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Open Access
Article
Publication date: 29 August 2023

Abdulai Agbaje Salami and Ahmad Bukola Uthman

This study empirically tests the use of loan loss provisions (LLPs) for earnings and capital smoothing when emphasis is laid on banks' riskiness and adoption of the International…

Abstract

Purpose

This study empirically tests the use of loan loss provisions (LLPs) for earnings and capital smoothing when emphasis is laid on banks' riskiness and adoption of the International Financial Reporting Standards (IFRSs) in Nigeria.

Design/methodology/approach

Annual bank-level data are hand-extracted between 2007 and 2017 from annual reports of a sample 16 deposit money banks (DMBs), and analysed using appropriate panel regression models subsequent to a number of diagnostic tests including heteroscedasticity, autocorrelation and cross-sectional dependence. The use of both reported LLPs (TLLP) and discretionary LLPs (DLLP) for earnings and capital management is tested to advance the practice in the literature.

Findings

Generally, the study finds that Nigerian DMBs manage capital via LLPs, while mixed results are obtained for earnings smoothing. However, during IFRS, Nigerian DMBs' management of capital is identifiable with TLLP, while smoothing of earnings is peculiar to DLLP. Additionally, evidence of the improvement in loan loss reporting quality expected during IFRS for riskier Nigerian DMBs, could not be attained. This is corroborated by the study's findings of the use of both TLLP and DLLP for earnings and capital management during IFRS by DMBs in solvency crisis against the only use of TLLP to manage capital found for the entire period.

Practical implications

The evidential capital and earnings lopsidedness may subject Nigerian DMBs' going-concern to a lot of questions.

Originality/value

The study sets a foremost record in the empirical test of managerial opportunistic behaviour embedded in earnings and capital concurrently while accounting for loan losses by all categories of Nigerian DMBs in terms of riskiness, following accounting regime change.

Details

Asian Journal of Economics and Banking, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2615-9821

Keywords

Article
Publication date: 22 August 2023

Ani Wilujeng Suryani, Christine Helliar and Amanda Carter

Diversity and inclusion is a key focus of the profession. This paper investigates the ecological inherited niche of Indonesia and which employers accounting students choose and…

Abstract

Purpose

Diversity and inclusion is a key focus of the profession. This paper investigates the ecological inherited niche of Indonesia and which employers accounting students choose and whether this will result in a diverse and inclusive profession. The authors conceptualise diversity as the demand-from the profession encompassing professional accounting firms, and inclusion as the supply of individuals wishing to enter the profession.

Design/methodology/approach

The 1377 responses to a questionnaire survey of students deciding on their career paths were analysed using a multinomial logistic regression and path model.

Findings

The findings show that a lack of diversity in the profession is caused by the ecological background, constructing a local niche, that prevents diversity. This is manifest in ethnicity, gender and education, whereby the local niche consists of Chinese males recruited from B-rated private universities. To bring diversity and inclusivity into the workplace, the profession needs to entice people from multi-faceted groups and match ecological niche underpinnings to expectations of the professional landscape. Non-Chinese females are needed to become role models and trail blazers to establish a diverse profession. The public interest will then be better served.

Originality/value

This study uses niche construction as the theoretical framing and demonstrates that the profession needs to take action to become truly diverse and inclusive.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 4 July 2022

Bonnie Buchanan, Minna Martikainen and Jussi Nikkinen

In many countries, small and medium-sizes enterprises (SMEs) are primarily responsible for wealth, economic growth, innovation and research and development. In this paper, the…

Abstract

Purpose

In many countries, small and medium-sizes enterprises (SMEs) are primarily responsible for wealth, economic growth, innovation and research and development. In this paper, the authors examine the impact of family ownership and owner involvement on the financial performance of unlisted Finnish SMEs.

Design/methodology/approach

This is an empirical paper using a random sample of 1,137 non-listed Finnish SMEs. Through regression analyses and robustness tests, the authors examine the effects of family management, family and employee ownership and involvement.

Findings

Using profitability measures, the authors find family-owned and controlled SMEs perform significantly better than non-family firms. The number of family members actively involved in daily business operations bears a significant negative relation to firm performance. In contrast, non-family firms in which owners are actively involved, provide comparable returns to family firms, suggesting that in non-family firms active involvement contributes to performance. The authors find that employee ownership in SMEs does not provide an efficient way to compensate employees since more dispersed ownership does not lead to higher performance.

Research limitations/implications

SME employee ownership does not provide an efficient way to compensate employees since more dispersed ownership does not lead to higher performance.

Practical implications

In the case of Finland, family ownership is an effective organisational structure. As the depth of the COVID pandemic remains uncertain, firms with committed ownership are key to the economic recovery.

Originality/value

The authors approach the family ownership and involvement issue from a different angle. Unlike earlier studies, the authors examine the impact of both family ownership and involvement on the financial performance of privately owned SMEs. This paper helps shed light on the role of family ownership and involvement as a possible explanatory factor of overall economic performance.

Details

Journal of Applied Accounting Research, vol. 24 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 2 January 2024

Kun You, Zubir Azhar and Qingyu Wang

This paper aims to explore how a shared service centre (SSC) is mobilised in a power-dominant context of a Chinese state-owned enterprise (SOE). Specifically, it examines the…

Abstract

Purpose

This paper aims to explore how a shared service centre (SSC) is mobilised in a power-dominant context of a Chinese state-owned enterprise (SOE). Specifically, it examines the mobilisation of SSC within this multi-divisional SOE, the role and dynamics of actors involved and the influence of changes in the integrated information system (IIS) during the mobilisation process.

Design/methodology/approach

The study follows a qualitative case study methodology. The authors draw on actor-network theory to examine the network and translation processes constructed in mobilising SSC in the chosen SOE. The data sources of this study were collected through semi-structured interviews, observations and documentary reviews.

Findings

The mobilisation of SSC is not a linear process but rather a “spiral” interplay through continuous interactions and compromises between human and non-human actors. Power gave the core actor as an orchestrator legitimacy and formality to reduce resistance and obstruction in translation for the mobilisation of SSC. The changes in IIS appear to facilitate the interaction between the heterogeneous actors.

Practical implications

This case study contributes towards understanding the mobilisation of SSC in a power-dominant context by highlighting the impact of changes in IIS and the details of the mobilisation of SSC in terms of the role played by both the individual actors and the technology.

Originality/value

This study provides a broader understanding of the interactions of the heterogeneous actors for mobilising SSC in a power-dominant context. More importantly, the study inspires future research into examining how SSC practices unfold and how the changes in IIS influence the mobilisation of SSC.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 31 January 2022

Anis EL Ammari

This paper aims to examine the effects of political connections (PCs) on corporate financial performance (CFP) in an emerging economy. It also investigates the moderating…

Abstract

Purpose

This paper aims to examine the effects of political connections (PCs) on corporate financial performance (CFP) in an emerging economy. It also investigates the moderating influence of the directors’ financial expertise (DFE) on the relationship between politically connected firms and their financial performance.

Design/methodology/approach

The study sample includes 304 firm-year observations from non-financial Tunisian listed firms covered over 2012–2019. Financial data are from various sources: financial statements, annual reports, official bulletins of the Tunisian Stock Exchange (TSE) and the Financial Market Council. PCs and DFE data are manually collected from the TSE and companies’ websites. Multivariate regression analyses are used to test the research hypotheses.

Findings

The results show that PCs negatively affect CFP and the DFE is a moderator variable that exacerbates this negative relationship. These results could be explained on the one hand by the fact that politicians often lack management, professionalism and know-how. On the other hand, political members on boards focus mainly on their political agendas and prioritize their interests rather than firm performance. Furthermore, board directors are more inclined towards the grabbing-hand approach to create personal linkages with these politicians and take personal benefits rather than protect the interests of minority shareholders and effectively use firm resources.

Research limitations/implications

The most important limitation of the study is the small number of non-financial TSE-listed firms. Indeed, the small sample size prevents us from considering industry specificities and working in a homogeneous environment.

Practical implications

This study recommends that external investors pay particular attention to politically connected firms as PCs tend to weaken corporate governance. Also, it helps policymakers better assess the need to harmonize and develop corporate governance standards and practices that account for the specific conditions in Tunisia to mitigate the lobbying of political parties and supervise their abuse of power. Furthermore, the negative relationship between PCs and CFP in a poorly regulated and governed country could be used by financial institutions in their credit scoring.

Social implications

The findings suggest that the nexus between politics and business draws attention to corruption post-revolution.

Originality/value

The originality and the relevance of this study consist in studying the moderating effect of the DFE on the association between PCs and CFP. To the best of the author’s knowledge, this study pioneers assessing the role of the DFE as a moderating variable. It also supplements prior literature by examining the combined factors, such as PCs and DFE, on CFP in an emerging market.

Details

Journal of Financial Reporting and Accounting, vol. 21 no. 5
Type: Research Article
ISSN: 1985-2517

Keywords

Open Access
Article
Publication date: 4 August 2023

Saganga Mussa Kapaya

This study examined the roles of public spending and population moderating characteristic structure of selected African economies on bank-based financial development through…

Abstract

Purpose

This study examined the roles of public spending and population moderating characteristic structure of selected African economies on bank-based financial development through credit to private sector.

Design/methodology/approach

The study sampled 37 selected African economies for the years 1991–2018, and it applied a pooled mean group (PMG) estimator to account for short-run and long-run causal effects, and confirmed short-run adjustments towards the long-run convergences between the variables. Specific suitable tests were also applied.

Findings

Evidence confirms positive impacts of both capital formation and final consumption expenditures on financial development in the short run and long run. The moderation of population structures on expenditure structures help to speed up convergences.

Originality/value

This work attests its innovation by accounting for the separate effects of the expenditure types, the moderation effects of young and mature populations for capital and final consumption expenditure on financial development among selected economies in Africa.

Details

Review of Economics and Political Science, vol. 8 no. 5
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 18 October 2022

Ala’ Omar Dandis, Donna Marie Wallace-Williams, Arnt Kyawt Ni, Len Tiu Wright and Yousef Ibrahim Abu Siam

The aim of this study is to examine the role of relational benefits and brand experience measurements on willingness to pay more (WPM), effects of word of mouth (WOM) and…

2121

Abstract

Purpose

The aim of this study is to examine the role of relational benefits and brand experience measurements on willingness to pay more (WPM), effects of word of mouth (WOM) and repurchase intention (RI) in fast-food restaurants (FFR).

Design/methodology/approach

Employing an online questionnaire survey with a sample size of 503 respondents, the quantitative methodology included multiple regression and factor analysis to facilitate the analyses of data.

Findings

Relational benefits and their dimensions (confidence, special treatment and social benefits) found to positively impact WPM, WOM and RI. With reference to brand experiences, the current study found that behavioural and intellectual experiences have significant and positive effects on WPM, WOM and RI. Surprisingly, no positive significance was identified between sensory experiences and WPM, WOM and RI.

Practical implications

The findings show that relational benefits and brand experience dimensions play an essential role in improving brand loyalty.

Originality/value

The current study subscribes to the concept of relationship marketing theory, suggesting that loyalty to FFRs can be enhanced by offering customers relational benefits and augmenting their brand experiences.

Article
Publication date: 15 May 2023

Celina Gisch, Bernhard Hirsch and David Lindermüller

Conflicting institutional logics are thought to be factors that hinder organizational changes in public institutions. Thus, this study explores the different strategies of public…

Abstract

Purpose

Conflicting institutional logics are thought to be factors that hinder organizational changes in public institutions. Thus, this study explores the different strategies of public sector organizations to handle tensions from conflicting institutional logics in their day-to-day activities.

Design/methodology/approach

The authors argue that strategies for handling conflicting logics should not be treated separately. Rather, the authors show that within organizations, different strategies could be interconnected and depend on each other. The empirical insights come from a case study of a large German federal authority, in which management reporting was introduced with the intent to effect change in the organization.

Findings

The authors show how, over time, organization members confront the practice of management reporting with different approaches to address conflicting institutional demands and to find ways to create management reports that would be accepted by different addressees.

Originality/value

The study documents three states of responds to conflicting institutional logics: decoupling, compromising and hybridization. The authors highlight the power dynamics between the corresponding actors and the consequences for using management reports in these different states. Accordingly, the authors aim to provide profound insights into the microdynamics in the context of conflicting institutional logics.

Details

Qualitative Research in Accounting & Management, vol. 20 no. 4
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 5 December 2022

Shima Nagano and Masahiro Hosoda

This study examines how formal and cultural management control systems (MCSs) are used to support the promotion of gender equality through a case study of a Japanese bank.

Abstract

Purpose

This study examines how formal and cultural management control systems (MCSs) are used to support the promotion of gender equality through a case study of a Japanese bank.

Design/methodology/approach

A case study was adopted to investigate the use of formal and cultural MCSs in promoting gender equality. Primary data were gathered through semi-structured interviews with managers experienced in promoting gender equality. Then, the data were analysed by reading the interview answers repeatedly and coding interviewees' comments to generate themes.

Findings

The findings indicate that both formal and cultural MCSs can be critical aspects in promoting gender equality. The use of cultural MCS fostered norms and cultures over time that enhances the process of formal MCS to achieve gender equality. Formal MCS was also designed and utilised under the constructed norms and cultures to promote gender equality. Furthermore, the use of formal MCS contributes to shaping norms and cultures that encourage gender equality by controlling and discussing the process of promoting gender equality.

Originality/value

This study clarifies how formal and cultural MCSs can be used to promote gender equality, which is an unresolved issue in Japanese companies. Mechanisms for companies in male-dominated societies are also provided to promote gender equality in terms of MCSs.

Details

Accounting, Auditing & Accountability Journal, vol. 36 no. 5
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 22 December 2023

Chao Ren, Hui Situ and Gillian Maree Vesty

This paper examines the ways in which Chinese university middle managers evaluate subordinate performance in response to the Chinese Double First-Class University Plan, a national…

Abstract

Purpose

This paper examines the ways in which Chinese university middle managers evaluate subordinate performance in response to the Chinese Double First-Class University Plan, a national project that ranks the performance of universities. In exploring compromise arrangements, the hybridised valuing activity of middle managers is found to be shaped by emergent and extant macro-foundations.

Design/methodology/approach

The qualitative data from 49 semi-structured interviews at five Chinese public universities were conducted. Drawing on macro-foundational studies and the sociology of worth (SW) theory, the analysis helps to identify socially shared patterns of actions and outcomes.

Findings

The findings elucidate the interplay between diverse economic, social, political and institutional values and the compromise-making by middle managers. The authors find that contextual factors restrict Chinese academic middle managers' autonomy, preventing workable compromise. Through the selective adoption of international and local management practices, compromise has evolved into a private differential treaty at the operational level.

Originality/value

A nuanced explanation reveals how the macro-foundations of Chinese society influence middle managers who engage with accounting when facilitating compromise. This study helps outsiders better understand the complex convergence and divergence of performance evaluative practices in Chinese universities against the backdrop of global market-based forces and the moral dimensions of organisational life. The findings have wider implications for the Chinese government in navigating institutional steps and developing supportive policies to enable middle managers to advance productive but also sustainable compromise.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

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