Pietro Fera, Michele Pizzo, Rosa Vinciguerra and Giorgio Ricciardi
This paper aims to investigate the relationship between the quality of internal corporate governance mechanisms and the audit issues disclosed by external auditors in their…
Abstract
Purpose
This paper aims to investigate the relationship between the quality of internal corporate governance mechanisms and the audit issues disclosed by external auditors in their report, assuming the beneficial effect related to the adoption of a sustainable corporate governance system.
Design/methodology/approach
This paper investigates the impact of the International Auditing and Assurance Standards Board’s ISA 701 in the European context as a new auditing principle supporting the key audit matters (KAMs) in reporting and disclosing auditing activities. The analysis is carried out through a quantitative methodology using a sample composed of non-financial companies listed on the Italian Stock Exchange.
Findings
Empirical findings highlight that firms having a high quality and sustainable corporate governance system tend to have fewer KAMs arising from the audit process and then disclosed in the audit report. To ensure the reliability of the empirical analysis, the authors controlled for a set of variables that could affect the audit function and for the mediating role of the overall business complexity (as proxied by the firm size).
Originality/value
This study is of interest to academics, practitioners and regulators, as it highlights the role of a higher quality internal corporate governance on the perceived corporate riskiness and complexity. It contributes to the recent debate on sustainable corporate governance, corporate sustainability and auditing streams.
Details
Keywords
Rosa Vinciguerra, Francesca Cappellieri, Michele Pizzo and Rosa Lombardi
This paper aims to define a hierarchical and multi-criteria framework based on pillars of the Modernization of Higher Education to evaluate European Accounting Doctoral Programmes…
Abstract
Purpose
This paper aims to define a hierarchical and multi-criteria framework based on pillars of the Modernization of Higher Education to evaluate European Accounting Doctoral Programmes (EADE-Model).
Design/methodology/approach
The authors applied a quali-quantitative methodology based on the analytic hierarchy process and the survey approach. The authors conducted an extensive literature and regulation review to identify the dimensions affecting the quality of Doctoral Programmes, choosing accounting as the relevant and pivotal field. The authors also used the survey to select the most critical quality dimensions and derive their weight to build EADE Model. The validity of the proposed model has been tested through the application to the Italian scenario.
Findings
The findings provide a critical extension of accounting ranking studies constructing a multi-criteria, hierarchical and updated evaluation model recognizing the role of doctoral training in the knowledge-based society. The results shed new light on weak areas apt to be improved and propose potential amendments to enhance the quality standard of ADE.
Practical implications
Theoretical and practical implications of this paper are directed to academics, policymakers and PhD programmes administrators.
Originality/value
The research is original in drafting a hierarchical multi-criteria framework for evaluating ADE in the Higher Education System. This model may be extended to other fields.
Details
Keywords
Tanya Vacharkulksemsuk and Barbara L. Fredrickson
Experimental evidence for aspects of the broaden-and-build theory actually existed prior to the theory’s introduction to the academic world. Generally speaking, laboratory studies…
Abstract
Experimental evidence for aspects of the broaden-and-build theory actually existed prior to the theory’s introduction to the academic world. Generally speaking, laboratory studies showed a causal effect of positive feelings on thought processes. Across a host of studies, Isen and her colleagues demonstrated a wide range of cognitive outcomes resulting from induced positive emotions, including patterns of unusual thought (Isen, Johnson, Mertz, & Robinson, 1985), flexible thinking (Isen & Daubman, 1984), creativity (Isen, Daubman, & Nowicki, 1987), and receptivity to new information (Estrada, Isen, & Young, 1997).
Carlo Salvato, Francesco Chirico and Pramodita Sharma
In this chapter we investigate the role of family-specific factors in facilitating or constraining business exit in family firms. Family business literature seems to have an…
Abstract
In this chapter we investigate the role of family-specific factors in facilitating or constraining business exit in family firms. Family business literature seems to have an implicit bias toward continuity and persistence in the founder's business. This is explained by heavy emotional involvement and development of path-dependent core competences over generations. However, several long-lived family firms were able to successfully exit the founder's business. Exit allowed them to free significant strategic resources, which were later reinvested in exploiting novel entrepreneurial opportunities. Our aim is to investigate the process of exit from the founder's business in family firms, to explain both triggers and obstacles to decommitment and de-escalation. We address this issue through the study of the Italian Falck Group's exit from the steel industry in the 1990s, followed by successful startup of a renewable energy business. By carefully triangulating different data sources and different voices within and outside the controlling family, we develop a framework describing family-specific facilitators and inhibitors of business exit, and subsequent startup of a new business. Three types of family-specific factors emerge as relevant in shaping a family firm's likelihood and speed of exit from a failing business: family-related psychological triggers and obstacles to business exit; family-specific components of the structural de-escalation context; family responses to ensuing de-escalation and exit needs. The emerging framework offers a more nuanced interpretation of decommitment activities in family firms, pointing to the differential role family-specific factors may play as facilitators or inhibitors of business exit. We also suggest how these family-specific results may contribute to a deeper understanding of exit in nonfamily firms. Our results also have practical implications for family business entrepreneurial management. Actively managing the different determinants of exit choices that emerged from our study will set the stage for de-escalation from a failing course of action – a dynamic capability all family firms should learn and practice if they intend to transfer their entrepreneurial orientation to next generations.
Abdullah S. Karaman, Fernando Luiz E. Viana, Nejla Ould Daoud Ellili and Ali Uyar
The purpose of this study is to investigate whether public governance quality (i.e. control of corruption and voice and accountability) and corporate governance strength (i.e…
Abstract
Purpose
The purpose of this study is to investigate whether public governance quality (i.e. control of corruption and voice and accountability) and corporate governance strength (i.e. environmental committee existence) are influential in stimulating supply chain transparency and how these two governance characteristics interact in enhancing supply chain transparency.
Design/methodology/approach
Our investigation draws on a sample of 25,096 firm-year observations affiliated with the manufacturing industry in 50 countries and executes country-year fixed effects.
Findings
We find that the strength of control of corruption, voice and accountability is positively associated with supply chain transparency, supporting institutional theory. Furthermore, the environmental committee’s existence is positively related to sustainable supply chain transparency, confirming the upper echelons theory. The moderating analysis rejects the complementary effect but supports the substitution effect, confirming the negative moderating role of the environmental committee between the control of corruption and voice and accountability and sustainable supply chain transparency.
Originality/value
No empirical study has drawn on an international sample to (1) explicate the worldwide adoption of sustainable supply chain transparency, (2) link corruption and accountability to green supply chain transparency or (3) investigate how sustainable supply chain transparency is affected by the interplay of institutions and environmental management committees. Thus, we highlight the substitutive or complementary role of internal and external governance mechanisms in inciting firms toward greener supply chain management by developing a novel sustainable supply chain transparency index that draws on five indicators.