Gagan Kukreja, Sanjay M. Gupta, Adel Mohammed Sarea and Sumathi Kumaraswamy
The increasing incidence of fraudulent financial reporting by firms in recent years raises concerns about investors' confidence in capital markets. Academicians and industry…
Abstract
Purpose
The increasing incidence of fraudulent financial reporting by firms in recent years raises concerns about investors' confidence in capital markets. Academicians and industry practitioners adopt diverse risk management techniques to detect fraudulent reporting of financial statements. This paper aims to determine the effectiveness of the Beneish M-score and Altman Z-score models for the early detection of material misstatements at Comscore, Inc., a media analytics firm in the United States of America.
Design/methodology/approach
The financial statements of Comscore Inc. from 2012 to 2018 were analyzed with the primary objective of early fraud detection by employing the Beneish M-score and the Altman Z-score.
Findings
The study’s outcomes indicate that the Beneish M-score is less predictable in fraud detection compared to the Altman Z-score. The study results did not confirm the efficacy of the Beneish model in predicting fraudulent financial statements. The study concludes that the choice of forensic tool greatly influences fraud detection outcomes.
Practical Implication
The research findings can guide the policy decision-making of investors, financial auditors, and forensic auditors as this study provides some evidence of the effectiveness of forensic tools in the detection of financial statement fraud in corporate entities.
Originality/value
This is the first study to apply these two widely used tools to the most recent big corporate scandal: Comscore, Inc.
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Jasim Al-Ajmi, Shahrokh Saudagaran, Gagan Kukreja and Sayed Fadel
The purpose of this study is twofold. The first is to examine the impact of environmental disclosure on banks’ performance, while the second is to investigate the moderating role…
Abstract
Purpose
The purpose of this study is twofold. The first is to examine the impact of environmental disclosure on banks’ performance, while the second is to investigate the moderating role of a country’s economic activities and institutional quality on the relationship between environmental activities disclosure and banks’ operational, financial and market performance.
Design/methodology/approach
The sample includes 246 banks from emerging markets from 2008 to 2020, comprising 1,899 bank-year observations. The independent regressors are environmental disclosure, two moderators and two sets of control (bank and country) variables. The dependent variables are return on assets, return on equity and Tobin’s Q. This study adopts ordinary least squares, panel fixed effect and instrumental variables generalized method of moments to estimate the parameters of the models.
Findings
This study reveals a negative relationship between environmental disclosure and bank performance, lending credence to the agency and neoclassical theories. The moderator regressors show positive influence on banks performance. The results indicate that it is difficult to make a business case for environmental commitment.
Practical implications
There is a need for effective monitoring by shareholders to ensure that funds allocated for environmental activities are spent wisely.
Originality/value
This study provides new evidence on the ways in which economic and institutional quality influence the environmental practices of banks in emerging and frontier markets.
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Shikha Sharma, Anupama Mahajan, Naveen Virmani, Gagan Kukreja and Kamakshi Mehta
Adopting sustainable practices is highly required in hotels. This study aims to assess consumer behaviour towards adopting sustainable practices in hotels. In addition, mediating…
Abstract
Purpose
Adopting sustainable practices is highly required in hotels. This study aims to assess consumer behaviour towards adopting sustainable practices in hotels. In addition, mediating role of consumer attitude (CAtt) is assessed between consumer awareness (CA) and willingness to pay.
Design/methodology/approach
An empirical study was carried out to analyse the integrative research model of CA, CAtt and willingness to pay premium price (WTPPP) for sustainable practices adoption in five-star hotels in emerging economies. Responses from 447 respondents were collected and analysed. Structural equation modelling was performed using SPSS 21.0.
Findings
The research outcomes indicate the partial mediation of CAtt between CA and WTPPP. Furthermore, consumer satisfaction has been found to have a moderating effect on the relationship between CAtt and willingness to pay a premium price.
Originality/value
The research results add to the literature by analysing prominent factors affecting willingness to pay premium for adopting sustainable practices in five-star hotels.
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Amina Buallay, Ala’a Adden Abuhommous and Gagan Kukreja
The purpose of this paper is to establish the relationship between intellectual capital (IC) and employees' productivity (EP) in the Gulf Cooperation Council (GCC) region.
Abstract
Purpose
The purpose of this paper is to establish the relationship between intellectual capital (IC) and employees' productivity (EP) in the Gulf Cooperation Council (GCC) region.
Design/methodology/approach
The value-added intellectual coefficient (VAIC) is used to measure IC performance in 198 firms listed in Saudi Arabia and Bahrain from 2012 to 2014. The pooled-corrected estimation technique is used to estimate a panel regression model with EP as the dependent variable. Firm size and sectors are controlled for in the regression analysis. The independent variable (IC) has been measured using human capital efficiency (HCE), structural capital efficiency and capital employed efficiency (CEE) in order to measure the value of IC.
Findings
Based on the VAIC, the authors found that the values of IC investments are mostly generated from investments in human capital. The results of the panel-corrected ordinary least square indicate that VAIC and its individual components are positive and significantly related to variations in employees' productivity. HCE contributed the highest and CEE contributed lowest VAIC.
Originality/value
The originality of this paper is to show the importance of investment in the human capital as a key contributor of firm's performance. Hence, this study encourages firm's leaders and management in the GCC to invest and focus their management/leadership styles on human capital to achieve their goals. To the best of the knowledge of the coauthors, this is the first study which empirically examines the relationship between IC and EP in the GCC region.
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Amina Buallay, Gagan Kukreja, Esra Aldhaen, Muneer Al Mubarak and Allam Mohammed Hamdan
The purpose of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and firms' operational, financial and market performance…
Abstract
Purpose
The purpose of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and firms' operational, financial and market performance (measured in the form of return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ), respectively) in the Mediterranean countries from a stakeholder perspective.
Design/methodology/approach
Research is quantitative in nature, based on a cross-sectional and time-series analysis of 203 firms listed in six Mediterranean countries for 10 years from 2008 to 2017, with 1,689 observations. The theoretical model is built on a stakeholder theory. The practical model is built on the independent variable (CSR) and the dependent variables ROA, ROE and TQ.
Findings
The findings deduced from the empirical results indicated that CSR disclosure negatively affects operational and market performance but does not affect financial performance.
Practical implications
Studying the relationship between CSR disclosure and firms' operational, financial and market performance, with the consideration of variations, can bring many benefits internally by being more conscious of important activities that should be undertaken and externally by detecting what regulators and other stakeholders want for better sustainable development.
Originality/value
This research adds value to the existing limited literature of CSR disclosure on firm's performance in the Mediterranean countries, and it gives tips of advice for firms to manage CSR disclosure wisely.