We jointly study the impact of audit quality on auditor compensation and initial public offering (IPO) underpricing using a sample of Australian firms going public over the period 1996-2003. We find that quality (Big Four) audit firms earn significantly higher fees than non-Big Four auditors, and audit quality is positively associated with IPO underpricing. The positive relation between audit quality and underpricing is more pronounced for small issues, IPOs underwritten by non-prestigious underwriters, and those that are not backed by venture capitalists. Taken together, our results suggest that quality auditors serve as a signalling device that enhances post-issue market value of equity. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 AFAANZ.

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PurposeThe purpose of this paper is to propose a framework to examine the relationship between contextual factors, management accounting system (MAS) and managerial performance within the health care industry. In particular, it aims to uncover the contextual factors influencing the design of MAS that would enhance managerial performance in Egyptian hospitals.Design/methodology/approachThe premise of contingency theory is utilized to identify the contextual factors that may influence the use of MAS; namely organizational strategy, technology, structure, external environment, and size. The mediating role of MAS on the impact of managerial performance is examined through the extent to which managers use the four information characteristics associated with the design of MAS: scope, timeliness, aggregated, and integrated.FindingsThis framework provides clarity in linking the perceived usefulness of MAS information characteristics to managerial performance that has been viewed as problematic by past studies.Research limitations/implicationsThe Egyptian hospital industry is chosen as the ideal setting to investigate the relationship between contextual factors, MAS and managerial performance because of its complexity and continuous inept administration despite years following its reform.Practical implicationsThis framework helps practitioners develop new approaches in designing MAS within the health care sector.Originality/valueThis framework adds invaluable insights to the existing literature regarding performance implications of MAS design and functionality, especially within the health care sector.

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We examine how board leadership influences the frequency of supervisory board meetings and how meeting frequency, in turn, affects firm performance. Utilizing a 10‐year longitudinal dataset of German and Indonesian listed firms, we find that CEOs in both countries are more likely to foster lower board meeting frequency. However, in Germany, chairmen and female independent directors are more likely to promote higher board meeting frequency, while in Indonesia, affiliated directors and female independent directors have no significant influence. More frequent board meetings lead to better firm performance in Indonesia but not in Germany.