Purpose The purpose of this study is to investigate the factors influencing the intention of Moroccan companies to adopt International Sustainability Standards Board (ISSB) standards, focusing on the roles of coercive, mimetic and normative pressures within the framework of institutional theory. Rather than treating institutional pressures as additive, this study examines how legitimacy-seeking mechanisms substitute for regulatory coercion under conditions of weak enforcement. This study also examines the mediating role of prior International Financial Reporting Standards (IFRS) adoption as an institutional filter through which these pressures are transmitted and amplified.Design/methodology/approach Data from 335 Moroccan accounting professionals were analyzed using a hybrid dual-step approach: Structural Equation Modeling to test theoretically specified causal relationships and Machine Learning - using Artificial Neural Networks - to capture non-linear effects and assess the relative predictive importance of institutional drivers, thereby enhancing methodological rigor and explanatory depth.Findings This study finds that mimetic and normative isomorphism significantly influence the intention to adopt ISSB standards, while coercive pressures are not statistically salient, reflecting conditions of weak enforcement and institutional voids. IFRS adoption acts as a strong and systematic mediator, with mimetic pressures exerting their influence on ISSB adoption primarily through prior IFRS alignment rather than direct imitation alone. Organizations with established IFRS practices are, therefore, institutionally and cognitively better positioned, as prior IFRS adoption embeds reporting logics and infrastructures that facilitate ISSB transition.Research limitations/implications This study's reliance on data from Moroccan companies may limit statistical generalizability. However, the findings offer theoretically grounded insights into sustainability reporting diffusion in emerging economies characterized by limited regulatory enforcement. Future research should consider multi-country studies to test the robustness of the identified institutional mechanisms.Practical implications Recognizing the link between IFRS adoption and ISSB readiness, managers should treat IFRS adoption not as a compliance exercise, but as a strategic institutional foundation for future sustainability reporting. Additionally, policymakers are encouraged to leverage existing IFRS infrastructures and professional networks, rather than relying solely on coercive mandates, to facilitate ISSB diffusion and alignment.Originality/value This study advances institutional theory by demonstrating how mimetic and normative pressures substitute for regulatory coercion in shaping sustainability reporting adoption under weak enforcement conditions. This study further contributes by conceptualizing IFRS adoption as a mediating institutional mechanism linking financial and sustainability reporting regimes and by using a Structural Equation Modeling-Artificial Neural Network hybrid approach that combines causal explanation with predictive validation.
Purpose Over the past few years, the European Union has progressively shifted towards mandatory reporting of non-financial information to enhance transparency and accountability. In this vein, this study aims to explore the extent to which corporate social responsibility (CSR) strategy influences the CSR sustainability reporting, along with the moderating role of the equity risk premium (ERP).Design/methodology/approach Using a sample of 3,910 firm-year observations from European listed companies on the STOXX 600 index, the authors carried out a longitudinal analysis spanning from 2014 to 2023.Findings Drawing on an integrated threefold theoretical framework - comprising legitimacy theory (LT), stakeholder theory (ST) and institutional theory (IT) - the empirical evidence reveals that companies with well-grounded CSR strategies score tend to exhibit higher levels of CSR sustainability reporting. This relationship is particularly heightened in high-risk market environments, where fulfilling the requirements for greater non-financial information reinforces stakeholder trust and organisational legitimacy.Practical implications The findings underscore the need for managers, investors and policymakers to acknowledge the relevance of CSR reporting. Companies should implement comprehensive CSR strategies to address market pressures, thereby attracting investors and building long-term legitimacy. Investors can capitalise on more extensive CSR sustainability reporting to improve their decision-making processes and better appraise sustainability performance. At last, policymakers can design innovative interventions that not only promote regulatory compliance, but also inspire companies to embrace sustainability as a core pillar of their business strategy. This proactive approach can pave the way for long-term corporate legitimacy and accountability, ultimately benefiting society at large.Originality/value The present research offers new insights into how market conditions prompt companies to improve transparency. Rather than perceiving CSR sustainability reporting solely as a compliance obligation, its strategic function is emphasised as a means to tackle the pressures exerted by financial markets.
Purpose This study aims to understand the relationship between ultimate owners and the extent of water disclosure in Indonesian companies. The pressure from ultimate owners is proxied by control rights, cash flow rights and the divergence in both rights, directors and commissionaires affiliated with the owners. Design/methodology/approach Using a sample of 4,415 firm-year observations from Indonesian companies listed on the Indonesia Stock Exchange spanning the period from 2012 to 2021, the developed hypotheses are tested employing robust standard errors. Findings The findings show that control rights and cash flow rights significantly influence the level of water disclosure. Companies tend to disclose more water information when ultimate owners have higher control and cash flow rights. However, the divergence between both rights is understood as having no significant influence. In addition, this study reveals that companies make higher levels of water disclosure if they have no board members (director or commissionaire) affiliated with ultimate owners. Practical implications This study provides valuable insights for investors and policymakers regarding the role of ultimate owners in corporate disclosure. The findings suggest that the owners tend to align their interests with minority shareholders because they want to maximize their incentives from companies. Through their higher control rights, the ultimate owners present significant pressure to managers to perform water stewardship activities and create a higher level of corporate water disclosure. Originality/value This study contributes to the literature by providing empirical evidence on ultimate ownership and water disclosure, as no previous study has investigated this relationship. This study is important because stakeholders press companies to be responsible for the water, so water disclosure is necessary to maintain social license. Hence, ultimate owners actively press the managers to share water information to mitigate corporate risks.
Purpose This study aims to investigate whether key audit matters (KAM) in audit reports in South Africa are linguistically homogeneous. If homogenous, then the reports are of limited information value and probably boilerplate. Design/methodology/approach Linguistic tone and correspondence analysis (CA) were used to evaluate KAM’s information value and provide a visual representation of the differences, between the practices of audit firms, within industries and at client companies over time. Information value was determined by interpreting linguistic (tone) differences using Shannon (1948)’s Information theory as a theoretical lens. Findings Overall, the KAM of most client companies, and industries analysed, were found to have information value and are not boilerplate, suggesting that industry-level boilerplating does not occur as argued in prior research. However, most audit firms tend to have a distinctive KAM tone profile or signature, indicating that boilerplate KAM templates are used within audit firms. Lastly, analysis of specific client companies over time indicates that some companies use boilerplate KAM from one year to the next, diminishing the information value of the KAM section of the audit report. Originality/value This study’s contribution primarily lies in the approach used to evaluate KAM information value, through tone and CA, which is not based on a similarity score like prior studies. Our approach allows us to consider relative associations between firm-year observations and tone categories as an indicator of homogeneity at audit firm level, within industries and for specific client companies over time. The study focuses on South African data, which contributes to the literature on audit reporting practices in developing economies.
Purpose This study aims to examine how biodiversity disclosure by Australian listed companies in high-risk (“red zone”) sectors evolved from 2008 to 2024 and whether major national and international policy announcements shifted practice from symbolic statements to specific, performance-based reporting. Design/methodology/approach The authors analyse 3,975 sustainability and annual reports from 864 firms using text-based content analysis implemented in Python and segmented fixed-effects panel regressions estimated in Stata to track changes in three dimensions of disclosure quality: extent, specificity and tone. Findings The authors find that key policy announcements did not lead to immediate or sustained improvements in biodiversity reporting. While there were periods of increased disclosure, these gains were inconsistent and often short-lived. Most disclosures remained general, lacking specific targets or measurable outcomes, and were framed in neutral or positive terms. By contrast, references to voluntary frameworks, the sustainable development goals and the global reporting initiative were consistently associated with longer and more specific biodiversity content, highlighting the value and relevance of these frameworks as a signal of commitment and transparency. Firm characteristics also mattered, and larger companies tended to disclose more extensively, but their reports also leaned heavily towards positive messaging, with limited critical or data-driven content. Overall, the results suggest that policy initiatives alone are insufficient to drive sustained change and that company characteristics and voluntary reporting frameworks are influential in shaping disclosure practices. Originality/value This study contributes to the literature by offering a comprehensive, longitudinal assessment of biodiversity disclosure trends across high-risk sectors in Australia, highlighting the limited long-term effectiveness of policy signals in improving disclosure quality.
Purpose This study aims to examine whether female representation on boards and key monitoring committees, together with women directors' risk management expertise, is associated with cyber risk management in FinTech and InsurTech firms. It also investigates whether shareholder support for women directors and Big Three ownership are associated with the intensity of cyber risk management.Design/methodology/approach This study uses a panel of 87 firms drawn from the Nasdaq FinTech Index and the Nasdaq Insurance Index (IXIS) over the period 2011-2022. The analysis is conducted using an ordered logit model for panel data.Findings The results show that greater female board representation is associated with higher cyber risk management intensity. This association is stronger when women directors reach a critical mass, serve on key monitoring committees and possess risk management expertise. In addition, the findings document a positive relationship between the intensity of cyber risk management and shareholder support for women directors as well as the ownership stakes of the Big Three asset managers.Originality/value This study makes several original contributions to the literature. First, it focuses on firms' cyber risk management intensity rather than on realized cyber incidents. Second, it adopts a disclosure-based approach to assess cybersecurity governance. This measure captures board oversight and risk management practices not observable in incident-based studies. Third, it focuses on FinTech and InsurTech firms, where cyber risk is economically material but board-level governance remains underexplored. Finally, it jointly examines several governance mechanisms, including female representation on monitoring committees, women directors' risk management expertise, shareholder voting support for women directors and Big Three ownership.
Purpose This study is motivated by the increasing importance of diversity and inclusion policies in corporate governance, coupled with growing societal expectations for firms to demonstrate social responsibility through measurable practices. This study aims to examine the association between lesbian, gay, bisexual, transgender and queer (LGBTQ)-friendly corporate policies and financial market outcomes, particularly stock liquidity, addressing a gap in the empirical evidence on inclusivity and market microstructure outcomes. Design/methodology/approach Building on stakeholder theory and the corporate governance literature, the authors use a sample of US-listed firms from 2003 to 2019. The study uses multiple econometric techniques to ensure robustness, including instrumental variable regression and propensity score matching to control for potential selection bias. Moderating analyses are also conducted to explore the differential impact of firm information environments and governance settings on the core relationship. Findings The results show a positive association between LGBTQ equality policies and stock liquidity. This relationship is more pronounced in firms with weaker governance and less transparent information environments. These findings suggest that the association between LGBTQ equality policies and liquidity varies across firms, rather than being uniform across all settings. Research limitations/implications Although the results are in line with interpretations related to information and transparency, the authors do not test these channels directly. The findings should, therefore, be viewed as evidence of an association rather than a causal relationship. Future research could examine more direct measures, such as analyst forecasts, disclosure quality or media coverage. In addition, this study focuses on stock liquidity; further work could consider other outcomes, including volatility, cost of debt or longer-term firm performance. Practical implications For corporate managers, the results suggest that LGBTQ-inclusive policies may be related to how the firm is viewed in capital markets, particularly in settings where governance or information conditions are weaker. For investors, the findings indicate that diversity and inclusion practices may offer additional context when assessing a firm’s stock liquidity. For policymakers, the documented relationship may be relevant in ongoing discussions on corporate social responsibility and disclosure practices. Originality/value This study provides evidence on the relationship between corporate LGBTQ equality policies and stock liquidity. By focusing on LGBTQ-specific workplace policies rather than aggregate environmental, social and governance measures, it highlights a distinct aspect of firm behavior. The results also show that this relationship varies across firms, with stronger patterns observed in weaker governance and information environments.
Purpose - This study aims to investigate whether and how assurance quality mitigates sustainability decoupling, understood as the misalignment between corporate environmental, social and governance (ESG) performance and disclosure. Drawing on legitimacy theory, it explores whether high-quality assurance functions as a substantive mechanism that enhances transparency and credibility in sustainability reporting or a symbolic tool aimed at managing stakeholders' perceptions. Design/methodology/approach - The analysis relies on a panel of 717 European companies (6,925 firm-year observations) from 2014 to 2023. A panel Tobit model with random effects was estimated, complemented by robustness checks using linear regression with fixed-effects, random-effects and generalized method of moment estimators. Findings - The results reveal that higher assurance quality - characterized by broader scope, comprehensive content, higher assurance level, multi-method approach and use of recognized standards - significantly reduces ESG decoupling, supporting the substantive legitimacy perspective. Originality/value - This study enriches the literature on sustainability decoupling by examining assurance quality as an external accountability mechanism and extends the application of legitimacy theory to sustainability assurance practices.
Purpose This study aims to examine Corporate Sustainability Reporting Directive (CSRD) assurance practices in the first year of implementation, analyzing how “structured fragmentation” and market innovation emerge within formally harmonized regulatory frameworks. Design/methodology/approach This study uses purposive content analysis of 100 sustainability assurance reports across 29 European countries for the 2024 financial year, using detailed manual coding to reveal patterns beneath surface-level compliance. Findings The analysis reveals two distinct phenomena. First, structured fragmentation: 87% of companies obtain only limited assurance using globally standardized language, yet these opinions rest on fundamentally different national legal frameworks, demonstrating legitimate decoupling through sanctioned national pathways. Second, market-driven quality differentiation: 11% of firms voluntarily obtain reasonable assurance on selected high-materiality metrics (greenhouse gas emissions, EU Taxonomy), creating strategic differentiation within regulatory uniformity. Research limitations/implications Analysis captures the inaugural CSRD year during the transitional period. Longitudinal research will assess whether practices converge following EU assurance standard adoption by October 2026. Practical implications Identical clean opinions may reflect different assurance approaches across jurisdictions. Mixed assurance demonstrates market opportunities for competitive differentiation within uniform mandates. Originality/value This study makes two theoretical contributions: introduces the structured fragmentation concept, showing how hybrid regulatory designs create legitimate decoupling during institutional transitions, and documents market innovation within mandatory regimes through voluntary assurance enhancement.
Purpose This paper develops an integrated framework for climate risk management, positioning accounting and reporting systems not merely as accountability mechanisms but as key drivers of change in internal risk management processes. This study aims to clarify how firms translate climate-related regulatory requirements and carbon neutrality commitments into substantive governance, risk management and reporting practices.Design/methodology/approach The study adopts a conceptual and integrative approach, drawing on enterprise risk management (ERM) principles (particularly ISO 31000), accounting and reporting frameworks (e.g. European Sustainability Reporting Standards, TCFD) and prior literature on climate disclosure, governance and management. It synthesises regulatory developments within the EU sustainable finance framework and connects them with ISO 31000 to develop an analytical framework for managing and reporting climate risk.Findings The analysis identifies five interrelated challenges that constrain the effectiveness of climate risk management. Risk governance remains underdeveloped, requiring stronger board oversight and organisational capacity. Risk assessment is limited by data constraints, scenario ambiguity and difficulties in capturing the systemic and long-term nature of climate risks. Risk treatment is characterised by increasing complexity in designing adaptation strategies and addressing emerging financial risk exposures, including insurance gaps and risk-financing requirements. Reporting practices continue to face credibility concerns, while the absence of standardised metrics and integrated assurance processes undermines the reliability and comparability of disclosed information.Originality/value By linking accounting and reporting systems to ERM, the study provides a structured framework for understanding how regulatory pressures translate into organisational change and support the integrated management of contemporary risk challenges.
PurposeThis study aims to analyse the relationship between geopolitical risk (GPR) and accounting-based firm performance (FP), with a focus on moderating role of Environmental, Social and Governance (ESG) aspect.Design/methodology/approachUsing data from 2,280 firm-year observations of 228 energy sector firms listed among S&P top 250 between 2013 and 2022, this study uses ordinary least square regression to analyse the influence of GPR on FP. The study further used system generalized method of moment to address the endogeneity to check the robustness of the result.FindingsFindings of this study show that GPR has a significant negative impact on FP of energy firms, confirming the moderating role of ESG in this relationship. This study contributes to current research by giving a view of how ESG affect GPR-FP relationship. It also provides useful insights for managers, policymakers and stakeholders, stressing the importance of taking ESG into account when developing sustainability initiatives in the energy sector.Originality/valueTo the best of the authors' knowledge, this study is first in the literature to explicitly account for the role of relatedness of ESG in relationship between GPR and FP in energy sector.
PurposeThis study aims to examine accounting scholars' engagement with the United Nations' Sustainable Development Goals (SDGs), based on Carnegie et al.'s (2021) multidimensional definition of accounting.Design/methodology/approachApplying a framework adapted from Carnegie et al. (2023), a qualitative content analysis approach is adopted to examine 24 SDG-focused articles published across eight high-profile accounting journals from 2016 to 2024.FindingsAccounting scholars' engagement with the SGDs remains low and peripheral, rather than mainstream. Analysis reveals three critical gaps in research on the SDGs: it disproportionately attends to the technical dimension (disclosure) while largely neglecting the social (social and policy implications) and moral (stakeholder and planetary interests) dimensions; it concentrates on limited, specific SDGs and on developed countries; and it approaches SDGs as routine rather than potentially transformative.Practical implicationsThis study identifies specific pathways for advancing SDG accounting research: embracing interdisciplinary approaches; extending beyond organisational boundaries; focusing on developing countries and under-represented SDGs; addressing social and moral considerations and implications; promoting SDG accounting education; collaborating with other stakeholders; and increasing SDG publications by accounting journals.Social implicationsBy highlighting both social and moral dimensions, this study encourages scholarship that advances accounting's social functions, policies and engagement with stakeholder and planetary interests.Originality/valueThis study reveals systematic imbalances in how accounting scholarship engages with the SDGs. Addressing this critical issue requires a fundamental reorientation for accounting scholarship to meaningfully contribute to sustainable development.
PurposeArtificial intelligence (AI) can transform public sector auditing by automating tasks, improving risk detection and enhancing data analysis efficiency. Beyond efficiency gains, AI has the potential to strengthen public accountability by supporting more timely and evidence-based external oversight. Despite increasing modernisation pressures and the favourable framework of the AI Act (Regulation EU 2024/1689), the adoption by European public audit institutions remains limited. This reveals a literature gap: the factors influencing AI adoption by external public auditors in Europe are not yet clearly understood, so this study aims to identify the determinants of the intention to adopt AI.Design/methodology/approachAn integrative model combining UTAUT and TAM3 frameworks was tested using survey data from 547 auditors in Supreme and Regional Audit Institutions across 29 European countries. Partial least squares structural equation modelling was applied to validate hypothesised relationships.FindingsPerceived external control - the belief that the organisation provides adequate resources, technical support and training - was the strongest predictor of AI adoption intention, followed by social influence, expected effort and expected performance. The results of this study suggest that adoption depends on not only individual perceptions but also organisational capacity and social acceptance.Originality/valueTo the best of the authors' knowledge, this study is among the first to explore AI acceptance in a diverse European sample of public auditors, integrating two established acceptance models. The findings of this study highlight the need for strategies that strengthen institutional capabilities, foster innovation-oriented cultures and ensure alignment between regulatory initiatives and operational conditions. This study offers key implications for both public policy design and future research on digital transformation in public sector auditing.
PurposeThis study aims to examine the influence of foreign ownership and audit quality on aggressive tax avoidance among Malaysian industries with high levels of foreign direct investment (FDI). Design/methodology/approachThis study utilised the alignment and entrenchment theory to delineate the impact of foreign shareholdings and audit quality on tax avoidance. The samples encompassed corporations from sectors with significant foreign direct investment. FindingsForeign ownership is associated with greater aggressive tax avoidance among Malaysian firms. However, the effect weakens after controlling for firm characteristics and varies across industries, with the strongest evidence observed in the electronics sector, suggesting that the relationship is conditional on firm fundamentals and sectoral context. Audit report lag is negatively associated with tax avoidance across all three proxies, indicating that extended audit scrutiny constrains opportunistic tax behaviour. Research limitations/implicationsThis study focuses on firms from selected industries that represent major destinations of FDI in Malaysia, which might reduce its generalisability to other sectors or regions. Future researchers are encouraged to replicate this study in other emerging markets for a more holistic understanding. Practical implicationsThis study underscores the requirements for regulators and policymakers to enforce stricter rules and regulations to decrease aggressive tax avoidance, especially among companies with significant foreign ownership. Higher audit quality standards should be implemented for more thorough oversight. Social implicationsThe findings significantly contribute to fairer tax practices and fostered social equity. Stricter regulations could prevent the exploitation of tax loopholes to ensure Malaysian corporations realise their obligations towards national revenue. Originality/valueThis study provides unique insights into the association between foreign ownership, audit quality and aggressive tax avoidance among Malaysian firms by applying the alignment and entrenchment theory. Valuable implications are also contributed to policymakers, corporate managers, shareholders and academicians.
PurposeThis study aims to examine how participation in a university-led tax clinic contributes to the development of accounting students’ ethical understanding. While tax clinics are known to enhance technical competence and social awareness, less is known about how such experiences shape students’ moral reasoning, professional identity and sense of responsibility when working with vulnerable clients. Design/methodology/approachThe study draws on reflective journals completed by accounting students participating in a pilot National Tax Clinic programme in Australia in 2025. Students engaged directly with vulnerable clients experiencing financial, digital, social and personal barriers to tax compliance. A total of 81 reflections were thematically analysed using an ethics of care framework focusing on relationality, contextuality and empathy and responsiveness. FindingsStudents’ ethical understanding developed primarily through relational engagement with clients rather than through technical rules or professional codes. Students interpreted client non-compliance as shaped by systemic and contextual factors, including employment precarity, migration, limited education and digital exclusion. Ethical reasoning was characterised by attentiveness to lived circumstances, emotional responsiveness to hardship and adaptive support strategies. Originality/valueThis study extends accounting education research by theorising tax clinic learning as a site of moral and professional development. It contributes student-voice evidence of how ethical sensibilities and professional identities are formed through relational practice, rather than solely through formal ethics instruction or competency-based training.
PurposeThis study aims to investigate the impact of board diversity (including directors’ age, gender, educational background, tenure and nationality) on the cost of debt within a concentrated ownership environment. Design/methodology/approachThis sample consists of 107 non-financial firms listed in Spain, drawn from the OSIRIS database (Bureau Van Dijk), covering the period from 2014 to 2022, and, to enhance the robustness of the results obtained, the study uses several econometric models. FindingsThe findings reveal that global board diversity is associated with higher financing costs. This suggests that in such settings, creditors view diversity as a potential source of uncertainty and inefficiency in corporate governance. However, the relationship between global dimensional diversity and debt costs turns negative when a bank is the controlling shareholder. This implies that bank control alleviates information asymmetry, enhances financial discipline and reduces creditor concerns regarding board composition. Originality/valueThe findings emphasise the importance of considering ownership structure when evaluating the financial implications of board diversity, as its effect on debt costs is contingent upon the incentives and governance role of the dominant shareholder.
PurposeThis study aims to explore the factors influencing tax compliance by combining the extended slippery slope framework (ESSF) with the theory of planned behavior (TPB). Tax morale is identified as a mediating element that encompasses the psychological, social and institutional aspects that influence taxpayer actions. Design/methodology/approachA structured questionnaire was used to gather data from 400 taxpayer respondents. Structural equation modeling was used to analyze the impact of coercive power and reward power, trust in tax authorities, subjective norms, perceptions of government spending and tax morale on enforced, voluntary and committed compliance. FindingsThe findings indicate that coercive power significantly boosts enforced compliance, whereas trust and tax morale are strong predictors of voluntary and committed compliances. The evidence indicates that the influence of reward power and government spending on taxpayer behavior is indirect. These tools improve compliance only when they are rooted within a reciprocal fiscal social contract in which institutional legitimacy and accountability bolster tax morale. Tax morale was identified as a crucial mediating factor that connects institutional trust, social norms and government performance to compliance outcomes. Originality/valueThis study enhances existing theories by incorporating the ESSF and TPB into a relational framework, offering empirical insights into fiscal social contract dynamics in a less-studied regional setting. This demonstrates that enforcement should be complemented by trust, fair administration and transparency. This study adds to the taxation literature by emphasizing the crucial mediating function of tax morale and offers practical advice for policymakers to improve compliance beyond mere deterrence.
PurposeThis study aims to explore how uncertainties associated with climate-related regulations can influence corporate strategic responses to carbon emissions management.Design/methodology/approachDrawing on Hoffmann et al. (2008) taxonomy of regulatory uncertainty, the authors carried out an interpretive qualitative field study, involving interviews and archival data collected from six large Australian-listed companies between 2013 and 2018. The authors analysed the interview data thematically.FindingsRegulatory and regulatory-induced uncertainty significantly shapes managerial perceptions, influencing corporate strategies on climate-related risk management. It was evident that regulatory-induced uncertainties, as an exogenous shock from the carbon tax, pressured high-emitting corporations to act on carbon emissions to mitigate financial risks, regardless of political uncertainty. The findings also show that some companies tend to adopt more conservative strategies rather than explorative strategies due to regulatory uncertainties. Finally, institutional pressures exerted through the Task Force on Climate-related Financial Disclosures seem to have prompted carbon abatement actions that the Emissions Reduction Fund alone could not achieve among the case companies.Practical implicationsThe findings will guide organisational decision-makers and regulators in deciding the type of strategic responses and understanding potential outcomes when managing uncertainties associated with specific climate-related regulations.Originality/valueThis study yielded valuable insights into how corporate managers view uncertainties regarding climate policy as strategic risks and how this perception influences their risk management strategies.
PurposeThis study aims to examine the influence of professional accountants’ perceived accountability on their socially responsible investing decisions. Specifically, these decisions are based on a financially stable and profitable company that is alleged of environmental misconduct in the context of Pakistan. The study also explores whether accountants’ environmental consciousness mediates between perceived accountability and investment decisions. Design/methodology/approachGiven the increased industrial growth in major emerging economies including Pakistan, the context of environmental misconduct is selected for examination. Given the dominant role of accountants in mobilizing global and domestic investment, they are selected as a proxy for investors. Data was collected from 361 professional accountants working in leading accounting firms in Pakistan and analyzed using regression and mediation analysis. FindingsThe findings document that accountants’ perceived accountability has a significant negative influence on their investing decisions. Additional analyses further show that professionals’ environmental consciousness mediates between this relationship. Practical implicationsThis study has implications for regulators, leading companies and researchers in establishing the significance of individuals’ perceived accountability in addressing threatening environmental challenges and enhancing socially responsible investing. Originality/valueExploring individuals’ perceived accountability for financial and investment decision-making has been an unattempted question. To the best of the authors’ knowledge, this is one of the few studies providing rigorous insights into examining professionals’ perceived accountability in the context of a developing country.
PurposeBoard gender diversity is commonly analysed in studies of corporate governance, while the gender diversity of their committees (the engine rooms of decision-making) is often overlooked. This study aims to examine whether Australian listed companies exhibit similar rates of gender diversity among their boards and committees, consistent or varied board and committee gender diversity across industry sectors and whether board diversity relative to committee diversity changed after the implementation of enhanced gender targets. Social role theory guides the development of this paper’s research propositions and facilitates the interpretation of its findings. Design/methodology/approachData analysis of secondary source data gathered from a combination of databases and manual collection from the 2018–2020 annual reports of randomly selected Australian Stock Exchange (ASX) listed top 300 companies. FindingsThere were pronounced variations in female representation between the entire boards and their respective committees. Most committees had higher gender diversity than their respective boards. Differences in board and committee gender diversity were observed across industries. Furthermore, the growth in the representation of women on boards and committees increased incrementally, but unevenly, from 2018 to 2020. Such differences support the conclusion that corporate governance diversity studies should broaden beyond board diversity to consider committee gender diversity. Research limitations/implicationsThe findings offer future research insights for academics studying gender diversity in corporate governance. Practical implicationsThe results provide insights for companies, stock exchange policymakers, regulators, governments and diversity advocates regarding the varying gender diversity in key corporate decision-making committees. Originality/valueThis study compares board and committee gender diversity. Corporate governance diversity studies have generally focused on board diversity.
