Reputation concerns and herd behavior of audit committees – A corporate governance problem

Corporate Social Responsibility of Land Transportation Companies Reputation in Indonesia

“…This is because, among other things, the Audit Committee did not participate in the process of auditor appointment so it was not involved in the audit process and the Management (including internal auditors) did not file any report to the Audit Committee and the Audit Committee did not require any clarification about the case. This is also supported by the results of the research conducted by (Schöndube-Pirchegger & Schöndube, 2011) which shows that audit committees tends to not oppose any questionable accounting procedures carried out by the management and it was approved by the auditors. This of course will impact the company's reputation if the financial statements of company do not reflect the actual situation.…”

Factors Affecting the Usage Intention of Environmental Sustainability Management Tools: Empirical Analysis of Adoption of Greenhouse Gas Protocol Tools by Firms in Two Countries

“…Thus, contractual incentive provisions become much more complex, strengthening incentives for managers to engage in reputational herding [64]. Prior work [69] also discussed the role of this reputational herding in the decision-making process in the audit area. Therefore, imitating prior adopters of GHG Protocol significantly and directly influences one company's intention to use GHG Protocol Tools.…”