The approach typically taken in expertise research has used audit experience as an expertise surrogate, but the nature of "experience" varies among auditors and among firms. One systematic difference in an auditor's experience is the level of "structure" incorporated into the employing firm's audit process. The schemata developed through experience with a structured audit technology may differ from an unstructured technology. It is hypothesized that when performing a task in a "typical" audit situation, auditors experienced with a more structured audit technology will demonstrate higher audit effectiveness compared with auditors who receive less structured audit technology experience. On the other hand, in "atypical" audit situations it is hypothesized that the unstructured firm's experienced auditors will perform better. The experiment used auditors from two Big Six accounting firms: a structured firm and an unstructured firm. The experimental task consisted of two cases. The "atypical" audit case was identical to the typical case except for the inclusion of fraudulent sales. The results support the prediction that in atypical audit situations experienced auditors from unstructured firms perform better than experienced auditors from structured firms. The results indicate that structured firms should consider developing training programs and procedures to ensure that auditors have compensating learning experiences and to provide quality audit service.

This thesis examines stock repurchases. Chapter 1 begins the study by discussing and testing several possible motivations for stock buy backs, including firm undervaluation, changes in firm capital structure, expropriation from debtholders, distribution of free cash flow, and signalling informed insiders' asymmetric information to the market. Empirical tests of these hypothesized motivations are consistent with undervaluation and signalling reductions in firm risk, but inconsistent with the capital structure, expropriation, and free cash flow hypotheses. The remainder of the thesis focuses on the determinants of repurchase premiums. Chapter 2 begins with a discussion of the mechanics of share repurchase, before developing two competing hypotheses regarding repurchase premiums. The first is the liquidity hypothesis, which posits that supply curves for shares are perfectly elastic, and repurchase premiums are a function of the substitutability and liquidity of the stock. The heterogeneity hypothesis, in contrast, holds that supply curves for shares are upward-sloping, and repurchase premiums are a function of any factor that affects either the slope of the supply curve or the demand for shares along the supply curve. Chapter 2 concludes by developing a formal model of repurchase premiums, for use in empirical tests of the alternative hypotheses, which are conducted in Chapter 3. Results of these tests are inconsistent with the liquidity hypothesis, as repurchase premiums are not found to be a function of substitutability or liquidity. Repurchase premiums, however, are consistent with the heterogeneity hypothesis, as they are found to be a significant function of the variability of stockholder consensus about the stock, and the variability of the capital gains tax lock-in effect between shareholders.

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The purpose of this paper is to analyze the current industry of proxy advisory firms, and the enormous influence they have on proxy voting at major U.S. companies. Their influence has grown a tremendous amount in the last decade but regulation of these firms is very weak, allowing them to behave in ways detrimental to the shareholders they are supposed to be helping. In order to ensure for an honest proxy advisory industry, the SEC needs to increase regulation of these firms and closely monitor their actions. This regulation must begin at the most basic level of these firm’s operations, advisory services pertaining to proxy voting.

For several decades, the Audit Committee (AC) has been a subject of substantial research interest in developed countries including the U.S.A. and the U.K. However, this still remains a relative new topic in developing countries. In an attempt to examine the scenario of AC practices from the perspective of an emerging economy like Bangladesh, this study investigates the state of AC practices in the companies listed on the Dhaka Stock Exchange (DSE). This study was undertaken through a questionnaire survey and an interview survey in order to collect the data. The respondents of these surveys consisted of four sample groups, namely: the AC Chairperson, the Company Secretary, the Head of Finance, and the External Auditor. The objective of the interviews was to complement the findings of the questionnaire survey by obtaining a greater insight into the issue. The findings of the study indicate that the overall effectiveness of ACs in Bangladesh is not at a satisfactory level. More specifically, the observations made in the study include: (i) the ACs are mostly dominated by executive directors; (ii) the expertise (in terms of qualification and experience) of AC members is not at a satisfactory level; (iii) the AC members do not devote much time to the committee’s affairs; (iv) the independent members of the committee are not adequately remunerated for the time and effort devoted to the company; and, (v) although the ACs are playing an important role in some areas including financial reporting, external auditing and internal auditing, there is still plenty of scope where the ACs can play a more proactive role. The study also found that the opinions of three sample groups namely, the AC Chairperson, the Company Secretary and the Finance Head were similar in most of the aspects of AC practices while the External Auditor group differed from the other three groups in some areas. Furthermore, the current study identified areas that need improvement in order to obtain more effective services from the ACs in Bangladesh. These include: (i) lack of qualification of the AC members; (ii) lack of experience of the AC members; (iii) majority of executive members in the ACs; and, (iv) lack of diligence of the AC members. The measures that can be taken to improve the effectiveness of ACs in Bangladesh include issues such as: (i) introducing new rules in relation to AC composition (in terms of minimum qualification and experience of AC members, and the number of independent members); (ii) enhancing the monitoring of compliance with the existing rules in relation to AC practices (instead of leaving them on a ‘comply or explain’ basis); and (iii) strengthening the internal audit functions of the company.

Despite increasing interest in the development of the accountancy profession and constitutive professional bodies in ex-colonies, little is known about the development of professional accountants as individuals. Similarly, although the continuing influence of the legacies of colonialism and imperialism on the accounting professionalisation trajectory in ex-colonies has been recognised, little attempt has been made to theorise such continuing colonial intervention as a postcolonial condition of accommodation and resistance, with implications for the development of professional accountants. This thesis fills this vacuum by employing four aspects of the critical lens of postcolonial theory – local-global nexus, psycho-existential complex, postcolonial hybridity and diaspora - to gain an insight into the development of accounting professionals in ex-colonies with specific reference to Sierra Leone. Specifically, it examines the current model of accounting professionalisation adopted in Sierra Leone and implications for the development of professional accountants in the country; investigates the historical and ideological legacies of colonialism that shaped and continue to influence the professionalisation trajectory in Sierra Leone; explores the perceptions of Sierra Leonean chartered and aspiring accountants of their professional identity in terms of their professional development within Sierra Leone; and explores the lived experiences of Sierra Leonean chartered and aspiring accountants in the diaspora and the diaspora effect on accountancy in Sierra Leone. The empirical evidence presented here emanated from two sources: a web-based survey and semi-structured interviews with Sierra Leonean chartered and aspiring accountants both within and outside the country at the time of the study. The model for developing professional accountants in Sierra Leone comprises a partnership between the local professional body, ICASL, and the British-based global body, the ACCA. A postcolonial analysis of the empirical evidence reveals that an unintended consequence of this model is that the local is co-opted within the global while the global becomes increasingly localised. The analysis also shows that the presence of a perceived global body ‘inferiorises’ the local body to the point of undesirability among local chartered and aspiring accountants. Thus the partnership has to date done little by way of developing ICASL’s capacity to ensure the development of a localised profession and professionals. Instead, it produces, within the Sierra Leone accountancy space, professional hybrids that at once pose as global as well as local accountants. This has significant implications for the local profession because many of the hybrid professional accountants who could potentially drive the local profession forward end up in the diaspora, which leaves the local profession in a weaker state. Also, given the established link between a robust accountancy profession and sustainable economic development, such professional diasporisation could negatively impact on the country’s economic development. In sum, Sierra Leone has failed to establish an accounting professionalisation model that develops professional accountants (through contextualised professional education and training) that meets the specific accounting needs of its growing economy.

Over the recent years 'transparency' or better information disclosure has been the buzzword of various corporate governance bodies due to the failures of the system of corporate governance, which arise from an agency relationship. However, there are arguments by 'free market' advocates suggesting that information is voluntarily disclosed. This study discusses and compares the disclosure of information relating to directors' behaviour in the United Kingdom, Canada, the Netherlands, France, Germany and Sweden. These countries were selected because they represent the developed countries with different accounting systems. Furthermore, they are also the board member countries of IASC and OECD. 'Transparency' relating to directors' behaviour for the six countries were measured using disclosure indices, i.e. the disclosure point average for dichotomous, modified dichotomous, weighted dichotomous and weighted modified dichotomous indices. These weighted indices were established by analysing survey responses of investment analysts. The results show that there were significant differences in the disclosure of information relating to directors' behaviour among the six countries. There is also a very low level of 'transparency' in all the countries except the United Kingdom. These results suggest that information relating to directors' behaviour is not voluntarily disclosed and therefore regulation is necessary in order for it to be more transparent as suggested by the various corporate governance bodies.

Tang Hin Kam. / Summary in Chinese. / Thesis (M.B.A.)--Chinese University of Hong Kong. / Bibliography: leaves 85-86.

Thesis (Ed.M.)--Boston University

Over the past years, participative budgeting has attracted researchers and scholars to investigate its impact on subordinates’ behaviours. Earlier empirical studies have investigated this impact as either a direct relationship, with the influence of a moderator or an antecedent or with both moderators and antecedents. Yet, prior studies’ findings were inconsistent with each other. This study depicts that participative budgeting is governed by the concept of Social Capital and its different dimensions, relational, structural and cognitive. Scholars conceptualised social capital as a set of social resources available through subordinates’ relations, which empower their communication with a variety of individuals. Further, this study investigates the impact of participative budgeting on subordinates’ behaviours by implementing the Throughput model. This model is a decision making model with four factors, linked with six different pathways. The factors are the perception of the individual, the information available for decision making, judgement and finally the decision made. The linking pathways, moreover, would reflect the rationalisation of the individual upon the availability of those different factors. This study examines how the employment of the throughput model can assist in deducting the impact of participative budgeting on subordinates’ behaviours. This study was implemented among Saudi Arabian mid-level managers working in manufacturing listed companies. A total of 283 surveys were analysed using a second generation statistical tool, SEM-PLS. The results reveal performance and satisfaction were impacted by their relational dimension of social capital. In other words, mid-level managers’ relations with other individuals will have a significant impact on their performance and satisfaction. The usage of social capital and the implementation of the throughput model advance the understating of the thinking process of those mid-level managers and ultimately the impact on their behaviours within participative budgeting settings.