Audit committee and internal audit and the quality of earnings: empirical evidence from Spanish companies

Corporate scandals and failures such as Enron, WorldCom, etc. were highly catastrophic and had a terrible effect on stakeholders. The pressure of globalisation and the intense competition have lead to organisations encouraging good corporate governance. Organisations have to promote transparency and accountability of financial information. As Gramling et al. (J Account Lit 23:194–244, 2004) argued there are four important mechanisms of corporate governance include boards of directors, audit committees (among others) and internal and external audit functions. However, this paper will focus on the relationship between two corporate governance mechanisms (audit committee and internal audit function). Thus, our purpose is to analyse the relation between characteristics of the audit committee and internal audit function and earnings management measured as abnormal accruals to test the quality of financial statements. We hypothesise that the association between the effectiveness of the audit committee and the presence of an internal audit function and its relationship with this committee would indicate less opportunity for management to manipulate earnings. Using a sample of 108 non-financial Spanish companies that traded on the Madrid Stock Exchange between 2003 and 2006 (432 observations), we have found that the size and number of meetings of the audit committee had a significant negative association with earnings manipulations. Also, our results suggest that a negative relation between having an internal audit function and earnings management.     

Effects of receipt of Social Security retirement benefits on older women’s employment

Labor force participation of women has declined since 1999; however, labor force participation of women 62+ has increased. The 2000–2006 waves of Health and Retirement Study (HRS) data, the initial years of the continuing upward trajectory, were used to test the effects of receipt of Social Security retirement benefits on older women’s employment. The models tested: (a) the effect of receipt of Social Security retirement benefits on whether employed; and (b) for women receiving Social Security retirement benefits, the effect of age elected receipt of benefits on whether employed. Both models included the effects of human capital characteristics and income sources. Receipt of Social Security benefits, pension income, and current age reduced the likelihood of employment; while educational level, good to excellent health, and nonmarried marital status increased the likelihood of employment. The older the woman was when she elected Social Security benefits, the more likely she was to be employed.     

The Features of Development in the Pacific Countries of the African,Caribbean and Pacific Group

In this article we present a new proposal for the measurement of development, applied to the Pacific Countries of the African, Caribbean and Pacific Group (ACP), conditional on their insularity, and with privileged relations with the European Union. Our index has been constructed attending to the criteria defined in the Goals of the Millennium Declaration. For this purpose we will use the P₂ distance method for the year 2007, the last year for which data are available. This index integrates socio-economic variables that permit a territorial ordering of the Pacific ACPs, in terms of those partial indicators.     

Travelling from New Spain to Mexico: Mapping Practices of Nineteenth-Century Mexico

James Horn, Adapting to a New World: English Society in the Seventeenth‐Century Chesapeake (1994), xv + 461 (University of North Carolina Press, Chapel Hill, $60.50).

Marguerite W. Dupree, Family Structure in the Staffordshire Potteries, 1840–1880 (1995), xx + 405 (Clarendon Press, Oxford, £48.00).

David B. Copian, In the Time of Cannibals: The Word Music of South Africa's Basotho Migrants (1994), xxi + 300 (University of Chicago Press, Chicago, $55.00, paperback $18.95).

Ellen Meiksins Wood, Democracy Against Capitalism: Renewing Historical Materialism (1995), 300 (Cambridge University Press, London, £35.00).     

Break-out im türkischen Lebensmittelhandel

Based on a qualitative-empirical study of the Turkish food retail sector in Vienna, this article discusses the social embeddedness of break-out-processes. In socio-scientific literature, the term “break-out” is used to describe the process by which immigrant entrepreneurs leave their “ethnic enclave economy” by gaining consumers beyond their own community. While research appears to reduce break-out to an individual and economically driven marketing strategy, the social dimension has been neglected so far. Our findings demonstrate that the entrepreneurs’ market orientation is located between the contradictory contexts of different expectations—those of the immigrant community as well as those of the majority community. On basis of a typology of different ways of dealing with these expectations we want to reveal the interrelationships between economic and social factors and, furthermore, to contribute to a deeper understanding of the social embeddedness of immigrant economies.     

The Seduction of the Surface: From Alice to Crash

Drawing on a qualitative analysis of Swedish newspaper debates in 1979 and 1995, this article examines how Swedish newspapers refer to biological sex difference as central to drinking practices. The study shows that women are a special category of concern in debate about gender and drinking in both 1979 and 1995. Further, it shows that Swedish newspapers draw upon biology in different ways in the two years. In 1979, debate about drinking during pregnancy and Fetal Alcohol Syndrome (FAS) is central and newspapers link biomedical research on FAS to the moral idea that mothers do anything to avoid harm to children. In 1995, debate about girls' drinking habits is central and newspapers link sex hormones and neurotransmitters to the moral idea that girls shouldn't “drink like men.” These differences are discussed in the context of Swedish media interest in evolutionary psychology and biomedical solutions to alcohol problems during the 1990s.     

Crawling is Associated with Mental Rotation Ability by 9‐Month‐Old Infants

The present experiment examined whether 9‐month‐old infants’ mental rotation ability was related to their crawling ability. Forty‐eight 9‐month‐old infants were tested; half of them crawled for 7.1 weeks on average. Infants were habituated to a video of a simplified Shepard–Metzler object rotating back and forth through a 240° angle around the longitudinal axis of the object. Infants were tested with videos of the same object rotating through the previously unseen 120° angle and with the mirror image of that display. The results showed that the crawlers looked significantly longer at the mirror object than at the familiar object. The results support the interpretation that crawling experience is associated with 9‐month‐old infants’ mental rotation ability.     

Max-stable processes for modeling extremes observed in space and time

Max-stable processes have proved to be useful for the statistical modeling of spatial extremes. For statistical inference it is often assumed that there is no temporal dependence; i.e., that the observations at spatial locations are independent in time. In a first approach we construct max-stable space–time processes as limits of rescaled pointwise maxima of independent Gaussian processes, where the space–time covariance functions satisfy weak regularity conditions. This leads to so-called Brown–Resnick processes. In a second approach, we extend Smith’s storm profile model to a space–time setting. We provide explicit expressions for the bivariate distribution functions, which are equal under appropriate choice of the parameters. We also show how the space–time covariance function of the underlying Gaussian process can be interpreted in terms of the tail dependence function in the limiting max-stable space–time process.