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Open Access
Article
Publication date: 28 August 2021

Cristian Baú Dal Magro and Roberto Carlos Klann

Although board interlocking underlying forces are largely hidden, the purpose of this paper is to provide managers, auditors, analysts, regulators and other stakeholders with…

Abstract

Purpose

Although board interlocking underlying forces are largely hidden, the purpose of this paper is to provide managers, auditors, analysts, regulators and other stakeholders with sociological board interlocking information considering the different backgrounds of their members.

Design/methodology/approach

The research sample gathered 1,606 observations from 2010 to 2017. For data analysis, the direct and indirect board interlocking linkages, considering the different backgrounds of board members, established the centrality indicators. Subsequently, the authors used these indicators according to each measured background in the regression models.

Findings

The results indicate that the political background of board interlocking members is positively related to real earnings management practices, while the financial background has a mitigating effect on such practices.

Research limitations/implications

The findings suggest that individual skills and interests conveyed across the corporate social network have shaped corporate governance, with distinct impacts on the quality of accounting information.

Practical implications

The authors conclude that both backgrounds could have implications on agency conflicts, increasing (policy) or reducing (financial) information asymmetry between the company and its various stakeholders, which indicates that the authors must consider sociological and not just economic aspects within corporate governance.

Social implications

The sociological background of individuals is necessary for the congruence of monitoring mechanisms, and consequently, the quality of accounting information.

Originality/value

This study examines the influence of the political and financial background of board interlocking members on real earnings management practices in Brazilian publicly traded companies in the International Financial Reporting Standards post-adoption period.

Details

RAUSP Management Journal, vol. 56 no. 4
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 12 October 2018

Andreia Carpes Dani, Jaime Dagostim Picolo and Roberto Carlos Klann

This paper aims to analyze the influence of gender diversity on the relationship between corporate social responsibility (CSR), corporate governance (CG) and economic and…

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Abstract

Purpose

This paper aims to analyze the influence of gender diversity on the relationship between corporate social responsibility (CSR), corporate governance (CG) and economic and financial performance of Brazilian publicly traded companies.

Design/methodology/approach

The sample comprises 68 non-financial public companies comprising the IBX100 index of BM&FBOVESPA. For that, it was used panel data modeling, correlation and ranking by TOPSIS method.

Findings

The results suggest a significant relationship between CG and economic–financial performance when mediated by gender diversity. This relationship was not observed between CSR and economic–financial performance. Thus, it can be concluded that in a diversified board of directors, in terms of gender, better monitoring of managers can occur because of the increase in their independence in decisions, as well as performance increase. These results diverge from the literature on the influence of women’s participation in corporate boards in CSR. It is assumed that this result is because of the fact that the participation of women is recent in Brazil.

Research limitations/implications

The main limitations are the number of companies analyzed, the choice of ISE index to verify the CSR variable and the metric used to verify the CG mechanisms.

Originality/value

In general, this research contributes to the literature of the area, especially in Brazil, in confirming that the mediating variable gender diversity makes the relationship between CG and performance more significant.

Details

RAUSP Management Journal, vol. 54 no. 2
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 28 September 2018

Cristian Baú Dal Magro, Roberto Carlos Klann and Vanessa Edy Dagnoni Mondini

CEOs’ (chief executive officer) term of office may explain discretionary accruals as a result of opportunistic behavior arising during certain periods of the term of office…

Abstract

Purpose

CEOs’ (chief executive officer) term of office may explain discretionary accruals as a result of opportunistic behavior arising during certain periods of the term of office. Therefore, CEOs, in their early years of office, have incentives to report results that meet market expectations. In turn, CEOs in their senior year may be motivated to use discretionary accruals to gain private benefits. In this scenario, corporate governance mechanisms play an important role in monitoring relationships. Hence, the purpose of this study is to verify the influence of monitoring mechanisms on the relationship between CEOs’ term of office and discretionary accruals.

Design/methodology/approach

Descriptive statistics, multiple cross-sectional regression to estimate the accruals and regression of panel data to test the hypotheses were used. The sample comprised 195 companies listed on BM&FBovespa.

Findings

The results indicated that CEOs’ long term of office has a negative impact on the level of discretionary accruals, and thus, Brazilian CEOs with a longer term of office tend to establish a certain reputation in the stock market. On the other hand, it is concluded that CEOs’ intentions, in the first years of term, are positively related to the use of accruals and that the monitoring mechanisms can minimize these CEOs’ opportunistic practices.

Originality/value

The results broaden the literature on corporate governance, pointing that different systems of variable remuneration may influence CEOs’ willingness to manage results in their last year of term.

Details

RAUSP Management Journal, vol. 53 no. 4
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 25 July 2008

Ilse Maria Beuren, Nelson Hein and Roberto Carlos Klann

The paper seeks to analyze the impact of differences between the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles in the United…

6324

Abstract

Purpose

The paper seeks to analyze the impact of differences between the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles in the United States (US GAAP) in the economic‐financial indicators of English companies.

Design/methodology/approach

The research is characterized as descriptive‐quantitative, using regression and correlation analysis. The study was developed on 37 English companies that negotiate American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE). Documental research consisted of accounting statements (AS) from 2005 sent to the London Stock Exchange (LSE) and to the NYSE.

Findings

The research shows percentage differences in the economic‐financial indicators of English companies, calculated based on AS sent to the LSE and the NYSE that suggest divergences between the IFRS and the US GAAP. However, analysis of regression and correlation indicate significant correlation between the differences of these indicators. Thus, it was concluded that the economic‐financial indicators are not affected in a significant way by the divergences in the accounting standards considered.

Research limitations/implications

As limitations, the economic‐financial indicators chosen can be pointed out. Therefore, in the individual analysis of each indicator and of each company there are greater or lesser differences that are dependent on the existence of the elements that possess difference in the applicable norms and their sums.

Originality/value

The focus of this study is the information asymmetry that results from the differences between accounting standards that are applied. It is intended to advance research with a study of the impact provoked in the economic‐financial indicators from a sample of companies that release AS in IFRS and US GAAP.

Details

Managerial Auditing Journal, vol. 23 no. 7
Type: Research Article
ISSN: 0268-6902

Keywords

Book part
Publication date: 23 March 2017

Barbara de Lima Voss, David Bernard Carter and Bruno Meirelles Salotti

We present a critical literature review debating Brazilian research on social and environmental accounting (SEA). The aim of this study is to understand the role of politics in…

Abstract

We present a critical literature review debating Brazilian research on social and environmental accounting (SEA). The aim of this study is to understand the role of politics in the construction of hegemonies in SEA research in Brazil. In particular, we examine the role of hegemony in relation to the co-option of SEA literature and sustainability in the Brazilian context by the logic of development for economic growth in emerging economies. The methodological approach adopts a post-structural perspective that reflects Laclau and Mouffe’s discourse theory. The study employs a hermeneutical, rhetorical approach to understand and classify 352 Brazilian research articles on SEA. We employ Brown and Fraser’s (2006) categorizations of SEA literature to help in our analysis: the business case, the stakeholder–accountability approach, and the critical case. We argue that the business case is prominent in Brazilian studies. Second-stage analysis suggests that the major themes under discussion include measurement, consulting, and descriptive approach. We argue that these themes illustrate the degree of influence of the hegemonic politics relevant to emerging economics, as these themes predominantly concern economic growth and a capitalist context. This paper discusses trends and practices in the Brazilian literature on SEA and argues that the focus means that SEA avoids critical debates of the role of capitalist logics in an emerging economy concerning sustainability. We urge the Brazilian academy to understand the implications of its reifying agenda and engage, counter-hegemonically, in a social and political agenda beyond the hegemonic support of a particular set of capitalist interests.

Details

Advances in Environmental Accounting & Management: Social and Environmental Accounting in Brazil
Type: Book
ISBN: 978-1-78635-376-4

Keywords

Article
Publication date: 29 October 2019

Roberto Tommasetti, Marcelo Á. da Silva Macedo, Frederico A. Azevedo de Carvalho and Sergio Barile

The purpose of this paper is to contribute to the literature on financial reporting quality (FRQ) within family firms (FFs), assessing whether longevity can determine a different…

Abstract

Purpose

The purpose of this paper is to contribute to the literature on financial reporting quality (FRQ) within family firms (FFs), assessing whether longevity can determine a different propensity to earning management (EM) behaviors.

Design/methodology/approach

The sample, composed by Italian and Brazilian listed family (and non-family) firms, is segregated into old and young. For each subsample, unsigned discretionary accruals are calculated, using two different EM models. A linear regression model is then proposed, together with some robustness tests, to confirm the research hypothesis.

Findings

The outcome is that, within FFs, the entrenchment effect seems to be diminishing with the company’s age, up to become lower than the alignment effect. With some caveat, research also demonstrates that old FFs are more propense to supply higher FRQ than any other subsample group.

Research limitations/implications

The authors demonstrated that, in terms of EM decision process, FFs become virtuous just with time. More research is needed to evaluate the impact of the share and management control separately and to analyze different generation segmentation.

Practical implications

This paper could help non-family stakeholders, as it shows that different company types (family vs non-family), at a different stage of the life-cycle (young vs old) have a different attitude toward FRQ. On the other hand, family owners could exploit the longevity as a value driver.

Originality/value

This paper suggests that agency theory and socio-emotional theory are complementary in explaining the family control role in earnings management decisions. The study also contributes to the debate of FF homogeneity and on risk behavior in FFs, often portrayed as having a patient capital.

Details

Journal of Family Business Management, vol. 10 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

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