Busy Auditors,Ethical Behavior,and Discretionary Accruals Quality in Malaysia

The required professional and ethical pronouncements of accountants mean that auditors need to be competent and exercise due care and skill in the performance of their audits. In this study, we examine what happens when auditors take on more clients than they should, thus raising doubts about their ability to maintain competence and audit quality. Using 2803 observations of Malaysian companies from 2010 to 2013, we find that auditors with multiple clients are associated with lower earnings quality, proxied by total accruals and discretionary accruals. Our results demonstrate that associating client firms’ reported discretionary accruals with individual auditors, rather than their firms or offices, is important in determining audit quality. Moreover, we demonstrate that the disclosure of auditors’ signatures on their reports is useful for assessing auditor quality at the individual level, thus contributing to the debate on the usefulness of having auditor identities on reports.     

Risk assessment in the international food safety policy arena. Can the multilateral institutions encourage unbiased outcomes?

Two institutions provide multilateral venues for countries to discuss food safety measures at the international level: the Codex Alimentarius Commission (Codex) and the World Trade Organization. Both institutions encourage their Members to base food safety standards on scientific evidence.     

关于申报职工个人工资收入合理扣除的探讨

随着我国社会保险制度以及其他方面改革的不断深化,企业职工工资中逐渐增加了不少强制性的代扣代缴项目,由此也产生了一个问题,即企业在为确定职工个人缴费工资基数而申报职工个人工资收入时,是否应将这些代扣代缴项目予以扣除,到目前为止还没有明确的政策依据。为此,本文从企业的社会保险管理工作方面,对这一问题进行了理论与实务的探讨,以期有关部门对此能有明确的政策规定。     

The Influence of Digital Design and IT on Modular Product Architecture

The architecture of a product is the design and specification of inherent subsystems, components, and interfaces between subsystems. Well‐defined interfaces allow the development of standardized subsystems that may be shared across product lines, e.g., technology platforms. Past research shows the benefits of modular product architecture in terms of improving cost of goods through common components and materials as well as improving development time cycles for derivative products. Product architecture does not occur by accident; it must be engineered and implemented. This study explores the impact of digital design and information technology (IT) on the development of modular product architectures. Through an empirical study of 122 firms and follow‐up interviews with several respondents, we study the impact of digital design tools and IT infrastructure on the development of modular product architecture and overall project outcomes. The results indicate that a firm's IT infrastructure has a strong, significant relationship with the development of modular product architecture. The findings also show a strong, positive relationship between the development of modular product architecture and project outcomes. However, in contrast to the common perception that digital design tools enhance R&D productivity and effectiveness, we do not find a significant relationship between digital design tool usage and modular product architecture or overall project outcomes. The findings suggest that digital design tools and their organizational implementation need improvement in up‐front new product development phases.     

Adjustment to variations in prices of imported inputs : The role of economic structure

Zusammenfassung Anpassung an ?nderungen der Preise von importierten Inputs: Die Bedeutung der wirtschaftlichen Struktur. — Eine der erstaunlichsten Erscheinungen der Weltwirtschaft in den 70er Jahren war der noch nie dagewesene und zum gro\en Teil unerwartete Anstieg der Preise für Rohstoffe und Zwischenprodukte. Dieser Aufsatz befa\t sich mit der Frage, wie Preis?nderungen von importierten Inputs in eine offene Volkswirtschaft übertragen werden und — was wichtiger ist — wie strukturelle Merkmale den übertragungsproze beeinflussen. Es wird ein importierter Input in das Modell einer offenen Volkswirtschaft mit entwickelten Finanzm?rkten, einem flexiblen Wechselkurs und Marktmacht auf der Exportseite eingebaut. Das Modell zeigt, da\ Unterschiede in den strukturellen Parametern — z. B. im Grad der Marktmacht oder im Ausma\ der Offenheit der heimischen Güterund Finanzm?rkte — die übertragung von ausl?ndischen Preisst?rungen auf das Inland stark ver?ndern; sie k?nnen die Reaktion der inl?ndischen Preise, Einkommen und Zinss?tze sowie des Wechselkurses abschw?chen oder auch verst?rken.

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Résumé L’ajustement aux variations en prix des inputs importés: Le r?le de la structure économique. — Un des événements éminents de l’économie internationale dans les années soixante-dix était l’accroissement extraordinaire et largement inattendu du prix de la plupart des matières premières et des biens intermediaires. Cet article analyse comment les variations en prix des inputs importés sont transmises à une économie ouverte et, plus important, comment des caractéristiques structurelles affectuent le processus de transmission. On a introduit l’input importé dans un modèle d’une économie ouverte avec des marchés financiers développés, un taux de change flexible et quelque pouvoir du marché en ce qui concerne les exportations. Le modèle révèle que les différences en paramètres structurels — par exemple le degré de pouvoir du marché ou la mesure de l’ouverture des marchés des biens et financiers — significativement changent la transmission des perturbances en prix étranger à l’économie locale; elles peuvent modérer ou exacerber la réponse des prix locaux, du revenu, du taux d’intérêt et du taux de change.

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Resumen Ajustes a las variaciones en los precios de insumos importados. El rol de la estructura económica. — Una de las caracteristicas más notables de la economía internacional en los a?os 70 fue el aumento sin precedentes y en gran parte no esperado en los precios de la mayoría de las materias primas y bienes intermedios. Este articulo se ocupa de cómo las variaciones en los precios de insumos importados son transmitidos a la economía abierta y, más importante, cómo las características estructurales afectan al proceso de transmisión. Un insumo importado es introducido en un modelo de una economía abierta con mercados financieros desarrollados, un tipo de cambio flexible y cierto grado de poder de mercado en el lado de las exportaciones. El modelo revela que diferencias en parámetres estructurales, tales como el grado del poder del mercado o medida de ?apertura por el lado de la demanda? o ?apertura financiera?, altera significativamente la transmisión de perturbaciones de precios externos hacia la economia doméstica; ellos pueden moderar o agravar la respuesta de precios domésticos, ingreso, la tasa de interés y el tipo de cambio.

     

On interest rates in Belgium and the Netherlands: A comparative analysis of interest rate developments and financial innovations, 1980–1984

Summary Using the method op principal components, this paper examines the question of to what extent independent variations exist among observed market interest rates in Belgium and the Netherlands, and presents a speculative reflection on the main findings. The data employed are monthly observations on interest rates on the capital and the money market as well as on the Euro-money market. The sample period is 1980–1984. The analysis shows that the first principal component, which accounts for at least 80% of total variation, can be identified as the true rate of interest. The second principal component is interpreted as maturity in Belgium and risk in the Netherlands while the third principal component in Belgium reflects risk and international dependence but in the Netherlands the premium for inflation. Another conclusion is that the usual distinction between the money market and the capital market does not show up in the Dutch data but does in the Belgian.     

Dual Exchange Rates in Europe and Latin America

This article uncovers some important empirical regularitiessurrounding the operation of formal dual exchange rates in Europeand Latin America in the 1970s and 1980s. Although there areparallels between the European and Latin American experiences,there are also interesting differences in terms of the sizeand nature of the distortion created by two official exchangerates; the response of the distortion to foreign interest rates,real commercial exchange rates, and domestic budget deficits;and the motives for adopting this exchange rate regime. Empiricalwork on dual exchange rate regimes is made difficult by thetransitory nature of these regimes and by frequent changes ininstitutional practices.