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1 – 10 of over 19000Jessica Zeiss, Les Carlson and Elise Johansen Harvey
Prior research has examined the sociopolitical force as simply a part of all types of environmental pressures, yet we argue that this force calls for a unique examination of…
Abstract
Purpose
Prior research has examined the sociopolitical force as simply a part of all types of environmental pressures, yet we argue that this force calls for a unique examination of marketing's role in firm responses to sociopolitical pressures. Understanding the degree to which firms attempt to manage forces and pressures in the external business environment is key to understanding marketing's role in impeding vs aiding public policy initiatives, and is the problem this research investigates.
Design/methodology/approach
Using structural equation modeling, data from 71 firms demonstrate that managing the sociopolitical force is, in fact, distinct from managing the other four market-based forces – consumer demand, supplier power, competition and technological shifts. Managing the sociopolitical force is shown to require fundamentally different skills and resources.
Findings
Results suggest that firm sociopolitical receptivity drives attempts to influence this unique external business environmental force, in turn limiting marketplace sociopolitical receptivity. Furthermore, attempts to influence such a unique force relies on resource-light marketing resources, which limits resource-heavy marketing.
Originality/value
Managing a political force with marketplace ramifications involves strategy that utilizes marketing, but is driven by relationships with social and political agents. This is truly an environmental management concept distinct from the management of the other four market-based forces. The analysis in this study demonstrates that managing another environmental force (i.e. competition force) involves different receptivity influences and marketing tactic outcomes.
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DAVID MCNICOL and ALMARIN PHILLIPS
INTRODUCTION During the past dozen years a relatively large theoretical literature has grown out of the models proposed by Averch‐Johnson (2) and, to a lesser extent, Wellisz…
Abstract
INTRODUCTION During the past dozen years a relatively large theoretical literature has grown out of the models proposed by Averch‐Johnson (2) and, to a lesser extent, Wellisz (90). Averch‐Johnson (here‐after A‐J) pointed out the now famous overcapitalization effect‐that a monopoly subject to rate of return regulation has an incentive to use more than the cost minimizing value of capital. The A‐J model was at first regarded as simply a theoretical explanation of what was long thought to be a significant cost of regulation. After languishing in this state for several years, the model achieved some popularity as a vehicle for theoretical explorations of various aspects of rate regulation. To date, the A‐J model has given rise to nearly forty papers on what has come to be called “the theory of regulatory constraint.”
Jaime Sánchez-Ortiz, Teresa Garcia-Valderrama, Vanesa Rodríguez-Cornejo and Francisca Cabrera-Monroy
The purpose of this paper is to demonstrate that overcapacity and tariff deficit (external constraints) negatively affect the efficiency of distribution firms in the Spanish…
Abstract
Purpose
The purpose of this paper is to demonstrate that overcapacity and tariff deficit (external constraints) negatively affect the efficiency of distribution firms in the Spanish electricity sector. To do this, the paper is based on the theory of constraints and theory of economic regulation.
Design/methodology/approach
Data envelopment analysis (DEA) window methodology is carried out on the constant scales (I-C) with a sample consisting of five main distribution firms during the period from 2006 to 2015. In turn, an analysis of the Malmquist index is carried out to assess whether it has had a displacement with respect to the efficiency frontier.
Findings
The results show that the overcapacity and the tariff deficit negatively affect the efficiency of the distribution firms of the Spanish electricity sector. In addition, there is an existence of external constraints that affect the activities of regulated organisations and the importance of adequate legislation in regulated sectors.
Originality/value
This study defines a model that shows how the efficiency problems associated with electricity distribution companies such as productive overcapacity or tariff deficit can be measured based on the theory of constraints and theory of economic regulation.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Devrimi Kaya and Andreas Seebeck
The purpose of this paper is to investigate the cross-country determinants of the extent of firm information disseminated via company register (CR) websites.
Abstract
Purpose
The purpose of this paper is to investigate the cross-country determinants of the extent of firm information disseminated via company register (CR) websites.
Design/methodology/approach
The authors develop an index model (CR score) designed to capture the extent of regulated firm information disseminated via CR websites. The proposed index is applied to a unique sample of 137 countries. Following prior literature, the proposed index covers three dimensions: data availability, data accessibility and data serviceability. The index composition and the URLs of the CR websites are provided as an exhibit to this paper.
Findings
Across a variety of tests and sample compositions, the authors find consistent evidence that countries with a relatively high level of internet penetration, those that facilitate cross-border trading and those with higher governance quality show higher CR scores. The results are generally in line with theories of regulation.
Practical implications
The results of this paper speak directly to the current regulatory initiatives which aim to foster information acquisition and processing via company registers.
Originality/value
The authors provide early empirical evidence on the cross-country variation of dissemination of firm information via CR websites for a unique sample of 137 countries. Investors, analysts and other users of financial statements should be aware of the underlying factors that influence the extent and accessibility of firm information.
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Md Mustafizur Rahaman, Md Moazzem Hossain and Md. Borhan Uddin Bhuiyan
The new audit regulation for disclosure of key audit matters (KAMs) in financial reporting has been introduced in both developed and developing countries. This study investigates…
Abstract
Purpose
The new audit regulation for disclosure of key audit matters (KAMs) in financial reporting has been introduced in both developed and developing countries. This study investigates the influence of three distinctive sets of variables, namely industry features, firm characteristics and auditor attributes, on the extent, pattern and level of disclosure of KAMs by companies listed in Bangladesh, an emerging economy.
Design/methodology/approach
The study uses qualitative and quantitative research approaches to investigate the pattern of disclosure of KAMs and their determinants. With a sample of 447 firm-year observations from companies listed on the Dhaka Stock Exchange over 2018–2020, the study reveals industry-level, firm-level and auditor-specific characteristics that affect KAMs' communication in the new audit reporting model.
Findings
The findings suggest that significant differences exist between firms in the number and types of KAMs reported and the extent of their disclosure. The study findings also observed variations both within and across different industry sectors. Highly regulated firms disclose a greater number of KAMs, while environmentally sensitive firms are found to provide a greater detail of the issues presented as KAMs. Further, both firm size and age positively impact the number of KAMs disclosed and the extent of the disclosure provided. Big-4-affiliated auditors do not issue a significantly higher number of KAMs but deliver extensive details to their KAMs description, compared to non-Big-4 auditors. In addition, while auditors, in general, tend to issue boilerplate KAMs, Big-4 associates are found to disclose more new KAMs. However, audit fees and auditor rotation do not influence KAMs disclosure.
Research limitations/implications
This study is based on two years of publicly available data. However, future studies could consider in-depth interviews to explore the motivation behind KAMs' disclosure in Bangladesh and other developing countries with similar cultural and contextual values.
Practical implications
These findings have substantial policy considerations for improving firms' audit quality and, thus, their financial reporting quality, with implications for national and international standard-setters, regulators and other stakeholders.
Originality/value
This study is one of the earliest endeavours to investigate KAMs in a context of an emerging country, such as Bangladesh, which adopted KAMs' disclosure in 2018.
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Thomas Belz, Dominik von Hagen and Christian Steffens
Using a meta-regression analysis, we quantitatively review the empirical literature on the relation between effective tax rate (ETR) and firm size. Accounting literature offers…
Abstract
Using a meta-regression analysis, we quantitatively review the empirical literature on the relation between effective tax rate (ETR) and firm size. Accounting literature offers two competing theories on this relation: The political cost theory, suggesting a positive size-ETR relation, and the political power theory, suggesting a negative size-ETR relation. Using a unique data set of 56 studies that do not show a clear tendency towards either of the two theories, we contribute to the discussion on the size-ETR relation in three ways: First, applying meta-regression analysis on a US meta-data set, we provide evidence supporting the political cost theory. Second, our analysis reveals factors that are possible sources of variation and bias in previous empirical studies; these findings can improve future empirical and analytical models. Third, we extend our analysis to a cross-country meta-data set; this extension enables us to investigate explanations for the two competing theories in more detail. We find that Hofstede’s cultural dimensions theory, a transparency index and a corruption index explain variation in the size-ETR relation. Independent of the two theories, we also find that tax planning aspects potentially affect the size-ETR relation. To our knowledge, these explanations have not yet been investigated in our research context.
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The purpose of this paper is to describe a theoretical model for banking regulation in relation to Basel accords implementation. As a risk manager practitioner at a financial…
Abstract
Purpose
The purpose of this paper is to describe a theoretical model for banking regulation in relation to Basel accords implementation. As a risk manager practitioner at a financial institution and in-charge of Basel implementation in a Basel accords environment of banking regulation, the author has been intrigued by the theoretical basis of the design of Basel accords. The objective was to investigate a theoretical model in the literature according to which the accords were designed. In case of deficiency in the literature of this model, the author seeks to provide a juxtaposition to the theoretical model that explains the accords adoption and implementation by regulators.
Design/methodology/approach
This paper presents a review of existing literature.
Findings
After reviewing of public interest theory, cultural theory, administration theory and the new-institutionalism theory, the author found little application of these theories to the capital-based regulation, particularly in relation to Basel 2 accord. There is deficiency in the literature of a conceptual theoretical framework based on which the author can explain the adoption of Basel accords. The author has provided a theoretical model that links these theories to the practice of banking regulation. This paper found deficiencies in theories of how banks should be regulated as compared to several theories that explains why banks are regulated.
Originality/value
After reviewing of public interest theory, cultural theory, administration theory and the new-institutionalism theory, the author found little application of these theories to the capital-based regulation, particularly in relation to Basel 2 accord. There is deficiency in the literature of a conceptual theoretical framework based on which the author can explain the adoption of Basel accords. The author has provided a theoretical model that links these theories to the practice of banking regulation. This paper found deficiencies in theories of how banks should be regulated as compared to several theories that explains why banks are regulated.
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Using a combined Industrial Marketing and Purchasing’s network approach and institutional theory, this paper aims to explore why firms exploit dual marketing strategy that targets…
Abstract
Purpose
Using a combined Industrial Marketing and Purchasing’s network approach and institutional theory, this paper aims to explore why firms exploit dual marketing strategy that targets both the consumer (business-to-consumer) and business markets (business-to-business). This study uses the regulated housing market as its research context in examining how housing developers cope with government intervention when implementing a dual marketing strategy.
Design/methodology/approach
This study applies a qualitative case study research approach, using 19 in-depth interviews, from the purposefully selected industry actors within the housing market, observations and documents.
Findings
The findings uncover housing developers’ struggles in dealing with government intervention when they adopt a dual marketing strategy. When dealing with the regulated consumer market, developers formed an issue-based net with other competitors and used their association to bargain with the government for flexibility in public policy. When selling to the business market, in which the private investment club emerged as a powerful actor, they initiated strategic net and influenced property developers’ pricing and selling strategies. The findings also demonstrate that the restrictions imposed on the consumer market have a spillover effect on the business market, which reflects the contextual embeddedness of the two markets.
Originality/value
This study contributes to the understanding of how actors strategize and co-evolve when implementing a dual marketing strategy. It helps policymakers, business actors and other connected actors to understand the interactions of all actors within a network that affects each other’s decisions.
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W. Scott Sherman and Valrie Chambers
Corporate scandals at Enron, Tyco, and MCI highlight the issue of opportunistic management behavior. The US Congress responded to these scandals by passing the Sarbanes‐Oxley Act…
Abstract
Corporate scandals at Enron, Tyco, and MCI highlight the issue of opportunistic management behavior. The US Congress responded to these scandals by passing the Sarbanes‐Oxley Act of 2002 (SOX). SOX imposes additional management responsibilities and corporate operating costs on companies trading under SEC regulations. This paper examines three options for US corporations responding to SOX: compliance with SOX, taking a company private, or moving to a non‐ SEC‐regulated exchange, such as an international exchange. The paper then examines potential corporate governance options using Transaction Cost Economics (TCE; Williamson 1985) to develop propositions regarding which options firms may select.
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