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Effect Of Corporate Governance On The Association Between Book-Tax Differences And Audit Quality: Evidence From Korea
Get PDFWe investigate whether auditors input additional audit hours according to the sizes of book-tax differences (hereinafter BTD) and request additional audit fees for additional audit hours. In addition, the interaction effects of corporate governance on the relationships between BTD and audit hours/audit fees are examined using the total corporate governance (TCG) scores, data from the Korea Corporate Governance Service (KCGS). We predict that since auditors have the incentive and ability to consider BTD, audit hours and audit fees will increase when BTD are larger. Empirical results of our study are as follows. First, BTD and audit hours (LnAH) show a negative (-) association that is not statistically significant. Second, audit fees (LnAF) were shown to increase along with BTD. This can be interpreted as a result of requests for additional audit fees for increased audit risks due to individual firms' BTD. Third, the interaction effect of corporate governance on the relationship between BTD and audit hours (LnAH) showed a positive (+) association, but the association was not statistically significant. Fourth, the interaction effect of corporate governance on the relationship between BTD and audit fees (LnAF) showed a statistically significant positive (+) association. This be understood as meaning that firms with better governance make more efforts for financial reporting in order to maintain their reliability in the market. This study contributes to the literature in several important aspects. First, it empirically demonstrates whether auditors properly reflect BTD on audit risks. Next, our study is analyzes the effects of corporate governance on the relationship between BTD and audit hours/audit fees using the total corporate governance (TCG) scores presented by the Korea Corporate Governance Service (KCGS). Finally, our findings empirically showed social proof function of accounting audits as a strategy to reduce information risks.
The Contribution Of Organisational Climate To Employee Well-Being
Get PDFThere is ample space for further human resource based research in the service industry sector in South Africa. For that reason, this study developed and tested a conceptual framework that linked employee well-being to four organisational climate factors; namely, manager-employee relationships, working conditions, remuneration and work allocation. An adapted six section structured questionnaire was administered to a conveniently recruited sample composed of 164 employees drawn from seven service industry enterprises located in Southern Gauteng, South Africa. Hypotheses were tested using regression analysis. All four organisational climate dimensions were statistically significant, implying that they predict employee well-being in the service industry. The results of this study may be used by managers in similar environments as either diagnostic tools or as a reference benchmark for strategic interventions in solving employee well-being related problems.
Key Success Factors Of Tourist Satisfaction In Tourism Services Provider
Get PDFThe research was to investigate actual factors affecting tourist satisfaction to the tourist services provider industry. The conceptual framework was developed from the literature review and survey in the area, and other contemporaneous research in tourism marketing. Accordingly, the researchers consider the importance of the factors of trust, personnel relationship, services quality, facility quality, and tourist satisfaction.In this the researchers employed the quantitative research approaches. The instruments of research were steps of a questionnaire. Data were collected from 395 foreign people who come as tourists to Thailand. The data collected were analyzed using the path modeling and on the basis of observing the actual tourist satisfaction of the organizations studied through all operational links in the supply chain.Findings are as follows: Applications of trust, personnel relationship, services quality and facility quality were explanatory of the variance in tourist satisfaction at 44.6 percent (R2 = 0.446). Each factor involves significant aspects with the total being 25. All aspects should be addressed if problems are to be successfully solved over the long haul.
CEO Career Concerns And Voluntary Disclosure
Get PDFThis paper investigates the relation between Chief Executive Officers (CEO) career concerns and voluntary disclosures using listed firm (KOSPI) data in Korea. Prior research suggests that explicit incentives in the form of CEO stock-based compensation or CEO’s equity ownership mitigate the agency problems of reluctance to make voluntary disclosure. In addition, implicit incentives arising from CEO career concerns are as important as explicit incentives for mitigating agency problems.The labor market assesses CEOs ability and CEO reputation in the market is a valuable asset that is associated with many long-term benefits, such as better future compensation, reappointment in the position, and greater managerial autonomy. CEOs are concerned about such an assessment and these concerns are referred to as career concerns. However, the market has incomplete information about CEOs’ ability especially when the CEOs have short tenures as a CEO position. Hence, CEOs with short tenures have more strong incentives to signal their ability to the labor market so that they can build proper reputation.Implicit incentives arising from CEO career concerns are measured by CEO tenure. I assume that short-tenured CEOs are more career-concerned than long-tenured CEOs. I find that CEOs with short tenures tend to more likely disclose management forecasts. I interpret this result that more career-concerned CEOs have strong incentives to signal their ability to the labor market in order to build their reputations which affect their future payoffs such as compensations and reappointment. In addition, management forecasts, means of voluntary disclosure, are used as effective mechanism. I also find that CEOs with short tenures tend to disclose more accurate management forecasts. This result implies that CEOs with more career concerns have more pressure to provide accurate forecasts because of their reliability in the labor market. Based on these empirical results, I infer that CEOs’ implicit incentives affect their voluntary disclosure decision.This study will contribute to academics and disclosure-related practitioners by documenting about CEOs’ career concerns and their voluntary disclosure decisions
Economic Consequences Of IFRS Adoption In Korea: A Literature Review
Get PDFWe provide a comprehensive review of academic research on the economic consequences of International Financial Reporting Standards (IFRS) adoption in Korea. We review 18 empirical studies on the economic consequences of IFRS adoption in Korea and classify them into six areas: (a) earnings quality, (b) comparability of financial statements, (c) value relevance, (d) analysts’ behavior, (e) information asymmetry, and (f) cost of capital and firm value. Our review suggests that IFRS adoption in Korea has generally afforded positive economic consequences. The limitations of the existing studies are discussed and various directions for future research are suggested
Spatial Structure Behind The Ripple Effect: The Case Of Hong Kong
Get PDFThis paper aims to study the spatial structure of Hong Kong residential market using census data with the urban model, and examine more critically the ripple effect found by Lam (2015). Empirically, those irregularities observed can be explained rather satisfactorily following the lines of reasoning by Brueckner (2011). As for the aforesaid ripples, we demonstrate that the drift pattern no longer exists after introducing a structural breakpoint in End-2008. Instead, we contend that irrespective of house sizes, all price changes tend to originate from the New Territories. And we propose two theoretical explanations for it: internal migration and spatial coefficient heterogeneity.
Study On The Relationship Between Ownership Structure And Corporate Performance: Evidence From Chinese Companies Listed On The GEM Board
Get PDFThe study on which this article reports, analyzed the current situation of ownership structure and corporate performance based on the panel data of 153 companies listed on the Growth Enterprises Market (GEM) board from 2010 to 2012 and explored the mechanism of companies’ ownership structure to corporate performance with multiple regressions. The results show that tradable shares, state-owned shares and managerial shares have a negative correlation with corporate performance, and that there is a significant quadratic non-linear relationship between tradable shares and corporate performance while legal-person shares are not significantly related to corporate performance. We also found that the shareholding ratio of the top ten largest shareholders has a significantly positive correlation with corporate performance but we failed to find any significance for the largest shareholder and the Z index
The Value Relevance Of Straight-Lining Lease Expenses
Get PDFThe International Accounting Standards Board envisions the global acceptance of International Financial Reporting Standards (IFRS). Despite attempting convergence with IFRS, some national accounting standard setters, such as in India allow for certain carve-outs in their own accounting standards so as to meet country-specific requirements for fair presentation. Indian Accounting Standards allow for operating leases with fixed inflationary linked escalations to be accounted for on an as-incurred basis in contrast to the existing requirement in IFRS to straight-line such leases. This study explores whether operating lease expenses with fixed inflationary linked escalations and accounted for on a straight-line basis provide incremental value relevance beyond the as-incurred basis.This study exploits an occurrence in South Africa, where listed companies that previously accounted for operating leases with fixed inflationary-linked escalation clauses on an as-incurred basis, were required to straight-line those leases. Using the Ohlson (1995) valuation model this empirical study investigates the incremental value relevance of the straight-line basis over the as-incurred basis.Results show a significant change in the association between property-related operating lease expenses and market value indicators after the effect of straight-lining is introduced. This suggests that the straight-line basis provide investors with more value relevant information than when accounting for the expense as-incurred.Findings from this study prompt national accounting setters that allow for operating leases with fixed inflationary linked escalations to be accounted for on an as-incurred basis to consider first whether the straight-line basis do not provide more relevant information. Limiting the choice of accounting treatment may enhance comparability of financial statements.
Corporate Social Responsibility Intervention Of One Mining Operator: A Community Development Case In Bojanala District, South Africa
Get PDFThe South African economy constantly experiences work stoppages, is gradually losing its pride and currently experiences decisive anomalous moments underpinning new operational perceptions. Mining organisations seem to be blamed for not doing enough social capital development initiatives, particularly in underdeveloped communities. This study examines in depth the role of a mining company’s involvement in an identifiable community in South Africa’s Bojanala District. Specifically, the study evaluates the steps followed in identifying needs and the usefulness of a mining-project designed to enhance capacity-building opportunities for young South Africans; a sustainable development initiative. Qualitative action research was used in this study to ensure a participatory approach of the data gathering processes to personal and professional transformation. Action research phases were followed in the manner of Maree (2014). The findings suggest that expectations for community development projects are greater in rural and peri-uburban South African communities. It was found that participants had a general inability to read, write, speak, listen and apply the mathematical proficiency that is needed in order to function effectively in an employment environment. The youth unemployment rate in the Bojanala District can be attributed to the gap between their level of education and the employment requirements. The miners are deemed to have a responsibility towards their communities and it is the youth of these same communities that look towards the mines for employment. Mining companies can contribute to education, skills development and training of the youth. If community engagement is taken seriously as a CSR strategic approach, this would enhance positive inter-relations between the mining companies and their communities
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No full textThis manuscrpt was retracted on August 19, 2014. Please contact our office at [email protected] for more information