Texas A&M International University

The author discusses common method bias in the context of structural equation modeling employing the partial least squares method (PLS-SEM). Two datasets were created through a Monte Carlo simulation to illustrate the discussion: one contaminated by common method bias, and the other not contaminated. A practical approach is presented for the identification of common method bias based on variance inflation factors generated via a full collinearity test. The author's discussion builds on an illustrative model in the field of e-collaboration, with outputs generated by the software WarpPLS. They demonstrate that the full collinearity test is successful in the identification of common method bias with a model that nevertheless passes standard convergent and discriminant validity assessment criteria based on a confirmation factor analysis.

Increasing emphasis has been placed on the use of effect size reporting in the analysis of social science data. Nonetheless, the use of effect size reporting remains inconsistent, and interpretation of effect size estimates continues to be confused. Researchers are presented with numerous effect sizes estimate options, not all of which are appropriate for every research question. Clinicians also may have little guidance in the interpretation of effect sizes relevant for clinical practice. The current article provides a primer of effect size estimates for the social sciences. Common effect sizes estimates, their use, and interpretations are presented as a guide for researchers.

Variance-based structural equation modeling is extensively used in information systems research, and many related findings may have been distorted by hidden collinearity. This is a problem that may extend to multivariate analyses, in general, in the field of information systems as well as in many other fields. In multivariate analyses, collinearity is usually assessed as a predictor-predictor relationship phenomenon, where two or more predictors are checked for redundancy. This type of assessment addresses vertical, or “classic”, collinearity. However, another type of collinearity may also exist, here called “lateral” collinearity. It refers to predictor-criterion collinearity. Lateral collinearity problems are exemplified based on an illustrative variance-based structural equation modeling analysis. The analysis employs WarpPLS 2.0, with the results double-checked with other statistical analysis software tools. It is shown that standard validity and reliability tests do not properly capture lateral collinearity. A new approach for the assessment of both vertical and lateral collinearity in variance-based structural equation modeling is proposed and demonstrated in the context of the illustrative analysis.

Abstract Partial least squares‐based structural equation modelling (PLS‐SEM) is extensively used in the field of information systems, as well as in many other fields where multivariate statistical methods are used. One of the most fundamental issues in PLS‐SEM is that of minimum sample size estimation. The ‘10‐times rule’ has been a favourite because of its simplicity of application, even though it tends to yield imprecise estimates. We propose two related methods, based on mathematical equations, as alternatives for minimum sample size estimation in PLS‐SEM: the inverse square root method, and the gamma‐exponential method. Based on three Monte Carlo experiments, we demonstrate that both methods are fairly accurate. The inverse square root method is particularly attractive in terms of its simplicity of application. © 2016 John Wiley & Sons Ltd

We find no significant association between non–audit service fees and impaired auditor independence, where auditor independence is surrogated by auditors’ propensity to issue going concern audit opinions. We also find no association between going concern opinions and either total fees or audit fees. In addition, our findings are robust to controlling for unexpected fees, to controlling for endogeneity among our variables, and to several alternative research design specifications. Our results are consistent with market–based incentives, such as loss of reputation and litigation costs, dominating the expected benefits from compromising auditor independence.

Abstract. Despite the growing prominence of canonical action research (CAR) in the information systems discipline, a paucity of methodological guidance continues to hamper those conducting and evaluating such studies. This article elicits a set of five principles and associated criteria to help assure both the rigor and the relevance of CAR in information systems. The first principle relates to the development of an agreement that facilitates collaboration between the action researcher and the client. The second principle is based upon a cyclical process model for action research that consists of five stages: diagnosis, planning, intervention, evaluation and reflection. Additional principles highlight the critical roles of theory, change through action, and the specification of learning in terms of implications for both research and practice. The five principles are illustrated through the analysis of one recently published CAR study.

Recently, the SEC has called for research regarding the relationship between audit tenure and audit failures. In this study, we address this issue by examining prior audit reports for a sample of companies entering into bankruptcy during the period 1996–1998. We use a multivariate analysis to test for the association between the type of audit opinion issued on the financial statements immediately prior to bankruptcy and the length of auditor tenure. Our results indicate that there were significantly more audit reporting failures in the earlier years of the auditor/client relationship than when auditors had served these clients for longer tenures. The results do not support the arguments of those who propose mandatory auditor rotation and suggest that, contrary to the concerns expressed by the SEC, there is an inverse relationship between auditor tenure and audit reporting failures.

The composite-factor estimation dichotomy has been the epicenter of a long and ongoing debate among proponents and detractors of the use of the partial least squares (PLS) approach for structural equation modeling (SEM). In this brief research note the author discusses the implementation of a new method to conduct factor-based PLS-SEM analyses, which could be a solid step in the resolution of this debate. This method generates estimates of both true composites and factors, in two stages, fully accounting for measurement error. The author's discussion is based on an illustrative model in the field of e-collaboration. A Monte Carlo experiment suggests that model parameters generated by the method are asymptotically unbiased. The method is implemented as part of the software WarpPLS, starting in version 5.0. This note provides enough details for the method's implementation in other venues such as R and GNU Octave.

Publication bias remains a controversial issue in psychological science. The tendency of psychological science to avoid publishing null results produces a situation that limits the replicability assumption of science, as replication cannot be meaningful without the potential acknowledgment of failed replications. We argue that the field often constructs arguments to block the publication and interpretation of null results and that null results may be further extinguished through questionable researcher practices. Given that science is dependent on the process of falsification, we argue that these problems reduce psychological science's capability to have a proper mechanism for theory falsification, thus resulting in the promulgation of numerous "undead" theories that are ideologically popular but have little basis in fact.

Use of the partial least squares (PLS) method has been on the rise among e-collaboration researchers. It has also seen increasing use in a wide variety of fields of research. This includes most business-related disciplines, as well as the social and health sciences. The use of the PLS method has been primarily in the context of PLS-based structural equation modeling (SEM). This article discusses a variety of advanced PLS-based SEM uses of critical coefficients such as standard errors, effect sizes, loadings, cross-loadings and weights. Among these uses are advanced mediating effects tests, comprehensive multi-group analyses, and measurement model assessments.

This article reviews theories of organizational communication with a special emphasis on theories that have been used to explain computer-mediated communication phenomena. Among the theories reviewed, two—social presence and media richness—are identified as problematic and as posing obstacles to future theoretical development. While shortcomings of these theories have been identified in the past, some of these theories' predictions have been supported by empirical evidence. It is argued that this theoretical dilemma can be resolved based upon principles derived from a modern version of Darwin's theory of evolution by natural selection and the application of those principles to the understanding of human evolution. A new theoretical model called the psychobiological model is developed, which predicts variations in cognitive effort in computer-mediated collaborative tasks. The model proposes that there is a negative causal link between the “naturalness” of a computer-mediated communication medium, which is the similarity of the medium to the face-to-face medium, and the cognitive effort required from an individual using the medium for knowledge transfer. The model also states that this link is counterbalanced by what are referred to as “schema alignment” and “cognitive adaptation.” The schema alignment construct refers to the similarity between the mental schemas of an individual and those of other participant(s). The cognitive adaptation construct refers to an individual's level of schema development associated with the use of a particular medium. Finally, the model states that the degree to which the medium supports an individual's ability to convey and listen to speech is particularly significant in defining its naturalness, more so than the medium's degree of support for the use of facial expressions and body language. An example is offered of how the psychobiological model can be tested in the context provided by the customer support area of an online broker.

The issue of publication bias in psychological science is one that has remained difficult to address despite decades of discussion and debate. The current article examines a sample of 91 recent meta-analyses published in American Psychological Association and Association for Psychological Science journals and the methods used in these analyses to identify and control for publication bias. Of the 91 studies analyzed, 64 (70%) made some effort to analyze publication bias, and 26 (41%) reported finding evidence of bias. Approaches to controlling publication bias were heterogeneous among studies. Of these studies, 57 (63%) attempted to find unpublished studies to control for publication bias. Nonetheless, those studies that included unpublished studies were just as likely to find evidence for publication bias as those that did not. Furthermore, authors of meta-analyses themselves were overrepresented in unpublished studies acquired, as compared with published studies, suggesting that searches for unpublished studies may increase rather than decrease some sources of bias. A subset of 48 meta-analyses for which study sample sizes and effect sizes were available was further analyzed with a conservative and newly developed tandem procedure of assessing publication bias. Results indicated that publication bias was worrisome in about 25% of meta-analyses. Meta-analyses that included unpublished studies were more likely to show bias than those that did not, likely due to selection bias in unpublished literature searches. Sources of publication bias and implications for the use of meta-analysis are discussed.

ABSTRACT We examine the impact of social capital on audit fees. We find that firms headquartered in U.S. counties with high social capital pay lower audit fees. Social capital measures the level of mutual trust in a region. Our results suggest that auditors judge the trustworthiness of their clients based on where the firm is headquartered and charge a premium when they trust the firm less. The basis of our results is the examination of more than 28,000 audit fees for more than 5,000 firms spanning the period of 2000 to 2009. The results are robust to controlling for a large number of firm-level and county-level characteristics. JEL Classifications: M42; M14.

E-communication in businesses has been the target of intense research. The theoretical hypotheses that have informed the media richness hypothesis have been influential in some circles and have also been strongly attacked by social theorists. It is argued in this paper that this theoretical polarization involving advocates of the media richness hypothesis and social theorists is due to two problems. The first is that there is a wealth of empirical evidence that provides direct support for the notion that human beings prefer the face-to-face medium for a variety of business tasks that involve communication, which seems to provide support for the media richness hypothesis. The second problem is that the media richness hypothesis is built on a vacuum, as no underlying explanation was ever presented by media richness theorists for our predisposition toward rich (or face-to-face) media. The main goal of this paper is to offer a solution to these problems by providing an alternative to the media richness hypothesis, referred to here as media naturalness hypothesis, developed based on Darwin's theory of evolution. The media naturalness hypothesis argues that, other things being equal, a decrease in the degree of naturalness of a communication medium (or its degree of similarity to the face-to-face medium) leads to the following effects in connection with a communication interaction: (a) increased cognitive effort, (b) increased communication ambiguity, and (c) decreased physiological arousal. Like the media richness hypothesis, the media naturalness hypothesis has important implications for the selection, use, and deployment of e-communication tools in organizations. However, unlike the media richness hypothesis, the media naturalness hypothesis is compatible with social theories of behavior toward e-communication tools. Among other things, this paper shows that the media naturalness hypothesis (unlike its media richness counterpart) is compatible with the notion that, regardless of the obstacles posed by low naturalness media, individuals using those media to perform collaborative tasks may achieve the same or better task-related outcomes than individuals using media with higher degrees of naturalness.

Variance-based structural equation modeling is extensively used in information systems research, and many related findings may have been distorted by hidden collinearity. This is a problem that may extend to multivariate analyses, in general, in the field of information systems as well as in many other fields. In multivariate analyses, collinearity is usually assessed as a predictor-predictor relationship phenomenon, where two or more predictors are checked for redundancy. This type of assessment addresses vertical, or “classic”, collinearity. However, another type of collinearity may also exist, here called “lateral” collinearity. It refers to predictor-criterion collinearity. Lateral collinearity problems are exemplified based on an illustrative variance-based structural equation modeling analysis. The analysis employs WarpPLS 2.0, with the results double-checked with other statistical analysis software tools. It is shown that standard validity and reliability tests do not properly capture lateral collinearity. A new approach for the assessment of both vertical and lateral collinearity in variance-based structural equation modeling is proposed and demonstrated in the context of the illustrative analysis.

The functioning of corporate audit committees was criticized in recent years by the Treadway Commission, the Public Oversight Board, the Kirk Panel, and the SEC Chairman. In response, the NYSE and NASD sponsored the Blue Ribbon Committee (BRC) on Improving the Effectiveness of Corporate Audit Committees. The BRC Report includes recommendations aimed at strengthening director independence and qualifications, and highlights the role of internal auditors in assisting audit committees in the corporate governance process. Moreover, the first three recommendations of the BRC relate to audit committee composition: absence of inside or “gray” directors, and presence of a member with financial expertise. This study examines the association between audit committee composition and the committee's interaction with internal auditing. Our results, based on responses from chief internal auditors of 114 public companies, indicate that committees comprised solely of independent directors and with at least one member having an accounting or finance background are more likely to (1) have longer meetings with the chief internal auditor; (2) provide private access to the chief internal auditor; and (3) review internal audit proposals and results of internal auditing. These findings provide empirical support for the BRC's recommendations related to audit committee composition.

Abstract Turfgrasses have been utilized by humans to enhance their environment for more than 10 centuries. The complexity and comprehensiveness of these environmental benefits that improve our quality‐of‐life are just now being quantitatively documented through research. Turfgrass benefits may be divided into (i) functional, (ii) recrcational, and (iii) aesthetic components. Specific functional benefits include: excellent soil erosion control and dust stabilization thereby protecting a vital soil resource; improved recharge and quality protection of groundwater, plus flood control; enhanced entrapment and biodegradation of synthetic organic compounds; soil improvement that includes CO 2 conversion; accelerated restoration of disturbed soils; substantial urban heat dissipation‐temperature moderation; reduced noise, glare, and visual pollution problems; decreased noxious pests and allergy‐related pollens; safety in vehicle operation on roadsides and engine longevity on airfields; lowered fire hazard via open, green turfed firebreaks; and improved security of sensitive installations provided by high visibility zones. The recrcational benefits include a low‐cost surface for outdoor sport and leisure activities, enhanced physical health of participants, and a unique low‐cost cushion against personal impact injuries. The aesthetic benefits include enhanced beauty and attractiveness; a complimentary relationship to the total landscape ecosystem of flowers, shrubs and trees; improved mental health with a positive therapeutic impact, social harmony and stability; improved work productivity; and an overall better quality‐of‐life, especially in densely populated urban areas.

Two studies examined the relationship between exposure to violent video games and aggression or violence in the laboratory and in real life. Study 1 participants were either randomized or allowed to choose to play a violent or nonviolent game. Although males were more aggressive than females, neither randomized exposure to violent-video-game conditions nor previous real-life exposure to violent video games caused any differences in aggression. Study 2 examined correlations between trait aggression, violent criminal acts, and exposure to both violent games and family violence. Results indicated that trait aggression, family violence, and male gender were predictive of violent crime, but exposure to violent games was not. Structural equation modeling suggested that family violence and innate aggression as predictors of violent crime were a better fit to the data than was exposure to video game violence. These results question the common belief that violent-video-game exposure causes violent acts.

The cause of the end-Cretaceous mass extinction is vigorously debated, owing to the occurrence of a very large bolide impact and flood basalt volcanism near the boundary. Disentangling their relative importance is complicated by uncertainty regarding kill mechanisms and the relative timing of volcanogenic outgassing, impact, and extinction. We used carbon cycle modeling and paleotemperature records to constrain the timing of volcanogenic outgassing. We found support for major outgassing beginning and ending distinctly before the impact, with only the impact coinciding with mass extinction and biologically amplified carbon cycle change. Our models show that these extinction-related carbon cycle changes would have allowed the ocean to absorb massive amounts of carbon dioxide, thus limiting the global warming otherwise expected from postextinction volcanism.

Evidence from behavioral genetics supports the conclusion that a significant amount of the variance in antisocial personality and behavior (APB) is due to genetic contributions. Many scientific fields such as psychology, medicine, and criminal justice struggle to incorporate this information with preexisting paradigms that focused exclusively on external or learned etiology of antisocial behavior. The current paper presents a meta-analytic review of behavioral genetic etiological studies of APB. Results indicated that 56% of the variance in APB can be explained through genetic influences, with 11% due to shared non-genetic influences, and 31% due to unique non-genetic influences. This data is discussed in relation to evolutionary psychological theory.