Ephraim Kwashie Thompson, Olivier Ashimwe, Samuel Buertey and So-Yeun Kim
This paper aims to investigate the relationship between sustainability reporting and firm value, and subsequently, ascertains the moderating effect of assurance and the type of…
Abstract
Purpose
This paper aims to investigate the relationship between sustainability reporting and firm value, and subsequently, ascertains the moderating effect of assurance and the type of assurer on the sustainability reporting–firm value nexus.
Design/methodology/approach
The study is based on sample firms from the Johannesburg Stock Exchange (JSE) in South Africa. The fixed‐effect panel data analysis method is used to estimate the coefficients of the variables.
Findings
A significant positive relationship is found between sustainability reporting and firm value. The results also suggest that sustainability assurance has significant explanatory power on firm value. Furthermore, the authors found that the market is unable to distinguish between sustainability assurance services provided by Big 4 audit firms and specialist consultant firms.
Practical implications
The authors expect managers will see sustainability reporting and assurance as a business strategy with incremental market value. The study should also serve as a reference for stakeholders engaged in the advocacy for the adoption of sustainability assurance practices on the JSE and other emerging markets.
Social implications
The study finds that the South African market rewards firms that purchase third-party assurance to guarantee the integrity of their corporate social responsibility reports. This understanding could help encourage more firms to embrace the concept of sustainability assurance.
Originality/value
The study offers a first-hand information on how market participants in Johannesburg, an emerging economy, view sustainability assurance and the services provided by the different assurers.
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Samuel Buertey, Ha Thanh Nguyen and Ephraim Kwashie Thompson
Post-Sarbanes Oxley Act (SOX), the audit committee has been empowered greatly to play a central role in the corporate governance of firms. Embedded in agency theory, this study…
Abstract
Purpose
Post-Sarbanes Oxley Act (SOX), the audit committee has been empowered greatly to play a central role in the corporate governance of firms. Embedded in agency theory, this study aims to examine the effect of the audit committee on the likelihood by firms to pay dividends.
Design/methodology/approach
The study population is US firms in the Institutional Shareholder Services (ISS) database from 2007 to 2018. The authors apply the multivariate logit fixed-effect regression for the analyses after conducting the appropriate statistical tests.
Findings
From the results of the research model, the authors find that there is a positive relationship between the size and gender diversity of the audit committee and the propensity to pay dividends suggesting that a larger audit committee with substantial women representation improve the information environment in firms leading to higher dividend distribution. The extent of busyness of the audit committee impacts negatively on the propensity to pay dividends. The results are driven by high-performing firms and not driven by specific levels of firm size.
Research limitations/implications
The findings of the study give impetus to the audit committee as an important component of the corporate governance mechanism that advances the interest of stakeholders. Thus, efforts that seeks to promote the audit committee’s resourcefulness must be embraced by all stakeholders.
Originality/value
To the best of the authors’ knowledge, this study is the first to focus on audit committee and dividend payout policy of US firms post-SOX. The study demonstrates how the audit committee characteristics including its size, gender diversity and busyness affect dividend policy by mitigating information asymmetry problems.
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Ben Kwame Agyei-Mensah and Samuel Buertey
The study aims to examine the simultaneous influence of corruption and culture on corporate social and environmental performance of selected companies.
Abstract
Purpose
The study aims to examine the simultaneous influence of corruption and culture on corporate social and environmental performance of selected companies.
Design/methodology/approach
Theoretical propositions on how corruption and culture influence corporate social responsibility performance were developed and empirically tested. Corruption is measured using Transparency International’s Corruption Perception Index and Schwartz (2008) cultural dimension is used as a measure of culture. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis which forms the main data analysis.
Findings
The multiple regression analysis results indicated that corruption and two of the three cultural dimensions (embeddedness and Mastery) are significantly related to corporate social responsibility performance.
Originality/value
The study contributes to the corporate social responsibility literature by revealing that corruption and culture are key determinants of corporate social responsibility performance.
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Richard Ramsawak, Samuel Buertey, Greeni Maheshwari, Duy Dang and Chung Thanh Phan
This paper explores the relationship between board interlocks and firm outcomes by reviewing the most recent peer-reviewed articles examining this research theme.
Abstract
Purpose
This paper explores the relationship between board interlocks and firm outcomes by reviewing the most recent peer-reviewed articles examining this research theme.
Design/methodology/approach
A systematic and bibliometric methodology of assessing 369 peer-reviewed articles from the Web of Science (WoS) database was applied. The study also leverages key R-packages litsearchr and Bibliometrix software to enhance the descriptive and thematic literature analysis to identify gaps and opportunities for new research.
Findings
This study confirms a rapid increase in articles on this thematic area, over the last decade, with increasing collaboration occurring among researchers in the United States, Europe, China, South Korea and India. Four core research clusters are identified. The first and largest cluster links interlocked directors to issues related to corporate governance and firm outcomes. The second cluster links social network theory, interlocking directorates and firm outcomes. Smaller emerging research clusters include topics related to ownership structure, board size, political connectedness and impacts on firm outcomes. The final cluster examines the influence of board interlocks on market value and firm innovation.
Practical implications
Interlocked directors can have both positive and negative impacts on a wide variety of firm outcomes. This study places great interest in the selection of new directors, ensuring that the selection has aligned with the needs and interests of the company and disclosures of potential competing interests are declared and considered. Equally important are the governance practices used to monitor directors' behavior and to protect the interest of shareholders and the firm. This is particularly relevant in the internal appointment of interlocked directors to critical positions, such as audit committees or instances where interlocked directors may simultaneously hold CEO or executive leadership positions in other companies.
Originality/value
This paper examines the board interlocks literature related to firm outcomes. Additionally, this review identifies several topics and disciplines which, if pursued, could enrich the literature and promise new avenues for future research.
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Ben Kwame Agyei-Mensah and Samuel Buertey
The purpose of this paper is to study the relationship between culture, corporate governance (CG) variables and corporate risk reporting practices of listed companies in Nigeria…
Abstract
Purpose
The purpose of this paper is to study the relationship between culture, corporate governance (CG) variables and corporate risk reporting practices of listed companies in Nigeria and South Africa, two large African economies at the south of the Sahara.
Design/methodology/approach
The study uses 500 firm-year observations for the period of 2013–2017 for firms listed on the Lagos and Johannesburg Stock Exchanges. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis, which constitutes the main data analysis.
Findings
The results indicate that power distance is negatively associated with the corporate risk disclosure (CRD). This implies that organizations where power distance is high are characterized by lower CRD and vice versa. From the analysis, two factors, namely, institutional ownership and profitability, were found to explain sample firms’ risk disclosure practices as they are positively and statistically related to CRD.
Originality/value
This study is one of the few to measure the influence of culture and CG on CRD in Sub-Sahara Africa. Understanding the drivers for firms to disclose risk-related information may assist regulators and standards setters in promoting both the spread and the improvement of such disclosures through the issuance of CG codes and reporting guidelines.
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Samuel Gyimah, De-Graft Owusu-Manu, David J. Edwards, Joseph Ignatius Teye Buertey and Anthony Kwame Danso
In recent times, both academics and industrialists have undertaken research into various areas of circular business models (CBM) in a bid to promote a green economy. Yet despite…
Abstract
Purpose
In recent times, both academics and industrialists have undertaken research into various areas of circular business models (CBM) in a bid to promote a green economy. Yet despite numerous studies conducted, the ensuing discourse contains scant information regarding the contributions of CBM towards the transition of green economy in the construction industry. This present study therefore aims to explore the contributions of CBM in the transition towards a green economy in the Ghanaian construction industry.
Design/methodology/approach
A comprehensive literature review was first conducted to identify the contributions of CBM towards the transition towards a green economy. A quantitative research strategy was then adopted to collect primary questionnaire data from professionals with knowledge of CBM and the green economy from 104 participants for the study. The data gathered was analyzed using descriptive statistics and exploratory factor analysis viz. Principal component analysis.
Findings
The contributions of CBM towards the transition towards a green economy were found to be: value contributions (i.e. lower carbon footprint, lower emission of waste by the industry, value creation for clients, innovation in construction materials and methods, reduced maintenance cost, creation of energy efficient infrastructures, improved value proposition for firms, improved sustainability of the industry and reduced pressure on finite resource.); green contributions (i.e. recycling and reuse of construction waste, promotion of green building technology, increased potential for economic growth, increased resource efficiency and creation of green building market) and longevity contribution (i.e. increased life span of buildings). It was evident that CBM make significant contributions in the transition towards green economy and as such, policymakers and other stakeholders within the construction industry must adopt these models to maximize their green credentials and accrue inherent benefits associated with transitioning towards a green economy.
Originality/value
This paper presents a novel and comprehensive study that explores the contributions of CBM towards engendering a green economy. The study’s results provide construction industry stakeholders and policymakers with clear insight into the contributions of CBM towards the transition into a green economy. In practice, this study provides much needed guidance to support construction practitioners to transition towards a green economy in alignment with the United Nations' Sustainable Development Goals (SDGs).
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Richard Ohene Asiedu, De-Graft Owusu-Manu, Samuel Gyimah, David John Edwards and Alexander Baah Amoakwa
To transition into a green/circular economy (CE), both academics and industrialists have undertaken research into various areas of circular business models (CBM), yet despite…
Abstract
Purpose
To transition into a green/circular economy (CE), both academics and industrialists have undertaken research into various areas of circular business models (CBM), yet despite numerous studies conducted, the ensuing discourse contains scant information regarding the barriers to CBM adoption in the built environment. Therefore, this present study explores the critical barriers hindering the adoption of CBM in the Ghanaian construction industry (GCI), establishing the criticality of the principal barriers identified.
Design/methodology/approach
The mixed philosophies of interpretivism and postpositivism were adopted to deductively analyse primary data collected via a survey questionnaire. A comprehensive literature review was first conducted to identify the barriers of adopting CBM in the construction industry. Data gathered from professionals with knowledge of CBM and the green/CE were then analysed using descriptive statistics and inferential fuzzy synthetic evaluation.
Findings
Emergent barriers to CBM adoption in the GCI were identified as institutional barriers (i.e. inadequate technology development and transfer, insufficient green incentives in the industry and lack of institutional framework that promote); proficiency barriers (i.e. lack of understanding of circular business models, inadequacy of expertise amongst construction professionals, unfamiliar techniques associated with circular business models and fear of greater investment cost) and cultural barriers (i.e. cultural reluctancy of clients to embrace circular urbanization, inadequate measurement tool, lack of a culture that encourages community engagement in environmental decision-making, inadequate performance information and database, lack of prior experience of stakeholders, inadequate government policies, low public awareness and lack of manufacturer and supplier support). The fuzzy synthetic analysis confirmed all the principal barriers as critical. These barriers had a respective criticality index of 3.66, 3.59 and 3.39. Evidently, the CBM adoption in the GCI faces major challenges and consequently, sector stakeholders must strategize their organizational undertakings to transition their traditional business models towards innovative circular ones.
Originality/value
This study provides a novel and thorough evaluation on the barriers to CBM adoption and establishes the criticality of the identified barriers. The study's findings offer essential direction to GCI stakeholders and policymakers to facilitate the shift towards a CE in accordance with the United Nations' Sustainable Development Goals (SDGs).
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Samuel Oduro, Hayford Pittri, Barbara Simons, Benjamin Baah, Eunice Deedei Anteh and John Adjei Oduro
Net zero energy buildings (NZEBs) play a crucial role in mitigating the environmental impact of the construction industry. However, this concept in Ghana is still in the infancy…
Abstract
Purpose
Net zero energy buildings (NZEBs) play a crucial role in mitigating the environmental impact of the construction industry. However, this concept in Ghana is still in the infancy stage, and the level of embracement in the construction industry is uncertain which further poses challenges to its adoption. This can be attributed to the lack of awareness of NZEB among construction professionals. Hence, understanding the awareness among construction professionals is essential for promoting sustainable building practices and reducing the carbon footprint of buildings. Therefore, this study investigates the level of awareness of NZEBs among construction professionals in the Ghanaian construction industry (GCI).
Design/methodology/approach
The study adopted a quantitative research method where questionnaire survey was used to obtain data from sixty-six (66) construction professionals in the GCI through snowball sampling technique. The collected data were analysed using frequencies, mean scores, one-sample t-test and cross-tabulation.
Findings
The study revealed that thirty (30) construction professionals out of the sixty-six (66) had a moderate level of awareness of NZEBs, and 14 professionals had a low level of awareness. Thirteen had a high level of awareness. Three of the profesionals were extremely unaware, while six had a very high level of awareness. The study’s findings highlight the need to create awareness of NZEBs and their practices among construction professionals and employees in Ghana.
Originality/value
NZEB is an under-explored area in the Ghanaian context and therefore, this study uniquely highlights the nascent awareness of NZEBs among Ghanaian construction professionals, unlike previous studies in more developed contexts. It underscores the critical need for targeted awareness programs essential for reducing the carbon footprint and advancing the adoption of NZEBs in the GCI.