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Article
Publication date: 5 July 2022

Nasser S. Kh. Al-Enzy, Reza Monem and Shamsun Nahar

This paper aims to examine the association between the adoption experience of the International Financial Reporting Standards (IFRS) and the quality of reported earnings…

Abstract

Purpose

This paper aims to examine the association between the adoption experience of the International Financial Reporting Standards (IFRS) and the quality of reported earnings in the Gulf Cooperation Council (GCC) region – a region that exhibits several features of emerging economies.

Design/methodology/approach

The authors analyse a hand-collected dataset of 222 firms across 4 countries in the GCC region over the period 2012–2017 and measure “IFRS experience” as the number of years since a country has mandatorily adopted the IFRS. In measuring earnings quality, the authors focus on two properties of reported earnings: persistence and accruals quality and employ multivariate regression models based on two-way cluster-robust standard errors and fixed-effects.

Findings

This study’s findings suggest that earnings persistence is decreasing, and discretionary accruals are increasing in IFRS experience in the GCC region over the period 2012–2017. The authors conclude that reported earnings quality has declined following IFRS adoption in this sample.

Research limitations/implications

The authors contribute to the IFRS literature in the GCC region, which is in its infancy.

Practical implications

This study’s findings have important policy implications for countries that are about to adopt or are in the early implementation stage of IFRS and suggest that strong enforcement of accounting standards along with improvement in the institutional environments might be needed for improving financial reporting quality.

Originality/value

The authors provide the first cross-country evidence on the relation between IFRS adoption in the GCC region and earnings quality. Moreover, unlike most prior studies, the authors employ a continuous measure that is superior to a binary measure in capturing the effect of IFRS adoption.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 10 February 2022

Shamsun Nahar and Mohammad Istiaq Azim

The paper aims to provide insights into executives' perceptions of risk management disclosures and such disclosures' determinants. The paper extends the emerging…

Abstract

Purpose

The paper aims to provide insights into executives' perceptions of risk management disclosures and such disclosures' determinants. The paper extends the emerging literature by using institutional theories in the context of a developing country.

Design/methodology/approach

Semi-structured in-depth interviews were conducted with 36 executives directly involved in risk management disclosures, policy-making and monitoring.

Findings

The interview data show evidence that corporate risk management disclosures are still at a low level. The reasons for non-disclosure can be related to institutional weaknesses, lack of disciplinary action and political interference. Additionally, central bank autonomy, limited perception of accountability, demand from influential stakeholders, lack of financial literacy, aim to keep annual reports brief, etc. results in the dearth of risk disclosure by the banks.

Research limitations/implications

The study suggests that understanding the importance of risk management disclosures and preparing for the uncertainty will keep the business moving.

Originality/value

The study seeks to contribute to the literature by investigating the executives' perceptions of risk management disclosures and its' determinants in the context of a developing country where non-compliance to the regulatory standard is high.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 20 April 2020

Shamsun Nahar, Mohammad Istiaq Azim and Md Moazzem Hossain

The purpose of this paper is to explore to what extent risk disclosure is associated with banks’ governance characteristics. The research also focuses on how the business…

Abstract

Purpose

The purpose of this paper is to explore to what extent risk disclosure is associated with banks’ governance characteristics. The research also focuses on how the business environment and culture may create a bank’s awareness of risk management and its disclosure. This study is conducted in a setting where banks are not mandated to follow international standards for their risk disclosures.

Design/methodology/approach

Using 300 bank-year observations comprising hand-collected private commercial bank data, the study uses regression analysis to investigate the influence of risk governance characteristics on risk disclosure.

Findings

This paper reports a positive relationship between risk disclosure and banks’ governance characteristics, such as the presence of various risk committees and a risk management unit.

Practical implications

Because studies are lacking on risk disclosure and risk governance conducted in developing countries, it is expected that this research will make a significant contribution to the literature and provide a foundation for further research in this field.

Social implications

This study complements the corporate governance literature, more specifically the risk governance literature, by incorporating agency theory, institutional theory and proprietary cost theory to provide robust evidence of the impact of risk governance practices in the context of a developing economy.

Originality/value

Previous studies on risk disclosure and governance determinants primarily involve developed countries. This paper’s contribution is to examine risk disclosure and risk governance characteristics in a developing country in which reporting according to international standards is effectively voluntary.

Details

International Journal of Accounting & Information Management, vol. 28 no. 4
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 3 October 2016

Shamsun Nahar, Mohammad Azim and Christine Anne Jubb

This study aims to examine the relationship among corporate risk disclosure, cost of equity capital and performance within banking institutions in a developing country…

3854

Abstract

Purpose

This study aims to examine the relationship among corporate risk disclosure, cost of equity capital and performance within banking institutions in a developing country setting. The authors argue that corporate risk disclosure reduces the cost of capital as investors attain better information and have confidence in the business and that less risk disclosure may generate ambiguity for potential stakeholders.

Design/methodology/approach

This study uses the population of all 30 listed banks on the Dhaka Stock Exchange, Bangladesh, for the years 2006 to 2012 and uses three-stage least-squares simultaneous equations to deal with endogeneity issues.

Findings

There is evidence that Bangladesh has voluntarily adopted the International Financial Reporting Standard 7 – Financial Instruments: Disclosures (IFRS 7) and Basel II: Market Discipline and that these standards enhance risk disclosure even where compliance is not compulsory. The cost of capital is found to be negatively associated with risk disclosure, which has an inverse relationship with bank performance.

Originality/value

This study provides a link between risk disclosure, cost of capital and performance. It fills a gap in the literature by providing a longitudinal study of risk disclosure in the banking sector of Bangladesh. This research also highlights the importance of appropriate risk disclosure for banks and suggests its importance in the process of fulfilling stakeholders’ demands.

Details

International Journal of Accounting & Information Management, vol. 24 no. 4
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 5 December 2016

Shamsun Nahar, Mohammad Azim and Christine Jubb

The purpose of this paper is to investigate the extent of risk disclosure and the factors determining this for all listed banks in Bangladesh.

1857

Abstract

Purpose

The purpose of this paper is to investigate the extent of risk disclosure and the factors determining this for all listed banks in Bangladesh.

Design/methodology/approach

Relying on a theoretical framework based on agency theory and the creation of a risk disclosure index (RDI) based on International Financial Reporting Standard (IFRS) 7, Basel II: market discipline, and prior literature, hand-collected data from the annual reports of all 30 banks traded on the Dhaka Stock Exchange over 2007-2012, creating 180 bank-year observations, are analysed.

Findings

The study suggests that implementation of IFRS 7 and Basel II: market discipline standards in a non-mandated environment raised the extent of risk disclosure in every category of financial institution risk (market, credit, liquidity, operational and equities). The effect can be attributed to regulatory concerns and voluntary adoption of international disclosure standards in the banking industry in Bangladesh. Specifically, whilst the determinants of disclosure vary across types of risk, the number of risk committees, leverage, company size, the existence of a risk management unit, board size and a Big4 affiliate auditor are significant determinants of at least one category of risk disclosure.

Research limitations/implications

The source of risk disclosures is limited to listed banks’ annual reports.

Practical implications

The RDI, developed in this paper, contributes to the literature by: first, quantifying the extent of each of five types of risk disclosure; and second, identifying the factors determining them. Stakeholders, particularly depositors and investors, can use this index to select or monitor their bank of interest.

Originality/value

The RDI was developed according to the most relevant standards – IFRS 7 and Basel II: market discipline, plus prior scholarly literature. This type of benchmarking has not been conducted to date in previous studies. Inferences about risk disclosure are based on archival data derived from all listed banks in a virtually unregulated environment. Further, the study complements the literature by providing support for the applicability of agency theory in investigating the level of risk disclosure by banks.

Details

Asian Review of Accounting, vol. 24 no. 4
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 21 November 2008

Muhiuddin Haider, Shamsun Nahar Ahamed and Teresa Leslie

The purpose of this paper is to increase awareness about the issues the world and, more so, Bangladesh faces in overcoming avian influenza. Also, the purpose is to examine…

411

Abstract

Purpose

The purpose of this paper is to increase awareness about the issues the world and, more so, Bangladesh faces in overcoming avian influenza. Also, the purpose is to examine whether the avian influenza situation and communication strategy adopted in the country follows risk communication principles.

Design/methodology/approach

An extensive literature review using recently published works, government documents, and organizational reports is employed.

Findings

If not controlled, avian influenza has the potential to become a global pandemic with extremely high morbidity and mortality rates. Bangladesh presently has policies and programs in place to attempt to control the virus but many challenges, such as the implementation of an effective risk communication strategy, remain.

Originality/value

This paper identifies a wide variety of sources that would be useful information for policy makers and program managers.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 2 no. 4
Type: Research Article
ISSN: 1750-6123

Keywords

Article
Publication date: 7 March 2016

Shamsun Nahar, Christine Jubb and Mohammad I Azim

The purpose of this paper is to investigate the association between risk governance and bank performance in a country where disclosure of risk information is virtually…

2382

Abstract

Purpose

The purpose of this paper is to investigate the association between risk governance and bank performance in a country where disclosure of risk information is virtually voluntary.

Design/methodology/approach

Using 210 bank-year observations comprising hand-collected data for the period 2006-2012, the study uses regression analysis to test whether a significant relationship exists between risk governance and banks’ accounting- and market-based performance.

Findings

This paper investigates risk governance in terms of risk disclosure, number of risk committees and existence of a risk management unit, controlling for other corporate governance variables. Accounting-based performance is measured by return on equity and return on assets; market-based performance is measured by Tobin’s q and buy-and-hold returns. The results show that there is a significant relationship between risk governance and bank performance measures used in this study.

Research limitations/implications

This paper complements the governance literature by incorporating agency and neo-institutional theory to provide robust evidence that risk monitoring and management are associated with bank performance, which has become extremely important following the global financial crisis (2007-2008).

Practical implications

Empirical evidence in this paper suggests that risk governance characteristics can be used as channels to improve bank performance. In addition, stakeholders may find these results useful in selecting their preferred bank.

Originality/value

The uniqueness of this paper lies in its country setting. Most studies on governance and performance involve developed countries. This paper’s contribution is to examine the association of risk governance characteristics for both accounting-based and market-based performance in a developing economy setting, with virtually voluntary compliance mechanisms in place.

Details

Managerial Auditing Journal, vol. 31 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

Content available
Article
Publication date: 8 February 2022

Reza Monem

658

Abstract

Details

Accounting Research Journal, vol. 35 no. 1
Type: Research Article
ISSN: 1030-9616

Book part
Publication date: 12 June 2020

Farzana Nahid

Mentoring is an intense relationship between a senior experienced individual who is the mentor and a less experienced individual who is the protégé. Mentors provide…

Abstract

Mentoring is an intense relationship between a senior experienced individual who is the mentor and a less experienced individual who is the protégé. Mentors provide counselling, guidance, advice, support and feedback for the protégé's personal and professional development. With the well-being of the family as the central issue in family firms, mentoring is often seen to be akin to a parent–child relationship. In Bangladesh, paternalistic and informal parental mentoring is the norm for grooming children both morally and professionally. Using six caselets of large family firms of Bangladesh, this chapter provides insight into the paternalistic style of mentoring, and also the generational differences in mentoring between the firm's owner and his successor.

Details

Mentorship-driven Talent Management
Type: Book
ISBN: 978-1-78973-691-5

Keywords

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