IQ and Audit Quality: Do Smarter Auditors Deliver Better Audits?

This study examines the role of an individual auditor's cognitive ability in delivering high‐quality audits. Our results from analyzing archival data from Sweden show that audit partners' IQ scores obtained from psychological tests are positively associated with going‐concern audit reporting accuracy and audit fee premiums. We also find some, albeit weak, evidence that audit partners' IQ scores are negatively associated with the income‐increasing abnormal accruals of the client. These results suggest that, although audit services are standardized through various control mechanisms and audits are conducted by teams rather than by individual auditors, the cognitive ability of audit partners responsible for an audit remains important in delivering high‐quality audit services.     

Innovation and performance in the hotel industry

The growing competition in the hotel industry is one of the main challenges of this segment, which increasingly depends on the ability to innovate. Thus, this article aims to analyze the impact of innovation on the performance of employees and hotel organizations. This is an exploratory study, with a quantitative approach using a structured computer-administered questionnaire to 73 managers of hotel chains, located in Brazil, which correspond to 792 hotels. Data analysis used multiple linear regression method with SPSS software to find out the relationship between the factors of innovation (communication, processes, leadership, and strategy) and the performance of employees and hotel organizations. Results show that the factors of communication, leadership, and strategy directly influence the performance of the employees. However, only the leadership factor directly affects the performance of hotel organizations.     

Motivations and differences upon reconciling professional and personal life: an empirical study of businesswomen and businessmen in the Valencian Community

According to the last report “Women FTSE 2009” developed by Cranfield School of Management and the IE Business School and sponsored by Pricewaterhouse-Coopers, Sainsbury, Enlivens, HSBC and Pearson, the number of European companies with women in positions of executive direction has been reduced from 16 to 15 and the number of women in the board meetings from 39 to 37 has fallen. Moreover, there has been a decrease in the number of total of businesses with women in their counsels, since 1 of each 4 businesses has an exclusively male counsel. The study, reveals a pessimistic panorama for women from the analysis of the number of guidelines that work in the companies that belong to FTSE 100, the British index that includes the 100 main values of the London stock market. The study also reflects a descent in the number of women that occupy key positions in the businesses of the FTSE 100. In the year 2008 there were only 5 women CEOs and 3 regional executive directors. In the 2009 only there were 4 CEOs. The purpose of this article is to see if the origin of this situation is a direct consequence of businesswomen confronting more difficulties than the businessmen upon putting in common its professional and personal life or if by contrast this corresponds to an stereotyped perception of gender inequality. With this end we conducted a study using a sample of businesswomen and men with experience analyzing its motivations to create business, difficulties that they find, and the solutions to improve the conciliation of its professional and personal lives. The results show that there are no significant gender differences in the motivations, regardless of who the head of the family is (bearing main responsibility for the house and children). On the other hand, we show that businesswomen diverge from businessmen in the perception of motivations and challenges they have. Indeed, businessmen agree with businesswomen in the motivations and difficulties that these have, and consider that they give to them more importance than women themselves.     

The impact of e-business infusion on channel coordination, conflict and reseller performance

Manufacturer-reseller interactions are becoming more technology-enabled as channels of distribution increasingly utilize e-business tools on the Internet. This research examines the performance consequences for resellers as these technological advances are applied to distribution activities between channel members. Using a sample of 216 resellers of computer products, the research explores the impact of e-business tools in 2 areas of manufacturer-reseller interactions: supply tasks and demand tasks. The results suggest that e-business in supply tasks increases relationship coordination between manufacturer and reseller, whereas e-business in demand tasks increases coordination as well as conflict within the channel dyad. The increase of conflict constitutes a potential “dark side” of e-business in channel relationships that may provide an explanation for e-business implementation failures and negative returns on investment in technology.     

Detecting nonlinearity in time series by model selection criteria

This article analyzes the use of model selection criteria for detecting nonlinearity in the residuals of a linear model. Model selection criteria are applied for finding the order of the best autoregressive model fitted to the squared residuals of the linear model. If the order selected is not zero, this is considered as an indication of nonlinear behavior. The BIC and AIC criteria are compared to some popular nonlinearity tests in three Monte Carlo experiments. We conclude that the BIC model selection criterion seems to offer a promising tool for detecting nonlinearity in time series. An example is shown to illustrate the performance of the tests considered and the relationship between nonlinearity and structural changes in time series.     

Regional integration: an empirical assessment of Russia

Using a statistical model of commodity trade, we quantify the evolution of regional economic integration within Russia during 1995–1999, and explore potential determinants of this evolution. Our integration measure exhibits rich regional variation that, when aggregated to the national level, fluctuates substantially over time. In accounting for this behavior, we draw in part on theoretical models that emphasize the potential role of openness to international trade and regional disparities in income in threatening economic integration. Controlling for a host of additional regional- and national-level variables, we find a strong negative correspondence between openness to international trade and internal economic integration.     

The economics of markets and platforms

Advances in the study of both markets and platforms contribute to economics. Platforms are typically digital markets, although platforms can designate markets generally. So, the economics of markets and the economics of platforms are one and the same. Platforms show the critical role of intermediaries in endogenous price adjustment and market clearing. The platform model remedies problems with general equilibrium analysis by combining and extending the basic Walrasian and Marshalian market models. The analysis of platforms provides explanations for the bid–ask spread, including market power, search costs, matching costs, adverse selection, and moral hazard. The study of platforms demonstrates the importance of participation and coordination in the formation of markets. The discussion emphasizes that platforms have significant implications for the theory of the firm. The analysis further considers how platforms affect innovation and entrepreneurship.     

The people behind the scenes: Episodic volunteering at fundraising events

Nonprofit organizations (NPOs) have become increasingly dependent on episodic volunteers (EVs), those that would help carry out an event with little training and expectation to commit to future events. Despite its importance to the survival of NPOs, the use of EVs with respect to fundraising has received little research focus. Furthermore, none of the existing studies identified examined how fundraising EVs differ from other EVs. This study seeks to contribute to our understanding of fundraising EVs using a global perspective. Data were generated using surveys distributed in seven countries, tallying more than 4,000 respondents. Variables included demographic characteristics, previous donation and volunteer history, motives, mode of volunteering, and overall experience. The data were analyzed by applying between-group (logistic regression on participation) and within-group analysis (ordered logistic regression on willingness to participate in the future). Data were further analyzed by examining differences by country. We found that country, gender, religion, income, employment, history of donations, mode of volunteering, and several motives, both intrinsic and extrinsic, were significant in the logistic regression analysis of participation in fundraising episodic volunteering. The ordered logistic analysis unexpectedly found that the only predictors to foster a willingness to engage again were the responsiveness of the event team and a desire to fulfill spiritual satisfaction. In recruiting and selecting EVs for fundraising events, NPOs should consider previous or current donors and those with regular volunteering experience and they should market volunteer opportunities towards those in search of spiritual fulfillment and meaning. Moreover, NPOs should prioritize quick and clear communication with fundraising EVs in order to foster a willingness to volunteer again. Lastly, NPOs should regularly assess for country-specific factors and contexts that may affect episodic volunteering in fundraising events. Our paper illustrates who fundraising EVs are, their motives, how they choose to volunteer, and what contributes to their willingness to volunteer again. Given the limited research on fundraising EVs, this study serves to help lay the foundation of research for this unique subgroup. Our aim was to not only address the dearth of literature but serve as a springboard for future research on fundraising EVs.     

The impact of job embeddedness on innovation‐related behaviors

It has often been argued that low turnover leads to less innovation in organizations, not only because fewer job vacancies are available for outsiders with new ideas, but also because longer‐tenured employees might be more resistant to change. In this study, we propose that job embeddedness may actually strengthen employees' motivation to generate, spread, and implement innovative ideas in organizations. In a longitudinal study with a diverse sample, we found that job embeddedness was positively and significantly related to innovation‐related behaviors, even after controlling for demographic variables, the job attitudes, and the job perceptions that are frequently associated with job embeddedness. In addition, we found some support for the proposed moderating effects of career stage; that is, the relationship between job embeddedness and implementing innovative ideas was stronger for individuals in the mid‐ and late stages of their careers than for those in the early stage of their careers. This article concludes with directions for developing future theory. © 2010 Wiley Periodicals, Inc.