Search results

Clawback provisions entitle shareholders to recover previously awarded incentive compensation after the discovery of accounting manipulation or misconduct. The author evaluates the impact of clawback enforcement heterogeneity on the horizon of executive compensation.

The author provides empirical tests to evaluate the impact of clawback adoption decisions. The author deals with the endogeneity of clawback adoption decisions through an instrumental variables strategy that exploits the transmission of governance choices within firms’ networks.

While the author finds that clawback adoption reduces the frequency of accounting manipulation, this reduction is accompanied by heterogeneous effects on the horizon of executive pay across firms. Clawback adopters with high director independence, high leverage, high managerial termination payments and low executive ownership tilt their compensation toward the short-term.

The results, robust to alternative specifications, suggest that clawbacks allow strong-enforcement firms to tilt compensation toward the short-term, offsetting some of the direct manipulation disincentives generated by the clawback. The stock market reacts positively to the adoption in firms with weak enforcement, suggesting that clawbacks significantly reduce the managers’ rent-extraction capacity.

Using a novel empirical and identification approach, the results suggest that clawbacks allow strong-enforcement firms to tilt compensation toward the short-term, offsetting some of the direct manipulation disincentives generated by the clawback.

This study aims to examine the association between related-party transactions (RPT) and tax avoidance. The study further investigates whether government ownership improves scrutiny of tax aggressiveness activities among Taiwanese group companies.

The authors used 16,061 firm-year observations derived from the Taiwan Economic Journal Database (TEJ) from 2005 to 2021. The authors applied GLS fixed-effect regression. Additional tests, such as a difference-in-difference examination, propensity score matching (PSM) analysis and other tests were performed to obtain more robust results.

The results show different consequences between eliminated and non-eliminated RPT toward tax avoidance. RPT enhances tax benefits aligned with the efficient contracting hypothesis. Under varying degrees of government control, this paper empirically reveals that government ownership has a role in mitigating tax avoidance. This implies that government control improves corporate governance by balancing opportunistic and efficiency-based tax avoidance.

This paper provides substantial practical implications since using the strategy of reducing taxes through RPT will result in greater tax savings at the business group level. Therefore, RPT is beneficial for enhancing business efficiency. Furthermore, government control increases corporate governance quality, which could lead to balancing tax aggressiveness activity.

Using a unique setting for RPT reporting in Taiwan, this paper divides RPT into eliminated and non-eliminated RPT. The findings offer significant insight for policymakers, investors and managers regarding the utilization of RPT to enhance efficiency in business groups. Additionally, this paper highlights the role of government control in preserving a harmonious balance in tax planning practices.

Clause 1 [General Provisions] contains the provisions that in many contracts are bundled together under the ‘miscellaneous’ or ‘other provisions’ heading and includes a list of definitions, some interpretation principles, rules on communication between the Parties, documents forming the Contract, assignment, confidentiality etc. But Clause 1 also contains other provisions, like the Employer's right to use documentation and other deliverables provided by the Contractor (in other contracts usually referred to as a license to use), and a substantive Sub-Clause on limitation of liability.

This study delves into the challenges obstructing the integration of blockchain-enabled smart contracts (BESC) in the construction industry. Its primary objective is to identify these barriers and propose a roadmap to streamline BESC adoption, thereby promoting sustainability and resilience in building engineering.

Employing a unique approach, this study combines the Technology-Organization-Environment-Social (TOE + S) framework with the IF-Delphi-HF-DEMATEL-IFISM methodology. Data is collected through surveys and expert interviews, enabling a comprehensive analysis of BESC implementation barriers.

The analysis reveals significant hindrances in the construction industry’s adoption of BESC. Key obstacles include economic and market conditions, insufficient awareness and education about blockchain technology among stakeholders, and limited digital technology integration in specific cultural and societal contexts. These findings shed light on the complexities faced by the industry in embracing blockchain solutions.

The research makes a significant contribution by combining the TOE + S framework with the IF-Delphi-HF-DEMATEL-IFISM methodology, resulting in a comprehensive roadmap to address barriers in implementing BESC in Sustainable Construction Projects. Noteworthy for its practicality, this roadmap provides valuable guidance for construction stakeholders. Its impact extends beyond the industry, influencing both academic discourse and practical applications.

Managing mega infrastructure projects (MIPs) is more complex because of time, size, social, environmental and financial implications. This study aims to address the management approaches, complexity and risk factors involved in MIPs. The study focuses on project success criteria and their individual effects on the success of MIPs.

To address the challenges and identify the most influencing factor for the success of MIPs, the study deployed a cross-sectional survey approach. Six hundred eighty-two usable samples were collected from the respondents to understand the impact of predetermined factors on the success of MIPs. The structural equation model and artificial neural network approach were used to derive the importance of factors affecting the success of MIPs.

The study's outcome confirms that all three influencing factors: feasibility studies, community engagements and contract selection, have a significant positive impact on the success of MIPs. Community engagement amongst all three has the most influential predictor for the success of MIPs.

The developed model will enable practitioners and policymakers from Indian construction companies and other emerging nations to concentrate on recognized risk reduction variables to enhance project success criteria and project management success, especially for MIPs.

Venture capital (VC) is an essential element in healthy entrepreneurial environments; therefore, many countries in developing entrepreneurial economies support the industry via direct or indirect government interventions. The purpose of this study is to examine through the example of the Hungarian market, whether direct or hybrid state involvement has contributed more to the growth of the invested enterprises. The findings are relevant in the design of government VC schemes and in the contracts mitigating the moral hazards inherent in government funding.

The basis of empirical research is a unique hand-collected database covering Hungarian government-backed VC (GVC) investments. Based on the financial data of investee firms, the authors investigate whether firms financed by hybrid VC involving market participants are able to outperform firms that receive pure public financing using panel regression.

Based on Hungarian evidence, hybrid VC-backed firms generated lower growth and employment than their purely government-backed peers. Both schemes showed meagre innovation activity. The conclusion is that because of the conflict of private and economic policy objectives in hybrid financing, the exposure of hybrid risk capital to moral hazard is higher than that of pure public financing. Private interests in hybrid funds can only improve investment efficiency if they are structured along the lines of market-based independent financial intermediation and the contracts imitate the ones existing amongst limited and general partners in private schemes.

The research covers the data of Hungarian government-backed firms by tracking the full range of 86 investments made in the purely government scheme and 340 firms that received funding in the hybrid scheme. The research focuses on two government initiatives, and the results are influenced by the specific regulation of the programs; therefore, the results cannot be generalized for all government agendas; they are indicative in the designs of the agendas.

There is a limited number of empirical studies investigating the impact of VC in developing markets, especially in the Central and Eastern Europe region. This firm-level research on the impact of public VC can help improve the effectiveness of development policies. By analysing the entirety of investments of a VC program that is near to its completion, the authors provide new insight into the efficiency and prospects of GVC schemes in the region.

Public construction authorities need to evaluate the level of competition in the submitted bids for a certain project before awarding the contract. A lack of adequate competition is a reason for rejecting all bids and reissuing an invitation to bid for the project. This paper aims to present an analysis of the adequacy of competition in public construction projects.

The paper uses five competition indicators to correlate the level of competition effect obtained with the number of contractors competing for the project. The analysis is based on the bid opening results for 917 public construction projects in Jordan that include 6,309 bids, with an average number of 6.88 bids per project.

The results illustrate that there is an improvement in the competition effect over the five analyzed competition indicators as the number of bidders increases. However, the rate of improvement decreases with the increase in bidders. The empirical analysis performed does not support the proposition that an optimum number of bidders exists in competitive bidding for construction projects or the proposition that a higher number of bidders may lead to higher bid prices. However, the indicators developed in this study found that at least 5 bidders are recommended and after 8 bidders, the rate of improvement continues at much slower rate.

The current research presented a multifaceted method for assessing the minimum number of bidders needed to ensure a competitive bidding process. Moreover, the research used actual data from 917 public projects.

Prior studies have found that managers adjust operational activities to tackle climate risk. However, the effects of climate risk on accounting practices are largely ignored in the literature. This paper investigates whether and how climate risk influences managers’ decision-making on the level of accounting conservatism and explains the results based on two competing channels: valuation demand and contracting demand.

Using firm level climate risk measures, we build a modified Basu (1997) model to conduct our econometric tests. In the baseline model, we use earnings before extraordinary items as the dependent variable, referred to as the earnings model. We control for different levels of fixed effect to identify the shocks of climate risk and mitigate potential concerns on endogeneity and bias in the model. A series of robustness tests provide supporting evidence for our baseline results and our explanation.

Using a sample of 35,832 firm-year observations on listed US firms over the period 2002 to 2019, we find that the perception of climate risk drives managers to choose the less conservative accounting policies. We conclude that the results are consistent with the valuation demand explanation but inconsistent with the contracting demand explanation.

The study provides additional evidence on how managers respond to climate risk by adjusting their corporate polices, specifically accounting policies. Our findings contradict the results of prior studies. We explain our results from a unique perspective. Overall, the study provides valuable insights for academics, investors, managers and policymakers.

This systematic literature review aims to investigate the application and integration of Industry 4.0 (I4.0) technologies in transportation infrastructure construction projects focusing on sustainability pillars.

The study employs a systematic literature review approach, combining qualitative review and quantitative analysis of 142 academic articles published between 2011 and March 2023.

The findings reveal the dominance of Building Information Modelling (BIM) as a central tool for sustainability assessment, while other technologies such as blockchain and autonomous robotics have received limited attention. The adoption of I4.0 technologies, including Internet of Things (IoT) sensors, Augmented Reality (AR), and Big Data, has been prevalent for data-driven analyses, while Unmanned Aerial Vehicle (UAVs) and 3D printing are mainly being integrated either with BIM or in synergy with Artificial Intelligence (AI). We pinpoint critical challenges including high adoption costs, technical barriers, lack of interoperability, and the absence of standardized sustainability benchmarks.

This research distinguishes itself by not only mapping the current integration of I4.0 technologies but also by advocating for standardization and a synergistic human-technology collaborative approach. It offers tailored strategic pathways for diverse types of transportation infrastructure and different project phases, aiming to significantly enhance operational efficiency and sustainability. The study sets a new agenda for leveraging cutting-edge technologies to meet ambitious future sustainability and efficiency goals, making a compelling case for rethinking how these technologies are applied in the construction sector.

We explore the design risk factors and associated managerial practices driving collaborative risk management for design efficacy in green building projects. By illuminating project design risk as an important project risk category in its own right, the study contributes to our understanding of optimising design efficacies for collaborative project risk management.

The study comprises exploratory interviews conducted with 27 industry project practitioners involved in the design and delivery/implementation of Green Star-certified building projects in South Africa.

The findings discursively highlight seven sources of design risk. We also identify seven specific collaborative risk management practices for design efficacy emerging from a consideration of how risk environments vary in the Green Star-certified projects, each with its own project design risk implications.

The study advances our understanding of how collaborations emerging from particular relational yet context-specific practices can be optimised to strengthen project risk management.