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Article
Publication date: 15 April 2020

Mahalaximi Adhikariparajuli, Abeer Hassan, Mary Fletcher and Ahmed A. Elamer

This paper aims to examine the level of disclosure on content elements of integrated reporting (IR) in Scotland, Northern Ireland and Wales higher education institutions…

Abstract

Purpose

This paper aims to examine the level of disclosure on content elements of integrated reporting (IR) in Scotland, Northern Ireland and Wales higher education institutions (HEIs). The authors suggest that integrated thinking is an internal process that organizations can follow to increase the level of disclosure on IR that can be used as an effective mechanism to enhance accountability with stakeholders.

Design/methodology/approach

International Integrated Reporting Council (IIRC) guidelines and content analysis are used to analyze IR content elements in HEI reports from 2014-2016.

Findings

The results indicate a significant increase in the trend and extent of IR content elements. The HEI-specific characteristics examined, such as establishment of HEI; adoption of IR framework and governing board size are all statistically and positively associated with IR content elements disclosure. This paper introduces signalling theory to explore the idea that appropriate communication via integrated thinking can close the gap between the organization and its stakeholders via increased level of disclosure on IR content elements.

Practical implications

The results will assist policymakers and regulators to assess the benefits of voluntary implementation of IR at HEIs and evaluate possible mandatory implementation of IIRC guidelines. Second, the findings can assist managers of institutions interested in implementing IR.

Social implications

This study recommends universities to explicitly address IR issues in reporting, as this will increase their impact as leaders of educational thought in addition to their roles as partners, advisors, counselors and assessors.

Originality/value

This study explores whether HEIs in Scotland, Northern Ireland and Wales provide disclosure on IIRC content elements as a reflection of integrated thinking and whether the connectivity and interdependence between different departments will help to signal to stakeholders how HEIs create value for society.

Details

Social Responsibility Journal, vol. 17 no. 3
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 11 September 2020

Idris M. Bufarwa, Ahmed A. Elamer, Collins G. Ntim and Aws AlHares

This study aims to investigate the impact of corporate governance (CG) mechanisms on financial risk reporting in the UK.

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Abstract

Purpose

This study aims to investigate the impact of corporate governance (CG) mechanisms on financial risk reporting in the UK.

Design/methodology/approach

The study uses a panel data of 50 non-financial firms belonging to 10 industrial sectors listed on the London Stock Exchange in the period 2011-2015. Multivariate regression techniques are used to examine the relationships.

Findings

The findings of this study reveal that CG has a significant influence on financial risk disclosure. Specifically, it is found that block ownership and board gender diversity have a positive effect on the level of corporate financial risk disclosure (FRD). While there is no significant relationship between board size and corporate FRD.

Research limitations/implications

This study has significant implications for policy-makers, investors and regulators. Evidence of growing FRD implies that efforts by several stakeholders have had some positive impact on the level of FRD in the firms examined. Examples of such changes include, namely, increasing board size and gender diversity acting as effective firm level advisors and monitors of FRD. As a consequence, regulators and policymakers should continually pursue reforms to encourage firms to follow CG principles that are promoted as good practice.

Originality/value

This study adds to the emerging body of literature on CG–risk disclosure relationships in the UK context using content analysis. The study also highlights that gender diversity enhances FRD.

Details

International Journal of Law and Management, vol. 62 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 14 February 2022

Saleh F.A. Khatib, Dewi Fariha Abdullah, Ahmed Elamer and Saddam A. Hazaea

This study aims to provide a comprehensive review of the existing literature on corporate governance (CG) aspects of the Malaysian market. It offers insights into the…

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Abstract

Purpose

This study aims to provide a comprehensive review of the existing literature on corporate governance (CG) aspects of the Malaysian market. It offers insights into the phases of Malaysian CG, identifies crucial gaps in the literature and outlines an agenda for impending research.

Design/methodology/approach

Following a systematic literature review approach, a final sample of 125 studies from Scopus and Web of Science databases was used in this study. These studies were selected based on quality assessment criteria. Then, the sample literature was evaluated in terms of journals, methodology, theories, modelling, research outcomes and CG characteristics.

Findings

The results show that there is a growing interest among researchers to further explore CG aspects in Malaysia due to the continuous development of the Malaysian CG codes. Likewise, the review reveals that the majority of prior studies are quantitative and were carried out using archived data from non-financial firms. Also, the existing literature has primarily focused on the outcomes of CG, especially firm performance.

Research limitations/implications

Overall, the results show that there is ample room for future research. The present paper identifies a number of methodological problems and concerns, and discusses the implications of these problems, while also providing recommendations for future research. The main caveat is that the authors use scholarly papers published in academic journals only, but this approach offers them with opportunities for considerable further developments.

Originality/value

To the best of the authors’ knowledge, this study contributes to the literature by being the first of its kind to concentrate on the Malaysian context. It provides a comprehensive knowledge assessment of the Malaysian CG research and offers advice regarding improvements in research, policy and practice by identifying possible knowledge gaps. Consequently, this study provides a cohesive story of the past and a road map for future research on Malaysian CG.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 14 October 2021

Craig McLaughlin, Stephen Armstrong, Maha W. Moustafa and Ahmed A. Elamer

This paper aims to empirically analyse specific characteristics of an audit committee that could be associated with the likelihood of corporate fraud/scandal/sanctions.

Abstract

Purpose

This paper aims to empirically analyse specific characteristics of an audit committee that could be associated with the likelihood of corporate fraud/scandal/sanctions.

Design/methodology/approach

The sample includes all firms that were investigated by the Financial Reporting Council through the audit enforcement procedure from 2014 to 2019, and two matched no-scandal firms. It uses logistic binary regression analysis to examine the hypotheses.

Findings

Results based on the logit regression suggest that audit member tenure and audit committee meeting frequency both have positive associations to the likelihood of corporate scandal. Complementing this result, the authors find negative but insignificant relationships amongst audit committee female chair, audit committee female members percentage, audit committee qualified accountants members, audit committee attendance, number of shares held by audit committee members, audit committee remuneration, board tenure and the likelihood of corporate scandal across the sample.

Research limitations/implications

The results should help regulatory policymakers make decisions, which could be crucial to future corporate governance. Additionally, these results should be useful to investors who use corporate governance as criteria for investment decisions.

Originality/value

The authors extend, as well as contribute to the growing literature on the audit committee, and therefore, wider corporate governance literature and provide originality in that it is the first, to the knowledge, to consider two characteristics (i.e. remuneration and gender) in a UK context of corporate scandal. Also, the results imply that the structure and diversity of the audit committee affect corporate fraud/scandal/sanctions.

Details

International Journal of Accounting & Information Management, vol. 29 no. 5
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 18 December 2019

Ibrahem Alshbili, Ahmed A. Elamer and Eshani Beddewela

This study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of corporate social responsibility…

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Abstract

Purpose

This study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of corporate social responsibility disclosures (CSRD) in a developing country.

Design/methodology/approach

Multiple regression techniques are used to estimate the effect of corporate governance structures and ownership types on CSRD using a sample of Libyan oil and gas companies between 2009 and 2013.

Findings

First, the study results suggest that although the level of CSRD in Libya is low in comparison to its western counterparts, ownership factors have a significant positive influence on CSRD. Second, the authors find board meetings to have a positive impact on CSRD. However, the authors fail to find any significant effect of board size and presence of corporate social responsibility (CSR) committees on CSRD. Overall, the results support prior theoretical evidence that pressures exerted by the government and external stakeholders have a considerable influence in promoting firm-level CSRD activities, specifically as a legitimising mechanism in fragile states.

Research limitations/implications

First, this study is based on the annual reports, and it did not examine any other reports or other mass communication mechanism that companies’ management may use to disclose CSR information. Future studies might consider disclosures in other channels, if any, such as the internet, CSR reports, etc. Additionally, this study adopts the neo-institutional theory perspective. Future studies might integrate multi-theoretical lenses to offer a richer basis for understanding and explaining CSRD determinants.

Originality/value

This study contributes to the literature by first providing additional evidence for existing studies, which suggest that on average, better-governed companies are more liable to follow a more socially responsible agenda than poorly governed companies as a legitimising mechanism in fragile states. Also, this study overcomes a major weakness in existing Libyan studies, which have mainly used descriptive data.

Article
Publication date: 11 March 2020

Aws AlHares, Ahmed A. Elamer, Ibrahem Alshbili and Maha W. Moustafa

This study aims to examine the impact of board structure on risk-taking measured by research and development (R&D) intensity in OECD countries.

Abstract

Purpose

This study aims to examine the impact of board structure on risk-taking measured by research and development (R&D) intensity in OECD countries.

Design/methodology/approach

The study uses a panel data of 200 companies on Forbes global 2000 over the 2010-2014 period. It uses the ordinary least square multiple regression analysis techniques to examine the hypotheses.

Findings

The results show that the frequency of board meetings and board size are significantly and negatively related to risk-taking measured by R&D intensity, with a greater significance among Anglo-American countries than among Continental European countries. The rationale for this is that the legal and accounting systems in the Anglo American countries have greater protection through greater emphasis on compliance and disclosure, and therefore, allowing for less risk-taking.

Research limitations/implications

Future research could investigate risk-taking using different arrangements, conducting face-to-face meetings with the firm’s directors and shareholders.

Practical implications

The results suggest that better-governed firms at the firm- or national-level have a high expectancy of less risk-taking. These results offer regulators a resilient incentive to pursue corporate governance (CG) and disclosure reforms officially and mutually with national-level governance. Thus, these results show the monitoring and legitimacy benefits of governance, resulting in less risk-taking. Finally, the findings offer investors the opportunity to build specific expectations about risk-taking behaviour in terms of R&D intensity in OECD countries.

Originality/value

This study extends and contributes to the extant CG literature, by offering new evidence on the effect of board structure on risk-taking. The findings will help policymakers in different countries in estimating the sufficiency of the available CG reforms to prevent management mishandle and disgrace.

Details

International Journal of Accounting & Information Management, vol. 28 no. 3
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 1 October 2019

Engy E. Abdelhak, Ahmed A. Elamer, Aws AlHares and Craig McLaughlin

The purpose of this study is to investigate Egyptian auditors’ ethical reasoning, to understand whether auditors’ ethical reasoning is influenced by audit firm size and/or…

Abstract

Purpose

The purpose of this study is to investigate Egyptian auditors’ ethical reasoning, to understand whether auditors’ ethical reasoning is influenced by audit firm size and/or auditor’s position.

Design/methodology/approach

This paper draws on 178 questionnaires that include six different ethical scenarios. This paper also uses the accounting ethical dilemma instrument that is developed by Thorne (2000) to measure the ethical reasoning of Egyptian auditors.

Findings

The findings are threefold. First, this study finds that the general level of deliberative ethical reasoning of auditors working in the Central Auditing Organization (CAO) and small firms are categorized in the post-conventional level, while auditors working in big and medium firms are categorized in conventional level. Second, the result suggests that there is a negative relationship between ethical reasoning and audit firm size in Egypt. Finally, the results show that ethical reasoning levels decrease when the position of auditors increase except for auditors working in CAO.

Originality/value

This study adds to the scarce literature in developing countries that measure auditors’ ethical reasoning. The findings suggest that auditors’ ethical reasoning depends on auditor’s firm size and the position the auditor holds within the firm. These findings will aid policymakers and regulators, especially in developing countries, to avoid any potential risk regarding professional misconduct and in evaluating the adequacy of the current code of ethics.

Details

International Journal of Ethics and Systems, vol. 35 no. 4
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 6 February 2020

Abeer Hassan, Ahmed A. Elamer, Mary Fletcher and Nawreen Sobhan

This paper aims to investigate the supply and demand side of sustainability assurance in Bangladesh.

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Abstract

Purpose

This paper aims to investigate the supply and demand side of sustainability assurance in Bangladesh.

Design/methodology/approach

Drawing on signalling theory, a logistic regression model is used for a sample of 100 of the largest Bangladeshi companies to study the relationships between assurance, sustainability disclosure, industry membership and reporting format.

Findings

Authors’ results show that companies which produce more sustainability information are more likely to get their sustainability assured, to be from non-carbon intensive industries, and are more likely to integrate their sustainability information with the financial annual reports. Authors’ results support the argument that organisations based in weaker legal environments are more likely to secure assurance as this adds to the credibility and reliability of sustainability reports.

Research limitations/implications

This paper has limitations which raise some issues for future research. First, the authors have covered only large companies; therefore, future research could examine the differences between small and large companies in relation to assurance. Secondly, the authors’ data consist of company sustainability disclosure information in the fiscal year 2015. Longitudinal studies are recommended to extend this research. Finally, future research could examine the moderating effects of geographical location on the relationship between assurance (and its providers) and other variables.

Practical implications

The findings of this paper will prove valuable to practitioners and researchers. Practitioners, including assurance providers and sustainability reporting managers will benefit from authors’ study as it covers both the demand and supply side characteristics of assurance. Researchers will benefit from the study as it investigates assurance practices in the developing country of Bangladesh.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine both the supply and demand sides of sustainability assurance in Bangladesh. Authors also introduce reporting format when measuring the relationship between assurance and its determinant factors at micro level. The study also links assurance to signalling theory.

Details

Accounting Research Journal, vol. 33 no. 2
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 26 October 2018

Ahmed A. Elamer, Aws AlHares, Collins G. Ntim and Ismail Benyazid

This study aims to examine the impact of internal corporate governance mechanisms on insurance companies’ risk-taking in the UK context.

Abstract

Purpose

This study aims to examine the impact of internal corporate governance mechanisms on insurance companies’ risk-taking in the UK context.

Design/methodology/approach

The study uses a panel data of all listed insurance companies on FTSE 350 over the 2005-2014 period. Multivariate regression techniques are used to estimate the effect of internal corporate governance mechanisms on insurance companies’ risk-taking.

Findings

The results show that the board size and board meetings are significantly and negatively related to risk-taking. In contrast, the results show that board independence and audit committee size are statistically insignificant but negatively related to risk-taking. The findings are robust to alternative measures and endogeneities.

Research limitations/implications

The findings have important implications for investors, managers, regulators of financial institutions and effectiveness of corporate governance reforms that have been pursued. Investors may further rely on internal corporate governance attributes to form expectations about risk-taking behaviour. Insurance companies need strong governance, as well as effective accounting and financial reporting standards, to enable proper insights into the company’s financial position.

Originality/value

This study contributes to the corporate governance literature and creates significant evidence regarding the role of corporate governance in constraining risk-taking behaviour in an industry with significantly complex context.

Details

International Journal of Ethics and Systems, vol. 34 no. 4
Type: Research Article
ISSN: 0828-8666

Keywords

Article
Publication date: 30 November 2022

Mohamed M. El-Dyasty and Ahmed A. Elamer

Many countries are enacting regulations or/and recommendations to promote gender equality in the workplace, especially in the top leadership and management positions…

Abstract

Purpose

Many countries are enacting regulations or/and recommendations to promote gender equality in the workplace, especially in the top leadership and management positions. However, despite current research on gender diversity and firm outcomes, the authors know comparatively little about how different female leadership roles drive such outcomes. This study explores this notion in an emerging market by examining the effect of female leadership on financial reporting quality in Egypt.

Design/methodology/approach

This study uses multiple regression analyses for a sample of 1,686 firm-year observations listed on the Egyptian Stock Exchange over the period 2011–2020.

Findings

This study’s results show that female directors, female executives and females on audit committees are positively associated with financial reporting quality. Further, the results suggest that executive female directors are less involved in income decreasing earnings management practices. The findings are robust to possible omitted variables bias, alternative measurements and endogeneity issues. Taken together, the results are in line with the view that gender diversity is an effective monitoring instrument, which attenuates agency conflict and thus upholds financial reporting quality.

Research limitations/implications

Future research may expand the analysis performed in this study by using other proxies of financial reporting quality (e.g. earnings persistence, earnings predictability, conservatism and restatements). Also, the authors did not investigate the characteristics related to female directors (e.g. education, experience and age) due to data availability. Future research may examine the effect of these characteristics on female directors regarding financial reporting quality.

Practical implications

The evidence about the importance of female leadership in shaping financial reporting quality may inform future policy and regulatory initiatives.

Originality/value

This study contributes to the growing literature related to gender diversity. First, this study extensively investigates the leadership aspects related to female directors in both mentoring and executive positions. Second, the evidence reached is based on three different proxies of financial reporting quality. Thus, unlike previous studies, conclusions were reached based on a solid basis to support the reliability of the results. These findings should be of great interest to policymakers, academics and stakeholders.

Details

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

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