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Showing papers on "Quality (business) published in 2009"


Journal ArticleDOI
TL;DR: This paper aims at providing an introduction to case study methodology and guidelines for researchers conducting case studies and readers studying reports of such studies, and presents recommended practices and evaluated checklists for researchers and readers of case study research.
Abstract: Case study is a suitable research methodology for software engineering research since it studies contemporary phenomena in its natural context. However, the understanding of what constitutes a case study varies, and hence the quality of the resulting studies. This paper aims at providing an introduction to case study methodology and guidelines for researchers conducting case studies and readers studying reports of such studies. The content is based on the authors' own experience from conducting and reading case studies. The terminology and guidelines are compiled from different methodology handbooks in other research domains, in particular social science and information systems, and adapted to the needs in software engineering. We present recommended practices for software engineering case studies as well as empirically derived and evaluated checklists for researchers and readers of case study research.

3,620 citations


Journal ArticleDOI
TL;DR: Guidelines and Expert Consensus Documents summarize and evaluate all currently available evidence on a particular issue with the aim of assisting physicians in selecting the best management strategies for a typical patient, suffering from a given condition, taking into account the impact on outcome, as well as the risk/benefit ratio of particular diagnostic or therapeutic means.
Abstract: Guidelines and Expert Consensus Documents summarize and evaluate all currently available evidence on a particular issue with the aim of assisting physicians in selecting the best management strategies for a typical patient, suffering from a given condition, taking into account the impact on outcome, as well as the risk/benefit ratio of particular diagnostic or therapeutic means. Guidelines are no substitutes for textbooks. The legal implications of medical guidelines have been previously discussed. A great number of Guidelines and Expert Consensus Documents have been issued in recent years by the European Society of Cardiology (ESC) as well as by other societies and organizations. Because of the impact on clinical practice, quality criteria for the development of guidelines have been established in order to make all decisions transparent to the user. The recommendations for formulating and issuing ESC Guidelines and Expert Consensus Documents can be found on the ESC Web Site (http://www.escardio.org/guidelines). In brief, experts in the field are selected and undertake a comprehensive review of the published evidence for management and/or prevention of a given condition. A critical evaluation of diagnostic and therapeutic procedures is performed, including assessment of the risk/benefit ratio. Estimates of expected health outcomes for larger societies are included, where data exist. The level of evidence and the strength of recommendation of particular treatment options are weighed and graded according to predefined scales, as outlined in Tables 1 and 2 . View this table: Table 1 Classes of recommendations View this table: Table 2 Levels of evidence The experts of the writing panels have provided disclosure statements of all relationships they may have which might be perceived as real or potential sources of conflicts of interest. These disclosure forms are kept on file at the European Heart House Headquarters of the ESC. Any changes in conflict of interest that arise during the writing period must be notified …

1,912 citations


Journal ArticleDOI
TL;DR: Guidelines and Expert Consensus Documents summarise and evaluate all currently available evidence on a particular issue with the aim to assist physicians in selecting the best management strategies for a typical patient, suffering from a given condition, taking into account the impact on outcome, as well as the risk/benefit ratio of particular diagnostic or therapeutic means.
Abstract: Guidelines and Expert Consensus Documents summarise and evaluate all currently available evidence on a particular issue with the aim to assist physicians in selecting the best management strategies for a typical patient, suffering from a given condition, taking into account the impact on outcome, as well as the risk/benefit ratio of particular diagnostic or therapeutic means. Guidelines are no substitutes for textbooks. The legal implications of medical guidelines have been discussed previously. A great number of Guidelines and Expert Consensus Documents have been issued in recent years by the European Society of Cardiology (ESC) as well as by other societies and organisations. Because of the impact on clinical practice, quality criteria for development of guidelines have been established in order to make all decisions transparent to the user. The recommendations for formulating and issuing ESC Guidelines and Expert Consensus Documents can be found on the ESC website (http://www.escardio.org/knowledge/guidelines). In brief, experts in the field are selected and undertake a comprehensive review of the published evidence for management and/or prevention of a given condition. Unpublished clinical trial results are not taken into account. A critical evaluation of diagnostic and therapeutic procedures is performed including assessment of the risk/benefit ratio. Estimates of expected health outcomes for larger societies are included, where data exist. The level of evidence and the strength of recommendation of particular treatment options are weighed and graded according to predefined scales, as outlined in tables 1⇓ and 2⇓. The experts of the writing panels have provided disclosure statements of all relationships they may have which might be perceived as real or potential sources of conflicts of interest. These disclosure forms are kept on file at the European Heart House, headquarters of the ESC. Any changes in conflict of interest that arise during the writing period must …

1,387 citations


Journal ArticleDOI
TL;DR: The proposed model is proven with the effectiveness in explaining the relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile added-value services.

1,207 citations


Journal ArticleDOI
TL;DR: In this paper, the authors integrated e-shopping quality, enjoyment, and trust into a technology acceptance model (TAM) to understand consumer acceptance of e-Shopping.

1,164 citations


Journal ArticleDOI
TL;DR: This paper surveys the literature in manufacturing control systems using distributed artificial intelligence techniques, namely multi-agent systems and holonic manufacturing systems principles and points out the challenges and research opportunities for the future.

770 citations


Journal ArticleDOI
TL;DR: In this article, the authors propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company.
Abstract: Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company-favoring outcomes of CSR; yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from the literatures on means-end chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these␣insights and highlights a number of areas for future research.

730 citations


Journal ArticleDOI
TL;DR: In this article, an integrative model was proposed and tested to examine the relations among service quality, value, image, satisfaction, and loyalty in China, which revealed that service quality directly influences both perceived value and image perceptions, and that corporate image influences value and that both customer satisfaction and value are significant determinants of loyalty.

724 citations


Journal ArticleDOI
TL;DR: In this article, the authors developed a framework for analyzing the profitability of reuse activities and showed how the management of product returns influences operational requirements, and how operational issues are strongly affected by the approach used to manage product returns.
Abstract: Firms are often encouraged to offer environmentally friendly products as a demonstration of corporate citizenship. However, this may prove to be an unrealistic expectation since a rational firm will only engage in profitable ventures; those that increase shareholder wealth. We develop a framework for analyzing the profitability of reuse activities and show how the management of product returns influences operational requirements. We show that the acquisition of used products may be used as the control lever for the management and profitability of reuse activities. These activities, termed product acquisition management, affect several important business decisions. First, if a firm is to pursue reuse activities, these reuse activities must be value-creating. Second, if a firm is to compete by offering remanufactured products, then we show how product returns management influences the overall profitability of such activities via a trial and error EVA approach. Third, we show how operational issues are strongly affected by the approach used to manage product returns. There is a need for future research specifying the mathematical relationship between acquisition price and the nominal quality of the returned product.

667 citations


Posted Content
TL;DR: In this paper, the authors exploit both price and quantity information to estimate the quality of products exported to the U.S. The estimated qualities reveal substantial heterogeneity in product markets' scope for quality differentiation, or their "quality ladders.''
Abstract: Prices are typically used as proxies for countries' export quality. I relax this strong assumption by exploiting both price and quantity information to estimate the quality of products exported to the U.S. Higher quality is assigned to products with higher market shares conditional on price. The estimated qualities reveal substantial heterogeneity in product markets' scope for quality differentiation, or their "quality ladders.'' I use this variation to explain the heterogeneous impact of low-wage competition on U.S. manufacturing employment and output. Markets characterized by relatively shorter quality ladders are associated with larger employment and output declines resulting from low-wage competition.

664 citations


Journal ArticleDOI
TL;DR: In this paper, the authors address the question: "To what extent do manufacturing plants view competitive priorities as trade-offs?" They employ survey data collected from managers and operators in 110 plants that have recently implemented AMT.
Abstract: A heated debate continues over the need for trade-offs in operations strategy. Some researchers call for plants to focus on a single manufacturing capability and devote their limited resources accordingly, while others claim that advanced manufacturing technology (AMT) enables concurrent improvements in quality, cost, flexibility, and delivery. Yet there is little empirical evidence for or against the trade-off model. In response, this study addresses the question: “To what extent do manufacturing plants view competitive priorities as trade-offs?” We employ survey data collected from managers and operators in 110 plants that have recently implemented AMT. Our findings suggest that trade-offs remain. However, perceived differences in competitive priorities are subtle and may vary across levels of the plant hierarchy. (COMPETITIVE PRIORITIES; OPERATIONS STRATEGY; SURVEY RESEARCH/DESIGN)

Journal ArticleDOI
TL;DR: The results show that system quality and information quality significantly influence customers' trust and satisfaction, and that interface design quality does not.

Journal ArticleDOI
TL;DR: It is found that groups organized in the hybrid structure are able to generate more ideas, to generate better ideas, and to better discern the quality of the ideas they generate.
Abstract: In a wide variety of organizational settings, teams generate a number of possible solutions to a problem, and then select a few for further investigation. We examine the effectiveness of two creative problem solving processes for such tasks - one, where the group works together as a team (the team process), and the other where individuals first work alone and then work together (the hybrid process). We define effectiveness as the quality of the best ideas identified by the group. We build theory that relates previously observed group behaviour to four different variables that characterize the creative problem solving process: (1) the average quality of ideas generated, (2) the number of ideas generated, (3) the variance in the quality of ideas generated, and (4) the ability of the group to discern the quality of the ideas. Prior research defines effectiveness as the quality of the average idea, ignoring any differences in variance and in the ability to discern the best ideas. In our experimental set-up, we find that groups employing the hybrid process are able to generate more ideas, to generate better ideas, and to better discern their best ideas compared to teams that rely purely on group work. Moreover, we find that the frequently recommended brainstorming technique of building on each other’s ideas is counter-productive: teams exhibiting such build-up neither create more ideas nor are the ideas that build on previous ideas better.

Posted Content
TL;DR: A model of relatedness and invention performance of high-technology M&As that considers science and technology similarity and complementarity as important drivers of invention finds that complementary scientific knowledge and complementary technological knowledge both contribute to post-merger invention performance by stimulating higher quality and more novel inventions.
Abstract: Prior research on M&As and invention outcomes has not systematically examined the influence of two types of knowledge differences. Knowledge relatedness has typically been equated with knowledge similarity and the separate influence of knowledge complementarity has been overlooked. Similarly, studies examining innovation outcomes of M&As have typically focused on the role of technological knowledge and overlooked the influence of scientific knowledge. We develop a model of relatedness and invention performance of high-technology M&As that considers science and technology similarity and complementarity as important drivers of invention. We test the model using a sample of M&As from the drug, chemical, and electronics industries and a fine-grained measure of knowledge relatedness that distinguishes between science and technology relatedness. We find that complementary scientific knowledge and complementary technological knowledge both contribute to post-merger invention performance by stimulating higher quality and more novel inventions. This suggests that high-technology firms seeking acquisitions should search for, identify, and acquire businesses that have scientific and technological knowledge that is complementary to their own. Our results also suggest that similarities in knowledge facilitate incremental renewal, while complementarities would make discontinuous strategic transformations more likely, and that absorptive capacity research should be expanded to consider complementarities as well as similarities.

Journal ArticleDOI
TL;DR: Based on one study on five dairy products, this paper explains how to describe the temporality of the sensations in a product thanks to the TDS curves.

Proceedings ArticleDOI
06 Aug 2009
TL;DR: It is found that when combined non-expert judgments have a high-level of agreement with the existing gold-standard judgments of machine translation quality, and correlate more strongly with expert judgments than Bleu does, Mechanical Turk can be used to calculate human-mediated translation edit rate (HTER), to conduct reading comprehension experiments with machine translation, and to create high quality reference translations.
Abstract: Manual evaluation of translation quality is generally thought to be excessively time consuming and expensive. We explore a fast and inexpensive way of doing it using Amazon's Mechanical Turk to pay small sums to a large number of non-expert annotators. For $10 we redundantly recreate judgments from a WMT08 translation task. We find that when combined non-expert judgments have a high-level of agreement with the existing gold-standard judgments of machine translation quality, and correlate more strongly with expert judgments than Bleu does. We go on to show that Mechanical Turk can be used to calculate human-mediated translation edit rate (HTER), to conduct reading comprehension experiments with machine translation, and to create high quality reference translations.

Journal ArticleDOI
TL;DR: In this article, a review of the literature on relationship quality (RQ) is presented and a conceptual framework is provided for the study of relationship quality in business to business (B2B) markets.
Abstract: Purpose – In today's highly competitive environment losing customers is very costly. Customer retention and loyalty have become possible through the development of long‐term, mutually beneficial relationships with customers. This paper seeks to critically review the literature on relationship quality (RQ) and to suggest avenues for further research.Design/methodology/approach – Data were collected with impartial cross‐referencing of papers published in all major journals in the marketing area. Papers are presented in tabulated form based on six rigorously cross‐checked categories of information.Findings – Most RQ research centres on business‐to‐business (b‐to‐b) markets and products use survey data, look at relationships from the customer perspective and analyse either the US or European markets. Also, results differ in various contexts and there is no universally accepted framework for RQ. By analysing the different variables used in previous studies, a general conceptual framework is provided for the st...

Journal ArticleDOI
TL;DR: The results indicate that the e-loyalty development process is influenced by both e-satisfaction and e-trust.

Journal ArticleDOI
TL;DR: In this paper, the authors test the hypothesis that firms obtain ISO 9000 certification to comply with government and customer demands by estimating a probit model of the certification decision and find that other factors related to quality management and quality-based competition explain the adoption decision.
Abstract: Proponents of iso 9000 certification claim that it is a low-cost signal of a firm's commitment to quality and a meaningful component of total quality management (TQM). Critics claim that it has little relation to TQM and is a tariff on international trade. We test the hypothesis that firms obtain ISO 9000 certification to comply with government and customer demands by estimating a probit model of the certification decision. The results support the view of proponents of ISO 9000. After controlling for regulatory and customer pressures to obtain ISO 9000, other factors related to quality management and quality-based competition explain the adoption decision.

Journal ArticleDOI
TL;DR: A comprehensive, conceptual model encompassing research work and a holistic view of various aspects affecting patient satisfaction and healthcare quality is presented.
Abstract: – The aim of this paper is to build a comprehensive conceptual model to understand and measure variables affecting patient satisfaction‐based healthcare quality., – A total of 24 articles from international journals were systematically reviewed for factors determining patient satisfaction and healthcare quality., – Patient satisfaction is a multi‐dimensional healthcare construct affected by many variables. Healthcare quality affects patient satisfaction, which in turn influences positive patient behaviours such as loyalty. Patient satisfaction and healthcare service quality, though difficult to measure, can be operationalized using a multi‐disciplinary approach that combines patient inputs as well as expert judgement., – The paper develops a conceptual model that needs to be confirmed empirically. Also, most research pertains to developed countries. Findings are presented that may not be generalized to developing nations, which may be quite different culturally., – The paper has direct implications for health service providers. They are encouraged to regularly monitor healthcare quality and accordingly initiate service delivery improvements to maintain high levels of patient satisfaction., – The paper collates and examines recent healthcare quality study findings. It presents a comprehensive, conceptual model encompassing research work and a holistic view of various aspects affecting patient satisfaction and healthcare quality. Although a large amount of healthcare quality research has been done, each studying a particular service, this paper comprehensively brings together various research findings.

Journal ArticleDOI
TL;DR: In this paper, the authors analyze a model where an entrant platform with superior quality competes with an incumbent platform and find that the entrant's success depends critically on the strength of indirect network effects and the consumers' discount factor of future applications.
Abstract: This paper seeks to understand when an entrant with superior quality can successfully enter a platform-based market. We analyze a model where an entrant platform with superior quality competes with an incumbent platform. We find that the entrant's success depends critically on the strength of indirect network effects and the consumers' discount factor of future applications. Contrary to the popular belief that an entrant's quality advantage needs to be sufficiently high to overcome the incumbent's installed-base advantage in such markets, we find that under certain conditions, an entrant with a small quality advantage can gain market share over time when competing with an incumbent with a huge installed-base advantage. To demonstrate the model's applicability, we examine the entry of the Xbox console into the video game industry. We find that Xbox has a small quality advantage over the incumbent, PlayStation 2, and the strength of indirect network effects and the consumers' discount factor in this market are such that PlayStation 2's huge installed-base advantage is unsustainable.

Journal ArticleDOI
TL;DR: In this article, food supply chains are confronted with increased consumer demands on food quality and sustainability, and when redesigning these chains the analysis of food quality change and environmental load of new...
Abstract: Food supply chains are confronted with increased consumer demands on food quality and sustainability. When redesigning these chains the analysis of food quality change and environmental load of new...

Journal ArticleDOI
TL;DR: In this paper, the authors explored the relationship between soft and hard TQM elements and quality management results and found that quality improvement and the consolidation of the company's market position are influenced mainly by adopting soft TQMs and secondarily by adopting hard TMC elements.
Abstract: Purpose – The purpose of this paper is to explore the relationships between “soft” and “hard” TQM elements and quality management results.Design/methodology/approach – Empirical data were drawn from 370 Greek companies using the questionnaire method. Confirmatory Factor Analysis was used to examine constructs' reliability and validity, while the relationships between them were examined through Structural Equation Modelling.Findings – The study proved that quality improvement and the consolidation of the company's market position are influenced mainly by adopting “soft” TQM elements and secondarily “hard” TQM elements.Research limitations/implications – The fact that the study was based on quality managers' perceptions and the participation of companies from all sectors creates limitations, but also future research orientations.Practical implications – To achieve benefits and obtain a competitive advantage, which is of major importance for the sustainability of a company, quality design, control and improv...

Journal ArticleDOI
TL;DR: This research uses a solution based on a combined grey-fuzzy DEMATEL method to deal with the objective of the study indicating that real estateAgent R1 (CY real estate agent) is the best selection in terms of service quality in customer expectation.
Abstract: This research uses a solution based on a combined grey-fuzzy DEMATEL method to deal with the objective of the study. This study is aimed to present a perception approach to deal with real estate agent service quality expectation ranking with uncertainty. The ranking of best top five real estate agents might be a key strategic direction of other real estate agents prior to service quality expectation. The solving procedure is as follows: (i) the weights of criteria and alternatives are described in triangular fuzzy numbers; (ii) a grey possibility degree is used to result the ranking order for all alternatives; (iii) DEMATEL is used to resolve interdependency relationships among the criteria and (iv) an empirical example of real estate agent service quality ranking problem in customer expectation is used to resolve with this proposed method approach indicating that real estate agent R1 (CY real estate agent) is the best selection in terms of service quality in customer expectation.

Journal ArticleDOI
TL;DR: This paper conceptualize and formulate the joint development of products involving two firms with differing development capabilities and examine the implications of arrangements that go beyond sharing of revenues to include sharing of development cost and work, and term these approaches investment sharing and innovation sharing.
Abstract: The growing sophistication of component technologies and the rising costs and uncertainties of developing and launching new products require firms to collaborate in the development of new products. However, the management of new product development that occurs jointly between firms presents a new set of challenges in sharing the costs and benefits of innovation. Although collaboration enables each firm to focus on what it does best, it also introduces new issues associated with the alignment of decisions and incentives that have to be managed alongside conventional performance and timing uncertainties of new product development. In this paper, we conceptualize and formulate the joint development of products involving two firms with differing development capabilities and examine the implications of arrangements that go beyond sharing of revenues to include sharing of development cost and work. We term these approaches that involve sharing of the development cost and sharing of the development work investment sharing and innovation sharing, respectively. These cost and effort sharing mechanisms have subtle interactions with the degree to which revenues are shared between firms and the type of development project under consideration. Our analysis shows that investment and innovation sharing are particularly relevant for products with no preexisting revenues, and their benefits also depend on the degree to which revenues are shared between the firms. Whereas investment sharing is more attractive for new-to-the-world product projects with significant timing uncertainty, innovation sharing plays an important role in environments where projects experience product quality uncertainty, firms are similar in their capabilities, and the costs of integration of work across firms can be controlled. Our key contribution involves the modeling of joint work and decision making between collaborating firms and unearthing the complementary role of revenue, cost, and innovative effort sharing mechanisms for new product development. We translate our analytical findings into a managerial framework and illustrate the results with examples from the life-sciences and electronics industries.

Journal ArticleDOI
TL;DR: In this paper, the authors define professional skepticism as "indicated by auditor judgments and decisions that reflect a heightened assessment of the risk that an assertion is incorrect, conditional on the information available to the auditor".
Abstract: INTRODUCTION AND SUMMARY This paper reviews research that examines professional skepticism (hereafter, PS) in auditing. Consistent with much research and with recent regulatory concerns, the paper defines PS as ‘‘indicated by auditor judgments and decisions that reflect a heightened assessment of the risk that an assertion is incorrect, conditional on the information available to the auditor.’’ In many circumstances the assertion in question will be a client’s assertion that the financial statements are free of material misstatement, but the definition could apply to other assertions as well (e.g., attesting to the effectiveness of a client’s internal controls). This definition reflects more of a ‘‘presumptive doubt’’ than a ‘‘neutral’’ view of PS, implying that auditors who exhibit high PS are auditors who need relatively more persuasive evidence (in terms of quality and/or quantity) to be convinced that an assertion is correct. Depending on how an auditor’s decisions are evaluated, it is possible under this definition for an auditor to exhibit too much PS, in that they could design overly inefficient and expensive audits. The paper provides a model that describes how audit evidence combines with auditor knowledge, traits, and incentives to produce judgments that reflect PS. The model also describes how, given a judgment that reflects some level of PS, the judgment combines with auditor knowledge, traits, and incentives to produce actions that reflect relatively more or less PS. The model highlights that auditors’ pre-existing knowledge, traits, and incentives all combine (and potentially trade off or interact) to affect the amount of PS in audit judgment and audit actions. This perspective also facilitates understanding how audit firms can influence PS in practice via hiring, training, performance appraisal, review, decision aids, incentives, and changes in tasks and institutions. For example, prior research suggests the following about particular elements of the model:

01 Jan 2009
TL;DR: In this article, the inappropriate use of Gross Domestic Product (GDP) as a measure of national well-being, something for which it was never designed, is discussed in terms of their motives, objectives, and limitations.
Abstract: This paper is a call for better indicators of human well-being in nations around the world. We critique the inappropriate use of Gross Domestic Product (GDP) as a measure of national well-being, something for which it was never designed. We also question the idea that economic growth is always synonymous with im-proved well-being. Useful measures of progress and well-being must be measures of the degree to which society’s goals (i.e., to sustainably provide basic human needs for food, shelter, freedom, participation, etc.) are met, rather than mea-sures of the mere volume of marketed economic activity, which is only one means to that end. Various alternatives and complements to GDP are discussed in terms of their motives, objectives, and limitations. Some of these are revised measures of economic activity while others measure changes in community capital—natu-ral, social, human, and built—in an attempt to measure the extent to which development is using up the principle of community capital rather than living off its interest. We conclude that much useful work has been done; many of the alternative indicators have been used successfully in various levels of community planning. But the continued misuse of GDP as a measure of well-being neces-sitates an immediate, aggressive, and ongoing campaign to change the indica-tors that decision makers are using to guide policies and evaluate progress. We need indicators that promote truly sustainable development—development that improves the quality of human life while living within the carrying capacity of the supporting ecosystems. We end with a call for consensus on appropriate new measures of progress toward this new social goal.

Journal ArticleDOI
TL;DR: In this paper, the influence of religiosity on one aspect of consumer behavior -shopping orientation -was examined and it was suggested that religiosity should be included as a possible determinant of shopping orientations in consumer behavior models.
Abstract: Although culture and subcultural norms have been subjected to increased scrutiny in recent years as explanatory constructs for various dimensions of consumer behavior, religion as an element of culture has received only slight attention in the marketing literature. This study seeks to examine the influence of religiosity on one aspect of consumer behavior - shopping orientation. The findings revealed that three shopping orientation factors, namely quality consciousness, impulsive shopping and price consciousness were related to religiosity. It is suggested that religiosity should be included as a possible determinant of shopping orientations in consumer behavior models.

Journal ArticleDOI
TL;DR: In this article, the authors investigated the relation between internal audit function (IAF) quality and earnings management and found evidence that IAF quality is associated with a moderation in the level of earnings management as measured by both proxies.
Abstract: Internal auditors perform work that is relevant to their host entities' finan cial reporting processes; yet, little research attention has focused on the effects of internal auditing on companies' external financial reporting. Using a unique and pre viously unavailable data set, we investigate the relation between internal audit function (IAF) quality and earnings management. We measure IAF quality using a composite measure comprising six individual components of IAF quality based on SAS No. 65, which guides external auditors in assessing the quality of an IAF with respect to its role in financial reporting. Earnings management is measured using two separate prox ies: (1) abnormal accruals and (2) the propensity to meet or barely beat analysts' earn ings forecasts. We find evidence that IAF quality is associated with a moderation in the level of earnings management as measured by both proxies.

Journal ArticleDOI
TL;DR: This article found that large cities are more skilled than small cities, but only to a modest degree, and that cognitive and physical skills and physical strength are not rewarded to a greater degree in large cities.