David M. Mathuva, Josephat K. Mboya and James B. McFie
The purpose of this paper is to utilize legitimacy theory to test the association between the governance of credit unions and their social and environmental disclosure in a…
Abstract
Purpose
The purpose of this paper is to utilize legitimacy theory to test the association between the governance of credit unions and their social and environmental disclosure in a developing country, Kenya. A further examination of institutional pressures due to regulatory forces on the association between co-operative governance and credit union social and environmental disclosure (CSED) is performed.
Design/methodology/approach
Using a sample comprising of 1,272 credit union observations over the period 2008-2013, panel OLS regressions are performed to establish the association between co-operative governance and CSED. A comparison of the pre- and post-regulatory influences on co-operative governance and CSED is also performed.
Findings
The findings, which are in support of both legitimacy and institutional theories, depict a positive and significant association between co-operative governance and CSED. The significance of the co-operative governance score improves from the pre-regulation period to the post-regulation period. Other significant variables influencing the volume of CSED by credit unions in Kenya include credit union size and financial performance as measured by the return on assets.
Research limitations/implications
The study examines CSED practices in a developing country and in organizations in a single sector. Further, CSED is measured using a self-constructed index with data being obtained from audited annual reports only.
Practical implications
The study highlights the need to develop CSED guidelines tailored for credit unions, and a focus on co-operative governance as a way of improving disclosure practices.
Originality/value
The study utilizes a sector-specific governance variable and a CSED index to examine the association between the two variables by credit unions in a developing country. The study also attempts to investigate the role of regulation on the association between co-operative governance and the volume of CSED.
Details
Keywords
Current issues of Publishers' Weekly are reporting serious shortages of paper, binders board, cloth, and other essential book manufacturing materials. Let us assure you these…
Abstract
Current issues of Publishers' Weekly are reporting serious shortages of paper, binders board, cloth, and other essential book manufacturing materials. Let us assure you these shortages are very real and quite severe.
Mumbi Maria Wachira and David Mutua Mathuva
Over the last few decades, corporate environmental reporting (CER) has received substantial attention due to complex societal and ecological challenges experienced at a global…
Abstract
Over the last few decades, corporate environmental reporting (CER) has received substantial attention due to complex societal and ecological challenges experienced at a global scale. While there has been growth in CER research across the world, we know very little of the state of CER research in Africa. In this paper, we provide a comprehensive literature review of CER in sub-Saharan Africa to demonstrate its current state, uncover gaps in extant studies and identify areas for further research in the region. We perform a metasearch on the Financial Times Top 50 journals in addition to wider analyses using African Journals Online (AJOL) and Google Scholar between 2008 and 2020. Though there is some progress in interrogating CER in the region, there is much leeway for further research into how public and private corporations provide an account for their interaction with nature. Extant studies have examined how CER is often subsumed within corporate social responsibility initiatives while other studies explore ways in which CER can provide accountability mechanisms in the mining sector of select countries. Important areas of future research include the influences of legal, cultural and political systems on the level of CER, the tensions between economic development driven by multinational corporations and the necessity for ecological protection. Finally, further research could investigate the role CER can play in encouraging specific corporate disclosures around GHG emissions, especially given global efforts being undertaken to mitigate the effects of climate change.
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In Kenya, an award for reporting excellence is presented annually to the entities in the public and private sector. The purpose of this paper is to examine the characteristics of…
Abstract
Purpose
In Kenya, an award for reporting excellence is presented annually to the entities in the public and private sector. The purpose of this paper is to examine the characteristics of savings and credit cooperatives (SACCOs) that apply for the annual reporting excellence award in Kenya.
Design/methodology/approach
The study employs correlation and probit regression analyses to establish the factors which explain the decision by SACCOs to participate in the Financial Reporting (FIRE) excellence award. The study utilizes data consisting of 1,272 firm-year observations for 212 SACCOs, over the period 2008-2013.
Findings
Consistent with institutional and legitimacy theories, the results demonstrate that structural and governance variables are significant and positively associated with the decision to participate in the annual FIRE awards by SACCOs in Kenya. Similarly, larger SACCOs and those that have adopted best cooperative governance practices are more likely to participate in the annual FIRE awards. The results also reveal that SACCOs audited by the Big 4 audit firms are more likely to participate in the annual FIRE awards.
Research limitations/implications
The study focuses on the factors explaining the decision to participate in the annual reporting excellence awards by organizations in a specific sector. Further studies can adopt a multi-sectoral approach to investigate the same phenomenon.
Practical implications
The findings highlight the importance of cooperative governance and resources in explaining why SACCOs choose to participate in the FIRE awards.
Originality/value
The study adds onto the dearth of literature on the aspect under focus. Globally, very few studies have examined the drivers of the decision to participate in reporting excellence awards by organizations.
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The following classified, descriptive list of titles is intended to provide reference librarians with a current checklist of new reference books, and is designed to supplement the…
Abstract
The following classified, descriptive list of titles is intended to provide reference librarians with a current checklist of new reference books, and is designed to supplement the RSR review column, “Recent Reference Books,” by Frances Neel Cheney. “Reference Books in Print” includes all additional books received prior to the inclusion deadline established for this issue. Appearance in this column does not preclude a later review in RSR. Publishers are urged to send a copy of all new reference books directly to RSR as soon as published, for immediate listing in “Reference Books in Print.” The prevailing policy of including all reference books received has temporarily allowed the listing of titles with imprints older than two years; with increased receipt of more current titles from a longer list of publishers, this policy will soon be discontinued (with the exception of older books newly acquired for distribution by another publisher). An additional copy of any title specifically requested by Mrs. Cheney should be sent to her for review. A decision to review titles appearing in the present column will then be made by Mrs. Cheney at her own discretion.
This study investigates the influence of six interrelated contextual factors, namely organisational structure, quality of information technology, business strategy in terms of…
Abstract
Purpose
This study investigates the influence of six interrelated contextual factors, namely organisational structure, quality of information technology, business strategy in terms of deliberate strategy-formulation, market orientation, market competition and perceived environmental uncertainty (PEU), on the usage intensity of innovative management accounting techniques commonly referred to as strategic management accounting (SMA); the impact of SMA usage on competitive advantage; and the moderating influence of the contextual factors on the relationship between SMA usage and competitive advantage.
Design/methodology/approach
Survey data were obtained through a structured questionnaire from publicly listed manufacturing companies on the main board of the Nigerian Stock Exchange (NSE). Ordinary least squares (OLS) regression and moderated regression were used to analyse data. Both exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to examine the validity and reliability of variables as first and second order of analysis. Structural equation modelling (SEM) (maximum likelihood estimation method) was applied to assess the robustness of result.
Findings
Market orientation and deliberate strategy-formulation emerged as significant determinants of SMA usage intensity. Although there is a significant relationship between SMA usage and competitive advantage, the strength of the relationship is moderate. Organisational structure, deliberate strategy-formulation and PEU significantly moderate the relationship between SMA usage and competitive advantage.
Research limitations/implications
The emergence of deliberate strategy-formulation, as both a significant predictor of SMA usage intensity and as the strongest moderator of the relationship between SMA usage and competitive advantage, establish that it is organisations that take a proactive approach to strategy issues that may derive the most benefit from SMA utilisation.
Practical implications
The result from this study brings to fore the need to involve management accountants in strategy-formulation and implementation in order to leverage their competence in deploying SMA techniques to enhance organisational competitiveness.
Originality/value
The current study is the first, to the researcher's knowledge, to specifically examine interrelated contextual factors distinctively affecting SMA usage and organisational competitiveness in a developing country. Whilst these six factors have been stressed as important determinants of the adoption of innovative management accounting techniques, the study provides empirical evidence on the extent to which they exert on SMA. The study presents empirical evidence on the relevance of market orientation—a construct which has surprisingly received little research attention in management accounting literature—as a variable which could affect the adoption of management accounting innovation.