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The purpose of this paper is to understand the financial opaqueness established through offshore businesses and financial secrecy through the requirements of information exchanges, and their deadly combination for facilitating money-laundering activities and tax evasion. It also puts into light some key recommendations for a country like Nepal that has been struggling to put adequate efforts into understanding financial opacity and secrecy.

This paper navigates through global issues on layering through opaque corporate structures, and mechanisms required for information exchange so as to figure out solutions and challenges to address them by developing countries like Nepal, with specific actions pertaining to Nepal.

Understanding financial opacity and secrecy is a prerequisite to tackling financial crimes. While focusing on global solutions and inherent challenges regarding such issues, concerted efforts are required to capacitate a country on contextual matters.

This work is an original work with an analysis of a global issue in an interconnected world with solutions catered to the local contexts of Nepal.

The purpose of this study is to investigate the role and impact of state regulation of corporate social responsibility (CSR) spending on company actions and to examine whether making mandatory CSR encourages businesses to engage in social welfare projects. Additionally, the authors also investigate whether these CSR expenditures can enable India to meet the Sustainable Development Goals (SDGs) 2030.

CSR expenditure data from the government repository of 22,531 eligible companies in India were studied from FY2014–2015 to FY2019–2020. CSR spending is further classified according to development areas of Schedule VII of the Companies Act, 2013, and mapped with the SDGs to see which ones the corporations have prioritized.

CSR spending increased from INR 10,066 crore in 2014–2015 to INR 24,689 crore in 2019–2020. Companies have prioritized CSR expenditure on education, followed by health care and rural development. The number of companies spending more than the mandated expenditure increased by around 75% from 2014–2015 to 2019–2020. However, the “comply or explain” approach of the law has led to a major number of companies spending zero on CSR. Companies have generally concentrated on moving CSR funds to designated funds rather than using them for capacity development to instill social responsibility culture.

This study provides evidence of the impact of mandatory CSR expenditure on welfare activities and SDGs. Unlike previous research, the results of this study are based on CSR expenditures rather than voluntary CSR scores.

This study aims to examine the mediating effects of corporate governance mechanisms like the board of directors on the association between disruptive technology adoption by audit clients and the risk of material misstatements, including inherent risk and control risk. In particular, the authors study the mediating effects of board characteristics such as board size, independence and gender diversity.

Based on a sample of 100 audit clients listed on the FTSE 100 from 2015 to 2021, this study uses structural equation modelling to test the research objectives.

The findings indicate a significant and negative association between disruptive technology adoption by audit clients and inherent risk. However, there is no significant evidence observed for control risk. The utilisation of disruptive technology by the audit client has a significant impact on the board characteristics, resulting in an increase in board size, greater independence and gender diversity. The authors also find strong evidence that board independence mediates the association between disruptive technology usage and both inherent risk and control risk. In addition, board size and gender exhibit distinct and differential mediating effects on the association and across the two types of risks.

The study reveals that the significant role of using disruptive technology by audit clients in reducing the risk of material misstatements is closely associated with the board of directors, which makes audit clients place greater emphasis on the construction of effective corporate governance.

This study offers essential primary evidence that can assist policymakers and standard setters in formulating guidance and recommendations for board size, independence and gender quotas, ensuring the enhancement of effective governance and supporting the future of audit within the next generation of digital services.

With respect to relevant stakeholders, it is imperative for audit clients to recognise that corporate governance represents a fundamental means of addressing the ramifications of applying disruptive technology, particularly as they pertain to inherent and control risks within the audit client.

This study contributes to the existing literature by investigating the joint impact of corporate governance and the utilisation of disruptive technology by audit clients on inherent risk and control risk, which has not been investigated by previous research.

Despite the recognition that contextual factors play a key role in shaping individuals’ work-family (WF) interface, empirical research that simultaneously considers individual, roles and contextual factors is scarce. Drawing on the pyramid model of work-home interface, we delve into the intersection among sex, gender role ideology (GRI) and urbanization (URB) in relation to WF conflict and enrichment in India. Specifically, we explored whether and how sex (male vs female), GRI (traditional vs egalitarian) and URB (big vs small city) interact to predict WF conflict and WF enrichment.

The data were collected from 586 full-time employees working in both more and less urbanized cities in India. Moderation analyses were utilized to study the interaction effects on WF conflict and enrichment.

Results indicate that GRI is a stronger driver of WF experiences, especially WF enrichment, for women regardless of location. The study contributes to the understanding of WF experiences in India and addresses the complexity of WF experiences, especially with respect to sex and gender.

Our study offers a nuanced understanding of WF experiences in India by integrating micro- to macro-level antecedents, thereby addressing the complexity of WF experiences. While a lot of research explains sex and gender differences in WF experiences, our study highlights how these experiences vary with the degree of URB.

An increasing number of Danish municipalities wish to minimize tax avoidance due to profit shifting in their public procurement. To facilitate this effort, this study aims to develop a firm-level indicator to assess the potential risk of profit shifting (PS-risk) from Danish subsidiaries of multinational corporations to subsidiaries in low-tax jurisdictions.

Drawing from previous research, PS-risk is assumed to depend on the maximum difference in the effective corporate tax rate between the Danish subsidiary and other subsidiaries under the global ultimate owner, in conjunction with the tax regulations relevant to profit shifting. The top 400 contractors in Danish municipalities from 2017 to 2019 are identified and their relative PS-risk is estimated by combining information about corporate ownership structure with country-specific information on corporate tax rates, tax regulations and profit shifting from three independent data sets.

The PS-risk estimates are highly significantly positively correlated across the data sets and show that 17%–23% of the total procurement sum of the Danish municipalities has been spent on contracts with corporations having a medium to high PS-risk. On average, PS-risk is highest for large non-Scandinavian multinational contractors in sectors such as construction, health and information processing.

Danish public procurers may use the indicator to screen potential suppliers and, if procurement regulations permit, to ensure high-PS-risk bidders document their tax practices.

The PS-risk indicator is novel, and to the best of the authors’ knowledge, the analysis provides the first estimate of PS-risk in Danish public procurement.

This study examines the importance of income income-shifting arrangements of US multinational corporations (MNCs) on future stock price crash risk.

This study employs a sample of 7,641 corporation-year observations over the 2005–2017 period and uses ordinary least squares regression analysis.

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.

The authors provide new empirical evidence that MNCs will likely face significant capital market consequences regarding their income-shifting arrangements.

The purpose of this study is to address the relationship between multinational corporations (MNCs) and grand challenges. Stressing the moderating impact of stakeholders and governments, it frames and introduces the six contributions of the special issue, equally divided into those illustrating how MNCs contribute to the existence of grand challenges and those exploring how MNCs contribute to addressing grand challenges.

Based on a review of the existing literature on the relationship between MNCs and grand challenges and recent developments in mainstream international business, the viewpoint emphasizes the need to move beyond a one-sided focus on the positive contributions of MNCs to grand challenges.

The special issue contributions reveal that even established MNCs are actively engaged in strategic efforts to perpetuate unsustainable practices and minimize the impact of societal rules and stakeholders. The contributions also highlight the complications when MNCs aim to tackle grand challenges.

Displaying positive practices of how MNCs contribute to the solution of grand challenges should not be considered a functional substitute for regulatory action, contrary to the frequent assertion of MNCs and their political representatives.

This special issue is the first one in IB to address the relationship between MNCs and grand challenges from an empirical vantage point.

This study aims to analyze the effect the liberalization of industrial relations in Germany has had on trade unions’ influence on companies’ decisions. Particular attention is given to European measures of flexibilizing company law and how they affect industrial relations in Germany.

After presenting a theoretical basis regarding industrial relations and corporate governance, the paper then demonstrates, via a case study, the effects of the flexible European company law. It examines the strategic avoidance of trade union activity at SAP, a case that ended up before the European Court of Justice.

The flexibility of European company law allows companies to limit the influence of trade unions on company decisions. Limiting trade unions' internal participation weakens their position overall. Precautionary measures to protect employees’ rights help to reduce the dangers of this process.

The influence of European law brings a new perspective to the transformation of the German industrial relations model. The analysis of the strategy of using the legal type of the European company (Societas Europaea) to limit the internal activity of trade unions demonstrates the connection between institutional settings and corporate governance.

This paper aims to present the impact of several likely trajectories of development for global industries, namely, re-shoring, regionalization, diversification and replication, recently identified by the United Nations Conference on Trade and Development, on the evolution of the corporate parenting styles (CPSs) of multinational corporations (MNCs).

This viewpoint presents a novel view of CPSs as a set of relationships between the corporate centers of MNCs and their subsidiaries, including domestic ones, identifies the most likely connections between anticipated trajectories of development in global industries and the evolution of CPSs of MNCs and outlines directions for further research.

The anticipated trajectories of the development of global industries may result in changes in prevailing CPSs and lead to the proliferation of previously less common parenting styles. Although many of the anticipated changes in CPSs may be pursued by corporate headquarters (CHQs), a combination of powerful subsidiaries putting bottom-up pressure on CHQs and powerful owners capable of imposing requirements on top management teams and generating top-down pressure may affect the CPSs used by corporations.

The authors connect possible trajectories of development for global industries with the evolution of CPSs of MNCs.

This study explores a hegemonic alliance and the role of relational forms of accounting and accountablity in the making of contemporary capitalism.

We use the WikiLeaks “Cablegate” documents to provide an account of the detailed machinations between interest groups (corporations and the state) that are constitutive of hegemonic activity.

Our analysis of the “Cablegate” documents shows that the US and Chevron were crafting a central role for Turkmenistan and its president on the global political stage as early as 2007, despite offical reporting beginning only in 2009. The documents exemplify how “accountability gaps” occlude the understanding of interdependence between capital and the state.

The study contributes to a growing idea that official accounts offer a fictionalized narrative of corporations as existing independently, and thus expands the boundaries associated with studying multinational corporate activities to include their interdependencies with the modern state.

The study traces how global capitalism extends into new territories through diplomatic channels, as a strategic initiative between powerful state and capital interests, arguing that the outcome is the empowerment of authoritarian states at the cost of democracy.

The study argues that previous accounting and accountability research has overlooked the larger picture of how capital and the state work together to secure a mutual hegemonic interest. We advocate for a more complete account of these activities that circumvents official, often restricted, views of global capitalism.