Voluntary Switching Research Articles

Switching Costs and Market Power in Auditing: Evidence from a Structural Approach

ABSTRACT This study provides novel evidence on the magnitude of switching costs in auditing. Using a discrete choice approach, we infer switching costs from clients’ audit firm choices. The demand estimation reveals that switching costs are significant and vary by direction, with the highest costs associated with switching from non-Big 4 to Big 4 audit firms. Counterfactual analyses of forced switches suggest that switching costs are substantial, ranging from 0.7 billion U.S. dollars (14.2 percent of audit fees) to 1.2 billion U.S. dollars (24.0 percent of audit fees) when aggregated across all clients. Counterfactual analyses of voluntary switching show that the audit market would become highly dynamic and more concentrated if switching costs were removed. Additionally, clients would gain consumer surplus of up to 306 million U.S. dollars (5.4 percent of audit fees) in such a scenario. Overall, our study documents the importance of switching costs for understanding audit market dynamics. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M42; M48; L11; L84.

Factors Affecting Voluntary Switching of Public Accounting Firms: What is the Role of Auditor Reputation?

Factors Affecting Voluntary Switching of Public Accounting Firms: What is the Role of Auditor Reputation?

The impact of emotional states on bilingual language control in cued and voluntary switching contexts

This study investigated bilingual language control in emotional contexts. We assessed the language switching and mixing performance of two groups of Chinese-English bilinguals in picture naming under neutral, negative, and positive emotional states. One group switched languages voluntarily while another matched group switched languages according to external cues. We found that negative state impaired proactive control, whereas positive state seemed to improve proactive control. Importantly, the detrimental effects of negative state could be proportional to the cognitive demands imposed by the naming context. However, negative states disrupted proactive control in voluntary but not cued naming, where the proactive control demands were comparable. This finding suggests that the control system selectively compensates for the emotional disruption of control in a cued-naming context requiring strict control but not in a voluntary-naming context preferring less strict control. Accordingly, we tentatively proposed a theoretical account of the adaptive control mechanism in emotional contexts. These findings would extend the Adaptive Control Hypothesis to more naturalistic settings.

Learned switch readiness via concurrent activation of task sets: Evidence from task specificity and memory load.

Cognitive flexibility increases when switch demands increase. In task switching experiments, repeated pairing of flexibility-demanding situations with specific contexts leads subjects to become more prepared to adapt to changing task demands in those contexts. One form of such upregulated cognitive flexibility has been demonstrated with a list-wide switch probability (LWSP) effect, where switch costs are smaller in lists with frequent switches than in lists with rare switches. According to a recent proposal, the LWSP effect is supported by a concurrent activation mechanism whereby both task rules are kept available simultaneously in working memory. We conducted four experiments to test two key features in this concurrent activation account of LWSP effects. First, we asked whether the LWSP effects are limited to only the trained tasks, and second, we asked whether concurrent working memory load would reduce the LWSP effects. In Experiment 1, we replicated and extended previous findings that the LWSP manipulation modulates both performance (switch costs) and voluntary switch rates, indicating that context-driven increases in flexibility are generalizable so long as the task-sets remain the same. Results of Experiments 2 and 3 showed that novel tasks do not benefit from the concurrent activation of the two other tasks, suggesting that the LWSP effect is task specific. Experiment 4 showed that holding additional information in working memory reduces the LWSP effect. While these findings support the hypothesis of concurrent activation underlying the increased flexibility in the LWSP effect, caveats remain; additional research is needed to further test this account.

Benefits of free language choice in bilingual individuals with aphasia

ABSTRACT Background Forced switching between languages poses demands on control abilities, which may be difficult to meet for bilinguals with aphasia. Freely choosing languages has been shown to increase naming efficiency in healthy bilinguals, and lexical accessibility was found to be a predictor for language choice. The overlap between bilingual language switching and other types of switching is yet unclear. Aims This study aimed to examine the benefits of free language choice for bilinguals with aphasia and to investigate the overlap of between- and within-language switching abilities. Methods & Procedures Seventeen bilinguals with aphasia completed a questionnaire and four web-based picture naming tasks: single-language naming in the first and second language separately; voluntary switching between languages; cued and predictable switching between languages; cued and predictable switching between phrase types in the first language. Accuracy and naming latencies were analysed using (generalised) linear mixed-effects models. Outcomes & Results The results showed higher accuracy and faster naming for the voluntary switching condition compared to single-language naming and cued switching. Both voluntary and cued language switching yielded switch costs, and voluntary switch costs were larger. Ease of lexical access was a reliable predictor for voluntary language choice. We obtained no statistical evidence for differences or associations between switch costs in between- and within-language switching. Conclusions Several results point to benefits of voluntary language switching for bilinguals with aphasia. Freely mixing languages improved naming accuracy and speed, and ease of lexical access affected language choice. There was no statistical evidence for overlap of between- and within-language switching abilities. This study highlights the benefits of free language choice for bilinguals with aphasia.

Flexibility by association? No evidence for an influence of cue-transition associations on voluntary task switching.

Some situations require cognitive flexibility, whereas others call for cognitive stability. Recent theories posit lower-level associative learning processes as the basis of contextual control. The present study incorporates six experiments to investigate whether cognitive flexibility can be triggered by task-irrelevant color cues in the task-switching paradigm. In the first learning phase, the cue colors were repeatedly paired with certain task transitions (repetition, switch) without explicit instruction. In the following test phase, voluntary trials were intermixed (where participants can freely choose the task) to measure the voluntary switch rate (VSR) in response to the color cues. For Experiment 2a, cue size and duration were increased, and the learning phase was extended. Additionally, in Experiment 2b, the second half of the test phase consisted of 100% free choices. Experiment 3 contained catch trials to ensure cue processing. In Experiment 4, two tasks of unequal difficulty were used. Experiments 1-4 provided evidence for the null hypothesis indicating no effect of the transition association on the VSR (all BF₁₀ < 0.265). The control Experiment 5 ruled out that the null effect was due to the insensitivity of the paradigm. Therefore, flexibility by association appears to be harder to achieve than recent accounts suggest. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

Cognitive and neural mechanisms of voluntary versus forced language switching in Chinese-English bilinguals: an fMRI study.

The ecological validity of bilingual code-switching has garnered increasing attention in recent years. Contrary to traditional studies that have focused on forced language switching, emerging theories posit that voluntary switching may not incur such a cost. To test these claims and understand differences between forced and voluntary switching, the present study conducted a systematic comparison through both behavioral and neural perspectives. Utilizing fMRI alongside picture-naming tasks, our findings diverge from prior work. Voluntary language switching not only demonstrated switching costs at the behavioral level but also significantly activated brain regions associated with inhibitory control. Direct comparisons of voluntary and forced language switching revealed no significant behavioral differences in switching costs, and both shared several common brain regions that were activated. On the other hand, a nuanced difference between the two types of language switching was revealed by whole-brain analysis: voluntary switching engaged fewer language control regions than forced switching. These findings offer a comprehensive view of the neural and behavioral dynamics involved in bilingual language switching, challenging prior claims that voluntary switching imposes no behavioral or neural costs, and thus providing behavioral and neuroimaging evidence for the involvement of inhibitory control in voluntary language switching.

Push – pull – mooring determinants of non-Muslims’ withdrawal from Islamic banking: evidence from Malaysia

PurposeThis study aims to attempt to investigate the factors that influence non-Muslims’ withdrawal behavioural intention from Islamic banking in Malaysia.Design/methodology/approachThe push–pull–mooring approach is used to examine the determinants of withdrawal intention by non-Muslims from Islamic banking in Malaysia. Variables used in this study include religiosity (RELG) under push, deposit guarantee (DG), rate of return (RR), Islamic banks’ specific factors (IBSF) under pull and mooring factors as social influence (SI) and voluntary switching (VS) as the determinants of withdrawal intention from Islamic banking. In this study, the SPSS Statistics Version 22 and smart partial least squares were used to measure the withdrawal level.FindingsThree variables, namely, SI, RR and IBSF are found to significantly influence the withdrawal behaviour intention. Meanwhile, three other variables, namely, RELG, DG and VS are not significant.Practical implicationsThis study provides valuable insights pertaining to non-Muslim consumer withdrawal behaviour from Islamic banks. Bank managers, marketers and regulators could use these findings in developing effective strategies to increase and retain customer withdrawal.Originality/valueThis study expands the understanding of key determinants of the non-Muslim withdrawal behaviour from Islamic banks in Malaysia. To the best of the authors’ knowledge, this research is among the pioneer empirical study to assess the issue.

Dual-tasking while using two languages: Examining the cognitive resource demands of cued and voluntary language production in bilinguals.

The way bilinguals switch languages can differ depending on the context. In cued dual-language environments, bilinguals select a language in response to environmental cues (e.g., a monolingual conversation partner). In voluntary dual-language environments, bilinguals communicating with people who speak the same languages can use their languages more freely. The control demands of these types of language-production contexts, and the costs of language switches, have been argued to differ (Adaptive Control Hypothesis). Here, we used a dual-task paradigm to examine how cued and voluntary bilingual production differ in cognitive resources used. Forty Mandarin-English bilinguals completed two language-switching paradigms as the primary task; one in response to cues and one while using two languages freely. At the same time, they also had to respond to the pitch of tones (secondary task). Response times (RTs) on the secondary task, as well as naming times on the primary task, were shorter under the voluntary- than cued-naming condition. Task workload ratings were also higher under the cued- than voluntary-naming condition. This suggests more attentional resources are needed in a cued-naming context to monitor cues and select languages accordingly. However, the costs associated with switching from one language to the other were similar in both voluntary- and cued-naming contexts. Thus, while cued-naming might be more effortful overall, cued and voluntary switching recruited similar levels of cognitive resources.

The role of objective and introspective switch costs in voluntary task choice.

Human beings are cognitive misers. One facet of this effort avoidance is the reluctance to voluntarily switch tasks when repeating the same task is allowed. Yet participants voluntarily switch despite the resulting costs. This paradox might be resolved if the individual switching ability or sensitivity is considered. Here, we investigated whether the voluntary switch rate (VSR) is governed by the objective or the subjective (introspective) switch costs. Three experiments were conducted utilizing voluntary task switching with forced and free task choices intermixed. In Experiments 1 and 3, objective switch costs were measured on forced tasks, and subjective switch costs were calculated from (introspectively) estimated reaction times in a separate phase. In Experiment 2, objective and subjective costs were measured in the same phase. In Experiments 2 and 3, we additionally manipulated the forced switch rate. Results show that objective and subjective switch costs were lower in blocks with higher forced switch rates. The objective switch costs predicted VSR in Experiments 1 and (partially) 3. The subjective switch costs predicted the VSR only in Experiment 3 (the lower the costs, the higher the VSR). Hence, the present study offers first insight into under which circumstances introspection guides decision-making during voluntary task switching. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Post-switch Effectiveness of Etanercept Biosimilar Versus Continued Etanercept in Rheumatoid Arthritis Patients with Stable Disease: A Prospective Multinational Observational Study.

To better inform clinicians about the use of etanercept biosimilar (SB4) in patients with rheumatoid arthritis (RA), COMPANION-B, a prospective real-world observational study, evaluated the effectiveness of the voluntary switch from originator (etanercept, ETN) to SB4 in patients with stable RA (low-disease activity/remission). The study recruited adult patients (18years or older) with RA (2010 American College of Rheumatology criteria) prescribed ETN as their first or second biologic for at least 6months across 14 sites in Canada and five in Australia. Patients had stable disease (Disease Activity Score-28 using erythrocyte sedimentation rate [DAS28-ESR] less than 3.2) at enrollment with no evidence of flare within the previous 3months. Concomitant disease-modifying antirheumatic drugs (DMARDs) were permitted. Patients could elect to continue ETN or voluntarily switch to SB4 in consultation with their doctors. The primary effectiveness measure was the proportion of patients with disease worsening (defined as a DAS28-ESR increase of at least 1.2 from baseline and minimum score of at least 3.2 or a defined modification in RA treatment) during 12months of follow-up. The secondary effectiveness measure was the proportion of patients with disease worsening at month6. Serious adverse events (SAEs) and non-serious adverse reactions (NSARs) were recorded. Of 163 patients enrolled, 109 elected to continue on ETN and 54 switched to SB4; 65.8% of patients received non-biologic DMARD(s), 52.6% methotrexate, and 10.5% oral corticosteroid(s). At month12, the proportion of patients with disease worsening was comparable in the ETN group (22.8% [95%CI 15.0-32.2]) and SB4 group (17.6% [95%CI 8.4-30.9]). Similarly, the proportions of patients with disease worsening were also comparable at month6 (ETN: 7.9% [95%CI 3.5-15.0]; SB4: 7.8% [95%CI 2.2-18.9]). SAEs were low and similar across both groups (ETN: 8.7%; SB4: 5.7%). NSARs were slightly higher in the SB4 vs. ETN group (13.2% vs. 2.9%). SB4 demonstrated comparable effectiveness to ETN over 12months in patients with stable RA who voluntarily switched to the biosimilar in a real-world setting.

Keep flexible—Keep switching? Boundary conditions of the influence of forced task switching on voluntary task switching.

Frequent forced switching between tasks has been shown to reduce switch costs and increase voluntary switch rates. So far, however, the boundary conditions of the influence of forced task switching on voluntary task switching are unknown. Thus, the present study was aimed to test different aspects of generalizability (across items, tasks, and time) of switching-induced flexibility established in forced-choice trials on voluntary switching in free-choice trials. To this end, stimuli and tasks were systematically varied between forced- and free-choice trials in a hybrid task-switching paradigm. In a series of three experiments, we manipulated forced-choice switch probability (25% vs. 75%) and found that switching-induced flexibility generalizes to new items, but arguably not to new tasks. This task-specific effect is rather short-lived, limited to the first free-choice trial following a forced-choice trial. Underlying mechanisms of switching-induced flexibility, the versatility of flexibility and implications for the trainability of cognitive flexibility are discussed. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

PENGARUH OPINI AUDIT DAN AUDIT REPORT LAG TERHADAP VOLUNTARY AUDITOR SWITCHING DENGAN FINANCIAL DISTRESS SEBAGAI PEMODERASI PADA PERUSAHAAN PERINDUSTRIAN YANG TERDAFTAR DI BEI

The purpose of this study was to examine the effect of Audit Opinion and Audit Report Lag on Voluntary Auditor Switching with Financial Distress as a moderating variable. The data analysis method used is the classical assumption test such as: data normality test, multicollinearity test, autocorrelation test and heteroscedasticity test as well as hypothesis testing such as multiple linear regression test, interaction test or what is commonly called moderated regression analysis, individual parameter significant test (partial test), simultaneous significance test (simultaneous test) and coefficient of determination test (R2). The result of the multiple linear regression equation is Y= -0.915 + 0.024 X1 + 0.016 X2 - 0.088 M - 0.023 X1*M + 0.001 X2*M + e. Partially, audit opinion has no significant effect on voluntary auditor switching, audit report lag has no significant effect on voluntary auditor switching and financial distress has no significant effect on voluntary auditor switching. Based on the moderated regression analysis test partially financial distress cannot moderate the effect of audit opinion on voluntary auditor switching and financial distress cannot moderate the effect of audit report lag on voluntary auditor switching and simultaneously financial distress cannot moderate the effect of audit opinion and audit report lag on voluntary switching auditors.

Control mechanisms in voluntary versus mandatory language switching: Evidence from ERPs

The present study measured event-related potentials (ERP) and behavioral performance to examine whether inhibitory control is involved in voluntary language switching, and if so, to explore the differences in inhibitory control between voluntary and mandatory language switching. Unbalanced Chinese-English bilinguals completed two picture naming tasks: one involving mandatory language switches and one in which participants could voluntarily switch between the two languages. Behavioral data showed significant switch costs and a reversed language dominance effect in both switching tasks. Critically, both effects were larger in mandatory compared to voluntary switching. ERP results revealed that neural switch costs during mandatory switching was significantly different than voluntary switching in both N2 and LPC amplitudes. In contrast, a significant difference in the reversed language dominance effect between both tasks was only observed in LPC amplitude. Together, these findings suggest the involvement of inhibitory control in both mandatory and voluntary language switching, but the degree of inhibition and the time-course of control processes between both tasks appear to be distinct.

To switch or to repeat? Commonalities and differences in the electrophysiological correlates of preparation for voluntary and forced task choices.

When switching tasks in the laboratory, either the experimenter or the participant can decide which task comes next. So far, this kind of forced and voluntary task switching is usually investigated in isolation. However, in our everyday life, switching between different tasks and goals often depends both on current situational demands and on our intentions. While research has mainly focused on differences between forced and voluntary switching, it is still unclear whether, and if so, which neural processes are shared between both switch types. To identify these, we compared electrophysiological preparatory activity in blocks of randomly intermixed voluntary and forced task-switching trials. We further manipulated the forced switch rate (20% vs. 80%) between blocks to de-confound voluntariness with switch frequency and to investigate how switch frequency effects influence preparatory potentials. ERP analysis revealed an enhanced early parietal activity pattern in the P3b time window on voluntary trials, possibly reflecting early traces of a decision process. A later pre-target negativity was enhanced on forced as compared to voluntary trials. Multivariate pattern analyses revealed that a common preparatory activity on both forced and voluntary switch trials can be found in the switch positivity time window, which we interpreted as an index of a common endogenous task preparation process.

Investigation of code-switching cost in conversation and self-paced reading tasks

Aims and objectives: Studies of code-switching (CS) in bilingual speakers using laboratory tasks have been equivocal on whether CS is cognitively demanding. The goal of this study was to examine time costs at the juncture of a CS in a more ecologically valid experimental paradigm. Methodology: English (L1)–French (L2) bilingual speakers performed two tasks. The primary experimental task was a novel paradigm that elicited voluntary code-switches in conversation with a bilingual interlocutor. A silent self-paced reading task was used to compare with a laboratory task with involuntary switches. Data and analysis: Intersyllabic durations (conversation task) and reading times (reading task) were analyzed. CS cost was the time difference between code-switches and matched non-switches. Cost-switching costs for each switch direction (English-to-French and French-to-English) and type of switch (alternations and insertions) were also compared. Findings: Code-switches in conversation were associated with a time cost, and the magnitude was comparable in both directions although speakers more frequently switched from French-to-English. In self-paced reading, switching costs were observed only for switches into the dominant language. Across both tasks, there were no differences in CS time cost between insertions and alternations. Originality: This study reports a novel measure of CS costs in conversation, intersyllabic duration, and provides a cross-task comparison in the same group of bilingual speakers to better inform theories of CS. Implications: Bilingual speakers experience a time cost when making voluntary switches in conversations. The symmetrical switch costs suggest that both languages have similar activation levels throughout the conversation, and the cognitive costs arise from the act of momentarily switching languages, irrespective of their dominance. In self-paced reading, cognitive costs arise from disturbing the status quo of relative activation-inhibition of each language adopted to perform the task. The comparable CS time cost for insertions and alternations suggests similar cognitive control and linguistic planning mechanisms for both types of switches.

Ecological validity and bilingual language control: voluntary language switching between sentences

ABSTRACT Few language switching studies have found conditions in which there is no significant cost to switching languages. Since language-switch costs are a measure of language control, this could be seen as evidence for the ubiquity of this process in bilingual language production. However, one claim is that ecologically valid bilingual contexts lead to small or even absent switch costs. To further investigate this, we examined voluntary language switching between sentences. This ecologically more valid setup (compared to the more prominent involuntary language switching setup with single word production) resulted in switch costs for sentences produced in the second language, but no significant switch costs for sentences produced in the first language, whereas involuntary language switching between sentences resulted in substantial switch costs across both languages. These results indicate that more ecologically valid contexts can lead to circumstances that might require little to no language control.

EARNINGS RESPONSE COEFFICIENT: ANALISIS BERDASAR AUDIT SWITCHING DAN KEPEMILIKAN ASING DALAM PERSPEKTIF TEORI SINYAL

This research has detected that the effect of audit switching and foreign ownership of Earnings Reponse Coefficient. This type of research is an empirical study. Dataobtained from the Indonesia Stock Exchange web www.idx.co.id and www.yahoofinance.com with purposive sampling method with a total of 211 companies in the 2014-2017 period. And the method of analysis in this study is multiple linear regression method. Based on the results of the hypothesis testing in this study shows that: 1) Audit Switching has no effect on Earnings Response Coefficient, this study is seen from voluntary switching audits of all manufacturing companies for the period 2014-2017 and not identified between Big 4 and non Big 4 KAP. 2) Foreign ownership has an effect on Earnings Response Coefficient, namely the presence of foreign ownership gives a positive signal to the company regarding stock prices and earnings quality.

Investigating anticipatory processes during sequentially changing reward prospect: An ERP study

Performance-contingent reward prospect modulates the stability-flexibility balance in voluntary task switching. High reward prospect typically increases stability, indicated by a low voluntary switch rate (VSR). But this effect depends on the immediate reward history: Only when a high reward repeats (reward remains high), stability is increased. In contrast, when reward increases (high reward following low reward) cognitive flexibility is promoted, indicated by a relatively high VSR. To investigate the underlying mechanisms of changing reward expectations during voluntary task choice, we conducted two experiments and measured reward cue-locked event-related potentials (P2, P3b, CNV). The experiments yielded consistent findings: The P2 was stronger in response to high vs. low reward reflecting an early attentional boost by high reward anticipation. The P3b was highest in increase, intermediate in remain-high, and lowest in low reward trials suggesting responsiveness to working memory updating and motivational arousal. Finally, the CNV increased over time and was sensitive to both reward magnitude and sequence with the lowest amplitude in reward remain-low trials suggesting that preparatory control only increases when worth the effort. Taken together, early attentional processes (P2) were boosted by mere reward magnitude, while later processes (P3b, CNV) were sensitive to both reward magnitude and its sequence.

Switching behaviour in activity-based working environments: an exploration of the reasons and influencing factors

PurposeA tendency that employees do not frequently switch between different activity settings was reported in previous studies, which are opposed to underlying assumptions of activity-based working (ABW) offices. Although ABW is increasingly becoming a standard office concept, employees’ switching behaviour has not been studied in depth. This study aims to understand employees’ switching behaviour by identifying reasons (not) to switch and various influencing factors of switching behaviour.Design/methodology/approachAn online survey was conducted across Switzerland and Belgium, and 124 respondents participated in the questionnaire. The mismatch model was developed to examine whether the misfit between either activity or preference and work environment leads to switching to another place in the office.FindingsResults show that most of the respondents switch multiple times a day, which runs counter to the previous studies. Furthermore, this study presented clear evidence that mandatory switching frequency is independent of various factors presented in the study, indicating that the distinction between mandatory and voluntary switching is valid. Besides, results identified privacy, acoustics, distraction, proximity to team/colleagues as reasons to switch and as reasons not to switch, place preference/attachment, proximity to the team were determined.Originality/valueThis study contributed to better understanding switching behaviour by defining, distinguishing switching behaviour, identifying reasons (not) to switch and influencing factors of switching frequency. In addition, this study compared the misfit between activity and environment and the misfit between preference and environment as push factors leading to switching behaviour. These findings can provide more knowledge of switching behaviour to workplace or facility management practitioners.