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How does one control change lead to another?

Organizations are frequently confronted with environmental shifts and change. In our recent publication (Toldbod and Van der Kolk, forthcoming in the European Accounting Review), we examine how environmental shifts can trigger cascades of management control changes, how this creates incoherence, and how managers can use the incoherence to stimulate organizational dialogue. Our study provides insights into the interplay of management control elements and control changes, and mobilizes notions from the organizational ecology literature to theorize our findings.…
Berend van der Kolk
Berend van der Kolk
3 min read
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1620

Begona Giner, Chair of Stakeholder Reporting Committee, is part of EFRAG’s task force

The European Lab Steering Group has appointed the members and Chair of the Project Task Force to operate the project on preparatory work for the elaboration of possible EU non-financial reporting standards, mandated to EFRAG by the European Commission. ​ We are happy to report that Begona Giner, Chair of the EAA's Stakeholder Reporting Committee, was one of the newly-appointed project task force member!
ARC Commitee
ARC Commitee
< 1 min read
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1830

PhD students – places at the 2021 CAAA Annual Conference

An excellent opportunity for PhD students: the Canadian Academic Accounting Association (CAAA) and the EAA are offering EAA students three places at the 2021 CAAA Annual Conference. The selected PhD students will receive a full waiver of the CAAA Conference fee. To apply for this opportunity please send a motivation letter by September 30th, 2020 to baha.diyarov@eiasm.be. Selected students will be informed by December 31th, 2020. &nbsp;
ARC Commitee
ARC Commitee
< 1 min read
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2494

The Impact of CEO/CFO Outside Directorships on Auditor Selection and Audit Quality

In a recent study published in European Accounting Review, Byungjin Kwak, Myung Seok Park, Yoonseok Zang and I examine whether outside directorships of chief executive officer/chief financial officer (CEO/CFO) and resulting network ties to auditors affect auditor selection decisions and subsequent audit quality. While some studies suggest that executives&rsquo; outside board directorship is related to managerial opportunism and entrenchment (agency view) (Davis, 1991; Zajac &amp; Westphal, 1996), others argue that it can enhance the home…
Jaeyoon Yu
Jaeyoon Yu
4 min read
0
2561

ESG fails to immunize stocks against the COVID-19 market crash

Environmental, Social and Governance (ESG) investments are praised worldwide as the solution to environmental, social and societal problems, and would be the best vaccine during the Covid-19 crisis. Our research findings suggest that this is not the case, and that traditional measures such as liquidity and innovative capacity better describe crisis resilience. While corporate social responsibility companies may benefit in the longer term, it is advisable for investors to be critical of funds that promote…
PHILIP JOOS
PHILIP JOOS
2 min read
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1893

Toothless Watchdogs

By Ferdinand Elfers and Jochen Pierk While Big Four auditing firm EY is facing legal action over the 1.9 billion EUR accounting fraud that has led to the collapse of its client, Munich-based payments firm Wirecard, the scandal has also turned the spotlight on an apparent failure of the responsible supervisory authorities. Indeed, the German government did not hesitate to terminate its contract with the Financial Reporting Enforcement Panel (FREP), a private-sector body that was…
ARC Commitee
ARC Commitee
4 min read
0
1545

Who Audits Public Companies – Germany

This analysis was originally posted by Audit Analytics. Note: This post has been updated to reflect auditor changes not previously included in this analysis, specifically relating to the DAX 30. There are 12 accounting firms that audit Germany&rsquo;s top 160 companies. Perhaps coming as no surprise, the Big Four account for 91% of the top company market, with KPMG leading as the auditor of 51 companies, followed by PwC with 46, then EY and Deloitte…
Jessica McKeon
Jessica McKeon
4 min read
0
1991

Pension Deficits and Corporate Financial Policy: Does Accounting Transparency Matter?

Despite the significance of DB pension plans for risk and investment decisions (Campbell et al., 2012; Cardinale, 2007; Jin et al., 2006; Rauh; 2006), before the adoption of IFRS in 2005 some EU countries, including France, did not require pension plan transparency under domestic accounting standards. In a recent study, published in the European Accounting Review (EAR), Vicky Kiosse, Peter Pope and I study the changes in financial policies following a regulatory shock to the accounting transparency of…
FANI KALOGIROU
FANI KALOGIROU
5 min read
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2368

Market Concentration of PIEs – An Analysis of Transparency Report Data

This analysis was originally posted by&nbsp;Audit Analytics. According to Article 13 of the Audit Regulation of 2014 (Regulation EU 537/2014), a statutory auditor of a public interest entity (PIE) must publish an annual transparency report on the firm&rsquo;s website, at the latest four months after the end of each financial year. Among other disclosures, the transparency report must include a list of public interest entities for which the statutory auditor or audit firm carried out…
Jessica McKeon
Jessica McKeon
5 min read
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2498

Shrinking Auditor Market in the Netherlands: Addendum and a Suggestion

I think it is helpful to add some information to the Audit Analytics blog post about concentration in the market for PIE statutory audits in the Netherlands. I add information about concentration in the market for non-PIE statutory audits. It is noteworthy that in the market for non-PIE statutory audits the same process of concentration is occurring. I also add some reflections and a suggestion. Some context: the Dutch auditing oversight body is called AFM,…
WILLEM BUIJINK
WILLEM BUIJINK
4 min read
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