Abdullah Murrar, Bara Asfour and Veronica Paz
In the digital era, the banking sector has transformed into a powerful intermediary, effectively connecting surplus and deficit units. This dynamic landscape empowers savers to…
Abstract
Purpose
In the digital era, the banking sector has transformed into a powerful intermediary, effectively connecting surplus and deficit units. This dynamic landscape empowers savers to secure their finances and generate returns, while simultaneously enabling businesses and individuals to access capital for investment and promoting economic growth. This study explores the relationships among banking development dimensions – represented by primary assets and liabilities, bank capital (core capital and required reserves) and economic growth as measured by components of gross domestic product (GDP).
Design/methodology/approach
The study consolidated monthly balance sheets from digital banks over a 20-year period, resulting in an aggregate monthly balance sheet that reflects the financial position of all digital banks in the Palestinian economy. The research employs both maximum likelihood and Bayesian structural equation modeling to measure the causal pathways of the consolidated balance sheet with the individual components of GDP.
Findings
The results revealed that bank main assets (investments and loans) and liabilities (deposits) collectively explain for 97% of bank capital. Investments and loans demonstrate significant negative correlations with bank capital, while deposits exhibit a positive impact. This leads to a fundamental conclusion that a substantial proportion of retained earnings within the banking sector is reinvested, fueling expansion and growth. Additionally, the results showed a significant relationship between bank capital and various GDP components, including private consumption, gross investment and net exports (p = 0.000). However, while the relationship between bank capital and government spending was insignificant in the maximum likelihood estimation, Bayesian estimation revealed a slight yet positive impact of bank capital on government spending.
Originality/value
This research stands out due to its unique exploration of the intricate relationship between bank sector development dimensions, primary assets and liabilities and their impact on bank capital in the digital era. It offers fresh insights by dividing this connection into specific dimensions and constructs, utilizing a comprehensive two-decade dataset covering the digital banks records.
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Hind Muhtaseb, Veronica Paz, Geoffrey Tickell and Mukesh Chaudhry
This study explores the relationship between leverage and earnings management in the context of Palestinian-listed companies, while also investigating whether audit industry…
Abstract
Purpose
This study explores the relationship between leverage and earnings management in the context of Palestinian-listed companies, while also investigating whether audit industry specialization influences this relationship.
Design/methodology/approach
The data used in this study are extracted from public financial reports of 39 firms listed on Palestine Stock Exchange (PEX), spread across the service, insurance, industry and investment sectors, for the time period 2011–2022. A model is developed to test 4 hypotheses about the relationships between long-term and short-term debts, and earnings management, and then to examine the influence of audit industry specialization on these relationships.
Findings
The results depict a significant, negative relationship between long-term debt and earnings management. Whereas the association between short-term debt and earnings management is insignificant. Audit industry specialization is proven to have no influence on the relationships between the independent and the dependent variables. Results are robust for firms that changed their accounting policies and using different audit industry specialization proxies.
Originality/value
The association between leverage and earnings management is a significant research topic, given that previous research identifies credit ratings and debt covenant violations as key factors which motivate earnings management. This paper fills a substantial research gap by examining the relationship between the two variables in the context of Palestinian-listed firms, while emphasizing the distinction between long-term and short-term debts. It also highlights key relationships that have been neglected in this particular context, which adds to the body of literature. Furthermore, the research's findings provide a solid information base that is of great interest to accounting and auditing experts and that may be seriously evaluated to support and advance the PEX sector.
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Veronica Chiodo, Francesco Gerli and Ambra Giuliano
The complexity of contemporary societal challenges in emerging countries reanimates the necessity of collective action to resolve them. What is required is system change, namely…
Abstract
Purpose
The complexity of contemporary societal challenges in emerging countries reanimates the necessity of collective action to resolve them. What is required is system change, namely, transformations in policy, practice, power relationships, market dynamics and social customs that underlie social and environmental issues. Technological innovations, paired with intentional social changes, might play a transformative role in this effort. This paper aims to investigate the relationship between the adoption of technologies in social enterprises (SEs) and their contribution to achieving system change. It also addresses the effects of their hybrid nature on this relationship.
Design/methodology/approach
The analysis relied on data collected through a survey of the global population of Ashoka fellows, which is largely based in emerging economies. Three models were developed concerning different pathways to achieve system change identified in the theoretical framework. These were tested using Probit regressions.
Findings
The investigation confirms that technology can support SEs in navigating complex pathways to achieve system change rather than merely enabling linear scaling operational strategies. The pursuit of economic value creation, in conjunction with a social mission, decreases the ability of SEs to achieve system change. This is because the scaling paths which hardly create revenues are neglected.
Originality/value
The study conceptualises a multifaceted model of system change. It tests the framework empirically to show that SEs can adopt technologies to unleash complex system change processes to generate societal impact, on top of merely demonstrating linear approaches to scaling or replication. The paper questions the capacity of SEs to facilitate system change without appropriate financial support and the inherent tensions between hybridity and the depth of system change dynamics.
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Verónica León-Bravo, Federica Ciccullo and Federico Caniato
The adoption of traceability systems (TS) and sustainability programs responds to different objectives among which the companies need to be considered legitimate; hence, this…
Abstract
Purpose
The adoption of traceability systems (TS) and sustainability programs responds to different objectives among which the companies need to be considered legitimate; hence, this study aims, first, to identify what is the relationship between traceability and sustainability in the food supply chain (SC) and, second, to characterize the legitimacy-seeking purposes, i.e. moral, cogniti60ve or pragmatic-driving companies to implement TS along with sustainability initiatives.
Design/methodology/approach
This study analyses the coffee SC, a globally dispersed commodity chain, where traceability initiatives usually respond to mandatory and voluntary quality standards and certifications of origin. The study involves nine cases at different stages of the coffee SC.
Findings
This study provides a taxonomy of the TS applied in the coffee SC. In addition, three main approaches to traceability for sustainability are found in the coffee SC: synergistic, complementary or disconnected. Findings also reveal how traceability responds to different legitimacy-seeking objectives while triggering or complementing sustainability practices. Five research propositions and related directions for further investigations are elaborated from the results of our study.
Originality/value
This study explores a rather limited studied area, investigating how companies in a food commodity chain address traceability and sustainability together while seeking legitimacy in the market. Moreover, the study is grounded on legitimacy theory, thus adding robustness to the analysis.