Topic
Opportunism
About: Opportunism is a research topic. Over the lifetime, 2030 publications have been published within this topic receiving 97170 citations. The topic is also known as: opportunist.
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01 Jan 2006
TL;DR: In this article, the authors examined the relative importance of proxies for economic efficiency and managerial opportunism as determinants of non-audit services (NAS), and thereby contributed to the debate on whether the provision of NAS by auditors impairs independence or is economically efficient.
Abstract: This paper examines the relative importance of proxies for economic efficiency and managerial opportunism as determinants of non-audit services (NAS), and thereby contributes to the debate on whether the provision of NAS by auditors impairs independence or is economically efficient. We find that NAS is positively related to auditor tenure, and clients purchase more NAS from industry-specialist auditors, suggesting that economic efficiency factors are associated with NAS purchases. To examine managerial opportunism we use proxies for the strength of corporate governance (percentage of independent directors on the board and audit committee, board and audit committee size, and number of board and audit committee meetings) and client incentives to manage earnings (CEO ownership, bonus and stock compensation, and leverage). While the statistically significant coefficients on board independence and bonus and stock compensation are consistent with managerial opportunism (firms with less independent boards purchase more NAS, and firms with more bonus and stock compensation purchase more NAS), those on audit committee size and number of board meetings are inconsistent with managerial opportunism, but consistent with efficient contracting (firms with larger audit committees and with less frequent board meetings purchase less NAS). Overall, the sum of the managerial opportunism variables does not differ significantly from zero. Thus we conclude that the evidence is consistent with NAS purchases being driven by economic efficiency rather than managerial opportunism
8 citations
TL;DR: In this article, a buyer-seller relationship where "quality" is not contractible but is affected by effort and the seller's privately known innate value is studied, assuming constant outside opportunities, and the sequence of contracts exhibits increasing prices and durations, and commitments for prices beyond the actual contract invite opportunism, not effort.
Abstract: This paper studies a buyer-seller relationship where "quality" is not contractible but is affected by effort and the seller's privately known innate value. The seller's cost of effort is also private knowledge. Assuming constant outside opportunities, we show that more than two contracts is redundant, the sequence of contracts exhibits increasing prices and durations, and commitments for prices beyond the actual contract invite opportunism, not effort. The seller uses effort during the screening process, which improves noncontractible quality. As a result, type-related information may have negative value when contracts are incomplete. Copyright 1993 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
8 citations
TL;DR: In this paper, the authors examine the dynamic of the relationship between the global and the local in education policy through a case study of recent policy initiatives in the small island state of Malta.
Abstract: This article examines the dynamic of the relationship between the global and the local in education policy through a case study of recent policy initiatives in the small island state of Malta. The main initiative has been the setting up of a Foundation for Educational Services, which is now competing with services previously offered by the state Division of Education. It is argued that whilst the global, in this case the transnational company (TNC) HSBC Bank and the supranational European Union (EU), has particular power and can develop opportunity structures, this power is never closed or complete. The local has the power to enter or exit the global discursive field, including specific practices and structures. When the local interprets its needs to coincide with the global, as with the Foundation for Educational Services, HSBC Malta plc and the EU, then there is evidence that some political, economic or cultural 'opportunism' leads to the development of 'glocal' policy making. In this process, new and p...
8 citations
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TL;DR: In this paper, a cognitive argument for the role of conflict in corporate governance is proposed, and the case study of a hostile takeover attempt illustrates the proposed explanation and shows that certain governance mechanisms are capable of initiating a learning process, inducing convergence of apparently conflicting interests.
Abstract: This paper aims at increasing conceptual precision with respect to the role of conflict in a theory of corporate governance. It searches to complement traditional approaches to governance problems, typically conducted according to an exclusively disciplinary perspective, by introducing a cognitive argument. The latter allows for an explanation of conflict in situations where the CEO, far from always pursuing opportunistic aims, is himself convinced of having the conduct of a good steward. The case study of a hostile takeover attempt illustrates the proposed explanation and shows that certain governance mechanisms are capable of initiating a learning process, inducing convergence of apparently conflicting interests.
8 citations
TL;DR: In this article, the authors link competitive altruism to a component of the trust phenomenon by introducing the concept of exhibited trust, which is speculated that initiating trust is a more value-oriented action, with the purpose of improving the reputation of a firm as an ideal partner through the exhibition of trust.
8 citations