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1 – 10 of 122Olfa Ben Salah and Anis Jarboui
The objective of this paper is to investigate the direction of the causal relationship between dividend policy (DP) and earnings management (EM).
Abstract
Purpose
The objective of this paper is to investigate the direction of the causal relationship between dividend policy (DP) and earnings management (EM).
Design/methodology/approach
This research utilizes the panel data analysis to investigate the causal relationship between EM and DP. It provides empirical insights based on a sample of 280 French nonfinancial companies listed on the CAC All-Tradable index during the period of 2008–2015. The study initiates with a Granger causality examination on the unbalanced panel data and employs a dynamic panel approach with the generalized method of moments (GMM). It further estimates the empirical models simultaneously using the three-stage least squares (3SLS) method and the iterative triple least squares (iterative 3SLS) method.
Findings
The estimation of our various empirical models confirms the presence of a bidirectional causal relationship between DP and EM.
Practical implications
Our study highlights the prevalence of EM in the French context, particularly within DP. It underscores the need for regulatory bodies, the Ministry of Finance, external auditors and stock exchange organizers to prioritize governance mechanisms for improving the quality of financial information disclosed by companies.
Originality/value
This research is, to the best of our knowledge, the first is to extensively investigate the reciprocal causal relationship between DP and EM in France. Previous studies have not placed a significant emphasis on exploring this bidirectional link between these two variables.
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This paper aims to contribute to the development of the European Union (EU) regulatory environment for sustainability reporting by analyzing how materiality is defined in the…
Abstract
Purpose
This paper aims to contribute to the development of the European Union (EU) regulatory environment for sustainability reporting by analyzing how materiality is defined in the Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive (CSRD) and by examining the added value and challenges of legalizing reporting and materiality requirements from both regulatory and practical company perspectives. It provides insights on whether this is reflected by EU pharmaceutical companies and to what extent companies report information on their materiality analysis process.
Design/methodology/approach
Doctrinal analysis was used to examine regulatory instruments. Qualitative document analysis was used to analyze companies’ reports. The added value and challenges were examined using a governance approach. It focused on legalizing reporting and materiality requirements, with a brief extension to corporate management and organization studies.
Findings
Materiality has evolved from a vague concept in the NFRD toward double materiality in the CSRD. This was reflected by the industry, but reports revealed inconsistencies in materiality definitions and reported information. Challenges include lack of self-reflection and company-centric perceptions of materiality. Companies should explain how they identify relevant stakeholders and how input is considered in decision-making.
Practical implications
Managers must consider how they conduct materiality assessments to meet society’s expectations. The underlying processes should be explained to increase the credibility of reports. Sustainability reporting should be seen as a corporate governance tool.
Originality/value
This work contributes to the literature on materiality in sustainability reporting and to the debate on the need for a holistic, society-centric approach to enhance the sustainability of companies.
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The purpose of this study is to investigate the moderating effect of board gender diversity on the relationship between sustainability reporting (SR) and earnings management (EM…
Abstract
Purpose
The purpose of this study is to investigate the moderating effect of board gender diversity on the relationship between sustainability reporting (SR) and earnings management (EM) in the East Africa Community (EAC).
Design/methodology/approach
The study analyzed a sample of 71 publicly traded companies from 2011 to 2021.
Findings
The study finds that both SR and board gender diversity have a negative and significant effect on EM and that board gender diversity moderates the relationship between SR and EM.
Practical implications
The findings suggest that boards should support the adoption of SR and increase female representation as a practical way to reduce EM. Policymakers should also implement appropriate measures, such as imposing mandatory SR and gender quotas on corporate boards, to address EM.
Originality/value
This research adds to the limited knowledge of SR and EM in the EAC and also fills a gap in the existing literature by investigating the influence of board gender diversity on the link between SR and EM.
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Leonardo Nery Dos Santos, Hsia Hua Sheng and Adriana Bruscato Bortoluzzo
Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose…
Abstract
Purpose
Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose of this paper is to study this type of cost from institutional and regulatory perspectives. The authors argue that these costs decrease when the host country adopts concepts of international regulations that multinationals may be familiar with due to their own home country regulation experience. This prior regulatory experience gives foreign subsidiaries an advantage of foreignness (AoF), which can offset their liability of foreignness (LoF).
Design/methodology/approach
This study compared the returns on assets of 35 domestic firms with those of foreign subsidiaries in the Brazilian energy industry between 2002 and 2021, using regression dynamic panel data.
Findings
The existence of a relationship between the international regulatory norm and the Brazilian regulator has transformed the LoF into an advantage of foreignness to compete with local energy firms. The results also suggest that the better the regulatory quality of the subsidiary’s country of origin, the better its performance in Brazil, as it can reduce compliance costs. Finally, the greater the psychic distance between Brazil and the foreign subsidiary’s home country, the worse its performance.
Research limitations/implications
The research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017).
Practical implications
This research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017). The practical implication is that the relationship between conformity costs, capital budget calculation and strategic planning for internationalization will be related to the governance quality of the home country of multinationals. The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.
Social implications
The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.
Originality/value
This research discuss firm and local regulator tie is one of core competitiveness in host countries (Yang and Meyer, 2020). This study also complements the current institutional and regulatory foreignness studies in emerging economy (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022). Second, prior regulatory experience of multinational enterprise in similar environment can affect its foreign affiliate performance (Perkins, 2014). Third, this study confirms current literature that argues that knowledge and ability to operate in an institutionalized country can be transferred from parent to affiliate. In the end, this study investigates whether AoF persists when host governments improve the governance of their industries.
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This study focuses on the triadic multilevel psychic distance (MPD) between the firm, target market and bridge-maker and its consequences for firm internationalization…
Abstract
Purpose
This study focuses on the triadic multilevel psychic distance (MPD) between the firm, target market and bridge-maker and its consequences for firm internationalization. Specifically, it spotlights the triadic psychic distance between firms, the levels of psychic distance in the target market (country and business) and the bridge-maker. Therefore, this study examines the triadic MPD among these three entities and its impact on firm internationalization.
Design/methodology/approach
This study uses qualitative and case study research approaches. It is based on 8 case companies and 24 internationalization cases. Secondary data were collected, and interviews with bridge-makers and industry experts were conducted.
Findings
The study found that MPD appeared in the triad. The MPD between firms and markets is related to country-specific differences and business difficulties. The MPD between the firm and the bridge-maker is based on the latter’s lack of knowledge vis-à-vis bridging the firm’s MPD. Finally, the MPD between bridge-makers and the market is based on the former’s lack of knowledge of the home country’s business difficulties.
Originality/value
This is the first study to develop and adopt a triadic multilevel psychic distance conceptualization that provides evidence for and sheds light on the triadic MPD and its effect on firm internationalization. This study identifies the reasons behind triadic MPD in connection to firm internationalization. Notably, firm internationalization is interdependent on the triadic MPD setting between the firm, bridge-maker and target market. It has theoretical value and contributes to the recent advancement in the understanding of MPD in international marketing literature.
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Chiara Tagliaro, Alessandra Migliore, Erica Isa Mosca and Stefano Capolongo
This paper aims to explore how the scientific literature and company reports have addressed inclusive workplace design and strategies to date.
Abstract
Purpose
This paper aims to explore how the scientific literature and company reports have addressed inclusive workplace design and strategies to date.
Design/methodology/approach
This paper adopts a scoping review to answer the following question: To what extent is inclusion present in workplace design and related strategies? An analysis of 27 scientific papers and 25 corporate social responsibility reports of the highest-ranked companies in the Great Place to Work global ranking disentangles the main aspects related to workplace design and strategies for promoting inclusion.
Findings
This paper opens avenues for four macro-categories of diversity (psycho-physical aspects; cultural aspects; socio-economic conditions; and ability, experience and strengths) to support the development of inclusive workplace design and strategy. Besides, multiple spatial scales emerged as material and immaterial elements of the workplace encountering inclusion and diversity.
Originality/value
Nowadays, the workforce is becoming more diverse. Although diversity, equity and inclusion (DE&I) has become key to many organizations, it remains unclear how DE&I principles are applied in workspace design and strategies. This scoping review provides a novel perspective on the topic by integrating scientific knowledge and practice-based approaches which still address this matter independently.
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Paolo Biancone, Valerio Brescia, Federico Chmet and Federico Lanzalonga
The research aims to provide a longitudinal case study to understand how digital transformation can be embedded in municipal reporting frameworks. The central role of such…
Abstract
Purpose
The research aims to provide a longitudinal case study to understand how digital transformation can be embedded in municipal reporting frameworks. The central role of such technology becomes increasingly evident as citizens demand greater transparency and engagement between them and governing institutions.
Design/methodology/approach
Utilising a longitudinal case study methodology, the research focusses on Turin’s Integrated Popular Financial Report (IPFR) as a lens through which to evaluate the broader implications of digital transformation on governmental transparency and operational efficiency.
Findings
Digital tools, notably sentiment analysis, offer promising avenues for enhancing governmental efficacy and citizenry participation. However, persistent challenges highlight the inadequacy of traditional, inflexible reporting structures to cater to dynamic informational demands.
Practical implications
Embracing digital tools is an imperative for contemporary public administrators, promoting streamlined communication and dismantling bureaucratic obstructions, all while catering to the evolving demands of an informed citizenry.
Originality/value
Different from previous studies that primarily emphasised technology’s role within budgeting, this research uniquely positions itself by spotlighting the transformative implications of digital tools during the reporting phase. It champions the profound value of fostering bottom-up dialogues, heralding a paradigmatic shift towards co-creative public management dynamics.
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Municipalities have the potential to become models of the circular economy (CE). This paper aims to examine the impact of the municipal council’s characteristics on municipal CE…
Abstract
Purpose
Municipalities have the potential to become models of the circular economy (CE). This paper aims to examine the impact of the municipal council’s characteristics on municipal CE disclosure and promotion.
Design/methodology/approach
This paper is based on the resource dependence and upper echelons theories. For a sample of the 100 largest cities in Canada, a mixed methodology is used to code and analyze data and test the hypotheses.
Findings
Municipal councillors’ education and experience related to the environment or sustainability are both likely to affect CE disclosure, and their sector membership (public or private) moderates the relationship between CE disclosure and councillors’ experience. This experience may be reinforced by membership in the private sector, which has applied CE principles more extensively than the public sector has. Municipal councils with a greater number of councillors from the private sector appear to perform better in matters of transparency and to disclose more CE information on their public websites.
Practical implications
Municipalities could use the findings to foster their transition to CE by implementing a CE-related training plan for their councillors. A CE-dedicated section on their websites could improve transparency and inform and educate residents about CE.
Social implications
The public sector could learn from the private sector’s best practices regarding CE.
Originality/value
This paper contributes to the literature by providing empirical evidence of the transparency and engagement of municipalities toward CE. The authors extend the resource dependence and upper echelons theories to a new context, that of public organizations.
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Karin Goebel, Sabrine Dias Losekann, Paola Thalissa Bartoski Polla, Karla Bernardo Mattoso Montenegro and Andréa Rodrigues Ávila
This study aimed to analyze the strategies and challenges related to technology transfer (TT) in technology transfer offices (TTOs), specifically regarding actions to offer…
Abstract
Purpose
This study aimed to analyze the strategies and challenges related to technology transfer (TT) in technology transfer offices (TTOs), specifically regarding actions to offer technologies in their portfolios.
Design/methodology/approach
The qualitative research used a multiple case study based on interviews with TTO managers from seven Brazilian public Science and Technology Institutions (STIs): University of São Paulo (USP), State University of Campinas (UNICAMP), Paulista State University (UNESP), Federal University of Minas Gerais (UFMG), Federal University of Paraná (UFPR), Federal Technological University of Paraná (UTFPR) and Oswaldo Cruz Foundation (FIOCRUZ).
Findings
STIs that invest more resources in their portfolio’s active offering and marketing are more successful in TT than STIs with a passive strategy. Although this active strategy has grown in importance, there is a disparity among Brazilian TTOs as some are still passive in commercializing their intellectual property. This research also highlights the need for clear policies to overcome obstacles related to legal uncertainty for researchers who wish to undertake projects as entrepreneurs using the intellectual property of STIs.
Research limitations/implications
The results of this study cannot be generalized since its conclusions are limited to the studied institutions. However, the outcomes indicate some interesting matters for managers of STIs, public policymakers and TT researchers.
Originality/value
Literature on marketing and innovation related to TT between research institutions and companies in developing countries is still limited. Thus, this research contributes to generating knowledge in the field and improving TTOs.
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The study aims to examine how the information disclosed by the managers in the management discussion and analysis (MD&A) reports varies at the different levels of corporate…
Abstract
Purpose
The study aims to examine how the information disclosed by the managers in the management discussion and analysis (MD&A) reports varies at the different levels of corporate performance.
Design/methodology/approach
To understand this quantile effect, first OLS technique was adopted and then, the quantile regression method was applied to explore the impact of MD&A disclosures on the firm performance across the lower and upper quantiles. The sample size for the study is 490 firms’ year observations for the period 2016–2022.
Findings
The results of the study demonstrate the negative but significant relationship between MD&A disclosures and corporate performance, supporting the two management strategies of “competitive disadvantage” in case of good performance and “management impression strategy” in case of poor performance. Furthermore, with other corporate governance variables, both the size of the board and the number of independent directors on the board are positively significant only in the case of the upper quantile indicating the heterogeneity in the relationship between the performance and the MD&A disclosures. Therefore, the overall findings of the study support that these results contradict the agency theory and the stakeholders’ theory as managers are not acting well as agents on behalf of the investors and work well only when they are controlled by the large board having more independent directors.
Originality/value
To the best of the authors’ knowledge, no study so far has incorporated quantile regression to assess the effect of MD&A disclosures on company performance at various levels of the firm performance, which gives more robust insights about the viewpoint of the managers on the different level of the firm performance. In other words, this study highlights the important information as to how the information provided in the MD&A reports varies as per the good or poor performance of the companies.
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