their exposure to litigation.
Poor rural households in developing countries often endure many-faceted burdens including monetary poverty, nutrition deficiency and energy shortage due to reliance on limited local natural resources ...with low utilisation efficiency. We investigate a sustained pathway in rural China to escape the vicious circle between three important dimensions of poverty - deficiency of income, malnutrition and a low energy consumption profile in terms of reliance on firewood. By exploiting household panel data and a dynamic and recursive multi-equation mixed mode, we identify inter-locking deprivations in income, nutrition and energy consumption. Firewood plantations only offer short-term solutions to break them through income effects, while the sustained pathways in the long-term are increasing agricultural labour productivity and provision of agricultural loans.
Institutions and Poverty Tebaldi, Edinaldo; Mohan, Ramesh
The Journal of development studies,
07/2010, Letnik:
46, Številka:
6
Journal Article
Recenzirano
This study utilises eight alternative measures of institutions and the instrumental variable method to examine the impacts of institutions on poverty. The estimates show that an economy with a robust ...system to control corruption, an effective government, and a stable political system will create the conditions to promote economic growth, minimise income distribution conflicts, and reduce poverty. Corruption, ineffective governments, and political instability will not only hurt income levels through market inefficiencies, but also escalate poverty incidence via increased income inequality. The results also imply that the quality of the regulatory system, rule of law, voice and accountability, and expropriation risk are inversely related to poverty but their effect on poverty is via average income rather than income distribution.
This study examines how the informational quality of annual accounting earnings, varies according to the size and composition of the board of directors of publicly listed firms within the Greek ...capital market. Data analysis over a period of five years (2000–2004) revealed that the informativeness of annual accounting earnings is positively related to the fraction of outside directors serving on the board, but it is not related to board size. Additionally, firms with a higher proportion of outside board members proved to be more conservative when reporting bad news but on the contrary they do not display greater timeliness on the recognition of good news. Finally, firms with a higher proportion of outside directors report earnings of higher quality compared to firms with a low proportion of outside directors. Our results are robust to several sensitivity tests controlling for endogeneity, firm's fixed effects and alternative models for the estimation of discretionary accruals.
Why have ninety million workers around the globe left their homes for employment in other countries? What can be done to ensure that international labor migration is a force for global betterment? ...This groundbreaking book presents the most comprehensive analysis of the causes and effects of labor migration available, and it recommends sensible, sustainable migration policies that are fair to migrants and to the countries that open their doors to them.
The authors survey recent trends in international migration for employment and demonstrate that the flow of authorized and illegal workers over borders presents a formidable challenge in countries and regions throughout the world. They note that not all migration is from undeveloped to developed countries and discuss the murky relations between immigration policies and politics. The book concludes with specific recommendations for justly managing the world's growing migrant workforce.
La perception subjective du revenu joue un rôle important dans les relations de travail et la satisfaction au travail. Lorsque les travailleurs estiment qu’ils ont déjà fait des sacrifices antérieurs ...en matière de salaires et d’avantages sociaux, ils risquent d’avoir des aspirations plus élevées aux prochaines rondes de négociations collectives que ce n’aurait été le cas autrement. Malgré le rôle important des perceptions subjectives du revenu actuel, il est difficile d’en tenir compte dans la recherche appliquée car on ne les observe pas très souvent dans la pratique. À notre connaissance, il y a peu ou pas d’études scientifiques qui portent sur l’exactitude des perceptions rétrospectives ou actuelles du revenu par opposition aux attentes prospectives.
Cette étude porte sur les médecins de soins primaires indépendants et non salariés dans la province canadienne de l’Ontario. Nous nous intéressons à leurs perceptions rétrospectives du revenu touché au cours d’une période récente, et ce pour deux raisons. Premièrement, ce facteur pourrait influencer leurs attentes futures de revenu. Deuxièmement, l’augmentation ou la baisse perçue du revenu réel aura probablement une incidence importante sur la négociation des salaires et des honoraires sans compter sur la satisfaction au travail et le moral.
Notre analyse empirique évalue l’exactitude de l’évaluation rétrospective du revenu réel par les médecins de famille en comparant l’évolution réelle et l’évolution perçue du revenu au cours d’une période de référence. Nous avons bénéficié d’une source de données unique pour déterminer l’écart entre l’évolution réelle et l’évolution perçue du revenu, soit les données des déclarations de revenus. Notre méthodologie comprend des statistiques descriptives ainsi qu’une analyse de régression multivariée.
Notre étude révèle que les médecins de famille ont une tendance un peu surprenante à sous-estimer l’évolution véritable de leur revenu. En effet, plusieurs des sujets de l’échantillon ont réalisé une croissance de revenu plus importante qu’ils le croyaient au cours de la période de référence. Cette perception fausse de l’évolution du revenu était plus marquée chez les médecins dont le revenu réel avait baissé ou peu augmenté. Néanmoins, plus l’augmentation réelle du revenu était importante, plus le sujet était susceptible de signaler une augmentation de revenu.
Michael Lewis's book, Moneyball, describes how an innovative manager working for the Oakland Athletics successfully exploited an inefficiency in baseball's labor market over a prolonged period of ...time. We evaluate Lewis's claims by applying standard econometric procedures to data on player productivity and compensation from 1999 to 2004. These methods support Lewis's argument that certain baseball skills were valued inefficiently in the early part of this period, and that this inefficiency was profitably exploited by managers with the ability to generate and interpret statistical knowledge. Consistent with Lewis's story and economic reasoning, as knowledge of the inefficiency became increasingly dispersed across baseball teams the market corrected the original mispricing.
Minniti Minniti, M., 2004. Entrepreneurial alertness and asymmetric information in a spin-glass model. Journal of Business Venturing 19 (5), 637–658; Minniti, M., 2005. Entrepreneurship and network ...externalities. Journal of Economic Behavior & Organization 57 (1), 1–27 argues that new venture creation decisions are interdependent and that the non-pecuniary network externalities and path dependencies of such decisions influence the geographic concentration of venturing activities. We apply her framework at the county level to study the association between prior and subsequent new venture creation in the U.S. Our findings indicate that there is a non-linear relationship between prior new venture creation and subsequent new venture creation, with venturing activities increasing at an increasing rate based on the amount of prior new venture creation.
Recent accounting research has started to investigate the links between corporate compensation and auditor compensation.
Engel et al. (2010) take a first step to connect these previously distinct ...literatures by investigating the association between audit committee pay and audit fees. I discuss the findings of this study and then present complementary empirical evidence on the association between CEO compensation and audit fees. My descriptive empirical evidence suggests economically large co-variation in CEO compensation and audit fees. I conclude with suggestions for future research on the links between firms’ corporate compensation and auditor compensation policies.
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