In this article, we examine the effect of mandatory disclosure of corporate social responsibility on firm's investment behavior. Our analysis exploits China's 2008 mandatory requirement that firms disclose their corporate social responsibility activities. Using difference-indifference design, the study finds that firms that were made to report their corporate social responsibility experience a decrease in the level of investment, but the firm investment efficiency improved, especially on alleviating over-investments. These findings suggest that mandatory CSR disclosure alters firm investment behavior and the implementation of such a disclosure requirement may need the government support.

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We examine the effects of targeted economic sanctions on the performance of nontargeted firms sharing a common supply chain with targeted firms. We build on sanctions literature and contagion theory to develop a conceptual model that encapsulates the nexus between targeted sanctions, supply chains, and firm performance. Drawing on data from Zimbabwe, we find that nontargeted firms in the same supply chain as sanctioned firms perform poorly compared with other non‐sanctioned firms, signaling the effects of contagion. The mediation test indicates that economic sanctions reduce the performance of nontargeted supply chain member firms through reducing sales and increasing the cost of products, showing significant mediating effects. We also show that exports greatly affect nontargeted firms that depend heavily on targeted firms, whereas imports have a relatively low impact. The results of this study extend previous research on the adverse consequences of economic sanctions and supply chain networks and provide important guiding significance for firm managers, investors and policymakers on how to respond to smart sanctions.

This paper investigates the effect of targeted economic sanctions by the United States and the European Union on the performance of intra‐industry non‐sanctioned firms. Using data of non‐sanctioned firms listed on the Zimbabwe stock exchange during the period 2009–2018, our regression results show that non‐sanctioned firms in the same industry as sanctioned firms perform better than ordinary non‐sanctioned firms, signalling the positive competitive effect. A mediating test suggests that sanctions increase the market share of non‐sanctioned firms in the same industry as sanctioned firms and subsequently increase their performance.

The study aimed at examining the impact of Internal Audit Function independence on Transparency & Accountability. The study adopted independence as the independent variable and transparency & accountability as the dependent variable, measured by management perception, organization policy, auditees' cooperation and risk exposure of the organization. Survey data was collected from local authorities in Zimbabwe using semi structured questionnaires. Correlation and regression analysis were used to test the hypothesis that the existence of an independent internal audit function in an organization is positively associated with transparency and accountability. Study findings revealed that the existence of an independent internal audit function in an organization is positively associated with transparency and accountability. The findings concur with results from previous studies which concluded that an independent internal audit function plays a monitoring role, therefore contributing towards promoting good corporate governance practices, supporting the applicability of the Agency Theory and the Theory of Inspired Confidence in internal audit research