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1 – 10 of over 2000
Article
Publication date: 27 May 2020

Christelle Smith and Elmar R. Venter

This paper aims to investigate financial statement comparability in the extractive industry. This paper focuses on the extractive industry because International Financial…

Abstract

Purpose

This paper aims to investigate financial statement comparability in the extractive industry. This paper focuses on the extractive industry because International Financial Reporting Standards (IFRS) contain limited guidance on the accounting treatment for exploration and evaluation (E&E) costs and IFRS 6 – Exploration for and Evaluation of Mineral Resources allowed firms to continue with existing divergent accounting treatment of E&E costs.

Design/methodology/approach

The authors use data from Australia, a country that adopted IFRS in 2005 with a large extractive industry. They also compare changes in cross-country comparability around the IFRS adoption date between Australian firms and adopters relative to Australian firms and non-adopters to better isolate changes in comparability that are attributable to the adoption of IFRS from other sources that are not related to the adoption of IFRS. The authors measure comparability consistent with De Franco et al. (2011) where financial statements are comparable when two firms produce similar accounting amounts for similar economic events.

Findings

For non-extractive industry firms, the authors find the comparability of financial statements of Australian firms increased with other adopters and that this increase was relatively greater than the increase with non-adopter firms. This evidence is consistent with comparability benefits associated with the adoption of IFRS. However, for extractive industry firms, the authors do not find a significantly greater increase in the comparability of financial statements of Australian firms with adopters relative to the increase with non-adopters, suggesting that the increase is likely not associated with the adoption of IFRS. In additional analysis, they find that following IFRS adoption non-extractive Australian firms have greater within-country comparability relative to extractive Australian firms, while there was no difference in the pre-adoption period.

Originality/value

The evidence suggests that the divergent practices for E&E costs under IFRS 6 and the lack of an accounting standard that deals with matters relating to the extractive industry hinder the comparability of financial statements in this industry.

Details

Accounting Research Journal, vol. 33 no. 3
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 6 February 2024

Grant Samkin, Dessalegn Getie Mihret and Tesfaye Lemma

We develop a conceptual framework as a basis for thinking about the impact of extractive industries and emancipatory potential of alternative accounts. We then review selected…

Abstract

Purpose

We develop a conceptual framework as a basis for thinking about the impact of extractive industries and emancipatory potential of alternative accounts. We then review selected alternative accounts literature on some contemporary issues surrounding the extractive industries and identify opportunities for accounting, auditing, and accountability research. We also provide an overview of the other contributions in this special issue.

Design/methodology/approach

Drawing on alternative accounts from the popular and social media as well as the alternative accounting literature, this primarily discursive paper provides a contemporary literature review of identified issues within the extractive industries highlighting potential areas for future research. The eight papers that make up the special issue are located within a conceptual framework is employed to illustrate each paper’s contribution to the field.

Findings

While accounting has a rich literature covering some of the issues detailed in this paper, this has not necessarily translated to the extractive industries. Few studies in accounting have got “down and dirty” so to speak and engaged directly with those impacted by companies operating in the extractive industries. Those that have, have focused on specific areas such as the Niger Delta. Although prior studies in the social governance literature have tended to focus on disclosure issues, it is questionable whether this work, while informative, has resulted in any meaningful environmental, social or governance (ESG) changes on the part of the extractive industries.

Research limitations/implications

The extensive extractive industries literature both from within and outside the accounting discipline makes a comprehensive review impractical. Drawing on both the accounting literature and other disciplines, this paper identifies areas that warrant further investigation through alternative accounts.

Originality/value

This paper and other contributions to this special issue provide a basis and an agenda for accounting scholars seeking to undertake interdisciplinary research into the extractive industries.

Details

Meditari Accountancy Research, vol. 32 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 6 June 2008

Peter J. Buckley

The purpose of this paper is to examine the extent to which we require a special theory of foreign direct investment (FDI) for extractive industries.

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Abstract

Purpose

The purpose of this paper is to examine the extent to which we require a special theory of foreign direct investment (FDI) for extractive industries.

Design/methodology/approach

The paper examines the general theory of FDI using internalising theory and location theory and augments this by using special features that apply to the extractive industries including the obsolescing bargaining argument.

Findings

The paper shows that a special theory is clearly required to explain the particular circumstances of extractive industries. However, the received theory relying on internalisation and location elements performs well.

Practical implications

Despite the current issues around extractive industries and its peculiarities, analysis of the reasons for FDI (including Chinese FDI) remains explicable by standard theory.

Originality/value

FDI in the extractive industry provides a good test of the general theory of FDI and a special theory nested within this gives a great deal of insight into current issues of FDI in extractive industries.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 1 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Book part
Publication date: 30 July 2020

Nicolien van Luijk, Audrey R. Giles and Lyndsay M. C. Hayhurst

To critically consider the role that environmental sustainability plays in Sport for Development and Peace's (SDP) conceptualization of development in Indigenous communities in…

Abstract

To critically consider the role that environmental sustainability plays in Sport for Development and Peace's (SDP) conceptualization of development in Indigenous communities in Canada. To do this, the chapter presents a critical analysis of one of the most prominent SDP organizations in Canada, Right To Play (RTP), and its relationship with extractives companies that support RTP initiatives.

In the first part of the chapter, we discuss the role of environmental sustainability in SDP approaches around the globe. In the second part, a textual analysis of RTP's documents is conducted to consider how environmental sustainability plays a role in its promotion of development in Indigenous communities throughout Canada.

Key findings of the research are presented and critically analyzed. The textual analysis of RTP documents shows that there is currently little consideration of environmental sustainability in the promotion and description of RTP's programs that operate in Indigenous communities in Canada. In addition, RTP's connections to extractives companies raise questions about the potential future directions.

The limitations of a textual analysis approach are discussed and the need for future research in this area is outlined with specific reference to how SDP programs might promote environmental sustainability.

Details

Sport and the Environment
Type: Book
ISBN: 978-1-78769-029-5

Keywords

Article
Publication date: 28 February 2023

Olayinka Moses, Dimu Ehalaiye, Matthew Sorola and Philippe Lassou

The purpose of this study is to examine the Nigerian Extractive Industry Transparency Initiative’s (NEITI) ineffectiveness in delivering public accountability to Nigerian…

Abstract

Purpose

The purpose of this study is to examine the Nigerian Extractive Industry Transparency Initiative’s (NEITI) ineffectiveness in delivering public accountability to Nigerian citizens. Although this failure is recognised in prior literature, the authors contend that NEITI’s role is obscured by one-sided links to external factors.

Design/methodology/approach

The conceptual framework presented in this study is built around Dillard and Vinnari’s (2019) distinction between different accountability systems and Brown and Dillard’s (2020) complimentary insights on the technologies of hubris and humility. The analytical framework draws from Grant and Keohane’s (2005) modes of accountability, which the authors use to articulate conflicting accountability demands (to-whom and for-what) of NEITI’s operating relationships. Combined, the authors analyse official documents, media, reports and interview responses from members of NEITI’s National Stakeholders Working Group.

Findings

This study surfaces a variety of intersecting interests across NEITI’s operational relationships. Some of these interests are mutually beneficial like that of Donors and the Extractive Industries Transparency Initiative. Others run counter to each other, such as NEITI’s relationship to the Presidency which illustrates a key source of NEITI’s ineffectiveness. In discussing these interests, the authors articulate their connection to NEITI’s design as an accountability system and its embedded limitations.

Originality/value

The authors provide incremental understanding of prior insight regarding NEITI’s ineffectiveness by drawing attention to its fundamental design as an accountability system and its failure to deliver public accountability. To illuminate these failures, the authors also map NEITI’s competing accountability demands – the nexus of accountability – to demonstrate the complex socio-political reality within which NEITI is expected to operate. The authors posit that NEITI’s ineffectiveness has as much to do with NEITI itself, as it does with external factors like the quality of information disclosed and the unique Nigerian context.

Details

Meditari Accountancy Research, vol. 32 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 25 April 2023

Amewu Attah and Prince Amoah

This paper aims to examine the effects of extractive activities on the well-being of local communities and assesses stakeholder expectations of resource benefits and the corporate…

Abstract

Purpose

This paper aims to examine the effects of extractive activities on the well-being of local communities and assesses stakeholder expectations of resource benefits and the corporate social responsibility (CSR) practices of oil companies in Ghana.

Design/methodology/approach

The paper uses a qualitative approach based on an exploratory research design to investigate the opinions and experiences of stakeholders in the growing oil and gas industry in Ghana.

Findings

The empirical findings demonstrate that entry negotiated agreements and local content requirements in the offshore oil industry have minimal benefits because of the lack of linkages with the economies of local communities. Additionally, the nature of CSR practices within the extractive industry is directly traceable to the resource governance arrangements and plural logics in Ghana’s institutional context.

Research limitations/implications

This study only provides insights into natural resource governance and CSR issues in offshore oil and gas projects. Thus, the findings are not generalisable to the entire industry, including onshore drilling, which have other sustainability issues.

Practical implications

This research highlights the gap in natural resource management in Ghana and the effects of community expectations on CSR practices in the oil and gas industry. Therefore, this study posits the significance for including compliance requirements for improving the well-being of host communities in entry negotiated agreements and local contents.

Originality/value

By highlighting the nuanced issues in natural resource management within the oil and gas industry in Ghana, this paper makes significant contributions to the CSR and sustainability literature.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 11 February 2022

Yan Wang, Kemi Yekini, Bola Babajide and Miriama Kessy

This study aims to examine the level of corporate social responsibility (CSR) disclosure among the UK extractive and retail sectors and consequently ascertain whether corporate…

Abstract

Purpose

This study aims to examine the level of corporate social responsibility (CSR) disclosure among the UK extractive and retail sectors and consequently ascertain whether corporate board characteristics and firm characteristics can explain observable differences in the extent of CSR disclosure.

Design/methodology/approach

Based on the KPMG survey 2017, the sample comprises all the firms in the extractive industries, such as mining and oil and gas and also retail industries, such as food and drug retailers and general retailers for the sample period of 2005 to 2018.

Findings

The findings show that the level of CSR disclosure from extractive sector is much higher than that of their counterparts in retail sector. In addition, the multiple regression results show that CSR disclosure is positively and significantly associated with board gender diversity, board independence, board size. Nevertheless, the results show that board meetings and Chief Executive Officer duality do not have a significant impact on CSR disclosure.

Originality/value

This study contributes to the existing literature on CSR in that it advances the understanding of the interaction between governance mechanisms and specific firm characteristics of two distinct sectors of the UK economy and how this in turn influences the CSR in the two sectors.

Details

International Journal of Accounting & Information Management, vol. 30 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 9 February 2021

Stuart Mcchlery and Khaled Hussainey

This paper contributes to risk management research with reference to disclosure of risk specific information within the oil and gas industry. This paper provides empirical…

Abstract

Purpose

This paper contributes to risk management research with reference to disclosure of risk specific information within the oil and gas industry. This paper provides empirical evidence regarding voluntary and mandatory disclosure behaviour from both a quantitative and qualitative perspective.

Design/methodology/approach

A longitudinal empirical study examines probabilistic reserve quantum reporting of UK companies, over a time-period spanning voluntary and mandatory disclosure. The researchers analyse disclosure behaviour under voluntary and mandatory time spans using a logistical regression approach to measure determinants of risk reporting. Form of regulation is considered as the fundamental driver for disclosure whilst controlling for other relevant variables. Implications for developing international regulation are presented with suggestions for further research.

Findings

Mandatory reporting is not seen as a significant influence to disclosure. Degree of risk, quality of audit firms, level of stock exchange and organisational visibility each impact on disclosure. The findings indicate that a mandatory disclosure approach is ineffective, partially explained by mimetic and normative forces and a balancing of agency-related costs and benefits. There is an inverse relationship between level of risk and risk reporting.

Research limitations/implications

Generalisation of the findings is limited due to the specific context of the extractive industry.

Practical implications

The paper seeks to inform the International Accounting Standards Board's (IASB) on-going consideration of risk reporting and also its extractive industries deliberations.

Originality/value

The paper provides original insight into the area of risk management with particular focus on risk specificity and quantitative metrics for risk profiling not previously tested. The paper introduces risk profiling as a variable in risk disclosure.

Details

Journal of Applied Accounting Research, vol. 22 no. 3
Type: Research Article
ISSN: 0967-5426

Keywords

Open Access
Article
Publication date: 10 May 2021

Olusola Joshua Olujobi

This study aims to investigate why anti-corruption statutes are not efficient in Nigeria’s upstream petroleum industry.

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Abstract

Purpose

This study aims to investigate why anti-corruption statutes are not efficient in Nigeria’s upstream petroleum industry.

Design/methodology/approach

This study is a doctrinal legal research that embraces a point-by-point comparative methodology with a library research technique.

Findings

This study reveals that corruption strives on feeble implementation of anti-corruption legal regime and the absence of political will in offering efficient regulatory intervention. Finally, this study finds that anti-corruption organisations in Nigeria are not efficient due to non-existence of the Federal Government’s political will to fight corruption, insufficient funds and absence of stringent implementation of the anti-corruption legal regime in the country.

Research limitations/implications

Investigations reveal during this study that Nigerian National Petroleum Corporation (NNPC) operations are characterised with poor record-keeping, lack of accountability as well as secrecy in the award of oil contracts, oil licence, leases and other financial transactions due to non-disclosure or confidentiality clauses contained in most of these contracts. Also, an arbitration proceeding limit access to their records and some of these agreements under contentions. This has also limited the success of this research work and generalising its findings.

Practical implications

This study recommends, among other reforms, soft law technique and stringent execution of anti-corruption statutes. This study also recommends increment in financial appropriation to Nigeria’s anti-corruption institutions, taking into consideration the finding that a meagre budget is a drawback.

Social implications

This study reveals that corruption strives on feeble implementation of anti-corruption legal regime and the absence of political will in offering efficient regulatory intervention. Corruption flourishes due to poor enforcement of anti-corruption laws and the absence of political will in offering efficient regulatory intervention by the government.

Originality/value

The study advocates the need for enhancement of anti-corruption agencies' budgets taking into consideration the finding that meagres budgets are challenge of the agencies.

Details

Journal of Money Laundering Control, vol. 26 no. 7
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 5 May 2021

Constâncio A. Machanguana and Idalina Dias Sardinha

This paper aims to contribute to the scientific and societal debates about the role of corporate social responsibility (CSR) and particularly on the resettlements’ processes as…

Abstract

Purpose

This paper aims to contribute to the scientific and societal debates about the role of corporate social responsibility (CSR) and particularly on the resettlements’ processes as part of extractive multinational companies (MNCs)’s commitments where the host country is an emerging extractive economy.

Design/methodology/approach

It is an exploratory study based on the analysis of secondary data, few interviews and on-site observation and deals with the description of the assessment of VALE, SA resettlement processes and assumed CSR practices of VALE, SA, an MNC operating in the Moatize district, Tete province in Mozambique.

Findings

The MNC assumes resettlement processes to be part of the CSR arena and reveals that VALE, SA follows a reactive poor approach as to CSR. The weak institutional context in Mozambique is like others described in the literature. The empirical data together with the sense of an ethical responsibility approach associated with resettlement processes and the paradigm shift in aid for trade as to development supported by the MNC’s CSR leads to the conclusion that resettlement can be considered part of the CSR of a mining MNC.

Research limitations/implications

The difficult access to key informants of the resettled communities, local government and little interest in interview participation by VALE, SA, showed a current lack of confidence and communication limitations by the company as to this issue.

Practical implications

The failure of VALE, SA and other mining companies to meet their resettlement responsibilities and the inability of government supervision, requires local and national, as well as social and scientific communication processes and debate on this issue to be maintained on an ongoing basis during the mining life cycle to guaranty accomplishments of CSR.

Social implications

The controversy over whether mining MNCs will benefit Africa’s emerging economies as to their socio-economic development will continue until MNCs commit themselves and act to be economically, legally and ethically responsible for contributing to the sustainable development of the countries where they operate.

Originality/value

This paper contributes to the debate on whether CSR frames the resettlement process based on literature review and key stakeholder views.

Details

Sustainability Accounting, Management and Policy Journal, vol. 12 no. 3
Type: Research Article
ISSN: 2040-8021

Keywords

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