Celebrity altruism: the good,the bad and the ugly in relationships with fundraising charities

• Enlisting or retaining the support of celebrity volunteers is a crucial element in the fundraising and communications strategies for many third sector organisations. But whilst there is a plethora of literature on volunteer motivations, there has been little exploration of the relationships between celebrity volunteers and the charities that they support. Furthermore, the limited theory that exists appears to be based on the experiences of fundraisers and other media specialists with little primary research on attitudes of celebrities themselves. This paper therefore considers celebrity/charity relationships on the basis of existing volunteer motivation theory and attitudinal data from a sample of 208 celebrity volunteers associated with a major fundraising charity in the UK. The findings indicate that the motivation of celebrity volunteers may be much closer to those of other charity volunteers than might be expected from other literature on celebrities. In addition, the study found that amongst other factors, celebrity volunteers typically prefer their engagements to be simplistic and expedient in nature, but that where possible, the engagement activity should be fun and rewarding. It also reveals that individual motives for supporting charities are varied in nature and range from purely altruistic tendencies at one end of the continuum to egoistic motives at the other. In addition, the study indicates that factors such as security and trust in the endorsed organisation are a key motivating factor for many.

Copyright © 2014 John Wiley & Sons, Ltd.     

PCAOB inspection reports and audit quality

With the creation of the Public Company Accounting Oversight Board (PCAOB), audit firm oversight shifted away from self-regulation to independent regulation. The inspections program is the central feature of the PCAOB. We examine whether PCAOB inspections are able to distinguish actual audit quality (as opposed to perceived) during the period inspected to better understand this important regulatory tool. We use three measures that proxy for actual audit quality: abnormal accruals, restatements, and the propensity to issue a going concern opinion. For triennially inspected auditors, we find that PCAOB inspections are associated with lower audit quality when the reports are seriously deficient (weaker results for deficient reports). More specifically, we find clients of triennially inspected auditors that receive a deficient or seriously deficient report are associated with significantly higher abnormal current accruals and clients of auditors that receive a seriously deficient report are associated with a greater propensity to restate. Our evidence is subject to the caveat that PCAOB reports for triennially inspected auditors do not capture the going concern aspect of audit quality. For annually inspected auditors, the results are conflicting and suggest PCAOB inspection reports do not distinguish audit quality during the period inspected for annually inspected auditors.