144 research outputs found
Biblical Scriptures impact on six ethical models influencing accounting practices.
No full textThe recent frauds in organizations have been a point for reflection among researchers and practitioners regarding the lack of morality in certain decision-making. We argue for a modification of decision-making models that has been accepted in organizations with stronger links with ethics and morality. With this aim we propose a return to the base value of Christianity, supported by Bible scriptures, underlying six dominant ethical approaches that drive practices in organizations.Bible; Decision-making; Ethics;
The effects of top management team strategic cognition on corporate financial health and value: an interactive multi-dimensional approach
No full textThe upper echelons theory posits that the values, personalities, experience and education background of the top management team (TMT) affect both executives’ strategic cognition and corporate outcomes. Since TMT members differ in their cognitive structures, as also acknowledged by the presence of managerial biases and irrationalities in the behavioural finance theories, policy makers and scholars are saddled with the problem of identifying specific cognitive elements that can secure optimum organisational outcomes. Conceptual approaches or linear relationships between TMT strategic cognition (TMT-SC) and outcomes are unable to capture the complex interdependencies among TMT-SC, TMT attributes and performance. We propose and empirically test a dynamic multi-dimensional TMT-SC model. Using handpicked UK company panel data, we provide robust empirical evidence that extends our understanding of the theory. Our PLS-SEM analyses show that heterogeneity in TMT academic and professional qualifications, and work experience alone cannot provide optimal benefits to organisations. However, when they are combined with other TMT cognitive factors such as social networking, innovativeness and risk-taking levels, these aspects appear to improve firm value and financial health
Tax evasion by Small and Micro Sized Enterprises (SMEs) in Uzbekistan
No full textThe importance of understanding tax compliance and non-compliance behaviour is important to any governments and tax authorities (HMRC, 2009). Insight into the decision-making behaviour of taxpayers is essential to researchers in assisting governments as they struggle to meet new challenges of economy while trying to balance budget deficits and infrastructure demands. This study examines the influence of tax evasion factors on Small and Micro-sized Enterprises (SME) owners’ tax evasion decision making behaviour in Uzbekistan. This study examined some selected salient factors of SME owners’ tax evasion behaviour by using Ethical Process Thinking Model in an attempt to offer both researchers and policy makers a more defined understanding.The study begins by identifying key tax compliance and non-compliance factors listed in literature and organising them into a theoretically based model. Jackson and Milliron (1986) and Richardson and Sawyer (2001) categorise fourteen salient factors of tax compliance and non-compliance into four groups namely, noncompliance opportunities, attitudes and perceptions, tax system structure and demographics. Six key factors out of fourteen are then integrated into an Ethical Process Thinking Model allowing the researcher to examine two pathways of this model. The Ethical Process Thinking Model (Rodgers, 2009) depicts various stages and pathways that can influence a taxpayers’ compliance/noncompliance decision process. The Ethical Process Thinking Model asserts that four major processing stages of perception, available information, judgement and decision choice with their total effects will provide meaningful relationships of the causes of decisions (Rodgers & Cago, 2001; Rodgers, 2009; Rodgers et al., 2014). This new approach to the tax evasion decision making process may provide a more complete picture of tax evasion behaviour of SME owners.In order to understand the tax compliance behaviour of SME owners in this study, a mixed-method approach, combining surveys and semi-structured interviews, was used. Quantitative data was analysed by SmartPLS software version 3.0 using Structural Equation Modelling (SEM) technique. Transcribing, coding and finding relevant themes were used to analyse the qualitative data.The findings of this study show that taxpayers’ perceptual and informational factors had stronger influence on SME owners’ tax evasion decision behaviour. Amongst perceptual factors, personal financial difficulty and perception of corruption were the most influential factors to the tax evasion behaviour of SME owners. Complexity of tax laws and compliance costs from informational factors were the highest influential factors on SME owners’ tax evasion decision behaviour. The results from the interviews indicate that financial motivation was not a significant factor in SME owners’ tax evasion decision behaviour. Moreover, the findings suggest that there is positive relationship between tax audits and SME owners’ tax evasion decision behaviour. The interview findings further clarified that SME owners view tax audits as extra compliance costs not as audit checks.The findings contribute to the theoretical and practical aspects of understanding the tax evasion behaviour of SME owners in Uzbekistan. The findings from this study may be useful for tax authorities and regulators to combat tax evasion
Tax evasion by Small and Micro Sized Enterprises (SMEs) in Uzbekistan
No full textThe importance of understanding tax compliance and non-compliance behaviour is important to any governments and tax authorities (HMRC, 2009). Insight into the decision-making behaviour of taxpayers is essential to researchers in assisting governments as they struggle to meet new challenges of economy while trying to balance budget deficits and infrastructure demands. This study examines the influence of tax evasion factors on Small and Micro-sized Enterprises (SME) owners’ tax evasion decision making behaviour in Uzbekistan. This study examined some selected salient factors of SME owners’ tax evasion behaviour by using Ethical Process Thinking Model in an attempt to offer both researchers and policy makers a more defined understanding.The study begins by identifying key tax compliance and non-compliance factors listed in literature and organising them into a theoretically based model. Jackson and Milliron (1986) and Richardson and Sawyer (2001) categorise fourteen salient factors of tax compliance and non-compliance into four groups namely, noncompliance opportunities, attitudes and perceptions, tax system structure and demographics. Six key factors out of fourteen are then integrated into an Ethical Process Thinking Model allowing the researcher to examine two pathways of this model. The Ethical Process Thinking Model (Rodgers, 2009) depicts various stages and pathways that can influence a taxpayers’ compliance/noncompliance decision process. The Ethical Process Thinking Model asserts that four major processing stages of perception, available information, judgement and decision choice with their total effects will provide meaningful relationships of the causes of decisions (Rodgers & Cago, 2001; Rodgers, 2009; Rodgers et al., 2014). This new approach to the tax evasion decision making process may provide a more complete picture of tax evasion behaviour of SME owners.In order to understand the tax compliance behaviour of SME owners in this study, a mixed-method approach, combining surveys and semi-structured interviews, was used. Quantitative data was analysed by SmartPLS software version 3.0 using Structural Equation Modelling (SEM) technique. Transcribing, coding and finding relevant themes were used to analyse the qualitative data.The findings of this study show that taxpayers’ perceptual and informational factors had stronger influence on SME owners’ tax evasion decision behaviour. Amongst perceptual factors, personal financial difficulty and perception of corruption were the most influential factors to the tax evasion behaviour of SME owners. Complexity of tax laws and compliance costs from informational factors were the highest influential factors on SME owners’ tax evasion decision behaviour. The results from the interviews indicate that financial motivation was not a significant factor in SME owners’ tax evasion decision behaviour. Moreover, the findings suggest that there is positive relationship between tax audits and SME owners’ tax evasion decision behaviour. The interview findings further clarified that SME owners view tax audits as extra compliance costs not as audit checks.The findings contribute to the theoretical and practical aspects of understanding the tax evasion behaviour of SME owners in Uzbekistan. The findings from this study may be useful for tax authorities and regulators to combat tax evasion
Signalling theory embedded in the throughput model to examine the influence of culture upon external auditors' reliance on the internal audit function
No full textInternational Standard on Auditing (ISA) 610 (Revised 2013) allows external auditors (EAs) to rely on the internal audit function (IAF) in obtaining audit evidence if the latter meets certain quality criteria. The revisions made to the standard are intended to introduce a more robust framework for the evaluation of the IAF quality and enable reliance to be placed on internal auditors to provide direct assistance, in addition to the already permitted use of work already performed by the IAF. The literature reports that reliance on the IAF is a determinant of external audit fees and significantly increases the efficiency of the audit. However, this is not the case in all countries; some studies find low reliance on the IAF by EAs in certain developing countries has no significant impact on audit efficiency. Accordingly, the main purpose of the current study is to examine the potential influence of the cultural dimensions of EAs on their reliance-related judgements and decisions in the light of the latest revisions made on ISA 610 and a related revised standard: ISA 315. Further, this study attempts to enhance our understanding of the manner in which such reliance may reduce audit fees.To achieve the above, two conceptual models are developed on the basis of Signalling Theory (Spence, 1973) and the Throughput Model (Rodgers, 2006). These models incorporate the latest revisions made to the related ISAs in the process of tracing the influence of three dimensions of Hofstede’s measure of culture (i.e. power distance, uncertainty avoidance, and individualism) on the EAs reliance process, and visualise how reliance on the IAF has an impact on audit fees. A quantitative methodology is employed to examine the paths of the study’s models. Data are collected using a self-administered questionnaire which was directed to a sample of EAs in Jordan. Data are then analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) techniques.The results of the study show that culture dimensions can significantly influence EAs’ judgements and decisions regarding their reliance on the IAF. In particular, the evaluation judgement and reliance decision relating to the IAF made by Jordanian EAs who are collectivist, uncertainty avoidant, and accept a high power distance are negatively affected. The results also show that revisions made to ISA 315 have a positive impact on EAs’ judgements in respect of the extent to which the IAF meets the reliance requirements. Furthermore, the results reveal that Jordanian EAs’ reliance on the IAF has an indirect impact on audit fees through reducing audit work hours.This study contributes to the existing literature on the interaction between national culture and audit by providing empirical evidence of how the process of making a reliance decision on the IAF in accordance with ISA 610 is influenced by specific cultural hallmarks in Jordan. Moreover, this study adds to the literature on EAs’ reliance on the IAF by introducing models embedding Signalling Theory in the Throughput Model to gain better understanding of how EAs rely on the IAF by tracing the sub-processes of different stages of the reliance decision, as well as clarifying how reliance impacts upon audit fees. Furthermore, this study enriches the literature by providing empirical evidence of the impact of the revised ISA 315 on the process of EAs’ reliance on the IAF. The findings of this study have practical implications that could be of interest to many different parties, such as standards setters, EAs, the IAF and auditees. These parties can influence the IAF contributions to the external audit, thereby enhancing its efficiency
Image and Reputational Impact on Managers' Assessment of Auditing Activities
No full textThe efficient use of knowledge assets allows organizations to compete more effectively in the marketplace. Some of these knowledge assets are embedded in an organization socialization and internalization processes. Image and reputation may better leverage knowledge by strengthening its core capabilities of knowledge assets. Image and reputation is viewed as a collective 'perception' pertaining to a person, group, or organization's attributes. We suggest that by combining the use of reputational data and structural equation modeling of narrative analysis, we can build a better process theory along with better explanations in general. Throughput modeling techniques are used in this research to capitalize on how line managers' narratives are captured in framing their international environment, the information used, as well as deciding whether audits are assisting them in promoting increase profits or decrease expenses. This model is useful in highlighting the elements that support a view of managers being proactive. This analysis captures forward looking throughput modeling techniques whereby in-house managerial procedures can help aid and assist line managers performing their primary functions. Findings indicated that managers' perception of image/reputation influence what they viewed as important knowledge assets relating to productivity and profitability. --
Signalling theory embedded in the throughput model to examine the influence of culture upon external auditors' reliance on the internal audit function
No full textInternational Standard on Auditing (ISA) 610 (Revised 2013) allows external auditors (EAs) to rely on the internal audit function (IAF) in obtaining audit evidence if the latter meets certain quality criteria. The revisions made to the standard are intended to introduce a more robust framework for the evaluation of the IAF quality and enable reliance to be placed on internal auditors to provide direct assistance, in addition to the already permitted use of work already performed by the IAF. The literature reports that reliance on the IAF is a determinant of external audit fees and significantly increases the efficiency of the audit. However, this is not the case in all countries; some studies find low reliance on the IAF by EAs in certain developing countries has no significant impact on audit efficiency. Accordingly, the main purpose of the current study is to examine the potential influence of the cultural dimensions of EAs on their reliance-related judgements and decisions in the light of the latest revisions made on ISA 610 and a related revised standard: ISA 315. Further, this study attempts to enhance our understanding of the manner in which such reliance may reduce audit fees.To achieve the above, two conceptual models are developed on the basis of Signalling Theory (Spence, 1973) and the Throughput Model (Rodgers, 2006). These models incorporate the latest revisions made to the related ISAs in the process of tracing the influence of three dimensions of Hofstede’s measure of culture (i.e. power distance, uncertainty avoidance, and individualism) on the EAs reliance process, and visualise how reliance on the IAF has an impact on audit fees. A quantitative methodology is employed to examine the paths of the study’s models. Data are collected using a self-administered questionnaire which was directed to a sample of EAs in Jordan. Data are then analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) techniques.The results of the study show that culture dimensions can significantly influence EAs’ judgements and decisions regarding their reliance on the IAF. In particular, the evaluation judgement and reliance decision relating to the IAF made by Jordanian EAs who are collectivist, uncertainty avoidant, and accept a high power distance are negatively affected. The results also show that revisions made to ISA 315 have a positive impact on EAs’ judgements in respect of the extent to which the IAF meets the reliance requirements. Furthermore, the results reveal that Jordanian EAs’ reliance on the IAF has an indirect impact on audit fees through reducing audit work hours.This study contributes to the existing literature on the interaction between national culture and audit by providing empirical evidence of how the process of making a reliance decision on the IAF in accordance with ISA 610 is influenced by specific cultural hallmarks in Jordan. Moreover, this study adds to the literature on EAs’ reliance on the IAF by introducing models embedding Signalling Theory in the Throughput Model to gain better understanding of how EAs rely on the IAF by tracing the sub-processes of different stages of the reliance decision, as well as clarifying how reliance impacts upon audit fees. Furthermore, this study enriches the literature by providing empirical evidence of the impact of the revised ISA 315 on the process of EAs’ reliance on the IAF. The findings of this study have practical implications that could be of interest to many different parties, such as standards setters, EAs, the IAF and auditees. These parties can influence the IAF contributions to the external audit, thereby enhancing its efficiency
Online AI algorithmic purchase decision pathways: shopping via mobile application
No full textIn recent years, online shopping has become a popular option for buying goods and services. Accordingly, this study was conducted in order to observe consumers’ decision-making behaviour in an online buying environment via phone applications. The study focused on students, young people with a high potential for learning and using online shopping systems. This study looked at a number of outstanding factors selected for customer decision-making processes using the Throughput model.In order to understand the different decision-making paths of customers in the range of online shopping on mobile applications in this study, the author has applied quantitative methods with convenient sampling combined with online surveys to investigate respondents of the study and introduce the importance of the study to respondents. In addition, quantitative data were analysed by SmartPLS software (version 3.0) which explains the structural equation model (SEM).The findings of the study help to facilitate the development of the proposed model to explain the routes for the online consumers to make a decision when shop in the internet environment. It can be noticed that the flux model is not only good for marketing, management or financial areas, but it is also an effective decision-making model applied in the field of consumer behaviour judgement. Also, the study also proves that different buying decision-making routes for consumers in the online shopping environment are completely real. These findings contribute to the theoretical and practical aspects of finding online customer decision-making pathways depending on different products on mobile applications not only in Danang, Vietnam but also in other areas in the world. The findings from this study could be useful for e-commerce researchers, businesses, and online retailers to understand the consumer decision paths in particular and the customer behaviour in general, thereby guiding solid steps in producing, introducing products and persuading consumers
Online AI algorithmic purchase decision pathways: shopping via mobile application
No full textIn recent years, online shopping has become a popular option for buying goods and services. Accordingly, this study was conducted in order to observe consumers’ decision-making behaviour in an online buying environment via phone applications. The study focused on students, young people with a high potential for learning and using online shopping systems. This study looked at a number of outstanding factors selected for customer decision-making processes using the Throughput model.In order to understand the different decision-making paths of customers in the range of online shopping on mobile applications in this study, the author has applied quantitative methods with convenient sampling combined with online surveys to investigate respondents of the study and introduce the importance of the study to respondents. In addition, quantitative data were analysed by SmartPLS software (version 3.0) which explains the structural equation model (SEM).The findings of the study help to facilitate the development of the proposed model to explain the routes for the online consumers to make a decision when shop in the internet environment. It can be noticed that the flux model is not only good for marketing, management or financial areas, but it is also an effective decision-making model applied in the field of consumer behaviour judgement. Also, the study also proves that different buying decision-making routes for consumers in the online shopping environment are completely real. These findings contribute to the theoretical and practical aspects of finding online customer decision-making pathways depending on different products on mobile applications not only in Danang, Vietnam but also in other areas in the world. The findings from this study could be useful for e-commerce researchers, businesses, and online retailers to understand the consumer decision paths in particular and the customer behaviour in general, thereby guiding solid steps in producing, introducing products and persuading consumers
Corporate governance mechanisms, corporate sustainability concerns and company financial performance : evidence from public listed Indonesian commercial banking companies
No full textThis thesis investigates the relationship between corporate governance mechanisms, corporate sustainability concerns and company financial performance for public listed of Indonesian commercial banking companies throughout the period 2007-2014. Corporate governance mechanisms are defined by the construct of the board of commissioners' (BoCs) role, executive compensation and ownership structure. Meanwhile, corporate sustainability concerns are defined by the corporate social responsibility activities, which are disclosed in the bank's published reports (i.e., annual report or sustainability report). This thesis also employs the combination of two different measures of company financial performance: company financial health and market value, measured by the Altman's Z-Score Revision Model and Tobin's Q, respectively.The thesis employs a decision-making model framework, the Throughput Model, which is developed by Rodgers (1997) to describe the relationship among those constructs by adopting the shareholder and stakeholders perspectives. Data is presented from 252 firm-year observations as an unbalanced data panel of 39 commercial banking companies publicly listed on the Indonesia Stock Exchange throughout 2007-2014. Then, Partial Least Square-Structural Equation Modelling (PLS-SEM) is used to analyse data and provide results about potential influences among those aforementioned constructs.The thesis contains seven chapters, including three chapters of empirical findings, which are presented in chapters four, five and six. For each chapter of empirical findings, the study built and tested the potential influences among the constructs in four different research models: a simultaneous and separate current period analysis, a year time-lagged analysis, a moderation effect analysis and a reverse (changing) direction of framework analysis.The first empirical finding is presented in chapter four. It addresses the issue of whether mandatory internal corporate governance mechanisms, particularly the role of board of commissioners as the board supervision function, could influence corporate sustainability concerns as the construct of corporate responsibility disclosure. Further, this study examines whether there is an extended impact of the relationship of corporate sustainability concern on financial performance, in terms of both financial health and market value performance. This study provides evidence that the board of commissioners could be an important control mechanism to encourage the company to be more concerned with corporate sustainability with respect to economic, environment, and social activities. Further, viewed from the shareholder perspective, the positive influence brought by the board of commissioners on corporate sustainability concerns may dampen the firm's market value. On the other hand, according to the stakeholder perspective, the positive influence of the board of commissioners on corporate sustainability concern will improve company market value performance through its financial health performance. Moreover, this study also reveals that the motive of Indonesian banking companies in engaging in corporate sustainability initiatives tends to be altruistic. Indonesian commercial banking companies conduct corporate social responsibility activities only for their own sake, which influences the reduction of the company’s financial performance, both financial health and market value performance.The second empirical finding is provided in chapter five. It explores the potential influence of executive compensation on corporate sustainability concerns and company financial performance. Interestingly, by investigating the pay-for-performance relationship, this study finds that executive compensation has a direct significant positive impact on corporate sustainability concerns and both company financial health and market value performance. Meanwhile, by adopting a shareholder perspective, this study reveals that higher executive compensation can encourage managers to adopt more corporate sustainability concerns for the shareholders' and/or managers' benefits; however, this will reduce the firm's value. However, a counter-balance mechanism occurs when employs the stakeholders' perspective is employed. High executive compensation motivates managers to implement more corporate sustainability concerns to serve all stakeholders’ interests, which may to increase the firm's market value through company financial health.The third empirical finding is described in chapter six. It investigates whether the BoCs' role simultaneously with executive compensation could shape the motivation of the top management or executives to achieve company goals of higher company financial performance in a concentrated ownership dominant context. This study discovers that both the BoCs' role and ownership structure have a direct significant positive influence on executive compensation. This study reveals that the BoCs' role and ownership structure in two-tiered corporate governance systems promote higher payment of executive compensation and better company financial performance. Thus, there is a substitution and complementarity effect among the constructs and indicators of corporate governance mechanisms in determining company financial performance. This study also finds that concentrated ownership strengthens the positive relationship between the role of board of commissioners and executive compensation in order to increase company financial health and market value performance
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