Pub Date : 2023-08-22DOI: 10.1108/jaee-10-2022-0313
A. Suryani, C. Helliar, Amanda Carter
PurposeDiversity and inclusion is a key focus of the profession. This paper investigates the ecological inherited niche of Indonesia and which employers accounting students choose and whether this will result in a diverse and inclusive profession. The authors conceptualise diversity as the demand-from the profession encompassing professional accounting firms, and inclusion as the supply of individuals wishing to enter the profession.Design/methodology/approachThe 1377 responses to a questionnaire survey of students deciding on their career paths were analysed using a multinomial logistic regression and path model.FindingsThe findings show that a lack of diversity in the profession is caused by the ecological background, constructing a local niche, that prevents diversity. This is manifest in ethnicity, gender and education, whereby the local niche consists of Chinese males recruited from B-rated private universities. To bring diversity and inclusivity into the workplace, the profession needs to entice people from multi-faceted groups and match ecological niche underpinnings to expectations of the professional landscape. Non-Chinese females are needed to become role models and trail blazers to establish a diverse profession. The public interest will then be better served.Originality/valueThis study uses niche construction as the theoretical framing and demonstrates that the profession needs to take action to become truly diverse and inclusive.
{"title":"Ecological underpinnings of niche identity and diversity within the profession","authors":"A. Suryani, C. Helliar, Amanda Carter","doi":"10.1108/jaee-10-2022-0313","DOIUrl":"https://doi.org/10.1108/jaee-10-2022-0313","url":null,"abstract":"PurposeDiversity and inclusion is a key focus of the profession. This paper investigates the ecological inherited niche of Indonesia and which employers accounting students choose and whether this will result in a diverse and inclusive profession. The authors conceptualise diversity as the demand-from the profession encompassing professional accounting firms, and inclusion as the supply of individuals wishing to enter the profession.Design/methodology/approachThe 1377 responses to a questionnaire survey of students deciding on their career paths were analysed using a multinomial logistic regression and path model.FindingsThe findings show that a lack of diversity in the profession is caused by the ecological background, constructing a local niche, that prevents diversity. This is manifest in ethnicity, gender and education, whereby the local niche consists of Chinese males recruited from B-rated private universities. To bring diversity and inclusivity into the workplace, the profession needs to entice people from multi-faceted groups and match ecological niche underpinnings to expectations of the professional landscape. Non-Chinese females are needed to become role models and trail blazers to establish a diverse profession. The public interest will then be better served.Originality/valueThis study uses niche construction as the theoretical framing and demonstrates that the profession needs to take action to become truly diverse and inclusive.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47573301","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-21DOI: 10.1108/jaee-10-2022-0283
A. Nour, M. Najjar, Saed Al Koni, Abullateef Abudiak, Mahmoud Ibrahim Noor, R. Shahwan
PurposeThe purpose of this research is to examine the impact of governance mechanisms on corporate failure.Design/methodology/approachThis study used a hypothesis-testing research design to collect data from the annual reports of 35 companies listed on Palestine Exchange from 2010 to 2019. Descriptive and inferential statistics were employed, along with correlation analysis to evaluate linear relationships between variables. The variance inflation factor was used to test multicollinearity, and binary logistic regression was utilized to develop the research model.FindingsThere is a significant positive relationship between board of directors' independency, institutional ownership and the quality of external audit, and corporate failure reduction. No significant relationship has been found among corporate governance variables such as board size, board meetings' frequency, board members' remuneration and audit committee existence, and corporate failure reduction.Research limitations/implicationsSeveral empirical research studies have developed models to predict corporate failure using accounting and financial data. However, limited research has empirically investigated the impact of the different mechanisms of governance on corporate failure prediction.Practical implicationsThe research highlighted the significance of companies' commitment to governance principles and their impact on predicting failure. The study suggests that decision-makers and managers can adopt different governance mechanisms to support corporate success and avoid those that may lead to negative consequences and failure.Originality/valueThis research is the first in Palestine to use a comprehensive list of corporate governance mechanisms to predict the failure of companies listed on the Palestine Stock Exchange between 2010 and 2019.
{"title":"The impact of corporate governance mechanisms on corporate failure: an empirical evidence from Palestine Exchange","authors":"A. Nour, M. Najjar, Saed Al Koni, Abullateef Abudiak, Mahmoud Ibrahim Noor, R. Shahwan","doi":"10.1108/jaee-10-2022-0283","DOIUrl":"https://doi.org/10.1108/jaee-10-2022-0283","url":null,"abstract":"PurposeThe purpose of this research is to examine the impact of governance mechanisms on corporate failure.Design/methodology/approachThis study used a hypothesis-testing research design to collect data from the annual reports of 35 companies listed on Palestine Exchange from 2010 to 2019. Descriptive and inferential statistics were employed, along with correlation analysis to evaluate linear relationships between variables. The variance inflation factor was used to test multicollinearity, and binary logistic regression was utilized to develop the research model.FindingsThere is a significant positive relationship between board of directors' independency, institutional ownership and the quality of external audit, and corporate failure reduction. No significant relationship has been found among corporate governance variables such as board size, board meetings' frequency, board members' remuneration and audit committee existence, and corporate failure reduction.Research limitations/implicationsSeveral empirical research studies have developed models to predict corporate failure using accounting and financial data. However, limited research has empirically investigated the impact of the different mechanisms of governance on corporate failure prediction.Practical implicationsThe research highlighted the significance of companies' commitment to governance principles and their impact on predicting failure. The study suggests that decision-makers and managers can adopt different governance mechanisms to support corporate success and avoid those that may lead to negative consequences and failure.Originality/valueThis research is the first in Palestine to use a comprehensive list of corporate governance mechanisms to predict the failure of companies listed on the Palestine Stock Exchange between 2010 and 2019.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43964540","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-18DOI: 10.1108/jaee-08-2022-0224
M. Shamil, D. Gooneratne, Dasitha Gunathilaka, Junaid M. Shaikh
PurposeThis study examines the effect of board characteristics on the tax aggressiveness of listed companies on the Colombo Stock Exchange in Sri Lanka.Design/methodology/approachThe sample consists of 264 firm-year observations of non-financial listed companies in Sri Lanka from 2014 to 2019. The dynamic panel system GMM technique was used to test the hypotheses, and further analyses were performed using the propensity score matching technique.FindingsAll four effective tax rate measures' mean values were lower than the statutory tax rate, indicating the likelihood of tax planning. Whether board attributes are likely to mitigate tax aggressiveness is uncertain because the results are inconsistent and depend on the ETR measure. Similarly, the logistic regression results derived using the PSM approach are inconsistent, suggesting that board characteristics may have a limited effect on tax aggressiveness. Hence, the corporate governance-tax aggressiveness nexus is limited in the case of Sri Lanka.Research limitations/implicationsThis investigation is limited to non-financial listed companies in Sri Lanka and incorporates only four tax aggressiveness measures. Findings are imperative for policymakers, regulators, and professional bodies to improve corporate governance codes and rules to enhance organisational transparency toward corporate tax payments.Social implicationsAggressive tax planning by companies will reduce government tax revenue, hinder social progress, and cause public mistrust of large corporations and institutions.Originality/valueThis study provides insight into the nexus between corporate governance and tax aggressiveness in a middle-income economy in South Asia hit by an economic crisis where tax revenue has fallen and tax enforcement is weak.
{"title":"The effect of board characteristics on tax aggressiveness: the case of listed entities in Sri Lanka","authors":"M. Shamil, D. Gooneratne, Dasitha Gunathilaka, Junaid M. Shaikh","doi":"10.1108/jaee-08-2022-0224","DOIUrl":"https://doi.org/10.1108/jaee-08-2022-0224","url":null,"abstract":"PurposeThis study examines the effect of board characteristics on the tax aggressiveness of listed companies on the Colombo Stock Exchange in Sri Lanka.Design/methodology/approachThe sample consists of 264 firm-year observations of non-financial listed companies in Sri Lanka from 2014 to 2019. The dynamic panel system GMM technique was used to test the hypotheses, and further analyses were performed using the propensity score matching technique.FindingsAll four effective tax rate measures' mean values were lower than the statutory tax rate, indicating the likelihood of tax planning. Whether board attributes are likely to mitigate tax aggressiveness is uncertain because the results are inconsistent and depend on the ETR measure. Similarly, the logistic regression results derived using the PSM approach are inconsistent, suggesting that board characteristics may have a limited effect on tax aggressiveness. Hence, the corporate governance-tax aggressiveness nexus is limited in the case of Sri Lanka.Research limitations/implicationsThis investigation is limited to non-financial listed companies in Sri Lanka and incorporates only four tax aggressiveness measures. Findings are imperative for policymakers, regulators, and professional bodies to improve corporate governance codes and rules to enhance organisational transparency toward corporate tax payments.Social implicationsAggressive tax planning by companies will reduce government tax revenue, hinder social progress, and cause public mistrust of large corporations and institutions.Originality/valueThis study provides insight into the nexus between corporate governance and tax aggressiveness in a middle-income economy in South Asia hit by an economic crisis where tax revenue has fallen and tax enforcement is weak.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42755385","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-14DOI: 10.1108/jaee-12-2022-0347
Karim Hegazy, Mohamed A. K. Basuony, Neveen Noureldin, Marwa Abdulla
PurposeThis study assesses the perception of academics and practitioners of ramifications that may have impacted audit evidence quality during COVID-19 in Egypt.Design/methodology/approachA questionnaire was collected and designed regarding the factors affecting the quality of audit evidence during the COVID-19 pandemic using a five-point Likert scale, and detailed descriptive statistics and regression analyses were conducted.FindingsThe study finds that there is no significant association between social distancing (SD), changing in the economic environment (CEE), time constraint (TC) and stress on audit personnel (SAP) as repercussions of the COVID-19 pandemic with the quality of audit evidence (QAE). The disruption in operational results (DOR), changes in the internal control (CIC) and the stress on client personnel (SCP) significantly affect the quality of audit evidence. Moreover, there is a significant difference between Big and non-Big Four audit firms in terms of changes in economic conditions, internal controls, disruption of operational results and time-constraint variables. The latter has significantly affected the audit evidence quality for both academics and professionals.Practical implicationsDue to the implementation of SD and work-from-home policies, audit firms are highly recommended to invest more in digital programs and to be more adaptable to work-from-home, which policy and enhances the effectiveness and flexibility of communication between auditors and their clients.Originality/valueThis paper is one of the foremost papers that provides empirical evidence for the antecedents or variables that may affect audit quality evidence due to the COVID-19 pandemic.
{"title":"The antecedents of COVID-19 contagion on quality of audit evidence in Egypt","authors":"Karim Hegazy, Mohamed A. K. Basuony, Neveen Noureldin, Marwa Abdulla","doi":"10.1108/jaee-12-2022-0347","DOIUrl":"https://doi.org/10.1108/jaee-12-2022-0347","url":null,"abstract":"PurposeThis study assesses the perception of academics and practitioners of ramifications that may have impacted audit evidence quality during COVID-19 in Egypt.Design/methodology/approachA questionnaire was collected and designed regarding the factors affecting the quality of audit evidence during the COVID-19 pandemic using a five-point Likert scale, and detailed descriptive statistics and regression analyses were conducted.FindingsThe study finds that there is no significant association between social distancing (SD), changing in the economic environment (CEE), time constraint (TC) and stress on audit personnel (SAP) as repercussions of the COVID-19 pandemic with the quality of audit evidence (QAE). The disruption in operational results (DOR), changes in the internal control (CIC) and the stress on client personnel (SCP) significantly affect the quality of audit evidence. Moreover, there is a significant difference between Big and non-Big Four audit firms in terms of changes in economic conditions, internal controls, disruption of operational results and time-constraint variables. The latter has significantly affected the audit evidence quality for both academics and professionals.Practical implicationsDue to the implementation of SD and work-from-home policies, audit firms are highly recommended to invest more in digital programs and to be more adaptable to work-from-home, which policy and enhances the effectiveness and flexibility of communication between auditors and their clients.Originality/valueThis paper is one of the foremost papers that provides empirical evidence for the antecedents or variables that may affect audit quality evidence due to the COVID-19 pandemic.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41311103","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-09DOI: 10.1108/jaee-03-2023-0072
Emmerson Chininga, A. Alhassan, B. Zeka
PurposeThis paper examines the effect of ESG ratings and its dimensions (environmental, social and governance) on the financial performance of JSE-listed firms included in FTSE/JSE Responsible Investment Index.Design/methodology/approachThe paper employs panel data covering 40 JSE-listed firms included in FTSE/JSE Responsible Investment Index between 2015 and 2019. The paper employs the two-stage least squares (2SLS) instrumental variable regression technique to estimate the effect of ESG ratings and its dimensions (environmental, social and governance) on both accounting- and market-based performance indicators.FindingsThe results of the two-stage least squares instrumental estimation analysis reveal that investment in ESG initiatives improves both accounting- and market-based indicators of financial performance. Of the ESG pillars, the paper finds environmental initiatives improves firms' financial bottom line and market performance, while a firm's social and governance practices are observed to have no effect on a firm's accounting and market performance measures.Practical implicationsThe insights from this study proffers policy implications for firms' management, investors and regulatory authorities.Originality/valueAs far as the authors are concerned, this paper presents the first empirical analysis on the contribution of ESG ratings on financial performance in South Africa.
{"title":"ESG ratings and corporate financial performance in South Africa","authors":"Emmerson Chininga, A. Alhassan, B. Zeka","doi":"10.1108/jaee-03-2023-0072","DOIUrl":"https://doi.org/10.1108/jaee-03-2023-0072","url":null,"abstract":"PurposeThis paper examines the effect of ESG ratings and its dimensions (environmental, social and governance) on the financial performance of JSE-listed firms included in FTSE/JSE Responsible Investment Index.Design/methodology/approachThe paper employs panel data covering 40 JSE-listed firms included in FTSE/JSE Responsible Investment Index between 2015 and 2019. The paper employs the two-stage least squares (2SLS) instrumental variable regression technique to estimate the effect of ESG ratings and its dimensions (environmental, social and governance) on both accounting- and market-based performance indicators.FindingsThe results of the two-stage least squares instrumental estimation analysis reveal that investment in ESG initiatives improves both accounting- and market-based indicators of financial performance. Of the ESG pillars, the paper finds environmental initiatives improves firms' financial bottom line and market performance, while a firm's social and governance practices are observed to have no effect on a firm's accounting and market performance measures.Practical implicationsThe insights from this study proffers policy implications for firms' management, investors and regulatory authorities.Originality/valueAs far as the authors are concerned, this paper presents the first empirical analysis on the contribution of ESG ratings on financial performance in South Africa.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42966804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-01DOI: 10.1108/jaee-01-2022-0008
Albert Ochien’g Abang’a, V. Tauringana
PurposeTo investigate the impact of board characteristics (board gender diversity, board chair age, board subcommittees, board meetings, board skill, board size and board independence) on corporate social responsibility disclosures (CSRD) of state-owned enterprises (SOEs) in Kenya during the period 2015–2018.Design/methodology/approachThe study employed fixed-effects balanced panel data to examine the impact of board characteristics on CSRD. The analysis is repeated using two regression estimators (robust least square and random effects) and the four CSRD subcomponents to evaluate the robustness of the main analysis.FindingsThe results established that board gender diversity, board chair age and board subcommittees had significant negative effects on CSRD. The impact of the remaining board characteristics was found to be insignificant.Research limitations/implicationsThe study was limited to the disclosures included in the annual reports, which means that information disclosed in other media, like websites, was not considered. The second limitation concerns mediating and moderator variables that were not considered.Practical implicationsThere is a need for a stricter corporate governance implementation mechanism, as opposed to the “comply or explain” principle, since results suggest that most of the board characteristics do not appear to be impactful. Additionally, the low level of reported CSRD calls for the establishment of Corporate Social Responsibility or related committees.Social implicationsThe evidence suggests that SOEs are reluctant to report on issues such as ethics, health and safety initiatives, environment and social investments.Originality/valueThe paper extends the literature on the impact of board characteristics on CSRD in unlisted non-commercial SOEs in a developing country context.
{"title":"The impact of board characteristics on corporate social responsibility disclosures: evidence from state-owned enterprises in Kenya","authors":"Albert Ochien’g Abang’a, V. Tauringana","doi":"10.1108/jaee-01-2022-0008","DOIUrl":"https://doi.org/10.1108/jaee-01-2022-0008","url":null,"abstract":"PurposeTo investigate the impact of board characteristics (board gender diversity, board chair age, board subcommittees, board meetings, board skill, board size and board independence) on corporate social responsibility disclosures (CSRD) of state-owned enterprises (SOEs) in Kenya during the period 2015–2018.Design/methodology/approachThe study employed fixed-effects balanced panel data to examine the impact of board characteristics on CSRD. The analysis is repeated using two regression estimators (robust least square and random effects) and the four CSRD subcomponents to evaluate the robustness of the main analysis.FindingsThe results established that board gender diversity, board chair age and board subcommittees had significant negative effects on CSRD. The impact of the remaining board characteristics was found to be insignificant.Research limitations/implicationsThe study was limited to the disclosures included in the annual reports, which means that information disclosed in other media, like websites, was not considered. The second limitation concerns mediating and moderator variables that were not considered.Practical implicationsThere is a need for a stricter corporate governance implementation mechanism, as opposed to the “comply or explain” principle, since results suggest that most of the board characteristics do not appear to be impactful. Additionally, the low level of reported CSRD calls for the establishment of Corporate Social Responsibility or related committees.Social implicationsThe evidence suggests that SOEs are reluctant to report on issues such as ethics, health and safety initiatives, environment and social investments.Originality/valueThe paper extends the literature on the impact of board characteristics on CSRD in unlisted non-commercial SOEs in a developing country context.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42774124","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-01DOI: 10.1108/jaee-06-2022-0158
I. Harymawan, Damara Ardelia Kusuma Wardani, J. Nowland
PurposeThis study investigates the relationship between companies with military directors and audit fees in Indonesia.Design/methodology/approachUsing upper echelon and audit pricing theories, the authors examine military directors' roles in the demand for and supply of auditing services. The authors use Indonesia as their research setting as their military forces have a long history of involvement in business. The study sample includes 898 firm-year observations on the Indonesia Stock Exchange during 2014–2018.FindingsThe authors find a negative relationship between military connections and audit fees. This is consistent with auditors assessing lower audit risk and charging lower audit fees to companies that have leaders with military experience. The study findings are strongest where there is military experience on the board of directors and where the military experience is from the Army.Originality/valueThis study extends the literature on the benefits of military experience in company leadership, especially in the context of auditing research. The study findings also have implications for the selection of board candidates and auditor risk assessments.
{"title":"Military directors and audit fees","authors":"I. Harymawan, Damara Ardelia Kusuma Wardani, J. Nowland","doi":"10.1108/jaee-06-2022-0158","DOIUrl":"https://doi.org/10.1108/jaee-06-2022-0158","url":null,"abstract":"PurposeThis study investigates the relationship between companies with military directors and audit fees in Indonesia.Design/methodology/approachUsing upper echelon and audit pricing theories, the authors examine military directors' roles in the demand for and supply of auditing services. The authors use Indonesia as their research setting as their military forces have a long history of involvement in business. The study sample includes 898 firm-year observations on the Indonesia Stock Exchange during 2014–2018.FindingsThe authors find a negative relationship between military connections and audit fees. This is consistent with auditors assessing lower audit risk and charging lower audit fees to companies that have leaders with military experience. The study findings are strongest where there is military experience on the board of directors and where the military experience is from the Army.Originality/valueThis study extends the literature on the benefits of military experience in company leadership, especially in the context of auditing research. The study findings also have implications for the selection of board candidates and auditor risk assessments.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"62056197","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-14DOI: 10.1108/jaee-09-2022-0277
Dorcus Kalembe, T. Kaawaase, S. K. Nkundabanyanga, I. Kayongo
PurposeThe purpose of this study is to establish the relationship between chief executive officer (CEO) power, audit committee effectiveness and earnings quality in regulated firms in Uganda.Design/methodology/approachThe authors employed cross-sectional and correlational research designs, based on a sample of 136 regulated firms in Uganda. Data were collected using a questionnaire survey from Chief Finance Officers and Chief Audit Executives. Data were analyzed using a Statistical Package for Social Sciences and Partial Least Squares Structural Equation Modeling.FindingsResults indicate that CEO power causes negative variances in earnings quality. The results also reveal that audit committee effectiveness positively relates relatively similarly with earnings quality. In addition, CEO power and audit committee effectiveness are negative and significantly related. The results further indicate that CEO power and earnings quality are mediated by audit committee effectiveness.Research limitations/implicationsCEO power creates an opaque accounting environment which may leave the stakeholders unable to evaluate the true economic reality of the firm. Audit committee effectiveness is an important enabler for reporting high-quality earnings even in the presence of a powerful CEO.Originality/valueThis study contributes toward a methodological stance of using perceptions to understand earnings quality in regulated firms in Uganda. This is probably the first study that has specifically explored earnings quality using only the fundamental qualitative characteristics of accounting information (as proxies) as enshrined in the Conceptual Framework for Financial Reporting 2018 particularly in Uganda since Her adoption of International Financial Reporting Standards in 1998. Second, the indirect effect of audit committee effectiveness and CEO power is tested.
{"title":"CEO power, audit committee effectiveness and earnings quality","authors":"Dorcus Kalembe, T. Kaawaase, S. K. Nkundabanyanga, I. Kayongo","doi":"10.1108/jaee-09-2022-0277","DOIUrl":"https://doi.org/10.1108/jaee-09-2022-0277","url":null,"abstract":"PurposeThe purpose of this study is to establish the relationship between chief executive officer (CEO) power, audit committee effectiveness and earnings quality in regulated firms in Uganda.Design/methodology/approachThe authors employed cross-sectional and correlational research designs, based on a sample of 136 regulated firms in Uganda. Data were collected using a questionnaire survey from Chief Finance Officers and Chief Audit Executives. Data were analyzed using a Statistical Package for Social Sciences and Partial Least Squares Structural Equation Modeling.FindingsResults indicate that CEO power causes negative variances in earnings quality. The results also reveal that audit committee effectiveness positively relates relatively similarly with earnings quality. In addition, CEO power and audit committee effectiveness are negative and significantly related. The results further indicate that CEO power and earnings quality are mediated by audit committee effectiveness.Research limitations/implicationsCEO power creates an opaque accounting environment which may leave the stakeholders unable to evaluate the true economic reality of the firm. Audit committee effectiveness is an important enabler for reporting high-quality earnings even in the presence of a powerful CEO.Originality/valueThis study contributes toward a methodological stance of using perceptions to understand earnings quality in regulated firms in Uganda. This is probably the first study that has specifically explored earnings quality using only the fundamental qualitative characteristics of accounting information (as proxies) as enshrined in the Conceptual Framework for Financial Reporting 2018 particularly in Uganda since Her adoption of International Financial Reporting Standards in 1998. Second, the indirect effect of audit committee effectiveness and CEO power is tested.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41970983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-12DOI: 10.1108/jaee-05-2021-0152
G. Amos
PurposeThe study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their social and environmental reporting (SER) from 2006 to 2014. To achieve this aim, the author limits the data two years before (i.e. from 2006 to 2007) and six years after (i.e. from 2009 to 2014) the implementation of the Sustainable Development Framework in the mining sector in 2008.Design/methodology/approachUsing the techniques of content analysis and interpretive textual analysis, this study examines 27 social and environmental responsibility reports published between 2006 and 2014 by three ICMM corporate mining members. The study develops a disclosure index based on the earlier work of Hackston and Milne (1996), together with other disclosure items suggested in the extant literature and considered appropriate for this work. The disclosure index for this study comprised six disclosure categories (“employee”, “environment”, “community involvement”, “energy”, “governance” and “general”). In each of the six disclosure categories, only 10 disclosure items were chosen and that results in 60 disclosure items.FindingsA total of 830 out of a maximum of 1,620 social and environmental responsibility indicators, representing 51% (168 employees, 151 environmental, 145 community involvement, 128 energy, 127 governance and 111 general) were identified and examined in company SER. The study showed that the sample companies relied on multiple strategies for managing pragmatic legitimacy and moral legitimacy via disclosures. Such practices raise questions regarding company-specific disclosure policies and their possible links to the quality/quantity of their disclosures. The findings suggest that managers of mining companies may opt for “cherry-picking” and/or capitalise on events for reporting purposes as well as refocus on company-specific issues of priority in their disclosures. While such practices may appear appropriate and/or timely to meet stakeholders’ needs and interests, they may work against the development of comprehensive reports due to the multiple strategies adopted to manage pragmatic and moral legitimacy.Research limitations/implicationsA limitation of this research is that the author relied on self-reported corporate disclosures, as opposed to verifying the activities associated with the claims by the sample mining companies.Practical implicationsThe findings from this research will help future social and environmental accounting researchers to operationalise Suchman’s typology of legitimacy in other contexts.Social implicationsWith growing large-scale mining activity, potential social and environmental footprints are obviously far from being socially acceptable. Powerful and legitimacy-conferring stakeholders are likely to disapprove such mining activity and reconsider their support, which may threaten the survival of the mining company and also create a legiti
{"title":"Corporate social and environmental reporting in the mining sector: seeking pragmatic and moral forms of legitimacy?","authors":"G. Amos","doi":"10.1108/jaee-05-2021-0152","DOIUrl":"https://doi.org/10.1108/jaee-05-2021-0152","url":null,"abstract":"PurposeThe study examines the social and environmental responsibility indicators disclosed by three International Council on Mining and Metals (ICMM) corporate mining members in their social and environmental reporting (SER) from 2006 to 2014. To achieve this aim, the author limits the data two years before (i.e. from 2006 to 2007) and six years after (i.e. from 2009 to 2014) the implementation of the Sustainable Development Framework in the mining sector in 2008.Design/methodology/approachUsing the techniques of content analysis and interpretive textual analysis, this study examines 27 social and environmental responsibility reports published between 2006 and 2014 by three ICMM corporate mining members. The study develops a disclosure index based on the earlier work of Hackston and Milne (1996), together with other disclosure items suggested in the extant literature and considered appropriate for this work. The disclosure index for this study comprised six disclosure categories (“employee”, “environment”, “community involvement”, “energy”, “governance” and “general”). In each of the six disclosure categories, only 10 disclosure items were chosen and that results in 60 disclosure items.FindingsA total of 830 out of a maximum of 1,620 social and environmental responsibility indicators, representing 51% (168 employees, 151 environmental, 145 community involvement, 128 energy, 127 governance and 111 general) were identified and examined in company SER. The study showed that the sample companies relied on multiple strategies for managing pragmatic legitimacy and moral legitimacy via disclosures. Such practices raise questions regarding company-specific disclosure policies and their possible links to the quality/quantity of their disclosures. The findings suggest that managers of mining companies may opt for “cherry-picking” and/or capitalise on events for reporting purposes as well as refocus on company-specific issues of priority in their disclosures. While such practices may appear appropriate and/or timely to meet stakeholders’ needs and interests, they may work against the development of comprehensive reports due to the multiple strategies adopted to manage pragmatic and moral legitimacy.Research limitations/implicationsA limitation of this research is that the author relied on self-reported corporate disclosures, as opposed to verifying the activities associated with the claims by the sample mining companies.Practical implicationsThe findings from this research will help future social and environmental accounting researchers to operationalise Suchman’s typology of legitimacy in other contexts.Social implicationsWith growing large-scale mining activity, potential social and environmental footprints are obviously far from being socially acceptable. Powerful and legitimacy-conferring stakeholders are likely to disapprove such mining activity and reconsider their support, which may threaten the survival of the mining company and also create a legiti","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49576838","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-11DOI: 10.1108/jaee-07-2021-0242
L. A. Tetteh, R. Krah, T. Ayamga, Leticia Apieleg Ayarna-Gagakuma, kwasi Offei-Kwafo, Vivian Aku Gbade
PurposeThe study investigates the experiences of undergraduate students in using online learning platforms to study Accounting-related courses during the COVID-19 pandemic.Design/methodology/approachThe study uses qualitative research approach and 89 undergraduate Accounting students from University of Professional Studies, Accra (UPSA) were purposively interviewed using semi-structured interview guide, observation and documentary evidence to achieve triangulation of data and results.FindingsThe study discovers that due to the Covid pandemic, the online Accounting learning system has a relative advantage over the physical classroom learning as the online pedagogy ensures that the students are safe and do not contract the virus. The findings further indicate that the university's engagement framework includes three units: engaging students with content on the university's Learning Management System (LMS), engaging students with their peers via group course WhatsApp platform and Zoom/Google Meet lectures, and engaging students with their instructors via the LMS, Zoom/Google Meet, and Group WhatsApp. Each unit is based on research-based best practices and strategies for online education such as the use of media (videos) to augment written course content and to improve student-to-content engagement, positive cognitive, collaborative, behavioural and emotional engagement of students. The university's strategies also encourage student-to-student involvement, as well as assessment and feedback. Regarding behavioural and emotional engagements, the study discovered that some lecturers' attitudes toward students coupled with insufficient administrative support influenced students to develop negative reactions to the use of online learning platforms for Accounting education.Practical implicationsThis paper has the potential to inform and improve implementation of online Accounting education in developing countries where the digital divide is staggering and digital inclusion and infrastructure for online education are at a precarious stage that cannot be remedied overnight.Social implicationsThe new context of Accounting education enables an increase in student enrolment because it does not require students to travel to or stay in a hostel for an extended period of time in order to earn an Accounting degree.Originality/valueThis study contributes to the Accounting education literature on emerging economies by providing new evidence of perception differences between higher education institutions and students. Education providers in emerging economies frequently adopt Western modes of online education without making structural adjustments. By empirically exploring students' opinions, this study challenges these managerial perceptions, and the findings will assist regulators and policymakers in making appropriate changes.
{"title":"Covid-19 pandemic and online accounting education: the experience of undergraduate accounting students in an emerging economy","authors":"L. A. Tetteh, R. Krah, T. Ayamga, Leticia Apieleg Ayarna-Gagakuma, kwasi Offei-Kwafo, Vivian Aku Gbade","doi":"10.1108/jaee-07-2021-0242","DOIUrl":"https://doi.org/10.1108/jaee-07-2021-0242","url":null,"abstract":"PurposeThe study investigates the experiences of undergraduate students in using online learning platforms to study Accounting-related courses during the COVID-19 pandemic.Design/methodology/approachThe study uses qualitative research approach and 89 undergraduate Accounting students from University of Professional Studies, Accra (UPSA) were purposively interviewed using semi-structured interview guide, observation and documentary evidence to achieve triangulation of data and results.FindingsThe study discovers that due to the Covid pandemic, the online Accounting learning system has a relative advantage over the physical classroom learning as the online pedagogy ensures that the students are safe and do not contract the virus. The findings further indicate that the university's engagement framework includes three units: engaging students with content on the university's Learning Management System (LMS), engaging students with their peers via group course WhatsApp platform and Zoom/Google Meet lectures, and engaging students with their instructors via the LMS, Zoom/Google Meet, and Group WhatsApp. Each unit is based on research-based best practices and strategies for online education such as the use of media (videos) to augment written course content and to improve student-to-content engagement, positive cognitive, collaborative, behavioural and emotional engagement of students. The university's strategies also encourage student-to-student involvement, as well as assessment and feedback. Regarding behavioural and emotional engagements, the study discovered that some lecturers' attitudes toward students coupled with insufficient administrative support influenced students to develop negative reactions to the use of online learning platforms for Accounting education.Practical implicationsThis paper has the potential to inform and improve implementation of online Accounting education in developing countries where the digital divide is staggering and digital inclusion and infrastructure for online education are at a precarious stage that cannot be remedied overnight.Social implicationsThe new context of Accounting education enables an increase in student enrolment because it does not require students to travel to or stay in a hostel for an extended period of time in order to earn an Accounting degree.Originality/valueThis study contributes to the Accounting education literature on emerging economies by providing new evidence of perception differences between higher education institutions and students. Education providers in emerging economies frequently adopt Western modes of online education without making structural adjustments. By empirically exploring students' opinions, this study challenges these managerial perceptions, and the findings will assist regulators and policymakers in making appropriate changes.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2023-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45306876","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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