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1 – 10 of 162Jenny Ahlberg, Sven-Olof Yrjö Collin, Elin Smith and Timur Uman
The purpose of this paper is to explore board functions and their location in family firms.
Abstract
Purpose
The purpose of this paper is to explore board functions and their location in family firms.
Design/methodology/approach
Through structured induction in a four-case study of medium-sized Swedish family firms, the authors demonstrate that board functions can be located in other arenas than in the common board and suggest propositions that explain their distribution.
Findings
(1) The board is but one of several arenas where board functions are performed. (2) The functions performed by the board vary in type and emphasis. (3) The non-family directors in a family firm serve the owners, even sometimes governing them, in what the authors term “bidirectional governance”. (4) The kin strategy of the family influences their governance. (5) The utilization of a board for governance stems from the family (together with its constitution, kin strategy and governance strategy), the board composition and the business conditions of the firm.
Research limitations/implications
Being a case study the findings are restricted to concepts and theoretical propositions. Using structured induction, the study is not solely inductive but still contains the subjectivity of induction.
Practical implications
Governance agents should have an instrumental view on the board, considering it one possible governance arena among others, thereby economizing on governance.
Social implications
The institutional pressure toward active boards could paradoxically reduce the importance of the board in family firms.
Originality/value
The board of a family company differs in its emphasis of board functions and these functions are performed with varying emphases in different governance arenas. The authors propose the concept of kin strategy, which refers to the governance importance of the structure of the owner and observations on bi-directional governance, indicating that the board can govern the owners.
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Aziza Naz, Nadeem Ahmed Sheikh, Saleh F.A. Khatib, Hamzeh Al Amosh and Husam Ananzeh
The present research conducts a thorough review of published literature relevant to earnings management (EM) practices in family firms (FFs), utilizing the Scopus database…
Abstract
Purpose
The present research conducts a thorough review of published literature relevant to earnings management (EM) practices in family firms (FFs), utilizing the Scopus database, intending to identify potential directions for future research.
Design/methodology/approach
Through a systematic review, this study focuses on identifying and summarizing trends in publications over the years, the journal outlets, geographical contexts, research methodologies, the temporal evolution of theories and the specific constructs under investigation.
Findings
Earlier empirical studies suggest that corporate governance enhances integrity and transparency in FFs, thereby reducing EM practices. Contrarily, compliance with International Financial Reporting Standards (IFRS) seems to offer managers more opportunities for convenient EM rather than restricting such practices. Notably, corporate social responsibility (CSR) practices do not appear to mitigate EM practices consistently. The literature, however, reveals inclusive results and areas requiring deeper exploration for more definitive results. For instance, certain corporate governance mechanisms, such as family-specific social and cultural business characteristics, subjective measures of family businesses, behavioral approaches to family owners' decision-making and directors' personal, psychological and social factors, remain largely untested. Additionally, there is a notable research gap concerning the relationship between IFRS, capital structure and EM.
Originality/value
This study’s contributions lie in its comprehensive literature review, identification of research trends and gaps, and its potential to guide future research endeavors in the domain of EM practices in FFs.
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Domenico Campa, Alberto Quagli and Paola Ramassa
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Abstract
Purpose
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Design/methodology/approach
This literature review includes both qualitative and quantitative studies, based on the idea that the findings from different research paradigms can shed light on the complex interactions between different financial reporting controls. The authors use a mixed-methods research synthesis and select 64 accounting journal articles to analyze the main proxies for fraud, the stages of the fraud process under investigation and the roles played by auditors and enforcers.
Findings
The study highlights heterogeneity with respect to the terms and concepts used to capture the fraud phenomenon, a fragmentation in terms of the measures used in quantitative studies and a low level of detail in the fraud analysis. The review also shows a limited number of case studies and a lack of focus on the interaction and interplay between enforcers and auditors.
Research limitations/implications
This study outlines directions for future accounting research on fraud.
Practical implications
The analysis underscores the need for the academic community, policymakers and practitioners to work together to prevent the destructive economic and social consequences of fraud in an increasingly complex and interconnected environment.
Originality/value
This study differs from previous literature reviews that focus on a single monitoring mechanism or deal with fraud in a broadly manner by discussing how the accounting literature addresses the roles and the complex interplay between enforcers and auditors in the context of accounting fraud.
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Naoki Umemiya, Miki Sugimura, Romyen Kosaikanont, Nordiana Mohd Nordin and Abdul Latiff Ahmad
This paper discusses the effectiveness of a consortium-based student mobility programme by investigating the impact of the Asian International Mobility for Students (AIMS…
Abstract
Purpose
This paper discusses the effectiveness of a consortium-based student mobility programme by investigating the impact of the Asian International Mobility for Students (AIMS) Programme. AIMS is a regional multilateral large-scale student mobility programme based on a consortium of 10 member countries and 87 member universities with the Southeast Asian Ministers of Education Organization Regional Centre for Higher Education and Development (SEAMEO RIHED) as a facilitator. Over 6,000 students have participated in a semester-long intra-regional student exchange under AIMS since 2010.
Design/methodology/approach
The study employed questionnaire surveys and semi-structured interviews to investigate the impact of AIMS and its advantages as a consortium-based student mobility programme.
Findings
It was found that AIMS significantly impacted member universities by accelerating their internationalisation processes through increasing the number of inbound and outbound students and courses offered in English and so on. AIMS has promoted harmonisation among the members by developing common procedures and guidelines, providing platforms for mutual sharing of experiences and good practices and capacity building of international relations offices. AIMS has also had a significant impact on students by enhancing their regional identity and knowledge about the region of Asia, contributing to their development as future regional and global citizens. As advantages of AIMS, member universities efficiently built a foundation for international collaboration with common procedures and guidelines and shared their experiences through such venues as Annual Review Meetings. Students also feel supported by having clear guidance and find programmes prepared by host universities and SEAMEO RIHED useful.
Originality/value
This study is unique in that it empirically studies the impact of one of Asia’s largest student mobility programmes for the first time by analysing large-scale qualitative and quantitative data.
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Alana Vandebeek, Wim Voordeckers, Jolien Huybrechts and Frank Lambrechts
The purpose of this study is to examine how informational faultlines on a board affect the management of knowledge owned by directors and the consequences on organizational…
Abstract
Purpose
The purpose of this study is to examine how informational faultlines on a board affect the management of knowledge owned by directors and the consequences on organizational performance. In this study, informational faultlines are defined as hypothetical lines that divide a group into relatively homogeneous subgroups based on the alignment of several informational attributes among board members.
Design/methodology/approach
The study uses unique hand-collected panel data covering 7,247 board members at 106 publicly traded firms to provide strong support for the hypothesized U-shaped relationship. The authors use a fixed effects approach and a system generalized method of moments approach to test the hypothesis.
Findings
The study finds that the relationship between informational faultlines on a board and organizational performance is U shaped, with the least optimal organizational performance experienced when boards have moderate informational faultlines. More specifically, informational faultlines within boards are negatively related to organizational performance across the weak-to-moderate range of informational faultlines and positively related to organizational performance across the moderate-to-strong range.
Research limitations/implications
By explaining the mechanisms through which informational faultlines are related to organizational performance, the authors contribute to the literature in a number of ways. By conceptualizing how the management of knowledge plays an important role in the particular setting of corporate boards, the authors add not only to literature on knowledge management but also to the faultline and corporate governance literature.
Originality/value
This study offers a rationale for prior mixed findings by providing an alternative theoretical basis to explain the effect of informational faultlines within boards on organizational performance. To advance the field, the authors build on the concept of knowledge demonstrability to illuminate how informational faultlines affect the management of knowledge within boards, which will translate to organizational performance.
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Combining two organizational change theories, life cycle and organizational development, this study examines how strategic change cycle has been adopted and implemented across…
Abstract
Purpose
Combining two organizational change theories, life cycle and organizational development, this study examines how strategic change cycle has been adopted and implemented across three different organizations, a public organization, an NGO and an intergovernmental organization toward achieving their goals.
Design/methodology/approach
This study triangulates three different qualitative research methods: open-ended semi-structured interviews conducted with UN Women Egypt's director, text analysis of the three organizations' websites and the discourse analysis of the Tri-County Foundation's leaders.
Findings
Strategic change cycle has been differently formulated, adopted and implemented by the three organizations based on their goals, resources and contexts. While Office Board of Investment adopted a comprehensive reactive change, Tri-County Foundation followed a partial proactive transformation and UN Women Egypt developed a partial reactive strategy. Henceforth, public organizations and nonprofit organizations can develop different strategies of change in function of needs, resources, goals and context.
Originality/value
This study advances a theoretical framework on organizational change by integrating two theories, life cycle and organizational development, presenting four patterns of change: comprehensive reactive, comprehensive proactive, partial reactive and partial proactive.
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Giovanna Gavana, Pietro Gottardo and Anna Maria Moisello
The aim of this paper is to examine the effect of structural and demographic board diversity as well as board tenure on family firms' environmental performance, by analyzing the…
Abstract
Purpose
The aim of this paper is to examine the effect of structural and demographic board diversity as well as board tenure on family firms' environmental performance, by analyzing the differences between family and non-family businesses and within family firms.
Design/methodology/approach
Tobit regressions are applied to investigate the effect of independent directors, CEO non-duality, board gender diversity and board tenure on environmental performance. The study also controls for other board and firm characteristics, as well as for time, industry and country-fixed effects. In doing so, the authors rely on a sample of non-financial listed firms from France, Germany, Italy, Spain and Portugal over the period 2014–2021.
Findings
The authors find that women on the board positively influence environmental performance and this effect is significant only in family firms, although board tenure negatively moderates the relationship. Board independence significantly affects environmental performance only in non-family firms. A strong presence of family directors has a negative effect on family firms' environmental performance, especially when directors' turnover is low.
Originality/value
This paper examines the unexplored relationship between structural board diversity and environmental performance in family companies. This study provides empirical evidence on the association between gender diversity and family firms' environmental performance focusing for the first time on a European setting. Moreover, this study provides evidence of a different effect of board tenure in family and non-family businesses.
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Md. Abdur Rouf and Mamdouh Abdulaziz Saleh Al-Faryan
This study examines, in relation to agency theory, the influence of corporate mechanism on the environmental reporting of banking businesses registered on the Dhaka Stock Exchange…
Abstract
Purpose
This study examines, in relation to agency theory, the influence of corporate mechanism on the environmental reporting of banking businesses registered on the Dhaka Stock Exchange (DSE).
Design/methodology/approach
This study was carried out consuming an example of 150 annual reports from 30 banks for the period 2015–2019. Ordinary least squares (OLS) regression was used to investigate the inspiration of corporate governance on the range of inclusive environmental reporting.
Findings
The outcomes reveal that insider equity, board leadership structure, and presence of female directors are statistically significant, while board size and outside directors are insignificant. Furthermore, the results also indicate that the adoption of environmental disclosure among banking businesses in Bangladesh is extra motivated by an increase in the inside skills and moderately the outside acceptability weights. Additionally, there appears to be a supposed lack of stakeholder pressure for environmental disclosure.
Originality/value
The results show that the range of environmental reporting of banking businesses in Bangladesh is good, at an average of 53.90%. It concludes that corporate governance has a substantial inspiration on the range of environmental reporting of banking businesses in Bangladesh.
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This study aims to explore the relationship between chief executive officer (CEO) power and stock price crash risk in India. Furthermore, it seeks to analyse how insider trades…
Abstract
Purpose
This study aims to explore the relationship between chief executive officer (CEO) power and stock price crash risk in India. Furthermore, it seeks to analyse how insider trades may moderate the impact of CEO power on stock price crash risk.
Design/methodology/approach
A study of 236 companies from the S&P BSE 500 Index (2014–2023) have been analysed through pooled ordinary least square (OLS) regression in the baseline analysis. To enhance the results' reliability, robustness checks include alternative methodologies, such as panel data regression with fixed-effects, binary logistic regression and Bayesian regression. Additional control variables and alternative crash risk measure have also been utilised. To address potential endogeneity, instrumental variable techniques such as two-stage least squares (IV-2SLS) and difference-in-difference (DiD) methodologies are utilised.
Findings
Stakeholder theory is supported by results revealing that CEO power proxies like CEO duality, status and directorship reduce one-year ahead stock price crash risk and vice versa. Insider trades are found to moderate the link between select dimensions of CEO power and stock price crash risk. These findings persist after addressing potential endogeneity concerns, and the results remain consistent across alternative methodologies and variable inclusions.
Originality/value
This study significantly advances research on stock price crash risk, especially in emerging economies like India. The implications of these findings are crucial for investors aiming to mitigate crash risk, for corporations seeking enhanced governance measures and for policymakers considering the economic and welfare consequences associated with this phenomenon.
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Ahmed Elmashtawy, Mohd Hassan Che Haat, Shahnaz Ismail and Faozi A. Almaqtari
The main aim of the present study is to assess the moderating effect of joint audit (JA) on the relationship between audit committee effectiveness (ACEFF) and audit quality (AQ…
Abstract
Purpose
The main aim of the present study is to assess the moderating effect of joint audit (JA) on the relationship between audit committee effectiveness (ACEFF) and audit quality (AQ) in Egypt.
Design/methodology/approach
The sample included 61 non-financial corporations listed on the Egyptian Exchange from 2016 through 2020. The results are estimated using panel data analysis with fixed-effect models.
Findings
The findings exhibit that audit committee (AC) independence, ACEFF; and audit firm size negatively affect AQ. Conversely, the influence of AC meetings on AQ is positive and significant. The findings also reveal that JA moderates the relation between the ACEFF and AQ.
Research limitations/implications
The study offers theoretical contributions to corporate governance mechanisms, JA; and AQ by using data from listed firms in Egypt. The study is the first one that examines the moderating role of JA on ACEFF and AQ.
Practical implications
The study has practical implications for investors, board members, practitioners, academicians; and policymakers. Moreover, the study contributes using a composite measure for the ACEFF score.
Originality/value
The findings, supported by agency, resource dependence; and signaling theories, contribute to a better understanding of the relationship between ACEFF, AQ; and JA. The evidence about JA is still unknown in developing countries. Further, revisiting AQ with different measures, particularly accounting conservatism, has not been a subject of prior studies.
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