CEOs’ accounting-based attributes and earnings management strategies under mandatory IFRS adoption

2018 ◽  
Vol 19 (4) ◽  
pp. 608-625 ◽  
Author(s):  
Amel Kouaib ◽  
Anis Jarboui ◽  
Khaireddine Mouakhar
Keyword(s):  
Earnings Management ◽  
Small Sample Size ◽  
Small Sample ◽  
Moderating Effect ◽  
Audit Committees ◽  
Content Type ◽  
Ifrs Adoption ◽  
Experience Education ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to focus on the moderating effect of mandatory International Financial Reporting Standards (IFRS) adoption on the relationship between chief executive officer (CEO) experience/education and earnings management in European companies. Design/methodology/approach Data from a sample of 302 European firms listed on Stoxx Europe 600 index and 596 CEOs from 2000 to 2014 are used to test the moderation model using moderation regression analysis. Findings Evidence reveals that CEO’s accounting-based attributes are negatively associated with accruals-based earnings management and positively associated with real earnings management (REM). Further, mandatory IFRS adoption significantly moderates the impact of CEO’s accounting-based traits on earnings-management activities. Research limitations/implications A small number of European firms were studied and, given the long study period, many firms with missing data were eliminated. To avoid a small sample size, countries with few observations were included, which leads to an uneven distribution between observations per country. Practical implications Findings from this paper can help: European firms to consider demographic traits when recruiting or promoting executives; the IASB to improve enforcement mechanisms and make IFRS implementation mandatory; and audit committees to effectively monitor REM. Originality/value This study is unique in providing European evidence for the moderating effect of mandatory IFRS adoption on the relationship between CEOs’ accounting experience/education and earnings management activities. This paper is also relevant as it addresses the effectiveness and efficiency of accounting literates.

The impact of placements on students’ self-efficacy

2014 ◽  
Vol 4 (3) ◽  
pp. 228-241 ◽  
Author(s):  
Matt Edwards
Keyword(s):  
Self Efficacy ◽  
Large Scale ◽  
Positive Impact ◽  
Small Sample Size ◽  
Small Sample ◽  
Content Type ◽  
Work Placement ◽  
Before And After ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between work placements and employability, through an analysis of the impact of a work placement on students’ self-efficacy. Design/methodology/approach – The basis of this paper is a large-scale work-based learning module at the University of Birmingham, the “Professional Development Module”. Students completed questionnaires both before and after they undertaken their placements and the results from the questionnaires were compared. These results were then combined with the results of semi-structured interviews undertaken with students. Findings – The paper's findings support the view that a work placement has a positive impact on students’ self-efficacy, especially in relation to their confidence in making applications and/or attending interviews, and in articulating their skills and strengths. Research limitations/implications – While the relatively small sample size means that the paper's conclusions must remain provisional, it highlights the need for careers practitioners to encourage students to engage in critical self-reflection. The paper suggests that it is important for careers practitioners and researchers to engage in more collaborative projects in order for a fully rounded picture of the relationship between placements and employability to emerge. The paper shows that more research is needed into the relative impact of short- and long-term placements. Originality/value – The paper demonstrates the value of assessing students’ views both before and after their work placements so that these views can be compared directly.

Entrepreneurial leadership and team creativity: the roles of team psychological safety and knowledge sharing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Shahid Mehmood ◽  
Zhang Jian ◽  
Umair Akram ◽  
Zubair Akram ◽  
Yasir Tanveer
Keyword(s):  
Knowledge Sharing ◽  
Small Sample Size ◽  
New Ventures ◽  
Psychological Safety ◽  
Small Sample ◽  
Entrepreneurial Leadership ◽  
Team Creativity ◽  
Content Type ◽  
The Impact ◽  
The Relationship

PurposeCreativity is vital for the innovation and survival of organizations. The present study aimed to explore the impact of entrepreneurial leadership on team creativity through team psychological safety and knowledge sharing. Social learning theory (SLT) was used to explore the relationships in this study.Design/methodology/approachData were collected from the manufacturing sector of Pakistan, and a sample composed of 70 team leaders and 378 team members was used.FindingsThe results showed the positive influence of entrepreneurial leadership on team creativity. Furthermore, team psychological safety and knowledge sharing mediated the relationship between entrepreneurial leadership and team creativity. Finally, team psychological safety and knowledge sharing sequentially mediated the relationship between entrepreneurial leadership and team creativity.Research limitations/implicationsA small sample size and cross-sectional research design may hinder the generalizability of the findings. The findings suggest that leaders should practice entrepreneurial leadership principles to develop team creativity. Organizations should provide training and development programmes for their leaders and employees to learn the importance of entrepreneurial behaviors and how to explore and exploit entrepreneurial opportunities.Originality/valueThis study extends the leadership and creativity literature by exploring the role of entrepreneurial leadership in developing team creativity. Furthermore, this study was conducted in established organizations to explore entrepreneurial leadership's influence on team creativity. In contrast, earlier scholars recognized entrepreneurial leadership as a leadership style of entrepreneurs and thus examined its implications in new ventures or small and medium enterprises.

A cross-country comparison of green initiatives, green performance and financial performance

2018 ◽  
Vol 56 (5) ◽  
pp. 1008-1032 ◽  
Author(s):  
Fang Chen ◽  
Thomas Ngniatedema ◽  
Suhong Li
Keyword(s):  
Financial Performance ◽  
Positive Impact ◽  
Small Sample Size ◽  
Small Sample ◽  
Content Type ◽  
Green Performance ◽  
The World ◽  
The Usa ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between green initiatives, green performance, and a firm’s financial performance in the world. The existing literature on environmental initiatives and their impacts is limited to the context of a particular country. This gap points to a lack of clarification of variations in environmental regulation and in economic disparity which may affect the impact of green initiatives on green performance and on financial performance. Design/methodology/approach Data on the world top 500 publicly traded companies are collected from Compustat, a database of financial, statistical and market information on global companies, and from Newsweek, an information gatekeeper that enables consumers to access a list of environmentally friendly companies. The paper adopts linear regression to test the relationships between variables. Findings The results show that green initiatives have a positive impact on green performance, which in turn has a positive impact on financial performance. However, the impact of green initiatives varies by country. The study revealed that companies in European countries and Canada lead in the green initiatives and green performance, followed by the USA and Japan. China and Hong Kong lag behind compared to other countries. Research limitations/implications The small sample size in some of the countries used in this study may impact the validity of the results. Practical implications This study suggests that companies that seek financial benefits of pursuing green initiatives should have a long-term orientation when implementing these initiatives and should consider the country where they operate. Originality/value The current study provides a global understanding of the relationship between green initiatives, green performance, and financial performance, and contributes to the literature by highlighting variation among countries and by year.

When do job insecure employees adapt to change?

2019 ◽  
Vol 25 (3) ◽  
pp. 271-286 ◽  
Author(s):  
Kristi N. Lavigne ◽  
Victoria L. Whitaker ◽  
Dustin K. Jundt ◽  
Mindy K. Shoss
Keyword(s):  
Job Insecurity ◽  
Small Sample ◽  
Adaptive Performance ◽  
Work Behaviors ◽  
Content Type ◽  
Work Tasks ◽  
Main Effect ◽  
Low Levels ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between job insecurity and adaptive performance (AP), contingent on changes to core work tasks, which we position as a situational cue to employees regarding important work behaviors. Design/methodology/approach Employees and their supervisors were invited to participate in the study. Supervisors were asked to provide ratings of employees’ AP and changes to core tasks; employees reported on job insecurity. Findings As predicted, changes to core tasks moderated the relationship between job insecurity and AP. Job insecurity was negatively related to AP for those experiencing low levels of change, but was not related to AP for those experiencing high levels of change. Counter to expectations, no main effect of job insecurity was found. Research limitations/implications This study employed a fairly small sample of workers from two organizations, which could limit generalizability. Practical implications The study identifies changes to core tasks as a boundary condition for the job insecurity–AP relationship. Findings suggest that organizations may not observe deleterious consequences of job insecurity on AP when changes to core tasks are high. Originality/value Few researchers have examined boundary conditions of the impact of job insecurity on AP. Furthermore, inconsistent findings regarding the link between job insecurity and AP have emerged. This study fills the gap and expands upon previous research by examining changes to core tasks as a condition under which job insecurity does not pose an issue for AP.

Improving new product development performance by risk management

2016 ◽  
Vol 31 (3) ◽  
pp. 418-425 ◽  
Author(s):  
Mehran Salavati ◽  
Milad Tuyserkani ◽  
Seyyede Anahita Mousavi ◽  
Nafiseh Falahi ◽  
Farshid Abdi
Keyword(s):  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Small Sample Size ◽  
New Product ◽  
Small Sample ◽  
Content Type ◽  
Total Performance ◽  
The Relationship ◽  
Npd Performance

Purpose The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance. Design/methodology/approach Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance. Findings Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance. Research limitations/implications First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings. Practical implications The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization. Originality/value Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.

Audit committee characteristics and the moderating effect of Malaysian code of corporate governance on IPO liquidity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.

The impact of cloud-enabled process integration on supply chain performance and firm sustainability: the moderating role of top management

2018 ◽  
Vol 23 (6) ◽  
pp. 500-517 ◽  
Author(s):  
Himanshu Shee ◽  
Shah Jahan Miah ◽  
Leon Fairfield ◽  
Nyoman Pujawan
Keyword(s):  
Supply Chain ◽  
Information And Communication Technologies ◽  
Structural Equation ◽  
Moderating Effect ◽  
Top Management ◽  
Supply Chain Performance ◽  
Unique Contribution ◽  
Content Type ◽  
The Impact ◽  
The Relationship

PurposeTheorising from the intersection of supply chain and information systems (IS) literature, this study aims to investigate supply chain integration (SCI) as a multidimensional construct in the context of cloud-based technology and explores the effect of cloud-enabled SCI on supply chain performance, which will eventually improve firm sustainability from a resource-based view (RBV). In addition, the moderating effect of top management is explored.Design/methodology/approachUsing cross-sectional survey data collected from a sample of 105 Australian retail firms, this study used structural equation modelling to test the hypothesised relationship of cloud-enabled SCI with performance in a theoretical model.FindingsResults show that cloud-based technology has positive effect on SCI, and the cloud-enabled SCI is positively related to supply chain performance which eventually influenced firm sustainability. Further, top management intervention moderates the relationship between supplier and internal integration with supply chain performance. But it is found to have no moderating effect on the relationship between customer integration and supply chain performance.Practical implicationsRecognising the potential benefits of emerging cloud-based technologies reported in this study, retail managers need to understand that higher order SCI requires the support of cloud-based technology to improve supply chain performance and firm sustainability.Originality/valueThis research extends prior research of information and communication technologies-enabled SCI and its effect on supply chain performance which overly remains inconsistent. In addition, IS literature abounds with discussion on cloud computing technologyper se, and its adoption in supply chain is overly rhetoric. This study fills this gap by conceptualising the multiple dimensions of SCI enabled by cloud-based technology and the way it affects supply chain and firm sustainable performance. Investigating SCI in context of cloud-based technology is a unique contribution in this study. The moderating effect of top management in this decision also adds to the current body of literature.

The role of audit committees in mitigating earnings management: evidence from Jordan

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh ◽  
Modar Abdullatif ◽  
Beatriz Aibar-Guzmán
Keyword(s):  
Developing Countries ◽  
Earnings Management ◽  
Audit Committee ◽  
Discretionary Accruals ◽  
Least Square ◽  
Audit Committees ◽  
Institutional Setting ◽  
Content Type ◽  
The Impact

PurposeThis study examines the relationship between audit committees (ACs) and earnings management (EM) in the developing country context of Jordan. In particular, it investigates whether audit committee attributes, including their size, independence, expertise and meetings, are able to restrict discretionary accruals as a proxy for EM.Design/methodology/approachThe generalized least square (GLS) regression was used to study the association between audit committee attributes and discretionary accruals, as a proxy of EM, for a sample of industrial firms listed on the Amman Stock Exchange (ASE) during the period 2012–2020. Data were obtained from the firms' annual reports.FindingsThe regression results indicate that audit committee independence is the only audit committee attribute that seems to improve the effectiveness of ACs, in that it is significantly associated with less EM, while other audit committee attributes that were tested do not show statistically significant associations.Research limitations/implicationsIn emerging markets, like Jordan, ACs may not be an efficient monitoring mechanism; therefore, it can be argued that the prediction made by the agency theory about the role of ACs in mitigating opportunistic EM activities does not necessarily apply to all contexts.Practical implicationsA better understanding of audit committee effectiveness in developing countries could help regulators in these countries assess the impact of planned corporate governance (CG) reforms and to better monitor and enhance the performance of ACs.Social implicationsIn a setting characterized by closely held companies, high power distance and low demand for high-quality CG mechanisms, this study contributes to understanding how this business system operates, and how improving CG mechanisms could be successful in such cultures.Originality/valueThis study investigates the under-researched relationship between audit committee characteristics and EM in developing countries. In so doing, it aims to provide new insights into this relationship within the developing context case of Jordan, including if and how the institutional setting influences this relationship.

The relationship between food heritage and clan culture: is “familiness” the missing link in SMEs?

2020 ◽  
Vol 123 (1) ◽  
pp. 337-354
Author(s):  
Fahimeh Khatami ◽  
Alberto Ferraris ◽  
Paola De Bernardi ◽  
Valter Cantino
Keyword(s):  
Structural Equation ◽  
Small Sample Size ◽  
Methodological Approach ◽  
Strong Relationship ◽  
Small Sample ◽  
Equation Modeling ◽  
Content Type ◽  
Clan Culture ◽  
The Relationship

PurposeThis paper empirically tests the relationship between food heritage, familiness, and clan culture, thus, highlighting the pivotal role of familiness in building robustly competitive food firms based on clan culture and food heritage.Design/methodology/approachThe methodological approach adopted is based on a quantitative analysis with data from one eco-tourist city in Iran (Torqabeh). In this regard, we developed a structured questionnaire surveying 98 small- and medium-sized enterprises (SMEs) operating in the food industry. We then used partial least squares structural equation modeling (PLS-SEM) to carry out the analysis.FindingsThe results indicate the significant positive relationship between food heritage and clan culture, and highlight the role of familiness as a strong mediator, which is also associated with a strong relationship between food heritage and clan culture.Research limitations/implicationsIn the present study, the main limitation was linked to the small sample size and data collection, which took place in only a single city; however, further research could overcome this limitation by investigating SMEs from a heterogeneous geographical context.Originality/valueThe value of this research relates to studies that have examined food heritage as a possible antecedent of familiness. Moreover, the novelty of this research is to study the concept of familiness in improving resource-based views and organizational theories.

The moderating effect of operator type: the impact of information technology (IT) expenditures on hotels’ operating performance

2020 ◽  
Vol 32 (8) ◽  
pp. 2519-2541
Author(s):  
Nan Hua ◽  
Arthur Huang ◽  
Marcos Medeiros ◽  
Agnes DeFranco
Keyword(s):  
Information Technology ◽  
Operating Performance ◽  
Moderating Effect ◽  
Holistic View ◽  
Content Type ◽  
Operating Income ◽  
Operator Type ◽  
Research Outcome ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine how operator type moderates the relationship between hotel information technology (IT) expenditures and operating performance. Design/methodology/approach By adapting and extending O’Neill et al.’s (2008) and Hua et al.’s (2015) research, this study constructed an empirical model and tested proposed hypotheses, with Newey and West (1994) errors computed to accommodate potential heteroscedasticity and autocorrelation issues. Findings Operator type moderates the impact of hotel IT expenditures on operating performance. In particular, it appears that the operator type of franchising exerts a stronger moderating effect compared with other operator types explored. Practical implications This study, as the first of its kind, shows that the choice of operator type shapes how a hotel can effectively use IT expenditures to improve operating performance. This finding can be beneficial for hotel owners when making operator type decisions. In addition, operator type moderates the direct impact of IT expenditures on revenues and gross operating income. This study’s results show that franchised hotels seem to use IT expenditures more effectively compared with independently owned hotels. Originality/value This study contributes both theoretically and practically to understand how operator type moderates the relationship between IT expenditures and hotel performance. The research outcome provides a more holistic view that governs the relationships between IT expenditures, operator type and operating performance.

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