David Woodliff

SME Survey Methodology: Response Rates, Data Quality, and Cost Effectiveness

Cost effective data collection is an important methodological issue for small and medium enterprise (SME) researchers. There is a generally held view that mail surveys are the most efficient means of collecting empirical data, despite the potential difficulties associated with low response rates. To enhance the usefulness of mail surveys, researchers have suggested a variety of strategies aimed at improving response rates. While previous studies have examined the effect on response rates of many of these strategies, their impact on data quality and on the cost effectiveness of data collection is less well understood. This study evaluates four response–inducing strategies (printing the survey instrument on colored paper, telephone pre–notification, payment of a monetary incentive, and a follow–up mailing) in terms of their effect on data quality, response rates, and cost effectiveness for a population of SMEs.

Audit Fees: the Effects of Auditee, Auditor and Industry Differences

The mathematical modelling of audit fees has emerged in research as one means by which the factors which explain the level and variability of audit fees can be examined. Existing literature shows that auditee size and complexity are major determinants of audit costs incurred by an auditee. Examines the power of these and other variables in explaining the variability of external audit fees for a sample of Australia′s largest listed companies and contributes to the existing literature by examining other potentially important factors which explain audit fees, some of which are unique to the present study. Reports results for the effect of: the presence of particular audit firms (for example, Coopers & Lybrand as opposed to say, Price Waterhouse); the extent of the level of internal audit in the auditee and; industrial classification of the auditee (for example, mining, manufacturing, retail, etc.). Results show that a very high proportion of reported audit fees can be explained by linear regression models, especially for certain auditors (for example, Peat Marwick, where over 93 per cent of the variability in fees can be explained by the model) and for certain industries (for example, the building industry, where over 90 per cent of variability is explained). Notes several limitations, especially those relating to measurement difficulties.

Market reaction to published and non-published corporate loan announcements

Prior research examining the role of financial intermediaries in reducing the problems of information asymmetry has reported that borrowers experience a positive share price reaction to credit agreement announcements. However, it is generally acknowledged that these studies have the potential for a reporting bias because they use only one source of information for credit agreement announcements. To examine this reporting bias, we distinguish between “published” and “non-published” announcements in Australia. We find that borrowers’ share prices react positively to announcements that are published in both the financial press and by a dedicated information provider. No statistically significant reaction is observed for the non-published credit agreements.

Developing an instrument to examine the goals of SME owner-operators

Abstract The aim of this study was to develop a parsimonious scale to measure the goals (objectives) of SME owner–operators. Our results, using a combination of both focus groups and surveys, indicate (as expected) that SME owner–operator goals cannot be satisfactorily proxied by economic factors alone but can be appropriately assessed using four multi-item factors (extrinsic rewards; time flexibility; family; and staff relations) and three single-item measures (customer relations; independence; and intrinsic rewards). Given the results of our tests of concurrent validity are generally as expected, we suggest that the parsimonious scale developed in this study can be used to appropriately assess the goals of SME owner–operators and, therefore, the performances of their firms.