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1 – 10 of 81Hafez Abdo, Freeman Brobbey Owusu and Musa Mangena
The purpose of this study is to provide a harmonisation framework for the diverse accounting practices by extractive industries.
Abstract
Purpose
The purpose of this study is to provide a harmonisation framework for the diverse accounting practices by extractive industries.
Design/methodology/approach
The study takes a three-stage approach. The first involves a comprehensive literature review of the historical evolution of accounting regulations by extractive industries. The second involves constructing an accounting practice index for extractive industries. The third involves constructing a harmonisation framework.
Findings
The accounting practice index provides empirical evidence of the wide diversity of accounting practices by extractive industries. Analysis of the literature review addresses the several attempts by accounting and regulatory bodies to standardise the diverse practices of accounting by extractive industries and reasons for the lack of successful standardisations. The authors extract lessons from these previous attempts and propose a harmonisation framework.
Research limitations/implications
The proposed harmonisation framework can be used to align together the diverse accounting practices by extractive industries and enhance comparability and consistency of accounting figures and statements produced by these industries. Harmonising the diverse accounting practices is crucial for investment decision-making.
Originality/value
The harmonisation framework is the first of its kind that could enhance the comparability of accounts of extractive industries’ firms and be used to harmonise diverse accounting practices by other industries.
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This paper examine whether social performance moderates the linkage between financial risk and financial performance in microfinance institutions (MFIs). The study focuses on the…
Abstract
Purpose
This paper examine whether social performance moderates the linkage between financial risk and financial performance in microfinance institutions (MFIs). The study focuses on the financial self-sufficiency and long-term sustainability of MFIs.
Design/methodology/approach
The empirical study uses unbalanced panel data of 2,694 worldwide MFIs from 2009 to 2019. In the first step, the study inspects the impact of social performance and risk on financial performance, proxied as return on assets and operational self-sufficiency. In the second stage, moderated hierarchical regression is applied to test whether social performance moderates the relationship between risk and financial performance. Lastly, the study confirms the significant moderation effects with slope tests.
Findings
The study detects robust evidence that financial risk is negatively related to financial performance. Though social performance exhibits a weak positive link with financial performance in silos, the evidence of its moderating effects on risk is mixed and significant. Social performance indicators, such as the borrower retention rate and female representation, positively moderate the relationship between financial risk and financial performance. The study documents that social performance impacts financial performance and operational self-sufficiency through risk moderation. Thus, social performance fosters the sustainability of these institutions over the long haul.
Research limitations/implications
The study is relevant to academics and theorists to consider the stakeholder approach in microfinancing. In the context of stakeholder theory, the study advances the specific social responsiveness process, namely stakeholder engagement.
Practical implications
The evidence that socially sensitive operations can curtail the adverse effects of credit risks on financial performance signify the required attention to social performance. For MFI managers and practitioners, the findings justify the business case for social performance. Stakeholder engagement, under the auspices of social responsiveness, acts as a risk-mitigation mechanism to eventually foster financial performance and self-sufficiency.
Social implications
The study motivates MFIs to do more for their stakeholders and society by highlighting the benefits of social performance.
Originality/value
The study reaffirms that social performance remains at the epicenter of the MFIs' mission and is an essential risk mitigation mechanism. The study adds to the extant literature on stakeholder engagement and its effects on MFIs.
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Zahid Iqbal and Zia-ur-Rehman Rao
To enhance the loan repayment performance of microfinance institutions (MFIs) in Pakistan, this study aims to analyze the direct impact of social capital and loan credit terms on…
Abstract
Purpose
To enhance the loan repayment performance of microfinance institutions (MFIs) in Pakistan, this study aims to analyze the direct impact of social capital and loan credit terms on loan repayment performance and microenterprises’ business performance while considering the mediating role of microenterprises’ business performance on the relationship between social capital, loan credit terms and loan repayment performance.
Design/methodology/approach
The analysis was conducted based on the data gathered via a questionnaire distributed to 316 microenterprises owners. The respondents were selected using the stratified sampling technique by dividing the target population into three influential groups of manufacturing, trading and services microenterprises. The reliability and validity of the constructs were established using (1) factor loading, (2) Cronbach’s alpha, (3) composite reliability, (4) average variance extracted, (5) the variance inflation factor, (6) the Fornell–Larcker criterion and (7) the heterotrait–monotrait ratio. The structural equation modeling technique was then applied, and the hypotheses were tested based on the structure model generated through bootstrapping by using partial least squares structural equation modeling.
Findings
The results confirm the direct impact of social capital and loan credit terms on microenterprises’ business performance and loan repayment performance. It also supports the mediating role of microenterprises’ business performance toward the relationship between social capital, loan credit terms and loan repayment performance while considering the direct impact of microenterprises’ business performance on loan repayment performance.
Originality/value
To date, the direct impact of social capital and loan credit terms on microenterprises’ business performance and loan repayment performance has been hardly investigated in the context of Pakistan. This study also examines the mediating role of microenterprises’ business performance toward social capital, loan credit terms and loan repayment performance. The findings will enable both MFIs and microenterprises to improve their business performance and loan repayment performance through enhanced social ties and the development of more flexible credit products that protect the borrowers’ interests and the interest of lenders.
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Przemysław G. Hensel and Agnieszka Kacprzak
Replication is a primary self-correction device in science. In this paper, we have two aims: to examine how and when the results of replications are used in management and…
Abstract
Purpose
Replication is a primary self-correction device in science. In this paper, we have two aims: to examine how and when the results of replications are used in management and organization research and to use the results of this examination to offer guidelines for improving the self-correction process.
Design/methodology/approach
Study 1 analyzes co-citation patterns for 135 original-replication pairs to assess the direct impact of replications, specifically examining how often and when a replication study is co-cited with its original. In Study 2, a similar design is employed to measure the indirect impact of replications by assessing how often and when a meta-analysis that includes a replication of the original study is co-cited with the original study.
Findings
Study 1 reveals, among other things, that a huge majority (92%) of sources that cite the original study fail to co-cite a replication study, thus calling into question the impact of replications in our field. Study 2 shows that the indirect impact of replications through meta-analyses is likewise minimal. However, our analyses also show that replications published in the same journal that carried the original study and authored by teams including the authors of the original study are more likely to be co-cited, and that articles in higher-ranking journals are more likely to co-cite replications.
Originality/value
We use our results to formulate recommendations that would streamline the self-correction process in management research at the author-, reviewer- and journal-level. Our recommendations would create incentives to make replication attempts more common, while also increasing the likelihood that these attempts are targeted at the most relevant original studies.
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Katarzyna Szarzec, Dawid Piątek and Bartosz Totleben
At the beginning of the 1990s, the Polish economic situation was extremely difficult: high public debt, shortages, high inflation and more than 8,000 state-owned enterprises…
Abstract
Research Background
At the beginning of the 1990s, the Polish economic situation was extremely difficult: high public debt, shortages, high inflation and more than 8,000 state-owned enterprises (SOEs) waiting to be restructured and/or privatised; along with a GDP per capita lower than in Ukraine.
Purpose of the Article
This chapter provides an overview of the Polish economic transition, and presents the results of this process, taking into account four aspects of the changes, i.e. stabilisation, liberalisation, institutional reforms and privatisation. Special attention is paid to intentionally unfinished privatisation and the still significant role of state-owned enterprises, which have remained important economic agents.
Methodology
Critical analyses were made of the literature dedicated to the economic transition and of the role and characteristics of state-owned enterprises. Empirical evidence is drawn from original datasets about the scale of SOEs in the contemporary economy and rotations in management and supervisory boards in Polish joint-stock companies.
Findings
Despite the unfavourable initial conditions, Poland soon emerged as a leader in economic growth, successfully stabilising, liberalising and privatising its economy. The institutional foundations of a democratic market economy were consistently built, and the applications for membership in the OECD, the EU and NATO were an important driver of institutional reforms. In terms of state institutions, political and economic freedom and quality of governance, Poland is more similar to the G7 countries than to the other post-socialist countries, though the need to maintain high-quality state institutions is still a priority. The significant share of SOE is regarded as a challenge of the Polish economy because state-owned enterprises are an object of rent-seeking by politicians and political parties.
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Kajenthiran Konalingam, Achchuthan Sivapalan, Umanakenan Ratnam and Sivanenthira Sivapiragasam
This study aims to investigate the complex relationship between corporate social responsibility (CSR) dimensions and customer loyalty. In particular, this study suggested an…
Abstract
Purpose
This study aims to investigate the complex relationship between corporate social responsibility (CSR) dimensions and customer loyalty. In particular, this study suggested an intervening process through customer perceived value, which makes banking customers more loyal.
Design/methodology/approach
Using a randomised sample of 261 respondents from the Northern Province of Sri Lanka, this study empirically investigates the role of CSR in enhancing customer value and loyalty. The collected data, the study model and hypotheses were assessed by partial least squares structural equation modelling.
Findings
According to the results, CSR practices that are both strategic and stakeholder-driven have a positive effect on customer loyalty in the banking industry. Further, customer perceived-value positively impacts customer loyalty. Besides, customer perceived-value mediates the association between CSR practices and customer loyalty.
Research limitations/implications
This study is limited to the banking industry. Thus, future studies can replicate the same research in different sectors like retail, tourism and hospitality, insurance and microcredit institutions, garments, textiles, etc.
Practical implications
This study suggests specific dimensions of CSR that need to be emphasised while the banking industry designs its loyalty programs.
Originality/value
The notion of customer value has been suggested as a mediating mechanism between diversified CSR perspectives and customer loyalty. Thus, this study proposes a comprehensive framework for enhancing customer loyalty to banks via CSR practices and customer value creation.
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Charilaos Mertzanis, Hazem Marashdeh and Sania Ashraf
This study aims to analyze the effect of female top management and female dominant owner on whether firms experience obstacles to obtaining external finance in 136 medium- and…
Abstract
Purpose
This study aims to analyze the effect of female top management and female dominant owner on whether firms experience obstacles to obtaining external finance in 136 medium- and low-income countries during 2006–2019. The analysis controls for the role of corporate governance and other firm-specific characteristics, as well as for the impact of national institutions.
Design/methodology/approach
The analysis elucidates the economic and non-economic factors driving female corporate leadership. Further, in order to capture the causal effect, the analysis uses univariate tests, multivariate regression analysis, disaggregation testing, sensitivity and endogeneity analysis to confirm the quality of the estimates. The analysis controls for various additional country-level factors.
Findings
The results show that female top management and female ownership are broadly significant determinants of firms' access to external finance, especially in relatively larger and more developed countries. The role of controlling shareholders is significant and mediates the gender effect. The latter appears more pronounced in smaller and medium-size firms, operating in the manufacturing and services sectors as well as in the countries with higher levels of development. This also varies with the countries' macroeconomic conditions and institutions governing gender development and equality as well as institutional governance effectiveness.
Practical implications
The results suggest that firms wishing to improve the firms' access to external finance should consider the role of gender in both top management and corporate ownership coupled with the effect of the specific characteristics of firms and the conditioning role of national institutions.
Originality/value
The study examines the gender effects of top management and dominant ownership for the external financing decisions of firms in low- and middle-income countries, which are underresearched. These gender effects are mitigated in various ways by the specific characteristics of firms and especially on national institutions.
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Tobias Winkler, Manuel Ostermeier and Alexander Hübner
Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or…
Abstract
Purpose
Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or donations). These options reduce waste after a surplus has emerged but do not prevent an emerging surplus in the first place. This paper aims to reveal how retailers can proactively prevent waste along the SC and why the options identified are impactful but, at the same time, often complex to implement.
Design/methodology/approach
The authors follow an exploratory approach for a nascent topic to obtain insights into measures taken in practice. Interviews with experts from retail build the main data source.
Findings
The authors identify and analyze 21 inbound, warehousing, distribution and store-related options applied in grocery retail. Despite the expected high overall impact on waste, prevention measures in inbound logistics and distribution and warehousing have not been intensively applied to date.
Practical implications
The authors provide a structured approach to mitigate waste within retailers' operations and categorize the types of barriers that need to be addressed.
Originality/value
This research provides a better understanding of prevention options in retail operations, which has not yet been empirically explored. Furthermore, this study conceptualizes prevention and reduction options and reveals implementation patterns.
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Abdollah Taki and Afsaneh Soroushyar
The purpose of this study is to investigate the moderating role of honesty-humility of financial managers on aggressive financial reporting behavior.
Abstract
Purpose
The purpose of this study is to investigate the moderating role of honesty-humility of financial managers on aggressive financial reporting behavior.
Design/methodology/approach
To test the research hypotheses, a scenario-based questionnaire taken from Brink et al. (2018) was used. Using a cross-sectional survey design, the authors collected primary data of 160 financial managers of firms in Iran using structured questionnaires. The research sample selected was based on Cohen et al.’s (2000) table. To test the research hypotheses, analysis of variance was used.
Findings
The results showed that increasing honesty-humility of financial managers decreases the impact of social pressure and risk appetite interaction on aggressive financial reporting. In addition, the results of further analysis showed that reducing the honesty-humility of financial managers increases the impact of risk appetite on aggressive financial reporting. Moreover, the results indicate that reducing the honesty-humility of financial managers increases the impact of social pressure on aggressive financial reporting.
Research limitations/implications
This finding provides significant evidence for auditor, managers and policymakers in Iran. Policymakers, auditor and company managers can emphasize compliance with the code of ethics, internal control and corporate governance to increase ethics and reduce negative economic consequences.
Originality/value
To the best of the authors’ knowledge, this is the first case in an emerging economy to survey the moderating role of honesty-humility of financial managers on aggressive financial reporting behavior. Also, this study contributes to understanding how factors at the individual, social and organizational level combine to influence financial managers’ aggressive financial reporting behavior.
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Kavita Kanyan and Shveta Singh
This study aims to examine the impact and contribution of priority and non-priority sectors, as well as their sub-sectors, on the gross non-performing assets of public, private…
Abstract
Purpose
This study aims to examine the impact and contribution of priority and non-priority sectors, as well as their sub-sectors, on the gross non-performing assets of public, private and foreign sector banks.
Design/methodology/approach
The Reserve Bank of India's database on the Indian economy is used to retrieve data over 13 years (2008–2021). Public sector (12), private sector (22) and foreign sector (44) banks are represented in the sample. Two-way ANOVA, multiple regression and panel regression statistical techniques are used in SPSS and EViews to examine the data. Further, the results are also validated by using robustness testing by applying the fully modified ordinary least square (FMOLS) and dynamic least square (DOLS) regression.
Findings
The results showed that, for private and foreign banks, the non-priority sector makes up the majority of the total gross non-performing assets, although both the priority and non-priority sectors are substantial for public sector banks. The largest contributors to the total gross non-performing assets in public, private and foreign banks are industries, agriculture and micro and small businesses. The FMOLS displays robustness results that are qualitatively similar to the baseline result.
Practical implications
Based on the study's findings about the patterns of non-performing assets originating from these specific industries, banks might improve the way in which these advanced loans are managed.
Originality/value
There has not been much research done on the subject of sub-sector-specific non-performing assets and how they affect total gross non-performing assets across the three sector banks. The study's primary focus will be on the issue of non-performing assets in the priority’s and non-priority’s sub-sectors, namely, agricultural, micro and small businesses, food credit, industries, services, retail loans and other priority and non-priority sectors.
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