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1 – 10 of 81Albert Ochien’g Abang’a, Venancio Tauringana, David Wang’ombe and Laura Obwona Achiro
This paper aims to report the results of an investigation into the effect of aggregate and individual corporate governance factors on the financial performance of state-owned…
Abstract
Purpose
This paper aims to report the results of an investigation into the effect of aggregate and individual corporate governance factors on the financial performance of state-owned enterprises (SOEs) in Kenya.
Design/methodology/approach
The paper uses balanced panel data regression analysis on a sample of 45 SOEs in Kenya for a four-year period (2015–2018).
Findings
The panel data analysis results show that board meetings, board skill and gender diversity individual provisions of corporate governance are significantly and positively associated with capital budget realization ratio (CBRR). Moreover, the study finds that aggregate corporate governance disclosure index, board sub-committees, board size and independent non-executive directors are positive but insignificantly related to CBRR.
Research limitations/implications
The current study is based on secondary data, other methods of knowledge inquiry such as interviews and questionnaires may provide additional insights on the effectiveness of corporate governance on financial performance.
Practical implications
Overall, the results imply that corporate governance influences the performance of SOEs in Kenya. The results suggest that Mwongozo Code of Corporate Governance provisions should be changed to increase the number of women representations on board and the number of directors with doctoral qualifications because of their positive impact on the financial performance of SOEs in Kenya. Also, policymakers with remit over SOEs should re-evaluate why other corporate governance appear not to have an impact with a view of making the necessary changes.
Originality/value
The paper contributes to the dearth of literature on the efficacy of corporate governance on the financial performance of SOEs in developing countries.
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Lyton Chithambo and Venancio Tauringana
The purpose of this paper is to investigate whether four corporate governance mechanisms (board size, non-executive directors, ownership concentration and directors’ share…
Abstract
Purpose
The purpose of this paper is to investigate whether four corporate governance mechanisms (board size, non-executive directors, ownership concentration and directors’ share ownership) influence the extent of greenhouse gas (GHG) disclosure.
Design/methodology/approach
The study uses a mixed-methods approach based on a sample of 62 FTSE 1,000 firms. Firstly, the authors surveyed the senior management of 62 UK-listed firms in the FTSE 1,000 index to determine whether the corporate governance mechanisms influence their GHG disclosure decisions. Secondly, the authors used ordinary least squares (OLS) regression to model the relationship between the corporate governance mechanisms and GHG disclosure scores of the 62 firms.
Findings
The survey and OLS regression results both suggest that corporate governance mechanisms (board size and NEDs) do not influence GHG disclosures. However, the results of the two approaches differ, in that the survey results suggest that corporate governance mechanisms (ownership concentration and directors’ share ownership) do not influence the extent of GHG disclosure, while the opposite is true with the OLS regression results.
Research limitations/implications
The sample size of 62 firms is small which could affect the generalisability of the study. The mixed results mean that more mixed-methods approach is needed to improve the understanding of the role of corporate governance in GHG disclosures.
Originality/value
The use of mixed-methods to examine whether corporate governance mechanisms determine the extent of GHG voluntary disclosure provides additional insights not provided in prior studies.
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David Mutua Mathuva, Venancio Tauringana and Fredrick J. Otieno Owino
The nature of corporate governance (CG) mechanisms in an entity may influence the timeliness of the audited annual report. The purpose of this paper is to argue that the “quality”…
Abstract
Purpose
The nature of corporate governance (CG) mechanisms in an entity may influence the timeliness of the audited annual report. The purpose of this paper is to argue that the “quality” of CG in a firm has a significant association with the time it takes the audited annual report and financial statements to be released.
Design/methodology/approach
Using a set of 543 firm-year observations over the period 2007–2016, the authors examine whether a validated CG-Index is associated with audit report delay (ARD). The authors employ both granular as well as aggregated approaches to the analyses. In addition, the authors include control variables known to have an association with ARD in the panel data regressions.
Findings
The findings, which are robust for self-selection among other checks, reveal that financial expertise in the audit committee, board size, board meetings and independence in the board are associated with longer ARDs. Some CG attributes such as board diversity (i.e. women and different nationalities in the board) are associated with improved timeliness of the annual reports. The results also reveal that a longer tenure for independent directors in the board is associated with a shorter ARD. Overall, the authors find that the composite CG score has a positive influence on the timeliness of annual reports.
Research limitations/implications
The study focuses on listed companies in one developing country. Additional studies focusing on other jurisdictions could yield more results.
Practical implications
The study is useful in highlighting those CG characteristics firms should focus on toward the attainment of timely corporate reporting to aid in decision making by users.
Originality/value
The study is unique since it emphasizes the importance of focusing on an aggregate CG-Index, and the contribution of the CG-Index toward the timeliness of annual reports.
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Juma Bananuka, Venancio Tauringana and Zainabu Tumwebaze
The objective of the study is to investigate the association between intellectual capital (IC) and sustainability reporting practices in Uganda. The study further examines how…
Abstract
Purpose
The objective of the study is to investigate the association between intellectual capital (IC) and sustainability reporting practices in Uganda. The study further examines how individual IC elements (human, structural and relational capital) affect sustainability reporting practices.
Design/methodology/approach
This study employs a questionnaire to collect data. Data are analyzed using multiple regression analysis.
Findings
Results indicate that IC is significantly associated with sustainability reporting practices. The study also found that human capital and relational capital elements have a positive effect on sustainability reporting practices while structural capital element does not have a significant effect.
Originality/value
This study is one of the few studies that examine sustainability reporting by financial services firms in a country where the capital markets are still in their infancy and the major source of external financing are the banks. Its major contribution lies in its focus on how the key IC components explain variations in sustainability reporting practices among financial service firms in Uganda.
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Venancio Tauringana, Dragana Radicic, Alan Kirkpatrick and Renata Konadu
This paper aims to report the results of an investigation into the relationship between corporate boards and the likelihood of a firm being convicted of an environmental offence…
Abstract
Purpose
This paper aims to report the results of an investigation into the relationship between corporate boards and the likelihood of a firm being convicted of an environmental offence in the United Kingdom (UK).
Design/methodology/approach
The study uses binary logistics regression analysis to model the relationship between corporate boards and the likelihood of a firm being convicted of an environmental offence in the UK, controlling for firm size, financial leverage and profitability.
Findings
The results suggest that the likelihood of a firm being convicted of an environmental offence increases with board size but decreases with the presence of a woman on the board. No support is found for the authors’ hypotheses about the proportion of outside directors and the presence of a lawyer on the board. Marginal effects’ results also show that adding one member to the board increases the chance of a firm being convicted for an environmental offence by 4.2 per cent, while having a woman on the board decreases the likelihood of a firm being convicted of an environmental offence by 31.8 per cent.
Research limitations/implications
The sample size of 55 firms is small which could affect the generalisability of the study.
Originality/value
The study uses proprietary data obtained from the UK Environmental Agency to provide evidence for the first time how corporate boards affect the chances of a listed firm being convicted of an environmental offence in the UK.
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Acheampong Owusu, Tauringana Venancio and Nicholas Asare
The purpose of this study is to examine the effect of manager attributes and psychological factors on the adoption of sustainability reporting (SR) among small and medium-sized…
Abstract
Purpose
The purpose of this study is to examine the effect of manager attributes and psychological factors on the adoption of sustainability reporting (SR) among small and medium-sized enterprises (SMEs) in Ghana.
Design/methodology/approach
The study is based on a cross-sectional data gathered using questionnaires administered to managers of SMEs in Ghana. The data is analyzed using structural equation modeling.
Findings
The results reveal that SME managers with requisite educational qualifications and knowledge about sustainability accounting adopt SR. The attitudes, subjective norms and perceived behavioral control of managers of SMEs on issues of sustainability also affect the adoption of SR. However, SMEs with old and long-serving managers do not adopt SR. SMEs with manager attributes such as professional education, gender and religious affiliation do not appear to adopt SR.
Practical implications
There is the need for regulators and other stakeholders to sensitize, persuade and provide awareness, training and educational certification to support managers of SMEs to enable them to adopt SR.
Originality/value
This study contributes to the literature on SR by offering a clear understanding of how manager attributes and psychological factors influence the adoption of SR by SMEs in developing countries.
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Ismail Adelopo, Robert Lloydking and Venancio Tauringana
The purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before…
Abstract
Purpose
The purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before (1999-2006), during (2007-2009), and after (2010-2013) the financial crisis.
Design/methodology/approach
Using the Economic Community of West African States’ bank panel data from 1999 to 2013, the paper used fixed effect models. The panel model includes bank-specific determinants (size, cost management, and liquidity), industry level, and macroeconomic variables.
Findings
Panel data analyses results show that there is a significant relationship between bank-specific determinants (size, cost management, and liquidity) and bank profitability (ROA) before, during, and after the financial crisis. However, the relationships between other bank-specific (capital strength, credit risk, and market power), macroeconomic (gross domestic product and inflation) determinants are sensitive to both periods of analysis (before, during, and after financial crisis) and bank profitability measure used (ROA or NIM).
Originality/value
Overall, these results suggest that the financial crisis did not affect the relationships between some bank-specific determinants and bank profitability.
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Babajide Oyewo, Venancio Tauringana, Babajide Moses Omikunle and Olusola Owoyele
This study aims to investigate the relationship between organizational design elements (i.e. quality of management accounting skills and performance management system, PMS)…
Abstract
Purpose
This study aims to investigate the relationship between organizational design elements (i.e. quality of management accounting skills and performance management system, PMS), management accounting practice (MAP) sophistication and organizational competitiveness using the Global Management Accounting Principles (GMAP) framework.
Design/methodology/approach
Survey data was obtained through a structured questionnaire from 131 Nigerian firms. Measures of the quality of management accounting skills, robustness of PMS structure, MAP sophistication and organizational competitiveness were derived from the GMAP framework. Structural equation modelling was applied to explore the complexity of relationship among variables.
Findings
While the quality of management accounting skills was found to have a positive but insignificant impact on MAP sophistication, the impact of PMS structure on MAP sophistication was positive and significant. MAP sophistication has a positive impact on organizational competitiveness, but the magnitude of its contribution appears to depend on the quality of management accounting skills and the robustness of PMS structure. The inability of MAP sophistication to exert much influence on organizational competitiveness is attributable to the low contribution of management accounting skills. The result supports the proposition that performance is optimized when all organizational design elements are concurrently improved.
Practical implications
The study shows that organizations need to critically look into the quality of skills possessed by personnel in the accounting function, as all organizational design elements must be given equal importance to achieve the best results.
Originality/value
The study contributes to knowledge by investigating the quality of management accounting skills and the robustness of PMS as organizational design elements affecting MAP and organizational competitiveness using the GMAP framework. The study operationalizes some elements of the GMAP framework by developing measurements that can be used by future studies.
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Stephen Korutaro Nkundabanyanga, Moses Muhwezi and Venancio Tauringana
The purpose of this paper is to report on the results of a study carried out to determine the use of Management Accounting Practices (MAPR) in Ugandan secondary schools. The study…
Abstract
Purpose
The purpose of this paper is to report on the results of a study carried out to determine the use of Management Accounting Practices (MAPR) in Ugandan secondary schools. The study also sought to determine whether MAPR and governing boards (board size, gender diversity and frequency of board meetings) influence the perceived competitive advantage.
Design/methodology/approach
This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 200 secondary schools. The data were analysed through ordinary least squares regression using Statistical Package for Social Scientists.
Findings
There are wide variations in MAP in terms of the extent to which the schools employ management accounting techniques. Also, MAP and governing boards have a predictive force on the schools’ competitive advantage. However, governing board’s size has no effect on competitive advantage. In terms of the control variables, the results suggest that while government school ownership has a positive effect on competitive advantage, the school’s size has no effect. There are intertwining relationships of frequency of board meetings, board size and school size.
Research limitations/implications
The present study was limited to the secondary schools in Uganda which limits generalisability. Still, the results offer important implications for secondary schools’ governing boards, owners and for similar African governments who are a major stakeholder in the secondary school education system. The exact mechanism by which intertwining relationships of frequency of board meetings, board size and school size impact competitive advantage is not been explored in this paper. Future researchers may direct research effort in this endeavour.
Originality/value
To the authors’ knowledge, this is the first study to investigate use of MAPR in secondary schools and to provide evidence of their efficacy.
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The purpose of this paper is threefold. First, it aims to identify managerial perceptions-based research determinants of sustainability reporting. Second, it sets out to evaluate…
Abstract
Purpose
The purpose of this paper is threefold. First, it aims to identify managerial perceptions-based research determinants of sustainability reporting. Second, it sets out to evaluate the impact of the Global Reporting Initiative (GRI) efforts in increasing SR in developing countries. Third, the researcher argues for the adoption of management perceptions research evidence-based practices (EBP) to address SR challenges in developing countries.
Design/methodology/approach
The study was undertaken using a desk-based review of management perceptions-based research literature on the determinants of SR. The impact of GRI efforts in increasing adoption of SR was undertaken through both desk-based research and descriptive analysis of data obtained from the GRI database from 2014 to 2019 relating to 107 developing countries. The call for the adoption of management perceptions research EBP is based on a critical analysis of both the management perceptions of the determinants of SR research and evaluation the impact of GRI efforts to increase SR in developing countries.
Findings
Training, legislation, issuing of guidance, stakeholder pressure, awareness campaigns, market and public pressure were identified as some of the determinants of SR. The evaluation of the impact of GRI efforts shows they had limited impact on increasing SR in developing countries. Research needed to adopt management perceptions research EBP is identified.
Research limitations/implications
This study is conceptual. Management perceptions-based research is needed in more developing countries to better understand the determinants of SR and identify the most effective policies or practices to address related challenges.
Originality/value
The findings contribute to the calls to make academic research more relevant to policy formulation. In particular, the proposal for research needed to inform EBP adoption to address SR challenges in developing countries is new.
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