scholarly journals Moderating Effect of Earnings Management in the Relationship between Sustainability Reporting Initiatives and Value Relevance

2020 ◽  
Vol 4 (2) ◽  
pp. 266
Author(s):  
Mashiur Rahman ◽  
Siti Zaleha Abdul Rasid ◽  
Rohaida Basiruddin
Keyword(s):  
Earnings Management ◽  
Value Relevance ◽  
Sustainability Reporting ◽  
Moderating Effect ◽  
Market Effects ◽  
Equity Value ◽  
Sustainability Disclosure ◽  
Sustainability Initiatives ◽  
The Right ◽  
The Relationship

The purpose of this study is to investigate whether sustainability disclosures are associated with value relevance in Bangladesh. The moderating effect of earnings management (EM) is also examined to observe the right direction in this relationship. Based on prior studies on sustainability disclosure and global reporting initiatives guidelines, this research uses the content analysis approach to assess the magnitude of sustainability initiatives of 30 Bangladeshi banking companies over the period 2009–2017. The Ohlson price model and discretionary accruals are also employed as measures of value relevant of sustainability disclosure and EM, respectively. The findings state that sustainability reports positively affect the equity value, whereas EM negatively moderates the direction of this association. The results also confirm that management should be responsive of the impending capital market effects of voluntary disclosures regarding sustainability issues. These findings could have several implications for banks, investors, and policymakers.

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.

scholarly journals Board Governance and Sustainability Disclosure: A Cross-Sectional Study of Singapore-Listed Companies

2018 ◽  
Vol 10 (7) ◽  
pp. 2578 ◽  
Author(s):  
Meibo Hu ◽  
Lawrence Loh
Keyword(s):  
Sustainability Reporting ◽  
Listed Companies ◽  
Cross Sectional Study ◽  
Board Independence ◽  
Board Governance ◽  
Executive Directors ◽  
Cross Sectional ◽  
Policy Makers ◽  
Sustainability Disclosure ◽  
The Relationship

This paper aims to investigate the relationship between board governance and sustainability disclosure in Singapore. Regression analysis is performed using cross-sectional data of Singapore-listed companies to examine the relationship between sustainability disclosure and various board governance factors, including board capacity, board independence, and board incentive. The findings show the presence of significant associations between board governance and sustainability disclosure. In terms of board capacity, companies with larger board sizes and a higher number of board meetings are more likely to practice sustainability reporting, and their reporting qualities are higher. For board independence, the percentage of independent directors positively impacts the firm’s reporting probability and quality on sustainability in Singapore. For board incentives, the practice of long-term incentives for executive directors can significantly improve both the probability and quality of sustainability reporting. The study adds to the literature on corporate governance and sustainability disclosure. It provides empirical evidence and guidance for firms and policy-makers in Singapore and beyond on how sustainability disclosure can be improved through robust board governance.

scholarly journals derivative on the value relevance through tax avoidance and earnings control

2022 ◽  
Vol 6 ◽  
Author(s):  
Suhendra Suhendra ◽  
Etty Murwaningsari ◽  
Sekar Mayangsari
Keyword(s):  
Earnings Management ◽  
Value Relevance ◽  
Tax Avoidance ◽  
Moderating Effect ◽  
Corporate Tax ◽  
High Tendency ◽  
Positive Effect

This investigation expects to inspect and analyze the effect of derivative transactions on earnings management, the role of corporate tax avoidance in  moderating effect of derivative transactions on earnings management, the effect of earnings management worth pertinence of earnings, and the effect of derivative transactions Worth Pertinence of earnings. This examination utilizes information from non-monetary organizations in Indonesia and Thailand for the period 2013-2017 with 91 test of organizations. This investigation, earnings management is calculated based on the Jaggi model and the Jaggi changed model. The value relevance of earnings is calculated based on Ohlson's model. Corporate tax avoidance is calculated based on the book tax difference. The results show that subordinate exchanges have a constructive outcome on earnings management. Corporate tax avoidance has not been proven to strengthen the effect of derivative transactions on earnings management. Earnings management adversely influences the worth pertinence of earnings. Derivative transactions negatively affect the value relevance of earnings. Derivative transactions, especially those with non-hedging criteria, show a high tendency towards earnings management activities. Intercountry testing, derivative transactions have a positive effect on earnings management in Indonesia while in Thailand it does not.

scholarly journals Perceived Service Quality and Customer Satisfaction: A Missing Link in Indian Banking Sector

2019 ◽  
Vol 23 (1) ◽  
pp. 44-55 ◽  
Author(s):  
Bindu K. Nambiar ◽  
Hareesh N. Ramanathan ◽  
Sudhir Rana ◽  
Sanjeev Prashar
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Value ◽  
Banking Sector ◽  
Moderating Effect ◽  
Customer Knowledge ◽  
Perceived Service Quality ◽  
Value Evaluation ◽  
The Right ◽  
The Relationship

The purpose of the article is to recognize the moderating effect of customer knowledge on perceived service quality and customer satisfaction through customer value evaluation in the Indian banking sector. This knowledge can considerably streamline the effort banks invest in acquiring the right kind of customers. The results of the study indicated that perceptions of service quality positively impacted customer value evaluation. Moreover, customer knowledge strengthened the relationship that the empathy and responsiveness dimensions of service quality had with customer value evaluation and moderated the relationship that reliability and tangibility dimensions had with customer value evaluation.

scholarly journals Sustainability Reporting and Firms’ Economic Performance: Evidence from Asia and Africa

2020 ◽  
Author(s):  
Alicia Girón ◽  
Amirreza Kazemikhasragh ◽  
Antonella Francesca Cicchiello ◽  
Eva Panetti
Keyword(s):  
Economic Performance ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Sustainability Reporting ◽  
Environmental Issues ◽  
Women Directors ◽  
Reporting Practices ◽  
Global Environmental ◽  
Sustainability Disclosure ◽  
The Relationship

Abstract Given the increasing concern for the global environmental issues and the relating need for preservation of the ecosystem, sustainability reporting has become more and more important, to both developed and developing economies, sparking the interest of the literature. This study primarily aims to investigate the factors that influence the adoption of new sustainability reporting practices and external assurance. Also, this paper examines the relationship between the reporting activity and firms’ economic performance. The paper combines data from the Global Reporting Initiative’s (GRI) Sustainability Disclosure Database and the Orbis database, from Bureau van Dijk. More specifically, the study uses two logit models and one regression model based on a sample of 366 large Asian and African companies which have addressed the SDGs in their sustainability reports published in 2017. The results reveal that operating in the manufacturing sector and having a higher percentage of women directors in the company’s management structure are positively related to the adoption of sustainability reporting and external assurance. Also, operating in the manufacturing sector leads to better firms’ economic performance. Contrarily from previous studies, the age of the company’s board of directors does not have influences on the use of sustainability reporting. This research contributes to the sustainability issues in the context of emerging markets by explaining the driving factors behind it and its linkage with firms’ performance.

scholarly journals Reporting Sustainability in China: Evidence from the Global Powers of Luxury Goods

2020 ◽  
Vol 12 (9) ◽  
pp. 3940 ◽  
Author(s):  
Davide Galli ◽  
Federica Bassanini
Keyword(s):  
Theoretical Perspective ◽  
Geographical Area ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Luxury Goods ◽  
Reporting Practices ◽  
Sustainability Strategies ◽  
Global Power ◽  
Sustainability Disclosure ◽  
Sustainability Initiatives

In this study, we investigated sustainability reporting practices adopted by the ‘Global Power of Luxury Goods 2019’, which are the top 100 companies operating in the luxury sector listed by Deloitte. The analysis firstly focused on exploring sustainability disclosure and reporting practices, moving then to the examination of China-specific sustainability initiatives according to the Global Reporting Initiative(GRI) standards categories: Economic, environmental, and social. Adopting a theoretical perspective based on elements of institutional theory and stakeholder theory, we highlight how the development of sustainability reports by companies in the luxury sector is still a limited practice involving larger companies that have already invested in the implementation of sustainability strategies. The findings reveal how the reporting of China-specific sustainability initiatives is influenced by a set of factors such as company dimensions, company nationality, the management of the supply chain and operation in China, and the direct reference to China as a key market in terms of revenues. Finally, a cluster analysis shows how companies belonging to different relevant markets for the luxury sector demonstrate different homogeneous approaches by geographical area (isomorphism), with French and Chinese companies more engaged in reporting their sustainability initiatives in China.

Audit committee and financial reporting quality: the moderating effect of audit quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sana Mardessi
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Quality ◽  
Reporting Quality ◽  
Moderating Effect ◽  
Real Earnings Management ◽  
Financial Reporting Quality ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to address the impact of audit quality on financial reporting quality proxied by real earnings management. To further clarify the mentioned links, this study empirically assesses the moderating effect of audit quality. Design/methodology/approach The study is based on a sample consisting of 90 non-financial companies that are listed in the Amsterdam stock exchange in AEX all share index over the 2010–2017 period. This study applies a quantitative approach and secondary data as the main source of information for analysis. This paper performs an ordinary least squares regression to examine the moderating effect of audit quality on the relationship between financial reporting quality. Findings Empirical findings demonstrate that corporate governance mechanism, mainly independence members, financial expert and audit committee size has a statistically significant relationship with real earnings management. However, the effect of audit committee meetings on real earnings management is not significant. There is also evidence that audit quality moderates the audit committee – real earnings management links. Originality/value This study extends the existing literature by examining the moderating effect of audit quality on the relationship between financial reporting quality proxied by real earnings management in the Dutch context.

scholarly journals Voluntary assurance of sustainability reporting: evidence from an emerging economy

2020 ◽  
Vol 33 (2) ◽  
pp. 391-410 ◽  
Author(s):  
Abeer Hassan ◽  
Ahmed A. Elamer ◽  
Mary Fletcher ◽  
Nawreen Sobhan
Keyword(s):  
Supply And Demand ◽  
Geographical Location ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Fiscal Year ◽  
Future Research ◽  
Content Type ◽  
Sustainability Disclosure ◽  
Signalling Theory ◽  
The Relationship

Purpose This paper aims to investigate the supply and demand side of sustainability assurance in Bangladesh. Design/methodology/approach Drawing on signalling theory, a logistic regression model is used for a sample of 100 of the largest Bangladeshi companies to study the relationships between assurance, sustainability disclosure, industry membership and reporting format. Findings Authors’ results show that companies which produce more sustainability information are more likely to get their sustainability assured, to be from non-carbon intensive industries, and are more likely to integrate their sustainability information with the financial annual reports. Authors’ results support the argument that organisations based in weaker legal environments are more likely to secure assurance as this adds to the credibility and reliability of sustainability reports. Research limitations/implications This paper has limitations which raise some issues for future research. First, the authors have covered only large companies; therefore, future research could examine the differences between small and large companies in relation to assurance. Secondly, the authors’ data consist of company sustainability disclosure information in the fiscal year 2015. Longitudinal studies are recommended to extend this research. Finally, future research could examine the moderating effects of geographical location on the relationship between assurance (and its providers) and other variables. Practical implications The findings of this paper will prove valuable to practitioners and researchers. Practitioners, including assurance providers and sustainability reporting managers will benefit from authors’ study as it covers both the demand and supply side characteristics of assurance. Researchers will benefit from the study as it investigates assurance practices in the developing country of Bangladesh. Originality/value To the best of the authors’ knowledge, this is the first study to examine both the supply and demand sides of sustainability assurance in Bangladesh. Authors also introduce reporting format when measuring the relationship between assurance and its determinant factors at micro level. The study also links assurance to signalling theory.

scholarly journals The Moderating Influence of Competitive Environment on the Relationship between Marketing Mix Strategies and Performance of Tour Firms in Kenya

2020 ◽  
Vol 2 (4) ◽  
pp. p15
Author(s):  
Muriithi R. Ndegwa ◽  
Prof. Francis N. Kibera ◽  
Prof. Justus M. Munyoki ◽  
Prof. James M. Njihia
Keyword(s):  
Organizational Performance ◽  
Marketing Mix ◽  
Moderating Effect ◽  
Competitive Environment ◽  
Descriptive Research ◽  
Pertinent Data ◽  
Study Population ◽  
And Performance ◽  
The Right ◽  
The Relationship

This study examined the competitive environment’s moderating effect on the relationship between marketing mix strategies and tour firms’ performance in Kenya. The researcher adopted a descriptive research design and used a survey approach to collect pertinent data for analysis. The study population comprised all tour firms, both locally and foreign-registered, operating under the Kenya Association of Tour Operators (KATO) as of September 2019. Two hundred thirty-four tour firms were surveyed out of a population of 260 registered firms. Descriptive statistical and inferential analyses were conducted and regression analysis results were used to test the hypothesis. The study established a positive and significant moderating effect of Competitive Environment (CE) on the relationship between Marketing Mix Strategies (MMS) and the Organizational Performance (OP) of tour firms in Kenya. The study’s findings are significant to policymakers and stakeholders operating in the tourism industry.They accentuate the significance to tour firms in implementing the right kind of marketing mix strategies to maximize their organizational performance. The study recommends future studies in the same area be expanded to include other travel trade areas such as hoteliers and travel agencies. Such a study would increase the empirical knowledge in the subject matter while also extending the generalizability of the results.

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