Forthcoming articles have been peer-reviewed and accepted for publication but are pending final changes, are not yet published and may not appear here in their final order of publication until they are assigned to issues. Therefore, the content conforms to our standards but the presentation (e.g. typesetting and proof-reading) is not necessarily up to the Inderscience standard. Additionally, titles, authors, abstracts and keywords may change before publication. Articles will not be published until the final proofs are validated by their authors.
Forthcoming articles must be purchased for the purposes of research, teaching and private study only. These articles can be cited using the expression "in press". For example: Smith, J. (in press). Article Title. Journal Title.
Articles marked with this shopping trolley icon are available for purchase - click on the icon to send an email request to purchase.
Online First articles are published online here, before they appear in a journal issue. Online First articles are fully citeable, complete with a DOI. They can be cited, read, and downloaded. Online First articles are published as Open Access (OA) articles to make the latest research available as early as possible.
Articles marked with this Open Access icon are Online First articles. They are freely available and openly accessible to all without any restriction except the ones stated in their respective CC licenses.
International Journal of Corporate Governance (6 papers in press)
Board Quality and Earnings Management: A System GMM Approach by Bala V. Balachandran, Chanchal Chatterjee, Ahindra Chakrabarti Abstract: This paper examines whether board quality influences earnings management behavior of firms in an emerging market set up, by using panel data of 1830 Indian private non-financial firms during 2012 to 2018. The study uses the Dynamic Panel Data model under System GMM, to examine this linkage. The paper contributes mainly by focusing on whether certain board quality parameters are effective in curbing earning management in an emerging market context. The outcomes are expected to be useful to the managers, investors, and other stakeholders including policymakers and regulators while framing appropriate corporate governance policies and regulations. Keywords: Corporate governance; Earnings management; Discretionary accruals; Board of directors; Emerging economies.
The Relationship between CEO Nominal Salary and Firm Operating Performance by Mina Glambosky, Surendranath Jory, Thanh Ngo Abstract: Nominal salary is a symbolic amount that does not represent economically meaningful compensation. In this study, we document that CEO nominal salary is positively related to a firms operating and stock performance. Our results stay robust when we address endogeneity issues using the Heckman self-selection two-stage regression and propensity score matching approach. The findings of our study render important implications about CEO compensation structure and how it can align manager incentives with shareholder wealth. Keywords: CEO Nominal Salary; Operating Performance; Stock Performance.
Audit Committee Interlocking and Internal Controls over Financial Reporting: an Examination of Different Audit Committee Roles by Ahmad Hammami, Alexey Lyubimov Abstract: This study investigates the relationship between audit committee (AC) interlocking and the effectiveness of internal controls over financial reporting (ICFR) while differentiating between chair and non-chair connections. Chen et al. (2017) point out that the effect of corporate governance on the system of internal controls has been largely overlooked by extant research. Khemakhem & Fontaine (2019) discuss the fact that the audit committee chair role, while key in corporate governance, is largely ignored by researchers. The results show that the effects of interlocks vary based on the interlocking medium, where companies are more likely to have effective ICFR if they are interlocked through the AC chair with other companies that have effective ICFR. No significant impact is observed for interlocks through the non-chair members. Furthermore, the results do not show a significant relationship for interlocks with companies with ineffective controls. Keywords: audit committee; internal control; corporate governance; audit committee chair; interlock.
Corruption and Democracy in Post-2011 Tunisia A Confirmatory Empirical Analysis by Ines Belgacem, Moktar Lamari, Samir Trabelsi Abstract: This study examines the relationship between democracy and corruption in Post-2011 Tunisia. The aim was to empirically identify the principles corruption factors that influence corruption and democracy and to test the effectiveness of corruption factors in democratic transition. The paper was used survey data, coming from Word Values survey (2015) and dealing with a sample of 1205 persons from different Tunisian regions. After examining perceptions of corruption through confirmatory factor analysis, instrumental variable method was performed to check the reliability of the estimation of the regression coefficient causally linking democracy to corruption. The analysis shows that emerging democracy in Tunisia reduces corruption in a statistically significant way. Decision makers will find in our papers results new ideas helping government, parties and NGO to sensitize population about the democracy concept and how to reduce corruption by helping citizens to avoid corrupted transactions and informal collusions. Keywords: corruption; democracy; confidence; Tunisia; revolution; instrumental method; public choice theory.
Do Indian Firms manage Earnings to Avoid Losses? by Rachappa Shette, Sudershan Kuntluru, Ajit Dayanandan Abstract: The present study examines whether managers of Indian firms focus on avoiding losses and how they avoid reporting losses, based on 1,725 non-financial firms listed on National Stock Exchange of India from 2001 to 2019. The earnings distribution approach is employed to determine if firms manage earnings to avoid losses. The empirical analysis is performed using various scaling measures and width of class intervals. The study finds profound evidence for the existence of earnings management to avoid losses. The earnings management level is higher in the year subsequent to reporting positive earnings in one or two years. It also finds that the higher level of current assets and current liabilities and cash flow from operations are used as major components to avoid losses. The empirical evidence supports the analytical foundation of cumulative prospect theory. The findings are useful to regulators, investors, and managers in making an effective decision. Keywords: earnings management; earnings discontinuity; avoid losses; India; cumulative prospect theory; CPT. DOI: 10.1504/IJCG.2021.10043478
Impact of Internal Corporate Governance and Self-regulation on Financial Performance: A study of International Stock Exchanges by Rashid AMEER, Radiah Othman Abstract: This study examines the extent to which corporate governance and self-regulation affect the financial performance of international stock exchanges. Our empirical results show that an increase in the proportion of independent directors with professional accounting and finance qualifications increases financial performance and the valuation of stock exchanges. In addition, our empirical results show that a strong self-regulation model has a significant positive impact on the financial performance of self-listed stock exchanges in common-law countries compared to civil-law countries. Our results have economic implications for board diversity and self-regulation frameworks of international stock exchanges. Keywords: CEO tenure; demutualization; board diversity; financial performance; self regulation.