Purpose This study aims to explore the relationship between the Risk Management Committee (RMC) and Climate Risk Disclosure (CRD). Specifically, it investigates how the presence of a RMC influences the disclosure of climate-related risks among companies listed on the Indonesia Stock Exchange (IDX) during the period from 2017 to 2021. Design/methodology/approach The final sample for this research includes 432 observations from the IDX, excluding those classified under SIC code 6. The study employs multiple linear regression analysis, along with robustness checks and additional analyses using STATA 16.0, to examine the relationship between the RMC and CRD. Findings The results indicate that the RMC has a significant positive impact on climate risk disclosure, especially in firms that issue stand-alone sustainability reports, small firms and environmentally sensitive industries. The relationship became more pronounced after the implementation of Indonesia’s sustainable finance mandate (POJK No. 51 / 2017). Furthermore, this relationship is stronger in firms led by RMC chairs with an economic or political background. Notably, RMC presence is particularly associated with greater disclosure in the Risk Management and Metrics & Targets pillars of the Task Force on Climate-related Financial Disclosures framework. Originality/value This research contributes to existing literature by providing empirical evidence regarding the role of RMC in enhancing climate risk disclosure. It offers valuable insights for companies looking to improve governance practices and support adaptation and mitigation strategies through relevant policies.
Purpose This study aims to examine how Fijian firms navigate the intersection of global environment, social and governance (ESG) mandates and local institutional constraints. It investigates technology adoption as a symbolic resource rather than a neutral enabler of transparency in small island developing states (SIDS). Design/methodology/approach Adopting an interpretive research paradigm and a managerial sensemaking lens, this research utilises a qualitative multi-case study design. Data was gathered through semi-structured, in-depth interviews with senior executives from firms listed on the South Pacific Stock Exchange (SPX) and a critical review of corporate disclosures. Findings The results reveal a front-stage and back-stage dichotomy where firms utilise digital infrastructures as a technological veil. In Fiji’s low-enforcement environment, imported coercive pressures from global bodies like the International Sustainability Standards Board (ISSB) drive a legitimacy-first pathway. This leads to digital decoupling, where impressive digital outputs mask manual and resource-constrained operational realities. Furthermore, the study distinguishes between deceptive greenwashing and pragmatic scaling, a sensemaking strategy used to bridge the gap between global expectations and local expertise gaps. Originality/value This research extends institutional theory to examine the digital-substantive gap in emerging economies. By introducing digital decoupling, it offers a framework for understanding how technology facilitates symbolic compliance in SIDS, providing insights for regulators at the Reserve Bank of Fiji (RBF) and SPX to move beyond digital facades towards substantive accountability.
Purpose This study aims to examine the association between independent directors with experience as audit partners and financial misstatements, and extend the discussion by investigating whether the source of their auditing experience (e.g. auditing public or private clients) differentially influences financial misstatements. Design/methodology/approach Using a sample of Taiwanese public firms from 2006 to 2022, the authors use conditional (fixed-effects) logistic regressions to test the hypotheses. To ensure the robustness of the findings and address potential endogeneity, the authors further use (Heckman’s 1979) two-stage approach, propensity score matching and two-stage instrumental variable regressions. Findings The authors find that firms with audit-partner independent directors are negatively associated with financial misstatements. The results also show that experience in auditing public clients is negatively associated with financial misstatements, whereas experience in auditing private clients is not. Originality/value These findings suggest that having experience in auditing financial statements that present accounting issues comparable to those raised by public companies’ financial statements can improve independent directors’ ability to monitor the financial reporting process.
Purpose This study aims to examine the effect of control transfer in state-owned enterprises (SOEs) on corporate sustainability performance (CSP) amid China’s mixed-ownership reform. Design/methodology/approach This study uses a large sample of Chinese listed companies from 2003 to 2020. Using China’s mixed-ownership reform as a quasi-natural experiment, the authors use a staggered difference-in-differences model to investigate how control transfers in SOEs affect both financial and non-financial CSP. Findings The findings show that control transfers enhance financial CSP while reducing non-financial CSP. Mechanism analysis suggests that financial sustainability improves due to lowered policy burdens, whereas increased environmental, social and governance incidents contribute to weaker non-financial sustainability. Heterogeneity tests indicate stronger effects in firms with full state capital withdrawal and highly competitive SOEs. Originality/value This study advances understanding of how ownership structures affect both financial and non-financial aspects of corporate sustainability. It offers insights into the benefits and costs of control transfers in SOEs and presents a new perspective on the roles of state versus private ownership in promoting corporate sustainability. The findings have policy implications for privatization reform in China and other countries, as well as for the United Nations Sustainable Development Goals.
Purpose Governments support pension participation to reduce old-age income insecurity and elder poverty. However, many emerging economies (like Viet Nam) fail to achieve pension reform benefits due to insufficient participation. To explore reasons for this low coverage, this study aims to examine the views of an important stakeholder: current and potential participants of Vietnamese defined-benefit pension plans.Design/methodology/approach The authors examine the attitudes of Vietnamese workers and retired people, to ascertain their willingness to participate in different pension schemes. Purposive interviews and a literature review informed the design of an online survey, followed by further interviews with people identifying as ethnic minorities.Findings Perceptions on affordability, awareness of pension schemes and trust in pension management are important factors determining participants' willingness to participate in a pension plan. Although informal-sector workers are the target of reforms to the Vietnamese social insurance pension system, their pension participation is hampered by concerns about affordability and low levels of trust in pension management. Moreover, low general trust in government reduces citizen's confidence in making decisions from governments' accounting information.Practical implications Policymakers and pension policy consultants should focus on improving trust if local people's participation in a pension system in emerging economies such as Viet Nam is to increase.Originality/value The authors provide empirical evidence of local people's perspectives, including their levels of trust, on a public pension system reform in an emerging economy, based on the benchmarks of accountability, enforcement, choice and transparency. This research provides evidence that pension reforms to expand coverage will falter when they inadequately incorporate citizen concerns - especially informal workers who have low trust and find a contributory pension scheme to be unaffordable.
PurposeChina imposed environmental, social and governance regulations on banks since 2012, but their impact on environmental disclosures is unclear. This study aims to examine the evolution of environmental disclosures in Chinese commercial banks from 2012 to 2021.Design/methodology/approachThis study develops a framework for direct and indirect environmental impacts of banking. It examines environmental disclosures from six Chinese banks in the Sino-British "Climate and Environmental Information Disclosure Pilot Program". Using content analysis, 49 CSR, sustainability and ESG reports over ten years are examined.FindingsThe study shows that Chinese banks' environmental disclosures are rising, particularly in environmental impacts and governance, despite varied focuses. State-owned commercial banks under coercive pressures and Equator Principles members under normative pressures both enhance disclosures to compete.Originality/valueBanks are understudied in social and environmental accounting. Unlike polluting industries, their environmental and social responsibilities are unique, involving direct and indirect aspects. Their lending and investments have sensitive spillover effects. In China, commercial banks adopt environmental initiatives that demonstrate the interplay of legitimacy, institutional theory and stakeholder salience.
Purpose This paper aims to explore how corporate governance drives earnings performance (earnings per share) in developing economies, with internal control and national governance as key influencers. It examines five core dimensions: agency costs, transparency, resource efficiency, risk mitigation and compliance. Design/methodology/approach It uses panel regression as the baseline estimator, supported by textual analysis and an adopted index, to examine governance–earnings performance links in Fijian listed firms. Robustness is evaluated through two-stage least square, alternative proxies, industry effect, power analysis and lagged models using South Pacific Stock Exchange firms from 2017 to 2023. Findings Effective governance boosts earnings performance strengthened by internal control and supportive national regulation. Five key dimensions strongly influence earnings performance, with internal control enhancing their impact. Practical implications The study urges policymakers to advance culturally aligned governance and stronger internal control in Fiji’s emerging market setting. For corporate entities and investors in shaping their understanding of corporate governance and controls mechanism in the Fiji institutional context. Social implications Strengthening governance in Fiji boosts public trust, reduces corruption and supports financial inclusion, while fostering human capital and aligning with key sustainable development goals (SDGs). Originality/value This study explores corporate governance, internal control and regulatory quality in developing economies, using Fiji and five key governance dimensions as a case.
PurposeWhile prior research has primarily attributed changes in accounting estimates (CAE) to either opportunistic behavior or business risk, this study proposes accounting conservatism as a third explanatory factor. This paper aims to provide empirical evidence that conservative accounting practices are positively associated with income-increasing CAE.Design/methodology/approachUsing a sample of 3,707 CAE disclosures in the USA from 2006 to 2018, the authors use multiple statistical approaches, including chi-square tests, logistic regressions and category-specific analyses, to examine the relationship between accounting conservatism and CAE patterns. The present methodology controls for firm characteristics, business risk, asset structure and audit quality.FindingsIncome-increasing CAE significantly outnumbers income-decreasing CAE (59% versus 41%), supporting the proposed hypothesis about systematic bias created by conservative accounting practices. Firm-level accounting conservatism is positively associated with the likelihood of income-increasing CAE. Interestingly, this relationship varies across estimate categories, being primarily driven by revenue-related and compensation-related estimates.Originality/valueThis paper contributes to the literature by demonstrating how accounting conservatism systematically shapes the directional pattern of CAE disclosures, complementing existing explanations based on opportunistic behavior and business risk. By exploring the temporal dimension of conservatism, the authors enhance understanding of conservatism's long-term effects on financial reporting and provide practical insights for predicting which firms are more likely to disclose significant estimate changes.
PurposeThis study aims to examine how coordinated state-led institutional reforms, Saudi Arabia's Vision 2030 and the Corporate Governance Regulations (CGR) 2017, have influenced corporate social responsibility disclosure (CSRD) by listed companies, distinguishing between direct reform effects and indirect effects operating through firm-level governance characteristics.Design/methodology/approachUsing structural equation modeling and panel data from 440 observations of Saudi-listed companies (2014-2019), the study analyzes the early phase of reform implementation. Drawing on the institutional theory, it evaluates how macro-level institutional change shapes CSRD directly and indirectly through selected governance characteristics.FindingsThe results indicate a strong and statistically significant direct increase in CSRD following the introduction of Vision 2030 and CGR 2017, even after controlling for firm characteristics. Indirect effects are selective: governance characteristics explicitly targeted or strongly encouraged by the reform agenda, particularly female employment, are associated with higher CSRD, while more deeply embedded board characteristics exhibit limited or insignificant change during the sample period.Research limitations/implicationsThis study contributes to the broader CSR literature by demonstrating how established Western-origin theories, particularly institutional theory, can be applied to non-Western settings through careful contextual interpretation rather than theoretical replacement.Practical implicationsThe findings offer insights for policymakers on how strategic reform agendas and regulatory coordination can promote CSRD while also highlighting the limits of short-term governance change in contexts characterized by persistent informal institutions.Social implicationsThis study highlights the role of employment-based reforms in supporting CSR objectives during periods of institutional transition.Originality/valueThis study provides one of the first large-sample empirical examinations of how coordinated, state-led institutional reforms influence CSRD through both direct and indirect channels. By distinguishing between immediate disclosure responses and slower-moving governance adjustments, the study contributes to the CSR and institutional literature by clarifying how reform intensity, sequencing and institutional persistence shape corporate behavior in emerging economies. Beyond Saudi Arabia, the findings contribute to the CSR literature by demonstrating how coordinated state-led reform agendas influence disclosure through signaling and legitimacy mechanisms rather than immediate structural change.
PurposeThis paper aims to examine, through an institutional work lens, the moderating role of senior management support (SMS) in the relationship between internal audit functions (IAF) and organisational integrity management (OIM) in private sector organisations in Fiji.Design/methodology/approachThis study used a quantitative research approach applying a cross-sectional research design. Primary data were collected from 153 participants in the form of a questionnaire survey.FindingsThe empirical analysis revealed a positive and significant relationship between internal audit work performed and OIM, with similar results observed for the coordination between internal and external auditors. In contrast, internal control activities assessed by the IAF showed a positive but insignificant relationship with OIM. However, the moderation effect of SMS provided a positive and significant relationship for all the observed variables of IAF, including internal control activities with OIM, signalling that SMS is vital for the IAF in enhancing existing institutions and bringing new institutional practices and processes to improve organisational integrity.Research limitations/implicationsThis study highlights the potential of the IAF as an agentic actor promoting a culture of integrity within the organisations. The importance of SMS to the IAF in this process was also highlighted.Originality/valueTo the best of the authors' knowledge, this study is the first to apply the institutional work paradigm of the neo-institutional theory to examine the agentic nature of the IAF and used SMS as a moderating variable to evaluate the relationship between IAF and OIM. It also provides evidence from a developing economy context, which addresses the underrepresentation of research undertaken in the internal audit domain.
PurposeThe purpose of this study is to map the United Nations Sustainable Development Goals (UN SDGs) to accounting curriculum at a university situated in the South Pacific, a region experiencing unique sustainability-related challenges.Design/methodology/approachThe research uses an instrumental case study design, with data gathered from within the accounting discipline at a South Pacific university. Subject outlines and qualitative data from participant interviews are analyzed using a SDG mapping tool.FindingsAlthough educators perceive they are integrating the SDGs into their teaching practices, the evidence reveals minimal explicit incorporation within curriculum design or assessment strategies.Practical implicationsThe application of the conceptual mapping framework in accounting education contributes both theoretically and practically to the field, offering a means to assess and enhance the integration of SDGs in ways that are responsive to the specific needs of the South Pacific region. Findings also provide educators and institutions with a tool to identify opportunities for deeper curriculum alignment with sustainability principles and professional relevance.Originality/valueThis study is the first to explore the integration of SDGs within South Pacific accounting higher education.
PurposeThis study aims to examine the influence of celebrity CEOs on the ESG (environmental, social and governance) performance of Chinese A-share listed companies from 2009 to 2021. It also aims to understand how the public image of CEOs, amplified by media attention, affects organizational ESG outcomes and to explore whether these effects vary across ownership structures and gender.Design/methodology/approachThe analysis leverages a comprehensive data set of A-share listed companies and uses rigorous econometric methods to investigate the relationship between celebrity CEOs and ESG performance. The results are consistent and robust, as validated by a series of robustness tests, including one-period lag, propensity score matching and a shortened sample period. In addition, the study explores the moderating role of media attention and conducts subgroup analyses to examine variations across ownership types and CEO gender, further reinforcing the reliability of the results.FindingsThe results show that celebrity CEOs positively influence ESG performance, with media attention amplifying this relationship. Further analyses reveal that the impact of celebrity CEOs is more pronounced in nonstate-owned enterprises (NSOEs) and among female celebrity CEOs. These findings are robust across alternative testing methods, confirming the consistency of the observed relationships.Originality/valueThis study provides empirical evidence on the role of celebrity CEOs in driving ESG performance and highlights media attention as a critical amplifier. By uncovering the unique advantages of female celebrity CEOs and the distinctive effects in NSOEs, the research reinforces the literature on leadership and corporate sustainability. It offers practical implications for corporate governance and emphasizes the importance of leveraging CEO influence to enhance ESG outcomes in the Chinese context.
PurposeThis study aims to examine the role of organizational capabilities embedded in the strategy-focused organization (SFO) in improving the integration of performance-based budgeting (PBB) within the Indonesian central government.Design/methodology/approachThis research employs a mixed-method approach with primary data from surveys of 81 ministries/agencies and semi-structured interviews. Hypothesis is tested using partial least square structural equation modeling, supplemented by thematic analysis of qualitative data.FindingsThe results show that the implementation of SFO is positively related to PBB integration, especially through strategy translation, alignment and continuity. In practice, these mechanisms are often influenced by compliance to regulations and are reflected in the systematic alignment of budget allocations with performance metrics and government strategic plans. However, leadership practices and strategic awareness do not consistently support the substantial use of performance information in budget decisions.Practical implicationsThe findings suggest that regulatory compliance alone is not sufficient to support effective PBB integration. Instead, government need to develop comprehensive strategic management systems, in which regulations is an integral component, accompanied by continuous investments in leadership capabilities, organizational learning and performance management routines. Such investments are essential to ensure that performance information becomes substantively relevant in budgeting processes.Originality/valueThis study provides new empirical evidence on how the development of SFO as a comprehensive strategic management system enhances PBB integration in the context of developing countries, going beyond its largely compliance-oriented implementation.
PurposeThis study aims to examine the impact of the environmental, social and governance (ESG) guide revision on the quality of ESG disclosure among listed companies in Hong Kong.Design/methodology/approachThis study uses a sample of 1,529 companies listed on the Stock Exchange of Hong Kong (SEHK) and uses an ESG disclosure quality scoring system to manually evaluate ESG disclosures for 2019 and 2020. Paired t-test, difference-in-difference (DID) regression using propensity scoring weighting samples, ordinary least squares regression and logistic regression are adopted in quantitative analyses.FindingsThe results of this study suggest that the overall ESG disclosure quality has improved slightly after the ESG Guide revision. The improvement in the ESG disclosure quality is more prominent for lagging-disclosure firms than leading-disclosure firms under the ESG Guide revision. ESG disclosure quality is positively related to audit quality.Practical implicationsThis study provides insights into sustainability reporting practice in Asia and reveals that the effectiveness of ESG reporting regulations varies due to reporting regimes.Social implicationsThe empirical evidence indicates that enhancing ESG disclosure quality can help to improve the transparency and comparability of non-financial information available to capital-market stakeholders.Originality/valueThe paper contributes to the extant ESG literature on the hybrid form (i.e. mandatory and comply-or-explain reporting provisions) of ESG reporting regulations and examines the real effects on ESG reporting revision guidelines after implementation.
Purpose COVID-19 had a worldwide impact, setting an uncertain economic and financial scenario. Small and medium enterprises (SMEs) were disproportionately affected in comparison to larger companies, owing to having fewer resources available. Given the relevance of SMEs to the world economy and their vulnerability during the pandemic period, it is important that business recovery frameworks concentrate on supporting them. The purpose of this paper is for the authors to draw on their analysis to present accounting and strategic considerations required for SMEs to prepare for potential future crisis periods. Design/methodology/approach This commentary reflects on accounting implications and recovery strategies for SMEs around COVID-19. It offers a comparative analysis of previous crises affecting SMEs, academic perspectives on the business strategy response to the pandemic and practical suggestions on how SMEs can overcome the challenge stage. Findings This study highlights that accounting's role extends beyond the traditional retrospective reporting to prospective accounting readiness that assists SMEs' recovery and competitiveness. In addition, more accounting research tailored to SMEs is needed to better understand their real-world difficulties during disruptions. Practical implications These insights guide practitioners and regulators interested in addressing accounting issues related to the financial recovery of businesses, in particular SMEs. It also positions accountants as ongoing advisors, complementing compliance with readiness design, thus improving SMEs' strategic response in times of crisis. Originality/value This study frames business resilience as an accounting-enabled capability, as accounting provides decision-ready information and control systems that underpin timely response and recovery. This study then proposes accounting readiness, a forward-looking approach that links information to action to better prepare SMEs for future black swan events.
PurposeThis paper aims to examine the relationship between human rights practices and firm market and financial performance and the moderating role of Environmental, Social and Governance (ESG) practices. Design/methodology/approachThe authors use ordinary least squares regression as a baseline methodology on US-listed firms from 2002 to 2023 and generalized method of moments estimation to account for endogeneity concerns. FindingsThe results indicate that firms’ human rights practices are significantly associated with market performance and return on assets. Additionally, ESG practices significantly moderate the relationship between human rights practices and firm performance. Human rights performance has a greater impact on market performance when moderated by ESG practices. Research limitations/implicationsThis study contributes to the academic discourse by exploring the complex relationship between human rights and ESG performance. Identifying human rights practices as a social cost has intrinsic value for firms, driving toward desirable levels of human rights practices within corporate governance systems, consistent with stakeholder and social exchange theories. Originality/valueThis study provides novel insights into the interactive effects of human rights and ESG factors on firms’ market and financial performance, offering a deeper understanding of how these elements collectively shape corporate outcomes.
PurposeResearch has extensively studied the physical and psychological attributes of chief executive officers (CEOs) in relation to green innovation; however, the effect of their social capital largely remains unexplored. This study aims to investigate whether CEOs’ social capital contributes to the firm’s green innovation and identifies channels that impact this association. Design/methodology/approachThe study employs a panel data regression model with firm-level clustered standard errors and analyzes 6,944 CEOs in 3,626 Chinese firms from 2009 to 2022. The study also estimates alternative specification approaches and uses various endogeneity tests, such as lag of explanatory variables, propensity score matching, difference-in-differences and two-stage least squares, to ensure that the findings are reliable. FindingsThe findings broadly support the prediction that CEOs possessing greater social capital carry out more green innovation than those having lower social capital. Furthermore, access to resources, reputational concerns and trustworthiness are important attributes that encourage CEOs with greater social capital to undertake more green innovation. The findings exhibit that state ownership and industry competition magnify the effect of CEO social capital on green innovation, whereas financial constraints exert no meaningful influence. Practical implicationsThe study recommends that executives with greater social capital be elevated to the firm’s upper echelon, as it positively influences sustainability and has environmental implications. Investors and policymakers can leverage CEO social capital to protect their interests and promote sustainability. Social implicationsThe study suggests that CEO social capital is a key mechanism for aligning the interests of executives, businesses and society. By capitalizing on CEOs’ social capital, the long-term economic and sustainability goals can be achieved, fostering broader social well-being. Originality/valueTo the best of the /authors’ knowledge, this is the first study to empirically show that CEO social capital contributes to firm green innovation. Moreover, the study advances the literature by demonstrating that resource access, reputation and trustworthiness serve as mechanisms in the relationship between CEO social capital and green innovation.
PurposeThis study aims to examine the relationship between managerial ownership and corporate carbon performance using a sample of A-share listed industrial firms from 2007 to 2022. It explores the internal mechanisms through which managerial ownership influences carbon performance and identifies contextual factors that shape this relationship. The research contributes to the literature on corporate governance and sustainable development by offering empirical evidence on how ownership structure affects environmental outcomes.Design/methodology/approachAn empirical approach was adopted using a panel dataset of Chinese industrial firms. The study investigates the relationship between managerial ownership and carbon performance through econometric models and a series of robustness checks, including alternative variable specifications and an instrumental variable approach. Mechanism analyses examine Type I and Type II agency costs as mediators, while subgroup analyses assess the moderating effects of analyst attention and state ownership.FindingsThe results indicate an inverted U-shaped relationship between managerial ownership and corporate carbon performance, suggesting that moderate levels of ownership are associated with better performance, while very low or high levels are less effective. Mechanism analyses confirm that Type I and Type II agency costs mediate this relationship. The inverted U-shaped effect is more pronounced in firms with low analyst attention and in state-owned enterprises, highlighting the influence of external monitoring and ownership structure.Originality/valueThis study provides empirical evidence on the impact of managerial ownership on corporate carbon performance, highlighting both its underlying mechanisms and contextual factors. It contributes to the literature by linking corporate governance with environmental outcomes and offers practical insights for policymakers and business leaders. The findings emphasize the need to optimize governance structures to align managerial incentives with sustainability goals.
PurposeThe introduction of modern slavery regulation in New Zealand was initiated in 2021 but was subsequently paused in 2024, whereas Australia, a close trading partner, has implemented such regulation. Because New Zealand institutional investors operate across borders, they are influenced by Australian modern slavery disclosures. Within this context, this study aims to examine how New Zealand institutional investors perceive the usefulness of modern slavery disclosures (MSDs) in the absence of domestic regulation, but in the presence of cross-border regulatory pressures.Design/methodology/approachIn this study, the authors applied a sequential mixed-method approach. Data was gathered through an online survey and semi-structured interviews with institutional investors registered in New Zealand to validate and further investigate the results.FindingsThe study found that institutional investors perceive MSDs as useful for informing investment decisions. The most valued information includes disclosures on actions taken to prevent modern slavery, followed by descriptions of the structure, operations and supply chains of investee companies. Reputation emerged as the primary motivation for valuing MSDs, alongside the signalling of management quality and alignment with investors' environmental, social and governance policies. However, while MSDs are perceived as useful, their actual use in investment decisions remains limited, largely due to challenges stemming from both investors themselves and the quality of investee disclosures. These findings suggest that, for institutional investors, MSDs signal a commitment to responsible conduct, although challenges hinder their practical use.Originality/valueTo the best of the author's/authors' knowledge, this study is the first to examine the decision usefulness of modern slavery disclosures from the institutional investors' perspective.
