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Title: Do Non-Large Networks Engage in Portfolio Restructuring? A Signal Detection of Peak Period Capability Pressure

Authors: Semiun Babatunde Adeyemi; Oladipupo Muhrtala Tijani

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: This study considers the local offices of medium-sized audit firms as a unit of analysis. Adapting measures validated in earlier studies, this paper develops a model and evaluates the model that directly describes all variables that affect portfolio structuring in an auditor-client environment during peak periods. Using a sample of 237 local office observations between 2007 and 2011 among medium-sized audit firms in Nigeria, evidence of a positive association between capability pressure and the likelihood of portfolio restructuring is reported. The results lend credibility to the implications of capability pressure characterized by the year-end effects of assurance providers. This position is consistent with earlier studies on portfolio management decisions of external auditors.

Keywords: Portfolio restructuring; capability pressure; medium-sized audit firms; auditor-client environment; signal detection.

DOI: 10.1504/JBM.2014.141222

Journal of Business and Management, 2014 Vol.20 No.2, pp.5 - 24

Published online: 05 Sep 2024 *