PurposeThis study aims to understand the behavior of internal auditors towards quality and analyze if some organizational and individual factors influence internal audit quality.Design/methodology/approachThe sample is constituted by Portuguese internal auditors, and the methodology includes the use of partial least squares – structuring equation model (PLS-SEM) to test the hypothesis under study.FindingsThe results show that there is a negative relationship between reduced audit quality practices (RAQP) and organizational commitment and independence. The results found that time pressure positively affect RAQP. There is no evidence that perceived organizational support (POS) and risk profile are determinants of RAQP.Originality/valueThis work contributes by extending the literature about the determinants of internal audit quality, but also to the practice by understanding the factors that influence the behavior of internal auditors and by making recommendations that allow an improvement of the quality of internal auditing.
The Portuguese economy has experienced a recent economic recession that forced firms to look for different ways to finance themselves in order to be able to respond and overcome the crisis. This study investigates whether the capital structure of new ventures differ as a response to the crisis. Drawing on a panel of 75,826 Portuguese new ventures (241,284 venture-year observations) established between 2006 and 2015 and followed until 2017, the results show that new ventures capital structure responds to economic downturns. New ventures founded during the crisis have higher values of debt-ratio, for both total and short-term debt ratio, higher profitability, higher growth, and lower tangibility. Furthermore, ventures that are financed mainly with equity resort to less short-term debt have higher profitability and liquidity but experience lower growth. This study informs managers, practitioners, and policymakers that new ventures' capital structure is responsive to an economic downturn and has implications for the establishment of ventures during recessionary periods.
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