The objective of this study aims at reviewing a synthesis of the economic impact of the implementation of International Financial Reporting Standards (IFRS) in an attempt to…
Abstract
The objective of this study aims at reviewing a synthesis of the economic impact of the implementation of International Financial Reporting Standards (IFRS) in an attempt to provide directions for future research. There are significant evidences of adopting a high-quality set of harmonised accounting standards (i.e. IFRS) fosters trade and foreign direct investment (FDI), financial transparency, and comparability and reduces information asymmetries. From the extensive structured review of literature using the Scopus database tool, the study reviewed 108 articles, and in particular, the topic-related 41 articles were analysed. Seven journals contribute to 39% of the articles (The Accounting Review; European Accounting Review; International Journal of Accounting; Journal of Accounting Research; Revista Espanola de Financiacion y Contabilidad; Asian Review of Accounting; and International Journal of Economics and Management). However, most of the cited journals were Journal of Accounting Research, The Accounting Review, European Accounting Review, and International Journal of Accounting (Armstrong, Barth, Jagolinzer, & Riedl, 2010; Brüggemann, Hitz, & Sellhorn, 2013; Christensen, Lee, & Walker, 2007; Daske, Hail, Leuz, & Verdi, 2008, 2013). Most of the studies did not use any theory, and most of the articles utilised quantitative approach. The study calls for future research on the theoretical impactions on the economic impact of IFRS implementation in a country-specific study, cross-country study, and global study. Future studies should also focus on the policymaking agenda for the local and international standard setters.
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Heni Fitriani and Saheed Ajayi
This study investigates the requisite measures for enhancing sustainability practices within the Indonesian construction industry based on professional perspectives.
Abstract
Purpose
This study investigates the requisite measures for enhancing sustainability practices within the Indonesian construction industry based on professional perspectives.
Design/methodology/approach
This study used quantitative approach for data collection. A survey was conducted, using a questionnaire completed by 482 Indonesian construction professionals as a research instrument, and data were analyzed through reliability and exploratory factor analysis.
Findings
The findings suggest that for sustainability practices to become widely implemented within the Indonesian construction industry, certain measures are required. These include the need to raise awareness through education, development of standardized benchmarks, and the implementation of appraisal systems by the government, professional bodies, and academic institutions. These approaches are expected to build capacity and enhance the knowledge of sustainability among construction professionals and their clients. In addition, sustainable construction practices could be encouraged through a subsidized green market, which could be finalized supported by the government from financial penalties levied against non-sustainable practices.
Originality/value
By implementing the underlying strategies within the Indonesian construction industry, the poor knowledge, awareness, implementation, and motivation for sustainable practices within the Indonesian construction industry could be addressed, thereby reducing the environmental impacts associated with buildings and construction activities.
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Muliadi Muliadi, Mas'ud Muhammadiah, Kasma F. Amin, Kaharuddin Kaharuddin, Junaidi Junaidi, Berlin Insan Pratiwi and Fitriani Fitriani
This study aims to investigate how social capital (e.g. cognitive and relational) influences students’ trust (e.g. cognitive and affective) as mediator variables, affecting…
Abstract
Purpose
This study aims to investigate how social capital (e.g. cognitive and relational) influences students’ trust (e.g. cognitive and affective) as mediator variables, affecting students’ information sharing activity on Facebook.
Design/methodology/approach
The sample consists of 398 valid participants obtained through an online survey and using structural equation modeling (SEM) to test the research hypotheses.
Findings
The empirical results indicate that social capital has significant and positive effects on students’ trust (e.g. cognitive and affective-based trust), also mediator variables. Furthermore, the mediator variables partially mediate social capital and information sharing based on the concept of cognition-affection-behavior (CAB).
Research limitations/implications
This study was limited to Indonesian students. Therefore, future study is needed to analyze across cultures and regions. It can help practitioners, regulators and researchers to observe the dynamic behavior on the impact of social capital on social media users’ activities.
Practical implications
Education stakeholders (e.g. lecturers and teachers) can identify the students’ goal and rational concerns to improve their social capital and trust to share information. The government as a regulator needs to support students’ activities on social media to provide updated information regarding economic and social conditions during and after the COVID-19 pandemic.
Originality/value
This study contributes to the literature on virtual communities. Specifically, it considers how social capital influences trust, which subsequently affects information sharing based on the CAB context among Indonesian student’ Facebook users.
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Bahtiar Bahtiar, Ida Ayu Kade Sri Widiastuti, Dwi Nopriyanto, Nurlaila Fitriani, Khumaidi Khumaidi, Arief Andriyanto and Iskandar Muda
The purpose of this study is to explore the lived experiences of the constraints of older adult family caregivers with chronic diseases in caring for and accessing health services…
Abstract
Purpose
The purpose of this study is to explore the lived experiences of the constraints of older adult family caregivers with chronic diseases in caring for and accessing health services during the COVID-19 pandemic.
Design/methodology/approach
This study used the descriptive phenomenology qualitative method. The sampling method was purposive sampling involving 16 older adult family caregivers.
Findings
The results of this study showed three themes such as difficulties in health services in hospitals during the COVID-19 pandemic (complaints of services provided by doctors, older adult treatment control problems and difficulty getting to hospital health facilities); difficulties accompanying taking older adult medicine (older adult non-compliance response to taking medication and older adult medicine assistance); and psychosocial complaints caring for and accompanying the older adult (negative emotions for the older adult, difficulty interacting with the older adult and the economic burden of caring for the older adult).
Practical implications
Barriers to family caregivers in caring for older adults with chronic diseases can help health-care service providers understand and support families caring for and assisting older adults, which may contribute to the quality of life and care for both family caregivers and older adults.
Originality/value
This study showed that Indonesian family caregivers faced difficulties caring for and living with older adults with chronic diseases during the pandemic. Family caregivers’ experiences are essential when developing an intervention to support and manage health care for older adults with chronic illnesses.
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Sahrian Aditya Rahmatulloh, Nadia Anridho, Sri Ningsih, Nurul Fitriani and Siew Peng Lee
This study aims to investigate the influence of CEO career variation as one of the internal factors influencing the decision-making in environmental, social and governance (ESG…
Abstract
Purpose
This study aims to investigate the influence of CEO career variation as one of the internal factors influencing the decision-making in environmental, social and governance (ESG) disclosure.
Design/methodology/approach
Using data from Indonesian nonfinancial companies publicly listed on the Indonesia Stock Exchange from 2018 to 2021, this study uses a quantitative analysis approach to explore the relationship between CEO career variation and ESG reporting decisions.
Findings
This study reveals that CEOs who have greater career variety exhibit reduced involvement in ESG disclosure, in which a relationship is particularly pronounced in young firms but reversed in older ones where CEO career variety correlates positively with ESG disclosure.
Research limitations/implications
This study is limited to nonfinancial companies in Indonesia, and the voluntary nature of ESG reporting during the chosen period may impact the generalizability of findings. Future research could explore other contextual factors and extend the investigation to different industries or regions.
Practical implications
This study finds that CEOs with diverse career backgrounds tend to disclose less ESG information, implying that shareholders should consider candidates’ backgrounds and experiences when selecting future CEOs. This highlights the importance of choosing CEOs with relevant experience to ensure a strong commitment to sustainable business practices and social and environmental goals.
Originality/value
This study applies the upper echelon theory to investigate the previously unexplored relationship between ESG disclosure and CEO careers in a variety of industries, employers, functions and countries.
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Yani Permatasari, Suham Cahyono, Amalia Rizki, Nurul Fitriani and Khairul Anuar Kamarudin
This study aims to examine the joint effect of accounting background and cross-membership of Islamic Supervisory Board (ISB) members on bank investment efficiency.
Abstract
Purpose
This study aims to examine the joint effect of accounting background and cross-membership of Islamic Supervisory Board (ISB) members on bank investment efficiency.
Design/methodology/approach
This study uses data collected from 36 Islamic banks across 15 countries globally, spanning the period from 2012 to 2021. This research uses an ordinary least squares regression and a comprehensive set of endogeneity and robustness tests.
Findings
The findings show a negative relationship between the accounting background of ISB members and investment efficiency. However, when ISB members with accounting backgrounds also have ISB cross-memberships, the banks exhibit high investment efficiency. These results suggest that ISB cross-membership plays a crucial role in facilitating Islamic banks’ access to timely information on investment opportunities. This enables ISB members with accounting expertise to thoroughly assess the benefits and risks associated with their investment prospects. These findings imply that ISB members with accounting backgrounds and cross-memberships have greater motivation and thoughtful considerations for making better investment decisions. Consequently, Islamic banks are better positioned to undertake high profitable investment projects, which enhance their investment efficiency.
Practical implications
The current study holds immense value for Islamic bank management in their selection of ISB members who possess an accounting background and cross-membership.
Originality/value
This study delves into a comprehensive investigation of the proficiency, underlying principles and unique characteristics exhibited by ISB members with an accounting background. Moreover, this study acknowledges the burgeoning global prominence of Islamic banks.
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Wided Bouaine, Karima Alaya and Chokri Slim
The objective of this paper is to study the impact of political connection and governance on credit rating and whether there is a substitution or complementary relationship…
Abstract
Purpose
The objective of this paper is to study the impact of political connection and governance on credit rating and whether there is a substitution or complementary relationship between them.
Design/methodology/approach
In order to achieve the objective, a succession of eight ordered probit regressions has been carried out. Moderating variables between the political connection and governance characteristics were introduced. The whole population is taken as a sample, i.e., 27 Tunisian companies that are evaluated by FITSH NORTH AFRICA agencies over a period of 10 years (2009–2018).
Findings
The outcomes are mixed. They show that the political connection does not always influence credit rating; the size and board independence always improves credit rating; the duality between the functions affects credit rating; whereas the majorities’ proportion does not influence credit rating; and a substitution between the political connection and the governance characteristics is validated.
Research limitations/implications
Like any other research, our results are factors of our measures and variable choice and depends heavily on the how these variables were conceived. Also, although our number of observations responds to the statistical result generalization requirements, our sample remains relatively narrow with 27 companies only.
Practical implications
In practice, the research will allow investors to have a better vision upon the future of their investments based on whether to develop their governance system or promote political networking. It will also prompt lenders to look beyond ratings and consider factors such as political connections to make a rational judgment on their future placements.
Social implications
This study leads us to find various solutions: the establishment of credit agencies that take into consideration all the data of all the operators taken as a whole (bank, leasing company, and factoring). It encourages the reorganization of the Tunisian banking sector through mergers for example.
Originality/value
This study is a pioneer in the credit rating field in Tunisia, where the source of debt financing is the most used by all enterprises across all sectors. This study extends the literature of political connection effectiveness, independent directors, board size, in improving corporate performance and credit rating.
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Cynthia Afriani Utama, Sidharta Utama and Fitriany Amarullah
The purpose of this study is to investigate simultaneous relations between corporate governance (CG) practice and cash flow right, cash flow leverage (the divergence between…
Abstract
Purpose
The purpose of this study is to investigate simultaneous relations between corporate governance (CG) practice and cash flow right, cash flow leverage (the divergence between control right and cash flow right of controlling shareholders). The two ownership measures reflect alignment and expropriation incentives of controlling shareholders. This study also examines the effect of multiple large shareholders (MLSs) on CG practice.
Design/methodology/approach
The study uses publicly listed companies (PLCs) excluding those from the Indonesian finance sector during 2011-2013 as the samples of the study. Two-stages least squares regression models were used to test the simultaneous relations between CG practice and ownership structure variables. The study develops a CG instrument to measure CG practice based on ASEAN CG Scorecard, that comprehensively covers OECD CG principles and that can be used for panel data.
Findings
CG practice has a positive influence on cash flow right and has a marginally negative impact on cash flow leverage, while cash flow right and cash flow leverage have a marginally negative impact on CG practice. Further, the existence of large MLS complements CG practice, but as the control right of the second largest shareholders becomes closer to the largest shareholder, the complement relation becomes less important. State- or foreign-controlled PLCs practice better CG than other PLCs.
Research limitations/implications
Studies on CG/ownership structure need to treat CG and ownership structure as endogenous variables in their research design. In addition, the level of rule of law in a country should be taken into account when examining the relation between CG and ownership structure. The interrelation among CG, ownership structure, capital structure and firm performance has been studied in the context of dispersed ownership structure and strong rule of law. Thus, future study needs to examine the interrelation among these four concepts in countries with high concentrated ownership and weak rule of law.
Practical implications
To minimize the risk of expropriation, investors in the capital market need to select shares of PLCs that practice CG suitable for the ownership structure of PLCs, have high ownership by the largest shareholder and have no divergence between control and ownership right, and or have MLSs. PLCs may need to choose the level of CG mechanism in the context of their ownership structure and consider the benefits and costs implementing them.
Social implications
The study supports the “one size does not fit all” perspective on CG and, thus, it supports the recently enacted financial service authority (FSA) rule requiring PLCs to follow the “comply or explain” rule on the CG code for PLCs. The FSA needs to enforce the compliance of PLCs with CG rules and encourage PLCs to implement CG in substance, not just in form. To strengthen the positive impact of good CG practice in attracting investments in capital market, the regulator needs to improve investor protection rules and ensure strong rule of law.
Originality/value
The study is the first to examine the simultaneous relation between CG practice and both cash flow right and cash flow leverage of the largest shareholder. It is also the first that investigates the impact of MLS on CG practice. It explores the complement and substitution relation between the two concepts in reducing agency costs. In term of research design, the study develops a CG instrument that is based on OECD CG principles, that can be used for panel data and that uses public information.
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Dahlia Sari, Sidharta Utama, Fitriany and Ning Rahayu
The purpose of this paper is to examine the existence of income shifting using the practice of transfer pricing (TP), not only in sales but also in purchase and management service…
Abstract
Purpose
The purpose of this paper is to examine the existence of income shifting using the practice of transfer pricing (TP), not only in sales but also in purchase and management service transactions, in Asian developing countries. The paper also investigates the role of the specific anti-avoidance rules (SAAR) in preventing TP practices in various types of transaction.
Design/methodology/approach
The research employs panel data from a sample of 200 subsidiaries in ten countries over the period 2010–2014.
Findings
Different results were obtained from previous research on developed countries, which found that TP practice was proven in sales transactions. This study finds no evidence for TP practices in sales transactions, but that they do take place in purchase, management service fee and management services revenue transactions. The study also finds evidence that SAAR reduces the practice of TP in sales transactions.
Originality/value
The research investigates TP practices, not only those related to sales, but also to purchases, management service fees and management service revenue to related parties. The sample comprises multinational subsidiaries located in Asian developing countries that have rarely been investigated in previous studies. This research examines the effect of SAAR in preventing TP practices in various types of transaction and develops scoring based on an instrument that integrates each SAAR rule/requirement.
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Natasya Fitriani Putri, Affan Hameed, Meryem Akin, Isik Akin, Muhammad Zubair Khan, Satya Banerjee and Syed Muhammad Taqi Zaidi
This study examines the dynamics of the modesty-conscious market within the global fashion industry. Specifically, the research aims to understand and analyse the preferences of…
Abstract
Purpose
This study examines the dynamics of the modesty-conscious market within the global fashion industry. Specifically, the research aims to understand and analyse the preferences of consumers in this market segment and provide guidance for fashion companies seeking to engage with this sizable audience consumer demand for modest fashion, such as loose-fitting garments and headscarves for women.
Design/methodology/approach
Employing a mono-method quantitative research approach, this study uses a comprehensive big data analytics framework to analyseashion data sets obtained from e-commerce websites.
Findings
The findings highlight a persistent and growing demand for modest fashion; that demand proved resilient in the face of challenges presented by the COVID-19 pandemic. Modest shoppers demonstrate price sensitivity, and their preference for premium brands over affordable ones varies considerably. Crucial factors contributing to the success of modest clothing as best-sellers include price, retailer, colour and fabric, while the discount feature is less important.
Research limitations/implications
While this research provides significant insights, it is important to acknowledge its limitations. This study relies on data gathered from certain e-commerce websites, and specific nuances of consumer behaviour may not be fully captured. In addition, the scope is limited to a specific timeframe and may not account for long-term market shifts.
Practical implications
Fashion companies could use the results of this study to customise their strategy for engaging the modesty-conscious demographic. Comprehending the significance of elements such as price, retailer, colour and fabric can allow firms to enhance their product offerings and marketing strategies.
Social implications
This study highlights the social ramifications of the modesty-focused industry, stressing the changing tastes and requirements of customers within this sector. By aligning their strategies with these societal shifts, fashion companies can contribute to a more inclusive and diverse industry landscape.
Originality/value
This research contributes to the academic literature on modest fashion by using a unique combination of exploratory data analysis and machine learning techniques with fashion e-commerce data sets. This study addresses a gap in the use of big data within this field, and provides novel insights into consumer demand for modest garments. This study challenges the prevailing assumption that consumers of modest fashion prioritise premium pricing, and offers fresh insights into their price sensitivity across both mass-market and luxury segments. It contributes to the literature on consumer behaviour in niche fashion markets and introduces a theoretical framework for understanding the intersection of fashion, culture and consumer economics within the context of modest fashion.