0000000000586653
AUTHOR
Jens Wüstemann
Can Auditors Be Independent? – Experimental Evidence on the Effects of Client Type
Recent regulatory initiatives stress that an independent oversight board, rather than the management board, should be the client of the auditor. In an experiment, we test whether the type of client affects auditors’ independence. Unique features of the German institutional setting enable us to realistically vary the type of auditors’ client as our treatment variable: we portray the client either as the management preferring aggressive accounting or the oversight board preferring conservative accounting. We measure auditors’ perceived client retention incentives and accountability pressure in a post-experiment questionnaire to capture potential threats to independence. We find that the type …
The Effects of the Financial Crisis on the Organizational Reputation of Banks: An Empirical Analysis of Newspaper Articles
The recent financial crisis has triggered an intense debate about the role of banks in society, presumably changing the criteria used in the evaluation of organizations. Against this backdrop, we investigate the changing role of banks’ organizational features in shaping different dimensions of banks’ organizational reputation. Using the media as an important evaluator, we measure the reputational dimension of visibility based on the frequency of newspaper articles and the reputational dimension of favorability based on the sentiment of newspaper articles. Drawing on social judgment research for developing our hypotheses, we expect that organizational features such as financial performance a…
The Effects of Financial Crisis on the Organizational Reputation of Banks: An Empirical Analysis of Newspaper Articles
The recent financial crisis has triggered an intense debate about the role of banks in society, presumably changing the criteria used in the evaluation of organizations. Against this backdrop, we investigate the changing role of banks’ organizational features in shaping different dimensions of banks’ organizational reputation. Using the media as an important evaluator, we measure the reputational dimension of visibility based on the frequency of newspaper articles and the reputational dimension of favorability based on the sentiment of newspaper articles. Drawing on social judgment research for developing our hypotheses, we expect that organizational features such as financial performance …
A Review of Bias Research in Auditing: Opportunities for Integrating Experimental Psychology and Experimental Economics
The objective of this paper is to show opportunities for integrating psychological and economics research in auditing. For this purpose, auditing research that employs both the methodologies of experimental psychology and experimental economics is collectively reviewed. The review is structured along three fundamental research questions: (1) Are auditors prone to biases; (2) what are the consequences of biased judgment in auditing; and (3) do features of the audit environment interact with the biased judgment? While both the research approach of experimental psychology and experimental economics are employed for addressing these resesarch questions, both approaches differ in their focus and…