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The chapter aims to evaluate the efficacy of stakeholder participation in the solid waste management system of Mauritius in view of providing a possible mechanism to attain the goals of a sustainable waste management framework.

The study employs qualitative indicators, namely, User Inclusivity and Producer Inclusivity of the Wasteaware Benchmark Indicators. Secondary data are used to conduct a critical and comprehensive analysis of the sub-indicators falling under each of the two main indicators to determine the overall compliance level with respect to stakeholder engagement of the waste management sector of Mauritius.

The results of the study show a LOW/MEDIUM compliance level for both User Inclusivity and Provider Inclusivity indicators, which indicates that improvement is required in the stakeholder engagement mechanism in Mauritius. The main weaknesses identified comprise of lack of an adequate legal framework with clear definition of waste types with regards to segregation, especially for non-hazardous wastes, low efficiency of sustainable waste management awareness campaigns and lack of inclusion of the informal sector. The main strengths identified consist of a proper bidding mechanism in place and a good level of equity in the provision of waste management services with respect to comingled waste collection. Suggested improvement areas include a revamping of the existing legal framework related to waste management to cater for higher inclusivity of all stakeholders together with including sustainable waste management topics in the formal education curriculum.

The User Inclusivity and Producer Inclusivity indicators were previously applied only to cities to measure the level of stakeholder participation, but this study has demonstrated that these indicators can also be adopted on a nation-wide level to evaluate stakeholder engagement. The use of these indicators together with secondary data presents a less time-consuming method to assess stakeholder participation in the waste sector, which can be particularly useful for Small Island Developing States.

The unique characteristic of Islamic bank leads in governance and disclosure. Using stakeholder, signaling, and market discipline theory, governance and adequate disclosure may increase bank soundness. This study aims to investigate the relationship of sharia disclosure and Sharia Supervisory Board in influencing Islamic bank soundness in the different regulatory framework of the country. Using purposive sampling, the research covered 84 Islamic banks in 16 countries during the period 2013–2015 with lag data of Islamic bank soundness. The result shows sharia disclosure influences on Islamic bank soundness for management efficiency, capital adequacy ratio, asset quality, and liquidity. The results also show that sharia disclosure mediates the indirect effect of SSB on Islamic bank soundness. The regulatory framework (sharia accounting standard and SSB regulation) shows moderating effect of regulation framework proved on the association of sharia disclosure with management efficiency, capital, and liquidity. The effect is indirectly depending on the regulatory framework for proxy management efficiency, capital, and liquidity. The implication of the research suggests that sharia disclosure could increase the market discipline mechanism of Islamic bank stream. The Islamic bank can increase the transparency using sharia disclosure as a branding for increasing public trust, even though in the deficient Islamic bank regulation countries.

Companies are often accused of using sustainability disclosures as public relations tools to manage financial and non-financial stakeholders' impressions. The purpose of our study was firstly to determine how comprehensive the human rights disclosures of a sample of large international companies were and secondly, whether different narrative styles are associated with levels of disclosure to manage readers' impressions about the company. We analysed the public human rights disclosures for 154 large, international companies obtained from the UN Guiding Principles Reporting website. On average, companies complied with only one-third of the UN Guiding Principles Reporting Framework criteria. Communication about policies has the highest compliance, whilst communication about determining which human rights aspects are salient to the company, remedies for transgressions and stakeholder engagement have the lowest disclosure. When we split the sample between high disclosure and low disclosure companies, we found that the readability of the human rights disclosures is exceptionally low and even more so for low disclosure companies. Low disclosure companies used words implying Satisfaction significantly more than high disclosure companies, which provides some support for suspecting that low disclosure companies practise impression management by only presenting a ‘rosy picture’, as well as obfuscation via low readability. We add to the literature on impression management by large corporations in their sustainability reporting, and specifically human rights disclosures, by revealing how the interplay of low disclosure, low readability and overuse of words signalling Satisfaction contributes to impression management, rather than sincere attempts at accountability to all stakeholders.

The study aims at reviewing a synthesis of disclosure, transparency, and International Financial Reporting Standards (IFRS) implementation in an attempt to provide directions for future research. Prior research overwhelmingly supports that the IFRS adoption or effective implementation of IFRS will enhance high-quality financial reporting, transparency, enhance the country’s investment environment, and foreign direct investment (FDI) (Dayanandan, Donker, Ivanof, & Karahan, 2016; Gláserová, 2013; Muniandy & Ali, 2012). However, some researchers provide conflicting evidence that developing countries implementing IFRS are probably not going to encounter higher FDI inflows (Gheorghe, 2009; Lasmin, 2012). It has also been argued that the IFRS adoption decreases the management earnings in countries with high levels of financial disclosure. In general, the study indicates that the adoption of IFRS has improved the financial reporting quality. The common law countries have strong rules to protect investors, strict legal enforcement, and high levels of transparency of financial information. From the extensive structured review of literature using the Scopus database tool, the study reviewed 105 articles, and in particular, the topic-related 94 articles were analysed. All 94 articles were retrieved from a range of 59 journals. Most of the articles (77 of 94) were published 2010–2018. The top five journals based on the citations are Journal of Accounting Research (187 citations), Abacus (125 citations), European Accounting Review (107 citations), Journal of Accounting and Economics (78 citations), and Accounting and Business Research (66 citations). The most-cited authors are Daske, Hail, Leuz, and Verdi (2013); Daske and Gebhardt (2006); and Brüggemann, Hitz, and Sellhorn (2013). Surprisingly, 65 of 94 articles did not utilise the theory. In particular, four theories have been used frequently: agency theory (15), economic theory (5), signalling theory (2), and accounting theory (2). The study calls for future research on the theoretical implications and policy-related research on disclosure and transparency which may inform the local and international standard setters.

Prior tax compliance research has largely ignored low-income individual taxpayers, as they have historically been viewed as having an immaterial impact on Federal tax revenues. However, the earned income tax credit (EITC) program has altered the Federal tax revenue landscape in this regard. The Internal Revenue Service (IRS) investigated the magnitude of EITC tax overpayments for tax year 1999 and concluded that between 27 and 31% of EITC filings were overstated, resulting in over-payments of between $8.5 and $9.9 billion (IRS, 2002). These excessive payments represented about 0.5% of total Federal revenues and 2.8% of the total tax gap. Thus, to the extent that low-income individual taxpayers intentionally under-report their incomes in order to receive higher EITC’s, the Federal budget is noticeably affected.

This study extends and complements extant tax research by examining the compliance intentions of low-income individual taxpayers. Relying on the theory of planned behavior, we examine the extent to which perceived tax equity (vertical, horizontal and exchange), normative expectations, and legal sanctions affect tax compliance intentions. Consistent with the hypotheses, the results indicate a significant positive relationship between compliance intentions and: (1) equity perceptions of the tax system; (2) normative expectations of compliance; and (3) penalty magnitude. Additionally, the findings suggest two-way interactions between penalty magnitude and exchange equity, and penalty magnitude and normative expectations. Research results reported herein hold important policy implications related to the Federal government’s efforts to reduce tax cheating and increase compliance among low-income individual taxpayers.

Using data from 236 Mexican manufacturing facilities, we examine the relationship between management control systems and structures and environmental compliance and we test the applicability of management control theory in Mexican industry. We report that success in compliance with environmental regulations is significantly associated with degree of management commitment, planning, belief systems, measurement systems, and rewards. This study contributes to the management control literature by empirically testing the efficacy of management control systems and structures in Mexican industry. It contributes evidence about the implementation of environmental strategies in organizations. Finally, by focusing our analysis on Mexican companies, it gives us a rare view of management control and strategy implementation in a developing economy.

Purpose of this paper – This study investigates compliance with the corporate governance code in an African developing economy (Mauritius).

Methodology/approach – We examine the annual reports of 41 listed companies to assess the extent of compliance with the code and to analyze the wording of compliance statements. We also carry out in-depth semi-structured interviews with selected company directors to understand the reasons for compliance (or non-compliance).

Findings – Initial findings indicate a reasonable level of compliance with the more visible requirements of the code but noteworthy non-compliance also emerges, particularly in relation to the low number of company boards being chaired by independent directors, to uncertainties on the actual operation of board committees, and to the widespread non-disclosure of directors’ remuneration. Furthermore, compliance statements were found to be vague, ambiguous, or even inconsistent with the extent of compliance disclosed in the reports. We believe these are indications that many of the companies are adhering selectively with the code to project an image of symbolic compliance. Our in-depth follow-up interviews with directors largely confirm this behaviour of selective compliance.

Research implications – We suggest that the pursuit of legitimacy as an operational resource – rather than efficiency-led rationales – emerges as a potential theoretical explanation for the adoption of the corporate governance code in Mauritius.

Originality /value of paper – We bring evidence on how the corporate governance code is being understood and rationalized in a developing economy. We rely on a combination of annual report disclosures, compliance statements, and interview data to investigate corporate governance compliance.

The manner in which publicly traded companies’ management teams handle their firm’s free cash flows (FCF) has been an issue for many decades, because it is difficult to determine whether these management teams work for their own benefit or for that of their shareholders. Recent financial scandals have heightened mistrust of management. This mistrust, in turn, may have increased the pressure to reduce the portion of FCF left under management’s control. Boards of directors control dividend payout decisions, thus determining the portion of FCF available to corporate management. This paper examines whether the 2002 legal response to corporate financial reporting scandals, which came in the form of many new initiatives and requirements imposed by the Sarbanes–Oxley Act of 2002 (SOX) on all publicly traded firms, was relevant to dividend payouts. This question is investigated by noting that the impact of these new requirements differed among firms. Some firms had already introduced the use of independent directors and fully independent committees prior to SOX making them compulsory in 2002. This paper examines whether these “pre-adopters” experienced less change in their dividend payout policies than those firms that were forced to change the composition of their board and committees.

This investigation examines the effect on dividend payouts for listed firms attributable to the SOX and concurrent changes in stock exchange regulations that compelled increased use of independent directors and fully independent committees. To study the impact of SOX and the associated, required, changes in the composition of boards of directors for many firms, the difference-in-differences methodology is employed to overcome the endogeneity concerns that have consistently challenged prior governance studies. This was accomplished by examining the effects on dividend payouts associated with the exogenously forced addition of independent directors to the boards of publicly listed firms. The results reveal that there is a significant positive relationship between firms that were compelled by law to change their boards and increases in average changes in dividend payouts and percentage changes in dividends paid, when compared to firms that had pre-adopted the Sarbanes–Oxley corporate board composition requirements. A further exploratory analysis showed that the same significant positive relationship is detected for increases in average changes in total dollars distributed, where stock repurchase dollars are combined with dividend payouts. These findings imply that these board composition changes led to decisions that increased dividend payouts in percentage terms, as well as dividend payouts and total dollars distributed in aggregate dollar amount terms.

Given the continued growth in the globalization of production, working conditions in global supply chains have come under increased scrutiny. Although there has been much debate about corporate codes of conduct and monitoring procedures, the question of how buyers influence their suppliers’ working conditions at the factory level remains poorly understood. Using a unique data set based on monitoring by the International Labour Organization (ILO) and original survey data collected in Cambodia's garment sector, this study shows that the main channel linking buyers and supplier compliance performance is the nature of their relationships. Market-based relationships mediated through sourcing agents are systematically associated with poorer compliance performance. In particular, when a reputation-conscious buyer is sourcing from a factory, it has a positive effect on compliance, and their presence appears to condition relationship variables. Deterrence and learning channels are not supported by the evidence. The findings signal the need to pay more attention to the nature of buyer–supplier relationships if we seek to improve labor standard compliance. Market-based relationships motivate neither buyers nor suppliers to invest their time and resources to tackle the root causes of poor working conditions. Rather, the results here indicate the need to develop collaborative relationships marked by open dialogue, trust, and commitment, which in turn help to foster an environment supportive of continuous improvement in working conditions.

This chapter investigates the role of macro corporate governance (legal and extra legal institutions) in determining the extent of ultimate excess control (i.e., the ownership-controls rights divergence of the ultimate owner) using a large sample of Asian and European companies. We find that the level of excess control is lower in countries with (1) good investor protection and better enforcement of information disclosure and (2) fairer competition laws, higher newspaper diffusion, and more regulated insider trading. Controlling for institutions subsumes the effect of firm-level determinants, as only leverage appears to be negatively and significantly related to excess control.