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1 – 10 of 48Nan Cao and Sai On Cheung
Voluntary participation (VP) has been identified as one of the characterizing features of mediation. This study aims to examine the value of VP in construction dispute mediation…
Abstract
Purpose
Voluntary participation (VP) has been identified as one of the characterizing features of mediation. This study aims to examine the value of VP in construction dispute mediation from two perspectives. Firstly, is VP a prerequisite of successful construction mediation. Secondly, does power asymmetry (PA) between the contracting parties marginalize the value of VP in fostering the use of mediation to resolve construction disputes.
Design/methodology/approach
Constructs of VP, PA and prerequisites of successful mediation were first developed. Principal component factor analysis was performed on data collected from the construction dispute resolution community to explore the underlying structure of the constructs. The relationships between the constructs were tested by structural equation modelling.
Findings
VP is found to be an important attribute of successful mediation. PA is also found to be inherent in construction contracting. This study identified three forms of PA: Resource, Information and Expectation. Moreover, this study found no conclusive empirical evidence to support that PA would marginalize the value of VP in fostering an attempt to construction dispute mediation. It is suggested that VP shall remain one of characterizing features of mediation.
Practical implications
The users, mediators and the judiciary should be aware of the importance of VP in mediation, irrespective of the use of mediation is contractual or court-encouraged. Although the presence of PA between the disputing parties, through participating voluntarily and ensuring the mediation process is flexible and fair, the chance of achieving a settlement would be enhanced.
Originality/value
VP has been viewed as one of the fundamentals of mediation. This study empirically supported this design concept. Furthermore, PA in construction contracting can be expressed as disparities in resource, information and expectation. Their existence presents no significant barrier to attempt of mediation. The flexible approach of mediation has been instrumental in overcoming the paradox between VP and PA. This study affirms the positive value of VP in fostering the use of construction dispute mediation.
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This study aims to examine the mediating role of audit seasonality on the association between audit fees and audit quality in Nigerian deposit money banks.
Abstract
Purpose
This study aims to examine the mediating role of audit seasonality on the association between audit fees and audit quality in Nigerian deposit money banks.
Design/methodology/approach
The sample comprises 14 banks with annual financial statements between 2008 and 2020. The modified Baron and Kenny’s (1986) causal mediation model by Iacobucci et al. (2007) through the use of bootstrapped partial least square structural equation modelling and Sobel’s (1986) z-test is adopted to achieve this study’s objective.
Findings
The results of the causal mediation analysis show evidence of a fully mediating role of audit seasonality in the association between audit fees and audit quality in the Nigerian banking industry.
Research limitations/implications
This study extends the body of knowledge by demonstrating how audit fees influence audit quality through audit seasonality as a mediator in line with the job demands-and resources and conservation of resources theories. Regulatory authorities should be wary of policies that will further increase the workload of already burdened personnel of audit firms as the uniform fiscal year-end of 31 December introduced in the Nigerian banking system has unintended consequences on audit fees and audit quality.
Originality/value
To the best of the author’s knowledge, this is one of the first studies to provide evidence on the indirect association between audit fees and audit quality.
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Grzegorz Zasuwa and Grzegorz Wesołowski
This study examines how potentially irresponsible banking operations affect organisational reputation. A moderated mediation model is applied to explain how major aspects of…
Abstract
Purpose
This study examines how potentially irresponsible banking operations affect organisational reputation. A moderated mediation model is applied to explain how major aspects of social irresponsibility affect the relationship between consumer awareness of allegedly irresponsible operations, blame and bank reputation. The empirical context is the Swiss franc mortgage crisis that affected the banking industry in most Central and Eastern European countries.
Design/methodology/approach
The research study uses data collected from a large survey (N = 1,000) conducted among Polish bank consumers, including those with mortgage loans in Swiss francs. To test the proposed model, the authors use Hayes' process macro.
Findings
The findings show that blame fully mediates the effects of corporate social irresponsibility (CSI) awareness on organisational reputation. Three facets of social irresponsibility moderate this relationship. Specifically, the perceived harm and intentionality of corporate culprits cause people to be more likely to blame a bank for the difficulties posed by indebted consumers. At the same time, the perceived complicity of consumers in misselling a mortgage reduces the level of blame and its subsequent adverse effects on bank reputation.
Originality/value
Although a strong reputation is crucial in the financial industry, few studies have attempted to address reputational risk from a consumer perspective. This study helps to understand how potentially irresponsible selling of a financial product can adversely affect a bank's reputation.
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Anna M. Cianci and George T. Tsakumis
The purpose of this study is to examine accountants’ application of principles-based accounting standards to a lawsuit contingency recognition scenario and the potential role that…
Abstract
Purpose
The purpose of this study is to examine accountants’ application of principles-based accounting standards to a lawsuit contingency recognition scenario and the potential role that accounting work experience plays in mitigating accountants’ aggressive financial reporting.
Design/methodology/approach
This study presents a 2 × 2 between-subjects experiment with accounting experience (measured as high vs low) and contingency type (asset vs liability) as independent variables and accountants’ lawsuit contingency conservatism likelihood judgments and US$ recognition recommendations as the dependent variables.
Findings
Consistent with expectations, findings indicate that more experienced accountants are more likely to recognize liabilities and items that decrease income and less likely to recognize assets and items that increase income than their less experienced counterparts. Accountants also recommended recognizing lower (higher) mean US$ amounts for assets (liabilities), as expected. Supplemental analyses show a significant moderated-mediated effect whereby the interactive effect of contingency type and accounting experience on individuals’ US$ recognition recommendations is partially mediated through the nature of the conservatism judgment.
Practical implications
The finding that less experienced accountants report more aggressively than more experienced accountants when applying a principles-based standard supports the call for using judgment frameworks in imprecise standard settings and suggests that firms may want to ensure that accountants with adequate work experience are on hand as U.S. generally accepted accounting principles become more principles-based over time.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine the impact of accounting work experience on the application of principles-based accounting standards and the mitigation of aggressive financial reporting. Our supplemental analyses also identify the nature of the conservatism judgment as a mediating mechanism which partially explains more experienced accountants’ US$ asset and liability recognition recommendations.
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William Mbanyele and Fengrong Wang
This study aims to examine the real effects of financial misconduct on corporate innovation.
Abstract
Purpose
This study aims to examine the real effects of financial misconduct on corporate innovation.
Design/methodology/approach
The authors use a sample of Chinese A-share listed firms from 2006 to 2017. This study uses several empirical strategies to deal with endogeneity concerns, including Heckman’s two-stage correction approach, propensity score matching and instrumental variables.
Findings
The authors’ findings consistently show that financial misconduct impedes corporate innovation. Furthermore, the authors’ analysis demonstrates that the negative impact of financial misconduct is more pronounced in nonstate enterprises. The authors also show that financial misconduct discourages innovation through information, short-termism and financing channels.
Practical implications
This paper is of particular interest to policymakers, as firm behavior is heavily regulated and altered by securities laws and regulations over time. The authors recommend firms to observe financial regulatory laws to promote capital market integrity and enhance shareholder value through innovation projects. The authors also recommend that regulators provide incentives that encourage corporate transparency and use new technologies to detect financial misconduct quickly.
Originality/value
Few studies in literature investigate the real consequences of financial misconduct on firm investments. Hence, this paper fills this gap by analyzing the implications of financial misconduct on corporate innovation. This study is one of the first to provide new insights into the adverse effects of financial misconduct on firm-level innovation, supported by empirical evidence.
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Francis Nuako, Frank Ato Ghansah and Thomas Adusei
It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been…
Abstract
Purpose
It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been advancements in the management of building projects throughout time but cost overruns remain a key concern in the construction sector internationally, particularly in emerging economies such as Ghana. This study aims to answer the question, “What are the critical success factors (CSFs) that can assist reduce cost overruns in public sector infrastructure projects in the Ghanaian construction industry?”
Design/methodology/approach
This study used a quantitative survey method. The questionnaire was pre-tested by interviewing 15 contractors to ascertain the validity of the content. Factor analysis and multiple regression were adopted to analyze the data.
Findings
This study discovered that the critical factors that can reduce cost overruns in construction projects in Ghana are directly linked to five themes: early contractor involvement in the project planning stage, adequate funding, good project team relations, competent managers/supervisors and project participant incentives/bonuses. This study identifies indestructible, empirically measurable important success criteria for reducing cost overruns in public building projects in Ghana.
Practical implications
When well thought through from the project initiation stage to completion, these critical successes can also be used to deal with damaging economic effects such as allocative inefficiency of scarce resources, further delays, contractual disputes, claims and litigation, project failure and total abandonment.
Originality/value
The uniqueness of this research resides in the fact that it is, to the best of the authors’ knowledge, a first-of-its-kind investigation of the CSFs for reducing cost overruns in public building projects in developing countries.
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Murali Jagannathan, Vijayeta Malla, Venkata Santosh Kumar Delhi and Venkatesan Renganaidu
The dispute resolution process in the construction industry is known for delays in settlement, with some cases even escalating to complex arbitration and litigation. To avoid…
Abstract
Purpose
The dispute resolution process in the construction industry is known for delays in settlement, with some cases even escalating to complex arbitration and litigation. To avoid conflicts turning into disputes, the parties need to be proactive in identifying and resolving conflicts in their nascent stages. It is here that innovative lean construction practices can potentially act as a game-changer to avoid disputes, and this study aims to attempt to understand this phenomenon empirically.
Design/methodology/approach
A questionnaire-based empirical study, followed by semi-structured interviews, is conducted to understand the relevance of key tenets of lean principles in dispute avoidance.
Findings
Although stakeholders agree on the usefulness and practicality of lean principles in dispute avoidance, the extent of agreement is lesser when it comes to its implementation practicality. Moreover, there is a demographic influence observed on lean tenets such as “open communication”, “stakeholder collaboration” and “constraint identification”.
Practical implications
The results point towards an approach that combines contractual mandate, training and awareness creation to iron out the differences in the usefulness and practicality of lean approaches to avoid disputes.
Originality/value
Lean implementation is widely discussed in many construction contexts, such as sustainability, productivity improvement and planning. However, a discussion on lean philosophy’s role in dispute avoidance is muted. Therefore, this study assumes significance.
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Mohamed M. Tailab, Nourhene BenYoussef and Jihad Al-Okaily
The purpose of this paper is to examine how chief executive officers’ (CEOs) narcissism impacts firm performance and how this, in turn, affects a CEO’s positive rhetorical tone.
Abstract
Purpose
The purpose of this paper is to examine how chief executive officers’ (CEOs) narcissism impacts firm performance and how this, in turn, affects a CEO’s positive rhetorical tone.
Design/methodology/approach
The narcissism score is measured by using an analytical composite score for each CEO based on eight factors. The paper uses textual analysis on a sample of 848 CEO letters of US firms over the period 2010–2019. WarpPLS software, version 7.0 was used to conduct structural equation modeling through the partial least squares because a non-linear algorithm exists between CEO narcissism, firm performance and positive tone, and the values of path coefficients moved from non-significant to significant.
Findings
The results suggest that performance partially mediates the relationship between CEO narcissism and positive tone. This indicates that not all the positivity expressed by narcissistic CEOs is opportunism; some of it is indeed driven by better performance. The reported findings indicate that firm performance explains one-quarter of a CEO’s positive words, whereas some three-quarters of the positivity is driven by a narcissistic CEO (i.e. opportunism). A comparison of letters signed by highly narcissistic and less narcissistic leaders reveals that among those letters signed by highly narcissistic leaders, firm performance plays a significant mediating role between narcissistic tendencies and positive tone. However, among those with less narcissistic score, there is no evidence that performance mediates the tone and narcissism. Interestingly, both highly narcissistic and less narcissistic CEOs use positive words and optimistic expressions even when their firms perform poorly or negatively.
Research limitations/implications
The results help shareholders be aware that CEOs may opportunistically use their personal characteristics and language to manipulate them. Data limitations about women CEOs were one of the reasons behind the small proportion of women CEOs in this study, making it low in generalizability.
Originality value
A comprehensive review showed that none of previous studies examined the more ambiguous relationship between a CEO’s narcissist tendency, the firm’s performance, and CEO rhetorical tone. As one set of studies focused on Narcissism → Performance, and the other one on Performance → Tone, this current study completes the picture with Narcissism → Performance → Tone.
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Amneh Alkurdi, Hamzeh Al Amosh and Saleh F.A. Khatib
This study seeks to investigate the impact of board attributes on environmental, social and governance (ESG) performance, along with exploring the mediating role of carbon…
Abstract
Purpose
This study seeks to investigate the impact of board attributes on environmental, social and governance (ESG) performance, along with exploring the mediating role of carbon emissions in this relationship.
Design/methodology/approach
To address this objective, the panel data approach was used to analyze the data were collected from 1,621 European companies from 2017 to 2021.
Findings
This study shows that board gender diversity, audit committee independence, expertise and board meeting attendance help enhance ESG performance. On the contrary, board size and composition do not affect ESG performance. The findings also showed that board gender diversity, audit committee independence, expertise and board meeting attendance are negatively related to carbon emissions performance. However, board size is related positively to carbon emissions performance. This indicates that the larger boards of directors may have diverse experiences that enhance the environmental performance of companies. Furthermore, the finding showed companies that contribute to lowering carbon emissions are more willing to improve their ESG performance. Also, carbon emissions mediate the relationship between the board's attributes and ESG performance.
Originality/value
The study's results have significant implications for firm managers in enhancing the efficiency of board decisions in determining environmental practices that matter to various groups of stakeholders. In addition, this study provides valuable input to regulators and policymakers regarding strengthening the regulations and controlling tools that enhance environmental performance.
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Abstract
Purpose
The authors intend to investigate the relations between corporate strategic positioning and environmental information disclosure (EID) behaviors in the context of the circular economy. The authors argue that the development of the circular economy is crucial to address environmental issues and achieve sustainable development, and companies play a vital role in this process as micro-entities. By examining corporate EID behaviors, the authors could understand their adoption of circular practices to a certain extent.
Design/methodology/approach
The authors conduct a content analysis of companies' annual fiscal reports, social responsibility reports and environmental reports and develop text-based proxies for both strategic positioning and EID quality to explore the relationship between them.
Findings
The authors find that corporate strategic positioning does affect corporate EID behaviors. Specifically, firms that implement a prospector strategy are more likely to engage in high-quality EID. Furthermore, the results suggest that green innovation is one of the mediators through which strategic positioning affects EID. Compared with defenders, prospectors are more likely to engage in green innovation, which, in turn, leads to higher-quality EID and demonstrates a more active approach to the circular economy.
Originality/value
This study contributes to the literature on strategic positioning and corporate EID by providing empirical evidence on the impact of corporate strategic positioning on EID behaviors. Moreover, the study employs a textual analysis approach to measure corporate strategy and EID, which is a relatively new research method in this field.
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