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1 – 10 of 591This study aims to explore the relationship between risk governance characteristics (chief risk officer [CRO], chief financial officer [CFO] and senior directors [SENIOR]) and…
Abstract
Purpose
This study aims to explore the relationship between risk governance characteristics (chief risk officer [CRO], chief financial officer [CFO] and senior directors [SENIOR]) and regulatory adjustments (RAs) in Organization for Economic Cooperation and Development public commercial banks.
Design/methodology/approach
Using principal component analysis (PCA) and regression models, the research analyzes a representative data set of these banks.
Findings
A significant negative correlation between risk governance characteristics and RAs is found. Sensitivity analysis on the regulatory Tier 1 capital ratio and the total capital ratio indicates mixed outcomes, suggesting a complex relationship that warrants further exploration.
Research limitations/implications
The study’s limited sample size calls for further research to confirm findings and explore risk governance’s impact on banks’ capital structures.
Practical implications
Enhanced risk governance could reduce RAs, influencing banking policy.
Social implications
The study advocates for improved banking regulatory practices, potentially increasing sector stability and public trust.
Originality/value
This study contributes to understanding risk governance’s role in regulatory compliance, offering insights for policymaking in banking.
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Xiao-Ming Li and Mei Qiu
The purpose of this paper is to investigate the mechanism of transmitting economic policy uncertainty (EPU) shocks to capital structure.
Abstract
Purpose
The purpose of this paper is to investigate the mechanism of transmitting economic policy uncertainty (EPU) shocks to capital structure.
Design/methodology/approach
The authors adopt a novel approach that bridges the asset pricing implications of EPU and the debt-financing decisions of Chinese firms by introducing a variable “policy-risk-induced equity return” (PRER). PRER is the product of the EPU beta and the EPU shock. Differentiating firms as per the signs of the EPU beta helps to shed light on the deep questions of whether their respective leverage targets and speeds of adjustment are different and how the targets and speeds are determined.
Findings
The empirical evidence shows that it is the equity market that channels EPU shocks to capital structure through PRER in China. Firms with positive (negative) EPU betas have PRER impact negatively (positively) the leverage target, conforming to the market-timing theory. EPU and non-policy uncertainty shocks cause the speed of adjustment to change over time. Overall, the intertemporal relation between EPU and leverage is negative. These results are robust to alternative leverage measures and after controlling for non-policy uncertainty shocks and conventional firm characteristics and have implications for academic research, policymaking, market stability, and corporate financing.
Originality/value
This study is the first to probe for, and provide insights into, the underlying reason why EPU impacts capital structure by connecting asset pricing to corporate financing for a large sample of Chinese publicly traded firms.
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Christiana Osei Bonsu, Chelsea Liu and Alfred Yawson
The role of chief executive officer (CEO) personal characteristics in shaping corporate policies has attracted increasing academic attention in the past two decades. In this…
Abstract
Purpose
The role of chief executive officer (CEO) personal characteristics in shaping corporate policies has attracted increasing academic attention in the past two decades. In this review, the authors synthesize extant research on CEO attributes by reviewing 232 articles published in 29 journals from the accounting, finance and management literature. This review provides an overview of existing findings, highlights current trends and interdisciplinary differences in research approaches and identifies potential avenues for future research.
Design/methodology/approach
To review the literature on CEO attributes, the authors manually collected peer-reviewed articles in accounting, finance and management journals from 2000 to 2021. The authors conducted in-depth analysis of each paper and manually recorded the theories, data sources, country of study, study period, measures of CEO attributes and dependent variables. This procedure helped the authors group the selected articles into themes and sub-themes. The authors compared the findings in various disciplines and provided direction for future research.
Findings
The authors highlight the role of CEO personal attributes in influencing corporate decision-making and firm outcomes. The authors categorize studies of CEO traits into three main research themes: (1) demographic attributes and experience (including age, gender, culture, experience, education); (2) CEO interactions with others (social and political networks) and (3) underlying attributes (including personality, values and ideology). The evidence shows that CEO characteristics significantly affect a wide range of specific corporate policies that serve as mechanisms through which individual CEOs determine firm success and performance.
Practical implications
CEO selection is one of the most crucial decisions made by corporations. The study findings provide valuable insights to corporate executives, boards, investors and practitioners into how CEOs’ personal characteristics can impact future firm decisions and outcomes that can, in turn, inform the high-stake process of CEO recruitment and selection. The study findings have significant practical implications for corporations, such as contributing to executive training programs, to assist executives and directors attain a greater level of self-awareness.
Originality/value
Building on the theoretical foundation of upper echelons theory, the authors offer an integrated theoretical framework to consolidate existing empirical research on the impacts of CEO personal attributes on firm outcomes across accounting and finance (A&F) and management literature. The study findings provide a roadmap for scholars to bridge the interdisciplinary divide between A&F and management research. The authors advocate a more holistic and multifaceted approach to examining CEOs, each of whom embodies a myriad of personal characteristics that comprise their unique identity. The study findings encourage future researchers to expand the investigation of the boundary conditions that magnify or moderate the impacts of CEO idiosyncrasies.
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Carolina Yukari Veludo Watanabe, Eduardo Henrique Diniz and Eusebio Scornavacca
This paper aims to identify the role of blogs in helping women victims of intimate partner sexual violence to restore their self-integrity.
Abstract
Purpose
This paper aims to identify the role of blogs in helping women victims of intimate partner sexual violence to restore their self-integrity.
Design/methodology/approach
The authors’ research uses an interpretive stance, supported by motivational and “self” theories to analyze 33 blogs reporting the experiences of women in Brazil who suffered sexual violence perpetrated by an intimate partner.
Findings
This study identifies the reasons why women who suffer violence from intimate partners write blog posts. It also develops an analytical framework that bridges the gap between the design and use of IT-artifacts and the context of sexual violence from an intimate partner. Women who suffer violence from intimate partners look for blogs in order to find a safe space for expression, a knowledge hub and a social support network. Blogs play a pivotal role in supporting the journey of reconstructing their self-integrity.
Research limitations/implications
The results help to understand the role of blogs in helping victims in vulnerable situations trying to restore their self-integrity. It also contributes to improve the design and functionality of such platforms as an important resource for social support networks.
Practical implications
This study shows the positive impact of blogs as a tool to support victims in the process of restoring their self-integrity.
Social implications
This study aims to promote the use of digital artifacts such as blogs as a complementary instrument to fight violence against women.
Originality/value
The analytical framework used in this paper helps to understand the role of IT-artifacts in the context of sexual violence from an intimate partner.
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Aimee Riedel, Amanda Beatson, Asha Worsteling, Rory Francis Mulcahy and Byron W. Keating
The current research aims to introduce the concept of frontline employee (FLE) vulnerability and examine its antecedents and consequences using a framework grounded in Job…
Abstract
Purpose
The current research aims to introduce the concept of frontline employee (FLE) vulnerability and examine its antecedents and consequences using a framework grounded in Job Demands-Resource theory (JD-R).
Design/methodology/approach
A systematic review and meta-analysis guided by PRISMA is utilized to review previous FLE literature (204 studies) and develop a conceptualization of FLE vulnerability. The meta-analysis then examines the antecedents and consequences of FLE vulnerability and provides generalizable findings including the identification of critical areas for future research.
Findings
The meta-analysis provided support for the proposed conceptualization of FLE vulnerability. Specifically, job demands and individual characteristics were observed to increase FLE vulnerability, conceptualized as an individual's susceptibility to experience state-based harm. Job resources were seen to minimize FLE susceptibility to vulnerability. FLE vulnerability was also observed to significantly strengthen negative outcomes and decrease positive outcomes.
Originality/value
This research addresses calls for greater investigation into how negative events may impact FLE vulnerability. This is achieved by defining FLE vulnerability as a concept which represents one's susceptibility to experience state-based harm as a result of job and/or individual characteristics. The research also provides greater understanding of the health impairment process within JD-R through the introduction and expanded definition of harm that moves beyond physical considerations to also include emotional and psychological harms. Finally, the research adds to the small body of meta-analytic research in the field of service management.
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Md. Fazla Mohiuddin and Ida Md Yasin
The purpose of this paper is to inform scholars and practitioners about the current body of knowledge on the role of social capital in scaling social impact since these concepts…
Abstract
Purpose
The purpose of this paper is to inform scholars and practitioners about the current body of knowledge on the role of social capital in scaling social impact since these concepts are still poorly understood and literature is fragmented despite their importance.
Design/methodology/approach
A systematic literature review of 27 highly relevant studies in leading journals is conducted, and the results are synthesized into an integrative theoretical framework.
Findings
The framework identifies possible dependent, independent, mediating and moderating variables which conceptualize the role of social capital in scaling social impact.
Originality/value
To the best of the authors’ knowledge, this is the first study to systematically map social capital’s role in scaling social impact literature with the help of an integrative theoretical framework. For researchers, this framework would help by providing a shared frame of reference to conceptualize the role of social capital in scaling social impact and identify future research directions. Practitioners can use the findings of this review as a guide while designing and implementing scaling social impact programs.
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Abdul Waheed, Hamid Mahmood and Jun Wen
The purpose of this research is to investigate how the negative effect of litigation risk on firm performance could be controlled through the channel of voluntary disclosure and…
Abstract
Purpose
The purpose of this research is to investigate how the negative effect of litigation risk on firm performance could be controlled through the channel of voluntary disclosure and under the condition of institutional ownership.
Design/methodology/approach
To get the objectives, the study analyzed an unbalanced panel of 918 non-financial listed Chinese firms from 2010 to 18. To capture any expected unobserved heteroscedasticity and autocorrelation in the unbalanced sample, the authors have applied fixed effect regression with robust standard errors clustered at the firms' levels as suggested by Newey and West (1987).
Findings
The research provides that the good disclosure practices and presence of institutional ownership in corporations raise the trust of the investors by making the corporate operation clear in the eyes of the stakeholders. This increases the corporate credibility and as consequence corporations are protected against litigation risk. Thus, in the light of the information asymmetry and signaling theories, voluntary disclosure practices, and financial institutions' ownership, bridges the information gap and transmit a positive signal in the market regarding the better financial performance of the corporations.
Research limitations/implications
These findings are helpful for the corporate managers for effective strategic decisions, regulatory authorities for policy formulation, and individual investors for developing a diversified investment portfolio.
Originality/value
By applying the mediation and moderation effects, the research enhances the understanding of the underlying causes of the association between a firm's litigation risk and its performance. The current research contributes to the literature, that agency issues which create litigation risk could be settled internally with voluntary disclosure practices and externally with institutional ownership.
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The purpose of this paper is to examine to which extent ownership and board structure improve financial institutions’ credit ratings.
Abstract
Purpose
The purpose of this paper is to examine to which extent ownership and board structure improve financial institutions’ credit ratings.
Design/methodology/approach
Ordered Probit regression models were used to examine the association between corporate governance attributes and banks’ credit ratings. The sample consists of 97 publicly traded financial institutions on Gulf Cooperation Council (GCC) stock exchange markets and cover the period 2010–2019. All GCC countries were considered in this study which are United Arab Emirates, Saudi Arabia, Bahrain, Oman, Kuwait and Qatar.
Findings
The results show that banks’ credit ratings are positively associated with the size of the board of directors and with the number of female directors serving in the board of directors. And it is negatively associated with the frequency of board meetings. Furthermore, this study finds evidence that nonbank financial institutions’ credit ratings are positively associated with CEO duality and with frequency of board meetings. Also, this study shows that their credit ratings are negatively associated with the ownership percentage held by the major five shareholders and with the number of board members serving in the board of directors.
Originality/value
Unlike previous research, this study focuses on the effect of the role of two different corporate governance dimensions, namely, ownership and board structure on the rating of financial institutions. This paper contributes to the extant literature in various ways. It bridges the gap of this topic in the GCC region. And, unlike previous research, this study focused on the financial sector and divided the sample into banks and other financial institutions to examine both subsamples separately. Also, this study introduced new ownership and board structure variables for the purpose of investigating the impact of corporate governance on financial institutions’ credit ratings such as the presence of women in the board of directors.
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Ameneh Bazrafshan, Naser Makarem, Reza Hesarzadeh and Wafaa SalmanAbbood
This study investigates the association between managerial ability and earnings quality in firms listed on the Iraq Stock Exchange and how the emergence of the Islamic State of…
Abstract
Purpose
This study investigates the association between managerial ability and earnings quality in firms listed on the Iraq Stock Exchange and how the emergence of the Islamic State of Iraq and Syria (ISIS) influences the association.
Design/methodology/approach
This study uses a sample of firms listed on the Iraq Stock Exchange over the period 2012–2018. Managerial ability is quantified using data envelopment analysis, and earnings quality is measured by earnings restatement, earnings persistence, accruals quality and earnings response coefficient. Panel regression analysis is used to examine the research hypotheses.
Findings
The findings indicate that managerial ability positively affects earnings quality of Iraqi firms and that ISIS weakens the relationship between managerial ability and earnings quality. These findings are robust to the alternative measures of managerial ability, as well as to various approaches used to address endogeneity including propensity-score matching and a difference-in-differences analysis.
Originality/value
This study provides insight into the impact of managerial ability on earnings quality in an under-studied emerging market. Furthermore, this study broadens the existing literature about the financial consequences of a modern terrorist group, ISIS.
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This study aims to predict the consequences associated with the propagation of the flood wave that may occur after the failure of the Taksebt dam and suggest an efficient…
Abstract
Purpose
This study aims to predict the consequences associated with the propagation of the flood wave that may occur after the failure of the Taksebt dam and suggest an efficient emergency action plan for mitigation purposes.
Design/methodology/approach
To achieve the objectives of this study, the hydrodynamic model HEC-RAS 2D was used for the flood routing of the dam-break wave, which gave an estimate of the hydraulic characteristics downstream the Taksebt dam.
Findings
Geospatial analysis of the simulation results conducted in a geographic information system (GIS) environment showed that many residential areas are considered to be in danger in case of the Taksebt dam-break event. Based on the obtained results, an emergency actions plan was suggested to moderate the causalities in the downstream area at risk.
Originality/value
Overall, this study showed that the integration of 2D hydraulic modeling and GIS provides great capabilities in providing realistic view of the dam-break wave propagation that enhances assessing the associated risks and proposing appropriate mitigation measures.
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