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1 – 10 of 95Abdul Rashid and Muhammad Saarim Ghazi
The objective of this study is to present a theoretical framework, which helps ascertain the meanings of the Sharīʿah audit quality and identify the factors that affect it.
Abstract
Purpose
The objective of this study is to present a theoretical framework, which helps ascertain the meanings of the Sharīʿah audit quality and identify the factors that affect it.
Design/methodology/approach
The current literature of conventional and Islamic finance on audit quality is critically reviewed to propose the theoretical framework for the quality of Sharīʿah audit.
Findings
The paper suggests that for a better Sharīʿah compliance at Islamic banking institutions (IBIs), the role of audit practitioners is very much indispensable. The competency of the practitioner is one of the important factors that affect the quality of the Sharīʿah audit. Assessment and identification of Sharīʿah risk in different financial arrangements, contracts and transactions require a unique competency on the part of the auditor, that is, gripping Sharīʿah law besides traditional assurance skills and techniques.
Practical implications
The Sharīʿah compliance is one of the primary objectives of IBIs, which works at the conceptual level, product development and implementation level, various business models and governance level. Sharīʿah audit function, internal or external, is an important component of Sharīʿah governance framework and provides an independent assessment of IBIs’ compliance with the Sharīʿah rules and principles and helps in managing the Sharīʿah non-compliance risk and ensuring sound internal Sharīʿah control system.
Originality/value
The paper proposes a theoretical framework for defining the Sharīʿah audit quality and determining the factors that are significant in affecting the Sharīʿah audit quality in the IBIs of Pakistan.
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Gennaro Maione, Corrado Cuccurullo and Aurelio Tommasetti
The paper aims to carry out a comprehensive literature mapping to synthesise and descriptively analyse the research trends of biodiversity accounting, providing implications for…
Abstract
Purpose
The paper aims to carry out a comprehensive literature mapping to synthesise and descriptively analyse the research trends of biodiversity accounting, providing implications for managers and policymakers, whilst also outlining a future agenda for scholars.
Design/methodology/approach
A bibliometric analysis is carried out by adopting the Preferred Reporting Items for Systematic Review and Meta-Analyses protocol for searching and selecting the scientific contributions to be analysed. Citation analysis is used to map a current research front and a bibliographic coupling is conducted to detect the connection networks in current literature.
Findings
Biodiversity accounting is articulated in five thematic clusters (sub-areas), such as “Natural resource management”, “Biodiversity economic evaluation”, “Natural capital accounting”, “Biodiversity accountability” and “Biodiversity disclosure and reporting”. Critical insights emerge from the content analysis of these sub-areas.
Practical implications
The analysis of the thematic evolution of the biodiversity accounting literature provides useful insights to inform both practice and research and infer implications for managers, policymakers and scholars by outlining three main areas of intervention, i.e. adjusting evaluation tools, integrating ecological knowledge and establishing corporate social legitimacy.
Social implications
Currently, the level of biodiversity reporting is pitifully low. Therefore, organisations should properly manage biodiversity by integrating diverse and sometimes competing forms of knowledge for the stable and resilient flow of ecosystem services for future generations.
Originality/value
This paper not only updates and enriches the current state of the art but also identifies five thematic areas of the biodiversity accounting literature for theoretical and practical considerations.
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Siti Aisyah Binti Zahari, Shahida Shahimi, Suhaili Alma'amun and Mohd Mursyid Arshad
This study aims to determine the factors that influence ethical banking behavior among millennials and Gen-Z in Malaysia.
Abstract
Purpose
This study aims to determine the factors that influence ethical banking behavior among millennials and Gen-Z in Malaysia.
Design/methodology/approach
A stratified sample of 525 millennials and Gen-Z of Malaysian banking customers was used. Extended ethical decision-making (EDM) model was tested using partial least square-structural equation model for the analysis.
Findings
The findings indicated that the engagement of millennials and Gen-Z in ethical banking is influenced by factors such as intention, judgment and awareness, which shaped both generations’ ethical banking behavior.
Practical implications
This study could be a central reference point and assist banking institutions in understanding the preferences of millennials and Gen-Z.
Originality/value
This study extends the previous EDM model that focused solely on consumer's belief systems. Three aspects differentiate this paper and contribute to its originality, namely, the uniqueness of millennials and Gen-Z behavior, incorporating new variables along with the EDM models and study in Malaysian context.
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Sarah Yuliarini, Ku Nor Izah Bt Ku Ismail and Tantri Bararoh
Environmental Accounting (EA) practices have developed rapidly in some countries and have a positive impact on their organizations. Sustainability report (SR) as an indicator of…
Abstract
Environmental Accounting (EA) practices have developed rapidly in some countries and have a positive impact on their organizations. Sustainability report (SR) as an indicator of EA practices helps company gain a better reputation and it is set by management. However, some ASEAN countries including Indonesia do not have relevant accounting standards on the environment. EA practice is still not widely known in Indonesia, although, internationally there have been standards that provide guidelines for aspect of the environment such as the Global Reporting Initiative (GRI). Another aspect in GRI is remuneration. Remuneration is part of personnel cost which is a motivation about the positive effects of EA practices to disclose management concern. This research introduces a tool to evaluate a remuneration structure and the consistency of EA practices in the Sustainability Report.
This paper aims to address the question: What is the distribution of value (in pounds) created in a sample of domestic takeovers in the United Kingdom from 2013 to 2020 among…
Abstract
Purpose
This paper aims to address the question: What is the distribution of value (in pounds) created in a sample of domestic takeovers in the United Kingdom from 2013 to 2020 among acquirer and target stockholders?
Design/methodology/approach
The author employs a traditional event study methodology to calculate the percentage excess returns of companies on the announcement date. These returns are then converted into pound-denominated excess returns using the companies' market capitalizations. This allows the author to estimate the synergies of the mergers and acquisitions (M&As) and how they are allocated between acquirers and targets. This innovative transformation from percentage to pound excess returns establishes a new ratio methodology for addressing the paper's objective.
Findings
This paper reveals that in UK takeovers, 40 percent of the synergies in pounds are allocated to the stockholders of acquiring companies, while 60 percent go to the stockholders of target companies. In other words, acquirers retain a significant portion—more than half—of the synergies generated in these domestic deals. This original finding is statistically significant at the one percent level and strongly contradicts the hypothesis that acquirers, at best, merely break even.
Originality/value
The evidence that UK takeovers distribute value gains nearly equally between domestic deal parties challenges the enduring conventional insight in the M&A literature. This conventional wisdom suggests that the value created by business combinations is entirely distributed to target company stockholders. Consequently, this reexamination may have broader implications, offering an alternative perspective on the motives behind business combinations. This perspective differs from the “managerial hubris hypothesis,” which aligns with the prevailing conventional insight but receives limited support in the original finding reported here.
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Muhammad Adeel Ashraf and Ahcene Lahsasna
Customers of Islamic banking industry continue to be skeptical on Sharīʿah compliance of Islamic banks despite receiving fatwa from the competent authorities. The purpose of this…
Abstract
Purpose
Customers of Islamic banking industry continue to be skeptical on Sharīʿah compliance of Islamic banks despite receiving fatwa from the competent authorities. The purpose of this paper is to quantify the Sharīʿah risk taken by Islamic banks, so that customers are better informed on the level of Sharīʿah compliance that will help in removing the persistent level of skepticism toward Sharīʿah compliance.
Design/methodology/approach
This research has used the scorecard based modeling approach to build the Sharīʿah risk rating model, which consists of 14 factors that capture Sharīʿah risk and are grouped in 5 major areas revolving around regulatory support, quality of Sharīʿah supervision, business structure, product mix and treatment of capital adequacy ratio. The score calculated by applying the model is grouped into 4 tiers reflecting the level Sharīʿah compliance at bank as non-compliant, weak compliance, satisfactory compliance and high level of Sharīʿah compliance. Three case studies were conducted by applying the model to Islamic banks from Malaysia, Pakistan and Saudi Arabia.
Findings
The final Sharīʿah risk scores calculated by the model clearly differentiate the 3 banks on basis of their Sharīʿah risk. The underlying scores also highlighted the areas where banks need to improve to reduce their Sharīʿah risk.
Originality/value
This model can be applied by customers of Islamic banks who are interested in understanding Sharīʿah-related aspects of Islamic banking industry. This model can be applied on standalone basis or as an extension to the conventional counter party risk rating models. This model can benefit management of Islamic banks toward allocation of capital against Sharīʿah risk under Basel III, and regulators can apply the model to measure industry wide risk of Sharīʿah non-compliance.
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Jasmin Schade, Yijing Wang and Anne-Marie van Prooijen
Corporate-NGO partnerships are gaining increasing importance as part of a company's CSR effort. This study aims to understand which communication tactics (CSR motive, CSR message…
Abstract
Purpose
Corporate-NGO partnerships are gaining increasing importance as part of a company's CSR effort. This study aims to understand which communication tactics (CSR motive, CSR message frame, CSR fit) lead to more positive consumer outcomes in the context of corporate-NGO partnerships, and whether consumer skepticism and consumer trust mediate the proposed relationships.
Design/methodology/approach
An online experiment was conducted (N = 298) to examine the theoretical predictions, involving a 2 (CSR motive: firm-serving/public-serving) x 2 (CSR message frame: narrative/expositive) x 2 (CSR fit: high/low) between-subjects design.
Findings
The results confirmed that consumer attitudes and electronic Word-of-Mouth (eWOM) can be affected by CSR motives and CSR fit. Also, CSR skepticism and consumer trust both mediate the relationship of CSR motives and consumer outcomes.
Practical implications
The results of this study make a strong case for expressing public-serving CSR motives and refraining from firm-serving CSR motives when communicating about a corporate-NGO partnership to consumers.
Originality/value
Focusing on the communication tactics of corporate-NGO partnerships extends existing literature by uncovering whether and how the factors driving effective communication in other CSR activities can be applied to the context of corporate-NGO partnerships.
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Pim Klamer, Vincent Gruis and Cok Bakker
Information verification is an important factor in commercial valuation practice. Valuers use their professional autonomy to decide on the level of verification required, thereby…
Abstract
Purpose
Information verification is an important factor in commercial valuation practice. Valuers use their professional autonomy to decide on the level of verification required, thereby creating an opportunity for client-related judgement bias in valuation. The purpose of this paper is to assess the manifestation of client attachment risks in information verification.
Design/methodology/approach
A case-based questionnaire was used to retrieve data from 290 commercial valuation professionals in the Netherlands, providing a 15 per cent response rate of the Dutch commercial valuation population. Descriptive and inferential statistics have been used to test research hypotheses involving relations between information verification and professional features that may indicate client attachment such as an executive job level and brokerage experience.
Findings
The results reveal that valuers acting at partner level within their organisation obtain lower scores on information verification compared to lower-ranked valuers. Also, brokerage experience correlates negatively to information verification of valuation professionals. Both findings have statistical significance.
Research limitations/implications
The results reflect valuers’ reasoning behaviour rather than actual behaviour. Replication of findings through experimental design will contribute to research validity.
Practical implications
Maintaining close client contact in a competitive environment is important for business continuity yet may foster client attachment. The associated downside risks in valuation practice call for higher awareness of (subconscious) client influence and the development of attitudinal scepticism in valuer training programmes.
Originality/value
This paper is one of the few that explore possible sources of valuer judgement bias by relating client-friendly valuer features to a key area of valuation i.e. information verification.
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Johan Ingemar Lorentzon, Lazarus Elad Fotoh and Tatenda Mugwira
This paper aims to explore the impacts of remote auditing on auditors’ work and work-life balance.
Abstract
Purpose
This paper aims to explore the impacts of remote auditing on auditors’ work and work-life balance.
Design/methodology/approach
This paper adopted a qualitative online survey approach using open-ended reflections from 98 highly experienced auditors. The survey design aligns with a “Big Q” approach to qualitative data. The reflections were interpreted through the theoretical lens of the social presence theory.
Findings
Auditors underscore that remote auditing has improved their work-life balance since it offers flexibility, greater autonomy and efficient use of time. However, they believe less social contact due to remote auditing can hurt their work.
Research limitations/implications
This study aimed to holistically comprehend the concept of work-life balance in a remote auditing setting. Therefore, the study refrained from making comparisons based on demographic information (e.g. gender, experience and type of audit firm).
Practical implications
The findings highlight the need for adopting flexible work arrangements that prioritise auditors’ well-being. This is critical for making the audit profession attractive and enhancing overall audit quality. Updated regulatory guidance and controls are needed concerning the use of technologies in remote auditing to ensure high-quality audits.
Social implications
The findings of this study can positively reshape public perception of the audit profession. Firstly, enhanced work-life balance can improve audit quality. Secondly, incorporating emerging technologies in auditing can result in society perceiving auditors as adaptive to innovation and technological advancement that has been touted for their potential for enhancing the efficiency and effectiveness of audit and audit quality, potentially enhancing societal trust in auditing.
Originality/value
The findings of this study complement the auditing literature that has mainly focused on the traditional work paradigm, requiring in-person presence. The authors identify potential challenges emanating from auditors’ remote work and propose solutions for audit firms to improve work-life balance in a remote work setting.
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Michael Opara, Oliver Nnamdi Okafor, Akolisa Ufodike and Kenneth Kalu
This study adopts an institutional entrepreneurship perspective in the context of public–private partnerships (P3s) to highlight the role of social actors in enacting…
Abstract
Purpose
This study adopts an institutional entrepreneurship perspective in the context of public–private partnerships (P3s) to highlight the role of social actors in enacting institutional change in a complex organizational setting. By studying the actions of two prominent social actors, the authors argue that successful institutional change is the result of dynamic managerial activity supported by political clout, organizational authority and the social positioning of actors.
Design/methodology/approach
The authors conducted a field-based case study in a complex institutional and organizational setting in Alberta, Canada. The authors employed an institutional entrepreneurship perspective to identify and analyze the activities of two allied actors motivated to transform the institutional environment for public infrastructure delivery.
Findings
The empirical study suggests that the implementation of institutional change is both individualistic and collaborative. Moreover, it is grounded in everyday organizational practices and activities and involves a coalition of allies invested in enacting lasting change in organizational practice(s), even when maintaining the status quo seems advantageous.
Originality/value
The authors critique the structural explanations that dominate the literature on public–private partnership implementation, which downplays the role of agency and minimizes its interplay with institutional logics in effecting institutional change. Rather, the authors demonstrate that, given the observed impact of social actors, public–private partnership adoption and implementation can be theorized as a social phenomenon.
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