Related party transactions, corporate governance and accounting quality in Greece

Related Party Transactions (RPTs) have been considered recently in research as a phenomenon which is associated with several financial scandals, shareholder’s wealth expropriation and is used for earnings management (EM) purposes by the reporting entity. This study aimed to: (i) assess the extent of EM and RPTs i Greece; (ii) investigate the association between RPTs and EM; (iii) investigate the association between corporate governance and EM; (iv) investigate the association between corporate governance and RPTs; and (v) investigate the impact of RPTs on Accounting Quality. Greece was selected for this study as it provides a special context due to poor investor protection, high levels of EM and unhealthy financial reporting environment where wealth extraction and EM are more likely. This study examines the relationship between earnings management and RPTs for the firms listed on the Athens Stock Exchange (ASE). Moreover, it examines the association between earnings management and corporate governance activities. The results show a negative and significant relationship between EM and RPTs. This finding does not support the conclusion that RPTs are necessarily conducted to mask fraud or the extraction of firm resources. The results show that firms audited by one of the Big 4 audit firms are associated with less EM. Additionally, the study investigates the relationship between RPTs and accounting quality. The findings show that that there is no significant difference in accounting quality between RPTs firms and non-RPTs firms. This study contributes to the EM, accounting quality and corporate governance literatures. This research suggests recommendations for researchers, data providers and policy makers on ways to reduce the problems associated with RPTs.

The use of ICT by logistics service providers and implications for training needs:a cross-country perspective

Changes in the international economic scenario in recent years have made it necessary for both industrial and service firms to reformulate their strategies, with a strong focus on the resources required for successful implementation. In this scenario, information and communication technologies (ICT) has a potentially vital role to play both as a key resource for re-engineering business processes within a framework of direct connection between suppliers and customers, and as a source of cost optimisation. There have also been innovations in the logistics and freight transport industry in relation to ICT diffusion. The implementation of such systems by third party logistics providers (3PL) allows the real-time exchange of information between supply chain partners, thereby improving planning capability and customer service. Unlike other industries, the logistics and freight transport industry is lagging somewhat behind other sectors in ICT diffusion. This situation is to be attributed to a series of both industry-specific and other factors, such as: (a) traditional resistance to change on the part of transport and logistics service providers; (b) the small size of firms that places considerable constraints upon investment in ICT; (c) the relative shortage of user-friendly applications; (d) the diffusion of internal standards on the part of the main providers in the industry whose aim is to protect company information, preventing its dissemination among customers and suppliers; (e) the insufficient degree of professional skills for using such technologies on the part of staff in such firms. The latter point is of critical importance insofar as the adoption of ICT is making it increasingly necessary both to develop new technical skills to use different hardware and new software tools, and to be able to plan processes of communication so as to allow the optimal use of ICT. The aim of this paper is to assess the impact of ICT on transport and logistics industry and to highlight how the use of such new technologies is affecting providers' training needs. The first part will provide a conceptual framework of the impact of ICT on the transport and logistics industry. In the second part the state of ICT dissemination in the Italian and Irish third party logistics industry will be outlined. In the third part, the impact of ICT on the training needs of transport and logistics service providers - based on case studies in both countries - are discussed. The implications of the foregoing for the development of appropriate training policies are considered. For the covering abstract see ITRD E126595.

Cross-country report:a first cross-country analysis and profiling of social enterprises prepared by the SEFORÏS research consortium

This cross-country report shares first insights from the World's Largest Panel Study of Social Enterprises, which covers seven European Countries (Germany, Hungary, Portugal, Romania, Spain, Sweden, the United Kingdom), China and Russia. It captures the behavior and characteristics of representative samples of social enterprises in these countries who are employers. The report covers a range of topics from profiling social enterprise directors and their social enterprises, to innovation activities and barriers, their entrepreneurial orientation, social missions, social impact metrics to summarizing policy recommendations that social entrepreneurs would like to see being implemented in their countries. Who should read this report? The report is written for social enterprises, social enterprises support organisations and policy makers who want to get an overview of social enterprise in the UK. Thank you to all the social entrepreneurs who made this report possible by participating in our study!

The sociolinguistic stratification of a connected speech process - The case of the T to R rule in the Black Country

This paper examines the connected speech process described by Wells (1982b) as the T to R rule in the West Midlands speech variety associated with the Black Country. The T to R rule is well known as a linguistic marker of local varieties of the middle and far north of England. Less well understood is its position in the phonological systems of Midlands varieties. Varieties of the Midlands of England are underresearched in comparison with varieties of the north, and what is known about the application of the T to R rule in this transitional dialect area is correspondingly nebulous. This paper focuses on the Black Country area, and examines the possible outputs in the contexts which give rise to /t/ becoming [?] in local varieties of the north. I examine the written and spoken evidence which suggests that the T to R rule does indeed operate in the Black Country variety. My analysis focuses on possible phonetic outcomes of the T to R rule across time. In my conclusion, I discuss briefly the possibility that, lying on a bundle of isoglosses separating north from south, the variety of the Black Country reflects this in that a T to [?] rule, rather than a T to R rule, is the dominant output of this connected speech process in the Black Country.

Integrating technology and operations in a developing country context

The importance of technology to developing countries is widely recognised as they compete internationally and develop internally. Firms acquire technology by different means and from diverse sources, and they possess varying levels of competence. Since countries are at various stages of economic and technological development, prescriptive approaches to technology and operations integration are not appropriate. The paper discusses factors in the literature that affect the integration of technology and operations in developing countries. Country similarities and differences also play a role, so the study examines three developing countries: Brazil, India and South Africa. These countries are emerging from periods of regulation and have developed certain sectors of their economies. Empirical evidence is provided from a study of managers in South Africa who were asked to assess the important factors in technology integration, and to score the extent to which they can control these. Results from the study concur with the literature regarding the importance of a country’s political stability and its policies towards new investment and infrastructure. Knowledge and understanding of technology are essential for successful integration in countries with insufficient skilled personnel, and where education levels are low.

An empirical investigation of host country national categorization of expatriates in the United Kingdom

In recent times, some authors have argued that Host Country National (HCN) categorization of expatriate co-workers plays a major role in expatriate adjustment. Previous studies have argued that HCN categorization of expatriates maybe be based on gender, or national origin. In this study, using data from 331 HCNs in the U.K., we find that HCN expectations of foreigners may play a big role in categorization. Further, we find that categorization leads to lower levels of support offered by HCNs, which can affect expatriate adjustment. We discuss implications and offer suggestions for future research.

Two-nation study of host country national categorization of female expatriates - United States and India

This study was designed to study the role of Host Country National categorizationof female expatriate co-workers, in two samples – U.S., and India. Using data from 54participants in the U.S. and 52 participants in India, we found that respondents from Indiacategorized potential expatriate co-workers from the U.S. into in-group or out-groupsignificantly more than respondents from the U.S. Further, we found that femaleexpatriates from the U.S. are preferred by Indian HCNs as co-workers significantly morethan male expatriates from the U.S. We discuss implications for organizations and offersuggestions for future research.

A new perspective on the female expatriate experience:the role of host country national categorization

This study was designed to investigate host country national (HCN) categorization of female expatriates, in two samples-U.S. and India. Two hundred and twenty-two HCNs (104 in the U.S. and 118 in India) participated in the study. Consistent with prior research [e.g., Tung, R. L. (1998). American expatriates abroad: From neophytes to cosmopolitans. Journal of World Business, 33: 125-140], we found that female expatriates from the U.S. were not discriminated against. Indeed, we found that female expatriates from the U.S. were preferred by Indian HCNs, as co-workers, significantly more than male expatriates from the U.S. We discuss implications for organizations and offer suggestions for future research. © 2006 Elsevier Inc. All rights reserved.

Absence of corporate social reporting (CSR) in Bangladesh: a research note

This paper aims to broaden the present CSR literature by extending its focus to the absence of CSR within a developing country, an area which, to date, is relatively under researched in comparison to the more widely studied presence of CSR within developed Western countries. In particular this paper concentrates upon the lack of disclosure on three particular eco-justice issues: child labour, equal opportunities and poverty alleviation. We critically examine why this is the case and thereby illuminate underlying motives behind corporate unwillingness to address these issues. For this purpose, 23 semi-structured interviews were undertaken with senior corporate managers in Bangladesh. The findings suggest that the main reasons for non-disclosure include lack of legal requirements, lack of knowledge/awareness, poor performance and fear of bad publicity. Given these findings the paper raises some serious concerns as to why corporations would ever be expected to voluntarily report on eco-justice issues where performance is poor and negative publicity would be generated. These significant issues require careful consideration by policy makers at the national, regional and international levels.

A risk-based model for inspection and maintenance of cross-country petroleum pipeline

The existing method of pipeline health monitoring, which requires an entire pipeline to be inspected periodically, is both time-wasting and expensive. A risk-based model that reduces the amount of time spent on inspection has been presented. This model not only reduces the cost of maintaining petroleum pipelines, but also suggests efficient design and operation philosophy, construction methodology and logical insurance plans. The risk-based model uses Analytic Hierarchy Process (AHP), a multiple attribute decision-making technique, to identify the factors that influence failure on specific segments and analyzes their effects by determining probability of risk factors. The severity of failure is determined through consequence analysis. From this, the effect of a failure caused by each risk factor can be established in terms of cost, and the cumulative effect of failure is determined through probability analysis. The technique does not totally eliminate subjectivity, but it is an improvement over the existing inspection method.

Inward investment and host country market structure:the case of the U.K.

Multinational enterprises are seen as vehicles for the international transfer of investment capital, protecting and increasing profits by transferring ownership advantages across national boundaries. As such, the argument often follows that foreign direct investment then exacerbates the monopoly problem in host countries, by increasing concentration and facilitating collusion. This paper however reveals the reverse, that inward investment into the U.K. acts to reduce concentration at the industry level, by increasing competitive pressures on domestic industry.

An exploratory study of management accounting and control systems in a developing country

This thesis reports on the results of case studies in four commercial banks in Nigeria. The study focuses how management accounting and control systems (MCS) operate in the four banks. The study is motivated by the dearth of literature on management accounting practices in the developing world in general and in Nigeria in specific. The case study approach adopted in conducting the research was useful in exploring the dynamics of the MCS in the organisations. Data was gathered from two sources. First, semi-structured interviews were conducted with managers at the head office, regional office and branches of each bank. The participants were selected from different backgrounds and managerial levels to provide broader understanding of the operations of the MCS. Second, various internal and external documents were reviewed to provide supporting evidence for the interview results. New institutional sociology (NIS) provided the theoretical framework to understand the results. NIS provided explanations for how the MCS in the four banks were shaped by diverse external and internal factors. The key factors identified as shaping the operations of the MCS were the need to comply with the regulatory environment (coercive isomorphism), the need to maintain social and cultural support (normative isomorphism) and the need to imitate successful organisations in order to appear legitimate (mimetic isomorphism). The study also examines the interplay between the institutional forces, market forces and infra-organisational power relations. This analysis is necessary to overcome the criticism of NIS that it downplays the role of market forces, agency and intra-organisational relations. The findings of the study have implications for understanding the operations of MCS in the developing world.

Profit sharing in a manufacturing plant in a developing country : communication and organisational dynamics

The adaptation of profit sharing creates a fundamental change in employee compensation by making a portion of total compensation directly dependent upon the total profits of the firm and the performance of the employee. The major goal of this study is to test for and measure the impact of the independent variable, a profit sharing plan implemented at Shahvand Industrial Company, upon communication behaviour, communication outcomes, and organisational outcomes as dependent variables. A quasi-experimental non-equivalent control group design with pre and posttest was the research design used to test the effects of profit sharing participation on permanent-part-time operative employees implemented by SIC. Several conclusions were reached as a result of the statistical analysis of the data collected in this study. Overall, few of the hypothesised effects of profit sharing participation appeared to have been realised according to the empirical results of this study. The finding that certain communication behaviours were more favourable for profit sharing participants than for non-participants support the general hypothesis of the integrated profit sharing model. The observed changes in communication behaviours indicate that information sharing and idea generation are important components of the profit sharing process. The results of this study did not reveal any changes in either communication or organisational outcomes. A significant finding of this study is that the implementation of profit sharing plans require a relatively long period of time. Patience is required to achieve high levels of success and management must make long-term commitment to profit sharing. Findings of this study should be interpreted with caution, taking into consideration that most of the previo.us researches on profit sharing have been conducted in Western European or American countries, while the current study was based on data collected from an organisation in a developing country. This implies that the findings reported in this thesis may not be comparable in certain respects to results derived from companies in major industrialised economies.

Satisfaction with knowledge and competencies:a multi-country study of employers and business graduates

This study critically discusses findings from a research project involving four European countries. The project had two main aims. The first was to develop a systematic procedure for assessing the balance between knowledge and competencies acquired in higher, further and vocational education and the specific needs of the labor market. The second aim was to develop and test a set of meta-level quality indicators aimed at evaluating the linkages between education and employment. The project was designed to address the lack of employer input concerning the requirements of business graduates for successful workplace performance and the need for more specific industry-driven feedback to guide administrative heads at universities and personnel at quality assurance agencies in curriculum development and revision. Approach: The project was distinctive in that it combined different partners from higher education, vocational training, industry and quality assurance. Project partners designed and implemented an innovative approach, based on literature review, qualitative interviews and surveys in the four countries, in order to identify and confirm key knowledge and competency requirements. This study presents this step-by-step approach, as well as survey findings from a sample of 900 business graduates and employers. In addition, it introduces two Partial Least Squares (PLS) path models for predicting satisfaction with work performance and satisfaction with business education. Results: Survey findings revealed that employers were not very confident regarding business graduates’ abilities in key knowledge areas and in key generic competencies. In subsequent analysis, these graduate abilities were tested and identified as important predictors of employers’ satisfaction with graduates’ work performance. Conclusion: The industry-driven approach introduced in this study can serve as a guide to assist different types of educational institutions to better align study programs with changing labor market requirements. Recommendations for curriculum improvement are discussed.

Stakeholders' perceptions of Corporate Social Reporting (CSR) in Bangladesh

The paper addresses a significant gap in the CSR literature indicated by the lack of studies that examine non-managerial stakeholders’ perceptions of the practice. Recent calls in the CSR literature have emphasised the importance of giving voice to non-managerial stakeholders groups. The research examines the perceptions of a wide group of stakeholders in the context of a developing country, Bangladesh. A series of semi-structured interviews were conducted with various stakeholder groups including employees, consumers, pressure groups, regulatory body and accounting professionals. The current practice of CSR in Bangladesh is interpreted in terms of ‘largely cosmetic responses’, ‘marketing strategy’ and ‘response to pressures from international markets’. Additionally, while some of the interviewees sharply criticised the current process of imposing social accounting codes/standards on developing countries which fail to consider the important local socio-economic context, the findings suggest that there is overwhelming support for mandatory externally verified CSR reporting based on the principles of peoples’ right to know, full disclosure/completeness, and relevance, which are anchored in the broader principles of transparency and accountability.