Hassan R. HassabElnaby, Amal Said and Glenn Wolfe
In this study we examine the oversight responsibilities of audit committees in the post Sarbanes‐Oxley Act of 2002 (SOX) era. The results show that audit committee oversight…
Abstract
In this study we examine the oversight responsibilities of audit committees in the post Sarbanes‐Oxley Act of 2002 (SOX) era. The results show that audit committee oversight responsibilities assigned and disclosed in proxy statements expanded post‐SOX compared to pre‐SOX. We design a survey instrument to measure the difference between the perceived oversight responsibilities of audit committee members and the oversight responsibilities actually assigned in the proxy. Our results indicate that although audit committees made a substantial commitment to increase their assigned responsibilities over the period of 2001 to 2004, they still need to do more to meet the many additional challenges facing them in a post‐SOX environment. Overall, our results suggest that the intent of SOX‐for audit committees to be more involved and active in the oversight role of an organization‐is becoming institutionalized. These results should be interesting to policy makers, a variety of interest groups, and accounting researchers.
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Hassan R. HassabElnaby, Emad Mohammad and Amal A. Said
We examine the earnings management implications of using nonfinancial performance measures (NFPM) in executive compensation contracts. We argue and test that when a manager's…
Abstract
We examine the earnings management implications of using nonfinancial performance measures (NFPM) in executive compensation contracts. We argue and test that when a manager's compensation is based on financial and NFPM, he/she has less incentive to manipulate earnings to maximize compensation. Using panel data covering the period 1992–2005, we compare earnings management behavior for a sample of firms that used both financial and nonfinancial measures to a matched sample of firms that based their performance measurement solely on financial measures. The results are mainly consistent with a reduction in earnings management behavior for those firms that rely on NFPM in their compensation contracts.
Amal A. Said, Hassan R. HassabElnaby and Tanya S. Nowlin
The purpose of this paper is to examine the relative and incremental information content of a cash recovery‐based measure of performance, the estimated internal rate of return, vs…
Abstract
Purpose
The purpose of this paper is to examine the relative and incremental information content of a cash recovery‐based measure of performance, the estimated internal rate of return, vs an earnings‐based measure of performance, return on assets, in explaining firms' economic performance.
Design/methodology/approach
The paper uses the cash recovery rate that is based on continuous time analysis and U‐shaped cash flows to derive the estimated internal rate of return and compare it to return on assets. A cross‐sectional sample was used over a short interval (year 1993 and year 2005) and a time‐series sample (1993‐2005) to empirically examine the relative and incremental information content of the competing measures. Tobin's q and stock returns are used as performance benchmarks.
Findings
The results of the empirical tests indicate that the estimated internal rate of return provides better relative and incremental information content over earnings‐based measures of performance. Specifically, the empirical evidence shows that the estimated internal rate of return is consistently positively related to Tobin's q and stock returns over all measurement intervals.
Research limitations/implications
These results imply that earnings‐based performance measures are less value relevant compared to cash recovery‐based measures. There are some limitations that may apply to this study. First, the systematic measurement error in estimating the cash recovery rate may not be independent of the measurement error in the estimated internal rate of return. Second, the performance benchmarks used in the study are not free from problems. Particularly, the return on assets is influenced by firms' rate of growth and the Tobin's q is not a perfect measure of business performance. Therefore, one avenue of future research is to assess the usefulness of financial accounting data for analysts forecast. Moreover, future research may also examine the role of institutional changes in financial reporting and its effect on the quality of earnings and economic performance.
Originality/value
This paper presents extended research on cash recovery‐based vs earnings‐based metrics as proxies for economic return using improved research designs, larger samples and new sensitivity analyses.
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The study investigates the voice behavior of teachers and headteachers in Kuwaiti schools, along with organizational factors associated with teachers’ voice behavior.
Abstract
Purpose
The study investigates the voice behavior of teachers and headteachers in Kuwaiti schools, along with organizational factors associated with teachers’ voice behavior.
Design/methodology/approach
The study employed a convergent mixed-method approach. Questionnaires were administered to a sample of 815 teachers and headteachers, with 28 of them participating in open-ended interviews.
Findings
In quantitative findings, high levels of prosocial voices were observed, while interviews revealed significant occurrences of defensive and acquiescent voice behaviors. Teachers practice prosocial voice behavior to protect students' interests, but various factors, such as individual characteristics, school leadership, hierarchy and governmental decisions at the district levels, influence their voices.
Originality/value
The findings enhance our understanding of voice behavior among teachers and headteachers, shedding light on the factors influencing voice behavior in Kuwait and centralized systems worldwide.
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This study investigated the roles and perspectives of head teachers and principals in regard to the potential for learning loss in the online setting, with a particular focus on…
Abstract
Purpose
This study investigated the roles and perspectives of head teachers and principals in regard to the potential for learning loss in the online setting, with a particular focus on conditions during the coronavirus disease 2019 (COVID-19) pandemic in Kuwait. It also addresses leadership roles and gathered organizational suggestions.
Design/methodology/approach
Structured interviews were conducted with 25 head teachers and 6 school principals, while open-ended questionnaires were gathered from 10 head teachers. Both were focused on the potential for learning loss and the reasons it may be induced. More specific subjects included leadership roles in preventing learning loss and suggestions for improvement. All interviews and open-ended questionnaires were transcribed for a subsequent inductive thematic analysis.
Findings
Participants reported high levels of learning loss in the context of online teaching during the COVID-19 pandemic. Reasons for this included political decisions made by the Ministry of Education (MoE), student attitudes and the learning environment. Participants also reported substantial involvement in leadership roles aimed at the supervision of online teaching, providing training and support for teachers, and communicating with the administration, district and parents. They also provided several organizational suggestions for reducing learning loss, including the need to improve teaching quality, assess MoE policies, and ensure an ethical online learning environment.
Originality/value
The results contribute to a better understanding of learning loss and the leadership roles that are needed to mitigate this issue both in the Middle East and internationally.
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The present study examines how Jordanian Arabic (JA) speakers perceive the borrowing of English verbs in JA. These borrowings occur by two main strategies: morphological…
Abstract
Purpose
The present study examines how Jordanian Arabic (JA) speakers perceive the borrowing of English verbs in JA. These borrowings occur by two main strategies: morphological integration into the JA verb forms by direct insertion or pairing of loan words with a light verb such as ʕamal “do” to facilitate the borrowing, e.g. ʕamal diliit “delete” (literally “do a delete”).
Design/methodology/approach
Speaker perceptions were gathered through interviews with native JA-speaking university students. Each interview consisted of two parts. First, speakers rated the acceptability of integrated verbs, in both their base form and their reflexive alternate. Second, after being presented with proposed integrated forms of verbs most used in the light verb construction (LVC), speakers answered questions about the potential integrability of these unintegrated verbs and the factors that affect it.
Findings
Results of the interviews show that JA speakers prefer integrated loan verbs in their base forms over their reflexive alternates. Most speakers were unwilling to accept proposed integrated forms of the verbs they use in the LVC, citing concerns such as infrequency of use in the community and perceived phonological clashes between the English words and JA.
Originality/value
The integration of loan verbs in Arabic has received limited attention. This study aims to expand our understanding of how loan verbs are integrated in JA and adds a new angle by exploring how speakers perceive the integration process.
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Fahmi Ali Hudaefi and Neni Heryani
This paper aims to study the Pesantren’s role in alleviating the poverty in rural region, and the discussion is connected to the theory of local economic development and Maqāṣid…
Abstract
Purpose
This paper aims to study the Pesantren’s role in alleviating the poverty in rural region, and the discussion is connected to the theory of local economic development and Maqāṣid al-Sharī‘ah.
Design/methodology/approach
This paper engages a case study and an interview to get insight into the subject matters.
Findings
This study finds that the roles of an entrepreneur and a stimulator are evident from the sampled Pesantren in empowering the local economy and the underprivileged community. Further, inasmuch as the fundamental concept of local economic development is in line with Maqāṣid al-Sharī‘ah, the evidence from the sampled Pesantren is also representative of its role in actualising it. This study is relevant for academics, local government in Indonesia and other related stakeholders.
Practical implications
This paper credits both theoretical and practical implications for academics and the government. Firstly, by discussing the concept of prosperity from the Western and Islamic perspective, this paper creates a notion that these theories are harmonisable. Secondly, by sampling a Pesantren to draw how these two concepts are applied to advance a rural economy, this paper comes out with the hands-on advice for Indonesian government to legally engage with the existing Pesantrens to perform its rural development programmes.
Social implications
While a Pesantren’s role in empowering a disadvantaged community is comprehensively investigated, an accurate evidence is documented which can best challenge its radicalism and terrorism issues.
Originality/value
This is the first study to harmonise the theory of local economic development and Maqāṣid al-Sharī‘ah and presents the practical evidence from a Pesantren.