Culture, institutional quality and earnings management: an international evidence

Yamen, Ahmed; Kuzey, Cemil; Dinç, Muhammet Sait

doi:10.1108/emjb-06-2020-0068

Cited by 10 publications

(10 citation statements)

References 51 publications

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“…This reveals that improvement in rule of law (law and order) could be used to reduce the level of board politics, corruption, sharp practices, and opportunism in designing efficient and effective executive compensation contracts in Nigeria. This result aligns with the findings of studies such as Yamen et al (2021), Martens et al (2021), Zou (2019) Sepahvand et al (2019), Wijayana and Gray (2019), Jouber and Fakhfakh (2014), Bryan et al (2010, 2011), and Brenner and Schwalbach (2009) which found that institutional quality is a key input in driving executive compensation contracts. This research outcome reveals that institution (law and order) plays an important role in the determination of pay packages of CEOs of listed firms in Nigeria.…”

Section: Presentation and Discussion Of Empirical Findingssupporting

confidence: 89%

“…Thus, benchmarking pay for performance for CEOs of listed firms has a high likelihood to be mediated by the level of institutions. This connotes that the states of institutions in a country have the potency of mediating executive compensation contracts and the pay‐performance sensitivity for CEOs of quoted firms (Gyapong et al, 2020; Yamen et al, 2021). A country's institutional environment and legal enforcement of contracts are key ingredients in ensuring the effectiveness of CEO pay as a corporate governance tool (Jouber & Fakhfakh, 2011, 2014; Sheikh et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…The structure of CEO pay appears to be fairer under the conditions of strong law enforcement of contracts and strict rule of law (Brenner & Schwalbach, 2009; Bryan et al, 2010, 2011; Jouber & Fakhfakh, 2012, 2014) while corrupt countries suffer from less efficient compensation structures (Cumming et al, 2013; Yahya & Ghazali, 2018). Some other studies have equally emphasized the importance of institutional factors in earning management (Martens et al, 2021; Wijayana & Gray, 2019; Yamen et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Do institutional framework and its threshold matter in the sensitivity of CEO pay to firm performance? Fresh insights from an emerging market economy

Olaniyi

Young

et al. 2022

Manage Decis Econ

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This study examines the role of institutional quality and its threshold in the sensitivity of CEO pay to firm performance in an emerging market economy, using a generalized method of moments, Driscoll and Kraay's nonparametric covariance matrix estimator, and robust dynamic panel threshold. Bureaucratic quality and corruption control weaken performance‐based pay for CEOs, while law and order strengthen it. The overall institutions allow boardroom backscratching which biases executive compensation contracts. The study shows that the country operates below the institutional quality threshold values required to spur performance‐based pay for CEOs. The study concludes that institutions matter in CEO pay‐firm performance nexus.

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Section: Presentation and Discussion Of Empirical Findingssupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Do institutional framework and its threshold matter in the sensitivity of CEO pay to firm performance? Fresh insights from an emerging market economy

Olaniyi

Young

et al. 2022

Manage Decis Econ

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“…Our results on cultural factors support the findings of Yamen et al (2022). These authors highlight the role of both formal and informal cultures in shaping financial reports.…”

Section: Modelsupporting

confidence: 89%

The impact of acculturation process and the institutional isomorphism on IFRS adoption

Salem

Damak-Ayadi

2022

EMJB

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PurposeThis study aims to explain why some countries have quickly embraced IFRS standards while others have partially adopted IFRS and others have been resisting using a model borrowed from social psychology that appeals to cultural differences.Design/methodology/approachAfter selecting a sample of 30 countries, the data were analyzed through hierarchical cluster analysis. The results indicate that the sampled countries are classified into seven categories according to the degree of application of international standards. The ordinal regression is used to identify cultural and institutional factors that influence the adoption of IFRS.FindingsThe findings show that interpersonal communication promotes the application of international standards while open-mindedness, ethnocentrism and knowledge of the host culture prevent the transition to a strategy of adoption. The authors have also found out an empirical support for the two institutional isomorphic pressures (coercive and mimetic) on the adoption of IFRS at the national level. While the opening to the international economy encourages countries to set a strategy of adoption, civil liberties and political rights, taxation and innovation impede such adoption.Practical implicationsThe study contributes to a better understanding of the factors influencing the implementation of IFRS. It provides to institutional theorists, accounting scholars and policymakers a cultural and institutional model for effective IFRS adoption conditions: promote intercultural interactions; master IFRS does not automatically mean applying them; encourage openness to the global economy; review the taxation system and accounting education programs and especially; and allow some flexibility for standard setters. This study can also assist regulators to verify their policies for the enforcement of IFRS. This paper will also be useful for future research studying the links between human behavior and the choice of new accounting standards through acculturation theory.Originality/valueThrough the acculturation theory, five new cultural dimensions developed by Ben Salem et al. (2019) are used for the first time to define the choice of accounting systems developed to international standards. This study empirically verified the predictive validity of these dimensions on the adoption of IFRS. Previous research have been based on the relationship between culture and disclosure using mainly the Hofstede dimensions. There is, therefore, a shortage of studies analyzing the culture and adoption of IFRS in individual countries. This study provides a cultural and institutional model of IFRS implementation conditions. Similarly, the research included taxation, which is not addressed by previous research, and their relevance in explaining the recourse to IFRS standards is confirmed.

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“…Recent studies have demonstrated that international marketing functions are changing rapidly, due to market dynamism (Jeong et al ., 2019; Liu et al ., 2020; Reimann et al ., 2022). Other studies have highlighted that some theories have potential to explore the concept of IDMCs, but they still require further investigation from the perspective of international marketing abilities (Gligor et al ., 2019; Rust, 2020; Al-Kwifi et al ., 2021; Yamen et al ., 2022; Hoque et al ., 2022a, b; Reimann et al ., 2022). International marketing literature has identified marketing abilities as the main driver of firms' internationalization (Morgan et al ., 2018; Mitręga, 2019).…”

Section: Literature Review and Theoretical Foundationmentioning

confidence: 99%

Examining the marketing performance of the firms from an international dynamic marketing capability perspective: moderating role of marketing leadership team

Chatterjee

Chaudhuri

Vrontis

2022

IMR

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PurposeThis study examines the marketing performance of firms from an international dynamic marketing capability perspective. It also investigates the moderating role of marketing leadership teams to improve organizations' international marketing performance.Design/methodology/approachThe authors used dynamic capability view and other related literature to develop a theoretical model, which was validated with the structural equation modelling technique, considering a sample of 455 respondents from Indian firms. The authors also used the multigroup analysis method to examine the moderating impacts of a firm's marketing leadership team on their international marketing performance.FindingsThere is a positive relationship between a firm's dynamic ability factors and its international dynamic-marketing capabilities. The study also finds that a firm's marketing leadership team has a significant positive moderating impact on improving its international marketing performance.Research limitations/implicationsThe unique theory-based model clearly explains how a firm's dynamic abilities impact international dynamic marketing capability, which then impacts its international marketing performance. This model can help practitioners, researchers and academicians to understand the significance of a firm's international dynamic capability on international marketing performance. The study also helps firms to understand the moderating influence of marketing leadership teams to improve international marketing performance.Originality/valueThis study adds value to the body of literature on international dynamic marketing, international marketing performance and international marketing knowledge management, on which, until now, few other studies have focused. Thus, this research is unique. The proposed model of international dynamic marketing is also unique with high explanative power.

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Culture, institutional quality and earnings management: an international evidence

Cited by 10 publications

References 51 publications

Do institutional framework and its threshold matter in the sensitivity of CEO pay to firm performance? Fresh insights from an emerging market economy

Do institutional framework and its threshold matter in the sensitivity of CEO pay to firm performance? Fresh insights from an emerging market economy

The impact of acculturation process and the institutional isomorphism on IFRS adoption

Examining the marketing performance of the firms from an international dynamic marketing capability perspective: moderating role of marketing leadership team

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