Investigating the extent and impact of director overboardedness using a comprehensive measure

2020 ◽  
Vol 20 (5) ◽  
pp. 821-836
Author(s):  
Nadia Mans-Kemp ◽  
Suzette Viviers ◽  
Jenna Weir
Keyword(s):  
South Africa ◽  
Design Methodology ◽  
Emerging Market ◽  
Listed Companies ◽  
Committee Meeting ◽  
High Demand ◽  
Content Type ◽  
Significant Difference ◽  
Research Period ◽  
Case Basis

Purpose Directors can become overextended when they serve on multiple boards simultaneously. Previous scholars mostly considered directorships held at listed companies. This study aims to investigate the extent and impact of director overboardedness in an emerging market by using a comprehensive measure. Design/methodology/approach The analysis covered 1,600 directors who served on the boards of the 100 largest companies listed in South Africa over the period 2011–2016. In addition to directorships held at listed companies, board positions at unlisted companies and other entities such as state-owned enterprises were considered. Board committee memberships at the sample companies were furthermore included. Random effects ANOVA was conducted to test for significant differences in board and committee meeting attendance. Findings Two-thirds of the considered directors were overboarded when accounting for all their positions. Board committee memberships increased notably over the research period. There was no significant difference in the percentage of board meetings attended between overboarded and non-overboarded directors. However, those directors who held three or more positions simultaneously attended significantly more board committee meetings than their counterparts who held fewer positions. Of the considered committees, the remuneration committee typically had the highest proportion of overboarded directors. Originality/value Eligible board candidates are in high demand given the limited talent pool in South Africa. The findings contradict the busyness hypothesis and suggest that director overboardedness should be evaluated on a case-by-case basis.

Monitoring earnings management in emerging markets

2015 ◽  
Vol 31 (2) ◽  
pp. 86-108 ◽  
Author(s):  
Manel Hessayri ◽  
Malek Saihi
Keyword(s):  
South Africa ◽  
Earnings Management ◽  
United Arab Emirates ◽  
Ownership Structure ◽  
Emerging Market ◽  
Listed Companies ◽  
The Philippines ◽  
Content Type ◽  
Ifrs Adoption ◽  
Emerging Market Countries

Purpose – The purpose of this paper is to examine whether International Financial Reporting Standards (IFRS) adoption complements corporate governance factors (e.g. ownership structure) in monitoring managers’ discretional behavior in an emerging market context. Design/methodology/approach – The paper relies on a sample of listed companies in the United Arab Emirates, Morocco, South Africa and the Philippines during an eight-year period on average (four years of pre-adoption period and four years of post-adoption period). Findings – The authors find no evidence of lower earnings management after the switch to IFRS reporting, suggesting that managerial discretional behavior is insensitive to a firm’s IFRS adoption. However, the authors document effective monitoring role of a firm’s ownership structure on earnings management. More interestingly, institutional investors are effective in constraining earnings management when holding a high level of ownership. Moreover, the effect of blockholders and institutional blockholders varies as their ownership rises following a non-linear pattern. Research limitations/implications – First, the assumption that discretionary accruals are adequate measure of earnings management may be criticized in different ways. Second, the findings, performed on listed companies in the United Arab Emirates, Morocco, South Africa and the Philippines, should be interpreted with caution and cannot be generalized to all emerging market countries. Practical implications – Standards setters and market authorities should be aware of earnings management determinants to set adequate and fitting accounting standards limiting opportunistic behavior of managers and mainly to set up training programs to accounting professionals improving the IFRS implementation. Moreover, considering specific features of firms in emerging market countries related to ownership structure, international investors may rely on such criteria to evaluate firms. Finally, auditors should be aware of different incentives for earnings management in order to be able to detect eventual manipulation of accounting earnings. Originality/value – This paper provides a timely contribution to the continuous debate of the effect of IFRS adoption on earnings management in a poorly exploited setting, emerging market context. When investigating, additionally, the eventual non-linear effect of institutional ownership, block ownership, institutional block ownership and non-institutional block ownership on earnings management, a major contribution is that it brings to light the finding of a differential influence of ownership levels on earnings management.

Measuring the service gaps in the roles of quantity surveyors in the emerging market

2016 ◽  
Vol 23 (5) ◽  
pp. 1111-1131 ◽  
Author(s):  
AbdulLateef Olanrewaju
Keyword(s):  
Emerging Markets ◽  
Construction Industry ◽  
Design Methodology ◽  
Emerging Market ◽  
Supply And Demand ◽  
The Other ◽  
Primary Data ◽  
Content Type ◽  
Practical Implications ◽  
Survey Questionnaires

Purpose – The opportunities that the emerging markets present to the players in the construction industry means that the players need to expand on the scope and size of their responsibilities and duties to the stakeholders. Each of the professionals now demands more specialised and sophisticated services from one another. The other players in the construction industry now require more emerging responsibilities and duties from the quantity surveyors. The purpose of this paper is to examine the roles that “modern” quantity surveyors play by measuring the gaps that exist in the services that the quantity surveyors provide. Design/methodology/approach – Primary data are collected through survey questionnaires. In total, 23 roles played by modern quantity surveyors are identified and addressed to the respondents to rank the rate at which quantity surveyors provide these “emerging” services. The collected data were analysed statistically. Findings – The results of the findings led to the conclusion that the quantity surveyors were not meeting the expectations of other players. Therefore, for competitiveness, quantity surveyors need to better meet demand expectations. Research limitations/implications – This findings of this research are constrained to the services or functions that the quantity provide in the construction industry. Practical implications – This knowledge is valuable to academic institutions that offer quantity surveying programmes, to practicing quantity surveyors, governments, and other players in the construction industry. It will allow quantity surveyors to reconcile supply and demand expectations. Originality/value – There is no known conclusive empirical study on services offered by quantity surveyors in any emerging markets. Therefore, the findings offer a fresh understanding on the services of quantity surveyors not only in Nigeria but elsewhere. While some of the services are common, others are peculiar to emerging markets.

Fashion designers' attitude-behaviour inconsistencies towards a sustainable business model: a neutralisation theory perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asphat Muposhi ◽  
Brighton Nyagadza ◽  
Chengedzai Mafini
Keyword(s):  
South Africa ◽  
Online Survey ◽  
Emerging Market ◽  
Survey Study ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
Study Results ◽  
Sustainable Fashion ◽  
Fashion Designers

PurposeFashion designers in South Africa remain ambivalent in embracing sustainable fashion. This study examines the role of neutralisation techniques on attitude towards sustainable fashion. The study was conducted in South Africa, an emerging market known for water scarcity and pollution emanating from the textile industry.Design/methodology/approachA structured questionnaire was used to collect cross-sectional data from a sample of 590 fashion designers using a web-based online survey. Study constructs were drawn from the neutralisation theory and theory of planned behaviour.FindingsStandard multiple regression analysis results identified denial of injury, appeal to higher loyalties and external locus of control as the major rationalisation techniques influencing South African designers' negative attitudes towards sustainable fashion.Research limitations/implicationsResearch was conducted in South Africa where the concept of sustainable fashion is still at developmental stages. The generalisation of the study findings may be enhanced by extending the study to other markets with a fully developed market for sustainable fashion.Practical implicationsThe study results underscore the necessity of reducing social, structural and institutional barriers associated with the adoption of sustainable fashion. This study provides input towards efforts to develop attitude change strategies to stimulate designers to embrace sustainable fashion.Originality/valueThe research study contributes to theory, practice and future research.

Flexibility decision pathways in the management of uncertainty in property development: experience from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Oluwafemi Ayodele ◽  
Abel Olaleye
Keyword(s):  
Emerging Market ◽  
Survey Method ◽  
Property Development ◽  
Content Type ◽  
Significant Difference ◽  
Development Experience ◽  
High Level ◽  
Stratified Analysis ◽  
Management Of Uncertainty ◽  
Practical Implications

Purpose This paper aims to investigate the flexible decision pathways adopted by development advisors in the management of uncertainty in property development. Specifically, the study examines the quantitative techniques adopted by development advisors, the level of adoption of real options analysis (ROA) vis-à-vis the level of adoption of heuristics. Finally, the types of options exercised in property development were analysed. This was with a view to providing information that could mitigate the challenges of risk and uncertainty and increasing investment failure associated with property development in Nigeria, an emerging market. Design/methodology/approach The study adopted a survey method and was conducted on development advisors in property development companies/estate surveying and valuation firms in Nigeria. A total of 195 development advisors participated in the survey. The respondents were required to rate, on a five-point Likert scale, the level of adoption of the quantitative models, heuristics and the types of flexibility exercised during development. The data were analysed using mean rating, one-sample t-test and analysis of variance. Findings The results revealed that there was a preference for the use of traditional techniques, while probabilistic appraisal models and other contemporary methods such as ROA are seldom adopted by development advisors. While there was a significantly high level of adoption of heuristics, the stratified analysis examining the profile of the respondents and the level of adoption of ROA and heuristics suggests that years of experience influenced the level of adoption of both the ROA and heuristics by the development advisors. The analysis of the types of flexibility showed that staging/phasing and changing the initial use/design were the most prevalent flexibility pathways adopted during the development. However, the study found that there was no significant difference concerning the choice of flexibility being adopted by development advisors who used ROA and those who did not. Practical implications The study provides an understanding of the decision pathways adopted by development advisors in an emerging market like Nigeria. Originality/value The paper contributes to studies on decision-making pathways in the management of uncertainty under dynamic conditions by development advisors in emerging markets.

The effect of chia (Salvia hispanic L.) flour as a substitute for fat in gluten-free bread

2019 ◽  
Vol 49 (4) ◽  
pp. 517-527 ◽  
Author(s):  
Katira da Mota Huerta ◽  
Caroline Pagnossim Boeira ◽  
Marcela Bromberger Soquetta ◽  
Jamila dos Santos Alves ◽  
Ernesto Hashime Kubota ◽  
...  
Keyword(s):  
Design Methodology ◽  
Nutritional Assessment ◽  
Sensory Properties ◽  
Gluten Free ◽  
Main Ingredient ◽  
Sensorial Analysis ◽  
Content Type ◽  
Significant Difference ◽  
Nutritional Characteristics ◽  
Sensorial Analyses

Purpose The preparation of gluten-free bread is a challenge because the gluten in wheat is the main ingredient responsible for the retention of the gases which cause the bread to rise. This paper aims to develop breads without gluten and fat, and to evaluate the effect of the use of chia (Salvia hispanic L.) flour on the physical, nutritional and sensory properties of the breads that were developed. Design/methodology/approach Three formulations were developed with different proportions of chia flour (2.5, 5 and 7.5%), fat-free. Physiochemical, sensorial analyses were performed out in three repetitions (p-value = 0.05). Findings In the nutritional assessment, the results demonstrated that 7.5% chia showed higher levels of protein (15.1%), lipid (3.43%), total fiber (7.04%) and lower levels of carbohydrates (22.49%), with significant nutrient enrichment (p-value = 0.05). The specific volume and the elevation of the dough decreased with the addition of chia flour. In the sensorial analysis, the treatments with chia flour showed no significant difference regarding flavor and texture when compared to the standard. The addition of chia improved the nutritional and sensory properties (p-value = 0.05). Originality/value The chia flour improved the nutritional characteristics of the breads, in the reduction of carbohydrate content and the increase in the content of protein, minerals and fiber. It presented good acceptability and good nutritional characteristics, providing a healthy and differentiated variation in this segment.

scholarly journals Subnational institutions and open innovation: evidence from China

2017 ◽  
Vol 55 (9) ◽  
pp. 1942-1955 ◽  
Author(s):  
Fei Sun ◽  
Junjie Hong ◽  
Xiuying Ma ◽  
Chengqi Wang
Keyword(s):  
Open Innovation ◽  
Design Methodology ◽  
Emerging Market ◽  
Market Development ◽  
Data Set ◽  
Content Type ◽  
Complementary Effect ◽  
Performance Consequences ◽  
Prior Literature ◽  
External Actors

Purpose The purpose of this paper is to examine how subnational institutions within a country explain the performance consequences of open innovation (OI) in emerging market enterprises (EMEs). Design/methodology/approach The paper conducts a regression analysis by using a novel panel data set comprising of 438 innovative Chinese firms over the period of 2008-2011. Findings The authors show that although on average openness to external actors improves innovation performance this effect is pronounced for EMEs that operate in subnational regions with a higher level of intellectual property rights (IPR) enforcement and of factor market development. The findings point to the context-dependent nature of OI strategy and the complementary effect of institutional parameters in emerging markets and help to reconcile the contrasting findings regarding the effect of OI in the prior literature. Originality/value This paper extends the literature on OI by suggesting that the analysis of the performance consequences of OI strategy should go beyond the nexus between OI and firm performance, and instead, focus on subnational-specific institutions, such as region-specific IPR enforcement, factor market development and intermediation market development, that may facilitate or constrain the effect of OI model.

scholarly journals Social exclusion: re-examining its conceptual relevance to tackling inequality and social injustice

2015 ◽  
Vol 35 (9/10) ◽  
pp. 600-617 ◽  
Author(s):  
Clive Sealey
Keyword(s):  
Social Justice ◽  
Social Policy ◽  
Social Exclusion ◽  
Design Methodology ◽  
Value Added ◽  
Social Injustice ◽  
Critical Approach ◽  
Content Type ◽  
It Value ◽  
Significant Difference

Purpose – The purpose of this paper is to rationalise the continued conceptual utility of social exclusion, and in so doing addresses the prevailing question of what to do with it. This is relevant from social exclusion’s declining relevance in contemporary UK social policy and academia, where its consideration as a concept to explain disadvantage is being usurped by other concepts, both old and new. Design/methodology/approach – The paper analyses criticisms of limitations of social exclusion which have typically centred on the operationalisation of the concept, but the author will argue that there are distinctive operationalisation and conceptual strengths within social exclusion which make it value-added as a concept to explain disadvantage. Specifically, there will be an analysis of both New Labour’s and the present Coalition government’s conceptualisation of the term in policy in relation to work. Findings – The analysis highlights the significant difference that a focus on processes rather than outcomes of social exclusion can make to our understanding of inequality and social injustice, and locates this difference within an argument that social exclusion’s true applied capabilities for social justice requires a shift to a conceptualisation built on the processes that cause it in the first place. Originality/value – The paper acts as a rejoinder to prevailing theoretical and political thinking of the limited and diminishing value of social exclusion for tackling disadvantage. In particular, the paper shows how social exclusion can be conceptualised to provide a critical approach to tackling inequality and social injustice, and in doing so foregrounds the truly applied capabilities of social exclusion for transforming social justice.

Relationship between corporate governance and audit switching: Iranian evidence

2017 ◽  
Vol 59 (5) ◽  
pp. 673-686
Author(s):  
Mahdi Salehi ◽  
Ali Asgar Alinya
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Listed Companies ◽  
Panel Analysis ◽  
Cross Sectional ◽  
Content Type ◽  
Effective Factors ◽  
Dependent Variables ◽  
The Relationship

Purpose This paper aims to investigate the relationship between corporate governance and auditors switching of listed companies on the Tehran Stock Exchange. Design/methodology/approach To achieve the objectives of this study, 12 hypotheses developed which and tests the relationship between corporate governance and selecting and switching auditors in Iran during 2008-20014 by selecting 116 listed companies on the Tehran Stock Exchange. To test the hypotheses, the cross-sectional time-series nature of research variables data, panel analysis is used. Also, to investigate the relationship between independent and dependent variables in each year, the logistic regression is used. Findings The results of the study indicate that there is a weak relationship between corporate governance auditors switching. Therefore, it could be concluded that there are some other effective factors on which selecting and switching auditors in studied companies are more dependent. Originality/value The current study is almost the first study which has been conducted in Iran, so the results of the study may be beneficial to the Iranian conditions as well as other developing countries.

Audit committee effectiveness and financial reporting timeliness

2018 ◽  
Vol 9 (1) ◽  
pp. 34-55 ◽  
Author(s):  
Ahmed Atef Oussii ◽  
Neila Boulila Taktak
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Emerging Market ◽  
Listed Companies ◽  
Audit Committees ◽  
Future Research ◽  
Governance System ◽  
Content Type ◽  
Financial Expertise ◽  
The Impact

Purpose The purpose of this paper is to investigate whether there is any relationship between the effectiveness of an audit committee and the financial reporting timeliness of Tunisian listed companies as proxied by external audit delay (AD). Analysis focuses on five audit committee characteristics: authority, financial expertise, independence, size and diligence. Design/methodology/approach Empirical tests address 162 firm-year observations drawn from Tunisian listed companies during 2011-2013. Findings Multivariate analyses indicate that audit committees with members who have financial expertise are significantly associated with shorter AD. Thus, the results suggest that audit committee financial expertise contributes to the improvement of financial statements’ timeliness. Research limitations/implications The audit committee attributes examined in this study were based on DeZoort et al. (2002) framework. There could be other aspects of audit committee effectiveness such as audit committee tenure and audit committee chair characteristics, which were not addressed in the present study. Thus, future research may consider and examine these other components of audit committee effectiveness. Practical implications Findings have managerial implications. Companies can re-look into how to further improve audit committee composition in order to enhance the timeliness of financial reporting. The issues of audit committee effectiveness and timely reporting also affect regulators and policy makers since they need to play a role in the establishment of effective audit committees and the improvement of financial reporting timeliness. Originality/value This study is one of few that have examined the impact of audit committee effectiveness on ADs in an emerging market country. Findings lend credence to the belief that audit committee members’ financial expertise enhances the quality of financial reporting by firms in a North African market criticized for the lack of maturity of its corporate governance system (Klibi, 2015; Fitch Ratings, 2009).

A study of consumers’ pre-purchase evaluation of apparel products in Ethiopia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Berihun Bizuneh ◽  
Shalemu Sharew Hailemariam ◽  
Selam Tsegaye
Keyword(s):  
Factor Analysis ◽  
Developing Country ◽  
Social Factors ◽  
Design Methodology ◽  
Online Survey ◽  
Educational Background ◽  
Demographic Variables ◽  
Content Type ◽  
Significant Difference ◽  
Garment Fit

PurposeThe purpose of this paper is to explore pre-purchase apparel evaluation cues and examine the effect of demographic variables empirically in the context of a developing country. The initiation for the study was driven by the absence of such prior research and supplemented by the big market opportunity for clothing products in the country under investigation.Design/methodology/approachA self-administered online survey was used for data collection. Demographic questions, 23 apparel measurement items composed of 17 product-based and 6 sustainability-based items, and an open-ended question were included in the questionnaire. Factor analysis was used for dimension reduction and one-way multivariate analysis of variance (MANOVA) for hypotheses testing.FindingsGarment fit, design features, colour, fabric type and seasonality are the five important characteristics most Ethiopian consumers consider while buying apparel products. Factor analysis resulted in five important factors used for pre-purchase apparel evaluation amongst which the design and extrinsic cue is found to be the most important. Environmental factors in the apparel industry got higher emphasis than social factors. While age and educational background made differences in apparel evaluation, gender did not show a significant difference.Originality/valueThe paper provides a founding insight in exploring apparel evaluation cues by considering product- and sustainability-based cues in a developing country context. It also examines the effect of three demographic variables which are rarely studied in such combination.

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