Intellectual capital reporting practices in an Islamic bank: A case study

Given the nature and importance of Islamic banks in recent times, we can expect them to have significant intellectual capital anchored in their Sharia‐based knowledge and expertise. However, we know very little or nothing about how and why intellectual capital‐related information is provided in their corporate reports. We fill this gap in our existing knowledge of the field with a view to enhance relevant literature. As far as we know, this article is one of the earliest exploratory attempts to examine intellectual capital reporting practices of an Islamic bank. We have undertaken a longitudinal (2001–2015) case study related to the intellectual capital reporting practices of an Islamic bank. Key results include significant rise of intellectual capital reporting over time, dominance of internal capital‐related items in intellectual capital reporting profile and the dynamics of changes in intellectual capital reporting practices over time. Through an institutional theory lens, we explain that this is due to the changes in the external institutional environment and various intra‐organisational factors such as strong ethical culture, unique knowledge base (Sharia), and corporate governance regime.     

Sustainable development carbon pricing initiative and voluntary environmental disclosures quality

Although corporate environmental disclosures have been researched extensively, empirical evidence regarding the indirect impact of carbon pricing on firms' voluntary disclosures is scarce. The objective of this study is to identify the indirect impact of carbon pricing initiatives on the voluntary environmental disclosures (VEDs) of electricity generating companies, analyzed through the lens of institutional theory. This study adds to the growing literature on the determinants of VED, investigating the impact of adoption of the Global Reporting Initiative and ISO 14001 on VED. Secondary data were collected from 2015 annual reports and/or standalone sustainability reports of electricity generating companies from 53 countries around the world. Content analysis approach was adopted for measuring the extent of the quality of VED. Findings of multiple regression analysis suggest that there is an indirect institutional impact of carbon pricing on the quality of VED. This study also finds that, as the form of nongovernment guidance, the Global Reporting Initiative adoption and ISO 14001 certification also have an institutional influence on the VED. VED is also affected by company size although this study reveals no significant relationship of leverage with VED.     

History of microfinance in Bangladesh: A life cycle theory approach

This study aims to conceptualise and document the historical evolution of microfinance in Bangladesh using the life cycle theory (LCT). Based on the LCT nomenclature, the microfinance sector in Bangladesh shows characteristics broadly consistent with the saturation phase (2006–2015) – which potentially has adverse impacts on both microfinance clients and institutions. The maturity phase (1996–2005) of microfinance has corresponded with competition and several innovations (financial and non-financial). However, the saturation phase sees increasing presence of uncoordinated microfinance institutions and expansion of multiple borrowing, as well as commercialisation and ‘mission drift’, which constitute important challenges for the regulatory authority and management of microfinance institutions.     

Institutional ownership,cross-shareholdings and corporate cash reserves in Japan

Cross-country studies document a negative relation between corporate governance and cash holdings. In contrast, this relation is found to be positive in the United States. In this paper, we examine the case of Japanese firms. Using institutional ownership and cross-shareholdings as the main governance variables, we show that better governance is associated with higher cash balances as in the United States. The reason is that better-governed firms make better investment decisions. Their investments are not driven by excess liquidity and result in higher profitability and higher firm valuation. Overall, our findings indicate that management profligacy is a bigger concern to shareholders than management propensity to hoard cash because of risk aversion.     

Bioelectricity in Malaysia: economic feasibility,environmental and deforestation implications

We investigate the economic feasibility of bioelectricity production from biomass in Malaysia and its impact on greenhouse gas (GHG) emissions and storage, agricultural prices, agricultural employment and deforestation. For this purpose, we develop a partial equilibrium model that projects agricultural prices, production, imports, exports, domestic consumption and land use in 5‐year increments between 2015 and 2065. Our results show that by 2030 biomass‐generated electricity can supply 36.5 per cent of the electricity generated in Malaysia, 16 times more than the 2016 electricity supply from biomass. Increased bioelectricity production from biomass will significantly reduce GHG emissions and will help Malaysia meet its commitment in the Paris Agreement to mitigate GHG emission by 45 per cent before 2030. Our modelling shows that biomass‐generated electricity creates a derived demand for waste biomass that expands the area of oil palm plantations. The expansion lowers agricultural prices, boosts agricultural employment and leads to some deforestation as landowners clear rainforest to plant oil palm trees. Nonetheless, the deforestation does not increase GHG emissions since GHG gains from bioelectricity significantly exceed GHG losses from deforestation.     

Understanding communal and individual customer experiences in group-oriented event tourism: an activity theory perspective

ABSTRACT

The purpose of this study, grounded in activity theory, is to empirically investigate the communal and individual mechanisms that simultaneously shape the customer experience in group-oriented event tourism. Based on a survey of 389 respondents with group travel experience to major events, the results confirm the research model, suggesting that the customer-experience construct constitutes a multidimensional structure comprising second-order components reflecting individual and communal experiences, with each containing first-order constructs. The results further confirm that the customer-experience construct predicts post-consumption evaluations of perceived value and satisfaction. Limitations of the study are outlined, and implications for research and managerial practice for the creation of customer experiences that are valuable and satisfying for group-travel consumers to events are discussed.     

Corporate ownership concentration and audit fees: The case of an emerging economy

The paper investigates the effects of corporate ownership concentration on audit fees in emerging economies, using Bangladesh as a case. Prior studies have indicated that audit fees in Bangladesh are significantly low. Also, the Bangladeshi private sector is dominated by high ownership concentration. Agency theory predicts that in an efficient market, managers in a highly concentrated ownership situation will have sufficient incentives to have more rigorous audits performed. However, managers in emerging economies, where the markets are not as strong, may not have similar incentives. We test whether audit fees in Bangladesh are related to corporate ownership concentration. Our results indicate that audit fees have a significant negative relationship with sponsor and institutional ownership concentrations. This indicates that in Bangladesh, companies actually pay lower audit fees when these are dominated by sponsor and institutional shareholders. For the public shareholders, we find a negative, but statistically insignificant relationship. The results seem to suggest that corporate ownership pattern may be a major factor in explaining the low audit fees in Bangladesh.     

Measurement of Formal Harmonisation in Accounting: An Exploratory Study

Extant research in evaluation of accounting harmonisation has mainly focused on measurement of harmonisation and evaluation of its impact on share market indicators. Within these themes, however, researchers have been studying the impact of formal harmonisation on material harmonisation, and share prices and returns. Given the important role formal harmonisation plays in accounting harmonisation, this study introduces a methodology for the measurement of formal accounting harmony between countries. The methodology introduced in this paper can be used to identify areas of harmony or disharmony for policy-making purposes. It also provides means of gaining valuable insights into the nature of harmony or disharmony between different countries' accounting rules. Finally, it creates new grounds for examining various other aspects of accounting harmonisation.