Osama Atayah, Hazem Marashdeh and Allam Hamdan
This study aims to examines both accrual and real-based earnings management (EM) behavior of listed corporations in tax-free countries during different economic situations. It…
Abstract
Purpose
This study aims to examines both accrual and real-based earnings management (EM) behavior of listed corporations in tax-free countries during different economic situations. It also addresses the link between firm- and country-level determinants of accrual and real-based EM and explores economic conditions' influence on these determinants.
Design/methodology/approach
The study examines 1,608 firm-years, covers sixteen years (2004–2019), clustered into three periods according to the global financial crisis (GFC): four years prior (2004–2007), two years during (2008–2009), and ten years post the GFC (2010–2019). We employ the modified Jones model (performance-matched) developed by Kothari et al. (2005) to measure the accrual-based EM (positive and negative discretionary accrual EM) and the three levels model for Dechow et al. (1998) to measure the real-based EM (cash flow from operating, discretionary expenses and abnormal production cost).
Findings
The study finds a significant increase in EM practices in the listed corporations in tax-free countries during the economic downturn. These corporations are found to understate their earnings during the economic stress period. Simultaneously, the firm-level determinants of EM practices were at the same level of significance during different economic conditions in accrual-based EM. In contrast, the country-level EM determinants vary based on the economic conditions.
Originality/value
Financial reports' users gain a deep understanding of the quality of financial reports in the context of tax-free country. And, the study outcomes inspire policymakers to develop relevant legislation to mitigate financial reports' risk and adequately protect the financial reports' users.
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Haitham Nobanee, Osama F. Atayah and Charilaos Mertzanis
This paper aims to test the levels of anti-corruption disclosure and its implication on the banking performance of both conventional and Islamic banks listed on the Abu Dhabi…
Abstract
Purpose
This paper aims to test the levels of anti-corruption disclosure and its implication on the banking performance of both conventional and Islamic banks listed on the Abu Dhabi Securities Exchange and Dubai Financial Market.
Design/methodology/approach
The authors have used the content analysis to identify the levels of anti-corruption disclosure in the banks’ annual reports. They have also used the two-steps generalized method of moments (GMM) regression applied to dynamic panel data analysis to examine the effect of the anti-corruption disclosure on the banking performance.
Findings
The empirical results show that the anti-corruption disclosure is at low levels for all banks and conventional and Islamic banks samples. The results also show no significant differences in the anti-corruption disclosure between Islamic and conventional banks. The results of the two-steps GMM regression applied to dynamic panel data analysis show a negative and significant impact of the levels of anti-corruption disclosure on the bank’s performance for both all banks and conventional banks; the results of the dynamic panel data analysis show an insignificant impact of anti-corruption discloser for the Islamic banks' sample.
Practical implications
The findings recommended a comprehensive framework of anti-corruption disclosure to the central banks and financial market regulators to enhance anti-corruption practices within the financial institutions to increase transparency and enhance their performance.
Originality/value
Fighting against anti-corruption is essential for financial institutions. This paper is the first study that examined the extent of anti-corruption levels and their effect on banking performance for both Islamic and conventional banks operates in the UAE. The findings help in enhancing reporting practices in terms of anti-corruption to improve transparency and performance in the banking sector.
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Khakan Najaf, Mohamed M. Dhiaf, Nohade Hanna Nasrallah, Osama F. Atayah and Hazem Marashdeh
This study contributes to the extant literature on ICT firms by investigating the interrelationship between the health and safety (H&S) measures, market performance, and the…
Abstract
Purpose
This study contributes to the extant literature on ICT firms by investigating the interrelationship between the health and safety (H&S) measures, market performance, and the coronavirus (COVID-19).
Design/methodology/approach
To conduct the confirmatory analysis by testing our hypotheses, data have been collected from Bloomberg of all ICT firms from five countries. The authors gathered from 2010 until 2020 as the research sample to examine the pandemic impact on market performance and H&S measures.
Findings
First, our results reveal a significant and positive relationship between market performance (proxied by Tobin’s Q) and the H&S measures of information technology (IT) firms. Second, the authors find that the IT firms have significantly increased the H&S measures during the COVID-19 period and were dynamic in linking employees’ adaptive capabilities to positive attributes. This has contributed to business success, resiliency, and sustainability.
Research limitations/implications
The authors used a quantitative method of testing our hypotheses. Future studies may consider checking the robustness using qualitative methods such as structural or semi-structural interviews.
Practical implications
The study offers valuable insights to academics, practitioners, stakeholders, policymakers, and international entities by fostering knowledge about responses to crises, integrating digital solutions, and disseminating digital information. The study also has implications on the health, social, business, and economic levels. This study is a call for international and local humanitarian organisations such as United Nations High Commission, Care international and many more to understand the gravity of safety of the workers in the workplace during the pandemic period and introduce a firm-level policy accordingly.
Originality/value
This paper is novel considering that the paper is unique in evaluating ICT firms’ market performance and H&S from a global perspective, considering the context of this historical pandemic.
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Osama Fayez Atayah, Mohamed Mahjoub Dhiaf, Khakan Najaf and Guilherme Francisco Frederico
This study aims to contribute to the extant literature on logistics by investigating the interrelationship between the financial performance of listed logistics firms and the…
Abstract
Purpose
This study aims to contribute to the extant literature on logistics by investigating the interrelationship between the financial performance of listed logistics firms and the COVID-19 and compare the logistics firms’ financial performance of G-20 countries during the pandemic period.
Design/methodology/approach
To conduct the confirmatory analysis by testing the hypotheses formulated for this study, data have been collected from Bloomberg of all logistics firms from G-20 countries. This paper gathered the first quarter from 2010 until the last quarter of 2020 as the research sample to examine the pandemic impact on financial performance.
Findings
The results show that the financial performance of logistic firms was significantly higher during 2020. Overall, the country-wise findings corroborated with the main results and the financial performance of 14 countries’ logistic firms out of 20 ones analysed has been significantly elevated, during the pandemic period. However, this paper has found out a negative financial performance of the logistics firms during the COVID-19 period in six countries (Germany, Korea, Russia, Mexico, Saudi Arabia and the UK), which support the second proposition.
Research limitations/implications
The study’s results were important as they highlighted the role of logistics firms in offering insights to academics, practitioners, policymakers and logistic firms’ stakeholders. For future research, this paper suggests including some other variables that might influence firm performance and that have not been considered in this study, which is a limitation, and going more deeply into the logistics sector by comparing the financial performance of the sub-sectors.
Practical implications
As the importance of logistics services during the pandemic period is relevant, this study may provide significant insights because the logistics firms play a crucial role by anticipating to ensure the supply of essential items such as food, medicine, then supporting for the continuity of supply chains. The view of finance impacts during the pandemic may provide insightful perspectives for logistics companies, allowing them to understand those impacts and better prepare for likely disruption events such COVID-19 pandemic.
Originality/value
This paper is novel considering that it is unique in evaluating logistics firms’ financial performance from a global perspective, considering the context of this historical pandemic.
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Khakan Najaf, Osama Atayah and Susela Devi
The Journal of Accounting in Emerging Economies (JAEE), established in 2011, aims to publish research on contemporary accounting issues in emerging economies. This study used the…
Abstract
Purpose
The Journal of Accounting in Emerging Economies (JAEE), established in 2011, aims to publish research on contemporary accounting issues in emerging economies. This study used the bibliometric and scientometric approaches to provide deeper insights into the journal performance, prominent topics, author's contributions and citation structure. Content analysis was conducted to provide insights on the major themes addressed in JAEE.
Design/methodology/approach
This study analyses data from the Scopus database, Google Scholar and Journal website. The total number of documents analysed are 190. This study employs VOSviewer and RStudio to conduct the analysis which is categorised into four major parts: General performance indicators, citation structure, network analysis and content analysis.
Findings
Since JAEE commenced publication in 2011 and indexed in the Scopus in 2018, it achieved a 14.47% annual growth rate in document publication. It is encouraging to note that 88.4% of published documents were cited. In terms of total publication, the top contributing country is Malaysia; the USA is the primary contributor in citations. Five key themes emerged from the content analysis namely, international standards and earnings quality; audit quality and IFRS practices in emerging economies; corporate governance; financial reporting and earnings management; corruption and accounting disclosure; and ownership structure and firm performance.
Originality/value
This study offers a comprehensive assessment to the journal stakeholders about the past and current journal performance besides future trends and perspectives. Additionally, JAEE readers can gain insight into the nature of academic contributions in JAEE from 299 authors of 273 affiliated institutions in 67 countries.
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Rim El Khoury, Nohade Nasrallah, Osama F. Atayah, Mohamed Mahjoub Dhiaf and Guilherme F. Frederico
This study investigates the impact of green supply chain management (GSCM) practices on environmental performance in firms operating in the discretionary sector in the G20…
Abstract
Purpose
This study investigates the impact of green supply chain management (GSCM) practices on environmental performance in firms operating in the discretionary sector in the G20 countries. The sample covers 749 firms for the period 2010–2020.
Design/methodology/approach
This study combines qualitative and quantitative data to examine the impact of the implementation of GSCM on accounting performance measured by the operating margin (OM) and return on assets (ROA). The authors also moderate the effects of Six Sigma and quality management (QM) and ISO 9000 and control for firm variables and COVID 19.
Findings
Using a panel data regression and structural equation modeling (SEM), results indicate that discretionary firms with internal solid GSCM practices combined with external environmental monitoring of suppliers are likely to outperform their peers in environmental issues. Using hierarchical regression, results indicate that both ISO 9000 and S&QM have moderating effects at some level of performance. Furthermore, environmental performance is positively correlated with accounting performance. This study contributes to the literature by addressing the impact of GSCM and the importance of reinforcing green and social regulations to protect the planet.
Originality/value
The paper is one of the first to measure GSCM triple components and account for COVID-19 in the context of discretionary companies and G20 countries. It highlights the impact of green initiatives to cope with major disruptions and decrease pollution and environmental disasters.
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Md Abubakar Siddique, Haitham Nobanee, Osama Fayez Atayah and Mohammed Khereldin Bayzid
The purpose of this paper is to measure anti-money laundering (AML) and counter-terrorism financing (CTF) disclosures by money exchanger providers in the Gulf Cooperation Council…
Abstract
Purpose
The purpose of this paper is to measure anti-money laundering (AML) and counter-terrorism financing (CTF) disclosures by money exchanger providers in the Gulf Cooperation Council (GCC) countries.
Design/methodology/approach
The authors conduct a content analysis on firms’ websites to compare their AML/CTF disclosure against the recommendations of the Financial Action Task Force (FATF). The authors use a one-sample t-test to examine the degree of these disclosures.
Findings
Overall, money exchange providers in GCC countries do not demonstrate a high degree of AML/CTF disclosure (20.27%). Country-wise disclosure levels are: Qatar 31%, UAE 19%, Kuwait 17.1%, Oman 26.27%, Bahrain 23.27% and KSA 6.1%.
Research limitations/implications
The study contributes immensely to understanding the disclosure behavior of this sector. It also helps in assessing their compliance with FATF recommendations.
Practical implications
The results show poor AML/CTF disclosure and compliance by money exchange providers, which should lead to increased regulations by policymakers and more disclosure by practitioners.
Social implications
Money laundering (ML) and terrorism financing (TF) can adversely affect societies. This study should help regulators to identify vulnerable areas in ML and TF activities, compare disclosures by companies in their countries with those of other countries and identify areas for improvement.
Originality/value
The study is a novel attempt. No study has been undertaken before to investigate AML and CTF disclosure by money exchange providers either globally, regionally or in any country.
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Khakan Najaf, Mohamed Mahjoub M. Dhiaf, Hazem Marashdeh and Osama F. Atayah
Social risk management is vital for growth and business continuity. This study investigates the social risk shift in supply chain management during the Coronavirus Disease 2019…
Abstract
Purpose
Social risk management is vital for growth and business continuity. This study investigates the social risk shift in supply chain management during the Coronavirus Disease 2019 (COVID-19) pandemic.
Design/methodology/approach
Data were retrieved from Bloomberg between 2010 and 2021 regarding all supply chain enterprises from nine countries. The authors undertake a confirmatory examination of formulated hypotheses. Social supply chain risk (SSCR) refers to “firms that took the necessary steps to decrease social risks in their supply chain. Social risks involve the child or forced labor, poor working conditions, lack of a living and fair or minimum wage”. The authors complement the analysis and address the endogeneity issue using the dynamic generalized moments method (GMM).
Findings
A significant positive relationship between COVID-19 and SSCR was discovered in this study. Due to the COVID-19 pandemic, supply chain firms faced supply chain social risk. Notably, SSCR policies differ from one country to another during this period.
Research limitations/implications
The research has some limitations. The sample data are limited to 9 countries. Furthermore, it was somewhat difficult to determine the country-wise difference using COVID-19 as a dummy variable. Future research may adopt qualitative approaches, such as structural or semi-structural interviews.
Practical implications
The results have important implications for supply chain practitioners to consider the critical role of social risk in their operations. COVID-19 has exposed the new political economy and re-centered governments as the key actors in tackling grand challenges to safeguard workers, produce socially useful products and protect their stakeholders. Also, the study highlights the importance of governments and policymakers having a well-structured regulatory framework and environment for firms to comply with the social norms in their supply chain management. Finally, the study's findings should encourage supply chain managers to adopt a proactive mechanism that reduces the social risk impacts of pandemics.
Originality/value
Considering the historical backdrop of the COVID-19 pandemic, this study is unique in measuring the SSCR of enterprises from a worldwide viewpoint.
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Reem Hamdan, Allam Hamdan, Bahaaeddin Alareeni, Osama F. Atayah and Layla Faisal Alhalwachi
This study aims to investigate the moderation role of the percentage of women in the country labour force in the relationship between firm-level governance factors (board size…
Abstract
Purpose
This study aims to investigate the moderation role of the percentage of women in the country labour force in the relationship between firm-level governance factors (board size, institutional ownership, ownership concentration, board independence, performance, firm size, firm’s risk and sector) and women on boards (WOBs) in publicly listed firms in Gulf Cooperation Council (GCC) countries.
Design/methodology/approach
The study relied on a sample of 436 publicly listed firms in 2018 in six GCC countries (Bahrain, Kuwait, Saudi Arabia, Oman, Qatar and the United Arab Emirates).
Findings
The study concluded that the percentage of women in the country’s labour force has a moderation role in the relationship between board size and WOB, as well as firm market performance and WOBs. However, ownership concentration, firm size, firm risk and firm sector do not affect the percentage of WOB; consequently, the percentage of women in the country’s labour force did not have a moderation role in the relationship between these variables and the percentage of WOBs.
Originality/value
The study incorporates an institutional level variable which is the percentage of women in the country’s labour force in a firm-level relationship mostly understood by agency theory.
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Osama F. Atayah, Khakan Najaf, Ravichandran K. Subramaniam and Phaik Nie Chin
This study aims to investigate the implication of top executives’ number of years of experience (tenure) on corporate risk-taking behaviour and corporate performance in Malaysian…
Abstract
Purpose
This study aims to investigate the implication of top executives’ number of years of experience (tenure) on corporate risk-taking behaviour and corporate performance in Malaysian corporations.
Design/methodology/approach
To test the hypothesis efficiently, the authors have extracted the data from Bloomberg for 788 listed companies of the Malaysian Stock Exchange. The methodology entails ordinary least squares regressions, quantile regression and dynamic system generalized method of moments model.
Findings
First, the authors show that executive management tenure has a significant negative relationship with corporate risk-taking. It means that the long-tenured executives tend to undertake less risky strategies and decisions. Second, this study reveals that the longer executive management tenure has a positive relationship with corporate performance. Third, the moderating effect of corporate risk-taking with executive tenure (Tenure dummy*Risk) has a negative relationship with the corporate performance by 1%.
Practical implications
It implies that the appointment of experienced executive management contributes towards corporate performance directly. However, experienced management trends take less risk, which eventually results in mitigating the corporate performance. On that basis, the findings are significant in highlighting the usefulness of executive leadership term and offers insights to academics, practitioners and policymakers.
Originality/value
This paper is novel since it is unique in evaluating the executive tenure and the preferences to handle risk strategies and how that impact the firm performance.