International Journal of Auditing Technology (5 papers in press)
Evidence of effectiveness of management excellence practices used by organisations of the third sector
by Ana Lúcia Fontes De Souza Vasconcelos, Valmor Slomsky, Vilma Geni Slomski, Liliane Cristina Segura
Abstract: This study highlights the management excellence practices used in third sector organisations under the MEM - management excellence model. The research is descriptive with a quantitative approach based on a structured and self-administered questionnaire (sent via e-mail through Google Forms platform), with 28 adaptive statements from the MEM (FNQ, 2015), eight categories in an interdependent way, with 100 (one hundred) largest non-profit organisations in Brazil, by the parameter of the number of employees, in the register of the virtual platforms ONGs Brazil and the Map of Organisations of Civil Society (MOSC). It is concluded that, based on the analysis of correspondence of the practices of the management process versus social performance, in relation to the ideal parameters of full service, the research data pointed to the challenge of the organisations studied in implementing in their internal processes accounting management practices financial planning and budgeting, and integration with planning; practices for the management of asset financing by third party capital, identifying the percentage of onerous liabilities and, finally, the monitoring of the percentage of unit investment per project.
Keywords: practices excellence management; third sector organisation.
Mandatory IFRS adoption and managers' compensation: the moderating effect of corporate governance
by Senda Wali, Olfa Kamel
Abstract: Our study aims to examine the effect of the mandatory IFRS adoption on executive compensation and the moderating effect of corporate governance in an emerging context, such as the case of Malaysia. Based on a sample of 96 companies listed on the stock exchange of Malaysia (bursa Malaysia), the results obtained from the various tests indicate that there is not significant effect between the IFRS adoption and managers compensation in Malaysia. Empirical evidence shows also that some corporate governance mechanisms moderate the relationship between IFRS adoption and executive compensation. Particularly, the independence of the nominating committee, compensation committee size and independence has a moderating effect on the relationship between IFRS and changes in compensation.
Keywords: international financial reporting standards; IFRS; executive compensation; corporate governance; Malaysia.
Special Issue on: Governance and Financial Markets
Corporate social responsibility and earnings management within the managerial psychological context
by Sourour Hamza, Anis Jarboui
Abstract: Previous studies explain the association between corporate social responsibility and earnings management from the stakeholders', legitimacy, agency and singling theories. This research aims to explore this relation from psychological and behavioural theory perspective. We deal with the psychological characteristics of the manager such as the manager's reasoning, overconfidence and affects (shame and guilt). This article shows that the manager's psychology may influence significantly his attitude toward corporate social responsibility and earnings management. Accordingly, the psychological feature may explain and determine the relation between corporate social responsibility and earnings management.
Keywords: corporate social responsibility; earnings management; psychological bias; psychology; managerial reasoning; overconfidence; affect; shame; guilt.
Valuation of the surrender option in equity-linked life insurance contracts
by Dorra Guermazi Ammous, Fathi Abid
Abstract: In this paper, we consider the surrender option, a specific embedded option in unit-linked life insurance contracts that gives the insured the right to terminate early the contract before maturity and receive a cash amount called surrender value. We use the no arbitrage approach to value the surrender option, seen as an US option. The valuation is based on the Cox et al. (1979) binomial model. The aim of this contribution is to expose the methodological approach in the particular case of the single premium contract, with focus on the surrender option valuation and to allow the exploitation of this intuitive and flexible method in order to deal with more realistic and complex valuation frameworks.
Keywords: equity-linked life insurance contract; surrender option; binomial model.
Effects of the specific characteristics of the CEO on accounting conservatism: a study in the US context
by Jamel Chouaibi, Samira Chiekh
Abstract: Our research work investigated the effect of the specific characteristics of the chef executive officer (CEO) on accounting conservatism. Based on a sample of the 100 US firms for the year 2015, the main findings show that the manager's overconfidence has a negative and significant impact on the accounting conservatism of the companies. This shows that companies had better recruit over-confident executives since they would tend to present less conservative financial reports which would enhance the future profitability of the company. Similarly, the age of the leader has a negative and significant impact on accounting conservatism because younger leaders are more confident and more tolerant of risk than older ones. However, manager's experience has no effect on accounting conservatism.
Keywords: accounting conservatism; managerial overconfidence; behavioural characteristics; US context.