Social norms, organizational learning and bribes in emerging economies: a study of foreign invested firms in Vietnam

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Binh T.T. Vuong ◽  
Thang V. Nguyen ◽  
Ngoc T. Phan
Keyword(s):  
Organizational Learning ◽  
Social Norms ◽  
Home Country ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Content Type ◽  
Local Leadership ◽  
Changing Roles ◽  
General Practices ◽  
The Impact

Purpose Drawing from institutional theory and organizational learning perspectives, the purpose of this paper is to examine how social norms of corruption in home countries and those in host localities influence firm bribery behavior. It also investigates factors that moderate the influence of these norms. Design/methodology/approach The study is based on survey data of foreign invested firms (FIFs) in Vietnam, conducted by the Vietnam Chamber of Commerce and Industry between 2010 and 2018 along with Transparency International’s Corruption Perception Index. The authors run ordinary least squares regressions to test the hypotheses. Findings The study provides evidence that social norms of corruption in both home countries and host localities influence firms’ bribery behavior, but their effects are moderated by different sets of factors. Specifically, the use of local leadership augments the impact of the host province’s corruption norms on the firm’s bribe payments. By contrast, the relationship between the home country’s corruption norms and a FIF’s bribe payment is weaker if local leadership is used, and stronger if the FIF’s home country belongs to the Organization for Economic Co-operation and Development. Research limitations/implications Repeated cross-sectional data do not allow us to genuinely keep track of the changing roles of home country and host province corruption norms over time.[AQ2] In addition, the use of perception measures for corruption norms is subject to potential biases. Practical implications As the hiring of local executives weakens the impact of the home country’s norms which are embedded in the MNCs’ general practices, a stronger learning measure and regular review of the headquarters’ policies and practices is needed to ensure the overseas branch’s compliance. For policymakers, it is critical to recognize that local corruption plays a role in shaping FIFs’ bribery behavior. Originality/value While the effect of social norms of corruption on firm bribery behavior has been recognized, to the best of the authors’ knowledge, this is the first study that examines the learning processes FIFs may take to make sense of and cope with these norms, and also the first one to specify factors that moderate the influence of these norms.

The effect of the financial crisis on audit quality: European evidence

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria I. Kyriakou
Keyword(s):  
Financial Crisis ◽  
Audit Quality ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Cross Sectional ◽  
Accounting Firms ◽  
Content Type ◽  
Financial Firms ◽  
The Impact ◽  
Big Four

Purpose This paper aims to examine the impact of the recent financial crisis on audit quality by analysing discretionary accruals. Design/methodology/approach This study considers a sample of German, French, Italian and Spanish non-financial firms from 2005 to 2013 to investigate the auditor’s independence. It uses a cross-sectional and time-series ordinary least squares regression model to control for other predictors of the auditor’s independence when the financial crisis produces a decrease in audit quality. Findings The proportion of the non-financial firms having lower audit quality was higher during the financial crisis. In addition, during the crisis auditors were less likely to provide a higher audit quality for these non-financial firms. The level of audit quality returned to normal levels during the post-crisis years when the crisis had ceased. Originality/value These findings contribute to the literature on the impact of economic and financial changes on audit quality. In addition, this research finds that the Big Four accounting firms provide a higher audit quality in different circumstances from non-Big Four accounting firms, and that audit quality decreased during the crisis and returned to normal in the post-crisis period.

Social enterprises and organizational learning in South Africa

2018 ◽  
Vol 10 (1) ◽  
pp. 117-133 ◽  
Author(s):  
Boris Urban ◽  
Elena Gaffurini
Keyword(s):  
South Africa ◽  
Organizational Learning ◽  
Social Innovation ◽  
Emerging Market ◽  
Cross Sectional Study ◽  
Social Enterprises ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to determine the relationship between different dimensions of organizational learning capabilities (OLC) and levels of social innovation in social enterprises. Design/methodology/approach The empirical strategy adopted is a cross-sectional study based on primary survey data. Following a survey of social enterprises in South Africa, statistically analysis is conducted using regression analyses to test the study hypotheses. Findings The findings show that the OLC dimensions of knowledge conversion, risk management, organizational dialogue and participative decision-making all have a significant and positive relationship with social innovation. Research limitations/implications In many emerging economies, the notion of organizational learning appears to have considerable potential relevance, particularly as African countries are moving toward knowledge-based economies. By focusing on OLC, it is anticipated that social enterprises can configure and leverage the different factors in ways that enable them to overcome the constraints of the complex and unpredictable environments and increase their levels of social innovation. Originality/value The paper provides a pioneering empirical investigation into the impact that OLC has on levels of social innovation, in an under-researched emerging market context.

Impact of financial inclusion on technical efficiency of paddy farmers in Bangladesh

2017 ◽  
Vol 77 (4) ◽  
pp. 484-505 ◽  
Author(s):  
Sonia Afrin ◽  
Mohammed Ziaul Haider ◽  
Md. Sariful Islam
Keyword(s):  
Technical Efficiency ◽  
Ordinary Least Squares ◽  
Financial Inclusion ◽  
Stochastic Production Frontier ◽  
Cross Sectional ◽  
Content Type ◽  
Southwest Region ◽  
Stochastic Production ◽  
Paddy Farmers ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of financial inclusion on the enhancement of paddy farmers’ technical efficiency (TE). The impact was evaluated rigorously from different dimensions which could be useful in the policy discussion for enhancing efficiency in utilizing productive resources. Design/methodology/approach A cross-sectional data of randomly selected 120 paddy farmers from Khulna district in the Southwest region of Bangladesh were collected for this study. Initially, a stochastic production frontier approach was used for estimating farmers’ TE. Thereafter, ordinary least squares and quantile regression models were applied for unveiling the existing relationship between TE and various dimensions of financial inclusion after controlling all other socio-economic characteristics. Findings The study findings revealed that farmers were around 86 percent technically efficient and amongst them, credit takers were more efficient than non-credit takers. A non-monotonic relationship between TE and amount of credit was observed where TE was maximized at amount around 20,000 Bangladeshi Taka (USD255), a medium credit in terms of its amount. In addition, credit literacy was identified as a significant factor for improving TE. Though difference in the choice of sources for accessing credit had little impact on mean TE, its effect was found significantly higher for low scored technically efficient farmers compared to high scored farmers. Practical implications The policy toward widening the coverage of financial inclusion would be more effective than providing larger amount of credit to a limited number of farmers for improving their TE. Originality/value Such an in-depth assessment of the impact of financial inclusion on TE is probably the first effort in the Khulna district of Bangladesh.

The intra business group effects of alliance network extensions

2016 ◽  
Vol 54 (6) ◽  
pp. 1420-1442 ◽  
Author(s):  
I-Fen Chen ◽  
Shao-Chi Chang
Keyword(s):  
Strategic Alliances ◽  
Business Groups ◽  
Abnormal Returns ◽  
Business Group ◽  
Ordinary Least Squares ◽  
Network Effect ◽  
Share Price ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to better understand the influence of business group membership by exploring how actions by a member firm influence other firms in the business group. Specifically, the authors ask two questions in this study: when a member firm forms strategic alliances with partners outside of the business group, how does the alliance influence other members in the business group? Moreover, which types of member firms are more affected than others? Design/methodology/approach – The authors employ standard event-study methodology to examine the stock price responses for the focal and member firms on the announcement of an alliance. Moreover, the authors employ the cross-sectional regression analyses to test hypotheses concerning the impact of alliance, group, and firm characteristics on the cumulative abnormal returns of non-announcing members. All regressions are estimated using ordinary least squares. Findings – The results show that, on average, alliance-announcing member firms experience significantly positive share price responses to announcements of strategic alliances. Moreover, the impact of alliance formation spillover to other non-announcing members in the business group. The authors also find that the influences on the non-announcing members are dissimilar. The non-announcing members are more strongly affected when they are in different industries from the non-member partner, and when the ownership of the business group is more concentrated. Originality/value – This study is to extend the resource complementarities perspective, which may help firms to more effectively configure their network portfolios in order to develop synergies among related network resources. The study thus extends the alliance portfolio literature to the literature on business groups. Since the inter-firm networks within business groups are more complex than those in alliance portfolios, the authors are able to study how the structure of a business, such as ownership concentration, can influence the intra-network effect.

scholarly journals The impact of boardroom internationalisation on online disclosures of S&P 500

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Esam Shehadeh ◽  
Doaa Aly ◽  
Ibrahim Yousef
Keyword(s):  
Firm Value ◽  
Scoring System ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
The Body ◽  
Board Members ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact ◽  
First Time

Purpose The purpose of this study is to analyse the level of online disclosure of firms in the USA and to evaluate the impact of diversity in terms of director nationality (boardroom internationalisation) on online disclosure. Design/methodology/approach The authors apply, for the first time, a new modified scoring system to measure online disclosure levels by securing more detailed information on each of the items in the voluntary disclosure index. Regarding the percentage of foreign board members, unlike in previous research, the authors calculate two additional proxies to more accurately specify the level of international diversity on the board: the Blau Index and the Shannon Index. Moreover, the authors use a cross-sectional model for the sampled non-financial S&P500 firms using both ordinary least squares (OLS) and heteroskedasticity-corrected estimates to analyse the impact of boardroom internationalisation on the level of online disclosure. Findings The findings reveal that the average online disclosure level for the sample in question is 64% for the 0–1 index and 57% for the 0–4 index. In addition, the results of the regression analysis confirm the study’s proposed hypothesis, which is that the presence of international board members correlates with an improvement in the level of online disclosure. This can be attributed to the fact that foreign directors bring unique skills and knowledge from their home countries and thus, increase board discussion, creativity and innovation, which has a positive impact on the level of online disclosure. Research limitations/implications Financial firms are subject to capital requirement regulations; consequently, disclosure practices can be influenced. Therefore, these firms were excluded from the sample of the study. Originality/value This research contributes to the body of literature on nationality diversity of firm boards and corporate online disclosure in several respects. Firstly, the study adds an international dimension to the existing literature. Secondly, this study provides new evidence that foreign diversity on the board can improve firm value, insofar as the corresponding enhancement of online disclosure leading to positive capital market implications. Thirdly, the authors use, for the first time, a new scoring system approach to measure the level of online disclosure. Finally, it contributes to the corporate governance literature by basing its analysis on a multi-theoretical approach.

The impact of changes in regulations on Malaysian IPOs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rasidah Mohd-Rashid ◽  
Ahmad Hakimi Tajuddin ◽  
Karren Lee-Hwei Khaw ◽  
Chui Zi Ong
Keyword(s):  
Initial Public Offering ◽  
Ordinary Least Squares ◽  
The Body ◽  
Quadratic Term ◽  
Cross Sectional ◽  
Content Type ◽  
Body Of Knowledge ◽  
Public Offering ◽  
Logit Regression Model ◽  
The Impact

Purpose This study aims to examine the changes in equity guidelines and initial returns in the Malaysian initial public offering (IPO) market. Design/methodology/approach The study uses cross-sectional data over 16 years from 2000 to 2016. It uses ordinary least squares for the baseline model and incorporates an interaction term, quantile regression, quadratic term, break test and logit regression model for further analysis. Findings The results support the propositions that lockup provisions signal commitment and demand increase initial returns. The revision in the Bumiputera equity requirement means that issuers no longer need to discount offer prices to entice investors. Finally, the revised Sharīʿah-compliance screening requirement ensures that stocks are better in quality and more transparent, leading to a higher demand that drives prices upwards. Research limitations/implications This study’s findings provide insights into how issuers can secure good subscriptions. Besides, policymakers should ensure that firms disclose the required information in their prospectuses. Originality/value This study adds to the body of knowledge on whether and how the regulatory requirements affect IPO initial returns.

Determinants of network effectiveness: evidence from a benchmarking consortium

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tamara Dimitrijevska-Markoski ◽  
Julius A. Nukpezah
Keyword(s):  
Online Survey ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Content Type ◽  
Environmental Support ◽  
Network Effectiveness ◽  
Network Coordination ◽  
Research Gap ◽  
The Right ◽  
The Impact

PurposeThe study investigates the perceived network effectiveness of the Florida Benchmarking Consortium (FBC). It also examines the impact of network coordination, longevity of membership and environmental support on perceived network effectiveness.Design/methodology/approachIt uses a cross-sectional, nonexperimental research design and an ordinary least squares (OLS) multiple regression that employed data from an online survey administered to local government employees from FBC member governments.FindingsThe results show that the FBC moderately meets the expectation of network participants to serve as a platform for exchanging experiences and increasing performance knowledge. However, the network's effectiveness is not dependent on the frequency of interactions among network members, but depends on their interactions with focal egos such as the FBC Executive Director. Contrary to expectations, the longevity of involvement with the network is not associated with perceived network effectiveness. Moreover, network members who perceive the environment as supportive are more likely to positively evaluate the network's effectiveness.Practical implicationsBecause perceived network effectiveness may be improved if the members interact with the right “focal” players, managers should proactively pursue closer connections with knowledgeable network members using additional and more frequent communication. Also, research efforts at identifying the characteristics of the right focal players that contribute to network effectiveness should be pursued.Originality/valueWhile there is extensive attention to the participation of public organizations in networks, less research focuses on network effectiveness examined at the network level. This study addresses this research gap by investigating if the FBC is effective in meeting its network goals.

Do ambient conditions in offices impact learning?

Facilities ◽  
2018 ◽  
Vol 36 (5/6) ◽  
pp. 291-307 ◽  
Author(s):  
Aneetha Rao Kasuganti
Keyword(s):  
Organizational Learning ◽  
Situated Learning ◽  
Cross Sectional Study ◽  
Ambient Conditions ◽  
Cross Sectional ◽  
Content Type ◽  
Physical Environments ◽  
Knowledge Intensive ◽  
Office Environments ◽  
The Impact

Purpose The purpose of this paper is to investigate the relationship between satisfaction with ambient conditions and perceptions of situated learning in knowledge-intensive organizations. The paper argues that satisfaction with ambient conditions facilitates situated learning in open office environments. Design/methodology/approach A cross-sectional study was conducted on 117 professionals from IT and consultancy companies. Hierarchical linear regression was used to analyze the impact of satisfaction with ambient conditions on perceptions of situated learning. Findings Learning that occurs in everyday activities on the job is enhanced by satisfying ambient conditions in the physical environments of open offices. Originality/value The paper contributes to literature on organizational learning by examining aspects of the physical environment as antecedents of organizational learning, thereby providing insights for design and management of office environments to maximize employee outcomes.

Diversity and the Performance of Selected Financial Institutions of Asia

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Shafaque Fatima ◽  
Saqib Sharif
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Age Diversity ◽  
The Impact ◽  
Nationality Diversity

Linking with the business case for diversity, this study examines whether the top management team (TMT) and the board of directors (BODs) diversity has a positive impact on financial institution (FI) performance in select countries of Asia least researched domain. We use data from 119 financial institutions across Asia for the year 2015, initially 1,447 institutions; however, incomplete data was excluded from final analysis. We use three proxies for diversity, that is, nationality diversity, gender diversity, and age diversity of TMT and BODs. To investigate the impact of TMT and BODs diversity, cross-sectional ordinary least-squares estimation is applied, using Return on Average Assets (ROAA%) as a measure of performance.  We find that nationality diversity and age diversity is positively and significantly related to FIs performance. Our evidence indicates that executives and board members with diverse exposure and younger age improve FIs profitability. However, there is no significant relationship between gender and FIs performance.

Racial dissimilarity and diversity climate effect organizational identification

2016 ◽  
Vol 35 (5/6) ◽  
pp. 314-327 ◽  
Author(s):  
Brooklyn Cole ◽  
Raymond J. Jones ◽  
Lisa M. Russell
Keyword(s):  
Organizational Identification ◽  
Turnover Intentions ◽  
Ordinary Least Squares ◽  
Important Variable ◽  
Hierarchical Regression ◽  
Diversity Climate ◽  
Climate Effect ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the relationship between psychological diversity climate (PDC) and organizational identification (OID) when influenced by racial dissimilarity between the subordinate and supervisor. Design/methodology/approach Ordinary least squares hierarchical regression analysis was run for hypotheses testing. Findings Three of the four hypothesized relationships were supported. Support was found for the direct relationship between PDC and OID. The moderator race was significant thus also supported. The moderator of dissimilarity was not supported. Finally the three-way interaction with race and dissimilarity was supported. Practical implications OID is an important variable for overall organizational success. OID influences a wealth of organizationally relevant outcomes including turnover intentions. Considering higher turnover exists for minority employees, understanding how diversity climate perceptions vary by employee race and therefore impact OID differently, helps managers when making decisions about various initiatives. Originality/value This study is the first the authors know of to investigate the impact of dissimilarity on the PDC-OID relationship.

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