Looks at the practice of stipulating in international contracts which country’s law should govern any disputes that arise, using a governing‐law clause. Considers the regulations…
Abstract
Looks at the practice of stipulating in international contracts which country’s law should govern any disputes that arise, using a governing‐law clause. Considers the regulations relating to contractual matters of conflict of laws laid down by the 1980 Convention on the Law Applicable to Contractual Obligations, which exclude bills of lading unless they are regarded as non‐negotiable instruments. Outlines the treatment of conflict of laws relating to bills of lading under Greek, US and English law, citing legal cases as examples, and reveals that in all three legal systems the choice of the applicable law, set out in the contract itself, is included in the bill of lading. Uncovers contradictions in the Greek and English approaches to the contractual role of bills of lading, and suggests that a uniform approach must be adopted, following the lead of US legislation, which clearly specifies that the bill of lading is the contract of carriage in which the choice of law is explicitly stated.
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Globalisation is generally defined as the “denationalisation of clusters of political, economic, and social activities” that destabilize the ability of the sovereign State to…
Abstract
Globalisation is generally defined as the “denationalisation of clusters of political, economic, and social activities” that destabilize the ability of the sovereign State to control activities on its territory, due to the rising need to find solutions for universal problems, like the pollution of the environment, on an international level. Globalisation is a complex, forceful legal and social process that take place within an integrated whole with out regard to geographical boundaries. Globalisation thus differs from international activities, which arise between and among States, and it differs from multinational activities that occur in more than one nation‐State. This does not mean that countries are not involved in the sociolegal dynamics that those transboundary process trigger. In a sense, the movements triggered by global processes promote greater economic interdependence among countries. Globalisation can be traced back to the depression preceding World War II and globalisation at that time included spreading of the capitalist economic system as a means of getting access to extended markets. The first step was to create sufficient export surplus to maintain full employment in the capitalist world and secondly establishing a globalized economy where the planet would be united in peace and wealth. The idea of interdependence among quite separate and distinct countries is a very important part of talks on globalisation and a significant side of today’s global political economy.
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This study examines the impact of annual report disclosures on analysis' forecasts for a sample of firms listed on the Stock Exchange of Singapore (SES). We examine the relation…
Abstract
This study examines the impact of annual report disclosures on analysis' forecasts for a sample of firms listed on the Stock Exchange of Singapore (SES). We examine the relation between the level of corporate disclosure and accuracy of analysts' earnings forecasts, dispersion in analysts' earnings forecasts, and the size of analyst following. The results reveal that the level of annual report disclosures is positively related to the accuracy of earnings forecasts by analysts, provided there is no big earnings surprise, and is also positively related to analyst following. We also find that the level of corporate disclosure is negatively related to dispersion in analysts' earnings forecasts provided there is no big earnings surprise. Tints, this study shows that more corporate disclosures by Singapore firms lead to more accuracy and less dispersion in the earnings forecasts among analysts. Furthermore, greater corporate disclosure can also lead to greater analyst interest in the firm.
Li Li Eng, Mahelet Fikru and Thanyaluk Vichitsarawong
The purpose of this paper is to examine the impact of sustainability disclosures and disclosure ratings on firm value. This paper compares the informativeness of sustainability…
Abstract
Purpose
The purpose of this paper is to examine the impact of sustainability disclosures and disclosure ratings on firm value. This paper compares the informativeness of sustainability disclosures in company reports versus environmental, social and governance (ESG) disclosure ratings. The authors examine the extent to which they provide incremental information.
Design/methodology/approach
The sample consists of panel data from over 2,600 publicly-listed non-financial US companies for the period 2014–2018. The authors obtain sustainability disclosures from Sustainability Accounting Standards Board (SASB) Navigator and ESG disclosure scores from Bloomberg. The authors regress market value and/or stock price on sustainability disclosures and ESG scores to evaluate information content.
Findings
ESG scores are positively associated with market value and price. Sustainability disclosures in the form of metrics and company-tailored narratives provide incremental information content on market value and/or price. Boilerplate disclosures reduce market value and price. Sustainability disclosures and ESG scores provide incremental information, suggesting that it would be beneficial to harmonize standards for reporting sustainability disclosures.
Research limitations/implications
The limitation is that the authors have only considered sustainability disclosures for a sample of US companies from two sources – SASB Navigator and Bloomberg.
Practical implications
The paper provides some evidence that may be pertinent to the debate on whether to harmonize the guidance on reporting sustainability issues.
Social implications
The paper provides evidence on the benefits to firms for reporting sustainability issues.
Originality/value
This paper is among the first to analyze company sustainability disclosures obtained from two different sources – SASB Navigator and ESG disclosure ratings – and compare them for relevance for company valuation. With SASB Navigator, the authors obtain further refinement into the nature of the information provided in the sustainability disclosures, that is, boilerplate, company-tailored or metrics disclosures.
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Li Li Eng and Qianhua (Q) Ling
The purpose of this paper is to examine whether both country disclosure environment and firm‐level disclosures are associated with cross‐listing in the USA or London or otherwise.
Abstract
Purpose
The purpose of this paper is to examine whether both country disclosure environment and firm‐level disclosures are associated with cross‐listing in the USA or London or otherwise.
Design/methodology/approach
The authors test the association using a sample of Asia‐Pacific firms covered in the Standard and Poor's, 2001/2002 disclosure survey, capturing the country‐level disclosure using the Center for International Financial Analysis and Research (CIFAR) score. The firm‐level disclosure is measured using the S&P disclosure score. The authors conduct a logistic regression analysis and a two‐stage least squares analysis to examine whether the outcome, cross‐listing or not, is associated with the country disclosure environment and firm‐level disclosures.
Findings
The authors find that Asia‐Pacific firms from weak disclosure environments and having higher firm‐level disclosure scores are more likely to seek listing in the USA. Further, the paper provides initial evidence that these Asia‐Pacific firms are as likely to seek listing in London as in the USA. No significant difference was found in S&P scores between US and London cross‐listings after controlling for the effects of other variables. This suggests that firms that cross‐list in London present similar disclosure levels to firms that cross‐list in the USA.
Originality/value
The paper's findings contribute to the cross‐listing literature on disclosure by showing that the interaction between firm‐level disclosure and country‐level disclosure has an impact on whether a firm cross‐lists in the USA/London or not. The authors' comparison of US cross‐listings versus London cross‐listings provides the first evidence that disclosures of US and London cross‐listings are not significantly different.
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This paper aims to compare the quality of financial reporting (or accounting quality) of firms cross‐listed in Germany and the United Kingdom relative to domestic firms that are…
Abstract
Purpose
This paper aims to compare the quality of financial reporting (or accounting quality) of firms cross‐listed in Germany and the United Kingdom relative to domestic firms that are not cross‐listed in Germany and the United Kingdom.
Design/methodology/approach
The authors assess financial reporting quality based on five measures of earnings management; two measures of timely loss recognition; and the explanatory power (R2) of three models of stock price and returns association with accounting data. Accounting quality is associated with less earnings management, more timely loss recognition and higher stock price/returns association with accounting data.
Findings
The authors find that there is no difference in financial reporting quality of firms cross‐listed in Germany and the United Kingdom and domestic firms that do not cross‐list in these countries. They further find that German and UK cross‐listing firms have lower accounting quality than US cross‐listing firms.
Research limitations/implications
The study is subject to some limitations. Cross‐listing firms may be different from non‐cross‐listing firms in characteristics other than country, size and cross‐listing, the variables used to match the firms. The authors also lose quite a number of observations due to the matching process and therefore are limited by a small sample size.
Originality/value
This paper contributes to a growing literature on cross‐listing and quality of financial reporting. The authors extend Lang et al.'s work to exchanges outside of the USA. They provide further support for Coffee, and Lang et al. that firms cross‐listed in the USA conform to higher reporting standards than others, in particular in comparison with firms cross‐listed in Germany.
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Rim Zouari-Hadiji and Wafa Mroua
This study aims to examine the effect of audit quality (auditor expertise and discretionary accruals) on financial communication quality and to distinguish the moderating role of…
Abstract
Purpose
This study aims to examine the effect of audit quality (auditor expertise and discretionary accruals) on financial communication quality and to distinguish the moderating role of corporate governance mechanisms (board size, CEO duality, board gender diversity and block ownership) on this relationship.
Design/methodology/approach
Linear regression is used to analyze the annual reports of 150 nonfinancial firms that belong to the CAC All-tradable index for the period 2015–2023.
Findings
The empirical results show that auditor expertise has a positive and significant effect on financial communication quality. Furthermore, board size reinforces the negative effect of discretionary accruals on financial communication quality. However, CEO duality and block ownership attenuate the positive effect of auditor expertise on the dependent variable.
Research limitations/implications
Our research covers three areas of research, i.e. audit quality, corporate governance and financial communication research. It presents the moderator role of some governance mechanisms on the relation between audit and financial communication quality. Furthermore, it aims to identify best practices in the governance system that attempt to facilitate and improve the positive impact of audit quality on the quality of financial communication, which increases stakeholder confidence in the firm. We caution readers from generalizing the findings of this study, as our study is based on a well-developed sample. Also, it is limited only to annual reports to measure the financial communication index without looking at other information transmission channels.
Originality/value
This study investigates the moderating role of internal governance mechanisms in the relationship between audit quality and financial communication quality in the French context.
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Li Li Eng, Bih-Ru Lea and Ran Cai
This chapter provides guidance on the types of questions appropriate for use with clickers in an introductory financial accounting course. This study further examines whether the…
Abstract
This chapter provides guidance on the types of questions appropriate for use with clickers in an introductory financial accounting course. This study further examines whether the use of clickers improved learning outcomes as measured by the students’ test scores. Our findings show that students had a positive experience with using clickers. We find that test scores were higher in the semester when we used clickers compared with the semester when we did not use clickers. Clicker scores also were positively associated with students’ test scores. Clickers may serve as a useful educational tool to assess assurance of learning of introductory financial accounting. The instructor receives immediate feedback regarding students’ understanding of the materials, and the students also receive feedback about whether their understanding is correct. Both the instructor and students can then work on reviewing materials that the class does not understand well.
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Siriwan Kitchot, Sununta Siengthai and Vatcharapol Sukhotu
This paper aims to investigate the relationships among supply chain management (SCM) implementation, human resource management (HRM) practices and small- and medium-sized…
Abstract
Purpose
This paper aims to investigate the relationships among supply chain management (SCM) implementation, human resource management (HRM) practices and small- and medium-sized enterprises (SMEs) firm performance in Thailand. It further examines whether HRM practices have a mediating effect on such relationship.
Design/methodology/approach
A survey instrument was developed based on the literature review which then was verified by SCM expert opinions. Cross-sectional surveys of sample employees of SMEs in Thailand were undertaken by both direct and mail surveys. Of about 779 questionnaires distributed, 203 usable questionnaires were returned. Structural equation modeling (SEM) was performed to analyze the obtained data.
Findings
The statistical results reveal that SCM indirectly improves firm performance of small- and medium-sized firms through HRM practices. The latter, HRM practices, is found to fully mediate the impact of SCM implementation on SME firm performance. These results suggest that SCM cannot enhance SME firm performance if its implementation is undertaken without effective HRM practices.
Originality/value
This study identified the research gap in SCM areas by recognizing the scarcity of research on SCM in SMEs and by identifying and integrating HRM practices as a significant behavioral support system to SCM implementation in SMEs. Its results reveal that HRM practices fully mediates the impact of SCM on SMEs’ firm performance.
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Farhad Panahifar, P.J. Byrne, Mohammad Asif Salam and Cathal Heavey
The purpose of this paper is to identify and assess the interrelationships between various characteristics of information sharing and trust and their criticality for effective…
Abstract
Purpose
The purpose of this paper is to identify and assess the interrelationships between various characteristics of information sharing and trust and their criticality for effective information-centred supply chain collaboration initiatives and, in turn, its criticality to overall firm’s performance.
Design/methodology/approach
A survey of 189 executives from different firms was conducted and the resulting data were analysed to investigate how collaboration enablers affect effective collaboration and to determine its impacts on organisational performance. Structural equation modelling through partial least squares is used to study the relationships between four enablers (trust, information readiness, information accuracy and information security), perceived collaboration success, and two outcomes (sales growth and overall operational performance).
Findings
The empirical results indicate that three collaboration enablers including trust, information readiness and secure sharing of information improve supply chain collaboration. The present study finds that “secure sharing of information” was the most important factor in fostering information sharing-centred collaboration. The present study also demonstrates that effective collaboration positively and significantly influences on firm’s performance.
Practical implications
This study provides researchers and practitioners with a more comprehensive understanding about the information sharing-centred collaboration, its enablers and effects on firms’ performance in a supply chain context. Future research should focus on developing additional constructs that may capture other drivers of effective collaboration.
Originality/value
The present study makes an empirical contribution to the body of knowledge by investigating an integrated framework focussing on the enablers of collaboration through information sharing and its impact on firms’ performance.