All over the world, Bangladesh is well known as a flood- and cyclone-affected country. But in the recent years the slow onset disaster of drought is more frequent in Bangladesh…
Abstract
All over the world, Bangladesh is well known as a flood- and cyclone-affected country. But in the recent years the slow onset disaster of drought is more frequent in Bangladesh due to climatic as well as nonclimatic variability. As a consequence, agriculture along with its dependent farmers’ livelihoods tremendously experience its adverse impacts. Therefore, the main focus of this chapter is to discuss about drought, its effects on different sectors, and how in different levels a number of drought risk management actions are carried out to cope with this insidious disaster in the context of Bangladesh.
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Umma Habiba, Md. Anwarul Abedin, Rajib Shaw and Abu Wali Raghib Hassan
Salinity is one of the major problems in the coastal region of Bangladesh that contributes to 20% of the total land area. About 53% of the coastal region is affected by different…
Abstract
Salinity is one of the major problems in the coastal region of Bangladesh that contributes to 20% of the total land area. About 53% of the coastal region is affected by different degrees of salinity. Salinity intrusion in this area is mainly derived through climate change as well as anthropogenic factors that make this region more vulnerable. Hence, salinity intrusion has adverse effects on water, soils, agriculture, fisheries, ecosystem, and livelihoods of this region. To ensure the availability of food as well as drinking water, this chapter highlights how individual and community people have endeavored several adaptation measures to minimize salinity effects. Moreover, it further discloses governmental and other development organizations’ actions toward salinity to reduce its impacts.
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Fahham Hasan Qaiser, Karim Ahmed, Martin Sykora, Alok Choudhary and Mike Simpson
Decision making in logistics is an increasingly complex task for organizations as these involve decisions at strategic, tactical and operational levels coupled with the…
Abstract
Purpose
Decision making in logistics is an increasingly complex task for organizations as these involve decisions at strategic, tactical and operational levels coupled with the triple-bottom line of sustainability. Decision support systems (DSS) played a vital role in arguably solving the challenges associated with decision making in sustainable logistics. The purpose of this paper is to explore the current state of the research in the domain of DSS for logistics while considering sustainability aspects.
Design/methodology/approach
A systematic review approach using a set of relevant keywords with several exclusion criteria was adopted to identify literature related to DSS for sustainable logistics. A total of 40 papers were found from 1994 to 2015, which were then analyzed along the dimensions of publishing trend, geographic distribution and collaboration, the most influential journals, affiliations and authors as well as the key themes of identified literature. The analysis was conducted by means of bibliometric and text mapping tools, namely BibExcel, gpsvisualizer and VOSviewer.
Findings
The bibliometric analysis showed that DSS for sustainable logistics is an emerging field; however, it is still evolving but at a slower pace. Furthermore, most of the contributing affiliations belong to the USA and the UK. The text mining and keyword analysis revealed key themes of identified papers. The inherent key themes were decision models and frameworks to address sustainable logistics issues covering transport, distribution and third-party logistics. The most prominent sustainable logistics issue was carbon footprinting. Social impact has been given less attention in comparison to economic and environmental aspects. The literature has adequate room for proposing more effective solutions by considering various types of multi-criteria decision analysis methods and DSS configurations while simultaneously considering economic, environmental and social aspects of sustainable logistics. Moreover, the field has potential to include logistics from wide application areas including freight transport through road, rail, sea, air as well as inter-modal transport, port operations, material handling and warehousing.
Originality/value
To the best of the authors’ knowledge, this is the first systematic review of DSS for sustainable logistics using bibliometric and text analysis. The key themes and research gaps identified in this paper will provide a reference point that will encourage and guide interested researchers for future study, thus aiding both theoretical and practical advancements in this discipline.
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A.K.M. Waresul Karim, Tony van Zijl and Sabur Mollah
The purpose of this paper is to examine the impact of corporate governance on auditor quality choice by IPO companies in an emerging market setting. It seeks to identify whether…
Abstract
Purpose
The purpose of this paper is to examine the impact of corporate governance on auditor quality choice by IPO companies in an emerging market setting. It seeks to identify whether efficiency or opportunism is the driving force behind the choice of auditors in Bangladeshi firms going public. We try to see whether ownership concentration in the hands of a owner‐CEO wins over foreign shareholders in the contest of ensuring financial reporting quality.
Design/methodology/approach
Multivariate analysis has been carried out on all IPOs made during 1990 to 2005 whose financial statements were available. Logistic regression tool has been used to identify client's corporate governance attributes affect their choice of auditors. In total, three corporate governance attributes – CEO‐Chair duality, retained ownership, and foreign equity participation – were used to test the impact of ownership structure on auditor choice.
Findings
Our findings from logistic regression suggest that CEO‐Chair duality and the degree of foreign equity participation are significant determinants of auditor choice while proportion of board ownership is not. In addition, issuer size and whether the issuer is a green field operation also influence auditor choice while the length of a firm's operating history does not seem to matter. The findings support agency theory prediction that (at least one category of) principals (foreign shareholders in this case), are likely to trade‐off higher monitoring costs (of hiring a higher quality auditor) with agency costs arising from asymmetric information, primarily borne by absentee owners.
Originality/value
The work is based on empirical data directly from company financial statements. It uses audited financial statements and makes objective analysis of auditor choice dynamics in a frontier market that demonstrated significant growth of IPO activity in recent years.
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Simon Archer and Rifaat Ahmed Abdel Karim
This paper aims to examine the issue that arises in the context of benchmark rate (or interest rate) changes made for reasons of monetary policy in a jurisdiction with a…
Abstract
Purpose
This paper aims to examine the issue that arises in the context of benchmark rate (or interest rate) changes made for reasons of monetary policy in a jurisdiction with a significant presence of Islamic banks. Changes, especially increases, in the prevailing interest rate made by central banks raise issues of asset-liability management for banks, which typically have longer maturities on the asset side than on the liabilities side, resulting in exposure to interest rate risk for conventional banks, and what is known as rate of return (RoR) risk for Islamic banks, which for reasons of compliance with Islamic religious law (Shari’ah) do not use interest in their operations. Islamic banks use various financial instruments which reflect the cost of funds by means of contracts of sale on credit or of leasing or forms of partnership, which allow them to earn returns on their funds and to pay returns to customers who deposit funds with them.
Design/methodology/approach
The methodology of this study consisted of a descriptive analysis of the relevant characteristics of Islamic banks and their economic and regulatory environments, illustrated by a case study approach applied to two jurisdictions, namely, Sudan and Malaysia.
Findings
In jurisdictions where Islamic banks represent a significant share of the market for financial services, if the contracts used in Islamic financing allow for periodic adjustments of the profit rate or lease rental, this could result in a significant impediment to the full implementation of monetary policy and hence to the maintenance of financial stability.
Originality/value
This study is (to the best of authors’ knowledge) the first thorough analysis in the literature of the issues arising from the exposure of Islamic banks to RoR risk and has clear implications for regulatory and central bank policy.
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Salah Alhammadi, Simon Archer, Carol Padgett and Rifaat Ahmed Abdel Karim
The purpose of this paper is to examine the practices of Islamic banks in managing the so-called profit sharing investment accounts (PSIA) which they offer as a Shari’ah-compliant…
Abstract
Purpose
The purpose of this paper is to examine the practices of Islamic banks in managing the so-called profit sharing investment accounts (PSIA) which they offer as a Shari’ah-compliant alternative to interest-bearing deposit accounts using an unrestricted Mudarabah contract. In particular, the paper aims to examine the risk-return characteristics of such accounts and to compare these to the returns and risks of shareholders in the same banks. It is relevant that PSIA holders (unrestricted investment account holders – UIAH) are exposed to losses on the assets in which their deposits are invested, while the bank as asset manager (Mudarib) does not bear these losses and as Mudarib typically receives more than 50 per cent of the profits earned on the PSIA. The issue is whether the UIAH are being treated equitably. The influence of a set of corporate governance variables on this issue was also analyzed.
Design/methodology/approach
A sample of 28 Islamic banks was selected from five countries for the period 2002-2013, with data being obtained from Bankscope and Bloomberg and, where necessary, from the banks’ annual reports. First, the risk-return characteristics of the UIAHs’ rates of return and shareholders’ rates of return on equity (ROE) were compared by calculating for each bank the coefficients of variation (CV) of the two series of rates of return. Second, a panel data approach was used to evaluate the effectiveness of corporate governance by examining the extent to which the size of the difference between the rates of return for shareholders and for UIAH was associated with a set of corporate governance variables. Third, a comparison was made between the risk-return characteristics of UIAH’s rates of return and shareholders’ dividend yield rate for a sub-sample of 20 banks for which the information was available.
Findings
For a significant proportion of the banks (9 out of 28), the CVs of the PSIA returns were higher than those of the shareholders’ ROEs, which suggested that in these cases the PSIA holders were receiving inequitable treatment. Likewise, for 7 out of the 20 banks in the sub-sample, the CVs of the PSIA holders’ rates of return were higher than those of the shareholders’ dividend yield rate. In explaining the size of the differences between the rates of return on PSIA and the shareholders’ ROEs, the variable with the greatest explanatory power was the return on assets, implying that when this was high the bank took a maximum Mudarib share of profits. Some other corporate governance variables had the expected signs, as did a country dummy representing the maturity of the market for Islamic banking, but there was little evidence of the effectiveness of corporate governance in protecting the interests of the UIAH.
Research limitations/implications
A limitation of the research was that the inefficiency of the stock markets in the relevant countries and the fact that a few of the banks were not listed made it impossible to use shareholders’ stock market returns. ROE is not a very good proxy, as it is unclear how much value should be placed on retained earnings. Dividend yield rates provide a better comparison with UIAH rates of return, but the data were available for only 20 of the banks. Nevertheless, the results of the analysis strongly suggest that in a significant proportion of cases, UIAH are not being treated equitably.
Practical implications
The implication is that the regulation of Islamic banks needs to be improved to provide better protection to UIAH.
Social implications
Islamic banks operate mainly in emerging markets where the effectiveness of regulation is limited. The ethical basis of Islamic finance provides some mitigation of this problem but apparently fails to do so in a significant proportion of cases. This should be borne in mind when assertions are made about the ethical basis of Islamic finance.
Originality/value
There is a dearth of empirical studies of the practices of Islamic banks and in particular of their treatment of their customers. This is because of various factors: the relative novelty of Islamic finance, the paucity of data and the relatively small size of the body of researchers in the field. This paper aims to contribute to filling this gap.
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Khaled Samaha and Hichem Khlif
The purpose of this paper is to review a synthesis of theories and empirical studies dealing with the adoption of and compliance with IFRS in developing countries in an attempt to…
Abstract
Purpose
The purpose of this paper is to review a synthesis of theories and empirical studies dealing with the adoption of and compliance with IFRS in developing countries in an attempt to provide directions for future research.
Design/methodology/approach
The review focusses on four main streams including: first, the motives for IFRS adoption; second, corporate characteristics and the degree of compliance with IFRS; third, the economic consequences of IFRS adoption and finally; fourth, the use of regulation as an enforcement mechanism to monitor compliance with IFRS. The authors review empirical studies specifically devoted to developing countries.
Findings
Regarding the first stream relating to IFRS adoption, the macroeconomic decision of adopting IFRS in developing countries can be justified by two main theories which are: the economic theory of network (Katz and Shapiro, 1985) and isomorphism (DiMaggio and Powell, 1991), however, empirical evidence in developing countries to confirm these theories is limited. Regarding the second stream relating to corporate characteristics and the degree of compliance with IFRS, the authors find that the results are mixed. Regarding the third stream relating to the economic consequences of IFRS adoption, it seems that the evidence is still limited in developing countries especially with respect to the impact of IFRS adoption on foreign direct investment, cost of equity capital and earnings management. Regarding the fourth and final stream in relation to regulation, enforcement and compliance with IFRS, the authors find that research is very limited. It was evidenced in the very few research studies conducted, that global disclosure standards are optimal only if compliance is monitored and enforced by efficient institutions.
Practical implications
The author’s study attempts to provide a foundational knowledge resource that will inform practitioners, researchers and regulators in developing countries about the relevance of the different theories that exist in the accounting literature to explain the adoption of and compliance with IFRS.
Originality/value
Compared to developed countries, the four streams outlined remain under-researched in developing countries. Therefore, researchers should examine these topics in developing countries to inform practitioners, regulators and the capital market about the effects of adopting IFRS and their relevance to developing countries. In addition, researchers should embark on identifying new theories to explain the adoption of and compliance with IFRS in developing countries that take into consideration the socioeconomic culture of these settings.
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The Egyptian Revolution gave birth to an intriguing community of graffiti artists that have been going through successful social learning processes. The naturally formed learning…
Abstract
Purpose
The Egyptian Revolution gave birth to an intriguing community of graffiti artists that have been going through successful social learning processes. The naturally formed learning groups provided a fertile substance for social learning research and called for a comparison between the nature and elements of social learning and those of the learning taking place in the more traditional settings in an attempt to magnify factors of success. The purpose of this paper is to draw upon Wenger’s (1998) theory of Communities of Practice (CoP) and examines three major elements of learning in relation to it; namely, motivation, social practice, and the role of experts.
Design/methodology/approach
The paper offers an in-depth analysis of perceptions of six Egyptian graffiti artists of their learning experiences.
Findings
The paper argues that the motivational factor is underdeveloped in Wenger’s theory and that a concept that encompasses a combination of intrinsic motivation (IM) and identified regulation would provide a more accurate description of the driving force of a successful social learning process.
Research limitations/implications
Although a snowballing approach was adopted, reaching the interviewees was not an easy task for security reasons; therefore, limiting the number to six was forced upon the researcher. Yet, a sense of saturation was reached. The paper underlines the vital role of social practice, which places meaning at the centre of learning, calls for revisiting the role of experts in Wenger’s theory and claims its marginality.
Originality/value
Conclusions of this study suggest that the idea of a combination of passion and goal as core components of a CoP is an underdeveloped concept in Wenger’s (1998) theory and that outward motivational factors need to be discarded from the equation. This research proposes that a combination of IM and identified regulation provide a more accurate description of the driving force of a successful social learning process.
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AKM Waresul Karim and Tanweer Hasan
The purpose of this paper is to provide a comprehensive analysis of the audit services market in Bangladesh. It explores the trend in audit fees over a period of 14 years and…
Abstract
Purpose
The purpose of this paper is to provide a comprehensive analysis of the audit services market in Bangladesh. It explores the trend in audit fees over a period of 14 years and shows that in real terms audit fees have actually been declining although in nominal terms it appears otherwise. The study aims to expand the domain of audit fee literature by determining audit concentration in the market and thereby showing how the market is not dominated by the so‐called Big Four firms. The paper also examines the degree of inside ownership as a possible determinant of audit fees.
Design/methodology/approach
The paper employs a multivariate analysis of estimating audit fees against mainly client‐specific attributes. It computes Helfindahl Index to measure audit concentration in the market.
Findings
Results from the multivariate analysis show that the degree of inside ownership inversely affects audit fees. Client size and their multinational affiliation have a significant positive effect on audit fees. Firms in the financial sector also tend to pay significantly higher audit fees in Bangladesh. The reported inverse relationship between the audit fee and proportion of inside‐ownership in the auditee firm indicates, per agency theory prediction, that firms with more diverse ownership in Bangladesh pay more in audit fees. However, contrary to the findings in prior empirical studies, audit fee was reported to be significantly negatively related to audit complexity. As the audit complexity measure is revised, the variable ceases to be a significant driver of audit fees. This could be attributable to a methodological flaw in the traditional method of measuring audit fees as the ratio of inventory and receivables to total assets or to increased efficiency achieved by auditors via scale economies while auditing companies owned essentially by the same group of people.
Research limitations/implications
The main limitation of the paper is that the closing period of the data is 2003, although there is no evidence to believe that the general determinants of audit fees have changed in Bangladesh since 2003.
Practical implications
A decline in real audit fees is a matter of concern for the quality of audit services because it may impede audit firms to invest in talent and other forms of audit technology essential to delivering a high quality audit. It may also have wider implications on the quality of financial reporting in the country.
Social implications
If the audit fees do not increase keeping pace with general power, the profession would struggle to recruit talented individuals to the auditing profession. This may have longer‐term social implications as it may drive away potential graduates with little or no parental resources to support them to develop an accounting career with substantial dependence on family funds.
Originality/value
The current study is the first to introduce ownership structure based perspective, in a multivariate format, to explain what drives audit fees in a developing country setting. It also is the first to compute audit concentration in a developing country context. This is the first paper to present audit fee trend in real terms, i.e. inflation adjusted, client size adjusted, and so on.
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The purpose of this paper is to examine the classification of profit-sharing investment accounts (PSIAs) under various accounting standards, and determine whether Islamic banks…
Abstract
Purpose
The purpose of this paper is to examine the classification of profit-sharing investment accounts (PSIAs) under various accounting standards, and determine whether Islamic banks maintain uniform practices when the same accounting standards are applied. It also aims to determine whether Islamic banks consider investment account holders (IAHs) important financial statement users by disclosing necessary information pertaining to PSIAs.
Design/methodology/approach
A sample composed of financial statements from 63 Islamic banks from 15 countries is compared with respect to the information related to PSIAs.
Findings
The results show heterogeneity of classification for PSIAs. Applying the same standards does not lead to the uniform classification of PSIAs when banks apply International Financial Reporting Standards, while financial statements applying Financial Accounting Standards by the Accounting and Auditing Organization for Islamic Financial Institutions are more similar. The perplexity in classifying PSIAs brings obscurity on the treatment for PSIA-related accounts, particularly returns attributable to IAHs. The fact of fewer disclosures pertaining to PSIAs in Islamic banks – which apply accounting standards not specifically tailored to Islamic finance – suggests that IAHs receive less attention under those accounting standards.
Research limitations/implications
The main limitation relates to the lack of financial statements available online and the possibility of sample selection bias toward larger Islamic banks.
Originality/value
This research contributes to the limited literature on accounting for PSIAs, and reveals the diversity of reporting methods for unique transactions in Islamic banks and the insufficiency of current accounting standards to guide them, which create possible challenges of comparability.