On dimensions in corporate disclosure studies

AbstractPurpose – The purpose of this paper is to set out key issues on the dimensions in corporate disclosure studies, introduce the papers appearing in this special issue and set agenda for future corporate disclosure research. Design/methodology/approach – This is a discussion paper exploring key issues both theoretically and pragmatically.Findings – The paper finds that there are many dimensions in corporate disclosure studies that are under-researched. The paper argued that future disclosure studies should explore new and challenging determinants of corporate disclosure including socio-cultural factors. It encouraged researchers especially early career and doctoral researchers to experiment with alternative theoretical framing beyond agency theory, including multi-theoretical approaches whilst exploring different avenues of corporate disclosure besides annual reports. Furthermore, the paper encouraged qualitative disclosure studies and alternative analytical techniques complementary to regression models. Research limitations/implications – There is a possibility that the issues explored in this paper, and the other papers in this special issue, will lead to a considerable growth in academic studies in this area.Practical implications – The paper contributes to the growing debate on corporate disclosures.Originality/value – The paper sets an agenda for research into the various dimensions in corporate disclosures.Keywords: disclosure research; theoretical framing; disclosure avenues and regression modelsPaper type General revie

NGO accountability on environmentalism: a literature review of relevant issues and themes

This chapter, which is in themes, starts with a survey of the rise of environmentalism for the purpose of sustainability. It then evaluates the roles of nongovernmental organisations' (NGOs') self-regulation and government regulation on the need for accountability that ensures sustainability. NGOs' accountability is a way of making sure that stakeholders' social, environmental and economic sustainability are protected and rigorously evaluated. This chapter further examines what the enduring mechanisms should be if true accountability, which leads to sustainability, will be achieved to suggest a holistic accountability that involves downward and upward accountability. In doing so, this chapter utilised the identified five mechanisms that ensure the continuity of world sustainability, which is prima-facie, the objective of funders/donors, beneficiaries/stakeholders and the NGO's loop.N/

Insights regarding the applicability of semiotics to CSR communication research

The chapter argues for a linguistic based theory and analytical tool – Semiotics in evaluating the quality and authenticity of Corporate Social Responsibility Reports (CSRR). Despite the proliferation of studies on CSR communication, there is lack of consensus and cardinal methodological base for evaluating the quality of CSRR. Over the decades, the findings from the enormous studies on the subject have remained conflicting, unintegrated and often pedestrian or overlapping. Drawing on Semiotics – a linguistic-based theoretical and analytical tool, this chapter explores an alternative perspective to evaluating the quality and veracity of CSR reports. The author proposed a two-phased model that employed the Greimas semiotics narrative schema and the semiotic square of veridiction in drawing meanings from CSRR. The chapter advances CSR communication research by introducing a fundamental theoretical methodology

The challenges faced by integrating Islamic corporate governance in companies of Gulf countries with non-Islamic companies across border through merger and acquisition

One method of achieving company expansion to address new markets and access cheaper funds is through international mergers and acquisitions (M&A). The companies in the Gulf zone following Islamic principles are keen to engage with non-Islamic companies, for example, European companies to access the benefits of globalization. However, for such takeover to succeed, congruence between the organization culture and the control system is necessary. The potentially diverse external legal and political environments can generate areas of concerns, which can only be addressed through harmonization of the corporate and financial governance of such organizations. There is a considerable body of literature on differences between Islamic and conventional corporate governance (CG), especially on financial models. However, not much research has been conducted on international M&A between companies following Islamic and the conventional CG. Such research is necessary, especially between different Islamic countries, to better the understand critical issues and let companies make more informed decisions. This study investigates the variation and extent of the Shariah CG code compliances among Islamic companies in three Gulf countries, namely Saudi Arabia, Kuwait, and the United Arab Emirates, and how it affect international crossborder M&A among the companies with the western ones. It was found that despite the strong economic and cultural ties between the Gulf countries states; there was diversity in the application of Islamic law within the selected countries and its effect on the international M&A. This paper can provide some insights view in controlling and organizing the M&A activities between Islamic and non-Islamic financial institutions, as the Islamic governance in practical terms, cannot be viewed as an identical homogenous practice across the Islamic domain. Cultural variations do exist

The influence of multinational enterprises on subsidiaries: context matters

Purpose: This paper examines how differences in the institutional environment of a multinational enterprise (MNE) shape the role of management control systems (MCSs) and social capital in the headquarters-subsidiary relationship of an emerging economy MNE. Design/methodology/approach: A case study design was adopted in this research. Data was gathered by means of semi-structured interviews, document analysis and observations. Interviews were conducted at the Nigerian headquarter (HQ) and United Kingdom (UK) subsidiary of the Nigerian multinational enterprise. Findings: The study found that the subsidiary operated autonomously, given its residence in a stronger institutional environment than the HQ. Instead of the HQ depending on MCSs as a means of coordination and control, it relied on social capital that existed between the HQ and the subsidiary to coordinate and integrate the operation of the foreign subsidiary studied. Originality/value: The reliance on social capital as a means of coordination and control of the foreign subsidiary in this study is significant, given that previous studies have indicated that multinational HQs normally employ MCSs as a means of control of foreign subsidiaries. Also, while previous studies have suggested that MNEs HQs have better expertise which enables them to design and transfer MCSs to foreign subsidiaries, this study found that such expertise relates to the institutional environment from which the HQ is operating from. Through the lens of institutional sociology theory and social capital theory, these findings directly contribute to the literature on the transference of practices and control systems in accounting and international business literatures

Workplace fraud and theft in SMEs: evidence from the mobile telephone sector in Nigeria

Purpose - This study investigates employee fraud within small enterprises in the Nigerian mobile phone sector. It also seeks to understand the key factors that motivate employees to engage in fraudulent behaviours against their employers, and the consequences of these fraudulent behaviours on small businesses (SMEs) in Nigeria. Design/methodology/approach - The empirical study involves the use of quantitative research. Data was collected through structured questionnaires from 159 business owners, sales representatives, cashiers and suppliers. Frequency distribution, Percentages, Pearson correlation, and multiple regression analysis were used to analyse the collected data. Findings - The findings from this research shows a significant relationship between personal and organisational factors and employee theft. Particularly, organisational factors made the strongest positive contribution to employee theft. The research also revealed that employee theft had significant effects on employers but less significance on employees. In addition, the research revealed that many businesses did not have preventive measures against employee theft in their firms. Originality/Value – This study shows the relationship between different factors that could cause an employee to engage in fraudulent behaviours, particularly in SMEs in Nigeria

Corporate social responsibility performance and tax aggressiveness

This study investigated the effect of corporate social responsibility (CSR) performance on tax aggressiveness of listed firms in Nigeria. A cross-sectional research design was utilized for the study, and data were collected from the published annual reports. Using a sample of 50 companies for the period of 2007 to 2013, the findings of the study reveal that there is a negative relationship between CSR performance and tax aggressiveness in Nigeria. A significant relationship was also found between firm size and tax aggressiveness, though with mixed positive and negative results. In addition, the results reveal a negative and significant relationship between firm performance and tax aggressiveness, and the extent of tax aggressiveness is reinforcing. It can be concluded that firms are more or less likely to engage in tax aggressiveness depending on their CSR standpoints and dimension and other corporate characteristics. It is recommended that more attention should be given by tax administrations to understand conditions where tax aggressiveness is more likely and measures should be put in place to combat it

Post-regulation effect on factors driving environmental disclosures among Chinese listed firms

This study re-examines the factors that affect the level of Environmental Information Disclosures (EID) following the issuance of the “Environmental Information Disclosure Guidelines for Chinese Listed Companies”. The study is underpinned by stakeholder and legitimacy theories. Level of EID was measured for 100 Chinese companies using a scoring system and content analysis of their annual reports. The study explored the effect of ownership structure, managerial shareholding, economic power and industry classification on the level of EID using panel regression. The study revealed that with clearly spelt out guidelines, Chinese companies are prepared to disclose environmental information regardless of their economic power. We find that the overall level of EID in China remains lower when compared with developed economies. The findings are robust across several econometric models that sufficiently address various endogeneity problems. This paper contributes to the existing literature by using new and updated data to re-examine the factors that affect the level of EID among Chinese listed companies. The study is important and timely as it covers the period of 2014 - 2016 which is after the Chinese government strengthened the enforcement of EID. It highlights the effects of new regulations and underscored areas that still require government attention to foster effective environmental protection

The impact of community expectations on corporate community involvement disclosures in the UK

Despite increase mistrust between corporations and societies in the aftermath of the global corporate misbehaviours, the literature examining the impact of community concerns on corporate communications is undeveloped. Our paper is timely; it contributes to the literature on corporate social responsibility (CSR) by considering the impacts of community expectations on Corporate Community Involvement Disclosures (CCID) using a ten-year panel study. We advance CSR communication research by providing a fresh theoretical perspective – media-agenda-setting theory – to the broad CSR debate and the CCID subset of this debate. Our findings support the media-agenda theoretical expectation and provide important practice and policy recommendations for improving interactions between corporations and their communities

Impact of board independence on the quality of community disclosures in annual reports

This study investigates the link between board independence and the quality of community disclosures in annual reports. Using content analysis and a panel dataset from UK FTSE350 companies the results indicate a statistically significant relationship between board independence, as measured by the proportion of nonexecutive directors, and the quality of community disclosures, while holding constant other corporate governance and firm specific variables. The study indicates that companies with more non-executive directors are likely to disclose higher quality information on their community activities than others. This finding offers important insights to policy makers who are interested in achieving optimal board composition and furthers our understanding of the firm’s interaction with its corporate and extended environment through high-quality disclosures. The originality of this paper lies in the fact that it is the first to specifically examine the relationship between outside directors and community disclosures in annual reports. The paper contributes both to the corporate governance and community disclosure literature