Nurshahirah Abd Majid, Mohd Mohid Rahmat and Kamran Ahmed
This study aims to examine the ability of independent directors to discipline related-party transactions (RPTs) among listed companies in Malaysia. Firms typically appoint…
Abstract
Purpose
This study aims to examine the ability of independent directors to discipline related-party transactions (RPTs) among listed companies in Malaysia. Firms typically appoint independent directors individually, not as a group. However, board members are commonly viewed collectively as a group, and evidence of the abilities of individual directors is scarce.
Design/methodology/approach
The attributes of individual independent directors include accounting literacy, length of service, audit committee membership and active participation in board and audit committee meetings. The unit of analysis is the individual independent director. The final sample consists of 1,552 observations in 2017, and RPTs are categorized as either efficient or conflicting.
Findings
The study finds that the tenure of individual independent directors and active participation in board meetings affect the firm’s engagement in RPTs. However, the financial literacy, audit committee membership and attendance of independent directors at audit committee meetings do not affect the firm’s engagement in RPTs, either efficient or conflicting. Overall, this result offers limited support for the upper-echelon theory concerning the attributes of individual independent directors and RPTs.
Research limitations/implications
This study uses cross-sectional observations for 2017, which predates the COVID-19 pandemic. Thus, this study ignores the impact of restrictions in community mobility during the pandemic on the independent director’s ability to monitor the corporation. This circumstance may have implications for practice and merit further research.
Practical implications
The findings provide information for board nominating committees, regulators and policymakers that the capability of individual independent directors to fulfill their responsibilities is limited. The firm’s nominating committee must be very selective in nominating and appointing independent directors with appropriate competencies. Investors should choose companies that have reappointed the same independent directors for an extended period, as they may benefit from the experience in protecting investors’ interests.
Originality/value
This paper contributes novel evidence to upper-echelon theory literature on the association between independent directors and RPT types from the perspective of individual independent directors.
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Naima A.I. Ahmad, Mohamed I. Ismail and R.S. Al‐Ameeri
Corrosion of fresh water systems are studied. Immersion tests under flowing water conditions were performed for periods upto 7 days. Pipe materials selected for this study…
Abstract
Corrosion of fresh water systems are studied. Immersion tests under flowing water conditions were performed for periods upto 7 days. Pipe materials selected for this study included commercial alloys commonly used in fresh water systems such as mild steel. At the end of the long term experiment the materials exposed to the water flow were investigated using the SEM technique. The results showed that the morphology of the surface was dependent on the corrosion behaviour during experimentation. Heat treatment plays an important role in material stability in contact with flowing water.
Giovanna Gavana, Pietro Gottardo and Anna Maria Moisello
The purpose of this paper is to investigate the effect of family control on the association between related party transactions (RPTs) and different forms of accrual-based earnings…
Abstract
Purpose
The purpose of this paper is to investigate the effect of family control on the association between related party transactions (RPTs) and different forms of accrual-based earnings management (AEM) and real earnings management (REM), analyzing the effect of board characteristics on the possible association.
Design/methodology/approach
This paper studies a sample of Italian non-financial listed firms over the 2014–2019 period, by GLS regression models, controlling for the fixed effects of the company's sector of operation and the year.
Findings
Results indicate a different association between RPTs and earnings management (EM) in family and non-family firms. They point out that family firms use RPTs in association with downward AEM and REM perpetrated by abnormal discretionary expenses as well as a substitute of REM via abnormal production costs. For non-family firms, findings indicate only a substitution effect between RPTs and AEM. Furthermore, CEO duality, board gender diversity and the presence of the family on the board positively moderate the association between RPTs and, respectively, REM implemented through sales manipulations, downward AEM and upward AEM.
Originality/value
This study suggests that the socioemotional wealth (SEW) differently affects the relationship between RPTs and EM, according to the form of the latter. It also points out family firms' heterogeneity in earnings manipulations, by providing evidence of the moderating role of board characteristics on the association between RPTs and the various forms of EM.
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Total risk score (TRS) is considered one of the main indicators for risk evaluation. Several studies attempted to employ different types of risk indices for the evaluation of cost…
Abstract
Purpose
Total risk score (TRS) is considered one of the main indicators for risk evaluation. Several studies attempted to employ different types of risk indices for the evaluation of cost overrun causes. Hence, this study aims at performing a comparative analysis to evaluate the efficiency of three different approaches for TRS calculation.
Design/methodology/approach
Thirty-eight unique causes of cost overrun in urban-related construction projects were identified and a survey was conducted among construction professionals in Iran. The TRS for each cost overrun cause is calculated using single-attribute (SA), double-attribute (DA), and multiple-attribute (MA) approaches, and eventually, causes were ranked. Furthermore, principal component analysis (PCA), logistic regression analysis (LRA), and K-means clustering are utilized to compare the differences in the generated TRS using different approaches.
Findings
The results revealed that the TRS generated through the MA approach demonstrated the highest efficiency in terms of generating correlation between causes and their identified latent constructs, prediction capability, and classification of the influential causes in the same group.
Originality/value
The originality of this study primarily stems from the adoption of statistical approaches in the evaluation of the recently introduced TRS calculation approach in comparison to traditional ones. Additionally, this study proposed a modified application of the relative importance index (RII) for risk prioritization. The results from this study are expected to fulfill the gap in previous literature toward exploring the most efficient TRS calculation approach for those researchers and practitioners who seek to utilize them as a measure to identify the influential cost overrun causes.
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Abdalmuttaleb Musleh Alsartawi, Sameh Reyad and Araby Madbouly
This study aims to examine the relationship between the three dimensions of Web 2.0 disclosure (Shariah, content and presentation) and the firm value of listed Islamic financial…
Abstract
Purpose
This study aims to examine the relationship between the three dimensions of Web 2.0 disclosure (Shariah, content and presentation) and the firm value of listed Islamic financial institutions (IFIs) in the Gulf Cooperation Council (GCC) stock exchanges.
Design/methodology/approach
A checklist of 118 items was used to measure the level of Web 2.0 disclosure for the IFIs that are listed on the GCC stock exchanges. Data were gathered from the websites of the IFI samples, where researchers looked for annual reports, RSS, widgets, web-casting and the layout and design of the websites.
Findings
Based on the results, the level of the Shariah dimension by GCC IFIs was 74.93%, the level of the content dimension was 76.33%, the level of the presentation dimension was 78.03% and the level of the overall Web 2.0 disclosure was 75.73%, and a positive and significant relationship between the content dimension and Tobin’s Q.
Practical implications
In addition to other reforms, this study recommends IFIs to improve their regulations, risk management and standardization.
Originality/value
This study offers a new contribution as it adds a new perspective to the online financial disclosure literature, which is the Shariah dimension. Furthermore, this study provides empirical evidence for interested parties in the Islamic banking industry such as users and regulators in the GCC countries concerning the importance and usage of Web 2.0 applications for disclosure and its positive impact on adding a premium to IFIs.
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Amrul Asraf Mohd-Any, Dilip S. Mutum, Ezlika M. Ghazali and Lokmanulhakim Mohamed-Zulkifli
The purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived justice…
Abstract
Purpose
The purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived justice, recovery satisfaction and overall satisfaction, customer trust and customer loyalty. Furthermore, the research assesses the mediating effect of overall satisfaction and customer trust on customer loyalty.
Design/methodology/approach
Data were collected via an airport intercept survey of Malaysia Airlines passengers who had experienced service failure. In total, 380 responses were used for the final analysis. The study uses partial least squares structural equation modelling technique with SmartPLS 3.0, in order to test and validate the research model and hypotheses posited.
Findings
The results reveal that: recovery satisfaction is significantly affected by procedural and interactional justice; distributive and procedural justice, as well as recovery satisfaction influenced overall satisfaction; customer trust is most influenced by interactional justice, distributive justice and recovery satisfaction; customer loyalty is positively affected by customer trust, overall satisfaction and recovery satisfaction; and the influence amongst recovery satisfaction and customer loyalty is partially mediated by customer trust and overall satisfaction.
Originality/value
The study contributes to a whole conceptual comprehension of the essential determinants of customer loyalty from the combined perspectives of three theories, namely, justice theory, expectancy disconfirmation theory and commitment-trust theory. This study successfully differentiates the three dimensions of perceived justice and assesses them individually to discern and compare their influence on overall satisfaction, recovery satisfaction and trust. In addition, the study finds that the influence of recovery satisfaction on loyalty is partially and sequentially mediated by trust and overall satisfaction.
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Bassam Abdallah, M. Kakhia and W. Alsadat
TiN and TiAlVN films have been prepared by DC magnetron sputtering technique at room temperature. TiN target has been used to deposit TiN thin film under pure argon (100 percent…
Abstract
Purpose
TiN and TiAlVN films have been prepared by DC magnetron sputtering technique at room temperature. TiN target has been used to deposit TiN thin film under pure argon (100 percent Ar) gas. Additionally, Ti6Al4V alloy target has been used to deposit TiAlVN under nitrogen and argon gas (50 percent Ar and 50 percent N2). In this paper, two substrate types have been used: stainless steel 304 and Si(100). This analysis has confirmed that the nitride films, (TiN/Si) and TiAlVN in both cases, have been produced. Energy Depressive X-ray Spectroscopy (EDX) measurement confirmed that the TiN/Si was stoichiometry, where the N/Ti ratio was about 1 with low oxygen contamination. The results obtained have indicated that the TiAlVN has more resistance to corrosion than TiN film in 3.5 percent NaCl at 25°C (seawater). Both films, TiAlVN/SS304 and TiN/SS304, have shown improved corrosion resistance compared with virgin 304 substrate. Microhardness was carried out using Vickers method; the microhardness values for TiN/SS304 and TiAlVN/SS304 were approximately 7.5 GPa and 25.3 GPa, respectively. The paper aims to discuss these issues.
Design/methodology/approach
The films were prepared by a DC magnetron sputtering system starting from high pure (99.99 percent) Ti6Al4V target (Al 6wt%, V 4wt% and balance Ti) in plasma discharge argon/nitrogen (50 percent Ar and 50 percent N2) for deposition of TiAlVN film. Pure TiN target (99.99 percent) was used for preparation of TiN film in pure argon plasma. The diameter of target was 50 mm and the power applied for preparation of the two films was 100 W. A cylindrical high-vacuum chamber (Figure 2) made of stainless steel 316, with height 363 mm diameter, was fabricated locally. Scanning electron microscope images have been used to discover the films morphology. The composition of the films has been determined by EDX technique for films deposited on Si substrate. The electrochemical corrosion test was carried out using conventional three-electrode cell of 300 ml capacity by using Voltalab PGZ 301 system (France) using Tafel extrapolation method and electrochemical impedance spectroscopy techniques.
Findings
TiN and TiAlVN films have been prepared by DC magnetron sputtering technique without heating of the substrates holder. The effects of the composition of nitride films on mechanical and corrosion properties were investigated. The composition of the films has been determined by EDX technique. The effect of using titanium alloy (Ti with Al and V) on the composition and crystalline quality has been investigated. The microhardness is strongly dependent on the addition of the Al and V elements, and it consequently improves mechanical proprieties. The microhardness values for TiN/SS304 were approximately 7.5 GPa and 25.3 GPa for TiAlVN/SS304. They indicate that prepared films prevent the aggressive action of corrosion media.
Originality/value
TiN and TiAlVN films have been prepared by DC magnetron sputtering method at room temperature. Titanium nitride film, especially TiAlVN, is an effective method to improve the corrosion resistance of SS304. TiAlVN film has exhibited enhanced corrosion resistance and higher microhardness. Independent time-of-flight elastic recoil detection analysis has been used to determine the composition of the film.
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Md. Jashim Uddin, O. Anwar Bég and Izani Md. Ismail
The purpose of this paper is to study two-dimensional nonlinear radiative-convective, steady-state boundary layer flow of non-Newtonian power-law nanofluids along a flat vertical…
Abstract
Purpose
The purpose of this paper is to study two-dimensional nonlinear radiative-convective, steady-state boundary layer flow of non-Newtonian power-law nanofluids along a flat vertical plate in a saturated porous medium taking into account thermal and mass convective boundary conditions numerically.
Design/methodology/approach
The governing equations are reduced to a set of coupled nonlinear ordinary differential equations with relevant boundary conditions. The transformed equations are then solved using the Runge-Kutta-Fehlberg fourth-fifth order numerical method with Maple 17 and Adomian decomposition method (ADM) in Mathematica.
Findings
The transformed equations are controlled by the parameter: power-law exponent, n; temperature ratio, Tr; Rosseland radiation-conduction, R; conduction-convection, Nc; and diffusion-convection, Nd. Temperature and nanoparticle concentration is enhanced with convection-diffusion parameter as are temperatures. Velocities are depressed with greater power-law rheological index whereas temperatures are elevated. Increasing thermal radiation flux accelerate the flow but to strongly heat the boundary layer. Very good correlation of the Maple solutions with previous stationary free stream and ADM solutions for a moving free stream, are obtained.
Practical implications
The study is relevant to high temperature nano-polymer manufacturing systems.
Originality/value
Lie symmetry group is used for the first time to transform the governing equations into a set of coupled nonlinear ordinary differential equations with relevant boundary conditions. The study is relevant to high temperature nano-polymer manufacturing systems.