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This paper aims to investigate the potential mediating effect of environmental disclosure on the relationship between corporate governance and the disclosure of social information by disaggregating Bloomberg ESG (Environmental-Social-Governance) scores. The polluting level of a company is examined for its potential moderating effect.

The focus is on the S&P 500. A structural equation model (SEM) is proposed that considers the effects of governance board constructs on the voluntary disclosure of social information (S-score) mediated by the voluntary disclosure of environmental information (E-score). The model is fit separately for two groups of companies (high-polluting and low-polluting), and the path coefficients are compared.

Consistent with prior research, board independence, gender diversity, and size positively impact voluntary environmental disclosure; board age is found to have a significant but negative effect. The estimated path coefficient from E-score to S-score is strong, positive, and significant; environmental disclosure fully mediates the relationship between corporate governance and social disclosure. This path coefficient is significantly greater for those companies in the high-polluting group.

The findings indicate that high-polluting companies may engage in increased voluntary disclosure of social information as reputation insurance. E-score fully mediates the relationship between corporate governance and S-score more strongly for high-polluting companies, suggesting this group is more likely to engage in and report on socially responsible behaviors to deflect attention away from environmental performance (i.e. greendeflecting).

This paper aims to reveal how institutional distance, institutional quality and government involvement may shorten M&A deal durations in Brazil. Therefore, t paper explains the determinants of M&A deal durations from the perspective of an emerging country acquirer.

The authors use a distinctive data set from the Thomson SDC Mergers and Acquisitions Database and Zephyr, covering both public and private M&As in Brazil. This sample includes all cross-border M&As in Brazil between 2000 and 2015. They used hierarchical ordinary least squares (OLS) regression to analyze the data set.

The findings show that informal institutional distance between Brazil and host countries does not impact deal durations when the target is from a developed host. Nonetheless, Brazilian deals involving developing country targets exhibit a positive association between institutional distance and deal durations. The results also reveal that stronger institutional quality reduces the duration of M&A deals executed by Brazilian firms in developed countries. However, no association was found in emerging countries. Finally, government involvement in Brazilian acquirers’ deals did not impact M&A completions in developed countries but prolonged the transactions in emerging countries. Therefore, the outcomes of government involvement occurred differently in developed and emerging host countries and did not manifest as a resource-based advantage.

The authors extend the literature by simultaneously explicating the country-, i.e. institutional distance and institutional quality, and firm-level, i.e. government involvement effects on M&A deal duration from an emerging country acquirer perspective. Second, the authors shed light on the unique impact of government involvement in cross-border M&As, including emerging-developed and emerging-emerging country pairs, on the speed of M&A completions.

Despite the rapid growth of corporate social responsibility (CSR) in emerging markets, there remains a need in the current literature for deeper insights into the factors influencing CSR practices in these contexts. This study aims to address this research gap and enhance the discourse on CSR in emerging markets by exploring the reciprocal relationship between business and government and its potential role in driving firms’ CSR efforts in these burgeoning economies.

The study is grounded in the theory of reciprocity and integrates insights from existing literature to posit that, within a reciprocal relationship, firms respond positively to government regulatory support by actively participating in CSR initiatives. To test this hypothesis, data from prominent sources, including the CSRHub database, the World Bank’s Ease of Doing Business, and the International Country Risk Guide, are gathered, yielding a sample of nearly 1,500 firms operating in diverse emerging markets. A series of empirical tests are then conducted to validate the existence of the reciprocal relationship and its influence on firms’ CSR efforts.

The findings reveal strong evidence of a reciprocal relationship between business and government in emerging markets. When the government provides favorable regulatory support, firms tend to reciprocate by shouldering greater responsibility in promoting societal well-being, specifically through active participation in CSR initiatives directed toward the well-being of the community in which they operate. These findings are robust across various estimation methods.

The study advances the understanding of CSR in emerging markets and provides valuable insights into the role of reciprocity in promoting CSR in real-world settings. This offers promising avenues for future theoretical and empirical research in the field of CSR.

Policymakers are urged to recognize the significance of business-government relations in fostering CSR. Developing a supportive regulatory environment can motivate firms to invest in CSR, benefiting both businesses and the communities they serve. For businesses, aligning CSR initiatives with community needs can foster a mutually beneficial relationship with the government, leading to greater social benefits and competitive advantages.

To the best of the authors’ knowledge, this study pioneers the application of the reciprocity theory to explain the interplay between business and government in shaping firms’ CSR endeavors in emerging markets.

This study aims to explore how digital intermediaries interact with individual intermediaries to assist corporate social entrepreneurs (CSEs) in building inclusive markets. In response to the challenge of social exclusion, CSEs craft strategies by leveraging their existing capabilities and resources. However, when it comes to building inclusive markets, CSEs face the liabilities of institutional voids and must rely on intermediaries to establish efficient trading channels. This study focuses on the process by which CSEs firstly construct technology affordances of digital intermediaries, and then actualise affordances through the interactions of digital and individual intermediaries in overcoming technology constraints and triggering involvement cycle in the context of rural e-commerce.

Using a single-case study design, the authors unfolded the process of a rural e-commerce project conducted by a Chinese e-commerce giant. The authors interviewed 35 informants from 2016 to 2018; each interview lasted 45–90 minutes. In addition, archival and observational data were collected for triangulation. After thorough examination, the data was coded and a grounded framework was developed.

This study provides a detailed process of how the interactions of digital and individual intermediaries facilitate CSEs in building inclusive markets through a rural e-commerce project. The authors find that CSEs generate corporate strategy in building inclusive markets by constructing three affordances of digital intermediaries: equality facilitator, harmony maintainer and stickiness creator. Subsequently, in actualising these affordances, CSEs fill institutional voids through the interactions between digital and individual intermediaries. Specifically, the technology constraints of digital intermediaries trigger a four-phase cycle involving individual intermediaries: identification, activation, coaching and empowerment. This involvement cycle effectively overcomes the technology constraints of digital intermediaries. The interactions between digital and individual intermediaries facilitate the dual goals achievement of CSEs and finally restructure the market architecture.

Firstly, this study stands among the pioneering research endeavours exploring the interactions between digital and individual intermediaries in facilitating CSEs to develop inclusive markets. Diverging from existing literature, which often enhances or refines the role of a single intermediary in filling institutional voids, the authors posit that digital and individual intermediaries dynamically complement each other in actualising affordances. This complementary dynamic stands as a substitute for the evolution of a single intermediary in building inclusive markets. Secondly, by zooming out the process of constructing and actualising affordances, this study contributes to the literature on technology affordance in both contextual and relational aspects. Contextually, the authors identify three tenets of affordances generated by the corporate strategy of CSEs. Relationally, the authors argue that affordances can be predeveloped by CSEs and then fully actualised through interactions between digital and individual intermediaries, challenging the conventional view that sees affordances as a relational concept solely determined by users and artefacts during the actualisation process. Thirdly, this study makes a contribution by untangling the process of CSEs in reshaping the market context to make it more inclusive. Departing from the conventional focus on the role of institutional intermediaries for CSEs in filling institutional voids, the authors explore how CSEs develop digital intermediaries and induce their interactions with individual intermediaries to restructure market architecture during the process of constructing and actualising affordances. In conclusion, this study adds valuable insights to the literature on institutional voids, technology affordance and CSE in building inclusive markets.

The purpose of this paper is to explore and critically examine the integration of religious perspectives in diversity and inclusion (D&I) initiatives in the context of international business (IB).

This qualitative study used a case study methodology, focusing on an international consulting firm, inspired by Islamic Sufism, and their clients in South Africa and Pakistan. Data were collected through semi-structured interviews with consultants and clients from 25 organizations, participant observations during training sessions, and document analysis. Thematic analysis was used to identify and analyse patterns in the data.

The study revealed that religious ideas and individuals are marginalized in the global business environment through a phenomenon termed “secularchy”. Consultants from the Islamic Sufi-inspired firm had to detach religious elements from their management model to gain acceptance in secular corporate settings. Participants reported that religious perspectives were systematically excluded and those expressing religious viewpoints faced significant barriers. The findings emphasize the need for more inclusive D&I practices that genuinely integrate religious diversity into organizational cultures.

This study introduces the concept of “secularchy” to describe the systemic marginalization of religious perspectives in IB, a novel contribution to the D&I literature. The authors challenge the dominant secular paradigm in global business, advocating for more equitable and inclusive integration of religious diversity in organizational practices.

Our study aims to fill in the gap in corporate strategic silence in the fashion industry. Given the insights into the industry practices, we asked whether important sustainability issues, namely deadstock and overstock, are discussed or disclosed in corporate sustainability reports. We assumed that only the most fashion-forward corporations would address this pressing issue. However, based on our content analysis of sustainability reports of companies listed as the signatories of the UN Global Compact’s Fashion Industry Charter for Climate Action (N = 95), we found out that only one-fifth of them touch the issues to a varied extent. Our study’s results point to a significant discrepancy between the sustainability claims of fashion companies and their communication about overproduction and demonstrate the existence of the shared industry practice of corporate silence strategy concerning uncomfortable issues, such as deadstock and overstock.

We conducted a content analysis of selected corporate reports (N = 95) available publicly on the company’s websites, such as sustainability, environmental or corporate social responsibility reports. Initially, we analyzed the documents to see if they addressed the issue of deadstock. Subsequently, we performed a detailed content analysis using NVivo on these reports, which mentioned the issue of deadstock (N = 23).

Our study reveals strategic silence in the fashion industry regarding deadstock and overstock. Analyzing reports of 95 signatories of the UN Global Compact’s Fashion Industry Charter for Climate Action, only one-fifth address these issues. Our research, employing content analysis with NVivo, indicates a significant discrepancy between sustainability claims and actual communication practices. Most companies focus on recycling or materials management rather than addressing deadstock and overstock directly. The findings highlight an industry-wide practice of strategic silence and the practice of shared corporate silence, avoiding transparent discussion on overproduction and its environmental impact.

This study is limited by its focus on publicly available corporate reports from signatories of the UN Global Compact’s Fashion Industry Charter for Climate Action, which do not fully capture all corporate communication practices (those companies shall be the “pioneers” of sustainability and transparency). Additionally, the reliance on content analysis via NVivo is subject to interpretative biases, and the findings may not be generalizable across all fashion industry sectors. Future research could explore broader datasets, including internal corporate communications and consumer-facing narratives, to provide a more comprehensive understanding of strategic silence in sustainability communication.

Despite ongoing environmental, social and governance (ESG) efforts and sustainability initiatives, this study suggests that fashion corporations may strategically employ collective silence as a communication tactic to avoid addressing complex issues like overproduction and deadstock. This practice can undermine stakeholder trust and transparency. Therefore, fashion companies genuinely committed to sustainability and corporate responsibility should proactively incorporate discussions of unsold goods and overproduction into their ESG, impact and Corporate Sustainability Reporting Directive reports. By addressing these challenges openly, companies can enhance their credibility, foster greater consumer trust and lead the industry toward more responsible and transparent practices.

Our research presents alarming evidence of corporate silence being strategically used to avoid addressing pressing issues in the industry. Several cases have drawn public attention to this problem, such as using the Västerås power plant in Sweden by a fashion conglomerate to incinerate clothes and disposing a vast amount of textile waste in Africa and the Atacama Desert in Chile. Our findings demonstrate that fashion corporations are reluctant to openly address these issues.

Our study analyzes the quiet practice of corporate silence in the fashion industry, especially around deadstock and overstock to emphasize the overproduction problem. Its unique contribution comes from using content analysis and subsequently, cluster analysis with NVivo, offering a new approach to content analysis. This approach helps reveal the gap between what companies communicate about sustainability and what they actually do. The findings add to the discussion on corporate environmental practices, suggesting a need for more transparent and responsible communication in sustainability discourse – focus more on the unsaid than published data.

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

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.

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.

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.

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.

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.

Frugal innovation (FI) is a mechanism companies use to create value from limited resources, aiming to meet the needs of a broad customer segment in emerging markets. This study investigates the impact of FI on sustainable development (SD) in Libya. Data from 112 employees of small and medium enterprises (SMEs) were analyzed using WarpPLS software and structural equation modeling. The findings indicate that while two factors – low cost of frugal innovation (LCFI) and creation of an ecosystem for frugal innovation (CEFI) – do not significantly affect SD, the core functions of frugal innovation (CFFI) significantly impact SD. This work is among the first empirical studies to explore business models for FI and their influence on SD in Libya, contributing to the theoretical and empirical literature on the topic.

The present article aims at systematizing the literature on EM that spans over three decades (1987–2023) to analyze the growth and development in the EM research following changes in reporting standards, economic conditions and legislations over the period.

The study covers 3,742 articles on earnings management (EM) indexed in SCOPUS and the Web of Science databases from 1987 to 2023. The study aims at the systematization of bibliometric data using R Studio, Biblioshiny and VOS Viewer software.

The study reveals that the research in the pre-SOX era gave more thrust to the development of cross-sectional models for the detection of accrual EM proxies, whereas research on EM had shifted to managerial discretions based on real transactions in the post-SOX era. Later, in the post-GFC era, the focus of EM research was redefined towards investor protection due to the collapse of the global economy that led to the erosion of investors’ wealth. In the modern era, research on EM focuses on ethical aspects such as CSR compliance, ESG framework and so on.

The findings of the study will aid the policymakers in addressing the EM based on real transactions and also incorporate the variations and changes in multiple green reporting standards to ensure fairness and transparency in reported figures.

The study contributes to the existing literature by quadrisecting the entire research on earnings management to analyze the growth and development in EM research and makes novel suggestions that future research on earnings management can be expanded towards the role of non-financial disclosure in managerial discretions and also the insider biases in green reporting.

This study aims to investigate the association between corporate social responsibility (CSR) performance and the cost of debt financing (CODF) in Malaysia. It further explores whether the potential impact of CSR performance on debt pricing is moderated by the females’ representation on board and female directors’ foreign experience.

The authors use a sample of 845 firm-year observations from 2017 to 2021 and apply various regression techniques, including the pooled ordinary least squares (POLS), the Heckman two-stage self-selection model, propensity score matching (PSM) and quantile regression, to test the study’s hypotheses.

The results show that socially responsible firms incur lower costs of debt. Similarly, female directors and female directors with foreign exposure are negatively associated with CODF. However, their impact becomes positive when these two variables are interacted with CSR performance. The study findings are robust across alternative measures of board gender diversity, different model specifications and approaches addressing the endogeneity problem. In additional analyses, we find that the positive implication of CSR on CODF is more pronounced for firms with higher CSR performance and less financial constraint. Nevertheless, the results reveal that only firms with lower CSR performance but a high proportion of female directors and female directors with foreign experience exhibit lower CODF. This underscores the likelihood that female directors and their foreign exposure may substitute CSR practices in mitigating the cost of debt.

Existing literature generally emphasises the importance of CSR performance to corporate financing decisions, often neglecting the role of female directors and their attributes in financial institutions’ creditworthiness evaluation. This study is among the first to address this gap by examining the moderating effect of female directors and their characteristics on CSR–CODF relationship within an emerging economy context. The findings contribute to the literature on CSR and board gender diversity, indicating that CSR performance and board gender diversity function more as substitutes than complements. Despite the unexpected consequences of interacting with female directors and their foreign experience with CSR, the study affirms the significance of CSR practices and board gender diversity in shaping borrowers’ financial decisions.