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1 – 10 of 19
Article
Publication date: 31 January 2022

Shaban Mohammadi and Hadi Saeidi

The purpose of this study is to investigate the effect of corporate social responsibility (CSR) on financial accounting concepts (including the stock return, real earnings…

Abstract

Purpose

The purpose of this study is to investigate the effect of corporate social responsibility (CSR) on financial accounting concepts (including the stock return, real earnings management, information asymmetry and financial performance) in Iranian companies listed in stock exchanges.

Design/methodology/approach

This is descriptive-correlational and applied research. The statistical population of this research is all companies listed on Tehran Stock Exchange, and the research period is from 2012 to 2018. Using the screening method a sample of 150 companies was selected. Multivariate regression and the software Eviews 10 were used for data analysis and hypothesis testing.

Findings

The results indicated that CSR has a significant effect on stock return; however, it does not have a significant effect on real earnings management. CSR has a significant effect on information asymmetry and financial performance.

Originality/value

The present study is the first research conducted on CSR and financial concepts in Iran. The results of this study contribute to the literature by introducing social responsibility to financial accounting variables and provide suggestions for capital market participants. Social responsibility has received growing attention from many companies and managers, as it influences the interests of indirect stakeholders in addition to direct ones. CSR reporting can enhance the development of scientific and cultural skills by promoting a culture of knowledge acquisition and knowledge creation, leading to a reduced gap between the expectations of economic enterprises and the community.

Details

Sustainability Accounting, Management and Policy Journal, vol. 13 no. 3
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 16 June 2021

Hadi Saeidi

This study aims to investigate the impacts of the psychological behaviors of managers, including entrenchment, myopia, narcissism and overconfidence, on money laundering…

Abstract

Purpose

This study aims to investigate the impacts of the psychological behaviors of managers, including entrenchment, myopia, narcissism and overconfidence, on money laundering at Iranian companies listed on the Tehran Stock Exchange.

Design/methodology/approach

The present study is descriptive-correlational in terms of methodology and applied research in terms of objectives. The statistical population consisted of all companies listed on the Tehran Stock Exchange during 2013–2019. A total of 150 companies were selected as samples via screening. Logistic regression was used to analyze the data and test the hypotheses in EViews v10.

Findings

The findings revealed that management entrenchment, managerial myopia, managerial narcissism and managerial overconfidence have significant impacts on money laundering.

Originality/value

This study pioneer investigating the impacts of psychological behaviors among managers on money laundering in Iran. As an economic crime, money laundering poses an adverse impact on economic growth in countries. The continuous monitoring of manager performance and the deployment of performance measurement systems could prevent the negative impacts of manager behavior on money laundering.

Details

Journal of Money Laundering Control, vol. 25 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 9 April 2020

Shaban Mohammadi, Hadi Saeidi and Nader Naghshbandi

The purpose of this study is to examine the effect of board characteristics on money laundering in Iranian listed companies.

Abstract

Purpose

The purpose of this study is to examine the effect of board characteristics on money laundering in Iranian listed companies.

Design/methodology/approach

This was a descriptive-correlational study, and in terms of purpose, it was an applied research. The statistical population of this study was all companies listed in Tehran Stock Exchange during the years 2012-2018. A sample of 150 companies was selected by screening method. Data analysis and hypothesis testing were performed using logistic regression and Eviews 10.

Findings

The results indicated that the board bonus and CEO duality (chief executive officer duality) had a significant effect on money laundering. CEO gender also had a significant effect on money laundering.

Originality/value

Sound management of risks related to money laundering by the board of directors is associated with stability, soundness and overall health of a country's financial system, which enables the integrity of the international financial system by meeting the Basel Committee goals, including strengthening the regulations, monitoring and improving current procedures, promoting financial stability and maintaining and enhancing a good corporate reputation; however, banks and other financial institutions are exposed to more serious risks, especially the reputation risk, operational risk, etc., if management does not play an effective role in the fight against money laundering. If management considers efficient and risk-driven policies and procedures in the fight against money laundering, then many problems and losses as well as many costs, including failure to collect receivables and to bring legal proceedings, can be prevented.

Details

Journal of Money Laundering Control, vol. 23 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 19 August 2020

Shaban Mohammadi, Hadi Saeidi and Nader Naghshbandi

The purpose of this study is to investigate the effect of board and audit committee characteristics on corporate social responsibility (CSR) in Iranian companies listed in…

1316

Abstract

Purpose

The purpose of this study is to investigate the effect of board and audit committee characteristics on corporate social responsibility (CSR) in Iranian companies listed in stock exchanges.

Design/methodology/approach

This is a descriptive-correlational and an applied research. The statistical population of this research is all companies listed in Tehran Stock Exchange and the research period is from 2012 to 2018. Using screening method a sample of 150 companies was selected. Multivariate regression and the software Eviews 10 were used for data analysis and hypothesis testing.

Findings

The results indicated that board size had a significant effect on CSR; board independence had a significant effect on CSR; managerial ownership did not have a significant effect on CSR; CEO duality did not have a significant effect on CSR; audit committee size had a significant effect on CSR; audit committee independence had a significant effect on CSR; and financial expertise of audit committee members had a significant effect on CSR.

Originality/value

The present study is the first research performed on the effect of board and audit committee characteristics on CSR in Iran. The results of this study contribute to the literature on the effect of board and audit committee characteristics on CSR and provide suggestions for capital market participants. CSR helps reduce asymmetric distribution of information among the internal and external organizational entities and reduce agency problems and conflicts among different groups. Based on the results, an effective audit committee as an effective mechanism enhances the credibility of financial and non-financial reporting such as social responsibility, which means that an effective audit committee can improve the level of voluntary disclosure of information through effective oversight of the reporting process. It is also suggested that companies focus on audit committee characteristics to increase the level of CSR.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 8
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 9 November 2022

Abbas Ali Mohammed and Hadi AL-Abrrow

In this study, leadership, social and technical system and organizational behavior theories were used to test the research model, consisting of six variables. The purpose…

Abstract

Purpose

In this study, leadership, social and technical system and organizational behavior theories were used to test the research model, consisting of six variables. The purpose of this study was to observe the impact of leadership styles (i.e. transformational leadership and empowering leadership) on organizational performance and innovation. In addition, the mediating role of shared leadership and mediating role of organizational culture in the model were measured.

Design/methodology/approach

This study relied on a quantitative design, specifically, a questionnaire, to obtain data from 301 employees in the health sector (three public-sector hospitals in the Basra Governorate).

Findings

Data analysis results showed that most of the relationships in the research model were positive. In addition, the results demonstrated the importance of the mediating variable in strengthening the relationship between the independent and dependent variables. The results of this study also clearly depicted the role of the mediating variable. Theoretical and practical implications were discussed, and proposals for future studies were presented.

Originality/value

This research focused on the use of modern leadership styles, collected data on such styles and included them in one model to enhance organizational output. This study was conducted in the context of the Iraqi health sector and can be distinguished from other studies by its adoption of a large sample to obtain clear and important results, thereby making it an important reference for researchers to improve organizational performance.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 3 November 2022

Redhwan Al-Dhamari, Bakr Al-Gamrh, Omar Al Farooque and Elaigwu Moses

This study empirically investigates the role of product market competition and mature-stage firm life cycle on the relation between corporate social responsibility (CSR…

Abstract

Purpose

This study empirically investigates the role of product market competition and mature-stage firm life cycle on the relation between corporate social responsibility (CSR) and market performance in an emerging market context – Malaysia.

Design/methodology/approach

The authors construct a comprehensive CSR index toward the economy, environment and society (EES) and apply both Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) instrumental variables (IV) approaches to test the hypotheses of the study.

Findings

The authors find that EES-based CSR generally enhances firms' market performance; however, the level of product market competition undermines the market performance of socially and economically responsible firms. In addition, the study results indicate that mature-stage firm life cycle with more involvement in CSR activities shows better market performance. However, the endogeneity check of CSR suggests that both CSR and mature-stage firms are mutually exclusive in influencing market performance. The study findings are robust to alternative measures and different identifications of high and low default risk situations of sample firms.

Practical implications

This study carries practical policy implications for the listed firms, regulators and stakeholders in general. For example, regulatory bodies may promote greater involvement in CSR activities by listed companies in the Malaysian stock market. Investors and other market participants should be aware of factors influencing socially responsible firms' market performance such as the corporate life cycle and the level of competition in product markets.

Originality/value

This research work responds to the call of regulatory bodies in Malaysia at a time when the Malaysian economy is under threat of environmental distraction practices by the palm oil industry and import ban by the largest export market, i.e. the European Union by 2030. The study also contributes to the theoretical literature by refining the moderating role of product market competition and mature-stage life cycle on the relationship between CSR and market performance from the perspectives of resource-based and stakeholder theories in emerging economy settings.

Details

Asian Review of Accounting, vol. 30 no. 5
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 16 June 2021

Muhammad Farooq and Amna Noor

This study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange (PSX…

1300

Abstract

Purpose

This study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange (PSX) listed firms throughout 2008–2019.

Design/methodology/approach

The dynamic generalized method of moments (GMM) estimator is used to examine the impact of CSR on financial distress. The investment in CSR is measured through a multidimensional financial approach which comprises the sum of the contribution made by the company in the form of charitable donation, employees’ welfare and research and development, while the Altman Z-score is used as an indicator of financial distress. The higher the Z-score, the lower will be the probability of financial distress.

Findings

The authors find a significant positive impact of CSR on financial distress in GMM model. This finding is consistent with the shareholder view and over-investment hypothesis of CSR as management makes an investment in CSR to get personal benefits, which resultantly leads the firm toward financial distress state. Further, this positive relationship remains present for firms having strong involvement in foreign business through exports.

Research limitations/implications

Like other studies, the present study is not free from limitations. First, financial firms are skipped from the sample, although literature witnesses a lot of studies highlight the financial firms’ commitment to achieving CSR goals. Second, financial distress occurs in different stages, and this study fails to establish a linkage between CSR engagement at different stages of financial distress. In the future, researchers can make valuable addition by covering these missing links in present studies.

Practical implications

Findings suggest several practical implications. For policymakers, they should encourage firms to adopt more socially responsible behavior as it not only prevents them from distress but also comes with better investment behavior, minimize bankruptcies and make economies more strong and stable. Second, results suggest corporate managers emphasize socially responsible behavior as its benefits are beyond the “societal benefits” as it lessens financial distress through lower cost of debt, lesser financial constraints and reduced cost of information asymmetry, and it minimizes the cost of capital. Lastly, investors make risk premium assessments related to future earnings by determining the likelihood of financial distress in the future.

Originality/value

The study extends the body of existing literature on CSR and the likelihood of financial distress in Pakistan, which is according to the best knowledge of the authors, not yet studied before. The results suggest that policymakers may pay special attention to the quality of CSR while predicting corporate financial distress.

Details

Pacific Accounting Review, vol. 33 no. 3
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 22 July 2021

Muhammad Farooq, Amna Noor and Shahzadah Fahad Qureshi

The present study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange…

Abstract

Purpose

The present study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange (PSX) listed firms throughout 2008–2019.

Design/methodology/approach

Panel logistic regression (PLR) and the dynamic generalized method of moments (GMM) estimator are used to examine the impact of CSR on financial distress. The investment in CSR measures through a multidimensional financial approach which comprises the sum of the contribution made by the company in the form of charitable donation, employees’ welfare and research and development, whereas the Altman Z-score and ZM-Score are used as an indicator of financial distress. The higher the Z-score lower will be the probability of financial distress, whereas the higher ZM score shows a greater probability of financial distress risk.

Findings

The authors find a significant negative impact of CSR on financial distress in both PLR and GMM models. This finding is consistent with the stakeholder view of CSR, as an investment in CSR not only aligns the interest between shareholders and stakeholders but also mitigates the risk of financial distress as well.

Research limitations/implications

Like other studies, the present study is not free from limitations. First, financial firms skipped from the sample, although literature witnesses a lot of studies highlight the financial firms' commitment to achieving CSR goals. Second, financial distress occurs in different stages, the authors fail to establish linkage CSR engagements at different stages of CSR. In the future, researchers can make a valuable addition by covering these missing links in present studies.

Practical implications

The findings of this study provide more insight to corporate managers and investors about the association between the quality of investment in CSR and the degree of financial distress, concerning Pakistani firms. Furthermore, this study contributes to the existing literature by adding new evidence from developing countries such as Pakistan which are helpful for regulatory bodies and policymakers in the formulation of long-term CSR strategies to manage financial distress.

Originality/value

The study extends the body of existing literature on CSR and the likelihood of financial distress in Pakistan. The results suggest that policymakers may pay special attention to the quality of CSR while predicting corporate financial distress.

Details

Social Responsibility Journal, vol. 18 no. 5
Type: Research Article
ISSN: 1747-1117

Keywords

Content available
Book part
Publication date: 10 December 2018

Seyed Mohammad Moghimi

Abstract

Details

Principles and Fundamentals of Islamic Management
Type: Book
ISBN: 978-1-78769-674-7

Content available

Abstract

Details

Competitiveness Review: An International Business Journal , vol. 32 no. 3
Type: Research Article
ISSN: 1059-5422

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