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1 – 10 of 11Ghassan H. Mardini, Yasean A. Tahat and David M. Power
The purpose of this paper is to examine the extent of segmental reporting disclosure and its value relevance to a sample of Qatari and Jordanian listed companies following the…
Abstract
Purpose
The purpose of this paper is to examine the extent of segmental reporting disclosure and its value relevance to a sample of Qatari and Jordanian listed companies following the implementation review of the International Financial Reporting Standard (IFRS) 8. This was the first standard to be subjected to a post-implementation review. Annual reports are initially analyzed to investigate the level of segmental information that was published by companies in these two countries.
Design/methodology/approach
Using the Ohlson (1995) model, the study employs regression analysis to test the hypotheses relating to the value relevance of the segmental disclosures uncovered. In addition, one-way ANOVA and Kruskal-Wallis tests are used to investigate any variation in segmental reporting among sectors.
Findings
The findings indicate that the amount of segmental information disclosed by the sample firms differs across sectors. Moreover, the segmental information provided (including the number of segments and the amounts of disclosure) is value relevant and can explain the variations in firms’ share prices.
Practical implications
The results of the current investigation have implications for policy makers, including the International Accounting Standards Board, as well as for accounting regulators in Jordan and Qatar. They suggest that the segmental disclosures supplied under IFRS 8 are value relevant for equity prices in a developing country context. Compliance with IFRS 8 should thus be monitored to ensure that all firms provide the segmental disclosures that they are meant to supply under the terms of the standard.
Originality/value
This paper is one of the few to provide empirical evidence on the role of segmental reporting following the post-implementation review that was conducted for IFRS 8.
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Ahmed H. Ahmed, Ghassan H. Mardini, Bruce M. Burton and Theresa M. Dunne
The purpose of this paper is to explore the views of 18 users and preparers regarding the corporate internet reporting (CIR) practices of companies listed on the Egyptian Stock…
Abstract
Purpose
The purpose of this paper is to explore the views of 18 users and preparers regarding the corporate internet reporting (CIR) practices of companies listed on the Egyptian Stock Exchange (EGX).
Design/methodology/approach
A decision-usefulness theoretical framework is used as a lens for the study, in order to shed light on: internet infrastructure and its use for disclosure purposes in Egypt; the benefits of and trends in practices relating to CIR in Egypt; how the information presented accords with the qualitative characteristics of “usefulness” set out in the IASB’s conceptual framework of 2010; and the potential economic consequences of CIR.
Findings
The results indicate reasonable satisfaction with internet infrastructure in Egypt. The interviewees are intensive users of the internet, including accessing electronic sources of corporate information, but the perception remains of hard copy financial reports as the most important source of disclosure. With the exception of verifiability, the majority of respondents viewed CIR as having a (potentially) positive impact on the qualitative characteristics of accounting information as set out in the IASB framework.
Research limitations/implications
The use of the interview method is subject to some limitations. These include: the perceived lack of anonymity, which may restrict the extent to which participants speak honestly or openly about the topic being investigated; the non-standardisation of responses – which can result in the inability to make systematic generalisations; and interviewees’ perceptions being influenced by events which have taken place prior to the discussion.
Practical implications
This research provides substantive insights for policy makers about the current attitudes of interested parties concerning CIR in Egypt.
Originality/value
This study contributes to our knowledge in a number of ways, as it provides up-to-date evidence of interested parties’ views concerning CIR practices and it indicates how CIR has affected the quality of financial information disclosure practices. Moreover, this study extends prior research on the use of the internet as a disclosure channel by considering a different empirical site, namely Egypt, and also by adopting a different theoretical framework.
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Ghassan H. Mardini, Rula S. Wadi and Osama A. Mah’d
The purpose of this study was to assess the suitability of International Financial Reporting Standards (IFRS) in emerging markets such as Qatar. The current research attempts to…
Abstract
Purpose
The purpose of this study was to assess the suitability of International Financial Reporting Standards (IFRS) in emerging markets such as Qatar. The current research attempts to obtain insights into the advantages and disadvantages of IFRS implementation in Qatar based on the perceptions of top management, academics in accounting and external auditors.
Design/methodology/approach
A questionnaire survey was the main tool used in this research. A total of 120 questionnaires were distributed to financial managers, academics and external auditors. Of the 97 replies (80 per cent), 91 completed questionnaires were analysed.
Findings
The results suggest that IFRS implementation is suitable for the business environment of Qatar because the adoption of IFRS provides many advantages to the Qatari business environment, regulations and stock market without incurring additional major costs. Moreover, IFRS imposes no major constraints on the business environment or Islamic social responsibility and education in Qatar.
Practical implications
The results of this research paper will help regulators in Qatar and other Gulf Cooperation Council (GCC) countries develop accounting regulations.
Originality/value
This paper provides empirical evidence of the suitability of IFRS in emerging markets in general and the GCC region in particular and enhances the level of understanding of IFRS worldwide.
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Ghassan H. Mardini and Sameh Ammar
This study aims to explore the impact of international financial reporting standard no. 8 (IFRS 8) on segmental information reporting (SIR) after the post-implementation review…
Abstract
Purpose
This study aims to explore the impact of international financial reporting standard no. 8 (IFRS 8) on segmental information reporting (SIR) after the post-implementation review (PIR) issued by international accounting standards board (IASB). This impact is examined in relation to quality and quantity as SIR dimensions represent, respectively, the level of reported items and segments. As a complement to this, the chief operating decision maker (CODM) identity is considered to understand the patterns of SIR dimensions.
Design/methodology/approach
The SIR of the UK financial times stock exchange 100 (FTSE-100) listed companies over the period 2013-2016 is the research’s scope. Several criteria were developed to ensure a representative research sample. A disclosure index approach was used facilitating the use of content analysis for data collection, which pertained to the dimensions of SIR published by the FTSE-100 following IFRS 8 PIR.
Findings
The IFRS 8 PIR has had several implications shaping the growing trend that is underpinned by the SIR dimensions published by FTSE-100 companies. First, the SIR quantity dimension positively corresponds over 2013-2016, but it still does not meet IASB’s demands. This, secondly, also applies to the quality dimension of SIR to uncover inconsistency with the existing knowledge being held regarding the introduction of IFRS 8. More specifically, the response of the FTSE-100 to mandatory and voluntary items seems to be in transition of substitution. Third, CODM’s identity was an insightful dimension in rationalising the understanding through the aforementioned dimensions. It is undertaken by boards of directors or executive committees and the case of the latter is associated with more disclose in relation to the CODM’s identity.
Practical implications
These findings reveal implications to: academics undertaking further research about IFRS 8 PIR to challenge or endorse this conclusion, using similar or alternative approaches; the stakeholders’ decision-making process; and policymakers to re-think the structure of mandatory and voluntary items.
Originality/value
This paper provides empirical evidence on the quality and quantity of SIR published by FTSE-100 companies following IFRS 8 PIR.
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Ghassan H. Mardini and Fathia Elleuch Lahyani
This study examines the impact of female directors' representation in the boardroom and the role of institutional ownership (IO) on intellectual capital efficiency (ICE) and its…
Abstract
Purpose
This study examines the impact of female directors' representation in the boardroom and the role of institutional ownership (IO) on intellectual capital efficiency (ICE) and its three efficiency components: human capital efficiency (HCE); innovation capital efficiency (INCE) and capital employed efficiency (CEE).
Design/methodology/approach
A sample of non-financial French firms listed within the Société des Bourses Françaises-120 (SBF-120) was employed for the period from 2011 to 2020 using the generalized method of moments (GMM) approach to test the set of hypotheses.
Findings
Grounded in agency and resource dependence theories, this study found that female directors play a vital role in enhancing ICE. IO also has a significant role to play. Active institutional investors tend to push toward gender-balanced boardrooms and play an external supervisory role to improve efficiency. Moreover, female financial experts on audit committees also contribute to the ICE decision-making process within firms with high IO levels.
Research limitations/implications
This study focused only on IO. Future research may use other forms of ownership, such as foreign or family ownership.
Practical implications
The findings may serve as a reference for managers and policymakers to enhance IC management and make appropriate investment decisions. Managers and policymakers may rely on strategic and effective decisions regarding the efficient use of IC for value creation through the judgments of female directors.
Originality/value
The current study adds significant insights to the accounting and intellectual capital literature.
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Amneh Alkurdi and Ghassan H. Mardini
Adopting agency theory, the purpose of this study is to explore the impact of ownership structure and board of directors’ composition on the extent of tax avoidance strategies.
Abstract
Purpose
Adopting agency theory, the purpose of this study is to explore the impact of ownership structure and board of directors’ composition on the extent of tax avoidance strategies.
Design/methodology/approach
The sample included all of the Jordanian first market companies listed on the Amman Stock Exchange from 2012 to 2017, comprising 348 observations.
Findings
The main finding of the paper is that tax avoidance is negatively related to managerial and institution ownership structures, which reduces the usage of tax avoidance strategies. Foreign ownership, however, has a positive relation that increases the likelihood of adopting tax avoidance strategies.
Practical implications
This study has policy implications for policymakers in relation to designing future tax systems to reduce the possibility of engaging in tax avoidance practices.
Originality/value
To the best of the authors’ knowledge, this study is the first of its kind that investigates the effects of the managerial, foreign and institutional ownership classes and board composition on tax avoidance for Jordanian listed companies.
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Ghassan H. Mardini and Fathia Elleuch Lahyani
The purpose of this study is to examine the impact of carbon performance on carbon disclosure among nonfinancial French-listed firms, while also considering the corporate board’s…
Abstract
Purpose
The purpose of this study is to examine the impact of carbon performance on carbon disclosure among nonfinancial French-listed firms, while also considering the corporate board’s characteristics as a secondary objective.
Design/methodology/approach
This study uses a sample of Société des Bourses Françaises 120 Index (SBF-120) French-listed firms to investigate the effect of multiple carbon performance proxies on carbon disclosure based on random effects models for the period 2010–2021. Generalized method of moments regressions are used to encounter endogeneity problems.
Findings
Drawing on stakeholder theory, this paper finds that greater carbon performance leads to greater carbon disclosure. Given the growing societal awareness about climate-change issues, carbon-responsible firms are likely to disseminate relevant carbon-related information through disclosures to respond to the information demands of a varied stakeholder group. Coherent with signaling theory, large firms that undertake carbon-reduction initiatives tend to disclose more information about their enhanced carbon performance to equity participants to distinguish themselves and highlight their decarbonization efforts.
Originality/value
This study offers significant insights given that SBF-120 firms are involved in climate-change activities as a response to the growing institutional and societal pressure to perform better and disclose reliable environmental information in their sustainability reports.
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Ghassan H. Mardini and Fathia Elleuch Lahyani
Drawing on multiple theoretical approaches, this study aims to investigate whether the presence of foreign directors on the board is associated with a company’s carbon emissions…
Abstract
Purpose
Drawing on multiple theoretical approaches, this study aims to investigate whether the presence of foreign directors on the board is associated with a company’s carbon emissions performance (CP) and carbon disclosure (CD).
Design/methodology/approach
The sample comprises 67 non-financial listed firms from the Société des Bourses Françaises 120 index for the period 2010–2018 and the analysis relies on carbon reports from the carbon disclosure project, using a panel data analysis based on random-effects regression.
Findings
The paper finds that having foreign directors has a positive significant impact on both aspects of carbon emissions (CE), namely, CP and CD. Foreign directors’ incentives to reveal extensive sustainability information depend on the volume of CE. The findings also indicate that foreign directors are more engaged in enhancing environmental transparency and lowering information asymmetry to maintain/ improve corporate legitimacy.
Practical implications
The findings show that foreign directors play a vital role as one of the main pillars of a carbon model for sustainable carbon activities and disclosure. The evidence has important insights for the managers of French listed firms, shareholders and regulators.
Social implications
The evidence underlines the value of foreign directors as a critical resource that enhances CE strategic decisions. Thus, the findings are valuable to managers, as they may consider balancing between foreign and local directors to benefit from a rich heterogeneous resource encompassing the diverse merits of both types of directors, with particular emphasis on foreign directors’ international exposure and experience.
Originality/value
This study offers significant insights, as it examines the relationship between foreign directors and both the CP and CD in the French context, which is characterized by a non-English civil law system and the issuing of many environmental, climate and emission control laws.
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Ghassan H. Mardini and Fathia Elleuch Lahyani
Using agency theory and impression management theory, this study examines the impact of financial performance (FP) and corporate governance (CG) mechanisms on the extent of…
Abstract
Purpose
Using agency theory and impression management theory, this study examines the impact of financial performance (FP) and corporate governance (CG) mechanisms on the extent of intellectual capital disclosures (ICDs) and the three components within the CEO statement – human capital (HC), structural capital (SC) and relational capital (RC).
Design/methodology/approach
This study employs a sample of non-financial SPF-120 French listed firms to capture the relevant variables; it collects data for 2010–2017, using a panel data technique to run the random effects regressions.
Findings
The study finds that FP, measured using both market (Tobin's q) and accounting (return on equity and return on assets) indicators, plays a vital role in the extent of ICDs and the three components in the CEO statement published by SPF-120 companies. This confirms its impact on the decision-making needs of stakeholders. Among the CG mechanisms, this study finds that cultural diversity and gender diversity affect some ICD components. Moreover, CEO characteristics such as age, education and role duality affect ICD, while institutional ownership drives the extent of such disclosures.
Practical implications
Our findings have comprehensive implications for managers of French listed firms, the Autorité des Marchés Financiers, and stakeholders in general.
Originality/value
This study provides significant insights by investigating the impact of FP, CG and company characteristics on the extent of the ICDs published in CEO statements.
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Ghassan H. Mardini, Louise Crawford and David M. Power
The purpose of this paper is to explore the perceptions of external auditors, preparers and users (investors and analysts) of financial statements in Jordan about this new…
Abstract
Purpose
The purpose of this paper is to explore the perceptions of external auditors, preparers and users (investors and analysts) of financial statements in Jordan about this new segmental reporting standard; a decision usefulness framework underpins the research.
Design/methodology/approach
The objective of this study is to explore the perceptions of external auditors, preparers and users (investors and analysts) of financial statements in Jordan about this new segmental reporting standard; a decision usefulness framework underpins the research.
Findings
The findings reveal that a majority of interviewees found that IFRS 8 was not a problematic standard, and that the management approach of IFRS 8 was an improvement on the previous standard – International Accounting Standard (IAS) 14R – because the information produced was seen as useful to users of financial statements. Moreover, the respondents indicated that there was an improvement in the quantity and quality of segmental information under IFRS 8 in annual reports for 2009; it was more understandable, relevant, reliable and comparable than the segmental information which had previously been reported.
Research limitations/implications
No attempt was made to assess the usefulness of segmental information reported under IFRS 8 by Jordanian listed companies in their annual reports for other groups such as lenders, suppliers, customers, trade creditors and the general public (IASC, 1989). Thus, a survey about the impact of IFRS 8 on other groups may yield further insights about the decision usefulness of the new standard’s disclosures. However, Jordanians are not familiar with such research instruments and the culture within the society is relatively secretive (Piro, 1998).
Practical implications
The findings of the current research should be valuable for international accounting standard setters at the International Accounting Standards Board. It provides some indication about the impact of this new standard.
Originality/value
This research shows that segmental information reported under IFRS 8 is more useful for decision makers needs compared to segmental information that previously reported under IAS 14R. It also provides a great insight about the impact of this new segmental disclosure standard.
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