The Accounting Profession’s Role in Corporate Governance in Frontier Markets: a Research Agenda

Crittenden, Carl A.; Crittenden, William F.

doi:10.15388/omee.2014.5.2.14232

Cited by 6 publications

(6 citation statements)

References 26 publications

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“…Poor disclosure and financial opacity is common among companies in emerging markets (Fan et al 2011). While Patel et al (2002) find that transparency and disclosure in selective emerging markets have increased over time, Crittenden and Crittenden (2014) suggest poor disclosure may be even more pervasive within frontier markets.…”

Section: Disclosure Requirementsmentioning

confidence: 99%

Earnings Management in Frontier Market: Do Institutional Settings Matter?

2021

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We analyse whether differences in earnings management practices in frontier countries can be explained by institutional settings, considering their diverse corporate governance environments, legal regimes, and accounting standards. Across 22 frontier market countries from 2000–2017, we find that financial disclosure, legal environments, and the number of analysts following to be correlated with reduced levels of earnings management (EM). The impact of wealth, GDP growth, firm size, and the use of Big-4 auditors were also associated with reduced EM. Contrary to developed markets and novel to this study, higher levels of societal trust failed to show significance in its ability to constrain EM, suggesting informal institutions are less influential as control monitors. Findings herein verify that the factors that moderate EM are not universally applicable, and help highlight international differences in the management of earnings.

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Section: Disclosure Requirementsmentioning

confidence: 99%

Earnings Management in Frontier Market: Do Institutional Settings Matter?

2021

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“…García-Sánchez et al (2013) also show that firms located in civil law countries with strict regulations are more likely to prepare sustainability reports. The need for organizational compliance to laws and regulations indubitably influences financial reporting (Lourenço and Branco, 2013; Crittenden and Crittenden, 2014; Deegan, 2002; Gatti and Seele, 2014; Wilmshurst and Frost, 2000). However, though regulatory or coercive pressures significantly affect firm behavior, Ioannou and Serafeim (2017) state that in the absence of legal pressures, companies still seek for comparability and credibility.…”

Section: Theoretical Underpinnings and Development Of Hypothesesmentioning

confidence: 99%

“…Africa’s context of financial reporting is complex and characterized by problems unique to the region. Weak accounting and legal systems, difficulties in implementing international accounting standards, incompetence of accounting professionals and inadequate audit infrastructures are difficulties experienced by firms operating in Africa (Crittenden and Crittenden, 2014; Sedzani, 2012). Though the region’s economic momentum is widely recognized, social and environmental welfare is also largely regressive.…”

Section: Introductionmentioning

confidence: 99%

The adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework: lessons from South Africa

Wachira

Berndt

Romero

2019

SRJ

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Purpose This study aims to explore factors influencing voluntary adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework. Given South Africa’s political history, the authors argue that accounting practice can be used to secure the legitimacy and transparency of businesses. Design/methodology/approach Two logistic regression equations are used to predict the likelihood of firms’ subscribing to either Global Reporting Initiative (GRI) or the Integrated Reporting (<IR>) framework, respectively. The authors consider annual, sustainability and integrated reports issued for the financial year ended 2014. Findings The results show a statistically and significant positive association between the adoption of the GRI’s guidelines and the level of transparency of non-financial disclosures and environmental sensitiveness. The application of the <IR> framework is also associated with the level of a firm’s transparency score and with its respective analyst following, which acts as a measure for capital markets requiring a high information environment. Originality/value This paper illustrates the development of integrated and sustainability reporting (SR) practices within an emerging market. By drawing distinctions between locally developed South African codes of corporate governance, namely, King I-III and international guidelines proxied by the GRI’s guidelines for SR, and the <IR> framework, the authors show that South African firms still adopt international guidelines despite the mandatory framework in place.

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“…Later, South Africa became an emerging market, resulting in BRICS. The 'Next Eleven' (i.e., Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey, and Vietnam) joined the BRICS, encompassing a wide range of nations of potentially regional powerhouses transitioning through turbulent environments of economic, social, and political reforms (Crittenden & Crittenden, 2015). Crittenden and Crittenden (2010) explored emerging economies and suggested a continuum of market economies, with a lack of demarcation between emerging and developed markets.…”

Section: Emerging Economiesmentioning

confidence: 99%

Fostering Economic Growth in Frontier Markets: Perceptions in The Tunisian Post-Arab Spring

Crittenden

Beggin

Crittenden

et al. 2020

Multidiscip. bus. rev (Impr.)

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The need for economic reform is at the heart of the criticism for many frontier economies. Fostering entrepreneurship and identifying business opportunities generate paths for job creation and economic growth. Given the underlying tensions that led to the Arab Spring, our study focuses on the one country that is considered to be a post-Arab Spring success story and explores the Small-Medium Enterprise (SME) business environment in Tunisia. Perceived changes in the SME environment in Tunisia were examined qualitatively via in-depth personal interviews with 21 Tunisian economic experts. Analysis of the interview data followed the thematic analysis approach. Our findings indicate that social reforms and the development of financing alternatives should be paramount for the growth of SMEs and the economic success of frontier markets. Additionally, educational reform and communication to foster entrepreneurial behaviour and effective managerial practices are required to ensure that current and future generations are prepared to engage successfully in the formal economy. Although our research focused on a single frontier market economy, we believe these findings are generalizable to many emerging economies. The findings should hold considerable policy implications due to the nature of the reforms suggested. There are popular and business press articles about the post-Arab Spring and stories about Tunisia’s Jasmine Revolution; however, increased scholarly focus on entrepreneurial efforts post-Arab Spring in Tunisia will further solidify the intersection of economic gain and human development.

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The Accounting Profession’s Role in Corporate Governance in Frontier Markets: a Research Agenda

Cited by 6 publications

References 26 publications

Earnings Management in Frontier Market: Do Institutional Settings Matter?

Earnings Management in Frontier Market: Do Institutional Settings Matter?

The adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework: lessons from South Africa

Fostering Economic Growth in Frontier Markets: Perceptions in The Tunisian Post-Arab Spring

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