Albert Danso, Theophilus Lartey, Samuel Fosu, Samuel Owusu-Agyei and Moshfique Uddin
This paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as…
Abstract
Purpose
This paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.
Design/methodology/approach
The paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.
Findings
Drawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.
Originality/value
This paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.
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Polydoros Demetriades and Samuel Owusu-Agyei
The purpose of this paper is to examine Toshiba’s fraudulent financial reporting in relation to the fraud diamond (pressure, opportunity, rationalisation and capability).
Abstract
Purpose
The purpose of this paper is to examine Toshiba’s fraudulent financial reporting in relation to the fraud diamond (pressure, opportunity, rationalisation and capability).
Design/methodology/approach
A quantitative empirical research, analysing secondary data from Toshiba’s published annual reports before restatement, from 2008–2014 has been used. A simultaneous equations approach was used to test the hypothesis. Excel software was used to analyse secondary data and to carry out correlation analysis and descriptive statistics analysis.
Findings
This study uncovers evidence that pressure proxied by return on assets (ROA), the opportunity proxied by ineffective monitoring (BDOUT), rationalisation proxied by audit opinion (AO) and capability proxied by board member changes (BCHANGE) had moderate to strong relationship to financial statement fraud (FSF) (proxied by Beneish M-score model). However, ROA has a negative and significant effect on Toshiba’s FSF. BDOUT, AO and BCHANGE have positive and significant effect on Toshiba’s FSF. Furthermore, there is no multicollinearity problem within the four variables. Overall, this study has statistically proven that all dimensions of fraud diamond are required for the explanation of Toshiba’s accounting scandal.
Originality/value
Although a few studies discuss the four dimensions (fraud diamond), none, to our surprise, exists which explain the circumstances led Toshiba’s high-level executives to commit fraud. This study is the first thorough investigation of Toshiba’s accounting scandal that uses all four dimensions to explain Toshiba’s FSF.
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Samuel Koufie, Lexis Alexander Tetteh, Amoako Kwarteng and Richard Amankwa Fosu
This study aims to investigate the impact of ethical accounting practices on financial reporting quality by using the extended theory of planned behaviour (ETPB) and integrating…
Abstract
Purpose
This study aims to investigate the impact of ethical accounting practices on financial reporting quality by using the extended theory of planned behaviour (ETPB) and integrating religiosity as a moderating variable.
Design/methodology/approach
Using a survey method, data was obtained from 371 chartered accountants who were in good standing as of April 2023. The collected data were then analysed using partial least squares structural equation modelling.
Findings
The results revealed that there is a significant positive relationship between ethical accounting practices (attitude, subjective norm, perceived behavioural control and ethical judgement) and financial reporting quality of accounting practitioners. Furthermore, a moderation test was conducted, which demonstrated that religiosity enhances the positive correlation between ethical accounting constructs (attitude, subjective norm and ethical judgement) and financial reporting.
Practical implications
Leading by example, top-level management should actively promote a culture of religiosity that prioritises integrity and adherence to financial reporting requirements.
Originality/value
To the best of the authors’ knowledge, this is one of the very few ethics studies in accounting that demonstrates that the application of the ETPB improves financial reporting quality in a context fraught with allegations of moral breaches by accountants.
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Samuel Affran, Emma Doreen Otiwaa Oppong and Joseph Yenabil Kolug
Family businesses are on the rise and facing severe sustainability challenges. The overall purpose of this thesis is to examine the moderating role of technological resources in…
Abstract
Purpose
Family businesses are on the rise and facing severe sustainability challenges. The overall purpose of this thesis is to examine the moderating role of technological resources in the relationship between marketing innovation and family business sustainability.
Design/methodology/approach
From a post-positivist perspective, this study utilized a quantitative approach and causal research design. 204 family businesses within the Accra Metropolitan Assembly were sampled for this study. Structural Equation Modeling (SMART PLS 4) was utilized for data analysis after a closed-ended questionnaire was used to gather data.
Findings
It was evidenced that marketing innovation has a positive significant effect on family business sustainability. Technological resources have a negative significant moderating effect on the relationship between marketing innovation and family business sustainability.
Originality/value
The originality of this study lies in examining the moderating effect of technological resources on the relationship between marketing innovation and family business sustainability in Ghana, where this phenomenon is less explored.
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Albert Danso, Samuel Adomako, Joseph Amankwah-Amoah and Theophilus Lartey
Building on the upper echelons theory and sustainability orientation (SO) literature, this paper aims to examine the possibility that the relationship between chief executive…
Abstract
Purpose
Building on the upper echelons theory and sustainability orientation (SO) literature, this paper aims to examine the possibility that the relationship between chief executive officers’ (CEOs’) SO and venture growth might be mediated by levels of corporate social responsibility (CSR) implementation.
Design/methodology/approach
The authors used data obtained from 211 new ventures operating in Ghana. Multiple regression analysis was used to test the hypotheses.
Findings
The authors found that CSR implementation mediates the relationship between SO and venture growth. In addition, the authors found that, at higher levels of financial slack, the effect of SO on CSR implementation is attenuated. However, the results show that, at higher levels of CEO power, the influence of SO on CSR implementation is amplified.
Originality/value
To the best of the authors’ knowledge, this study is among the first to examine the mediating role of CSR implementation in the relationship between SO and venture growth and also examines two internal contingency factors (i.e. CEO power and financial slack) on this association.
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Olivia Ellison, Dorcas Nuertey, Emmanuel Poku, Samuel Agbemude and Felix Owusu
The purpose of this study was to examine the relationship between environmental pressure, green logistics strategy (GLS) and sustainability performance as well as the moderating…
Abstract
Purpose
The purpose of this study was to examine the relationship between environmental pressure, green logistics strategy (GLS) and sustainability performance as well as the moderating role of competitive intensity in the relationship between environmental pressure and GLS in the context of the Ghanaian Manufacturing firms.
Design/methodology/approach
The study included a thorough review of the literature and an empirical questionnaire-based data collection with responses from 220 participant manufacturing firms in Ghana. The data collected was statistically analysed using the PLS-SEM software.
Findings
The findings of the study indicated that environmental pressure positively influences the implementation of GLS. Again, it was revealed that there is a significant relationship between GLS and sustainability performance. Likewise, the study also found that environmental pressure significantly influences sustainability performance. Also, competitive intensity was found to moderate the relationship between environmental pressure and GLS.
Practical implications
This study gives insight into GLS and sustainability performance and also suggested that when managers in manufacturing industries adopt green practices as a result of environmental pressure, sustainability performance will be achieved. The geographic scope of the study area and time constraints were some of the research's limitations.
Originality/value
Although there have been studies carried out on the subject of green logistics, this study is the first of its kind to examine the relationship between environmental pressure, GLS and sustainability performance within the context of developing economies such as Ghana. Also, this study shows how intense competition in the market can moderate the adoption of GLS.
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Emmanuel Adu-Ameyaw, Albert Danso, Samuel Acheampong and Cynthia Akwei
This study aims to examine the impact of executive bonus compensation on a firm’s financial leverage policy and the extent to which this compensation–leverage relation is…
Abstract
Purpose
This study aims to examine the impact of executive bonus compensation on a firm’s financial leverage policy and the extent to which this compensation–leverage relation is moderated by firm growth and executive ownership.
Design/methodology/approach
Using data from 213 non-financial and non-utility UK FTSE 350 firms for the period 2007–2015, generating a total of 1,784 firm-year observations, panel econometric methods are used to test the model.
Findings
Drawing insights from agency theoretic view, this paper uncovers that managerial cash bonus compensation is negatively and significantly related to financial leverage. However, stock bonus compensation has a positive and significant impact on leverage. This study also observes that compensation–leverage is moderated by both firm growth and executive ownership. The results remain robust to alternative econometric models.
Originality/value
While this paper builds on the risk-motivated argument of executive bonus compensation literature, it is the first – to the best of the knowledge – to explore the bonus compensation-corporate financial leverage and, particularly, examine the extent to which firm growth and corporate executive ownership matter in this relationship.
The main purpose of this study is to understand how collective operational practices are adapted or stimulated by a firm's competitive strategy.
Abstract
Purpose
The main purpose of this study is to understand how collective operational practices are adapted or stimulated by a firm's competitive strategy.
Design/methodology/approach
This study employed a data set drawn from 124 plant managers and directors of Indian manufacturing firms. Multiple regression was used to examine the impact of operational practices of lean, total quality management (TQM) and supply chain management (SCM) within competitive clusters of cost leadership, differentiation and focus strategy.
Findings
Results of the study show that the pattern of impact of operational practices on firm's performance varies according to type of the competitive strategy employed. All the three competitive strategy clusters have reported that TQM is the most important trigger for Indian manufacturing firms with relative effect of TQM practices on firm's performance being higher than that of lean and SCM practices.
Research limitations/implications
Cross-sectional data from Indian manufacturing firms were used, and it would be interesting to test the analytical framework of the study for more sectors and countries. Future studies can take a longitudinal research approach to strengthen the findings of the study.
Practical implications
The findings explain how operational practices are aligned with competitive strategies for practitioners so that they can assign limited resources to build diverse operational capabilities based on their strategic choices.
Originality/value
Although very few classical studies are reported in various contexts involving competitive strategy, operational practices and firm's performance, no existing study focuses on how these three domains are linked together in the context of Indian manufacturing sector.
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Maryam Ijaz, Zaheer Ahmed and Nauman Khalid
This study aims to assess the information-seeking behaviors, attitudes and beliefs about pregnancy-related nutrition, food-related myths and taboos and supplementation among…
Abstract
Purpose
This study aims to assess the information-seeking behaviors, attitudes and beliefs about pregnancy-related nutrition, food-related myths and taboos and supplementation among pregnant women in different communities of Pakistan.
Design/methodology/approach
A cross-sectional quantitative survey method was used in this study, which included 150 pregnant women from various locations in Lahore and Faisalabad.
Findings
Most participants were between the ages of 25 and 29, having 14 years of education. Regardless of age or number of children, all selected women had the same dietary awareness. Regarding myths and taboos, highly significant values (p = 0.001) were found in various studied variables. No significant difference was observed in knowledge level between age and number of children. It was observed that food myths and taboos significantly (p = 0.001) impact pregnant women’s dietary choices.
Research limitations/implications
This survey experienced limited representativeness; many participants provided incomplete food and nutritional information. This research was conducted in two major districts of Pakistan, i.e. Lahore and Faisalabad; therefore, the results can be generalized for a population of pregnant women living in the northeastern region of Pakistan.
Practical implications
This study can provide helpful insight for health-care professionals to improve pregnant women’s nutritional status and knowledge.
Social implications
The outcomes of this study can help guide how pregnant women might be educated and have better nutritional awareness at domestic and professional levels.
Originality/value
In Pakistan, there is a lack of research on pregnant women’s nutritional knowledge, and this research can assist health-care professionals in providing diversified knowledge to promote maternal health.