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1 – 10 of over 5000Hui Jie Li and Deqing Tan
The purpose of the study is to investigate strategies for enhancing pollution oversight by local governments while reducing government-enterprise collusion (GEC) levels…
Abstract
Purpose
The purpose of the study is to investigate strategies for enhancing pollution oversight by local governments while reducing government-enterprise collusion (GEC) levels. Additionally, the factors influencing pollution control efforts at incineration plants are explored. Potential approaches to improving them and for effectively reducing waste incineration pollution are suggested.
Design/methodology/approach
The authors examined the most effective methods for mitigating incineration-related pollution and preventing collusion and developed a differential game model involving interactions between local governments and incineration plants. The findings of this work have significant policy implications for central governments worldwide seeking to regulate waste incineration practices.
Findings
The results indicate that, first, elevating environmental assessment standards can incentivize local governments to improve their oversight efforts. Second, collusion between incineration plants and local governments can be deterred by transferring benefits from the plants to the local government, while increased supervision by the central government and the enforcement of penalties for collusion can also mitigate collusion. Third, both central and local governments can bolster their supervisory and penalty mechanisms for instances of excessive pollution, encouraging incineration plants to invest more in pollution control. Finally, when the central government finds it challenging to detect excessive incineration-related pollution, enhancing rewards and penalties at the local government level can be a viable alternative.
Originality/value
This study stands out by considering the dynamic nature of pollutants. A differential game model is constructed which captures the evolving dynamics between local governments and incineration plants, offering insights regarding the prevention of collusion from a dynamic perspective. The findings may provide a valuable reference for governments as they develop and enforce regulations while motivating incineration plants to actively engage in reducing waste-incineration pollution.
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Ane Haugdal, Frode Kjærland, Levi Gårseth-Nesbakk and Are Oust
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian…
Abstract
Purpose
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian authorities provides the opportunity for an empirical study.
Design/methodology/approach
The authors adopt a two-stage strategy to investigate the existence of earnings management, using the Jones (1991) and modified Jones (Dechow et al., 1995) models to construct a random-effects model.
Findings
The authors test the hypothesis that, given decentralisation of control, there will be an increase in opportunistic financial reporting. This study's findings suggest that this is not the case, thereby indicating that a soft control regime does not diminish discipline in municipalities.
Practical implications
This study has practical implications for policymaking in the public sector. Its findings suggest that municipalities do not engage in more earnings management under a soft regulatory regime. Hence, other authorities should consider adopting a soft regulatory approach to controlling local governments and their financial reporting systems.
Originality/value
This study contributes to a growing body of literature regarding earnings management by local governments. The authors investigate a hypothesis previously untested in the literature by comparing the degree of earnings management under different regulatory control regimes.
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Gifty Kenetey and Boris Popesko
This study aimed to examine the adoption of consortium blockchain technology to ensure interoperability for the transparency of budgetary control in Ghanaian local government.
Abstract
Purpose
This study aimed to examine the adoption of consortium blockchain technology to ensure interoperability for the transparency of budgetary control in Ghanaian local government.
Design/methodology/approach
This study is based on the design science research (DSR) observational technique for developing a consortium blockchain budgetary control system for Ghana's local government.
Findings
The study resulted in the design of a consortium blockchain monitoring and evaluation system to set up a mechanism to monitor various budget projects, processes and transactions for Ghana's local government. The findings also proved Ghana is ideally positioned to gain an advantage from designed artefacts such as ours, given its digital financial service (DFS) policy. In addition, the evaluation of the designed artefact proves there will be a positive impact on budgetary processes by addressing transparency concerns; however, the success of this concern depends on how the local government organisation embraces the artefact.
Research limitations/implications
The study sheds light on budget monitoring and evaluation tied to peer-to-peer (P2P) participation in the public sector via an advanced administrative digitalised networking and communication algorithm (A Distributed Ledger Technology - blockchain). The difference between the designed artefact and the traditional M&E system is argued. The study is limited by the paradoxes and inefficiencies of the integration of blockchain into the Ghanaian local government but, at the same time, presents a high level of certainty and possibility.
Practical implications
The proposed artefact has presented relevance because it is a new solution to existing concerns like trust, transparency, accountability and compliance, thereby improving local government budget administration.
Originality/value
The study has offered unique and new methods, guidelines and designs for tracking various budget projects and processes beyond the conventional technology-driven approach via DSR, exhibiting a unique solution for solving budget transparency, trust, accountability, compliance and data accessibility concerns.
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Huimin Li, Boxin Dai, Yongchao Cao, Limin Su and Feng Li
Trust is the glue that holds cooperative relationships together and often exists in an asymmetric manner. The purpose of this study is to explore how to mitigate the issue of…
Abstract
Purpose
Trust is the glue that holds cooperative relationships together and often exists in an asymmetric manner. The purpose of this study is to explore how to mitigate the issue of losses or increased transaction costs caused by opportunistic behavior in a soft environment where trust asymmetry is quite common and difficult to avoid.
Design/methodology/approach
This study focuses on examining asymmetric trust between the government and the private sector in public-private partnership (PPP) projects. Drawing upon both project realities and relevant literature, the primary conditional variables influencing asymmetric trust are identified. These variables encompass power perception asymmetry, information asymmetry, interaction behavior, risk perception differences and government-side control. Subsequently, through the use of a survey questionnaire, binary-matched data from both the government and the private sector are collected. The study employs fuzzy-set qualitative comparative analysis (fsQCA) to conduct a configurational analysis, aiming to investigate the causal pathways that trigger asymmetric trust.
Findings
No single conditional variable is a necessary condition for the emergence of trust asymmetry. The pathways leading to a high degree of trust asymmetry can be categorized into two types: those dominated by power perception and those involving a combination of multiple factors. Differences in power perception play a crucial role in the occurrence of high trust asymmetry, yet the influence of other conditional variables in triggering trust asymmetry should not be overlooked.
Originality/value
The findings can contribute to advancing the study of trust relationships in the field of Chinese PPP projects. Furthermore, they hold practical value in facilitating the enhancement of trust relationships between the government and the private sector.
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Hu Dan Semba and Lefei Wu
The Chinese data setting allows researchers to explore the influence of local versus national (central) government ownership on companies. This study aims to examine the influence…
Abstract
Purpose
The Chinese data setting allows researchers to explore the influence of local versus national (central) government ownership on companies. This study aims to examine the influence of government ownership (local versus national) and auditor choice (choosing larger or smaller firms) on audit pricing in China.
Design/methodology/approach
This study executed three panel data regressions to examine the two hypotheses using 19,626 observations from 2009 to 2017 in the Chinese data setting. This study also uses the Sobel test to investigate the moderating effect of auditor choice.
Findings
This study first examines whether choosing a large audit firm positively influences audit pricing and whether listed state-owned enterprises (SOEs) charge less audit fees to audit firms after controlling for various variables. However, the interaction influence of government ownership and audit firm size on audit pricing is positive, suggesting that a large audit firm charges a client company more, even if the client is an SOE. More importantly, when we divide SOEs into national- and local-SOEs, the results of the influence of auditor choice, government ownership and the interaction of government ownership on audit pricing are consistent (plus, minus, plus), and audit firms charge local-SOEs less than national-SOEs. Furthermore, from the additional analysis, this study finds that the strong auditor type has a moderate effect on the case of local-SOEs on audit pricing and local-SOEs choose smaller auditors.
Originality/value
Research on the differences between local and national government ownership is limited. This study adds empirical results from this perspective. In particular, the findings suggest a further audit pricing research direction to consider the influence of client companies’ ownership types and auditor choice, especially in countries with planned economies.
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Yani Dong, Yan Li, Hai-Yan Hua and Wei Li
As the current Coronavirus 2019 pandemic eases, international tourism, which was greatly affected by the outbreak, is gradually recovering. The attraction of countries to overseas…
Abstract
Purpose
As the current Coronavirus 2019 pandemic eases, international tourism, which was greatly affected by the outbreak, is gradually recovering. The attraction of countries to overseas tourists is related to their overall performance in the pandemic. This research integrates the data of vaccination of different countries, border control policy and holidays to explore their differential impacts on the overseas tourists’ intention during the pandemic. This is crucial for destinations to built their tourism resilience. It will also help countries and industry organizations to promote their own destinations to foreign tourism enterprises.
Design/methodology/approach
This study proposes an analysis based on panel data for ten countries over 1,388 days. The coefficient of variation is used to measure monthly differences of Chinese tourists’ intention to visit overseas country destinations.
Findings
Results show that, for tourist intention of going abroad: border control of the destination country has a significant negative impact; daily new cases in the destination country have a significant negative impact; domestic daily new cases have a significant positive impact; holidays have significant negative impact; daily vaccination of the destination countries has significant positive impact; and domestic daily vaccination have negative significant impact.
Research limitations/implications
First, there is a large uncertainty in studying consumers’ willingness to travel abroad in this particular period because of unnecessary travel abroad caused by the control of the epidemic. Second, there are limitations in studying only Chinese tourists, and future research should be geared toward a broader range of research pairs.
Practical implications
First, from the government perspective, a humane response can earn the respect and trust of tourists. Second, for tourism industry, to encourage the public take vaccine would be beneficial for both the tourism destination and foreign tourism companies. The same effect can be achieved by helping tourists who are troubled by border control.
Social implications
First, this research provides suggestions for the government and the tourism industry to deal with such a crisis in the future. Second, this study found that vaccination has a direct impact on tourism. This provides a basis for improving people’s willingness to vaccinate. Thirdly, this study proves suggestion for the destinations to build tourism resilience.
Originality/value
This study analyzes the unique control measures and vaccination in different countries during the pandemic, then provides suggestions for the tourism industry to prepare for the upcoming postpandemic tourism recovery. This study is valuable for improving the economic resilience of tourism destinations. Additionally, it helps to analyze the advantages and disadvantages of different restrain policies around the world.
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Huthaifa Al-Hazaima, Mary Low and Umesh Sharma
This paper applies a stakeholder salience theoretical framework to facilitate the understanding of the roles salient stakeholders can have in the integration of education for…
Abstract
Purpose
This paper applies a stakeholder salience theoretical framework to facilitate the understanding of the roles salient stakeholders can have in the integration of education for sustainable development, one of the important Sustainable Development Goals (SDGs), into Jordan’s university accounting education.
Design/methodology/approach
We used stakeholder salience theory to inform our study. This study adopted a qualitative research method. The study used semi-structured interviews to collect qualitative, open-ended data that explored the salient stakeholders’ thoughts, beliefs and feelings about their roles in influencing the integration of education for sustainable development into the Jordanian accounting curriculum.
Findings
The results indicate that education for sustainable development in accounting is important; however, most Jordanian salient stakeholders indicate their inability to integrate sustainable education into the accounting curriculum due to their lack of power to do so. The findings show that there is currently an inappropriate distribution of power, legitimacy and urgency amongst the salient stakeholders, who indicate that a progressive education solution is required in the critical area of education for sustainable development in accounting. This research indicates that a significant number of salient stakeholders would like the Jordanian government to provide power, legitimacy and urgency to enable accounting educators to become definite stakeholders as this will enable them to integrate sustainable education into the accounting curriculum.
Research limitations/implications
The study is limited to Jordan only. The paper draws attention to the need for an appropriate distribution of power, legitimacy and urgency amongst salient stakeholders in Jordan.
Practical implications
This paper provides evidence that the salient stakeholders in this emerging economy want to make changes in their education system to address climate change concerns, an important SDG, through a better education curriculum for sustainable development in Jordanian universities.
Social implications
Accounting educators should be given the power to make changes in the accounting curriculum, such as integrating education for sustainable development.
Originality/value
There is an inappropriate distribution of power, legitimacy and urgency amongst the Jordanian salient stakeholders and this imbalance hinders the integration of education for sustainable development into the accounting curriculum.
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Ammar Yasir, Xiaojian Hu, Murat Aktan, Pablo Farías and Abdul Rauf
Contemporary changes have occurred in country-level policies and tourists’ intentions in recent years. The role of maintaining a country’s image is trendy in crisis control but…
Abstract
Purpose
Contemporary changes have occurred in country-level policies and tourists’ intentions in recent years. The role of maintaining a country’s image is trendy in crisis control but has not yet been discussed in domestic tourism research. Extending the Stimulus Organism Response model, this study aims to focus on “trustable WOM creation” in China. In addition, it aimed to discover how behavioral changes encourage domestic tourism intention (DTI).
Design/methodology/approach
This study explored the mediating role of DTI and the moderating role of maintenance of country image (MCI) for trustable word of mouth (WOM) creation. Using the snowball sampling technique, a structural equation modeling analysis (Smart PLS-4) was employed to analyze the data of 487 Chinese tourists.
Findings
Findings confirm that behavioral changes positively encourage domestic tourism and discourage international tourism, with significant negative moderation by MCI. MCI has an insignificant positive moderating effect between government-media trust and DTI. Furthermore, DTI positively and directly affects the creation of trustable WOM. In addition, it had a 20% mediation effect (VAF%) between behavioral changes and WOM creation, higher than the rejected mediation effect (12%), in the causal relationship between government-media trust and WOM creation.
Practical implications
WOM creation varies from different behavioral changes, but findings suggest that government-media trust and DTI influenced it significantly. Based on the study findings, the government and media can enhance domestic tourism by maintaining the country’s image. These findings both encourage and control the recovery of tourism.
Originality/value
This study provides a theoretical explanation for tourists' behavioral changes during the pandemic. Moreover, it shows that despite avoiding international tourism due to behavioral changes and government-media trust, MCI moderation with the mediation effect of DTI can create trustable WOM. To the best of the authors’ knowledge, this is the first study to theoretically promote tourism through DTI-induced psychology as a mediator and an organism affect prevailing among Chinese tourists.
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Francesco Capalbo, Luca Galati, Claudio Lupi and Margherita Smarra
This paper aims to examine how proportional appropriation systems affect the quality of financial reporting in entities controlled by local governments.
Abstract
Purpose
This paper aims to examine how proportional appropriation systems affect the quality of financial reporting in entities controlled by local governments.
Design/methodology/approach
The authors examine this issue using the setting of Italian municipally owned entities (MOEs) following the implementation of a new accounting regulation that limits the spending power of the participating municipality when the owned entity reports losses. The authors apply Benford's law on net income figures using the Chi-square and Z-tests on the adjusted version of the Mean Absolute Deviation (MAD) criterion to spot any sign of low data quality. The sample, which consists of 2,120 MOEs, covers the years 2010–2019 and is evenly divided into the periods pre- and post-policy introduction.
Findings
Widespread data anomalies were detected following the introduction of the new regulation for MOEs controlled by local governments. Evidence is stronger for entities owned entirely by municipalities. The results suggest that the extent of data manipulation grows as the municipality's ownership stake increases, consistent with the hypothesis that a decrease in spending power through the appropriation of financial resources affects earnings management practices in municipally controlled entities.
Practical implications
This paper sheds light on government-based accounting policies by documenting evidence of somewhat inefficient responses by those responsible for the preparation of financial statements on behalf of municipally owned entities, and, accordingly, insights are provided to help review these policies so as to forestall even indirectly detrimental repercussions on public services.
Originality/value
This paper extends prior research in public-sector earnings management by being the first to test whether MOEs manipulate their earnings as a consequence of participating municipalities' reduced spending capability. Understanding factors influencing earnings management practices driven by governments, other than political incentives, is still an open issue.
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Evy Rahman Utami and Zuni Barokah
This study aims to investigate the determinants of anti-corruption disclosures by construction firms in Asia-Pacific countries.
Abstract
Purpose
This study aims to investigate the determinants of anti-corruption disclosures by construction firms in Asia-Pacific countries.
Design/methodology/approach
The sample comprises construction companies from seven Asia-Pacific countries from 2015 to 2019. The authors hand-collected data on anti-corruption disclosures by using content analysis.
Findings
This study provides empirical evidence that government ownership, country-level accounting competence and high-quality auditors increase companies’ anti-corruption disclosures. Meanwhile, this study finds that uncertainty avoidance does not affect companies’ anti-corruption disclosures.
Practical implications
This study has a number of implications. First, government and professional accountant organizations need to improve accountants’ knowledge and competence through education, training and continuous professional development. Second, public accounting firms need to ensure the quality of their auditors, particularly in the technical competence in financial and nonfinancial reporting. Finally, universities must improve and update their curriculum regarding nonfinancial reporting issues.
Originality/value
This study is among the first to examine anti-corruption disclosure practices in the most corrupted settings, i.e. the construction industry in Asia-Pacific countries. It uses the isomorphism perspective to explain the influence of government ownership, country-level accounting competence and high-quality auditors on anti-corruption disclosure transparency. The number of prior studies investigating this association is very limited. Moreover, disclosures of anti-corruption information are complex and sensitive; thus, coercive, normative and mimetic pressures are required to achieve higher transparency and sustainability.
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