Habib Zaman Khan, Sudipta Bose, Abu Taher Mollik and Harun Harun
This study explores the quality of sustainability reporting (QSR) and the impact of regulatory guidelines, social performance and a standardised reporting framework (using the…
Abstract
Purpose
This study explores the quality of sustainability reporting (QSR) and the impact of regulatory guidelines, social performance and a standardised reporting framework (using the Global Reporting Initiative [GRI] guidelines) on QSR in the context of banks in Bangladesh.
Design/methodology/approach
Using a sample of 315 banking firm-year observations over 13 years (2002–2014), a content analysis technique is used to develop the 11-item QSR index. Regression analysis is used to test the research hypotheses.
Findings
Initially, QSR evolved symbolically in Bangladesh's banks but, over our investigation period, with QSR indicators gradually improving, the trends became substantive. The influences on QSR were sustainable banking practice regulatory guidelines, social performance and use of the GRI guidelines. However, until banks improve reporting information, such as external verification and trends over time, QSR cannot be regarded as fully substantive.
Research limitations/implications
This study advances QSR research and debate among academic researchers. With regulatory agencies and stakeholders increasingly using sustainability reporting information for decision making, the information's quality is vital.
Originality/value
This study is the first on QSR in the banking industry context, with previous research mostly investigating the quantity of sustainability reporting. The current study also synthesises QSR with sustainability regulation and social performance factors which have rarely been used in the sustainability literature. To gain a holistic understanding of QSR, existing QSR measures are advanced by combining external reporting efforts with banks' internalisation initiatives.
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Muhammad Nurul Houqe, Habib Zaman Khan, Olayinka Moses and Arun Elias
The purpose of the study is to examine the impact of corporate reputation (hereafter CR) and the degree of economic development on firms’ cost of capital remains unresolved. This…
Abstract
Purpose
The purpose of the study is to examine the impact of corporate reputation (hereafter CR) and the degree of economic development on firms’ cost of capital remains unresolved. This study addresses these issues.
Design/methodology/approach
Using a global sample across 20 countries, the study investigates the discrete and joint effects of CR and jurisdictional economic development on the cost of equity (COE) and cost of debt (COD) capital. The analysis encompasses a dual data set, comprising 1,308 observations for COE and 1,223 observations for COD, allowing for a comprehensive exploration of these dynamics.
Findings
The findings indicate that CR leads to a reduction in the cost of capital for reputable firms. Nevertheless, the extent of this decrease varies per type of capital and firm’s reputation level and is contingent upon the economic development level within the firm’s jurisdiction. Particularly noteworthy is the moderating effect of economic development on CR, which shows that COE capital tends to be lower for reputable firms operating in economically developed jurisdictions. Albeit, this is not the case for COD capital for reputable firms in similarly developed jurisdictions.
Practical implications
This study illustrates that effective CR management, aimed at reducing the cost of capital, necessitates a combination of the firm’s unique competitive advantage and the economic development context of its jurisdiction to truly achieve its intended goal.
Originality/value
To the best of the authors’ knowledge, this is the first global study to explore the impact of CR on both COE and COD capital. Furthermore, this study is primarily towards understanding the moderating role of economic development in the relationship between CR and cost of capital.
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Afzalur Rashid, Syed Shams, Sudipta Bose and Habib Khan
This study examines the association between Chief Executive Officer (CEO) power and the level of corporate social responsibility (CSR) disclosure, as well as the moderating role…
Abstract
Purpose
This study examines the association between Chief Executive Officer (CEO) power and the level of corporate social responsibility (CSR) disclosure, as well as the moderating role of stakeholder influence on this association.
Design/methodology/approach
Using a sample of 986 Bangladeshi firm-year observations, this study uses a content analysis technique to develop a 24-item CSR disclosure index. The ordinary least squares regression method is used to estimate the research models, controlling for firm-specific factors that potentially affect the levels of CSR disclosure.
Findings
The study findings indicate that CEO power is negatively associated with the level of CSR disclosure, and that the negative effects of CEO power on the level of CSR disclosure are attenuated by stakeholder influence. CEO power is documented as reducing the positive impact of CSR disclosure on a firm’s financial performance, with this negative impact attenuated if stakeholders have greater influence on the firm.
Practical implications
This study suggests that CEO power and stakeholder influence are important factors in determining firms’ incentives to disclose CSR information. Both CEO power and stakeholder influence need to be considered in the CSR – firm performance nexus, given the mixed findings documented in the literature.
Originality/value
This study makes a significant contribution to the literature on CSR practices by documenting that firms with a powerful CEO have lower levels of CSR disclosure, and that stakeholder influence affects CSR disclosure in the emerging economy context.
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The purpose of this study is to explore the possible impact of banking market structure on the idiosyncratic risk of financially dependent firms in China.
Abstract
Purpose
The purpose of this study is to explore the possible impact of banking market structure on the idiosyncratic risk of financially dependent firms in China.
Design/methodology/approach
The study analyzes firm-level data for China from 1999 to 2018 using a two-step dynamic panel system generalized method of moments (GMM).
Findings
The findings imply that bank competition lowers corporate risk, particularly among firms that are highly dependent on external funding for their financing needs. The findings are consistent with alternative indicators of competition, corporate risk, and financial dependence. The analysis of the transmission mechanism – the channel through which competition affects corporate risk – reveals that bank competition reduces corporate risk by curtailing financing constraints faced by firms.
Research limitations/implications
The competition-enhancing policy should consider the optimum level of bank competition for financial and economic stability. Further research is necessary to define the “desirable” or “optimum” level of bank competition.
Practical implications
In China, where the banking sector is still highly concentrated, the findings of this study call for policies aimed at encouraging healthy competition among banks. Nevertheless, such a policy must also consider the extent of bank competition that is optimal for the economy, particularly for financial and economic stability.
Originality/value
The paper provides the first evidence of the possible linkage between bank competition and corporate risk in China.
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Salman Butt, Ahmed Raza, Rabia Siddiqui, Yasir Saleem, Bill Cook and Habib Khan
This literature review aims to assess the current research on healthcare job availability and skilled professionals. The objective of this research is to identify challenges…
Abstract
Purpose
This literature review aims to assess the current research on healthcare job availability and skilled professionals. The objective of this research is to identify challenges caused by the imbalance between healthcare service demand and qualified professionals and propose potential solutions and future research directions.
Design/methodology/approach
The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method was employed as the guiding framework for conducting this review. A qualitative research design analyzed 38 peer-reviewed, evidence-based research works from 50 journal publications. Inclusion criteria focused on empirical studies, observational research and comprehensive reviews published within the last ten years. Thematic and discourse analysis categorized themes and factors explored in selected publications.
Findings
The findings highlight significant challenges in the healthcare sector regarding job availability and skilled professionals. Developed countries face understaffed healthcare facilities, resulting in increased workloads and compromised care. Developing countries experience high rates of unemployment among healthcare graduates due to limited resources and mentorship.
Practical implications
Improving educational infrastructure, expanding training opportunities and increasing healthcare investments are crucial for nurturing a skilled workforce. Implementing effective retention policies, fostering international collaborations and addressing socioeconomic determinants can create a sustainable job market.
Originality/value
The healthcare sector faces critical challenges in balancing job availability and skilled professionals. Strategic solutions are proposed to create a sustainable and equitable healthcare workforce. By implementing recommendations and conducting further research, access to quality healthcare and global public health outcomes can be improved.
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Cliff Oliver Winoto and Felizia Arni Rudiawarni
Banking industry is synonymous to larger dividend payment compared to other sectors. The complexity of dividend policy is further exacerbated by the occurrence of COVID-19…
Abstract
Banking industry is synonymous to larger dividend payment compared to other sectors. The complexity of dividend policy is further exacerbated by the occurrence of COVID-19 pandemic. This research is aimed to test the impact of COVID-19 pandemic on dividend policy relevance to firm value (FV). FV is measured by firm market value (MV) and TOBINSQ. Meanwhile, dividend policy is measured by dividend payout ratio and dividend yield ratio. This research used Indonesian Banking Companies listed in Indonesia Stock Exchange Period 2018–2022. This research does not find a significant impact of dividend policy on FV and supports Irrelevance Theory, both for pre-COVID-19 pandemic and during COVID-19 pandemic. However, this research finds differing significant impact on each bank’s common equity tier that reflects the dynamic expectation imposed by the market for each common equity tier. This research also finds a more profound negative and significant impact of dividend policy on FV for state-owned banks compared to private banks. Furthermore, banking-specific performance measurement like a non-performing loan (NPL) and capital adequacy ratio (CAR) consistently impacts the banks’ FV.
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Sourav Mondal, Saumya Singh and Himanshu Gupta
In recent years, “Corporate Social Responsibility” (CSR) has gained significant traction as a strategic concept embraced by business managers. However, there remains a dearth of…
Abstract
Purpose
In recent years, “Corporate Social Responsibility” (CSR) has gained significant traction as a strategic concept embraced by business managers. However, there remains a dearth of comprehensive research exploring the impact of CSR on “Green Entrepreneurial Orientation” (GEO), a firm’s sustainability performance, and their interplay with other influential factors. Therefore, this study aims to explore how CSR, “Policy Awareness” (PA), and “Personal Innovativeness” (PI) influence GEO and “Sustainable Performance” (SP). The research also delves into understanding the mediating role of GEO and how this mediation is moderated by “Green Innovation” (GI).
Design/methodology/approach
Drawing from the “natural resource-based view” (NRBV) theory and employing “partial least square structural equation modeling” (PLS-SEM), the study analyzed a sample of 137 Indian manufacturing “micro, small, and medium enterprises” (MSMEs).
Findings
The results underscore the positive associations of CSR and PA with both GEO and SP. Additionally, the findings highlight the moderating effects of GI in enhancing firms' sustainability performance. The moderated mediation analysis reveals that CSR significantly contributes to SP by fostering the adoption of GEO.
Research limitations/implications
These study outcomes offer valuable insights for policymakers, managers, and entrepreneurs, emphasizing the importance of crafting effective CSR strategies intertwined with innovativeness to cultivate a conducive green entrepreneurial ecosystem in businesses aligned with sustainable development goals.
Originality/value
There is a paucity of research on the determinants of GEO within the context of manufacturing MSMEs, especially in developing and underdeveloped nations. Furthermore, no previous study has delved into the factors that underlie GEO using a moderated mediation framework, particularly within the Indian manufacturing MSMEs landscape.
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Habib‐Uz‐Zaman Khan and Rashidozzaman Khan
The purpose of this paper is to examine the extent of human capital (HC) reporting in leading Bangladeshi firms using the HC reporting framework, thereby making a contribution to…
Abstract
Purpose
The purpose of this paper is to examine the extent of human capital (HC) reporting in leading Bangladeshi firms using the HC reporting framework, thereby making a contribution to the body of knowledge in the area of HC reporting practice in a developing country context.
Design/methodology/approach
Using the technique of content analysis, three years of annual reports of 32 leading manufacturing and service sector companies listed on the Dhaka Stock Exchange (DSE), selected on the basis of the market capitalization, were examined to identify any HC reporting trends.
Findings
The findings reveal that the HC reporting practices of leading Bangladeshi firms are not as low as projected in relation to the total list of items reported. The most commonly disclosed HC items are information on employee training, number of employees, career development and opportunities that firms provide, and employee recruitment policies. Moreover, as a result of a degree of intervention on the part of some Bangladeshi regulators, the extent of reporting has increased during 2009/2010.
Research limitations/implications
The principal limitations of the study are that it is based on a small non‐random sample of firms taken from a single country and drawing solely annual reporting information.
Originality/value
This is the first paper that documents HC‐related disclosures in the context of a transitional economy such as Bangladesh using multi year‐data. The study contributes to the HC literature by providing empirical evidence of the status of HC reporting in a developing country context.
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Habib‐Uz‐Zaman Khan, Abdel K. Halabi and Kurt Sartorius
This paper aims to examine: the status and the use of financial and non‐financial measures, and the balanced scorecard (BSC) in Bangladeshi companies; the reasons for BSC…
Abstract
Aims
This paper aims to examine: the status and the use of financial and non‐financial measures, and the balanced scorecard (BSC) in Bangladeshi companies; the reasons for BSC adoption; and associated problems.
Design/methodology/approach
Data via a questionnaire were obtained from the chief accounting and finance officers of a cross section of 60 Bangladeshi companies listed on the Dhaka Stock Exchange. A combination of descriptive statistics, bi‐variate, and multi‐variate techniques of statistics were used to test three research questions.
Findings
The results indicate that financial measures are more widely used, but that 78.4 per cent of companies use some non‐financial indicators. Further, the exercise of a full BSC is limited to only 10 per cent of the sample. The results also show that companies adopt these frameworks to aid decision making, and the problems associated with the adoption of BSC include a cost‐benefit perspective and a lack of management support.
Practical implications
The findings suggest many companies are using a dashboard of financial and non‐financial performance measures that could possibly be a precursor to adopting more holistic performance measurement frameworks like the BSC.
Originality/value
There have been recent calls for more in‐depth analysis of the management accounting systems of emerging countries and these findings contribute further knowledge to an under researched area. In particular, the paper demonstrates how a performance measurement framework may evolve in an emerging country context.
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Habib‐Uz‐Zaman Khan, Muhammad Azizul Islam, Johra Kayeser Fatima and Khadem Ahmed
This paper aims to examine the tendencies of sustainability reporting by major commercial banks in Bangladesh in comparison with global sustainability reporting indicators…
Abstract
Purpose
This paper aims to examine the tendencies of sustainability reporting by major commercial banks in Bangladesh in comparison with global sustainability reporting indicators outlined in the GRI framework together with banks' predilection toward reporting 16 GRI financial service sector (FSS) specific performance indicators.
Design/methodology/approach
Based on the GRI G3 guidelines, the paper investigated banks' reporting in five broad areas of sustainability, such as environment, labour practices and decent works, product responsibility, human rights and society. The 2008/2009 annual reports of 12 major commercial banks listed on Dhaka stock exchange were analysed and coded using a content‐based technique.
Findings
The results show that information on society is addressed most extensively with regard to extent of reporting. This is followed by the disclosures prepared on decent works and labour practices and environmental issues. Furthermore, the disclosures of product responsibility information and the information for human rights are rather scarce in banks' reporting; on the subject of FSS‐specific disclosures, only seven items out of 16 are disclosed by all sample banks.
Research limitations/implications
The findings of the study indicate that Bangladeshi commercial banks' social disclosures could develop in this style to become more holistic and over time (in association with the country's central bank involvement) to resemble a type of structured reporting to the point where they are properly labelled per se.
Originality/value
The study contributes to the social disclosure literature, in particular in a developing countries banking sector context, seeing as it disseminates evidence of the standing on social disclosures practices at the level of GRI with developing countries' banks data.