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Article
Publication date: 17 February 2023

Tamer Elsheikh, Hafiza Aishah Hashim, Nor Raihan Mohamad, Mayada Abd El-Aziz Youssef and Faozi A. Almaqtari

This study aims to investigate the relationship between the Chief Executive Officers (CEOs’) masculinity, CEO characteristics (accounting background, turnover and ethnicity/race…

Abstract

Purpose

This study aims to investigate the relationship between the Chief Executive Officers (CEOs’) masculinity, CEO characteristics (accounting background, turnover and ethnicity/race) and earnings management (EM) in Malaysia. It also examined the moderating effect of the CEOs’ ethnicity/race (Bumiputera and non-Bumiputera) on the relationship between CEO masculinity and EM.

Design/methodology/approach

The analyses were based on a panel data set of 260 corporates listed on the Bursa Malaysia from 2009 to 2019. Python/code was used to calculate the facial width-to-height ratio (fWHR), while testosterone (TESTN) was calculated based on CEO age and fWHR. To estimate the results, panel data analysis with a fixed effect model was used.

Findings

The result shows that fWHR and TESTN have a significant positive effect on EM. CEO race has a significant impact on EM, implying that non-Bumiputera CEOs are more likely to be associated with EM. There was no statistically significant evidence that race moderates the relationship between CEO masculinity and EM.

Research limitations/implications

The research contributes to the growing evidence in the field of neuroscience that it is possible to infer aspects of an individual’s behavior based on their facial structure and their TESTN levels. The findings provide new evidence supporting Malaysian Government policies in reducing masculinity on boards of directors and senior executive positions, which will positively affect the integrity of financial reports.

Originality/value

To the best of the authors’ knowledge, it is the first research to explain whether the ethnicity/race of CEOs is related to EM and whether it has a significant moderate effect on the relationship between masculinity and EM.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 26 December 2023

Faozi A. Almaqtari, Tamer Elsheikh, Khaled Hussainey and Mohammed A. Al-Bukhrani

The purpose of this study is to examine the impact of country-level governance on sustainability performance, taking into account the effect of sustainable development goals…

Abstract

Purpose

The purpose of this study is to examine the impact of country-level governance on sustainability performance, taking into account the effect of sustainable development goals (SDGs) and board characteristics.

Design/methodology/approach

This study uses panel data analysis using fixed effect models to investigate the influence of country-level governance on sustainability performance while considering the effect of SDGs and board characteristics. The sample comprises 8,273 firms across 41 countries during the period spanning from 2016 to 2021. The sample is divided into two categories based on the score of SDGs.

Findings

The findings of this study show that countries with high SDGs score have better overall country-level governance and board attributes which have a statistically significant positive impact on sustainability performance. However, for those countries with low SDGs, political stability shows a statistically insignificant and negative impact on sustainability performance, while government effectiveness indicates a statistically insignificant positive impact on sustainability performance.

Originality/value

This study contributes to the literature by providing empirical evidence on the relationship between country-level governance, SDGs, board characteristics and sustainability performance. The study also highlights the importance of considering the effect of SDGs on the relationship between country-level governance and sustainability performance. The findings of this study could be useful for policymakers and firms in improving their sustainability performance and contributing to sustainable development.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

Open Access
Article
Publication date: 11 July 2023

Najib H. S. Farhan and Faozi A. Almaqtari

This research aims to examine the impact of RPTs and board of directors' characteristics on the market value of Indian listed banks. Further, this study evaluates the moderation…

Abstract

Purpose

This research aims to examine the impact of RPTs and board of directors' characteristics on the market value of Indian listed banks. Further, this study evaluates the moderation effect of board composition on the association between RPTs banks’ market value.

Design/methodology/approach

The sample size consists of 38 banks listed on Bombay stock exchange. The current study is based on secondary data for ten years from 2010 to 2019. Generalized Method of Moment (GMM) was used for estimating the results.

Findings

Subsidiary transactions, board of directors' size, composition, diligence, promoters, remuneration and banks' size and leverage have a significant impact on the market value of Indian listed banks. Further, board of directors' composition positively moderates the association between RPTs and banks value measured by Tobin's. Furthermore, corporate governance characteristics have a significant impact on RPTs measured by total RPTs and all subsidiary transactions.

Research limitations/implications

This research is limited only to listed banks whose data are available in the ProwessIQ database, which makes it difficult to generalize the findings on other unlisted banks. This research helps policymakers, investors and creditors to categorize RPTs into different groups to identify the harmful and beneficial once to the bank. The findings suggest that policymakers, investors and creditors should not consider all key personal transactions as harmful transactions; instead, the policymakers, investors and creditors should consider all subsidiary transactions as harmful in the absence of independent directors.

Originality/value

The present study contributes to the existing literature on RPTs by evaluating the interaction effect of board composition on the association between related party transactions and banks' value. Further, this research focuses on the financing industry; Indian banks, which has not been sufficiently researched in comparison to the non-financing industries.

Details

Asian Journal of Accounting Research, vol. 8 no. 4
Type: Research Article
ISSN: 2459-9700

Keywords

Open Access
Article
Publication date: 18 May 2023

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…

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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.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Open Access
Article
Publication date: 14 December 2020

Waleed M. Al-Ahdal, Faozi A. Almaqtari, Dheya A. Zaid, Eissa A. Al-Homaidi and Najib H. Farhan

This study aims to investigate the impact of corporate characteristics on leverage in the Gulf Cooperation Council (GCC) non-financial listed firms.

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Abstract

Purpose

This study aims to investigate the impact of corporate characteristics on leverage in the Gulf Cooperation Council (GCC) non-financial listed firms.

Design/methodology/approach

A sample comprising a balanced panel for eight years from 2009–2016 for four Gulf countries is used. In total, 85 non-financial listed companies have been selected using a non-probability sampling technique. Corporate characteristics are represented by return on assets (ROA), return on equity, return on capital employed, market value-added, Tobin-Q, liquidity and firm size. The study used fixed and random effect models to estimate the results.

Findings

The findings of the study revealed that both ROA and FSIZE have a significant negative effect on leverage. However, market value-added, return on capital employed and Tobin-Q exhibited a statistically significant positive effect on leverage. Further, the results indicated that Qatar is better than kingdom of Saudi Arabia (KSA), Oman and the UAE. In addition, evidence noted that KSA is better than both UAE and Oman in terms of the overall impact of corporate characteristics on the leverage. However, this effect is not statistically significant.

Practical implications

This study provides an open insight for managers, bankers, financial analysts in the GCC countries and some other developing economies by highlighting the relationship between corporate characteristics and leverage in an emerging market.

Originality/value

The current study provides an important insight into corporate characteristics and leverage. By so doing, it provides an attempt to identify the factors influencing corporate financing behavior taking into consideration different issues such as different proxies of firms’ profitability, market capitalization, market value added and liquidity, which provides original evidence from Gulf countries emerging markets. These countries are characterized by low tax rates and high liquidity. High liquidity may reduce the cost of borrowing and debt financing may not be a huge burden on firms’ profits. This makes the investigation of leverage and corporate characteristics, particularly, firms’ profitability and liquidity, very important. Therefore, the study tries to bridge an existing gap in the body of literature of capital structure and debt financing in Gulf countries emerging markets.

Details

PSU Research Review, vol. 6 no. 2
Type: Research Article
ISSN: 2399-1747

Keywords

Article
Publication date: 18 July 2023

Karrar Khalaf Jabbar Allami, Faozi A. Almaqtari, Hamood Mohammed Al-Hattami and Ritu Sapra

This study aims to investigate the factors associated with the intention to use information technology in audit (ITIA) in Iraq.

Abstract

Purpose

This study aims to investigate the factors associated with the intention to use information technology in audit (ITIA) in Iraq.

Design/methodology/approach

The study uses a quantitative approach based on a questionnaire survey of 186 respondents. The study population includes respondents who are board members, senior executives, internal auditors and information technology (IT) assistants in various Iraqi organizations from different sectors. Structural equation modeling has been used to estimate the results.

Findings

The findings exhibit that most auditors in Iraq use basic IT software. However, among several specialized and advanced IT audit software packages, only generalized audit software is used by about 20%. The results also indicate that social factors significantly and positively impact auditors’ and practitioners’ perceptions of ITIA use. Moreover, the results reveal that companies and auditors who use or audit complex accounting systems perceive higher benefits and intent to adopt ITIA. However, the results report that organizational support, professional support, competency and IT education have an insignificant effect on ITIA adoption.

Originality/value

The originality of the present research lies in several aspects. First, the research study focuses specifically on Iraq, which is an emerging and less developed country influenced by social and economic. This research context provides a unique perspective and contributes to the understanding of ITIA adoption in less developed countries. The study investigates how external factors, including social and external pressure and the support of government professional bodies, affect the adoption of ITIA. Further, it assesses the influence of firms’ specific factors such as management support, level of competency and complexity of accounting information systems. Second, the study uses a quantitative approach with a questionnaire survey from various Iraqi organizations and sectors. The specific sample composition adds originality by capturing insights from different levels of organizational hierarchy and diverse professional backgrounds. Third, the findings shed light on the current IT usage in auditing practices in Iraq, highlighting that most auditors use basic IT software and the limited adoption of specialized IT audit software packages. Finally, the study’s originality is also reflected in its contribution to expanding knowledge on the perceived benefits and challenges associated with ITIA adoption in less developed countries. By emphasizing the need for broader awareness of emerging technology-enabled auditing software and considering the unique characteristics of less developed countries, the research provides valuable insights and implications for practitioners, policymakers and researchers.

Details

Information Discovery and Delivery, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-6247

Keywords

Article
Publication date: 1 July 2022

Peter Njagi Kirimi, Samuel Nduati Kariuki and Kennedy Nyabuto Ocharo

The study aims to analyze the effect of financial soundness on financial performance of commercial banks in Kenya.

Abstract

Purpose

The study aims to analyze the effect of financial soundness on financial performance of commercial banks in Kenya.

Design/methodology/approach

The study used dynamic panel model to analyze data from commercial banks for the period 2009 to 2020. The study was modeled on the concept of CAMEL approach using five CAMEL variables as financial soundness indicators. Four indicators that is, net interest margin (NIM), earnings per share (EPS), return on assets (ROA) and return on equity (ROE) were used as measures of financial performance.

Findings

Generalized method of moments results established that financial soundness had a statistically significant effect on NIM, ROA and ROE. It was also found that asset quality and earning quality had a statistically significant effect on net interest margin. In addition management efficiency had significant effect on ROE. However, the study established that capital adequacy, asset quality, earning quality and liquidity had a statistically insignificant effect on ROA and ROE respectively while capital adequacy, management efficiency and liquidity had statistically insignificant effect on NIM.

Practical implications

Bank managers should put into place effective financial policies to govern changes in CAMEL variables to ensure optimal banks' financial soundness to facilitate positive growth in banks' financial performance.

Originality/value

The current study is modeled on the concept of the CAMEL approach by employing the five CAMEL variables as financial soundness indicators. In addition, the study contributes to local literature by examining banks in a developing economy to provide reliable and relevant information on their differences to monitor their dynamics in financial soundness and financial performance which could not be provided by regional or global studies.

Details

African Journal of Economic and Management Studies, vol. 13 no. 4
Type: Research Article
ISSN: 2040-0705

Keywords

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