Big Perception Research Articles

Does the Business Press Influence Equity Investors’ Perception of Big 4 Audit Quality?

We investigate whether the business press influences equity investors’ perception of the credibility of the Big 4 for providing high-quality audits. We find that the extent of audit-related negative business press coverage of a Big 4 is associated with lower earnings response coefficients (ERC) for clients, negative client abnormal returns on the days of the news release, and a higher percentage of votes against auditor ratification. Importantly, these results are robust to controlling for other information sources such as client news, audit quality indicators (restatements and auditor litigation), and regulator press releases. Also, the extent of Big 4 negative business press coverage is associated with a lower probability of gaining new clients and a greater probability of client misstatements, suggesting that coverage is diagnostic of audit quality. The effects for ERCs and abnormal returns are concentrated in clients with low dedicated institutional ownership and high earnings uncertainty. Overall, this evidence is consistent with the business press influencing investors’ perception of Big 4 audit quality.

Challenges related to flotation cleaning of oil shales. Issues due to compositional and surface features and post-grinding surface behavior

Oil shale is an important energy resource alternative. Despite its recognition as an unconventional oil source, oil shale is also considered as an important solid fossil fuel alternative to coal and lignites due to the solid form and remarkable extent of organic content. Utilization possibilites, similar to coal and lignites, have been considered in the past decades and direct use of oil shales in thermal power production has been possible in countries like Estonia and China. In the perspective of utilization of oil shales in a similar manner to coal and lignites, problems and restrictions related to the inorganic ash-making and potentially pollutant constituents are applied. In this respect, cleaning of this important energy source through mineral processing methods, particularly by flotation, is an outstanding option. However, on the basis of unique features and distinctive characteristics, treatment of oil shales like a type of coal is a big perception and may be highly misleading. This paper discusses specific challenges regarding flotation behavior of oil shales with reference to the surface characteristics and behavior of oil shale entities – probably the most important aspect that determines the efficiency and success of the flotation based cleaning process.