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Article
Publication date: 15 March 2024

B. Elango

This study seeks to explicate how institutional disruptions impact multinational corporation (MNC) subsidiary control choices. It uses institutional theory to understand the…

Abstract

Purpose

This study seeks to explicate how institutional disruptions impact multinational corporation (MNC) subsidiary control choices. It uses institutional theory to understand the influence of formal and informal institutions across countries on the type of control system employed in an MNC manufacturing subsidiary.

Design/methodology/approach

This study’s sample is based on a unique dataset from five trustworthy sources. We use multi-level models to account for the hierarchical nature of the sample of 1,630 multinational subsidiaries spread across 26 host countries by firms from 21 home countries.

Findings

The institutional distance between the host and the home country has a negative relationship with strategic control. In contrast, the home country’s power distance has a positive relationship with strategic control.

Originality/value

Study findings indicate the need to incorporate formal and informal institutional elements in the control system’s conceptual framing and design. This notion complements existing visualizations of optimizing MNC controls through extant articulations of minimizing governance costs through organizational design choices or strategic needs.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 13 April 2023

Md Jahidur Rahman, Hongtao Zhu and Md Moazzem Hossain

From an agency perspective, the authors investigate whether family ownership and control configurations are systematically associated with a firm's choice of auditor and audit…

Abstract

Purpose

From an agency perspective, the authors investigate whether family ownership and control configurations are systematically associated with a firm's choice of auditor and audit fees. Agency theory is an economic theory that purposes the existence of a contract between two parties, principals and agents. Auditor choice and audit fees by family firms provide interesting insights given the unique nature of the agency problems faced by such firms.

Design/methodology/approach

The authors employ Big-4 auditors (PWC, KPMG, E&Y and Deloitte) as a proxy for high quality auditor (Big N) for the auditor choice model. For the audit fee model, the dependent variable is the natural logarithm of audit fees (LnAF). The authors use two measures for family firm as explanatory variables: (1) a dummy variable (FAM_Control), which equals one if the firm is classified as a family firm and (2) FAM_Ownership, which is an indicator variable with a value of one if a firm has family members who hold CEO position, occupy board seats, or hold at least 10% of the firm's equity. Data of Chinese listed firms from 2011 to 2021 are used. The authors adopt the Heckman (1979) two-stage model to mitigate the potential endogeneity issue involved in the selection of Big-N auditors.

Findings

The findings suggest that compared with non-family firms, Chinese family firms have a less tendency to employ Big-4 auditors due to less severe agency problems between owners and managers. Additionally, Chinese family firms sustain higher audit fees than non-family firms. Similar to the prior literature, however, Chinese family firms audited by Big-4 auditors incur lower audit fees than family firms audited by non-Big-4 auditors in this study. In contrast to young-family firms, old-family firms are less likely to pick top-tier auditors and sustain lower audit fees. Consistent and robust results are found from endogeneity tests and sensitivity analyses.

Originality/value

The empirical evidence provides a unique insight, for accounting practitioners, policymakers, family owners and other capital market participants concerning the diverse effects of various family ownership and control features on selecting high-quality auditors and audit fees. This study advances the understanding, showing that a lower demand for audit quality occurs in Chinese family firms as they encounter less severe Type I agency problems. However, the more severe Type II agency problems in Chinese family firms sustain higher audit fees due to higher audit risk and greater audit effort.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 19 September 2022

Anna Motylska-Kuzma, Izabela Szymanska and Krzysztof Safin

This paper investigates the impact of family influence measured by the F-PEC scale on private enterprise (both family firms and lone founders) leadership succession strategy.

Abstract

Purpose

This paper investigates the impact of family influence measured by the F-PEC scale on private enterprise (both family firms and lone founders) leadership succession strategy.

Design/methodology/approach

The research dataset is comprised of 390 private enterprises whose head offices were situated in the voivodeships of Lower Silesia and Wielkopolska in Poland. The authors collected data through CAPI (computer-assisted personal interviewing) method, as well as through comprehensive, structured interviews with company owners. Data were analysed using hierarchical logistic regression for each type of succession strategy.

Findings

The results suggest that increased family influence does not necessarily lead to intra-family leadership succession in private enterprises. Importantly, a range of findings contradicted authors' predictions. The relationship between the overall F-PEC scale values signifying the multi-faceted family influence over the business and the choice of internal successor was weakly negative for the total sample; also, the higher the overlap between family and business values and the higher the commitment to family business, as evidenced by the Culture subscale, the lower was the occurrence of intra-family successor choice in the population of lone founders. The Culture subscale also increased the prevalence of lack of succession planning in the sample of lone founders.

Originality/value

While several studies suggests that family firms may be more prone to choose an intra-family succession scenario, it remains unclear how lower levels of business and succession experience, may influence the successor choice. Indeed, some studies suggest that a strong family influence over a business, may stimulate family firms to choose a family outsider as a business leader. Therefore, the key contribution of this study is contextualizing the response to an ongoing succession debate. This study investigates the strategic choices of companies in the first generation of ownership operating in Poland, which serves as an example of a post-transition economy. While the characteristics of this economic environment may be unique, the authors discuss how the surprising findings may add to the understanding of the general succession processes present in private enterprises.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 7 August 2023

Josi M.A. Driessen, Anja J.E. Dirkzwager, Joke M. Harte and Henk Aarts

Imprisonment is associated with far-reaching restrictions of personal autonomy, which critically depends on the sense of agency (SoA), i.e. the experience of control over one’s…

Abstract

Purpose

Imprisonment is associated with far-reaching restrictions of personal autonomy, which critically depends on the sense of agency (SoA), i.e. the experience of control over one’s own actions and the consequences of these actions. Lack of personal choice and coercion to engage in specific actions disrupt the neurocognitive basis of SoA, which can have a profound impact on social behaviour, self-reliance and well-being. The purpose of this conceptual paper is to address the relationship between autonomy, choice restrictions and SoA in prisoners and the ability to reenter society after release.

Design/methodology/approach

This conceptual paper integrates existing empirical evidence from research on the role of personal autonomy and lack of freedom in prison and recent research using neurocognitive methods to study the processes underlying the effects of choice restrictions and coercion on SoA.

Findings

Building on prior empirical observations, the authors suggest that investigating how and when imprisonment undermines SoA through the restriction of personal choice can provide valuable insights into prisoners’ challenges in regulating and organizing their behavior and to accommodate the rules of society.

Originality/value

This conceptual paper offers directions for future research to further our understanding of autonomy restrictions on SoA in prison and its downstream consequences for societal reintegration.

Details

Journal of Criminal Psychology, vol. 13 no. 4
Type: Research Article
ISSN: 2009-3829

Keywords

Article
Publication date: 8 June 2022

Noppanon Homsud and Nopadol Rompho

This study aims to determine the effect of cognitive biases, that is, anchoring effect, illusion of control, and endowment effect, on customer satisfaction.

Abstract

Purpose

This study aims to determine the effect of cognitive biases, that is, anchoring effect, illusion of control, and endowment effect, on customer satisfaction.

Design/methodology/approach

An experimental design was applied using 524 undergraduate students as participants. A three-way ANOVA was employed for data analysis.

Findings

Positive relationships were found between cognitive biases and customer satisfaction. However, no such relationships were found between the interactions of various types of cognitive bias and customer satisfaction, except the interaction between illusion of control and endowment effect.

Research limitations/implications

This study focuses only on three types of cognitive biases; thus, it cannot be generalized to other such systematic patterns.

Practical implications

Marketers can introduce cognitive bias when implementing marketing campaigns to boost customer satisfaction.

Originality/value

This study expands the knowledge boundary by addressing the impact of the interaction between various aspects of cognitive bias that drive customer satisfaction.

Details

Asia-Pacific Journal of Business Administration, vol. 15 no. 5
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 22 December 2022

Xiangfei Zeng, Ting Zhang and Yafei Zu

This paper aims to investigate the law and logic mechanism of management control matching pattern and company strategy aggressiveness under different strategies by textual…

Abstract

Purpose

This paper aims to investigate the law and logic mechanism of management control matching pattern and company strategy aggressiveness under different strategies by textual analysis, based on the empirical data of Chinese A-share listed companies during the period from 2010 to 2018. Additional analyses further investigate the moderating effect of environmental uncertainty and R&D intensity on the relationship between management control matching type and strategy aggressiveness. The conclusion can help relevant departments to develop management control theory and method system with Chinese characteristics and provide theoretical reference for the matching mode of dual control.

Design/methodology/approach

This paper uses the text analysis method. The main explanatory variables are analyzed using the computer SQL Server database software through the relevant text of the board of directors report in the company annual report. Other financial data came from the CSMAR database, excluding ST and PT and companies with missing data, and 16,902 samples were finally obtained. This paper conducted statistical analysis through Stata12.

Findings

This paper shows that the matching pattern between formal and informal control is divided into three types. They have different impacts on strategy aggressiveness. Specifically, consistent matching type II significantly positively influences the aggressiveness of offensive strategy. Consistent matching type I significantly positively influences the aggressiveness of defensive strategy. Complementary matching type I significantly positively influences the aggressiveness of analytical strategy. Additional analyses find that compared with non-high-tech companies, high-tech companies have more significant influence on the relationship between management control matching pattern and company strategic aggressiveness. And compared with other two “strategy-control” matching patterns, both environmental uncertainty and product innovation have more significant influence on the relationship between consistent matching II and offensive strategy aggressiveness.

Originality/value

To the best of the authors’ knowledge, this paper divides the formal and informal control matching patterns of management control into three categories for the first time. It examines the relationship between the formal and informal control matching of management accounting and the degree of strategy aggressiveness. The conclusion provides new empirical evidence to promote the effective implementation of development strategies for companies. It can help relevant departments to develop management control theory and method systems with Chinese characteristics and provide theoretical references for the matching mode of dual control.

Details

Chinese Management Studies, vol. 18 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 10 May 2023

Kinshuk Saurabh

The aim of this study is to understand a family firm's choice of related-party transaction (RPT) types and analyze their value impacts to separate the abusive from benign RPTs.

Abstract

Purpose

The aim of this study is to understand a family firm's choice of related-party transaction (RPT) types and analyze their value impacts to separate the abusive from benign RPTs.

Design/methodology/approach

It uses a 10-year panel of BSE-listed 378 family (and 200 non-family) firms. The fixed effects, logit and difference-in-difference (DID) models help examine value effects, propensity and persistence of harmful RPTs.

Findings

Loans/guarantees (irrespective of counterparties) destroy firm value. Capital asset RPTs decrease the firm value but enhance value when undertaken with holding parties. Operating RPTs increase firm value and profitability. They improve asset utilization and reduce discretionary expenses (especially when made with controlled entities). Family firms have larger loans/guarantees and capital asset volumes but have smaller operating RPTs than non-family firms. They are less likely to undertake loans/guarantees (and even operating RPTs) and more capital RPTs vis-à-vis non-family firms. Family firms persist with dubious loans/guarantees but hold back beneficial operating RPTs, despite RPTs being in investor cross-hairs amid the Satyam scam.

Research limitations/implications

Rent extractability and counterparty incentives supplement each other. (1) The higher extractability of related-party loans and guarantees (RPLGs) dominates the lower extraction incentives of controlled parties. (2) Holding parties' bringing assets, providing a growth engine and adding value dominate their higher extraction incentives (3) The big gains to the operational efficiency come from operating RPTs with controlled parties, generally operating companies in the family house. (4) Dubious RPTs seem more integral to family firms' choices than non-family firms. (5) Counterparty incentives behind the divergent use of RPTs deserve more research attention. Future studies can give more attention to how family characteristics affect divergent motives behind RPTs.

Practical implications

First, the study does not single out family firms for dubious use of all RPTs. Second, investors, auditors or creditors must pay close attention to RPLGs as a special expropriation mechanism. Third, operating RPTs (and capital RPTs with holding parties) benefit family firms. However, solid procedural safeguards are necessary. Overall, results may help clarify the dilemma Indian regulators face in balancing the abusive and business sides of RPTs.

Originality/value

The study fills the gap by arguing why some RPTs may be dubious or benign and then shows how RPTs' misuse depends on counterparty types. It shows operating RPTs enhance operating efficiencies on several dimensions and that benefits may vary with counterparty types. It also presents the first evidence that family firms favor dubious RPTs more and efficient RPTs less than non-family firms.

Details

Asian Review of Accounting, vol. 31 no. 4
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 26 December 2023

Mona Nikidehaghani

This paper aims to explore how accounting is fostering neoliberal citizenship through the participants of Australia’s National Disability Insurance Scheme (NDIS). More…

Abstract

Purpose

This paper aims to explore how accounting is fostering neoliberal citizenship through the participants of Australia’s National Disability Insurance Scheme (NDIS). More specifically, this paper aims to understand how accounting discourse and the management accounting technique of budgeting, when intertwined with automated administrative processes of the NDIS, are giving rise to a pastoral form of power that directs people’s behaviour toward certain ends.

Design/methodology/approach

Publicly available data has been crafted into an autoethnographic case study of one fictitious person’s experiences with the NDIS – Mina. Mina is an amalgam created from material submitted to the Joint Parliamentary Standing Committee on the NDIS. Mina’s experiences are then analysed through the lens of Foucault’s concept of pastoral power to explore how accounting has contributed to marketising and digitising public disability services.

Findings

Accounting rhetoric appears to be a central part of rationalising the decision to shift to individualised disability funding. Those receiving payments are treated as self-governable, financially responsible subjects and are therefore expected to have knowledge of management accounting techniques and budgeting. However, NDIS’s strong reliance on the accounting concepts of funds, budgets, cost and price is limiting people’s autonomy and subjecting them to intervention and control.

Originality/value

This paper addresses calls to explore the interplay between accounting and current disability policies. The analysis shows that incorporating accounting into the NDIS’s algorithms serves to conceal the underlying ideology of the programs, subtly driving behaviours towards neoliberal objectives. Further, this research extends the Foucauldian accounting literature by revealing the contribution of accounting to reinforcing the authority of digital pastors in contemporary times.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 9 December 2020

Christopher Towers and Richard Howarth

With the context of changing global and local populations and, for example, their composition and distribution, this paper offers insight to food shopping in later life with a…

Abstract

With the context of changing global and local populations and, for example, their composition and distribution, this paper offers insight to food shopping in later life with a focus on Nottingham and Nottinghamshire in the East Midlands. The work is relevant and important due to the specific population makeup of this area and the challenges in achieving the UN Sustainable Development Goals (SDGs) as a result of population changes/challenges.

The work takes an interdisciplinary view and draws on literature from both social policy and social care and business and marketing. Using this work as a grounding, and insights to primary research from a wider study in this area, the paper offers discussion and comment on:

  • the importance of food and food shopping in later life;

  • issues of, and concerns for, health, well-being, identity and community maintenance and resilience (as a direct result of the challenge to SDG achievement); and

  • the role(s) and responsibility of business from a core business and wider business/corporate responsibility perspective as a reflection of the above and findings of the work.

the importance of food and food shopping in later life;

issues of, and concerns for, health, well-being, identity and community maintenance and resilience (as a direct result of the challenge to SDG achievement); and

the role(s) and responsibility of business from a core business and wider business/corporate responsibility perspective as a reflection of the above and findings of the work.

Using primary research undertaken by the authors, the paper supports findings from existing work from across social policy and care and business and management – related to the practicalities, challenges and the role of and approaches to food shopping in later life. It specifically offers insight to the efforts made by older food shoppers to maintain their independence and support their choices in a context of interdependence (e.g. within a family, community and environment). The importance social aspects of food shopping (as a counter to isolation and loneliness for example) are also identified and how, for example, the actions of business(es) may undermine the efforts (and resilience) of individuals and communities. “Better” understanding of food shoppers by business and other stakeholders is promoted.

Details

Emerald Open Research, vol. 1 no. 2
Type: Research Article
ISSN: 2631-3952

Keywords

Article
Publication date: 13 September 2023

Shimin Yin, Bin Li and Qi Zhou

Skippable video advertising offers users the option to skip directly to their desired video content after viewing a limited amount of advertising and is becoming a format…

Abstract

Purpose

Skippable video advertising offers users the option to skip directly to their desired video content after viewing a limited amount of advertising and is becoming a format increasingly preferred by advertisers. This study constructed a mediator model based on advertising attitude to examine the influence of users' perceived control and perceived intrusiveness on brand attitude and advertising avoidance intention in skippable video ads.

Design/methodology/approach

The study considered the structural equation model using a self-reporting measure method. The research model was tested using a sample of 302 respondents.

Findings

The results showed that perceived control positively affected ad and brand attitude and negatively affected advertising avoidance intention. Perceived intrusiveness negatively affected attitudes toward the advertising and the brand but positively affected advertising avoidance intention. Ad attitude and brand attitude had no significant influence on advertising avoidance intention. The results also confirmed that ad attitude mediates the path from perceived control and intrusiveness to brand attitude.

Originality/value

This study further enriches the theoretical development of skippable video ads and expands the perspective and scope of interactive advertising research.

Details

Marketing Intelligence & Planning, vol. 41 no. 8
Type: Research Article
ISSN: 0263-4503

Keywords

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