This paper aims to examine the processes of sustainability reporting assurance (SRA) and the influence they have on shaping perception from disclosures. Given the evidence of…
Abstract
Purpose
This paper aims to examine the processes of sustainability reporting assurance (SRA) and the influence they have on shaping perception from disclosures. Given the evidence of inconsistencies and ambiguities in assurance processes, this paper examines how legitimacy is attained and maintained at different stages of SRA.
Design/methodology/approach
Evidence collected from 23 semi-structured interviews with assurance providers (APs), consultants, professionals and non-governmental organisations (NGOs) (non-APs) was used to conduct a thematic analysis from the perspectives of interviewees.
Findings
APs and non-APs are united in recognising the value of SRA, although, perspectives on transparency between the two groups differ. Experience and industry knowledge are essential to SRA delivery with non-APs preferring accounting APs. Nevertheless, non-APs are concerned about the role of companies in deciding assurance scope, as it can affect scrutiny. APs favour data accuracy (as opposed to data relevance) assurance due to team dynamics and internal review influences, with the latter also restricting assurance innovation. APs are interested in accessing better evidence and stakeholder engagement evaluations. Providing advisory services was not rejected by all APs. The perspectives of APs and non-APs demonstrate how progress in SRA has gained pragmatic legitimacy with noticeable gaps that serve to undermine attainment of moral legitimacy.
Research limitations/implications
SRA is a developing practice that will adopt changes as it continues to mature; some of these changes could impact findings in this research. General perspectives on SRA were sought from interviewees, this affected the ability for an in-depth focus on any of the range of interesting SRA issues that arose over the course of the research. Interviews were conducted with relevant parties in the SRA space that operate in the UK. Perspectives from parties outside the UK were not solicited.
Practical implications
Companies make an important decision to commission SRA. Findings in this research have highlighted specific non-APs issues of concern that can be useful in structuring operations and reporting regimes to facilitate assurance procedures. The findings will also be helpful to APs as they can direct more emphasis on stakeholder concerns towards demonstrating greater stakeholder accountability. Regulatory and standard setters can enact appropriate policies that can potentially drive the practice forward for assessment of cognitive legitimacy.
Social implications
The findings provide relevant account of stakeholder voices on the quality of corporate disclosures that has a direct effect on the wellbeing of communities and sustainability of societies. Collective stakeholder input on expectations can shape sustainability discourse.
Originality/value
This research demonstrates the applicability of financial audit quality indicators in SRA processes, extends the debate around the effectiveness of new audit fields and highlights the challenges of maintaining legitimacy with different audiences.
Details
Keywords
Alireza Rohani, Mirna Jabbour and Sulaiman Aliyu
With the growing attention around carbon emissions disclosure, the demand for external carbon assurance on emissions reports has been increasing by stakeholders as it provides…
Abstract
Purpose
With the growing attention around carbon emissions disclosure, the demand for external carbon assurance on emissions reports has been increasing by stakeholders as it provides additional credibility and confidence. This study investigates the association between the higher level of external carbon assurance and improvement in a firm's carbon emissions. It provides an understanding of corporate incentives for obtaining a higher level of carbon assurance, particularly in relation to carbon performance enhancements.
Design/methodology/approach
Data are collected from 170 US companies for the period 2012–2017 and are analysed using a change analysis. Generalised method of moment (GMM) is used to address endogeneity.
Findings
Following the rationales taken by legitimacy and “outside-in” management views, the findings reveal that a higher level of carbon assurance (i.e. reasonable assurance) marginally improves firms' carbon performance (i.e. reported carbon emissions). This is consistent with “outside-in” management view suggesting that a higher level of assurance could be utilised as a tool for accessing more information about stakeholders' needs and concerns, which can be useful in enhancing carbon performance.
Research limitations/implications
The findings are generalisable to US firms and may not extend to other contexts.
Practical implications
The implication of this study for companies is that a high level of sustainability assurance is a useful tool to access detailed information about stakeholder concerns, of which internalisation can help to marginally improve carbon performance. For policymakers, the insights into and enhanced understanding of the incentives for obtaining carbon assurance can help policymakers to develop effective policies and initiatives for carbon assurance. Considering the possible improvements in carbon performance when obtaining a high level of sustainability verification, governments need to consider mandating carbon assurance.
Originality/value
This study extends the existing studies of assurance in sustainability context as well as in carbon context by explaining why companies voluntarily get expensive external verification (i.e. higher level of assurance) of their carbon emissions disclosure. This study responds to calls in the literature for empirical research investigating the association between environmental performance and external assurance with a focus on level of assurance.
Highlights
A higher level of carbon assurance Marginally improves firms' carbon performance.
Corporate incentives to obtain higher level of carbon assurance is beyond seeking legitimacy.
Higher level of assurance is a useful tool for accessing more information about stakeholders' concerns.
Consistent with “ouside-in”management view, companies internalise stakeholders' concerns to marginally improve performance.
A higher level of carbon assurance Marginally improves firms' carbon performance.
Corporate incentives to obtain higher level of carbon assurance is beyond seeking legitimacy.
Higher level of assurance is a useful tool for accessing more information about stakeholders' concerns.
Consistent with “ouside-in”management view, companies internalise stakeholders' concerns to marginally improve performance.
Details
Keywords
Nasiru Salihu, Poom Kumam, Sulaiman Mohammed Ibrahim and Huzaifa Aliyu Babando
Previous RMIL versions of the conjugate gradient method proposed in literature exhibit sufficient descent with Wolfe line search conditions, yet their global convergence depends…
Abstract
Purpose
Previous RMIL versions of the conjugate gradient method proposed in literature exhibit sufficient descent with Wolfe line search conditions, yet their global convergence depends on certain restrictions. To alleviate these assumptions, a hybrid conjugate gradient method is proposed based on the conjugacy condition.
Design/methodology/approach
The conjugate gradient (CG) method strategically alternates between RMIL and KMD CG methods by using a convex combination of the two schemes, mitigating their respective weaknesses. The theoretical analysis of the hybrid method, conducted without line search consideration, demonstrates its sufficient descent property. This theoretical understanding of sufficient descent enables the removal of restrictions previously imposed on versions of the RMIL CG method for global convergence result.
Findings
Numerical experiments conducted using a hybrid strategy that combines the RMIL and KMD CG methods demonstrate superior performance compared to each method used individually and even outperform some recent versions of the RMIL method. Furthermore, when applied to solve an image reconstruction model, the method exhibits reliable results.
Originality/value
The strategy used to demonstrate the sufficient descent property and convergence result of RMIL CG without line search consideration through hybrid techniques has not been previously explored in literature. Additionally, the two CG schemes involved in the combination exhibit similar sufficient descent structures based on the assumption regarding the norm of the search direction.
Details
Keywords
Agus Hartanto, Nachrowi Djalal Nachrowi, Palupi Lindiasari Samputra and Nurul Huda
This paper aims to analyze the scientific trend of research on Islamic banking sustainability (IBS) through a bibliometric study. In particular, the paper extensively investigates…
Abstract
Purpose
This paper aims to analyze the scientific trend of research on Islamic banking sustainability (IBS) through a bibliometric study. In particular, the paper extensively investigates all the articles issued through the Scopus database regarding the IBS.
Design/methodology/approach
The authors discovered 76 papers that met the function, subject and set requirements by using the phrase IBS. The authors used VOSviewer as an analytical tool and the Scopus website.
Findings
IBS publications were found in the period 2005–2022, and the publication trend of IBS research demonstrates that it is growing exponentially after 2018. Malaysia is the leading country in terms of productive authors, universities, number of documents, citations and collaboration research on IBS. The current research trends are summarized into five cluster maps for future research directions: sustainability measurement, sustainability practices, risk and governance, corporate social responsibility (CSR) and IBS theory. The Maqashid al Shariah approach conceptually influences the framework for constructing the dimensions and indicators used to measure the IBS.
Research limitations/implications
The authors retrieved data for their research from the Scopus database; using other databases might result in totally different research patterns with this IBS bibliometric research.
Practical implications
The research encompasses valuable implications for Islamic banking as it offers valuable insights on how to assess the performance of IBS. Particularly, it contributes to identifying the dimensions and indicators needed to measure IBS performance. Furthermore, this research provides strategic initiatives to promote sustainable practices in Islamic banking in terms of green financing taxonomy, services, operations, risk management and governance.
Social implications
This research is valuable for other scholars as it offers a foundation for the future growth of IBS research, focusing on important sustainability clusters obtained from selected reputable journals. This research is beneficial for regulators in enhancing the roadmap for establishing and enhancing long-term IBS with impacts on socio-economic, environmental and governance.
Originality/value
The study presents a concise review of the bibliometric study in IBS and provides recommendations for future research directions in cluster mapping of themes and subthemes. There is still insufficient research that examines the IBS, in particular, complete insights into the IBS literature review.
Details
Keywords
Sulaiman Lujja, Mustafa Omar Mohammad and Rusni Hassan
Islamic banking (IB) has resulted in abundant cross-border financial flows and diversified economic inter-linkages with over US$2tn in assets that have extended beyond Muslim…
Abstract
Purpose
Islamic banking (IB) has resulted in abundant cross-border financial flows and diversified economic inter-linkages with over US$2tn in assets that have extended beyond Muslim countries to more established global financial centres and other emerging economies. Despite this remarkable diffusion, numerous developing and least-developed countries are yet to embrace IB. This study aims to examine the factors that determine public intention to adopt IB in Uganda.
Design/methodology/approach
This study undertook a quantitative approach where the theory of reasoned action (TRA) was used as a theoretical framework and structural equation modelling technique was applied to determine the relationship between attitude, subjective norm and public intention to adopt IB. Thus, a sample of 300 bank customers was surveyed using a questionnaire.
Findings
Initially, the measurement model did not fit the data well. So, the model was modified by removing an indicator with a lower loading. Finally, the structural model under maximum likelihood estimate analysis confirmed a good model fit for the data. Key findings were as follows: attitude positively influenced intention to adopt IB, whereas subjective norm influence to intention is mediated by attitude. Furthermore, public intention to adopt IB in Uganda can be predicted by attitude (R2 = 0.89) which also mediates the prediction of subjective norm to intention (R2 = 0.58).
Originality/value
To the best of the authors’ knowledge, no study has used the TRA on the feasibility and adoption of IB. Thus, the present study is relevant in extending the theoretical body of knowledge by validating the TRA in a new field.
Details
Keywords
Aliyu Yelwa Haruna and Govindan Marthandan
This study aims to examine the impact of foundational competencies on work engagement in the context of the Malaysian small and medium enterprises (SMEs) service sector.
Abstract
Purpose
This study aims to examine the impact of foundational competencies on work engagement in the context of the Malaysian small and medium enterprises (SMEs) service sector.
Design/methodology/approach
This is a cross-sectional study conducted in Malaysia, and data were gathered via a survey on 312 employees representing SMEs service sectors. Partial least squares techniques were used in testing the hypothesized linkages.
Findings
The findings indicated that foundational competencies have a significant positive effect on work engagement.
Research limitations/implications
Considering the research approach, generalizing the findings of this study must be done with caution. Longitudinal data are recommended, as these could provide additional support to the results. Further studies can as well extend the framework by testing whether job resources play a positive role in enhancing the relationship between foundational competencies and work engagement in Malaysia.
Practical implications
The findings suggest that foundational competencies positively relate to work engagement. Therefore, training and coaching sessions could be organized by managers/policy makers to enhance these competencies, which will strengthen work engagement and career development of the employee; it may specifically be very helpful for fresh graduates whose careers would have just started.
Originality/value
To the authors’ knowledge, this is the first attempt to examine the effect of American Society of Training and Development foundational competencies on work engagement in SMEs in Malaysia.
Details
Keywords
M. Kabir Hassan, Sirajo Aliyu, Buerhan Saiti and Zairihan Abdul Halim
This paper reviews economic and finance research on Islamic investments. In the course of our review, we focus on the following issues: the performance of Islamic stock indexes…
Abstract
Purpose
This paper reviews economic and finance research on Islamic investments. In the course of our review, we focus on the following issues: the performance of Islamic stock indexes, Islamic finance–growth nexus and Islamic real-estate investment trust market.
Design/methodology/approach
This literature survey consists of two stages such as random and systematic. It begins with a random search of articles with the intention to explore the three different areas of Islamic banking and finance. In order to maintain some level of quality of the literature review, we explored inside citations of articles based on relevant and recent articles from SCOPUS and Web of Science.
Findings
This paper represents an attempt to organise current research on Islamic stock markets, Islamic finance-growth nexus and Islamic real-estate finance: (1) the first prevailing finding is that Islamic stock indices are less volatile than conventional stock indices; (2) most empirical studies regarding Islamic finance–growth nexus focus on the impacts of banking sectors on growth and neglect other segments of the Islamic financial market; (3) based on our review of existing studies, there is no unanimous model for Islamic home financing in Islamic banks.
Practical implications
The mixed findings in this area hinder the understanding of Islamic investment and prevent identifying trends that support decision-making. Our review provides suggestions for prospective research directions. Most empirical studies regarding Islamic finance–growth nexus focus on the impacts of banking sectors on growth and neglect other segments of the Islamic financial market.
Originality/value
There is no literature review on Islamic finance-growth nexus and Islamic real-estate literature. Therefore, we are going to fill this gap to review these three different aspects of Islamic banking and finance.
Details
Keywords
The issue that revolves around corporate governance and corporate environmental reporting (CER) has always been an essential element deliberated upon globally. A good corporate…
Abstract
Purpose
The issue that revolves around corporate governance and corporate environmental reporting (CER) has always been an essential element deliberated upon globally. A good corporate governance mechanism instills an investor’s confidence and ensures a transparent process that facilitates more disclosures and quality reporting. Precisely, the purpose of this paper is to investigate the relationship between corporate governance variables, namely, board size, board independence, board meeting (BM), risk management committee composition and CER in Nigeria. This study utilized the data obtained from the annual reports of 24 non-financial public listed companies in the Nigeria Stock Exchange comprising three sectors, namely, industrial goods, natural resources and oil & gas for the period of 2011–2015. The model of this study is theoretically based on agency theory. In analyzing data, this study utilized panel data analysis. Based on the Hausman test, the random effect model was used to examine the effect of predictors on CER. The result indicates a positive significant relationship between board independence and CER. Similarly, a positive significant relationship between BM and CER is revealed in the study. However, there is no significant relationship between other hypothesis variables and CER. Finally, the study provides suggestions for future research and several recommendations for regulators, government and accounting professional bodies.
Design/methodology/approach
The data was analysed using statistics.
Findings
The result indicates a positive significant relationship between board independence and CER. Similarly, a positive significant relationship between BM and CER is revealed in the study. However, there is no significant relationship between other hypothesis variables and CER.
Originality/value
There are no prior studies linking risk management committee with CER.
Details
Keywords
This study aims to explore the relationship between the growth threshold effect on renewable energy consumption (REC) in the major oil-producing countries in sub-Saharan Africa…
Abstract
Purpose
This study aims to explore the relationship between the growth threshold effect on renewable energy consumption (REC) in the major oil-producing countries in sub-Saharan Africa (SSA) over the period 1990–2018.
Design/methodology/approach
This article used a dynamic panel threshold regression model introduced by Hansen (1996, 1999 and 2000) threshold (TR) models. The procedure is achieved using 5,000 bootstrapping replications and the grid search to obtain the asymptotic distribution and p-values. For the long-run relationship among our variables, the author followed the process in Pesaran et al. (1999) pooled mean group (PMG) for heterogeneous panels. Furthermore, for the robustness of our empirical results due to the sensitivity of the results to outliers, the author used the approach by Cook (1979) distance measure. The author applied quantile (QR) regression to explore the distribution of dependent variables following Bassett and Koenker (1982) and Koenker and Bassett (1978) approaches.
Findings
The results from the threshold effect test and threshold regression revealed a significant single threshold effect of growth level on REC. Furthermore, the result from the PMG estimation showed the growth of the variable, energy intensity, consumer prices and CO2 emissions play a significant role in REC in major oil-producing countries in SSA. The growth threshold estimation results indicated one significant threshold value of 1.013% at one period lagged of real growth. The outlier’s sensitivity detention greatly influenced our empirical results.
Originality/value
The article filled the literature gap by applying a combined measure that is robustness to detect outliers in the data, which none of the studies in the literature addresses hitherto. Further, the article extends the quantile regression to growth – REC literature.