The Value of Social Capital for the Success of SPAC IPOs

This paper explores the role of social capital in contributing to the success of a new breed of organizations known as ‘blank check companies’ or special purpose acquisition companies (SPACs) that are set up solely to target and acquire listed companies as a fast-track route to gain listing status in the stock market. The paper is a case study of Pershing Square Holdings Ltd., St. Peter Port, UK (PSH), which launched SPAC IPOs (Initial Public Offerings), Pershing Square Tontine Holdings Ltd., New York, NY, USA (PSTH), which succeeded in raising the largest capital from influential investors in 2020. Social capital theory is employed to provide theoretical structure for the analysis. Using annual reports, publicly available information on the internet, as well as social media platforms related to the company and its strategy, the authors critically analyse and highlight how the Tontine’s founder and his team utilized their structural, relational, and cognitive social capital to attract investors and gained recognition as the most successful SPAC IPO in the market in 2020. The authors found the ability to structure a SPAC IPO that departs from a typical SPAC, and the choice of timing to enter the SPAC market resulted in an over subscription and higher market valuation ratings of its IPO, as well as allowed the sponsor to be selective of its investors. This is the first study to address the significance of social capital at the individual and organizational level in creating value for SPAC IPOs. Potential investors can gain understanding and insights on the mechanics of SPAC IPOs and the importance of the founder’s social capital in ensuring successful investment. Successful SPAC IPOs will create interest in the marketplace and enhance the value of investment for investors and helped private companies to get listed faster

Evaluation of Antiproliferative Activity of Some Traditional Anticancer Herbal Remedies from Jordan

Purpose: To evaluate the in vitro antiproliferative activity of the extracts of the three plants against a panel of human tumor cell lines representing the most common types of cancer in Jordan, viz, breast and colorectal and skin cancers.Methods: The methanol extracts of the aerial parts of the three plants (Arbutus andrachne L., Chrysanthemum coronarium L., and Teucrium polium L.) were prepared and assessed for antiproliferative activity against six human tumor cell lines (A375.S2, WM1361A, CACO-2, HRT18, MCF-7, T47D) using 3-(4,5-dimethylthiazol-2-yl)-2,5 diphenyltetrazolium bromide MTT cell proliferation assay.Results: C. coronarium extract, at the concentration range of 25 to 400 μg/mL, significantly inhibited (10 – 50 %) the proliferation of the 6 cell lines in a dose-dependent manner, whilst the extracts of the other two plants exhibited weak antiproliferative activity (2 – 10 % inhibition). The half-maximal inhibitory concentration (IC50) values of C. coronarium extract against the six cell lines were in the range of 75.8 to 138.5 μg/mL.Conclusion: The methanol extract of the aerial parts C. coronarium possesses a relatively potent antiproliferative activity and therefore might be a potential source of natural compounds that can be developed into new antineoplastic agents.Keywords: Antiproliferative, Arbutus andrachne L., Chrysanthemum coronarium L., Teucrium polium L. Jordan flora, Medicinal plants, Cancer, Antineoplasti

Exploring auditor independence: an interpretive approach

<b>Purpose:</b>The purpose of this paper is to explore the construction of the meanings of auditor independence (AI) in an oil-rich autocratic state with an ideology straddling liberal market capitalism and Shari'ah (Islamic teachings). <b>Design/methodology/approach:</b>The concept of AI was explored using Blumer's interactionist approach or the Chicago School of Symbolic Interactionism (CSSI). Multiple methods were adopted in collecting and interpreting data: document analysis, personal professional experience, observation and interviews with auditors in two audit firms in Saudi Arabia. <b>Findings:</b>Using discourse analysis, the paper demonstrates that auditors construct the meanings of independence in appearance and in fact through their social interactions at three levels: micro (personal self-reflexivity through ethical reasoning and reputation of individual auditor); meso (organisational culture through range of commercial activities and image management) and macro (through political, de jure, and socio-economic structure). <b>Originality/value:</b>The paper contributes to the auditing literature by providing insights into the construction of the meaning of AI in a context different from the dominant Anglo-American discourse, as well as transition and emerging economies discourse. The paper also contributes to the CSSI research methodology by extending it to consider interactions not only within an organisational context, but also within the context of a country

Corporate governance quality, audit fees and non-audit services fees

This paper extends prior research on the relationship between governance quality and auditor remuneration. We examine the influence of audit committee effectiveness (ACE), a proxy for governance quality, on audit fees (AF) and non-audit services fees (NASF) using a new composite measure comprising audit committee independence, expertise, diligence and size. We find that after controlling for board of director characteristics, there is a significant positive association between ACE and AF only for larger clients. Our results indicate that effective audit committees undertake more monitoring which results in wider audit scope and higher audit fees. Contrary to our expectations, we find the association between ACE and NASF to be positive and significant, especially for larger clients. This suggests that larger clients are more likely to purchase non-audit services (NAS) even in the presence of effective audit committees probably due to the complexity of their activities. Overall, our findings support regulatory initiatives aimed at improving corporate governance quality

Exploring the perceptions of auditor independence in Indonesia

<br>Purpose – The purpose of this paper is to explore the perceptions of auditors and users of their reports on auditor independence in Indonesia.</br> <br>Design/methodology/approach – Auditors and users are requested to stated their confidence in the level of independence in 34 scenarios. Descriptive and ?2 test are the used to analyse the difference of perceptions amongst groups. The paper then conduct an interview with a senior officer of audit regulator body to better understand the findings.</br> <br>Findings – Both groups have less confidence on auditor independence in 30 situations. Results between auditors and users indicate auditors having lower confidence on auditor independence than users in situations related to crossover from audit firm to client, provision of NAS, auditor litigation and indirect financial interest through shareholdings while users have lower confidence on auditor independence involving personal relationship with a political figure and client imposing strict budget on audit fees. Within the auditor group, non-Big 4 auditors expressed more concerned for situations related to family relationship and restriction on audit fees.</br> <br>Originality/value – Research on auditor independence in Indonesia remains scarce despite the country's eagerness to adopt “international” accounting and auditing standards. In addition, the cultural context of Indonesia also helped in explaining our findings.</br&gt