Drawing on ethnographic field research on female sex workers and male clients in Ho Chi Minh City, Vietnam’s global sex industry, this paper complicates our understanding of human…
Abstract
Drawing on ethnographic field research on female sex workers and male clients in Ho Chi Minh City, Vietnam’s global sex industry, this paper complicates our understanding of human trafficking in two ways. First, introducing the term perverse humanitarianism, the paper extends work on carceral feminism by offering concrete examples of interagency commitments between NGOs and the police. Second, my ethnography reveals that women framed their relationships with male clients as mutually beneficial because the men provided them with alternate pathways to economic mobility outside of sex work. Drawing on the same tropes of victimhood employed by the NGOs, sex workers elicited sympathy from male clients that they leveraged into gifts of money. Using men’s charitable gifts, many women became small entrepreneurs who opened local businesses and empowered other sex workers far beyond what NGOs were able to provide.
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Huy Viet Hoang, Khanh Hoang, Linh Tu Ho and Oanh Kieu Ha
The recent decades have witnessed the rising frequency and severity of infectious diseases in the international context and their detrimental impacts on the corporate world as a…
Abstract
Purpose
The recent decades have witnessed the rising frequency and severity of infectious diseases in the international context and their detrimental impacts on the corporate world as a result of growing interconnection among nations. This study aims to examine the effect of previous infectious diseases (H5N1, H1N1 and MERS) on the disclosure of corporate social responsibility (CSR) among listed Chinese firms from 2006 to 2017.
Design/methodology/approach
Firm-level financial and CSR data of Chinese non-financial listed firms are from the China Stock Market and Accounting Research database. The data on corporate governance are collected from Bloomberg financial database. Three infectious diseases under examination are H5N1 (2006–2007), H1N1 (2009–2010) and MERS (2015–2016). This study uses the fixed-effect estimations to account for time-invariant differences among the firms in the sample.
Findings
The results reveal that Chinese firms disclose less CSR information during the time of public health crises, and this impact is more pronounced in small-sized and low-growth firms. Besides, the analysis suggests that Chinese firms are becoming more resilient to infectious diseases.
Research limitations/implications
The findings provide implications for corporate stakeholders to understand corporate policies under uncertainties and inform vulnerable businesses to develop an appropriate CSR strategy in preparation for future health calamities.
Originality/value
This study provides new insights into how businesses react to previous epidemics and pandemics at different scales other than the COVID-19 pandemic. Besides, the findings shed light on the dynamic of firms’ CSR engagement during and after the infectious outbreaks.
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Khanh Hoang, Long Phi Tran, Van Thuy Vu and Minh Duy Vu
This paper aims to investigate the nonlinear relationship between corporate social performance (CSP) and economic policy uncertainty (EPU).
Abstract
Purpose
This paper aims to investigate the nonlinear relationship between corporate social performance (CSP) and economic policy uncertainty (EPU).
Design/methodology/approach
This paper uses panel regression techniques to examine a sample consisting of UK-listed non-financial companies during 2000–2018.
Findings
The authors found that EPU increases corporate social responsibility which suggests that firms become more socially proactive during the period of heightened EPU. Such countermeasure enhances CSP and is likely a part of a competitive strategy and an insurance mechanism to protect firms against uncertainty in long-term. Further analysis shows a nonlinear relationship between the two factors, suggesting that in a heightened uncertain business environment, the insurance benefit generated by CSP is neutralised by the corresponding cost and, therefore, the positive relationship between EPU and CSP reverses.
Originality/value
This paper is the first to find a nonlinear relationship between CSP and EPU, indicating that too much uncertainty in macroeconomic policies deteriorates the benefits of CSP to the point that the CSP – EPU relationship becomes negative. The results suggest that policy uncertainty has both the bright side and the dark side where too many cooks eventually spoil the broth.
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Hung Ngoc Dang, Khanh Hoang, Van Thuy Vu and Linh Van Nguyen
This paper aims to investigate the linkage between corporate social responsibility (CSR) and earnings quality (EQ) in the context of Vietnam, an Asian emerging economy…
Abstract
Purpose
This paper aims to investigate the linkage between corporate social responsibility (CSR) and earnings quality (EQ) in the context of Vietnam, an Asian emerging economy characterized by high growth for decades and a socialist orientation. As CSR firms are expected to have high EQ, there arise concerns that corporate managers of CSR firms may use the reputation of the firm as a protection mechanism against the cost of earnings management.
Design/methodology/approach
The study uses a unique sample of Vietnamese CSR firms listed on Hanoi and Ho Chi Minh Stock Exchanges from 2015 to 2019. Several econometric tests are conducted to investigate whether corporate managers of CSR-active firms actively engage in earnings management and reduce the firms' EQ.
Findings
The empirical results show a negative impact of CSR on EQ, meaning that, in general, corporate managers of CSR firms in Vietnam opportunistically manage earnings. This confirms the paradox of the CSR–EQ relationship. In line with an emerging strand of research in the CSR literature, the finding suggests that the agency problem arises in CSR firms where corporate managers use their managerial discretion over accrual accounting to manipulate reported earnings.
Practical implications
The finding has practical implications for market participants and policymakers in improving monitoring mechanisms and enhancing the information environment in developing capital markets.
Originality/value
This is the first study in the literature that investigates and shows the paradox of the CSR–EQ relationship in the context of Vietnam, a new emerging economy that follows socialist orientation.
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The purpose of this study is to explore the effects of transformational leadership on learning organization and nurses' innovative behavior. Furthermore, this study aims to…
Abstract
Purpose
The purpose of this study is to explore the effects of transformational leadership on learning organization and nurses' innovative behavior. Furthermore, this study aims to explore the mediating role of learning organization in the relationship between transformational leadership and nurse innovative behavior in the healthcare context. As there is a paucity of research examining these relationships, this study bridges the research gaps in the literature.
Design/methodology/approach
A cross-sectional survey was used. Using convenience sampling, the data of 228 nurses from 5 public hospitals in Vietnam were collected via questionnaires. A structural equation model (SEM) was used to empirically test the hypotheses.
Findings
The findings show significant positive effects of transformational leadership on learning organization and nurses’ innovative behavior. Furthermore, a significant positive relationship between learning organization and nurses’ innovative behavior was also supported. Finally, the partial mediating role of learning organization is significant in this study.
Originality/value
To the best of the author's knowledge, this article is the first of its kind to identify the minimal literature available on the impact of transformational leadership on learning organization and nurses’ innovative behavior. This article also contributes to extending knowledge about the mediating role of learning organization in the healthcare context. Highlighting the importance of transformational leadership, the findings offer guidance for healthcare organizations that aim to strengthen nurses’ innovative behavior.
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Çağrı Aksoy-Hazır and Omer Faruk Tan
This study aims to examine whether geopolitical risk (GPR) impacts the cash holdings behavior of 210 Turkish firms between 2005 and 2019. The authors choose Turkey as a country of…
Abstract
Purpose
This study aims to examine whether geopolitical risk (GPR) impacts the cash holdings behavior of 210 Turkish firms between 2005 and 2019. The authors choose Turkey as a country of interest because Turkey has an important place in terms of geographical location and serves as a bridge between Europe and Asia. Considering the prominent role that can play in decision-making processes, the authors thought that analyzing the impact of GPR on the cash holdings determinants of Turkish firms would be important and interesting. A widely accepted view is that GPRs play an important role in the economic decisions of emerging countries, such as Turkey.
Design/methodology/approach
The authors examine models with fixed effects (FE), random effects (RE) and pooled ordinary least squares (POLS), respectively. First, the authors analyzed whether POLS, FE or RE would be the most appropriate model. According to the F-test and the Breusch–Pagan LM test, the FE and the RE models are more suitable than POLS. Then, according to the Hausman test results, the authors found that FE is this study's most appropriate model. After determining the validity of FE, the diagnostics tests of heteroscedasticity, autocorrelation and serial correlation tests are examined. Due to the presence of these problems, Driscoll and Kraay's (1998) test, which is the robust standard error estimator, is used.
Findings
The authors find a positive relationship between GPR and cash holdings after controlling firm-level control variables. Firms faced with uncertainty prefer to hoard cash as a precautionary measure. In keeping with real options theory, firms postpone the investments of firms under uncertain conditions. The use of alternative measurements for GPR and cash holdings ensures the validity of our results. The authors' research reveals that investors and politicians should pay more attention to the influence of GPR on the determinants of the cash holdings of firms.
Research limitations/implications
There are limitations for this study, but this study may provide opportunities for further studies. First, this study has only data from Turkey. This situation mitigates cross-country effects. In future studies, the number of firms, countries of focus and time span can be expanded. Second, this study does not consider the period of coronavirus disease 2019 (COVID-19) that increased risk and uncertainty worldwide. Further studies may consider the impact of COVID-19 and geographical risks relating to cash holdings. Third, the authors try to choose more relied independent and control variables.
Practical implications
The authors' results provide some insights that are relevant to practitioners and policymakers. Managers need to consider GPR in managers' financial decisions based on managers' firm-specific characteristics. Turkish policymakers should target improving policies to alleviate the negative effects of GPRs. Regulators should postulate more encouraging policies to firms in an environment of GPR. Regulators can give firms more time to understand and analyze the GPRs and the impacts of GPRs to adjust regulators' day-to-day activities.
Originality/value
There are fewer studies in the literature that analyzed the relationship between GPR and cash holdings. This study aims to full this gap in the literature.
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Salma Mokdadi and Zied Saadaoui
This paper aims to study the impact of geopolitical uncertainty on corporate cost of debt and the moderating role of information asymmetry between creditors and borrowing firms.
Abstract
Purpose
This paper aims to study the impact of geopolitical uncertainty on corporate cost of debt and the moderating role of information asymmetry between creditors and borrowing firms.
Design/methodology/approach
This study uses 5,223 firm-quarter observations on German-listed firms spanning 2010:Q1–2021:Q4. This study regresses the cost of debt financing on the geopolitical risk, accounting quality and other control variables. Information asymmetry is measured using the performance-matched Jones-model discretionary accrual and the stock bid-ask spread. It uses interaction terms to check if information asymmetry moderates the impact of geopolitical uncertainty on the cost of debts and control for the moderating role of business risk. For the sake of robustness check, it uses long-term cost of debt and bond spread as alternative dependent variables. In addition, this study executes instrumental variables regression and propension score matching to control for potential endogeneity problems.
Findings
Estimation results show that geopolitical uncertainty exerts a positive impact on the cost of debt. This impact is found to be more important on the cost of long-term debts. Information asymmetry is found to exacerbate the positive impact of geopolitical risk on the cost of debt. These results are robust to the change of the dependent variable and to the mitigation of potential endogeneity. At high levels of information asymmetry, this impact is more important for firms belonging to “Transportation”, “Automobiles and auto parts”, “Chemicals”, “Industrial and commercial services”, “Software and IT services” and “Industrial goods” business sectors.
Research limitations/implications
Geopolitical uncertainty should be seriously considered when setting strategies for corporate financial management in Germany and similar economies that are directly exposed to geopolitical risks. Corporate managers should design a comprehensive set of corporate policies to improve their transparency and accountability during increasing uncertainty. Policymakers are required to implement innovative monetary and fiscal policies that take into consideration the heterogeneous impact of geopolitical uncertainty and information transparency in order to contain their incidence on German business sectors.
Originality/value
Despite its relevance to corporate financing conditions, little is known about the impact of geopolitical uncertainty on the cost of debt financing. To the best of the authors’ knowledge, there is still no empirical evidence on how information asymmetry between creditors and borrowing firms shapes the impact of geopolitical uncertainty on the cost of debt. This paper tries to fill this gap by interacting two measures of information asymmetry with geopolitical uncertainty. In contrast with previous studies, this study shows that the impact of geopolitical uncertainty on the cost of debt is non-linear and heterogeneous. The results show that the impact of geopolitical uncertainty does not exert the same impact on the cost of debt instruments with different maturities. This impact is found to be heterogeneous across business sectors and to depend on the level of information asymmetry.
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This paper aims to examine the effects of firm size on audit proposal readability and audit proposal readability on auditor selection using readability metrics.
Abstract
Purpose
This paper aims to examine the effects of firm size on audit proposal readability and audit proposal readability on auditor selection using readability metrics.
Design/methodology/approach
Adopting the Flesch reading ease readability formula, the authors analyze the readability of 370 hand-collected audit proposals submitted by audit firms for US state and local governments’ audit service contracts.
Findings
The authors find differences in readability across audit firm size, specifically the proposals written by smaller firms are more readable than those submitted by larger firms. The results further indicate that readability metrics correlate with auditor selection, i.e. an increase in audit proposal readability from the first to third quartile improves the likelihood of a firm winning the engagement by about 6 per cent, ceteris paribus. In addition, while audit fees and an existing auditor–client relationship are associated with engagement success, proxies for audit quality (i.e. audit firm size, audit experience of lead partner) are not.
Research limitations/implications
The Flesch reading ease measure is a simple linear combination of text attributes, which assumes that readability is a single, unidimensional construct. Simple readability metrics, such as the Flesch reading ease, may confound environmental complexity with readability.
Practical implications
Readability improves audit proposal success.
Originality/value
The results provide insight to accounting stakeholders regarding the potential influence of readability on audit firm selection. In short, readability matters.
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Hang Thi Thuy Le, Huy Viet Hoang and Nga Thi Hang Phan
This study investigates the impact of the COVID-19 pandemic on financial stability in Vietnam, a developing country characterized by a bank-based financial system.
Abstract
Purpose
This study investigates the impact of the COVID-19 pandemic on financial stability in Vietnam, a developing country characterized by a bank-based financial system.
Design/methodology/approach
Using a sample of daily data from January 23, 2020 to June 30, 2022, the VECM and NARDL models are employed to study Vietnam’s financial stability in face of the COVID-19 disaster. Following the literature on COVID-19, the authors measure the impact of the pandemic by the number of daily infected cases and the national lockdown. Given the reliance of the Vietnamese government on the banking system to regulate the economy, the authors evaluate financial stability from the interbank market and stock market perspectives.
Findings
The authors find that the pandemic imposes a destructive effect on financial stability during the early time of the pandemic; however, the analysis with an extended period indicates that this effect gradually fades in the long term. In addition, from the NARDL results, the authors reveal an asymmetric relationship between the financial market and the COVID-19 pandemic in both short term and long term.
Research limitations/implications
An implication drawn from this study is that unprecedented health disasters should be resolved by unprecedented stringent countermeasures when conventional methods are ineffective. Although rigorous remedies may increase short-term liabilities, their implementation quickly ceases disease diffusion and helps an economy enter the recovery stage in a timelier manner.
Originality/value
The study is the first to examine the impact of the COVID-19 pandemic on financial stability, via the interbank market lens, in a developing country that relies on the bank-based financial system.
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Jingyu Gao, Tian Kong, Yuzhu Yang and Lili Hao
Although various stakeholder groups frequently advocate and call for greater heterogeneity among directors and managers, it remains unknown whether team heterogeneity can be…
Abstract
Purpose
Although various stakeholder groups frequently advocate and call for greater heterogeneity among directors and managers, it remains unknown whether team heterogeneity can be beneficial for audit committee to exercise the auditor selection functions. This study aims to address this question.
Design/methodology/approach
Drawing on a sample of domestically listed nonfinancial A-share firms in China from 2008 to 2022, the authors empirically examine whether and how firm’s audit committee heterogeneity associates with the selection of auditors.
Findings
Firms with higher levels of audit committee heterogeneity are more likely to be associated with lower-quality auditors. Further examination reveals the mediating role of risk-taking: higher levels of heterogeneity are associated with higher levels of risk-taking, influencing firms to employ lower-quality auditors. Moreover, the authors document that increased audit committee heterogeneity is associated with more audit committee meetings and lower audit efficiency, and that hiring lower-quality auditors can influence the market value of firms with high audit committee heterogeneity.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine whether and how audit committee erogeneity associates with the selection of auditors. Moreover, because China is a high-power distance, collectivism-oriented, more relations-based (i.e. guanxi-based) than rules-based society, it is critical to examine the influence of team heterogeneity based on the unique cultural context and transitional nature of China’s business environment.