A Structural Equation Model of Auditors’ Professional Commitment: The Influence of Firm Size and Political Ideology

Sweeney, John T.; Quirin, Jeffrey J.; Fisher, Dann G.

doi:10.1016/s1474-7979(03)06001-0

Cited by 6 publications

(1 citation statement)

References 22 publications

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“…Fornell (1987, p. 408) called SEM a “second generation of multivariate analyses,” but it is still under‐utilised in accounting and finance (Blanthorne et al , 2006). Although SEM has not commonly been used to analyse financial information, it has been used to process surveys (Hunton et al , 2000; Sweeney et al , 2003; Baines and Langfield‐Smith, 2003; Wang et al , 2006). This paper uses SEM to test the proposed model, which allows the latent variables to be employed properly; it also provides a better understanding of their relationships.…”

Section: Introductionmentioning

confidence: 99%

Online reporting by banks: a structural modelling approach

Serrano‐Cinca

Fuertes‐Callén²,

Nieto³

2007

Online Information Review

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PurposeA structural equation model is proposed to explain internet reporting by banks. The model relates three constructs of financial institutions (size, financial performance, and internet visibility) to their final influence on internet information disclosure (e‐transparency).Design/methodology/approachThis paper's proposed model analyses a sample of Spanish financial institutions using publicly available data. The model is tested using partial least squares.FindingsA positive and statistically significant relationship has been found between size, financial performance, internet visibility, and e‐transparency, with direct and indirect effects. The study shows that size accounts for most of the variance. Size has a positive effect on e‐transparency, financial performance, and internet visibility. However, the direct effect of financial performance and internet visibility on e‐transparency is small.Research limitations/implicationsThe researchers have analysed only one year of data from one country and one sector. The direction of cause and effect assumed in the model is a logical one, but statistical methods cannot prove causality, only association. Even though any bank can disclose its financial information online for a very low cost, building a robust, interactive web site requires major resources. This gives larger banks a value added advantage.Originality/valueThe paper examines the relationship between size, financial performance, internet visibility and e‐transparency using a structural model. Although structural models are commonly used in many scientific disciplines, they have not yet been applied in disclosure research.

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