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1 – 10 of 20Sebastián Javier García-Dastugue and Horacio E. Rousseau
Managerial “awareness” of supply chain management (SCM) principles is a key antecedent of SCM adoption. However, supply chain awareness (SCA) provides fertile ground for further…
Abstract
Purpose
Managerial “awareness” of supply chain management (SCM) principles is a key antecedent of SCM adoption. However, supply chain awareness (SCA) provides fertile ground for further development. The authors combine extant research with the attention-based view of the firm to further develop SCA and theorize about its effect in an understudied context.
Design/methodology/approach
The authors combine SCA with supply chain orientation, of which awareness is central. The authors combine qualitative and archival data for a 10-year period to test SCA in nonprofits. SCA was measured unobtrusively to avoid respondent bias; then, the authors explore how SCA relates to revenue generation from services provided.
Findings
SCA correlates positively with revenue generation. Drawing on a contingency perspective, the authors test two moderators relevant to nonprofits. The positive effect of SCA on revenue is stronger for nonprofits collocated in cities with corporate headquarters but weaker for those with larger boards.
Research limitations/implications
The study further advances the notion of awareness for studying SCM phenomena and provides evidence of its relevance in the unexamined context of human services nonprofit organizations (NPOs). This work has implications for how attention to SCM principles shapes organizational outcomes, the factors that moderate these relationships and the importance of unobtrusively measuring awareness in SCM research. The authors used WayBack Machine to harvest websites. However, the quality and depth of text obtained prior to 2008 were lower than those of later years. Additionally, archival data for NPOs are limited.
Practical implications
Findings inform about the fit between nonprofit resources, type of board and fit with how to fund operations. This research provides an alternative way for policy makers to assess NPO capacity by focusing on the fundamental SCM concepts.
Social implications
The authors contribute to the dialogue about NPOs developing financial independence through revenue generation from services sold to end customers.
Originality/value
NPOs are seldom studied in SCM. This is an attempt to study NPOs by combining qualitative and quantitative data.
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Syed Tariq, Muhammad Adeel Zaffar, Yasir Riaz and Muhammad Naiman Jalil
Emergency health and humanitarian nonprofits work under volatile circumstances that strain nonprofits' financial resources. This study investigates the impact of revenue…
Abstract
Purpose
Emergency health and humanitarian nonprofits work under volatile circumstances that strain nonprofits' financial resources. This study investigates the impact of revenue composition on the financial health of these nonprofits and the impact of financial health on the likelihood of financial distress.
Design/methodology/approach
A sample of 11,335 emergency nonprofits from 2003 to 2020 was obtained through form 990 data and studied through a difference generalized method of moments (GMM) approach for the impact of revenue composition on financial health. The impact of financial health on financial distress was studied through panel logistics regression.
Findings
Revenue diversification adversely affects the financial health of nonprofit emergency health and humanitarian organizations contrary to the implications of modern portfolio theory. The financial health of nonprofit emergency health and humanitarian organizations is persistent through the significant positive effect of lags in most cases.
Originality/value
The emergency health subsector of nonprofits was studied separately due to the unique nature of the sectors' operations and operating environment. The impact of revenue composition was investigated on key dimensions of financial health. Omitted variable bias, simultaneity and dynamic endogeneity were handled through difference GMM.
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Grant Richardson, Grantley Taylor and Mostafa Hasan
This study examines the importance of income income-shifting arrangements of US multinational corporations (MNCs) on future stock price crash risk.
Abstract
Purpose
This study examines the importance of income income-shifting arrangements of US multinational corporations (MNCs) on future stock price crash risk.
Design/methodology/approach
This study employs a sample of 7,641 corporation-year observations over the 2005–2017 period and uses ordinary least squares regression analysis.
Findings
The authors find that the income-shifting arrangements of MNCs are positively and significantly associated with stock price crash risk after controlling for corporate tax avoidance and other known determinants of stock price crash risk in the regression model. This result is robust to alternative measures of stock price crash risk and income-shifting, and several endogeneity tests. The authors also observe that income-shifting arrangements increase stock price crash risk both directly and indirectly through the information opacity channel. Finally, in cross-sectional analyses, the authors find that the positive association between income-shifting and stock price crash risk is more pronounced for MNCs that use tax haven subsidiaries and have weak corporate governance mechanisms.
Originality/value
The authors provide new empirical evidence that MNCs will likely face significant capital market consequences regarding their income-shifting arrangements.
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Yang Lou, Yicheng Wang and Brian Wright
This study aims to propose a new conforming tax measure based on the work of Badertscher et al. (2019).
Abstract
Purpose
This study aims to propose a new conforming tax measure based on the work of Badertscher et al. (2019).
Design/methodology/approach
This study divides total tax avoidance/management (TM) into nonconforming and conforming portions through a regression. The residual of the regression is treated as the conforming tax measure. In addition, the new conforming tax measure is validated via three approaches. Then, this study examines the moderating effect of nonconforming earnings management (EM) on the relationship between conforming TM and firm performance.
Findings
The empirical results show that the model has stronger explanatory power than the model proposed by Badertscher et al. (2019). Additionally, the validation results show that the mean value of the conforming tax measure is lower in quasi-private corporations (financially constrained companies) than in matched public corporations (nonfinancially constrained companies), and firms under high market capital pressure are less motivated to engage in conforming tax practices. Furthermore, nonconforming EM positively moderates the conforming tax–ROA association, implying that nonconforming EM can reduce financial reporting costs resulting from conforming tax practices.
Originality/value
This study contributes to conforming tax research in the following ways. First, this study proposes a new conforming tax measure by substituting the cash book tax difference (BTD) for the BTD in the model of Badertscher et al. (2019) (“BKRW”). Second, this study demonstrates theoretically why the cash BTD should outperform the BTD in computing the BKRW conforming tax measure and confirm this empirically. Third, this study presents a three-way conceptual schema that divides corporations into two groups along each of three tax-relevant dimensions. The group of firms that use both conforming and nonconforming tax strategies have different characteristics compared to the other group. This study also validates the conforming tax measure across the two-group dichotomies.
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Carlos Fernando Ordóñez Vizcaíno, Cecilia Téllez Valle and Pilar Giráldez Puig
The aim of this paper is to analyse the spillover effects of microcredit on the economy of Ecuador, with a particular focus on its potential as a poverty alleviation mechanism.
Abstract
Purpose
The aim of this paper is to analyse the spillover effects of microcredit on the economy of Ecuador, with a particular focus on its potential as a poverty alleviation mechanism.
Design/methodology/approach
To address our research questions, we take into account the distance between cantons (Ecuador’s own administrative distribution) by adopting a spatial autoregressive (SAR) model. To this end, a database will be constructed with macroeconomic information about the country, broken down by canton (administrative division of Ecuador), and in a 2019 cross section, with a total of 1,331 microcredit operations in all 221 of Ecuador’s cantons.
Findings
We find a positive effect of microcredit on these neighbouring regions in terms of wealth generation.
Research limitations/implications
We acknowledge that this study is limited to Ecuadorian cantons. Nonetheless, it is crucial to emphasize that focussing on an under-represented developing country like Ecuador adds significant value to the research.
Practical implications
Facilitating access to microcredit is one of the main solutions to address the goals proposed in the sustainable development goals (SDGs).
Social implications
Microcredit activity contributes to the creation of value and wealth in Ecuador, exerting a spillover effect in neighbouring areas that can generate positive multiplier effects and alleviate poverty. For all of the above reasons, our proposal for the country is to support and promote microcredit as one of the main solutions to address the goals proposed in the SDGs.
Originality/value
The novelty of this study lies in the use of spatial econometrics to observe the indirect effects of microcredit on the regions bordering the canton in which it was issued, thus examining the spatial effects of microcredit on wealth distribution.
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Paul L. Baker, Peiwei Lyu and Pietro Perotti
This paper examines the relationship between tax avoidance and accounting comparability. The authors argue that aggressive tax behavior impairs the comparability of financial…
Abstract
Purpose
This paper examines the relationship between tax avoidance and accounting comparability. The authors argue that aggressive tax behavior impairs the comparability of financial statements by altering the accounting function, which maps economic events into accounting data.
Design/methodology/approach
The empirical analysis is based on a large sample of United States (US) firms. The authors use raw and industry-adjusted effective tax rates (ETRs) to proxy tax avoidance. The authors use the measure of accounting comparability developed by De Franco et al. (2011), which aims to capture the similarity of the accounting function.
Findings
The authors find that firms with more aggressive tax avoidance strategies have substantially lower accounting comparability. The evidence also shows that the negative effect of tax avoidance on accounting comparability is driven by firms with aggressive tax planning strategies beyond the industry norm. Furthermore, using an alternative measure of accounting comparability as a function of pre-tax income, the authors continue to find evidence of the negative effect of tax avoidance behavior. Importantly, this provides evidence that the effect of aggressive tax planning is not limited to the reported tax expense, but affects the comparability of the overall financial reporting system.
Originality/value
The authors identify a new potential cost of tax aggressive activities, being the loss of accounting comparability as driven by tax aggressive activities. The results contribute to the literature on the costs of tax avoidance and on the determinants of accounting comparability.
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Cari Burke-Kolehmainen and Melissa Intindola
Within the context of the nonprofit resiliency framework, the authors use nonprofit functional expenses and contribution revenue to explore how the COVID-19 pandemic affected the…
Abstract
Purpose
Within the context of the nonprofit resiliency framework, the authors use nonprofit functional expenses and contribution revenue to explore how the COVID-19 pandemic affected the ability of nonprofits in different subsectors to carry out their mission, as well as their ability to “pivot” fundraising strategies to integrate social media and digital engagement.
Design/methodology/approach
The authors use IRS form 990 return data for organizations with a year-end return that includes at least six months of COVID-19 impact (“Wave 1 Effects” period) and also have a prior-year return (“Business as Usual” period). The authors use Wilcoxon signed rank tests to examine whether there are differences in our variables of interest between the two periods.
Findings
While the majority of nonprofits in most subsectors experienced a significant decrease in program spending, fundraising spending and fundraising efficiency ratios between the two time periods, the authors found variation in the change in contribution revenue and fundraising ratio between the two periods between subsectors. The authors also find that the percentage of nonprofits able to “pivot” their fundraising strategies varies by subsector between 13.33 and 31.23%.
Originality/value
This paper provides new information regarding the pandemic's initial effect on nonprofit program and fundraising spending, the related contribution revenue and the ability of nonprofits to “pivot” fundraising to remote strategies. The authors propose a more robust fundraising efficiency measure and a new measure indicating a nonprofit's “ability to pivot” their fundraising strategy. The authors encourage future researchers to conduct further longitudinal studies to understand how these effects may continue or change.
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Chunli Ji, Catherine Prentice, Erose Sthapit and Inman Lei
Using the analogy of “If you build it, they will come” from the movie Field of Dreams, this study aims to draw on relational signaling and commitment–trust theories to examine the…
Abstract
Purpose
Using the analogy of “If you build it, they will come” from the movie Field of Dreams, this study aims to draw on relational signaling and commitment–trust theories to examine the role of different types of trust (cognitive, affective and relational) in the relationship between relational-encounter quality and customer loyalty to service employees and to the organization in the case of an integrated casino resort. The study confirms that building it (trust), they (customers) will come to the casino exhibited in their loyalty to casino hosts and their affiliated casinos.
Design/methodology/approach
The study was conducted with very important person (VIP) customers who have a designated VIP host to provide them with personal services at an integrated casino resort in Macau. The questionnaire was distributed to the respondents by VIP hosts using WeChat and Tencent QQ.
Findings
The study shows that different types of trust (cognitive, affective and relational) play a significant mediation role in the relationship between relational-encounter quality and the customers’ loyalty to the hosts and their affiliated casinos.
Originality/value
To the best of the authors’ knowledge, this study is the first to investigate the roles of different types of trust (cognitive, affective and relational) in the relational encounter between casino hosts and VIP customers and provides insights into the link between service employees and their firm through the nurturing of the service encounter with the firm’s key accounts.
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This paper aims to address the fundamentals of tax planning and seeks to focus on the opportunities and root causes for tax planning.
Abstract
Purpose
This paper aims to address the fundamentals of tax planning and seeks to focus on the opportunities and root causes for tax planning.
Design/methodology/approach
The paper reviews the current state of tax planning with case studies that reveal fundamental statutory structural opportunities.
Findings
While some, possibly many, tax advisers lack integrity and recommend tax structures to their clients that are inconsistent with reasonable interpretations of the tax law, most advisers, even very aggressive and creative advisers, probably do not. The paper suggests that it may be futile to seek to deter tax professionals from designing and marketing tax plans unless legislation makes tax advisers jointly responsible with their clients for their clients’ tax underpayments.
Practical implications
Short of such a radical approach, governments must commit first to altering the basic structure of their tax laws to make aggressive tax planning uninviting.
Originality/value
The paper offers original insights into the inseparability of the legislative process from the creation of unnecessary tax planning opportunities.
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Domenico Campa, Alberto Quagli and Paola Ramassa
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Abstract
Purpose
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Design/methodology/approach
This literature review includes both qualitative and quantitative studies, based on the idea that the findings from different research paradigms can shed light on the complex interactions between different financial reporting controls. The authors use a mixed-methods research synthesis and select 64 accounting journal articles to analyze the main proxies for fraud, the stages of the fraud process under investigation and the roles played by auditors and enforcers.
Findings
The study highlights heterogeneity with respect to the terms and concepts used to capture the fraud phenomenon, a fragmentation in terms of the measures used in quantitative studies and a low level of detail in the fraud analysis. The review also shows a limited number of case studies and a lack of focus on the interaction and interplay between enforcers and auditors.
Research limitations/implications
This study outlines directions for future accounting research on fraud.
Practical implications
The analysis underscores the need for the academic community, policymakers and practitioners to work together to prevent the destructive economic and social consequences of fraud in an increasingly complex and interconnected environment.
Originality/value
This study differs from previous literature reviews that focus on a single monitoring mechanism or deal with fraud in a broadly manner by discussing how the accounting literature addresses the roles and the complex interplay between enforcers and auditors in the context of accounting fraud.
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