109 research outputs found
The pricing of audit and non-audit services in a regulated environment: a longitudinal study of the UK life insurance industry
This paper studies the relationship between audit and non-audit service fees paid to the statutory auditor by UK life insurance firms, utilising an extensive panel data sample set for the period 1999-2009. Consistent with a knowledge spill over (impairment of independence) hypothesis, we predict and find that audit fees are positively (negatively) associated with actuarial (tax service) fees. Additionally, our results indicate that regulatory changes enforced after 2004 deterred UK life insurance firms from purchasing non-audit services that are perceived to impair auditor independence. Finally, we find evidence concerning the inter-temporal determination of audit fees
The sedimentation of an institution: changing governance in UK financial services
Post-print version. Final version published by Sage; available online at http://jmi.sagepub.com/The Financial Services Act (FSA) 1986 was the first comprehensive attempt to create a unified statutorily based system of regulation within the UK financial sector. It generated a framework of regulation that is in a continuous state of development and modification. In this paper we study the development of UK financial regulation between 1986 and 2011. We trace how competing theorizations and logics of regulation have led to the institutionalization of a meta-form of financial regulation. In doing so, we address the conundrum of conscious, strategic theorizations leading to cognitive taken-for-granted institutions by identifying four catalysts that contribute to institutionalization when concurring with theorization. These are: the evocation of political ideologies, the appropriation of scandals, the growing number of actors and the increasing organization of actors. Finally, we argue that sedimentation is the appropriate metaphor for the version of institutionalization occurring in this setting
Debunking the myth of shareholder ownership of companies: Some implications for corporate governance and financial reporting
The shareholder primacy model is dominant in Anglo-Saxon corporate governance and financial reporting even though it is considered to be dysfunctional and a source of crisis. The possibilities of reforms are routinely stymied with the claims that shareholders are the owners of large corporations and management should promote their interests. This paper seeks to debunk such claims. It shows that a corporation is a distinct legal person and cannot be owned by its shareholders. It argues that shareholders in contemporary corporations are owners of ?fictitious? capital which is very distinct from ?real? capital. The systemic pressures require the holders of fictitious capital to constantly buy/sell shares in pursuit of short-term gains. The paper further shows that in a globalised economy, the shareholding duration in major UK companies has shrunk and shareholders are more dispersed than ever before. They are not in any position to control or direct corporations for the benefit of other stakeholders and society generally. The paper calls for abandonment of the shareholder model of governance and calls for empowerment of stakeholders with a long-term interest in the wellbeing of corporations
Comment Letters to proposed statement on standards for attestation engagements : Management\u27s discussion and analysis
https://egrove.olemiss.edu/aicpa_sas/1108/thumbnail.jp
The financialization of mass wealth, banking crises and politics over the long run
The co-evolution of democratic politics and mass, financialized wealth has destabilized highly integrated financial systems and the socio-political underpinnings of neoliberal policy norms at domestic and global levels. Over the long run, it has increased the political pressure on governments to undertake bailouts during major banking crises and, by raising voters’ attentiveness to wealth losses and distributional inequities, has sharply raised the bar for government performance. The result has been more costly bailouts, greater political instability and the sustained politicization of wealth cleavages in crisis aftermaths. We underline the crucial importance and modernity of this phenomenon by showing how the high concentration of wealth in pre-1914 Britain and America among elites was associated with limited crisis interventions and surprisingly tranquil political aftermaths. By contrast, the 2007–2009 crises in both countries epitomise the political dilemmas facing elected governments in a new world of mass financialized wealth and the impact on political polarization and democratic politics. We show that these dilemmas were embryonic in the interwar period and highlight how the evolutionary forces shaping policy and political outcomes reveal the importance of time, context and the effects of long cycles in the world economy and global politics
Awareness in Practice: Tensions in Access to Sensitive Attribute Data for Antidiscrimination
Organizations cannot address demographic disparities that they cannot see.
Recent research on machine learning and fairness has emphasized that awareness
of sensitive attributes, such as race and sex, is critical to the development
of interventions. However, on the ground, the existence of these data cannot be
taken for granted.
This paper uses the domains of employment, credit, and healthcare in the
United States to surface conditions that have shaped the availability of
sensitive attribute data. For each domain, we describe how and when private
companies collect or infer sensitive attribute data for antidiscrimination
purposes. An inconsistent story emerges: Some companies are required by law to
collect sensitive attribute data, while others are prohibited from doing so.
Still others, in the absence of legal mandates, have determined that collection
and imputation of these data are appropriate to address disparities.
This story has important implications for fairness research and its future
applications. If companies that mediate access to life opportunities are unable
or hesitant to collect or infer sensitive attribute data, then proposed
techniques to detect and mitigate bias in machine learning models might never
be implemented outside the lab. We conclude that today's legal requirements and
corporate practices, while highly inconsistent across domains, offer lessons
for how to approach the collection and inference of sensitive data in
appropriate circumstances. We urge stakeholders, including machine learning
practitioners, to actively help chart a path forward that takes both policy
goals and technical needs into account
Comment letters to the National Commission on Commission on Fraudulent Financial Reporting, 1987 (Treadway Commission) Vol. 2
https://egrove.olemiss.edu/aicpa_sop/1662/thumbnail.jp
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