IE University

About: IE University is a education organization based out in Segovia, Castilla y León, Spain. It is known for research contribution in the topics: Corporate governance & Context (language use). The organization has 527 authors who have published 1709 publications receiving 64682 citations.

Mandatory Audit Firm Rotation and Audit Quality

Abstract: In a setting where mandatory audit firm rotation has been effective for more than 20 years (i.e. Italy), we analyse changes in audit quality during the auditor engagement period. In our research setting, auditors are appointed for a three-year period and their term can be renewed twice up to a maximum of nine years. Since the auditor has incentives to be re-appointed at the end of the first and the second three-year periods, we expect audit quality to be lower in the first two three-year periods compared to the third (i.e. the last) term. Assuming that a better audit quality is associated with a higher level of accounting conservatism, and using abnormal working capital accruals as a proxy for the latter, we find that the auditor becomes more conservative in the last three-year period, i.e. the one preceding the mandatory rotation. These results are confirmed using Basu's [1997. The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3–37] ...

Managing Service Innovation and Interorganizational Relationships for Firm Performance: To Commit or Diversify?

Abstract: An increasing body of research suggests interorganizational relationships as being critical to the financial performance of firms. Similarly, innovation has been considered a key driver of the growth and success of firms. However, little work has examined how the extent firms' interorganizational relationship commitment and diversity influence their innovation focus and performance. In this article, the authors show that diverse interorganizational relationships reduce the positive impact of innovation focus on firm performance. In contrast, interorganizational relationship commitment increases service innovation focus and strengthens the innovation focus—firm performance relationship. The findings are based on multisource and longitudinal performance data and highlight the positive impact of relationship commitment on the effects of service innovation focus on firm performance. Implications for management and research are discussed.

Cross-lagged relationships between workplace bullying, job satisfaction and engagement: Two longitudinal studies

Abstract: Workplace bullying has been defined as a stressor that has negative consequences. However, the direction of the bullying–well-being relationship has been largely based on cross-sectional findings, which does not permit conclusions in terms of causality. The purpose of this research was to investigate the cross-lagged relationships between bullying and job-related well-being. We hypothesized that Time 1 bullying predicted Time 2 job-related well-being over time (normal causation model). In addition, we compared alternative models (baseline or stability, reversed, and reciprocal models). Our hypothesis was examined in two longitudinal studies with full two-wave panel designs in Belgian employees. In Study 1 (N=312), the time lag was six months, and in Study 2 (N=369), the time lag was two years. Results of structural equation modelling (SEM) analyses partially supported our hypothesis. Specifically, it was found that Time 1 bullying predicted Time 2 dedication in Study 1, and Time 2 job satisfactio...

Are U.S. CEOs Paid More Than U.K. CEOs? Inferences from Risk-adjusted Pay

Abstract: We compute and compare risk-adjusted CEO pay in the United States and United Kingdom, where the risk adjustment is based on estimated risk premiums stemming from the equity incentives borne by CEOs. Controlling for firm and industry characteristics, we find that U.S. CEOs have higher pay, but also bear much higher stock and option incentives than U.K. CEOs. Using reasonable estimates of risk premiums, we find that risk-adjusted U.S. CEO pay does not appear to be large compared to that of U.K. CEOs. We also examine differences in pay and equity incentives between a sample of non-U.K. European CEOs and a matched sample of U.S. CEOs, and find that risk-adjusting pay may explain about half of the apparent higher pay for U.S. CEOs

Measuring Organizational Legitimacy in Social Media: Assessing Citizens’ Judgments With Sentiment Analysis

Abstract: Conventional quantitative methods for the measurement of organizational legitimacy consider mainly three sources that make judgments about organizations visible: news media, accreditation bodies, and surveys Over the last decade, however, social media have enabled ordinary citizens to bypass the gatekeeping function of these institutional evaluators and autonomously make individual judgments public This inclusion of voices beyond functional and formally organized stakeholder groups potentially pluralizes the ongoing discussions about organizations The individual judgments in blogs, tweets, and Facebook posts give indication about the broader fit between an organization’s perceived behavior and heterogeneous social norms and therefore constitute an indicator of organizational legitimacy that can be accessed and measured We propose the use of social media data and sentiment analysis to study the affect-based responses to organizational actions by citizens We critically discuss and compare the method wi