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Available. Open Access. Open Access
Article
Publication date: 12 November 2024

Bill B. Francis, Raffi E. García and Jyothsna G. Harithsa

This paper aims to examine how bank stress tests affect bank tax planning.

249

Abstract

Purpose

This paper aims to examine how bank stress tests affect bank tax planning.

Design/methodology/approach

The study uses US bank stress test bank size thresholds and a regression discontinuity design to investigate the effect of the Dodd-Frank Act and the instituted bank stress tests on bank tax planning. We use different measures of tax planning, including bank-specific measures and measures of tax avoidance, tax aggressiveness, and effective tax planning from recent literature. Our regression discontinuity and difference-in-differences regression analyses include bank and year fixed-effects and lagged bank characteristics to control for potential endogeneity.

Findings

This study finds that stress tests have the unintended consequences of intensifying tax planning and increasing tax avoidance. Stress-test banks increase tax avoidance by accelerating charge-offs, net interest, and non-interest expenses. However, this increase in tax planning is not optimally maximized, leading to lower effective tax planning compared to non-stress-test banks. Banks with a substantial increase in tax avoidance under the Dodd–Frank Act tend to increase their risk, investing in high-risk-weight assets and lending in riskier loan categories. These findings are consistent with tax minimization conditions under added regulatory attention and policy uncertainty.

Originality/value

Literature on bank tax planning is limited. Most tax avoidance literature excludes financial institutions such as bank holding companies mainly due to differences in business practices and regulatory frameworks. This study is the first to investigate tax planning behavior among US banks. The current study thus extends the research field by examining the effect of bank transparency regulations, such as bank stress tests, on bank tax planning activities. Our findings have a direct bank policy implication. They show that stress testing has the unintended consequences of increasing tax planning activities and consequently increasing risk-taking on banks with high tax avoidance, which goes against the goals of stress testing regulations.

Details

China Accounting and Finance Review, vol. 27 no. 1
Type: Research Article
ISSN: 1029-807X

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Book part
Publication date: 4 October 2024

Dianna Preece

This chapter explores the vast array of fintech opportunities. The industry commanded approximately $250 billion in revenue in 2022, which is predicted to grow to $1.5 trillion by…

Abstract

This chapter explores the vast array of fintech opportunities. The industry commanded approximately $250 billion in revenue in 2022, which is predicted to grow to $1.5 trillion by 2030. Fintech firms are involved in everything from digital currencies to payment systems, lending platforms, and embedded finance. Firms use artificial intelligence (AI) and machine learning (ML) to create personalized financial products. One of the most important benefits to society is that fintech makes finance more inclusive to the traditionally underserved. However, fintech has its challenges. Regulations evolve, making compliance a challenge. Also, the industry is vulnerable to cyberattacks and money laundering. Companies hold large amounts of sensitive data, making them obvious targets for bad actors. As with many industries, governance, compliance, and transparency are essential for fintechs as they transform the financial services landscape.

Details

The Emerald Handbook of Fintech
Type: Book
ISBN: 978-1-83753-609-2

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Article
Publication date: 28 June 2024

Afreen Khanam and Sheema Tarab

Premised on the conservation of resources (COR) theory, our study attempts to investigate if emotional exhaustion (EE) is a mediator in linking customer incivility (CI) and…

273

Abstract

Purpose

Premised on the conservation of resources (COR) theory, our study attempts to investigate if emotional exhaustion (EE) is a mediator in linking customer incivility (CI) and employee job performance (JP). Additionally, it examines the moderating role of PsyCap in customer incivility and job performance relationships. Furthermore, we explore whether PsyCap moderates the mediating effect of emotional exhaustion in customer incivility and job performance relationships.

Design/methodology/approach

Using a multi-phase survey, data was gathered from 469 frontline employees working in diverse service sectors in India. All analyses were done with SPSS 25 and AMOS 23 to determine the study's findings.

Findings

The study substantiates a partial mediation effect, revealing that customer incivility intensifies emotional exhaustion among FLEs, resulting in decreased job performance. In addition, the interaction of PsyCap seemed to weaken the relationship between CI and employee JP. However, PsyCap does not mitigate the indirect association of CI and employee JP via emotional exhaustion. To our surprise, we observed a slight amplification in the mediating impact of emotional EE at elevated levels of PsyCap.

Practical implications

The study findings suggest that training employees and cultivating their PsyCap could be a strategic solution for effectively managing and mitigating the adverse effects of customer incivility in the workplace.

Originality/value

Our study marks the first empirical exploration of PsyCap's moderating role between customer incivility and both job performance and emotional exhaustion linkage.

Details

Journal of Hospitality and Tourism Insights, vol. 8 no. 2
Type: Research Article
ISSN: 2514-9792

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Book part
Publication date: 9 September 2024

Reham ElMorally

Abstract

Details

Recovering Women's Voices: Islam, Citizenship, and Patriarchy in Egypt
Type: Book
ISBN: 978-1-83608-249-1

Available. Open Access. Open Access
Article
Publication date: 10 October 2024

V.P. Priyesh and Lukose P.J. Jijo

This study examines the earnings quality of private-subsidiary firms using a large sample data from India.

406

Abstract

Purpose

This study examines the earnings quality of private-subsidiary firms using a large sample data from India.

Design/methodology/approach

The impact of parent–subsidiary relationship on earnings quality is examined using two common proxies. Findings are robust to alternative research designs, including different earnings quality proxies, endogeneity and matching techniques.

Findings

The study finds that private firms that are subsidiaries of listed firms tend to have lesser (greater) earnings quality (manipulation). Further, the study reports that this relationship is more pronounced when the parent firm is relatively larger than the subsidiaries. The study finds no evidence that Big 4 affiliation of the parent company improves earnings quality among private subsidiaries; instead, it exacerbates earnings manipulation in some cases. Finally, the authors document that subsidiary firms use tax management, as proxied by book tax differences, to engage in income-increasing earnings manipulation.

Research limitations/implications

This study examines how affiliation with a listed entity as a subsidiary impacts the earnings quality of private companies. Future research could investigate the financial reporting practices of both private subsidiary firms and standalone private firms, comparing them in similar or differing regulatory environments across various countries.

Practical implications

The findings of this study will help investors, bankers, creditors and regulators to understand the financial reporting of private firms. The study calls for enhanced audit quality at the subsidiary level by making the auditor of the parent firm responsible for auditing a subsidiary, a practice that is currently absent in India.

Originality/value

The results contribute to the existing debate on how firms manage earnings using data of private firms in a large emerging market setting. Previous research has not paid enough attention to the earnings quality of private subsidiaries. The study also emphasizes the necessity for a more robust system of governance and supervision for private firms, particularly in India and generally in other countries.

Details

China Accounting and Finance Review, vol. 27 no. 1
Type: Research Article
ISSN: 1029-807X

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Article
Publication date: 25 February 2025

Polly Gregory and Susannah Colbert

Links between trauma and psychosis have been well evidenced. Trauma has been proposed to underlie psychotic experiences, with the trauma model of psychosis suggesting psychotic…

1

Abstract

Purpose

Links between trauma and psychosis have been well evidenced. Trauma has been proposed to underlie psychotic experiences, with the trauma model of psychosis suggesting psychotic experiences represent forms of trauma-related distress. As such, traumatic experiences can be seen symbolised in the content of psychosis experiences. Despite this, Community Mental Health Teams (CMHTs) predominantly operate within a medicalised model, where trauma and trauma-informed care are often neglected. Therefore, staff training was delivered on the trauma model of psychosis and trauma-informed care. This study aims to assess whether the training would improve knowledge and attitude in working with trauma and whether the training would improve staff recognition of the connections between the content of psychosis and previous trauma.

Design/methodology/approach

The training consisted of an online 1-h session, with measures of trauma-informed care (knowledge and attitude) and trauma-psychosis links (symbolism questionnaire) collected pre- and post-training. The training was open to all 115 staff in the CMHTs, 53 attended, however, only 23 completed both pre- and post-measures.

Findings

Wilcoxon signed-rank tests revealed significant differences in pre- and post-performance on both the trauma-informed care and symbolism questionnaire. Findings showed in this sample that the training improved knowledge and attitude in trauma-informed care and staff ability to recognise connections between trauma and psychotic experiences.

Originality/value

A novel symbolism questionnaire was designed for this evaluation. The findings extend the literature, as they show that staff were more accurate in recognising the specific underlying trauma to the psychosis content following training.

Details

Mental Health Review Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1361-9322

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Article
Publication date: 19 February 2025

Antonios Persakis and Ra’fat Jallad

This study aims to address a research gap by examining the relationship between CEO power, board strength and earnings quality in Gulf Cooperation Council (GCC) countries, a…

8

Abstract

Purpose

This study aims to address a research gap by examining the relationship between CEO power, board strength and earnings quality in Gulf Cooperation Council (GCC) countries, a region with distinctive economic and governance characteristics. It explores how governance mechanisms impact financial reporting in a context marked by significant corruption challenges and regulatory dynamics. The paper underscores the relevance of the GCC setting because of its unique blend of rapid economic reform, policy shifts toward diversification and evolving governance frameworks influenced by Islamic principles.

Design/methodology/approach

This study uses 5,030 firm-year observations from GCC countries over the period 2003–2022. To test the study’s hypotheses, the authors apply the System Generalized Method of Moments.

Findings

The study reveals a significant negative correlation between perceived corruption and earnings quality, with higher corruption leading to lower earnings quality. It finds that CEO power further diminishes earnings quality and intensifies corruption’s negative effects on financial reporting while strong board governance positively affects earnings quality and reduces the adverse impact of corruption.

Originality/value

By focusing on the GCC – a region undergoing significant regulatory reforms and policy changes – this study enriches the discourse on earnings quality within emerging markets. It provides novel insights into how corruption, CEO power and board strength interact to influence financial reporting quality, offering actionable implications for policymakers and stakeholders navigating these unique economic and governance landscapes.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 28 January 2025

Jirarat Pipatnarapong, Annika Beelitz and Aziz Jaafar

Using listed firms domiciled in the founding BRICS countries, i.e. Brazil, Russia, India, China and South Africa, this study empirically examines the impact of corporate social…

57

Abstract

Purpose

Using listed firms domiciled in the founding BRICS countries, i.e. Brazil, Russia, India, China and South Africa, this study empirically examines the impact of corporate social responsibility (CSR) engagement on the degree of tax avoidance.

Design/methodology/approach

Data used in this study is sourced from the EIKON database, where CSR variables, i.e. the scores of social and environmental pillars, are extracted from ASSET4, and accounting variables are sourced from Worldscope. The authors use a series of fixed effects regression models as the baseline approach to test the hypotheses. In addition, the 2SLS regression model is used to address endogeneity issues.

Findings

Their results show that firms domiciled in BRICS countries do not use CSR strategically as “a tool” to legitimate themselves, manage their risks or minimize public scrutiny from their tax avoidance behavior, but that they develop a culture of tax compliance and CSR engagement as a complementary strategy, promising ethical conduct to external audiences and committing to serving the interests of all stakeholders.

Originality/value

This study incrementally contributes to the extant literature on the link between tax avoidance and CSR engagement by offering evidence from dominant emerging markets, where the institutional factors differ considerably from those of developed countries. Furthermore, they provide essential insights for policymakers that including responsible tax payment as part of the global CSR agenda may motivate firms to align their behaviors to tax payment.

Details

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

Keywords

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Article
Publication date: 10 July 2024

Ishani Sharma, Soni Sharma, Arun Aggarwal and Sahil Gupta

This study aims to explore the influence of creative tourist experiences (CTE) on tourists’ recommendation intentions (RCI) toward creative tourist destinations. This study…

314

Abstract

Purpose

This study aims to explore the influence of creative tourist experiences (CTE) on tourists’ recommendation intentions (RCI) toward creative tourist destinations. This study examines the roles of tourist engagement and satisfaction in this relationship, proposing a sequential mediation model based on the cognitive-affective-conative model.

Design/methodology/approach

The research surveyed travelers to Kinnaur, Himachal Pradesh, India, using a structured questionnaire. Through purposive sampling data were collected from 413 generation Z (Gen Z in short) tourists. The study used exploratory factor analysis, confirmatory factor analysis and sequential mediation analysis. The present research used Model 6 by Andrew Hayes in the SPSS process macro to test the serial mediation.

Findings

The findings emphasize the importance of active engagement in creative tourism and its potential to transform cultural heritage into enriching experiences, thereby influencing tourists’ recommendation behaviors. Results of sequential mediation analysis show that there is a significant and positive impact of CTE on tourist’s RCI. Further, results showed the sequential mediation effect of tourist engagement and satisfaction on the relationship between CTE and RCI.

Practical implications

The findings offer valuable insights for destination managers and policymakers in creative tourism. Enhancing tourist engagement and satisfaction through creative experiences can effectively increase RCI, contributing to the sustainable management of cultural resources and preventing the over-commercialization of cultural heritage.

Originality/value

This research contributes to the literature on creative tourism by empirically testing the sequential mediation model and highlighting the pivotal role of tourist engagement and satisfaction in transforming creative experiences into positive behavioral outcomes. This study provides a nuanced understanding of the factors influencing tourists’ RCI in creative tourism contexts.

Available. Open Access. Open Access
Article
Publication date: 3 October 2024

Riccardo Camilli, Alessandro Mechelli and Lorenzo Coronella

This study aims to examine the over 60-year evolution of behavioral accounting research (BAR), with the main aim of critically and accurately tracing its past, present and future.

305

Abstract

Purpose

This study aims to examine the over 60-year evolution of behavioral accounting research (BAR), with the main aim of critically and accurately tracing its past, present and future.

Design/methodology/approach

This study used Scopus and Google Scholar databases to collect 2,263 articles of BAR published on relevant accounting journals. Thus, this study used Bibliometrix to provide a temporal overview of articles and a temporally oriented network co-occurrence analysis of BAR topics.

Findings

This study retraces the history of BAR since its origins and, also on the basis of triggering events inside (e.g. Nobel Prizes for behavioral economics studies) and outside (e.g. accounting scandals) the academic debate, this study critically discusses the evolution and interconnections of BAR topics. Then, future research is addressed toward main promising avenues, thus integrating recent technological applications into the behavioral accounting experimental designs to improve their external validity, exploring the potential positive effects of professionals’ heuristics in performing accounting tasks under certain environmental conditions, exploiting behavioral accounting frameworks to analyze and improve sustainability reporting and sustainability performance management.

Originality/value

Although BAR is rich of contributions, including subfields and contaminations, it lacks a holistic evaluation of its origins, development and future perspectives. In this vein, to the best of the authors’ knowledge, this is the first study to use a bibliometric analysis to evaluate the evolution of BAR.

Details

Journal of Management History, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1751-1348

Keywords

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