Understanding Audit Quality: Insights from Audit Professionals and Investors

Projects seeking to define, measure, and evaluate audit quality are on the agendas of auditing standards setters as well as audit firms. The Public Company Accounting Oversight Board (PCAOB) currently provides information regarding audit quality through the release of inspection reports, and the Board intends to establish and report audit quality indicators. To provide additional perspective on audit quality, we obtain auditors' and investors' views, definitions, and indicators of audit quality. We find that investors' definitions of audit quality focus more on inputs to the audit process than do auditors', and that investors view the number of PCAOB deficiencies as an indicator of overall firm quality. We find a consensus that auditor characteristics may be the most important determinants of audit quality, and that restatements may be the most readily available signal of low audit quality. We relate responses to a general audit quality framework, provide support for archival audit research, and identify additional disclosures that participants suggest could signal audit quality. Taken together, we provide evidence regarding the construct of audit quality in the post‐SOX environment, evaluate many of the audit quality indicators proposed by the PCAOB, and suggest avenues for future research.     

Expatriate adjustment from the inside out: an autoethnographic account

This paper identifies some of the dynamics of expatriate adjustment using an autoethnographic account of situations experienced by the first author during her first year of work at a financial services company in Hong Kong. Success in this cross-cultural assignment is dependent on the expatriate's ability to adjust to and master the new culture. Our theoretical analysis of the autoethnographic account suggests that culture shock may be a discontinuous process. Further, the analysis suggests that cultural acceptance can play a critical role in expatriate adjustment.     

A change management perspective on public sector cutback management: towards a framework for analysis

The financial crisis forces public managers to implement cutbacks within their organization. We argue that adopting a change management perspective contributes to our understanding of cutback management by adding a focus on managerial behaviour regarding cutback-related organizational changes. Relying on change management literature, this paper develops a framework for the analysis of cutback management connecting the context, content, process, outcomes and leadership of cutback-related change. From this it follows that managers can be positioned at the intersection of various imperatives, both externally and internally, such as their political leaders and their own subordinates. A research agenda is proposed.     

Slicing,Dicing, Spicing,and Pricing: Factors Influencing Purchase and Consumption of Fresh Potatoes

To better understand potential reasons for a North American decline in fresh potato consumption, a region-wide survey (n = 1009) was undertaken in eastern Canada. Results were examined comparing high- and low-frequency potato users on a variety of factors, including beliefs, attitudes, barriers, needs, and satisfaction with potatoes. Respondents indicated positive perceptions pertaining to potato nutrition, taste, preparation, and overall enjoyment. Multiple logistic regression analysis suggested two variables—age and the perceived importance of potatoes for the everyday meal—were strong predictors of high versus low frequency of potato consumption. Respondents judged the ability to see the potato in the package, potato firmness, and locally produced as point-of-purchase characteristics particularly important when buying fresh potatoes. However, respondents also indicated that their needs were not fully met and expressed relatively low levels of satisfaction when purchasing potatoes. Based on the results, suggestions are provided for improving the marketing of fresh potatoes.     

The effects of competitive context on consumer response to price changes

ABSTRACT

This paper aims to understand how a brand’s price level, relative to its competitors, will affect consumers’ responses to price changes of the brand. The study uses experiments to examine brand choice responses to price increases and decreases across contexts differing in competitor brands and their respective prices. These experiments are conducted with six consumer goods categories. The research identifies three key factors that affect the size of responses to brand price changes – (1) passing a competitor brand’s price, (2) narrowing versus widening the price gaps with competitors, and (3) whether competitors are predominantly higher or lower priced brands.     

Watching the FIFA World Cup 2010 in England: the sojourner perspective

Recent years have seen an emergence of a varied academic literature focused on the football fan, with a wealth of studies exploring issues such as hooliganism, fan behaviour and fan identification. No research, however, has documented the experiences and perspectives of the international sojourner, who follows the televised tournament far away from the home country. This paper offers a contribution to the literature on fandom by focusing on the experiences of becoming a temporary fan among a sample of nine international students in England during the period of the 2010 FIFA World Cup. It shows the importance of the tournament for students away from their home nation, acting as a point of celebration and as a means of bringing sojourners of the same nationality together to support their team. It reveals how the tournament offered escape from stress, became a focal point for social interaction, provided the opportunity for recreation of home, and for the reinforcement of feelings of national identity.     

Going to the movies: cinema development in Singapore

Using readings of Foucault's heterotropia and Friedberg's imaginary mobility, this paper analyses movie-going as leisure practice. In highlighting the paucity of research in this area, the paper argues that such practice should be understood as a symbolic interaction between people's behaviour and the spaces that they occupy. This theorization is applied to Singapore, where per capita movie-going is amongst the highest in the world. The paper illustrates how, in Singapore, the development of cinemas has been used to underpin land use policies associated with the relocation of residential areas and social policies related to the growth in consumerism. While effectively alienating older audiences, the paper argues that the spatial and cultural metonymy of the cinema with other primary consumption sites – the mall and the fast food outlet – offers young people reassurance about the growing centrality of consumerism to contemporary social life in Singapore. We argue that the cinema offers a temporary escape from the regulation of social life – access to ‘deviant’ space. However, this same consumerism that facilitates such access simultaneously denotes conformity with the dominant ideology: acceptance of the heterotropic possibilities – and limitations – of cinema and movie-going as leisure practice.     

Experiential Marketing and Long-Term Sales

This study investigates the ability of winery tasting rooms to create brand awareness and build long-term brand loyalty. Specifically, we test the conjecture that if tasting rooms create brand awareness and a pleasurable tasting room experience, then those visitors are more likely to recognize and seek out those brands once they leave the tasting room. To measure these effects, we exploit differences in tasting room characteristics to conduct a series of natural experiments from which we analyze differences in off-premise retail sales away from the tasting room. We use scan data on wine sold off-premise through traditional retail outlets to then test for differences among tasting room characteristics. Our results indicate that tasting rooms act as a form of experiential marketing for wineries, creating brand awareness and generating greater growth in off-premise retail sales. Finally, we address issues of endogeneity and unobserved heterogeneity as potential sources of bias.     

Participation and retention in a green tourism certification scheme

Tourism certification schemes offer a transitional procedure to a more transparent and sustainable tourism product. Engaging current and previous Green Tourism Business Scheme (GTBS) members in Scotland, this research addresses issues of retention affecting progression of sustainable tourism supply. Quantitative analysis tracking GTBS members over three time points reveals 2% growth but conceals significant flux in membership. Retention was calculated at 66%, where business type analysis discloses distinct issues among accommodation providers with 42% departing the scheme. Decline is greatest among B&;Bs and guesthouses (?61%), where poor and falling recruitment coincides with very poor retention (33%). Our analysis demonstrates that slow growth in membership is primarily a result of enterprises choosing to leave the scheme, rather than poor recruitment. Questionnaires from past and present GTBS members (n = 109) confirm the importance of personal pro-environmental philosophies and perceived business benefits in attracting members, yet anticipated benefits do not always materialise. The main reasons for leaving the GTBS relate to membership cost and unrealised benefits. Lack of scheme awareness, management, criteria, bureaucracy and time commitment were further departure factors. The paper offers some suggestions to address issues and enhance retention leading to sustainable growth among tourism certification schemes.     

Research note: religious doctrine and its influence on the choice to gamble as a leisure pastime among African American Methodists

This research note examines the relationship between adherence to religious doctrine and participation in gambling as a leisure pastime. In the United States, recreational gambling is a common leisure pastime for many African Americans. Our ideals about the value of gambling are often shaped within families, based on their lived experience with recreational gambling and also within religious communities. Two doctrinal statements from the Methodist strand of Protestantism provide critical assessment of gambling as a leisure pastime. This case study examined African American Methodists’ perceptions about religious doctrine that addresses gambling; their choice to gamble despite their familiarity with the doctrinal position of the Church; and the perception of gambling as a sinful leisure pursuit. Religious doctrine may deter some adherents from participating in gambling as a leisure pursuit but not everyone. Many can be familiar with religious doctrine, may not agree with it and will proceed to gamble. Finally, even if gambling is perceived as a sinful leisure activity, it concurrently can be viewed as a ‘harmless’ vice.