Financial Statement Frauds and Auditor Sanctions: An Analysis of Enforcement Actions in China

The rising tide of corporate scandals and audit failures has shocked the public, and the integrity of auditors is being increasingly questioned. It is crucial for auditors and regulators to understand the main causes of audit failure and devise preventive measures accordingly. This study analyzes enforcement actions issued by the China Securities Regulatory Commission against auditors in respect of fraudulent financial reporting committed by listed companies in China. We find that auditors are more likely to be sanctioned by the regulators for failing to detect and report material misstatement frauds rather than disclosure frauds. Further analysis of the material misstatements indicates that auditors are more likely to be sanctioned for failing to detect and report revenue-related frauds rather than assets-related frauds. In sum, our results suggest that regulators believe auditors have the responsibility to detect and report frauds that are egregious, transaction-based, and related to accounting earnings. The results contribute to our knowledge of auditors’ responsibilities for detecting frauds as perceived by regulators.     

Virtual communication,transformational leadership,and implicit leadership

This research was designed to test the theoretical relationship among personality, implicit leadership, and transformational leadership in a setting devoid of face‐to‐face communication, which we entitled virtual communication. Specifically, the study was designed to link, by using the International Personality Item Pool (IPIP), traits from the 5‐factor model of personality (the Big 5) to followers' perception of the leadership style of a virtual leader on the basis of Bass and Avolio's MLQ‐5X (1994). A voluntary sample consisted of undergraduate and graduate students from two universities in the south Texas area (N = 306). Respondents to the virtual communication rated Leader 1's communication, which used previously identified transformational language (Salter, Carmody‐Bubb, Duncan, & Green, 2007), as significantly more transformational than Leader 2's communication, using words not associated with transformational leaders. Participants who scored high in the Big 5 personality traits of agreeableness, openness to experience, conscientiousness, and extraversion rated the leader as more transformational while those high in neuroticism rated the leader as less transformational.     

A study of follower's personality,implicit leadership perceptions,and leadership ratings

This research was designed to test the theoretical relationship between personality, implicit leadership, and leadership style suggested in past studies. Specifically, it was designed to link traits from the five‐factor model of personality (the Big Five), by utilizing the International Personality Item Pool (IPIP), to a follower's perception of the leadership style of George W. Bush, based on Bass and Avolio's (1997) MLQ5X. A voluntary sample was taken consisting of undergraduate and graduate students from three universities in southern Texas in 2006, with a sample size of N = 303. Respondents who scored high in neuroticism rated the leader as less transformational than those who did not. Also, the ancillary variable good leadership had a positive effect on the respondent's ratings of the leader as a transformational leader, and as a less passive leader, than subjects who did not rate the leader as being a good leader. There was a significant relationship found between respondents' political party affiliation and their transformational and passive leadership ratings. Implications of these findings are discussed in terms of the Obama versus McCain presidential race.     

Enhancing the competitiveness and sustainability of social enterprises in Hong Kong: A three-dimensional analysis

Running a social enterprise (SE) is more difficult than running a small or medium-sized enterprise because SEs have to achieve both economic sustainability as business enterprises and their social mission for the benefit of society. After a few years of operation, many SEs fail or struggle for survival. In this study, we examine some of the factors that affect an SE’s profitability, financial management, and business planning and management. Based on in-depth interviews with 22 social enterprises in Hong Kong, we find that SEs with the dual investment objectives of social mission and financial return are more sustainable and competitive than SEs with social impact as their sole objective. Furthermore, SEs managed by non-owner managers have better financial planning and performance than those managed by owner managers. In addition, SEs with an oversight/advisory committee are more competitive and have better management practices than those without such a committee. Our findings have policy implications for government, SEs, funding bodies, and non-profit organizations to enhance and promote the development of the social enterprise sector.     

HMTS: Improving the quality of public service announcements through standardized pretesting

Traditionally, health message producers have relied on their own creative communication skills to reach and affect the public with health information. The Health Message Testing Service provides additional input regarding target audience response to health messages. Paired with creative PSA production, these data can more reliaby ensure audience receptivity and response. By testing messages in a pre-finished form, the producer can identify and correct potential weaknesses while corrections are still timeand-budget affordable. National Cancer Institute Porter, Novelli & Associates     

NEW ESTIMATES OF GROSS NATIONAL PRODUCT FOR THE UNITED KINGDOM 1830–1914

This paper presents a new annual series for United Kingdom gross national product, at current and constant prices, calculated from the expenditure side. These results differ significantly from previous estimates in that they go back to the beginning of the railway age on an annual basis and also in that the constant price estimates involve a detailed deflation of the main components of expenditure on consumption and capital formation. The implications of the new results are summarised, with particular reference to rates of growth and relative price changes, and an appendix describes the sources of the estimates.     

Researching expatriate types: the quest for rigorous methodological approaches

International talent flow is critical to meeting the needs for skilled human capital in global and multinational organisations and in developed and developing countries. Recent decades have witnessed a boom in research into long‐term skilled international mobility, especially the traditional category of international assignees, but also skilled immigrants and a relatively new expatriate type: self‐initiated expatriates. The upsurge in empirical interest has highlighted a number of issues relating to the way the research has been conducted. This article examines methodological issues associated with research into the three expatriate types and seeks to advise researchers on how future research can be conducted to improve the robustness of results. In this way, practitioners and policy makers may be able to make more use of the empirical evidence.     

Examining the overseas staffing options utilized by Australian headquartered multinational corporations

MNCs need to use a range of options to manage their international operations. The aim of this study was to enhance understanding of how MNCs staff international management positions using a sample of top Australian MNCs across a range of industries. The rationales executives gave for their MNCs' staffing of international management supported selecting managers with higher competency levels for complex overseas assignments. Staffing options were chosen to reduce risks from cultural friction, divergent goals, and asymmetry in knowledge between the parent company and the host operation, chiefly through staffing by parent country nationals (i.e. long-term expatriates, Australians or Westerners already living in the host country or abroad, domestic international managers). Host country managers were used to reduce risks that arose from not being responsive to the host environment and to avoid costs, and when they were least risky to the firm. By contrast, the staffing options also served practical purposes, including deploying expatriate managers to provide skills (competencies) and, less frequently, to develop managers for future management positions in the organization.