Yixuan Kang, Yanyan Ma and Fusheng Wang
With growing evidence of financial misconduct spreading through director networks, research on financial fraud contagion has garnered significant attention. This study…
Abstract
Purpose
With growing evidence of financial misconduct spreading through director networks, research on financial fraud contagion has garnered significant attention. This study incorporates the regulatory enforcement perspective into existing literature to examine how regulatory penalties mitigate financial fraud contagion within director networks.
Design/methodology/approach
This study uses a panel dataset of A-share listed Chinese firms covering 2007–2022. Based on the nature of the dataset, we construct ordinary least squares regression models with firm- and year-fixed effects. Data are collected from the China Stock Market and Accounting Research, Wind Information Co., Ltd and China Research Data Services. We use Python to scrape the coordinates of regulators and firms and retrieve travel distances from the Baidu Maps API.
Findings
This study verifies the existence of financial fraud contagion in director networks. Our findings indicate that regulatory penalties can mitigate the contagion between director-interlocked firms, improving accounting quality. Moreover, the mitigation effects are mediated by independent directors’ dissent and auditors’ efforts at director-interlocked firms and are more pronounced when these firms have superior network centrality and internal control quality.
Originality/value
This study enriches the literature on financial fraud contagion by examining director networks and regulatory penalties. We propose mediating effects of auditor effort and director dissents on the relationship between regulatory penalties and financial fraud contagion. Our findings provide insights for regulators to alleviate pressures and highlight the importance for directors to consider financial risks within their networks.
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Mariasole Bannò, Emilia Filippi and Chiara Leggerini
The introduction of gender quota laws in many countries has garnered significant attention in the literature and in the political discourse. Proponents of this solution emphasise…
Abstract
Purpose
The introduction of gender quota laws in many countries has garnered significant attention in the literature and in the political discourse. Proponents of this solution emphasise its potential to bolster opportunities for women, foster their participation on boards of directors and improve corporate governance, market value and firm performance. Conversely, opponents express concerns regarding the possibility of appointing less-qualified women, thereby diminishing board effectiveness and potentially leading to negative consequences on firm market value and performance. This study aims to address this ongoing debate by examining the impact of gender quota laws on firm performance.
Design/methodology/approach
The impact of gender quota laws on firm performance, measured through ROE, ROA and ROI, is evaluated using a database of 27,977 Italian firms and adopting a two-stage traditional treatment effect model.
Findings
The econometric analysis reveals a negative impact of the gender quota law on firm performance.
Originality/value
This study contributes to the academic debate on the pros and cons of imposing gender quota laws by providing empirical evidence on their impact on firm performance.
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Shichao Wang, Jinan Shao, Yueyue Zhang and Wuyue Shangguan
The metaverse has garnered increasing attention from researchers and practitioners, yet numerous firms remain hesitant to invest in it due to ongoing debates about its potential…
Abstract
Purpose
The metaverse has garnered increasing attention from researchers and practitioners, yet numerous firms remain hesitant to invest in it due to ongoing debates about its potential financial benefits. Therefore, it is crucial to analyze how the implementation of metaverse initiatives affects firms’ stock market value – an area that remains underexplored in the existing literature. Additionally, there is a significant lack of research on the contingency factors that shape the stock market reaction, leaving a noticeable gap in managerial guidance on the timing and benefits of investments in the metaverse. To narrow these gaps, we examine whether and when the implementation of metaverse initiatives enhances firms’ stock market value.
Design/methodology/approach
Based on 73 metaverse implementation announcements disclosed by Chinese listed firms during January 2021–August 2023, we employ an event study approach to test the hypotheses.
Findings
We find that metaverse implementation announcements elicit a positive stock market reaction. Moreover, the stock market reaction is stronger for technology-focused announcements and smaller firms, or when public attention to the metaverse is higher. Nevertheless, firms’ growth prospects do not significantly alter the stock market reaction.
Originality/value
This study extends the nascent literature on the metaverse by applying signaling theory to offer novel insights into the signaling effect of metaverse implementation announcements on stock market value and the boundary conditions under which the effectiveness of the signal varies. Besides, it provides managers with important implications regarding how to tailor the investment and information disclosure strategies of the metaverse to more effectively enhance firms’ stock market value.
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Minghao Zhu, Shucheng Miao, Hugo K.S. Lam, Chen Liang and Andy C.L. Yeung
This study aims to investigate the impact of geopolitical risk (GPR) on supply chain concentration (SCC) and the roles of operational capabilities and resources in this…
Abstract
Purpose
This study aims to investigate the impact of geopolitical risk (GPR) on supply chain concentration (SCC) and the roles of operational capabilities and resources in this relationship.
Design/methodology/approach
Secondary longitudinal data from multiple sources is collected and combined to test for a direct impact of GPR on SCC. We further examine the moderating effects of firms’ operational capabilities and resources (i.e. firm resilience, operational slack and cash holding). Fixed-effect regression models are applied to test the hypotheses, followed by a series of robustness tests to check the consistency of the results.
Findings
Consistent with the tenets of resource dependence theory, our analysis reveals a significant negative impact of GPR on SCC. Moreover, we find that this adverse effect is attenuated for firms with higher levels of resilience, more operational slack and greater cash holdings. Further analysis suggests that maintaining a diversified supply chain base during heightened GPR is associated with a firm’s improved financial performance.
Originality/value
This study contributes to the supply chain management (SCM) literature by integrating GPR into the supply chain risk management framework. Additionally, it demonstrates the roles of diversification and operational resources in addressing GPR-induced challenges.
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Han Donker, Eva K. Jermakowicz and Mohammad Nurunnabi
Prior research has shown that implementing International Financial Reporting Standards (IFRS) increases foreign direct investments at the macroeconomic (country) level. This study…
Abstract
Purpose
Prior research has shown that implementing International Financial Reporting Standards (IFRS) increases foreign direct investments at the macroeconomic (country) level. This study aims to demonstrate that the implementation of mandatory adoption of IFRS positively influences foreign shareholdings at the company level in Saudi Arabia.
Design/methodology/approach
The fixed effects regression model is used to estimate the impact of the adoption of IFRS on foreign ownership in a panel data set for Saudi Arabia over the period 2010 through 2021.
Findings
This study finds that IFRS adoption reduces information asymmetry and increases comparability, which attracts foreign investors. It also finds that firms with high foreign ownership have greater capital expenditures post-IFRS adoption, suggesting that foreign investors encourage firms to align their interests with those of shareholders and make more long-term investments. This paper demonstrates that firms increased their long-term investments and garnered greater free cash flows after adopting IFRS. Finally, this paper observes a positive association between IFRS employment and market liquidity.
Originality/value
To the best of the authors’ knowledge, this is the first research to reveal that, following the compulsory adoption of IFRS, foreign shareholdings have a favorable effect on corporate investments (capital expenditures and property, plant and equipment) at the micro (firm) level. It has been motivated by the assertion that a lack of portfolio investments results primarily from an asymmetry of information, which can be mitigated by providing high quality comparable financial information based on IFRS.
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Anand Kumar Yadav, Hari Shankar Mahato, Sangeeta Kumari and Pawel Jurczak
This study aims to examine the plane wave reflection problem in micropolar orthotropic magneto-thermoelastic half space, considering the influence of impedance as a boundary in a…
Abstract
Purpose
This study aims to examine the plane wave reflection problem in micropolar orthotropic magneto-thermoelastic half space, considering the influence of impedance as a boundary in a nonlocal elasticity.
Design/methodology/approach
This study presents the novel formulation of governing partial differential equations for micropolar orthotropic medium with impact of nonlocal thermo-elasticity under magnetic field.
Findings
This study provides the numerical results validation for a particular numerical data and expression for the amplitude ratios of reflected waves and identifies the existence of four different waves, namely, quasi longitudinal displacement
Research limitations/implications
The graphical analysis examines the variation of speeds and coefficients of attenuation of these waves due to frequency, magnetic field and nonlocal parameters. Also, significant conclusions on the variation of reflection coefficient against nonlocal parameter, frequency, impedance parameter and angle of incidence are provided graphically.
Practical implications
The creation of more effective micropolar orthotropic anisotropic materials which are very useful in the daily life and their applications in earth science are greatly impacted by the findings of this study.
Originality/value
The authors of the submitted document initiated and produced it collectively, with equal contributions from all members.
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States retain (socio-political) tools to govern the lives of their population and beyond. Such governing takes place in various offices, where frontline staff need to implement…
Abstract
States retain (socio-political) tools to govern the lives of their population and beyond. Such governing takes place in various offices, where frontline staff need to implement policies that are created at higher levels of the administrative and political hierarchy. This chapter proposes an in-depth view on work that is being done in Swiss resident registration offices, through an ethnographic lens. Following caseworkers in their daily work routines over an extended period allowed me to trace their practices and (in)formal approaches to their work. This chapter delves into longer field note extracts that allow for deeper contextuality. Two key themes that will be engaged with, hustling and shuffling, explore the presence of informality and the consequences that such informal practices have for institutional functioning. First, insights show that a high workload combined with a lack of resources, creates an air of hustling that pushes frontline staff to make up for shortcomings in resources by inventing new and more efficient ways to implement their work. Hustling goes beyond individual coping mechanisms; often embedded in collective routines and practices that are, however, not codified. Second, given the high amount of information, policies and laws frontline workers need to be familiar with, they shuffle around with knowledge and devise productive ways to communicate with each other while remaining able to process cases. As such, informality is neither the opposite to formality nor simply uncodified but can range from spontaneous solutions to established sets of practice that blur the boundary between formal and informal.
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Sheng Zhou, Fei Liu, Xiaofeng Weng, Jiacheng Mai and Shaoxiang Feng
This research aims to investigate the trajectory tracking problem for a four-wheel independent drive autonomous vehicle (4WID) and propose an integrated, coordinated control…
Abstract
Purpose
This research aims to investigate the trajectory tracking problem for a four-wheel independent drive autonomous vehicle (4WID) and propose an integrated, coordinated control strategy to address the mutual interference between trajectory tracking and stability control in extreme cases.
Design/methodology/approach
The authors establish an adaptive preview model that modifies the preview distance based on vehicle speed. They utilize a three-degrees-of-freedom vehicle model and employ model predictive control to calculate the necessary front wheel angle for trajectory tracking. In terms of longitudinal control, a longitudinal coordinated control mechanism is established to achieve the two conflicting objectives of trajectory tracking accuracy and dynamic stability through early deceleration. A stability controller based on sliding mode control (SMC) is designed, considering tire constraints and tracking the optimal yaw angle and sideslip angle. Furthermore, a lateral coordinated control strategy is developed, considering the weight coefficient of stability control, and the yaw moment is calculated and distributed based on the vehicle torque requirements.
Findings
The proposed integrated, coordinated control strategy successfully addresses the mutual interference between trajectory tracking and stability control in extreme cases for the 4WID vehicle. The strategy achieves trajectory tracking accuracy, dynamic stability and reduced energy consumption while taking into account tire constraints.
Originality/value
We have proposed a cooperative control strategy for the trajectory tracking problem of autonomous driving vehicles. This strategy is different from previous methods in that we have taken into account the integrated dynamic control in both longitudinal and lateral directions, balancing the conflicting control requirements and reducing energy consumption, improving trajectory tracking accuracy and vehicle dynamic stability. We have verified the feasibility of this strategy through joint simulation under different driving conditions.
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Linh Ha Nguyen, Tam Thanh Le, Hoa Quynh Ha, Hung Viet Nguyen, Minh Tue Bui, Anh Tran Xuan Pham, Anh Quang Bui and Huong Nguyet Trieu
This research examines how bank competition and corporate social responsibility (CSR) affect the stability of Vietnamese commercial banks.
Abstract
Purpose
This research examines how bank competition and corporate social responsibility (CSR) affect the stability of Vietnamese commercial banks.
Design/methodology/approach
Utilizing data collected from 24 commercial banks spanning the period from 2015 to 2022, the paper employs the two-step system generalized method of moments (SGMM) regression method to find the impact of competition and CSR on commercial banks’ stability in Vietnam.
Findings
The key findings are (1) increased competition boosts commercial bank stability; (2) economic and environmental CSR initiatives adversely affect bank stability, while social CSR has a positive impact; (3) seven other factors are also identified to enhance bank stability, including bank size, cost management efficiency, independent management, inflation, gross domestic product (GDP) growth, monetary policy and volatility time.
Originality/value
Prior studies have not concurrently incorporated both CSR and bank competition in their investigations of bank financial stability. Specifically, the comprehensive components of CSR remain underexplored, with a predominant focus on its environmental dimension. This research stands out as one of the few endeavors scrutinizing the influence of competition and CSR on commercial bank financial stability in Vietnam, with a detailed investigation of all three components of CSR.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2024-0316