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The purpose of this study is to examine the effect of audit committee (AC) tenure on corporate governance, a topic that has been long debated. Social capital theory explains how directors’ effectiveness varies through tenure. Consistent with this theory, this paper argues that AC tenure has an inverted U-shaped relationship with AC governance.

This paper estimates a quadratic function that regresses constructs for AC governance on the average AC, the AC chair, and nonchair tenure, and their respective square terms. The constructs for AC governance include financial reporting quality measures and perceived auditor independence measures.

This paper finds that average AC, AC chair, and nonchair tenure have inverted U-shaped relationships with financial reporting quality, consistent with social capital theory. This paper also finds similar associations when examining perceived auditor independence. The results are generally consistent with AC directors accumulating knowledge and social capital, which improves AC governance to an optimal level, following which entrenchment and familiarity occur and AC governance declines.

To the best of the authors’ knowledge, this is the first study in AC governance literature to show a nonlinear relationship between AC tenure and AC governance. This paper extends Huang and Hilary (2018) by demonstrating that a nonlinear effect is also present in the AC, a key board committee responsible for monitoring financial reporting quality and appointing auditors and approving their services. This paper further documents that the AC subsumes the effect of the overall board in some areas of AC oversight, and reconciles the inconclusive findings of prior research by showing a nonlinear relationship between AC tenure and AC governance.

The crypto market is growing quickly, marked by a lack of fundamentals, and the risks are not yet fully comprehended by participants. Our goal is to investigate overconfidence in this market and analyze the role that risk propensity and certain demographics play.

We conducted a survey in Brazil and Portugal, leveraging an online questionnaire disseminated via social media channels to engage a diverse adult population. We collected a total of 826 responses, addressing ethical considerations throughout the process. The data analysis was conducted using SPSS statistical software and logit regression modeling.

Our study reveals that overconfidence is a notable bias that distinguishes individuals who invest in cryptocurrencies from those who do not. Although overconfidence and risk propensity are closely linked, they originate from distinct personal characteristics. Furthermore, our findings indicate that age and market experience positively correlate with overconfidence and negatively correlate with risk propensity. Financial knowledge, interestingly, did not prove to be a significant factor for cryptocurrency investment.

Our research augments the existing literature on overconfidence, delving into this phenomenon in a new subdomain, and in doing so, it enriches our comprehension of the unique and still relatively under-researched cryptomarket. Moreover, we illuminate individual factors that sway the decision to invest in cryptocurrencies and should be considered by market participants.

• (1)

  Pioneering work examining the presence of overconfidence bias among crypto-investors, using a robust data set collected from a binational survey.

• (2)

  Verifies the relations among overconfidence, risk propensity, and demographics.

• (3)

  Examines the influence of age and experience on investment decisions, revealing a positive relationship with overconfidence and a negative correlation with risk propensity.

• (4)

  Logistic regression is used to determine the combined effect of overconfidence, risk propensity, and demographics on the decision to invest in cryptocurrencies.

Pioneering work examining the presence of overconfidence bias among crypto-investors, using a robust data set collected from a binational survey.

Verifies the relations among overconfidence, risk propensity, and demographics.

Examines the influence of age and experience on investment decisions, revealing a positive relationship with overconfidence and a negative correlation with risk propensity.

Logistic regression is used to determine the combined effect of overconfidence, risk propensity, and demographics on the decision to invest in cryptocurrencies.

This study analyzes the performance implications of adopting blockchain to support supply chain business processes. The technology holds as many promises as implementation challenges, so interest in its impact on operational performance has grown steadily over the last few years.

Drawing on transaction cost economics and the contingency theory, we built a set of hypotheses. These were tested through a long-term event study and an ordinary least squares regression involving 130 adopters listed in North America.

Compared with the control sample, adopters displayed significant abnormal performance in terms of labor productivity, operating cycle and profitability, whereas sales appeared unaffected. Firms in regulated settings and closer to the end customer showed more positive effects. Neither industry-level competition nor the early involvement of a project partner emerged as relevant contextual factors.

This research presents the first extensive analysis of operational performance based on objective measures. In contrast to previous studies and theoretical predictions, the results indicate that blockchain adoption is not associated with sales improvement. This can be explained considering that secure data storage and sharing do not guarantee the factual credibility of recorded data, which needs to be proved to customers in alternative ways. Conversely, improvements in other operational performance dimensions confirm that blockchain can support inter-organizational transactions more efficiently. The results are relevant in times when, following hype, there are signs of disengagement with the technology.

The study aims to investigate the persistence of seasonal anomalies during religious holidays in emerging markets.

The authors select the Bombay Stock Exchange and National Stock Exchange stock returns from January 1990 to December 2022. The GARCH family models were adopted to examine the mean-variance returns associated with symmetric and asymmetric effects. The ARIMAX model is used to investigate the exogenous order during the pre-mandated and post-mandated trading holidays.

The results show that the persistence of returns and volatility during religious holidays significantly when subjected to specific religious holidays. The authors also found that volatility during religious festivals dipped during the pre-holiday and gradually increased after the events. The findings suggest that religious holiday anomalies exhibit a trivial significant effect on stock market returns and this effect is waning.

The findings provide investors and market regulators with a better understanding of market anomalies related to religious practices. During these periods, investors may experience substantial fluctuations in their portfolios, potentially leading to significant losses or payoffs. Investors can sustain substantial losses or payoffs and market manipulation by adjusting their strategies around religious holidays to account for potential volatility, albeit temporarily.

This study contributes to behavioural finance literature that suggests that beliefs and cultural aspects determine a country’s stock market inefficiency. To the best of the authors’ knowledge, no previous study has comprehensively examined threshold religious holidays across diverse religions in Indian market using long-memory data.

The purpose of this study is to examine the effect of terrorist attacks on tax avoidance. Further, the authors identify the possible channel leading to our main result and examine the role of social pressure.

Data pertaining to terrorist attacks within the USA are procured from the Global Terrorism Database. The final sample consists of 45,524 firm-year observations from 1993 to 2017. The methodology uses ordinary least squares regressions.

The authors find that firms located in close proximity to terrorist attacks (i.e. impact firms) significantly decrease their tax avoidance practices after the attacks. The authors further find that these impact firms are willing to pay more taxes post attack when their headquarters are located in higher social capital regions.

Studies have mainly focused on the macroeconomic effects of terrorism, and only recently have researchers shifted their focus to firm-level impacts. The authors provide strong evidence that extends the second line of the literature by exploring corporate tax activities attributed to terrorist events.

This study aims to explore the association of board quality and firm innovation on climate risk disclosure in the context of large listed companies in India. It builds upon the framework developed by the stakeholder theory and the legitimacy theory to examine the association between the key variables of the study.

The climate risk disclosure is measured through content analysis of the annual reports of the respective companies. A panel data framework analyzes the relationship between board quality, firm innovation and climate risk disclosure.

The findings indicate a gradual increase in climate risk disclosure throughout the sample period. This study also finds that certain board characteristics and investment in innovation are significant determinants of a firm’s approach toward identifying and mitigating risks arising from rapid climate change. This study has implications for practitioners, policymakers and academicians who strive toward creating resilient and sustainable organizations.

This study is relevant for practitioners as it identifies an increasing trend in the identification and reporting of climate risk disclosure in the sample firms. This would be beneficial for managers and other stakeholders of the organizations who would be interested in the mitigation of climate risk. The organizational leadership may identify key parameters of their firms, which helps them prepare against the adverse impact of climate change on business.

To the best of the authors’ knowledge, this is the first study to evaluate climate risk disclosure practices of large listed companies in India. This study highlights how large Indian companies are developing an overall approach for identifying and mitigating risks associated with rapid climate change, which has not been conducted for any economy.

Social media platforms are highly visible platforms, so politicians try to maximize their benefits from their use, especially during election campaigns. On the other side, people express their views and sentiments toward politicians and political issues on social media, thus enabling them to observe their online political behavior. Therefore, this study aims to investigate user reactions on social media during the 2016 US presidential campaign to decide which candidate invoked stronger emotions on social media.

For testing the proposed hypotheses regarding emotional reactions to social media content during the 2016 presidential campaign, regression analysis was used to analyze a data set that consists of Trump’s 996 posts and Clinton’s 1,253 posts on Facebook. The proposed regression models are based on viral (likes, shares, comments) and emotional Facebook reactions (Angry, Haha, Sad, Surprise, Wow) as well as Russell’s valence, arousal, dominance (VAD) circumplex model for valence, arousal and dominance.

The results of regression analysis indicate how Facebook users felt about both presidential candidates. For Clinton’s page, both positive and negative content are equally liked, while Trump’s followers prefer funny and positive emotions. For both candidates, positive and negative content influences the number of comments. Trump’s followers mostly share positive content and the content that makes them angry, while Clinton’s followers share any content that does not make them angry. Based on VAD analysis, less dominant content, with high arousal and more positive emotions, is more liked on Trump’s page, where valence is a significant predictor for commenting and sharing. More positive content is more liked on Clinton’s page, where both positive and negative emotions with low arousal are correlated to commenting and sharing of posts.

Building on an empirical data set from Facebook, this study shows how differently the presidential candidates communicated on social media during the 2016 election campaign. According to the findings, Trump used a hard campaign strategy, while Clinton used a soft strategy.

Prior studies on blockholders involvement in earnings management behavior have given rise to alignment and entrenchment perspectives. The alignment perspective states that blockholders are an effective control to reduce earnings management behavior. In contrast, the entrenchment perspective states that blockholders act opportunistically and encourage earnings management behavior. Firms in Indonesia generally have concentrated shares, which is probably in line with the entrenchment perspective. Therefore, this study aims to examine the influence of blockholders on earnings management and the role of religiosity as a moderator of the influence of blockholders on earnings management.

This study uses multiple linear and multi-group regression to analyze 2,238 firm-year observations for firms listed on the Indonesia Stock Exchange period 2015–2021. Multi-group regression is used to test the effect of religiosity on the relationship between blockholders and earnings management.

The finding of this study is that religiosity can mitigate the involvement of blockholders in earnings management, where blockholders positively influence earnings management in non-religious but not religious firms. This finding is expected to solve the agency problem between management with shareholders and the majority with minority shareholders.

Firms should apply religious values in their business activities to prevent or minimize profit manipulation. Another implication is that investors can glance at Sharia stocks when investing because they have lower earnings management or higher-quality financial reports.

To the best of the authors’ knowledge, this study may be the first to investigate the role of religiosity by comparing the effect of blockholders on earnings management between religious and non-religious firms. This study proves that religiosity is a new alternative to mitigating blockholders involvement in earning management and agency problems.

The purpose of this study is to provide insight into how innovation that outperforms peers (IOP) affects corporate financial misconduct. To this end, on the basis of fraud triangle theory, we develop a theoretical relationship between the two and argue that IOP has an inhibitory effect on corporate financial misconduct.

On the basis of empirical data from Chinese listed companies from 2007–2023, we conduct a series of tests to examine whether, how and under what circumstances IOP affects corporate financial misconduct.

IOP does inhibit corporate financial misconduct. This result is validated in a series of sensitivity tests. Further analysis shows that IOP inhibits corporate financial misconduct by reducing executives' incentives to engage in fraud, reducing the opportunity under which executives are involved in fraud, and inhibiting executives' tendency to rationalize fraud. In addition, the results of cross-sectional tests show that the negative impact of IOP on corporate financial misconduct is more significant when the firm is a high-tech enterprise, with a greater balance of power among shareholders, lower supplier concentration and greater consumer confidence.

First, by examining the impact of IOP and corporate financial misconduct, we enrich and extend the literature on the antecedents of corporate financial misconduct. Second, by theoretically and empirically validating the relationship between IOP and corporate financial misconduct, we extend the literature related to the economic consequences of IOP. Finally, we extend fraud triangle theory to a wider range of applications and provide new perspectives and strategies for further research and intervention in corporate financial misconduct.