Specific Firms Research Articles

Environmental analysis in UK modern methods of construction (MMC) housing: insights from early-stage architectural design process

PurposeModern Methods of Construction (MMC) have been promoted as a solution to address housing shortages and meet sustainability goals in the UK. However, the practical functioning of MMC, particularly in relation to early-stage environmental analyses, remains underexplored. This study aims to fill this gap by providing empirical insights into how architects engage in environmental analysis in early-stage MMC housing designs.Design/methodology/approachThis qualitative pilot study is based on a detailed case study of a UK architectural firm specializing in modular housing. Semi-structured interviews were conducted with eight architects with varying MMC experience. Thematic analysis of the qualitative data allowed for the exploration of key themes influencing early-stage environmental analysis, offering a narrative account of architects’ experiences in MMC practices.FindingsThe study reveals that environmental analysis in MMC is shaped by social, organisational and project-based factors. Three key themes emerged: uncertainty in environmental assumptions, dependencies on external consultants and the dominance of Passivhaus principles in design decisions. These factors challenge the integration of environmental considerations during the early design stages of MMC projects.Research limitations/implicationsAs this is a single case study, the findings might not be generalizable. Future research should expand on multiple firms and project settings to validate and broaden these findings.Originality/valueThis study provides an in-depth understanding of the challenges architects face when integrating environmental analysis into MMC. This reveals the relational and interdependent nature of environmental analysis in MMC projects, where decisions are shaped by multiple social, organisational and project-specific factors. By emphasizing these interdependencies, this study provides original insights into how environmental considerations can be integrated more effectively into the early design stages of MMC projects.

The impact of product portfolio specialty and activeness on firm survival: evidence from the nascent drone industry

We examine the impact of product portfolio strategy on the likelihood of firm survival within the nascent unmanned aerial vehicles (UAV) or the drone industry. Using novel and representative global data on firms that operate within the domain of air platforms in the drone industry, our study captures a period of ferment in the industry as it went through significant change and began to acquire some level of stability. The results show that both portfolio specialty and activeness have a positive impact on firm survival. Specialist firms with narrow product usage or higher portfolio specialty are in an advantageous position compared to generalists with wide product usage or low portfolio specialty. They also have a higher likelihood of survival, overall. Similarly, a firm with a more active set of drones within its product portfolio also survives better. The results are consistent even after accounting for firm‐level controls and are robust to other model specifications. Our findings have important implications for firm strategy, positioning, and interaction with technology in nascent industries, especially relating to the development and deployment of new technologies and products.

Labor supply and M&A in the audit market

Using labor supply shocks from the 150-Hour Rule, I find that a reduction in the labor supply of accountants increases audit firms' mergers and acquisitions (M&A) and the audit market concentration. These M&A deals connect audit firms serving clients in the same states and lead to greater industry specialization of the merging firms. Although both small and large auditors generally engage in labor supply–driven M&A deals, large audit firms’ engagement in M&A is restricted to markets with a tight supply of accounting labor. Attenuations of the labor supply restrictions tend to limit the heightened M&A activities and mitigate the rise in the audit-market concentration from the 150-Hour Rule. I conclude that labor supply reductions affect the boundaries of audit firms, potentially changing the structure of the entire audit market.

The effect of gender diversity on the disclosure of key audit matters: examination of dual-signature environment

PurposeThis paper aims to investigate the impact of gender diversity in the composition of engagement auditors on the disclosure of key audit matters (KAMs) in a dual-signature environment.Design/methodology/approachThe authors used the unique institutional setup of Taiwan, where the law requires that audit reports be signed by two audit partners. The authors examined the effect of gender diversity composition among engagement auditors on KAM disclosure, considering behavioral differences between female and male auditors.FindingsThe empirical results indicate that gender diversity composition in the dual-signature environment is associated with the number of disclosed KAM items (KAMIT) and the length of the explanations for each KAMIT. Furthermore, the authors found that gender diversity composition, particularly when led by female audit partners, has a more pronounced impact on the explanation of each KAMIT rather than on the disclosure of KAMIT. The authors also noted that the moderating effect of audit firm specialization does not influence the gender diversity composition of audit partners in disclosing KAMs.Originality/valueThis study’s empirical findings demonstrate that the interaction between different gender compositions in a dual-signature environment influences KAM disclosure.

Impact of Auditor’s Independence on Earnings Management of Listed Deposit Money Banks in Nigeria

This research investigates the impact of auditor’s independence on earnings management in listed deposit money banks in Nigeria. Utilizing a correlational research design, the study explores the relationships between auditors’ independence, measured by audit firm specialization, audit fee, and audit firm size, and earnings management, proxied by accrued earnings. Secondary data from the annual reports and accounts of twelve selected banks over ten years (2013-2022) were analyzed using fixed effect estimation. The findings reveal that audit fee, audit size, and audit tenure positively influence earnings management. The positive coefficients suggest that higher audit fees, larger audit sizes, and longer audit tenures are associated with increased discretionary accruals. However, non-significant p-values caution against accepting these associations at the 5% level. The coefficient of determination (R2) indicates that the chosen variables collectively explain 27.26% of earnings management, offering some explanatory power to the model. In conclusion, the study recommends listed deposit money banks to prioritize engagement with Big 4 Audit Firms and carefully consider audit fee structures. Regulatory bodies, particularly the Central Bank of Nigeria, are advised to enhance surveillance, particularly in the realm of auditor remunerations. The research underscores the need for caution in interpreting the identified associations and highlights avenues for future research, including incorporating control variables and addressing potential endogeneity concerns for a more nuanced understanding of the relationship.

DOES CLIENT IMPORTANCE AFFECT AUDIT QUALITY IN MODERATION?

The financial report is a report that is very necessary in making decisions. For this reason, a quality audit is needed that can truly explain the condition of the company. Good audit quality can provide the right information for its users, while poor audit quality can cause many losses, both internal and external. The purpose of this research is to examine the influence of audit tenure, audit committee, and public accounting firm industry specialization on audit quality with client importance as a moderator. The data in this research uses secondary data obtained from the 2019 to 2021 financial reports listed on the Indonesia Stock Exchange using the purposive sampling method and using the SPSS program in data processing. The independent variables in this research are audit tenure, audit committee, and public accounting firm industry specialization. Audit tenure is calculated based on the number of years of engagement, the first year is given the number 1 and 1 is added for the following years. The audit committee is calculated based on the number of audit committee members. Public accounting firm industry specialization is calculated based on the number of companies audited by the same auditor divided by the number of companies, and if the result is more than 20% it is given the number 1, otherwise it is given the number 0. The dependent variable in this research is audit quality which is given the number 1 for the Big Four and 0 for the Non-Big Four, and the moderating variable is client importance which is calculated by the natural logarithm of total assets divided by the natural logarithm of total assets audited by the same auditor. This research uses logistic regression analysis in data processing because the independent variable indicators are dichotomous. The results of this research are that audit tenure affects audit quality, audit committees have an effect on audit quality, and public accounting firm industry specialization has no effect on audit quality. Client importance as moderation also cannot influence audit tenure, audit committee, and public accounting firm industry specialization on audit quality.

Strategic questions to ask during times of crisis

According to experts at The Osborne Group, a New York City‐based consulting firm specializing in nonprofits, it's critical to reach out to your donors during times of crisis. After 9/11 and during the Great Recession, the company says on its website, the organizations and institutions that encouraged their staff to call to check in on their donor families not only survived those times of crisis, but thrived afterwards.

Supporting international students with disabilities

Dr. Loren O’Connor, the Director of Kolpin & O’Connor Global Consultants, an international firm specializing in helping universities create accessible education offices and advancing key equity and inclusion initiatives, discusses how postsecondary institutions can support international students with disabilities. You can contact Dr. O’Connor at dr.oconnor.global@gmail.com.

Supporting international students with disabilities

Dr. Loren O’Connor, the Director of Kolpin & O’Connor Global Consultants, an international firm specializing in helping universities create accessible education offices and advancing key equity and inclusion initiatives, discusses how postsecondary institutions can support international students with disabilities. You can contact Dr. O’Connor at dr.oconnor.global@gmail.com.

Organizational complexity and audit report lag in GCC economies: the moderating role of audit quality

Purpose This study aims to investigate whether organizational complexity (hereafter firm complexity) increases audit report lag (ARL) in a unique environment of GCC countries. Design/methodology/approach The research study uses a panel data set of 6,084 firm-year observations of nonfinancial firms from GCC economies from 2009 to 2022. First, the study uses an ordinary least square estimator to examine the association of firm complexity with ARL. Second, for robustness purposes, the study applies the propensity score matching technique. Findings This research study finds that the firms’ complexity increases ARL. Supporting the argument that auditors respond to firm complexity with increased effort, the authors find a positive relation of firm complexity with ARL. This relationship is augmented by auditor change, auditors’ tenure, auditor-qualified opinion and adoption of IFRS. In addition, the authors also find that Big-4 and audit firm industry specialization curtail the positive impact of firm complexity on ARL. Research limitations/implications Firms in the GCC have less time to complete their audit and complex firms are likelier to have bigger ARLs. This study provided evidence regarding the curtailing effect of audit quality in GCC. Our findings suggest policymakers and reformers choose improved audit quality to reduce the possibility of larger ARL. Originality/value This study enriches the scholarship by presenting a mechanism for reducing the ARL of complex firms through higher audit quality. This study contributes to agency theory by emphasizing audit quality’s important role in emerging markets.

혁신 클러스터의 창업 지원 정책과 스타트업 성과와의 관계

This study is based on a regional innovation system theory based on Path Dependence Theory and Michael Porter's Cluster Space Theory. Path Dependence Theory explains that innovation clusters benefit from special access, relationships, better information, stronger incentives, and productivity gains that are difficult to connect at a distance (David, 1985; Arthur, 1989, Porter, 1998). Thus, the creation of clusters based on spatial concentration contributes to the creation of external economies through the specialisation of firms, the enhancement of inter-firm communication, and the 'sharing of factors of production' such as human resources and support institutions.
 In order to demonstrate this in a small-scale innovation cluster, this study uses a structural equation model to examine the effects of existing support policies and cluster agglomeration on business performance using 230 representatives of startups operating in the Songdo cluster in Incheon. The results show that the cluster's support system for investment, commercialisation and technology activation positively affects organisational member capabilities and technology development capabilities, but it fails to demonstrate the impact of public programme policies, funding and investment policies on firm profitability through organisational capabilities. This is because, due to the nature of start-ups, organisational capabilities do not immediately translate into firm profitability. Typical commercialisation support programmes often expect sales or hiring of employees in a short period of time, and the findings of this study suggest that this aspect needs to be further examined. On the other hand, the relationship between technology development capacity and profitability of public programme policies and technology development capacity and profitability of technology development policies was statistically significant, confirming their effectiveness. This suggests that there is a need for policy development that focuses on technology development capabilities rather than programmes that address the business pain points of entrepreneurs, such as training and mentoring. Therefore, innovation cluster policies should be conducted from a more long-term perspective, and only if policies for technology revitalisation are prepared in a timely manner will it be possible to achieve the goal of economic growth through startup revitalisation.

Playful finance: Gamification and intermediation in FinTech economies

This paper examines how digital gamification techniques, which incorporate video gaming elements (rather than full-fledged games) into apps, are reshaping the logics and practices of intermediation that are core to FinTech economies. First, we argue gamification brings into view socio-technical knowledges, such as behavioral science, digital marketing, and user experience (UX) and user interface (UI) design, which are increasingly important to constituting FinTech intermediation. Second, gamification features specialist firms that are presently overlooked by research into the roles of changing advanced producer services (APS) complexes in FinTech and financial intermediation. Third, gamified apps are deployed to advance competitive intermediary positions which playfully capture user attention and configure user behavior, contrasting with FinTech strategies that typically promise users’ ease of access, reduced transaction costs and personalized products and services. We illustrate these arguments through three firm-level case studies from across Asia, where the development of gamified FinTech apps has been especially prominent.

Industry specialization and tax avoidance in the Australian banking industry

PurposeThe purpose of this study is to examine the impact of industry specialization of audit partners and audit committee members on the level of tax avoidance in Australian banks.Design/methodology/approachThis study uses a multivariate regression analysis based on hand-collected data consisting of 180 observations from Australian domestic banks between 2010 and 2018.FindingsThe primary results of the empirical analysis indicate that audit partner industry specialization is negatively associated with the level of tax avoidance in Australian banks. Regarding the audit committee, the proportion of industry specialists among audit committee members reduces the magnitude of tax avoidance. These results are robust, as they hold the same for alternative measures of tax avoidance and industry specialization of audit partner and audit committee members. Results from supplementary analysis reveal that the interactive effect of both audit firm and audit partner industry specialization strengthens the auditors’ effectiveness in reducing the level of tax avoidance.Practical implicationsAs this study highlights the importance of the industry specialization in decreasing tax avoidance, it can be beneficial for policymakers to assess the impact of good governance on the level of tax avoidance in the banking industry.Originality/valueEven though the existing studies examine the link between the governance actors’ industry specialization and tax avoidance in nonfinancial firms, this paper explores the banking industry that differs from nonfinancial firms in among others; accounting and fiscal regulations. This study further provides unique evidence indicating that industry specialization of the audit partner constitutes a significant determinant of minimizing the bank’s level of tax avoidance.

Syndication network associates with specialisation and performance of venture capital firms

The Chinese venture capital (VC) market is a young and rapidly expanding financial subsector. Gaining a deeper understanding of the investment behaviours of VC firms is crucial for the development of a more sustainable and healthier market and economy. Contrasting evidence supports that either specialisation or diversification helps to achieve a better investment performance. However, the impact of the syndication network is overlooked. Syndication network has a great influence on the propagation of information and trust. By exploiting an authoritative VC dataset of thirty-five-year investment information in China, we construct a joint-investment network of VC firms and analyse the impacts of syndication and diversification on specialisation and investment performance. There is a clear correlation between the syndication network degree and specialisation level of VC firms, which implies that the well-connected VC firms are diversified. More connections generally bring about more information or other resources, and VC firms are more likely to enter a new stage or industry with some new co-investing VC firms when compared to a randomised null model. Moreover, autocorrelation analysis of both specialisation and success rate on the syndication network indicates that feature clustering of similar VC firms is roughly limited to the secondary neighbourhood. When analysing local feature clustering patterns, we discover that, contrary to popular beliefs, there is no apparent successful club of investors. In contrast, investors with low success rates are more likely to cluster. Our discoveries enrich the understanding of VC investment behaviours and can assist policymakers in designing better strategies to promote the development of the VC industry.

Graduate Employability: An Update on Behaviours Prized by Employers

Abstract There is a strong need for MSc occupational psychology courses to produce employable graduates. However, many universities and students want to know what are the skills and behaviours needed by employers? To answer this question, two job analyses were completed in a multinational management consultancy and in a boutique firm specialising in assessment and development centres (Biggs, 2010). This research highlighted eight competencies that could be developed by students making them more employable. Many students have used this competency framework, not only in our successful evening-based MSc in Occupational Psychology at Gloucestershire, but at other universities and on other degrees. As such there was a call by others to ensure that the research completed over a decade ago still had currency today and that the eight consultancy competency framework was still valid. This paper sets out an update to that original research demonstrating that the framework is still relevant today.

Mediating influence of earnings management in the nexus between audit quality and company value: new proof from Jordanian market

PurposeThis paper aims to recognize the direct influence of audit quality (AQ) on earnings management practices (EMP) and company value (CV), as well as the mediating role of EMP in the link between AQ and CV. It presents new factual proof from the Jordanian market, which is still in its early stages.Design/methodology/approachA pattern of 43 service firms listed on the Amman Stock Exchange (ASE) was collected for the timeframe (2012–2019), giving an amount of 344 firm-year observances. The data was collected from the annual reports extracted from the ASE’s database and tested with panel data analysis.FindingsThe results show that audit firm industry specialization positively affects EMP while its size and tenure do not, which implies that its industry specialization does not restrict earnings management but rather leads to an increase in opportunistic behaviors. Audit firm size and audit firm industry specialization positively affect CV, whilst audit firm tenure does not. Additionally, the findings indicate that EMP negatively affect CV, and EMP act as a mediator for the AQ–CV nexus.Research limitations/implicationsStakeholders can use the findings to enhance the capacity and effectiveness of Jordan’s fiscal market. For example, our results will boost policymakers’ eagerness to institute suitable statutes improving Jordan’s fiscal market performance. Besides, the results can assist existing and potential investors make sound adjudication by using AQ proxies and earnings management as signals to predict future company’s value.Originality/valueThe paper differentiates itself from previous papers through initiating a new proposed model by exploring the role of earnings management as a mediator in the nexus between AQ and CV by presenting new factual proof from the Jordanian market.

Audit pricing puzzle: Do audit firm industry specialization and audit report lag matter?

This study examines whether audit firm industry specialization and audit report time lag (ARL) matter in the audit fees puzzle. Specifically, we examine the moderating effect of audit time lag on the audit firm industry specialization and audit fees nexus. We use dataset from 100 quoted and unquoted Ghanaian firms from 2008 to 2018. We find that audit firm industry specialization exhibits a significant positive impact on audit fees and a significant negative effect on ARL. The results of the interaction between audit firm industry specialization and ARL also display a negative association with audit fee, signifying that specialization significantly reduces audit fee premium paid provided these experts produce the financial report in a short time. Further analysis on large and small companies, state-owned and private companies, weak and strong internal controls also indicate the significance of audit firm industry specialization and reporting time lag in explaining audit pricing puzzle. The novelty aspect of this study is the analysis of the moderation effect of audit timeliness on the audit firm industry specialization and audit fees nexus in the context of a lax enforcement of Generally Accepted Accounting Principles environment.

Effect of audit firm industry specialization on cost of debt financing: Evidence from Ghana

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A relação entre o nível de especialização da dívida e a restrição financeira de empresas brasileiras no decorrer do tempo

ABSTRACT This article sought to analyze the historical evolution, the composition, and the determinants of debt specialization of Brazilian firms traded on Brasil, Bolsa, Balcão (B3) from 2004 to 2019 in aggregate terms and in accordance with their financial constraints. This paper differs from the few studies on this topic carried out in Brazil and in other countries by promoting a discussion on the specialization of the debt structure in a context of financial constraints, as they are a relevant idiosyncrasy of emerging markets, such as in Brazil. The relevance of the study is to identify that debt specialization is a feature of only of financially constrained firms and not of the financially unconstrained ones. The impact of the study lies in a better understanding of why Brazilian firms are reducing their debt specialization, unlike other international evidences, such as the U.S. Descriptive statistics and regressions were estimated using the probit and tobit methods for 246 Brazilian firms between 2004 and 2019. The main result is that financial constrained firms are more likely to specialize their debt structure. Despite this propensity, these companies were the ones that most decreased their debt specialization between 2004 and 2019 (-27.77%), compared to the general sample (-27.5%) and unconstrained firms (-19.48%), revealing a behavior contrary to the U.S. scenario in which companies are increasingly specialists.

The relationship between the level of debt specialization and financial constraint of Brazilian firms over the time

RESUMO Este artigo buscou analisar a evolução histórica, a composição e os determinantes da especialização de dívida de empresas brasileiras negociadas na Brasil, Bolsa, Balcão (B3), de 2004 a 2019, em termos agregados e de acordo com suas restrições financeiras. Este artigo difere-se dos poucos estudos neste tópico desenvolvidos no Brasil e em outros países por promover uma discussão acerca da especialização da estrutura de dívida em um contexto de restrições financeiras, uma vez que são uma característica relevante de mercados emergentes, como o brasileiro. A relevância deste estudo está em identificar que a especialização da dívida é um atributo apenas de empresas com restrição financeira, e não de empresas sem essas restrições. O impacto deste estudo está no melhor entendimento do motivo de empresas brasileiras estarem reduzindo sua especialização de dívida, diferente de outras evidências internacionais, como as estadunidenses. Foram estimadas estatísticas descritivas e regressões usando o método de probit e de tobit para 246 empresas brasileiras entre 2004 e 2019. O resultado principal é de que empresas com restrições financeiras são mais propensas a especializar sua estrutura de dívida. Apesar dessa propensão, essas empresas foram as que mais diminuíram sua especialização de dívida entre 2004 e 2019 (-27,77%), comparado ao restante da amostra (27,5%) e a empresas sem restrições (-19,48%), revelando um comportamento contrário ao do cenário estadunidense, no qual as empresas são cada vez mais especializadas.