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Article
Publication date: 8 January 2021

Nourhen Sallemi, Rim Zouari Hadiji and Ghazi Zouari

This paper aims to examine the effect of governance mechanisms (board size, board independence, duality, the Sharia board size, Sharia board meetings and ownership…

Abstract

Purpose

This paper aims to examine the effect of governance mechanisms (board size, board independence, duality, the Sharia board size, Sharia board meetings and ownership concentration) on the performance of insurance providers of distinguishable Muamalah contracts (wakalah and hybrid), moderated by the length of senior leaders’ servicing time.

Design/methodology/approach

The full sample includes 21 listed Takaful companies divided into two subsamples – 12 insurance wakalah contracts offered in the South East Asian (SEA) countries and 9 insurance hybrid contracts offered in the Gulf Cooperation Council (GCC) countries over the period of 2012–2018. The methodology is informed by Baron and Kenny’s (1986) moderation process approach.

Findings

The results of this study indicate that the larger the size of directors’ board and the higher the number of outside directors, the greater the SEA wakalah Takaful insurance performance. Nondual functions and a larger size of Sharia board along with a highly-concentrated ownership structure have a positive effect on the Takaful insurance performance in both the SEA and GCC regions. Furthermore, the higher the Sharia board meetings, the higher performance of all types of Takaful insurance providers in the sample. As for the moderating effect of the director’s seniority, it is found to negatively moderate the relationship between the governance mechanisms and the Takaful performance in both regions.

Originality/value

This paper highlights that the leader’s entrenchment stands as an obstructing factor impeding the governance mechanisms from enhancing Takaful performance. Thus, it serves to contribute to clearly understanding the appropriate governance mechanisms usefully fit for a Takaful insurance effective performance, applying the wakalah and hybrid contract types. Such a contribution should be appreciated by the concerned regulators engaged in setting up limited serving periods for the directors whereby the Takaful insurance practice could be efficiently managed and supervised.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 2
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 17 May 2021

Salim Chouaibi, Yamina Chouaibi and Ghazi Zouari

The aim of this study is to analyze the possible relationship between board characteristics and integrated reporting quality in an international setting.

Abstract

Purpose

The aim of this study is to analyze the possible relationship between board characteristics and integrated reporting quality in an international setting.

Design/methodology/approach

To test the study's hypotheses, the authors applied linear regressions with a panel data, and the authors collected data from the Thomson Reuters database (ASSET4) and from the annual reports from European companies to analyze data of 253 listed companies selected from the environmental, social and governance (ESG) index between 2010 and 2019.

Findings

The reached empirical results prove to indicate well that both of the board size, independence and diversity appear to have a significantly positive effect on the integrated reporting quality. Noteworthy, also, is the fact that the appointment of an independent nonexecutive chairman is positively associated with the integrated reporting related quality, and holds for firms with a nonindependent chairman.

Practical implications

Beyond the theoretical implications, our study also has several practical implications. These findings are particularly relevant for managers, shareholders, and policymakers. Thus, stakeholders should consider the accuracy of disclosure in determining the optimal reporting strategy (reducing risk estimation, returns' stock volatility, increasing long-term shareholder value and reputation of the firm).

Originality/value

This article is motivated by the low number of works in the context about the corporate social responsibility and sustainability issues. It makes an important contribution to the academic literature by adding to the limited body of research on integrated reporting and corporate governance in an ESG company setting. The study is also important for practitioners seeking to improve the quality of their integrated reports.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 11 February 2019

Jamel Chouaibi, Ghazi Zouari and Sawssen Khlifi

The purpose of this paper is to examine the effect of R&D intensity on the real earnings management index.

Abstract

Purpose

The purpose of this paper is to examine the effect of R&D intensity on the real earnings management index.

Design/methodology/approach

The authors proceed with dividing the full sample into two sub-samples, in accordance with the R&D associated intensity median. The final test sample proves to involve 73 firms along with 949 relating observations, while the control sample appears to enclose 65 firms and 845 relevant observations for the period 2000-2012.

Findings

The main finding of this study is the great influence of R&D intensity on the real earnings management index on the test sample. Accordingly, the proposed hypothesis stipulating that the innovative firms engage in upward real earnings management turns out to be strongly supported.

Research limitations/implications

The study was conducted using robust methods to test the effect of R&D intensity on the real earnings management index. The generalized least squares method was used to fit panel data and overcome heteroscedasticity and autocorrelation problems. The aim of the study was to prove the great effect of R&D intensity on the real earnings management index. As this study was based on data from American companies, the results cannot be generalized to all contexts.

Originality/value

This paper differs from previous work and tests the effect of innovative firms, the market-to-book ratio on real earnings management. The findings of this study will enrich the literature on real earnings management by suggesting R&D intensity that can significantly enhance the real earnings management index. Therefore, these findings will be helpful to investors, managers and regulators because they have implications for the interactive decision-making process.

Details

International Journal of Law and Management, vol. 61 no. 1
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 8 February 2022

Ghazi Zouari and Kawther Dhifi

Within the theoretical framework of corporate governance, the article aims to examine the impact of ownership structure on the level of disclosure of financial and…

Abstract

Purpose

Within the theoretical framework of corporate governance, the article aims to examine the impact of ownership structure on the level of disclosure of financial and non-financial information in integrated reporting (IR), and the effect is sensitive to national legal systems.

Design/methodology/approach

Regressions on panel data are used to study the impact of ownership structure on IR. The present empirical study was based on a sample of 431 European firms belonging to common or civil law for the period spanning 2012 and 2019.

Findings

The results of the linear regressions corroborate the existence of relationships between the ownership concentration, institutional ownership as well as managerial ownership and IR.

Research limitations/implications

The study have limitations as follows: the role of the ownership structure studied here, the model should incorporate other internal and external control mechanisms to represent reality more fully. The mechanisms include board characteristics, financial market, labor market, the goods and services market, etc. that affect managerial latitude and, therefore, the adoption of IR. Finally, the authors will consider future theoretical and empirical improvement. For example, it would be interesting to extend the theoretical framework to the contributions of cognitive governance and to empirically examine the modeling with a larger sample of firms, including an international comparison.

Originality/value

The study provides evidence as to the disclosure of IR and ownership structure. The originality/value chapter highlights the global need for a generally accepted set of standards for sustainability and IR practices.

Details

Corporate Communications: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 6 April 2012

Hamadi Fakhfakh, Ghazi Zouari and Rim Zouari‐Hadiji

This research attempts to explain the decentralization of investment decision. To do so, it highlights the role of the internal capital market in the allocation of

2386

Abstract

Purpose

This research attempts to explain the decentralization of investment decision. To do so, it highlights the role of the internal capital market in the allocation of decision rights and control as a factor explaining the effectiveness of investment management. The authors aim to apply the theory of the organizational architecture to the investment decision to understand its complexity and its efficiency.

Design/methodology/approach

An empirical test was realized on a sample of 63 Tunisian firms using the methods of canonical correlation and cross tabulations.

Findings

Even if organizational complexity has a linear and negative impact (opposite sign to what is expected) on the investment decision decentralization, which creates value, it appears that there is a positive association with the uncertainty of the environment, and a negative one with the scarcity and sharing of financial resources between units on the internal capital market.

Originality/value

The authors show that the role played by the internal capital market in the value creating requires the setting of a centralized organizational structure.

Details

Corporate Governance: The international journal of business in society, vol. 12 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

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