Muhammad Hammad Masud, Faisal Anees and Haseeb Ahmed
The purpose of this research is to examine the effects of corporate diversification on earnings management.
Abstract
Purpose
The purpose of this research is to examine the effects of corporate diversification on earnings management.
Design/methodology/approach
Based on listed firms regarding non-financial sector of Pakistan, the study runs mean comparison test along with panel least squares regression analysis.
Findings
The results of the study suggested that locally diversified firms and combination of industrial and geographical diversified firms mitigate earnings management. In support of the earnings equalizing hypothesis, managers of diversified firms have less need for accruals management because diversified firms had more free cash flows which naturally reduces earnings variability. This study also found that diversified firms had no informational asymmetry problems which reject the asymmetric information hypothesis. In addition, debt ratios are also associated with large organizations, but it shows that the more debt ratios are negatively associated with earnings management. Mean comparison test is also conducted, but the results are same as the regression results which does not confirm asymmetric information hypothesis.
Research limitations/implications
Different business segments are affected by the world financial crisis in 2008. Because of those financial shocks, the diversified firms are affected more. In future studies, results will become more favorable in context of diversified firms.
Practical/implications
The main function of earnings management is to make up the company for investors point of view to look healthier than it really is. But it may cause to disappointment for investors regarding loss of investment. It shows future projections of the company and has vital importance for investor’s perspective.
Social/implications
The misallocation of resources caused by earnings management refers to the value loss for society. Because the misallocation of funds will make that particular segment or division more vulnerable which ultimately make shareholders to go for entrenchment or liquidation. At the end, un-employment rises after entrenchment or liquidation and the society suffers.
Originality/value
This research makes an important contribution to the accounting and management literature by providing new and significantly different evidences on the relative roles of corporate diversification and earnings management.
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Syed Anees Haider Zaidi, Ijaz Hussain Shah, Rana Umair Ashraf, Shahid Mohammad Khan Ghauri and Ibne Hassan
The purpose of this paper is to bring the attention of Muslim world toward uniformity of Shariah principles. The paper also presents different opinions of experts toward…
Abstract
Purpose
The purpose of this paper is to bring the attention of Muslim world toward uniformity of Shariah principles. The paper also presents different opinions of experts toward standardization. Selection criteria of four different Islamic market indices are compared. Some points like Halal business and debt ratio are common, while others are different.
Design/methodology/approach
The qualitative research method has been used in this research work and various types of documents and research articles were analyzed. The authors analyzed the data of four Islamic stock markets in the world. First, they write all the screening criteria of every Islamic stock market for selecting a company for their stock market. Afterwards, they make a table that presents the comparison of screening criteria of all Islamic market indices.
Findings
A Shariah Board of Islamic Market approves any company as being Islamic Shariah-compliant based on certain criteria. Different Islamic market indices use their own criteria for selecting the company. Every Islamic market index has its own rules and regulations of the Shariah Board. Sometimes these rules are contradictory with each other; for example, if KMI-30 Islamic index is not selecting one particular company due to higher debt ratio but Dow Jones Islamic market index selects that company because that company meets the criteria of the Dow Jones Islamic market index.
Research limitations/implications
The main limitation is that there is no approach to regulators of the different Islamic market indices around the globe.
Practical implications
If Islamic indices work on the suggestions provided in this paper, standardized criteria will be available to all indices and, consequently, confidence of the investors and operational issues will be resolved. Investment will be increased.
Social implications
The belief of non-Muslims will be strong that Islamic laws are the same any where. A shift from conventional finance to Islamic Finance will be sped up.
Originality/value
This research work is original and first attempt on the topic of standardization of screening criteria of Islamic stock markets around the globe.
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The current study highlights the dark side of a perfectionist leader hindering in business processes and also investigates its impact on procrastination through workplace…
Abstract
Purpose
The current study highlights the dark side of a perfectionist leader hindering in business processes and also investigates its impact on procrastination through workplace incivility, psychological distress, and psychological detachment by using the tenet of conservation of resource theory. Positivism research philosophy was adopted, followed by a deductive approach.
Design/methodology/approach
The survey technique was used to collect the quantitative data from the employees working in public sector organizations. 364 samples were collected and analyzed using SEM-Mplus techniques, where structured and measurement models were produced and interpreted accordingly.
Findings
The results suggested that perfectionist leaders become a source for their followers to involve in procrastination because of depletion of ego and psychological resources. The results supported the chain of mediation and both paths of perfectionist leaders, workplace incivility, psychological detachment, and procrastination and perfectionist leaders, workplace incivility, psychological distress, and procrastination.
Originality/value
The results and dynamics of the current study provided some meaningful managerial and theoretical implications and future research directions for the researchers. The study contributes significantly to the body of literature since it captures and analyzes the overlooked elements in the context of perfectionist leaders.
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Muhammad Awais Bhatti, Abdulaziz Aljoghaiman, Veera Pandiyan Kaliani Sundram and Arsalan Ghouri
The research objective was to check the impact of industry 4 (I4) technologies on environmental sustainability (ENS) with the mediating role of green supply chain management…
Abstract
Purpose
The research objective was to check the impact of industry 4 (I4) technologies on environmental sustainability (ENS) with the mediating role of green supply chain management (GSCM) of textile companies in Saudi Arabia.
Design/methodology/approach
Data was collected from those respondents who were linked with management and also have knowledge of I4 technologies. The researchers distributed 500 questionnaires among respondents for data collection, 350 questionnaires were received, and used for analysis. The researchers employed the quantitative research approach and cross-sectional research design.
Findings
The results indicate that I4 has a positive effect on ENS and GSCM practices except for green purchasing where I4 has an insignificant impact on green purchasing. On the other hand, GSCM practices also significantly mediate between I4 and ENS except for green purchasing which has an insignificant mediating effect.
Practical implications
This study has a great theoretical contribution to literature as it provides strategic insight to managers as well as policymakers. From the perspective of resource-based view, this study is supportive to use I4 technology practices in GSCM. Furthermore, the current research suggests managers to implement I4 technologies and adopt the GSCM practices. These practices should be part of environmental strategies. The implementation of these practices will assist in building a strong reputation and satisfaction of customers and to fulfill the requisites of stakeholders.
Originality/value
The research was conducted with the extended framework of the mediating effect of GSCM between I4 and ENS of Saudi Arabia textile companies which are considered to be a pioneer study in the extant literature.
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Lanjing Wang and Pratibha Rani
In recent years, a number of researchers have attempted to make an integration of sustainability with supply chain risk management. These studies have led to valued insights into…
Abstract
Purpose
In recent years, a number of researchers have attempted to make an integration of sustainability with supply chain risk management. These studies have led to valued insights into this issue, though there is still a lack of knowledge about the mechanisms by which sustainability-related issues are materialized as risks in the supply chain management.
Design/methodology/approach
The paper aims to provide a comprehensive framework to evaluate the sustainability risk in the supply chain management mechanism. To do so, a novel approach using the double normalization-based multiple aggregation (DNMA) approach under the intuitionistic fuzzy (IF) environment is extended to identify, rank and evaluate the sustainability risk factors in supply chain management.
Findings
To provide comprehensive sustainability risk factors, this study has conducted a survey using interview and literature review. In this regard, this study identified 36 sustainability risk factors in supply chain management of the manufacturing firms in five different groups of risk, including sustainable operational risk factors, economic risk factors, environmental risk factors, social risk factors, and sustainable distribution and recycling risk factors. The results of this paper found that the poor planning and scheduling was the important sustainability risk in supply chain management of the manufacturing firms, followed by the environmental accidents, production capacity risk, product design risk and exploitative hiring policies. In addition, the results of the study found that the extended approach was effective and efficient in evaluating the sustainability risk factors in supply chain management of the manufacturing firms.
Originality/value
Three aggregation methods based on the normalization techniques are discussed. A DNMA method is proposed under intuitionistic fuzzy sets (IFSs). To propose a broad procedure for identifying and classifying sustainability risk factors (ESFs) in supply chain management. To rank the sustainability risk factor, the authors utilize a procedure for evaluating the significance degree of the sustainability risk factor in supply chain management.
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Safa Jallali and Faten Zoghlami
Relying on the agency theory and the financial intermediation theory, the purpose of this paper is to examine to what extent risk governance would improve corporate governance and…
Abstract
Purpose
Relying on the agency theory and the financial intermediation theory, the purpose of this paper is to examine to what extent risk governance would improve corporate governance and risk management effectiveness. The paper especially investigates the mediating role that would have the risk governance mechanisms in explaining both of the following relationships: the corporate governance–the banks’ performance, and the risk management–the banks’ performance.
Design/methodology/approach
This research uses the Baron and Kenny’s (1986) approach to investigate the mediating effect of risk governance; besides, the study refers to structural equation modeling in carrying out the appropriate panel regressions. The data collection was based largely on Bank scope Database, but some missing qualitative data were gathered manually from the banks’ annual reports available on the banks’ websites.
Findings
The study findings illustrate the significant role of risk governance mechanisms in improving both corporate governance and risk management’s effectiveness. Especially, this paper finds that risk governance is fully explaining the corporate governance–bank performance relationship, but risk governance would explain partially the risk management–bank performance relationship. Further, findings suggest that the internal corporate governance mechanisms seem to be more relevant than the external ones in improving the sample bank performance, and that risk management mechanisms seem to impede rather the sample bank performance.
Practical implications
The findings would make an important contribution to the current debate on the need to reinvent the optimal organization of the bank’s board and directorates and would allow readers to develop more cost-effective governance and risk-management thinking. Besides, the findings may help bank deciders and boards to rationalize costs and to focus only on the relevant corporate governance and risk management mechanisms. Finally, findings might illustrate to regulatory instance the importance of recommending risk governance in their coming corporate governance guidance.
Social implications
The global credit crisis of 2008 caused significant difficulties to financial institutions, so it would be worth enlightening practitioners and policymakers, even regulators, on the importance of considering the level of potential risk and risk monitoring as a key component in the decision-making process, to strengthen the stability and resilience of banks in an increasingly uncertain environment.
Originality/value
The issues raised in the paper are important in that Islamic banking is an integral part of the global banking and finance industry. This paper extends the knowledge of the potential importance of the new concept of risk governance with specific reference to Islamic banking industry peculiarities. It also provides a telling illustration of the need for the enhancements of the Basel Committee’s prudential requirements as well as the accounting and auditing organization for Islamic financial institutions and Islamic Financial Services Board set out especially regarding the consideration of risk in the strategic decision process.
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Vania Vigolo, Giorgio Mion and Patrícia Moura e Sá
Responsible management of water resources is critical owing to its effects on the environment and society. This study aims to address customer perceptions of a water utility…
Abstract
Purpose
Responsible management of water resources is critical owing to its effects on the environment and society. This study aims to address customer perceptions of a water utility during a severe environmental crisis that affected northern Italy and aims to deepen the understanding of the relationship between corporate social responsibility (CSR), perceived crisis response and corporate reputation.
Design/methodology/approach
This study draws on legitimacy theory and attribution theory, adopting a quantitative design. In detail, a moderated mediation model is used to investigate the direct effect of CSR on reputation, the mediating effect of perceived crisis response on the relationship between CSR and reputation and the moderating effect of blame attribution on the relationship between CSR and perceived crisis response. In addition, the evolution of the crisis event and its management is traced through the analysis of the water utilities’ sustainability reports published since the beginning of the crisis.
Findings
The findings show that CSR affects corporate reputation directly and via perceived crisis response. In addition, CSR improves perceived crisis response, especially when an organization is held responsible for a crisis. The analysis of the CSR report allows for understanding the evolution of CSR policies of water utilities, shifting attention from a merely informative role of sustainability disclosure to a more comprehensive approach to perfluoroalkyl substances risks in the struggle of contributing to sustainable development. Theoretical and managerial implications are also discussed.
Practical implications
The findings suggest some managerial implications about the usefulness of adopting CSR for crisis management and, furthermore, the importance of communicating CSR policies to all stakeholders overall – the customers of public utilities.
Originality/value
This paper focuses on the relationship between CSR, reputation and blame attribution. Literature on this topic is still scarce overall in the field of public utilities. Furthermore, this study is relevant because it faces one of the major European environmental crises that affected the water sector and provides helpful insights for all public utility sectors and, more generally, for environmental crisis management.