Quality of internal control procedures : antecedents and moderating effect on organisational justice and employee fraud

Purpose – This study aims to bring together theoretical concepts from the organizational justice, internal control and fraud literature to develop two distinct models relating to employee fraud and the quality of internal control procedures (ICP), respectively.

Design/methodology/approach – Survey data from 64 Australian firms were used to develop the two models. The first model was tested using a logistic regression analysis, and the second model was tested using a multiple regression analysis.

Findings – The first model reveals that the quality of ICP has a moderating effect on the relationship between perceptions of organizational justice and employee fraud. The second model indicates that ICP quality is significantly and positively related to three key organizational factors: the corporate ethical environment, the extent of risk management training of staff, and the internal audit (IA) activity level.

Practical implications – Risk management strategies relating to employee fraud will need to pay greater attention to organizational factors that affect both perceptions of justice at the workplace and ICP quality, including fostering a more ethical and equitable work environment, increasing IA activities and staff training in risk management.

Originality/value – Using the fraud triangle framework, this study extends previous literature by providing empirical evidence on the role of organizational justice and ICP regarding employee fraud.

Consumer reactions to corporate social responsibility (CSR) in Thailand: the moderating effect of competitive positioning

Purpose – The purpose of this paper is to understand the business case for corporate social responsibility (CSR) in Thailand by focusing on the consumer-organisational relationship and test the conceptual framework of Du et al. (2007). Design/methodology/approach – A quantitative study was conducted using a mall intercept survey of 184 Thai mobile phone service provider consumers in Bangkok, Thailand. Findings – A CSR emphasised brand is more likely than non-CSR emphasised brands to accrue consumer CSR awareness, positive attitude to company motivations and beliefs in the CSR of that company. Although beliefs are associated with consumers’ greater identification and advocacy behaviours towards the CSR emphasised brand than the non-CSR emphasised brands, they are not associated with loyalty. Practical implications – The paper provides potential guidance for companies to more effectively position and communicate their CSR activities to create differential advantages. Originality/value – Findings of the study demonstrate some support for a business case for CSR in Thailand.

The moderating effect of individual level collectivist values on brand loyalty

In today's dynamic business environment the success of a firm often depends on its ability to create brand loyalty. While there is a large body of research exploring brand loyalty and its antecedents, little has been done to examine how the relationship between these antecedents and brand loyalty is moderated by consumer differences in individual level collectivist values. This understanding is important however as consumers high in individual level collectivist values have been found to make different brand choices than consumers low in individual level collectivist values. We develop and test theory that suggests consumer differences in individual level collectivist values have a significant moderating effect on the relationship between perceived value, perceived quality, brand trust and brand loyalty. The results show that consumers high in individual level collectivist values are significantly more loyal to a focal brand, especially when brand trust and perceived quality are at relatively low levels. © 2014 Elsevier Inc.

The relation between decentralised structure, budgetary participation and organisational commitment : the moderating role of managers' value orientation towards innovation

Reports the results of a study which investigated the moderating role of managers’ value orientation towards innovation (VOI) on the relationships between managers’ organisational commitment and two management control features – decentralised organisational structure and budgetary participation. Data for the study were collected from 116 managers in manufacturing firms. The results indicate that managers’ VOI has a significant moderating effect on the relationships between the two management control features and managers’ organisational commitment. The results reveal that the relationships are stronger for managers with high VOI than for managers with low VOI. These results have implications for enhancing managers’ organisational commitment through the design of management control systems appropriate for the extent of innovative work values promoted by organisations.

Does free recall moderate the effect of mental context reinstatement instructions on children's cued recall?

Cognitive Interview instructions increase children's recall of events; one important instruction is the mental reinstatement of context. We examined one factor that may affect mental context reinstatement: whether children had the opportunity to freely recall the event before answering cued recall questions. One hundred and fifty-two children aged 6, 9, or 11 years were interviewed twice about a staged event. The event consisted of an argument between two adults about whose turn it was to show the children a film. One week after the event, some of the children received mental context reinstatement instructions before having their cued recall tested. Some children also received a free recall test immediately before the cued recall test. In the second interview, 2 weeks after the first interview, all children freely recalled the event. The results showed no effects of mental context reinstatement instructions and no moderating effect of free recall on children's cued recall. The implications of these findings and directions for future research are discussed.

The moderating effects of demographic factors and hukou status on the job satisfaction-subjective well-being relationship in urban China

This study tests the moderating effect of job complexity and social status, proxied by a unique Chinese cultural variable (hukou status), on the relationship between job satisfaction and subjective well-being in urban China. Data on these and a range of demographic variables were collected from 1025 workers in Fujian Province in the People's Republic of China. Results confirm that hukou status does moderate the job satisfaction-subjective well-being relationship in this sample. Several further moderating relationships are also detected. The study adds the empirical literature on job satisfaction and subjective well-being in China and also furthers understanding of the complex relationship between these constructs. © 2011 Taylor & Francis.

The moderating role of firm age in the relationship between R&D expenditure and financial performance: evidence from Chinese and US mining firms

We examine the impact of Research and Development (R&D) on the profitability and sales of mining firms in China and the United States (US) and the moderating effect of firm age using Coarsened Exact Matching (CEM). For the combined panel of 168 major US and Chinese mining firms, we find that, on average, a firm engaging in R&D activities earns 4% to 11% higher sales and generates 4% to 13% more profits than firms that do not engage in R&D activities. We also show that, in the mining industry, firm age moderates the relationship between R&D activities and financial performance. A comparatively mature R&D active firm earns 4.4% more profit and generates 7.2% more sales than a younger non-innovative firm. The turning point at which R&D activities switch from making a negative, to positive, contribution to profit and sales is 37 years and 22 years, respectively. Our results are consistentwith the liability of newness, meaning that firm investment in R&D takes time to have a real impact on bottom line measures of financial performance. We conclude with a discussion of the practical implications of our results for Chinese and US mining firms.

Brand trust and avoidance following brand crisis : a quasi-experiment on the effect of franchisor statements

Although franchising has become an important growth strategy in severalindustries over the last few decades, there are few empirical studies about the effects of franchisor communication strategy on customer responses in the context of franchise brand crisis. Two quasi-experimental studies were conducted to test the effect ofa franchisor ownership separation statement on brand trust and brand avoidance following a brand crisis situation. Results show that a franchisor’s explicit communication of the franchise brand’s individual ownership business structure is useful in preventing further negative spillover effect throughout the franchised chain when thebrand crisis occurs at a single franchise location. The authors also investigate the mechanism through which such communication influences customer behavior and the moderating effect of the brand crisis severity in affecting brand evaluation. These results offer guidance to franchise brand managers by providing insight into how to overcome a franchise brand crisis and by suggesting franchise context-specific managerial recommendations

Coping with economic deprivation during unemployment

The negative impact of unemployment on psychological health is well known. Less is known of the ways that people cope with the problems associated with unemployment, one of which is economic deprivation. This study examined the interrelationships between employment status (200 unemployed participants and 128 employed participants), economic deprivation, coping-efforts and psychological health. It also examined the moderating effect of coping on the relationship between economic deprivation (restriction of spending for material necessities and restriction of spending for meaningful leisure activity) and psychological health. The results suggest that economic deprivation is experienced differentially in terms of material necessities and meaningful leisure activities with unemployed respondents differing from employed on levels of deprivation for meaningful leisure activities but not for material necessities. Employment status, economic deprivation for meaningful leisure activity, solution-oriented coping and affective-based coping significantly predicted depressive affect and self-esteem. Depressive affect was also predicted by economic deprivation for material necessities. A number of significant two-way interactions show that the relationship between economic deprivation and psychological health was conditional upon the use of solution-oriented coping. Results also showed that the relationship between employment status and depressive affect was moderated by the use of affective-based coping. The incorporation of these findings into intervention programmes for unemployed persons is discussed.

Disentangling the stigma of HIV/AIDS from the stigmas of drugs use, commercial sex and commercial blood donation - a factorial survey of medical students in China

Background
HIV/AIDS related stigma interferes with the provision of appropriate care and support for people living with HIV/AIDS. Currently, programs to address the stigma approach it as if it occurs in isolation, separate from the co-stigmas related to the various modes of disease transmission including injection drug use (IDU) and commercial sex (CS). In order to develop better programs to address HIV/AIDS related stigma, the inter-relationship (or 'layering') between HIV/AIDS stigma and the co-stigmas needs to be better understood. This paper describes an experimental study for disentangling the layering of HIV/AIDS related stigmas.

Methods
The study used a factorial survey design. 352 medical students from Guangzhou were presented with four random vignettes each describing a hypothetical male. The vignettes were identical except for the presence of a disease diagnosis (AIDS, leukaemia, or no disease) and a co-characteristic (IDU, CS, commercial blood donation (CBD), blood transfusion or no co-characteristic). After reading each vignette, participants completed a measure of social distance that assessed the level of stigmatising attitudes.

Results
Bivariate and multivariable analyses revealed statistically significant levels of stigma associated with AIDS, IDU, CS and CBD. The layering of stigma was explored using a recently developed technique. Strong interactions between the stigmas of AIDS and the co-characteristics were also found. AIDS was significantly less stigmatising than IDU or CS. Critically, the stigma of AIDS in combination with either the stigmas of IDU or CS was significantly less than the stigma of IDU alone or CS alone.

Conclusion
The findings pose several surprising challenges to conventional beliefs about HIV/AIDS related stigma and stigma interventions that have focused exclusively on the disease stigma. Contrary to the belief that having a co-stigma would add to the intensity of stigma attached to people with HIV/AIDS, the findings indicate the presence of an illness might have a moderating effect on the stigma of certain co-characteristics like IDU. The strong interdependence between the stigmas of HIV/AIDS and the co-stigmas of IDU and CS suggest that reducing the co-stigmas should be an integral part of HIV/AIDS stigma intervention within this context.

Appearance-based comments, body dissatisfaction and drive for muscularity in males

This study examined the role of positive and negative appearance-based comments on body dissatisfaction and drive for muscularity among young adult males. The direct and moderating effect of self-esteem were also investigated; and BMI, age, and social desirability were included as covariates. The participants were 214 males aged between 18 and 30 years. More frequent negative comments were associated with higher body dissatisfaction whilst more frequent positive comments were associated with lower body dissatisfaction. However, both frequent negative and positive commentary were associated with higher drive for muscularity. Self-esteem was also associated with both body dissatisfaction and the drive for muscularity, but it did not moderate that influence of either positive or negative messages. Longitudinal research is now needed to determine the directionality of these relationships. Further research is required to establish the contexts in which positive and negative messages are associated with body dissatisfaction and the drive for muscularity.

Multilevel analysis of the Be Active Eat Well intervention : environmental and behavioural influences on reductions in child obesity risk

Background: The Be Active Eat Well (BAEW) community-based child obesity prevention intervention was successful in modestly reducing unhealthy weight gain in primary school children using a multi-strategy and multi-setting approach.

Objective: To (1) examine the relationship between changes in obesity-related individual, household and school factors and changes in standardised child body mass index (zBMI), and (2) determine if the BAEW intervention moderated these effects.

Methods: The longitudinal relationships between changes in individual, household and school variables and changes in zBMI were explored using multilevel modelling, with measurement time (baseline and follow-up) at level 1, individual (behaviours, n=1812) at level 2 and households (n=1318) and schools (n=18) as higher levels (environments). The effect of the intervention was tested while controlling for child age, gender and maternal education level.

Results: This study confirmed that the BAEW intervention lowered child zBMI compared with the comparison group (−0.085 units, P=0.03). The variation between household environments was found to be a large contributor to the percentage of unexplained change in child zBMI (59%), compared with contributions from the individual (23%) and school levels (1%). Across both groups, screen time (P=0.03), sweet drink consumption (P=0.03) and lack of household rules for television (TV) viewing (P=0.05) were associated with increased zBMI, whereas there was a non-significant association with the frequency the TV was on during evening meals (P=0.07). The moderating effect of the intervention was only evident for the relationship between the frequency of TV on during meals and zBMI, however, this effect was modest (P=0.04).

Conclusions: The development of childhood obesity involves multi-factorial and multi-level influences, some of which are amenable to change. Obesity prevention strategies should not only target individual behaviours but also the household environment and family practices. Although zBMI changes were modest, these findings are encouraging as small reductions can have population level impacts on childhood obesity levels.

Psychosocial predictors of eating disorder risk in overweight and obese treatment-seeking adolescents

This study explored eating disorder risk factors and possible psychosocial predictors of this risk in overweight and obese treatment-seeking adolescents. Prior to commencing treatment 108 overweight and obese adolescents aged 11 to 17 years (M = 14.31, SD = 1.57; 55% female) completed self-report measures of psychosocial factors. Females reported elevated levels of bulimic tendencies, body dissatisfaction, drive for thinness (p ≤ .001) and males reported elevated body dissatisfaction (p < .001). Age, sex and BMI-for-age z-score explained 15% (p < .001) of the variance in eating disorder risk and psychosocial predictors an additional 25%. Sex did not have a moderating effect on these relationships (p = .21). Among overweight and obese treatment-seeking adolescents, those experiencing lower self-esteem and elevated depression and anxiety symptomatology are at increased eating disorder risk. This highlights the need to consider psychosocial factors in preventing and treating overweight and obesity.

Determinants and economic consequences of voluntary disclosure of internal control weaknesses in China

This paper investigates the determinants and economic consequences of disclosure of internal control weaknesses (ICWs) by Chinese listed firms under the voluntary disclosure regime over 2010-2011. We find that the probability of firms disclosing ICWs is not only associated with firm characteristics such as profitability, age and business complexity, but is also strongly related to the unique attributes of corporate governance and ownership structure in Chinese listed firms, e.g. the independence of the supervisory board, political connections, concentration of the top 3 shareholders' ownership and tradability of shares.Our results show that the severity of the ICWs disclosed is negatively and significantly associated with earnings response coefficients (ERCs), and audit assurance of ICRs has a significant moderating effect on the relationship between ICWs and ERCs. Our research adds further evidence to support the implementation of SOX-type regulations globally.

The association between mindfulness and emotional distress in adults with diabetes: could mindfulness serve as a buffer? Results from Diabetes MILES: the Netherlands

People with diabetes have a higher risk of emotional distress (anxiety, depression) than non-diabetic or healthy controls. Therefore, identification of factors that can decrease emotional distress is relevant. The aim of the present study was to examine (1) the association between facets of mindfulness and emotional distress; and (2) whether mindfulness might moderate the association between potential adverse conditions (stressful life events and comorbidity) and emotional distress. Analyses were conducted using cross-sectional data (Management and Impact for Long-term Empowerment and Success-Netherlands): 666 participants with diabetes (type 1 or type 2) completed measures of mindfulness (Five Facet Mindfulness Questionnaire-Short Form; FFMQ-SF), depressive symptoms (Patient Health Questionnaire; PHQ-9), and anxiety symptoms (General Anxiety Disorder assessment; GAD-7). Hierarchical multiple regression analyses showed significant associations between mindfulness facets (acting with awareness, non-judging, and non-reacting) and symptoms of anxiety and depression (β = -0.20 to -0.33, all p < 0.001). These mindfulness facets appeared to have a moderating effect on the association between stressful life events and depression and anxiety (all p < 0.01). However, the association between co-morbidity and emotional distress was largely not moderated by mindfulness. In conclusion, mindfulness is negatively related to both depression and anxiety symptoms in people with diabetes and shows promise as a potentially protective characteristic against the influence of stressful events on emotional well-being. © 2014 Springer Science+Business Media New York.