scholarly journals Equity investment decisions of large investors around IFRS adoption: Financial vs. non-financial firms

2017 ◽  
Vol 14 (4) ◽  
pp. 425-434 ◽  
Author(s):  
Manel Hessayri ◽  
Malek Saihi
Keyword(s):  
South Africa ◽  
Emerging Market ◽  
Investment Decisions ◽  
Equity Investment ◽  
Financial Firms ◽  
Ifrs Adoption ◽  
Emerging Market Countries ◽  
Large Shareholders ◽  
Equity Ownership

This paper addresses the question of whether firms’ IFRS adoption translates into increases in equity ownership for large shareholders. Using a sample of 55 non-financial firms and 23 financial firms from three emerging market countries, namely Morocco, South Africa and Turkey, we find evidence that top shareholders invest more heavily in firms’ stocks after their commitment to IFRS. Surprisingly, we report opposite findings for ownership by blockholders in financial and non-financial firms displaying different incentives.

Monitoring earnings management in emerging markets

2015 ◽  
Vol 31 (2) ◽  
pp. 86-108 ◽  
Author(s):  
Manel Hessayri ◽  
Malek Saihi
Keyword(s):  
South Africa ◽  
Earnings Management ◽  
United Arab Emirates ◽  
Ownership Structure ◽  
Emerging Market ◽  
Listed Companies ◽  
The Philippines ◽  
Content Type ◽  
Ifrs Adoption ◽  
Emerging Market Countries

Purpose – The purpose of this paper is to examine whether International Financial Reporting Standards (IFRS) adoption complements corporate governance factors (e.g. ownership structure) in monitoring managers’ discretional behavior in an emerging market context. Design/methodology/approach – The paper relies on a sample of listed companies in the United Arab Emirates, Morocco, South Africa and the Philippines during an eight-year period on average (four years of pre-adoption period and four years of post-adoption period). Findings – The authors find no evidence of lower earnings management after the switch to IFRS reporting, suggesting that managerial discretional behavior is insensitive to a firm’s IFRS adoption. However, the authors document effective monitoring role of a firm’s ownership structure on earnings management. More interestingly, institutional investors are effective in constraining earnings management when holding a high level of ownership. Moreover, the effect of blockholders and institutional blockholders varies as their ownership rises following a non-linear pattern. Research limitations/implications – First, the assumption that discretionary accruals are adequate measure of earnings management may be criticized in different ways. Second, the findings, performed on listed companies in the United Arab Emirates, Morocco, South Africa and the Philippines, should be interpreted with caution and cannot be generalized to all emerging market countries. Practical implications – Standards setters and market authorities should be aware of earnings management determinants to set adequate and fitting accounting standards limiting opportunistic behavior of managers and mainly to set up training programs to accounting professionals improving the IFRS implementation. Moreover, considering specific features of firms in emerging market countries related to ownership structure, international investors may rely on such criteria to evaluate firms. Finally, auditors should be aware of different incentives for earnings management in order to be able to detect eventual manipulation of accounting earnings. Originality/value – This paper provides a timely contribution to the continuous debate of the effect of IFRS adoption on earnings management in a poorly exploited setting, emerging market context. When investigating, additionally, the eventual non-linear effect of institutional ownership, block ownership, institutional block ownership and non-institutional block ownership on earnings management, a major contribution is that it brings to light the finding of a differential influence of ownership levels on earnings management.

scholarly journals Monitoring intensity, investment inefficiency and institutional shareholders: Evidence from JSE listed companies in South Africa

2021 ◽  
Vol 18 (3) ◽  
pp. 1-15
Author(s):  
Oloyede Obagbuwa ◽  
Farai Kwenda ◽  
Gbenga Wilfred Akinola
Keyword(s):  
South Africa ◽  
Stock Exchange ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Investment Decisions ◽  
Governance Mechanism ◽  
Johannesburg Stock Exchange ◽  
Corporate Decisions ◽  
Corporate Governance Mechanism ◽  
Institutional Shareholders

This study investigates how variation in monitoring intensity affects the efficiency of firms’ investment decisions in an emerging market in South Africa. The study hypothesis argues that the distraction of institutional shareholders has a statistically significant positive effect on corporate investment inefficiency. Using a more robust Generalized Method of Moments (Sys GMM) estimation approach to analyze data collected for firms listed at the Johannesburg Stock Exchange (JSE) for the period 2004–2019, the results showed that the distraction of institutional shareholders has a positive and statistically significant impact on investment inefficiency. That is, when the attention of institutional shareholders is shifted, the intensity of their monitoring drops, and the executive is involved in investment decisions that are not profitable. This insight has an implication for stakeholders and the value-creating corporate governance mechanism. The study concludes that institutional shareholders must always sustain their monitoring intensity to ensure that corporate decisions are consistent with the firm’s value.

Website Information Security and Privacy Concerns in 4IR: The Moderating Role of Trust in B2C e-Commerce

10.29007/jlq6 ◽  
2019 ◽  
Author(s):  
Thabang Mofokeng
Keyword(s):  
South Africa ◽  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Success Factors ◽  
Industrial Revolution ◽  
Emerging Market ◽  
Security And Privacy ◽  
Future Research ◽  
Privacy And Security ◽  
Customer Trust

The technology devices introduced in recent years are not only vulnerable to Internet risks but are also unable to elevate the growth of B2C e-commerce. These concerns are particularly relevant today, as the world transitions into the Fourth Industrial Revolution. To date, existing research has largely focused on obstacles to customer loyalty. Studies have tested e-commerce models guided by the establishment of trusting, satisfied and loyal consumers in various international contexts. In South Africa, however, as an emerging market, there has been limited research on the success factors of online shopping.This study examines the influence of security and privacy on trust, seen as a moderator of customer satisfaction, which in turn, has an effect on loyalty towards websites. Based on an exhaustive review of literature, a conceptual model is proposed on the relationships between security and privacy on the one hand, and customer trust, satisfaction and loyalty on the other. A total of 250 structured, self-administered questionnaires was distributed to a purposively selected sample of respondents using face-to-face surveys in Johannesburg, South Africa. A multivariate data analysis technique was used to draw inferences from the data. With an 80.1% response rate, the findings showed that privacy and security do influence customer trust; security strongly influences customer trust and weakly influences satisfaction. In South Africa, customer loyalty towards websites is strongly determined by satisfaction and weakly determined by trust. Trust significantly moderates the effect of customer satisfaction on loyalty. The study implications and limitations are presented and future research directions are suggested.

Harinder S. Kohli (ed.). Growth and Development in Emerging Market Economies: International Private Capital Flows, Financial Markets and Globalisation. New Delhi: Sage Publication 2008. 369 pages. Hardbound. Indian Rs 695.00.

2008 ◽  
Vol 47 (3) ◽  
pp. 304-305
Author(s):  
Henna Ahsan
Keyword(s):  
Capital Flows ◽  
Growth And Development ◽  
Global Economy ◽  
Emerging Market ◽  
Balance Sheet ◽  
Emerging Market Economies ◽  
New Delhi ◽  
Infrastructure Development ◽  
Market Economies ◽  
Emerging Market Countries

The book discusses the different experiences in Asia and Latin America, while covering the closely related areas under the purview of Emerging Market Economies (EMEs). The first chapter, “Introduction and Overview” has written by Harinder S. Kohli gives an excellent review of the existing literature on the subject. The book discusses six related topics which include nine papers presented at the Emerging Markets Forum Meeting held in Jakarta, Indonesia, in September 2006. The book highlights the main factors of growth and development in Emerging Market Economies (EMEs) now closely related with international capital flows, development of financial market, the countries’ ability to integrate successfully with the global economy through trade and investment and their ability to forge public-private partnerships including infrastructure development. Chapter 2, of the book is an article titled “Global Imbalances, Oil Revenues and Capital Flows to Emerging Market Countries” by Jack Boorman explains the favourable global environment and its impact on capital flows to Emerging Market Countries (EMCs). The EMCs got advantage from this benign global economic environment, such as high economic growth rate, increase in exports, better national balance sheet and increase in foreign exchange reserves, but due to high oil prices the situation has been changed.

scholarly journals The impact of IFRS-based accounting standards on earnings management: evidence from Malaysia

2016 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Yosra Makni Fourati ◽  
Rania Chakroun Ghorbel
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Emerging Market ◽  
Accounting Standards ◽  
Absolute Value ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Earning Quality ◽  
The Impact ◽  
Different Levels

This study aims to examine the consequences of International Financial Reporting Standards (IFRS) convergence in an emerging market. More specifically, we investigate whether the adoption of the new set of accounting standards in Malaysia is associated with lower earnings management. Using a sample of 3,340 firm-year observations across three reporting periods with different levels of IFRS adoption, we provide evidence that IFRS convergence improves earning quality. In particular, we find a significant decrease in the absolute value of discretionary acccruals in the partial IFRS-convergence period (2007-2011), whereas this effect is restrictive after the complete IFRS- implementation.

Resource Endowments in Emerging Market Countries

2021 ◽  
pp. 097491012110043
Author(s):  
Liu Qingjie
Keyword(s):  
Food Security ◽  
Water Use ◽  
Carbon Emissions ◽  
Emerging Market ◽  
Fossil Energy ◽  
Consumption Structure ◽  
Strategic Resources ◽  
Emerging Market Countries ◽  
Consumption Reduction ◽  
Per Capita

This article examines the emerging market countries on their national strategic resources—farmland, fresh water, and fossil energy—which are analyzed from the perspectives of distribution, status of development, and existing issues. The study draws the following conclusions: Emerging market countries have abundant farmland resources yet inadequate per capita resources; because of extensive operation on farmland, grain yield is low, which threatens food security; emerging market countries are saliently short in water resources per capita and face imbalances and low productivity over water use, and their agriculture practices are water-intensive; emerging market countries are growing as global centers for production, consumption, and trade of fossil energy, with a long, coal-dominated consumption structure that has a growing momentum, which subjects them to a greater pressure to reduce carbon emissions; and emerging market countries are inefficient in the use of energy, though they have huge potential for energy conservation and consumption reduction.

Multinational Banks and IMF Conditionality

2021 ◽  
Author(s):  
Trung A Dang ◽  
Randall W Stone
Keyword(s):  
Political Economy ◽  
Investment Decisions ◽  
Location Decisions ◽  
Preferential Treatment ◽  
Firm Level ◽  
Financial Firms ◽  
Level Data ◽  
Firm Level Data ◽  
Imf Programs ◽  
Investment Location

Abstract We find firm-level evidence that US banks receive preferential treatment in countries under IMF conditionality. We rely on investment location decisions to infer firms’ expectations about future profits and find that US firms are approximately 53 percent more likely to acquire financial firms in countries under financial conditionality. IMF programs without financial conditionality and FDI in other sectors serve as placebo tests. Financial conditionality has weak effects on investment decisions by non-US firms, which implies a political-economy interpretation. Firm-level data indicate that the distinctive behavior of US firms is not due to advantages of scale or to a US-firm fixed effect, but to US influence in the IMF. Firms from other major IMF shareholders benefit as well, but the effects are much weaker. The effects are concentrated in the politically relevant firms that have local affiliates, which is consistent with the interpretation that firms lobby for preferential treatment.

Economic Structural Transformation in Emerging Market Countries

2021 ◽  
pp. 097491012110046
Author(s):  
Kunling Zhang
Keyword(s):  
Economic Development ◽  
Labor Force ◽  
Structural Transformation ◽  
Service Sector ◽  
Agricultural Sector ◽  
Emerging Market ◽  
Value Added ◽  
Industrial Sector ◽  
Trade Structure ◽  
Emerging Market Countries

This article analyzes the structural transformation in 30 emerging market countries (E30) on the dimensions of industry, trade, and urbanization. It finds that first, in the agricultural sector, E30 have contributed greatly to the increase of the global agricultural productivity and the transfer of labor force from the agricultural sector to industry or the service sector. However, these countries still feature a high percentage of agricultural employment, which means there is vast room for shifting the agricultural labor force. Second, in the industrial sector, E30 have made remarkable contributions to the world’s industrial development but have also displayed a trend of premature “deindustrialization.” Third, the service sector has picked up speed and gradually turned into a new driver of economic development in E30. Against this backdrop, E30 face the major challenge of how to cope with the premature deindustrialization and smoothly shift the economic growth engine from the industrial sector to the service sector. Fourth, E30 have become an important force in the world trade, with their trade structure switching from simple, primary, low-value-added goods to sophisticated, high-grade, and high-value-added goods and services. However, some emerging market countries are more susceptible to the impacts of the anti-globalization trend because of their high reliance on foreign trade and improper trade structure. Therefore, how to diversify the economy and enhance its economic resilience holds the key to the sustainable economic development of E30. Fifth, E30 have contributed greatly to world urbanization. As urbanization relies more on the service sector than on the industrial sector, it is vital to properly strike a balance between industrialization and urbanization, and between industrialization and service sector development.

Fashion designers' attitude-behaviour inconsistencies towards a sustainable business model: a neutralisation theory perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asphat Muposhi ◽  
Brighton Nyagadza ◽  
Chengedzai Mafini
Keyword(s):  
South Africa ◽  
Online Survey ◽  
Emerging Market ◽  
Survey Study ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
Study Results ◽  
Sustainable Fashion ◽  
Fashion Designers

PurposeFashion designers in South Africa remain ambivalent in embracing sustainable fashion. This study examines the role of neutralisation techniques on attitude towards sustainable fashion. The study was conducted in South Africa, an emerging market known for water scarcity and pollution emanating from the textile industry.Design/methodology/approachA structured questionnaire was used to collect cross-sectional data from a sample of 590 fashion designers using a web-based online survey. Study constructs were drawn from the neutralisation theory and theory of planned behaviour.FindingsStandard multiple regression analysis results identified denial of injury, appeal to higher loyalties and external locus of control as the major rationalisation techniques influencing South African designers' negative attitudes towards sustainable fashion.Research limitations/implicationsResearch was conducted in South Africa where the concept of sustainable fashion is still at developmental stages. The generalisation of the study findings may be enhanced by extending the study to other markets with a fully developed market for sustainable fashion.Practical implicationsThe study results underscore the necessity of reducing social, structural and institutional barriers associated with the adoption of sustainable fashion. This study provides input towards efforts to develop attitude change strategies to stimulate designers to embrace sustainable fashion.Originality/valueThe research study contributes to theory, practice and future research.

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