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- The relationship between soft skills, stress and reduced audit quality practicesPublication . Samagaio, Antonio; Morais Francisco, Paulo; Felício, TeresaPurposeThis study aims to identify the effect of soft skills as a driver of audit quality and their moderating role in the relationship between stress and the propensity for auditors to engage in reduced audit quality practices (RAQP).Design/methodology/approachThis study uses a sample of 130 auditors, whose data were collected through an electronic questionnaire. The results were derived from the partial least squares-structural equation modelling method.FindingsThe findings show that the propensity to incur RAQP increases when auditors are under job stressors but decreases when individuals have resilience and time management skills. Moreover, the results suggest that the moderating effect of these two soft skills can effectively reduce the auditors' propensity to engage in dysfunctional actions and judgments in auditing. Emotional intelligence and self-efficacy skills are shown not to affect RAQP.Originality/valueThis study adds to previous research on auditors' drivers for supplying audit quality, by providing evidence of auditor characteristics as a critical input to audit quality. The results emphasize the importance of researchers including in models the moderating effect of soft skills on the relationship between audit quality and determinants associated with audit firms, clients or the regulatory framework.
- A survey of corporate finance practices in micro-enterprises: an exploratory analysis conditional on firm and manager characteristicsPublication . Morais Francisco, PauloThis study outlines the findings from a survey of 208 micro-enterprises (MEs) in Portugal, focusing on their corporate finance practices, including working capital management (WCM), financing and investment decisions, the adoption of accounting information systems (AIS) and the use of financial data. Both an unconditional exploratory study and a study conditional on the characteristics of the ME and its manager are conducted. The unconditional results reveal direct CEO involvement in cash management and accounts receivable in MEs. While these companies use AIS for financial reporting, the use of financial ratios is uncommon. Additionally, these MEs do not frequently calculate the cost of capital and primarily rely on the payback rule as an investment decision criterion. With respect to the conditional analysis, the results indicate that factors such as size and managers' education, especially in finance, significantly influence the sophistication of corporate finance functions. Moreover, management diversity emerges as a key driver across various financial functions, and family businesses demonstrate heightened concern for these financial aspects. The study concludes by recommending the promotion of financial education for ME managers to enhance their financial management practices. Particularly, it advocates for targeted financial literacy policies and training and the adoption of advanced financial tools to support the growth and sustainability of MEs.