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1 – 8 of 8Mabrouka Ben Mohamed, Emna Klibi and Salma Damak
This study aims to examine the relationship between corporate social responsibility (CSR) award and sustainability assurance levels for the French CAC 40 companies.
Abstract
Purpose
This study aims to examine the relationship between corporate social responsibility (CSR) award and sustainability assurance levels for the French CAC 40 companies.
Design/methodology/approach
A sample of 57 French companies in the CAC 40 index corresponding to 448 observations was analyzed between 2008 and 2020 using an ordinal regression.
Findings
The main results conclude that the inclusion in the Dow Jones Sustainability Index World, the CSR award and the introduction of the Grenelle 2 law have a significant influence on sustainability assurance levels. However, incentive compensation does not appear to be relevant to explain sustainability assurance levels.
Research limitations/implications
The present study focuses on a sample, limited to companies belonging to the CAC 40 index. To enhance the understanding of sustainability assurance levels, this research may include other global sustainability indices, such as the MSCI World and the FTSE4Good World, in the CSR awards.
Practical implications
This study could be useful for audit practitioners, leading them to reconsider their evaluation methods and take into account CSR incentives for a more objective analysis. Regulators should investigate the current CSR issues to improve CSR disclosure standards. Finally, these findings could motivate other researchers to expand the scope of the research to diverse contexts.
Originality/value
This study helps fill the gap existing in sustainability assurance literature by highlighting the relationship between CSR rewards and sustainability assurance levels.
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Paola Ferretti, Cristina Gonnella and Pierluigi Martino
Drawing insights from institutional theory, this paper aims to examine whether and to what extent banks have reconfigured their management control systems (MCSs) in response to…
Abstract
Purpose
Drawing insights from institutional theory, this paper aims to examine whether and to what extent banks have reconfigured their management control systems (MCSs) in response to growing institutional pressures towards sustainability, understood as environmental, social and governance (ESG) issues.
Design/methodology/approach
The authors conducted an exploratory study at the three largest Italian banking groups to shed light on changes made in MCSs to account for ESG issues. The analysis is based on 12 semi-structured interviews with managers from the sustainability and controls areas, as well as from other relevant operational areas particularly concerned with the integration process of ESG issues. Additionally, secondary data sources were used. The Malmi and Brown (2008) MCS framework, consisting of a package of five types of formal and informal control mechanisms, was used to structure and analyse the empirical data.
Findings
The examined banks widely implemented numerous changes to their MCSs as a response to the heightened sustainability pressures from regulatory bodies and stakeholders. In particular, with the exception of action planning, the results show an extensive integration of ESG issues into the five control mechanisms of Malmi and Brown’s framework, namely, long-term planning, cybernetic, reward/compensation, administrative and cultural controls.
Practical implications
By identifying the approaches banks followed in reconfiguring traditional MCSs, this research sheds light on how adequate MCSs can promote banks’ “sustainable behaviours”. The results can, thus, contribute to defining best practices on how MCSs can be redesigned to support the integration of ESG issues into the banks’ way of doing business.
Originality/value
Overall, the findings support the theoretical assertion that institutional pressures influence the design of banks’ MCSs, and that both formal and informal controls are necessary to ensure a real engagement towards sustainability. More specifically, this study reveals that MCSs, by encompassing both formal and informal controls, are central to enabling banks to appropriately understand, plan and control the transition towards business models fully oriented to the integration of ESG issues. Thereby, this allows banks to effectively respond to the increased stakeholder demands around ESG concerns.
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Cemil Kuzey, Amal Hamrouni, Ali Uyar and Abdullah S. Karaman
This study aims to investigate whether social reputation via corporate social responsibility (CSR) awarding facilitates access to debt and decreases the cost of debt and whether…
Abstract
Purpose
This study aims to investigate whether social reputation via corporate social responsibility (CSR) awarding facilitates access to debt and decreases the cost of debt and whether governance mechanisms moderate this relationship.
Design/methodology/approach
The sample covers the period between 2002 and 2021, during which CSR award data were available in the Thomson Reuters Eikon/Refinitiv database. The empirical models are based on country, industry and year fixed-effects regression.
Findings
While the main findings produced an insignificant result for access to debt, they indicated strong evidence for the positive relationship between CSR awarding and the cost of debt. Moreover, the moderating effect highlights that while the sustainability committee helps CSR-awarded companies access debt more easily, independent directors help firms decrease the cost of debt via CSR awarding. Furthermore, the results differ between the US and the non-US samples, earlier and recent periods, high- and low-leverage firms and large and small firms.
Originality/value
For the first time, to the best of the authors’ knowledge, the authors assess whether social reputation via CSR awarding facilitates access to debt and decreases the cost of debt in an international and cross-industry sample. Little is known about the effect of social reputation on loan contracting, although social reputation conveys broader information that goes beyond the firm’s internal (performance) and external (reporting) CSR practices. The authors also draw attention to the differing roles of distinct governance mechanisms in leveraging social reputation for loan contracting.
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Osama Atayah, Hazem Marashdeh and Allam Hamdan
This study aims to examines both accrual and real-based earnings management (EM) behavior of listed corporations in tax-free countries during different economic situations. It…
Abstract
Purpose
This study aims to examines both accrual and real-based earnings management (EM) behavior of listed corporations in tax-free countries during different economic situations. It also addresses the link between firm- and country-level determinants of accrual and real-based EM and explores economic conditions' influence on these determinants.
Design/methodology/approach
The study examines 1,608 firm-years, covers sixteen years (2004–2019), clustered into three periods according to the global financial crisis (GFC): four years prior (2004–2007), two years during (2008–2009), and ten years post the GFC (2010–2019). We employ the modified Jones model (performance-matched) developed by Kothari et al. (2005) to measure the accrual-based EM (positive and negative discretionary accrual EM) and the three levels model for Dechow et al. (1998) to measure the real-based EM (cash flow from operating, discretionary expenses and abnormal production cost).
Findings
The study finds a significant increase in EM practices in the listed corporations in tax-free countries during the economic downturn. These corporations are found to understate their earnings during the economic stress period. Simultaneously, the firm-level determinants of EM practices were at the same level of significance during different economic conditions in accrual-based EM. In contrast, the country-level EM determinants vary based on the economic conditions.
Originality/value
Financial reports' users gain a deep understanding of the quality of financial reports in the context of tax-free country. And, the study outcomes inspire policymakers to develop relevant legislation to mitigate financial reports' risk and adequately protect the financial reports' users.
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Myriam Ertz, Shashi Kashav, Tian Zeng and Shouheng Sun
Traditionally, life cycle assessment (LCA) has focused on environmental aspects, but integrating social aspects in LCA has gained traction among scholars and practitioners. This…
Abstract
Purpose
Traditionally, life cycle assessment (LCA) has focused on environmental aspects, but integrating social aspects in LCA has gained traction among scholars and practitioners. This study aims to review key social life cycle assessment (SLCA) themes, namely, drivers and barriers of SLCA implementation, methodology and measurement metrics, classification of initiatives to improve SLCA and customer perspectives in SLCA.
Design/methodology/approach
A total of 148 scientific papers extracted from the Web of Science database were used and analyzed using bibliometric and content analysis.
Findings
The findings suggest that the existing research ignores several aspects of SCLA, which impedes positive growth in topical scholarship, and the study proposes a classification of SLCA research paths to enrich future research. This study contributes positively to SLCA by further developing this area, and as such, this research is a primer to gain deeper knowledge about the state-of-the-art in SLCA as well as to foresee its future scope and challenges.
Originality/value
The study provides an up-to-date review of extant research pertaining to SLCA.
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Muhammad Irfan Khan and Athar Iqbal
This is an acceptable fact that firms put efforts to maximize shareholders wealth but there is growing demand that firms are also accountable to various stakeholders associated…
Abstract
This is an acceptable fact that firms put efforts to maximize shareholders wealth but there is growing demand that firms are also accountable to various stakeholders associated directly or indirectly with the firms' business activities. Investors now evaluate firm's performance not only from financial perspective but also consider environment, social, and governance (ESG) factors when taking investment decision. ESG is not visible in firm's annual financial reports but investors do not deny its significance when valuing firms. There are increasing interests in ESG by communities, professionals, and government bodies, and all are interested to keep it as part of firms' regular activity and have to relate it with firm performance and efficiency that affects firm value. Still, there are difficulties in integration of ESG factors into investment decision-making, but efforts are being put to overcome all the issues. Firms which consider ESG are in a good position to achieve their long-term financial goals as they are likely to attract capital, lower borrowing costs, mitigate risks, and maximize shareholders value.
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Luigi Nasta, Barbara Sveva Magnanelli and Mirella Ciaburri
Based on stakeholder, agency and institutional theory, this study aims to examine the role of institutional ownership in the relationship between environmental, social and…
Abstract
Purpose
Based on stakeholder, agency and institutional theory, this study aims to examine the role of institutional ownership in the relationship between environmental, social and governance practices and CEO compensation.
Design/methodology/approach
Utilizing a fixed-effect panel regression analysis, this research utilized a panel data approach, analyzing data spanning from 2014 to 2021, focusing on US companies listed on the S&P500 stock market index. The dataset encompassed 219 companies, leading to a total of 1,533 observations.
Findings
The analysis identified that environmental scores significantly impact CEO equity-linked compensation, unlike social and governance scores. Additionally, it was found that institutional ownership acts as a moderating factor in the relationship between the environmental score and CEO equity-linked compensation, as well as the association between the social score and CEO equity-linked compensation. Interestingly, the direction of these moderating effects varied between the two relationships, suggesting a nuanced role of institutional ownership.
Originality/value
This research makes a unique contribution to the field of corporate governance by exploring the relatively understudied area of institutional ownership's influence on the ESG practices–CEO compensation nexus.
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Mumtaz Ali, Ahmed Samour, Foday Joof and Turgut Tursoy
This study aims to assess how real income, oil prices and gold prices affect housing prices in China from 2010 to 2021.
Abstract
Purpose
This study aims to assess how real income, oil prices and gold prices affect housing prices in China from 2010 to 2021.
Design/methodology/approach
This study uses a novel bootstrap autoregressive distributed lag (ARDL) testing to empirically analyze the short and long links among the tested variables.
Findings
The ARDL estimations demonstrate a positive impact of oil price shocks and real income on housing market prices in both the phrases of the short and long run. Furthermore, the results reveal that gold price shocks negatively affect housing prices both in the short and long run. The result can be attributed to China’s housing market and advanced infrastructure, resulting in a drop in housing prices as gold prices increase. Additionally, the prediction of housing market prices will provide a base and direction for housing market investors to forecast housing prices and avoid losses.
Originality/value
To the best of the authors’ knowledge, this is the first attempt to analyze the effect of gold price shocks on housing market prices in China.
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