Dewi Mustika Ratu and Dian Kartika Rahajeng
The inadequate enforcement of anti-corruption policies in the private sector in Association of Southeast Asian Nations (ASEAN) countries is the motivation for this study to…
Abstract
Purpose
The inadequate enforcement of anti-corruption policies in the private sector in Association of Southeast Asian Nations (ASEAN) countries is the motivation for this study to investigate how a company’s anti-corruption disclosure (ACD) affects earnings management. Moreover, the underrepresentation of women in supervisory roles makes this aspect of particular interest. Hence, this study highlights the question of whether their participation in audit committees can impact the organization's policies.
Design/methodology/approach
This research employs archival methods to examine 30 of the largest non-financial companies from each of the ASEAN-5 countries (Indonesia, Malaysia, Singapore, Thailand and the Philippines) from 2016 to 2018. Lastly, the authors also utilize a robustness test.
Findings
As expected, the results indicate that the low willingness to disclose anti-corruption activities encourages earnings management practices. This relationship is significantly more potent in firms with fewer women on their audit committees. The findings remain robust after assessing alternative measurements.
Practical implications
The findings of this study imply that a company’s anti-corruption policies and the role of women in supervisory activity influence rent-seeking behavior. Thus, investors should consider elements that promote transparency in companies. Additionally, regulators must evaluate regulations to promote gender diversity and eradicate corruption by establishing exact policies, providing whistleblowing protection and simplifying indicators for effective disclosure.
Originality/value
The consequences of the anti-corruption policy in the ASEAN-5 countries are relatively under-researched and still focus on a single country. Furthermore, while examining the connection between ACD and earnings management, this study also considered how addressing the supervisory factor is urgent in terms of corporate transparency.
Details
Keywords
Purnima Singh and Ajai Pal Sharma
In the course of worldwide COVID-19, the phenomenon of corporate social responsibility (CSR) gained more importance and publicity. Many organizations made a significant…
Abstract
Purpose
In the course of worldwide COVID-19, the phenomenon of corporate social responsibility (CSR) gained more importance and publicity. Many organizations made a significant contribution in dealing with the crisis situation and even increased their spending on the welfare activities. This study aims to evaluate the attitude of community, especially young generation, towards the CSR undertaken by the organization during the pandemic period.
Design/methodology/approach
Descriptive research design has been employed using purposive sampling for data collection through a structured questionnaire. A sample of 550 was taken, and pilot survey was conducted among 100 respondents before administering it at full scale. A model has been proposed and tested by using structural equation modelling in AMOS.
Findings
The results of the study show that compulsory provisions of CSR have enhanced the trust of community and made the organizations more responsive towards philanthropic, legal, ethical and economic responsibility. The respondents were found to be aware about the welfare activities carried out by the organizations and developed a positive attitude towards them.
Research limitations/implications
First, the study is limited to examining the attitude of community towards CSR, especially young generation. Second, it is difficult to say whether outcomes of this study can be generalized for such other potential global crisis. Third, the study is based on the Carroll’s “CSR Pyramid” framework when other such frameworks and approaches could be available to analyse the impact of COVID-19-related CSR initiatives. Last, this study has been conducted only in the state of Maharashtra, and results may not be applicable to other states as well other countries.
Practical implications
The findings of the study may help the organizations to plan their activities in line with the amendments made time to time. This shall also help the regulating agencies to monitor and catch the wrongdoers and take appropriate action. Findings of such studies, based on public opinion, can also help the governments to make further amendments, time to time, in related acts. It can also be said that with the involvement of public/society, more transparency can be brought in the functioning of the organizations, especially in the context of CSR.
Social implications
Earlier, most of the organizations were falsely recording the CSR expenditure in their balance sheets without actually spending it, but the amendment in act has made it compulsory for the organizations to follow it honestly. The pandemic period gave an opportunity to the society to evaluate the organizations on these parameters and to make their opinion about them in real time. Therefore, it is concluded that pandemic has created awareness in the society and significantly influenced their attitude about CSR activities. This shall also help the organizations feel a pressure in future while planning and implementing the activities under CSR.
Originality/value
The results of the study show contribution of the corporate towards social welfare during pandemic. The results would help the policymakers to monitor the execution of practices more closely and organizations to execute their strategies in a more effective manner.