Ioannis Tsalavoutas, Lisa Evans and Mike Smith
The purpose of this research is to highlight the differences, and implications of any differences, between two approaches to measuring compliance with International Financial…
Abstract
Purpose
The purpose of this research is to highlight the differences, and implications of any differences, between two approaches to measuring compliance with International Financial Reporting Standards (IFRS) mandatory disclosure requirements: the commonly used “dichotomous” approach; and the alternative, but rarely used, partial compliance unweighted approach. The former gives equal weight to the individual items required to be disclosed by all standards. The latter assumes that each standard is of equal importance and consequently gives equal weight to each standard.
Design/methodology/approach
The paper employs both methods on a sample of companies. We then compare the results deriving from the application of the two methods and statistically test their differences.
Findings
It is found that the two methods produce significantly different overall and relative (i.e. ranking order) compliance scores.
Practical implications
This paper should alert researchers to the implications of using either method. Additionally, it highlights the need for academics and/or practitioners to be cautious when interpreting the findings of prior studies on compliance with IFRS mandatory disclosure requirements. Since the two methods produce significantly different compliance scores, findings regarding the variables associated with compliance may differ, depending on the disclosure index method followed. The paper suggests that simultaneous application of both methods would result in more robust findings in future research.
Originality/value
This is the first study to compare the results produced by applying both methods and statistically test their differences. The research methods explored are in particular relevant for policy‐oriented, international accounting research.
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The purpose of this paper is to look inside the “black box” in corporate governance (CG) measurement, and shed some light on how to construct a transparent, reliable and valid…
Abstract
Purpose
The purpose of this paper is to look inside the “black box” in corporate governance (CG) measurement, and shed some light on how to construct a transparent, reliable and valid index, considering equally both the academics and practitioners’ perspectives.
Design/methodology/approach
A synthesized literature review is presented and a CG index is developed combining the strengths of three different methodologies: the Delphi method, the classical test theory (CTT) and the analytic hierarchy process (AHP). This approach helps authors to break the process into separate steps and to select the appropriate techniques to support their decision regarding the norms, the criteria, the variables and the weights that someone should use to construct a CG index.
Findings
The authors’ analysis indicates that a well-designed CG index requires a combination of research methods to identify the best options to solve several methodological issues in index construction. For the application of this multi-methodology in Greece, the authors used two equal and independent samples to explore the different perspectives regarding the importance of the index criteria and sub-criteria. This process provides evidence that the opinion of academics and practitioners in Greece tend to converge. Moreover, it is found that this multi-methodology produces the highest variation in CG scores and ranking orders, as opposed to a traditional approach, in measuring CG disclosure, an important issue with econometric implications.
Research limitations/implications
The limitations of this study are associated with the methods used.
Practical implications
This paper provides practical implications for investors and commercial vendors. For the former, it highlights the need to be more cautious and/or suspicious when they use CG ratings, meaning that they should comprehend the base of the ratings models, and for the latter, it demonstrates the importance of enhancing the transparency in CG indices construction.
Originality/value
The value of the paper lies in improved understanding of the methodological issues in constructing CG indices. This is quite interesting because this approach could serve as a roadmap for other researchers.
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Yu-Ping Chen, Margaret Shaffer, Janice R.W. Joplin and Richard Posthuma
Drawing on the challenge–hindrance stressor framework and the “too-much-of-a-good-thing” principle, this study examined the curvilinear effects of two emic social challenge…
Abstract
Purpose
Drawing on the challenge–hindrance stressor framework and the “too-much-of-a-good-thing” principle, this study examined the curvilinear effects of two emic social challenge stressors (guanxi beliefs and participative decision-making (PDM)) and the moderating effect of an etic social hindrance stressor (perceived organizational politics) on Hong Kong and United States nurses’ job satisfaction.
Design/methodology/approach
A quantitative survey method was implemented, with the data provided by 355 Hong Kong nurses and 116 United States nurses. Structural equation modeling was used to examine the degree of measurement equivalence across Hong Kong and US nurses. The proposed model and the research questions were tested using nonlinear structural equation modeling analyses.
Findings
The results show that while guanxi beliefs only showed an inverted U-shaped relation on Hong Kong nurses’ job satisfaction, PDM had an inverted U-shaped relation with both Hong Kong and United States nurses’ job satisfaction. The authors also found that Hong Kong nurses experienced the highest job satisfaction when their guanxi beliefs and perceived organization politics were both high.
Research limitations/implications
The results add to the comprehension of the nuances of the often-held assumption of linearity in organizational sciences and support the speculation of social stressors-outcomes linkages.
Practical implications
Managers need to recognize that while the nurturing and development of effective relationships with employees via social interaction are important, managers also need to be aware that too much guanxi and PDM may lead employees to feel overwhelmed with expectations of reciprocity and reconciliation to such an extent that they suffer adverse outcomes and become dissatisfied with their jobs.
Originality/value
First, the authors found that influences of guanxi beliefs and PDM are not purely linear and that previous research may have neglected the curvilinear nature of their influences on job satisfaction. Second, the authors echo researchers’ call to consider an organization’s political context to fully understand employees’ attitudes and reactions toward social interactions at work. Third, the authors examine boundary conditions of curvilinear relationships to understand the delicate dynamics.
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Abu Thahir Abdul Nasser, Emelin Abdul Wahid, Sharifah Nazatul Faiza Syed Mustapha Nazri and Mohammad Hudaib
The main purpose of this paper is to examine one aspect of auditor‐client relationship, namely audit tenure and switching behaviour, and factors affecting it. Lengthy audit tenure…
Abstract
Purpose
The main purpose of this paper is to examine one aspect of auditor‐client relationship, namely audit tenure and switching behaviour, and factors affecting it. Lengthy audit tenure with the same client has been cited as one of the threats to auditor independence. Given the importance of this issue, this research attempts to shed some light on the effect of audit tenure and switching behaviour on auditor independence in Malaysia.
Design/methodology/approach
This study evaluates the effects of various independent variables on switching behaviour and audit tenure using logistic regression analysis.
Findings
An examination of 297 companies listed on the Kuala Lumpur Stock Exchange over a period of 11 years reveals audit firm switching to be significantly associated with distressed large clients and that the length and direction of switch depend upon the type of audit firm.
Research limitations/implications
A number of important variables such as corporate governance characteristics, audit and non‐audit fees and types of audit opinion that could enhance our understanding of audit tenure and auditor switching in Malaysia, were not incorporated into our regression models. Hence, future studies may consider such variables.
Originality/value
This study is the first conducted using Malaysian data where audit tenure and switching are used as dependent variables. The results have important implications on the auditing profession and regulators in Malaysia.
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João Ribeiro, Manuel Castelo Branco and João Alves Ribeiro
The purpose of this paper is to examine differences in corporate social responsibility (CSR) reporting on the websites of football clubs based in five European countries with…
Abstract
Purpose
The purpose of this paper is to examine differences in corporate social responsibility (CSR) reporting on the websites of football clubs based in five European countries with different levels of football corporatisation.
Design/methodology/approach
The study examines CSR reporting on the internet by football clubs based in five European countries. Multiple regression analysis is used to analyse some factors which influence reporting and test a set of hypotheses.
Findings
The findings suggest that clubs from countries in which the level of corporatisation is higher disclose more CSR information. Also, clubs with higher public visibility disclose a higher variety of CSR information.
Originality/value
This study adds to the scarce research on CSR reporting in professional sports leagues by providing new empirical data and by extending prior research comparing such practices within different international frameworks of CSR.
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Martin Kabwe, Erastus Mwanaumo and Henry Chalu
This study aims to analyze the relationship between corporate governance attributes and the International Financial Reporting Standard (IFRS) compliance among Zambian listed…
Abstract
Purpose
This study aims to analyze the relationship between corporate governance attributes and the International Financial Reporting Standard (IFRS) compliance among Zambian listed companies.
Design/methodology/approach
Data was collected through content analysis of annual reports and audited financial statements of 20 Zambian listed companies for the period 2012 to 2018. This is a longitudinal study which involved panel data analysis. A Hausman test was conducted to select the model to use to run the panel regression analysis.
Findings
The results indicate a positive statistically insignificant relationship between board size, board independence and IFRS compliance. A statistically significant negative relationship between audit committee independence and IFRS compliance. However, there is a positive relationship between board members with accounting and auditing experience, the inclusion of women on the board and IFRS compliance.
Research limitations/implications
Limitation includes the narrow focus on listed companies only which cannot be generalized to other public interest and private companies in Zambia.
Practical implications
The study findings imply that corporate governance attributes such as the inclusion of qualified and experienced Chartered Accountants and women on the board will increase IFRS compliance. The appointment criteria of non-executive directors should be strengthened.
Originality/value
This is the first empirical study to analyze the relationship between IFRS compliance and corporate governance in Zambia. The study also responds to the call by the World Bank (2017) to empirically study IFRS compliance in Zambia and contributes to the scant literature in developing countries on determinants of IFRS compliance.
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Hichem Hamza and Zied Saadaoui
This paper aims to examine the relationship between the volume of investment deposits and capitalization of Islamic commercial banks.
Abstract
Purpose
This paper aims to examine the relationship between the volume of investment deposits and capitalization of Islamic commercial banks.
Design/methodology/approach
Unlike current accounts holders, investment accounts holders may support part or all of the losses on assets value, which could be a source of moral hazard among bank managers and shareholders. To test these assumptions, the authors use the system generalized method of moments (system GMM) on a dynamic panel of 59 Islamic banks observed during the period 2005‐2009.
Findings
After controlling for a set of variables that may influence capital level, the results show a significant negative relationship between PSIA and regulatory capital ratio. This may indicate that the specific nature of PSIA can be a source of excessive risk‐taking in Islamic banks. This behavior is likely to threaten the solvency of Islamic banks and shows that some deficiencies may exist in their risk management and governance system.
Practical implications
This paper suggests some recommendations to better implement the principle of profit and loss sharing and to curb excessive risk‐taking in Islamic banks.
Originality/value
The originality of this paper is to give empirical responses to theoretical assumptions of a relationship between PSIA and moral hazard in Islamic banks.
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Solomon Olusola Babatunde, Srinath Perera and Lei Zhou
The purpose of this study is to use critical success factors (CSFs) to develop a process maturity and determine the current maturity levels of stakeholder organisations in…
Abstract
Purpose
The purpose of this study is to use critical success factors (CSFs) to develop a process maturity and determine the current maturity levels of stakeholder organisations in public–private partnership (PPP) project implementation in Nigeria. The success of any PPP project is largely dependent on the country’s maturity on CSFs that made PPP projects successful. Thus, the identification of metrics and standards for measuring the maturity of stakeholder organisations on CSFs for PPP project implementation remains a challenge.
Design/methodology/approach
The study adopted literature review and six PPP project case studies including interviews in each case study and expert forum. The outcome of a comprehensive literature review provides a total list of 14 CSFs that made PPP projects successful in Nigeria. These CSFs were used for capability maturity levels ' definition ranging from level 1 (Ad hoc) to level 5 (Optimising) in line with capability maturity model concept. Quantitative assessment was considered as a support tool for making an overall assessment of both the public and private organisations ' current capability maturity levels and for comparison approach.
Findings
A capability enhancement framework for stakeholder organisations in PPP project was developed. This framework was used in assessing the current capability maturity levels of stakeholder organisations involved in PPP projects in Nigeria. Using this framework, it was found that public sector organisations were positioned between maturity level 1 and maturity level 2 (out of five maturity levels) on CSFs applicable to them. While, most private sector organisations were placed in maturity level 2 on CSFs associated with them.
Practical implications
The results emanated from this study provided both the theoretical and practical implications. The theoretical implication provides new insights into the usefulness of CSFs in PPP projects and indicates that merely identifying possible CSFs for PPP projects is not sufficient. The practical implication shows that the framework developed in this study had provided the benchmark for the identification of methodical approach, and standard to process improvement in PPP infrastructure projects, which can be replicated in both the developed and developing countries. Thus, the framework could be used to benchmark future studies.
Originality/value
The framework would provide a useful guide and roadmaps for improvement by indicating “what” needs to be done by stakeholder organisations involved in PPP projects in achieving higher capability maturity levels on identified CSFs for PPP projects in Nigeria and developing countries at large.
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I.E. Cooke and J.D. Heys
AR‐BASIC is introduced as a more flexible programming language for the Rediffusion Reflex Robot.
Jane Frances Maley, Marina Dabic and Miriam Moeller
The purpose of this paper is to study the development and consider the future of one of the most controversial areas of human resource development – employee performance…
Abstract
Purpose
The purpose of this paper is to study the development and consider the future of one of the most controversial areas of human resource development – employee performance management (PM).
Design/methodology/approach
Through bibliometrics, a multiple correspondence analysis identifies the main research directions of PM studies and provides a map of descriptors and a list of authors, along with a framework to track PM literature over 20 years (1998–2018).
Findings
Scholars have attempted to address some of the questions raised by earlier researchers. However, critical questions remain unanswered, and there is increasing dissatisfaction with the process. The most glaring yet unaddressed problem with PM is poor employee acceptability of the process.
Practical implications
If the research gaps are addressed, the lack of acceptability of the PM could be resolved and more effectively managed in the future.
Originality/value
The study particularly addresses poor employee “acceptability” of the PM process, a subject that has received limited attention by scholars.