Search results

Foreign directors from developed nations are significant brain gains for Chinese firms because they improve board competency and board diversity. Therefore, the purpose of this study is to explore the relationship between foreign directors from developed countries on Chinese listed firms and firms’ green commitment.

For the empirical analysis, first, this study applies ordinary least square regression and firm fixed model to explore the relationship between foreign directors and green commitment. For the endogeneity concerns, this study first added more control variable in the main model, then applied instrumental variable approach and propensity score matching technique.

This study predicts and finds that percentage of foreign directors from developed countries on Chinese listed firms’ board positively enhances the firms’ green commitment. Furthermore, this study also finds that the positive relationship between foreign directors and firms’ green commitment is more significant when firms are in a low competitive industry, have no financial constraints and are overseas-listed. This study’s findings are robust after controlling for endogeneity concerns.

This is new research on the impact of foreign directors on corporate green commitment.

This paper aims to provide an objective and comprehensive evaluation of the understanding of the professional code of ethics of Indian Professional Management Accountants in Business (PMAIBs). It further delves into their individual, job and organizational characteristics as determinants of their understanding of the code.

This study relies on data from 247 responses to a survey-based questionnaire. Overall scores and sub-scores of the level of understanding of the code were calculated based on questions grounded in IESBA Code and ethical dilemmas. The drivers of these scores were then examined using one-way ANOVA, OLS, Probit and ordered probit regressions.

This study found considerable heterogeneity in Indian PMAIBs' understanding of their professional code of ethics and substantial scope for improvements. PMAIBs were stronger in Application, Resolution and Threats but weaker in Theory and Principles. Further, PMAIBs who had ranked themselves higher on code-familiarity, had higher moral maturity, hailed from western India and worked for foreign-listed, foreign-owned firms were found to have a higher level of understanding of the code. Highly educated elderly professionals and professionals with more responsibility areas exhibited a lower level of understanding of the code.

Insights from the study can help professional bodies, employers and academics identify and segment PMAIBs based on their ethics-training needs and customize interventions, which can benefit businesses and society through reduced corporate ethical failures. Considering the risk implications of Indian PMAIBs' inadequacies in understanding their code of ethics, the Indian professional accounting organization (ICAI-CMA) should mandate ethics in continuing professional development and expedite its long pending convergence with the IESBA code, a global benchmark for professional accountants.

This paper assesses the understanding of the professional code of ethics of PMAIBs, which is crucial yet amiss in the accounting ethics literature. While ethical decision-making is extensively researched, how well the professionals understand their code is yet unexplored. Research on PMAIBs, despite their unique ethical vulnerabilities and increasingly vital role in organizations, is still dormant. This study aims to fill these gaps by examining PMAIBs from India, an emerging economy under-represented in accounting ethics literature. India offers an important and rich setting for the study due to its large size, fast growth, deep integration with the global economy, high perceived corruption levels and poor ethical behavior of its firms.

The purpose of this paper is to investigate the role of cross-listing in overcoming liability of origin (LOO) facing emerging economy corporations (EECs).

This paper takes Chinese firms' cross-listing in Hong Kong and the firms' establishment of international joint ventures (IJVs) with foreign partners as the research setting. This is an empirical study using Heckman's self-selection model as the primary econometric technique and two-stage least square (2SLS) regressions as the supplementary estimation procedure.

Cross-listing in developed economies can serve as a signal for EECs to overcome the LOO. In addition, the regional institutional voids of emerging economies (EEs) and state ownership are prominent boundary conditions shaping this effect.

Only Chinese firms and the firms' cross-listing in Hong Kong are considered for the empirical context as a result of data availability.

This paper provides a practical solution for EECs whose internationalisation tends to be hindered by the LOO.

This study is of high importance in that it centres on a distinctive and challenging problem faced with EECs—the LOO. Besides, it ascribes this liability to a matter of information asymmetries and explores how cross-listing can serve as a signal to cope with this challenge.

In this paper, the authors examine the relation between cross-listing and the noncompliance with the mandatory corporate social responsibility (CSR) expenditure regulation in India, the first country to legally mandate the CSR expenditure.

The authors apply panel logit and ordinary least square (OLS) regression models to examine the impact of cross-listing on the noncompliance with the mandatory CSR expenditure regulation because panel regression has lesser multicollinearity problems and has the benefit of controlling for individual or time heterogeneity mostly present in cross-section or time series data.

Using a sample of 1,027 listed Indian firms, the authors show that the cross-listed firms are more likely to comply with the mandatory CSR expenditure than non-cross-listed firms. The authors further show that this relation holds only for those firms which are exposed to higher agency problems, for firms affiliated to business groups and for firms operating in high litigation risk industries. Finally, the authors show that cross-listed firms complying with the mandatory CSR expenditure command more valuation premiums.

This study’s results suggest that the noncompliance of the Indian firms with the mandatory CSR expenditure regulation comes down once they cross-list their shares in the US or the UK since such firms have to bond to the stronger corporate governance standards of the listed country. Hence, the authors recommend that merely making the investment in CSR activities mandatory may not serve the purpose and the convergence in corporate governance as well as compliance with the CSR expenditure can be achieved through cross-listing in US and UK markets.

One, the authors analyze the effect of cross-listing on the likelihood and magnitude of noncompliance with the CSR mandate. Two, this study is based in India where CSR expenditure has been made mandatory under the Companies Act, 2013. Using CSR mandate as a natural experiment, the authors have access to a richer data set on CSR in terms of the actual expenditure made by the company on CSR activities and the mandatory amount to be spent in a particular year.

This article aims to clarify the impact of stock market liberalization on corporate green technology innovation, analyze its mechanism from the perspectives of financing constraints and environmental management level and explore heterogeneity.

Using the panel data of Chinese enterprises from 2010 to 2020, this article adopts the multi-point difference-in-difference (DID) method to test the impact of stock market liberalization on enterprise green technology innovation and its conduction pathway.

The outcomes demonstrate that stock market liberalization contributes to the furthering of green technology innovation. The heterogeneity test reveals that this promotion is more pronounced for private companies, small-scale companies and companies with high information transparency. The mediating effect test shows that stock market liberalization boosts green technology innovation by alleviating corporate financing constraints and improving corporate environmental management.

This article elucidates the impact path of stock market liberalization on corporate green innovation based on alleviating corporate financing constraints and improving corporate environmental management levels. From the perspective of corporate green technology innovation, this article provides evidence from emerging market countries for the economic effects of capital market opening, which helps to further improve the level of green innovation.

The purpose of this paper is to analyze the recently enacted Regulation (EU) 2022/2560 of the European Parliament and of the Council of December 14, 2022, on foreign subsidies distorting the internal market (foreign subsidies regulation [FSR]) and its repercussions on the European Union (EU) public procurement marketplace and corporations from third countries. The purpose of this paper is to analyze the geopolitical and economic backgrounds for the Regulation and its efficiency.

In this study, the authors used doctrinal and analytical legal methodologies, meticulously examining pertinent EU law sources. The authors systematically collated and scrutinized applicable literature and legislative process materials to discern the essence and substance of the norms enshrined in the law. In this study, the authors also applied a socio-legal methodology when focusing on the economic and geopolitical context surrounding the adoption of the FSR. The contextual analysis traces the evolution of changes in international cooperation and recent political shifts.

Implementing the FSR should pave the way for a more equitable competitive landscape within the EU public procurement market, bolstering EU values. However, its potential to prolong public procurement procedures and create uncertainties regarding their outcomes could pose challenges, possibly affecting the effectiveness of public procurement regulations. Only time will reveal the extent of the EU’s interventionist approach and how necessary adjustments must be made to align with market demands.

This study highlights socially relevant aspects of the implementation of EU policies – European New Green Deal and European Industrial Policy in the context of public procurement. The analysis contained in this study concerns issues directly related to meeting the collective needs of the citizens.

To the best of the authors’ knowledge, this study is the first in-depth analysis of the solutions contained in the FSR in terms of geopolitical and economic aspects. Furthermore, there have been no studies so far, which have analyzed the FSR in detail from the point of view of its effectiveness. The effectiveness concept contained in this study is the authors’ own solution.

This study aims to examine the role of returnee managers that can affect the strategic-divestment decision of emerging-market firms (EM firms). Drawing on arguments from the upper echelons theory and international human resource mobility perspectives, this study aims to propose that returnee managers influence corporate divestitures when the business outlook is negative. In addition, this study aims to examine the interplay between returnee managers and CEOs, whose characteristics can foster or undermine the efforts of returnee managers to engage in corporate divestments.

This study examines 278 firms from nine emerging economies. The negative binomial regression was employed to estimate the model. In the robustness checks, the logistic regression was adopted to confirm the earlier findings.

The empirical results support the notion that returnee managers strengthen the relationship between firm performance and divestments. Because of the limited liabilities of foreignness and outsidership, returnee managers can gain social trust and credibility through communication and social interaction. Furthermore, the results provide mixed support for the moderating effect of CEO characteristics on the performance–divestment relationship.

This study reveals that returnee managers are a great asset for EM firms that aim to find synergies and upgrade their capabilities through asset reconfiguration, which is an essential activity of emerging market firms to integrate themselves into the global competition. Meanwhile, CEO characteristics can foster (through their education level) or hinder (due to their age) divestment attempts, influenced by returnee managers.

This study explores an understudied phenomenon in international business (IB): strategic divestment of EM firms. The literature that examines strategic divestment and corporate refocusing in emerging markets is extremely limited. Furthermore, this study explores the novel topic that intersects the international business (IB) and international human resource management (IHRM) research areas. Specifically, this study investigates the impact of returnee managers on strategic divestments.

The purpose of this paper is to analyze to what extent and in what ways signaling theory has been explored within the field of international marketing. This paper systematically reviews the use of signaling theory in the field of international marketing. Communication is a core aspect of the international marketing process. Research in this field has explored effective and unique ways of improving the communication flow to reduce the asymmetry of information between international consumers and the firm. This notion is adopted, enhanced and strengthened by signaling theory. Signaling theory has recently received the attention of international marketing scholars.

The systematic review methodology was applied for the purpose of identifying the relevant studies. We extracted academic articles over the last 23 years from the domain of international marketing that directly contribute to signaling theory based on 57 journal articles extracted through the systematic review process.

Based on systematic research the results reveal that the topic has grown and continues to expand within the broader international marketing field. We offer a theoretical conceptual framework to better understand signaling theory in the context of international marketing.

The authors map and critically evaluate the use of signaling theory in international marketing. Relevance of signaling theory in international marketing is growing and authors present an integrative framework that organizes the existing literature, and provides scholars to further expand on emerging themes of the domain. The paper offers some useful future research directions.

The purpose of this study is to look at how Shariah-compliant status and Shariah regulation affect the demand for initial public offerings (IPOs) in Pakistan. The Shariah-compliant status, which is seen as a method that offers a credible signal to investors, may explain the anomaly in IPO demand.

This research used multivariate and quantile regression models to assess data from 85 IPOs issued on the Pakistan Stock Exchange between 2000 and 2019.

Shariah-compliant status has a considerable negative association with IPO demand. Nevertheless, there is a considerable positive association among Shariah regulation and IPO demand. Furthermore, the interaction among regulatory quality and Shariah-compliant status has a considerable strong influence on IPO demand. As a consequence, the findings show that Shariah-compliant firms might possibly attract the attention of investors. Investors were found to concur on the amicability of rigorous rules and permissible Shariah-compliance aspects.

Future studies could analyse the financial ratio benchmark (cash and debt) to determine the Shariah-compliant status and Shariah regulation to better understand the problem of IPO demand in the context of Pakistan.

The outcomes of this research are useful for issuers and underwriters in comprehending the characteristics that influence high and early IPO success. Such knowledge may assist issuers and underwriters in responsibly planning and managing the IPO process.

The results may be useful to investors looking for critical information in prospectuses to make the best choice when subscribing to IPOs in Pakistan.

This is one of the first studies to provide empirical data on the links among Shariah-compliant status, Shariah regulation and IPO demand in Pakistan. Furthermore, this research demonstrates the interaction impact of regulatory quality and Shariah-compliant status on IPO demand.

The paper aims to provide empirical evidence of the impact of IFRS adoption on the value relevance of accounting information in the emerging market of Saudi Arabia.

The sample consists of 98 non-financial listed firms operating in Saudi Arabia from 2014 to 2019, representing the years before and after IFRS adoption. The authors apply basic and extended price models to examine the value relevance of select accounting figures.

The authors findings provide evidence that accounting information is, generally, value relevant to the Saudi Arabian capital market. However, mixed results exist for particular accounting variables. Both earnings and cash flows are value-relevant in the period before and after IFRS adoption; equity is only relevant in the post-adoption period. Furthermore, IFRS adoption also increases the explanatory power of earnings. An increase in the value relevance of earnings and equity hurts the value relevance of cash flows. The effects are moderated by leverage and dividend policy.

The authors contribute to the ongoing discussion of the economic effects of IFRS adoption in emerging markets. The empirical findings show that initial concerns about IFRS adoption, as reflected by the negative coefficient within the regression analysis, are mitigated once the usefulness of the individual accounting variables published in financial statements is investigated.