Search results
21 – 30 of over 56000Javier Estrada and J.Ignacio Peña
Between 1988 and 1994 ten European countries introduced or modified their regulations on insider trading. We evaluate in this article the impact of such regulatory changes on the…
Abstract
Between 1988 and 1994 ten European countries introduced or modified their regulations on insider trading. We evaluate in this article the impact of such regulatory changes on the risk, return, and some other characteristics of these ten markets. After extensive testing, we find that the evidence suggests that these regulations have had little (if any) impact on the market characteristics we examine, and briefly speculate about the reasons that justify our findings.
Pep Simo, Jose M. Sallan, Vicenc Fernandez and Mihaela Enache
The purpose of this paper is to investigate the relationship between a challenging dimension of organizational citizenship behavior (OCB) and self-regulatory focus in an academic…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between a challenging dimension of organizational citizenship behavior (OCB) and self-regulatory focus in an academic work setting. Job performance indicators were included to assess the nomological validity of regulatory focus measures.
Design/methodology/approach
Data were collected using a questionnaire conducted with 251 Spanish academic workers. The data were analyzed using structural equation modeling.
Findings
Results reveal the existence of positive relationships between promotion focus and two of the outcomes: change-oriented OCB and research-oriented performance-enhancement intention. On the other hand, prevention focus had only a significant relationship with teacher-oriented performance-enhancement intention.
Research limitations/implications
The limitations of this research are twofold: on the one hand, further research should overcome the methodological limitations related with data gathering, looking for third-party measures of performance and favoring longitudinal data collection designs. On the other hand, more research is needed on the malleability of regulatory focus, defining models when prevention and promotion focus act as mediating variables.
Practical implications
Individuals with high levels of promotion focus will put their efforts on the tasks which are more valued in the processes of tenure, promotion and compensation. On the other hand, individuals with high levels of prevention focus will tend to meet the minimum of requirements and accomplish salient job duties. That can be taken into account when defining human resource policies, giving a high weight in the assessment of tenure and promotion programs to the tasks where the organization wants their promotion focus individuals to center their attention.
Originality/value
This paper is one of the first efforts of validating the Regulatory Focus at Work Scale in organizational and academic contexts different from the initial validation study. The study also contributes to research on the antecedents of change-oriented OCBs, and defines new measures of intentions to perform in specific working activities.
Details
Keywords
Meige Song, Longwei Wang, Li Wang and Wan Chen
Drawing on a sensemaking perspective, this study aims to theoretically and empirically investigate the effects of participative corporate political activity (PCPA) on radical…
Abstract
Purpose
Drawing on a sensemaking perspective, this study aims to theoretically and empirically investigate the effects of participative corporate political activity (PCPA) on radical innovation and how regulatory uncertainty and technological uncertainty affect firms’ choice of PCPA as well as its effectiveness on radical innovation.
Design/methodology/approach
Hierarchical regression analyses were conducted to test the research model based on survey data collected from 227 Chinese manufacturing firms.
Findings
The results indicate that PCPA has a significantly positive effect on radical innovation. Both regulatory and technological uncertainty are positively related to PCPA. In addition, regulatory uncertainty strengthens the positive relationship between PCPA and radical innovation, whereas technological uncertainty weakens this relationship.
Practical implications
This study reveals that firm managers should be mindful that PCPA is beneficial to firms’ radical innovation activities in China. Additionally, although regulatory uncertainty and technological uncertainty can drive firms to engage in PCPA to cope with the ambiguity they experienced, managers should also be alert to the complicated role of environment forces in enlarging or discounting the positive effect of PCPA on radical innovation.
Originality/value
The findings offer fresh insights into the use of PCPA to manage the uncertain external environment when pursuing radical innovation activities in China.
Details
Keywords
Nadine Gatzert and Thomas Kosub
Policy or regulatory risks represent one of the major barriers for renewable energy investments, especially against the background of several retrospective reductions of support…
Abstract
Purpose
Policy or regulatory risks represent one of the major barriers for renewable energy investments, especially against the background of several retrospective reductions of support schemes in Europe. This paper aims to contribute to the literature by offering a categorization of major risk drivers and determinants of policy risk associated with renewable energy projects in developed countries.
Design/methodology/approach
Based on a narrative (traditional) review of the academic literature and supported by industry studies regarding cases of support scheme cuts in Europe (from the end of 2010 until the end of 2013), the paper derives determinants of policy risks of renewable energy investments.
Findings
As a main result, the paper offers a concise categorization of major risk drivers of policy and regulatory risks associated with renewable energy investments in developed countries along with potential indicators.
Practical implications
The derived categorization of major risk drivers and the set of indicators are of high relevance for risk management and risk assessment of renewable energy investments, where understanding the underlying risk drivers is vital. The findings can thus be applied when establishing a sound risk management for renewable energy investments.
Originality/value
The paper helps (potential) investors, policymakers and regulators to assess policy risks associated with renewable energy investments.
Details
Keywords
This study aims to explore corporate earnings management practices in Australia and New Zealand before and after the regulatory changes and corporate governance reforms. The study…
Abstract
Purpose
This study aims to explore corporate earnings management practices in Australia and New Zealand before and after the regulatory changes and corporate governance reforms. The study argues that the effectiveness of regulatory reforms has to be reflected in constraining earnings management in post-reform period as compared to pre-reform period.
Design/methodology/approach
Using a sample of 3,966 firm-year observations, including all ASX and NZX listed firms for the period 2001-2006, the study examines earnings management practices in both countries in pre- and post-reform periods with appropriate statistical methods.
Findings
The results indicate some interesting phenomenon: the magnitude of earnings management did not decline after the governance reform as a positive time trend is observed in the entire sample as well as in Australian and New Zealand sub-samples, suggesting that earnings management has been growing over time. Additional test indicates no structural change has occurred before and after the new regulations. The shifting from decreasing earnings management to increasing earnings management can be interpreted as an evidence that earnings become more ‘informative’ in a more transparent disclosure regime to capture short-run benefits from regulator reforms.
Research limitations/implications
The shifting of earnings management behaviour from decreasing to increasing income can be interpreted as the outcome of more “informative”, rather than “deliberate”, earnings management in a more transparent disclosure regime to capture short-run benefits of regulatory reforms, which is worth further investigation. The findings of the study can lead regulatory authorities taking appropriate measures to promote earnings quality in corporate financial reporting from a long-run decision usefulness context. Any future reforms should be directed to protecting the interest of stakeholders as well as ensuring benefits outweighing costs for them.
Practical implications
The findings of the study can lead regulatory authorities in taking appropriate measures to promote earnings quality in corporate financial reporting from a long-run decision usefulness context.
Originality/value
The study adds value to the existing earnings management literature as well as effectiveness of regulations for the benefit of wider stakeholder groups.
Details
Keywords
Internationally public utilities, sometimes referred to as network industries, are being privatised and dedicated regulatory structures to protect the public interest are being…
Abstract
Internationally public utilities, sometimes referred to as network industries, are being privatised and dedicated regulatory structures to protect the public interest are being introduced. This study looks at the related issues of post‐privatisation performance, regulatory risk and management strategies in privatised public utilities, drawing on evidence from the UK. The main findings are, first, that in assessing the impact of privatisation on economic performance it is difficult to separate out the effects of ownership, competition, regulation and technological change. Second, that in terms of the distribution of the efficiency gains, initially investors were the main beneficiaries in the UK, but consumers gained as competition developed and regulation tightened. Third, regulated enterprises are subject to regulatory risk as well as commercial risk with implications for types of management strategies adopted. Following privatisation the dynamics of regulation involve both the regulator and management learning about regulation and the optimal strategies to adopt. The UK's experiences are educational for those countries now contemplating or in the process of introducing privatisation programmes.
Details
Keywords
The cement industry's environmental implications place climate change at the centre of sector organisations' corporate social responsibility (CSR) policies, such as the Secil…
Abstract
Purpose
The cement industry's environmental implications place climate change at the centre of sector organisations' corporate social responsibility (CSR) policies, such as the Secil Group. The organisation's CSR policies definition, narrative framing and communication are fundamental, as they can affect its reputation. This article aims to highlight the climate change framing in the Secil Group sustainability report (SR) narrative.
Design/methodology/approach
The framing theory is applied to analyse the international and sectoral climate change regulatory measures and the Secil Group SR. Document analysis is used to characterise Secil SR as a communication tool. Qualitative content analysis is used to highlight how Secil and the international and sectoral regulatory measures on climate change frame their narrative and compare each other.
Findings
The international and sectoral regulatory measures on climate change and the Secil's SR broadly frame climate change, using ethical, efficiency and effectiveness, communication and relations and law and regulation framings. The Secil's Group SR also highlights the financial frame, exposing the challenge of reconciling economic with collective interests. There is room for researchers to explore the concepts of CSR, sustainability and environment, social and governance (ESG) through the lens of complementarity.
Originality/value
This study shows that the Wehmeier and Raaz (2012) model, created to study transparency, can be applied to other communication studies. This paper explores a case study and, for this reason, is not generalisable. Although, the method and theoretical framework can be applied to any organisation.
Details
Keywords
Nonna Martinov-Bennie, Dominic S.B. Soh and Dale Tweedie
This paper aims to investigate how the roles, characteristics, expectations and evaluation practices of audit committees have adapted to regulatory change and what practices are…
Abstract
Purpose
This paper aims to investigate how the roles, characteristics, expectations and evaluation practices of audit committees have adapted to regulatory change and what practices are most conducive to effective audit committees.
Design/methodology/approach
This paper uses semi-structured interviews with audit committee chairs and chief audit executives.
Findings
While new regulation is a primary driver of changes in the roles of audit committees, the audit committee’s role has evolved beyond regulatory requirements. Audit committees are taking a more active role in organisational governance and performance in key areas such as risk management. However, while audit committees have a clear concept of what characteristics committee members require, conceptual frameworks and mechanisms for evaluating the performance of committees and their members remain underdeveloped.
Research limitations/implications
The responses of audit committees in Australia to broader regulatory trends suggest that more research is required into how audit committees function in practice, and into developing new frameworks for evaluating the committees’ performance. This paper provides an in-depth exploration of key areas of audit committee performance, and identifies aspects that might be further investigated.
Practical implications
The paper identifies key attributes of effective audit committees and especially the characteristics of audit committee members. The paper also identifies a need to improve – and in many cases create – performance evaluation frameworks and mechanisms. Given the international regulatory trend towards greater reliance on audit committees to improve governance, more policy attention is required on developing guidelines and assessment processes that evaluate whether audit committees are fulfilling their legislative mandate in practice.
Originality/value
The paper contributes to the relatively new and more specific discussion on reviewing and evaluating the performance of the board and its subcommittees.
Details
Keywords
The ability of foreign banks to market their services byestablishing a physical presence in US markets to a great extent dependsupon US legislative enactments, regulatory actions…
Abstract
The ability of foreign banks to market their services by establishing a physical presence in US markets to a great extent depends upon US legislative enactments, regulatory actions, and judicial interpretations, all of which have been subject to significant change since the late 1980s. Examines recent changes in the US regulatory structure that will have an impact on the operations and marketing strategy of agencies, branches and subsidiaries of foreign banks in US markets. The major focus is on PL 102‐242 which was signed into law in December 1991, regulatory changes designed to implement G‐10 risk‐based capital adequacy guidelines, and other regulatory efforts to impose prudential bank management policies on the US financial services sector. In general, the thrust of the legislative‐regulatory changes will be to increase the sensitivity of banks to the risk associated with their activities. This, in turn, will require a modified marketing strategy to accommodate changes in profit opportunities and in bank customers.
Details
Keywords
David Collins, Ian Dewing and Peter Russell
The purpose of this paper is to investigate the jurisdictional expansion of audit into the area of UK financial regulation. The paper draws on the analytical framework of new…
Abstract
Purpose
The purpose of this paper is to investigate the jurisdictional expansion of audit into the area of UK financial regulation. The paper draws on the analytical framework of new audit spaces (Andon et al., 2014, 2015), which built on the concept of regulatory space (Hancher and Moran, 1989), and characterises this new audit space as regulatory work.
Design/methodology/approach
Through an intensive reading of a variety of publicly available documentary sources, the paper investigates the role of auditors and accountants in the reporting accountants’ and skilled persons’ regimes in the UK under the Banking Act 1987 and the Financial Services and Markets Act 2000.
Findings
The paper identifies a new audit space characterised as regulatory work, which is made up of three distinct phases (and suggests the recent emergence of a fourth phase), and considers the extent to which these phases of regulatory work share common themes across new audit spaces identified by Andon et al. (2015) as independence, reporting, accreditation and mediating.
Originality/value
The paper identifies a further jurisdictional expansion of audit into a new audit space, characterised as regulatory work.
Details