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1 – 10 of over 4000Nur Yusliana Yusoff and Rusni Hassan
This paper aims to highlight provisions that may attract corporate criminal liability (CCL) in legislation and regulations enacted in Malaysia. Further, this paper identifies gaps…
Abstract
Purpose
This paper aims to highlight provisions that may attract corporate criminal liability (CCL) in legislation and regulations enacted in Malaysia. Further, this paper identifies gaps or obstacles in the implementation of CCL in Islamic banks (IBs) in Malaysia.
Design/methodology/approach
This research adopts the qualitative methodology. More specifically, it uses normative legal research by focusing on primary and secondary data obtained from legislation, regulations, decided case laws, guidelines, law textbooks and bank annual reports in relation to CCL provisions. It also conducts semi-structured interviews with different categories of experts, including legal practitioners (lawyers), regulators from Bank Negara Malaysia (BNM) and Securities Commission Malaysia, officers of the Attorney General's Chambers and officers from legal departments in IBs.
Findings
The results conclude that IBs should implement the law on CCL because they are considered corporations. It is also found that not all IBs complied with CCL provisions brought corporate offenders before the court.
Research limitations/implications
This research is restricted by its specialisation in CCL in IBs in Malaysia.
Practical implications
The CCL provision has to be implemented effectively by IBs to achieve the benefit. However, not all IBs implement CCL provision properly. The understanding created by the interview data illuminates the challenges in implementing CCL provisions. Thus, this paper seeks to change the approach in the implementation of CCL provisions by IBs in Malaysia.
Originality/value
The paper touches upon a new area, notably CCL in IBs, which is not well researched in past literature. Although there is a vast research on CCL, corporate crime in IBs in Malaysia is still an unexplored area. This study gives light on the implementation of CCL provisions in IBs.
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Sanjaya C. Kuruppu, Markus J. Milne and Carol A. Tilt
The purpose of this paper is to examine how legitimacy is gained, maintained or repaired through direct action with salient stakeholders and/or through external reporting, by…
Abstract
Purpose
The purpose of this paper is to examine how legitimacy is gained, maintained or repaired through direct action with salient stakeholders and/or through external reporting, by using a number of empirical case vignettes within a single case study organisation.
Design/methodology/approach
The study investigates a foreign affiliate of a large multinational organisation involved in an environmentally sensitive industry. Data collection included semi-structured interviews with 26 participants, organisational reports and participation in the organisation’s annual environmental management seminar and a stakeholder engagement meeting.
Findings
Four vignettes featuring environmental issues illustrate the complexity of organisational responses. Issue visibility, stakeholder salience and stakeholder interconnectedness influence a company’s action to manage legitimacy. In the short-term, environmental issues which affected salient stakeholders resulted in swift and direct action to protect pragmatic legitimacy, but external reporting did not feature in legitimacy management efforts. Highly visible issues to the public, regulators and the media, however, resulted in direct action together with external reporting to manage wider stakeholder perceptions. External reporting was used superficially, along with a broad suite of communication strategies, to gain legitimacy in the long-term decision about the company’s future in New Zealand.
Research limitations/implications
This paper outlines how episodic encounters to manage strategic legitimacy with salient stakeholders in the short-term are theoretically distinct, but nonetheless linked to continual efforts to maintain institutional legitimacy. Case vignettes highlight how pragmatic legitimacy via dispositional legitimacy can be managed with direct action in the short-term to influence a limited range of salient stakeholders. The way external reporting features in legitimacy management is limited, although this has predominantly been the focus of prior research. Only where an environmental incident damages legitimacy to a larger number of stakeholders is external reporting also used to buttress community support.
Originality/value
The concept of legitimacy is comprehensively applied, linking the strategic and institutional arms of legitimacy and illustrating how episodic actions are taken to manage legitimacy in the short-term with continual efforts to manage legitimacy in the long-term. Stakeholder salience and networks are brought in as novel theoretical extensions to provide a deeper understanding of the interrelationships between these key concepts with a unique case study.
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Bilal Ahmad Elsalem, Fekri Ali Shawtari, Ahmad Mohammed Qotba, Mohammed Bajaher and Mohammed Asseri
The purpose of this study is to examine both accruals and real earnings management in a large sample of private companies in the UK using data from 2002 to 2009 following the…
Abstract
Purpose
The purpose of this study is to examine both accruals and real earnings management in a large sample of private companies in the UK using data from 2002 to 2009 following the implementation of the UK Act of 2006.
Design/methodology/approach
A panel data analysis using GMM has been adopted to examine the objectives of the study and answer the research questions.
Findings
The results of this study showed that the imposition of the Companies Act of 2006, on its own, did lead to changes in earnings management behaviour, in both accruals-based earnings and real earnings management. Moreover, this study also found that firms that chose to provide IFRS financial statements tended to show less discretionary earnings management, however, it tended to have no impact on real earnings management.
Practical implications
In accordance with the research findings, standard setters with some insight tend to determine how capital markets see the information provided under the legislation such as the UK Act of 2006 in developed countries and thereby ensure long-term sustainability in a modern and sophisticated financial world. This study provides an insight into the successful implementation of the UK act of 2006, and its influence on the aspect of financial reporting.
Originality/value
The novel conclusion reached in the study is that there exists a strong and direct link between the smooth implementation of UK Act of 2006 and the practices of both accruals and real earnings management in real-world business and financial scenarios, particularly, in private companies.
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Krishna Prasad, K. Sankaran and Nandan Prabhu
The purpose of this paper is to examine the empirical relationship between gray directors (non-executive non-independent directors) and executive compensation among companies…
Abstract
Purpose
The purpose of this paper is to examine the empirical relationship between gray directors (non-executive non-independent directors) and executive compensation among companies listed in India’s National Stock Exchange (NSE). The paper also examines the possible interplay of relationships between controlling shareholder duality (controlling shareholder being the CEO), ownership category and executive compensation.
Design/methodology/approach
A sample of 438 firms listed in the NSE of India was studied using data spanning five financial years, 2012–2013 to 2016–2017.
Findings
Empirical evidence suggests that there is a positive association between the proportion of gray directors on the board and executive compensation. The sensitivity of executive compensation to gray directors is found to be higher among family controlled firms. This research has also found that CEOs who belong to controlling shareholder groups received higher pay than professional CEOs. The authors conjecture that these results suggest cronyism and may contribute to lower levels of corporate governance practices in the country.
Research limitations/implications
The hybrid board structure, which India has adopted with the desire to bring the best of Anglo Saxon and Japanese board philosophies, has paradoxically led to self-serving boards. Exploration of alternative thinking to bring about changes in the regulatory framework is, therefore, necessary.
Originality/value
Serious problems are identified with the philosophy behind board composition mandated by Listing Requirements for Indian firms with empirical evidence showing how the existing rules generate cronyism and unfairness to minority shareholders.
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Shashi Lata Yadav, Babitha Vishwanath and Debasis Patnaik
Corporate social responsibility (CSR) in India includes education, environment, healthcare and rural development. In post-liberalized India, the healthcare sector (services and…
Abstract
Purpose
Corporate social responsibility (CSR) in India includes education, environment, healthcare and rural development. In post-liberalized India, the healthcare sector (services and facilities) has grown in leaps and bounds over last two decades. The purpose of this paper is to reveal and explain the CSR profile of select healthcare companies of India and reveal gaps and scope of healthcare activities with a special consideration towards maternal health.
Design/methodology/approach
Primary data are collected from seven listed companies of Goa state which were willing to participate in the study. In total, 67 companies constituting the Healthcare Sector Index of Standard & Poor of the Bombay Stock Exchange are considered as secondary source. Data of 59 companies that come within the threshold of Companies Act, 2013, are studied. CSR guidelines (with a turnover of Rs 10bn or a market capitalization of Rs 5bn or a net profit of Rs 50m) are taken as an initial frame of reference.
Findings
In total, 89.83 per cent of these companies have initiatives related to health care. Structured companies (contribute to the company’s overall mission and goals) with CSR policy have committee size varying from three to five directors with an independent director. During 2016–2017, they were mandated to spend Rs 4.2613bn out of which only 74.59 per cent was spent. Geographical spread of CSR initiatives is skewed, with majority of companies focussing on the states of Maharashtra and Gujarat, whereas the states of Odisha and North-Eastern being neglected. The focus areas of CSR are education, healthcare and rural development. The variation of MMR in different states of India is an indicator for corporate as to which state needs more attention. The corporate sector in India needs to focus on SDG3 target of MMR and move towards a newer dimension and direction.
Originality/value
The originality of this paper lies in the recognition of the initiative of Government of India of weaning out CSR activities outside the purview of business sense and towards instilling a social sense in company behaviour. This is a dimensional and directional change in the evolution of CSR practices in companies and countries. To this end, 59 healthcare sector companies under the threshold of Companies Act 2013 were studied and results were outlined.
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Rogers Rugeiyamu and Ajali Mustafa Nguyahambi
The world is experiencing democratic backsliding such that the situation is down back to 1986. This has resulted in the global shrinking of civic space for civil society…
Abstract
Purpose
The world is experiencing democratic backsliding such that the situation is down back to 1986. This has resulted in the global shrinking of civic space for civil society organizations (CSOs). NGOs engaging in advocacy activities are seen to be among the CSOs affected. Using four NGOs cases from Tanzania, the study contributes to the civic space debate by uncovering how advocacy NGOs become resilient.
Design/methodology/approach
The study is anchored in interpretivism and a cross-sectional case study design, following a qualitative approach path. Data were collected through interviews and a documentary review.
Findings
Results show that several strategies such as complying, building community back-up, collaboration, strategic litigation, using digital media and changing the scope are applied. However, strategies face obstacles including scope limitations, expected democratic roles, high cost, changes in the scope and being outsmarted by the government, and hence their effectiveness is questionable.
Research limitations/implications
This study focused on advocacy NGOs. More studies can be conducted for other advocacy-related CSOs on how they become resilient.
Practical implications
While NGOs are allowed to exist in the country, their freedom continue to be curtailed. Even the effectiveness of resiliency becomes temporary and depends on the political will of the existing regime.
Originality/value
Tanzania NGOs have to build strong bonds with citizens, expand the scope of strategies and use deliberative democratic principles to educate the government to change laws and tolerate plural political culture. Also, NGOs in other countries with confined civic space can apply the same.
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Syed Abdulla Al Mamun and Alima Aktar
The purpose of this study is to investigate the intellectual capital disclosure (ICD) practices of financial institutions in an emerging economy of Bangladesh.
Abstract
Purpose
The purpose of this study is to investigate the intellectual capital disclosure (ICD) practices of financial institutions in an emerging economy of Bangladesh.
Design/methodology/approach
Based on 93 items of intellectual capital categorized into internal capital, external capital and human capital, ICD index is developed for 53 financial institutions listed in Dhaka Stock Exchange. This study uses descriptive statistics to analyze ICD practices, and parametric and non-parametric tests to analyze the variation of ICD practices in terms of different categories as well as in terms of different sectors.
Findings
Results indicate that more than 70% of ICD items are generally not disclosed by financial institutions in Bangladesh. The highest of 36% of external capital disclosure items are disclosed, whereas the lowest of 18% of human resource capital elements are disclosed. Furthermore, results find the significant variability of ICD practices in terms of different intellectual capital categories and in between banking companies and non-banking financial institutions.
Practical implications
Findings have critical implications for managers, policymakers and regulators for setting appropriate strategies and regulations for improving the level of ICD, which, in turn, may reduce the information asymmetry problems of financial institutions as well.
Originality/value
In-depth analysis about variability of ICD practices creates value in the ICD literature by highlighting strategic priority of financial institutions to disclose information about the strategic resources in unique emerging economic settings such as Bangladesh.
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Kingstone Nyakurukwa and Yudhvir Seetharam
Literature shows that corporate governance matters more in countries with weak legal environments. The purpose of this study is to synthesise and map research that has been done…
Abstract
Purpose
Literature shows that corporate governance matters more in countries with weak legal environments. The purpose of this study is to synthesise and map research that has been done so far on corporate governance in Zimbabwe, a country that has been characterised by weak legal systems and lack of respect for property rights.
Design/methodology/approach
A systematic review and bibliometric analysis of 20 articles indexed in the Scopus and Web of Science databases was carried out to establish the trends and evolution of corporate governance in Zimbabwe.
Findings
The articles reviewed looked at the association between corporate governance attributes and firm performance, disclosure of information and economic growth. The proportion of independent directors was found to significantly affect firm performance and information disclosure in most of the studies. The majority of the studies used descriptive statistics and simple regression in their methodologies. The stakeholder theory is the most used in the studies reviewed.
Originality/value
The study highlights the need to strengthen the state infrastructure that enhances corporate governance at the firm level. When state-owned companies adhere to good corporate governance practices, this can cascade to the private sector.
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Günter Prockl, Aseem Kinra and Herbert Kotzab
Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that…
Abstract
Purpose
Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that container carriers operate differently and follow different paths in their internationalisation development. Additionally, the degree of internationalisation, measured on the basis of sea-oriented operations, differs from that measured according to land-oriented front-end marketing and sales activities. The purpose of this study is to further examine the internationalisation patterns of shipping lines.
Design/methodology/approach
An examination of the front-end activities and the structures of leading container-shipping companies is conducted. The sales office networks of the sector’s 20 largest companies worldwide (by twenty-foot equivalent unit capacity) are analysed as key indicators. The numbers of sales offices are measured by analysing the websites of the sample (20 companies), as well as annual reports and other publicly available data sources.
Findings
The findings show that not all shipping companies are international, by virtue of the industry. While it is difficult to observe differences in the overall patterns of the sales networks at a macro level, some companies differ in their activities. The data set also shows that market share and total capacity are not necessarily good indicators of a carrier’s worldwide presence.
Research limitations/implications
This research is based on secondary data. Other important transactional and market-oriented considerations should be examined before drawing conclusions about the internationalisation of container-shipping companies and of the industry.
Originality/value
This paper contributes to the relevant existing research, particularly by adding its view on the demand-oriented criteria as suggested by Dunning and Lundan (2008).
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Clara Benevolo, Lara Penco and Teresina Torre
The purpose of this study is to build a proposal for an integrated analysis / evaluation / decision / implementation framework to suit entrepreneurial companies intending to…
Abstract
Purpose
The purpose of this study is to build a proposal for an integrated analysis / evaluation / decision / implementation framework to suit entrepreneurial companies intending to redefine their strategic behaviours and their competitive schemes in the global environment.
Design/methodology/approach
A conceptual approach, based on theoretical perspectives relating to globalisation-based management and decision-making of entrepreneurs, is adopted.
Findings
The paper presents a conceptual framework useful for supporting entrepreneurial decisions for global strategies, drawing on an integrated analysis of external environment and internal components, with a specific focus on the entrepreneur's characteristics in terms of cognitive and emotional profiles. It is suggested to adopt a logical process aimed at identifying which strategic levers are available for entrepreneurial players to implement their strategies.
Practical implications
Entrepreneurial decision-making may benefit from an integrated framework which helps entrepreneurs, who aim to compete in the global marketplace, to explore and exploit all the key factors useful to defining their strategies.
Originality/value
There is a lack of decision-making frameworks that put the entrepreneur at the centre and, at the same time, present a potential balance between the external factors (globalisation drivers and local opportunities) and the resources and competences required to manage risks and difficulties of the global environment (internal factors). The originality of the proposed framework consists in filling this gap. Moreover, this framework can be useful for “re-born global” or “global-again” firms that are currently a neglected typology of studied firms.
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