This study aimed to investigate the effect of the independent commissioner and of the characteristics of the audit committee (measured by auditor size, independence, expertise, and activities) on the efficient or opportunistic earnings management. In terms of those companies listed on Indonesia Stock Exchange. The sample consists of 186 observations of those manufacturing companies in Indonesia Stock Exchange during the 2013-2018. Using panel regression fixed effect method, independent commissioners are found to have a significant effect on reducing earnings management. Based on The Positive Accounting Theory, the efficient perspective will occur when the compensation contract and internal control system, including monitoring done by the board of commissioners, limit the common view opportunistic manager and motivate the manager to choose the right accounting policy. The effective monitoring conducted by an independent commissioner can reduce agency costs because management prioritizes the best interests of shareholders by maximizing company resources. Furthermore, it was found that audit committee size can reduce earning management. It is due to the wide range of skills possessed by audit committee members to exercise oversight over management. Audit committees with accounting and financial expertise can reduce earnings management. This part of finding indicates that audit committee may tend to uphold conservative as accounting mechanism. Accounting conservatism has an important role to play in restricting opportunistic management behavior.

Two professional service organizations, an auditor and a tax agent, provide services to the same target clients. Taiwan established a new regulatory system for tax agents in 2004, which directly enhances their ability to compete with auditors. From the perspective of the economic theory of regulation, this study investigates the indirect effects of the new regulatory system on the business of auditors. We focus on auditors in proprietorship audit firms and divide the sample period into before and after 2004. This study establishes a cross-sectional regression equation to test our hypotheses. We classify the types of business into three levels, total amount, three categories and six individual items. Based on the 1989–2017 Survey Report of Audit Firms in Taiwan, we find that auditors perform better after 2004, indicating that increased competition leads to positive sustainability for auditors. Further results show that the effects of the regulation on auditors’ performance are greater after 2004, additional evidence of the positive indirect effect on auditors. This study contributes to the literature, provides public policy implications to regulators and contributes managerial information to auditors.

Purpose To maintain auditor independence, Section 201 of the Sarbanes–Oxley Act of 2002 (SOX) imposes restrictions on audit firms in rendering management advisory services (MASs) to audit clients. Responding to the requirement, audit firms establish a strategic alliance with consulting companies to expand their scope of services to alleviate the impairment of auditor independence. Taiwan follows the spirit of SOX in related laws and regulations. To investigate the effects of SOX on Taiwanese auditing industry, this study aims to examine the relationship between MASs and operating performance of audit firms. Design/methodology/approach This study obtains empirical data from the 1989–2017 Survey Report of Audit Firms in Taiwan, published by the Financial Supervisory Commission (FSC). FSC administers the survey across all registered audit firms annually to collect business information on the auditing industry for macro-economic analysis and industrial policy development. The authors group audit firms into three categories: national, regional and local firms. Based on the structure-conduct-performance (S-C-P) theoretical framework, this study establishes the following cross-sectional regression equation to test the authors’ hypotheses. Findings Main results indicate that national firms have better post-SOX firm and alliance performance. Both firm and alliance MASs contribute more to the performance of national firms after SOX. Practical implications This study claims that national firms establish alliance with consulting companies for resource sharing but regional and local firms for tax-saving. Originality/value Consistent with the economic theory of regulation and resource-based theory, SOX matters in Taiwan.

Universities must be able to predict opportunities and challenges with the right interest in the students choosing majors in higher education in the digitalization era. This study provides the right strategy for FEB UDINUS by proposing a structural hierarchical model to analyze changes in student decision-making patterns in choosing the Faculty of Economics and Business at Dian Nuswantoro University in the digital market era by taking the context of sustainable value. The data collection techniques used in-depth interviews to determine student’s decision-making criteria in choosing FEB majors. The analysis of decision making factors was processed using TOPSIS (Technique for Order Preference by Similarity to Ideal Solution). The results of this study show the ranking strategy of the most appropriate ranking such as the strategy to find credible partner, the strategy to provide additional community benefits, the strategy to educate the community, the strategy for building collaboration between students, the strategy for creating iconic brands, the strategy for building collaboration between faculty and students, the strategy for building new learning models, and the strategy for building a new learning culture. Keywords:Sustainable strategy, DSS, Topsis Method

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