Purpose The purpose of this study is to examine the moderating effect of an exogenous corporate governance shock that curbs Chief Executive Officers’ (CEOs) power on the relationship between CEO narcissism and earnings management practices. Design/methodology/approach The authors performed a quasi-experiment using a differences-in-differences approach to examine Brazil’s duality split regulatory change on 101 Brazilian public firms during the period 2010–2022. Findings The main findings indicate that the introduction of duality split curtails the positive influence of CEO narcissism on earnings management, suggesting that this corporate governance regulation may act as a complementary corporate governance mechanism in mitigating the negative consequences of powerful narcissistic CEOs. Further robustness checks indicate that the results remain consistent after using entropy balancing and alternative measures of CEO narcissism. Practical implications In emerging markets, where governance systems are frequently perceived as less than optimal, policymakers and regulatory authorities can draw insights from this enforcement to shape governance systems, reducing CEO power and, consequently, improving the quality of financial reporting. Originality/value To the best of the authors’ knowledge, this is the first study to examine whether a duality split mitigates the influence of CEO narcissism on earnings management. Thus, this study contributes to the corporate governance literature that calls for research on the effectiveness of external corporate governance mechanisms in emerging markets as well as the CEO narcissism literature that calls for research on moderating factors that could curtail negative consequences of narcissistic CEO behavior.
设计/方法/方法作者采用差分法进行了一项准实验，研究了巴西在 2010-2022 年期间对 101 家巴西上市公司实行的二元分割监管变革。研究结果主要研究结果表明，二元分割的引入抑制了首席执行官自恋对收益管理的积极影响，这表明这一公司治理法规可以作为公司治理的补充机制，减轻强大的自恋型首席执行官带来的负面影响。进一步的稳健性检验表明，在使用熵平衡和其他 CEO 自恋度量方法后，结果仍然保持一致。实用意义在新兴市场，治理体系经常被认为不尽如人意，政策制定者和监管当局可以从这一执行中汲取灵感，塑造治理体系，减少 CEO 权力，从而提高财务报告质量。因此，本研究对公司治理文献和首席执行官自恋文献都有所贡献，前者呼吁研究新兴市场外部公司治理机制的有效性，后者呼吁研究可减轻首席执行官自恋行为负面影响的调节因素。
{"title":"The moderating role of duality split on the relationship between CEO narcissism and earnings management","authors":"Yuri Gomes Paiva Azevedo, Mariana Câmara Gomes e Silva, Silvio Hiroshi Nakao","doi":"10.1108/cg-06-2023-0229","DOIUrl":"https://doi.org/10.1108/cg-06-2023-0229","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to examine the moderating effect of an exogenous corporate governance shock that curbs Chief Executive Officers’ (CEOs) power on the relationship between CEO narcissism and earnings management practices.\u0000\u0000\u0000Design/methodology/approach\u0000The authors performed a quasi-experiment using a differences-in-differences approach to examine Brazil’s duality split regulatory change on 101 Brazilian public firms during the period 2010–2022.\u0000\u0000\u0000Findings\u0000The main findings indicate that the introduction of duality split curtails the positive influence of CEO narcissism on earnings management, suggesting that this corporate governance regulation may act as a complementary corporate governance mechanism in mitigating the negative consequences of powerful narcissistic CEOs. Further robustness checks indicate that the results remain consistent after using entropy balancing and alternative measures of CEO narcissism.\u0000\u0000\u0000Practical implications\u0000In emerging markets, where governance systems are frequently perceived as less than optimal, policymakers and regulatory authorities can draw insights from this enforcement to shape governance systems, reducing CEO power and, consequently, improving the quality of financial reporting.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study to examine whether a duality split mitigates the influence of CEO narcissism on earnings management. Thus, this study contributes to the corporate governance literature that calls for research on the effectiveness of external corporate governance mechanisms in emerging markets as well as the CEO narcissism literature that calls for research on moderating factors that could curtail negative consequences of narcissistic CEO behavior.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"4 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139795559","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}
Purpose The purpose of this study is to examine the moderating effect of an exogenous corporate governance shock that curbs Chief Executive Officers’ (CEOs) power on the relationship between CEO narcissism and earnings management practices. Design/methodology/approach The authors performed a quasi-experiment using a differences-in-differences approach to examine Brazil’s duality split regulatory change on 101 Brazilian public firms during the period 2010–2022. Findings The main findings indicate that the introduction of duality split curtails the positive influence of CEO narcissism on earnings management, suggesting that this corporate governance regulation may act as a complementary corporate governance mechanism in mitigating the negative consequences of powerful narcissistic CEOs. Further robustness checks indicate that the results remain consistent after using entropy balancing and alternative measures of CEO narcissism. Practical implications In emerging markets, where governance systems are frequently perceived as less than optimal, policymakers and regulatory authorities can draw insights from this enforcement to shape governance systems, reducing CEO power and, consequently, improving the quality of financial reporting. Originality/value To the best of the authors’ knowledge, this is the first study to examine whether a duality split mitigates the influence of CEO narcissism on earnings management. Thus, this study contributes to the corporate governance literature that calls for research on the effectiveness of external corporate governance mechanisms in emerging markets as well as the CEO narcissism literature that calls for research on moderating factors that could curtail negative consequences of narcissistic CEO behavior.
设计/方法/方法作者采用差分法进行了一项准实验，研究了巴西在 2010-2022 年期间对 101 家巴西上市公司实行的二元分割监管变革。研究结果主要研究结果表明，二元分割的引入抑制了首席执行官自恋对收益管理的积极影响，这表明这一公司治理法规可以作为公司治理的补充机制，减轻强大的自恋型首席执行官带来的负面影响。进一步的稳健性检验表明，在使用熵平衡和其他 CEO 自恋度量方法后，结果仍然保持一致。实用意义在新兴市场，治理体系经常被认为不尽如人意，政策制定者和监管当局可以从这一执行中汲取灵感，塑造治理体系，减少 CEO 权力，从而提高财务报告质量。因此，本研究对公司治理文献和首席执行官自恋文献都有所贡献，前者呼吁研究新兴市场外部公司治理机制的有效性，后者呼吁研究可减轻首席执行官自恋行为负面影响的调节因素。
{"title":"The moderating role of duality split on the relationship between CEO narcissism and earnings management","authors":"Yuri Gomes Paiva Azevedo, Mariana Câmara Gomes e Silva, Silvio Hiroshi Nakao","doi":"10.1108/cg-06-2023-0229","DOIUrl":"https://doi.org/10.1108/cg-06-2023-0229","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to examine the moderating effect of an exogenous corporate governance shock that curbs Chief Executive Officers’ (CEOs) power on the relationship between CEO narcissism and earnings management practices.\u0000\u0000\u0000Design/methodology/approach\u0000The authors performed a quasi-experiment using a differences-in-differences approach to examine Brazil’s duality split regulatory change on 101 Brazilian public firms during the period 2010–2022.\u0000\u0000\u0000Findings\u0000The main findings indicate that the introduction of duality split curtails the positive influence of CEO narcissism on earnings management, suggesting that this corporate governance regulation may act as a complementary corporate governance mechanism in mitigating the negative consequences of powerful narcissistic CEOs. Further robustness checks indicate that the results remain consistent after using entropy balancing and alternative measures of CEO narcissism.\u0000\u0000\u0000Practical implications\u0000In emerging markets, where governance systems are frequently perceived as less than optimal, policymakers and regulatory authorities can draw insights from this enforcement to shape governance systems, reducing CEO power and, consequently, improving the quality of financial reporting.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study to examine whether a duality split mitigates the influence of CEO narcissism on earnings management. Thus, this study contributes to the corporate governance literature that calls for research on the effectiveness of external corporate governance mechanisms in emerging markets as well as the CEO narcissism literature that calls for research on moderating factors that could curtail negative consequences of narcissistic CEO behavior.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"6 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139855587","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}
Purpose This paper aims to appraise the effectiveness of gender quotas in breaking the glass ceiling for women on boards (WoBs) in companies that are legally obliged to comply with quotas (listed companies and state-owned companies, LP) and in those that are not (unlisted companies and nonstate-owned companies, NLNP). Furthermore, it investigates the glass cliff phenomenon, according to which women are more likely to be appointed to apical positions in underperforming companies. Design/methodology/approach A balanced panel data of the top 116 Italian companies by total assets, which are present in both 2010 and 2017, is used for estimating ANOVA tests across sectors and fixed-effects panel regression models. Findings WoBs significantly increased in both the LP and the NLNP companies, and this increase was greater in the financial sector. Furthermore, the relationship between the percentage of WoBs and firm performance is not linear but depends on the financial corporate health. Specifically, the situation in which a woman ascends to a leadership position in challenging circumstances where the risk of failure is high (glass cliff phenomenon) is only present in companies with the lowest performance in the sample, in other words, when negative values of Roe and negative or zero values of Roa occur together. Practical implications These findings have relevant policy implications that encourage the adoption of gender quotas even in specific top positions, such as CEO or president, as this could lead to a “double spillover effect” both vertically, that is, in other job positions, and horizontally, toward other companies not targeted by quotas. Practical interventions to support women in glass cliff positions, on the other hand, relate to the extent of supervisor mentoring and support to prevent women from leaving director roles and strengthen their chances for career advancement. Originality/value The authors explore the ability of gender quotas to break through the glass ceiling in companies that are not legally obliged to do so, and to the best of the authors’ knowledge, for the first time, the glass cliff phenomenon in the Italian context.
{"title":"Do women on boards break the glass ceiling or face the glass cliff?","authors":"E. Poma, Barbara Pistoresi","doi":"10.1108/cg-12-2022-0504","DOIUrl":"https://doi.org/10.1108/cg-12-2022-0504","url":null,"abstract":"\u0000Purpose\u0000This paper aims to appraise the effectiveness of gender quotas in breaking the glass ceiling for women on boards (WoBs) in companies that are legally obliged to comply with quotas (listed companies and state-owned companies, LP) and in those that are not (unlisted companies and nonstate-owned companies, NLNP). Furthermore, it investigates the glass cliff phenomenon, according to which women are more likely to be appointed to apical positions in underperforming companies.\u0000\u0000\u0000Design/methodology/approach\u0000A balanced panel data of the top 116 Italian companies by total assets, which are present in both 2010 and 2017, is used for estimating ANOVA tests across sectors and fixed-effects panel regression models.\u0000\u0000\u0000Findings\u0000WoBs significantly increased in both the LP and the NLNP companies, and this increase was greater in the financial sector. Furthermore, the relationship between the percentage of WoBs and firm performance is not linear but depends on the financial corporate health. Specifically, the situation in which a woman ascends to a leadership position in challenging circumstances where the risk of failure is high (glass cliff phenomenon) is only present in companies with the lowest performance in the sample, in other words, when negative values of Roe and negative or zero values of Roa occur together.\u0000\u0000\u0000Practical implications\u0000These findings have relevant policy implications that encourage the adoption of gender quotas even in specific top positions, such as CEO or president, as this could lead to a “double spillover effect” both vertically, that is, in other job positions, and horizontally, toward other companies not targeted by quotas. Practical interventions to support women in glass cliff positions, on the other hand, relate to the extent of supervisor mentoring and support to prevent women from leaving director roles and strengthen their chances for career advancement.\u0000\u0000\u0000Originality/value\u0000The authors explore the ability of gender quotas to break through the glass ceiling in companies that are not legally obliged to do so, and to the best of the authors’ knowledge, for the first time, the glass cliff phenomenon in the Italian context.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"5 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139802495","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}
H. Mukhibad, Doddy Setiawan, Y. Aryani, Falikhatun Falikhatun
Purpose This study aims to investigate the effect of the diversity of the board of directors (BOD) and the shariah supervisory board (SSB) on credit risk, insolvency, operations, reputation, rate of deposit return risk (RDRR) and equity-based financing risk (EBFR) of Islamic banks (IB). Design/methodology/approach The study uses 68 IBs from 19 countries covering 2009 to 2019. BOD and SSB diversity attributes data were hand-collected from the annual reports. Financial data were collected from the bankscope database. The robustness test and two-step system generalized method of moment estimation technique were used to address potential endogeneity issues. Findings This study provides evidence that diversity in the experience and cross-membership of board members decreases the risk. Gender diversity increases the risk, but the BOD’s education level diversity has no relationship with risk. More interestingly, influences in the experience and cross-membership of the SSB’s members positively influence risk. However, members’ education levels and gender diversity have not been proven to affect risk. Practical implications The paper recommends that Islamic banking authorities play a stronger role and make a greater effort in driving corporate governance reform. Also, determining individual characteristics of the board is a requirement to become a member of a BOD or an SSB. Originality/value This paper expands the commitment literature through the diversity of the BOD’s and the SSB’s members in terms of their education levels, experience, cross-membership and gender. This study expands the list of potential risks for IBs, by including the RDRR and EBFR.
{"title":"Corporate governance and Islamic bank risk – do the directors’ and the Shariah board’s diversity attributes matter?","authors":"H. Mukhibad, Doddy Setiawan, Y. Aryani, Falikhatun Falikhatun","doi":"10.1108/cg-08-2022-0348","DOIUrl":"https://doi.org/10.1108/cg-08-2022-0348","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the effect of the diversity of the board of directors (BOD) and the shariah supervisory board (SSB) on credit risk, insolvency, operations, reputation, rate of deposit return risk (RDRR) and equity-based financing risk (EBFR) of Islamic banks (IB).\u0000\u0000\u0000Design/methodology/approach\u0000The study uses 68 IBs from 19 countries covering 2009 to 2019. BOD and SSB diversity attributes data were hand-collected from the annual reports. Financial data were collected from the bankscope database. The robustness test and two-step system generalized method of moment estimation technique were used to address potential endogeneity issues.\u0000\u0000\u0000Findings\u0000This study provides evidence that diversity in the experience and cross-membership of board members decreases the risk. Gender diversity increases the risk, but the BOD’s education level diversity has no relationship with risk. More interestingly, influences in the experience and cross-membership of the SSB’s members positively influence risk. However, members’ education levels and gender diversity have not been proven to affect risk.\u0000\u0000\u0000Practical implications\u0000The paper recommends that Islamic banking authorities play a stronger role and make a greater effort in driving corporate governance reform. Also, determining individual characteristics of the board is a requirement to become a member of a BOD or an SSB.\u0000\u0000\u0000Originality/value\u0000This paper expands the commitment literature through the diversity of the BOD’s and the SSB’s members in terms of their education levels, experience, cross-membership and gender. This study expands the list of potential risks for IBs, by including the RDRR and EBFR.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"43 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139683146","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}
Purpose This paper aims to appraise the effectiveness of gender quotas in breaking the glass ceiling for women on boards (WoBs) in companies that are legally obliged to comply with quotas (listed companies and state-owned companies, LP) and in those that are not (unlisted companies and nonstate-owned companies, NLNP). Furthermore, it investigates the glass cliff phenomenon, according to which women are more likely to be appointed to apical positions in underperforming companies. Design/methodology/approach A balanced panel data of the top 116 Italian companies by total assets, which are present in both 2010 and 2017, is used for estimating ANOVA tests across sectors and fixed-effects panel regression models. Findings WoBs significantly increased in both the LP and the NLNP companies, and this increase was greater in the financial sector. Furthermore, the relationship between the percentage of WoBs and firm performance is not linear but depends on the financial corporate health. Specifically, the situation in which a woman ascends to a leadership position in challenging circumstances where the risk of failure is high (glass cliff phenomenon) is only present in companies with the lowest performance in the sample, in other words, when negative values of Roe and negative or zero values of Roa occur together. Practical implications These findings have relevant policy implications that encourage the adoption of gender quotas even in specific top positions, such as CEO or president, as this could lead to a “double spillover effect” both vertically, that is, in other job positions, and horizontally, toward other companies not targeted by quotas. Practical interventions to support women in glass cliff positions, on the other hand, relate to the extent of supervisor mentoring and support to prevent women from leaving director roles and strengthen their chances for career advancement. Originality/value The authors explore the ability of gender quotas to break through the glass ceiling in companies that are not legally obliged to do so, and to the best of the authors’ knowledge, for the first time, the glass cliff phenomenon in the Italian context.
{"title":"Do women on boards break the glass ceiling or face the glass cliff?","authors":"E. Poma, Barbara Pistoresi","doi":"10.1108/cg-12-2022-0504","DOIUrl":"https://doi.org/10.1108/cg-12-2022-0504","url":null,"abstract":"\u0000Purpose\u0000This paper aims to appraise the effectiveness of gender quotas in breaking the glass ceiling for women on boards (WoBs) in companies that are legally obliged to comply with quotas (listed companies and state-owned companies, LP) and in those that are not (unlisted companies and nonstate-owned companies, NLNP). Furthermore, it investigates the glass cliff phenomenon, according to which women are more likely to be appointed to apical positions in underperforming companies.\u0000\u0000\u0000Design/methodology/approach\u0000A balanced panel data of the top 116 Italian companies by total assets, which are present in both 2010 and 2017, is used for estimating ANOVA tests across sectors and fixed-effects panel regression models.\u0000\u0000\u0000Findings\u0000WoBs significantly increased in both the LP and the NLNP companies, and this increase was greater in the financial sector. Furthermore, the relationship between the percentage of WoBs and firm performance is not linear but depends on the financial corporate health. Specifically, the situation in which a woman ascends to a leadership position in challenging circumstances where the risk of failure is high (glass cliff phenomenon) is only present in companies with the lowest performance in the sample, in other words, when negative values of Roe and negative or zero values of Roa occur together.\u0000\u0000\u0000Practical implications\u0000These findings have relevant policy implications that encourage the adoption of gender quotas even in specific top positions, such as CEO or president, as this could lead to a “double spillover effect” both vertically, that is, in other job positions, and horizontally, toward other companies not targeted by quotas. Practical interventions to support women in glass cliff positions, on the other hand, relate to the extent of supervisor mentoring and support to prevent women from leaving director roles and strengthen their chances for career advancement.\u0000\u0000\u0000Originality/value\u0000The authors explore the ability of gender quotas to break through the glass ceiling in companies that are not legally obliged to do so, and to the best of the authors’ knowledge, for the first time, the glass cliff phenomenon in the Italian context.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"225 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139862495","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}
Purpose The literature on the influence of audit committees (AC) and cosmetic accounting (CA) is scarce. AC plays a unique and vital role in boosting earnings reliability in countries with weaker application of accounting standards or weaker legal protection for investors. AC, therefore, are considered to be one of the essential tools available to directors in supervising management decisions regarding financial reporting. This paper aims to examine the influence of AC characteristics (ACC) on CA and how this relationship is moderated by the audit fee. Design/methodology/approach This study used probit regression to analyze 1,218 firm-year observations of listed companies in Tehran Stock Exchange from 2014 to 2020. Findings The results show that AC financial accounting expertise, AC independence, female AC membership and AC tenure were negatively related to CA. The negative relationship is highly pronounced when a firm incurs higher audit fees, and audit fees moderate the relationship between ACC and CA. Results for the robustness checks show that only AC independence was significant, and the results of other characteristics were not significant. Research limitations/implications This research was conducted in an Iranian setting where the formation of ACs is on the verge of regulation; therefore, the data used for the study only contains the seven-year period of ACs’ statutory activity. In addition, a lack of consensus on the precise measures of an AC’s effectiveness could be considered as a restrictive factor. Originality/value The findings provide an initial insight into the effect AC on CA and moderating effect of audit fee on the relationship between ACC and CA.
目的 有关审计委员会（AC）和表面会计（CA）影响的文献很少。在会计准则应用较弱或对投资者的法律保护较弱的国家，审计委员会在提高盈利可靠性方面发挥着独特而重要的作用。因此，审计委员会被认为是董事监督管理层财务报告决策的重要工具之一。本文旨在研究审计委员会特征（ACC）对 CA 的影响，以及审计费用如何调节这种关系。研究采用 probit 回归法分析了德黑兰证券交易所上市公司 2014 年至 2020 年的 1218 个公司年度观测数据。当公司的审计费用较高时，负相关关系就会非常明显，而审计费用则会缓和审计委员会与 CA 之间的关系。稳健性检验结果显示，只有审计委员会的独立性是显著的，其他特征的结果并不显著。研究局限性/启示本研究是在伊朗的背景下进行的，在伊朗，审计委员会的成立正处于监管的边缘；因此，本研究使用的数据仅包含审计委员会法定活动的七年期。此外，对审计委员会有效性的精确衡量标准缺乏共识也是一个限制因素。
{"title":"Audit committee quality and cosmetic accounting: an examination in an emerging market","authors":"A. Daryaei, Afshin Balani, Yasin Fattahi","doi":"10.1108/cg-05-2023-0181","DOIUrl":"https://doi.org/10.1108/cg-05-2023-0181","url":null,"abstract":"\u0000Purpose\u0000The literature on the influence of audit committees (AC) and cosmetic accounting (CA) is scarce. AC plays a unique and vital role in boosting earnings reliability in countries with weaker application of accounting standards or weaker legal protection for investors. AC, therefore, are considered to be one of the essential tools available to directors in supervising management decisions regarding financial reporting. This paper aims to examine the influence of AC characteristics (ACC) on CA and how this relationship is moderated by the audit fee.\u0000\u0000\u0000Design/methodology/approach\u0000This study used probit regression to analyze 1,218 firm-year observations of listed companies in Tehran Stock Exchange from 2014 to 2020.\u0000\u0000\u0000Findings\u0000The results show that AC financial accounting expertise, AC independence, female AC membership and AC tenure were negatively related to CA. The negative relationship is highly pronounced when a firm incurs higher audit fees, and audit fees moderate the relationship between ACC and CA. Results for the robustness checks show that only AC independence was significant, and the results of other characteristics were not significant.\u0000\u0000\u0000Research limitations/implications\u0000This research was conducted in an Iranian setting where the formation of ACs is on the verge of regulation; therefore, the data used for the study only contains the seven-year period of ACs’ statutory activity. In addition, a lack of consensus on the precise measures of an AC’s effectiveness could be considered as a restrictive factor.\u0000\u0000\u0000Originality/value\u0000The findings provide an initial insight into the effect AC on CA and moderating effect of audit fee on the relationship between ACC and CA.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"8 29","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139591608","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}
Miguel Pina e Cunha, António Nogueira Leite, A. Rego, Remedios Hernández‐Linares
Purpose This paper aims to discuss the work of non-executive directors (NEDs) as inherently paradoxical. Paradox refers to the presence of persistent contradictions between interdependent forces. Those persistent tensions are explored, and approaches are indicated to stimulate the adaptive use of paradoxes as forces of innovation and renewal. Design/methodology/approach This conceptual approach can be read as an invitation for corporate governance scholars to embrace the logic of paradox to expand the understanding of this topic. Paradox is not conceptualized as an alternative to dominant structural views, including board composition, but as a complementary conceptual perspective, a meta-theoretical lens to shed light on the tensions inherent to governance. Findings The authors propose that paradox theory offers a fresh conceptual lens to study the role of NEDs. This approach may help NEDs to turn tensions and paradoxes visible to develop a rich understanding of their work, as well as helping them navigate the complexities of organizing, a process rich in inherent paradoxicality. Originality/value Organizational paradox theory is a bourgeoning field of study, but the conceptual lens of paradox has still been underexplored in the study of corporate governance.
{"title":"Visibilizing and managing paradox: redefining the role of non-executive directors","authors":"Miguel Pina e Cunha, António Nogueira Leite, A. Rego, Remedios Hernández‐Linares","doi":"10.1108/cg-01-2023-0038","DOIUrl":"https://doi.org/10.1108/cg-01-2023-0038","url":null,"abstract":"\u0000Purpose\u0000This paper aims to discuss the work of non-executive directors (NEDs) as inherently paradoxical. Paradox refers to the presence of persistent contradictions between interdependent forces. Those persistent tensions are explored, and approaches are indicated to stimulate the adaptive use of paradoxes as forces of innovation and renewal.\u0000\u0000\u0000Design/methodology/approach\u0000This conceptual approach can be read as an invitation for corporate governance scholars to embrace the logic of paradox to expand the understanding of this topic. Paradox is not conceptualized as an alternative to dominant structural views, including board composition, but as a complementary conceptual perspective, a meta-theoretical lens to shed light on the tensions inherent to governance.\u0000\u0000\u0000Findings\u0000The authors propose that paradox theory offers a fresh conceptual lens to study the role of NEDs. This approach may help NEDs to turn tensions and paradoxes visible to develop a rich understanding of their work, as well as helping them navigate the complexities of organizing, a process rich in inherent paradoxicality.\u0000\u0000\u0000Originality/value\u0000Organizational paradox theory is a bourgeoning field of study, but the conceptual lens of paradox has still been underexplored in the study of corporate governance.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"87 19","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139593684","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}
Purpose Manufacturing companies continue to encounter a diverse set of obstacles while embracing sustainable development goals. Accordingly, the purpose of this study is to explore critical sustainable development-related barriers to flexible packaging manufacturing companies in the New Zealand context. Design/methodology/approach Drawing on a qualitative multiple case studies approach, the authors collected data from the New Zealand flexible packaging industry. Semistructured interviews were conducted with the senior corporate managers in two large flexible packaging companies. Following the thematic analysis approach, the authors analyzed the information collected from the participants and synthesized our findings under the key dimensions of internal and external barriers to sustainable development. Findings The findings revealed that internal barriers to sustainable flexible packaging are linked to economic, operational and technical issues. Conversely, external barriers include global crises and disruption, customer behavior and preferences and institutional and infrastructural-related aspects. Based on the analysis of empirical findings, the authors further identified the underlying reasons for sustainable flexible packaging barriers and recommended guidelines that could assist corporate managers and policymakers in addressing obstacles inhibiting the flexible packaging industry from adopting sustainable business practices. Originality/value The authors argue that this study is one of the early studies to consider inhibiting factors to incorporate sustainable development into the New Zealand flexible packaging industry context. Building on a range of theoretical perspectives, the authors extend the current body of knowledge seeking to advance the sustainable development agenda in the New Zealand flexible packaging industry and offer recommended pathways fostering sustainable development in a distinctive manufacturing context.
{"title":"An exploratory study of barriers to sustainable development: evidence from the New Zealand flexible packaging industry","authors":"Amna Farrukh, Aymen Sajjad","doi":"10.1108/cg-05-2023-0221","DOIUrl":"https://doi.org/10.1108/cg-05-2023-0221","url":null,"abstract":"\u0000Purpose\u0000Manufacturing companies continue to encounter a diverse set of obstacles while embracing sustainable development goals. Accordingly, the purpose of this study is to explore critical sustainable development-related barriers to flexible packaging manufacturing companies in the New Zealand context.\u0000\u0000\u0000Design/methodology/approach\u0000Drawing on a qualitative multiple case studies approach, the authors collected data from the New Zealand flexible packaging industry. Semistructured interviews were conducted with the senior corporate managers in two large flexible packaging companies. Following the thematic analysis approach, the authors analyzed the information collected from the participants and synthesized our findings under the key dimensions of internal and external barriers to sustainable development.\u0000\u0000\u0000Findings\u0000The findings revealed that internal barriers to sustainable flexible packaging are linked to economic, operational and technical issues. Conversely, external barriers include global crises and disruption, customer behavior and preferences and institutional and infrastructural-related aspects. Based on the analysis of empirical findings, the authors further identified the underlying reasons for sustainable flexible packaging barriers and recommended guidelines that could assist corporate managers and policymakers in addressing obstacles inhibiting the flexible packaging industry from adopting sustainable business practices.\u0000\u0000\u0000Originality/value\u0000The authors argue that this study is one of the early studies to consider inhibiting factors to incorporate sustainable development into the New Zealand flexible packaging industry context. Building on a range of theoretical perspectives, the authors extend the current body of knowledge seeking to advance the sustainable development agenda in the New Zealand flexible packaging industry and offer recommended pathways fostering sustainable development in a distinctive manufacturing context.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"8 6","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139597831","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}
Fabíola M.M.G. Borges, R. Anholon, I. Rampasso, T. Sigahi, Gustavo Hermínio Salati Marcondes de Moraes, W. Leal Filho
Purpose This paper aims to understand the difficulties faced by Latin American oil and gas (O&G) companies in adopting integrated practices aligned with the UN Sustainable Development Goals (SDG) Agenda. Design/methodology/approach A Delphi study was conducted with 14 experts with extensive knowledge and experience in the O&G sector to collect opinions and investigate sustainable practices in the Latin American context. Findings A consensus was reached after two rounds, demonstrating a unified view of sustainability experts on the difficulties faced by O&G companies to adopt practices aligned with the SDGs. The difficulties identified through the Delphi method were allocated into five clusters named: “public sector and governments,” “civil society,” “corporate issues,” “technology and innovation” and “financial aspects.” These clusters were used to discuss the main challenges associated with implementing business practices that recognize the SDGs and their achievement as a synergistic reinforcing system rather than an additive structure. Originality/value This study provides further insights into the underexplored subject relating to the challenges experienced by Latin American O&G companies in the implementation of the SDGs, adopting the perspective of academic and industry experts in this field. The findings can help professionals in O&G companies implement sustainable practices, policymakers in debates about futures laws and regulations and academic in future research.
{"title":"Difficulties experienced by Latin American oil and gas companies in the integrated adoption of practices aligned with the UN SDGs","authors":"Fabíola M.M.G. Borges, R. Anholon, I. Rampasso, T. Sigahi, Gustavo Hermínio Salati Marcondes de Moraes, W. Leal Filho","doi":"10.1108/cg-03-2023-0100","DOIUrl":"https://doi.org/10.1108/cg-03-2023-0100","url":null,"abstract":"\u0000Purpose\u0000This paper aims to understand the difficulties faced by Latin American oil and gas (O&G) companies in adopting integrated practices aligned with the UN Sustainable Development Goals (SDG) Agenda.\u0000\u0000\u0000Design/methodology/approach\u0000A Delphi study was conducted with 14 experts with extensive knowledge and experience in the O&G sector to collect opinions and investigate sustainable practices in the Latin American context.\u0000\u0000\u0000Findings\u0000A consensus was reached after two rounds, demonstrating a unified view of sustainability experts on the difficulties faced by O&G companies to adopt practices aligned with the SDGs. The difficulties identified through the Delphi method were allocated into five clusters named: “public sector and governments,” “civil society,” “corporate issues,” “technology and innovation” and “financial aspects.” These clusters were used to discuss the main challenges associated with implementing business practices that recognize the SDGs and their achievement as a synergistic reinforcing system rather than an additive structure.\u0000\u0000\u0000Originality/value\u0000This study provides further insights into the underexplored subject relating to the challenges experienced by Latin American O&G companies in the implementation of the SDGs, adopting the perspective of academic and industry experts in this field. The findings can help professionals in O&G companies implement sustainable practices, policymakers in debates about futures laws and regulations and academic in future research.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"2 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139597359","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}
Purpose This research paper aims to examine the effect of chief executive officer (CEO) characteristics on earnings management. Design/methodology/approach Research samples are manufacturing firms listed in the Indonesian Stock Exchange 2015–2021. CEO characteristics include narcissism, gender, age, tenure, experience, nationality and founding family status. Data analysis uses random-effect regression. Findings The result shows that higher narcissism CEOs have aggressive characteristics so they will be more likely to engage in accrual and real earnings management. Female CEOs, foreign CEOs and founding-family CEOs have higher monitoring and business ethics characteristics so they will be less likely to engage in accrual and real earnings management. CEOs with higher education levels have higher thinking complexity so they will be more likely to engage in accrual earnings management with higher regulator and auditor monitoring barriers than real earnings management. CEOs with financial and accounting experience are familiar with accounting standards and auditor monitoring barriers so they will be more likely to engage in accrual earnings management than real earnings management. On the other hand, there are no effects of CEO age and tenure on earnings management. Originality/value This research contributes to providing evidence of the effect of CEO characteristics on earnings management in a specific industry such as manufacturing firms and emerging markets such as Indonesia with the majority group firms being family firms.
目的本文旨在研究首席执行官（CEO）特征对收益管理的影响。首席执行官的特征包括自恋、性别、年龄、任期、经验、国籍和创始家族地位。研究结果表明，自恋程度较高的 CEO 具有攻击性特征，因此他们更有可能进行应计和实际收益管理。女性首席执行官、外籍首席执行官和创始家族首席执行官具有较高的监督和商业道德特征，因此他们参与应计制和实际收益管理的可能性较低。受教育程度较高的首席执行官具有较高的思维复杂性，因此与真实收益管理相比，他们更有可能参与权责发生制收益管理，而监管者和审计师的监督障碍较高。具有财务和会计经验的首席执行官熟悉会计准则和审计师监督障碍，因此他们更有可能参与权责发生制收益管理，而不是真实收益管理。另一方面，首席执行官的年龄和任期对收益管理没有影响。原创性/价值这项研究有助于提供证据，证明在制造业企业等特定行业和印尼等新兴市场中，首席执行官的特征对收益管理的影响，印尼的大多数企业集团都是家族企业。
{"title":"Do CEO characteristics affect earnings management?","authors":"Adhitya Agri Putra, Doddy Setiawan","doi":"10.1108/cg-02-2023-0078","DOIUrl":"https://doi.org/10.1108/cg-02-2023-0078","url":null,"abstract":"\u0000Purpose\u0000This research paper aims to examine the effect of chief executive officer (CEO) characteristics on earnings management.\u0000\u0000\u0000Design/methodology/approach\u0000Research samples are manufacturing firms listed in the Indonesian Stock Exchange 2015–2021. CEO characteristics include narcissism, gender, age, tenure, experience, nationality and founding family status. Data analysis uses random-effect regression.\u0000\u0000\u0000Findings\u0000The result shows that higher narcissism CEOs have aggressive characteristics so they will be more likely to engage in accrual and real earnings management. Female CEOs, foreign CEOs and founding-family CEOs have higher monitoring and business ethics characteristics so they will be less likely to engage in accrual and real earnings management. CEOs with higher education levels have higher thinking complexity so they will be more likely to engage in accrual earnings management with higher regulator and auditor monitoring barriers than real earnings management. CEOs with financial and accounting experience are familiar with accounting standards and auditor monitoring barriers so they will be more likely to engage in accrual earnings management than real earnings management. On the other hand, there are no effects of CEO age and tenure on earnings management.\u0000\u0000\u0000Originality/value\u0000This research contributes to providing evidence of the effect of CEO characteristics on earnings management in a specific industry such as manufacturing firms and emerging markets such as Indonesia with the majority group firms being family firms.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"50 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139598117","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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