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1 – 10 of 422Stefano Azzali and Tatiana Mazza
The purpose of this paper is to analyze the effects of financial restatements (FRs) on the likelihood of the top management team (TMT) dismissal. It investigates the effects of…
Abstract
Purpose
The purpose of this paper is to analyze the effects of financial restatements (FRs) on the likelihood of the top management team (TMT) dismissal. It investigates the effects of types of FRs [corrective note and reissuance of financial statement (RFS)], of FR severity and of FR related to international financial reporting standards (IFRSs) easy or difficult-to-estimate.
Design/methodology/approach
The authors hand-collect: data about 96 FRs from the Italian public oversight board documents; chief executive officer (CEO) name, chairman name, year of the financial statement under investigation, total assets and operating income, from their financial statement. The authors use multivariate regression to test the effects of FRs on the probability of TMT dismissal.
Findings
The authors find that the RFS leads to a higher likelihood of chairman dismissal. A greater magnitude of misrepresentation on income statements, and FRs, which decrease net income, increase the likelihood of CEO dismissal. Difficult-to-estimate IFRSs increases the likelihood of CEO dismissal.
Originality/value
FRs are significant determinants of the CEO/chairman dismissal. The authors show that FRs directly involving shareholders (RFS) have negative consequences on the chairman of the board of directors, while the CEO is more affected by FRs that involve technical factors (FR severity or financial statement associated with difficult-to-estimate IFRSs).
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The purpose of this paper is to critically engage with societal origins of public (dis)trust and public credibility of nutrition science and offer suggestions for addressing its…
Abstract
Purpose
The purpose of this paper is to critically engage with societal origins of public (dis)trust and public credibility of nutrition science and offer suggestions for addressing its public dismissal.
Design/methodology/approach
This viewpoint presents a conceptual analysis of public dismissal of nutrition science, drawing together perspectives on the relationships between science and society from the history, sociology and philosophy of science.
Findings
The origin of trust amongst scientists relies is actively tied to their social and moral status and science as a cultural activity is inextricably linked to institutions of power. Accordingly, trust in science relies heavily on public perceptions of those institutions, the ways in which citizens feel represented by them, and to what extent citizens consider these institutions to be held accountable. Ignoring this origin leads to expectations of science and scientists they cannot live up to and inevitable disappointment in those holding such expectations.
Social implications
Managing responsible expectations asks that we first dismiss dominant portrayals of science as pure, neutral, value-free and fuelled by curiosity. Second, we should pursue a reorganisation of science, favouring social inclusiveness over scientific exceptionalism.
Originality/value
Post-truth dynamics are a source of concern in the dissemination of nutrition science. Rather than dismissing it as a consequence of public ignorance, a comprehensive engagement with post-truth arguments allows a constructive repositioning of nutrition science organisation and communication. It asks that we design research programmes and studies differently, incorporate different voices. Above all else, it asks humility of researchers and tolerant approaches to other perspectives.
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Entrepreneurs tend to be self-styled “idea” people. They often believe they have the next “Big Concept”‐one which could change the world, reaffirm their self-worth, and, of…
Abstract
Entrepreneurs tend to be self-styled “idea” people. They often believe they have the next “Big Concept”‐one which could change the world, reaffirm their self-worth, and, of course, make them and their venture team a fortune. In contrast, as they build a company to implement their business dream, entrepreneurs also tend to eschew or trivialize administrative details. Why should they waste their creative juices on minutia? As a result of this insensitivity to detail, these captains of capitalism often trip in their entrepreneurial journey. For example, they might:
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Forget to remit payroll taxes on schedule.
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Fail to document the justification underpinning the dismissal of a key employee.
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Allow the company℉s liability insurance to lapse.
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Neglect to report sales usage tax.
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Verbally grant employee incentive stock options during an informal luncheon meeting, at a yet-to-be-determined exercise price and without the board of directors℉ approval.
Forget to remit payroll taxes on schedule.
Fail to document the justification underpinning the dismissal of a key employee.
Allow the company℉s liability insurance to lapse.
Neglect to report sales usage tax.
Verbally grant employee incentive stock options during an informal luncheon meeting, at a yet-to-be-determined exercise price and without the board of directors℉ approval.
Gabriele D’Alauro, Alberto Quagli and Mario Nicoliello
This paper aims to analyze the direct and indirect effects of investor protection on forced CEO turnover.
Abstract
Purpose
This paper aims to analyze the direct and indirect effects of investor protection on forced CEO turnover.
Design/methodology/approach
The authors investigate 5,175 firm-year observations from 16 European countries over 2012–2018, collect data on four national investor protection indicators, identify 196 forced CEO turnovers and use multiple logistic regression models.
Findings
The results show that a reduction in the degree of investor protection significantly increases the probability of a forced change of the company’s CEO. Furthermore, when the degree of investor protection increases, directors are attributed a lower degree of responsibility in the event of a decline in earnings performance. Therefore, the relation between a decrease in profitability and a forced change of CEO is reduced.
Research limitations/implications
The research is focused on countries belonging to the European Economic Area and most of the investor protection indicators are derived from surveys. Concerning policy implications, the findings suggest that regulators should focus on the effective enforcement of investor protection mechanisms.
Social implications
The results confirm that characteristics at the country level have an impact on corporate decisions, highlighting the importance of increasing the degree of investor protection as a means of mitigating agency conflicts and improving stewardship.
Originality/value
To the best of the authors’ knowledge, this study explores a relatively underinvestigated topic as it uses investor protection indicators to jointly evaluate both direct and indirect effects on forced changes of CEO through cross-national research.
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Michele Andreaus, Leonardo Rinaldi, Caterina Pesci and Andrea Girardi
The purpose of this paper is to explore the role of accountability in times of exception. The Italian government's account-giving practices are critically analysed with respect to…
Abstract
Purpose
The purpose of this paper is to explore the role of accountability in times of exception. The Italian government's account-giving practices are critically analysed with respect to the distinct modes in which duties of accountability are discharged for the exceptional measures taken during the early stages of the COVID-19 pandemic outbreak in early 2020.
Design/methodology/approach
This paper draws on an exploratory case study. The case analysis draws primarily on data obtained through publicly available documents and covers the period between January 1 and August 7, 2020.
Findings
The paper reveals that the Italian government employed various accountability styles (rebuttal, dismissal, reactive, proactive and coactive). Each style influenced both how the government justified its conduct and how it sought to form distinctive relationships with social actors.
Originality/value
The paper uses the notion of “styles of accountability” to empirically illustrate how an unprecedented public governance challenge can reveal broader accountability trends. The paper contributes to accountability research by elucidating how governments tackle ambiguity and uncertainty in their systems of public accountability in extraordinary times.
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