Environmental social controls and capital investments: Australian evidence

Wood, Dorothy; Ross, Donald

doi:10.1111/j.1467-629x.2006.00180.x

Cited by 30 publications

(11 citation statements)

References 36 publications

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“…The study showed a high degree of self-insight into the decision-making processes of EAs, given that the rankings of the self-reported weights were the same as the rankings according to effect sizes, and the weights and effect sizes were very close. This degree of self-insight demonstrated by Jordanian EAs is consistent with other studies in other countries using EAs, accountants (Savich, 1977;Solomon & Shields, 1995), and professional managers (Gibbins & Swieringa, 1995;Wood, 2002), The difference in judgment means across treatments (Slovic, 1969 With respect to the objectivity of IAs, it can be argued that auditors, whether internal or external, can never be totally independent and free of bias or other considerations (Duska, Duska, & Ragatz, 2011). Auditors, however, are required by international audit standards to be free enough such that their ability to express an unbiased audit opinion is not significantly compromised (McGrath, Siegel, Dunfee, Glazer, & Jaenicke, 2001).…”

Section: Resultssupporting

confidence: 89%

External auditor reliance on the work of the internal audit function in Jordanian listed companies

et al. 2018

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This study investigates the factors that influence external auditor (EA) reliance on the work of the internal audit function (IAF) in Jordanian listed companies (JLCs). It evaluates the effect of internal auditor objectivity, competence and work performance as perceived by senior Jordanian EAs. The study employs a mixed method comprising a survey‐based factorial experiment in addition to semi‐structured interviews. The results, based on 35 fully‐crossed factorial experiments and nine interviews with senior EAs and external audit managers, show that IAF objectivity has the greatest influence on the EA's decision to rely on the work of the IAF, followed closely by IAF competence and IAF work performance. Further, there was a significant interactive effect between objectivity and competence, indicating that the EAs do not consider the influence of individual factors in isolation. In interviews, the EAs put forward many reasons for the importance of all three of the independent variables. Our results have direct implications for organizations as well as for professional bodies and regulatory authorities charged with encouraging the development of IAFs.

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Section: Resultssupporting

confidence: 89%

External auditor reliance on the work of the internal audit function in Jordanian listed companies

et al. 2018

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“…The method has been successfully applied in numerous studies of business decision making such as auditing (e.g., Ashton, 1974;Brown & Solomon, 1990Hooper & Trotman, 1996), capital investments (e.g., Wood & Ross, 2006), marketing decision making (e.g., Forlani, 2002) and managerial appointments (e.g., Hitt & Barr, 1989) as well as extensively in studying judgement processes in financial analysis (e.g., Mear & Firth, 1987Milne & Chan, 1999;Slovic, 1969;Slovic, Fleissner, & Bauman, 1972;Wright, 1977). Use of the technique is now widely accepted (Keppel, 1982;Trotman, 1996).…”

Section: Methodsmentioning

confidence: 99%

Is Underpricing an Appropriate Proxy for Studying IPO Certification?

Hopkins¹,

Ross²

2014

IJEF

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The dominant technique used to evidence certification effects at IPO is to employ the degree of underpricing as a proxy for certification. We investigate the appropriateness of this proxy in the context of private equity backed IPOs. Our results reveal an incongruence between certification by the vendor and expectations of underpricing. We also find expectations of underpricing are driven by reduced informational asymmetries between the vendor and the vendor's broker rather than between the vendor and the market. Our conclusion is that underpricing is too noisy a variable to be a reliable proxy for certification in this context.

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“…Using factorial experimentation, Wood and Ross (2006) found that Australian managers would be most responsive to changes in stakeholder opinion. Changes in regulation and subsidies would each account for about a quarter of total ESC infl uence, while changes in mandatory disclosure would have little effect.…”

Section: Literature Reviewmentioning

confidence: 99%

Do environmental social controls matter to Australian capital investment decision‐making?

Ross

Wood

2008

Bus Strat Env

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This paper looks at how environmental social controls (ESCs), namely mandatory disclosure, regulation, subsidies and stakeholder opinion, are perceived in terms of their relative importance by Australian capital investment managers. We fi nd that regulation and stakeholder opinion are the most important ESCs. Subsidies generally have less infl uence, while mandatory disclosure has almost no impact on capital investment decisions. However, even the more important ESCs have much less than impact than mainstream fi nancial and strategic factors. Policy makers seeking to infl uence capital investment managers will have to increase the power levels of the various ESCs if they are to change behaviour. Copyright

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Environmental social controls and capital investments: Australian evidence

Cited by 30 publications

References 36 publications

External auditor reliance on the work of the internal audit function in Jordanian listed companies

External auditor reliance on the work of the internal audit function in Jordanian listed companies

Is Underpricing an Appropriate Proxy for Studying IPO Certification?

Do environmental social controls matter to Australian capital investment decision‐making?

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