Purpose This study aims to examine how managerial myopia shapes corporate carbon disclosure strategy and whether myopic managers rely mainly on symbolic rather than substantive disclosure. Design/methodology/approach Using panel data on Chinese central state-owned enterprises in heavily polluting industries and the transportation sector from 2012 to 2022, this study constructs a manual carbon disclosure index and decomposes it into symbolic and substantive disclosure. The study also examines the moderating roles of peer firms' government low-carbon certification and investor sentiment. Findings Managerial myopia is positively associated with overall carbon disclosure, and this association is driven mainly by symbolic rather than substantive disclosure. Peer firms' government low-carbon certification strengthens this relationship, whereas investor sentiment weakens it, with both effects concentrated in symbolic disclosure. Environmental management system certification weakens, while central environmental inspections amplify, the disclosure incentives induced by managerial myopia. Managerial myopia also reduces green invention patent applications, supporting a strategic decoupling interpretation. Practical implications Regulators and investors should not equate more carbon disclosure with stronger carbon governance. Regulators should establish standardized disclosure and verification requirements, while investors should assess disclosure composition to identify real low-carbon action and constrain strategic decoupling. Originality/value This study extends managerial myopia research to carbon disclosure and shows that short-term-oriented managers may respond to external evaluation pressure through symbolic disclosure rather than substantive carbon governance. It also distinguishes symbolic from substantive carbon disclosure and highlights strategic decoupling in an emerging-market setting.
Purpose This study explores the effects of managerial reputation incentives and conservatism on accrual-based earnings management (AEM) in firms listed on the Tehran Stock Exchange (TSE). Design/methodology/approach This study examined data from 191 firms between 2014 and 2023. Managers' age and signatures are psychological indicators of reputation, motivation, and conservatism, respectively. Findings The results show that managers' reputation incentives (MREP) have a significant positive effect on AEM, while manager conservatism (MCON) has a significant negative effect. The hypotheses were examined specifically for highly constrained firms as part of the robustness testing. Moreover, no reverse causality was found, confirming the assumed theoretical direction. MREP and MCON have a significantly stronger impact on AEM among female executives in large firms. Originality/value MREP and MCON can each serve a dual function in the AEM, illustrating the complex interactions among motivation, ability, and various characteristics. These behavioral traits have received limited empirical attention, particularly in emerging markets. This study addresses the gaps in these relationships and suggests an improved decision-making strategy.
Purpose This study revisits the nexus between real earnings management (REM) practices and corporate performance, and examines whether corporate reputation moderates this relationship, in the context of sub-Saharan African. Design/methodology/approach The study uses panel data from 203 listed non-financial firms across twelve (12) sub-Saharan African stock markets from 2014 to 2023. A corporate reputation index is constructed based on Eisenegger and Imhof's reputation theoretical perspective - functional, social, and expressive reputations. Least squares dummy variable (LSDV) two-way fixed effect regression models are used to test the formulated hypotheses, and GMM to address endogeneity concerns. Findings The results show that REM negatively impacts corporate performance. Corporate reputation is found to positively moderate this negative relationship, mitigating the adverse effects of REM on performance. The moderating effect is stronger for firms with weaker corporate governance. These findings align with the self-regulation and expectancy violation theories, as well as the reputation-building hypothesis, suggesting that managers of reputable firms adopt self-regulating attitudes, are less incentivized to engage in REM, and are more concerned about meeting stakeholders' expectations to maintain their reputations. Practical implications The findings suggest that reputation-building can serve as a complementary strategy to strengthen existing corporate governance mechanisms in mitigating opportunistic REM practices, especially in contexts with weak institutional environments. Originality/value This study provides new insights into the role of corporate reputation in constraining earnings management and enhancing corporate performance in emerging markets. It introduces an alternative method of measuring reputation for firms not covered by popular reputation ratings such as Fortune Magazine and RepRisk.
Purpose The aim of the study was to determine how isomorphic tendencies in published accounting journal articles impact AfroCentric research. Design/methodology/approach The study analyzes 63,785 English language abstracts of accounting articles published between 1966 and 2021 in Australian Business Deans Council (ABDC) ranked journals supplemented by an autoethnographic account to highlight problem areas in double blind review protocols. Findings Accounting research abstracts with African descriptors in their title were more isomorphic than others for sixteen out of seventeen topics. A similar pattern of isomorphic language use was not detected in a SinoCentric group. Research limitations/implications The study assessed published abstracts rather than full papers, was limited to articles with English-language abstracts and focused on only the twenty highest GDP African countries. The autoethnographic account is only suggestive of problem areas in review processes given that properties of rejected papers cannot be readily assessed. Practical implications Journal ranking metrics created by panels outside an institution's geopolitical region can embody underlying value functions that under-value and ultimately discourage research on topics relevant to a program's target constituents. Non-Western programs may wish to sponsor regional journals and articulate their own vision of the properties of high-quality research. Social implications Bias in journal ranking metrics pose an epistemic justice issue for scholars attempting to go beyond extant paradigms to address emerging issues. Originality/value The study provides evidence that isomorphic tendencies in accounting impact work focused on some regions more than others and suggests that double blind review processes can function as a Lakatosian barrier to work that departs from dominant paradigms.
Purpose This study systematically reviews the literature on corporate tax avoidance (CTA) in the digital economy, with a particular focus on emerging economies. It seeks to pinpoint essential mechanisms of profit shifting, evaluate tax policy responses and formulate a future research agenda for emerging economies that align with both global and provincial fiscal challenges. Design/methodology/approach Using Scopus as the primary database, 848 publications (2000–2025) were screened through the SPAR-4 framework and refined into 213 high-quality studies. To systematically synthesise the review, the study used bibliometric performance analysis, science mapping and thematic clustering. Alongside, the TCCM framework of review was applied to identify gaps spotted in Theory, Context, Characteristics and Methods. Findings Seven thematic clusters emerged: (1) Intangible asset mobility and profit shifting, (2) patent ownership strategies, (3) digital platform taxation, (4) e-commerce and cross-border taxation, (5) digital transformation and ESG, (6) R&D incentives and tax planning and (7) global tax architecture and allocation reform in the digital economy. The evidence highlights how digital multinationals exploit intangibles, treaty shopping and innovation-driven R&D incentives to minimise tax liabilities, which have disproportionate effects on revenue-dependent emerging economies. While unilateral measures (e.g. equalisation levies and anti-avoidance rules) provide partial remedies, global coordination through OECD's Base Erosion Profit Shifting (BEPS) Pillar One and Pillar Two remain essential yet incomplete. Research limitations/implications The review is confined to English-language publications indexed in Scopus, allowing for the potential incorporation of regional and grey literature in future studies. The study also brings about opportunities for deeper inquiry into the R&D tax credits to Small and Medium Enterprises (SMEs), platform-based business taxation, sectoral heterogeneity in CTA, ESG integration, global tax architecture in the digital economy and the Post-BEPS packages or post-DST impact on CTA in the digital economy. Practical implications The study underscores the importance for policymakers in emerging markets to strengthen transfer-pricing rules, invest in audit and tax data disclosure analytics capacity and engage proactively in multilateral CTA reforms to safeguard fiscal resilience and equity in the digital era. Originality/value This is an integrated bibliometric and thematic review of CTA in the digital economy with explicit emphasis on emerging economies. By bringing together different themes with the TCCM framework, it offers a complete plan for research to connect tax rules with innovation, sustainability and inclusive digital economy growth in emerging economies, where this kind of guidance is necessary but currently lacking.
Purpose Despite growing attention to integrated reporting (IR) as a governance mechanism for improving corporate disclosures and delivering potential benefits - particularly in emerging markets - there is little evidence of its impact on capital allocation and value relevance. This study examines whether higher investment efficiency enhances firm value and whether it strengthens the association between IR quality and firm value in an emerging market context.Design/methodology/approach Drawing on panel data from 617 firm-year observations of Thai-listed firms between 2019 and 2023, the results demonstrate the robustness of the ordinary least squares (OLS) regression and generalised method of moments (GMM) approach.Findings Higher investment efficiency, by mitigating overinvestment and underinvestment, enhances firm value. The association between IR quality and firm value is stronger for firms with higher investment efficiency, suggesting that firms allocating capital more effectively derive greater benefits to firm value from IR quality.Practical implications Integrating valuation considerations into a high-quality IR framework can enhance corporate disclosures, promote efficient capital allocation and contribute to firm value, guiding managers, policymakers and regulators.Social implications High-quality integrated reports benefit both firms and capital markets, encouraging responsible corporate practices and supporting more efficient capital allocation decisions.Originality/value Drawing on Thailand's mandatory IR ("one report") setting, this study, among empirical studies on IR quality and firm value, provides evidence on how this association could move beyond general sustainability disclosures to actively influence efficient capital allocation and enhance market transparency.
Purpose This study investigates the extent of utilization of social media for stakeholder engagement. It aims to uncover to what extent the use of social media for stakeholder engagement reflects a form of “organized hypocrisy”. Design/methodology/approach A netnographic approach is used to analyse 30 high ESG score companies across the three most active social media user countries in Southeast Asia. A content analysis is then applied to the companies' sustainability report narratives, comparing them with the firms' social media activities. Findings There is a significant disconnect between the company's claim of stakeholder engagement and the evidence of their social media interactions, revealing a lack of substantial stakeholder engagement. This pattern reflects “hypocrisy” in stakeholder communication. Divergent stakeholder demands are observable in digital interaction spaces, but their presence does not consistently explain firm's non-engagement. Some institutional enablers of ambiguity across the sustainability reporting framework and emerging economy context shape how digital stakeholder engagement is enacted. Practical implications Firms seeking to build authentic digital stakeholder engagement should be cautious in equating social media presence with meaningful engagement practices. Policymakers and standard setters should clarify what constitutes meaningful engagement in digital contexts to reduce symbolic compliance. Originality/value This study extends Brunsson's (1989) concept of “organized hypocrisy” to digital stakeholder engagement and clarifies the boundary of its applicability in an emerging economy context.
Purpose This study examines the relationship between the presence of board executive committees and the incidence of corporate financial restatements among publicly listed firms in the Gulf Cooperation Council (GCC) region. While prior research has largely focused on the role of audit, risk and other board committees, the executive committee remains an emerging governance structure, especially in emerging markets, and has been relatively underexplored. Design/methodology/approach Using a sample of GCC-listed firms, this study employs multivariate regression analyses to test the impact of executive committee presence on the likelihood of financial restatements. Robustness checks are conducted through alternative model specifications, and the analysis is extended to consider the corporate lifecycle, financial distress and debt interest exposure. Findings The findings reveal strong evidence that the existence of an executive committee is significantly associated with a higher probability of financial restatements. These results remain consistent across different empirical specifications. The presence of executive committees, which are deeply involved in daily operations and strategic decision-making, may compromise financial reporting quality, particularly in contexts with evolving regulatory frameworks. Originality/value This study offers novel insights into the underexamined role of executive committees in corporate governance. It contributes to the literature by identifying a potential governance risk and provides practical implications for enhancing financial transparency and accountability in developing capital markets, particularly in the GCC region.
Purpose Understanding the determinants of capital structure decisions is essential to enhancing the firm's financial sustainability. The objective of the present study is to examine the influence of financial reporting quality (FRQ) on the decision of a firm's capital structure. Furthermore, the moderating impact of financial constraints (FC) is investigated in this relationship. Design/methodology/approach The study's sample consists of 165 non-financial Pakistan Stock Exchange-listed companies from 2010 to 2023. The sample companies' capital structure is calculated by the ratio of total debt to total debt plus the market value of equity. FRQ is calculated using Jones' (1991) accrual-based model and Dechow et al.'s (1995) accrual quality-based model, while financial constraints are evaluated using the KZ Index. To meet the study's objectives, we used a random effect model (REM) based on the Hausman test. Furthermore, the system-generalized approach of the moment estimation technique is employed to assess the robustness of the findings. Findings In support of the agency theory and pecking order theory, the results indicate that firms with greater FRQ minimize information asymmetry and agency cost, lowering the cost of equity and therefore negatively correlated with financial leverage in the capital structure. Furthermore, the results demonstrate that financial constraints enhance the negative relationship between FRQ and capital structure. Research limitations/implications The findings have serious consequences for emerging markets where governments want to increase market openness. In emerging markets with a lack of clear information, high agency costs, and a higher perceived risk, an acceptable FRQ is critical for boosting transparency and lowering agency expenses, which enhances a firm's stability. Practical implications The study's findings provide policymakers, business managers, regulators and investors with a better knowledge of how a firm's FRQ affects capital structure in Pakistani firms, as well as the significance of financial constraints in this relationship. Originality/value To the best of the authors' knowledge, this is the first study in an emerging market that empirically investigates the impact of FRQ on capital structure while studying the moderating role of financial constraints.
Purpose This study investigates the impact of fair value measurement on audit fees in the Turkish banking industry. It examines whether IFRS 13 fair value hierarchy levels differentially affect fees and if these effects vary between conventional and Islamic banks.Design/methodology/approach The study employs panel data analysis using data from 49 Turkish banks from 2020 through 2024.Findings The overall proportion of fair value assets is positively associated with audit fees, a relationship primarily driven by Level 1 assets. While the full sample shows no significant impact for Level 2 or 3 assets, the results differ by bank type. Level 3 exposures increase fees for conventional banks, whereas Islamic banks show a negative interaction, suggesting Shariah governance mitigates valuation risk. Consequently, the pricing of Level 3 exposures depends heavily on the type of banking model.Practical implications Audit firms should calibrate engagement planning to clients' fair value intensity by deploying specialists for Level 3 exposures at conventional banks. Regulators should recognize that fair value hierarchy's audit complexity implications are context-dependent and that Shariah governance mechanisms significantly affect audit fees in Islamic banking.Originality/value Audit fee data for Turkish banks became public for the first time in 2020, enabling new empirical insights. This study contributes by distinguishing overall fair value intensity from level-specific effects (Levels 1-3) and establishing institutional heterogeneity by contrasting conventional and Islamic banks. Beyond simply adding the Turkish audit market to the literature, this study offers theoretical insights into the boundaries of Western models.
Purpose The lack of depth in environmental risk disclosures in alignment with actual performance often limit transparency. This study examined how firms leverage on their unique attributes to strengthen the relationship between environmental performance and environmental risk disclosure quality. Design/methodology/approach Grounded in the voluntary disclosure and legitimacy theory, the study employed the quantitative approach and longitudinal design, using a dataset of 335 observations from 2011 to 2023 to examine the impact of environmental performance on subsequent risk disclosure quality of listed firms in Ghana. The STATA software was used to analyze the data, employing the Standard Ordinary Least Square regression model. Findings The study found a significant and positive correlation between environmental performance and environmental risk disclosure quality, indicating that better performing firms are more inclined to provide high quality environmental risk information. The moderation analysis showed that firm age significantly and positively moderates the relationship between environmental performance and risk disclosure quality relationship. Profitability showed a positive but insignificant moderation effect, while firm size showed a negative and insignificant moderation effect with industry type showing a negative but significant moderation effect on the performance-disclosure quality relationship. Research limitations/implications Environmental risk disclosure is voluntary for environmentally non-sensitive firms. Regulators and policymakers aiming to improve environmental risk disclosure quality in Ghana may adopt standards that enhance quality. Firms, particularly larger ones or those operating in environmentally sensitive industries, can benefit by enhancing their environmental risk disclosure practices to boost stakeholder trust and secure necessary resources. Originality/value This paper highlights the moderating effect of firm specific attributes in translating the impact of environmental performance into improved environmental risk disclosure quality. This study focuses on quality rather than quantity of disclosures and extends the voluntary disclosure theory.
Purpose This study examines how green absorptive capacity (GAC) contributes to green innovation (GRIN) through environmental management accounting (EMA). It also investigates whether environmental, social, and governance management (ESGM) strengthens the relationships among GAC, EMA, and GRIN. Design/methodology/approach A quantitative research design was adopted using survey data collected from 222 Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) of Vietnamese manufacturing firms. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). Findings The findings show that GAC positively influences EMA but does not directly enhance GRIN. EMA significantly promotes GRIN and mediates the relationship between GAC and GRIN. In addition, ESGM strengthens the effects of GAC on EMA and EMA on GRIN. These findings extend absorptive capacity theory and stakeholder theory in the context of a developing economy. Originality/value This study integrates GAC, EMA, and ESGM into a unified framework to explain GRIN in Vietnamese manufacturing firms. It highlights the mediating role of EMA and the moderating role of ESGM, offering new insights into how firms transform green knowledge into innovation outcomes.
Purpose Financial inclusion has emerged as a central development priority in many emerging economies, particularly in Bangladesh, where policymakers view inclusive finance as a key instrument for poverty alleviation, social equity, and sustainable economic growth. In response, commercial banks increasingly communicate their financial inclusion initiatives through corporate disclosures, especially in annual reports. While prior research has extensively examined the economic outcomes, determinants, and performance implications of financial inclusion, relatively little attention has been paid to how banks communicate financial inclusion and the legitimacy claims embedded in these narratives. Drawing on Suchman’s (1995) typology, this paper aims to fill the gap by examining the moral legitimacy-seeking language in financial inclusion-related disclosures in the annual reports of banking companies in Bangladesh. Design/methodology/approach The study employs content analysis and interpretive textual analysis of financial inclusion-related disclosures in the annual reports of all banks listed on the Dhaka Stock Exchange (DSE). Findings The findings reveal that banks frame financial inclusion primarily as a socially desirable and ethically grounded activity, seeking procedural legitimacy through inclusive financial products and delivery mechanisms, consequential legitimacy by emphasizing positive social outcomes, structural legitimacy through the expansion of branches, agent banking, and digital infrastructure, and personal legitimacy via references to leadership commitment and values. Practical implications The findings offer implications for regulators and policymakers seeking to enhance the transparency and social accountability of financial institutions. Originality/value By explicitly linking financial inclusion disclosures to Suchman’s (1995) multiple dimensions of moral legitimacy, this study advances the financial inclusion literature beyond disclosure volume and highlights how banks in an emerging economy construct accountability narratives aligned with national development priorities and the Sustainable Development Goals.
Purpose This paper assesses how financially constrained companies (FCCs) are motivated to practice audit opinion shopping (AOS) at both the firm and partner levels and tests how economic dynamics, including exchange rate fluctuations (ERFs) and product market competition (PMC), moderate this relationship.Design/methodology/approach This study analyzes data from companies listed on the Tehran Stock Exchange (TSE) from 2015 to 2022 using the multivariate logistic and two-stage residual inclusion (2SRI) approaches. Lennox's (2000) metric is used to estimate AOS, and financial constraints (FCs) are captured using three alternative indices comprising Kaplan and Zingales (1997) (KZ), Hadlock and Pierce (2010) (HP) and Whited and Wu (2006) (WW).Findings The findings consistently show that FCs have a positive effect on both firm- and partner-level AOS. Precisely, startups and smaller FCCs (as proxied by HP) exhibit strong propensity for firm-level AOS, whereas FCCs characterized by low cash reserves and external FCs (as proxied by KZ) show a stronger propensity for partner-level AOS. Moderation analyses also reveal that ERFs intensify partner-level AOS by KZ-induced FCCs, and while PMC directly reduces both levels of AOS, it is irrelevant to constraint-driven AOS. Finally, ancillary findings strongly indicate that large local audit firms in Iran curb firm-level AOS but, paradoxically, increase partner-level AOS. The findings are confirmed through robustness checks using alternative estimation techniques and endogeneity correction.Originality/value This study provides a novel, dual-level analysis of how FCs influence AOS behavior. It incorporates the intensity of constraints using three common FCs' alternatives. By integrating ERFs and PMC, it provides a comprehensive perspective of how the contextual forces shape client-auditor interaction.
Purpose This study examines the selection of discretionary actuarial assumptions (discount rate, inflation, salary growth) for assessing projected benefit obligations under IAS 19 in Brazil, an emerging economy. Design/methodology/approach A sample of Brazilian companies sponsoring pension plans between 2010 and 2023 was analyzed. Panel data regression models were estimated to examine the relationship between the selected actuarial assumptions and key financial indicators of the sponsor firms. Findings Sponsor firms with pension plan deficits or high leverage tend to choose higher discount rates, reducing their obligations. In contrast, no similar pattern was observed for the inflation or salary growth assumptions. Considering the results, and following the IAS 19 revision, discount rate selection does not appear to be systematically associated with pension fund (PF) assessment results. However, the evidence from sponsors' valuations suggests the presence of differing dynamics, highlighting a discrepancy between sponsor firms and PF assessments. Practical implications Our findings highlight the need for policies that reduce disparities between sponsor and PF assessments. These inconsistencies threaten the faithful representation of pension obligations and may mislead stakeholders. Closer oversight and clearer guidelines are essential, since PF valuations directly affect sponsor contributions and financial reporting when plans are in deficit. Originality/value Most of the research on discretionary actuarial assumptions focuses on developed countries. This study seeks to bring to the fore Latin American evidence following the adoption of IAS 19. It highlights how Brazil's regulatory divergence (PFs and sponsors) offers unique insights into pension accounting practices.
Purpose This study investigates the effect of voluntary joint audits on earnings management in Kuwait, an emerging economy, using both accrual-based and real earnings management measures. Design/methodology/approach We analyze a sample of 102 non-financial firms listed on the Kuwait Stock Exchange from 2016 to 2024, covering the period of voluntary joint audit adoption. Discretionary accrual-based earnings management is measured using McNichols's (2002) modification of the Dechow and Dichev (2002) model, which assesses accrual quality through their relation to cash flows. Real earnings management is measured using Roychowdhury's (2006) model, capturing manipulation through sales acceleration, overproduction, and reduced discretionary expenses. The joint audit variable equals 1 when a firm is audited by two independent audit firms and 0 otherwise. Ordinary least squares (OLS) regression is used to examine the association between voluntary joint audits and the two earnings management measures. Findings Voluntary joint audits are positively and significantly associated with both discretionary accruals and real earnings management, suggesting that they may not mitigate earnings management and may instead be associated with higher levels of earnings management in this context. Robustness checks, including alternative standard error specifications, endogeneity analyses (e.g. entropy balancing, Heckman selection models, and temporal specifications), and additional sensitivity tests, indicate that the results are consistent across specifications. However, the relatively small number of firm-year observations (ranging from 261 to 315) may limit the generalizability of the findings. Research limitations/implications The relatively small number of firm-year observations may limit generalisability. The findings suggest that joint audit effectiveness is contingent on institutional context, with implications for regulators considering their adoption in similar emerging markets. Practical implications The findings have important implications for regulators and policymakers considering the implementation of voluntary joint audits. Our results suggest that joint audits do not curb earnings management. Therefore, policymakers should carefully weigh their potential drawbacks before adopting them. This study provides empirical evidence to support informed decision-making regarding audit regulation in emerging markets. Originality/value This study contributes to the limited literature on voluntary joint audits and earnings management in emerging markets. It extends prior research by examining both accrual-based and real earnings management over a 9-year period. The findings contribute to ongoing debates about the effectiveness of joint audits and challenge the assumption that they necessarily enhance financial reporting quality.
Purpose Drawing on communication theory, this study investigates the impact of audit report readability (ARR) on the audit report delay (ARD) of non-financial companies listed on the Palestine Exchange (PEX). The study also examines whether audit firm (AF) moderates the relationship between the readability of the audit report and the delay in the submission of the audit report. Design/methodology/approach This study is based on pooled data and contains 176 observations from non-financial companies listed on the PEX for the period 2016–2023. The hypotheses are tested using multivariate regression based on random effects. Findings The results show that the readability of the audit reports is positively and significantly correlated with the long delays in the submission of the audit reports. This delay in the audit report may be due to the need for greater detail and clarification as well as the longer treatment of complex concepts and sentences. The results also indicate that AF negatively moderates the link between the ARR and ARD, indicating that the appointment of the big four AFs weakens the link between ARR and ARD. Originality/value To the best of the author’s knowledge, this study is the first to address this issue in Palestine and other emerging markets. This study therefore fills a major gap in the emerging market literature and provides valuable insight into international audit practice by examining how ARR influences the timeliness of the audit report and how AF moderates this relationship.
PurposeCorporate boards play a vital role in preventing cyber threats through cybersecurity disclosure policies, strategies and practices. This study examines the influence of the demographic characteristics of corporate boards on cybersecurity disclosure in two-tier governance system companies that include board of directors and board of commissioners. Current research focuses on the banking industry, which is highly exposed to cyber threats.Design/methodology/approachThe research examined 46 banks listed on the Indonesia Stock Exchange from 2018 to 2022. Analysis using regression techniques was applied to determine the relationship between board characteristics and cybersecurity disclosure. Additional analysis has been conducted to enrich the findings.FindingsThe study finds that the average age of board directors and board of commissioners positively and significantly affects cybersecurity disclosure, while tenure of both boards has a negative and significant effect. Furthermore, banks with more board members who have educational backgrounds in information technology tend to have higher levels of cybersecurity disclosure. These findings recommend that regulators should encourage more boards with IT backgrounds to help mitigate cybersecurity risks.Research limitations/implicationsThe measurement of cybersecurity disclosure based on word count and subjective judgment. Future studies may develop more objective indicators for assessing cybersecurity disclosure. The study also focuses on a limited set of demographic characteristics of board members.Practical implicationsThe findings suggest that regulatory bodies should develop guidelines for cybersecurity disclosure to enhance transparency and accountability in the financial sector. Additionally, the study highlights the significance of considering the proportion of IT-educated board members to strengthen cybersecurity oversight.Originality/valueThis is one of the few papers investigate cybersecurity disclosure and its relationships with board demographic factors. The research is conducted in Indonesia, where two-boards system applied and cybersecurity disclosure is voluntary.
Purpose This study looks at the influence of economic uncertainty and corruption on accrual earnings management, taking into consideration the moderation of the board structure index. Design/methodology/approach This study used data from manufacturing companies listed on the Nigerian and Ghanaian stock exchanges for the period 2012-2022. Data extracted from the annual financial report, with some provided on the Wall Street Journal Database. The two countries have a total of 137 listed manufacturing companies. Companies with serious missing annual financial data were dropped, giving a total of 103 companies from both countries (Nigeria and Ghana), with a total observation for the study being 1,122. To assess the effect of corporate governance mechanisms on earnings management of various listed firms in Nigeria and Ghana, using the estimated residuals of accrual-based earnings management. Findings This study uses fixed effects and two-stage system GMM estimations to test hypotheses. The results of the analysis revealed that economic uncertainties and corruption increase and earnings management also increases. This is seen in most African economies; corruption is on the rise and is encountering a lot of political and economic uncertainties. We also discovered that board structure negatively moderates the economic uncertainty, corruption and earnings management relationship. Practical implications This study gives evidence that good corporate governance mechanisms (board structure) reduce earnings management practices by managers in a season of high economic uncertainty and corruption, enhancing operational efficiency, which will lead to the maximization of shareholders' wealth. Taking West Africa into consideration, it suggests intensified research in this area for corruption reduction at the country and firm levels. Originality/value This study provides interesting findings to policymakers in the full implementation of anti-corruption policy in addressing corruption in the country. It further informs investors of measures to put in place during high economic uncertainty, most especially pre- and post-election periods.
