Assessing the moderating effect of Shariah Board on the relationship between financial performance and accounting disclosure

2018 ◽  
Vol 44 (5) ◽  
pp. 570-589 ◽  
Author(s):  
Hana Ajili ◽  
Abdelfettah Bouri
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Moderating Effect ◽  
Governance Mechanism ◽  
Disclosure Quality ◽  
Empirical Examination ◽  
Accounting Disclosure ◽  
Content Type ◽  
The Relationship

PurposeShariah Board (SB) is considered as a typical corporate governance mechanism for the Islamic banking system. This board takes the responsibilities of assuring the compliance of transactions and operations with Islamic rules and principles. The purpose of this paper is to measure the SB quality and examine its moderating effect on the relationship between financial performance and accounting disclosure quality.Design/methodology/approachThis study used a sample of 90 Islamic banks (IBs) during the period 2010-2014. The accounting disclosure quality and the SB quality were measured using self-developed indices. The moderating effect of the SB on the performance/disclosure relationship was examined using the hierarchical regression analysis.FindingsThe main finding of this study is related to the negative moderating effect of SB quality on the relationship between performance and disclosure. Accordingly, it can be said that the higher the quality of the SB is, the lesser the performance affects the disclosure. This result seems to indicate that at high level of SB quality, even when the performance decreases, the IBs engage in complying with accounting disclosure requirements in order to inform the stakeholders on the real situation of the bank.Research limitations/implicationsThe finding of this study would be of great support to stakeholders and policy makers to make more pressure on IBs to improve the quality of their SB structure and show more compliance with the governance recommendations. As an extension to this study, further research can examine other Islamic governance mechanisms, such as the Internal Shariah Review.Originality/valueTo the authors’ knowledge, there has been a dearth of studies dealing with the empirical examination of the moderating impact of the SB quality on the association between the financial performance and the disclosure quality. Therefore, this study could be considered a tentative contribution to the literature by providing some empirical evidence on the links between these three variables using the moderation regression analysis.

The relationship of individual spirituality and organizational spirituality with meaning and community at work

2017 ◽  
Vol 38 (7) ◽  
pp. 986-1003 ◽  
Author(s):  
Badrinarayan Shankar Pawar
Keyword(s):  
Empirical Support ◽  
Workplace Spirituality ◽  
Moderating Effect ◽  
Direct Effects ◽  
Empirical Examination ◽  
Content Type ◽  
Individual Spirituality ◽  
Effect Model ◽  
Organizational Spirituality ◽  
The Relationship

Purpose The purpose of this paper is to carry out an empirical examination to assess the nature of effects an employee’s individual spirituality and organizational spirituality have on the employee’s experience of meaning in work and community at work facets of workplace spirituality. Design/methodology/approach This paper specifies and examines, using a cross-sectional survey research design, the empirical support for two alternative models – a direct effects model and a moderating effect model – of the likely influences of an employee’s individual spirituality and organizational spirituality on the meaning and community facets of workplace spirituality. Findings The findings indicate considerable support for the direct effects model but no support for the moderating effect model. Within the direct effects model, organizational spirituality had much stronger association than employees’ individual spirituality with the workplace spirituality facets of meaning and community. Research limitations/implications This study may encourage future research to examine other antecedents of workplace spirituality, and the moderators and mediators of the relationship between organizational spirituality and workplace spirituality. Practical implications It suggests to the practitioners that for enhancing employee experiences of workplace spirituality, organizational spirituality implementation is a more effective way than developing employees’ individual spirituality. Social implications The study indicates that employees’ spiritual needs of meaning and community at work can be better fulfilled through organizational spirituality implementation than through individual spirituality development. Originality/value This is an original empirical examination and its value partly comes from its research implications and practice implications.

HC and financial performance with two HRM strategies

2017 ◽  
Vol 66 (4) ◽  
pp. 459-478 ◽  
Author(s):  
Nopadol Rompho
Keyword(s):  
Human Capital ◽  
Regression Analysis ◽  
Financial Performance ◽  
Lead Time ◽  
Design Methodology ◽  
Strategy Choice ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.

Mapping the contours of fairness

2014 ◽  
Vol 1 (2) ◽  
pp. 191-204 ◽  
Author(s):  
Lilian Otaye ◽  
Wilson Wong
Keyword(s):  
Job Satisfaction ◽  
Factor Analysis ◽  
Regression Analysis ◽  
Turnover Intention ◽  
Content Type ◽  
Mediating Role ◽  
The Uk ◽  
The Relationship

Purpose – The purpose of this paper is to explore the contours of fairness by showing how different facets of fairness impact three important employee outcomes (job satisfaction, turnover intention and employer advocacy) and examining the mediating role of quality of management and leadership (through perceptions of both senior management and the quality of exchange with immediate supervisors) in attenuating negative impacts of unfairness on these outcomes. The study extends the concept of fairness beyond the traditional focus on organizational justice and models the mediating role of leadership on the relationship between (un)fairness and the three employee-level outcomes in a sample of employees representative of the UK workforce. Design/methodology/approach – Data were obtained from a nationally representative sample of 2,067 employees in the UK. Exploratory factor analysis and then confirmatory factor analysis is used to refine three unfairness factors and address their dimensionality of the unfairness scale and then multiple regression analysis is used to test a fairness-leadership-employee performance outcome model. Findings – Results of multiple regression analysis revealed that both trust in leadership and leader-member exchange partially mediate the relationship between organizational (un)fairness and job satisfaction, advocacy and turnover intention, respectively. Practical implications – The findings highlight the important role that leaders play in influencing the relationship between perception of unfairness and employee outcomes. This has implications for both theory and practice as it suggests that the pattern of inclusion that leaders create through the relationships that they develop with their followers has a significant impact on the relationship between unfairness and the work outcomes. They not only must manage traditional perceptions of justice, but also the assessments employees make about trust in management judgements and the perceived consequences of such judgements. Originality/value – In an environment where perceptions of unfairness are becoming both more endemic but also more complex, the study shows that both senior leaders and immediate supervisors have important agency in managing negative consequences. Through the measurement of satisfaction, turnover intention and employer advocacy it also provides potential links to link fairness into the engagement literature.

The moderating effects of a board of directors on FDI’s international diversification in Turkey

2015 ◽  
Vol 23 (1) ◽  
pp. 61-88 ◽  
Author(s):  
Kader Şahin ◽  
Seyfettin Artan ◽  
Seda Tuysuz
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
International Diversification ◽  
Moderating Effect ◽  
Moderating Effects ◽  
Outside Directors ◽  
Moderator Variable ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose – This paper aims to investigate the moderating effects of a board of directors on foreign direct investment (FDI)’s international diversification in Turkey. Design/methodology/approach – A sample of Turkish multinational firms with FDI was used. Two different aspects of international diversification were considered: the relationship between international diversification and financial performance and the moderating effect of board composition on the relationship between international diversification and the firm’s financial performance. Firm-level data were obtained from the Istanbul Stock Exchange in Turkey. Findings – The findings reveal that international diversification leads to better financial performance according to market-based measures. On the other hand, this study indicates that the board characteristics have a moderating effect on international diversification and financial performance. Research limitations/implications – The study is based on a sample of publicly listed firms in Turkey, and this restriction limits the generalizability of the findings. Practical implications – The internalization efforts of Turkish FDI have led to better financial performance in terms of market-based measures. The results have stated that the interest of independent outside directors is aligned with lower-risk investment decisions. Independence of independent outside directors in Turkey is interrogated by practitioners or the Capital Markets Board of Turkey. The larger board size which a moderator variable is provided, the wider shareholder value in Turkey is. Social implications – One can understand that the development of market-supporting institutions provides the support for entry to an emerging economy which is inefficient or incomplete markets and highly concentrated family ownership. Originality/value – These findings provide important implications for corporate governance and highlight the need for further research on the role of governance in firm internationalization. This study not only helps to understand how board characteristics affect the choice of international diversification decisions, but the results also allow to assess the performance implications of these choices for a particular period.

Corporate social responsibility practice and corporate financial performance: evidence from Nigeria companies

2015 ◽  
Vol 11 (4) ◽  
pp. 749-763 ◽  
Author(s):  
Aliyu Baba Usman ◽  
Noor Afza Binti Amran
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Financial Data ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to describe the nature and trend of corporate social responsibility (CSR) practices in Nigeria. The second objective of this paper is to examine the relationship between the dimensions of CSR disclosures and corporate financial performance (CFP) among Nigerian listed companies. Design/methodology/approach – To carry out this research, content analysis was conducted to extract CSR and financial data from annual reports of 68 companies listed on the Nigeria Stock Exchange. Financial data were cross-referenced with the NSE Factbook. CSR indexes and financial performance measures were computed for estimation of the regression analysis equation. The percentages were used to describe the nature and trend of CSR practice in Nigeria. This was followed by the hierarchical multiple regression analysis to examine the relationship between CSR and CFP. Findings – The results of the descriptive statistics show that the listed companies used CSR initiatives to communicate social performance to their stakeholders. From the regression analysis, community involvement disclosure, products and customer disclosures and human resource disclosures were found to enhance CFP. The results also reveal a negative relationship between environmental disclosure and CFP, which indicates that disclosure of environmental impact information could be value destroying in Nigeria. Research limitations/implications – The major limitation of this paper is the sample size. Also, failure of corporations to disclose CSR in the annual reports will have a material effect on these findings. Practical implications – The findings of this paper have practical implications on the management of Nigerian companies to re-think and re-strategize their CSR policies that incorporate social and economic performance to improve their CFP. Social implications – This paper has implication on stakeholders in validating the corporate citizenship of corporations based on the level of commitment and participation in CSR initiatives. Also, findings of this paper will alert the enforcement agencies on the status of CSR practices in Nigeria. Government in collaboration with private and public agencies should consider the needs for CSR framework and database to guide social and environmental reporting in the country. Originality/value – The paper has examined the relationship between CSR and CFP based on CSR dimensional approach. Aspect of human resource and products/customers CSR has been neglected in the context of Nigerian CSR research. This paper makes valuable contribution by offering new and fresh insight on these dimensions.

The moderating effects of gender and income between leadership and quality of work life (QWL)

2018 ◽  
Vol 30 (3) ◽  
pp. 1419-1435 ◽  
Author(s):  
Derya Kara ◽  
Hyelin (Lina) Kim ◽  
Gyumin Lee ◽  
Muzaffer Uysal
Keyword(s):  
Leadership Styles ◽  
Transactional Leadership ◽  
Leadership Style ◽  
Moderating Effect ◽  
Quality Of Work Life ◽  
Moderating Effects ◽  
Content Type ◽  
Quality Of Work ◽  
The Relationship

Purpose The purpose of this study is to explore the moderating effects of gender and income on the relationship between leadership style and quality of work life (QWL). This study provides meaningful implications for the hospitality industry in terms of gender and income between leadership and QWL. Design/methodology/approach Data are collected from five-star hotel employees (n = 443) in Turkey. The hypotheses are tested using hierarchical linear regression. The independent and dependent variables used to test the hypotheses involving the dependent variable of QWL are centered prior to the empirical analysis to avoid potential multicollinearity. Findings Transformational and transactional leadership styles were significant predictors of QWL, controlling for the demographic variables (i.e. age, employment statistics and education level), but gender and income were not significant antecedents of QWL. When it comes to the interaction effect of leadership styles and gender, gender showed a statistically significant moderating effect between transformational leadership and QWL, but not between transactional leadership and QWL. Income had a statistically significant moderating effect between both leadership styles and QWL. Practical implications The findings of the study potentially affect hotel management by identifying the moderating effect of gender and income of the employees and demonstrating how quality of life of the employees can be improved by leadership styles of managers. Originality/value Previous literature has addressed the issue of leadership and its outcomes. However, there has been limited research on examining the relationship among gender, income, leadership style and QWL in the case of hospitality management.

Moderating effect of bank size on the relationship between financial soundness and financial performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Njagi Kirimi ◽  
Samuel Nduati Kariuki ◽  
Kennedy Nyabuto Ocharo
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Management Practices ◽  
Banking Sector ◽  
Optimal Level ◽  
Moderating Effect ◽  
Content Type ◽  
Study Results ◽  
Financial Soundness ◽  
The Relationship

PurposeThis study analyzed the moderating effect of bank size on the relationship between financial soundness and financial performance of commercial banks in Kenya.Design/methodology/approachThe study employed data from 39 commercial banks for ten years from 2009 to 2018. Panel data regression model was used to analyze data.FindingsThe study results established a negative moderating effect of bank size on the relationship between commercial banks' financial soundness and net interest margin (NIM) and return on assets (ROA) with the results indicating a correlation coefficient of −0.1699 and −0.218, respectively. However, an absence of moderating effect was established when return on equity (ROE) was used as a measure of financial performance.Practical implicationsThe paper finding recommends that banks' management and other policy makers should consider the effect of bank size while devising financial soundness policies to ensure optimal level of banks' financial soundness aimed at improving banks' financial performance. In addition, bankers associations should come up with policies to standardize asset quality management practices to ensure continuous positive performance of the banking sector.Originality/valueThe study shows the contribution and applicability of the theory of production in the banking sector.

Corporate social responsibility and market value: evidence from Jordan

2016 ◽  
Vol 14 (1) ◽  
pp. 2-29 ◽  
Author(s):  
Bilal Fayiz Omar ◽  
Nidal Omar Zallom
Keyword(s):  
Regression Analysis ◽  
Human Resources ◽  
Financial Performance ◽  
Market Value ◽  
Content Type ◽  
Industrial Sectors ◽  
Food And Beverage ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to investigate the relationship between different themes of corporate social responsibility (CSR) and companies’ market value (measured by Tobin Q) for Jordanian firms listed on the Amman Stock Exchange (ASE) for the period 2006-2010. Design/methodology/approach The annual reports of 26 companies on the ASE for the years 2006-2010 were selected for this study. Three industrial sectors were chosen: chemical; food and beverage; and pharmaceutical and medical (P&M). The CSR is measured by constructing an index consisting of four themes which are as follows: environmental 9 items; human resources 16 items; community 7 items; and products 7 items. The study adopts Tobin Q as the dependent variable to measure the market value of corporations. Two control variables were included in the regression analysis for their possible effects on the CSR and company’s market value relationship: size and leverage. This study performs a multiple regression analysis model to test the effect of the four CSR themes: environmental, human resources, community and products on the market value measured by Tobin Q. Findings The results revealed that environmental, community and product activities decreased market value in the food and beverage industry, while human resources activities had no effect on market value in the same industry. Moreover, the community theme was found to have a negative effect on market value in the P&M industry, while the three other themes were found to have no effect on market value in the same industry. The four themes had no effect on market value in the chemical industry. Research limitations/implications The current study has a number of limitations, which have implications for future research. First, the study focused only on three industrial sectors (chemical, food and beverage and P&M), which limited the results to only these industries. In addition, the CSR concept and its effect on profitability is an important issue for the financial and services sectors. Hence, it would be beneficial to investigate the CSR impact on profitability for the financial and services sectors. Moreover, the study focused only on one country, Jordan. An extension of this study could be a comparison of the CSR effect on financial performance between Jordan and other countries in the Middle East. Furthermore, the measurement of CSR is subject to criticism because it might generate bias according to subjective judgments about CSR items. The CSR items are equally weighted, which might not be acceptable because their nature and effect differ among industries. However, introducing qualitative measures for CSR that reflect various perspectives about CSR practices and implications is essential. Finally, the period chosen for this study includes the years of global financial crisis as well which had eroded the market value of many firms in different industries, and this may form a prominent limitation of this study. Practical implications The results of this study have given evidence of the role of CSR in Jordan. The investments in the CSR field could negatively affect or could have no effect on market value. Overall, regulators in Jordan should pay attention to the costs and benefits of CSR among companies. Companies will be encouraged to invest in CSR activities if the benefits on their financial performance exceed the costs (cost-benefit theory). Specifically, companies should select types of CSR activities that enhance their competiveness in the society. Social implications The results of this study provide practical implications to several users in the chemical, food and beverage and P&M industries. Managers, investors and other users may pay attention to the impact of CSR strategies on the company’s market value. For example, food and beverage managers may decrease their CSR investments around environmental, community and product activities because these decrease the market value and profitability of the company. However, the CSR investment in human resources does not affect the profitability in this industry. For the chemical industry, managers may not focus on CSR investments in the different activities (environmental, human resources, community and products) because these have no impact on the company’s market value. In regards to the P&M industry, managers may decrease their CSR investments around community activities because this decreases the market value. However, managers may not be concerned with CSR investments in environmental, human resources and products activities because these do not affect the company’s market value. Originality/value The relationship between CSR and a company’s financial performance has been tested broadly in the financial and management fields without any conclusive results. Some explanations for the inconclusive results are discussed. Inoue and Lee (2011, p. 791) noted three main issues that remain unresolved in the studies regarding the relationship between CSR and a company’s performance: using samples for different industries, using cross sectional observations and using aggregate CSR dimensions. The current study overcomes the main problems in the previous discussion. In particular, the study will focus on specific industries (chemical, food and beverage and P&M). In addition, the study will use multidimensional CSR measures. Moreover, financial performance will be measured by a single measure (market value) instead of using different measures of financial performance.

WeChat usage during COVID-19 pandemic lockdown: the mediating role of online self-disclosure on quality of friendship and well-being

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tunde Simeon Amosun ◽  
Chu Jianxun ◽  
Olayemi Hafeez Rufai ◽  
Sayibu Muhideen ◽  
Riffat Shahani ◽  
...  
Keyword(s):  
University Students ◽  
Mediation Analysis ◽  
Well Being ◽  
Disclosure Quality ◽  
Self Disclosure ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this paper is to investigate university students’ WeChat usage during the COVID-19 pandemic lockdown in relation to the mediating role of online self-disclosure on their quality of friendship and well-being. A model is proposed to explain how students’ interactions occur during the lockdown and the mediatory role which self-disclosure plays in influencing their socio-psychological markup. Design/methodology/approach The research model was tested empirically through a survey conducted online with 600 research participants, comprising of university students in China. Findings Results in structural equation modeling show that WeChat interaction significantly correlates with the quality of friendship, online self-disclosure but not significantly correlates with well-being, but an indirect relationship was found out in the mediation analysis. There is also a significant relationship between online self-disclosure, quality of friendship and well-being. Mediation analysis shows that online self-disclosure mediates the relationship between interactions on WeChat and quality of friendship; it also mediates the relationship between WeChat interaction and well-being. In all, the results achieved in this study will significantly help provide more insights in comprehending the nuances attached to some socio-psychological aspects of WeChat and how its usage affects people during the period of crisis. Originality/value Theoretically based investigation of WeChat usage among university students and its relationship with online self-disclosure, quality of friendship and well-being is still quite scarce, thereby underscoring the needs and significance of a theoretically based study in this regard. This study tested the credibility and validity of the proposed model in the context of the recent COVID-19 pandemic lockdown in China, which is one of the first in recent times.

scholarly journals The Moderating Effect of Firm Visibility on the Corporate Social Responsibility-Firm Financial Performance Relationship: Evidence from France

2021 ◽  
Author(s):  
Zyed Achour ◽  
Sonia Boukattaya
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Financial Performance ◽  
Moderating Effect ◽  
Legitimacy Theory ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship

This research aims to analyze the role played by firm visibility in moderating the relationship between Corporate Social Responsibility (CSR) and Firm Financial Performance (FFP). Based on the legitimacy theory, a firm’s responses to stakeholder’s expectations would be affected by its public visibility; we hypothesize a positive link between CSR and firm visibility. Moreover, visibility is expected to moderate the CSR-FFP relationship. We applied a Moderated Regression Analysis using the aggregate ESG scores as a CSR proxy on a panel data of listed French Companies (SBF120) over the period 2008–2017. Our findings are in line with legitimacy theory, suggesting that social initiatives would be mean to strengthen the legitimacy and to secure “license to operate”. Furthermore, firm visibility would be a contingency variable that moderates positively CSR-FFP relationship.

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