Corporate social responsibility, board gender diversity and real earnings management: The case of Jordan

Ghaleb, Belal Ali Abdulraheem; Qaderi, Sumaia Ayesh; Almashaqbeh, Ahmad; Qasem, Ameen

doi:10.1080/23311975.2021.1883222

Cited by 84 publications

(76 citation statements)

References 71 publications

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“…The endogeneity problem occurs when the dependent variable is influenced by factors that simultaneously affect the independent variables (Brauer & Wiersema, 2018;Ghaleb et al, 2021). By offering advice in terms of stock recommendations, financial analysts highlight institutional investors' awareness as the key audience for their research, which influences company values as well as the demand for stock (Brauer & Wiersema, 2018).…”

Section: Endogeneity Testmentioning

confidence: 99%

Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Qasem

Aripin

Wan‐Hussin

et al. 2021

Cogent Business & Management

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This study investigates the association between institutional investors' ownership and sell-side analysts' stock recommendations in the context of the heterogeneous nature of institutional investors. Based on a sample of 281 Malaysian public listed companies over the period 2008-2013 (732 company-year observations), we find a significant positive relationship between institutional ownership, in particular ownership held by privately managed institutional investors and sell-side analysts' stock recommendations, but no significant relationship between state owned institutional investors and sell-side analysts' stock recommendations. This suggests that the relationship between institutional investors and analysts' stock recommendations are different among different types of institutional investor. Our results are robust to tests for potential endogeneity between institutional ownership and analysts' stock recommendations.

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Section: Endogeneity Testmentioning

confidence: 99%

Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Qasem

Aripin

Wan‐Hussin

et al. 2021

Cogent Business & Management

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“…Despite the predicted direction of the relationship between investment in outside governance monitoring (IOGM) and REM is supported by theoretical and empirical research, we cannot ignore the inverse association; hence we should consider the endogeneity test. To alleviate the possible influence of endogeneity, we follow previous studies such as (Al-Jaifi, 2017;Al-Qadasi and Abidin, 2018;Ghaleb et al, 2021b) and used lagged independent variables technique. In using this technique, we re-run the regression model using the oneyear lagged value of all IOGM variables and control variables on REM.…”

Section: Robustness Checksmentioning

confidence: 99%

Investment in outside governance monitoring and real earnings management: evidence from an emerging market

Ghaleb

Kamardin

Hashed

2021

JAEE

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PurposeThe main aim of this study is to examine the effect of investment in outside governance monitoring (IOGM), through non-executive directors' remuneration (NEDR) and external audit fees (AFEE), on real earnings management (REM) in an emerging market in the Southeast Asia region, Malaysia.Design/methodology/approachThe data comprises 1,056 observations from manufacturing companies listed on Bursa Malaysia for the four-year period, 2013 to 2016. The study tests IOGM individually and aggregately with REM. Feasible generalized least squares (FGLS) regression is used to test the hypotheses.FindingsThe results show that NEDR is negatively and significantly associated with REM. Likewise, AFEE is significantly associated with lower REM. Aggregate IOGM significantly mitigates REM. Additional tests conducted show consistent findings.Research limitations/implicationsThis evidence supports agency theory and signaling theory, that a high level of investment in governance monitoring signals a high demand for monitoring and fewer agency problems. It justifies more investment in outside scrutiny and monitoring to limit the existence of managers' opportunistic behavior in concentrated markets. This study relies on an aggregate measure of REM and focuses on manufacturing companies in Malaysia; thus, the results may not be the same using other measurements and samples.Originality/valueThe study, to the best of the researchers' knowledge, is the first to document evidence in an emerging market suggesting that higher NEDR and AFEE are individually and aggregately associated with lower REM. Policymakers, shareholders and researchers may consider investment in these two mechanisms as a proxy of high-quality monitoring that mitigates REM.

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“…In recent years, corporate social responsibility (CSR) has emerged as a critical and enduring topic that has attracted rapidly growing scholarly attention. This explosion reflects increasing awareness among firms of their roles and responsibilities to the community as well as the environment [1][2][3][4][5]. CSR participation by firms has been extensively scrutinized by the media, socially responsible investors, and numerous CSR rating agencies, such as Morgan Stanley Capital International, Sustainalytics, FTSE Russell, Bloomberg, and Thomson Reuters, and any CSR misconducts could have a significant impact on a firm's reputation and its sustainability [6].…”

Section: Introductionmentioning

confidence: 99%

CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia

et al. 2021

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Only a few studies have investigated the association between the characteristics of the chief executive officer (CEO) (i.e., tenure and local or expatriate) and corporate social responsibility (CSR) reporting. Our study adds to the fledgling literature by providing new evidence from Saudi Arabia. Given the dominance of family control among Saudi Arabian listed firms, additionally, this study examined the moderating effect of family ownership on the CEO-CSR relationship. Using CSR scores from Bloomberg database from 2010 to 2019 and ordinary least squares (OLS) regression, the findings reveal that the association between CEO tenure and CSR reporting is positively significant; however, the association between CEO nationality and CSR is not significant. In addition, the findings indicate that family ownership is an important contingency factor that explains the association between CEO tenure and CEO nationality, and CSR reporting. Our study contributes to an emerging line of CSR research that investigates the effects of foreign CEOs on CSR transparency, and supports prior evidence on the benefits to investors of having long-serving CEO and the costs of family entrenchment.

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Corporate social responsibility, board gender diversity and real earnings management: The case of Jordan

Cited by 84 publications

References 71 publications

Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Investment in outside governance monitoring and real earnings management: evidence from an emerging market

CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia

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