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Article
Publication date: 1 June 2020

Ruopiao Zhang, Carlos Noronha and Jieqi Guan

There is currently a host of measurements of corporate social performance (MCSPs) each with its own individual merits and concerns. This paper aims to bring new insights…

Abstract

Purpose

There is currently a host of measurements of corporate social performance (MCSPs) each with its own individual merits and concerns. This paper aims to bring new insights into measuring corporate social performance (CSP) by advocating the use of a complementary indicator known as the social contribution value per share (SCVPS) developed by the Shanghai Stock Exchange in China.

Design/methodology/approach

A three-dimensional model is built to dissect the theoretical foundation of SCVPS. Next, this paper undertakes an extensive literature review of the criteria and methodologies which SCVPS relies upon to assess a firm’s social performance. Then SCVPS is critically compared with other commonly used MCSPs from different angles.

Findings

This paper highlights the major limitations of some MCSPs, namely, the lack of transparency, selection biases and the exclusion of controversial industries. It is suggested that SCVPS is worthy to be considered as a complementary indicator for CSP given its innovativeness, standardization and practicability.

Practical implications

The authors argue that there is great theoretical and practical significance for firms to set per-share social contribution indicators using SCVPS on a global basis, which helps to enrich decision-making processes when combined with other MCSPs.

Originality/value

This paper suggests SCVPS as a complementary indicator of social performance and anatomizes this choice indicator with other MCSPs in terms of their theoretical underpinnings, practical applications and probable deficiencies.

Article
Publication date: 14 June 2022

Jieqi Guan, Carlos Noronha, Sandy Hou In Sio and Ching-Chi (Cindia) Lam

Typhoon Hato attacked Macau in August 2017 and had caused fatalities and extensive damages. This study aims to analyze the reactions of the city’s six casinos after the…

Abstract

Purpose

Typhoon Hato attacked Macau in August 2017 and had caused fatalities and extensive damages. This study aims to analyze the reactions of the city’s six casinos after the natural disaster from the perspective of corporate social responsibility (CSR), with particular emphasis on finding out which stakeholders had they directed their support mostly.

Design/methodology/approach

Qualitative content analyses of press releases, social media, company reports and websites of the casinos in relation to the disaster and their CSR activities were conducted and examined in depth. Furthermore, triangulation of the qualitative data was achieved with quantitative data through a regression analysis.

Findings

It was found that most of the casinos’ activities were delivered in the forms of donations, rebuilding the community, supporting staffs and calling for volunteer work, thus largely targeting on the community and employees.

Practical implications

The study serves as a practical lesson for the casino operators to better plan and implement risk and reputational management and to better proliferate their socially responsible side of the gaming business to the public. It also helps casinos to ponder upon better crisis management methods so as to attain sustainability of the industry itself.

Social implications

The study explains the CSR activities of casinos, which are in a controversial industry, and attempts to explore why do they engage in CSR. It can be seen that the wrestle between social pressure and voluntarism will eventually institutionalize casinos and other controversial businesses in promoting more CSR in various aspects.

Originality/value

Combining some established institutional and socio-psychological theories, including the theory of planned behavior and the theory of regret regulation, the current work serves as an exploratory study to look into how and why Macau’s leading industry reacts in response to a natural disaster through CSR.

Details

Social Responsibility Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 1 October 2003

Carlos Noronha

Using a sample of total quality management (TQM) companies operating in mainland China, Hong Kong, and Taiwan, a structural equation model explaining the influence of…

2718

Abstract

Using a sample of total quality management (TQM) companies operating in mainland China, Hong Kong, and Taiwan, a structural equation model explaining the influence of Chinese cultural values on TQM was tested. Results indicated that the proposed model demonstrated satisfactory goodness of fit. The underlying Chinese values of abasement, adaptiveness, harmony with people, harmony with the universe, interdependence, and respect for authority were found to have important influences on four quality dimensions, namely climate, processes, methods, and results.

Details

The TQM Magazine, vol. 15 no. 5
Type: Research Article
ISSN: 0954-478X

Keywords

Article
Publication date: 23 November 2021

Ruopiao Zhang, Teresa Chu, Carlos Noronha and Jieqi Guan

This study introduces Social Contribution Value per Share (SCVPS), an indicator devised by the Shanghai Stock Exchange (SSE), as an easy-to-interpret Measurement of…

Abstract

Purpose

This study introduces Social Contribution Value per Share (SCVPS), an indicator devised by the Shanghai Stock Exchange (SSE), as an easy-to-interpret Measurement of Corporate Social Performance (MCSP) to the international research arena. The authors first explore the informativeness role of voluntary disclosure of SCVPS in the stock market. The authors then go one step further to demonstrate the relationship between corporate value creation quantified by SCVPS and firm value.

Design/methodology/approach

The study takes a new perspective – a quasi-natural experiment of SCVPS disclosure in 2008 and uses a Propensity Score Matched Difference in Difference model (PSM-DiD) to investigate the impact of SCVPS disclosure policy on stock price synchronization and firm value. Through manually recalculating all the values of SCVPS and its components, this study enables us to further investigate the relationship between corporate value creation for various stakeholders and firm value.

Findings

This study reveals that voluntary disclosure of SCVPS can signal firm-specific information to the market and reduce noise in returns, thus affecting stock price synchronization. The findings further demonstrate that such firm-specific information has value relevance to firm performance. Moreover, the authors demonstrate that corporate value creation for different stakeholders measured by SCVPS can significantly affect firm value. The moderating effects of ownership structures and industry types are also investigated, and an endogeneity test confirms the robustness of the findings.

Practical implications

This study argues that SCVPS offers an economically viable way for firms, including small-and-medium-sized enterprises, in emerging economies to disclose corporate value creation and provide the public with a direct understanding and appreciation of the values created by corporations for stakeholders.

Originality/value

The result makes contributions to the MCSP literature and explores the informativeness of SCVPS disclosure. Besides, this paper demonstrates that SCVPS offers a good setting to explore the effect of corporate value creation on firm performance in an emerging market.

Details

Journal of Accounting in Emerging Economies, vol. 12 no. 3
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 10 July 2021

Carlos Noronha, Jieqi Guan and Sandy Hou In Sio

While the COVID-19 virus has been spreading worldwide, some studies have related the pandemic with various aspects of accounting and therefore emphasized the importance of…

Abstract

Purpose

While the COVID-19 virus has been spreading worldwide, some studies have related the pandemic with various aspects of accounting and therefore emphasized the importance of accounting research in understanding the impact of COVID-19 on society as a whole. Recent studies have looked into such an impact on various industries such as retail and agriculture. The current study aims at applying a sociological framework, sociology of worth (SOW), to the gaming industry in Macau, the largest operator of state-allowed gambling and entertainment in China, which will allow for its development during the COVID-19 pandemic to be charted.

Design/methodology/approach

The study uses the theory of SOW as a framework and collects data from various sources, such as the government, gaming operators and the public, to create timelines and SOW frameworks to analyze the impact of the virus on the gaming industry and the society as a whole.

Findings

Detailed content analysis and the creation of different SOW matrices determined that the notion of a “lonely economy” during a time of a critical event may be ameliorated in the long term through compromises of the different worlds and actors of the SOW.

Practical implications

Though largely theory-based, this study offers a thorough account of the COVID-19 incident for both the government and the gaming industry to reflect on and to consider new ways to fight against degrowth caused by disasters or crises.

Social implications

The SOW framework divides society into different worlds of different worths. The current study shows how the worths of the different worlds are congruent during normal periods, and how cracks appear between them when a sudden crisis, such as COVID-19, occurs. The article serves as a social account of how these cracks are formed and how could they be resolved through compromise and reconstruction.

Originality/value

This study is a first attempt to apply SOW to a controversial industry (gaming) while the effects of the COVID-19 pandemic are ongoing. It offers a significant contribution to the social accounting literature through its consideration of the combination of unprecedented factors in a well-timed study that pays close attention to analyses and theoretical elaboration.

Details

Sustainability Accounting, Management and Policy Journal, vol. 12 no. 5
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 16 April 2018

Carlos Noronha, Jieqi Guan and Jing Fan

This study aims to investigate the relationship between corporate social contribution measures and investors’ reaction under the effect of corporate governance for firms…

1231

Abstract

Purpose

This study aims to investigate the relationship between corporate social contribution measures and investors’ reaction under the effect of corporate governance for firms listed in China, the largest emerging economy in the world. Corporate social contribution is examined from an informative perspective by using a financial indicator – social contribution value per share (SCVPS) brought up by the Shanghai Stock Exchange in 2008.

Design/methodology/approach

Data are obtained from two channels: financial information during 2007-2015 generated from database and social accounting information manually collected from the 2007-2015 annual reports and social reports.

Findings

It is predicted that investors’ reaction toward corporate social contribution becomes stronger for companies with higher corporate governance quality.

Practical implications

This paper is one of the first to use Chinese SCVPS data to indicate the informativeness of social contribution toward firm value. It can serve as a valuable reference to both investors and companies in terms of the issue of social contribution.

Social implications

The study highlights the importance of social contribution on firm value by using an empirical approach in the Chinese market. The study can be used as a reference for many other developing countries in the world.

Originality/value

The findings of this study can provide guidance to investors on how to evaluate a firm’s social performance and encourage companies to improve the transparency of their social reporting, as well as the quality of corporate governance.

Details

Sustainability Accounting, Management and Policy Journal, vol. 9 no. 2
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 2 November 2015

Carlos Noronha, Tiffany Cheng Han Leung and On Ieng Lei

The purpose of this paper is to focus on the corporate response of Chinese railway companies after the deadly Wenzhou train accident in China which happened on July 23…

1244

Abstract

Purpose

The purpose of this paper is to focus on the corporate response of Chinese railway companies after the deadly Wenzhou train accident in China which happened on July 23, 2011. Few studies on corporate social responsibility (CSR) in developing countries have looked into whether the information disclosed by companies is satisfactory with sufficient response after a major incident has happened.

Design/methodology/approach

Five companies with the largest market value in the Chinese railway industry involved in the production of trains and railway systems connected to the “7.23” incident were taken as the observations in this study. Information published by the companies and the media related to the accident, including CSR and sustainability reports, company Web sites, news and press releases and Internet postings, were investigated in detail in a qualitative manner.

Findings

The findings show that disclosure of information related to the “7.23” incident was very low or almost inexistent in the observed companies. For those that claimed that they had followed CSR reporting standards and guidelines, the disclosed information appeared to be insufficient to reveal practical information and fulfill stakeholders’ requirements. The study also sheds light on the corporate reporting behaviors of Chinese state-owned enterprises by applying legitimacy, stakeholder and institutional theories to the unique social and political environment in the country.

Originality/value

This paper critically reveals the poor corporate response after the “7.23” incident in Chinese railway companies. The case serves as an example for the companies to ponder on what improvements are called for in terms of social reporting and relevant corporate actions after a major accident. Also, the study contributes to the CSR disclosure literature concerning developing countries by examining the case of China and the little studied railway industry run by the state.

Details

Sustainability Accounting, Management and Policy Journal, vol. 6 no. 4
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 18 April 2008

Carlos Noronha, Yun Zeng and Gerald Vinten

In recent years, China has been making progress in internationalizing its financial reporting system. However, it is believed that earnings management from legitimate…

4369

Abstract

Purpose

In recent years, China has been making progress in internationalizing its financial reporting system. However, it is believed that earnings management from legitimate accounting choices to fraud that violates generally accepted accounting principles, is common in the mainland. The purpose of this study is to identify the most frequently used earnings management techniques in China and the underlying factors that motivate firms to engage in earnings management.

Design/methodology/approach

Data were gained through a questionnaire sent to managers and accountants in mainland Chinese companies.

Findings

The results show that the size and form of ownership of companies materially influence earnings management incentives and techniques in China. Public ownership companies have stronger incentives to manage earnings for management compensation, while private ownership companies pay more attention to tax expense savings. Also, several popular techniques employed in China are revealed.

Originality/value

This study presents a general picture of earnings management in China by surveying the opinions of accountants and financial managers in Chinese companies.

Details

Managerial Auditing Journal, vol. 23 no. 4
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 February 1999

Carlos Noronha

Most “quality management models” to date have been largely “experience‐based”. For example, Deming’s famous chain reaction model and Juran’s trilogy model are validated by…

1308

Abstract

Most “quality management models” to date have been largely “experience‐based”. For example, Deming’s famous chain reaction model and Juran’s trilogy model are validated by the gurus’ own observations and experience in the industry. Such “experience‐based” models have laid the cornerstone for some more “theory‐driven” approaches to quality management, usually encompassing theories from other related disciplines such as motivational theories and group dynamics. Such approaches have, in turn, formed the basis for some widely accepted and implemented quality management models. The TQM model of the US Department of Defense is an excellent example of a blueprint of quality strategies adopted by outstanding companies worldwide. Very little literature to date has attempted to verify the veracity of such models using actual data collected from the industry. The present paper aims at presenting an interesting exercise in verifying and confirming one such model using structural equation modelling techniques.

Details

Managerial Auditing Journal, vol. 14 no. 1/2
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 December 2003

Carlos Noronha and Gerald Vinten

Due to the rapid growth of electronic commerce worldwide, the traditional approach of taxing business profits in Hong Kong, a source‐based common law jurisdiction…

2895

Abstract

Due to the rapid growth of electronic commerce worldwide, the traditional approach of taxing business profits in Hong Kong, a source‐based common law jurisdiction, warrants a close review as to its compatibility with such a modern way of doing business. Although the Inland Revenue Department of Hong Kong has issued its views on the taxation of electronic commerce profits as Departmental Interpretation and Practice Note 39, much of the treatment of such profits follow the conventional wisdom of taxing business profits as set in the source‐based rules. This paper reviews the present situation of taxing profits arising from electronic commerce transactions in Hong Kong and compares it with the cases of the UK and the USA. Problems in formulating water‐tight tax law, accounting standards for intangible assets, and coping with cross‐border fraud, indicate that progress may not be straightforward. Issues as to fairness, and the difficulty of taxing such receipts are raised, followed by recommendations.

Details

Managerial Auditing Journal, vol. 18 no. 9
Type: Research Article
ISSN: 0268-6902

Keywords

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