Impact of governance structures on environmental disclosures in the Middle East and Africa

Kılınçarslan, Erhan; Elmagrhi, Mohamed H.; Li, Zezeng

doi:10.1108/cg-08-2019-0250

Cited by 58 publications

(57 citation statements)

References 133 publications

(200 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…For instance, the highest Pearson's correlation figures, for INDEPENDENCY-BOARDSIZE, FAMBOARD-DUALITY and BOARDSIZE-FIRMSIZE, range from 47%-51%. As a rule of thumb, a VIF greater than 10 and a tolerance (1/VIF) value lower than 0.1 indicate multicollinearity (Gujarati, 2003;Al-Najjar and Kilincarslan, 2016;Ko et al, 2019;AlHares et al, 2020;Kilincarslan et al, 2020;Chiang et al, 2021). Given that all VIF values are comparatively low (ranging from 1.13-2.23) and all tolerance values are higher than 0.1, our results suggest no multicollinearity between the independent variables.…”

Section: Descriptive Analysismentioning

confidence: 66%

The influence of board independence on dividend policy in controlling agency problems in family firms

Kılınçarslan

2021

IJAIM

Self Cite

View full text Add to dashboard Cite

Purpose This study aims to investigate the impact of board independence on the cash dividend payments of family firms listed on the Borsa Istanbul (BIST) in balancing controlling families’ power to mitigate agency problems between family and minority shareholders in the post-2012 period. The authors focus on this period because Turkish authorities implemented mandatory regulations on the employment of independent directors on boards from fiscal year 2012. Design/methodology/approach The research model uses a panel dataset of 153 BIST-listed family firms over the period 2012–2017, employs alternative dependent variables and regression techniques and is applied to various sub-groups to improve robustness. Findings The empirical results show a strong positive effect of board independence on dividend decisions. The authors further detect that family directorship exhibits a negative effect, whereas both board size and audit committees have positive influences but chief executive officer (CEO)/duality has had no significant impact on the dividend policies of Turkish family firms since the new compulsory legal requirements in the Turkish market. Research limitations/implications The findings suggest that independent directorship and dividend policy are complementary governance mechanisms to reduce agency conflicts between families and minority shareholders in Turkey, which is a civil law-based emerging country characterized by high family ownership concentration. Practical implications The authors present evidence that Turkish family firms’ corporate boards have evolved, to some extent, from being managerial rubber stamps to more independent boards that raise opposing voices in family decision-making. However, independent directors’ preference for dividend-induced capital market monitoring implies that their direct monitoring is less effective than it is supposed to be. This suggests a need to revise the Turkish Corporate Governance Principles to enhance independent directors’ monitoring and supervisory power. Originality/value This is thought to be the first study to provide insights on how board independence influences dividend policy in controlling agency problems in Turkish family firms since Turkish authorities introduced compulsory rules on the employment of independent directors on boards.

show abstract

Section: Descriptive Analysismentioning

confidence: 66%

The influence of board independence on dividend policy in controlling agency problems in family firms

Kılınçarslan

2021

IJAIM

Self Cite

View full text Add to dashboard Cite

show abstract

“…In other words, governance includes all the principles or rules to improve the accuracy and reliability of disclosure, with which businesses must comply to protect investors. Thus, governance is crucial to decision-making, and its quality is critical to achieving complex environmental and social goals (Michelon and Parbonetti, 2012; Kilincarslan et al , 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…CSR is the action of a firm to do good to society beyond the constraint of law and the primary purpose of the firm, which must act in the interests of its shareholders. One of the most important responses of companies to this environmental improvement has been the appearance of deliberate environmental disclosures in their annual reports (Jo and Harjoto, 2012; Rao et al , 2012; Kilincarslan et al , 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The effect of social and ethical practices on environmental disclosure: evidence from an international ESG data

Chouaibi

Affes

2021

View full text Add to dashboard Cite

Purpose Given the rising global interest in the environmental, social and governance (ESG) index, the purpose of this paper is to investigate the impact of social and ethical practices on the firm’s environmental disclosure level. Design/methodology/approach To test the study’s hypotheses, the authors applied linear regressions with a data panel using the Thomson Reuters ASSET4 and Bloomberg database from seven countries in analyzing data of 523 listed companies selected from the ESG index between 2005 and 2017. Similarly, as an extension of the research and to address the potential unobserved heterogeneity and the dynamic endogeneity, the authors exploited the dynamic dimension of the data set through the generalized moment method (GMM) and estimated the impact of the one-year lagged value of the environmental disclosure. Findings The empirical results indicate a growing interest in corporate social responsibility (CSR) and ethical practices over the past decade. Besides, companies with a strong social and ethical commitment obtain significantly higher environmental disclosure scores. The results found with the GMM technique indicate the existence of dependence and continuity in environmental disclosure over time. Practical implications The research enables the information user to assess the transparency of the company as well as the quality of the information disclosed on its environment and its future growth opportunities in a context where the approach of business ethics occupies a central position in business valuation. The reached results suggest that the institutional and/or cultural factors affect top management’s environmental reporting behavior regarding the quality of published information. Originality/value This paper explores, for the first time, the effect of the social and ethical practices of ESG companies with seven different nationalities as well as its dynamic effect on the adoption of an environmental transparency strategy.

show abstract

“…While the results indicate significant correlations between the variables, they are no more than moderately correlated. The VIF and tolerance (1/VIF) statistics are also calculated – as a rule of thumb, a VIF greater than 10 and a tolerance value lower than 0.1 (that corresponds to a VIF value of 10) indicate multicollinearity (Gujarati, 2003; Al-Najjar and Kilincarslan, 2018; Kilincarslan, 2018; Kilincarslan et al , 2020). However, we find that no VIF exceeds 10 or a tolerance value lower than 0.1.…”

Section: Analysis Of Financial Characteristics Impact On Dividend Decisionsmentioning

confidence: 99%

Dividend policies of travel and leisure firms in the UK

Kılınçarslan

Demiralay

2021

IJAIM

Self Cite

View full text Add to dashboard Cite

Purpose This study aims to examine cash dividend practices of travel and leisure (T&L) companies listed on the London Stock Exchange (LSE). Design/methodology/approach The study uses a panel data set of 524 firm-year observations of 55 unique publicly listed UK T&L companies between 2007 and 2019. First, it uses a modified version of Lintner’s (1956) partial adjustment model for analysis regarding the target payout ratio and dividend smoothing. Second, it performs logit and Tobit models in ascertaining the association between financial characteristics and divided decisions of T&L firms. Finally, it applies the modified specification of the partial adjustment model on different sub-samples that are partitioned based on various financial factors to determine how the financial characteristics of T&L companies affect their dividend behavior. Findings The results show that UK T&L companies have long-term payout ratios and adjust their cash dividends by moving gradually to their target at a serious degree of smoothing. The findings also detect that financial characteristics of T&L firms (i.e. profitability, debt and size) have significant effects on their dividend payments decisions. In particular, more profitable and larger T&L corporations are more likely to pay cash dividends, whereas T&L companies with more debt are less likely to pay cash dividends in the UK. The results further reveal that although such financial characteristics also have important impacts on the target payout ratios and dividend smoothing levels, UK T&L companies generally adopt stable dividend policies over the period 2007-2019. Originality/value This is thought to be the first study to provide insights on dividend policy practices of UK travel and leisure corporation listed on the LSE.

show abstract

Impact of governance structures on environmental disclosures in the Middle East and Africa

Cited by 58 publications

References 133 publications

The influence of board independence on dividend policy in controlling agency problems in family firms

The influence of board independence on dividend policy in controlling agency problems in family firms

The effect of social and ethical practices on environmental disclosure: evidence from an international ESG data

Dividend policies of travel and leisure firms in the UK

Contact Info

Product

Resources

About