Effiezal Aswadi Abdul Wahab, Mazlina Norzila Mat Zain, Rashidah Abdul Rahman
{"title":"Political Connections: A Threat to Auditor Independence?","authors":"Effiezal Aswadi Abdul Wahab, Mazlina Norzila Mat Zain, Rashidah Abdul Rahman","doi":"10.2139/ssrn.1949742","DOIUrl":"https://doi.org/10.2139/ssrn.1949742","url":null,"abstract":"This study examines whether political connections further impair auditor independence when auditor provides non-audit services in Malaysia. We examine whether political connections moderate the relationship between non-audit fees and audit fees. Based on two proxies of political connections namely politically connected firms and the proportion of Bumiputras directors, we find a positive and significant relationship between non-audit fees and audit fees, and the relationship becomes weaker, only for politically connected firms. Nonetheless, the results suggest that political connections could pose a threat to auditor independence in both appearance and in mind.","PeriodicalId":397405,"journal":{"name":"CGN: General (Gatekeepers) (Sub-Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123072582","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A More Critical Use of Fairness Opinions as a Practical Approach to the Behavioral Economics of Mergers and Acquisitions","authors":"Joan Macleod Heminway","doi":"10.2139/SSRN.1833406","DOIUrl":"https://doi.org/10.2139/SSRN.1833406","url":null,"abstract":"This paper responds to Professor Donald C. Langevoort's essay entitled \"The Behavioral Economics of Mergers and Acquisitions\" (12 Transactions: Tenn. J. Bus. L. 65 (2011)). Together with Professor Langevoort's essay and another responsive work written from the standpoint of behavioral psychology – Eric Sundstrom's \"Tall Steps, Slippery Slopes & Learning Curves in the Behavioral Economics of Mergers & Acquisitions\" (12 Transactions: Tenn. J. Bus. L. 65 (2011)) – this paper preliminarily explores solutions to behavioral issues in the context of mergers and acquisitions. Specifically, this paper contends that changes in the contents, construction, use, and assessment of fairness opinions may better enable fairness opinions to counteract the potential and actual biases of corporate management and shareholders in M&A decision-making. The paper begins by briefly reviewing the nature (attributes, benefits and detriments), regulation, and utilization of fairness opinions in the M&A transactional process, including the ways in which fairness opinions manifest, support, and attempt to counteract behavioral norms. Next, the paper suggests best practices in the construction and use of fairness opinions that take into account our knowledge of behavioral psychology as it relates to M&A transactions. The net effect of these best practices is to transform what may be unconscious behavioral norms into conscious biases that, once exposed, can be confronted and, as desired, mitigated.","PeriodicalId":397405,"journal":{"name":"CGN: General (Gatekeepers) (Sub-Topic)","volume":"363 6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125703120","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}