Impact of foreign directors on carbon emissions performance and disclosure: empirical evidence from France

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ghassan H. Mardini ◽  
Fathia Elleuch Lahyani
Keyword(s):  
Carbon Emissions ◽  
Panel Data Analysis ◽  
Vital Role ◽  
Strategic Decisions ◽  
Control Laws ◽  
Content Type ◽  
Law System ◽  
Listed Firms ◽  
Theoretical Approaches ◽  
Foreign Directors

Purpose Drawing on multiple theoretical approaches, this study aims to investigate whether the presence of foreign directors on the board is associated with a company’s carbon emissions performance (CP) and carbon disclosure (CD). Design/methodology/approach The sample comprises 67 non-financial listed firms from the Société des Bourses Françaises 120 index for the period 2010–2018 and the analysis relies on carbon reports from the carbon disclosure project, using a panel data analysis based on random-effects regression. Findings The paper finds that having foreign directors has a positive significant impact on both aspects of carbon emissions (CE), namely, CP and CD. Foreign directors’ incentives to reveal extensive sustainability information depend on the volume of CE. The findings also indicate that foreign directors are more engaged in enhancing environmental transparency and lowering information asymmetry to maintain/ improve corporate legitimacy. Practical implications The findings show that foreign directors play a vital role as one of the main pillars of a carbon model for sustainable carbon activities and disclosure. The evidence has important insights for the managers of French listed firms, shareholders and regulators. Social implications The evidence underlines the value of foreign directors as a critical resource that enhances CE strategic decisions. Thus, the findings are valuable to managers, as they may consider balancing between foreign and local directors to benefit from a rich heterogeneous resource encompassing the diverse merits of both types of directors, with particular emphasis on foreign directors’ international exposure and experience. Originality/value This study offers significant insights, as it examines the relationship between foreign directors and both the CP and CD in the French context, which is characterized by a non-English civil law system and the issuing of many environmental, climate and emission control laws.

Contribution of knowing in practice to dynamic capabilities

2019 ◽  
Vol 26 (1) ◽  
pp. 60-77 ◽  
Author(s):  
Ane Isabel Linden ◽  
Claudia Bitencourt ◽  
Hugo Fridolino Muller Neto
Keyword(s):  
Health Care ◽  
Dynamic Capabilities ◽  
Health Care Organizations ◽  
Service Providers ◽  
Project Managers ◽  
Organizational Level ◽  
Strategic Decisions ◽  
Content Type ◽  
Theoretical Approaches ◽  
The Board Of Directors

Purpose This paper aims to discuss the contribution of knowing in practice (KP) to the development of dynamic capabilities (DC) in the context of health-care organizations. Design/methodology/approach The authors develop a case study in a Brazilian hospital in three stages using the data collection techniques of interviews, focus groups, shadowing and conjoint analysis. The participants were health-care employees, supervisors, project managers and members of the board of directors. Findings This paper identifies the contribution of KP to develop DC based on strategic practices and their respective microprocesses as key elements to DC microfoundations. In the end, the paper points out a mutual contribution between the theoretical approaches. Research limitations/implications This proposal makes sense in organizations where the practices have a strategic nature, such as hospitals and service providers. Practical implications This study suggests an alignment between strategic and operational views, stimulating learning across organizational levels. Originality/value KP helps to give DC a tangible form by including a human dimension into microfoundations, giving voice to practitioners in the strategic decisions. The integration of KP and DC approaches allows organizations to perceive DC in daily practices making DC present in every organizational level, stimulating a continuous organizational learning process.

Impact of firm performance and corporate governance mechanisms on intellectual capital disclosures in CEO statements

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ghassan H. Mardini ◽  
Fathia Elleuch Lahyani
Keyword(s):  
Corporate Governance ◽  
Impression Management ◽  
Intellectual Capital ◽  
Gender Diversity ◽  
Vital Role ◽  
Content Type ◽  
Listed Firms ◽  
And Gender ◽  
The Impact ◽  
Three Components

PurposeUsing agency theory and impression management theory, this study examines the impact of financial performance (FP) and corporate governance (CG) mechanisms on the extent of intellectual capital disclosures (ICDs) and the three components within the CEO statement – human capital (HC), structural capital (SC) and relational capital (RC).Design/methodology/approachThis study employs a sample of non-financial SPF-120 French listed firms to capture the relevant variables; it collects data for 2010–2017, using a panel data technique to run the random effects regressions.FindingsThe study finds that FP, measured using both market (Tobin's q) and accounting (return on equity and return on assets) indicators, plays a vital role in the extent of ICDs and the three components in the CEO statement published by SPF-120 companies. This confirms its impact on the decision-making needs of stakeholders. Among the CG mechanisms, this study finds that cultural diversity and gender diversity affect some ICD components. Moreover, CEO characteristics such as age, education and role duality affect ICD, while institutional ownership drives the extent of such disclosures.Practical implicationsOur findings have comprehensive implications for managers of French listed firms, the Autorité des Marchés Financiers, and stakeholders in general.Originality/valueThis study provides significant insights by investigating the impact of FP, CG and company characteristics on the extent of the ICDs published in CEO statements.

scholarly journals Dividend policy and earnings quality in Vietnam

2019 ◽  
Vol 26 (2) ◽  
pp. 301-312
Author(s):  
Trang Thi Ngoc Nguyen ◽  
Phuong Kim Bui
Keyword(s):  
Fixed Effects ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Panel Data Analysis ◽  
Continuous Variables ◽  
Content Type ◽  
Listed Firms ◽  
Dummy Variable ◽  
Two Measures

Purpose The purpose of this paper is to examine the relationship between dividend policy and earnings quality of Vietnamese listed firms. Design/methodology/approach The sample includes firms listed on Vietnam stock exchange during the period between 2010 and 2016. Two measures of earnings quality are the annual firm-specific absolute value of residuals from Dechow and Dichev’s (2002) model and from Dechow and Dichev (2002) as modified by McNichols’s (2002) model. The firms’ dividend policy is captured by dividend paying status. This is a dummy variable that takes the value of 1 if the firm pays dividends and 0 otherwise. In addition, dividend yield and dividend payout ratio, which are continuous variables, are also used in this paper as alternative proxies for dividend policy. Findings Using panel data analysis, this paper documents that dividend payers have higher earnings quality than dividend non-payers. Dividends are an indicator of earnings quality. These findings are consistent with prior studies. After controlling for variables that may be related to earnings quality as well as for the year and industry fixed effects, this relation remains unchanged. In addition, this result is also robust after controlling for firm fixed effects. Originality/value This paper offers the empirical evidence on the relation between dividend policy and earnings quality in Vietnam, which is a frontier market.

The impact of corporate finance decisions on market value in emerging markets

2018 ◽  
Vol 67 (9) ◽  
pp. 1959-1976 ◽  
Author(s):  
Guler Aras ◽  
Filiz Mutlu Yildirim
Keyword(s):  
Corporate Finance ◽  
Panel Data Analysis ◽  
Market Value ◽  
Analytical Methodology ◽  
Data Set ◽  
Content Type ◽  
Theoretical Approaches ◽  
Using Data ◽  
The Impact ◽  
Positive Effect

PurposeThe purpose of this paper is to analyze the conformity of the impact of corporate finance decisions on market value with the basic theoretical approaches in the two emerging economies, which show great similarities in terms of the economic structures, and to examine the results obtained by determining how these decisions affect market value comparatively.Design/methodology/approachIn this study, the effect of corporate finance decisions on market value is tested empirically with panel data analysis method by using data of 274 real sector firms traded in BIST and 249 firms in BOVESPA industry index, between 2010 and 2014.FindingsThe analysis results show that the increase in the borrowing level of firms operating in both countries reduces the market value; the increase in the level of profitability in the firms has a positive effect on the market value. In addition, it is possible to say that the effect is different in terms of investment decisions for Turkish and Brazilian firms.Research limitations/implicationsThe limitations of the study are that the non-financial sectors between 2010 and 2014 in Turkey and Brazil including the company data, and the companies with missing years are removed from the data set. The findings show that more effective and balanced management of the variables by the financial manager affects these rates and have an impact on increasing the market value.Originality/valueIn this study, a fundamental subject in finance is addressed by analytical methodology and comparative tests for countries are conducted.

Gender diversity in the Italian boardroom and firm financial performance

2017 ◽  
Vol 40 (1) ◽  
pp. 75-94 ◽  
Author(s):  
Niccolò Gordini ◽  
Elisa Rancati
Keyword(s):  
Financial Performance ◽  
Boards Of Directors ◽  
Panel Data Analysis ◽  
Gender Diversity ◽  
Gender Quotas ◽  
Content Type ◽  
Law System ◽  
Firm Financial Performance ◽  
Board Gender Diversity ◽  
The Right

Purpose This study aims to analyse the relationship between board gender diversity and firm financial performance in Italy, where the recently enforced Law 120/2011 prescribes gender quotas for boards of directors. Design/methodology/approach Panel data analysis was used to examine the gender diversity–firm financial performance relationship in an unbalanced panel of 918 Italian listed companies during the years 2011-2014. Findings Gender diversity, as measured by the percentage of women on a board and by the Blau and the Shannon indices, has a positive and significant effect on Tobin’s Q, while the presence of one or more women on the board per se has an insignificant effect on firm financial performance. Practical implications The results suggest that board gender diversity is not a simple “numbers game”, greater gender diversity may generate economic gains, greater gender diversity does not destroy shareholder value, investors do not penalize companies that increase female representation on their boards and Italian companies should focus their efforts on the right mix of men and women rather than on simply the presence of at least one woman on a board of directors. Originality/value Most articles on this topic use data from countries with a legal system based on common law; this paper analyses Italy, a country with a civil law system. This is almost certainly the first study to examine the effect of board gender diversity on firm financial performance in the Italian market.

Integrated reporting and cost of capital in sub-Saharan African countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haruna Maama ◽  
Ferina Marimuthu
Keyword(s):  
Cost Of Capital ◽  
Panel Data Analysis ◽  
Sub Saharan Africa ◽  
Integrated Reporting ◽  
Content Type ◽  
Listed Firms ◽  
Reporting Practice ◽  
Sub Saharan ◽  
The Cost ◽  
The Impact

PurposeGiven the significant role of both integrated reporting and cost of capital in the survival and prosperity of a firm, it is essential to understand their relationship by investigating whether integrated reporting influences the cost of capital of a firm. This research paper aims to examine the impact of integrated reporting practice on the cost of capital of listed firms in sub-Saharan Africa (SSA).Design/methodology/approachThe study covered a period of 10 years from 2009 to 2018. One hundred and forty-seven listed firms in 10 SSA countries were used for the study. The study employed panel data analysis and utilised a dynamic estimation technique called the generalised method of moments.FindingsThe evidence shows that integrated reporting has a negative relationship with cost of capital, indicating integrated reporting can reduce firms' cost of capital. The results further showed that social, governance and environmental disclosures all have negative relationships with cost of capital, suggesting that firms that make these disclosures would have a lower cost of capital. These results are consistent with signalling theory, which holds that firms send a positive signal to the market about their performance and prospects when they provide information relating to value creation, predominantly environmental, social and governance issues.Research limitations/implicationsThe major limitation of the study is the selection of only English-speaking countries. French-speaking countries may have a different reporting practice, hence a different effect on the cost of capital.Practical implicationsThis study contributes to policy development on integrated reporting in SSA and informs key stakeholders involved in promoting and supporting the adoption of integrated reporting in Africa.Originality/valueThe findings from this paper consolidate existing research in integrated reporting and cost of capital by providing empirical evidence on the relationship between integrated reporting, its components and the cost of capital from emerging economies. This study contributes to the understanding of investors' reactions to integrated reporting. Further, it fills a gap in the non-availability of literature on the relative impact of the various components of integrated reporting.

Impact of Chinese firms’ political connections on EVA performance: the moderating roles of connection heterogeneity and product diversification

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoming He ◽  
Ao Chen
Keyword(s):  
Corporate Strategy ◽  
Panel Data Analysis ◽  
Economic Value ◽  
Value Added ◽  
Product Diversification ◽  
Political Connections ◽  
The Political ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose This paper aims to explore the impact of a firm’s political connections on its economic value added (EVA) performance while treating connection heterogeneity and product diversification as moderators. Design/methodology/approach Based on data collected from 1,143 Chinese manufacturing listed firms in China’s A-share market from 2012 to 2017, this study conducted panel data analysis to investigate proposed relationships. Findings The findings provide evidence that political connections promote EVA performance of enterprises and both connection heterogeneity and product diversification negatively moderate the political connections – EVA performance relationship. Originality/value Drawing sights from the resource-based view, this study investigates the influence of corporate political connections on EVA performance, considering contingent factors of connection heterogeneity and corporate strategy (i.e. product diversification). It, thus, contributes to the literature on political connections by providing additional evidence to explaining the inconclusive findings on the political connections–firm performance relationship and extending prior research by emphasizing the moderating roles of connection heterogeneity and corporate strategy. It also complements prior research on EVA performance by exploring its antecedents.

Does economic risk affect corporate cash holdings?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Tahar Tayachi ◽  
Rashid Mehmood ◽  
Anwaar Hussain
Keyword(s):  
Interest Rate ◽  
Manufacturing Sector ◽  
Cash Holdings ◽  
Vital Role ◽  
Economic Risk ◽  
Content Type ◽  
Listed Firms ◽  
Negative Effect ◽  
Cash Reserves ◽  
The Impact

PurposeEconomic risk plays a vital role in firm's cash holdings. We aim to determine the impact of economic risk on the firm's cash holdings.Design/methodology/approachThe data is collected from the DataStream from 2002 to 2018, which covers 552 listed firms in the manufacturing sector of Pakistan, Sri Lanka, India and Bangladesh. We apply a two-step dynamic panel estimation to analyze the results.FindingsWe use the variance of inflation and variance of interest rate as proxies of economic risk. Our results show that variance of inflation has a significant and negative effect while the variance of interest rate has a significant and positive effect on firms' cash holdings in selected countries. Furthermore, we find economic risk negatively affects the firm's cash holdings in the country-wise analysis. Firms should maintain a reasonable amount of cash reserves to handle uncertain situations.Originality/valueThis study may provide insights to financial decision-makers of a firm for better cash management according the economic conditions of the country.

Cash holdings, political connections, and earnings quality

2015 ◽  
Vol 11 (2) ◽  
pp. 215-231 ◽  
Author(s):  
Redhwan Al-dhamari ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Earnings Quality ◽  
Cash Holdings ◽  
Political Influence ◽  
Vital Role ◽  
Least Square ◽  
Political Connections ◽  
Political Connection ◽  
Content Type ◽  
Listed Firms ◽  
Cash Reserves

Purpose – The purpose of this paper is to investigate the influence of cash holding, political connection and their interaction effect on earnings quality in the Malaysian environment, where political influence plays a vital role in many aspects of business dealings and resources allocation is seriously affected by politics. Design/methodology/approach – This paper uses ordinary least square and seemingly unrelated regressions upon a sample of the Malaysian top 100 listed firms. Findings – This paper finds that earnings of firms with excess cash reserves are of high quality. Consistent with previous research, the study finds that investors perceive earnings numbers of politically connected firms as being of low quality. However, this research fails to support an expectation that the adverse consequences of holding a large amount of cash to earnings quality would be more pronounced when political extraction is high. The findings of this study suggest that policy makers should encourage or mandate firms to disclose information in relation to their connections with government, political party, or politicians so that investors and all interested parties can use the information to better assess the firms’ earnings quality. Originality/value – This research is considered as the first attempt to examine the relationships between cash holdings, political connections, and earnings quality in a developing country such as Malaysia.

Voluntary disclosure and corporate governance: empirical evidence from Kuwait

2017 ◽  
Vol 59 (2) ◽  
pp. 217-236 ◽  
Author(s):  
Mishari M. Alfraih ◽  
Abdullah M. Almutawa
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Panel Data Analysis ◽  
Annual Reports ◽  
Government Ownership ◽  
Governance Mechanisms ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Governance Mechanisms

Purpose The purpose of this paper is to assess and analyse the level of voluntary disclosure practices in the annual reports of Kuwait Stock Exchange (KSE) listed firms and explore the association between corporate governance mechanisms and voluntary disclosure practices. Design/methodology/approach Panel data analysis was undertaken over a period from 2005-2008 with an aim to examine the influence of corporate governance mechanisms on voluntary disclosures made by 52 listed firms in their four years of annual reports. An unweighted voluntary disclosure index has been used for hand-collecting data from annual reports. Findings The findings show that the mean voluntary disclosure level over the four years is 23 per cent. Four out of eight corporate governance mechanisms examined found to be significantly associated with the level of voluntary disclosure, three negatively, one positively. Cross directorship, board size and role duality are negatively related to voluntary disclosure, while government ownership is positively related to voluntary disclosure. In contrast, the proportion of non-executive directors, family members on the board, the presence of an audit committee and the presence of the ruling family on the board have an insignificant influencer on voluntary disclosure practices. Practical implications The study provides an assessment of KSE-listed firm voluntary disclosure practices and its determents and highlights that that corporate governance attributes affect the voluntary disclosure practices of KSE-listed firms. Originality/value The findings of this study contribute to the arguments concerning the role of corporate governance mechanisms in improving the level of disclosure and information transparency.

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