Search Results (4)

This study investigates whether audit tenure mandates—designed to curb managerial discretion—may unintentionally enable disguised opinion shopping. Specifically, it examines whether firms benefit from observed mandates that align with their unobservable preferences, despite appearing to comply with mandatory audit firm rotation or retention rules. A counterfactual framework is developed to estimate firms’ preference for switching or retention in the absence of regulation, allowing identification of strategic alignment under constraint. Empirical analysis using Korean data from 2000 to 2009 reveals that firms classified as disguised opinion shoppers are more likely to receive unmodified audit opinions and exhibit lower audit quality, as indicated by higher discretionary accruals and more frequent reporting irregularities. These effects are concentrated under mandatory retention and not observed under rotation, suggesting that forced auditor turnover weakens firms’ ability to secure favorable outcomes. Additional evidence shows that these firms are more likely to retain the same auditor after mandates expire, consistent with a reward-for-accommodation mechanism. Thus, this study not only provides empirical evidence that opinion shopping can persist under auditor tenure mandates, but also introduces a novel method for identifying such behavior when traditional signals—such as voluntary dismissals—are unavailable. These findings inform ongoing regulatory debates on the effectiveness of tenure-based reforms. Full article

Despite continuous advocacy for sustainable building construction (SBC), it is hardly implemented in Africa. There have been varied views on whether regulatory characteristics concerning SBC should be voluntary or mandatory. Experts recommend customising regulatory characteristics to fit the specific country setting. This paper confirms the critical characteristics of implementing SBC in South Africa (SA) effectively. Using a structured questionnaire, data were collected from professionals in the built environment in SA. The data analysis included descriptive statistics, determining group opinion differences, model tests, and fit statistics for a confirmatory factor analysis (CFA). It was revealed that mandatory enforcement of sustainable construction rules, mandatory assessment, mandatory sustainable building certifications, and mandatory incentive programs are necessary to implement SBC successfully. This study’s practical implications stem from its ability to provide stakeholders and policymakers with the necessary understanding of the key aspects to help them properly direct reform plans. Laws, regulations, and assessments that must be strictly enforced imply that all stakeholders must have a grave corporation or mandate for practical SBC to accomplish sustainable development goals. By confirming the critical regulatory characteristics, this study would drive and assist government agencies, construction companies, policymakers, and built environment stakeholders in properly guiding improvement initiatives. Full article

This research investigates corporate governance (CG) norms in Bangladesh, a developing nation. This study assesses the codes’ key aspects and how they have evolved since the first code was released in 2006. This analysis shows that BSEC changed its recommendations from voluntary to mandatory in the subsequent revisions in 2012 and 2018. The modified versions increased board independence compared to the original code, although it is still lower than in some other emerging nations. Recent changes to the rules include conditions on the nomination and remuneration committees, along with some other amendments. However, critical governance components, such as choosing an independent board member as chair, improving board independence, and assuring gender diversity, could be implemented in future code development. It is believed that investors would be more interested in Bangladesh’s capital market if the policymakers could make the proposed modifications in accordance with the distinctive institutional features of an emerging economy. Full article

Based on theoretical underpinnings and an empirical review of forest laws and regulations of selected countries throughout the Americas, we examine key components of natural forest management and how they are addressed in the legal frameworks of Argentina, Brazil, Chile, Costa Rica, Guatemala, Nicaragua, Paraguay, Uruguay, and the U.S. We consider forest policy directives in terms of legislative, planning, operational, environmental/ecological, social, and economic aspects and classify them by the type of policy obligation: (1) non-discretionary laws or rules; or (2) discretionary, voluntary directives; and, further, by the type of policy approach: (1) a specific technology or practice required or recommended; (2) a process or system requirement or recommendation; or (3) a performance or outcome based requirement or recommendation. Protection of at-risk species and riparian buffers are required in all countries and include specific prescriptions in most; forest management planning and secure, legal land title or tenancy are commonly required; and mandatory processes to protect soil and water quality are customary. Less common requirements include forest monitoring and social and economic aspects, and, when in place, they are usually voluntary. Implications for improved policies to achieve sustainable forest management (SFM) are discussed. Full article