Search results
1 – 5 of 5Mounira Hamed-Sidhom, Yosra Hkiri and Ahmed Boussaidi
The accounting literature suggests that the use of accounting standards with greater quality promotes the financial reporting quality and enhances accountability. This study aims…
Abstract
Purpose
The accounting literature suggests that the use of accounting standards with greater quality promotes the financial reporting quality and enhances accountability. This study aims to investigate the effect of the International Public Sector Accounting Standards (IPSAS) adoption, by official development assistance (ODA) beneficiary countries, on the reported level of their perceived corruption.
Design/methodology/approach
We investigate a sample of ODA beneficiary countries (168 country-year observations) facing rising levels of corruption. We apply a panel regression analysis for these countries during the period from 2015 to 2018.
Findings
The findings suggest that the IPSAS’ adoption can significantly influence the level of perceived corruption and implement important evidence about promoting transparency factor for underdeveloped countries.
Originality/value
This study contributes to the accounting literature by examining the theoretical and empirical insights about the impact of the of IPSAS’ adoption on the level of corruption, which can be considered as a new area of accounting literature and a useful signal for stakeholders in countries seeking adequate solutions to combat and fight corruption activities.
Details
Keywords
Ahmed Boussaidi and Mounira Hamed-Sidhom
This study sheds light on the determinants related to the corporate board of directors and the firms’ ownership nature of tax aggressiveness strategies of Tunisian listed firms…
Abstract
Purpose
This study sheds light on the determinants related to the corporate board of directors and the firms’ ownership nature of tax aggressiveness strategies of Tunisian listed firms and what could be their effect on its level in a postrevolution context.
Design/methodology/approach
Our research considers only nonfinancial firms listed in the Tunisian stock exchange during the 2011–2017 period. It is based on unbalanced panel data.
Findings
Findings suggest that women presence on the corporate board, CEO duality, the managerial and institutional ownership regularize significantly the level and the management's behavior of engagement in tax aggressiveness practices and reduce the firm’s overall risks of its consequences in terms of tax positions stability.
Research limitations/implications
Our investigation considers only nonfinancial firms to avoid noisy results and for the significant differences between accounting standards within financial and nonfinancial firms, besides sample homogeneity and comparability considerations.
Practical implications
This study provides evidence that some governance mechanisms, even reasonably dedicated to consider the risk of tax aggressiveness and to prevent its consequences, have a paradoxical effect and amplify the tax aggressiveness’ level rather than defending the firm’s viability and its financial stability. It offers signals to managers about specific governance attributes that strengthen and/or control the extent of tax aggressive strategies.
Social implications
This research gives a particular road map for society, investors and practitioners to depict the firms’ level of tax aggressiveness and especially to understand its attributes related to the corporate board of directors and the ownership's nature through evidences from a postrevolution context.
Originality/value
Our research contributes to prior literature by examining the effect of corporate board characteristics and different ownership natures on the extent of tax aggressiveness during and after the revolution period in Tunisia and confirms and infers some prior findings of tax aggressive determinants in underdevelopment context.
Details
Keywords
Ahmed Atef Oussii and Mohamed Faker Klibi
This study aims to investigate the relationship between chief executive officer (CEO) power and the level of tax avoidance of Tunisian listed companies. It also examines the…
Abstract
Purpose
This study aims to investigate the relationship between chief executive officer (CEO) power and the level of tax avoidance of Tunisian listed companies. It also examines the moderating role of institutional ownership in this association.
Design/methodology/approach
The sample comprises 306 firm-year observations of companies listed on the Tunis Stock Exchange during the 2013–2020 period.
Findings
The results indicate that CEO power reduces tax avoidance levels. Moreover, the relationship between CEO power and tax avoidance is more pronounced in the presence of institutional ownership, suggesting that CEOs act less opportunistically when monitored by institutional investors, which results in a reduction in tax avoidance.
Practical implications
This study suggests that CEO power and institutional shareholders’ influence are important factors in determining firms’ avoidance behavior. This study has significant implications for shareholders and regulatory bodies. Indeed, shareholders apprehend the impact of appointing a powerful CEO on tax avoidance practices. This study may also provide regulators with new insights into the influence of CEO power dimensions and institutional ownership on tax aggressiveness.
Originality/value
This study fills the gap in the accounting literature by investigating how CEO power may impact tax avoidance behavior and provides empirical evidence on the moderating impact of institutional ownership on this relationship in an emerging economy context characterized by a weakly protected investor setting.
Details
Keywords
Haruna Babatunde Jaiyeoba, Moha Asri Abdullah and Khairunisah Ibrahim
Guided by several pioneered studies, the purpose of this paper is to comprehensively investigate the investment behaviours of Malaysian retail and institutional investors in an…
Abstract
Purpose
Guided by several pioneered studies, the purpose of this paper is to comprehensively investigate the investment behaviours of Malaysian retail and institutional investors in an attempt to identify whether the influence of psychological biases is equally applicable to investor divides.
Design/methodology/approach
The researchers have adopted a quantitative research design by way of survey methodology to obtain data from institutional and retail investors in Malaysia. In addition, the authors have mainly employed second-order measurement invariance analysis to uncover the difference across investor divides.
Findings
The tests of measurement invariance at the model level indicate an insignificant difference between institutional investors and retail investors. The post hoc test (at the path level) reveals that institutional and retail investors are similar with respect to representative heuristic, overconfidence bias and anchoring bias; though the results also show that they are different with respect to religious bias and herding bias.
Research limitations/implications
Based on the findings of this study, it is generally not logical to assume that institutional investors completely behave rational during investment decisions. Besides, future researchers are called upon to directly compare the investment decisions of institutional and retail investors with respect to whether the influence of psychological biases is equally applicable to them, particularly on the investigated psychological biases and other psychological biases that are not covered in this study.
Originality/value
This study has offered insight into whether the influence of psychological biases is equally applicable to institutional and retail investors in Malaysia using second-order measurement invariance analysis. This study is unique in context and the approach it has adopted.
Details
Keywords
Oumayma Gharbi, Yousra Trichilli and Mouna Boujelbéne
The main objective of this paper is to analyze the dynamic volatility spillovers between the investor's behavioral biases, the macroeconomic instability factors and the value at…
Abstract
Purpose
The main objective of this paper is to analyze the dynamic volatility spillovers between the investor's behavioral biases, the macroeconomic instability factors and the value at risk of the US Fintech stock market before and during the COVID-19 pandemic.
Design/methodology/approach
The authors used the methodologies proposed by Diebold and Yilmaz (2012) and the wavelet approach.
Findings
The wavelet coherence results show that during the COVID-19 period, there was a strong co-movement among value at risk and each selected variables in the medium-run and the long-run scales. Diebold and Yilmaz's (2012) method proved that the total connectedness index raised significantly during the COVID-19 period. Moreover, the overconfidence bias and the financial stress index are the net transmitters, while the value at risk and herding behavior variables are the net receivers.
Research limitations/implications
This study offers some important implications for investors and policymakers to explain the impact of the COVID-19 pandemic on the risk of Fintech industry.
Practical implications
The study findings might be useful for investors to better understand the time–frequency connectedness and the volatility spillover effects in the context of COVID-19 pandemic. Future research may deal with investors' ability of constructing portfolios with another alternative index like cryptocurrencies which seems to be a safer investment.
Originality/value
To the best of the authors' knowledge, this is the first study that relies on the continuous wavelet decomposition technique and spillover volatility to examine the connectedness between investor behavioral biases, uncertainty factors, and Value at Risk of US Fintech stock markets, while taking into account the recent COVID-19 pandemic.
Details