Audit pricing and corporate whistleblower governance: evidence from Australian financial firms

Eulaiwi, Baban; Al‐Hadi, Ahmed; Duong, Lien; Clark, Keira; Taylor, Grantley; Perrin, Brian

doi:10.1111/acfi.12867

Cited by 7 publications

(4 citation statements)

References 92 publications

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“…2013; Eulaiwi et al. 2022). To determine a propensity score or predicted value for every corporate‐year observation, all control variables are entered in the logit regression (Shipman et al.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…An analysis involving propensity score matching (PSM) is applied to address concerns regarding self-selection bias (Armstrong et al 2012;Lennox et al 2013;Eulaiwi et al 2022). To determine a propensity score or predicted value for every corporate-year observation, all control variables are entered in the logit regression (Shipman et al 2017).…”

Section: Propensity Score Matchingmentioning

confidence: 99%

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Tax Haven Use and Related‐Party Transactions: Evidence from Australia

Almutairi,

Eulaiwi,

Evans

et al. 2023

Australian Accounting Review

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Related‐party transactions (RPTs) and transfer pricing techniques are typically used by multinational enterprises to reduce their tax obligations by shifting the income to zero or to low‐tax countries. These techniques have thrived and have emerged as a significant concern for tax authorities. This study investigates the effect of tax haven utilisation on related‐party sales pricing in a sample of Australian listed firms. We find that tax haven use is positively and significantly associated with related‐party sales pricing. Moreover, we identify a positive and significant interaction between tax havens and earnings management with related‐party sales pricing. Ownership concentration and its interaction effect with tax havens are significant predictors of the increased use of related‐party sales pricing. Overall, the empirical findings demonstrate that earnings management, a high level of ownership concentration and the use of tax havens are substantial factors that enable firms to obtain tax benefits via the use of RPTs.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

Section: Propensity Score Matchingmentioning

confidence: 99%

Tax Haven Use and Related‐Party Transactions: Evidence from Australia

Almutairi,

Eulaiwi,

Evans

et al. 2023

Australian Accounting Review

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“…Following prior literature (Alsaifi et al, 2020; Eulaiwi et al, 2022; Shahab et al, 2018), this OLS regression model, which controls for year and industry fixed effects, is performed to test our first hypothesis (H1):

{DIS}_{i, t} goodbreak= γ_{0} goodbreak+ γ_{1} {CCDP}_{i, t} goodbreak+ γ_{2} {SIZE}_{i, t} goodbreak+ γ_{3} {LEV}_{i, t} goodbreak+ γ_{4} {ROA}_{i, t} goodbreak+ γ_{5} {MTB}_{i, t} goodbreak+ γ_{6} {CASH}_{i, t} goodbreak+ γ_{7} {QUICK}_{i, t} goodbreak+ γ_{8} {RD}_{i, t} goodbreak+ γ_{9} {LOSS}_{i, t} goodbreak+ γ_{10} {AGE}_{i, t} goodbreak+ italicYear Dummies goodbreak+ italicInd italicDummies goodbreak+ e_{i, t}

…”

Section: Methodology and Research Designmentioning

confidence: 99%

“…Following prior literature (Alsaifi et al, 2020;Eulaiwi et al, 2022;Shahab et al, 2018), this OLS regression model, which controls for year and industry fixed effects, is performed to test our first hypothesis (H1):…”

Section: Regression Modelmentioning

confidence: 99%

Climate change performance and financial distress

et al. 2022

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Given the crucial role that environmental accounting plays in sustainable development, this study investigates the relationship between climate change disclosure performance (CCDP) and financial distress as well as the moderating impact of litigation, the existence of a risk committee, the employment of Big4 auditing firms and the level of audit fees. Utilising a sample of the top 300 Australian Securities Exchange (ASX)‐listed non‐financial firms over the period 2008–2019 and ordinary least squares (OLS) regression analysis with fixed effects, it is found that higher levels of CCDP are related to lower levels of financial distress. Additionally, the significant association between CCDP and financial distress is manifested in firms with low litigation risk, firms with a risk committee, firms that employ Big4 auditing firms and firms that incur a higher level of audit fees. Additional tests that mitigate self‐selection and endogeneity, such as propensity score matching (PSM) and the system generalised method of moments (GMM), show that our findings are robust. Finally, our findings shed light on managers' strategic behaviour in relation to the consideration of, and transparency around, climate change risks.

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