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1 – 10 of over 10000Valentina Beretta, Maria Chiara Demartini and Sara Trucco
Despite the rising trend of sustainable developmental goals (SDGs) incorporation into sustainability reporting, there remains a gap in understanding the role of SDG disclosure…
Abstract
Purpose
Despite the rising trend of sustainable developmental goals (SDGs) incorporation into sustainability reporting, there remains a gap in understanding the role of SDG disclosure (SDGD) in the relationship between sustainability and financial performance. Thus, this study aims to investigate the relationship between sustainability performance and the level of SDGD; the relationship between sustainability performance and financial performance; and the link between the level of SDGD and financial performance.
Design/methodology/approach
Conducted in Italy, the analysis involves manual collection of sustainability reports from company websites for the fiscal years from 2019 to 2022, followed by textual analysis to identify SDG-related content disclosed in nonfinancial reports. Financial and nonfinancial data from Orbis and LSEG databases are used for regression analysis on panel data.
Findings
Findings align with existing literature, emphasizing the partial mediator role played by the level of SDGD in the relationship between sustainability performance and financial performance, measured by return on equity. In addition, the study suggests that there is a positive relationship between sustainability performance and the level of SDGD and a positive relationship between the level of SDGD and financial performance.
Originality/value
This study contributes to a deeper understanding of how SDG disclosures function within the broader nexus of sustainability performance and financial outcomes. Findings from this study provide empirical support for the argument that SDGD is not merely a regulatory compliance tool but also a strategic asset that can enhance a firm’s financial performance.
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Corey Mack, Clay Koschnick, Michael Brown, Jonathan D. Ritschel and Brandon Lucas
This paper examines the relationship between a prime contractor's financial health and its mergers and acquisitions (M&A) spending in the defense industry. It aims to provide…
Abstract
Purpose
This paper examines the relationship between a prime contractor's financial health and its mergers and acquisitions (M&A) spending in the defense industry. It aims to provide models that give the United States Department of Defense (DoD) indications of future M&A activity, informing decision-makers and contributing to ensuring competitive markets that benefit the consumer.
Design/methodology/approach
The study uses panel data regression models on 40 companies between 1985 and 2021. The company's financial health is assessed using industry-standard financial ratios (i.e. measures of profitability, efficiency, solvency and liquidity) while controlling for economic factors such as national productivity, defense budgets and firm size.
Findings
The results show a significant relationship between efficiency and M&A spending, indicating that companies with lower efficiency tend to spend more on M&As. However, there was no significant relationship between M&A spending and a company's profitability or solvency. These results were consistent with previous research and the study's hypotheses for profitability and solvency. However, the effect of liquidity was the opposite of the expected result, possibly due to the defense industry's different view on liquidity compared to previous research.
Originality/value
The paper provides insights into the relationship between a prime contractor's financial health and its M&A spending, a topic with limited research. The findings can inform policymakers and regulators on the industrial base's future M&A activity, ensuring competitive markets that benefit the consumer.
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This paper aims to carry out a comprehensive overview of the academic debate on utilities’ non-financial reporting by highlighting the main issues and the emerging gaps.
Abstract
Purpose
This paper aims to carry out a comprehensive overview of the academic debate on utilities’ non-financial reporting by highlighting the main issues and the emerging gaps.
Design/methodology/approach
Using a structured literature review, this study identifies the state of the art, maps the evolution of non-financial reporting in utility companies and reveals unexplored issues and aspects.
Findings
A critical analysis of the existing academic debate shows the development of utilities’ non-financial reporting literature and the focus of this debate. It provides insight into how utilities pay attention to non-financial reporting, what role this plays in corporate actions and relationships with stakeholders and what research gaps need further investigation.
Research limitations/implications
This study provides some useful recommendations to practitioners and regulators to be more conscious of the weaknesses and criticalities of utilities’ non-financial reporting and to address them when building such reporting. However, this study considered only articles published in peer-reviewed academic journals.
Originality/value
A comprehensive literature review in the utilities’ non-financial reporting area is timely, given the increase in this type of reporting. The study has an original focus and develops an analytical framework highlighting the peculiarities of utilities.
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Generative artificial intelligence (GenAI) has progressed in its ability and has seen explosive growth in adoption. However, the consumer’s perspective on its use, particularly in…
Abstract
Purpose
Generative artificial intelligence (GenAI) has progressed in its ability and has seen explosive growth in adoption. However, the consumer’s perspective on its use, particularly in specific scenarios such as financial advice, is unclear. This research develops a model of how to build trust in the advice given by GenAI when answering financial questions.
Design/methodology/approach
The model is tested with survey data using structural equation modelling (SEM) and multi-group analysis (MGA). The MGA compares two scenarios, one where the consumer makes a specific question and one where a vague question is made.
Findings
This research identifies that building trust for consumers is different when they ask a specific financial question in comparison to a vague one. Humanness has a different effect in the two scenarios. When a financial question is specific, human-like interaction does not strengthen trust, while (1) when a question is vague, humanness builds trust. The four ways to build trust in both scenarios are (2) human oversight and being in the loop, (3) transparency and control, (4) accuracy and usefulness and finally (5) ease of use and support.
Originality/value
This research contributes to a better understanding of the consumer’s perspective when using GenAI for financial questions and highlights the importance of understanding GenAI in specific contexts from specific stakeholders.
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Hojops J.P. Odoch, Rehema Namono and Gorden Wofuma
Scientific knowledge is rich with literature on the antecedent role of social capital on resilience. However, empirical evidence has overlooked the role of the individual…
Abstract
Purpose
Scientific knowledge is rich with literature on the antecedent role of social capital on resilience. However, empirical evidence has overlooked the role of the individual dimensions of bonding and bridging social capital on its outcomes. This study aims to extend empirical research on the influence of social capital facets of bonding social capital and bridging social capital on financial resilience and more specifically in the aftermath of the COVID-19 pandemic where women SMEs mostly need bonding.
Design/methodology/approach
The study uses an explanatory research design to determine the hypothesized effect of social capital on financial resilience. The authors used regression to test the hypothesized relationship using a sample of three hundred and eight four women-owned SMEs in Kampala registered with Kampala City Traders Association.
Findings
According to the findings, the social bonding provides female entrepreneurs with emotive encouragement and inspiration through personal connections and responsibility sharing. Furthermore, women entrepreneurs bridging, which consisted of business networks, made it easier for them to identify new financial opportunities, which ultimately led to an increase in their financial resilience. The findings placed an emphasis on the significance of fellow business owners as sources of knowledge and assets that are crucial to maintaining one's financial resilience.
Research limitations/implications
Data were collected from women owned SMEs, and the application of the findings may be limited to women SMEs in Kampala District. Therefore, future research should replicate the current study findings using a sample drawn from other SMEs owned by both male and female from outside Kampala because of changes in operating environment. The study was cross-sectional, and financial resilience of a firm changes was periodical. This study paves the way for future longitudinal research in the same topic area, which will allow for a more complete comprehension of the financial resiliency of SMEs throughout a range of different time periods.
Practical implications
Research findings shape trajectory for current practitioners of SMEs to establish relevant social bonding and bridging as social capital in preparation for financial resilience in case of any pandemic.
Originality/value
To the best of the authors' knowledge, this study is the first to establish the antecedent role of social capital on financial resilience during an economic crisis induced by the COVID-19 pandemic, using a sample of women-owned medium- and small-sized businesses in Kampala.
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Tariq H. Ismail, Mohamed Samy El-Deeb and Raghda H. Abd El–Hafiezz
This study examines the correlation between ownership structure (OS) and financial reporting integrity (FRI), with emphasis on the impact of earnings quality (EQ) in the Egyptian…
Abstract
Purpose
This study examines the correlation between ownership structure (OS) and financial reporting integrity (FRI), with emphasis on the impact of earnings quality (EQ) in the Egyptian context.
Design/methodology/approach
The study uses data from 472 firm-year observations of Egyptian publicly listed companies between 2014 and 2021 and carried out descriptive statistics, correlation tests, multiple regression analysis and two-stage least squares (2SLS) to test the hypotheses.
Findings
The results revealed that blockholders and institutional ownership significantly enhance reporting integrity through effective oversight and monitoring. The findings underscore the vital role of concentrated OS in overseeing reporting practices and mitigating managerial opportunism, thereby improving the transparency and reliability of financial disclosures in Egypt.
Practical implications
The findings enrich the literature on corporate governance and financial reporting quality and have important implications for policymakers, regulators and corporate stakeholders.
Originality/value
This work contributes valuable insights on how OS and EQ can bolster FRI, offering crucial information for combating financial crises and facilitating smooth business operations in Egypt.
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This study investigates the influence of corporate culture on financial reporting transparency within Iranian firms.
Abstract
Purpose
This study investigates the influence of corporate culture on financial reporting transparency within Iranian firms.
Design/methodology/approach
Leveraging a dataset of 1,480 firm-year observations from the Tehran Stock Exchange spanning from 2013 to 2022, the study employs text mining to quantify linguistic features of corporate culture and transparency, specifically readability and tone, within annual financial statements and Management Discussion and Analysis (MD&A) reports.
Findings
Our results confirm a positive and significant relationship between corporate culture and financial reporting transparency. The distinct dimensions of corporate culture — Creativity, Competition, Control, and Collaboration — each uniquely enhance financial transparency. Robustness tests including firm fixed-effects, entropy balancing, Generalized Method of Moments (GMM), and Propensity Score Matching (PSM) validate the profound influence of corporate culture on transparency. Additionally, our analysis shows that corporate culture significantly affects the disclosure of business, operational, and financial risks, with varying impacts across risk categories. Cross-sectional analysis further reveals how the impact of corporate culture on transparency varies significantly across different industries and firm sizes.
Research limitations/implications
The study’s scope, while focused on Iran, opens avenues for comparative research in different cultural and regulatory environments. Its reliance on text mining could be complemented by qualitative methods to capture more nuanced linguistic subtleties.
Practical implications
Findings underscore the strategic importance of cultivating a transparent corporate culture for enhancing financial reporting practices and stakeholder trust, particularly in emerging economies with similar dynamics to Iran.
Originality/value
This research is pioneering in its quantitative analysis of the textual features of corporate culture and its impact on transparency within Iranian corporate reports, integrating foundational theoretical perspectives with empirical evidence.
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Sung Suk Kim, Vina Nugroho and Liza Handoko
This study aimed to explore the determining factors for green bond markets in ASEAN plus three countries. In contrast to previous publications that primarily examined the…
Abstract
Purpose
This study aimed to explore the determining factors for green bond markets in ASEAN plus three countries. In contrast to previous publications that primarily examined the incentives for green bonds and institutional differences among economies, the analysis focused on the role of competition among sub-financial sectors in fostering the growth of green bond markets.
Design/methodology/approach
This study adopted Driscoll and Kraay fixed effect panel methods to account for country-level heterogeneity and enhance efficiency, using quarterly data from 2016 to 2022.
Findings
The findings showed that healthy competition among sub-financial sectors was crucial for the growth of green bond markets. Growth in specific sub-financial sectors such as brown corporate bond and stock markets as well as banks contributed positively to these markets. Variables related to market microstructure also had no significant impact on green bonds but macroeconomic factors did.
Practical implications
The findings suggested that governments should promote healthy competition among sub-financial sectors and implement diverse policies to ensure the sustainable growth of green bond markets.
Originality/value
This study further pioneered the importance of competition among sub-financial sectors for the development of green bond markets.
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Leward Jeke, Clement Zibusiso Moyo and Richard Apau
Although the consequences of illicit financial outflows on the economies of the world continue to exert adverse impacts on many economies of the world, explanations regarding…
Abstract
Purpose
Although the consequences of illicit financial outflows on the economies of the world continue to exert adverse impacts on many economies of the world, explanations regarding specific drivers of the illicit outflows remain divergent in the literature. This study aims to investigate the effect of financial liberalisation on illicit financial outflows in Africa. Furthermore, the study also examines the effect of macroeconomic stability and institutional quality on illicit outflows.
Design/methodology/approach
To achieve the objectives, the study uses a dynamic panel system generalised method of moments technique to analyse annual data from the period 1995 to 2015 of 22 African countries.
Findings
The results show that financial liberalisation helps to reduce illicit capital outflows. Furthermore, improved institutional quality is associated with lower levels of capital outflows, thus affirming the theoretical expectations that stable political environment boost investor confidence. Overall, the study show that financial liberalisation reduces illicit outflows. However, liberalisation without sound macroeconomic stability and institutional quality may avail opportunities for illicit outflows.
Research limitations/implications
The main limitation of the study was lack of data that spans periods beyond 2015 for most of the variables on financial illicit flows. The available data sources could not test the objectives beyond 2015.
Originality/value
Current literature on the relationship between financial liberalisation and illicit fund outflows are generally conducted in the context implications on economic growth. However, beyond economic growth, financial liberalisation may impact on illicit financial outflows. Furthermore, other institutional and macroeconomic dynamics may influence illicit financial outflow, especially for developing economies in Africa.
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Vida Siahtiri, Welf Hermann Weiger, Christian Tetteh-Afi and Tobias Kraemer
As consumer debt can substantially impair subjective well-being, it is crucial for research to gain insights into how consumers can be motivated to improve financial planning…
Abstract
Purpose
As consumer debt can substantially impair subjective well-being, it is crucial for research to gain insights into how consumers can be motivated to improve financial planning. This paper aims to investigate how frontline employees in financial services can help consumers regulate their financial planning behaviors and how financial service providers can effectively support their frontline employees in this effort through leadership and organizational climate.
Design/methodology/approach
We incorporate regulatory focus theory and conservation of resource theory to develop a conceptual model that we test in a triadic study with a unique dataset collected from consumers, frontline employees, and managers in the banking sector.
Findings
We find that frontline employees must pay attention to the details of consumers’ needs and customize the service to those needs to trigger consumer promotion focus and stimulate consumers’ financial planning behaviors. Moreover, our results emphasize that the organization must act as an integrated entity. Thus, a manager’s servant leadership and an organizational climate of customer stewardship are crucial for frontline employees to transform consumers’ financial planning behaviors.
Research limitations/implications
The study highlights frontline employees’ key role in motivating consumer financial planning behavior, offering a new perspective in transformative service research on enhancing financial well-being.
Practical implications
The findings provide financial service providers with actionable implications for enhancing consumers’ financial planning. This benefits both consumers and financial institutions, as customers with greater spending power can buy more financial products.
Originality/value
This study advances transformative service research on consumer financial planning behavior, which has largely focused on consumer-related or society-level variables, by exploring the role of frontline employees and organizational support in terms of leadership and climate.
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