Related papers: Audit fees in auditor switching

We uncover a new anomaly in asset pricing that is linked to the remuneration: the more a company spends on salaries and benefits per employee, the better its stock performs, on average. Moreover, the companies adopting similar remuneration…

Financial firms have gone through three major technological waves: computerization in the 1980s and 1990s, the rise of indexing and passive investing in the 2000s and 2010s, and the AI and automation wave from roughly 2015 to the present.…

We propose an evolutionary competition model to investigate the green transition of firms, highlighting the role of adjustment costs, dynamically adjusted transition risk, and green technology progress in this process. Firms base their…

This paper studies the switching of trading strategies and its effect on the market volatility in a continuous double auction market. We describe the behavior when some uninformed agents, who we call switchers, decide whether or not to pay…

I study the role of minimum wage as an anchor for judgements of the fairness of wages by both human subjects and artificial intelligence (AI). Through surveys of human subjects enrolled in the crowdsourcing platform Prolific.co and queries…

Employee turnover refers to an individual's termination of employment from the current organization. It is one of the most persistent challenges for firms, especially those ones in Information Technology (IT) industry that confront high…

Employee's knowledge is an organization asset. Turnover may impose apparent and hidden costs and irreparable damages. To overcome and mitigate this risk, employee's condition should be monitored. Due to high complexity of analyzing…

Interpretable models are important, but what happens when the model is updated on new training data? We propose an algorithm for updating a decision tree while minimising the number of changes to the tree that a human would need to audit.…

Using a survey on wage expectations among students at two Swiss institutions of higher education, we examine the wage expectations of our respondents along two main lines. First, we investigate the rationality of wage expectations by…

This paper provides quasi-experimental evidence on how income taxes affect gross hourly wages, utilizing Danish administrative data and a tax reform that introduced joint taxation. Exploiting spousal income for identification, we present…

As machine learning models become increasingly embedded in societal infrastructure, auditing them for bias is of growing importance. However, in real-world deployments, auditing is complicated by the fact that model owners may adaptively…

Surveys are an indispensable source of data for applied economic research; however, their reliance on self-reported information can introduce bias, especially if core variables such as personal income are misreported. To assess the extent…

While most of the existing literature focused on human-machine interactions with algorithmic systems in advisory roles, research on human behavior in monitoring or verification processes that are conducted by automated systems remains…

AI audits are an increasingly popular mechanism for algorithmic accountability; however, they remain poorly defined. Without a clear understanding of audit practices, let alone widely used standards or regulatory guidance, claims that an AI…

We conducted controlled experimental bias audits for four versions of ChatGPT, which we asked to recommend an opening offer in salary negotiations for a new hire. We submitted 98,800 prompts to each version, systematically varying the…

Several studies of the Job Corps tend to nd more positive earnings effects for males than for females. This effect heterogeneity favouring males contrasts with the results of the majority of other training programmes' evaluations. Applying…

Artificial intelligence (AI) is increasingly intervening in our lives, raising widespread concern about its unintended and undeclared side effects. These developments have brought attention to the problem of AI auditing: the systematic…

Common narratives about automation often pit new technologies against workers. The introduction of advanced machine tools, industrial robots, and AI have all been met with concern that technological progress will mean fewer jobs. However,…

We propose that predictability is a prerequisite for profitability on financial markets. We look at ways to measure predictability of price changes using information theoretic approach and employ them on all historical data available for…

In order to cope with a complex and changing environment, industries seek to find new and more efficient ways to conduct their business. According to previous research, many of these change efforts fail to achieve their intended aims.…