Corporate Governance: The International Journal of Business in Society最新文献

{"title":"Does the combined assurance model affect tax avoidance? The case of South African companies","authors":"Saoussen Boujelben, N. Medhioub","doi":"10.1108/cg-08-2023-0346","DOIUrl":"https://doi.org/10.1108/cg-08-2023-0346","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate the impact of combined assurance on tax avoidance in South Africa.\u0000\u0000\u0000Design/methodology/approach\u0000This study is founded on a sample of 76 South African firms listed on the Johannesburg Stock Exchange over the 2014–2022 period. The authors used the feasible generalized least squares regression estimation technique to test the hypothesis. To address endogeneity issues, this study conducted a difference-in-differences (DID) analysis based on propensity score matching.\u0000\u0000\u0000Findings\u0000The results reveal that combined assurance negatively impacts tax avoidance. Implementing combined assurance, as an integrated risk management approach, significantly minimizes tax risk. The DID analysis provides well-founded evidence attributing the decline in tax avoidance levels to the availability of combined assurance. The inferences are robust to using alternative measures of tax avoidance, testing combined assurance impact across various tax avoidance levels and controlling for the COVID-19 effect.\u0000\u0000\u0000Practical implications\u0000This study presents valuable insights for firms, managers and policymakers. The findings encourage companies to bolster their risk management practices, opting for combined assurance over a sole risk monitoring mechanism. This approach enables the company to ensure better compliance with tax regulations, thereby enhancing overall efficiency. Besides, the disciplining effect of combined assurance motivates managers to make informed decisions, avoid tax avoidance strategies and safeguard corporate reputation. Moreover, this research calls upon policymakers to promote effective global regulatory frameworks for combined assurance practices.\u0000\u0000\u0000Originality/value\u0000The research brings original insights by exploring the influence of combined assurance on tax avoidance. This addresses a gap in the current literature that has predominantly focused on the relationship between tax avoidance and individual lines of defense.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":" August","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141670049","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}

{"title":"The power of governance: unraveling the influence of voluntary disclosure on bank’s value in Pakistan","authors":"Fizza Irfan, Muhammad Usman, Zahid Bashir, Sabeeh Iqbal","doi":"10.1108/cg-07-2023-0294","DOIUrl":"https://doi.org/10.1108/cg-07-2023-0294","url":null,"abstract":"Purpose\u0000This study aims to examine the influence of voluntary disclosure on bank value in Pakistan, considering the moderating effect of corporate governance characteristics: ownership control, board independence and board size.\u0000\u0000Design/methodology/approach\u0000The study uses data from 20 listed Pakistani banks for the period 2011–2021. The estimation contains robust fixed effect and its assumptions, and a model of standard error with panel corrections.\u0000\u0000Findings\u0000The findings revealed a weak positive impact of voluntary disclosure on bank value. However, the increase in the number of independent directors strengthens the positive impact of voluntary disclosure on a bank’s value. Conversely, increasing the ownership concentration, and board size (other than independent directors) may strongly decrease the impact of voluntary disclosure on a bank’s value in Pakistan.\u0000\u0000Research limitations/implications\u0000The study’s limitations include its exclusive focus on the Pakistani banking industry. Future research should take into account newer contexts and data. The findings suggest that future research should investigate the topic in various contexts, including a comparison of Islamic and conventional banks.\u0000\u0000Practical implications\u0000The practical implications for Pakistani banks emphasize transparency, board composition and ownership structure. In terms of managerial implications, using independent directors, aligning ownership interests and addressing disclosure challenges are highlighted.\u0000\u0000Originality/value\u0000Focusing on independent directors, ownership concentration and board size, this study enhances knowledge of the impact of voluntary disclosure on bank value in Pakistan. It contributes to agency theory and the literature in this domain.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"79 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141693314","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}

{"title":"Speaking success: managerial tone in earnings conference calls and financial performance","authors":"Mohammad Alta'any, Salah Kayed, Rasmi Meqbel, Khaldoon Albitar","doi":"10.1108/cg-09-2023-0381","DOIUrl":"https://doi.org/10.1108/cg-09-2023-0381","url":null,"abstract":"\u0000Purpose\u0000Drawing on signalling and impression management theories, this study aims to examine a bidirectional association between managerial tone in earnings conference calls and financial performance.\u0000\u0000\u0000Design/methodology/approach\u0000The sample includes non-financial firms listed in the FTSE 350 index during the period 2010–2015. Managerial tone was measured using positive and negative keywords based on the Loughran-McDonald Sentiment Word Lists, while return on assets was used as a proxy for firms’ financial performance.\u0000\u0000\u0000Findings\u0000The findings indicate that current financial performance positively affects the managerial tone in earnings conference calls. Likewise, the results also show that there is a positive relationship between managerial tone in earnings conference calls and firms’ future financial performance.\u0000\u0000\u0000Practical implications\u0000The results have important implications for top management to use more virtual communication media (i.e. earnings conference calls) to continue managing their relationships with financial stakeholders and helping them better understand financial performance, especially in countries where holding such calls is not yet part of firms’ policy.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is one of the first studies that explore the relationship between managerial tone in earnings conference calls and financial performance. Overall, this study contributes to managerial tone literature and holds significant theoretical and practical implications.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"11 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141709692","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}

{"title":"Do promoters cause financial distress in a bank?","authors":"Shailesh Rastogi, Jagjeevan Kanoujiya","doi":"10.1108/cg-06-2023-0268","DOIUrl":"https://doi.org/10.1108/cg-06-2023-0268","url":null,"abstract":"Purpose\u0000The study aims to explore the impact of ownership concentration (OC) on bank financial distress (FD). Furthermore, the bank’s financial stability levels determine the association between the two.\u0000\u0000Design/methodology/approach\u0000Bank data of 33 Indian commercial banks are procured for ten years (2013–2022). The panel data econometrics is applied for empirical estimations. The quantile regression approach is used to determine the association between OC and FD at different quantiles of the FD. Non-normalcy of the data is checked and ensured before applying the quantile regression.\u0000\u0000Findings\u0000Surprisingly, it is found that promoters have a nonlinear impact on the firm’s stability. The inverted U-shape result implies that as promoters cross a threshold level, the benefit of increasing promoters’ stake takes a beating and a further increase in promoters’ stakes adversely impacts the stability of the banks. Moreover, this threshold value increases while moving from low to high levels of stability in a quantile regression application.\u0000\u0000Research limitations/implications\u0000This study uses promoters as the proxy for OC. Other existing definitions of OC are not used in the study, which can further improve the robustness of the results. Additionally, the use of the type of ownership (private, public or foreign) is also not adopted in the present study. Both the limitations can be the study’s future scope on the topic.\u0000\u0000Practical implications\u0000The high OC is supposed to influence corporate governance adversely. Therefore, policymakers recommend low OC for better governance. However, the present study finds evidence that a higher OC (high threshold of OC as the stability increases) would be better for financial stability. This situation demands a trade-off between governance and financial stability regarding OC.\u0000\u0000Originality/value\u0000The authors do not observe any study having the nonlinear impact of OC on financial stability (opposite of FD). Moreover, the threshold of OC for the optimum level of financial stability increases as stability goes high. This evidence using quantile regression and finding the turning point using a quadratic equation is also not seen in the literature.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"10 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141339099","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}

{"title":"Audit committees in transition: evaluating the effectiveness of corporate governance in Libya’s banking sector","authors":"Abdulhakim M. Masli, A. M. Gerged, M. Mangena","doi":"10.1108/cg-07-2023-0291","DOIUrl":"https://doi.org/10.1108/cg-07-2023-0291","url":null,"abstract":"Purpose\u0000The purpose of this research paper is to investigate the perspectives of key stakeholders on strategies to improve the effectiveness of audit committees (ACs) in African economies, with a specific focus on the Libyan banking sector.\u0000\u0000Design/methodology/approach\u0000The study uses a mixed-methods approach, combining questionnaire surveys and semi-structured interviews. The data collection process involves gathering responses from participants through questionnaires and conducting in-depth interviews to gain deeper insights into the subject matter.\u0000\u0000Findings\u0000The research findings highlight several key points. Firstly, fortifying Libya’s accounting and auditing profession emerges as the most widely endorsed suggestion for enhancing AC effectiveness. Secondly, participants identified various actions that can strengthen ACs, including appointing members with financial expertise, refining the legal requirements governing AC responsibilities, securing board support, enhancing Libya’s legal and regulatory framework, adequately compensating AC members and reducing government intervention in AC practices.\u0000\u0000Originality/value\u0000This research contributes to the field of corporate governance by providing valuable insights into the perspectives of stakeholders on enhancing AC effectiveness in the Libyan banking sector, within the broader context of African economies. The findings offer actionable plans for regulators and policymakers seeking to improve AC effectiveness in Libya.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"46 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141348949","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}

{"title":"The era of artificial intelligence: what implications for the board of directors?","authors":"Paolo Agnese, Francesca Romana Arduino, Domenico Di Prisco","doi":"10.1108/cg-06-2023-0259","DOIUrl":"https://doi.org/10.1108/cg-06-2023-0259","url":null,"abstract":"Purpose\u0000Artificial intelligence (AI) is a cutting-edge new reality already having an unprecedented impact on society, the economy and businesses. Its future developments and long-term influence are still largely unknown. This article aims to examine AI’s potential benefits and challenges to corporate governance mechanisms, focusing on the board of directors.\u0000\u0000Design/methodology/approach\u0000The paper theoretically explores the influence of artificial intelligence on the board of directors’ capabilities, roles and functions.\u0000\u0000Findings\u0000Concerning rethinking board functioning in the era of artificial intelligence, the paper analyzes how artificial intelligence can impact the board of directors. It proposes some recommendations on how directors can more effectively integrate artificial intelligence into the boardroom, including establishing an internal artificial intelligence committee composed of experts with technical knowledge dedicated to managing artificial intelligence-related potential threats and opportunities.\u0000\u0000Practical implications\u0000Companies are invited to have some technical knowledge and expertise on artificial intelligence on the boards, fostering directors to upskill themselves in the new artificial intelligence technologies and establishing an ad-hoc internal committee. Policymakers are expected to keep pace with the growing proliferation of artificial intelligence solutions, defining a sharp regulatory framework.\u0000\u0000Originality/value\u0000The study advances knowledge in the corporate governance literature by shedding light on the effects of artificial intelligence on boards of directors and suggesting a set of best practices for its effective implementation.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"53 6","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141353035","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}

{"title":"Board of directors effect on environmental, social and governance performance in publicly traded non-financial firms","authors":"Ma. Dolores del C. Sepúlveda-Núñez, Carlos Fong Reynoso, Irving Llamosas-Rosas","doi":"10.1108/cg-09-2023-0409","DOIUrl":"https://doi.org/10.1108/cg-09-2023-0409","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the effect of the board of directors (BoD) structure on environmental, social and governance (ESG) performance in publicly traded non-financial firms from the perspective of agency theory, with investors as the principal, the management team as the agent, the BoD as an information system that reduces information asymmetries between them and ESG performance as a shareholder’s expectation.\u0000\u0000\u0000Design/methodology/approach\u0000Sample data is cross-sectional as of January 2023 and includes 1,695 non-financial firms listed in 59 stock markets across 54 countries. Data were sourced from the FactSet Research Systems database. The generalized least squares method was used to run quadratic and exponential models to assess the research hypotheses.\u0000\u0000\u0000Findings\u0000Results revealed that board size, independence, age, gender diversity and participation on other corporate boards have a nonlinear relationship with ESG performance. Board tenure is the only BoD attribute for which a nonlinear association is not found. This study found that firms with larger boards and more female board members tend to exhibit a stronger commitment to ESG performance. In contrast, companies with a board of directors consisting of independent members, advanced age, service on other corporate boards and CEO duality may struggle to prioritize positive ESG outcomes.\u0000\u0000\u0000Originality/value\u0000This study contributes to the academic discussion on BoD–ESG by examining nonlinear relationships among a large sample of publicly traded firms; providing results that could be applied internationally; using ESG data that is based on the Sustainability Accounting Standards Board's materiality framework, which identifies key ESG factors for investors; emphasizing the significance of diversity and inclusion within the decision-making bodies of public companies, thereby improving their ESG performance; and supporting the agency theory perspective and suggesting that the effect of board structure on ESG may reflect the board's focus on investors’ best interests.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"96 21","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141359449","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}

{"title":"Economic policy uncertainty and environmental, social and governance (ESG) disclosure: the moderating effects of board network centrality and political connections","authors":"M. Harjoto, Yan Wang","doi":"10.1108/cg-08-2023-0349","DOIUrl":"https://doi.org/10.1108/cg-08-2023-0349","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the relationship between economic policy uncertainty (EPU) and environmental, social and governance (ESG) disclosure and the moderating role of board network centrality and political connections on the nexus between EPU and ESG.\u0000\u0000\u0000Design/methodology/approach\u0000Using a sample of the UK Financial Times Stock Exchange (FTSE) 350 firms during 2007 to 2018, this study examines the relationship between EPU and the ESG disclosure and the moderating effects of board centrality and board political connections using multivariate regression analysis.\u0000\u0000\u0000Findings\u0000The results show that firms tend to increase their ESG disclosure when EPU rises. The results also reveal that EPU is negatively associated with firms’ financial performance and ESG performance is less evident for firms with higher ESG disclosure scores and is observed only when board centrality is relatively low and the political connections are absent. The study finds further evidence to support the hypotheses during periods of heightened conflicts (i.e. global financial crisis and the Brexit referendum).\u0000\u0000\u0000Practical implications\u0000This study offers practical insights for corporate managers who attempt to preserve and enhance their firms’ competitive advantages via maintaining its stakeholders support through greater ESG disclosure during heightened EPU periods.\u0000\u0000\u0000Originality/value\u0000By integrating the resource-based view (RBV) and the signaling theory, this study extends the signaling theory and RBV by examining the relationship between EPU and ESG disclosure as a signal to its stakeholders and information advantages that board centrality and political connections bring to the company to reduce information asymmetry between the firms and its stakeholders during EPU.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"78 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141357887","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}

{"title":"Do CEOs’ characteristics impact sell-side analysts’ recommendations?","authors":"Abdulsamad Alazzani, Khaldoon Albitar, Khaled Hussainey","doi":"10.1108/cg-09-2023-0389","DOIUrl":"https://doi.org/10.1108/cg-09-2023-0389","url":null,"abstract":"Purpose\u0000This study aims to examine the association between chief executive officers’ (CEOs) characteristics and sell-side analysts’ recommendations.\u0000\u0000Design/methodology/approach\u0000This study uses a sample of firms listed on the London Stock Exchange and uses two databases, Capital IQ and BoardEx to study the above relationship. A variety of regression analyses are used in the empirical models, including ordinary least squares, fixed effect, random effect, Tobit, Logit and generalized method of moments.\u0000\u0000Findings\u0000The authors find that firms with CEOs who had a wider network size and firms with foreign CEOs receive favorable investment recommendations. Further, firms with CEOs who have more time to retire are more likely to receive favorable investment recommendations. However, the authors find that firms with CEOs with more qualifications receive unfavorable recommendations and female CEOs are not affecting investment recommendations.\u0000\u0000Originality/value\u0000Ultimately, this study demonstrates the importance of CEO characteristics for sell-side analysts who play an important role in the stock markets.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"43 11","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-06-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141228518","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}

{"title":"Transfer pricing, earnings management and corporate governance among listed firms: Evidence from Ghana","authors":"King Carl Tornam Duho, E. Asare, Abraham Glover, Divine Mensah Duho","doi":"10.1108/cg-12-2022-0519","DOIUrl":"https://doi.org/10.1108/cg-12-2022-0519","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the prevalence of transfer pricing and earnings management activities, and how they are impacted by corporate governance mechanisms.\u0000\u0000\u0000Design/methodology/approach\u0000Using the political cost theory, the study provides insights into how opportunistic managerial behaviours which have a strong link to profit shifting and tax evasion are driven by corporate governance using data from 16 listed firms for the period 2008–2020.\u0000\u0000\u0000Findings\u0000The results reveal that the transaction-based transfer pricing model is better than the index-based model and the accrual-based earnings management model suits the political cost theory more than the real earnings management metric. Board size and female CEO increase transfer pricing aggressiveness but board independence, CEO tenure, CEO nationality and female Board Chairwomanship reduce transfer pricing aggressiveness. The findings also reveal the role of multinational enterprise status, private ownership, industry type, firm size, financial leverage, asset tangibility and firm age. For accrual-based earnings management, board independence, CEO tenure, and female Board Chairwomanship significantly decrease earnings management. Other factors include private ownership, firm size, and firm age.\u0000\u0000\u0000Practical implications\u0000The findings of the study are relevant for shaping industry-level policies on earning management, transfer pricing and related-party transactions. Since these opportunistic managerial behaviours are the foremost drivers of tax avoidance and profit shifting, the findings of this study provide relevant insights for practitioners, tax and other regulatory authorities, policymakers and the academic community alike.\u0000\u0000\u0000Originality/value\u0000This is among the premier studies on the transfer pricing and earnings management nexus with corporate governance factors using the political cost theory, especially in the developing country context. It also reveals the significant impact of gender and suggests the need for gender diversity in corporate management.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"54 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141098074","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}