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1 – 10 of 10Sawssen Khlifi, Yamina Chouaibi and Salim Chouaibi
This study aims to investigate the direct and indirect relationship between board characteristics and corporate tax avoidance using the environmental, social and governance (ESG…
Abstract
Purpose
This study aims to investigate the direct and indirect relationship between board characteristics and corporate tax avoidance using the environmental, social and governance (ESG) index as a mediating variable in G20 countries.
Design/methodology/approach
To test the direct and indirect effects between board characteristics and tax avoidance using structural equation model analysis, this study used a panel data set of 522 companies from G20 countries between 2015 and 2021.
Findings
The regression results show that ESG reporting mediates the relationship between the board of directors and tax avoidance in G20 countries.
Practical implications
The findings have some policy and practical implications that may help regulators improve the quality of transactions and achieve more efficient market supervision. They recommend that governments implement regulations and restrictions on corporate tax avoidance through board mechanisms in G20 countries.
Social implications
The paper enables information users to assess future growth opportunities by emphasizing the importance of ESG policies and board characteristics in evaluating companies.
Originality/value
Although previous literature has investigated the direct relationship between the board of directors and tax avoidance, the present work focused on considering the direct and indirect association between the board of directors and tax avoidance through the mediating effect of ESG reporting, which has not been widely used in ESG studies so far.
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Yamina Chouaibi, Rim Zouari-Hadiji and Sawssen Khlifi
The present work aimed to identify the impact of accrual-based earnings management on the cost of equity (KE) through corporate social responsibility (CSR) as a moderating…
Abstract
Purpose
The present work aimed to identify the impact of accrual-based earnings management on the cost of equity (KE) through corporate social responsibility (CSR) as a moderating variable on European Environmental, Social, and Governance (ESG) companies.
Design/methodology/approach
The authors used data from a sample of 366 European firms over the 2012–2022 period. The data were collected from the Thomson Reuters Asset 4 and I/B/E/S database and analyzed using STATA 17 as a statistical software package.
Findings
As expected, the results showed a negative relationship between accruals, CSR and KE. Moreover, they suggest that the moderating variable negatively affects the relationship between accruals and the KE.
Practical implications
The results are pertinent to stakeholders and investors, who would pressure companies to enhance the quality of disclosed information and mitigate risks facing the company.
Originality/value
The main contribution lies in examining the relationship between accruals and KE through CSR in the European ESG context.
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Yamina Chouaibi, Saida Belhouchet, Salim Chouaibi and Jamel Chouaibi
The purpose of this paper is to examine the effect of integrated reporting quality (IRQ) on the cost of equity and financial performance of Islamic banks (IBs) in the Middle East…
Abstract
Purpose
The purpose of this paper is to examine the effect of integrated reporting quality (IRQ) on the cost of equity and financial performance of Islamic banks (IBs) in the Middle East and North Africa (MENA) region.
Design/methodology/approach
This study examines 67 IBs in the MENA region over a period of six years (2015–2020). This paper is motivated by the use of the method of ordinary least on square panel data. A multiple regression model is used to analyze the impact of the quality of integrated reporting, on the one hand, on the cost of equity and, on the other hand, on the financial performance of IBs in the MENA region. Similarly, as an extension of the research, the authors exploited the dynamic effect of the data set through the generalized method of moments and estimated the impact of the one-year lagged value of the cost of equity.
Findings
The empirical results obtained do indicate that the quality of integrated reporting seems to have a significant negative effect on the cost of equity capital. It is also interesting to note that IRQ has a positive and significant impact on the financial performance of IBs.
Research limitations/implications
Current research can help and encourage IBs to provide quality information to reduce the cost of equity. Furthermore, this research could be a valuable source of information for policymakers, regulators and stakeholders on IB governance practices and disclosure. Finally, integrated reporting is very important for the progress and development of the Islamic banking sector.
Originality/value
This paper is motivated by the limited research on integrated reporting and financial performance of IBs. It makes an important contribution to the academic literature by adding to the limited body of research on the cost of equity, performance and quality of integrated reporting in the MENA region. This study is also important for the investors seeking to reduce the cost of equity to improve financial performance.
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Salim Chouaibi, Yamina Chouaibi and Ghazi Zouari
The aim of this study is to analyze the possible relationship between board characteristics and integrated reporting quality in an international setting.
Abstract
Purpose
The aim of this study is to analyze the possible relationship between board characteristics and integrated reporting quality in an international setting.
Design/methodology/approach
To test the study's hypotheses, the authors applied linear regressions with a panel data, and the authors collected data from the Thomson Reuters database (ASSET4) and from the annual reports from European companies to analyze data of 253 listed companies selected from the environmental, social and governance (ESG) index between 2010 and 2019.
Findings
The reached empirical results prove to indicate well that both of the board size, independence and diversity appear to have a significantly positive effect on the integrated reporting quality. Noteworthy, also, is the fact that the appointment of an independent nonexecutive chairman is positively associated with the integrated reporting related quality, and holds for firms with a nonindependent chairman.
Practical implications
Beyond the theoretical implications, our study also has several practical implications. These findings are particularly relevant for managers, shareholders, and policymakers. Thus, stakeholders should consider the accuracy of disclosure in determining the optimal reporting strategy (reducing risk estimation, returns' stock volatility, increasing long-term shareholder value and reputation of the firm).
Originality/value
This article is motivated by the low number of works in the context about the corporate social responsibility and sustainability issues. It makes an important contribution to the academic literature by adding to the limited body of research on integrated reporting and corporate governance in an ESG company setting. The study is also important for practitioners seeking to improve the quality of their integrated reports.
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Yamina Chouaibi, Sawssen Khlifi and Jamel Chouaibi
The purpose of this study is to analyze the effect of corporate social responsibility (CSR) practices and corporate ethical behavior on implicit cost of equity (COE) using…
Abstract
Purpose
The purpose of this study is to analyze the effect of corporate social responsibility (CSR) practices and corporate ethical behavior on implicit cost of equity (COE) using integrated reporting quality (IRQ) as a mediating variable in European companies belonging to the environmental, social and governance (ESG) index.
Design/methodology/approach
The authors use a panel data set of 540 European firms from the ESG index from 2013 to 2022. The data were collected from I/B/E/S and Thomson Reuters ASSET4 database and analyzed using the structural equation model to test hypotheses.
Findings
In the instance of ESG European firms, the findings indicate that CSR practices and corporate ethical behavior are negatively related to the COE. From the result of the Sobel test, this study indicated that IRQ has only indirect mediation on the relationship between CSR, ethical behavior of the company and implicit COE.
Practical implications
The findings have some policy and practical implications that may help regulators and managers in improving the COE and helping companies envision their future growth opportunities in a context where responsibility, ethics and disclosure are central to corporate valuation. Using the implicit COE is a better estimate of shareholder requirements in the context of ESG companies.
Originality/value
This research concentrates on ESG companies since they are more likely to contribute to environmental protection, which attracts responsible investors. Furthermore, the findings may be useful to worldwide managers and investors who use responsible practices as a criterion in their decision-making.
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Yamina Chouaibi and Ghazi Zouari
The goal of this article was to look into the direct and indirect links between corporate social responsibility (CSR) activities and the cost of equity, using real earnings…
Abstract
Purpose
The goal of this article was to look into the direct and indirect links between corporate social responsibility (CSR) activities and the cost of equity, using real earnings management (REM) as a mediator.
Design/methodology/approach
To test the hypotheses, the authors applied linear regressions with panel data using the Thomson Reuters ASSET4 and I/B/E/S database on a sample of 540 European companies selected from the environmental, social and governance (ESG) index over the period 2011–2019.
Findings
The results show that REM partially mediates the relationship between CSR practices and the cost of equity in European firms belonging to the ESG index.
Practical implications
Instead of beautifying their business, companies should make efficient managerial and organizational improvements to meet their social duty. Regulators in Europe must strive for tighter enforcement while also attempting to raise public awareness of CSR. CSR can be profitable and helpful for primary stakeholders, according to the research.
Originality/value
Although previous literature has investigated the direct correlation between CSR practices and the cost of equity, the present work focuses on considering the direct and indirect association between CSR and cost of equity through the mediating effect of REM, which has not been widely used in CSR studies so far.
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Jamel Chouaibi, Saida Belhouchet, Raghad Almallah and Yamina Chouaibi
This paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this…
Abstract
Purpose
This paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this relationship is moderated by the corporate social responsibility.
Design/methodology/approach
Data from a sample of 185 European firms selected from STOXX 600 Index between 2010 and 2019 are used to test the model using panel data and multiple regression. This paper is motivated by using panel data estimated feasible generalized least squares method. A multiple regression model is used to analyze the moderating effect of the corporate social responsibility on the association between board characteristics, good corporate governance and the IRQ.
Findings
Consistent with the expectations, the results showed that there is a positive relationship between board independence, board diversity, good corporate governance and IRQ. Furthermore, the findings suggest that moderating effect positively affects the relationship between the board characteristics, good corporate governance and IRQ.
Practical implications
The results of this study have an impact on policymakers. The presence of women and independent members of the board should be encouraged. This has a positive effect on the availability of high-quality information, able to drive investment levels and stakeholder participation.
Originality/value
This study supports the existing literature. First, it expands the scientific debate on the topic of integrated reporting (IR). Second, it extends the scope of agency theory, which is rarely used to explain IR-related phenomena. This study is one of the first to examine the moderating effect of corporate social responsibility on the association between a set of governance characteristics (i.e. Board independence and board diversity) and integrated reporting adoption.
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Rim Zouari-Hadiji and Yamina Chouaibi
This paper aims to examine the effect of the corporate ethical approach on the cost of equity capital. This study is conducted on a large international sample on behalf of the…
Abstract
Purpose
This paper aims to examine the effect of the corporate ethical approach on the cost of equity capital. This study is conducted on a large international sample on behalf of the world’s most engaged firms from an ethical point of view in 2015.
Design/methodology/approach
The multivariate linear regression model is used to meet the purpose of this study and research hypotheses are also examined using a sample of 80 of most ethical firms in the world during the year 2015. Moreover, three variables (i.e. business ethics, corporate social responsibility and executive compensation based on the achievement of sustainable development goals) are used to reflect the corporate ethical approach and the implied cost of equity capital is used for estimating the cost of equity. In this regard, equity cost estimation is the most appropriate approach to test the effect of business ethics on the cost of financing firms.
Findings
Based on a sample of 80 firms emerging as the world’s most ethical firms in 2015, the results revealed that firms with better ethics scores are significantly associated with a reduced cost of equity capital. This paper also demonstrates that the executive incentive pays that are based on the objectives of sustainable development are able to explain different outcomes regarding the relation between corporate ethical behaviors and the cost of equity. These findings support arguments in the literature that firms with socially responsible practices have a higher valuation and lower risk.
Originality/value
This study provides implications for global regulators and policymakers when setting social reporting standards, suggesting that corporate ethical engagement reduces the cost of equity capital by decreasing the information asymmetry and thereby reducing the firms’ risk. Therefore, the findings may be informative to international managers and investors when considering the effect of business ethics on the firm’s ex-ante cost of equity. In this perspective, the voluntary disclosure of information makes it possible to mitigate the problems of asymmetry of information and conflict of interest between the firm and its main providers of capital, which could reduce the cost of equity.
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Yamina Chouaibi and Saida Belhouchet
The purpose of this paper is to examine the moderating effect of International Financial Reporting Standards (IFRS) adoption on the relationship between accounting conservatism…
Abstract
Purpose
The purpose of this paper is to examine the moderating effect of International Financial Reporting Standards (IFRS) adoption on the relationship between accounting conservatism and the cost of equity in Canadian environmental, social, and corporate governance (ESG) firms.
Design/methodology/approach
Panel data was collected using the Thomson Reuters ASSET4 database on a sample of 284 Canadian ESG companies over the period 2007–2019.
Findings
The results obtained show a negative relationship between conditional conservatism and the cost of equity. The authors also find a negative relationship between unconditional conservatism and the cost of equity. In addition, IFRS adoption moderates the relationship between accounting conservatism and the cost of equity in Canadian ESG firms.
Research limitations/implications
Future studies may extend the coverage of the study by including other countries and other sectors.
Practical implications
The results imply that prudent accounting signals information to investors about the quality of a company’s current and future earnings. The rates of return required by investors may be higher for conservative reporting companies that are more susceptible to opportunistic management discretion.
Originality/value
Although the previous literature has studied the direct correlation between accounting conservatism and the cost of equity, the present work focuses on examining the direct association between accounting conservatism and the cost of equity through the moderator effect of IFRS, which has not been widely used in studies of accounting conservatism until now.
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Yamina Chouaibi, Roua Ardhaoui and Wajdi Affes
This paper aimed to shed light on the relationship between blockchain technology intensity and tax evasion and whether this relationship is moderated by good governance.
Abstract
Purpose
This paper aimed to shed light on the relationship between blockchain technology intensity and tax evasion and whether this relationship is moderated by good governance.
Design/methodology/approach
Data from a sample of 50 European companies selected from the STOXX 600 index between 2010 and 2019 were used to test the model via panel data and multiple regression. Here, we used the generalized least squares method estimated on panel data. A multivariate regression model was used to analyze the moderating effect of good governance on the association between blockchain technology intensity and tax evasion. For the robustness analyses, we included the comparative study of legal systems. We performed an additional analysis by testing the dynamic dimension of the data set using the generalized method of moments to control for the endogeneity problem.
Findings
Expectedly, the results showed a negative relationship between blockchain technology intensity and tax evasion. Furthermore, the findings suggest that the moderating variable negatively affects the relationship between blockchain technology and tax evasion.
Originality/value
To our knowledge, this study supports the existing literature. Firstly, it expands the scientific debate on tax evasion. Secondly, it extends the scope of the agency theory, which is used to explain the phenomena associated with tax evasion. This study is one of the first to examine the moderating effect of good governance on the association between blockchain technology intensity and tax evasion.
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