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1 – 10 of over 1000Jeleta Gezahegne Kebede and Vincent Tawiah
The general purpose of the paper is to examine the effect of financial globalization on income inequality. The specific purposes are: 1) To examine the effect of overall financial…
Abstract
Purpose
The general purpose of the paper is to examine the effect of financial globalization on income inequality. The specific purposes are: 1) To examine the effect of overall financial globalization on income inequality. 2) To analyze whether de facto and de jure financial globalization have differential effects on income inequality. 3) To scrutinize whether the effect of financial globalization on income inequality varies across countries of different income groups and quantiles of income inequality.
Design/methodology/approach
The authors employed panel quantile regression using 73 countries over 2000–2016 to examine the effect of financial globalization on income inequality. The authors employed fixed effect and panel quantile regressions and classified the countries into income groups to compare differential effects of financial globalization across different income groups. Further, the authors unbundled financial globalization into de facto and de jure financial globalizations to investigate whether their effects on income inequality vary.
Findings
Overall financial globalization raises income inequality more at lower quantiles of inequality. De jure financial globalization reduces income inequality in high-income countries. In high-income countries, de jure financial globalization has more favorable income distribution at lower quantiles of inequality. In contrast, de facto financial globalization raises inequality regardless of income classification of the countries.
Originality/value
To the best of the authors’ knowledge, the authors for the first time employed panel quantile regression to analyze whether financial globalization affects income inequality across different quantiles. In addition to de facto globalization, the authors used the newly developed de jure financial globalization index to examine its impact on income inequality. The de jure dimension is largely neglected in the literature. The authors provide empirical evidence on how the different dimensions of financial globalization, de facto and de jure, impact inequality in high-income, middle-income and low-income countries.
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Cameron Sabadoz and Lindsay McShane
The purpose of this paper is to bring the concept of “meeting the gaze of the other” into conversation with the organizational accountability literature. This is done by…
Abstract
Purpose
The purpose of this paper is to bring the concept of “meeting the gaze of the other” into conversation with the organizational accountability literature. This is done by integrating “the gaze” phenomenon with Darwall’s (2006) distinction between de jure and de facto authority. In the context of accountability, only de jure accountability entails meeting the gaze of the stakeholder, in that it requires organizations to grant stakeholders the moral authority to hold them to account. Drawing on this work, this paper aims to critically examine the distinction between de jure and de facto in current organizational accountability theorizing and in practice.
Design/methodology/approach
A content analysis of the “letters to the stakeholders” from the Global 100 firms’ accountability/social responsibility reports. Specifically, this paper examines the frequency with which leading companies acknowledge de facto vs de jure accountability, the nature of these statements and toward which stakeholder group they are directed.
Findings
Most firms acknowledge de facto accountability, but few grant de jure standing, making it more likely that firms will ignore claimants they prefer not to morally engage. De jure relationships that are acknowledged tend to be restricted to certain stakeholders such as employees, customers and shareholders. In addition, there are differences in the granting of de jure accountability across industry sectors.
Social implications
This work highlights the importance of acknowledging de jure accountability when engaging with stakeholders, and importantly, it highlights how to integrate consideration for de jure accountability into theorizing on organizational accountability. This analysis suggests that acknowledging de jure accountability vis-a-vis stakeholders can lead to more positive ethical decision-making and stronger relationships. Organizations are encouraged to strengthen their ethical decision-making by granting moral standing to their stakeholders.
Originality/value
Organizational accountability is typically treated as a single construct, yet de jure accountability (vs simply de facto accountability) has been linked to particularly powerful moral effects. This paper examines the critical distinction between de facto and de jure accountability. It makes a compelling case for the importance of acknowledging the gaze of organizational stakeholders.
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The purpose of this paper is to examine the behavior of governments in terms of trade policy design when they experience a lack of foreign resources from international trade after…
Abstract
Purpose
The purpose of this paper is to examine the behavior of governments in terms of trade policy design when they experience a lack of foreign resources from international trade after ensuring the sustainability of their external debt. To do so, the paper defines two concepts of trade space: “De Facto Trade Space” and “De Jure trade space.”
Design/methodology/approach
To conduct this study, the author relies on a panel data set comprising 109 countries over the period 1998–2014. To perform the empirical analysis, the author has mainly used the system generalized methods of moments approach.
Findings
The empirical analysis suggests evidence that trade space matters significantly for trade policy. Indeed, “De Facto Trade Space” is consistently associated with greater trade policy liberalization, with this positive effect being higher, the higher the development level – proxied by the real per capita income – of the concerned country. “De Jure Trade Space” tends to lead to greater trade policy liberalization in less advanced developing countries, but is associated with the adoption of trade restrictive measures in more advanced countries. Additionally, results suggest different impacts on trade policy of “Positive De Jure Trade Space” and “Negative De Jure Trade Space.”
Research limitations/implications
These findings suggest that the trade space, as defined in this study, plays a key role in trade policy design by policymakers.
Practical implications
The current study shows that trade space could significantly matter for trade policy design by policymakers.
Originality/value
To the best of the author’s knowledge, this is the study dealing directly with the “trade space” concept as well as its impact on trade policy.
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Habib Ahmed, Faruq Arif Tajul Ariffin, Yusuf Karbhari and Zurina Shafii
Since International Financial Reporting Standards (IFRS) are not primarily meant for the accounting needs of Islamic banks, the Accounting and Auditing Organisation for Islamic…
Abstract
Purpose
Since International Financial Reporting Standards (IFRS) are not primarily meant for the accounting needs of Islamic banks, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was established to develop specific accounting standards for Shari’ah compliance. The purpose of this paper is to assess the de jure harmonisation between the disclosure requirements of the IFRS-based Malaysian Accounting Standards (MAS) and those of the AAOIFI.
Design/methodology/approach
Using Malaysia as a case study, the paper examines the extent of the de jure congruence between the IFRS-based MAS and AAOIFI’s Financial Accounting Standard No 1 (FAS1), which is considered to be one of the key disclosure standards for Islamic banks. We employ leximetrics and content analysis to analyse these accounting standards and the additional guidelines introduced by the Malaysian Accounting Standards Board (MASB) and the Central Bank of Malaysia (Bank Negara Malaysia, BNM) to identify the gaps between different tiers of MAS and FAS1.
Findings
The study finds that de jure congruence between the IFRS-based MAS and AAOIFI standards has improved through the introduction of additional accounting guidelines by both the MASB and the banking regulator, BNM. However, some gaps remain between the two standards. These gaps may be difficult to completely eliminate due to differences in the fundamental principles underlying the development of both standards.
Originality/value
While some studies have explored the de facto congruence between AAOIFI accounting standards and others, this paper is the first, to the best of the authors’ knowledge, to examine the de jure congruence between those standards with the IFRS-based MAS.
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This paper uses content analysis to compare International Financial Reporting Standards (IFRS)1 with the Local Accounting Standards (LAS) of South Africa (SA), Mauritius and…
Abstract
This paper uses content analysis to compare International Financial Reporting Standards (IFRS)1 with the Local Accounting Standards (LAS) of South Africa (SA), Mauritius and Tanzania. It begins by identifying the equivalence of the local accounting standards of these three countries with IFRS and follows with a content analysis of the definition of terms, accounting treatment and disclosure requirements in the standards. The contents of these three items in each of these countries’ standards are compared with those in the IFRS. A score card is used to record the level of harmony between the LAS and IFRS of each country and between the LAS of each country. The score is compared by running statistical test of significant difference using Wilcoxon Matched Paired test. The paper reports that, except for Tanzania, the local accounting standards of the two other countries are more or less similar to IFRS. As regards the level of harmony between the local accounting standards and IFRS, the score card reveals that the accounting standards of SA are more in harmony with IFRS, followed by Mauritius. A lead table is produced at the end.
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Endang Soewarso, Greg Tower, Phil Hancock and Ross Taplin
The study analyses de jure disclosure harmony between Australia and Singapore by examining selected disclosure requirements from the statutes, stock exchange listing rules and…
Abstract
The study analyses de jure disclosure harmony between Australia and Singapore by examining selected disclosure requirements from the statutes, stock exchange listing rules and five accounting standards. Empirical evidence as to Australian and Singaporean companies' de facto disclosure is provided. Two disclosure indices, specifically the no‐violation‐for‐non‐disclosure (NVND) index and the violation‐for‐non‐disclosure (VND), were used to assess the extent of company's disclosure of the selected requirements contained within their respective country's rules.
Khee Giap Tan, Sasidaran Gopalan and Will Nguyen
The purpose of this paper is to contribute to the literature by introducing a novel index that measures ease of doing business (EDB) at the sub-national level. The authors provide…
Abstract
Purpose
The purpose of this paper is to contribute to the literature by introducing a novel index that measures ease of doing business (EDB) at the sub-national level. The authors provide a comprehensive assessment of both de jure and de facto business conditions in 21 sub-national economies of India, with the help of a holistic framework that encompasses indicators capturing Attractiveness to Investors, Business Friendliness and Competitive Policies (ABC), the three broad environments that constitute the EDB–ABC index.
Design/methodology/approach
The authors’ index EDB–ABC index is constructed using 81 indicators. The index values reported are standardized scores and the framework is applied to 21 Indian sub-national economies. The bottom-up approach takes into account the various operational issues that firms face at the ground level, with the emphasis being on de facto issues. A unique feature of the index is its emphasis on collecting extensive survey data at the sub-national level, given that several constraints that businesses face lie under the purview of the sub-national governments. It also combines publicly available macroeconomic data through formal statistical publications.
Findings
The findings suggest a positive association between the proposed EDB–ABC index and competitiveness of as well as investments into Indian sub-national economies. In terms of explanatory power, the authors find that indicators capturing attractiveness to investors and business friendliness which are representative of de facto implementation issues at the sub-national matter more than de jure competitive policies. It is also striking that the results are in stark contrast to the existing doing business studies highlighting the importance of the comprehensiveness of the index.
Originality/value
Easing the impediments to doing business is a pre-requisite to enhance both domestic as well as foreign investments. Existing indicators on doing business provide an incomplete picture about the prevailing business conditions as the basis for such rankings are de jure regulations and not de facto. The authors depart from this tradition by dealing with both de jure and de facto business conditions using a combination of primary and secondary data at the sub-national level in India.
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The authors aim to examine the relationship between home bias and globalization while specifically examining the effects of the different dimensions of globalization (social…
Abstract
Purpose
The authors aim to examine the relationship between home bias and globalization while specifically examining the effects of the different dimensions of globalization (social, economic and political) for both developed countries and developing countries. Additionally, the authors test the effect of globalization regulation and laws against actual globalization activities.
Design/methodology/approach
This study investigates the influence of globalization on the home bias phenomenon using a panel regression and a three-dimensional globalization index (social, economic and political globalization) of 42 developed and developing countries from 2001 to 2016.
Findings
The results show that globalization significantly reduces home bias. In addition, the authors find that social globalization has a key influence compared to economic globalization and that political globalization has the weakest effect. For developing economies only, economic globalization as well as globalization laws and regulations have a crucial impact on the level of home bias.
Originality/value
Prior studies focus merely on the aspect of financial integration. Our study provides a more comprehensive outlook by distinguishing between the features of globalization (social, economic and political) as well as the actual globalization activities (de facto) compared to the laws and regulations enabling those actives (de jure). Lauterbach and Reisman (2004) show that globalization reduces home bias through a theoretical model. This study provides empirical merit to their work. In addition, we examine the different aspects of globalization for both emerging and developed markets.
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Murniati Mukhlisin, Mohammad Hudaib and Toseef Azid
This study aims to analyze IFIs’ stakeholders’ perception on Shariah harmonization for financial reporting standards inIndonesia as a part of the development effort of linking the…
Abstract
Purpose
This study aims to analyze IFIs’ stakeholders’ perception on Shariah harmonization for financial reporting standards inIndonesia as a part of the development effort of linking the emerging global Islamic banking to Indonesian financial and industrial markets.
Design/methodology/approach
A sample of 160 respondents, who were stakeholders of Islamic banks, was taken from Jakarta, the capital city of Indonesia and its surrounding major districts to examine the stakeholders’ perception on Shariah harmonization effort toward the implementation of a uniformed financial reporting standard for Islamic financial institutions. Data for this study were collected using a structured questionnaire.
Findings
Through this study, the authors found several measures to be taken to ensure Shariah harmonization efforts in Indonesia such as deep understanding on the fatawā brought into practices and strict monitoring on the Islamic banks in applying the financial reporting standards that imply practicing the fatawā, both de jure and de facto. However, the respondents differ in their opinion on the possibility of Shariah harmonization, both de jure and de facto. The role of various actors involved in the financial reporting standardization may impede Shariah harmonization to take place.
Research limitations/implications
The study is only looking at one case study, which is Indonesia. Therefore, future studies should consider more countries and significant number of respondents. Different research instruments to measure the perception can also be an interesting research exploration. In addition, adopting deep Islamic political economy of accounting theory may support better analysis on the issue of financial reporting standardization for Islamic financial institutions.
Originality/value
This paper has practical significance for financial reporting standard setters for Islamic banks and policy-makers to understand the key behavioral and demographical dimensions of their stakeholders and using these dimensions to effectively position important aspects in financial reporting standards setting.
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This purpose of this paper is to discuss the relationship between political independence and operational impartiality in regard to the effectiveness of anti-corruption agencies…
Abstract
Purpose
This purpose of this paper is to discuss the relationship between political independence and operational impartiality in regard to the effectiveness of anti-corruption agencies (ACAs). Against this background of western orthodoxy, it asks whether a non-western country with high levels of corruption (Vietnam being an example) can find another pathway in its efforts to effectively combat corruption.
Design/methodology/approach
An exercise in qualitative conceptual clarification and theoretical speculation, drawing upon practical examples.
Findings
It is argued that it is important to distinguish between de jure and de facto political independence, and that neither can be fully understood unless they are considered in relationship to other key values, particularly operational impartiality, public accountability, and systemic legitimacy, and in the context of bureaucratic politics. There is little coherent theoretical knowledge available about the relationships among these variables. Such values are central to western notions of “good government” but are much less institutionalised in non-western jurisdictions with high levels of corruption. The question is raised: can such countries, Vietnam being one example, develop effective anti-corruption strategies which because of the nature of their own political system, cannot depend on political independence for its ACAs?
Originality/value
Attention is drawn to some conceptual and putatively theoretical issues relating to the effectiveness of ACAs, and which have received little explicit attention in the relevant academic literature.
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