Template-Type: ReDIF-Article 1.0 Author-Name: Lan Sun Author-X-Name-First: Lan Author-X-Name-Last: Sun Title: Executive compensation structure and earnings management: evidence from Australian listed firms in the period of governance reform Abstract: Executive compensation incentive is a key factor in inducing management of earnings in firms. Using a sample of 3,326 firm-year observations covering 2000 to 2006 fiscal years, the analysis shows that in Australia managers who receive higher salary tend to engage in less earnings management whereas managers who receive more incentive payments tend to engage in more earnings management. Moreover, Australian firms are committed to a gradual increase in the incentive payments in responding to the regulation reform known as CLERP 9. Subsequently, executives who receive more option grants are more likely to engage in earnings management. These findings will have implications for regulators who intend to improve both the efficacy of CEO compensation structure and financial reporting quality. Journal: Int. J. of Corporate Governance Pages: 1-35 Issue: 1 Volume: 12 Year: 2021 Keywords: earnings management; executive compensation; CLERP 9. File-URL: http://www.inderscience.com/link.php?id=117208 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:1:p:1-35 Template-Type: ReDIF-Article 1.0 Author-Name: Ruch Tewari Author-X-Name-First: Ruch Author-X-Name-Last: Tewari Author-Name: Ekta Sharma Author-X-Name-First: Ekta Author-X-Name-Last: Sharma Author-Name: Anupam Singh Author-X-Name-First: Anupam Author-X-Name-Last: Singh Title: India-specific corporate social responsibility-consumer perception scale Abstract: The current study attempts to present a novel, statistically validated, India-specific CSR-consumer perception scale (CSR-CPS). No other similar scale is available which was tested after CSR was made mandatory in India and was tested across different sectors. The study was carried out in two phases. Phase one included identifying CSR attributes from the past literature and consultation with experts to check the content validity of the statements. Based on their inputs a questionnaire was designed. In phase two, data was collected from 750 customers of four different industries-telecom, apparel, banking and retail. The results for the scale were refined by exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). Structural equation modelling (SEM) approach was used to analyse and validate the CSR-CPS. The scale can be used by policymakers, CSR consultants and firms in India to design and implement targeted and focussed CSR strategies. Journal: Int. J. of Corporate Governance Pages: 57-78 Issue: 1 Volume: 12 Year: 2021 Keywords: corporate social responsibility; CSR; consumer perception; scale; India; structural equation modelling; SEM; Indian Company Act 2013; mandatory CSR; perception scale. File-URL: http://www.inderscience.com/link.php?id=117210 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:1:p:57-78 Template-Type: ReDIF-Article 1.0 Author-Name: Aws AlHares Author-X-Name-First: Aws Author-X-Name-Last: AlHares Title: Corporate governance mechanisms and R%D intensity in OECD countries Abstract: The effect of ownership structure and board structure on risk-taking as calculated by R%D intensity in OECD countries is investigated in this study. Around 2010 and 2019, a panel of 300 businesses from Anglo-American and European countries were used. The relationships are investigated using the ordinary least square multiple regression analysis technique. The findings are robust to alternative measures and endogeneities. The findings suggest that institutional ownership, board size, independent directors, and board diversity all have a negative impact on risk-taking, with Anglo-American countries having a greater impact among Continental European countries. Director ownership, on the other hand, is statistically insignificant, according to the findings. This study contributes to the current corporate governance literature by providing additional evidence on the impact of ownership and board structure on risk-taking in two different cultures. The findings will help OECD regulators and policymakers in assessing the effectiveness of recent corporate governance reforms in preventing management misconduct and scandals. Journal: Int. J. of Corporate Governance Pages: 36-56 Issue: 1 Volume: 12 Year: 2021 Keywords: corporate governance; R%D intensity; OECD; agency theory; board structure; ownership structure. File-URL: http://www.inderscience.com/link.php?id=117211 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:1:p:36-56 Template-Type: ReDIF-Article 1.0 Author-Name: Zeineb Feki-Cherif Author-X-Name-First: Zeineb Author-X-Name-Last: Feki-Cherif Author-Name: Saoussen Boujelben Author-X-Name-First: Saoussen Author-X-Name-Last: Boujelben Author-Name: Salma Damak-Ayadi Author-X-Name-First: Salma Author-X-Name-Last: Damak-Ayadi Title: The relationship between the socio-emotional wealth dimensions and earnings management by thresholds: evidence from French family companies Abstract: The objective of this study is to investigate the relationship between a two socio-emotional wealth dimensions, (i.e., family control and influence and the transgenerational sustainability), and the family managers' willingness to manipulate earnings level to meet or beat zero threshold. Based on an initial sample including all listed firms on CAC All-Tradable during 2014 to 2016, we extracted a final sub-sample composed of 124 observations of suspected family-firms. We developed two proxies for family control and influence dimension, i.e., the proportion of family board directors and the appointment of a family CEO. We proxied the family interest to preserve the transgenerational sustainability by the firm belonging to the founding generation. We found positive relationship between the proportion of family board directors, the generation to which a family firm belongs and earnings management to avoid loss reporting using real activities. The relationship strengthens after the fiscal year end as all variables measuring the family attachment to the SEW dimensions are significant determinant of discretionary accruals to reach zero threshold. Journal: Int. J. of Corporate Governance Pages: 79-104 Issue: 1 Volume: 12 Year: 2021 Keywords: socio-emotional wealth; family control and influence; transgenerational sustainability; earnings management; zero threshold. File-URL: http://www.inderscience.com/link.php?id=117212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:1:p:79-104 Template-Type: ReDIF-Article 1.0 Author-Name: Wael Aguir Author-X-Name-First: Wael Author-X-Name-Last: Aguir Author-Name: Iness Aguir Author-X-Name-First: Iness Author-X-Name-Last: Aguir Author-Name: Wafa Khlif Author-X-Name-First: Wafa Author-X-Name-Last: Khlif Title: Firm performance and managerial entrenchment: the case of Tunisian family firms Abstract: This study aims to verify empirically, in the case of a group of family firms in Tunisia, the effect of managerial entrenchment on firms' performance. The results of the principal component regression show that the entrenchment concept is well explained by two dimensions: 'experience capitalisation' and 'skills - belongings'. Both of these dimensions positively affect firms' performance, with the latter significantly so. The positive effect of experience capitalisation is thwarted by the old managers belonging to the same relational networks as the equity holders. Overall, we find support for our hypothesis that managerial entrenchment positively affects firm performance in the case of family firms. We also find that the relationship between entrenchment and performance seems to be nonlinear. Journal: Int. J. of Corporate Governance Pages: 105-123 Issue: 2 Volume: 12 Year: 2021 Keywords: family firms; managerial entrenchment; firm performance; Tunisia. File-URL: http://www.inderscience.com/link.php?id=119271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:2:p:105-123 Template-Type: ReDIF-Article 1.0 Author-Name: Nesrine Sassi Author-X-Name-First: Nesrine Author-X-Name-Last: Sassi Author-Name: Salma Damak-Ayadi Author-X-Name-First: Salma Author-X-Name-Last: Damak-Ayadi Title: Impact of International Financial Reporting Standard for small and medium-sized enterprises on corporate governance Abstract: This research aimed to examine the relationship between the mandatory adoption of the International Financial Reporting Standard for small and medium-sized entities (IFRS for SMEs) and corporate governance by developing a corporate governance index (CGI). The empirical analysis was based on a multivariate regression investigating SMEs in two countries that adopt the IFRS for SMEs, namely the Dominican Republic and El Salvador. Our findings show that the mandatory adoption of IFRS for SMEs has a positive and significant effect only on the CGI of Salvadoran SMEs. Our results contribute to providing standard setters and SME managers with a better understanding of the effect of the mandatory IFRS for SMEs application on the quality of governance. This study is among the first to build an index that measures the corporate governance quality in the context of SMEs and to analyse the association between the mandatory adoption of IFRS for SMEs and corporate governance in SMEs. Journal: Int. J. of Corporate Governance Pages: 124-156 Issue: 2 Volume: 12 Year: 2021 Keywords: IFRS for SMEs; corporate governance index; CGI; SMEs; mandatory adoption; Dominican Republic; El Salvador. File-URL: http://www.inderscience.com/link.php?id=119277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:2:p:124-156 Template-Type: ReDIF-Article 1.0 Author-Name: Habib Ur Rahman Author-X-Name-First: Habib Ur Author-X-Name-Last: Rahman Author-Name: Mehwish Awan Author-X-Name-First: Mehwish Author-X-Name-Last: Awan Author-Name: Syed Muhammad Amir Shah Author-X-Name-First: Syed Muhammad Amir Author-X-Name-Last: Shah Title: Does corporate social responsibility affect financial performance? Revisiting this vexing question under Arellano-Bond framework Abstract: This study examines the impact of corporate social responsibility (CSR) on the financial performance of commercial banks of Pakistan under the regulatory environment of SECP Voluntary Guidelines 2013. Our framework of analysis is based on slack resource theory, good management theory, and stakeholders' theory of CSR. The existing empirical literature on CSR might be subject to potential issues, including multicollinearity, profit persistence, and endogeneity. Therefore, we apply the dynamic panel model under the Arellano-Bond framework to avoid the estimation issue and arrive at the unbiased and consistent estimates. The results of this empirical investigation reveal mixed evidence on this nexus. Community investment deteriorates the financial performance of the banking sector in Pakistan. Commercial banks switched their reporting and reporting disclosures due to some regulatory and operational changes in 2015. Considering this fact, we conduct a restricted analysis under the Arellano-Bond framework. The results of our restricted analysis reveal that product responsibility plays a positive and significant role in the financial performance of Pakistani banks under certain conditions. We could not find any other evidence of the positive impact of any other dimension of corporate social responsibility on the financial performance of the Pakistani banking sector. Journal: Int. J. of Corporate Governance Pages: 157-184 Issue: 2 Volume: 12 Year: 2021 Keywords: corporate social responsibility; CSR; financial performance; stock returns; product responsibility; community investment; work-life balance; WLB; bank size; return on assets; return on equity. File-URL: http://www.inderscience.com/link.php?id=119288 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:2:p:157-184 Template-Type: ReDIF-Article 1.0 Author-Name: Sami Gharbi Author-X-Name-First: Sami Author-X-Name-Last: Gharbi Author-Name: Hidaya Othmani Author-X-Name-First: Hidaya Author-X-Name-Last: Othmani Title: Family ownership and R%D investment: the moderating role of institutional investors Abstract: In this paper, we investigate the relationship between family ownership and R%D investments for a sample of French firms. We also examine whether institutional ownership has a moderating role on this relationship. First, we test the impact of institutional ownership concentration. Then, we consider the heterogeneous character of institutional investors and we divide them according to whether they have business relations with investee firms (pressure sensitive institutions such as banks and insurance companies) or not (pressure insensitive institutions such as pension funds, mutual funds and hedge funds). Our results show a significant negative influence of family ownership on R%D investments. Furthermore, institutional blockholders and pressure insensitive institutional investors positively moderate the relationship between R%D investment and family ownership. We contribute to the literature on the impact of principal-principal agency problems on corporate investment decisions. Our results point out that institutional ownership can mitigate the agency problems between majority and minority shareholders in firms with family ownership. Journal: Int. J. of Corporate Governance Pages: 185-207 Issue: 2 Volume: 12 Year: 2021 Keywords: R%D investment; family ownership; institutional ownership; agency theory; socio-emotional wealth theory; institutional theory. File-URL: http://www.inderscience.com/link.php?id=119292 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:12:y:2021:i:2:p:185-207