Bill B. Francis, Raffi E. García and Jyothsna G. Harithsa
This paper aims to examine how bank stress tests affect bank tax planning.
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.
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José M. Ponzoa, Andrés Gómez and Ramón Arilla
This study aims to develop a proprietary indicator to measure the digital presence of the institutions: the digital presence index.
Abstract
Purpose
This study aims to develop a proprietary indicator to measure the digital presence of the institutions: the digital presence index.
Design/methodology/approach
This research delves into how nonprofit institutions, specifically business interest associations (BIAs), have developed their internet presence by applying essential digital marketing techniques. To this end, and using big data mining tools, this study analyzes the tracking by internet users of 102 BIAs, with their respective websites in 36 countries in Europe and the USA. In addition, the presence and activity of the institutions included in this study on social networks are considered.
Findings
This research serves as a basis for discussing the current gap between social reality and the digitalization of institutions. In this sense, conclusions are drawn on the importance of managerial profiles in decision-making on digitization and the necessary knowledge that, together with Web and social network managers, they must have to articulate the means and techniques that promote the internet presence of the organizations they manage.
Originality/value
Conclusions are drawn according to the geographical scope of the BIAs, and an argument is made about the difficulties of connection and loss of prominence of this type of institutions among their different target audiences, especially among the youngest and most digitized.
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David Norman Smith and Eric Allen Hanley
Controversy has long swirled over the claim that Donald Trump's base has deeply rooted authoritarian tendencies, but Trump himself seems to have few doubts. Asked whether his…
Abstract
Controversy has long swirled over the claim that Donald Trump's base has deeply rooted authoritarian tendencies, but Trump himself seems to have few doubts. Asked whether his stated wish to be dictator “on day one” of second term in office would repel voters, Trump said “I think a lot of people like it.” It is one of his invariable talking points that 74 million voters supported him in 2020, and he remains the unrivaled leader of the Republican Party, even as his rhetoric escalates to levels that cautious observers now routinely call fascistic.
Is Trump right that many people “like” his talk of dictatorship? If so, what does that mean empirically? Part of the answer to these questions was apparent early, in the results of the 2016 American National Election Study (ANES), which included survey questions that we had proposed which we drew from the aptly-named “Right-Wing Authoritarianism” scale. Posed to voters in 2012–2013 and again in 2016, those questions elicited striking responses.
In this chapter, we revisit those responses. We begin by exploring Trump's escalating anti-democratic rhetoric in the light of themes drawn from Max Weber and Theodor W. Adorno. We follow this with the text of the 2017 conference paper in which we first reported that 75% of Trump's voters supported him enthusiastically, mainly because they shared his prejudices, not because they were hurting economically. They hoped to “get rid” of troublemakers and “crush evil.” That wish, as we show in our conclusion, remains central to Trump's appeal.
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Dege Liu, Yuanmei Lan and Chaoping Li
Previous research on narcissism and leadership seldom takes into account the leader–subordinate dyadic relationship and ignores the role of subordinate. Drawing on the contextual…
Abstract
Purpose
Previous research on narcissism and leadership seldom takes into account the leader–subordinate dyadic relationship and ignores the role of subordinate. Drawing on the contextual reinforcement model of narcissism, the purpose of this study is to explore the joint effects of both leaders’ and their subordinates’ narcissism on the former’s effectiveness through the latter’s perceived relationship conflict with them (RCWL).
Design/methodology/approach
Self-report data were collected from 315 full-time employees using a three-wave survey. Polynomial regression and response surface analysis were used to test the hypotheses.
Findings
The results of this study reveal that although RCWL is higher when leaders’ narcissism is higher along both congruence and incongruence line, RCWL is lower when leaders’ narcissism exceeds that of their subordinates than it falls short of subordinates’ narcissism when both leader’s and subordinate’s narcissism are low. Furthermore, the results of this study also demonstrate that leader–subordinate (in)congruence in narcissism has an indirect influence on the leaders’ effectiveness because of the resulting relationship conflict, and that the response surface of the total effect of joint narcissism on leader effectiveness possesses a convex surface, which demonstrates that leader effectiveness is lower at the median point when compared to the low- and high-level congruence points.
Originality/value
This study not only contributes to fit theory, vertical relational conflict and research on narcissistic leader by simultaneously investigating both leaders’ and subordinates’ narcissism and their joint influence on leader–subordinate relational conflict and leaders’ effectiveness but also offers several practical recommendations for companies to enhance leaders’ effectiveness.
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Hendy Mustiko Aji, Norbani Che-Ha and Mohd Zaidi Md Zabri
This study aims to systematically review the literature on intergroup prosocial behavior to uncover key insights and propose future research directions for Islamic marketing.
Abstract
Purpose
This study aims to systematically review the literature on intergroup prosocial behavior to uncover key insights and propose future research directions for Islamic marketing.
Design/methodology/approach
This study uses the Theory-Context-Characteristics-Methodology framework to systematically review past literature based on the most commonly used theories, contexts, characteristics and methods.
Findings
After reviewing 2,675 articles from 2000 to 2023, this study identifies the four most common theories and contexts, seven factors and three primary methods used to study intergroup prosocial behavior. Based on these findings, this study identifies seven research gaps and suggests new theoretical perspectives, themes, constructs and methods for future studies in Islamic marketing.
Originality/value
To the best of the authors’ knowledge, this study is the first systematic literature review to explore intergroup prosocial behavior across disciplines while proposing targeted research agendas and actionable insights to advance the field of Islamic marketing.
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This study investigates the influence of corporate culture on financial reporting transparency within Iranian firms.
Abstract
Purpose
This study investigates the influence of corporate culture on financial reporting transparency within Iranian firms.
Design/methodology/approach
Leveraging a dataset of 1,480 firm-year observations from the Tehran Stock Exchange spanning from 2013 to 2022, the study employs text mining to quantify linguistic features of corporate culture and transparency, specifically readability and tone, within annual financial statements and Management Discussion and Analysis (MD&A) reports.
Findings
Our results confirm a positive and significant relationship between corporate culture and financial reporting transparency. The distinct dimensions of corporate culture — Creativity, Competition, Control, and Collaboration — each uniquely enhance financial transparency. Robustness tests including firm fixed-effects, entropy balancing, Generalized Method of Moments (GMM), and Propensity Score Matching (PSM) validate the profound influence of corporate culture on transparency. Additionally, our analysis shows that corporate culture significantly affects the disclosure of business, operational, and financial risks, with varying impacts across risk categories. Cross-sectional analysis further reveals how the impact of corporate culture on transparency varies significantly across different industries and firm sizes.
Research limitations/implications
The study’s scope, while focused on Iran, opens avenues for comparative research in different cultural and regulatory environments. Its reliance on text mining could be complemented by qualitative methods to capture more nuanced linguistic subtleties.
Practical implications
Findings underscore the strategic importance of cultivating a transparent corporate culture for enhancing financial reporting practices and stakeholder trust, particularly in emerging economies with similar dynamics to Iran.
Originality/value
This research is pioneering in its quantitative analysis of the textual features of corporate culture and its impact on transparency within Iranian corporate reports, integrating foundational theoretical perspectives with empirical evidence.
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Mário Franco, Margarida Rodrigues and Jaciara Albuquerque
Sustainable innovation began to be addressed in academic circles in the early 2000s. However, there is still a gap in the adoption of innovative sustainable practices in small and…
Abstract
Purpose
Sustainable innovation began to be addressed in academic circles in the early 2000s. However, there is still a gap in the adoption of innovative sustainable practices in small and medium-sized enterprises (SMEs) context. Therefore, this study aims to identify the specific challenges and benefits that SMEs face when adopting innovative sustainable practices.
Design/methodology/approach
To fulfil this objective, a qualitative methodology was used, specifically a single case study in a wine SME. For data collection, the interview, based on the informal conversation method, was carried out personally with the firm’s entrepreneur-manager.
Findings
From the content analysis, the empirical evidence shows that by integrating sustainable innovation into their operations, SMEs can contribute to reducing their environmental impact and promoting sustainability at a local and global level.
Practical implications
This empirical study shows that SMEs do not face unique challenges, such as responding to the limited resources they have and competitive pressures, with the use of innovative sustainable practices in their operations being one of the most promising responses.
Originality/value
This study is innovative because it shows the importance of SMEs recognising and integrating social responsibility associated with environmental awareness into their business strategies and that innovation is an essential requirement for implementing sustainable practices. A framework about sustainable innovation practices within SME is also proposed.
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To elucidate the factors influencing suboptimal food (SF) purchase intention among Taiwanese consumers, this study extended the theory of planned behaviour (TPB) model by…
Abstract
Purpose
To elucidate the factors influencing suboptimal food (SF) purchase intention among Taiwanese consumers, this study extended the theory of planned behaviour (TPB) model by incorporating driving factors that encourage purchasing of SFs, that is, incorporating food waste awareness and personal norms. The inhibiting moderator of health consciousness and facilitating moderator of price consciousness were also considered.
Design/methodology/approach
A total of 305 online questionnaire responses were analysed. Moderated regression analysis was performed to test the hypotheses proposed in this study.
Findings
Consumer attitudes toward purchasing SFs and perceived behavioural control as well as their food waste awareness and personal norms are determinants of their SF purchase intention. Health consciousness inhibits SF purchase intention, and price consciousness promotes SF purchase intention. In addition, the moderating effect of health consciousness reverses the positive relationship between personal norms and SF purchase intention, turning the relationship negative. However, the moderating effect of price consciousness strengthens the positive relationship between personal norms and SF purchase intention.
Originality/value
In addition to extending the TPB model, this study considered the main effects and moderating effects of health consciousness and price consciousness on consumers’ intention to purchase SF. The research findings contribute to the understanding of the relevant factors that influence Taiwanese consumers’ SF purchase intention. The study also outlines the implications of its findings in terms of encouraging consumers to purchase SFs to reduce food waste.
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Dao Van Le and Tuyen Quang Tran
This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.
Abstract
Purpose
This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.
Design/methodology/approach
The study employs a two-system generalized method of moments (GMM) estimator and data from 2012 to 2019 across all 63 provinces/cities of Vietnam.
Findings
The study finds that local budget retention rates significantly influence public investment, affecting scale and allocation efficiency. The reallocation of budgets between regions and from the central government to local levels incurs certain costs, often resulting in economically robust provinces experiencing reductions in their retention rates.
Practical implications
Recognizing the challenges of immediate structural budget changes due to cultural and historical factors, the study suggests a more gradual policy approach. It emphasizes the importance of policy predictability, as abrupt reductions in the retention rate lead to higher costs than gradual reductions, thus implementing budget policies with a clearer timeline. This study provides insight into local budget allocation regimes and their impact on productivity in transitioning countries.
Originality/value
First, the study provides fresh evidence of the impact of retention rate changes on TFP and its components in Vietnam. Second, the study provides insights into the mechanisms of the nexus of increased budget spending, capital efficiency and, most importantly, attaining improvement in education. We also offer further insights into inefficient budget allocation agents in Vietnam, especially in large cities, which should alert scholars to explore this topic further in the future.
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David Cashman, Wesley O’Brien and Fiona Chambers
This study aims to capture children’s interpretation of holistic well-being within Irish primary schools and add to the development of a comprehensive systems-informed positive…
Abstract
Purpose
This study aims to capture children’s interpretation of holistic well-being within Irish primary schools and add to the development of a comprehensive systems-informed positive education model.
Design/methodology/approach
This study utilized visual participatory research methods, including PhotoVoice and one-on-one interviews, to assess children’s (n = 16) well-being, guided by Von Unger’s comprehensive seven-step framework. Data analysis was anchored within grounded theory, beginning with data collection, initial coding, focused coding and culminating in identifying themes and subthemes. Data were interpreted using the mosaic approach by integrating visual and verbal data.
Findings
This analysis uncovered three primary themes that affect student well-being: relationships, space and physical environment and learning and curriculum, each with detailed subthemes. For instance, student–teacher relationships, peer relationships, safety, learning spaces, the creative curriculum including arts and music and the experiential richness of outdoor learning are crucial to students' educational growth and well-being. These aspects are seen as interconnected, shaping a holistic educational experience beyond academic learning to encompass students’ comprehensive well-being. The students' narratives demonstrated that learning is not merely an academic exercise but a vital component of their well-being.
Originality/value
This study significantly departs from traditional educational research by advocating for a dynamic, action-oriented understanding of “well-being.” It challenges the static, possessive interpretations of well-being and introduces the concept of well-being as a fluid and ever-evolving process. This reconceptualization positions well-being as a complex construct, influenced by an intricate web of relationships, spanning human and non-human interactions, organizational and environmental structures, personal desires, behavioral practices and broader societal and cultural frameworks.