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1 – 3 of 3Neef Alwadani, Habiba Al-Shaer and Khaldoon Albitar
This study aims to explore whether firms that have a sustainability committee operating on the board, publish separate sustainability reports that are externally assured by an…
Abstract
Purpose
This study aims to explore whether firms that have a sustainability committee operating on the board, publish separate sustainability reports that are externally assured by an independent external audit and have large and active boards are more likely to be engaged in environmental practices and have better environmental performance.
Design/methodology/approach
Based on a sample of firms listed on the Saudi Stock Exchange, covering the period 2014–2021, this study applies panel data models to examine the research hypotheses.
Findings
The findings show significant positive associations between the existence of a sustainability committee, the publication of separate sustainability reports and the independent external assurance of these reports and environmental performance. This study also finds that the composite internal governance index is significant and positively associated with environmental performance.
Practical implications
Policymakers should support the creation of a sustainability committee on the boards of Saudi firms and review its role and responsibilities. The findings of this study inform regulators of the importance of the existence of independent external assurance of the sustainability reports of Saudi firms to enhance the credibility and reliability of these reports. Managers need to establish devoted committees committed to sustainability-related tasks that help coordinate communications between the firm and stakeholders.
Originality/value
The Saudi Arabian Government has implemented a range of policies and initiatives aimed at improving environmental performance, which is a main focus of Saudi Vision 2030 to achieve environmental sustainability. Therefore, this study provides unique evidence and new insights on the impact of internal governance on corporate environmental performance in the Saudi context.
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Manirul Islam, John Slof and Khaldoon Albitar
This study examines the effects of firm size on financial reporting quality (FRQ) through the mediating effects of audit committee (AC) quality and internal audit function (IAF…
Abstract
Purpose
This study examines the effects of firm size on financial reporting quality (FRQ) through the mediating effects of audit committee (AC) quality and internal audit function (IAF) quality.
Design/methodology/approach
Based on data from a questionnaire survey and archival sources of non-financial companies listed on the Dhaka Stock Exchange (DSE), the authors perform both structural equational modeling and ordinary least squares (OLS) regression to test the developed hypotheses.
Findings
Results show that the firm size is positively related to IAF quality. Firm size, AC quality and IAF quality are significantly associated with abnormal accruals (FRQ). Moreover, the authors find a mediation effect of the IAF quality on the relationship between firm size and FRQ, while no mediation effect is observed for AC quality. Thus, the study advocates companies focus on AC quality and IAF quality to enhance FRQ as it has a significant impact on corporate disclosure and investor decisions.
Research limitations/implications
First, the study is restricted to the survey questions that cover particular areas of the AC and IAF. Second, the sample selection focuses on relatively big industries in terms of the number of firms and excludes small sectors.
Practical implications
The findings provide significant implications for professionals and policymakers in making regulatory reforms and revising existing policies to improve governance monitoring performance and FRQ.
Originality/value
To the best of the authors’ knowledge, this is the first study to explore the mediation effect of AC quality and IAF quality on firm size–FRQ nexus in a developing country.
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Husam Ananzeh, Malek Hamed Alshirah, Ahmad Farhan Alshira'h and Huthaifa Al-Hazaima
A key goal of this research is to examine empirically whether politically connected board members are likely to impact corporate philanthropy. A further goal of this study is to…
Abstract
Purpose
A key goal of this research is to examine empirically whether politically connected board members are likely to impact corporate philanthropy. A further goal of this study is to contribute to the existing literature by examining the moderating role of political connections on the relationship between family ownership and corporate donations.
Design/methodology/approach
Based on the content analysis approach, the authors determined the level of cash and in-kind donations made by a group of 94 non-financial Jordanian companies listed on the Amman Stock Exchange. This study examined 658 annual reports spanning over seven years from 2010 to 2016. Ordinary least squares regression (OLS) is used to test the study hypotheses. In addition, this study used the probit regression to validate those results reported by the OLS regression.
Findings
Compared to unconnected companies, politically connected companies in Jordan are more likely to donate to philanthropic causes. Moreover, the results revealed that the presence of significant family ownership shareholding in a firm can weaken the firm tendency to donate. Despite this, the regression analysis results indicate that family-controlled firms with political connections are more likely to engage in charitable giving activities compared to those without political nexuses.
Research limitations/implications
The study contributes to the conversation surrounding corporate giving and sheds light on the role political connections and ownership structure (particularly family-owned firms) play in affecting donations by firms.
Practical implications
Managers of Jordanian firms listed on the stock exchange can use the study's findings to make better decisions about their donations and other philanthropic activities.
Originality/value
This study is the first to examine the relationship between firm donations and political connections in Jordan, and how political nexuses can moderate the relationship between family ownership and corporate donations. Hence, it extends prior research significantly.
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