Audit Quality and Accrual Persistence: Evidence from the Pre- and Post-Sarbanes-Oxley Periods

Purpose – The purpose of this paper is two-fold: first, to examine whether the quality of accruals, as measured by accrual persistence, improved in the post-Sarbanes-Oxley (SOX) period, and second, to examine the degree to which SOX-related improvement in accrual persistence varies across companies depending on the degree of their auditor\u27s independence. Design/methodology/approach – The paper compares accrual persistence in the pre- and post-SOX periods to test the first question. Then, partitioning on relative client importance as a measure of auditor independence, the paper compares the SOX-based improvement for clients of low and high independence audit firms. Findings – The study first demonstrates that accrual persistence increased significantly in the post-SOX period. The study also finds evidence that in the post-SOX period, the subsample of companies audited by Big-N auditors with lower-independence experienced the greatest improvement in accrual persistence. Originality/value – This is the first paper to evaluate SOX-related improvements in the quality of earnings as measured by accrual persistence. Prior studies test abnormal accruals and other earnings management metrics, however, persistence is a more general test of financial statement quality. This study also is the first to compare SOX-related improvements for clients of firms with differing levels of independence

Social Disorganization Outside the Metropolis: An Analysis of Rural Youth Violence

In order to extend the study of community social disorganization and crime beyond its exclusive focus on large urban centers, we present an analysis of structural correlates of arrest rates for juvenile violence in 264 nonmetropolitan counties of four states. Findings support the generality of social disorganization theory: Juvenile violence was associated with rates of residential instability, family disruption, and ethnic heterogeneity. Though rates of poverty were not related to juvenile violence, this is also in accord with social disorganization theory because, unlike urban settings, poverty was negatively related to residential instability. Rates of juvenile violence varied markedly with population size through a curvilinear relationship in which counties with the smallest juvenile populations had exceptionally low arrest rates. Analyses used negative binomial regression (a variation of Poisson regression) because the small number of arrests in many counties meant that arrest rates would be ill suited to least-squares regression

Community Correlates of Rural Youth Violence

Rates of crime and delinquency vary widely across communities, and research going back many decades provides a good understanding of the nature, correlates, and probable causes of these community differences. Unfortunately, previous studies have been limited in an important way. Virtually all studies of communities and crime are based on large urban areas, almost totally excluding nonmetropolitan areas—that is, rural areas and smaller cities and towns. The findings in this Bulletin help to fill some gaps in the research by examining variations in rates of juvenile violence across nonmetropolitan communities in Florida, Georgia, Nebraska, and South Carolina. Social disorganization is the primary theory by which criminologists account for rates of crime in urban communities. If this theory also applies to rural settings, then what is known about crime in urban areas can provide a basis for developing programs that address the problem of delinquency in smaller communities. The research presented in this Bulletin indicates that the principles of social disorganization theory hold up quite well in rural settings. As in urban areas, rates of juvenile violence are considerably higher in rural communities that have a large percentage of children living in single-parent households, a high rate of population turnover, and significant ethnic diversity. These factors, it should be noted, are statistical correlates and not causes of such violence; nor are they the only correlates

Episodic volunteering and retention: An integrated theoretical approach

Episodic volunteers (EVs) are vital for non-profit organization activities. However, theory-based research on episodic volunteering is scant and the determinants of episodic volunteering are not well understood. This study integrates the volunteer process model and three-stage model of volunteers’ duration of service to explore determinants of EV retention. A cross-sectional survey of 340 EVs assessed volunteering antecedents, experiences, and retention. Social/enjoyment (β =.17) and benefit (β = −.15) motives, social norm (β =.20), and satisfaction (β =.56) predicted Novice EV (first experience) retention, satisfaction (β =.47) and commitment (β =.38) predicted Transition EV (2-4 years intermittently) retention, and supporting the organization financially (β =.31), social norm (β =.18), satisfaction (β =.41), and commitment (β =.19) predicted Sustained EV (5-6 years consecutively) retention. Integrated theoretical approaches appear efficacious for understanding EV retention. An Episodic Volunteer Engagement and Retention model is proposed for further testing in prospective work. © 2015, © The Author(s) 2015

Rips Complexes of Planar Point Sets

Fix a finite set of points in Euclidean $n$-space \euc^n, thought of as a point-cloud sampling of a certain domain D\subset\euc^n. The Rips complex is a combinatorial simplicial complex based on proximity of neighbors that serves as an easily-computed but high-dimensional approximation to the homotopy type of $D$. There is a natural ``shadow'' projection map from the Rips complex to \euc^n that has as its image a more accurate $n$-dimensional approximation to the homotopy type of $D$. We demonstrate that this projection map is 1-connected for the planar case $n=2$. That is, for planar domains, the Rips complex accurately captures connectivity and fundamental group data. This implies that the fundamental group of a Rips complex for a planar point set is a free group. We show that, in contrast, introducing even a small amount of uncertainty in proximity detection leads to `quasi'-Rips complexes with nearly arbitrary fundamental groups. This topological noise can be mitigated by examining a pair of quasi-Rips complexes and using ideas from persistent topology. Finally, we show that the projection map does not preserve higher-order topological data for planar sets, nor does it preserve fundamental group data for point sets in dimension larger than three.Comment: 16 pages, 8 figure

A systematic review of episodic volunteering in public health and other contexts

Background: Episodic volunteers are a critical resource for public health non-profit activities but are poorly understood. A systematic review was conducted to describe the empirical evidence about episodic volunteering (EV) in the public health sector and more broadly. Study location, focus and temporal trends of EV research were also examined. Methods. Twelve key bibliographic databases (1990-April week 2, 2014) were searched, including Google Scholar. Empirical studies published in English in peer-reviewed journals that identified participants as EVs who volunteered to support Not-for-Profit organisations in the health and social welfare sectors were included. EV definitions, characteristics, economic costs, antecedents and outcomes and theoretical approaches were examined. Results: 41 articles met initial review criteria and 20 were specific to the health or social welfare sectors. EV definitions were based on one or more of three dimensions of duration, frequency, and task. EVs were predominantly female, middle aged, Caucasian (North American) and college/university educated. Fundraising was the most common EV activity and 72% had volunteered at least once. No studies examined the economic costs of EV. There was little consistency in EV antecedents and outcomes, except motives which primarily related to helping others, forming social connections, and self-psychological or physical enhancement. Most studies were atheoretical. Three authors proposed new theoretical frameworks. Conclusions: Research is required to underpin the development of an agreed consensus definition of EV. Moreover, an EV evidence-base including salient theories and measures is needed to develop EV engagement and retention strategies for the health and social welfare sectors