A Triple of Corporate Governance, Social Responsibility and Earnings Management

The study examines the impact of corporate governance mechanisms, such as board characteristics on corporate social responsibility disclosure (CSRD). The data on CSRD items and board characteristics have been collected by content analysis of the annual reports of 30 publicly-listed banks in Bangladesh covering six years, from 2013 to 2018. More specifically, the directors' report, the chairman's statement, notes to the financial statement and CSR disclosure reports included in annual reports were used to collect the CSRD data. The empirical analysis applies the ordinary least square and the generalized method of moments. The results of the study have revealed that board size, board independence, female board member, and foreign directors have a significant positive impact on CSRD. By contrast, political directors and audit committee size have a negative impact on CSRD. Interestingly, accounting experts on boards ensure more CSRD as they curb the influence of politicians on the board. Thus, it is better to increase accounting experts and decrease politicians on the board. These findings provide valuable insights into the process of forming a suitable CSR policy by connecting the efforts of the board, government, and regulatory bodies to enhance the performance of banks to CSR as well as to CSRD.

Section: Board Independence and Csrdmentioning

confidence: 99%

Impact of Corporate Governance Mechanisms on Corporate Social Responsibility Disclosure of Publicly-Listed Banks in Bangladesh

Jahid¹,

Rashid²,

Hossain³

et al. 2020

“…CSR, sometimes referred as corporate ethics, corporate responsibility, and citizenship, is a broad complex concept and continually evolving. In the past, CSR was considered an obligation of the firm to society (Huynh et al, 2020;Nguyen & Tu, 2020;Smith, 2003). Then, today CSR is a voluntary activity done by organizations in order to bring benefit to workforce and community.…”

Section: Literature Reviewmentioning

confidence: 99%

The Moderating Role of CSR Associations on the Link between Brand Awareness and Purchase Intention

HOANG¹,

Nguyen²,

LY³

et al. 2020

This study uses the moderating model to explore the relationships between Corporate Social Responsibility (CSR) associations, brand awareness and consumer purchase intention. Besides investigating the direct effects of CSR associations on brand awareness and consumer purchase intention, this study also focuses on discovering the moderating role of CSR associations on the relationship between brand awareness and consumer purchase intention among Vietnamese students. Adapting scales from previous research, the authors distribute questionnaires to consumers across the country. Then, the validity and reliability are tested via Cronbach's alpha, Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA). Moreover, by employing a meta-analytical path analysis with a sample of 686 consumers, the authors show that CSR associations play an important role in shaping purchase intention among Vietnamese consumers regarding the consumption of organic milk products. Also, CSR associations have a strong effect on brand awareness. However, our study shows that purchase intention is not directly affected by brand awareness. In other words, brand awareness does not mediate the relationship between CSR associations and purchase intention. Interestingly, authors show that CSR associations moderate the link between brand awareness and consumer purchase intention. Based on the research, some recommendations are made to companies that produce organic milk products.

“…However, Saona et al (2019) indicated that there is a significant negative relationship between insiders' ownership, the controlling shareholder, and earnings manipulation; in this case, high insider ownership and a majority controlling shareholder support the governance system, which contributes to improving the independency level in an organization. The greater proportion of independent directors oversees managers more efficiently, and therefore earnings manipulation will be decreased (Al-Absy et al, 2020;Huynh, 2020). Ding et al (2007) confirmed that the relationship between ownership concentration and earnings manipulation is an inverted U-shape.…”

Section: Introductionmentioning

confidence: 71%

Ownership Structure, Earnings Manipulation, and Organizational Performance: The Case of Jordanian Insurance Organizations

Alqirem¹,

Afifa²,

Saleh³

et al. 2020

This study aims to investigate the direct relationship between ownership structure, earnings manipulation, and organizational performance, and then examine the mediating effect of earnings manipulation in the relationship between ownership structure and organizational performance. This study collected and analyzed secondary data published in financial reports related to all insurance organizations listed in the Jordanian market during the study period (from 2009 until 2018). A panel data analysis was conducted, giving a total of 200 observations. The findings of this study concluded that ownership concentration, foreign ownership, and organization size affect organizational performance proxied by ROA, ROE, and EPS, more specifically, ownership concentration and organization size have a positive effect, whereas foreign ownership has a negative effect. At the same time, board of director ownership, organizational ownership, and CEO compensation did not affect organizational performance. Next, the board of director ownership, ownership concentration, foreign ownership, and CEO compensation affect earnings manipulation separately. In addition, earnings manipulation positively affects organizational performance proxied by ROA, ROE and EPS. This means that the higher the earnings manipulation is, the higher the organizational performance is. Finally, earnings manipulation mediates the relationship between ownership concentration and foreign ownership of ownership structure, and organizational performance.