Finance theorists have long argued that corporate purchases of property insurance can reduce the probability and hence the expected costs of financial distress. And by so doing, the corporate use of insurance can reduce borrowing costs and/ or increase debt capacity, reduce the overall cost of...

This study extends earlier research on corporate governance by examining whether the information-usefulness of annual accounting earnings varies with the fraction of outside directors serving on the board and board size. Using panel data from New Zealand (NZ) firms for the financial years...

Using a unique insurance dataset for a sample of Chinese publicly listed companies for the period 1997 through 2003, this study tests the simultaneous linkages between debt capacity, cost of debt, and corporate property insurance. Our results suggest that, on the one hand, a higher cost of debt...

Describes how systems theory, and in particular “hard” and “soft” systems modelling, can provide a framework for the study of internal control and auditing inside organizations. Concludes that useful empirical research and case study work can be carried out using “hard” and...

Total Quality Management (TQM) will have major implications for the internal audit function. Argues that TQM concepts, such as people empowerment, are incompatible with traditional notions of compliance with prescribed internal controls, policies and procedures. Suggests that the fundamental...

Agency theory is extensively employed in the accounting literature to explain and predict the appointment and performance of external auditors. Argues that agency theory also provides a useful theoretical framework for the study of the internal auditing function. Proposes that agency theory not...

Argues that total quality management (TQM), with its emphasis on people empowerment, is incompatible with financial– and compliance‐based internal auditing. Examines the implications of TQM for internal auditors in New Zealand manufacturing companies. The empirical evidence suggests that...