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The purpose of this paper is to investigate why environmentally-sensitive companies still face criticism despite the extensive disclosures in their annual reports. This paper explores the extent of site-specific social, environmental and ethical (SEE) reporting by mining companies operating in Ghana.

The authors conduct an interpretive content analysis of the annual/integrated reports of mining companies for the years 2009–2014 to extract site-specific SEE information relating to the companies’ mining operations in Ghana. The authors also theorise these actions using the existentialist work of Jean-Paul Sartre, in particular his work on “bad faith, nothingness and authenticity”.

The findings suggest that SEE information disclosure at site-specific level remains problematic because of bad faith and inauthenticity by mining companies attempting to placate a range of stakeholders. Bad faith represents a form of self-deception or internal denial which manifests in corporate narratives. Inauthenticity is a self-awareness that culminates in the denunciation of corporate identity and the pursuit of external expectations. The effect is the production of inauthentic corporate accounts that is constrained by the assumption made on stakeholder expectation.

The authors apply a Sartrean lens to explore site-specific SEE. Furthermore, the authors seek to expand the social accounting research domain by drawing on Sartre’s work on “bad faith” and “nothingness”. Sartre’s work to the best of the authors’ knowledge is not explored in social accounting research.

This paper aims to understand real earnings management behavior in the context of a parent–subsidiary relationship. It explores the differences between business groups and firms that do not have controlled subsidiaries and provides potential explanations for any measured difference.

The study uses the random-effects generalized least squares (GLS) estimation to find the difference between the real earnings management behavior of business groups, represented by the ultimate parent firms and the nonparent firms from 73 countries.

The results show that ultimate parent firms have lower abnormal production costs and abnormal discretionary expenses than nonparent firms. In contrast, parent firms have higher abnormal cash flow from operations (CFO) than nonparent firms. The results are unexpected because abnormal production costs usually have a dominant direct relationship with abnormal CFO. The results indicate that business groups use a route different from manipulating production costs and discretionary expenses.

The results reveal that parent firms use a route different from manipulating production costs and discretionary expenses. The results can be used to extend the discussion to specific business group cases, such as tracing the route or allocation of real earnings management (REM) pressure from a parent firm to its listed and private subsidiaries, and if the consolidation of minority voting rights and the transitivity of control affect the behavior in its subsidiaries.

Instead of the degree of diversification or affiliation, this paper investigates REM behavior based on the parent firm's control of its subsidiaries. With this approach, the study argues that business groups prefer a route other than manipulating production costs and discretionary expenses. The results may redirect the attention of regulators to the activities of parent firms that need more policing.

The purpose of this paper is to examine and analyze the factors that affect an auditor’s efficiency in completing the audit process proxied by audit report lag. The factors used in this study are selected by looking at the characteristics of the company and the characteristics of an auditor.

Company characteristics were proxied by the audit committee effectiveness, financial condition, accounting complexity and profitability, whereas auditor characteristics were proxied with auditor reputation, audit tenure and auditors industry specialization. Populations of this study were all manufacturing companies listed in Indonesian Stock Exchange in 2014–2016. Based on the purposive sampling method, the number of samples obtained from 231 companies was 77. Multiple linear regression method was used to analyze this study. Hypothesis testing was done by statistical t-test (partial).

The results showed that partially variables of the audit committee effectiveness and profitability had a significant negative effect on audit report lag while the variable financial condition had a significant positive effect on audit report lag. Meanwhile, variables of the accounting complexity, auditor reputation, audit tenure and auditors’ industry specialization did not show significant influence on audit report lag.

This study tests both company’s and auditor’s characteristic on audit report lag that as far as authors know never been tested simultaneously.

The study aims to fill a gap in the literature on the economic impact of industrial and international diversification on firm performance in the energy sector. Li et al. (2016) investigate firms listed in China, and this study analyzes firms listed in (Western) Europe.

A sample of 129 energy firms is extracted from Datastream and covers the period from January 2009 to December 2015. Univariate and multivariate regression analyses are used to determine a plausible relation of diversification on corporate performance. Also, the difference between renewable energy firms and conventional energy firms is explored.

A univariate analysis using both return on assets and Tobin's Q as a variable shows that renewable energy firms have a higher profitability than conventional energy firms. However, a multivariate analysis does not confirm this result. The authors also document a negative relation between diversification strategies and firm performance.

The study uses main industry codes. Yet, one might make a distinction between renewable energy and conventional energy amounts with corporations. Also, the authors cover financial crisis years. Researchers might take into account more recent years.

The findings of the study highlight the importance of short-term and long-term considerations for practitioners related to demand, the energy mix, oil prices and firm strategies.

The authors contribute to the debate and the literature when identifying similarities and differences between conventional energy firms and renewable energy firms in their application of diversification strategies and their (relation to) firm performance.

This study investigates the relationship between the Chief Executive Officer's (CEO) overconfidence and financial reporting complexity in Iran, a context characterized by weak corporate governance and heightened managerial discretion.

The sample consists of 1,445 firm-year observations from 2010 to 2021. CEO overconfidence (CEOOC) is evaluated using an investment-based index, specifically capital expenditures. Financial reporting complexity (Complexity) is measured through textual features, particularly three readability measures (Fog, SMOG and ARI) extracted from annual financial statements. The ordinary least squares (OLS) regression is employed to test the research hypothesis.

Results suggest that CEOOC is positively related to Complexity, leading to reduced readability. Additionally, robustness analyses demonstrate that the relationship between CEOOC and Complexity is more distinct and significant for firms with lower profitability than those with higher profitability. This implies that overconfident CEOs in underperforming firms tend to increase complexity. Also, firms with better financial performance present a more positive tone in their annual financial statements, reflecting their superior performance. The findings remain robust to alternative measures of CEOOC and Complexity and are consistent after accounting for endogeneity issues using firm fixed-effects, propensity score matching (PSM), entropy balancing approach and instrumental variables method.

This study adds to the literature by delving into the effect of CEOs' overconfidence on financial reporting complexity, a facet not thoroughly investigated in prior studies. The paper pioneers the use of textual analysis techniques on Persian texts, marking a unique approach in financial reporting and a first for the Persian language. However, due to the inherent challenges of text mining and feature extraction, the results should be approached with caution.

The insights from this study can guide investors in understanding the potential repercussions of CEOOC on financial reporting complexity. This will assist them in making informed investment decisions and monitoring the financial reporting practices of their invested companies. Policymakers and regulators can also reference this research when formulating policies to enhance financial reporting quality and ensure capital market transparency. The innovative application of textual analysis in this study might spur further research in other languages and contexts.

This research stands as the inaugural study to explore the relationship between CEOs' overconfidence and financial reporting complexity in both developed and developing capital markets. It thereby broadens the extant literature to include diverse capital market environments.

The purpose of this paper is to investigate the differences of audit quality of financial statements among auditors, including Big 4 and non-Big 4 auditors.

By employing cross-sectional analysis of compliance (a proxy of audit quality) of goodwill impairment testing of listed firms in the context of Hong Kong, the variation of audit quality of financial statements of auditees has been shown.

Audit quality of Big 4 auditors is viewed to be higher than that of non-Big 4 audit firms and the homogeneity of audit quality among Big 4 auditors is not long accepted, but variation.

Even though unqualified opinions have been given on the auditors’ reports, the quality of financial statements audit is a skeptical issue because of the high level of non-compliance of goodwill impairment testing under International Financial Reporting Standards.

This study does emphasize the higher audit quality of financial statements of Big 4 auditors than that of non-Big 4 auditors and stresses the variation of audit quality among Big 4 auditors.

The study aims to explore how segmentation as a methodology can be adapted to the healthcare context to provide a more nuanced understanding of the served population and to facilitate the design of patient-centric services.

The study was based on a collaborative project with a national healthcare organization following the principles of action design research. The study describes the quantitative segmentation performed during the project, followed by a qualitative interview study of how segments correspond with patient behaviors in an actual healthcare setting, and service design workshops facilitated by segments. A number of design principles are outlined based on the learnings of the project.

The segmentation approach increased understanding of patient variability within the service provider organization and was considered an effective foundation for modular service design. Patient characteristics and life circumstances were related to specific patterns of health behaviors, such as avoidance or passivity, or a persistent proactivity. These patterns influenced the patients' preferred value co-creation role and what type of support patients sought from the care provider.

The proposed segmentation approach is immediately generalizable to further healthcare contexts and similar services: improved understanding of patients, vulnerable patients in particular, improves the fit and inclusivity of services.

The segmentation approach to service design was demonstrated to be effective in a large-scale context. The approach allows service providers to design service options that improve the fit with individual patients' needs for support and autonomy. The results illuminate how patient characteristics influence health and value co-creation behaviors.

Mobile services are expanding rapidly, and in this tremendously dynamic environment, companies should provide value-added services to meet users’ demand. In this context, the study aims to determine whether different user groups exist in this market and profile them.

Based on the information of 568 mobile service users, a research was developed in the context of a mature mobile services market – Spain. A behavior-based cluster analysis is developed by means of confirmatory factor analysis (CFA), followed by two-step clustering. Then, an ANOVA and post hoc Tukey tests are conducted to confirm differences among the obtained clusters.

The study findings show that mobile service users cannot be perceived as a homogenous group, as different users with different behaviors coexist in this market. More specifically, four behavior-based segments emerge in the mobile service sector: “service connoisseurs,” “uninvolved pragmatics,” “potential switchers” and “delighted loyal”; “potential switchers” being the most challenging segment for mobile service companies.

This study reports mobile service users’ heterogeneity; and in turn, mobile service managers should consider customers as four different types, instead of considering them as one single customer.

Los servicios móviles se están expandiendo rápidamente y en este entorno tremendamente dinámico, las compañías de servicios móviles deberían de proporcionar servicios de valor añadido para satisfacer la demanda de sus usuarios. En este contexto, esta investigación tiene como objetivo determinar si existen diferentes grupo de usuarios en este mercado y aportar su pefil.

Sobre la base de información de 568 usuarios de servicios móviles se lleva a cabo una investigación en el contexto de un mercado de servicios móviles maduro –España-. Se lleva a cabo un análisis clúster basado en el comportamiento de los usuarios, mediante un análisis factorial confirmatorio (CFA), seguido de un análisis clúster bi-etápico. A continuación, se realizan un test Anova y un test pos hoc de Tuckey para confirmar las diferencias entre los grupos obtenidos.

Los resultados de la investigación muestran que los usuarios de servicios móviles no pueden ser percibidos como un grupo homogéneo, ya que en este mercado coexisten diferentes usuarios con diferentes comportamientos. Más específicamente, cuatro segmentos de usuarios surgen en el sector de los servicios móviles basados en su comportamiento: “conocedores del servicio”, “pragmáticos no involucrados”, “potenciales cambiadores de servicio” y “leales encantados”, siendo “potenciales cambiadores de servicio” los que presentan un mayor desafío las empresas de servicios móviles.

Este estudio muestra la heterogeneidad de los usuarios de servicios móviles, y por tanto, los gestores de los servicios móviles deben considerar a sus clientes como cuatro tipos diferentes, en lugar de considerarlos como un único tipo de cliente.

移动服务正在迅速扩张，在这个巨大的动态环境中，企业应该提供增值服务来满足用户的需求。在此背景下，本研究旨在确定该市场是否存在不同的用户群体，并对其进行分析。

基于568名移动服务用户的信息，在一个成熟的移动服务市场（西班牙）的背景下开展了本次研究。通过确认性因子分析（CFA）进行基于行为的聚类分析，然后进行两步聚类。最后，方差分析和事后Tukey检验被用于确认获得的聚类之间的差异。

研究结果表明，移动服务用户不能被看作是一个同质的群体，因为在这个市场上共存着不同的用户，他们具有不同的行为。具体来说，移动服务领域可以划分为基于用户行为的四个细分市场："服务行家"、"不参与的实用主义者"、"潜在的转换者 "和 "愉悦的忠诚者"；其中，"潜在的转换者 "是对移动服务企业来说最具挑战性的细分市场。

本研究报告了移动服务用户的异质性；反过来，移动服务管理者应该考虑把客户划分为四种不同的类型，而不是将他们视为一个单一的整体。

The aim of the paper is to investigate the associations between hedge fund activism and corporate internal control weaknesses.

In this paper, the authors identify hedge fund activism events using 13D filings and news search. After matching with internal control related information from Audit Analytics, the authors utilize ordinary least square (OLS) and propensity score matching (PSM) to analyze the data.

The authors find that after hedge fund activism, target firms report additional internal control weaknesses, and these identified internal control weaknesses are remediated in subsequent years, leading to better financial-reporting quality.

The findings indicate that both managers and activists have incentives to develop a stronger internal control environment after targeting.

The study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their social and environmental reporting (SER) from 2006 to 2014. To achieve this aim, the author limits the data two years before (i.e. from 2006 to 2007) and six years after (i.e. from 2009 to 2014) the implementation of the Sustainable Development Framework in the mining sector in 2008.

Using the techniques of content analysis and interpretive textual analysis, this study examines 27 social and environmental responsibility reports published between 2006 and 2014 by three ICMM corporate mining members. The study develops a disclosure index based on the earlier work of Hackston and Milne (1996), together with other disclosure items suggested in the extant literature and considered appropriate for this work. The disclosure index for this study comprised six disclosure categories (“employee”, “environment”, “community involvement”, “energy”, “governance” and “general”). In each of the six disclosure categories, only 10 disclosure items were chosen and that results in 60 disclosure items.

A total of 830 out of a maximum of 1,620 social and environmental responsibility indicators, representing 51% (168 employees, 151 environmental, 145 community involvement, 128 energy, 127 governance and 111 general) were identified and examined in company SER. The study showed that the sample companies relied on multiple strategies for managing pragmatic legitimacy and moral legitimacy via disclosures. Such practices raise questions regarding company-specific disclosure policies and their possible links to the quality/quantity of their disclosures. The findings suggest that managers of mining companies may opt for “cherry-picking” and/or capitalise on events for reporting purposes as well as refocus on company-specific issues of priority in their disclosures. While such practices may appear appropriate and/or timely to meet stakeholders’ needs and interests, they may work against the development of comprehensive reports due to the multiple strategies adopted to manage pragmatic and moral legitimacy.

A limitation of this research is that the author relied on self-reported corporate disclosures, as opposed to verifying the activities associated with the claims by the sample mining companies.

The findings from this research will help future social and environmental accounting researchers to operationalise Suchman’s typology of legitimacy in other contexts.

With growing large-scale mining activity, potential social and environmental footprints are obviously far from being socially acceptable. Powerful and legitimacy-conferring stakeholders are likely to disapprove such mining activity and reconsider their support, which may threaten the survival of the mining company and also create a legitimacy threat for the whole mining industry.

This study innovates by focusing on Suchman’s (1995) typology of legitimacy framework to interpret SER in an industry characterised by potential social and environmental footprints – the mining industry.