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There are variations in religious social norms and legal environments around the world. In this paper, we aim to examine the interaction between variations in religious social norms and legal environments on real activities manipulations and expense misclassification using a global sample of 63 countries. Our inquiry is motivated by a paucity of research on the interaction between legal environment and religion on earnings management practices in an international setting.

This study draws on a global sample of 63 countries to examine the effect of variations in religious social norms and legal environments on the trade-off between expense misclassification and real activities earnings management practices. Firm-specific financial data come from Global Compustat. Religion data are obtained from World Values Surveys of the World Bank. We obtain legal environment scores from the International Country Risk Guide.

Findings suggest that the interaction between law and religion serves as constraints on both classification shifting and real activities manipulation around the world. We find that religion strengthens the weak legal environment and the strong legal environment strengthens the weak religious environment to decrease both real activities manipulation and classification shifting when law and religion interact in an international setting. Therefore, our results contradict Zang's (2012) earnings management trade-off evidence. Again, our results contradict Malikov et al.’s (2018) evidence that mandatory International Financial Reporting Standards (IFRS) adoption is associated with increased real activities manipulation.

The study is limited to 63 countries limiting the generalizability of the findings.

This study provides novel evidence and shows that there is a link between law and religion. The interaction between law and religion decreases expense misclassification and real activities manipulation. We contribute that the interaction between religion and law benefits firms and increases shareholder value as real activities manipulation decreases. Therefore, strengthening the legal environment will complement religion, IFRS and other monitoring mechanisms put in place to mitigate unethical expense misclassification and real activities earnings manipulation around the world.

This study explores whether religion plays an important role in corporate poverty alleviation. Religious atmosphere affects managers' attitude towards corporate social responsibility (CSR) and then influences corporate poverty alleviation. This study first examines the impact of religious atmosphere on corporate poverty alleviation and then investigates whether formal institutions, such as law enforcement environments and ownership, influence the relationship between religious atmosphere and corporate poverty alleviation behavior.

In 2016, the Chinese government initiated a nationwide campaign aiming to eliminate poverty in China by 2020. The authors conduct empirical tests with data on Chinese listed firms from 2016 to 2020. The religious atmosphere is measured by the number of Buddhist monasteries and Taoist temples within a certain radius around Chinese listed firms' registered addresses. The authors adopt the ordinary least squares (OLS) method for regression and take the two-stage least squares (2SLS) method to address the endogeneity issue.

The results show a positive relationship between religious atmosphere and corporate poverty alleviation donations. Law enforcement attenuates the positive association between the religious atmosphere and corporate poverty alleviation donations. Religion and corporate poverty alleviation donations have a more positive association for non-state-owned enterprises (non-SOEs) than for state-owned enterprises (SOEs).

The authors' findings have important implications. First, this study inspires incorporating the ethical value of traditional culture, such as religion, into CSR. Second, the findings imply that informal institutions have a greater impact on corporate decision-making when formal institutions are weak, suggesting that informal institutions should be emphasized when promoting CSR in countries where formal institutions are relatively weak. The study investigates only religious influence on corporate poverty alleviation based on Buddhism and Taoism, but the authors do not examine the impacts of other religions. Future research may examine the relationships between other religions and corporate poverty alleviation in China.

This study illustrates the positive role played by religion in promoting CSR by relating religious atmosphere to corporate poverty alleviation. It fills the research gap between religion and CSR and also contributes to the literature on determinants of corporate poverty alleviation.

Legal systems govern social behaviour. They attempt to regulate order, collective peace and harmonious developments in society. The external social behaviour that law deals with is also a part of internal human behaviour. This external and internal nature of human behaviour, needs to be consciously studied and interlinked when legal systems desire elements of justice, equality, liberty, fraternity, dignity, integrity and unity for social collectivity. These elements, that legal systems guarantee come from an integration of individual and collective life on matters of social, political, economic etc., of various levels. The individuality and collectivity on these matters and levels are deeply psychological and spirited in sense as human behaviour operates through stimulus from inside to leave external effects outside or vice-versa through a function of thought-emotion-sensation-body complex. Thus, we see, our behaviour gets shaped by a two-way process of inner motivation and outer circumstance, individual and collective dimensions on a given matter and level. At this juncture, a critical study on this two-way relation in human behaviour and a set of unifying values to be identified for progressive intersections seem to be the future of legal systems for achieving greater goals of humanity. Additionally, legal systems that deal with justice are now becoming more than social, economic and political justice as new knowledge is revealing interrelations of spirit-mind-body or thought-emotion-sensation-body complex leaving us to think of new dimensions in justice. Thus, spirituality, as an exercise of human experiment and experience, provides a new scope for legal systems to deal with human and social behaviour to achieve order, peace and development. At this juncture, one even finds another unknown dimension gaining grounds and sinking to integrate or bring holistic responses to human problems and social challenges of the collective is the actual linking of spirituality through or with psychology or vice versa. Law and legalities of the thoughts and norms are interspersed in between these two disciplines. This is indeed a welcome trend as the psychological human and the social collective have become the axis on which every wheel of knowledge is tested and allowed to represent as spokes for inclusive, sustainable and harmonious inter-relational movement of things. One might see, know, feel or even ought to bear this interconnection that very often come in the actual spiritual practices where psychological dimensions emerge leading to wholesome experience of the state of our own individual and socio-collective nature. Among many kinds of spiritual experiences and experiments, two of them stand out for our legal consideration. One, an experience of timeless, space-less and boundless consciousness-awareness beyond life and world with which we witness, observe and understand the movement of things inside life and world, without our participation into them. Two, an experience of consciousness-awareness as power and force operating and animating through thought-emotion-sensation-body complex with our active participation in the movement of life and world. The former experience prepares the ground to remain free from all fetters of self-aggrandizing individualization before wider collectivity and, the latter experience prepares us to re-enter into wider collectivity to contribute with a freed sense of individualization, not imprisoned by its ego-aggrandizement that cuts the individual from the collective. These two spiritual experiences, one of the consciousness-awareness of freedom and, another of the consciousness-awareness with all potentials, when allowed to animate inside the human, it gives crucial understanding of the challenges of life and, pro-activation of solutions for those challenges that are extremely crucial for law and legal systems. A power of understanding the knowledge using spiritual experience of these two states of consciousness-awareness along with rationality, reason and logic, a strength operating through concentration of the energies in body aiding movement of knowledge, a harmony releasing itself through motivating-empathy and mutual-collaboration using knowledge and strength and, finally a near-perfect action operating through strategies, stages and steps in organizing daily life, human capital and all kinds of the systems of the world using knowledge, strength and harmony become our positive tools of empowerment. The combination of these two spiritual experiences of consciousness-awareness is useful to legal systems that look for solutions to human crises using interactive nature of individuality and collectivity on all issues of life, world and society. The chapter attempts to demonstrate that this kind of spirituality and its applied processes thus provide us the clue and strategy to achieve what the human nature and social existences of all kinds all over the world seek and aspire in the form of individual as well as collective peace, joy and compassion. It is also argued that this peace, joy and compassion that is spiritual in nature are in fact the origin and source of inspiration and stimulation for social, political and economic equality, liberty and fraternity in law, and the harmony and perfection of these elements seen as the justice that balances everything. The chapter demonstrates how applied spirituality can be used in law in the sense of law-making, judicial-interpretation, executive-governance, legal profession and finally a grand introduction of spirituality and its values into legal academics and research that are waiting to be liberated from the clutches of mere analytical knowledge of life and world moving towards new enriching powers of radiant collective life and wonderful harmonious world.

Ahmet Kuru, in his book, suggests that the explanation for the lack of social and political development in the modern world can be traced back to a historical ‘state-ulama alliance’ from the 11th-century Saljuq empire or earlier. From the perspective of an historian, however, this dating displays some empirical problems. It is certain that the state eventually did gain the upper hand over the Muslim intellectuals, at least in the centre of the Ottoman empire. But the process to that point was different. In this comment, a different explanation is proposed that points instead to two crucial factors: the loss of a homogeneous Muslim state with the fall of the caliphate, and the rise of a unified Muslim world, an umma, through the independence, not subservience, of the class of scholars in the mediaeval period of Islam. Thus, a model is proposed that focuses on two turning points: the replacement of the effective caliphate with a fractious system of sultanates in the mid-tenth century, coinciding with the solidification of Islamic thought in a more strictly regulated form both in theology, law and in Sufism. The second moment is ca. 1500, when the period of political fragmentation comes to an end with the Ottoman state unifying the Middle East, flanked by Morocco and Iran, while challenges to the religious orthodoxy begin to grow at the margins. Such a model thus sees the ulama as actors for change as well as for orthodoxy throughout Muslim history, responding to changing developments in social and political contexts.

As a growth industry in the international tourism segment market, halal tourism domestic policy should align with General Agreement on Trade in Services (GATS) as an international trade in services regulation. This paper aims to examine Indonesia’s halal tourism policy and its intersection with obligations as a member state of the World Trade Organization (WTO). Particularly in balancing Indonesia’s international obligation and the right to regulate.

The present study uses normative legal research by analysing legal materials, primarily GATS and Indonesia’s halal tourism policy. By using this methodology, this paper seeks the normative ideal domestic approach that aligns with Indonesia’s international obligations within GATS.

Regional regulations primarily govern the halal tourism policy in Indonesia. The critical substance of the regulation is the mandatory halal certification for the implementation of halal tourism. This obligation may be incompatible with Indonesia’s commitment to liberalise the tourism sector under the GATS. The current legal framework gives rise to a lack of consistency in its application despite its adherence to the halal tourism standards established by the MUI. At the same time, the provincial and regent authorities lacked the authority to do so. The authors argue that halal tourism policy shall be promulgated in the national-level policy to settle this issue. This measure is necessary to mitigate conflicts between prevailing norms and Indonesia’s international commitments within GATS. Therefore, Indonesia can uphold both its international obligations and national interests.

This paper presents a novelty contribution by highlighting the absence of prior research examining Indonesia’s adherence to its international commitments under the GATS in formulating domestic legislation on halal tourism. To close this gap, this study suggests that national legislation governing halal tourism should consider international obligations in the tourism sector under the GATS.

The rites and practices of folk religion in Nigeria cut across virtually all conventional and emerging social institutions in the country. The inability of the State to perform many of its functions has encouraged this trend, with many turning to folk religion and associated practices in attempts to control uncertain situations. Unemployed/underemployed young gamblers have begun to incorporate and normalise the combination of spiritual elements with sports betting activities in a bid to translate games of uncertainty into games of certainty. This study attempts to conceptualise how and why young people adopt, practice and make sense of folk religion in relation to sports betting.

Semi-structured, in-depth interviews were used to interrogate and analyse the lived experiences of key actors living in the capital city of Ilorin, Kwara State, a place renowned for the widespread practice of folk religious rites: 20 unemployed/underemployed young sports bettors and 10 folk doctors. Collected data were transcribed manually and subjected to inductive content analysis, using grounded theory. The combination of folk religion with sports betting is fast becoming normalised as young Nigerians seek to survive harsh economic conditions. Adoption is also linked with belief in traditions, in-group conflicts, gambling adverts, lack of luck and greed. Folk religious practices combine elements from the natural and spiritual worlds. This study formulates concepts for understanding the complexity of such practices concerning gambling among young sports bettors in Nigeria.

Organizations are affected top-down by the overarching societies and bottom-up by foundational face-to-face encounters: societies provide norms, values, laws, institutions, beliefs, markets, political structures, and knowledge bases. What happens within organizations is done by people interacting with other people, arguing, discussing, convincing each other when preparing and making decisions. Organizations operate within social environments that leave their – however indirect – imprint on what is going on within organizations. This article argues that organizational sociology can benefit from an integrated theoretical framework that accounts for the embeddedness of organizations within the micro- and macro-levels of social order. The argument is developed in two main points: First, this article introduces the multilevel framework provided by Niklas Luhmann’s systems theory to demonstrate how organizations are shaped by the functionally differentiated macro-structure of society. Organizations follow and reproduce the operational logics of societal domains such as the political system, the economy, science, law, religion, etc. Second, this paper demonstrates how organizations are shaped by micro-level dynamics of face-to-face interactions. Face-to-face encounters form a social reality of its own kind that restricts and resists the formalization of organizational processes. Here, this article draws on Erving Goffman’s and Randall Collins’ work on interaction rituals, emotions, and solidarity, which is inspired by Durkheimian micro-sociology. At the end, this article brings together all the elements into one general account of organizations within the context of their macro- and micro-structural social environments. This account can yield a deeper and more sociological understanding of organizational behavior.

This chapter discusses the extension of legal equality between male and female citizens in four states in North Africa – Tunisia, Egypt, Morocco and Algeria – through one specific lens: A married woman's legal capacity to initiate and obtain divorce without the husband's consent. Building on the works of Stein Rokkan and Reinhard Bendix on the expansion of citizenship to the ‘lower classes’, it is argued that amendments in divorce law by introducing in-court divorce for women, in addition to out-of-court divorce, is a significant institutional change that extends legal equality between men and women. The introduction of in-court divorce expands female citizenship by bolstering woman's juridical autonomy and capacity in state law. Changes in divorce laws are thus part of state centralization by means of standardizing rules that regulate family law through public administrative institutions rather than religious organizations. Two questions are addressed: First, how did amendments in divorce laws occur after independence? Second, in which ways did women's bolstered legal capacity in divorce have a spill over effect on reforms in other patriarchal state laws? Based on observations on sequences of change in four states in North Africa, it is argued that amendments that equalize between men and women in divorce should be seen as a key driver for reforms in other state laws, that reduce legal inequality between male and female citizens. In all four states, women's citizenship was extended in nationality law and criminal law after amendments in divorce law gave women unilateral legal power to exit a marital relationship.

Muslim Indonesian women entrepreneurs (MIWEs) lie at the intersection of religion and gender. Given the growing participation of women in entrepreneurship and economic stability in Indonesia, the purpose of this study is to identify the factors (and their significance) influencing MIWEs’ business performance.

A survey of 101 MIWEs was conducted, and results were analyzed via structural modelling equation using SmartPLS 3.

The findings of this study suggest that, within the macro frame of the moderate version of Islam practiced and women’s economic engagement, women business owners’ skills and religious factors significantly influence their business performance. Factor analysis indicates that the role of the veil, Shariah guidance for business and managing stress through the practice of Salah (prayer) are important for MIWEs. However, this study also indicates that, in addition to religious factors, MIWEs’ own effective and participative leadership style, honesty and fairness reputation in business dealings and a good market image are also significant variables affecting business performance. This is in contrast to past studies, where the role of environmental factors such as access to capital, family and government has been shown to have a stronger influence on Muslim women entrepreneurs’ business performance.

Because of Indonesia’s unique pluralistic national context, along with increasing women’s economic participation, MIWEs emerge as a distinct category of entrepreneurs who integrate religion and their own skills to navigate their business performance.

Our purpose is to explore how culture’s impact on investment is depending on uncertainty levels.

This study investigates the interplay between national culture, uncertainty, and corporate investment decisions. Focusing on the uncertainty avoidance dimension (HUA) from Hofstede’s culture framework and utilizing the World Uncertainty Index (WUI) as a measure of uncertainty, this research explores how culture’s impact on investment is depending on uncertainty levels.

Our results reveal that high HUA countries lower long-term investment during periods of heightened uncertainty, particularly in riskier investments like R&D, rather than capital expenditure. This relation is more pronounced for smaller firms. The findings suggest that HUA is associated with less risk taking, primarily when uncertainty is high. Furthermore, we demonstrate that the interaction between HUA and uncertainty exerts more significant and consistent effects on corporate investment than other cultural dimensions, religion, and various formal institutions, contrary to prevailing literature.

This study looks at the relationship between national culture and corporate investment under ambiguity, and what are the implications for risk taking. If national culture is related to riskier investments, such as R&D, relative to safer investments, like capital expenditure this would imply that risk taking is explaining the relationship between national culture and corporate investment. This relation should be clear during uncertain times. This is the first study to include the moderating effects of the level of uncertainty on the relation between national culture and corporate investment (or financial decisions in general).