The impact of narcissism, self-confidence and auditor’s characteristics on audit report readability

Salehi, Mahdi; Dalwai, Tamanna; Arianpoor, Arash

doi:10.1108/agjsr-08-2022-0152

Cited by 7 publications

(24 citation statements)

References 79 publications

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“…This correlation fosters higher investor confidence, leading to improved access to capital and lower borrowing costs (Moradi et al ., 2022). A study by Salehi et al . (2023) strongly advises engaging reputable firms to conduct effective audits.…”

Section: Discussionmentioning

confidence: 99%

“…This correlation fosters higher investor confidence, leading to improved access to capital and lower borrowing costs (Moradi et al, 2022). A study by Salehi et al (2023) strongly advises engaging reputable firms to conduct effective audits. Furthermore, given that the findings indicate a lack of significant impact of the ACC on ROE as consistent with previous literature (Al-ahdal and Hashim, 2022), companies should consider the use of financial performance measures ROA and Tobin Q when evaluating the effectiveness of their audit committees.…”

Section: Implications For Practicementioning

confidence: 99%

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Audit committee characteristics and firm performance: a cross-country meta-analysis

Altin

2024

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PurposeThe purpose of this study is to investigate the impact of audit committee characteristics on firm performance. In particular, the authors employ the random-effects variant of the Hunter–Schmidt meta-analyze procedure to analyze the effects of key audit committee attributes, namely audit committee independence, audit committee expertise, audit committee size, audit committee meeting along with big four impact on firm performance. The authors hope to gain a better understanding of the function of audit committees in enhancing firm performance and to uncover potential discrepancies in prior findings due to varying economic levels or performance metrics.Design/methodology/approachThis study uses the Hunter–Schmidt method to conduct a meta-analysis of 39 previous studies published between 2012 and 2022 to investigate the relationship between audit committee characteristics and firm performance.FindingsThe results indicate that audit committee independence, expertise, size and affiliation with the big four have a significant and positive effect on firm performance, while audit committee meetings have a non-significant effect. Furthermore, findings suggest that companies should carefully consider the contextual factors that may impact the effectiveness of their corporate governance structures, such as economic level, when designing and implementing governance mechanisms.Originality/valueThis study is significant as it is the first to combine and analyze previous research on this topic and highlights the importance of certain audit committee characteristics in enhancing financial reporting quality and corporate governance.

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Section: Discussionmentioning

confidence: 99%

Section: Implications For Practicementioning

confidence: 99%

Audit committee characteristics and firm performance: a cross-country meta-analysis

Altin

2024

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“…This substantially affects investors' financial decisions (Bansal, 2020). Overconfidence has a significant positive effect on investors' decisionmaking processes (Qadri & Shabbir, 2004;Dungarwal & Tollawala, 2022;Salehi et al, 2023).…”

Section: Financial Decisions Of Potential Investorsmentioning

confidence: 99%

Cognitive biases and financial decisions of potential investors during Covid-19: an exploration

Mohanty

2023

AGJSR

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PurposeThis paper aims to identify, examine, and present an empirical research design of behavioral finance of potential investors during Covid-19.Design/methodology/approachA well-structured questionnaire was designed; a survey was conducted among potential investors using convenience sampling, and 200 valid responses were collected. The research work uses multiple regression and discriminant function analysis to evaluate the influence of cognitive factors on the financial decision-making of investors.FindingsRecency and familiarity bias are proven to have the highest significant impact on the financial decisions of investors followed by confirmation bias. Overconfidence bias had a negligible effect on the decision-making process of the respondents and found insignificant.Research limitations/implicationsCovid-19 is a temporary phase that may lead to changes in financial behavior and investors’ decisions in the near future.Practical implicationsThe paper will help academicians, scholars, analysts, practitioners, policymakers and firms dealing with capital markets to execute their job responsibilities with respect to the cognitive bias in terms of taking financial decisions.Originality/valueThe present investigation attempts to fill the gap in the literature on the intended topic because it is evident from literature on the chosen subject that no study has been undertaken to evaluate the impact of cognitive biases on financial behavior of investors during Covid-19.

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“…Thus, we expect that the individual auditors may sufficiently perceive the knowledge sharing as a threat because of an imbalance inflow and outflow of information. Salehi et al . (2023) argue that an auditor's narcissism, self-confidence and mandatory auditor change are positively and significantly associated with audit report readability.…”

Section: Theoretical Framework and Hypothesis Developmentmentioning

confidence: 99%

The impact of audit members' self-esteem and narcissism on organizational knowledge sharing among audit firms

Salehi,

Rouhi

2023

Self Cite

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PurposeThis study examines whether the auditor's self-esteem and narcissism affect sharing their knowledge with their colleagues and, if practical, increase or decrease knowledge sharing.Design/methodology/approachThis study uses a questionnaire to measure the employed variables: self-esteem, narcissism and knowledge-sharing. The study's statistical population includes auditors membered in the Association of Iranian Certified Public Accountants (AICPA), through which the statistical sample is 153 auditors chosen to analyze the collected information. Finally, the survey-based approach is employed to test the association between variables.FindingsThe results showed a positive and significant relationship between the positive dimension of self-esteem and knowledge sharing of auditors. In contrast, the effect of the negative dimension of self-esteem and narcissism on knowledge sharing is negative and significant.Practical implicationsAccording to the importance of particular personality traits in audit staff and their impact on improving the efficiency and performance of auditors, audit firms are recommended to employ audit staff suitable for their organizational objectives by taking some psychological tests during recruitment.Originality/valueThe findings expand knowledge sharing and create a new perspective in related research since this is among the pioneer studies investigating the impact of personality traits of individual auditors, particularly narcissism and self-esteem, on encouraging them to share knowledge.

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The impact of narcissism, self-confidence and auditor’s characteristics on audit report readability

Cited by 7 publications

References 79 publications

Audit committee characteristics and firm performance: a cross-country meta-analysis

Audit committee characteristics and firm performance: a cross-country meta-analysis

Cognitive biases and financial decisions of potential investors during Covid-19: an exploration

The impact of audit members' self-esteem and narcissism on organizational knowledge sharing among audit firms

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