Utilizing the theory of reasoned action in understanding students’ choice in selecting accounting as major

Many researchers have endeavoured to explore the factors that influence the choice of students to major in accounting. To this end, and by using the theory of reasoned action (TRA), this study contributes to the accounting education literature by providing empirical evidence on the relationship between selected intrinsic and extrinsic factors and the choice of students to major in accounting in a fast-developing country, Qatar. Using mixed methods for data collection and analysis; a questionnaire survey along with semi-structured interviews; the findings of the current study confirm the propositions of the TRA that student’s decision to major in accounting is shaped by attitudinal factors (personal interests, perception of accounting education including introductory course, and the perception of job prospects), as well as subjective norms factors (influence of instructor and the social influence from family and peers)

The Effect of Audit Committee’s Characteristics on the Audit Report Timeliness: Empirical Evidence from the UK

This paper examines the association between the attributes of the audit committees (ACs) and the audit report timeliness for UK FTSE350 companies over the period 2017 to 2019. In particular, we investigate the impact of AC’s attributes, namely, independence, gender, financial expertise, activity and size; as prescribed by the UK Corporate Governance code (2018) on the audit report lag (ARL). To this end, we employ the OLS regression with robust standard errors based on 633 firm-year observations. Our results indicate that AC’s independence and meeting frequency are associated with a reduction in audit report delay. However, the results also indicate that AC’s gender, financial expertise and size do not influence the audit report timeliness. More interestingly, the UK listed companies, which issue their annual reports during the busy reporting period tend to have longer ARL. In contrast, the high audit fees are significantly associated with shorter ARL. Contrary to the propositions of the critical mass theory, additional analysis reveals that high representation of female directors in ACs would deter the financial reporting timeliness, since it is associated with longer ARL. Our results are also robust for alternate measures for ACs’ attributes of size, activity and expertise. The findings of our study highlight the importance of ACs, as an internal governance mechanism, in enhancing the timeliness and the quality of companies’ financial reporting. It accentuates the role of independent director, as well as the ACs’ meeting, in alleviating any disputes and settling any issue that might hinder the external auditors to release timelier audit report. Our findings also direct the attention of the UK regulators to the importance of providing a clearer definition of the financial expertise required by ACs’ members. In addition, our results also direct the attention of the UK companies to the importance of choosing the female directors’ members in ACs based on their qualification and expertise, rather than their mere representation to satisfy the UK CG recommendation

The effect of political risk and corporate governance on bank stability in the MENA region: Did the Arab Spring uprisings matter?

This study examines the impact of political risk and corporate governance mechanisms (CGM) on bank stability. The research problem was addressed using a sample of 954 bank-year observations from 14 Middle East and North Africa (MENA) countries during the period 2010–2018 to take into account the effect of the recent uprisings that broke out in the MENA region (i.e., Arab Spring events). This study uses the three-Stage Least-Squares (3SLS) regression method for data analysis. It is found that political stability enhances banks’ financial stability. Regarding the impact of CGM, it is found that board size, board independence, managerial ownership, and audit committee size and meetings significantly and positively affect bank stability. In contrast, board meetings, board gender diversity, CEO duality, and institutional ownership significantly and negatively affect bank financial stability. By dividing the sample into two subsamples (Arab Spring countries and Non-Arab Spring countries), the results revealed that the Arab uprising events significantly affect the relationship between political stability, CGM, and bank stability

Risk and risk management practices: A comparative study between Islamic and conventional banks in Qatar

Purpose: This study aims to compare types and levels of risk and risk management practices (RMPs) including the recognition, identification, assessment, analysis, monitoring and control of risk in both Islamic and conventional banks. Design/methodology/approach: A questionnaire survey was conducted among the Islamic and conventional banks in Qatar, together with an analysis of archival data extracted from the Thomson Reuters Eikon database for the period 2009-2018. Data were analysed using descriptive statistics, ANOVA and regression analysis. Findings: Islamic banks encounter unique types and levels of risk that are not encountered by conventional banks. In Islamic banks, risks such as those of operation and Sharia non-compliance are perceived to be higher, while in conventional banks other risks such as those of credit and insolvency are higher; other risks, for example, liquidity risk, are faced by both. RMPs are determined by understanding risk and risk management, risk identification, risk monitoring and control and credit risk analysis, but not by risk assessment and analysis. However, the RMPs of the two types of bank are not significantly different, except in the analysis of credit risk. Research limitations/implications: The study contributes to the debate in the literature by developing a better understanding of the dynamism of risk management in Qatari banks, which can be extended to similar contexts in the region. However, the relatively small sample size in only one country limits the possibility of generalizing the findings. The survey methodology is based on the perception of bankers rather than their actual actions and does not provide in-depth analysis for each type of risk, especially credit risk. However, using archival data, in addition to those from the survey, minimises the bias that would result from depending on one source of data. Practical implications: The study provides valuable insights into the different types and levels of risk, as well as the RMPs in Islamic and conventional banks, which can help in guiding the future development and regulation of risk management in the banking sector of Qatar and its region. Originality/value: The study helps to explain the mixed results of previous studies that compare types and levels of risk and RMPs in Islamic and conventional banks. Using different types of data and analysis, it provides evidence from one of the fastest growing economies in the world. It also addresses the concerns over RMPs in banks since the global financial crisis.The Office of Academic Research in Qatar University. Grant number “QUSG-CBE-ASI-13/14-13”

Board Diversity and Financial Performance: Empirical Evidence From The United Kingdom

Purpose: This study aims to investigate the relationship between board diversity and financial performance from a wide perspective, including multiple dimensions of board diversity

The effect of board diversity on disclosure and management of greenhouse gas information: evidence from the United Kingdom

Purpose: The global interest in climate change makes carbon information important for decision-making. This study examines to what extent companies voluntarily disclose and manage greenhouse gas (GHG) information and whether board diversity and industry type explain variations in the level of disclosure and management of GHG information. Design/methodology/approach: Cross-sectional data analysis is used for the Financial Stock Exchange 350 (UK FTSE 350) in 2017. Disclosure of GHG information is measured using the scores of the Carbon Disclosure Project (CDP), whereas board diversity is measured using gender diversity, board tenure and board skills. The control variables include firm size, leverage, industry type, board meetings, board size, board independence and CEO duality. Ordinal logistic regression (OLR) is used for data analysis. Findings: The results indicate that representation of female directors in the board of directors positively influences disclosure and management of GHG information. Conversely, a high percentage of directors with a financial and industrial background negatively affects GHG information, while board tenure has no significant effect on GHG information. Concerning the control variables, only firm size and industry type are significant in their relationships to GHG information. Research limitations/implications: The main limitation of the study is investigating only few variables of board diversity. Future studies could investigate other variables such as cultural diversity and age diversity. Furthermore, cross-sectional data analysis cannot capture the dynamic casual impact between the determinants of disclosure and management of GHG information. Future studies could use long-term data, which may yield results that are more significant. Originality/value: The study emphasizes the importance of the role of female directors in ensuring more transparency toward climate change activities. The findings of this study could be of interest to policymakers and stakeholders and could be used to take initiatives to reduce gender bias and increase the percentage of women in the boardroom. It is also likely to be beneficial for investors and stakeholders to evaluate carbon footprint of businesses and to assess the extent to which they meet their environmental responsibility

Enterprise governance and value-based management: a theoretical contingency framework

In an attempt to provide a better understanding of the tension between conformance and performance in the governance context, this study develops a conceptual model for enterprise governance (EG) from the contingency theory perspective. The study argues that the value-based management (VBM) approach can achieve the objectives of EG, keeping the right balance between conformance and performance. Therefore, the study investigates the implications of fit between four contingency factors and VBM on organisational performance using corporate governance (CG) mechanisms and corporate entrepreneurship as mediating factors. The study contributes to the literature by linking a performance management system, i.e. VBM, to the EG framework aiming to bridge the gap between management accounting, CG and entrepreneurship disciplines

Attributes of corporate boards and assurance of corporate social responsibility reporting: evidence from the UK

Purpose: This study aims to investigate the relationship between the attributes of corporate boards in UK companies and their tendency to assure their corporate social responsibility (CSR) reports. Design/methodology/approach: From the agency theory perspective, the authors examine the impact of board attributes on the assurance of CSR reports for the Financial Times Stock Exchange (FTSE) 350 during 2016–2019. The authors used annual integrated reports, companies’ websites and Thomson Reuters Eikon database for data collection and the logistic regression for data analysis. Findings: The results confirm that some board attributes significantly influence a company’s decision to assure its CSR reports. While board size, board tenure, the presence of female board members and female executive directors and Chief Executive Officers (CEOs)’ global working experience positively contribute to CSR assurance (CSRA) decisions, the chairman’s independence negatively contributes to it. However, board independence, board meetings and board financial expertise demonstrate no effect on the CSRA decision. Research limitations/implications: The authors focus on some attributes of board members, but the authors did not consider board diversity in its broader meaning. Moreover, the effect of board committees and their attributes on CSRA was not addressed. The authors also did not consider the impact of scope, the quality level of assurance service and the differences between assurance providers on companies’ decisions to neither undertake CSRA nor choose between assurance providers. Practical implications: The study provides insights into the increasing demand on voluntary assurance to boost the credibility of CSR reports and the role of the board of directors (BOD) in taking this initiative. The findings highlight the importance of board diversity (e.g. gender) in improving transparency and sustainability reporting, which can help policymakers and regulators in shaping future governance policies. Additionally, the findings refer to a drawback in the UK Corporate Governance Code regarding the chairman’s independence, which requires corrective actions from the Financial Reporting Council. The findings raise concern over the small share of audit firms in the assurance service market, despite the growing demand for these services in the UK, which may require more attention to these services from the audit firms. Social implications: Companies are increasingly pressurized, especially after the COVID-19 pandemic, to discharge their accountability to stakeholders and to act in a socially responsible manner in their business activities. CSR reporting is one of the main tools that companies use to communicate their social activities. Understanding the determinants of voluntary CSRA helps to increase the credibility of CSR reports and the favorable response to social pressure. Originality/value: The authors add empirical evidence to the limited literature on CSRA about the role of the BOD in undertaking companies’ social responsibility, improving CSR reporting and reducing information asymmetry. It also highlights the significance of maintaining a balanced BOD in terms of gender, experience and tenure, in minimizing the risk of perpetuating non-transparent integrated reporting

Does compliance with corporate governance code hinder corporate entrepreneurship? Evidence from the UK

Purpose: This paper aims to investigate the possible trade-off between accountability and enterprise in the context of comply or explain governance. The issue was addressed through examining the effect of compliance with the corporate governance code (CGC) on corporate entrepreneurship (CE) and organisational performance. Design/methodology/approach: Based on cross-sectional survey and content analysis of annual reports, the level of CE and compliance with the CGC were measured in the large and medium-listed companies in the UK during 2010. Partial least squares structural equation modelling (PLS-SEM) was used for data analysis. Findings: The results suggest no conflict between compliance with the CGC and CE in the UK, which can be attributed to the flexibility of the 'comply or explain' approach. This implies that no trade-off between accountability and enterprise in the context of comply or explain governance. Practical implications: The study provides evidence in support of the regulatory governance framework in the UK and the comply or explain approach at large. This evidence contributes to the debate on the rules-based or principles-based governance, which may affect future CG regulations. It can also guide the directors to achieve the balance between their conformance and performance roles. Originality/value: The study bridges the gap between CG and CE disciplines through developing a theoretical model that integrate contingency and agency theories lenses. Adopting a holistic approach provides insights into the relationships between CG and CE, rather than investigating the effect of each of these practices separately on organisational performance. 2016, Emerald Group Publishing Limited.Scopu

Political connections, media coverage and firm performance: evidence from an emerging market

Purpose: The purpose of this study is to investigate the effect of politically connected directors (PCDs), media coverage and their interaction on firm performance in an emerging market economy (UAE). Design/methodology/approach: This study relies on the agency theory and the resource dependency theory and uses a panel data set of a sample of non-financial firms listed in the UAE stock market from 2009 to 2016. Data were analyzed using fixed-effects regression. Instrumental variable regression was used to address potential endogeneity. Findings: PCDs and media are positively associated with firm performance (ROE and Tobin’s q). Media moderates the PCDs–performance relationship, as the interaction between PCDs and media coverage is negatively associated with firm performance. Under growing media attention, reputational concerns prevent PCDs from using their connections to gain particular advantages to their firms to avoid damaging their image. Practical implications: Regulators need to acknowledge and define the roles of PCDs and media in business governance. Originality/value: To the best of authors’ knowledge, this study is the first empirical examination testing the effect of the interplay between PCDs and media on firm performance in an emerging market economy such as UAE