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The Dodd–Frank Act of 2010 exempts small, non-accelerated filers from compliance with Sarbanes–Oxley Act (SOX) Section 404b internal control audits. However, these firms are required to comply with other internal control regulations, namely, SOX Sections 302 and 404a, starting in 2002 and 2007, respectively. A small number of these firms also voluntarily adopted (and sometimes dropped) Section 404b during 2004-2010. The purpose of this study is to investigate the impact of a series of internal control regulations introduced by SOX on the financial reporting quality of small firms.

The research design for this study is empirical. Using unsigned and signed discretionary accruals as measures of financial reporting quality, the authors compare the financial reporting quality for adopters and non-adopters across four regulation regimes over the period 2000-2010: PRESOX, SOX 302, SOX 404a and SOX 404b.

The results indicate that most of the adopters and non-adopters benefited from SOX 302 and 404a compared with the PRESOX period. However, only the non-adopters gained incrementally when moving from SOX 302 to SOX 404a. Also, Section 404b benefited firms with material weaknesses, as well as firms without material weaknesses that had the lowest reporting quality, in the PRESOX period.

This study helps inform the important policy debate on whether to increase the threshold that is used for the SOX 404b exemption. It shows incremental benefits for firms that adopted Section 404b audits, even when they were complying with Section 302 and Section 404a. Consequently, extending the exemption to more companies would result in a loss of the reporting quality benefit of 404b.

This study contributes to the literature by focusing exclusively on non-accelerated filers and by examining differences across four regulation regimes over a long window compared to prior studies. It provides evidence that the financial reporting benefit of SOX 404b is not transitional, but rather extends for a few years even after some firms discontinued the 404b audits.

Individualism collectivism measures, along with decision styles, are examined in Taiwan. About 600 questionnaires were distributed directly to employees with managerial positions in private, public, and mixed enter prises in the capital, Taipei. In general, Taiwanese were found to be more collectivist than individualistic. Participants displayed a strong preference for consultative and participative styles and determined that these two styles were the most effective in practice. Further more, participants indicated that their immediate supervisors were mostly consultative and autocratic.

Investigates managerial value systems and decision styles among expatriate and indigenous managers in the UAE. Provides support for the proposition that differences among expatriate and host country nationals are manifested in their value systems. Indicates that Arab expatriate and national managers display a high preference for participative and pseudo‐participative styles while foreign expatriates show a high commitment to consultative style. Finds work values to be significantly related to some decision styles.

The impact of e‐business on export management companies (EMCs) has been debated for some time and several reasons for their survival have been forwarded. Based upon the resource‐based perspective of the firm, this study provides a far more fundamental reason for the survival of the well‐established EMCs‐their market‐based assets. Furthermore, this study analyzes the impact of e‐business proliferation on the well‐established EMCs transaction creating and physical fulfillment exporting services and their efficiency and effectiveness.

While the consumer movement was popular in economically advanced countries between 1965 and 1975, developing countries were not yet ready for such issues. The consumers in these countries, due to their economic, social, and political environments, were not aware of their rights. Taiwan was a typical case. Three main reasons contributed to the ignorance of the Taiwanese consumers at the advent of the worldwide consumer movement. First, in its early years, Taiwan was basically an agricultural society. The primary industry and its commodities made product differentiation impossible. It was nature, and not human beings that decided the quality and/or quantity of the products produced for the market. Everyday products were simple and few, and the choice between products, easy. Secondly, it was not until the 1960's that Taiwan turned slowly from an import‐oriented economy to that of an export‐oriented economy. Raising tariffs and controlling the importation of products were necessary to protect local businesses from foreign competition. Thus, the rights of consumers were sacrificed. Lastly, the very nature of the Chinese (e.g., psychological profile), led them to endure the suffering of any mistreatment. They would avoid a direct confrontation on any dispute. Therefore, organized activities against businesses was not possible. All of these reasons made the consumer movement unheard of in Taiwan during the 1960s.

Students identify promotion, price, place, segment, targeting, and positioning for marketing “the world’s cheapest car.” This case is effective for MBA, undergraduate, and executive learners studying market segmentation, pricing, cannibalization risk, pricing, and break-even sales in the face of different price and cost scenarios. Has Tata chosen the right marketing strategy? Does the Nano represent an evolution or a revolution in automobile marketing?

This study examines companies that separated or integrated the tax and audit functions subsequent to the passage of the Sarbanes‐Oxley Act (SARBOX). While the provision of tax services is not currently prohibited by SARBOX, some companies have separated these two functions. An examination of the relationship between tax function separation (integration) and proxies for audit quality, tax advocacy and audit fee is performed for a matched sample of companies that made the decision to separate or integrate during the period following the passage of SARBOX. In addition, we survey CFOs of both types of companies to determine the motivations behind the separation/integration decision. Our results indicate separation firm CFOs perceive benefits associated with auditor independence as their main reason for separating, while integration firm CFOs perceive cost savings and knowledge spillover as benefits of integration. The matched‐pair analysis suggests that both cost‐savings and tax‐savings are present in the year the tax and audit function is integrated, a benefit not enjoyed by their separation firm peers.

This study examines the effect of non-audit fees (NAF) provisions on interest payments classification shifting. In addition, we investigate to what extent the NAF economic bonding and interest payments classification shifting is contingent on internal governance and firm financial well-being.

This study employed probit regression using a sample of UK non-financial firms indexed in FT UK (500) over the period from 2009 to 2017.

We find evidence that the economic bonding of NAF between external auditors and their clients is more likely to encourage managers in UK firms to manipulate operating cash flows through interest payment classification shifting. In addition, and interestingly, our results evince that classification-shifting may be the less costly and soft choice of managers in firms with strong governance and charging higher NAF. Furthermore, we show that financially distressed firms associated with their auditors in purchasing non-audit services are more prone to attempting to manipulate and engage in interest payments classification-shifting. Our result did not provide a significant effect of external auditor tenure on the interest payments classification shifting.

Our findings are subject to the following limitations: First, this study uses a composite index to measure the quality of internal corporate governance. It focuses only on the board of directors, but this index does not reflect other internal governance mechanisms. Second, this study is subject to limited study time due to the implementation of key IFRS standards (IFRS 9 Financial Instruments and IFRS 15 Revenue from Contract with Customers) from 2018–2019.

This study was motivated by the UK’s Financial Reporting Council regulators' pressure on the Big 4 audit firms to move more audit time into main auditing activities, reduce cross-selling to audit clients and separate their audit practices by 2024. Overall, we provide new evidence that directs a close spotlight on the threats of NAF that are potentially useful to regulators, shareholders and investors.

It is motivated by the UK’s Financial Reporting Council regulators' pressure on the Big 4 to move more audit firm time into main auditing activities, reduce cross-selling to audit clients and separate their audit practices by 2024. Overall, we provide new evidence that directs a close spotlight on the threats of NAS that are potentially useful to regulators, shareholders and investors.

Interest in reverse innovation (RI) is increasing. According to the authors’ review, more than 350 reliable sources (scientific publications, academic books and working papers) examine or at least discuss the concept. As RI gains popularity among academic authors, some discrepancies have started to appear. This wealth of publications could impact prior advancements related to understanding of the phenomenon. The purpose of this paper is to decrease fragmentation and focus on identifying and understanding RI.

A systematic review of RI was conducted. The review conformed to a rigorous set of core principles: it was systematic (organized according to a method designed to address the review questions), transparent (explicitly stated), reproducible and updatable, and synthesized (summarized the evidence relating to the review question).

This systematic review provides an improved theoretical and practical framework for the concept of RI. In terms of theory, the authors have demonstrated that the idea behind the concept is not entirely new. A consensus on the definition of RI is not reached in the literature, and descriptions in organizational theory contexts are sometimes misleading. The authors analyzed all the various definitions provided in the literature. From a practical point of view, the authors have explained the academic interest in RI in relation to organizational strategy, in particular the context in which strategies are adopted. The concept of RI has significant managerial implications, and the authors have proposed a conceptual framework to help managers understand and grasp the implications of RI. Finally, the authors have provided suggestions for future research on RI.

To the best of the authors’ knowledge, this is the first exhaustive literature review on RI.