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1 – 10 of 18Ahmed Abdel-Meguid, Mostafa Abuzeid, Moataz El-Helaly and Nermeen Shehata
This paper aims to examine whether female representation on boards is significantly associated with audit fees paid by top Egyptian listed companies.
Abstract
Purpose
This paper aims to examine whether female representation on boards is significantly associated with audit fees paid by top Egyptian listed companies.
Design/methodology/approach
The authors collect data on audit fees, board of directors' characteristics and financial data for the top 100 companies listed on the Egyptian Exchange (EGX100) for a period of six years. The authors employ an ordinary least squares regression model to capture the relationship between board diversity (i.e. the proportion of female board directors) and the natural logarithm of audit fees while controlling for firm and industry fixed effects as well as other known firm characteristics.
Findings
The authors find that audit fees are significantly associated with the proportion of females serving on firms' boards of directors. The findings suggest a complementary relationship between females on boards, as a quality-enhancing board attribute; and audit fees, as a proxy for audit effort and audit quality.
Research limitations/implications
Limitations of this study arise first from the relatively small sample size, and second from the fact that inferences may be specific to the Egyptian context and similar markets.
Practical implications
The results have important implications for Egyptian policy makers and regulators in terms of board composition.
Social implications
This study provides empirical evidence that further enforces the business case for women's empowerment and the impact of this on the effectiveness of corporate governance.
Originality/value
To the best of the authors’ knowledge, this is the first archival study to examine the association between female board representation and audit fees in Egypt.
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Nurshahirah Abd Majid, Mohd Mohid Rahmat and Kamran Ahmed
This study aims to examine the ability of independent directors to discipline related-party transactions (RPTs) among listed companies in Malaysia. Firms typically appoint…
Abstract
Purpose
This study aims to examine the ability of independent directors to discipline related-party transactions (RPTs) among listed companies in Malaysia. Firms typically appoint independent directors individually, not as a group. However, board members are commonly viewed collectively as a group, and evidence of the abilities of individual directors is scarce.
Design/methodology/approach
The attributes of individual independent directors include accounting literacy, length of service, audit committee membership and active participation in board and audit committee meetings. The unit of analysis is the individual independent director. The final sample consists of 1,552 observations in 2017, and RPTs are categorized as either efficient or conflicting.
Findings
The study finds that the tenure of individual independent directors and active participation in board meetings affect the firm’s engagement in RPTs. However, the financial literacy, audit committee membership and attendance of independent directors at audit committee meetings do not affect the firm’s engagement in RPTs, either efficient or conflicting. Overall, this result offers limited support for the upper-echelon theory concerning the attributes of individual independent directors and RPTs.
Research limitations/implications
This study uses cross-sectional observations for 2017, which predates the COVID-19 pandemic. Thus, this study ignores the impact of restrictions in community mobility during the pandemic on the independent director’s ability to monitor the corporation. This circumstance may have implications for practice and merit further research.
Practical implications
The findings provide information for board nominating committees, regulators and policymakers that the capability of individual independent directors to fulfill their responsibilities is limited. The firm’s nominating committee must be very selective in nominating and appointing independent directors with appropriate competencies. Investors should choose companies that have reappointed the same independent directors for an extended period, as they may benefit from the experience in protecting investors’ interests.
Originality/value
This paper contributes novel evidence to upper-echelon theory literature on the association between independent directors and RPT types from the perspective of individual independent directors.
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This study aims to investigate the relationship between related party transactions (RPTs), specifically sales and purchases, and financial distress. It also explores the…
Abstract
Purpose
This study aims to investigate the relationship between related party transactions (RPTs), specifically sales and purchases, and financial distress. It also explores the moderating role of various corporate governance mechanisms and audit-firm characteristics in this relationship.
Design/methodology/approach
This study spans the period before and during the COVID-19 pandemic and uses a logistic regression model focusing on an eight-year noncylindrical panel data set, covering a sample of Omani listed companies from 2014 to 2021.
Findings
The empirical findings reveal a contrasting relationship between RPT sales and financial distress: a significant negative relationship in the postpandemic period, and a positive relationship in the prepandemic period. Conversely, RPT purchases exhibit a consistently significant positive relationship across all periods. The presence of a Big Four audit-firm and audit delay are notable moderating variables associated with audit-firm attributes. Additionally, the board’s review of RPT transactions, size, meetings and independence are significant moderator variables pertaining to corporate governance.
Research limitations/implications
This study provides empirical evidence to inform regulators of the efficiency and opportunistic aspects of RPTs in relation to financial distress. The study’s findings offer valuable guidance to managers by suggesting ways to reinforce corporate governance practices and strengthen audit mechanisms to counteract the negative consequences of RPTs.
Originality/value
To the best of the author’s knowledge, this study is the first to explore the direct relationship between both RPT sales and purchases and financial distress while also examining the moderating effect of corporate governance and audit attributes. This comprehensive approach distinguishes itself from its unique contributions to the field.
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Joseph Akadeagre Agana, Stephen Zamore and Daniel Domeher
This paper aims to examine the theoretical underpinnings of international financial reporting standards (IFRS)-related studies and offers directions for theoretical and empirical…
Abstract
Purpose
This paper aims to examine the theoretical underpinnings of international financial reporting standards (IFRS)-related studies and offers directions for theoretical and empirical research. Specifically, this study examines the main theories in IFRS adoption research (i.e. adoption, compliance and effects).
Design/methodology/approach
The sample contains 67 empirical papers that have used theories and was collected from Web of Science database. This study uses a systematic review technique.
Findings
Generally, the review shows the prevalent and pervasive use of institutional theories of isomorphism across all the three areas of IFRS adoption. Particularly, regarding IFRS adoption stream, this study finds the institutional theory as a dominant theory used to explain IFRS diffusion around the globe. For IFRS compliance, this study finds that the agency and the capital need theories are widely used. For IFRS adoption effects stream, this study finds a few studies using the contingency and neo-institutional theories. Overall, the review provides theoretical lens for IFRS adoption, IFRS compliance and IFRS adoption effects.
Originality/value
Given the lack of a well-defined set of theories in the domain of accounting, the findings provide further guidance on theory building within the field. Further, accounting regulators, academics and practitioners may benefit from the findings when explaining various changes in the world of accounting.
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Ari Budi Kristanto and June Cao
This systematic literature review presents the evolution of accounting-related research in the Indonesian context. We examine 55 academic articles from the initial 296 records of…
Abstract
Purpose
This systematic literature review presents the evolution of accounting-related research in the Indonesian context. We examine 55 academic articles from the initial 296 records of accounting and finance research in the Q1 Scopus-indexed journals from 1995 to 2022. This study sheds light on Indonesia’s main research streams, unique settings and urgent future research agenda.
Design/methodology/approach
This study adopts a systematic approach for a comprehensive literature review. We select articles according to a series of criteria and compile the metadata for the bibliographic mapping.
Findings
Our bibliometric analysis suggests five main research streams, namely (1) political connection, (2) capital market, (3) audit and accountability, (4) firm policy and (5) banking. We identify the following distinctive country settings, which are well discussed in extant literature: political connection, two-tier board system, weak accounting profession, information opacity and cultural impact on accounting. We outline prospective agendas to examine the institutional mechanisms’ role in addressing major environmental challenges through accountability.
Originality/value
This study offers unique contributions to the literature by comprehensively reviewing accounting-related research in Indonesia. Despite Indonesia’s economic and environmental importance, it has received limited attention from scholars. Using dynamic topic analysis, we highlight the need to examine the role of informal institutions, such as political connections and culture and formal institutional mechanisms, such as corporate governance and environmental disclosure.
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Abhishek N., Neethu Suraj, Habeeb Ur Rahiman, Nishad Nawaz, Rashmi Kodikal, Abhinandan Kulal and Keerthan Raj
The study aims to analyse the role of digitisation in accounting in enhancing the overall effectiveness of accounting functions. To achieve this, the study provides empirical…
Abstract
Purpose
The study aims to analyse the role of digitisation in accounting in enhancing the overall effectiveness of accounting functions. To achieve this, the study provides empirical evidence from the stakeholder’s perspective of digitisation of accounting, auditing, reporting and regulatory compliance procedures.
Design/methodology/approach
The study has applied a quantitative approach to identify the thoughts of auditors, accountants and academicians on the impact of digitalised accounting applications on accounting functions. The data was collected by administering an empirical study and a sample of 482 professionals from the accounting, auditing and academic sectors. To analyse and interpret data descriptive statistics, structured equation modelling and mediation analysis has been used.
Findings
The finding of the study signifies the relevance of digitalised accounting applications in accounting functions and reveals that there is a significant impact of digitalisation on accounting, auditing, reporting and regulatory compliance aspects of accounting functions. The outcome of the study explores that a digitalised accounting system reduces possible errors and improves the accuracy and transparency of the system.
Research limitations/implications
The study highlighted the importance of developing new methods and techniques that can be used in practice. This indirectly advocates the inclusion of such concepts in accounting curricula to emphasise the need to understand the challenges and opportunities created by digitisation. Furthermore, the study will become a motivation to scholars who intend to explore different areas through which new technologies can be adopted to transform traditional accounting systems.
Practical implications
The contributions of the current study have implications that the adoption of digitised accounting enhances economic efficiency through a reduction in accounting costs, and enhanced accuracy that leads to the elimination of penalties and litigations for non-compliance with regulatory authorities. This indirectly impacts positively on the financial health of the business organisations and economies at large. This implication becomes greater evidential support to the organisations which are yet to plan the adoption and implementation of digital tools in their organisation for accounting functions.
Originality/value
Digitalisation is a relevant part of the accounting function to improve efficiency and accuracy. Since accounting and auditing practitioners struggle to control the accuracy and efficiency of transactions. Furthermore, the outcome of the study assists organisations in gaining real-time access to financial data, transforms workflows and empowers management to make timely informed sound decisions, optimise resource allocation, efficient regulatory compliance and so on.
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Hossa F. Al-Shareef, Ahmed M. Yousif, Rafaat Eleisawy, Ammar M. Mahmoud and Hamada Abdelwahab
This paper aims to prepare alkyd protective paint by using modified alkyd with 3,6-dichloro benzo[b]thiophene-2-carbonyl glutamic acid (DCBTGA) as a source of dicarboxylic acid…
Abstract
Purpose
This paper aims to prepare alkyd protective paint by using modified alkyd with 3,6-dichloro benzo[b]thiophene-2-carbonyl glutamic acid (DCBTGA) as a source of dicarboxylic acid and evaluating their anticorrosive properties compared with those of unmodified alkyd coatings for steel protection.
Design/methodology/approach
Short, medium and long oil alkyds, which represented as (0, 10, 20 and 30% excess-OH) according to the resin constants (Patton, 1962), were prepared through a condensation polymerization reaction via a solvent process in a one-step reaction. The modification of alkyd was carried out by using DCBTGA as a source of dicarboxylic acid. The prepared modified alkyd was confirmed by IR and NMR spectral analysis. The physicochemical, mechanical and anticorrosion performance properties of the considered modified coating formulations against unmodified blank coating were studied to confirm their application efficiency.
Findings
The best results in terms of physicochemical, mechanical and anticorrosion performance properties were found according to the following of this order activity: 30 replacements of the modifier (DCBTGA) for each hydroxyl continent were 30% Ex-OH > 20% Ex-OH > 10% Ex-OH > 0% Ex-OH, compared with that formulation containing unmodified alkyd, especially with increasing the modifier percent.
Originality/value
The prepared DCBTGA-modified resins can be used for different applications based on the type of alkyd and application.
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Shamita Garg and Sushil
Globalisation has benefitted both developed and emerging markets. However, few recent studies have pointed out that globalisation has failed to deliver promising results. This…
Abstract
Purpose
Globalisation has benefitted both developed and emerging markets. However, few recent studies have pointed out that globalisation has failed to deliver promising results. This research aims to examine the impact of globalisation on different performance aspects of an emerging market like India.
Design/methodology/approach
We examined the impact of globalisation on different performance aspects of a country at the national, industry and firm levels. We have defined the performance dimensions for country-level analysis as GDP and unemployment. We have defined the performance dimensions as profitability for industry and firm-level analysis. The effects of globalisation on the critical economic performance aspects in the Indian setting are covered in the first part. In the second part, we used the panel regression approach to evaluate the impact of overseas revenue on the employability and profitability of select Indian auto firms. We have chosen the auto industry for industry analysis because of its extensive integration with other production fields. In the third section, we discussed how globalisation has improved the profitability of two Indian car companies.
Findings
This study finds that globalisation has benefitted nearly every aspect of the Indian economy's performance. India has gained from national, industry and firm globalisation.
Originality/value
This study is the first of its kind to examine the impact of globalisation on a country's performance across different levels, including national, industry and firm levels. We have studied the Indian context to develop a theory that globalisation still benefits emerging markets.
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Isaac Luke Agonbire Atugeba and Emmanuel Acquah-Sam
This study aims to examine the effect of political conditions on the relationship between corporate governance and firm performance in two sub-Saharan African (SSA) countries…
Abstract
Purpose
This study aims to examine the effect of political conditions on the relationship between corporate governance and firm performance in two sub-Saharan African (SSA) countries, Ghana and Kenya.
Design/methodology/approach
This study used a panel data methodology, examining data from a sample of 72 companies (Ghana: 25 and Kenya: 47) from 2018 to 2022. This study used panel quantile regression and the Huber M-estimation robust least squares regression methods.
Findings
The research reported that larger boards, diversity and ownership concentration do not affect business performance while board independence improves corporate success in both countries. The findings about chief executive officer (CEO) duality were mixed. In Ghana, CEO duality has a positive effect on firm performance, but in Kenya, the study finds that CEO duality hurts firms’ performance. The results found that higher levels of institutional ownership decreased firm performance in both countries. The research found that Ghana’s political environment had a greater impact on corporate governance and business performance nexus than Kenya’s.
Research limitations/implications
The research is limited to Ghana and Kenya. This study emphasises the necessity for governments in both countries to maintain a stable political environment, implement policies that encourage economic and policy continuity and reduce political uncertainty to improve business conditions.
Practical implications
This study emphasises the necessity for governments in both countries to maintain a stable political environment, implement policies that encourage economic and policy continuity, and reduce political uncertainty to improve business conditions.
Originality/value
To the best of the authors’ knowledge, this study is unique because it is the first in SSA to address a research gap by investigating a comparative analysis of the relationship between corporate governance, political environments and firm performance in two distinct countries with different political situations.
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Malak Hamade, Khaled Hussainey and Khaldoon Albitar
This systematic review aims to comprehensively explore the existing literature on the use of corporate communication within the realm of social media.
Abstract
Purpose
This systematic review aims to comprehensively explore the existing literature on the use of corporate communication within the realm of social media.
Design/methodology/approach
A total of 136 peer-reviewed journal articles are explored and analysed using both performance and bibliometric analysis.
Findings
This review identifies five main findings: (1) trends in corporate social media research that highlight the growth trajectory of research on social media use for corporate disclosure, (2) geographical coverage of studies indicating the concentration of research in certain regions, such as the USA, followed by China and the UK, with notable gaps in others, such as developing countries, (3) theoretical frameworks employed demonstrate that various theoretical frameworks are utilized, although a significant portion of the studies do not specify any theoretical underpinning, (4) social media platforms studied, confirming Twitter to be the most studied channel followed by Facebook and (5) thematic analysis of articles on disclosure type that categorized the articles using bibliometric analysis into five themes of disclosure: general disclosure, corporate social responsibility-related information, financial information, CEO announcements and strategic news communication. A subsequent cross-theme analysis classifies disclosure determinants and consequences of corporate social media usage.
Originality/value
Through a comprehensive and systematic analysis of existing research, this review offers novel insights into the current state of corporate communication on social media. It consolidates current knowledge, highlights under-explored areas in the existing literature and proposes new directions and potential avenues for future research.
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