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1 – 3 of 3Saleh Abd Alhadi, Rosmila Senik, Jalila Johari, Ridzwana Mohd Said and Hairul Suhaimi Nahar
This study aims to investigate whether higher earnings quality is related to the existence of multiple directorships among corporate boards and whether this relationship varies…
Abstract
Purpose
This study aims to investigate whether higher earnings quality is related to the existence of multiple directorships among corporate boards and whether this relationship varies with the quality of investor protection.
Design/methodology/approach
This paper used a dynamic panel data modelling on the sample of 2,090 firm-year observations over the period from 2007 to 2016 in Malaysia. The generalized method of moments estimators were used to deal with endogeneity and other econometric problems.
Findings
This study finds that the accumulation of several outside directorships is negatively associated with the firm's earnings quality, as measured by the magnitude of discretionary accruals. More importantly, the findings provide evidence that multiple directors are more efficient in improving earnings quality in healthy investor protection environment.
Practical implications
The appointment of directors should be based on market-based and not on a relationship (i.e. financial and industry professionals).
Originality/value
The results highlight the importance of interaction between internal and external governance mechanisms to improve the firm's financial performance, investment and market efficiency. High-quality investor protection and law enforcement are significant for enhancing the monitoring role of multiple directorships in improving earnings quality.
Details
Keywords
Mushtaq Yousif Alhasnawi, Ridzwana Mohd Said, Sajead Mowafaq Alshdaifat, Khaled Ahmed Elorabi, Maytham Hameed Al-Hasnawi and Ali Hussein Khudhair
Employee participation in budgeting enhances motivation and commitment, leading to better performance by enhancing ownership. Within Iraqi higher education institutions (HEIs)…
Abstract
Purpose
Employee participation in budgeting enhances motivation and commitment, leading to better performance by enhancing ownership. Within Iraqi higher education institutions (HEIs), the current investigation delves into the influence of participative budgeting on managerial performance. Drawing upon goal-setting theory, this study discerns budget goal commitment as a mediating variable while also examining directive leadership as a moderator in the dynamics of this association.
Design/methodology/approach
The current study used partial least squares structural equation modelling (PLS-SEM) using SmartPLS 4.0. 373 questionnaires were collected from managers in Iraqi public universities, with 58.37% responding.
Findings
The findings show that budget goal commitment partially mediates the connection between budget participation and managerial performance. Furthermore, the results showed that directive leadership increases the positive associations between budget goal commitment and managerial performance.
Originality/value
This study expands the existing literature by shedding light on the mediating role of budget goal commitment and the moderating influence of directive leadership. It also enriches the discourse in management accounting by providing a more elucidation of how employee involvement in the budgeting process enhances managerial performance.
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Keywords
Ridzwana Mohd Said, Maliah Sulaiman and Nik Nazli Nik Ahmad
The present study aims to examine the effect of environmental information on fund managers’ investment and bank officers’ lending decisions. Specifically, it looks at the effect…
Abstract
Purpose
The present study aims to examine the effect of environmental information on fund managers’ investment and bank officers’ lending decisions. Specifically, it looks at the effect of qualitative and quantitative forms of environmental information to their decisions.
Design/methodology/approach
Drawing from the normative pressure of institutional theory, the study seeks to identify the extent to which education and professional networks influence investment and lending decisions of fund managers and bank officers. A laboratory experiment was used to collect the data. Twenty-three subjects volunteered in each experimental group, totalling 69 responses from fund managers and bank officers. The subjects were Master of Administration (MBA) students in universities located in Selangor and Kuala Lumpur, Malaysia, to proxy for real practitioners.
Findings
The results reveal that fund managers and bank officers do not incorporate environmental information in their investment and lending decisions. Thus, the normative pressure of institutional theory is supported.
Research limitations/implications
Acknowledging the limitations of data generalisability using student surrogates, future research utilising real practitioners is proposed.
Practical implications
Recognising the importance of environmental information to be incorporated in investment and lending decisions of these major stakeholders, the results suggest universities, professional bodies and companies need to raise awareness concerning the importance and relevance of environmental information in various decisions.
Originality/value
The study offers some preliminary insights into the use of environmental information by fund managers and bank officers in Malaysia.
Details