Template-Type: ReDIF-Article 1.0 Author-Name: Assem Orazayeva Author-X-Name-First: Assem Author-X-Name-Last: Orazayeva Author-Name: Muhammad Arslan Author-X-Name-First: Muhammad Author-X-Name-Last: Arslan Title: Employee ownership, corporate social responsibility and financial performance: evidence from the UK Abstract: This study examines the impact of employee ownership on corporate social responsibility (CSR) and financial performance of 72 publicly listed UK firms for the period from 2011 to 2020. The objective of this study is to evaluate the magnitude and significance of the relationship. Prior literature presents limited evidence of the effects of employee ownership on social and financial aspects of firm performance, with focus on other ownership types. However, recent turbulent years caused by the global pandemic put employees as a stakeholder group under the spotlight, not only showing their importance but also vulnerability, thereby motivating this study to address employee-related issue. Contrary to the initial predictions of this study, we found small negative statistically significant coefficient between employee ownership and CSR. The link between CSR and financial performance was also observed to be negative, though the result lacks statistical significance. The study makes both theoretical and practical contributions by expanding current literature on employee ownership effects, as well as adding evidence for practitioners who consider changes in the ownership structure. Journal: Int. J. of Managerial and Financial Accounting Pages: 362-377 Issue: 4 Volume: 14 Year: 2022 Keywords: corporate social responsibility; CSR; financial performance; UK; ownership; employee; stakeholders. File-URL: http://www.inderscience.com/link.php?id=126551 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:4:p:362-377 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio D'Amato Author-X-Name-First: Antonio Author-X-Name-Last: D'Amato Author-Name: Emiliano Mastrolia Author-X-Name-First: Emiliano Author-X-Name-Last: Mastrolia Title: Linear discriminant analysis and logistic regression for default probability prediction: the case of an Italian local bank Abstract: This paper presents methods to estimate the probability of default (PD), a crucial parameter in bank credit risk management, rating estimation and loan pricing. Based on a sample of 505 firms from the loan portfolio of an Italian local bank and using financial indicators, we develop a linear discriminant model for predicting firm default, and we use logistic regression to directly estimate PD. The results highlight that both estimated models can correctly classify over 95% of sampled firms. However, the logistic model performs better in reducing type I error. Notably, the logistic model provides the PD estimate that is most in line with the bank's estimate of ex post PD. The results are robust to several checks. Therefore, in small banks, logistic regression represents a useful tool for estimating firm PD and for improving pricing and credit monitoring strategies. Journal: Int. J. of Managerial and Financial Accounting Pages: 323-343 Issue: 4 Volume: 14 Year: 2022 Keywords: default probability; PD; credit scoring; discriminant analysis; logistic regression; Italy. File-URL: http://www.inderscience.com/link.php?id=126552 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:4:p:323-343 Template-Type: ReDIF-Article 1.0 Author-Name: Soufiene Assidi Author-X-Name-First: Soufiene Author-X-Name-Last: Assidi Author-Name: Omar Al Farooque Author-X-Name-First: Omar Al Author-X-Name-Last: Farooque Author-Name: Khaldoon Albitar Author-X-Name-First: Khaldoon Author-X-Name-Last: Albitar Title: The nexus between aggressive tax planning and earnings management in different political systems and the moderating role of corporate governance Abstract: This paper explores first the relationship between aggressive tax planning (TP) and earnings management (EM) in European listed companies and then compares this relationship between different political systems. It also examines the moderating role of board governance on aggressive TP and EM relationship. Using panel data of 105 companies listed on the EURONEXT 100 and NEXT 150 for the period 2011 to 2018 and alleviating endogeneity concern, the results show a significant positive relationship between aggressive TP and EM, where firms that tend to use EM practices have lower effective tax rate (ETR). Such relationship is more pronounced in countries with a Presidential system compared to parliamentary/quasi-parliamentary system. Again, board governance variables (i.e. board size and independence) show significantly negative moderating effect, suggesting that board plays an effective role in deterring EM practices by weakening the relationship between ETR and EM. These findings have important policy implications for respective stakeholders. Journal: Int. J. of Managerial and Financial Accounting Pages: 344-361 Issue: 4 Volume: 14 Year: 2022 Keywords: aggressive tax planning; TP; earnings management; EM; effective tax rate; ETR; political system; European. File-URL: http://www.inderscience.com/link.php?id=126559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:4:p:344-361 Template-Type: ReDIF-Article 1.0 Author-Name: Muqaddam Oyetunji Ali Author-X-Name-First: Muqaddam Oyetunji Author-X-Name-Last: Ali Author-Name: Wan Amalina Bt. Wan Abdullah Author-X-Name-First: Wan Amalina Bt. Wan Author-X-Name-Last: Abdullah Title: The influence of audit committee characteristics on investment in internal audit: the moderating role of family ownership Abstract: This paper examines the influence of audit committee (AC) characteristics on investment in internal audit function (IAF) in Malaysia. Furthermore, the moderating role of family ownership on the relationship between investment in IAF and AC characteristics was examined in this study. A balanced panel data was employed. The data was obtained from the annual reports of the top 150 public listed companies in Bursa Malaysia from 2011 to 2019. The findings shows that investment in IAF is positively related to the frequency of AC meetings, but negatively related to the presence of accounting expert, percentage of independent directors and the average tenure of AC members. Also, the findings show that family ownership moderates the relationship between the characteristics of AC and investment in IAF. This result has implications for policymakers as the study suggest that IAF and AC are important corporate governance mechanism in ensuring quality of financial reporting. Journal: Int. J. of Managerial and Financial Accounting Pages: 295-322 Issue: 4 Volume: 14 Year: 2022 Keywords: investment; internal audit function; audit committee characteristics; family ownership. File-URL: http://www.inderscience.com/link.php?id=126560 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:4:p:295-322 Template-Type: ReDIF-Article 1.0 Author-Name: Tarek Sadraoui Author-X-Name-First: Tarek Author-X-Name-Last: Sadraoui Author-Name: Nidhal Mgadmi Author-X-Name-First: Nidhal Author-X-Name-Last: Mgadmi Author-Name: Nasreddine Chetti Author-X-Name-First: Nasreddine Author-X-Name-Last: Chetti Title: Does financial crisis really affect French economic growth? Fresh insights from nonlinear approach Abstract: In this paper, we attempt to analyse the financial crisis impact on the French economic growth in France. To this end, we use the industrial production index, the consumer price index, the money market rate and the transactions volume during the period from 2000 to 2015. We also employ a nonlinear approach to study such effect and identify the existence of a nonlinear long-term relationship between variables. The empirical results clearly show that the linear and nonlinear coefficients of the shifted residuals for a single period have negative and positive signs. Therefore, French economic growth has a nonlinear dynamic towards its fundamental value. Journal: Int. J. of Managerial and Financial Accounting Pages: 378-394 Issue: 4 Volume: 14 Year: 2022 Keywords: financial crisis; French; economic growth; nonlinear models. File-URL: http://www.inderscience.com/link.php?id=126561 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:4:p:378-394 Template-Type: ReDIF-Article 1.0 Author-Name: Harri Seppänen Author-X-Name-First: Harri Author-X-Name-Last: Seppänen Author-Name: Timo Teinilä Author-X-Name-First: Timo Author-X-Name-Last: Teinilä Title: Two minds of credit professionals: accrual vs. cash accounting information Abstract: To explore in what ways and what elements of financial statement information is important for credit practitioners, we employ a survey method to obtain new evidence. We ask if there is evidence on the existence of two different types of views to accounting information, namely accrual accounting and cash accounting emphasis. The two views come out robustly throughout our analysis, and they are consistently linked both to credit professional's experience, and task complexity. We infer our evidence to be consistent with the explanations for co-existence of differential information preferences advanced in behavioural accounting literature related to individuals' cognitive constraints in use of accounting information. We discuss the implications of our results for credit professionals, accounting standard setters and researchers. Journal: Int. J. of Managerial and Financial Accounting Pages: 56-83 Issue: 1 Volume: 14 Year: 2022 Keywords: financial statements; credit professionals; cash accounting; accrual accounting; accounting information; behavioural; rational inattention; limited attention; information preferences; experience; task complexity; survey. File-URL: http://www.inderscience.com/link.php?id=120933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:1:p:56-83 Template-Type: ReDIF-Article 1.0 Author-Name: Jamshid Alinasab Author-X-Name-First: Jamshid Author-X-Name-Last: Alinasab Author-Name: Seid Mohammad Reza Mirahmadi Author-X-Name-First: Seid Mohammad Reza Author-X-Name-Last: Mirahmadi Author-Name: Hassan Ghorbani Author-X-Name-First: Hassan Author-X-Name-Last: Ghorbani Author-Name: Francesco Caputo Author-X-Name-First: Francesco Author-X-Name-Last: Caputo Title: Managing SMEs' internationalisation process. A Delphi approach for identifying antecedent factors Abstract: Entering in the international market to increase sales presents challenges, problems, and various factors that must be considered to make an effective decision. Nevertheless, the nature of companies' scale is also an essential parameter, which is inherently limited in small and medium-sized enterprises compared to large corporations. The study's primary objective is to use the Delphi method to determine the factors that influence small and medium-sized enterprises' decision to enter the international market. A non-randomised, purposeful judgmental approach was employed in sampling to choose experts in the Delphi procedure, and 39 experts eventually participated in this investigation. Finally, 18 factors and 72 sub-factors were verified after three stages. Journal: Int. J. of Managerial and Financial Accounting Pages: 1-19 Issue: 1 Volume: 14 Year: 2022 Keywords: internationalisation; international market entry; Delphi approach; small and medium sized enterprises; SMEs; decision-making. File-URL: http://www.inderscience.com/link.php?id=120934 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Elshabyta Auditya Bintarto Author-X-Name-First: Elshabyta Auditya Author-X-Name-Last: Bintarto Author-Name: Mohammad Nasih Author-X-Name-First: Mohammad Author-X-Name-Last: Nasih Author-Name: Imran Haider Author-X-Name-First: Imran Author-X-Name-Last: Haider Author-Name: Iman Harymawan Author-X-Name-First: Iman Author-X-Name-Last: Harymawan Author-Name: Fajar Kristanto Gautama Putra Author-X-Name-First: Fajar Kristanto Gautama Author-X-Name-Last: Putra Title: Managerial compensation, family firms and firms' innovation: evidence from Indonesia Abstract: The purpose of this paper is to examine the impact of executive compensation, family firm concentration, and their association to firm innovation (proxied by R%D activities and intangible assets). Research and development intensity levels imply the firm's long-term commitment to the innovation and development of the firm. Management compensation is one of the fundamental incentives to motivate investing in R%D activities and products of innovation. Our sample consists of 988 Indonesian listed companies for the period of 2013-2017. Overall, the results indicate that the managerial compensation is positively related, whereas family firm concentration is negatively related to firms' innovation (proxied by R%D investment and intangible assets). Findings suggest that total compensation given to executives and commissioners motivates them to invest more in their R%D activities and innovation product. We contribute to the literature on managerial compensation and firm innovation in Indonesian settings. This study provides insight as it uses several proxies and endogeneity tests which confirms the prior studies' result. Journal: Int. J. of Managerial and Financial Accounting Pages: 35-55 Issue: 1 Volume: 14 Year: 2022 Keywords: managerial compensation; family firms; innovation; R%D investment; intangible assets; Indonesia. File-URL: http://www.inderscience.com/link.php?id=120936 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:1:p:35-55 Template-Type: ReDIF-Article 1.0 Author-Name: Issam Tlemsani Author-X-Name-First: Issam Author-X-Name-Last: Tlemsani Title: Conventional vs. Islamic debt-equity portfolio swaps Abstract: This conceptual paper investigates debt-equity portfolio swaps as a solution to post-SARS-CoV-2 pandemic public and private debt. The emphasis in the paper is the need to be less reliant on a debt-based system. The findings indicate that the replications of a conventional portfolio into an Islamic portfolio are compatible with the regulatory standard, sharia boundaries, and professional practices developed from investment theory. Data was collected monthly from 2016 to 2021, and the result confirmed that the Islamic portfolios have a higher return and less risk than conventional portfolios. The implications of this research are to provide a road map to the regulators, policymakers, governments and the financial industry on how to rearrange some of the public and private debt. A likely remedy is the incorporation of Islamic financial instrument principles through the equitisation of public and private debt. Journal: Int. J. of Managerial and Financial Accounting Pages: 20-34 Issue: 1 Volume: 14 Year: 2022 Keywords: portfolio replication; debt-equity swaps; Islamic portfolio; debt; equity system. File-URL: http://www.inderscience.com/link.php?id=120938 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:1:p:20-34 Template-Type: ReDIF-Article 1.0 Author-Name: Obiajulu Chibuzo Okeke Author-X-Name-First: Obiajulu Chibuzo Author-X-Name-Last: Okeke Author-Name: Wisdom Okere Author-X-Name-First: Wisdom Author-X-Name-Last: Okere Author-Name: Chinnan Francis Dafyak Author-X-Name-First: Chinnan Francis Author-X-Name-Last: Dafyak Author-Name: Mary-Fidelis Chidoziem Abiahu Author-X-Name-First: Mary-Fidelis Chidoziem Author-X-Name-Last: Abiahu Title: Inventory management and financial sustainability: insight from quoted manufacturing firms in Nigeria Abstract: This study analysed inventory management emphasis and its possible effect on financial sustainability of Nigerian quoted manufacturing firms. The study made use of the research design, ex-post facto. The study focused on manufacturing firms and ten were purposely sampled from the Nigerian Stock Exchange. Secondary data were obtained from the annual financial reports of the selected manufacturing firms over a ten-year period, 2008-2017. Descriptive statistics and inferential statistics (panel regression) were the analyses conducted for the study. The findings which emanated from the analysis indicated inventory turnover having a significant positive effect on financial sustainability. The conclusion of the study was that inventory management influences financial sustainability significantly. It also recommended that management of companies should develop and implement policies that will ensure good inventory management and also consider the policies of their suppliers and customers purchase pattern in order to have sustainable financial performance. Journal: Int. J. of Managerial and Financial Accounting Pages: 84-97 Issue: 1 Volume: 14 Year: 2022 Keywords: inventory management; inventory turnover; ITO; financial sustainability; return on asset; ROA; debt to equity; earning capacity; relative solvency ratio; RSR; manufacturing companies; Nigeria. File-URL: http://www.inderscience.com/link.php?id=120939 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:1:p:84-97 Template-Type: ReDIF-Article 1.0 Author-Name: Domenico Graziano Author-X-Name-First: Domenico Author-X-Name-Last: Graziano Author-Name: Domitilla Magni Author-X-Name-First: Domitilla Author-X-Name-Last: Magni Title: Unpacking the sustainability of sovereign wealth funds. The effect of financial performances on sustainability disclosure Abstract: This paper investigates the effects of sovereign wealth funds (SWFs) on the competitiveness of target companies by analysing whether the financial performance of target companies affects the sustainability disclosures by SWFs. To test our research hypotheses, a sample of 11 international SWFs was explored by multiple regression analysis. The study suggests a moderating effect owing to the size variable in the relation between firms' values and SWFs' sustainability disclosures. Findings support all the hypotheses of the study and provide relevant insights for scholars, managers, and policymakers who are interested in discovering the connection between sustainability disclosures by SWFs and company performance. Furthermore, the study contributes to extend the literature on SWFs and sustainability disclosure, offers original solutions for regulators and practitioners, and fills the gaps existing in previous studies that ignored the moderating role of company size in the relation between firms' performance and SWFs' sustainability disclosures. Journal: Int. J. of Managerial and Financial Accounting Pages: 157-183 Issue: 2 Volume: 14 Year: 2022 Keywords: sovereign wealth funds; SWFs; sustainability disclosure; portfolio investment; financial performance; target company; equity investments; size effect. File-URL: http://www.inderscience.com/link.php?id=122222 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:2:p:157-183 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Tsiouni Author-X-Name-First: Maria Author-X-Name-Last: Tsiouni Author-Name: Dimitrios Gourdouvelis Author-X-Name-First: Dimitrios Author-X-Name-Last: Gourdouvelis Author-Name: Stamatis Aggelopoulos Author-X-Name-First: Stamatis Author-X-Name-Last: Aggelopoulos Author-Name: Dario Siggia Author-X-Name-First: Dario Author-X-Name-Last: Siggia Title: Improve the financial management practices in goat farms with the study of financial ratios. The case of Greece Abstract: In recent years, the goat sector in Greece has been transformed in business ranking. The sustainability of the sector can be ensured through financial analysis. The application of financial ratios can provide information about the assessment and improvement of farms' economic sustainability and efficiency. The purpose of this study is the calculation of the average financial ratios in goat farms, in the regional unit of Thessaloniki, Greece, according to their size and to provide solutions for financial management according to credit ratings and the risk of business failure. According to the results, big enterprises have higher profitability, higher efficiency, higher liquidity, and higher solvency. For the maximisation of financial performance is essential for goat farms to increase the number of animals, to achieve economies of scale. There is a positive correlation between herd size and efficiency, and farms could gain by adjusting their herd size to an optimal level. Journal: Int. J. of Managerial and Financial Accounting Pages: 184-196 Issue: 2 Volume: 14 Year: 2022 Keywords: financial management; financial ratios; efficiency; goat farms; Greece. File-URL: http://www.inderscience.com/link.php?id=122225 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:2:p:184-196 Template-Type: ReDIF-Article 1.0 Author-Name: Raveesh Krishnankutty Author-X-Name-First: Raveesh Author-X-Name-Last: Krishnankutty Author-Name: Teena Bharti Author-X-Name-First: Teena Author-X-Name-Last: Bharti Author-Name: Nidhi Mishra Author-X-Name-First: Nidhi Author-X-Name-Last: Mishra Title: Herding behaviour and capital structure decision in BSE listed Indian firms Abstract: This research tries to analyse the herding behaviour in Bombay Stock Exchange (BSE) listed firms in three sectors, namely manufacturing, services (other than financial services), and the real estate and construction sectors. It tries to exhibit the existence of herd behaviour in Indian firms to follow the mean capital structure of their respective sector. OLS estimation with robust and White, Rogers, Newey-West and Driscoll-Kraay standard error was used to examine the existence of herding behaviour in Indian corporates. The finding suggests that strong herding behaviour exists in all the three sectors under study. The study adds to the existing knowledge base on micro, small, medium and large enterprises. Journal: Int. J. of Managerial and Financial Accounting Pages: 118-137 Issue: 2 Volume: 14 Year: 2022 Keywords: Bombay Stock Exchange; BSE; capital structure; Indian firms; herding behaviour; panel data; Driscoll-Kraay standard error. File-URL: http://www.inderscience.com/link.php?id=122226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:2:p:118-137 Template-Type: ReDIF-Article 1.0 Author-Name: Nabil Ahmed Mareai Senan Author-X-Name-First: Nabil Ahmed Mareai Author-X-Name-Last: Senan Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan Author-X-Name-First: Mamdouh Abdulaziz Saleh Author-X-Name-Last: Al-Faryan Author-Name: Suhaib Anagreh Author-X-Name-First: Suhaib Author-X-Name-Last: Anagreh Author-Name: Eissa A. Al-Homaidi Author-X-Name-First: Eissa A. Author-X-Name-Last: Al-Homaidi Author-Name: Mosab I. Tabash Author-X-Name-First: Mosab I. Author-X-Name-Last: Tabash Title: Impact of working capital management on firm value: an empirical examination of firms listed on the Bombay Stock Exchange in India Abstract: This study examines the impact of working capital management on firm value of 2,326 Indian firms listed in the Bombay Stock Exchange (BSE). This study used pooled, fixed and random, and generalised method of moments (GMM) model effect models. Firm value of Indian firms is measured by Tobin-Q is used as a dependent variable, while networking capital, size firm, financial leverage, current ratio, quick ratio, sales growth, annual real GDP and inflation rate are used as independent variables. The results of the current study indicated that firm size, financial leverage, current ratio and quick ratio are the most important factors that affecting firm value of Indian listed firms. The results also revealed that firm size, financial leverage and quick ratio have a negative and significant influence on firm value, except net working capital has a positive and significant effect on firm value. Sales growth, annual real GDP and inflation rate have a positive and insignificant influence on firm value of Indian listed firms during the period of the study. Journal: Int. J. of Managerial and Financial Accounting Pages: 138-156 Issue: 2 Volume: 14 Year: 2022 Keywords: firm value; net working capital; working capital; panel data; listed firm; India. File-URL: http://www.inderscience.com/link.php?id=122227 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:2:p:138-156 Template-Type: ReDIF-Article 1.0 Author-Name: Silvia Solimene Author-X-Name-First: Silvia Author-X-Name-Last: Solimene Author-Name: Daniela Coluccia Author-X-Name-First: Daniela Author-X-Name-Last: Coluccia Author-Name: Stefano Fontana Author-X-Name-First: Stefano Author-X-Name-Last: Fontana Author-Name: Mauro Rota Author-X-Name-First: Mauro Author-X-Name-Last: Rota Title: Reinvestment as an aspect of new business model in European knowledge-intensive firms Abstract: This paper aims to discover the main financial characteristics of business models (BMs) of EU-listed firms operating in knowledge-intensive businesses, using Lazonick (2006) underground and factor analysis in two different years, 2009 and 2016, capturing peculiarities of BM and looking at the 'finance' aspect. We show the existence of reinvestment by firms rather than using traditional financial leverage to pursue their BM. Our primary finding is in line with the existence of homogenous traits in the BM in Europe. We also discovered that reinvestment is correlated with corporate profitability and it tends to confound with profitability in and of itself. Our results offer implications for economic and policy decisions. Potential shareholders could look at reinvestment rates to predict profitability. Additionally, if reinvestment is crucial for profitability and identifies the BM of the firms, policy measures aimed at reducing fiscal pressure on reinvestment could turn into a pro-growth policy. Journal: Int. J. of Managerial and Financial Accounting Pages: 99-117 Issue: 2 Volume: 14 Year: 2022 Keywords: business model; finance; profitability; EU listed companies. File-URL: http://www.inderscience.com/link.php?id=122228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:2:p:99-117 Template-Type: ReDIF-Article 1.0 Author-Name: Zahida Sarwary Author-X-Name-First: Zahida Author-X-Name-Last: Sarwary Author-Name: Timur Uman Author-X-Name-First: Timur Author-X-Name-Last: Uman Title: Managerial discretion and the choice of capital budgeting techniques Abstract: The purpose of this study is to apply Hambrick and Finkelstein's (1987) framework of managerial discretion to the field of capital budgeting techniques (CBT). This study uses a qualitative method based on semi-structured interviews with 12 CFOs in Swedish high-growth small and medium-sized (SMEs) firms. The findings indicate that the choice of CBTs is largely enabled by individual forces and mainly disabled by environmental and organisational forces. The study contributes with managerial implications discussing how the choice of CBT is beneficial for communication, negotiating for resources, and maintaining good relationships with stakeholders. Being aware of how to use the choice of CBT as a communication tool could give firms a competitive advantage. Journal: Int. J. of Managerial and Financial Accounting Pages: 197-216 Issue: 3 Volume: 14 Year: 2022 Keywords: capital budgeting techniques; CBT; theory-practice gap; managerial discretion; qualitative method; First North; small and medium-sized; SMEs. File-URL: http://www.inderscience.com/link.php?id=123870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:3:p:197-216 Template-Type: ReDIF-Article 1.0 Author-Name: Zelalem Abay Author-X-Name-First: Zelalem Author-X-Name-Last: Abay Title: The signalling role of voluntary ESG assurance Abstract: The aim of this study is to examine the role of independent third-party environment, social, and governance (ESG) assurance in signalling higher ESG performance. While testing the hypothesis, a liner regression is applied using data from Thomson Reuters ESG scores and global reporting initiative database from a sample of 645 unique European firms over the period of 2012-2017. Firms with third-party assurance are found to have a significantly higher ESG performance than firms with no assurance. This study offers new evidence on the signalling value of an independent third party ESG assurance in differentiating ESG performances and confirms the incentive that high performing firms could use to separate from their counterparts with poor performance in a separating equilibrium. Journal: Int. J. of Managerial and Financial Accounting Pages: 265-294 Issue: 3 Volume: 14 Year: 2022 Keywords: ESG; non-financial disclosure; signalling theory; voluntarily; assurance. File-URL: http://www.inderscience.com/link.php?id=123887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:3:p:265-294 Template-Type: ReDIF-Article 1.0 Author-Name: Rosa Palladino Author-X-Name-First: Rosa Author-X-Name-Last: Palladino Author-Name: Pasquale Sasso Author-X-Name-First: Pasquale Author-X-Name-Last: Sasso Author-Name: Sofia Profita Author-X-Name-First: Sofia Author-X-Name-Last: Profita Author-Name: Rosalinda Carusone Author-X-Name-First: Rosalinda Author-X-Name-Last: Carusone Author-Name: Fabio Fiano Author-X-Name-First: Fabio Author-X-Name-Last: Fiano Author-Name: Manlio Del Giudice Author-X-Name-First: Manlio Del Author-X-Name-Last: Giudice Title: Assessing the Italian benefit corporation disclosure: a content analysis Abstract: Responsible business actions improve corporate performance and contribute to sustainable development practices. These actions must not only be implemented, but also communicated. Therefore, the use of reporting tools based on non-financial data should increase the ability of the company management to implement an integrated strategy. In fact, the legislator has decided to introduce a new corporate formula more oriented towards sustainability: the benefit corporation (CB). This corporate form requires higher standards of accountability to demonstrate their positive impact on society. This document, through a qualitative analysis of some Italian CBs' reports, aims to investigate the effectiveness of the BIA framework to report the 'benefit' objectives. The study shows that the CBs maintain a formal commitment on the disclosure plan and denounces the lack of planning strategies relating to the disclosure provided. This analysis focused on the compatibility of the IIRC framework for integrated reporting to improve the quality of reporting. Journal: Int. J. of Managerial and Financial Accounting Pages: 217-235 Issue: 3 Volume: 14 Year: 2022 Keywords: benefit corporations; B impact assessment; BIA; framework; integrated reporting; disclosure; international integrated reporting council; IIRC. File-URL: http://www.inderscience.com/link.php?id=123888 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:3:p:217-235 Template-Type: ReDIF-Article 1.0 Author-Name: Ghassan H. Mardini Author-X-Name-First: Ghassan H. Author-X-Name-Last: Mardini Title: ESG factors and corporate financial performance Abstract: The current study investigates the effect of environmental, social, and governance (ESG) factors on corporate financial performance (CFP), and considers an initial sample of all non-financial listed firms in 35 countries for the period 2012-2020. The final balanced sample comprises 7,081 firms, leading to 63,729 firm observations. This study finds that ESG factors play a vital role in enhancing CFP both for market (Tobin's Q) and accounting (return on assets and return on equity) indicators. This suggests that a firm with higher environmental and governance factors tends to increase its Tobin's Q in order to satisfy stakeholders' decision-making needs. The social factor has a negative and significant effect on CFP for market indicators and a negative but not significant effect on CFP for accounting indicators. This suggests that social factor drains the firm's resources, influence the firm's reputation, and may lead to competitive disadvantage. This study provides international comprehensive empirical evidence by investigating the impact of ESG's three factors separately as well as overall ESG disclosures' effect on CFP. Journal: Int. J. of Managerial and Financial Accounting Pages: 247-264 Issue: 3 Volume: 14 Year: 2022 Keywords: environmental; social; governance; corporate financial performance; CFP; market indicators; accounting indicators. File-URL: http://www.inderscience.com/link.php?id=123895 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:3:p:247-264 Template-Type: ReDIF-Article 1.0 Author-Name: Kamelia Assenova Author-X-Name-First: Kamelia Author-X-Name-Last: Assenova Author-Name: Matteo Rossi Author-X-Name-First: Matteo Author-X-Name-Last: Rossi Author-Name: László Koloszár Author-X-Name-First: László Author-X-Name-Last: Koloszár Author-Name: Giuseppe Festa Author-X-Name-First: Giuseppe Author-X-Name-Last: Festa Title: Financing structure of the corporate investments in the Bulgarian economy – state-of-the-art and potential development Abstract: Significant and stable economic growth has been the main goal of Bulgarian economic policy in recent years. However, the Bulgarian financial market still seems undersized, and the relationship between bank lending and other capital supply, with the absence of the latter (although with a few exceptions), is one of the primary reasons for companies (especially small and medium enterprises – SMEs) to borrow credits from the banking system. Scarce access to forms of capital other than lending makes Bulgarian SMEs extremely dependent on the actions of banks, especially considering that most companies in Bulgaria are on these sizes. Our statistical investigation has Bulgarian economy in the period from 2008 to 2019, making necessary the development of additional and alternative financing forms and potentially even considering the opportunities emerging from the Next Generation EU Program. Journal: Int. J. of Managerial and Financial Accounting Pages: 236-246 Issue: 3 Volume: 14 Year: 2022 Keywords: Bulgaria; small and medium enterprises; SMEs; bank credits; bank loans; financial market; bond market; equity market; alternative financing; Next Generation EU. File-URL: http://www.inderscience.com/link.php?id=123896 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injmfa:v:14:y:2022:i:3:p:236-246