Search results

1 – 10 of 17
Article
Publication date: 7 May 2019

Md Shahid Ullah, Mohammad Badrul Muttakin and Arifur Khan

The purpose of this study is to empirically examine the association between corporate governance and the extent of corporate social responsibility (CSR) disclosures in insurance…

2470

Abstract

Purpose

The purpose of this study is to empirically examine the association between corporate governance and the extent of corporate social responsibility (CSR) disclosures in insurance companies, using archival data.

Design/methodology/approach

The data set comprises 277 listed insurance company-years in Bangladesh for the period of 2008 to 2014. The authors have used a checklist to measure the extent of CSR disclosures. The checklist was developed based on the previous CSR literature. The study uses a multiple regression analysis technique to investigate the association between different governance variables, particularly managerial ownership, institutional ownership, board independence and the proportion of female directors, and the extent of CSR disclosures in Bangladeshi insurance companies.

Findings

The authors find that board independence and the proportion of female directors have positive associations with the extent of CSR disclosures. However, the results indicate that managerial ownership is negatively associated with the extent of CSR disclosures.

Originality/value

Unlike most of the prior research that explored CSR disclosures in non-financial companies, the authors focus on financial companies, namely, insurance businesses. The authors provide empirical evidence using archival data that suggests that some governance mechanisms are important determinants of CSR disclosures in the insurance industry.

Details

International Journal of Accounting & Information Management, vol. 27 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 4 April 2017

Mohammad Badrul Muttakin, Arifur Khan and Dessalegn Getie Mihret

This study aims to investigate the moderating role of audit quality on the association between business group affiliation of firms and earnings management in the South Asian…

2103

Abstract

Purpose

This study aims to investigate the moderating role of audit quality on the association between business group affiliation of firms and earnings management in the South Asian emerging economy of Bangladesh.

Design/methodology/approach

A usable sample of 917 firm-year observations was drawn from companies listed on the Dhaka Stock Exchange from 2005 to 2013. Data were collected from the annual reports of sample companies. Earnings management was measured using the absolute value of discretionary accruals, and two proxies were used to measure audit quality: auditor size and industry specialisation.

Findings

Results showed that the level of discretionary accruals is positively associated with business group affiliation status, and higher audit quality reduces this association. This suggests that in environments without strong investor protection, complex ownership structures create opportunities for controlling shareholders to expropriate minority shareholders. The controlling shareholders could then mask this practice through earnings management. The findings also show that in environments lacking strong investor protection, audit quality can help improve earnings quality for group-affiliated firms.

Practical implications

The results suggest that financial statement users need to consider audit quality for a reasonable evaluation of the earnings quality of business groups. The study also informs regulators by illuminating audit quality as a key area of focus in any effort directed at enhancing stock market efficiency through improved earnings quality in environments where business group affiliation is prevalent.

Originality/value

This study documents empirical evidence on the moderating effect of audit quality on the positive association between business group affiliation and earnings management.

Details

Managerial Auditing Journal, vol. 32 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 3 October 2016

Arifur Khan, Dessalegn Getie Mihret and Mohammad Badrul Muttakin

The effect of political connections of agency costs has attracted considerable research attention due to the increasing recognition of the fact that political connection…

3193

Abstract

Purpose

The effect of political connections of agency costs has attracted considerable research attention due to the increasing recognition of the fact that political connection influences corporate decisions and outcomes. This paper aims to explore the association between corporate political connections and agency cost and examine whether audit quality moderates this association.

Design/methodology/approach

A data set of Bangladeshi listed non-financial companies is used. A usable sample of 968 firm-year observations was drawn for the period from 2005 to 2013. Asset utilisation ratio, the interaction of Tobin’s Q and free cash flow and expense ratio are used as alternative proxies for agency costs; membership to Big 4 audit firms or local associates of Big 4 firms is used as a proxy for audit quality.

Findings

Results show that politically connected firms exhibit higher agency costs than their unconnected counterparts, and audit quality moderates the relationship between political connection and agency costs. The results of this paper suggest the importance of audit quality to mitigate agency problem in an emerging economic setting.

Research limitations/implications

The findings of this paper could be of interest to regulators wishing to focus regulatory effort on significant issues influencing stock market efficiency. The findings could also inform auditors in directing audit effort through a more complete assessment of risk and determining reasonable levels of audit fees. Finally, results could inform financial statement users to direct investments to firms with lower agency costs.

Originality/value

To the knowledge of the authors, this study is one of the first to explore the relationship between political connection and agency costs, and the moderating effect of audit quality of this relationship.

Details

International Journal of Accounting & Information Management, vol. 24 no. 4
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 5 May 2022

Huson Ali Ahmed, Mohammad Badrul Muttakin and Arifur Khan

The study examines the association between firm-level political risk and corporate innovation and also this study explores how financial constraint and growth level of a firm…

Abstract

Purpose

The study examines the association between firm-level political risk and corporate innovation and also this study explores how financial constraint and growth level of a firm influence this association.

Design/methodology/approach

A sample of 14,140 firm-year observations of the US firms from 2003 to 2020 is used. Unlike prior studies, this study uses a firm-level measure of political risk recently developed by Hassan et al. (2019) and measure innovation by patent and patent citation data and a text-based measure. A regression technique is used for empirical testing.

Findings

This study finds that firm-level political risk is negatively associated with innovation and also document that firm-level political risk has a negative impact on innovation for financially constrained and high growth firms. The overall results are robust after addressing the issue of potential endogeneity using entropy balancing and two-stage least squares regression techniques. This study also documents qualitatively consistent results after using alternative measures of innovation as well as firm-level political uncertainty.

Research limitations/implications

The findings of this study could help the managers to make better investment decision and improve economic efficiency through understanding the effect of firm-level political risk on innovation activities.

Originality/value

The study concentrates on firm-level political risk and innovation and presents new insights that political risk at the microlevel is an important determinant for investment in innovative activities.

Details

International Journal of Managerial Finance, vol. 19 no. 3
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 26 February 2020

Mohammad Badrul Muttakin, Dessalegn Mihret, Tesfaye Taddese Lemma and Arifur Khan

Although proponents of integrated reporting (IR) advocate that this emerging practice has the potential to transform corporate reporting, the eventuation of this expectation would…

2360

Abstract

Purpose

Although proponents of integrated reporting (IR) advocate that this emerging practice has the potential to transform corporate reporting, the eventuation of this expectation would depend on the incentive IR provides to firms. This study aims to examine whether IR is associated with cost of debt and whether IR moderates the relationship between financial reporting quality and cost of debt.

Design/methodology/approach

Based on insights drawn from information asymmetry and agency theories, the authors develop models that link IR and financial reporting quality with a firm’s cost of debt. The authors analyze 847 firm-year observations drawn from non-financial firms traded on the Johannesburg Stock Exchange, for the period between 2009 and 2015.

Findings

The authors find that firms that provide integrated reports tend to have a lower cost of debt than those do not provide IR. The authors also find an inverse association between financial reporting quality and cost of debt, and that integrated reports accentuate this association. The findings suggest that the debt market perceives value in the information presented in integrated reports beyond what is furnished in financial reports.

Originality/value

To the best of the authors’ knowledge, this study is the first to document evidence suggesting that the debt market perceives value in the information presented in integrated reports, beyond what is furnished in financial reports.

Details

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

Keywords

Article
Publication date: 27 September 2019

Tesfaye T. Lemma, Arifur Khan, Mohammad Badrul Muttakin and Dessalegn Getie Mihret

The emerging practice of integrated reporting (IR) has raised curiosity regarding how it impacts on firms and their stakeholders. The purpose of this paper is to examine whether a…

1085

Abstract

Purpose

The emerging practice of integrated reporting (IR) has raised curiosity regarding how it impacts on firms and their stakeholders. The purpose of this paper is to examine whether a firm’s decision to provide integrated reports is associated with its financing decisions and whether financial reporting quality mediates the relationship.

Design/methodology/approach

A usable sample of 832 firm-year observations was employed based on a dataset drawn from companies listed on the Johannesburg Securities Exchange (JSE) for the period between 2009 and 2015.

Findings

The findings show that firms that provide integrated reports tend to have lower levels of leverage, and this effect is partially mediated through financial reporting quality. We further document that the partial effect of financial reporting quality on leverage is stronger for firms that provide integrated reports than is the case for other firms. The findings suggest that IR enables firms to employ equity financing, which is a more informationally-sensitive source of capital than debt financing.

Originality/value

This study is the first to document evidence suggesting that management can draw on IR in devising optimal financing strategy.

Details

Asian Review of Accounting, vol. 27 no. 3
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 19 February 2018

Mohammad Badrul Muttakin, Dessalegn Getie Mihret and Arifur Khan

The purpose of this paper is to examine the association of corporate political connection with the level of voluntary corporate social responsibility (CSR) disclosures to…

3833

Abstract

Purpose

The purpose of this paper is to examine the association of corporate political connection with the level of voluntary corporate social responsibility (CSR) disclosures to determine how the relationships between the state and the corporate sector influence CSR engagement.

Design/methodology/approach

Based on a neo-pluralist view of legitimacy theory, which conceptualizes the state as a concentration of power amenable to exploitation by the corporate sector, the study develops and empirically tests a hypothesis that CSR disclosures are inversely associated with political connection. A sample of 936 firm-year observations is used with data collected from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013.

Findings

Results indicate that corporate political connection is associated with reduced CSR disclosures. This finding suggests that the perceived need for CSR disclosures as a legitimation strategy diminishes for politically connected firms. The finding supports a neo-pluralist argument that political connection could enable firms to eschew stakeholder pressure associated with potential legitimacy threats originating from poor CSR performance. This conclusion challenges the pluralist view of legitimacy theory that considers the state as a neutral arbiter resolving conflict among stakeholder groups in society.

Originality/value

The study makes a significant contribution to the literature by developing a neo-pluralist theorization of voluntary CSR disclosures within legitimacy theory and empirically testing it. Because prior empirical CSR disclosure research is largely underpinned by the pluralistic conception of society, examining this phenomenon from a neo-pluralist perspective enables a more complete understanding of CSR disclosure behaviors of firms.

Details

Accounting, Auditing & Accountability Journal, vol. 31 no. 2
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 24 October 2023

Mohammad Badrul Muttakin and Arifur Khan

This study aims to explore the association between chief executive officer (CEO) tenure and the quality of information disclosed through integrated reporting quality (IRQ), which…

Abstract

Purpose

This study aims to explore the association between chief executive officer (CEO) tenure and the quality of information disclosed through integrated reporting quality (IRQ), which combines financial and non-financial data. The authors also investigate how formal (e.g. board independence and gender diversity) and informal (e.g. corporate culture) governance mechanisms influence this association. By analysing these factors, the authors expect to provide valuable insights on the impact of CEO tenure and governance structures on the comprehensive nature of integrated reporting.

Design/methodology/approach

This study uses a sample of the top 200 Australian Securities Exchange (ASX)-listed companies from 2015 to 2019. IRQ is measured through levels of compliance with the integrated reporting (IR) framework proposed by the International Integrated Reporting Council (IIRC). The hypotheses are tested using multiple regression analyses.

Findings

The authors find that CEO tenure is negatively associated with IRQ. Furthermore, CEO tenure has a more positive influence on IRQ in the early CEO tenure years than later ones. The authors' study finds that the association between CEO tenure and IRQ is insignificant when firms have a high level of monitoring, as measured by board independence and gender diversity. The authors also document that competitive corporate culture moderates the negative association between CEO tenure and IRQ.

Originality/value

The authors' study highlights the significant impact of internal formal and informal governance mechanisms on disclosure practices in Australia's voluntary IR environment. By shedding light on these factors, the authors' research enhances understanding of Australian companies' IR practices and offers valuable insights for scholars, policymakers and practitioners in the field.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 14 March 2023

Arifur Khan, Sutharson Kanapathippillai and Steven Dellaportas

The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC…

Abstract

Purpose

The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC, pay a premium to CEOs with different skill sets (general or specific); and whether a pay premium mitigates the potential for CEO turnover.

Design/methodology/approach

This study uses a sample of 5,305 firm-year observations on a data set drawn from companies listed on the Australian Securities Exchange for the period 2007 to 2014. The authors use ordinary least squares as well as logit regression techniques to test the formulated hypotheses. Difference in difference and propensity score matching techniques were undertaken to address the endogeneity concerns.

Findings

The findings show that firms with a RC pay a higher total remuneration to CEOs compared to firms without a RC. Furthermore, firms with a RC, value and reward CEOs with general skills by paying a premium not offered to CEOs with industry-specific skills. Paying a premium, in turn, mitigates CEO turnover by strengthening the CEO’s commitment to the organisation.

Originality/value

The study helps us to understand the critical role played by the RC in the remuneration of CEOs. The findings show that RCs act as an effective governance mechanism to deal with issues of executive remuneration and to retain skilled CEOs. Additionally, CEOs who acquire and develop general managerial skills will be able to extract higher pay from improved bargaining power. The findings will be of relevance to shareholders, regulators and company management who have an interest in executive pay and performance.

Details

Meditari Accountancy Research, vol. 32 no. 2
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 12 January 2024

S.M. Sohel Rana, Sheikh Mohammad Fauzul Azim, Arifur Rahman Khan Arif, Mohammed Sohel Islam Sohel and Farhana Newaz Priya

The tech savvy generation Z consumers constitute a significant market of online shopping. Understanding their shopping behavior is thus a pressing need to expand the e-commerce…

Abstract

Purpose

The tech savvy generation Z consumers constitute a significant market of online shopping. Understanding their shopping behavior is thus a pressing need to expand the e-commerce business. Under this backdrop, the study aims to predict the online shopping behavior of generation Z customers in Bangladesh.

Design/methodology/approach

This study used the theory of consumption values (TCV) along with shopping enjoyment to understand the online shopping behavior of generation Z. A structured set of questionnaire was used to gather the responses on a five point Likert scale. A total of 411 valid responses were considered after discarding incomplete responses. The collected data were analyzed using the partial least squares structural equation modeling (PLS-SEM) approach with the help of smart PLS 4.0 software.

Findings

The statistical findings reveal that functional value is the most significant determinant of online shopping behavior among generation Z followed by social value, conditional value and epistemic value. The study also reveals that relationship between emotional value and online shopping behavior and relationship between conditional value and online shopping behavior is moderated by shopping enjoyment.

Originality/value

The paper contributes to the consumer behavior literature as the findings provide a comprehensive model from values perspectives to understand online shopping behavior among Gen Z customers in a developing country like Bangladesh. The findings of this study offer important insights to the marketers also since it reveals the values consumers consider while shopping online. The findings might help practitioners develop their online strategies to expand the business.

Details

Journal of Contemporary Marketing Science, vol. 7 no. 1
Type: Research Article
ISSN: 2516-7480

Keywords

1 – 10 of 17