Are top executives important for earning management and firm risk? Empirical evidence from selected Chinese firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khurram Iftikhar Bhatti ◽  
Muhammad Iftikhar Ul Husnain ◽  
Abubakr Saeed ◽  
Iram Naz ◽  
Syed Danial Hashmi
Keyword(s):  
Financial Reporting ◽  
Quantitative Data ◽  
Active Role ◽  
Individual Characteristics ◽  
Earning Management ◽  
Top Management ◽  
Firm Risk ◽  
Content Type ◽  
The Individual

PurposeThis study examines the role of the observable and unobservable characteristics of top management on earning management and firm risk in China.Design/methodology/approachThe authors used manager-firm matched panel for 104 non-financial firms listed on the Shanghai Stock Exchange between 2010 and 2018. The authors also trace the persistence of managerial financial styles and their active role across two different firms between which managers switched during the sample period.FindingsThe results show that managers' financial styles indeed influence earning management and firm risk and that this influence differs across different managers. These findings are robust when tested for the persistence and active role of managers. Furthermore, individual characteristics such as age, gender, qualification and experience influence managers' financial styles.Practical implicationsGiven their findings, the authors propose that financial analysts and potential investors should not only depend on quantitative data but also consider the individual characteristics of managers when evaluating firms.Social implicationsThe findings of this study carry serious implications for managers, policymakers and potential investors. The findings assist the external auditors in measuring the risk of material misstatement, the various regulatory bodies to assess the quality of financial reporting and the users of financial statements to evaluate the earnings and make further investment decisions considering not only the quantitative data but also the individual characteristics of top managers.Originality/valueThe current study examines the observable and unobservable characteristics of top management on firm risk and earnings management in Chinese context.

Role of discretionary earning management in corporate governance-value and corporate governance-risk relationships

2020 ◽  
Vol 20 (4) ◽  
pp. 561-581 ◽  
Author(s):  
Affaf Asghar ◽  
Seemab Sajjad ◽  
Aamer Shahzad ◽  
Bolaji Tunde Matemilola
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Firm Value ◽  
Emerging Economy ◽  
Earning Management ◽  
Firm Risk ◽  
Content Type ◽  
Single Study

Purpose Corporate governance (CG) is an ongoing interesting topic getting the attention of market participant, business regulators and researchers in today’s business environment. The purpose of this study is to analyze the moderating role of earnings management on CG-value and CG-risk relationship in the emerging economy of Pakistan. Design/methodology/approach A panel data analysis is used in this study. A panel data of 71 non-financial listed companies of Pakistan for the 2008-2017 period is considered for this study. Secondary data is collected from the annual reports of non-financial firms listed on PSX. Seven econometric equations are developed to test the research hypothesis. Findings The results reveal that CG significantly enhances the firm value and performance measures. Moreover, CG mitigates the practices of earning management and eliminates the risk that develops opportunistic behavior among managers to commit frauds. Practical implications The results of this study suggest that the board of directors (BODs) should intensify their governance role and ensure that the executives perform their duties to maximize the wealth of the shareholders and not engage in any misrepresentation of accounts that may lower the company position and decrease the firm value. Moreover, the managers should be informed about their accountability and acknowledged that at the end of the year, they would be audited by an expert’s auditors for their responsibilities. Concerning regulatory bodies, regulatory authorities should ensure that there must be at least one independent member on the board. The better-governed system reduces both agency conflicts and enhances firm value. Originality/value A number of studies have already been undertaken by multiple investigators to build connection among CG with firm performance, but there is not even a single study in the literature that considers CG, firm value, firm Risk and discretionary earning management as a whole in one model to generalize its results in the emerging economy of Pakistan. A fundamental element of current analyzation process addresses that this is the very first graft of study conducted in Pakistan having combination of four variables together in one revision. There is minimal work that focuses on moderating effects of earning management on the CG-value and CG-risk relationships. This study uses two standard measures of firm performance (i.e. ROA and Tobin’s Q), one proxy of earning management (DEM) and three attributes of CG (board size, audit quality and ownership structure). Previously, researchers have not investigated a model that combines variables (CG as independent and Firm performance and Firm Risk as dependent along with DEM as moderator) in a single study.

Bringing the individual into the co-creation of value

2019 ◽  
Vol 33 (7) ◽  
pp. 904-920 ◽  
Author(s):  
Kumar Rakesh Ranjan ◽  
Stuart Read
Keyword(s):  
Individual Characteristics ◽  
Theoretical Development ◽  
Individual Psychology ◽  
Theoretical Understanding ◽  
Content Type ◽  
Prosocial Orientation ◽  
Psychology Literature ◽  
The Individual ◽  
The Impact

Purpose Despite the increasing prominence of value co-creation (VCC) in extant research, the area of customer co-creation is in its infancy and many aspects are not well-understood. This paper aims to important work from the individual psychology literature with the concept of VCC and offers empirical evidence to untested theoretical claims regarding the role of the individual in VCC. Design/methodology/approach The investigation begins with reviews of the literature of individual psychology and VCC to compare the concepts they use to explain the role of the individual in co-creation. The results of the theoretical development are empirically derived using a multiple vignette-based study to examine relationships between individual characteristics and the activity of VCC. Findings The authors find a positive effect of a customer’s prosocial orientation, perspective taking and involvement on VCC. However, a customer’s extraversion does not affect the degree of VCC. The desire-to-participate mediates these relationships. Research limitations/implications This study offers a foundation for some of the central claims about VCC and encourages a precise understanding of the impact of individual customer psychology in value co-creation with firms. Implications for the service-dominant logic of marketing and core work in psychology are discussed. Practical implications Managers seeking to design co-creative ecosystems need to know about the individuals they are co-creating with. In this research, the authors clearly exemplify how managers can use in practice a theoretical understanding of individuals to better direct the activity of VCC. Originality/value This paper provides both new theoretical knowledge from the parallel literature review and exciting empirical results from the authors’ investigation into phenomenological claims regarding VCC.

MEDIA SOCIALIZATION OF PERSONALITY IN THE CONTEXT OF INMUTATION IN THE MASS MEDIA

2021 ◽  
pp. 104-109
Author(s):  
Chernysh O.O.
Keyword(s):  
Mass Media ◽  
Negative Impact ◽  
Effective Interaction ◽  
Individual Characteristics ◽  
Media Culture ◽  
Active Growth ◽  
Media Space ◽  
The Media ◽  
The Individual

The urgency of the researched problem is connected with the growing role of mass media in modern conditions leads to change of values and transformation of identity of the person. The active growth of the role of the media, their influence on the formation and development of personality leads to the concept of “media socialization” and immutation in the media. The aim of the study is to outline the possibilities of the process of media socialization in the context of immutation in the media. The methods of our research are: analysis of pedagogical, psychological, literature, synthesis, comparison, generalization. The article analyzes the views of domestic and foreign scientists on the problem of immutation in the media and the transformation of the information space. In the context of the mass nature of the immutation of society, the concept of “media socialization” becomes relevant, which is the basis for reducing the negative impact of the media on the individual.The author identifies the lack of a thorough study of the concept of “media socialization” in modern scientific thought. Thus, media socialization is associated with the transformation of traditional means of socialization, and is to assimilate and reproduce the social experience of mankind with the help of new media.The article analyzes the essence of the concepts “media space”, “mass media” and “immutation”. The influence of mass media on the formation and development of the modern personality is described in detail.The study concluded that it is necessary to form a media culture of the individual, to establish safe and effective interaction of young people with the modern media system, the formation of media awareness, media literacy and media competence in accordance with age and individual characteristics for successful media socialization. The role of state bodies in solving the problem of media socialization of the individual was also determined. It is determined that the process of formation of media culture in youth should take place at the level of traditional institutions of socialization of the individual.The author sees the prospect of further research in a detailed analysis and study of the potential of educational institutions as an institution and a means of counteracting the mass nature of the immutation of society.Key words: immutation, media socialization, mass media, media space, information.

scholarly journals Secretion of Anti-Plasmodium Effector Proteins from a Natural Pantoea agglomerans Isolate by Using PelB and HlyA Secretion Signals

2011 ◽  
Vol 77 (13) ◽  
pp. 4669-4675 ◽  
Author(s):  
Dawn C. Bisi ◽  
David J. Lampe
Keyword(s):  
Control Strategies ◽  
Pectate Lyase ◽  
Erwinia Carotovora ◽  
Individual Characteristics ◽  
Pantoea Agglomerans ◽  
Effector Proteins ◽  
World Health ◽  
Content Type ◽  
E Coli ◽  
The Individual

ABSTRACTThe insect-vectored disease malaria is a major world health problem. New control strategies are needed to supplement the current use of insecticides and medications. A genetic approach can be used to inhibit development of malaria parasites (Plasmodiumspp.) in the mosquito host. We hypothesized thatPantoea agglomerans, a bacterial symbiont ofAnophelesmosquitoes, could be engineered to express and secrete anti-Plasmodiumeffector proteins, a strategy termed paratransgenesis. To this end, plasmids that include thepelBorhlyAsecretion signals from the genes of related species (pectate lyase fromErwinia carotovoraand hemolysin A fromEscherichia coli, respectively) were created and tested for their efficacy in secreting known anti-Plasmodiumeffector proteins (SM1, anti-Pbs21, and PLA2) inP. agglomeransandE. coli.P. agglomeranssuccessfully secreted HlyA fusions of anti-Pbs21 and PLA2, and these strains are under evaluation for anti-Plasmodiumactivity in infected mosquitoes. Varied expression and/or secretion of the effector proteins was observed, suggesting that the individual characteristics of a particular effector may require empirical testing of several secretion signals. Importantly, those strains that secreted efficiently grew as well as wild-type strains under laboratory conditions and, thus, may be expected to be competitive with the native microbiota in the environment of the mosquito midgut.

Top management team heterogeneity, corporate social responsibility and firm risk: an emerging country perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Hassan Shakil ◽  
Nor Shaipah Abdul Wahab
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Total Risk ◽  
Firm Risk ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social

Purpose This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk. Design/methodology/approach This study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations. Findings This study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk. Practical implications This study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks. Originality/value Previous studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

Conspicuous consumption of luxury experiences: an experimental investigation of status perceptions on social media

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carolin Siepmann ◽  
Lisa Carola Holthoff ◽  
Pascal Kowalczuk
Keyword(s):  
Social Media ◽  
Personal Characteristics ◽  
Conspicuous Consumption ◽  
Individual Characteristics ◽  
Luxury Goods ◽  
Content Type ◽  
The Status ◽  
Self Actualization ◽  
The Individual ◽  
High Level

Purpose As luxury goods are losing their importance for demonstrating status, wealth or power to others, individuals are searching for alternative status symbols. Recently, individuals have increasingly used conspicuous consumption and displays of experiences on social media to obtain affirmation. This study aims to analyze the effects of luxury and nonluxury experiences, as well as traditional luxury goods on status- and nonstatus-related dimensions. Design/methodology/approach After presenting the theoretical foundation, the authors conduct a study with 599 participants to compare status perceptions elicited by the conspicuous consumption of luxury goods, luxury experiences and nonluxury experiences. The authors investigate whether experiences that are visibly consumed on Instagram are replacing traditional luxury goods as the most important status symbols. Furthermore, the authors examine the effects of the content shown on nonstatus-related dimensions and analyze whether status perceptions differ between female and male social media communicators. Finally, the authors analyze how personal characteristics (self-esteem, self-actualization and materialism) influence the status perceptions of others on social media. Findings The results show that luxury goods are still the most important means of displaying status. However, especially for women, luxury experiences are also associated with a high level of social status. Thus, the results imply important gender differences in the perceptions of status- and nonstatus-related dimensions. Furthermore, the findings indicate that, in particular, the individual characteristics of self-actualization and materialism affect status perceptions depending on the posted content. Originality/value While the research has already considered some alternative forms of conspicuous consumption, little attention has been given to experiences as status symbols. However, with their growing importance as substitutes for luxury goods and the rise of social media, the desire to conspicuously consume experiences is increasing. The authors address this gap in the literature by focusing on the conspicuous display of luxury and nonluxury experiences on social media.

scholarly journals Understanding the role of convenience in consumer food choices: a review article

SURG Journal ◽  
1969 ◽  
Vol 2 (2) ◽  
pp. 40-48 ◽  
Author(s):  
Mary-Ellen Wales
Keyword(s):  
Consumer Demand ◽  
Food Choices ◽  
Home Delivery ◽  
Review Article ◽  
Individual Characteristics ◽  
Western World ◽  
Internet Shopping ◽  
Meal Preparation ◽  
The Individual

It is evident that convenience plays a prominent role in the food choices of today’s consumers. A trend having begun throughout the Western world, consumer demand for convenience foods is now on the rise around the globe. The growing presence of drive-thru windows, microwave dinners, take-out meals, home delivery for groceries and internet shopping, all demonstrate the importance of convenience in determining food choices. Costa et al. have argued that convenience itself determines where, when, why, what, how, and even with whom we eat. Several studies have examined the role that convenience plays in determining food choices, in particular, studies looking at the role of convenience in relation to full meal preparation and/ or consumption.The two areas of investigation will be 1) the dimensions of convenience as a part of the meal preparation and consumption processe, and 2) the individual characteristics of consumers and how they value these dimensions.

scholarly journals Understanding coaching efficacy in education through activity systems: privileging the nuances of provision

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rachel M. Lofthouse ◽  
Anthea Rose ◽  
Ruth Whiteside
Keyword(s):  
Activity Systems ◽  
Content Type ◽  
Coaching Efficacy ◽  
Range Of Functions ◽  
Cultural Historical Activity ◽  
The Individual ◽  
Specific Challenge

PurposeThe research demonstrates the role of activity systems based in Cultural Historical Activity Theory as a means of analysing characteristics and efficacy of specific provisions of coaching in education.Design/methodology/approachThree examples of coaching in education were selected, involving 51 schools in England. The three examples were re-analysed using activity systems. This drew on existing evaluation evidence, gathered through interviews, questionnaires, focus groups and recordings of coaching.FindingsIn each example, the object of the coaching was to address a specific challenge to secure the desired quality of education. Using activity systems it is possible to demonstrate that coaching has a range of functions (both intended and consequential). The individual examples illustrate the potential of coaching to support change in complex and diverse education settings.Research limitations/implicationsThe use of existing data from evaluations means that direct comparisons between examples are not made. While data were collected throughout the duration of each coaching programme no follow-up data was available.Practical implicationsThe analysis of the examples of coaching using activity systems provides evidence of the efficacy of specific coaching provision in achieving individually defined objectives related to sustaining and improving specific educational practices.Originality/valueThe research offers insights into how coaching in education might be better tuned to the specific needs of contexts and the challenges experienced by the individuals working in them. In addition, it demonstrates the value of activity systems as an analytical tool to make sense of coaching efficacy.

scholarly journals Measuring the independence of audit oversight entities: a comparative empirical analysis

2017 ◽  
Vol 30 (2) ◽  
pp. 165-184 ◽  
Author(s):  
Lukas Loehlein
Keyword(s):  
Financial Reporting ◽  
Policy Research ◽  
Essential Elements ◽  
Future Research ◽  
Public Confidence ◽  
Content Type ◽  
Legal Provisions ◽  
Accounting Scandals ◽  
Independent Audit

Purpose Independent audit oversight is a prerequisite for restoring public confidence in financial reporting and auditing after the past accounting scandals and the financial crisis. By analysing and comparing the independence of the audit oversight boards of 27 European Member States and the USA, this study aims to provide insights into the question of how independent “independent” audit oversight boards are. Design/methodology/approach Independence is measured in terms of the organisational compositions and regulatory competences of the audit oversight authorities. The data were collected through an e-mail questionnaire that was sent to all European oversight authorities, and by analysing legal provisions of various regulators. The results are analysed and visualised by a Partial Order Scalogram Analysis with Coordinates, which allows conclusions about the similarities of various systems and their relative levels of independence. Both measurements are then equally combined into one value of material independence, which is used to rank the oversight authorities. Findings Although all countries encounter similar pressures to establish profession-independent oversight systems, this study identifies how differently “independence” has been translated in regulatory outcomes. While all countries claim to possess formal independent oversight bodies, there is a visible gap between countries with comparatively strong independent oversight authorities and systems in which accounting bodies still maintain far-reaching regulatory influence. At the same time, the results question the role of the Public Company Accounting Oversight Board (PCAOB) as the globally perceived benchmark of an entirely independent regulator. Research limitations/implications This study focuses on formal independence rather than de-facto independence. Future research has, therefore, to address how these formal arrangements have evolved in regulatory practice. Practical implications Policy makers around the world perceive independent oversight as one of the essential elements of regulatory reforms aiming at restoring public confidence in the aftermath of past accounting scandals. This study enables the comparison and benchmarking of national specific regulatory designs with other forms of independent oversight. Originality/value Although the role of independent regulation is a recurring theme in accounting research, a systematic and encompassing comparison of the intertwining of audit oversight authorities and the accounting profession has not yet been provided. This study takes a first step towards providing a quantifiable measure of the formal independence of audit oversight authorities by mobilizing concepts, methods and prior findings from the field of public policy research.

scholarly journals Professional development of sustainability competences in higher education

2017 ◽  
Vol 18 (5) ◽  
pp. 697-714 ◽  
Author(s):  
Wim Lambrechts ◽  
Elli Verhulst ◽  
Sara Rymenams
Keyword(s):  
Higher Education ◽  
Professional Development ◽  
Change Process ◽  
Organisational Change ◽  
Constructivist Approach ◽  
Content Type ◽  
Political Analysis ◽  
The Individual ◽  
The University

Purpose This paper aims to provide insights into the relation between professional development (PD) and organisational change processes towards sustainability, with a specific focus on empowerment. Design/methodology/approach The paper builds upon a constructivist approach, combining a literature review, a desk research on key publications and reports and a socio-political analysis to reveal the specific context in Flanders, Belgium. Findings are then connected to earlier insights from research on organisational change for sustainability. Findings The paper provides a number of PD initiatives that focus on sustainability in general and in a single higher education (HE) institution. Framing such initiatives as an organisational change process offers insights on how elements of empowerment are currently incorporated in PD initiatives and how it can strengthen them to lead to the further integration of sustainability competences in HE. Research limitations/implications Limitations are linked with the kind of sources used in the constructivist approach. The analysis only looks at written reports on the topic, albeit it also builds upon the first-hand experiences of educators in the HE institution focused upon in the case. Practical implications There is a need to frame PD initiatives as an organisational change process towards sustainability with specific attention towards empowerment. Without this framing, PD approaches comprise the risk of being left in the margins or being understood as single initiatives without any connection to the bigger picture, i.e. the transition towards sustainability in HE. Social implications Interlinking PD and organisational change provides opportunities to frame the sustainability transition within the university in a wider societal context. Originality/value The paper provides an original contribution to the debate on sustainability competences, as it frames the PD within an organisational context, rather than focusing on the individual role of educators.

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