Tarek Eldomiaty, Ahmad Soliman, Ahmed Fikri and Marwa Anis
The purpose of this paper is to examine the financial aspects of high vs low-ranked firms in the Corporate Responsibility Index in Egypt, and to construct a Z-score model to…
Abstract
Purpose
The purpose of this paper is to examine the financial aspects of high vs low-ranked firms in the Corporate Responsibility Index in Egypt, and to construct a Z-score model to discriminate between high- and low-ranked firms in the Corporate Responsibility Index.
Design/methodology/approach
This study empirically examines a comprehensive list of financial ratios for 24 firms listed in EGX30 for four fiscal years, 2007-2010. The authors calculate 90 financial ratios to provide better insights and evaluation of the firms’ financial performance. The ordinary least square regression method and discriminant analysis are utilized to explain differences between the low- and high-ranked firms regarding their corporate social governance index.
Findings
The results show that corporate governance and corporate social responsibility (CSR) are positively related to the firms’ financial performance in terms of sales turnover and customer loyalty. This suggests that in the long run, the market mechanism should be able to provide additional resources to those companies that are better at maximizing a widely defined bottom line of their social governance. The results also show that highly ranked firms are characterized financially by: strong bargaining power with suppliers; financing growth in fixed assets using debt mainly.
Originality/value
The study contributes to the literature in terms of providing practical insights on the financial strategies that help support effective CG and CSR in Egypt. In addition, this study offers a unique quantitative attempt to measure and examine the benefits of incorporation of socioeconomics into business practices.
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Marwa Moalla, Bassem Salhi and Anis Jarboui
This study empirically tests a comprehensive set of relevant factors to explain environmental reporting quality. This study aims to understand whether environmental assurance has…
Abstract
Purpose
This study empirically tests a comprehensive set of relevant factors to explain environmental reporting quality. This study aims to understand whether environmental assurance has a direct effect on “environmental reporting quality”. In addition, this study also aims to examine the relationship between corporate governance and the quality of environmental reporting as measured by voluntary and timely reporting.
Design/methodology/approach
A number of econometric techniques are used including panel data specifications using a sample of French listed companies in SBF120 for the period 2012–2017.
Findings
The results demonstrate that the presence of an environmental audit committee and the size of the environmental external assurance firm has a significant effect on the level of voluntary reporting of environmental information. The results also reveal that the presence of the environmental audit committee, as well as the corporate social responsibility (CSR) committee, the size of the environmental external assurance and corporate governance index, affect the timely environmental reporting.
Research limitations/implications
This study helps all market participants to more comprehensively evaluate the quality of environmental reporting in the French context and highlights whether various factors could affect the quality of the environmental information disclosed using a multi-theoretical framework.
Originality/value
This paper fills the gap in the literature by highlighting an unexplored field of literature about the quality of environmental reporting by linking on the division of the quality of environmental information reporting into sub-dimensions (voluntary reporting and timely reporting) in the French context. To the knowledge, no empirical study has been done on the timely reporting of environmental information in the French context or other contexts. The originality of the work consists of the fact that it is one of the first works that deal with the relationship between environmental external assurance, corporate governance and the quality of environmental reporting.
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The purpose of this paper is to document the relation between investment-cash flow sensitivity and a firm’s engagement in corporate social responsibility (CSR) activities in…
Abstract
Purpose
The purpose of this paper is to document the relation between investment-cash flow sensitivity and a firm’s engagement in corporate social responsibility (CSR) activities in European context. Specifically, this paper aims to empirically examine how CSR moderates the sensitivity between investment spending and firm internal funds.
Design/methodology/approach
The Euler equation technique approach is applied to test the sensitivity of investment to internally generated funds for a panel data set of 398 European companies listed in the STOXX Europe 600 during 2009-2014. Furthermore, a mediated moderation model is developed in order to examine the moderating role of CSR in the investment-cash flow sensitivity, as well as the mediating role of agency costs on the moderation effect of CSR.
Findings
The results show that CSR performance weakens the sensitivity of investment to internal funds; agency costs of free cash flow mediate the negative moderating effect of CSR on investment-cash flow sensitivity. Thus, this study demonstrates empirically that firms with socially responsible practices are better positioned to obtain financing in the capital markets through reducing market frictions as well as agency costs.
Practical implications
Firms are invited to engage more in CSR activities that reduce agency conflicts between management and shareholders.
Originality/value
The originality of this paper consists in proposing the establishment of both direct and indirect link between CSR and investment-cash flow sensitivity.
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The purpose of this paper is to investigate whether and how corporate social responsibility (CSR) performance contributes to shape firms’ payout policy. In particular, it examines…
Abstract
Purpose
The purpose of this paper is to investigate whether and how corporate social responsibility (CSR) performance contributes to shape firms’ payout policy. In particular, it examines the influence of CSR performance on payout level and payout channel choice (dividend payment or share repurchases). Additionally, it examines the moderating role of CSR performance in the relationship between dividends and share repurchases.
Design/methodology/approach
Using 397 European companies listed in the STOXX Europe 600 over the period from 2009 to 2014, the authors employ regression analysis to explore the link between CSR performance and payout policy.
Findings
The first result shows that firms with high CSR performance engage more in payout policy. Second, when choosing between paying dividends and repurchasing stocks, firms with high CSR performance tend to prefer share repurchases. Finally, CSR performance plays an important role in determining the relationship between dividends and repurchases. Specifically, dividends and share repurchases seem to be more substitutable among socially responsible firms.
Practical implications
Firms that are able to develop successful CSR strategies can generate tangible benefits for their shareholders in the form of high payout levels. An increase in CSR expenditure does not lead to cut or minimize the cash flow paid out to shareholders. In addition, government and regulators have to oblige or at least encourage socially responsible firms to use executive stock option that are dividend protected, in order to reduce distortions in dividend policy.
Originality/value
This is the first attempt to investigate the association between CSR performance and share repurchase activities.
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This study aims to examine the moderating effect of media exposure and media legitimacy on the environmental audit committee (EAC) regarding environmental disclosure quality as…
Abstract
Purpose
This study aims to examine the moderating effect of media exposure and media legitimacy on the environmental audit committee (EAC) regarding environmental disclosure quality as measured by voluntary and timely disclosure.
Design/methodology/approach
This paper was based on a sample of 81 French nonfinancial companies listed on the SBF 120 index and covered a six-year period; from 2014 to 2019. To test the hypotheses, a feasible generalized least squares regression was applied. Moreover, the authors checked the results using an additional analysis and the generalized method of moment model for endogeneity problems.
Findings
The results obtained show that for 482 French firm-year observations during the period 2014–2019, the media exposure does not play a moderating role between the EAC and the voluntary environmental disclosure; However, it plays a moderating role between the EAC and the timely environmental disclosure. The results also show that media legitimacy plays a moderating role between the EAC and the quality of environmental information. After testing for endogeneity problems, the findings remain unchanged.
Research limitations/implications
The findings of this study may be of interest to academic researchers, practitioners and regulators who are interested in determining the quality of environmental disclosure by considering the role of the EAC while giving a role to media exposure and media legitimacy in the French context. Considering the EAC as a powerful source of effective corporate governance to improve the quality of environmental disclosure for decision-making, the research provides valuable insights for policymakers and managers on the importance of this mechanism and the importance of the environmental media and its tone in making environmental reporting useful and relevant.
Originality/value
The originality of the work lies in the fact that it is one of the first works that deal with the moderating effect of media exposure on the relationship between the EAC and the quality of environmental information disclosure measured by voluntary and timely disclosure. To the best of the authors’ knowledge, no previous empirical studies have been conducted on this relationship in the French context or in other contexts.
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Marwa Moalla, Dhouha Bouaziz and Anis Jarboui
The purpose of this study is to investigate the relationship between the workforce environment and corporate social responsibility (CSR) audit report lag while also developing a…
Abstract
Purpose
The purpose of this study is to investigate the relationship between the workforce environment and corporate social responsibility (CSR) audit report lag while also developing a comprehensive understanding of the moderating effect of media coverage on this relationship.
Design/methodology/approach
This paper was based on a sample of 151 French nonfinancial companies listed on the CAC All Shares index and covered an eight-year period, from 2014 to 2021. To test the hypotheses, a feasible generalized least squares regression was applied. Moreover, the authors checked the results using an additional analysis and the generalized method of moment model for endogeneity problems.
Findings
Based on a panel data set comprising 960 observations of French firms from the period 2014 to 2021, the results obtained indicate a significant negative relationship between the workforce environment and CSR audit report lag. Additionally, it was found that media exposure moderates the relationship between the workforce environment and CSR audit report lag.
Practical implications
This study contributes to the existing research on workforce environment and CSR audit report lag, potentially providing stakeholders such as employees, employers, regulators and auditors with an environment that shortens the time for issuing CSR audit reports. The findings are also relevant for foreign institutional investors aiming to enhance their investment decisions with more comprehensive information.
Originality/value
The work is innovative as it explores the moderating impact of media exposure on the connection between workforce environment and CSR audit report lag, a topic not extensively studied before. To the best of the authors’ knowledge, no prior empirical studies have examined this relationship within the French context or elsewhere.
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Mohammad Reza Jalilvand, Javad Khazaei Pool, Leila Nasrolahi Vosta and Javad Shabani Nafchali
The purpose of the current study is to explore complicated structural relationships among the variables of tourists’ perceptions of quality and the value of a sport tourist…
Abstract
Purpose
The purpose of the current study is to explore complicated structural relationships among the variables of tourists’ perceptions of quality and the value of a sport tourist destination and their satisfaction level and loyalty that are vital for successful destination marketing and management.
Design/methodology/approach
A survey was used to collect data from a sample of 570 sport tourists who traveled to Nowshahr and Chalous cities in Iran during September 2012. These data were gathered by convenience sampling method and analyzed using a structural equation model (SEM).
Findings
The results of the SEM revealed that tourists’ perceived quality and perceived value have a significant impact on their satisfaction. Further, tourists’ satisfaction had a positive and significant effect on the level of their loyalty.
Practical implications
Findings of the current study contribute to a better perception of behavioral mechanisms and incentives and provide an acceptable basis to improve tourism industry in both regional and national levels.
Originality/value
This is the first such study of the Iranian sports sector.
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Marwa Farghaly, Mohamed A.K. Basuony, Neveen Noureldin and Karim Hegazy
This study assesses the perception of academics and practitioners of ramifications that may have impacted audit evidence quality during COVID-19 in Egypt.
Abstract
Purpose
This study assesses the perception of academics and practitioners of ramifications that may have impacted audit evidence quality during COVID-19 in Egypt.
Design/methodology/approach
A questionnaire was collected and designed regarding the factors affecting the quality of audit evidence during the COVID-19 pandemic using a five-point Likert scale, and detailed descriptive statistics and regression analyses were conducted.
Findings
The study finds that there is no significant association between social distancing (SD), changing in the economic environment (CEE), time constraint (TC) and stress on audit personnel (SAP) as repercussions of the COVID-19 pandemic with the quality of audit evidence (QAE). The disruption in operational results (DOR), changes in the internal control (CIC) and the stress on client personnel (SCP) significantly affect the quality of audit evidence. Moreover, there is a significant difference between Big and non-Big Four audit firms in terms of changes in economic conditions, internal controls, disruption of operational results and time-constraint variables. The latter has significantly affected the audit evidence quality for both academics and professionals.
Practical implications
Due to the implementation of SD and work-from-home policies, audit firms are highly recommended to invest more in digital programs and to be more adaptable to work-from-home, which policy and enhances the effectiveness and flexibility of communication between auditors and their clients.
Originality/value
This paper is one of the foremost papers that provides empirical evidence for the antecedents or variables that may affect audit quality evidence due to the COVID-19 pandemic.
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Khaled Mohamed Mohamed Koriem, Nevein Naim Fadl, Salwa Refat El-Zayat, Eman Nasr Hosny, Karima Abbas El-Shamy, Mahmoud Soliman Arbid, Fatma Adly Morsy and Marwa Helmy El-Azma
The purpose of this paper is to check the geranium oil and anise oil effect to inhibit inflammation in brain cerebral cortex and hippocampus areas in depression.
Abstract
Purpose
The purpose of this paper is to check the geranium oil and anise oil effect to inhibit inflammation in brain cerebral cortex and hippocampus areas in depression.
Design/methodology/approach
Depression defined as psychiatric disease and chronic mild stress (CMS) model a well-known animal model of depression that represented major symptoms occurred in human depression. Geranium oil and anise oil selected for such a study to check their anti-inflammatory effect in brain tissues in depressed animal model.
Findings
The brain cerebral cortex and hippocampus neurotransmitters serotonin, dopamine, norepinephrine, gamma aminobutyric acid (GABA) and interleukin (IL)-10 significantly decreased (p < 0.001) while brain cerebral cortex and hippocampus IL-1ß, IL-6, tumor necrosis factor-alpha (TNF-α) and Ki-67 levels significantly increased (p < 0.001) in CMS rats compared to control. The oral intake of venlafaxine drug, anise oil and geranium oil significantly increased (p < 0.001) serotonin, dopamine, norepinephrine, GABA and IL-10 while significantly decreased (p < 0.001) IL-1ß, IL-6, TNF-α and Ki-67 levels to approach normal levels in brain cerebral cortex and hippocampus areas compared with CMS rats.
Originality/value
Antidepressants used in depression treatment but these drugs are either too expensive or had side effects. Folklore and complementary medicine used in different diseases treatment due to cheap and available source. Geranium oil and anise oil had anti-inflammatory effect in brain cerebral cortex and hippocampus areas in CMS rats.