F.N.S. Vermaak and C.J. Cronjé
This paper illustrates the potential of the balanced scorecard as an instrument for accounting educators to guide, stimulate and sustain efforts in respect of planning and…
Abstract
This paper illustrates the potential of the balanced scorecard as an instrument for accounting educators to guide, stimulate and sustain efforts in respect of planning and improvement in the accounting education environment. The results of the reported survey among the heads of eleven accounting departments at South African universities support the potential applicability of the balanced scorecard in this regard.
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Rose Ogbechie and Nicholas Anakwue
The demand for sustainability in business and sound management training is becoming more resonant in a steadily evolving Africa. With a vast expansion of Africa’s socio-economic…
Abstract
The demand for sustainability in business and sound management training is becoming more resonant in a steadily evolving Africa. With a vast expansion of Africa’s socio-economic base, and viable possibilities for technological, social and economic development, the balancing influence of management ethics cannot be overstated. The historical lessons from the Western business world in corporate scandals and financial misdemeanour clearly reveal to the emergent economies and businesses of developing Africa the weighty costs of unethical business practice. People require that business firms conduct their business responsibly. Developing ethical business practices, therefore, becomes crucial. With Africa’s cultural diversity of peoples, places and values, business practices are strongly influenced by indigenous values and trends. It is important to understand and situate indigenous ethical principles and practices in Africa within the framework of business. This chapter, therefore, aims at critically discussing what ethics in management means for a developing Africa. We will also discuss the ethical principles, to be seen as a metaphysical unity of values, of ideals, and especially, of character and community. The chapter will then highlight select cases reflecting ethical practices of management in African business, making sure to emphasise the necessity of business ethics to corporate sustainability.
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Chimwemwe Chipeta, Hendrik P. Wolmarans, Frans N.S. Vermaak and Stacey Proudfoot
This paper aims to test the effects of financial reforms on the structural stability of the parameter estimates in the determinants of capital structure.
Abstract
Purpose
This paper aims to test the effects of financial reforms on the structural stability of the parameter estimates in the determinants of capital structure.
Design/methodology/approach
A panel of 100 non‐financial companies listed on the Johannesburg Stock Exchange is constructed, and a panel least squares estimation technique is used to test for lagged, current and leading structural breaks in the firm specific determinants of leverage.
Findings
The results show that structural reforms have a significant role in influencing the empirical relationship between leverage and its determinants. Specifically, the lifting of international sanctions and stock market liberalisation have a significant impact on the stability of the profitability, growth and tax rate variables for the book and market values of the debt to equity ratio. Furthermore, when the total and short term debt ratios are considered, only stock market liberalisation appears to have a significant influence on the stability of the profitability parameter.
Originality/value
This paper adds to the existing body of literature on capital structure by documenting the extent of structural breaks in the parameter estimates of the relationship between leverage and firm specific determinants of capital structure for listed non‐financial firms in South Africa.
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Caroline de Oliveira Orth and Antônio Carlos Gastaud Maçada
This paper aims to investigate how the literature has been addressing the relationships between corporate fraud and executive behavior and corporate fraud and information…
Abstract
Purpose
This paper aims to investigate how the literature has been addressing the relationships between corporate fraud and executive behavior and corporate fraud and information technology (IT) controls.
Design/methodology/approach
A systematic literature review was performed following the planning phases proposed by Levy and Ellis (2006), illuminated by the research onion, developed by Saunders et al. (2007).
Findings
The main findings of the studies analyzed refer basically to models to assess the risk of fraud. These risks originate from the market, from the organization itself or from individuals and also from their relationship networks. Subsequently, the main risks identified by the authors were classified according to their origin, the main theories approached and the “solutions” for the risks presented by the authors as the product of their work.
Research limitations/implications
It should be noted that this study is not free of limitations, of which two stand out: the full body of articles on the subject was certainly not evaluated. Although the search has been systematic and judicious both by the combination of keywords for the searches, as well as by the use of the main databases and also by the rigor in the description of the procedures and the analysis of the articles in the light of Research Onion was based on the authors’ knowledge that may have been limited in some respect.
Practical implications
As a practical implication, there is the relationship of red flags and their classification by origin, as they can be very useful for planning the work of internal and external auditors.
Social implications
It is considered that this work can be a starting point for scholars who are interested in the corporate fraud phenomenon, given that the data was collected and organized systematically.
Originality/value
The analysis of the articles in relation to Research Onion shed light on the main philosophical and methodological characteristics of the studies. Also, regarding the relationships between corporate fraud and IT controls, existing scientific research appears to be limited. Searches for the terms information technology and information systems were extended, as well as search strings tested with the terms data governance and IT governance without results. This fact demonstrates that there may be (as far as the results have reached) a vast area of research on corporate fraud in the field of systems knowledge and information technology.
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Albert Anani-Bossman and Isaac Tandoh
Much of public relations scholarship in the last three decades has been dominated by discussions about best practices. Theories developed over the years have often been based on…
Abstract
Purpose
Much of public relations scholarship in the last three decades has been dominated by discussions about best practices. Theories developed over the years have often been based on western practices with little focus on emerging economies such as Africa. The growing call for a shift to a new system, especially from a non-western perspective has resulted in scholars examining public relations scholarship and practice in other jurisdictions, particularly in Asia. The onset of globalisation increased the scholarly discussion on public relations theorising, with culture playing a significant role in these discussions. This paper undertakes a review of the various discussions on public relations theorising due to globalisation and discusses its implications for public relations scholarship and practice in Africa.
Design/methodology/approach
The paper approaches the issue by examining relevant literature on globalisation and societal changes, public relations theorising, and the African worldview.
Findings
The paper concludes by proposing an African public relations framework that reflects the African worldview. The framework proposes that African public relations can be premised on four levels, humanist, relational, communalist, and strategic.
Research limitations/implications
This research is limited in the sense that the proposed framework has not been empirically tested for verification. It offers scholars the opportunity to empirically test it within the African setting.
Practical implications
The framework presents an opportunity for practitioners to review public relations practice within the African context.
Originality/value
The paper's originality is premised on the development of a public relations framework premised on African social values.
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Apoorva Arunachal Hegde, Venkateshwarlu Masuna, Ajaya Kumar Panda and Satish Kumar
This paper aims to conduct bibliometric analysis on the studies dealing with capital structure’s speed of adjustment (SoA) and identify the prominent themes while suggesting…
Abstract
Purpose
This paper aims to conduct bibliometric analysis on the studies dealing with capital structure’s speed of adjustment (SoA) and identify the prominent themes while suggesting future research directions in the area. The existing reviews broadly focus on the capital structure, which provides the scope for conducting a review on this sub-aspect of capital structure.
Design/methodology/approach
This study uses a three-stage process to conduct this review: identification of academic journals, selection and analysis of target papers. This study uses a combination of bibliometric tools and a system thinking approach to assess the current status of publications and emerging themes within the literature.
Findings
This study has found a progressive evolution of SoA in capital structure research from 1984 to 2021. Studies largely focus on implementing the dynamic models to analyse the impact of adjustment costs, dynamic economic conditions, corporate governance practices and other variables on the firms’ adjustment speed and financial decisions. The network analysis of citations, keywords and clusters gives further knowledge on the intellectual structure of the data.
Research limitations/implications
This study is highly dependent on the papers available within the SCOPUS database. Studies not included herein are not part of this analysis, which may or may not bear an effect on the study’s findings.
Originality/value
To the best of the authors’ knowledge, the application of systems engineering concept of “system thinking approach” to identify literature gap and suggest directions for forthcoming research is the first of its kind, thus adding a novel and multidisciplinary aspect to this study.
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This paper aims to review and analyze the validity and relevance of the conceptualization of the Balanced Scorecard (BSC) model, especially within an African context. The BSC…
Abstract
Purpose
This paper aims to review and analyze the validity and relevance of the conceptualization of the Balanced Scorecard (BSC) model, especially within an African context. The BSC model was developed to address the problems and limitations of relying solely on traditional financial measures. This paper carries out a critical review and detailed analysis on perspectives surrounding the BSC model.
Design/methodology/approach
The paper critically reviews relevant literature on the BSC model by focusing on the pertinent issues surrounding the applicability of the BSC model in modern business environment. A critical review of conceptualization issues regarding the BSC model especially with a focus toward its application within an African framework was also done.
Findings
It is established that the BSC model plays a pivotal role in assisting business executives in making holistic long-term management decisions. However, the model puts undue emphasis on shareholders’ wealth maximization at the sacrifice of other equally important stakeholders. The model puts less emphasis or completely ignores such stakeholders as competitors, suppliers, lenders, government, the local community and the natural environment. The model is fraught with many conceptualization assumptions that are not realistic in the modern environment.
Practical implications
It is envisaged that the study should add to the literature on corporate performance measures and the BSC model. The revelations gained through this paper will enable researchers to have an open mind on the way the BSC model is supposed to be modified and applied for various business environments.
Originality/value
The revelations of the paper point out application limitations of the BSC model, there is an imperative need to upgrade and redesign the BSC model to reflect realities of modern business activities, especially within an African context.
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Hans Vermaak and Léon de Caluwé
The colors of change is an overview of change paradigms, created about two decades ago, that has been intensively used, tested, refined, shared, and elaborated by practitioners…
Abstract
The colors of change is an overview of change paradigms, created about two decades ago, that has been intensively used, tested, refined, shared, and elaborated by practitioners and academics alike. Here, the “color theory” is presented as it is now, and is situated within the literature. Its four main applications are described as well as rules of thumb that have been derived from reflective practice. This chapter illustrates that the color theory is clearly not one thing to all people, as it is understood in very different ways, both in terms of its theoretical foundations as well as the complexity of its applications. This probably adds to the versatility of the theory. Bringing together key insights about the color theory for academics and practitioners, this chapter strives both to give a concise overview and to explore its richness.
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Chimwemwe Chipeta and Chera Deressa
The purpose of this paper is to examine the effects of firm- and country-specific factors on the dynamics of capital structure for a new data set of firms in Sub-Saharan Africa.
Abstract
Purpose
The purpose of this paper is to examine the effects of firm- and country-specific factors on the dynamics of capital structure for a new data set of firms in Sub-Saharan Africa.
Design/methodology/approach
Panel data estimation techniques are carried out on a set of 412 firms from 12 countries within Sub-Saharan Africa.
Findings
The results show that firm- and country-specific factors play an important role in the choice of debt for firms in Sub-Saharan Africa. First, firm profitability is the most common significant predictor of capital structure for firms in Sub-Saharan Africa. The significance and magnitude of profitability coefficients is more pronounced in countries with the least developed banking and stock markets and the weakest legal systems. Second, the rule of law in Nigeria and Zimbabwe provides avenues for firms in these countries to increase their debt maturity structures. The choice of debt for firms in Ghana is significantly influenced by the strength of the legal rights, the time to enforce a contract and the cost of contract enforcement. Third, capital structure adjustment speeds in all the sampled countries are relatively slow, possibly due to the market imperfections associated with the underdeveloped financial markets of Sub-Saharan Africa. Lastly, firms in the most developed stock markets of Sub-Saharan Africa tend to have lower mean debt ratios and faster capital structure adjustment speeds. Similarly, firms in countries with strong legal mechanisms tend to have higher mean long-term debt ratios and faster capital structure adjustment speeds.
Originality/value
This paper explores the influence of firm-level and country-specific factors on the dynamics of capital structure for a new data set that was previously ignored in the literature.
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Timothy Cogley and Richard Startz
Standard estimation of ARMA models in which the AR and MA roots nearly cancel, so that individual coefficients are only weakly identified, often produces inferential ranges for…
Abstract
Standard estimation of ARMA models in which the AR and MA roots nearly cancel, so that individual coefficients are only weakly identified, often produces inferential ranges for individual coefficients that give a spurious appearance of accuracy. We remedy this problem with a model that uses a simple mixture prior. The posterior mixing probability is derived using Bayesian methods, but we show that the method works well in both Bayesian and frequentist setups. In particular, we show that our mixture procedure weights standard results heavily when given data from a well-identified ARMA model (which does not exhibit near root cancellation) and weights heavily an uninformative inferential region when given data from a weakly-identified ARMA model (with near root cancellation). When our procedure is applied to a well-identified process the investigator gets the “usual results,” so there is no important statistical cost to using our procedure. On the other hand, when our procedure is applied to a weakly identified process, the investigator learns that the data tell us little about the parameters – and is thus protected against making spurious inferences. We recommend that mixture models be computed routinely when inference about ARMA coefficients is of interest.