Institutional investors and voluntary disclosure and transparency: the case of Egypt

2017 ◽  
Vol 17 (1) ◽  
pp. 134-151 ◽  
Author(s):  
Doaa El-Diftar ◽  
Eleri Jones ◽  
Mohamed Ragheb ◽  
Mohamed Soliman
Keyword(s):  
Institutional Investors ◽  
Voluntary Disclosure ◽  
Design Methodology ◽  
Positive Impact ◽  
Corporate Disclosure ◽  
Firm Characteristics ◽  
Policy Makers ◽  
Content Type ◽  
Bank Ownership ◽  
Practical Implications

Purpose Disclosure and transparency are major pillars of corporate governance which need to be greatly promoted in Egypt. This research aims to understand how different kinds of institutional investors affect levels of voluntary disclosure and transparency. Design/methodology/approach The research was conducted on the most active Egyptian companies over a period of five years. A voluntary disclosure checklist was first developed to assess levels of voluntary disclosure and transparency. Findings Empirical results support significant positive impacts of both bank ownership and foreign ownership on voluntary disclosure and transparency. Among the four firm characteristics controlled for in the research, firm size was the only one with a highly significant positive impact on voluntary disclosure and transparency. Research limitations/implications The results of this research may not be generalized to all companies, as it was only conducted on the most active firms on the Egyptian Exchange. Therefore, it is recommended that future researches integrate a more diversified sample. Practical implications The research provides empirical evidence that institutional investors are not a homogeneous group and that different kinds of institutional ownership impact differently on voluntary disclosure and transparency. As such, some institutional investors are more influential than others when it comes to increasing corporate voluntary disclosure and transparency and in reducing agency problems. Originality/value This research offers assistance to policy makers interested in enhancing corporate disclosure and transparency. It is particularly important during any adjustment to ownership policies in Egypt.

Do IPO filing prices reflect firm quality?

2019 ◽  
Vol 45 (4) ◽  
pp. 499-512
Author(s):  
Jaclyn J. Beierlein ◽  
James Nelson
Keyword(s):  
Institutional Investors ◽  
Design Methodology ◽  
Institutional Investor ◽  
Ordinary Least Squares ◽  
Individual Investors ◽  
Firm Characteristics ◽  
Ceteris Paribus ◽  
Content Type ◽  
Underwriter Reputation ◽  
Practical Implications

Purpose Prior research suggests that institutional investors prefer higher priced stock, while individual investors prefer lower priced stock. The purpose of this paper is to examine whether the IPO filing price reflects firm characteristics that are commonly associated with quality, including size, age, earnings, underwriter reputation and venture capital backing. Design/methodology/approach The authors used t-tests, Wilcoxon rank sum tests, logistic and ordinary least squares regressions to test the hypotheses. Findings The authors find that IPO filing prices are positively related to measures of quality, except venture backing, which impacts prices non-linearly. Ceteris paribus, small (large) venture backed firms’ filing prices are set significantly lower (higher). Research limitations/implications Firm managers set IPO filing prices high when they believe the firm is likely to attract institutional investors due to its size, quality and certification, and will set prices low otherwise. Practical implications Individual investors should be wary of IPO firms with lower prices. Managers should be cognizant of the positive relationship between IPO quality and price. Originality/value This study provides evidence that IPO prices reflect firm quality and may be set deliberately to attract individual investors when institutional investor demand is expected to be low. It also provides evidence that venture backing affects IPO prices non-linearly, consistent with the grandstanding hypothesis.

Corporate payout-form: investors’ preference and catering theory

2018 ◽  
Vol 44 (12) ◽  
pp. 1418-1433
Author(s):  
Abdelaziz Chazi ◽  
Alexandra Theodossiou ◽  
Zaher Zantout
Keyword(s):  
Design Methodology ◽  
Policy Formulation ◽  
Future Research ◽  
Stock Repurchases ◽  
Firm Characteristics ◽  
Content Type ◽  
Robust Measures ◽  
Practical Implications ◽  
Form Preference ◽  
Number Of Firms

Purpose The purpose of this paper is to develop and validate new robust measures of investors’ preference for the form of regular corporate payout. Then, the paper adds to the empirical evidence on catering theory by examining managers’ catering to such preference. Design/methodology/approach The authors use the matching method to control for firm characteristics. The authors apply two robustness tests to validate the measures. The authors use the rigorous multivariate analysis. Findings US investors’ preference for regular dividends vs regular stock repurchases, being different forms of corporate payout, varies over time. Managers cater to investors’ preference for payout form. The findings are consistent with the catering theory of Baker and Wurgler (2004a). The number of firms that pay cash dividends regularly continue to outnumber the ones that purchase their shares regularly. Research limitations/implications The study only uses US data. It does not cover other countries. Practical implications The measures can be used in several future research endeavors, such as examining investors’ payout-form preferences in other countries (see Booth and Zhou, 2017) and exploring their determinants, the corporate governance characteristics of firms that cater to investors’ preference vs firms that do not, etc. Social implications The study contributes to understanding investors’ preferences and corporate payout behavior which is prerequisite to efficient policy formulation. Originality/value The proxies for investors’ payout-form preference control for firm characteristics and are unrelated to investors’ time-varying risk preferences. Also, they are robust to measurement issues. Moreover, the study covers a period of 40 years.

scholarly journals Celebrating advances in LGBT+ diversity in the accountancy profession

2018 ◽  
Vol 9 (5) ◽  
pp. 636-641 ◽  
Author(s):  
Jeffrey Unerman
Keyword(s):  
Social Justice ◽  
Design Methodology ◽  
Positive Impact ◽  
Social Implications ◽  
Critical Approach ◽  
Diversity Initiatives ◽  
Content Type ◽  
Diversity Issues ◽  
Practical Implications

Purpose This paper aims to provide a commentary on evidence presented and issues raised by Egan (2018) regarding LGBT+ diversity initiatives in the accountancy profession. Design/methodology/approach This paper is an invited commentary based on the author’s experiences of LGBT+ and other diversity initiatives in the profession. Findings There is cause for optimism in how far the profession has progressed in some countries on supporting LGBT+ (and other forms of) diversity. Practical implications As multinational accountancy firms can be agents for change in countries where there remains considerable discrimination and hostility to LGBT+ (and other) communities, constructive critique to help further improve the firms’ innovative actions on LGBT+ and other diversity issues could have a major positive impact on social justice. Egan (2018) is an example of such constructive critique. Social implications Where other academic studies take a disparagingly critical approach, they risk both squandering the opportunity to help achieve the progress they espouse and discouraging other firms embracing innovative diversity practices. Originality/value This study provides a counter perspective to some critical accounting arguments that appear to value idealism over progress.

Leadership where there’s a will

2014 ◽  
Vol 30 (10) ◽  
pp. 29-31
Keyword(s):  
Energy Balance ◽  
Energy Management ◽  
Design Methodology ◽  
Reading Time ◽  
Positive Impact ◽  
Mental Practice ◽  
Content Type ◽  
Pertinent Information ◽  
Time And Energy ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds personal impartial comments and places the articles in context. Findings – Willpower governs acts of leadership. It is a capability that has been found to be genetic, but which also is possible to develop by raised awareness, disciplined practice and extending one’s comfort zones by exposing oneself to challenges. Willpower is a mental capability, and if leaders develop their ability to focus on their time and energy management, and become more aware of their feelings, they may improve their willpower. Additionally, their energy balance matters: taking care of basics including paying attention to nutrition and to resting, as well as taking up some form of physical/mental practice may have a positive impact on a leader’s willpower. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The rainbow sign: climate change and corporate reputation

2019 ◽  
Vol 40 (3) ◽  
pp. 52-56
Author(s):  
Peter Buell Hirsch
Keyword(s):  
Climate Change ◽  
Corporate Reputation ◽  
Design Methodology ◽  
Positive Impact ◽  
Social Implications ◽  
Content Type ◽  
Secondary Literature ◽  
Qualitative Interpretation ◽  
Practical Implications

Purpose This paper aims to highlight the increasing importance corporate responses to climate change will play in corporate reputation. Design/methodology/approach Review of the relevant secondary literature Findings Companies that develop active responses to climate change will see positive impact on their corporate reputation. Research limitations/implications The review of the secondary literature is not comprehensive and subject to the author’s qualitative interpretation of it. Practical implications Companies that follow the recommendations will see a benefit in stakeholder appreciation. Social implications The more companies embrace a proactive stance on climate change, the more likely society is to meet the 2 per cent goal. Originality/value To the best of the author’s knowledge, this is the first treatment of climate change from the perspective of corporate reputation.

An exploratory study on how SMEs are open to external sources of information

2019 ◽  
Vol 22 (5) ◽  
pp. 765-789 ◽  
Author(s):  
Moulay Othman Idrissi Fakhreddine ◽  
Yan Castonguay
Keyword(s):  
Design Methodology ◽  
Probit Model ◽  
Significant Heterogeneity ◽  
Sources Of Information ◽  
Policy Makers ◽  
Content Type ◽  
Recent Developments ◽  
External Sources ◽  
Canada Data ◽  
Practical Implications

Purpose The purpose of this paper is to draw on recent developments in the open innovation literature to explore whether the openness of SMEs to the four categories of external sources of information (ESI) is complementary, substitute or independent, while assessing the determinants of SMEs’ openness to these ESI. Design/methodology/approach This research is based on data from a survey of 451 manufacturing SMEs in the province of Québec, Canada. Data have been elaborated through a multivariate probit model to empirically show that SMEs are considered to be simultaneously open to different ESI. The results of this study show significant heterogeneity in the determinants of SMEs’ openness to these ESI. Findings The study found that the SMEs’ openness to different ESI seems to be complementary rather than substitute; and not all variables included in the model explain the SMEs’ openness to the different ESI. Practical implications The paper provides practical implications for managers and policy makers including the SMEs’ managers’ role to recognize the consolidation of different ESI jointly instead of separately. Furthermore, managers and policy makers should attempt to provide a fair context to SMEs to manage their openness ecosystem. Originality/value This study is virtually the first to investigate both the complementarity and the determinants of SMEs’ openness to different ESI using a sophisticated econometric model.

Improving the effectiveness of employee learning

2018 ◽  
Vol 32 (4) ◽  
pp. 34-36 ◽  
Keyword(s):  
Design Methodology ◽  
Positive Impact ◽  
Learning Tools ◽  
Organizational Growth ◽  
Content Type ◽  
Learning Programs ◽  
Pertinent Information ◽  
Employee Characteristics ◽  
Employee Learning ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Learning is key to organizational growth and development. Various employee characteristics can predict the outcome of learning programs, which can have a more positive impact on firm performance if relevant online learning tools are also utilized. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent, information and presenting it in a condensed and easy-to-digest format.

Bargaining over crowdfunding benefits

2018 ◽  
Vol 7 (2) ◽  
pp. 166-177 ◽  
Author(s):  
Marco Bade
Keyword(s):  
Bargaining Power ◽  
Design Methodology ◽  
Success Probability ◽  
Venture Capitalists ◽  
Policy Makers ◽  
Content Type ◽  
Equilibrium Allocation ◽  
Outside Options ◽  
Multi Stage ◽  
Practical Implications

Purpose Crowdfunding creates multifaceted benefits for different agents who all desire to extract some of these benefits. The purpose of this paper is to analyze the allocation of crowdfunding benefits among crowdfunders, entrepreneurs, and venture capitalists. Design/methodology/approach The present paper develops a multi-stage bargaining model with a double-sided moral hazard. Findings It is demonstrated that higher entrepreneurial bargaining power vis-à-vis the crowd may not always be beneficial for the venture. Most importantly, this is due to the reduced success probability of crowdfunding resulting from higher bargaining power of the entrepreneur. Bargaining power and the value of outside options determine the equilibrium allocation of crowdfunding benefits, expected venture value, and thus expected wealth of all agents. Practical implications Entrepreneurs face a tradeoff between venture quality gains and worse outcomes from crowdfunding campaigns. Crowdfunding success and thus venture quality gains are the ultimate goal of policy makers if they aim to enhance the overall social welfare. Originality/value This paper is the first to investigate how multifaceted crowdfunding benefits are allocated between the crowd, entrepreneurs, and venture capitalists. The paper furthers the development of an appropriate regulatory framework for crowdfunding by depicting new and original effects related to crowdfunding.

scholarly journals Measuring perceptions of Muslim consumers toward income tax rebate over zakat on income in Malaysia

2019 ◽  
Vol 11 (2) ◽  
pp. 368-383
Author(s):  
Abdullah- Al-Mamun ◽  
Ahasanul Haque ◽  
Muhammad Tahir Jan
Keyword(s):  
Design Methodology ◽  
Online Survey ◽  
Legal Consciousness ◽  
Policy Makers ◽  
Content Type ◽  
Leading Role ◽  
Practical Implications ◽  
People’S Perceptions ◽  
Structured Questionnaire ◽  
Significant Factors

Purpose The purpose of this study is to explore the variables that affect Muslim consumers’ perception towards tax rebate over zakat on income in Malaysia. Design/methodology/approach A close-ended structured questionnaire was developed and a total number of 236 valid responses were collected through online survey from the Muslims residing in Malaysia. Findings This study found that halal-haram aspect of Islamic Shariah, legal consciousness and religiosity of Muslim consumers are positive significant factors for growing perceptions towards tax rebate over zakat on income in Malaysia. Research limitations/implications This study will definitely play an important leading role for the policy-makers and academicians in understanding the perceptions of Muslim consumers. Practical implications This study can assist zakat and tax authorities in Malaysia for taking corrective actions to adapt or improve the current policy on the basis of its Muslim consumers’ perception. Social implications The findings of this study can reduce the gap of understanding among Muslims in the society by letting other people’s perceptions towards tax rebate through zakat system in Malaysia. Originality/value As there are not enough studies in this area, this study will definitely play an important leading role for the countries or policy-makers or concerned zakat or tax institutions all over the world in capitalizing the practices which is highly and positively perceived by the Muslim consumers in Malaysia.

scholarly journals COVID-19’s impact on the hospitality workforce – new crisis or amplification of the norm?

2020 ◽  
Vol 32 (9) ◽  
pp. 2813-2829 ◽  
Author(s):  
Tom Baum ◽  
Shelagh K.K. Mooney ◽  
Richard N.S. Robinson ◽  
David Solnet
Keyword(s):  
Global Economy ◽  
Design Methodology ◽  
Policy Makers ◽  
Content Type ◽  
Global Policy ◽  
Key Stakeholders ◽  
Hospitality Workers ◽  
Fluid Environment ◽  
Practical Implications

Purpose The purpose of this paper is to highlight the immediate impacts of the COVID-19 pandemic on the hospitality workforce in situ between mid-April and June 2020. Design/methodology/approach This is a viewpoint paper that brings together a variety of sources and intelligence relating the impacts on hospitality work of the COVID-19 pandemic at three levels: macro (global, policy, government), meso (organisational) and micro (employee). It questions whether the situations faced by hospitality workers as a result of the pandemic are seed-change different from the precarious lives they normally lead or just a (loud) amplification of the “normal”. Findings In light of the fluid environment relating to COVID-19, conclusions are tentative and question whether hospitality stakeholders, particularly consumers, governments and the industry itself, will emerge from the pandemic with changed attitudes to hospitality work and hospitality workers. Practical implications This raises questions about hospitality work for key stakeholders to address in the future, some of which are systemic in terms of how precarious labour forces, critical to the global economy are to be considered by policy makers, organisations in a re-emerging competitive market for talent and for those who chose (or not) to work in hospitality. Social implications This paper contributes to ongoing debates about precarious work and the extent to which such practices are institutionalised and adopts an “amplification model” that may have value in futures-orientated analysis about hospitality and tourism. Originality/value This paper is wholly original and a reflection on the COVID-19 crisis. It provides a point of wider reference with regard to responses to crises and their impact on employment in hospitality, highlighting how ongoing change, fluidity and uncertainty serve to magnify and exacerbate the precarious nature of work in the industry.

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