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Article
Publication date: 9 June 2020

Khairul Anuar Kamarudin, Akmalia Mohamad Ariff and Wan Adibah Wan Ismail

This paper aims to investigate the joint effect of product market competition (PMC) and institutional environment on accrual quality.

Abstract

Purpose

This paper aims to investigate the joint effect of product market competition (PMC) and institutional environment on accrual quality.

Design/methodology/approach

The sample covers a large data set of 52,138 firm-year observations from 35 countries over the period of 2011-2015. Using the weighted least square regression, the study estimates PMC and institutional environment on accrual quality. The study measures PMC based on Herfindahl-Hirschman index, anti-director rights index (ADRI) based on the revised and updated La Porta et al.'s (1998) and accrual quality using the modified Dechow and Dichev (2002) model proposed by McNichols (2002). The study also uses a series of specification tests using alternative measures for each variable.

Findings

The study finds that highly intensified PMC relates to a lower quality of accruals. The results also show that accrual quality is better in countries with stronger institutional environment, specifically countries with higher ADRI, investor protection, judicial independence, protection of minority shareholders’ interests, protection of property rights, strength of the auditing and reporting standards, efficacy of corporate boards and corporate ethics. The findings suggest that institutional factors weaken the negative impact of PMC intensity on accrual quality, hence suggesting that institutional environment has a significant role to enhance accrual quality among firms in highly intensified industries.

Practical implications

The findings provide additional insights to policymakers and regulators on the importance of strong institutional and industry environment that can provide incentives and extra governance mechanisms besides the conventional firm-level corporate governance.

Originality/value

This study contributes in understanding the impact of intensity of PMC on accrual quality internationally and subsequently highlights the role of institutional environment as significant country-level governance in determining financial reporting quality, particularly accrual quality.

Details

Pacific Accounting Review, vol. 32 no. 3
Type: Research Article
ISSN: 0114-0582

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Book part
Publication date: 1 November 2018

Bobby Alexander, Stephen P. Ferris and Sanjiv Sabherwal

This study examines whether dividend payout, an internal corporate governance mechanism, is a substitute for or an outcome of product market competition, an external…

Abstract

This study examines whether dividend payout, an internal corporate governance mechanism, is a substitute for or an outcome of product market competition, an external corporate governance mechanism. The sample includes firms in six of the world’s most prominent economies. We find that firms in more competitive industries pay less in the way of dividends to their shareholders, which is consistent with the notion that dividends and competition are substitutes. We also determine that the above negative relationship is weaker in countries with stronger regulation protecting minority shareholders against corporate self-dealing. Furthermore, the relationship has attenuated following the passage of the Sarbanes-Oxley Act that increased regulation and enhanced governance standards. Collectively, our findings provide consistent evidence across countries that the two corporate governance mechanisms examined in the study are substitutes, and greater regulation weakens the substitution effect. Our empirical findings are robust to alternative measures of dividend payout, industry definition, and shareholder protection.

Details

International Corporate Governance and Regulation
Type: Book
ISBN: 978-1-78756-536-4

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Book part
Publication date: 11 August 2014

Umma Habiba, Md. Anwarul Abedin, Rajib Shaw and Abu Wali Raghib Hassan

Salinity is one of the major problems in the coastal region of Bangladesh that contributes to 20% of the total land area. About 53% of the coastal region is affected by…

Abstract

Salinity is one of the major problems in the coastal region of Bangladesh that contributes to 20% of the total land area. About 53% of the coastal region is affected by different degrees of salinity. Salinity intrusion in this area is mainly derived through climate change as well as anthropogenic factors that make this region more vulnerable. Hence, salinity intrusion has adverse effects on water, soils, agriculture, fisheries, ecosystem, and livelihoods of this region. To ensure the availability of food as well as drinking water, this chapter highlights how individual and community people have endeavored several adaptation measures to minimize salinity effects. Moreover, it further discloses governmental and other development organizations’ actions toward salinity to reduce its impacts.

Details

Water Insecurity: A Social Dilemma
Type: Book
ISBN: 978-1-78190-882-2

Keywords

Content available
Article
Publication date: 19 June 2020

Wim Westerman, Adri De Ridder and Marijn Achtereekte

The study aims to fill a gap in the literature on the economic impact of industrial and international diversification on firm performance in the energy sector. Li et al.

Abstract

Purpose

The study aims to fill a gap in the literature on the economic impact of industrial and international diversification on firm performance in the energy sector. Li et al. (2016) investigate firms listed in China, and this study analyzes firms listed in (Western) Europe.

Design/methodology/approach

A sample of 129 energy firms is extracted from Datastream and covers the period from January 2009 to December 2015. Univariate and multivariate regression analyses are used to determine a plausible relation of diversification on corporate performance. Also, the difference between renewable energy firms and conventional energy firms is explored.

Findings

A univariate analysis using both return on assets and Tobin's Q as a variable shows that renewable energy firms have a higher profitability than conventional energy firms. However, a multivariate analysis does not confirm this result. The authors also document a negative relation between diversification strategies and firm performance.

Research limitations/implications

The study uses main industry codes. Yet, one might make a distinction between renewable energy and conventional energy amounts with corporations. Also, the authors cover financial crisis years. Researchers might take into account more recent years.

Practical implications

The findings of the study highlight the importance of short-term and long-term considerations for practitioners related to demand, the energy mix, oil prices and firm strategies.

Originality/value

The authors contribute to the debate and the literature when identifying similarities and differences between conventional energy firms and renewable energy firms in their application of diversification strategies and their (relation to) firm performance.

Details

Managerial Finance, vol. 46 no. 11
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 17 January 2020

Sanja Kutnjak Ivković, Maria Haberfeld, Wook Kang, Robert Patrick Peacock, Louise E. Porter, Tim Prenzler and Adri Sauerman

The purpose of this paper is to explore the contours of the police code of silence, a critical component of the ability to control misconduct and enhance integrity within…

Abstract

Purpose

The purpose of this paper is to explore the contours of the police code of silence, a critical component of the ability to control misconduct and enhance integrity within any police agency. Unlike the extant research, dominated by single-country studies, this paper provides an in-depth exploration of the code across five countries and tests the relation between the code of science and societal characteristics.

Design/methodology/approach

A police integrity survey was used to measure the contours of the code of silence among police officers in Australia (n=856), Croatia (n=966), South Africa (n=871), South Korea (n=379) and the USA (n=664). The respondents evaluated 11 hypothetical scenarios describing various forms of police misconduct.

Findings

Bivariate analyses reveal considerable divergence in the code of silence across the five countries. Multivariate models of the code of silence show that, next to organizational factors (i.e. the respondents’ assessment of peers’ willingness to report, evaluations of misconduct seriousness and expected discipline) and individual factors (i.e. supervisory status), societal factors (i.e. the Corruption Perceptions Index score and the percent of irreligious citizens) are significant predictors of the respondents’ willingness to report.

Research limitations/implications

While the same questionnaire was used in all five countries, the nature of the data collection differed somewhat across the countries (e.g. online survey vs paper-and-pencil survey), as did the nature of the samples (e.g. representative sample vs convenience sample).

Practical implications

Perceived peer pressure, measured as the perceptions of whether other police officers would adhere to the code of silence, is the key variable explaining the police officers’ expressed willingness to adhere to the code of silence. Changing the police officers’ perceptions of peer culture and potentially changing the peer culture itself should be critical elements in the toolbox of any administrator willing to curtail the code of silence.

Originality/value

Whereas the study of the code of silence has started several decades ago, no prior study has tested the effects of organizational and societal variables on the code of silence in a comparative perspective.

Details

Policing: An International Journal, vol. 43 no. 2
Type: Research Article
ISSN: 1363-951X

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Article
Publication date: 11 June 2018

Kent Baker, Adri De Ridder and Annalien De Vries

The purpose of this paper is to examine whether socio-economic factors influence portfolio composition of individual investors investing in stocks for the first time and…

Abstract

Purpose

The purpose of this paper is to examine whether socio-economic factors influence portfolio composition of individual investors investing in stocks for the first time and how these factors relate to stock portfolio performance.

Design/methodology/approach

The study uses cross-sectional time-series analysis to examine a unique and detailed data set of Swedish stockholdings.

Findings

The results show that first-time investors do not hold diversified portfolios. They experience high market risk and, on average, underperform more experienced investors. Males have higher unsystematic risk in their portfolios than females and older investors have more diversified portfolios compared to younger investors.

Research limitations/implications

The results show that individual investors should improve their insights by incorporating risk when investing in stocks.

Practical implications

Given the results of this paper, the movement from defined benefit to defined contribution pension schemes in many countries raises the issue of the need to better understand and monitor the risks in stock portfolios.

Originality/value

This study provides insights into whether socio-economic factors influence portfolio composition, the extent to which socio-economic factors and portfolio characteristics relate to portfolio returns, and whether portfolio performance between first-time and more experienced investors differs.

Details

Review of Behavioral Finance, vol. 10 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Content available
Article
Publication date: 28 September 2021

Kishore Thomas John and K. Shreekrishna Kumar

Kerala is one of India's most advanced states in human development and other social indices. This study aims to look at the management education scenario in Kerala from a…

Abstract

Purpose

Kerala is one of India's most advanced states in human development and other social indices. This study aims to look at the management education scenario in Kerala from a macro-perspective and examines the existing trends, major issues and present challenges facing the sector.

Design/methodology/approach

The study is driven by previously unexplored secondary data published by India's apex technical education regulator–All India Council for Technical Education (AICTE). Qualitative and quantitative assessments are assimilated from the organization, dissection and categorization of unit-level data.

Findings

Business schools (B-schools) in the state are facing acute distress in enrolments. There are intra-regional variations in institution count and occupancy rates. The vast majority of the institutions have no accreditation at all. The entire sector is facing a protracted decline.

Research limitations/implications

The study has relied primarily on descriptive statistics considering a single discipline within the higher education sector in Kerala. Future studies should look at other disciplines (engineering, medicine) simultaneously. Use of statistical methods like panel data regression would be beneficial to find hidden trends in cross-sectional and longitudinal time-series data.

Practical implications

Management education in Kerala is facing an existential crisis. This has implications for the state's economic development. The paper creates strong imperatives for government policymaking to forestall the complete decline of the sector.

Social implications

A highly literate state with advanced human development indices need not be a suitable location for building a knowledge-based economy. Government policy has strong implications for the development and sustenance of higher education. The relationship between government and business schools are symbiotic.

Originality/value

The paper maps the progression of B-schools from local to global. A typology of privately funded B-schools is proposed. The conceptual framework advanced in this study can contribute to further literature development. The suggested policy initiatives are applicable not only to Kerala but also to other tightly regulated markets.

Details

Rajagiri Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-9968

Keywords

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Book part
Publication date: 2 July 2012

Ruth V. Aguilera and Kurt A. Desender

Purpose – This chapter discusses the role that indices of corporate governance have had in comparative corporate governance research.Design/Methodology/Approach – The…

Abstract

Purpose – This chapter discusses the role that indices of corporate governance have had in comparative corporate governance research.

Design/Methodology/Approach – The authors begin with a short discussion of what corporate governance is and its main debates. Then, the authors review the main indices (which are also summarized in Table 1), highlighting their strengths and limitations as well as describing some of the findings that emanate from them. Then, the authors discuss the methodological and conceptual assumptions of corporate governance indices that may compromise their construct validity. The authors conclude with some encouraging suggestions for key methodological and research design issues to take into account in future comparative corporate governance.

Findings – Many methodological issues in the measuring and analysis of (comparative) corporate governance remain to be solved. First, although corporate governance practices have a direct effect on some of the firms’ strategic decisions, they may only have an indirect effect on firm performance. Second, it is possible that, after all, causality goes the other way around, i.e., the firm performance explains the adoption of certain governance practices. Third, there are also important challenges in measuring firm financial performance as well as measuring and comparing corporate governance effectiveness between firms from different governance settings.

Originality/Value – This is one of the first chapter to give an overview of the most current corporate governance indices, both academic and commercial, to discuss their underlying assumptions and limitations, and, finally, to provide specific directions for future research regarding comparative corporate governance.

Details

West Meets East: Building Theoretical Bridges
Type: Book
ISBN: 978-1-78190-028-4

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Article
Publication date: 3 April 2017

Rene Ymbong Paquibut

This paper aims to apply the system evaluation theory (SET) to analyze the institutional quality standards of Oman Academic Accreditation Authority using the results chain…

Abstract

Purpose

This paper aims to apply the system evaluation theory (SET) to analyze the institutional quality standards of Oman Academic Accreditation Authority using the results chain and value chain tools.

Design/methodology/approach

In systems thinking, the institutional standards are connected as input, process, output and feedback and leads to the achievement of the final result. This allows the analysis of the value-creating chain of activities and the chain of results. Quality assurance can be achieved by higher education institutions when these standards and criteria are viewed as a chain of achievable results and value creating activities.

Findings

The output of the analysis is a results chain and value chain map of institutional quality standards that will be useful in strategic management and quality standards compliance.

Research limitations/implications

The research used secondary data and focused on the higher education experience in the Sultanate of Oman.

Practical implications

A proposed framework for preparing for accreditation is presented; this is significant for higher education institutions undergoing or about to undergo institutional accreditation for the first time.

Social implications

Higher education institutions in Oman which are preparing for their first institutional accreditation should benefit from this article.

Originality/value

The Sultanate of Oman is implementing the institutional standards approved for all higher education institutions only in March 2016. This is the first research article written from the perspective of the first higher education institution in Oman to undergo institutional accreditation.

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Article
Publication date: 27 May 2014

Domenico Campa and Ray Donnelly

– The purpose of this paper is to evaluate the impact of corporate governance reforms in Italy.

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Abstract

Purpose

The purpose of this paper is to evaluate the impact of corporate governance reforms in Italy.

Design/methodology/approach

The authors argue that the effectiveness of corporate governance can best be assessed with reference to the choices made by management or controlling shareholders. They use the curtailment of earnings management as a desirable and measureable outcome of good corporate governance to assess Italy’s progress since the 1990s. The UK is used as a reference point because it is a European Union (EU) economy of comparable size and there is evidence that its firms managed earnings to a much lesser extent than their counterparts in Italy in the 1990s. A matched sample of UK and Italian firms was used for the empirical analysis.

Findings

It was found that in contrast to the situation in the 1990s, firms in Italy do not manage earnings to a greater extent than their UK counterparts after the corporate governance reforms. In addition, firm-level governance has a greater effect on earnings management in Italy than in the UK. The authors attribute this to firm-level governance compensating for deficiencies in national institutions.

Research limitations/implications

The restriction of earnings management is just one positive consequence of good governance. Other positive outcomes require to be studied to form a complete picture of the impact of governance reforms in Italy.

Originality/value

This paper is the first to use an outcome-driven approach to evaluate the impact of governance reforms.

Details

Corporate Governance, vol. 14 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

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