scholarly journals Accrual and real-based earnings management by UK acquirers

2017 ◽  
Vol 13 (4) ◽  
pp. 492-519 ◽  
Author(s):  
Talie Kassamany ◽  
Salma Ibrahim ◽  
Stuart Archbold
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Design Methodology ◽  
Content Type ◽  
Corporate Governance Code ◽  
Management Behaviour ◽  
Before And After ◽  
Logistic Regressions ◽  
The Uk ◽  
Practical Implications

Purpose This study aims to investigate the occurrence of pre-merger earnings management for a sample of 197 stock- and cash-financed UK acquirers between 1990 and 2009. It also examines the earnings management behaviour around the change in the Corporate Governance Code in 2003 based on the Higgs recommendations. Design/methodology/approach Mean and median accrual- and real-based manipulation are examined in the period before the announcement of a merger and acquisition. These are compared across stock and cash acquirers as well as before and after the implementation of the Higgs recommendations. Logistic regressions are also run to examine accrual- and real-based manipulation across stock and cash acquirers after controlling for variables that may affect the acquisition type. Findings The study found some evidence of upward pre-merger accrual-based earnings management by stock-financed acquirers, which is in line with the findings of Botsari and Meeks (2008). Furthermore, no significant changes were found in the post-Higgs period, which indicates that the recommendations put forth by Higgs may not have been successful in mitigating earnings management. The evidence also shows that cash bidders engage in pre-merger real earnings manipulation through lower discretionary expenses, possibly to enhance cash availability for the bid. Practical implications The findings in this study confirm earnings management exists around mergers and acquisitions and provide some evidence that the recommendations set out in the Higgs Report do not appear to have mitigated earnings management activities. This is of interest to regulators as well as investors and academicians. Originality/value This provides the first analysis in the UK examining the use of real-based earnings management activities by UK acquirers. It also extends prior research around corporate governance changes that occurred in the UK.

The impact of corporate governance code on earnings management in listed non-financial firms

2017 ◽  
Vol 7 (4) ◽  
pp. 428-444 ◽  
Author(s):  
Erick Rading Outa ◽  
Paul Eisenberg ◽  
Peterson K. Ozili
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Design Methodology ◽  
Explanatory Variable ◽  
Content Type ◽  
Listed Firms ◽  
Financial Firms ◽  
New Institutions ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine whether voluntary corporate governance (CG) code issued in 2002 constrain earnings management (EM) among listed non-finance companies in Kenya. Design/methodology/approach Using a panel data of 338-firm year’s observations between 2005 and 2014, the authors test the hypothesis that CG constrains EM in non-finance firms listed in Kenya. The authors regress discretionary accruals (DA) against a developed Corporate Governance Index (CGI). Findings The overall results show that DA is not significantly related to CG suggesting the voluntary CG code does not deter EM in non-finance companies in Kenya. Practical implications Evidence of income decreasing\increasing accruals implies EM still exists among the listed firms. This suggests that policymakers may need to consider radical actions including alternative or new CG approaches and new institutions to improve the effectiveness of CG. Originality/value This study extends existing studies by including composite CG as possible explanatory variable for constraining EM. The authors contribute to the debate by demonstrating that the voluntary CG code in Kenya is not effective in constraining DA and therefore the current initiatives by the regulator to change the current CG code are appropriately directed.

Does corporate governance influence earnings management in listed companies in Bahrain Bourse?

2018 ◽  
Vol 12 (4) ◽  
pp. 551-570 ◽  
Author(s):  
Bahaaeddin Alareeni
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Design Methodology ◽  
Empirical Support ◽  
Asian Country ◽  
Listed Companies ◽  
Discretionary Accruals ◽  
Board Independence ◽  
Content Type ◽  
Practical Implications

PurposeThis paper aims to consider data for listed companies in Bahrain Bourse to determine whether companies practice earnings management (EM). Further, the effect of a set of corporate governance characteristics on EM practices is examined.Design/methodology/approachThe EM level was measured using discretionary accruals (DA) [calculated using the Modified Jones (1995) Model]. The study sample consisted of 20 companies listed during the period 2011-2015. Panel regression model was used to test the study hypotheses and achieve the study aims.FindingsEM is negatively correlated with board size, confirming that a larger board is associated with a lower level of EM practices. Further, board independence is positively correlated with EM, suggesting that the larger the number of independent directors, the higher the level of EM practices. In addition, internal ownership is positively related to EM, confirming that the higher level of internal ownership increases EM practices. CEO duality does not appear to have any effect on EM in Bahrain Bourse. More interestingly, the findings reveal that companies practice EM through income-increasing DA.Research limitations/implicationsFinancial data and data related to other corporate governance characteristics are lacking.Practical implicationsThe results of this study provide empirical support for the development of new regulations and amendments and necessary corrective decisions regarding the effectiveness of applying corporate governance code in Bahrain Bourse. More specifically, this study reveals an urgent need for new amendments to restrict EM practices in Bahrain Bourse.Originality/valueThis study enriches the EM literature by covering Bahrain as an Asian country, which has not been sufficiently examined in relation to this topic. Further, this study provides a clear picture of the level of EM practices in Bahrain Bourse to multiple parties.

Fifty years of the UK Misuse of Drugs Act 1971: the legislative contexts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Blaine Stothard
Keyword(s):  
Design Methodology ◽  
Evidence Base ◽  
People Who Use Drugs ◽  
Content Type ◽  
Before And After ◽  
History Of ◽  
The Government ◽  
The Uk ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to illustrate the history of relevant legislation before and after the 1971 Misuse of Drugs Act (MDA). Design/methodology/approach A chronological narrative of laws and reports with concluding discussion. Findings That UK legislators have not made use of the evidence base available to them and have favoured enforcement rather than treatment approaches. That current UK practice has exacerbated not contain the use of and harms caused by illegal drugs. Research limitations/implications The paper does not cover all relevant documents, especially those from non-governmental sources. Practical implications The practical implications centre on the failure of consecutive governments to reflect on and review the impact of current legislation, especially on people who use drugs. Social implications That the situations of people who use drugs are currently ignored by the government and those proven responses which save lives and reduce harm are rejected. Originality/value The paper attempts to show the historical contexts of control and dangerousness of which the MDA is one instrument.

scholarly journals Implementation of a local authority workspace strategy in the UK

Facilities ◽  
2016 ◽  
Vol 34 (3/4) ◽  
pp. 196-218 ◽  
Author(s):  
Bob Giddings ◽  
Vladimir Ladinski
Keyword(s):  
Asset Management ◽  
Design Methodology ◽  
Local Authority ◽  
Content Type ◽  
Level Of Satisfaction ◽  
Before And After ◽  
Borough Council ◽  
Reduced Space ◽  
The Uk ◽  
Practical Implications

Purpose This paper aims to examine the implementation of a workspace strategy within Gateshead Metropolitan Borough Council. It identifies the efficiencies that were achieved through the increase in office workspace numbers, as well as the associated advantages of locating more people within the Civic Centre. Equally, this study examines the users’ perspective. Design/methodology/approach A survey was carried out in 2013, with Property and Design Services as a sample Council Department, to identify employees’ level of satisfaction with the implementation of the strategy. A paper-based questionnaire was handed to all participants. The primary comparison was their experience before and after changes to the workplace. Findings The results show that government targets for office space utilisation have been exceeded, thus supporting more efficient property asset management. The research has also established that the employees are generally satisfied with their new workspace. Research limitations/implications The issues are whether the reduced space per person can be mitigated by the design, and whether efficiency gains can be introduced without adversely affecting the users’ perception of their workplace. Practical implications The findings can guide future trends within the Council, as well as informing the implementation of similar workspace strategies in other organisations. Originality/value The originality of the study lies in a workspace strategy where the responses of users were taken seriously. Despite some concerns about distractions and lack of privacy, the employees responded that their overall satisfaction, and perceived productivity were unaffected by the strategy and reduced space per person.

scholarly journals Stewardship theory: is board accountability necessary?

2017 ◽  
Vol 59 (6) ◽  
pp. 1292-1314 ◽  
Author(s):  
Andrew Keay
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Design Methodology ◽  
Agency Problems ◽  
Stewardship Theory ◽  
Content Type ◽  
General Terms ◽  
Practical Implications

Purpose The purpose of the paper is to demonstrate that notwithstanding the fact that stewardship theory embraces things like trust of directors, their professionalism, loyalty and willingness to be concerned for the interests of others, as well as rejecting the foundations of classic agency problems that are asserted by agency theory, board accountability is as relevant to stewardship theory as it is to agency theory. Design/methodology/approach The paper applies the theory underlying board accountability in corporate governance, which is so often applied both in the corporate governance literature and in practice with agency theory in mind, to stewardship theory. Findings While the idea of accountability of boards is generally associated with an explanation and conceptualisation of the role and behaviour of directors as agents within classic agency theory, the paper demonstrates that board accountability is a necessary part of board life even if the role of directors is explained and conceptualised in terms of stewardship theory. Practical implications The paper suggests some accountability mechanisms that might be employed in a stewardship approach. Originality/value While many authors have talked in general terms about board accountability and its importance, this is the first paper that has engaged in a substantial study that links board accountability directly with stewardship theory, and to establish that accountability is necessary.

Reuse, recycle … reduce: a greener library with print management

2012 ◽  
Vol 30 (3) ◽  
pp. 408-417 ◽  
Author(s):  
Megan E. Dempsey ◽  
Alex Palilonis
Keyword(s):  
Management System ◽  
Design Methodology ◽  
Content Type ◽  
Before And After ◽  
Practical Implications

PurposeThe purpose of this paper is to describe the implementation of a print management system to control costs and reduce waste associated with printing practices.Design/methodology/approachA paper collection study found that 8 percent of pages printed in the library were never claimed. A print management system was implemented requiring print jobs to be manually released by users. Statistics on toner lifespan and number of pages printed before and after the system was implemented were compared.FindingsThe print management system reduced the total number of pages printed in a semester by 32 percent from Fall 2009 to Fall 2011 and increased the lifespan of toner cartridges so they would perform more efficiently.Practical implicationsImplementing a print management system without charging students a printing fee reduces the amount of wasted paper and the costs associated with purchasing paper and toner for printing services.Originality/valueThe paper describes the implementation of a print management system in a library that has substantially reduced the number of pages printed from library computers and the amount of toner used. The authors believe they have made a significant impact on reducing a primary area of waste.

scholarly journals Implications of divergences in adult protection legislation

2016 ◽  
Vol 18 (3) ◽  
pp. 149-160 ◽  
Author(s):  
Lorna Montgomery ◽  
Janet Anand ◽  
Kathryn Mackay ◽  
Brian Taylor ◽  
Katherine C. Pearson ◽  
...  
Keyword(s):  
Design Methodology ◽  
Elder Abuse ◽  
Consensus Model ◽  
Content Type ◽  
Legal Responses ◽  
The Usa ◽  
Protection Legislation ◽  
The Uk ◽  
Practical Implications ◽  
Adult Protection

Purpose – The purpose of this paper is to explore the similarities and differences of legal responses to older adults who may be at risk of harm or abuse in the UK, Ireland, Australia and the USA. Design/methodology/approach – The authors draw upon a review of elder abuse and adult protection undertaken on behalf of the commissioner for older people in Northern Ireland. This paper focusses on the desk top mapping of the different legal approaches and draws upon wider literature to frame the discussion of the relative strengths and weaknesses of the different legal responses. Findings – Arguments exist both for and against each legal approach. Differences in defining the scope and powers of adult protection legislation in the UK and internationally are highlighted. Research limitations/implications – This review was undertaken in late 2013; while the authors have updated the mapping to take account of subsequent changes, some statutory guidance is not yet available. While the expertise of a group of experienced professionals in the field of adult safeguarding was utilized, it was not feasible to employ a formal survey or consensus model. Practical implications – Some countries have already introduced APL and others are considering doing so. The potential advantages and challenges of introducing APL are highlighted. Social implications – The introduction of legislation may give professionals increased powers to prevent and reduce abuse of adults, but this would also change the dynamic of relationships within families and between families and professionals. Originality/value – This paper provides an accessible discussion of APL across the UK and internationally which to date has been lacking from the literature.

The big bath of demonetization in India: strike on black money for corporate governance

2018 ◽  
Vol 21 (4) ◽  
pp. 594-600 ◽  
Author(s):  
Sandeep Goel
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Content Type ◽  
Positive Effects ◽  
Corporate World ◽  
The World ◽  
Future Improvement ◽  
Policy Measures ◽  
The Government ◽  
Practical Implications

Purpose This paper aims to focus on the concept of abolition of black money and the demonetization movement started in India for cleaning black money and its impact on corporate world and Indian economy. It discusses the corporate governance effect of the demonetization scheme and various policy measures taken by the government to unearth and curb the black money in the country. It also states the challenges in its process of implementation and implications for future. Design/methodology/approach It appraises and reviews the concept of demonetization and its process in India since its implementation on November 8, 2016. Findings The biggest positive effects of this move were eradication of stocked and staked up money, cleansing of the financial system and improving governance in India. But its implementation had mix outcomes with its own challenges for future improvement. Practical implications The lessons drawn from the experience are expected to pave way for the countries at large. Originality/value It is an original paper on demonetization in India, and it is hoped that the lessons learnt thereof will pave the way for the world at large.

scholarly journals From Cadbury to Kay: discourse, intertextuality and the evolution of UK corporate governance

2018 ◽  
Vol 31 (5) ◽  
pp. 1542-1562 ◽  
Author(s):  
Michael Price ◽  
Charles Harvey ◽  
Mairi Maclean ◽  
David Campbell
Keyword(s):  
Corporate Governance ◽  
Critical Discourse Analysis ◽  
Critical Discourse ◽  
Governance Reform ◽  
Content Type ◽  
Main Research ◽  
Corporate Governance Code ◽  
Set Up ◽  
The Uk ◽  
Canonical Texts

PurposeThe purpose of this paper is to answer two main research questions. First, the authors ask the degree to which the UK corporate governance code has changed in response to both systemic perturbations and the subsequent enquiries established to recommend solutions to perceived shortcomings. Second, the authors ask how the solutions proposed in these landmark governance texts might be explained.Design/methodology/approachThe authors take a critical discourse approach to develop and apply a discourse model of corporate governance reform. The authors draw together data on popular, corporate-political and technocratic discourses on corporate governance in the UK and analyse these data using content analysis and the historical discourse approach.FindingsThe UK corporate governance code has changed little despite periodic crises and the enquiries set up to investigate and make recommendation. Institutional stasis, the authors find, is the product of discourse capture and control by elite corporate actors aided by political allies who inhabit the same elite habitus. Review group members draw intertextually on prior technocratic discourse to create new canonical texts that bear the hallmarks of their predecessors. Light touch regulation by corporate insiders thus remains the UK approach.Originality/valueThis is one of the first applications of critical discourse analysis in the accounting literature and the first to have conducted a discursive analysis of corporate governance reports in the UK. The authors present an original model of discourse transitions to explain how systemic challenges are dissipated.

scholarly journals Foresight in cities: on the possibility of a “strategic urban intelligence”

foresight ◽  
2016 ◽  
Vol 18 (5) ◽  
pp. 469-490 ◽  
Author(s):  
Joe Ravetz ◽  
Ian Douglas Miles
Keyword(s):  
Complex Systems ◽  
Analytical Method ◽  
Design Methodology ◽  
Content Type ◽  
Work In Progress ◽  
Strategic Policy ◽  
The Uk ◽  
The City ◽  
Practical Implications ◽  
Practical Recommendations

Purpose This paper aims to review the challenges of urban foresight via an analytical method: apply this to the city demonstrations on the UK Foresight Future of Cities: and explore the implications for ways forward. Design/methodology/approach The methodology is based on the principles of co-evolutionary complex systems, a newly developed toolkit of “synergistic mapping and design”, and its application in a “synergy foresight” method. Findings The UK Foresight Future of Cities is work in progress, but some early lessons are emerging – the need for transparency in foresight method – and the wider context of strategic policy intelligence. Practical implications The paper has practical recommendations, and a set of propositions, (under active discussion in 2015), which are based on the analysis. Originality/value The paper aims to demonstrate an application of “synergy foresight” with wide benefits for cities and the communities within them.

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