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21 – 30 of over 2000
Article
Publication date: 26 April 2018

Georgios L. Thanasas, Georgia Kontogeorga and George Asterios Drogalas

In recent years, the principle of the “comply or explain” approach has become the trend in corporate governance statements that are not fully compliant with national codes. This…

Abstract

Purpose

In recent years, the principle of the “comply or explain” approach has become the trend in corporate governance statements that are not fully compliant with national codes. This is because managers of companies deviating from corporate governance codes try to be lawful, providing reasonable explanations; thus, they reach an impasse, copying explanations from other companies, in a mimetic behavior. The purpose of this study is to investigate whether companies listed in Greek Stock exchange tend to imitate one each other thus to be legitimate in terms of the “comply or explain: approach”.

Design/methodology/approach

This study focuses on the “comply or explain” approach in Greek listed companies, analyzing statements by 162 companies (80.2 per cent) listed on the Athens Stock Exchange (ASE), showing a total of 1,211 deviations from the national code. Therefore, the explanations were classified for analysis, grouping them into three main categories and investigating the degree of imitation.

Findings

In total, 96 companies deviating from the Code (56.3 per cent) provided explanations as to their legitimacy practices. Thus, the managers of these companies tried to explain their deviations from the national code in such a way that it could be considered that they tend to imitate each other, striving to be lawful.

Research limitations/implications

Owing to Greece’s ongoing economic crisis, many companies listed on the ASE in previous years have suspended the trading of their shares. An examination of previous years may have led to biased results, owing to the different samples of companies. Another limitation concerns the number of companies in the sample; although it covers almost 80 per cent of listed companies, the actual number of companies is not big enough.

Practical implications

This study tries to investigate whether Greek listed companies comply with or deviate from the National Corporate Governance Code. For that purpose, context analysis was performed on 80.2 per cent of these companies (162 out of 202 companies) for the calendar year 2017. Most companies tried to explain their deviations from the Code in such a way that it could be considered that they tend to imitate each other.

Social implications

Companies that deviate from the corporate governance code tend to imitate each other. This phenomenon occurs mainly in small companies, which, while striving to be lawful, even copy other companies’ phrases verbatim. This study reveals that managers of such companies care to provide an explanation for only deviations from the Code as a logical justification and not to capture the existing situation of their companies.

Originality/value

This study is the first to examine the mimetic behavior on corporate governance statements in Greece. Although the trend of imitation is a fact in developed economies, similar studies never took place on emerge economies. This study contributes to the literature by examining whether the trend of mimetic behavior exists in emerging economies as well.

Details

Corporate Governance: The International Journal of Business in Society, vol. 18 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 10 October 2016

Mirna Jabbour and Magdy Abdel-Kader

This paper aims to investigate various institutional pressures driving the adoption and implementation of a new risk management system; enterprise risk management (ERM).

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Abstract

Purpose

This paper aims to investigate various institutional pressures driving the adoption and implementation of a new risk management system; enterprise risk management (ERM).

Design/methodology/approach

The implementation of ERM-related practices is analysed based on an institutional framework and drawing on empirical evidence from multiple sources in ten large/medium-sized insurance companies. This paper focuses on extra-organisational pressures exerted by political, social and economic institutions on insurance companies which drove the adoption decision.

Findings

It was found that different change agents have taken part in the decision to introduce new risk management system as a part of ERM implementation process. Further, the institutional pressures, coercive, mimetic and normative, were found to differ in character and strength over different intervals of time in relation to the adoption of ERM. Companies that adopted ERM early were mostly driven by internal strategic drivers, whereas the recent adoption decision was more driven by coercive and mimetic pressures. Thus, evidence of divergence between insurance companies was found.

Research limitations/implications

The findings have implications for policy makers, regulatory agencies and innovation developers. ERM was considered not only as a necessity but also as a value added to the insurance companies under study. Thus, regulators and innovation developers should survey main players in any specific organisational field to understand their views before issuing new compulsory regulations or developing innovations. They also need to consider exploring companies’ experiences with ERM, which can provide a basis for the development of strengthened and more informative regulatory ERM frameworks. This will support a faster and easier understanding and implementation of ERM framework hindered by the confusions companies may face when considering the complicated/changing regulatory and risk requirements.

Originality/value

This study extends the scope of institutional analysis to the risk management field, particularly ERM and to the explanation of how different institutions affect the decision to move towards ERM and modify the risk management rules applied within the organisational environment. It looks not only at convergences but also divergences associated with the period of time when ERM adoption decision was made. Thus, it develops a processual view of change.

Details

Qualitative Research in Accounting & Management, vol. 13 no. 4
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 11 June 2018

Imed Medhioub and Mustapha Chaffai

The purpose of this paper is to examine the herding behavior in GCC Islamic stock markets.

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Abstract

Purpose

The purpose of this paper is to examine the herding behavior in GCC Islamic stock markets.

Design/methodology/approach

The authors followed the methodology developed by Chiang and Zheng (2010) to test herding behavior. Cross-sectional tests have been considered in this paper. The authors use both OLS and GARCH estimations to examine herding behavior by using a sample of GCC Islamic stock markets.

Findings

By applying monthly data for the period between January 2006 and February 2016 for five Islamic GCC stock returns (Bahrain, Kuwait, Qatar, Saudi Arabia and UAE), results suggest a significant evidence of herd behavior in Saudi and Qatari Islamic stock markets only. When the authors take into account the existence of asymmetry in herd behavior between down- and up-market periods, evidence of herding behavior during down market periods in the case of Qatar and Saudi Arabia was found. In addition, the authors found that Kuwaiti and Emirates Islamic stock markets herd with the local conventional stock market, showing the interdependencies between Islamic and conventional markets.

Research limitations/implications

In this paper, the authors found an absence of herding behavior in some Islamic stock markets (Bahrain, Kuwait and Emirates). This is not the result of Shariah guidelines in these Islamic markets, but this is mainly due to the weak oscillations of returns which are very close to zero. In our future research, the authors could apply daily data and compare the results to those obtained in this paper by using monthly data.

Originality/value

This paper provides a practical framework in order to analyze the herding behavior concept for GCC Islamic stock markets. Its originality consists of linking the herding behavior to ethics and morality to verify whether the properties and guidelines of Islam are respected in Islamic stock markets. To the best of the authors’ knowledge, no other paper has treated the case of herding behavior in Islamic stock markets and taking into account the possible influence of the conventional market on the Islamic stock market that may impact herding behavior.

Details

Review of Behavioral Finance, vol. 10 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Open Access
Article
Publication date: 10 March 2023

Karen-Ann M. Dwyer, Niamh M. Brennan and Collette E. Kirwan

This rich descriptive study examines auditors' client risk assessment (i.e. “key audit matters”/critical audit matters) disclosures in expanded audit reports of 328 Financial…

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Abstract

Purpose

This rich descriptive study examines auditors' client risk assessment (i.e. “key audit matters”/critical audit matters) disclosures in expanded audit reports of 328 Financial Times Stock Exchange (FTSE) 350 companies. The study compares auditor-identified client risks with corporate risk disclosures identified in audit committee reports, in terms of number and type of risks. The research also compares variation in auditor-identified client risks between individual Big 4 audit firms. In addition, the study examines auditor ranking of their client risks disclosed.

Design/methodology/approach

The study manually content analyses disclosures in audit reports and audit committee reports of a sample of 328 FTSE-350 companies with 2015 year-ends.

Findings

Audit committees identify more risks than auditors (23% more risks). However, auditor-identified client risks and audit-committee-identified risks are similar (80% similar), as are auditor-identified client risks between the individual Big 4 audit firms. Only ten (3%) audit reports rank the importance of auditor-identified client risks.

Research limitations/implications

Sample is restricted to one year, one jurisdiction, large-listed companies and companies audited by Big 4 auditors.

Practical implications

The study provides important insights for regulators, auditors and users of financial statements by identifying influences on disclosure of auditor-identified client risks.

Originality/value

The paper mobilises institutional theory to interpret the findings. The findings suggest that auditor-identified client risks in expanded audit reports may demonstrate mimetic behaviour in terms of similarity with audit-committee-identified risks and similarity between individual Big 4 audit firms. The study provides important insights for regulators, auditors and users of financial statements by identifying influences on disclosure of auditor-identified client risks.

Article
Publication date: 7 October 2013

Khondkar E. Karim, Robert Pinsker and Ashok Robin

The specific purpose of this study is to understand how firm size and public/private affiliation (employment status) affect voluntary disclosure decisions concerning…

1953

Abstract

Purpose

The specific purpose of this study is to understand how firm size and public/private affiliation (employment status) affect voluntary disclosure decisions concerning quantitatively immaterial nonfinancial information. Although the prior disclosure literature is large and has considered a variety of factors including size and to a lesser degree employment status, this study offers a new perspective by considering both factors in the context of qualitative materiality.

Design/methodology/approach

This paper presents 136 manager participants with 24 cues representing nonfinancial, realistic business events and solicits their disclosure judgments. The cues are adapted from Pinsker et al. and contain information that does not meet widely-accepted quantitative thresholds for disclosure (e.g. 5 percent of net income), yet were identified by the Securities and Exchange Commission (SEC) as more likely to be material. This paper uses a median split of total assets and total revenues to determine “large” and “small” firms. Managers' judgments are measured in an own-firm setting (The context is their current employer, which can be public or private.).

Findings

This paper finds that disclosure is positively linked to firm size, but this paper do not find an employer status effect. Additional testing reveals that private firm managers are sensitive to SEC oversight and other external, competitive pressures, suggesting that they face mimetic pressures to behave like their public firm counterparts. In sum, their findings contribute significantly to the disclosure, strategic management, institutional theory and judgment-and-decision-making (JDM) literatures.

Originality/value

Although there is a vast literature on public firm managers' voluntary disclosure behavior (mostly involving large firms), there is little research regarding the voluntary disclosure behavior of small or large private firm managers involving nonfinancial information.

Details

Managerial Auditing Journal, vol. 28 no. 9
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 13 March 2017

Soyoung Joo, Ben Larkin and Nefertiti Walker

The purpose of this paper is to explore the corporate social responsibility (CSR) practices of three major professional sport leagues in South Korea to investigate the general…

Abstract

Purpose

The purpose of this paper is to explore the corporate social responsibility (CSR) practices of three major professional sport leagues in South Korea to investigate the general beliefs, values, and norms influencing the institutional isomorphism of CSR engagement.

Design/methodology/approach

Nine semi-structured interviews were conducted with three league chiefs of CSR initiatives and senior managers of related divisions to explore the general beliefs, values, and norms that are institutionalized in their CSR practices. The Gioia method of inquiry and data analysis was employed.

Findings

Using institutional theory, the current research found evidence of all three institutional pressures of institutional isomorphism that contribute to the institutionalization of CSR practices in professional South Korean sport. The data revealed that CSR has been institutionalized in these leagues through isomorphic pressures – coercive, mimetic, and normative – as antecedents to their CSR practices.

Practical implications

The current research identified that conforming to the institutional norms may not only act as a force causing the organization to behave in a socially responsible manner, but also to provide the organization with competitive advantages.

Originality/value

The authors extend the current literature in sport CSR by using institutional theory as a framework to uncover organizational CSR motives. In particular, this is the first study to provide evidence of how three isomorphic pressures work to institutionalize CSR practices in South Korean professional sports leagues.

Details

Sport, Business and Management: An International Journal, vol. 7 no. 1
Type: Research Article
ISSN: 2042-678X

Keywords

Open Access
Article
Publication date: 26 December 2023

Susana Pasamar, Mar Bornay-Barrachina and Rafael Morales-Sánchez

This paper empirically addresses the effect of coercive, normative and mimetic pressures on sustainability results, focussing on the three dimensions of the triple bottom line…

Abstract

Purpose

This paper empirically addresses the effect of coercive, normative and mimetic pressures on sustainability results, focussing on the three dimensions of the triple bottom line approach: environmental, economic and social. The mediating role of compliance, analyser or proactive corporate strategies towards sustainability is also considered.

Design/methodology/approach

The hypotheses developed in this study were tested using data from a sample of private companies from two industries: manufacture of chemicals and chemical products, and manufacture of basic metals.

Findings

The results confirm the role played by institutional pressures for sustainability in explaining the involvement of organisations in economic, social and environmental aspects. The mediating effect of corporate strategy is also confirmed, although only for environmental aspects.

Originality/value

Research into sustainability development is evolving rapidly; however, few studies have explored its diffusion amongst organisations from a triple bottom line perspective by considering the role of different current external pressures, the corporate strategy and the diverse results.

研究目的

本研究擬對強制壓力、規範壓力和模仿壓力對可持續性成果的影響進行實證研究。研究的焦點放在三重底線法的三個層面上,即是環境層面、經濟層面和社會層面。研究人員亦探討尋求可持續性的承諾、分析儀和積極主動的公司戰略的中介作用。

研究方法

研究人員測試其建立的各項假設; 使用的數據取自兩個企業的私人公司的樣本,它們是製造化學品和化學產品的企業,以及製造基本金屬的企業。

研究結果

研究結果確認了尋求可持續性所帶來的制度壓力,在解說企業於經濟、社會和環境三方面的參與上所扮演的角色。研究結果亦確認了公司戰略的中介作用,唯這只見於環境的層面上。

研究的原創性

探討可持續性發展的學術研究發展迅速,唯當中較少從三個基本的角度去探討可持續性發展在組織內的傳播; 本研究考慮了目前各種外來壓力、公司戰略和不同的結果所扮演的角色,以彌補這研究差距。

Details

European Journal of Management and Business Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2444-8451

Keywords

Article
Publication date: 11 July 2016

Françoise Quairel-Lanoizelee

The purpose of this paper is to explore the connection between CSR and competition to contribute to the CSR concept through analysis of the conditions for its implementation…

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Abstract

Purpose

The purpose of this paper is to explore the connection between CSR and competition to contribute to the CSR concept through analysis of the conditions for its implementation. While fierce global competition has negative environmental and social impacts and may lead large companies to act irresponsibly, corporate social responsibility (CSR) academic literature, especially stakeholder theory, pays little attention to competition and market pressure. It only highlights the competitive advantage a CSR strategy represents for companies.

Design/methodology/approach

This work draws upon the academic literature in economics and strategic management, on mainstream CSR papers and on the official disclosure and communication from companies listed on the “CAC 40” of the French stock market. In this paper, the authors use the definition of corporate responsibility which integrates companies’ environmental and social concerns into all their activities.

Findings

The following three major findings arise. First, on a theoretical level and in terms of corporate disclosure on CSR, a large gap in how the economic view and the CSR view of competition are represented was noticed. Second, the limitations of the competitive advantage obtained by CSR strategy was observed while the “demand for virtue” is weak even if the stakeholders’ “expectations” for responsible practices are strong. The author proposes a typology of CSR strategies related to competitive situations. Third, the author underlines the paradox of the CSR competitive advantage: specifically, it is gained only if not imitable; i.e. if companies prevent the mimetic practices which could spread best practices for sustainable development.

Originality/value

This paper highlights the limits of the CSR concept within the liberal paradigm. The authors argue that the mainstream theoretical CSR framework based on the hypothesis of the convergence between firms’ objectives and the common interest is not relevant. The framework of the neo-institutional theory is more appropriate to analyse the mimetic behaviour in competitive markets and corporate commitments in sector-based codes of conduct that define new norms of social quality.

Details

Society and Business Review, vol. 11 no. 2
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 26 April 2019

Katherine Leanne Christ, Kathyayini Kathy Rao and Roger Leonard Burritt

Given the impending introduction of legislation requiring large Australian listed companies to make supply chain disclosures about modern slavery, the paper aims to reveal current…

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Abstract

Purpose

Given the impending introduction of legislation requiring large Australian listed companies to make supply chain disclosures about modern slavery, the paper aims to reveal current voluntary practice. The purpose of this paper is to provide a benchmark for assessing the current engagement of large companies with modern slavery in Australia.

Design/methodology/approach

Institutional theory provides the foundation for assessing current voluntary practice in relation to modern slavery disclosures by large Australian listed companies. Content analysis is used to identify quantity and quality of modern slavery disclosures of the top 100 companies listed on the Australian Stock Exchange. The contents of annual and standalone reports available on websites, as well as other online disclosures, are examined using terms associated with modern slavery identified from the literature.

Findings

Evidence gathered about modern slavery disclosures by ASX 100 companies shows information in annual and standalone reports reveal far less than other disclosures on company websites. Overall, the volume and quality of disclosures are low and, where made, narrative. A wide range of themes on modern slavery are disclosed with bribery and corruption and human rights issues dominant. Although currently in line with institutional theory, as there appear to be mimetic processes encouraging disclosure, results support the idea that legislation is needed to encourage further engagement.

Research limitations/implications

The paper provides a baseline of understanding about the volume and quality of modern slavery disclosures as a foundation for future research into the practices of Australian companies prior to the signalled introduction of legislation mandating reporting. It also identifies potential lines of research. The sample only examines large Australian listed companies which restricts generalisation from the results.

Originality/value

This is the first academic research paper to examine quantity and quality of modern slavery disclosures of large Australian companies. Results add support for the introduction of legislation by government.

Details

Accounting, Auditing & Accountability Journal, vol. 32 no. 3
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 3 April 2009

Monica Yang

The purpose of this paper is to examine whether isomorphism and mimetic, coercive, and normative mechanisms apply to cross‐border mergers and acquisitions initiated by Chinese…

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Abstract

Purpose

The purpose of this paper is to examine whether isomorphism and mimetic, coercive, and normative mechanisms apply to cross‐border mergers and acquisitions initiated by Chinese firms. Unlike prior studies, the paper aims to identify multiple bases for imitation of firm strategy and verify: whether the degree of conformity in the multiple bases of firm strategy increases over time; and how mimetic, coercive, and normative pressures affect the degree of conformity.

Design/methodology/approach

Hypotheses are tested on a sample of 1,004 cross‐border mergers and acquisitions (M&As) initiated by 671 Chinese firms from 1985 to 2006. The four decisions for imitation in cross‐border M&As are based on: the product relatedness between the acquiring and target firms; the location of the target firm; the ownership structure; and the size of the deal.

Findings

The results show that not all decisions on cross‐border M&As react to forces of conformity in the same way. Overtime, the overall degree of conformity in cross‐border M&As decreases. Factors that significantly affect the degree of conformity include the experiences of failure other firms in the industry, regulatory changes, and membership or entry into the World Trade Organization.

Originality/value

This paper re‐examines the concept of isomorphism and explores the conditions under which firms from emergent markets conform to others' decisions.

Details

Chinese Management Studies, vol. 3 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

21 – 30 of over 2000