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1 – 10 of 408Emmanuel C. Mamatzakis, Lorenzo Neri and Antonella Russo
This study aims to examine the impact of national culture on classification shifting in Eastern European Member States of EU Eastern European countries (EEU) vis-à-vis the Western…
Abstract
Purpose
This study aims to examine the impact of national culture on classification shifting in Eastern European Member States of EU Eastern European countries (EEU) vis-à-vis the Western Member States of EU (WEU). The EEU provides a unique sample to study the quality of financial reporting that the authors measure with classification shifting given that for more than five decades they were following the model of a centrally planned economy, where market-based financial reporting was absent. Yet, the EEU transitioned to a market-based economy and completed its accession to the EU.
Design/methodology/approach
This study uses a panel data set of firm year observations from 1996 and 2020 that covers the full transition of EEU. This empirical analysis is based on fixed effects panel regression analysis where the authors report a plethora of identifications.
Findings
This study finds classification shifting in the EEU countries since their transition to the market-based economy, though they have no long record of market-based financial reporting. This study also notices that cultural factors are associated with classification shifting across all Member States of the EU. This study further examines the impact of interactions between cultural characteristics and special items and reveal variability between WEU and EEU. As part of the robustness analysis, this study also tests the impact of culture on real earnings management measures for both WEU vs EEU, confirming the variability of the impact of culture on earnings management.
Research limitations/implications
Future research could explore the role of religion differences in WEU vis-à-vis EEU states, as they are also subject to cultural differences.
Practical implications
The findings are important for regulators, external monitors and investors, as they show that cultural factors affect earnings management with some variability across countries in the EU, and they should be acknowledged in policymaking.
Social implications
The findings show that cultural differences between EEU and the “old” Member States of the EU could explain classification shifting.
Originality/value
To the best of the authors’ knowledge, this is the first study that sheds light on the impact of national culture on classification shifting in EEU of EU vis-à-vis the “old” WEU of EU.
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Monsurat Ayojimi Salami, Harun Tanrivermis and Yesim Tanrivermis
Management soundness is essential for the effectiveness of any industry, most especially in any Islamic financial sector, whereby fairness and justice are the key factors to be…
Abstract
Purpose
Management soundness is essential for the effectiveness of any industry, most especially in any Islamic financial sector, whereby fairness and justice are the key factors to be observed. This paper aims to examine the management soundness of the takaful industry regarding their asset quality, re-takaful and actuarial and earning and profitability.
Design/methodology/approach
This study obtained quarterly data from 2019Q1 to 2021Q4 from the Islamic Financial Services Board across Malaysia, Brunei, Saudi Arabia, Jordan and the United Arab Emirates. The panel data modelling with random-effect and fixed-effect estimators were used for the analysis.
Findings
The finding revealed a strong relationship between re-takaful and earnings with management soundness and a weak relationship between asset quality and management soundness. In addition, the result established a significant and strong association between management soundness and earnings and profitability. Therefore, re-takaful and profitability contributed more to the management soundness of the takaful industry than asset quality during the study. An increase in earnings and profitability to enable the takaful industry to pay the claims, especially in calamity, and more focus on the quality of the asset they invested in could enable the smooth running of their day-to-day business affairs.
Practical implications
More attention is required on the quality of assets in their portfolio for the sustainability of the takaful industry to fulfil their underlying objectives. Management soundness in the takaful industry should address the challenges of managerial lathery, which some studies linked with operational inefficiency because of unskilled personnel in the takaful industry. This could benefit takaful clients, irrespective of religion, to attain their associated share of benefits from the Islamic insurance industry.
Originality/value
To the best of the authors’ knowledge, this is the first empirical study that examined the effectiveness of takaful management across Malaysia, Brunei, Saudi Arabia, Jordan, and the United Arab Emirates.
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This study aims to explore how earnings management techniques are affected by corporate financial debt risk (FDR), internal control (IC) effectiveness and CEO education.
Abstract
Purpose
This study aims to explore how earnings management techniques are affected by corporate financial debt risk (FDR), internal control (IC) effectiveness and CEO education.
Design/methodology/approach
The study uses a sample from listed firms in China from 2010 to 2017, comprising different industries, including agriculture, forestry, livestock farming and fishing; mining; manufacturing; electric power, gas and water production and supply; construction; transport and storage; information technology; the real estate industry; social services; and communication and cultural. The regression analysis is used to test the hypotheses. The two-stage least squares technique is used to check for endogeneity issues.
Findings
The study finds that firms are less likely to manage real earnings when they have more robust IC and FDR. Likewise, companies with weak ICs are more likely to manipulate real earnings. Besides, the study finds an influence of CEO education on the relationship between IC, FDR and real earnings management (REM). These results can be applied to the sectors in the sample covered by the research, and the authors do not overlook the energy industry sector for the importance of its role in the economy.
Research limitations/implications
There are some limitations for the researcher when performing any research, and this study is no exception. Researchers are urged to take these circumstances into consideration when generalizing or comparing the results because the methods used to calculate the measurement variables in each study may differ somewhat from those used in other research. In addition, expanding the current research design to incorporate additional nations may be an area of interest for future research and could aid in evaluating the effects of nation-specific elements (such as inflation, culture, legal systems and political considerations) on the usefulness of IC and decreasing FDR. Second, the current study focuses on the impact of IC and FDR on REM; this paper does not dissect the “black box” of IC and consider how each element affects earnings management. Future research may need to focus specifically on how effective IC would affect earnings management and precisely what IC mechanisms would discourage the management of earnings.
Practical implications
Helping companies listed in China to make decisions and improve investors’ vision of the results of real companies’ businesses, as well as helping management to avoid falling into debt risk and the consequent effects and manipulation of earnings.
Originality/value
By highlighting the significance of IC and debt risk in enhancing information quality in China, the results contribute to the body of work examining the relationship between IC, FDR and REM. In addition, this study uses a CEO’s education to moderate this link.
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Preeti Bhaskar and Puneet Kumar Kumar Gupta
This study aims to delve into the perspectives of educators on integrating ChatGPT, an AI language model into management education. In the current research, educators were asked…
Abstract
Purpose
This study aims to delve into the perspectives of educators on integrating ChatGPT, an AI language model into management education. In the current research, educators were asked to talk as widely as possible about the perceived benefits, limitations of ChatGPT in management education and strategies to improve ChatGPT for management education. Also, shedding light on what motivates or inhibits them to use ChatGPT in management education in the Indian context.
Design/methodology/approach
Interpretative phenomenological analysis commonly uses purposive sampling. In this research, the purpose is to delve into educators’ perspectives on ChatGPT in management education. The data was collected from the universities offering management education in Uttarakhand, India. The final sample size for the study was constrained to 57 educators, reflecting the point of theoretical saturation in data collection.
Findings
The present study involved educators discussing the various advantages of using ChatGPT in the context of management education. When educators were interviewed, their responses were categorized into nine distinct sub-themes related to the benefits of ChatGPT in management education. Similarly, when educators were asked to provide their insights on the limitations of using ChatGPT in management education, their responses were grouped into six sub-themes that emerged during the interviews. Furthermore, in the process of interviewing educators about potential strategies to enhance ChatGPT for management education, their feedback was organized into seven sub-themes, reflecting the various approaches suggested by the educators.
Research limitations/implications
In the qualitative study, perceptions and experiences of educators at a certain period are captured. It would be necessary to conduct longitudinal research to comprehend how perceptions and experiences might change over time. The study’s exclusive focus on management education may not adequately reflect the experiences and viewpoints of educators in another discipline. The findings may not be generalizable and applicable to other educational disciplines.
Practical implications
The research has helped in identifying the strengths and limitations of ChatGPT as perceived by educators for management education. Understanding educators’ perceptions and experiences with ChatGPT provided valuable insight into how the tool is being used in real-world educational settings. These insights can guide higher education institutions, policymakers and ChatGPT service providers in refining and improving the ChatGPT tool to better align with the specific needs of management educators.
Originality/value
Amid the rising interest in ChatGPT’s educational applications, a research gap exists in exploring educators’ perspectives on AI tools like ChatGPT. While some studies have addressed its role in fields like medical, engineering, legal education and natural sciences, the context of management education remains underexplored. This study focuses on educators’ experiences with ChatGPT in transforming management education, aiming to reveal its benefits, limitations and factors influencing adoption. As research in this area is limited, educators’ insights can guide higher education institutions, ChatGPT providers and policymakers in effectively implementing ChatGPT in Indian management education.
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Vikram Singh, Nirbhay Sharma and Somesh Kumar Sharma
Every company or manufacturing system is vulnerable to breakdowns. This research aims to analyze the role of Multi-Agent Technology (MAT) in minimizing breakdown probabilities in…
Abstract
Purpose
Every company or manufacturing system is vulnerable to breakdowns. This research aims to analyze the role of Multi-Agent Technology (MAT) in minimizing breakdown probabilities in Manufacturing Industries.
Design/methodology/approach
This study formulated a framework of six factors and twenty-eight variables (explored in the literature). A hybrid approach of Multi-Criteria Decision-Making Technique (MCDM) was employed in the framework to prioritize, rank and establish interrelationships between factors and variables grouped under them.
Findings
The research findings reveal that the “Manufacturing Process” is the most essential factor, while “Integration Manufacturing with Maintenance” is highly impactful on the other factors to eliminate the flaws that may cause system breakdown. The findings of this study also provide a ranking order for variables to increase the performance of factors that will assist manufacturers in reducing maintenance efforts and enhancing process efficiency.
Practical implications
The ranking order developed in this study may assist manufacturers in reducing maintenance efforts and enhancing process efficiency. From the manufacturer’s perspective, this research presented MAT as a key aspect in dealing with the complexity of manufacturing operations in manufacturing organizations. This research may assist industrial management with insights into how they can lower the probability of breakdown, which will decrease expenditures, boost productivity and enhance overall efficiency.
Originality/value
This study is an original contribution to advancing MAT’s theory and empirical applications in manufacturing organizations to decrease breakdown probability.
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Syed Zulfiqar Ali Shah and Fangyi Wan
This study examines whether country-level financial integration affects firms' accounting choices and the quality of financial information.
Abstract
Purpose
This study examines whether country-level financial integration affects firms' accounting choices and the quality of financial information.
Design/methodology/approach
This study employs Propensity Score Matching (PSM), and panel regressions of a large sample of data from 20 emerging markets over the period 1987–2018.
Findings
This study finds evidence that increased level of financial integration is significantly positively associated with firms' accruals earnings management (AEM) and real earnings management (REM).
Research limitations/implications
Findings in the study have implications for standard-setting bodies that aim to enhance the usefulness of financial reporting quality. The study also has implications for various initiatives by governments in emerging markets aimed at raising investor confidence and fostering stock market development through greater financial integration.
Practical implications
Findings in the study have implications for standard-setting bodies that aim to enhance the usefulness and quality of financial reporting. The findings can be of interest to analysts, auditors and other monitoring institutions who play a crucial role in detecting earnings management and reducing information asymmetry. Finally, the study has implications for various initiatives by governments in emerging markets aimed at raising investor confidence and fostering stock market development through greater financial integration.
Originality/value
Findings in the study reveal how country-level financial integration affects accruals and real earnings management in a sample of firms from 20 emerging markets. Further, the study adds to the growing body of literature on emerging markets where capital markets mechanisms, regulatory environment and firm's corporate governance are distinct to developed markets.
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Abongeh A. Tunyi, Tanveer Hussain and Geofry Areneke
This paper aims to explore the value of geographic diversification in the context of deglobalization, drawing evidence from a quasi-natural experiment – the Brexit referendum that…
Abstract
Purpose
This paper aims to explore the value of geographic diversification in the context of deglobalization, drawing evidence from a quasi-natural experiment – the Brexit referendum that took place on 23 June 2016 in the UK.
Design/methodology/approach
This study applies an event study methodology to estimate the impact of the Brexit vote on a cross-section of firms with varying levels of geographic diversification – undiversified UK firms, UK firms with significant operations in the European Union (EU) and globally diversified UK firms. This study deploys a Heckman two-stage regression approach to address sample selection bias.
Findings
This study finds that undiversified UK firms experienced negative cumulative abnormal returns (CARs) around the Brexit referendum. The value of UK firms with majority sales within the UK declined by 0.9 percentage points, on average, in the three days centred on the Brexit referendum. In contrast, UK firms that are globally diversified, with the majority of sales within the EU are unaffected, while diversified firms in the rest of the world generated positive CARs of 1.8 percentage points over the same period. These results are robust to firm characteristics, selection bias and alternative measures of CARs and diversification.
Research limitations/implications
This study is subject to some limitations that open avenues for future work. There are a few available proxies of diversification and further work on developing other proxies is much needed. Further work may also examine the long-term impact of diversification on UK firms. This study considered Brexit as a quasi-natural experiment, and this study could be applied to other deglobalization events like COVID-19 and can enhance the generalizability of diversification strategy in the deglobalized world. Findings may stimulate future work to explore how another form of diversification – product diversification has affected firm returns around Brexit. Finally, this study has focused on the UK as its base case. It may be interesting to corroborate the findings by exploring the impact of Brexit on European firms, who hitherto Brexit, had some operations in the UK.
Practical implications
This work offers some insights for policymakers and regulators around the impact of deglobalization on local firms. Findings suggest that these trends significantly negatively impact the most vulnerable firms (smaller firms with less global reach), while their larger counterparts with significant global reach might be insulated. This finding is important for determining the nature of support needed by different firms in times of deglobalization. The work also offers insights to managers of firms operating in countries where there are real prospects of deglobalization. Specifically, the work highlights the importance of geographic diversification when free movement of goods, services and people is restricted.
Originality/value
This study shows that a certain group of globally diversified firms earned significantly higher returns from the prospect of the UK leaving the EU, thereby highlighting the value of geographic diversification in a time of deglobalization.
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Martin Beaulieu, Jacques Roy, Denis Chênevert, Claudia Rebolledo and Sylvain Landry
The Covid-19 pandemic generated significant changes in the operating methods of hospital logistics departments. The objective of this research is to understand how these changes…
Abstract
Purpose
The Covid-19 pandemic generated significant changes in the operating methods of hospital logistics departments. The objective of this research is to understand how these changes took place, what collaboration mechanisms were developed with clinical authorities and, to what extent, logistics and clinical care activities should be decoupled to maximize each area's contribution?
Design/methodology/approach
The case study is selected to investigate practices implemented during the COVID-19 pandemic in hospitals in Canada. The pandemic presented an opportunity to contrast practices implemented in response to this crisis with those historically used in this environment.
Findings
The strategy of decoupling logistical tasks of an operational nature from clinical activities is well-founded and helps free clinical staff from tasks for which they are not trained. However, the decoupling of operational tasks should be combined with an integration of the clinical information flow to the logistics hub players. With this clinical information, the logistics hub can generate its full potential enabling better inventory management decisions to be made.
Originality/value
The concept of decoupling is studied to identify configurations that offer the best benefits for clinical staff.
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