Audit committee quality,auditor independence,and internal control weaknesses

In this paper we investigate the relation between audit committee quality, auditor independence, and the disclosure of internal control weaknesses after the enactment of the Sarbanes-Oxley Act. We begin with a sample of firms with internal control weaknesses and, based on industry, size, and performance, match these firms to a sample of control firms without internal control weaknesses. Our conditional logit analyses indicate that a relation exists between audit committee quality, auditor independence, and internal control weaknesses. Firms are more likely to be identified with an internal control weakness, if their audit committees have less financial expertise or, more specifically, have less accounting financial expertise and non-accounting financial expertise. They are also more likely to be identified with an internal control weakness, if their auditors are more independent. In addition, firms with recent auditor changes are more likely to have internal control weaknesses.     

The Perceptions of Consumers Regarding Online Retailers’ Ethics and Their Relationship with Consumers’ General Internet Expertise and Word of Mouth: A Preliminary Analysis

Ethical concerns of Internet users continue to rise. Accordingly, several scholars have called for systematic empirical research to address these issues. This study examines the conceptualization and measurement of consumers’ perceptions regarding the ethics of online retailers (CPEOR). Also, this research represents a first step into the analysis of the relationship between CPEOR, consumers’ general Internet expertise and reported positive word of mouth (WOM). Results, from a convenience sample of 357 online shoppers, suggest that CPEOR can be operationalized as a second-order construct composed of four dimensions: security, privacy, fulfillment, and non-deception. Our findings also indicate that consumers’ general Internet expertise significantly improves CPEOR and CPEOR are strongly predictive of consumers’ WOM. Managerial and research implications are offered.     

Blissful Insularity: When Brands are Judged in Isolation from Competitors

The need to evaluate a single brand in isolation, without explicit comparisons to competitors, is ubiquitous in consumer judgment because competitors are often not readily apparent. Although consumers routinely make such judgments, in this paper we show that when a brand is judged in isolation, the judgment is often overly favorable. Moreover, we explore when and why this tendency occurs. Data from 259 participants across 3 experiments that considered very different product categories, and that were conducted with student and adult consumer samples, converge to show that; (1) isolated brand evaluations on average are characterized by a favorableness bias, (2) this bias results from consumers' selective processing of information about the focal brand, (3) favorableness bias is attenuated if context leads consumers to consider alternatives to a salient focal brand, and (4) the isolated brand judgments of experts are much better calibrated than are those of novices.     

Are incentives without expertise sufficient? Evidence from fortune 500 firms

Agency theory predicts that incentives will align agents' interests with those of principals. However, the resource‐based view suggests that to be effective, the incentive to deliver must be paired with the ability to deliver. Using Fortune 500 boards as an empirical context, this study shows that the presence of directors who lack top‐level experience but own large shareholdings is negatively associated with firm value, an effect that increases in the number of such directors. Firm value rises after such directors depart from boards, with the greatest increases occurring when many of these directors leave. While agency theory highlights the importance of the right incentives being in place, this research suggests that this can be ineffective if the right resources are not also in place. Copyright © 2013 John Wiley & Sons, Ltd.     

Earnings conservatism and audit committee financial expertise

Using an Australian sample of 494 firm‐year observations, this study finds that accounting financial expertise is the primary type of expertise that influences earnings conservatism, rather than nonaccounting financial expertise. The association between accounting financial expertise and conservatism holds only when the accounting financial expert(s) on audit committees is (are) independent. Overall, results suggest that audit committee accounting financial expertise is important in recognising the asymmetrical timeliness of losses. Findings provide a better understanding of the dynamics between audit committee financial expertise and earnings conservatism and demonstrate the importance of accounting financial expertise in improving financial reporting quality.     

公司品牌形象对经销商关系导向的影响——基于主导地位制造商的中国实证

迄今学术界偏重于研究公司品牌形象对消费者产品反应的影响。本研究检验公司品牌形象对经销商关系导向的影响。本文检验了公司品牌的能力和诚信两个因素影响经销商经济满意度和社交满意度,进而影响其关系导向的机制。研究发现,诚信对经销商经济满意度和社交满意度的影响效应大于能力;社交满意度对关系导向的影响效应大于经济满意度。研究显示,处于主导地位的制造商,当务之急是改善诚信形象,这将有助于提升经销商整体满意度,强化经销商的长期关系导向。论文讨论了研究结论对企业营销战略的借鉴意义,指出了局限性及未来研究方向。     

What moderates the influence of extremely negative ratings? The role of review and reviewer characteristics

Online customer reviews are increasingly used by travelers to inform their purchase decisions. However, the vast amount of reviews available nowadays may increase travellers’ effort in information processing. In order to facilitate traveller’s decisions, social commerce organizations must help travellers rapidly identify the most helpful reviews to reduce their cognitive effort. Academic literature has often documented that negative reviews are judged as helpful by consumers. However, extremely negative reviews are not always perceived as such. This study is the first that unveils what factors moderate the influence of extremely negative reviews on review helpfulness. The study has adopted a sample of 7455 online customer reviews of hotels to test hypotheses. Findings show that reviews with extremely negative ratings are more likely to be helpful when the review is long and easy to read and when the reviewer is an expert or discloses his identity (i.e. geographical origin).     

Students as surrogates for managers: Evidence from a replicated experiment

Using students as surrogates for managers in experiments is commonplace, yet the validity of this practice has not been fully established. To explore the appropriateness of using student samples, we replicate an experiment previously conducted employing a sample of senior managers involved in financial reporting. The result is that although student and manager responses are significantly different from a statistical perspective, both samples lead to the same conclusion for this experiment. The findings suggest that having some disassociation between students and the target population they are meant to represent does not necessarily make them inappropriate surrogates. To examine when inferences are best supported, we explore the comparability for student subgroups and managers along dimensions of experience, knowledge, culture, and gender. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Does educating customers create positive word of mouth?

This research theorizes and empirically examines whether and how educating customers—a brand's efforts to enhance customers' product-related knowledge—affects customer word of mouth (WOM). In two lab experiments across service and retailing contexts, we find that educating customers enhances customers' positive WOM for a brand. Customer satisfaction and perceived expertise mediate this effect. Critically, the positive impact on WOM is stronger for customers who have less prior knowledge regarding the educational topic and are more amenable to knowledge sharing. The current findings add to the literature on customer education and WOM and offer managerial insights for improving brands' WOM campaigns.