Behavioral Literature Research Articles

Employees’ self-esteem in psychological contract: workplace ostracism and counterproductive behavior

PropósitoEl comportamiento laboral contraproducente (CLC) en la industria turística se ha convertido en un problema significativo tanto para los empleados individuales como para las organizaciones. Los empleados que se sienten marginados en su lugar de trabajo suelen participar en comportamientos negativos y disruptivos. El objetivo de este trabajo es examinar los efectos de la violación del contrato psicológico y la autoestima del empleado en el ostracismo en el lugar de trabajo y en el comportamiento laboral contraproducente CLC y agregar nuevos conocimientos para comprender mejor el lado oscuro del comportamiento laboral turístico.Diseño/metodología/enfoqueRealizamos una encuesta de cuestionario a 228 empleados de hotel en dos momentos en Huangshan, China. Se utilizaron la regresión jerárquica y el SPSS PROCESS Macro para probar todas las hipótesis.ResultadosLos resultados muestran que 1) el ostracismo en el lugar de trabajo aumenta significativamente la CLC de los empleados. 2) La violación psicológica del contrato juega un papel mediador entre el ostracismo en el lugar de trabajo y CLC. 3) El ostracismo en el lugar de trabajo aumenta las percepciones de violación psicológica del contrato cuando la autoestima de los empleados es mayor. 4) El efecto mediador de la violación psicológica del contrato también es moderado por la autoestima.Originalidad/valorUtilizando el marco de la teoría del contrato psicológico y la teoría cognitiva social, avanzamos en la literatura del comportamiento organizacional en el campo del turismo. Contextualizamos la singularidad del comportamiento en el lugar de trabajo chino y destacamos la necesidad de comprender la 'pérdida de la visión de la cara (mianzi)' en las relaciones laborales. Esta investigación contribuye con nuevos conocimientos para comprender mejor el lado oscuro del comportamiento turístico en el lugar de trabajo al examinar los efectos de la violación psicológica del contrato y la autoestima de los empleados en el ostracismo en el lugar de trabajo.

Measuring employee empowering and ownership under accountability pressure: the case of J&J Industries

Research Methodology Data used to develop the case included primary data from employees and supervisors of a commercial floorcovering manufacturing plant in Northwest Georgia. The case company is not disguised. The survey was developed using existing instruments from the Organizational Behavior and Human Resources Literature. Instruments were listed in Exhibits 2 through 7. The survey administration had the support of the Vice President for Resources and Facilities, and employees and their supervisors were given time to complete the surveys. The data gathered was analyzed by the researcher using SPSS statistical software. Case overview/synopsis Established in 1957, J&J started as a family-owned business but had grown and diversified its product offerings by focusing on commercial flooring. It survived several economic downturns and remained competitive in a market dominated by more prominent flooring manufacturers. J&J Industries strived to empower its 800 employees with various incentive programs. Employees remained loyal to J&J; many had worked for the company for over 15 years. However, management wanted to measure the impact of empowering and initiatives on employee performance and satisfaction to determine the real power of employee incentive programs. The Resources and Facilities Vice President employed Professor Lopez, a Management Professor, to develop a survey to measure these constructs and analyze the data to guide future incentive programs. Data from the employee and supervisor survey was provided along with the statistical analysis results for interpretation and recommendations for VP Fordham. Complexity academic level The target audience for this case is primarily students in a research methodology course and students studying quantitative regression analysis and interpretation. The focus is predominantly on graduate-level students in Master of Business Administration or Master of Accounting programs in business. Graduate students should have completed courses in management or organizational behavior, business statistics or quantitative methods or data visualization and cleaning as background knowledge for this case. Specifically, students should understand regression analysis and know when and how the tool is used for managerial decision-making.

Servant leadership and tourism businesses’ outcomes: a multiple mediation model

PropósitoEl objetivo de este artículo es explorar el papel que desempeña el liderazgo de servicio en los resultados de las empresas turísticas, en el contexto de las agencias de viajes. Basándonos en la teoría del liderazgo de servicio, desarrollamos un modelo de mediación múltiple que explora las relaciones entre el liderazgo de servicio y la adecuación de la persona al trabajo, el equilibrio entre el trabajo y la vida personal, el compromiso laboral, el comportamiento laboral innovador y el diseño proactivo del puesto de trabajo.Diseño/metodología/enfoqueCon SmartPLS3 se analizaron datos recopilados de 942 agencias de viajes que operan en Egipto mediante un cuestionario con el que se obtuvo información sobre cómo los empleados de agencias de viajes prevén que su organización adopte el liderazgo de servicio, el ajuste persona-trabajo, el diseño proactivo del puesto de trabajo, el equilibrio entre el trabajo y la vida personal, el compromiso laboral y el comportamiento laboral innovador.HallazgosMostramos que el liderazgo de servicio se correlaciona positivamente con el ajuste persona-trabajo, el equilibrio entre el trabajo y la vida personal, el compromiso laboral, el comportamiento laboral innovador y el diseño proactivo del puesto de trabajo, mientras que el diseño del puesto de trabajo se correlaciona positivamente con el equilibrio entre la vida laboral y personal, el compromiso laboral y los comportamientos laborales innovadores. Mostramos también el papel mediador parcial del diseño proactivo del puesto de trabajo y del ajuste persona-trabajo, en el vínculo entre el liderazgo de servicio y el equilibrio entre el trabajo y la vida personal, asi como el papel mediador parcial del compromiso laboral en el vínculo entre el liderazgo de servicio y los comportamientos laborales innovadores.Originalidad/valorHasta la fecha, la investigación sobre los efectos del liderazgo de servicio en la adecuación de la persona al trabajo, el diseño proactivo del puesto de trabajo, el equilibrio entre el trabajo y la vida personal, el compromiso laboral y el comportamiento laboral innovador ha sido insuficiente. En términos de aplicabilidad contextual, no se disponía de una investigación empírica de la relación entre estos factores en las agencias de viajes. Al examinar empíricamente estas relaciones en el contexto de las agencias de viajes egipcias, el presente estudio cubre un vacío en la literatura sobre turismo y hostelería, gestión de recursos humanos y comportamiento organizacional.

Exploring the Determinants of Investment Behavior: Evidence from Agrarian Investor Class of India

The current research aims to identify the factors that influence the investment behavior of the agrarian investor class, an untapped potential segment for the investment market, in India. The study observes the antecedents of investment behavior and intention. Thus, the present study analyses the responses of 400 agrarian rural respondents. Data from a well-structured questionnaire administered to the study’s target participants were analyzed using structural equation modeling. The results observed the utmost influence of financial self-efficacy in establishing the agrarian rural investors’ attitude and has least influence in determining personality traits and financial knowledge, which ultimately determine the investment intention of investors. Further, social influence has the least effect on how agrarian rural people think and act. The findings demonstrate that investment intention is the leading factor in cementing the investment behavior of agrarian rural investors. This article claims its distinctiveness by adding important insights to the literature of the investment behavior and intention for the Indian agrarian investor class.

Influence of Personality Type on Investment Preference and Perceived Success as an Investor

Over the last two decades, the behavioural finance literature has extensively relied on personality type to explain the non-rational behaviour of investors. This study considers Dark triad (Machiavellianism, narcissism and psychopathy) to explain its influences on investment preference and perceived success in investment. A primary survey was conducted on 227 individuals who invest in securities. Dark triad was measured using 27 items Short Triad Scale (SD3). The data were analyzed using multinomial logistic regression. The investment preference was evaluated by asking the respondents about their preferred investment avenues, individuals were asked how they evaluate their investment success. Personality variables were grouped into high, average and low based on the mean responses to the items under each variable. The results of the study indicate that individuals with low and average levels of psychopathy and low-level narcissism preferred investing only in mutual funds, bonds and equity. It was also found that Machiavellianism, narcissism, psychopathy and dark triad, all have a significant impact on investment preference. The dark triad also significantly impacted success, especially for those individuals who perceived their investment strategy as ‘Very Successful’. This study helps financial advisors to suggest appropriate portfolios or investment avenues based on their personalities.

On The Job Training Satisfaction of Hotel Management Students

The study aimed to evaluate the satisfaction level of students with the on-the-job training program. The study population consisted of 178 students in the third and fourth academic year of the Diploma IV Hospitality Administration at Bali Tourism Polytechnic who returned and correctly filled out the questionnaire. The data was analyzed using descriptive statistical methods. The research has both theoretical and practical contributions. Theoretically, it can contribute to the development of organizational behavior literature and human resource management. Practically, it can assist vocational education institutions, especially Bali Tourism Polytechnic, in developing on-the-job training programs for their students.

Digital Platform Complementors and the Number of Product Features: Evidence from the Apple iOS App Store

AbstractThis paper explores the understudied question of how the number of product features that a digital platform complementor adds to a product is associated with its performance. Specifically, by integrating consumer behaviour literature into platform research, this paper focuses on three key performance dimensions considered as important for digital platform complementors. Considering the distinctive characteristics of digital platforms, this paper conceptualizes how additional features affect consumer acquisition, consumer retention, and product monetization of a digital platform complementor. This research question is empirically examined in the context of a health and fitness mobile platform in the US Apple iOS App Store, and the panel data analyses are complemented with a randomized online experiment to mitigate endogeneity concerns and lend further credence to the findings. This paper enhances platform research by unravelling an underexplored yet essential topic—how many features a digital platform complementor should include to achieve superior performance and by distinguishing among various key performance measurements on digital platforms.

The digital frontier as a liminal space

AbstractHadi et al. (Journal of Consumer Psychology, 34, 2023) have created a masterful and wide‐sweeping review of the consumer behavior literature on the Metaverse. They envision our encounter with the Metaverse as a consumer journey. In this commentary, I highlight some of their unique contributions and suggest additional insights that emerge when we view the digital frontier as a liminal place betwixt and between now and then, here and there, and reality and virtuality. The Metaverse is also a metaphor and I entertain three metaphoric interpretations. First, the Metaverse is an experience machine of the sort that Robert Nozick imagined in his thought experiment involving real and artificial pleasures. Alternatively, consumers themselves can be seen as desiring machines as Gilles Deleuze and Féliz Guattari characterized them, and the Metaverse can be seen as an instantiation of our collective desires. Or thirdly, the Metaverse can be regarded as a shared hallucination. As these diverse metaphors suggest, imagining the metaverse is a projective exercise. But the consequences may involve up to a trillion dollars in revenues, so I hope these provocations prove useful whether they are ultimately borne out or not.

Öz Merhamet, Dışsal Motivasyon, İçsel Motivasyon ve Performans Arasındaki İlişkinin İncelenmesi: Tekstil Sektöründe Bir Araştırma

The concept of self-compassion is seen as a part of positive psychology and has recently become a current topic in the organizational behavior literature. Self-compassion is an individual's positive, loving and accepting attitude towards oneself. Self-compassion levels of employees in organizations can positively affect their intrinsic motivation and performance regarding their work. It is also predicted that it regulates the relationship between self-compassion, extrinsic motivation and intrinsic motivation. The aim of this study is to examine the relationships and interactions between self-compassion, extrinsic motivation, intrinsic motivation, and performance variables. The interactions between the variables are handled within the scope of the moderating and mediating model. Quantitative research method was used in the research. Data were obtained using the questionnaire technique. Due to accessibility, time and cost constraints, the participants were reached with the convenience sampling method. The sample of the research consists of the employees in the textile businesses in Kahramanmaraş and data were collected from 393 participants. SPSS 25.0 and Process Macro programs were used in the analysis of the data. As a result of the research, it was seen that there were positive relations between the variables. With the analysis made to test the established models, it was determined that self-compassion had a moderator role between extrinsic motivation and intrinsic motivation. With this, it was found that intrinsic motivation had a partial mediating role in the effect of self-compassion on performance.The findings were discussed in the context of the literature and suggestions were made for future studies.

The voluntary green behavior in green technology innovation: The dual effects of green human resource management system and leader green traits

Green technology innovation is becoming increasingly important for companies to effectively address environmental governance, with employees’ green behaviors serving as core supportive carriers. Drawing on the sensemaking theory, this study uses a mixed-method design that involves quantitative surveys of 224 well-educated professionals working in different companies and qualitative multiple case studies of four companies engaged in green technology innovation in China. The purpose of this study is to investigate the complex relationships among the green human resource management system, leader green traits, and voluntary green behavior of employee, as well as to verify these relationships while further unfolding their underlying intrinsic mechanism. The results demonstrate that green human resource management system and leader pro-environmental attitude have a positive effect on the voluntary green behavior of employees, respectively. Leader moral reflectiveness has a moderating effect on the relationship between the green human resource management system and the voluntary green behavior of employees. These findings shed new light on the roles of green human resource management system and leader green traits in the green behavior literature and illuminate practical ways through which companies may achieve successful green technology innovations.

Low Consumer Social Responsibility Increases Willingness to Buy from Large vs. Small Companies

Previous research mainly concentrated on the link between the company size and consumer perceptions related to corporate social responsibility (CSR). Here we aim to extend the previous findings to the context of the consumer’s individual trait of social responsibility. Building on signaling theory, we analyze such signals as company size and demonstrate that consumers have a decreased willingness to buy a product originating from a large company as compared to a small company. However, the effect flips for consumers with low social responsibility as they show a higher willingness to buy large company products. We contribute to signaling theory by showing that consumer traits such as consumer social responsibility can play an important role in the effectiveness of the signal. In addition, these findings contribute to consumer social responsibility research as well as consumer behavior literature by showing that the company size effect is moderated by consumer social responsibility. Theoretical and managerial implications are discussed together with directions for future research.

Quiet Quitting: Building a Comprehensive Theoretical Framework

In this study, we aimed to introduce the recently popular concept of quiet quitting to the organizational behavior literature. Although we have met a handful of studies on the concept, we realized that the relevant studies do not address the concept comprehensively based on any theoretical background but only one. Therefore, we conducted this study, which is still in its infancy, for further researchers to conduct it empirically within the scope of cause-and-effect relationships in the organizational behavior literature. First, we grounded the term on Social Exchange Theory, Conservation of Resources Theory, and Theory of Generations. Second, we briefly defined the term. Third, we discussed possible antecedents, expected outcomes, issues having bi-directional effects, and the ways how to deal with these issues in organizations. Finally, we proposed a conceptual model including all possible cause-and-effect hypotheses.

Career plateau and counterproductive work behaviour: a moderated moderation model of abusive supervision and job embeddedness

PurposeDrawing upon the social identity theory (SIT), the present study aims to examine the moderating role of abusive supervision (AS) and job embeddedness (JE) in the relationship between career plateau (CP) and counterproductive work behaviour (CWB). The research also aims to investigate whether JE moderated the moderating effect of AS on the CP–CWB relationship.Design/methodology/approachThe hypotheses were tested with two-wave survey data collected from 290 employees working in India’s banking, financial services and insurance sector. Data were analysed using moderation and moderated moderation analyses on PROCESS v 4.1 macro.FindingsResults showed that AS moderated the CP–CWB relationship, whereas the moderating role of JE was not observed. However, JE was seen to moderate the moderating effect of AS, supporting the moderated moderation framework.Research limitations/implicationsThe present study adds value to the existing literature by connecting SIT with hierarchical layers. The supervisor themselves may stay longer in their current positions and block the subordinates’ progress. This impacts the social image of the subordinates. The study enriches the CP literature by highlighting that CP may lead to CWB, as the employees who perceive CP hit back at the organisation for being unfairly treated and not getting the career progression due to their supervisor.Practical implicationsThe study provides important implications for the supervisors who need to introspect if their behaviour is viewed as abusive by the career-plateaued employees. They need to mentor the employees, especially those with higher career aspirations, and provide them with various career avenues. Furthermore, organisations should make all possible efforts to embed the employees within their jobs as the embedded employees can better take the shock of CP.Originality/valueDrawing on the SIT, the study contributes uniquely to the employee behaviour literature by investigating the impact of CP, AS and JE on CWB in hierarchically flatter organisations. This is the first study to investigate the moderated moderation model of AS and JE in the CP–CWB relationship in the context of employees’ social status within the organisation.

Role of hedging on crypto returns predictability: A new habit-based explanation

We evaluate the ability of risk-averse commercial traders’ net position in futures to predict changes in cryptocurrency returns, which can be useful to cryptocurrency-market-specific measures developed in the behavioral finance literature. Notably, we show that the hedging factor has a statistically significant and economically important effect on the predictability of crypto returns via its moderating effects on the risk-aversion and uncertainty channels. Moreover, the out-of-sample evidence suggests significant return predictability for the hedging factor.

Determinants of cancer patients' involvement in treatment decision-making based on the COM-B model: A cross-sectional study

ObjectivesCancer patients' involvement in treatment decision-making is affected by various factors, with the mechanisms not readily understood. This study explores the underlying mechanisms based on the Capability, Opportunity, Motivation and Behavior (COM-B) model and literature review. MethodsA cross-sectional survey was conducted and 300 cancer patients conveniently recruited from three tertiary hospitals validly completed the self-administered questionnaires. Structural equation modeling (SEM) approach was used to test the hypothesized model. ResultsThe findings generally supported the hypothesized model, which could explain 45% of the variance in cancer patients' involvement in treatment decision-making. Cancer patients’ health literacy and perceived facilitation of involvement from health professionals had direct and indirect effects on their actual involvement, with the total effect β = 0.594, β = 0.223, P < 0.001, respectively. Patients’ views of involvement in treatment decision-making had a direct effect on their actual involvement (β = 0.296, P < 0.001) and completely mediated the relationship between self-efficacy and their actual involvement (β = 0.040, P < 0.05). ConclusionsFindings support the COM-B model’s explanatory potential in the context of cancer patients' involvement in treatment decision-making.

Determinants of purchase intentions: foreign imported functional foods in Asian emerging country

The purpose of this paper was to investigate factors that impact consumers’ intention of buying foreign-made functional foods. By highlighting various consumer features related to foreign imported functional foods buying behaviours, this study proposed a comprehensive model relating to consumers’ purchase intentions in the context of an emerging country. A quantitative study by a self-administrative survey was applied with a sample of 527 respondents from the north of Vietnam. From the results of structural equation modelling analysis, the study discovered that electronic word-of-mouth (eWOM) information and credibility, health consciousness positively influence consumers’ attitude toward foreign functional foods and through attitude influence purchase intention. Interestingly, our results showed that consumer ethnocentrism in the case of foreign imported functional foods, conversely with other products, does not influence either consumer attitude or purchase intentions. The study filled a gap in functional foods consumers’ buying behaviour literature in emerging markets by analyzing the mediator role of attitude toward functional foods in the theoretical model of the relation between online information sources and other traditional determinants with purchase intention. From the research results, implications for managers were proposed. Functional food managers should use internet media as a business tool and emphasize the health benefits of functional foods to change consumers’ attitudes and then encourage purchase intention.

Behavioral Reactions to Job Insecurity Climate Perceptions: Exit, Voice, Loyalty, and Neglect.

Past work has extensively documented that job insecurity predicts various work- and health-related outcomes. However, limited research has focused on the potential consequences of perceived job insecurity climate. Our objective was to investigate how the psychological climate about losing a job and valuable job features (quantitative and qualitative job insecurity climate, respectively) relate to employees' exit, voice, loyalty, and neglect behaviors, and whether such climate perceptions explain additional variance in these behaviors over individual job insecurity. Data were collected through an online survey using a convenience sample of employees working in different organizations in Türkiye (N = 245). Hierarchical multiple regression analyses showed that quantitative job insecurity climate was associated with higher levels of loyalty and neglect, while qualitative job insecurity climate was related to higher levels of exit and lower levels of loyalty. Importantly, job insecurity climate explained additional variance over individual job insecurity in exit and loyalty. Our findings underscore the importance of addressing job insecurity in a broader context regarding one's situation and the psychological collective climate. This study contributes to addressing the knowledge gap concerning job insecurity climate, an emerging construct in the organizational behavior literature, and its incremental impact beyond individual job insecurity. The foremost implication is that organizations need to pay attention to the evolving climate perceptions about the future of jobs in the work environment, because such perceptions are related to critical employee behaviors.

The Moderating Role of Perceived Reward on Leadership Style and Policy Involvement Effects on Job Performance Among Pharmaceutical Managers

Management and behavioral sciences literature has established a direct link between rewards and employee performance. However, limited research exists on the role of perceived reward on the effects of policy strategy involvement and leadership style on the performance of pharmaceutical managers. Intuitively, perceived rewards may have a potential impact on the behavior and attitudes of pharmaceutical managers toward work, and invariably job performance. Based on the incentive theory of motivation framework, the study explored the causal effect of leadership style, and policy involvement on job performance, and the moderating effect of perceived reward among pharmaceutical managers. Comparative differences in perception between operational and strategic managers were evaluated. A cross-sectional web-based questionnaire survey of a random stratified sample of managers (103 strategic and 138 operational) engaged in pharmaceutical marketing. Structural equation modeling was used to evaluate the developed model. Construct validity and fit measures of the hypothetical model were adequate. Policy strategy involvement and leadership style had a positive and significant influence on job performance. Moderation analysis showed that low perceived reward significantly weakened the impact of policy engagement on performance. Integrating improved managers’ involvement with policy and strategy development with commensurate rewards is an incentive strategy to improve managers’ job performance. The study was restricted to only two major managerial groups. More job-related behavioral constructs are required to improve the generalizability of findings, which is suggested for further research.

Empowering leadership: role of organizational culture of self-esteem and emotional intelligence on creativity

PurposeThe changing workplace and the disruption and transformation of business processes brought on by modern technology make it difficult for a firm to maintain its existing plans. A management's ability to succeed is related to sustaining and developing its employees to be innovative workers. The idea is to empower subordinates and share authority with them, which increases efficiency.Design/methodology/approachIn this study, it was anticipated that there is a definite relationship between leadership empowerment and workplace cultures of self-esteem, emotional intelligence and creative thinking. Data were obtained using random sample techniques to confirm the hypothesis. A total of 291 Pakistani private-sector employees were surveyed for this study.FindingsThere were positive and substantial links between empowered leadership and creativity, while emotional intelligence and organizational self-esteem have an inverse relationship. For psychological appeal and inventiveness at work, empowerment alone is sufficient. Intellectual stimulus or culture of excessively positive self-esteem may cause numerous limits at work. Hence, management should avoid situations where leaders are predisposed to developing empowering techniques.Research limitations/implicationsThis study yields an additional understanding of organizational behavior literature. It was concluded from this study that empowering leaders should avoid using emotional intelligence when scaling up creative strategies. As an alternative, they should develop a culture of self-esteem through emotional intelligence.Practical implicationsLeaders may want to consider demographic values while developing empowerment strategies. It is not recommended to use emotional intelligence and empowerment simultaneously. As a result, this framework suggests a realistic and candid approach that is simple to implement.Originality/valueLeaders make people aware of the ongoing importance of innovative processes to encourage staff to be creative. Successful leaders may use either empowering culture or leadership empowerment strategies for a more significant appeal. Self-esteem culture may provide a structure of interaction buffer against the other emotions that could counter disruption.

Critical audit matters: litigation, quality and conservatism

PurposeThis study aims to address the following four research questions: first, whether auditors report critical audit matters (CAMs) to shield themselves against possible litigation; second, whether reporting quality affects auditors’ propensity to report CAMs; third, whether auditors’ tenure length – reflecting familiarity with clients’ financial reporting – affects their likelihood to report CAMs; and fourth, whether auditors’ conservatism increases the likelihood of CAMs reporting.Design/methodology/approachData are manually collected from audit reports including CAMs in 10-K, then financial data are collected from the Capital IQ database, and market data are collected from the CRSP database. Using propensity score matching, the initial sample of companies with CAMs is matched with companies without reported CAMs. Performance adjusted discretionary accruals, real earnings management proxy, Khan and Watts’ (2009) C-score, propensity to issue a going concern opinion, Dechow et al.’s (2011) F-Score, Rogers and Stocken’s (2005) model and Houston et al.’s (2010) model are used to measure reporting quality, auditor conservatism, misstatement risk and litigation risk, respectively.FindingsThe results do not show that auditors report CAMs opportunistically to shield themselves from litigation risk. However, the results do suggest that auditors have a greater tendency to report CAMs when reporting quality is low and when they are more conservative. On the other hand, they have less tendency to report CAMs in their first year of engagement.Research limitations/implicationsThe findings of this study have important implications for the auditor behavior literature as it shows that, when it comes to reporting CAMs, auditors actually behave objectively and do not report in a trite way. This study also provides early archival evidence on a standard that relates to the first major change to the auditor’s report in decades. To the best of the author’s knowledge, it is the first to provide evidence on the association between auditor conservatism and auditors tendency to report CAMs and the first to triangulate prior research on auditor litigation risk by providing the first archival evidence on the auditors “litigation-shielding” concern.Practical implicationsThis study examines whether auditors attempt to meet the stated objective of reporting CAMs by signaling information about reporting quality. This study demonstrates that reporting CAMs is not a “boilerplate” communication. This study has implications for standards setters, as it shows that CAMs are reported in a way consistent with the objectives of the new standard, namely, via signaling information in the audit report on the quality of the financial statements.Originality/valueIn terms of originality, this paper uses a manually collected sample and, to the best of the author’s knowledge, is the first to focus on auditor’s behavior rather than on investors or clients reactions to CAMs. Also, this paper addresses a recently issued standard using US data and archival approach, rather than experimental. This paper also provides relevant evidence related to concerns raised earlier but were not empirically examined, such as reporting CAMS as “boilerplate” expectations. This paper provides new evidence on the auditors’ behavior with regard to litigation risk.