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Article
Publication date: 19 October 2022

Sandra K. Gates

Using the ethical consequentialist theory of utilitarianism, this paper aims to demonstrate the correlation between the prosecution of Arthur Andersen LLP and the United States…

Abstract

Purpose

Using the ethical consequentialist theory of utilitarianism, this paper aims to demonstrate the correlation between the prosecution of Arthur Andersen LLP and the United States Department of Justice’s (DOJ) increased use of pretrial diversion agreements, both nonprosecution and deferred prosecution agreements (N/DPA) for criminal corporations.

Design/methodology/approach

Through an analysis of previous literature, the United States Justice Manual, and data from the Corporate Prosecution Registry, this study examines the trend of N/DPAs from 1992 to 2021. Specifically, the data is examined to assess whether a pattern exists before and after the 2002 prosecution of Andersen.

Findings

This study finds an exponential increase of N/DPAs after Andersen’s prosecution. The DOJ’s basis for the increased use of these agreements is rooted in the utilitarian theory that the punishment of criminal corporations should deter and rehabilitate behavior while also maximizing the benefit to society (e.g. shareholders, employees and business community). The justice manual, memorandums and public speeches explicitly promote the use of N/DPAs for corporations to minimize collateral damage and the potential for negative societal impact.

Originality/value

This study applies a utilitarian framework to explain the criminal justice system’s increased use of pretrial diversion agreements for criminal corporations.

Details

Journal of Financial Crime, vol. 30 no. 6
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 December 2023

Claire Nolasco Braaten and Lily Chi-Fang Tsai

This study aims to analyze corporate mail and wire fraud penalties, using bounded rationality in decision-making and assessing internal and external influences on prosecutorial…

Abstract

Purpose

This study aims to analyze corporate mail and wire fraud penalties, using bounded rationality in decision-making and assessing internal and external influences on prosecutorial choices.

Design/methodology/approach

The study analyzed 467 cases from 1992 to 2019, using data from the Corporate Prosecution Registry of the University of Virginia School of Law and Duke University School of Law. It examined corporations facing mail and wire fraud charges and other fraud crimes. Multiple regression linked predictor variables to the dependent variable, total payment.

Findings

The study found that corporate penalties tend to be lower for financial institutions or corporations in countries with US free trade agreements. Conversely, penalties are higher when the company is a U.S. public company or filed in districts with more pending criminal cases.

Originality/value

This study’s originality lies in applying the bounded rationality model to assess corporate prosecutorial decisions, unveiling external factors’ influence on corporate penalties.

Details

Journal of Financial Crime, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 13 December 2022

S.G. Sisira Dharmasri Jayasekara, Wasantha Perera and Roshan Ajward

The purpose of this paper is to discuss how the failed finance companies in Sri Lanka used fair value accounting practices as an opportunistic earnings management practice to…

Abstract

Purpose

The purpose of this paper is to discuss how the failed finance companies in Sri Lanka used fair value accounting practices as an opportunistic earnings management practice to launder money under weak corporate governance structures.

Design/methodology/approach

This paper uses a qualitative design under the philosophy of interpretivism. The case study research strategy is used inductively to investigate how fair value accounting had been used for money laundering.

Findings

The dishonest intention of major shareholders and board of directors had forced failed companies to misuse fair value accounting to manipulate performance and use them for personal benefits which were detrimental to the depositors and stability of the companies. The weak corporate governance structures which were developed because of regulatory forbearance were influential for manipulations. The concentrated ownership had reduced agency conflicts between shareholders and managers because major shareholders were the members of the board of directors. The appointed committees were not effective because of an inadequate number of independent directors with sufficient expertise. The reduced agency conflict between shareholders and managers has exaggerated the agency conflict with depositors. Therefore, it is recommended to dilute ownership concentration to establish good corporate governance structures and make stable institutions.

Research limitations/implications

This study does not discuss the dishonest fair value accounting practices of all licensed finance companies because of the sensitivity of the matter for surviving companies.

Originality/value

This paper is an original work of the authors which discusses how fair value accounting practices had been used to launder money in failed finance companies in Sri Lanka as an emerging market context.

Article
Publication date: 28 February 2023

Parveen Kumar, Pankaj Kumar and Vaibhav Aggarwal

This study aims to examine the determinants of adoption intention toward the rooftop solar photovoltaic (RSPV) systems among residents of peri-urban villages of Gurugram, Haryana…

Abstract

Purpose

This study aims to examine the determinants of adoption intention toward the rooftop solar photovoltaic (RSPV) systems among residents of peri-urban villages of Gurugram, Haryana, India. This study also analyzes the impact of the adoption of RSPV systems on carbon neutrality from a behavioral perspective.

Design/methodology/approach

Data was collected using a self-administrated structured questionnaire from 208 male villagers (195 usable) of 22 villages using the purposive sampling technique.

Findings

Results revealed that relative advantage, followed by simplicity, trialability, observability and compatibility, positively and significantly impact villagers’ attitude toward adopting RSPV systems in their homes. Perceived severity and perceived vulnerability significantly influence the perceived behavioral control of villagers toward adopting the RSPV systems. The results show villagers’ attitudes, subjective norms and perceived behavioral control are the essential predictors of their adoption intention of the RSPV systems. Most notably, carbon neutrality was significantly affected by villagers’ adoption intention of RSPV systems as the renewable energy source in their homes.

Originality/value

The findings of this study provide that innovation attributes are important factors in shaping the adoption intentions of customers toward RSPV systems. This study is also the extent of previous studies measuring customers’ perception of adopting renewable energy in developed and emerging countries worldwide.

Details

International Journal of Energy Sector Management, vol. 18 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 22 November 2021

Le Dang Lang

E-commerce, with technology as its backbone, is an indispensable business trend associated with the wave of the Fourth Industrial Revolution. Recently, its intensifying role has…

Abstract

Purpose

E-commerce, with technology as its backbone, is an indispensable business trend associated with the wave of the Fourth Industrial Revolution. Recently, its intensifying role has also been noticed due to the COVID-19 pandemic. However, technology adoption to pursue an e-commerce model for agribusinessmen is not easy, while the COVID-19 has made them lose customers and led them to crises. In that context, the role of social capital (SC) has increasingly been paid significant attention, especially for micro and family businesses. Agribusinessmen can use SC to adopt technology, renew and reinforce their businesses in the global agricultural supply chain disruption context. However, there seems to be a dearth of an integral measurement of social capital (IMSC) to apply to the practice effectively. Recognizing this need, the current study aims to develop an integral scale for SC.

Design/methodology/approach

This research adopts a widely accepted and rigorous scale development process, a mixed-methods research design and essential statistical techniques to develop an IMSC.

Findings

The result develops an IMSC consisting of nine facets: linking-corporate, bonding-bridging, trust in political institutions, trust in public services, generalized social trust, norms and social sanctions, subjective safety, civicness and community cohesiveness. The scales of these facets are found to be unidimensional, reliable and valid.

Originality/value

This is the first study developing an IMSC to contribute to the extant literature. The study also provides managerial implications for practitioners to strengthen SC and adopt technology to improve their businesses.

Details

South Asian Journal of Business Studies, vol. 12 no. 3
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 15 January 2024

Komal Kamran, Akbar Azam and Mian Muhammad Atif

This study aims to investigate the situational factors that intensify the impact of leader bottom-line mentality (BLM) on employee pro-self-unethical behavior. In particular, the…

Abstract

Purpose

This study aims to investigate the situational factors that intensify the impact of leader bottom-line mentality (BLM) on employee pro-self-unethical behavior. In particular, the moderating role of contingent rewards and punishments is evaluated under the lens of situational strength theory.

Design/methodology/approach

Data were collected from 218 full-time employees working in the USA in a time-lagged study and analyzed using SPSS Process Macro.

Findings

Statistical analysis reveal contingent rewards and punishments significantly moderate the positive relationship between BLM and pro-self-unethical behavior.

Practical implications

This paper highlights the need for more balanced reward systems that incorporate moral conduct into work performance. It also emphasizes the role of robust accountability and monitoring systems in minimizing employees’ unethical behavior.

Originality/value

To the best of the authors’ knowledge, this is the first study to investigate the moderating role of contingent rewards and punishments on the relationship between leader BLM and subordinate pro-self-unethical behavior. Moreover, it provides significant empirical support to situational strength theory.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 11 April 2023

Arash Arianpoor, Mahdi Salehi and Fereshteh Daroudi

The purpose of this study is to assess the impact of nonfinancial sustainability reporting (NFSR) on enterprise value moderated by the management legitimate authority (MLA) for…

Abstract

Purpose

The purpose of this study is to assess the impact of nonfinancial sustainability reporting (NFSR) on enterprise value moderated by the management legitimate authority (MLA) for companies listed on the Tehran Stock Exchange.

Design/methodology/approach

To this aim, 190 firms were assessed during 2014–2019. This study used Arianpoor and Salehi’s indicators. The scoring method for NFSR, environmental sustainability reporting (ESR), social sustainability reporting (SSR) and governance sustainability reporting (GSR) was based on Zimon et al. Also, the CEO pay slice index was used to calculate the management’s legitimate authority. Tobin’s Q was used as a standard measure for the firm value, providing a suitable means of comparison.

Findings

The results revealed that NFSR affects enterprise value positively. In addition, ESR and SSR positively affect the enterprise value. However, GSR did not affect the enterprise value. MLA affects the relationship between NFSR/ESR/SSR/GSR and enterprise value, resulting from the effect of MLA on firm-related information quality and transparency.

Practical implications

Linking NFSR and management’s legitimate authority to firm value will enable managers to lead in helping firms enhance transparency and disclosure, improving their reporting standards and increasing the enterprise value. This, in turn, will ultimately result in better sustainability and governance practices.

Social implications

The results can help understand that analysts and investors somehow consider discussions related to the NFSR in decisions related to the company’s value, and positive market reactions to these practices’ disclosures can motivate firms to improve value and performance.

Originality/value

The majority of prior research in this field has focused on developing countries. An international perspective is critical, and this study helps draw a more contextualized picture of sustainability than before. In addition, the present research explored the management’s legitimate authority role, which is considered an innovative aspect.

Article
Publication date: 9 December 2022

Kiky Srirejeki and Pretisila Kartika Putri

This paper aims to investigate the factors affecting local government officials’ susceptibility to corrupt behavior among Indonesian local government officials.

Abstract

Purpose

This paper aims to investigate the factors affecting local government officials’ susceptibility to corrupt behavior among Indonesian local government officials.

Design/methodology/approach

This study uses a self-report survey and collected 449 questionnaires from 65 village government districts in Central Java province, Indonesia. This study uses a simple and partial correlation to measure the relationship between the susceptibility to corrupt behavior and the independent variables. Binary logistic regression was used to investigate which independent variables were best to explain the local government officials’ susceptibility to corrupt behavior.

Findings

The results show that the factors that best explain corrupt behavior’s susceptibility are the officials’ moral conviction to refrain from corrupt behavior, the perceived opportunity of corruption and the perceived benefit of engaging in such behavior. Further, this study finds an appealing crossover interaction between the perceived cost and social norms on corrupt behavior, such that when officials perceive the cost of engaging in corrupt behavior as low, they will rely more on social norms to decide whether to commit corrupt behavior.

Practical implications

This study provides actionable information for policy formulation. In particular, this study indicates that improvement of internal control can deter corrupt behavior. In addition, the findings of this study also suggest that changing the way we convey the message about corruption might be a promising intervention to mitigate corrupt behavior among government officials. More specifically, a more persuasive-positive-tone message that emphasizes the benefit of not engaging in corrupt behavior or that most people are against corruption can deter corrupt behavior.

Originality/value

The present study provides empirical evidence on the determinants of local government officials’ corrupt behavior from Indonesia’s perspective, which is currently limited.

Details

Journal of Financial Crime, vol. 30 no. 6
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 5 May 2023

Prianto Budi Saptono and Ismail Khozen

Even as governments worldwide take extraordinary measures and spend unprecedented amounts of their state budgets to combat COVID-19, tax compliance remains challenging. Therefore…

Abstract

Purpose

Even as governments worldwide take extraordinary measures and spend unprecedented amounts of their state budgets to combat COVID-19, tax compliance remains challenging. Therefore, this study employs previously identified predictors to investigate the factors that persuade individual taxpayers to comply with the law.

Design/methodology/approach

Individual taxpayers in Indonesia (N = 699) who had experienced COVID-19-related benefits were asked to assess the provided evaluation regarding the tax compliance intention and its determinants. The bootstrapping analysis was employed using smart partial least squares (SmartPLS) to test the hypotheses.

Findings

The results suggest that the perceived fiscal exchange, tax morality, tax fairness, tax complexity and the power of authority are significant determinants of tax compliance intention. This study also supports the indirect effects of numerous factors on tax compliance intention through the perceived fiscal exchange and tax morality. In practice, reminding taxpayers of how tax payments fund public services, improving taxpayer morale, increasing the perceived fairness of the tax system, streamlining the tax code and managing the effectiveness of tax administration could all lead to a greater intention to comply with the law.

Originality/value

In addition to highlighting the dynamics of tax compliance amid the unprecedented pandemic crisis, our findings also provide insight into the importance of perceived fiscal exchange and tax morality for achieving and sustaining planned behavior to comply with tax rules.

Details

International Journal of Sociology and Social Policy, vol. 43 no. 11/12
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 27 April 2022

Fahmida Akhter, Mohammad Rokibul Hossain, Hamzah Elrehail, Shafique Ur Rehman and Bashar Almansour

The study seeks to evaluate the extent and quality of environmental reporting following a longitudinal analysis and covering a wide spectrum of industries in a single frame. The…

5593

Abstract

Purpose

The study seeks to evaluate the extent and quality of environmental reporting following a longitudinal analysis and covering a wide spectrum of industries in a single frame. The study also attempts to identify the set of most favored environmental reporting items by firms and items which are least disclosed. Furthermore, the study attempts to test whether certain corporate attributes such as firm size, age of the firm, leverage ratio, profitability, presence of independent directors in the board and gender diversity have any influencing power over environmental disclosure practices. The whole study has been carried out from legitimacy theory setting.

Design/methodology/approach

The study follows longitudinal analysis to identify the extent and quality of environmental disclosures. A self-constructed checklist of 12 environmental reporting items has been developed analyzing the annual report and content analysis method is followed to measure the extent and quality of environmental disclosures and identify environmental reporting items which are mostly disclosed and which are least disclosed. The study further uses panel data regression analysis to investigate whether certain corporate attributes have any impact on environmental disclosures using multiple linear regression. Total of 345 annual reports of listed financial and nonfinancial institutions have been observed in this study ranging from 2015 to 2019.

Findings

The key finding suggests that strict enforcement of Green Banking Rules 2011 fosters country’s commercial banks to invest more to protect the environment and commercial banks encourage nonfinancial institutions for environmental performance and related disclosures through finance. Therefore, almost 50% of sample firms disclose their environmental performance through reporting in either narrative, quantitative or monetary format which was only 2.23% in the last decade. Findings also reveal that tree plantation is the most reported environment disclosure followed by investment in renewable energy and green infrastructural projects and the least reported items are fund allocation for climatic changes and carbon management policy. Further analysis shows that firm size and leverage ratio both have positive impact on environmental reporting.

Research limitations/implications

An in-depth analysis may be conducted to identify why certain environmental items are least disclosed such as fund allotment for climatic changes, carbon management policy, etc. and how corporations may earn social appreciation and motivation by investing in those least preferred items in legitimacy theory setting. Future research may also take into consideration other corporate attributes which are not considered in the study.

Originality/value

The study conducted an in-depth analysis to understand the most favored form of environmental disclosures (narrative/quantitative/monetary) and their extent after incorporation of regulatory guidelines, which is the first of its kind in the research of environmental disclosures. The study indeed contributes to the documentation of environmental reporting in the context of a developing country where there is a lack of longitudinal analysis from the lens of legitimacy theory. Moreover, a wide spectrum of industries has been taken into consideration which facilitates the generalized findings on the environmental disclosure practices of corporations in Bangladesh.

研究目的

本研究擬評估公司報告環境方面的程度和質量, 以及對就環境報告披露而言、最受青睞和最不受歡迎的項目加以處理。研究亦擬測試企業屬性對實踐環境信息披露的影響。

研究方法

研究使用內容分析法、去測量環境信息披露的程度和質量。研究使用多元回歸分析、去探討企業屬性對環境信息披露的影響。研究涵蓋孟加拉國上市公司共345個年度報告, 涵蓋的年期為2015年至 2019年。

研究結果

研究結果似乎顯示綠色金融規則 - 2011 、成功鼓勵機構為保護環境而投放更多資源; 機構最樂於匯報的項目為植樹, 而披露最少的則為氣候變化和碳管理政策。進一步的研究分析顯示, 公司的規模和杠杆比率均會對環境匯報帶來正面的影響。

研究的原創性/新穎性

本研究豐富了關於發展中國家環境匯報的官方文件記錄, 而在這類國家, 透過合法化理論而進行的縱貫性分析研究頗為缺乏。本研究以深度分析法、去瞭解環境信息披露方面最受青睞的信息披露方式 (故事形式的敘述/定量形式/金融形式), 也去瞭解納入強制的規管指引後環境信息披露的程度; 就此而言, 本研究為這類環境信息披露研究的首個研究。

Details

European Journal of Management and Business Economics, vol. 32 no. 3
Type: Research Article
ISSN: 2444-8451

Keywords

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