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There are variations in religious social norms and legal environments around the world. In this paper, we aim to examine the interaction between variations in religious social norms and legal environments on real activities manipulations and expense misclassification using a global sample of 63 countries. Our inquiry is motivated by a paucity of research on the interaction between legal environment and religion on earnings management practices in an international setting.

This study draws on a global sample of 63 countries to examine the effect of variations in religious social norms and legal environments on the trade-off between expense misclassification and real activities earnings management practices. Firm-specific financial data come from Global Compustat. Religion data are obtained from World Values Surveys of the World Bank. We obtain legal environment scores from the International Country Risk Guide.

Findings suggest that the interaction between law and religion serves as constraints on both classification shifting and real activities manipulation around the world. We find that religion strengthens the weak legal environment and the strong legal environment strengthens the weak religious environment to decrease both real activities manipulation and classification shifting when law and religion interact in an international setting. Therefore, our results contradict Zang's (2012) earnings management trade-off evidence. Again, our results contradict Malikov et al.’s (2018) evidence that mandatory International Financial Reporting Standards (IFRS) adoption is associated with increased real activities manipulation.

The study is limited to 63 countries limiting the generalizability of the findings.

This study provides novel evidence and shows that there is a link between law and religion. The interaction between law and religion decreases expense misclassification and real activities manipulation. We contribute that the interaction between religion and law benefits firms and increases shareholder value as real activities manipulation decreases. Therefore, strengthening the legal environment will complement religion, IFRS and other monitoring mechanisms put in place to mitigate unethical expense misclassification and real activities earnings manipulation around the world.

This paper examines the moderating role of firms’ litigation environment on the association between gender diversity and financial reporting quality.

This study draws on a sample of US firms to examine the moderating role of firms’ litigation environment on the association between gender diversity and financial reporting quality. Firm-specific financial data come from Compustat. To measure the firms’ litigation environment, we use state-level datasets from the Lawsuit Climate Survey conducted for the US Chamber Institute for Legal Reform by the Harris Poll.

Findings suggest that firm litigation environment moderates gender diversity, as defined by female members on the board to subdue our first proxy for financial reporting quality (accruals-based earnings management), but our second proxy for financial reporting quality (real-activities manipulations) increases in a firm’s litigation environment. To the extent that our results hold after controlling for firms’ reputation indicates that female members on the board are sensitive to reputational loss and protect firms’ reputation in a litigation environment.

The study is based on a specific country, limiting the generalizability of the findings.

The findings provide support for promoters and advocates of gender diversity in corporate boards. Specifically, it shows the importance of gender diversity policies in business and society.

This study is the first to examine the moderating role of firms’ litigation environment on the association between gender diversity and financial reporting quality. The study provides novel evidence and shows that the litigation environment moderates gender diversity to improve financial reporting quality in the short-term (by decreasing accruals manipulation). In firms’ litigation environment, when female members on the board are restrained from engaging in accruals earnings management, they shift to value-destroying and costly real activities to maintain reputation and firm performance. To the extent that we control for the potential effects of firms’ reputation and financial performance, our findings suggest that ethical concerns are likely to drive female members on the board to produce high-quality financial reports.

This study examines the perceptions of technical and vocational education and training (TVET) teachers about the factors that influence the reputation of TVET in Ghana.

Quantitative and qualitative data were collected from 680 TVET teachers in Ghana using a survey instrument that included an open-ended section that required participants to provide written comments. The quantitative data gathered were analysed by way of the fuzzy analytic hierarchy process (FAHP), while the written narratives of participants were evaluated using thematic analysis. The quantitative and qualitative data analysed were subsequently integrated using a four-stage pillar integration process (PIP), which included listing, matching, checking and pillar building.

The findings show that TVET teachers’ perceptions regarding the factors influencing the reputation of TVET in Ghana include investment in infrastructure and learning resources; collaboration between TVET institutions and industries; public perceptions of TVET prospects; occupational standards; testing and certification; pedagogical approaches; students’ academic coping abilities; gender and equity considerations and labour market information requirements. Furthermore, state policies regarding student access, funding models, curriculum reform, investment in TVET teacher education and professional development as well as the remuneration, motivation and working conditions of TVET teachers, significantly influence the reputation of TVET in Ghana.

This study contributes to the scholarly discourse on the reputation of TVET and how the sector could be improved to attract more learners who can contribute meaningfully to the development of Ghana. The findings illustrate how human capital theory and the concept of reputation in its expansive form, which includes social factors, culture, time and space, are jointly linked to skills development, employability, and public acceptance of TVET. To address the issues concerning the reputation of TVET, this study recommends, among others, that issues concerning student access, gender and equity and collaborations between TVET institutions and industry should be improved.