Legal liability, government intervention, and auditor behavior : evidence from structural reform of audit firms in China

This paper investigates how legal liability influences audit quality and audit fees, particularly in the presence of government intervention. Since 2010, all Chinese audit firms were required to transform from a structure of limited liability company (LLC) to limited liability partnership (LLP), which removes the cap on the liability exposure of negligent auditors. By adopting this natural experiment, we document the following findings: first, after audit firms reorganize as LLPs, auditors are more likely to (1) issue modified audit opinions and going-concern opinions, (2) constrain clients’ earnings management, and (3) charge a premium in audit fees, which suggest that exerting unlimited legal liability on negligent auditors improves both audit quality and audit fees. Second, the effect of the LLP adoption is more pronounced when auditors are from local audit firms, and clients are controlled by local governments. Further analyses suggest that the stock prices of clients positively react to the reform event, which indicates that LLP adoption improves the overall value of audits. In summary, our empirical findings are consistent with the argument that legal liability is able to effectively shape auditor behavior in emerging markets where the other institutional mechanisms are relatively weaker and government intervention is heavy.

Individual, occupational, and workplace correlates of occupational health and safety vulnerability in a sample of Canadian workers

Objective: To describe OH&S vulnerability across a diverse sample of Canadian workers.
Methods: A survey was administered to 1,835 workers employed more than 15 hrs/week in workplaces with at least five employees. Adjusted logistic models were fitted for three specific and one overall measure of workplace vulnerability developed based on hazard exposure and access to protective OH&S policies and procedures, awareness of employment rights and responsibilities, and workplace empowerment.
Results: More than one third of the sample experienced some OH&S vulnerability. The type and magnitude of vulnerability varied by labor market sub-group. Younger workers and those in smaller workplaces experienced signficantly higher odds of multiple types of vulnerability. Temporary workers reported elevated odds of overall, awareness- and empowerment-related vulnerability, while respondents born outside of Canada had significantly higher odds of awareness vulnerability.
Conclusion: Knowing how labor market sub-groups experience different types of vulnerability can inform better-tailored primary prevention interventions.

City-level auditor industry specialization, economies of scale, and audit pricing

We examine the effects of city-level auditor industry specialization and scale economies on audit pricing in the United States. Using a sample of Big N clients for the 2000-2007 period, and a scale measure based on percentile rankings of the number of audit clients at the city-industry level, we document significant specialization premiums and scale discounts in both the pre- and post-Sarbanes-Oxley Act (SOX) periods. However, the effects of industry specialization and scale economies on audit pricing are highly interactive. The negative effect of city-industry scale on audit fees obtains only for clients of specialist auditors. By contrast, clients of non-specialist auditors obtain scale discounts only when they enjoy strong bargaining power, suggesting that auditors are "forced" to pass on scale economies to clients with greater bargaining power.

Auditor industry specialization, political economy and earnings quality: some cross-country evidence

Using cross-country data, we evaluate the impact of investor protection on the association between earnings quality and audits by industry specialists. Our findings show that the positive association between industry specialist auditors and earnings quality as documented in the literature is affected by the political electoral system, which reflects investor protection rights in a country. We document that audits by industry specialists are associated with higher earnings quality in countries with the proportional electoral system, reflecting weak investor protection. Our results also confirm Kwon et al.'s findings that overall there is a positive association between earnings quality and audits by industry specialists in countries with weak legal enforcement. Our findings, however, indicate that Kwon et al.'s results are valid only for countries with weak investor protection reflected by the proportional electoral system and not for countries with strong investor protection reflected by the majoritarian electoral system. These findings thus suggest that higher earnings quality of firms audited by industry specialists across countries can especially be expected when investor protection is low and legal enforcement is also weak. In addition, our research suggests that future cross-country studies could explicitly consider the role of the political electoral system of a country in evaluating corporate governance, management and accounting issues.

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.

Validity of treadmill- and track-based individual calibration methods for estimating free-living walking speed and VO2 using the Actigraph accelerometer

BACKGROUND: For many patients clinical prescription of walking will be beneficial to health and accelerometers can be used to monitor their walking intensity, frequency and duration over many days. Walking intensity should include establishment of individual specific accelerometer count, walking speed and energy expenditure (VO2) relationships and this can be achieved using a walking protocol on a treadmill or overground. However, differences in gait mechanics during treadmill compared to overground walking may result in inaccurate estimations of free-living walking speed and VO2. The aims of this study were to compare the validity of track- and treadmill-based calibration methods for estimating free-living level walking speed and VO2 and to explain between-method differences in accuracy of estimation.

METHODS: Fifty healthy adults [32 women and 18 men; mean (SD): 40 (13) years] walked at four pre-determined speeds on an outdoor track and a treadmill, and completed three 1-km self-paced level walks while wearing an Actigraph monitor and a mobile oxygen analyser. Speed- and VO2-to-Actigraph count individual calibration equations were computed for each calibration method. Between-method differences in calibration equation parameters, prediction errors, and relationships of walking speed with VO2 and Actigraph counts were assessed. RESULTS: The treadmill-calibration equation overestimated free-living walking speed (on average, by 0.7 km · h(-1)) and VO2 (by 4.99 ml · kg(-1) · min(-1)), while the track-calibration equation did not. This was because treadmill walking, from which the calibration equation was derived, produced lower Actigraph counts and higher VO2 for a given walking speed compared to walking on a track. The prediction error associated with the use of the treadmill-calibration method increased with free-living walking speed. This issue was not observed when using the track-calibration method. CONCLUSIONS: The proposed track-based individual accelerometer calibration method can provide accurate and unbiased estimates of free-living walking speed and VO2 from walking. The treadmill-based calibration produces calibration equations that tend to substantially overestimate both VO2 and speed.

Secure ownership transfer for multi-tag multi-owner passive RFID environment with individual-owner-privacy

In this paper we propose a secure ownership transfer protocol for a multi-tag multi-owner RFID environment that provides individual-owner-privacy. To our knowledge, the existing schemes do not provide individual-owner-privacy and most of the existing schemes do not comply with the EPC Global Class-1 Gen-2 (C1G2) standard since the protocols use expensive hash operations or sophisticated encryption schemes that cannot be implemented on low-cost passive tags that are highly resource constrained. Our work aims to fill these gaps by proposing a protocol that provides individual-owner-privacy, based on simple XOR and 128-bit pseudo-random number generators (PRNG), operations that are easily implemented on low-cost RFID tags while meeting the necessary security requirements thus making it a viable option for large scale implementations. Our protocol also provides additional protection by hiding the pseudo-random numbers during all transmissions using a blind-factor to prevent tracking attacks.

Consensus building in a local context for the AHP-GDM with the individual numerical scale and prioritization method

The methodology for selecting the individual numerical scale and prioritization method has recently been presented and justified in the analytic hierarchy process (AHP). In this study, we further propose a novel AHP-group decision making (GDM) model in a local context (a unique criterion), based on the individual selection of the numerical scale and prioritization method. The resolution framework of the AHP-GDM with the individual numerical scale and prioritization method is first proposed. Then, based on linguistic Euclidean distance (LED) and linguistic minimum violations (LMV), the novel consensus measure is defined so that the consensus degree among decision makers who use different numerical scales and prioritization methods can be analyzed. Next, a consensus reaching model is proposed to help decision makers improve the consensus degree. In this consensus reaching model, the LED-based and LMV-based consensus rules are proposed and used. Finally, a new individual consistency index and its properties are proposed for the use of the individual numerical scale and prioritization method in the AHP-GDM. Simulation experiments and numerical examples are presented to demonstrate the validity of the proposed model.

Victoria’s banning provisions: ‘balancing’ discretionary police powers and individual rights

This thesis examines the parliamentary passage, implementation and ongoing scrutiny of Victoria’s banning notice provisions. Underlying political assumptions and justifications are explored to reveal how banning notices exemplify a move towards police-imposed discretionary justice, which undermines individual rights and reconfigures the notion of balance in the criminal justice system.

Impacto da tecnologia da informação sobre o processo de trabalho individual : estudo em um grande banco brasileiro

As tecnologias que criaram as ferrovias, a concentração de mercados urbanos, o surgimento da produção em massa, a eletrificação e a introdução do motor de combustão interna compuseram uma longa cadeia de forças responsáveis pelo impacto na reestruturação dos negócios, na economia política como um todo e, naturalmente, na relação do homem com o seu trabalho. A tecnologia da informação (TI) pode ser considerada a mais recente e influente das tecnologias inseridas na sociedade, trazendo consigo uma série de impactos bem como a necessidade de pesquisas para o melhor entendimento desse novo fenômeno. O presente estudo teve como objetivo avaliar a percepção de bancários em relação ao impacto da TI sobre seu trabalho. Para tanto, foi adaptado e validado para o contexto brasileiro um instrumento de pesquisa criado por Torkzadeh e Doll capaz de medir a percepção do usuário em relação ao impacto da TI sobre seu trabalho individual e, para ampliar os estudos sobre o impacto da TI, foi elaborada e validado um instrumento de avaliação do impacto da TI sobre o processo decisório individual. A pesquisa classifica-se como um estudo exploratório descritivo, utilizando o método estatístico no que se refere à obtenção, ao processamento e à validação dos dados. A coleta de dados obedeceu à concepção dos estudos transversais, ao passo que a estratégia para a obtenção dos mesmos baseou-se na realização de 411 entrevistas com funcionários do banco que se encontravam trabalhando, durante o período da pesquisa (dezembro de 2002), na rede de agências ou na sede administrativa de dez capitais brasileiras, selecionadas para esta survey. A presente pesquisa obteve como resultado do instrumento adaptado de Torkzadeh e Doll (1999) uma significante diferença estatística entre as médias das variáveis de análise e confirmou a percepção de que a TI causa impacto em primeiro lugar na produtividade; em segundo, na satisfação dos clientes; em terceiro, no controle gerencial; e, por último, na inovação. O instrumento sobre processo decisório demonstrou uma diferente e maior percepção de impacto da TI sobre a fase denominada concepção e uma semelhante e menor percepção de impacto sobre as demais fases do processo (implementação, inteligência e escolha).

Fundamentação técnica e atuarial dos seguros de vida : um estudo comparativo entre o seguro de vida individual e o seguro de vida em grupo no Brasil

A indústria de seguros é uma atividade econômica relativamente jovem, possuindo raízes na revolução industrial. O desenvolvimento dessa indústria ocorreu de forma bastante intensa durante o século passado, quando a atividade passou a ser inserida na área de gestão de riscos. As Companhias de Seguros que trabalham nesse ambiente de negócio fundamentam todo o processo de precificação dos seus produtos em rígidas bases técnicas e atuariais. O presente trabalho dedica-se ao estudo dessas questões, abordando especificamente os seguros de vida, com ênfase à cobertura de morte. A pesquisa tem por objetivo comparar duas modalidades distintas de seguros que são ofertadas ao mercado: o seguro de vida individual e o seguro de vida em grupo. Embora ofereçam aos consumidores coberturas bastante similares, ambas as modalidades devem obedecer a requisitos e princípios técnicos diferenciados por parte das instituições que fazem a sua gestão.

Uma resenha sobre a escolha individual sob incerteza Knightiana

None

Cultura da vizinhança: identidade individual e vida urbana

Em sua tese de doutoramento, a autora descreve uma pesquisa realizada em uma pequena cidade da Franca, onde constatou-se a oposição entre o discurso do planejador preocupado em introduzir uma nova lógica às práticas cotidianas dos moradores de uma vila operária, e o discurso dos aposentados que ali moravam e cuja vivência dos espaços da vizinhança, a havia sido impregnado de sua própria história de vida. Foi a partir desta experiência que a autora passou a argumentar que sem uma fina e aprofundada observação das práticas cotidianas, nenhuma intervenção no espaço urbano deveria ser realizada. Partindo do princípio que a urbanização e crescimento das cidades segue cada vez mais a lógica do planejamento impondo ao seu habitante uma passagem do espaço privado para o público que e quase sempre abrupta e hostil pois trata a circulação como um fluxo inibindo o desenvolvimento de "espaços de transição", e modificando a concepção de sociabilidade nos espaços nos espaços de vizinhança. Esta pesquisa tem por objetivo procurar algumas "localidades" situadas em uma grande metrópole como São Paulo onde a observação da transição entre a vida privada e pública possa ser estudada. Para a autora o estudo das regras e normas da vida social nesses espaços que ora são chamados de intermediários, ora de transição deverão servir para compor o que ela chama de cultura de vizinhança, e que varia muito entre localidades de uma mesma cidade.