Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports

Islamic Banks (IBs) are considered as having ethical identity, since the foundation of their business philosophy is closely tied to religion. In this article, we explore whether any discrepancy exists between the communicated (based on information disclosed in the annual reports) and ideal (disclosure of information deemed vital based on the Islamic ethical business framework) ethical identities and we measure this by what we have termed the Ethical Identity Index (EII). Our longitudinal survey results over a 3-year period indicate the overall mean EII of only one IB out of seven surveyed to be above average. The remaining six IBs suffer from disparity between the communicated and ideal ethical identities. We further found the largest incongruence to be related to four dimensions: commitments to society; disclosure of corporate vision and mission; contribution to and management of zakah, charity and benevolent loans; and information regarding top management. The results have important implications for communication management if IBs are to enhance their image and reputation in society as well as to remain competitive. Roszaini Haniffa is a Senior Lecturer and Head of Accounting and Finance at the Bradford University School of Management. She holds a PhD from Exeter University and has published papers in Abacus, Journal of Accounting and Public Policy, Journal of Business Finance and Accounting and other journals. Her research interests focus on social responsibility reporting, corporate governance, international accounting and the Islamic perspective of accounting. Ros has reviewed papers and is a member on the editorial board of several journals. Mohammad Hudaib is a Lecturer in Accounting at the Bradford University School of Management and holds a PhD from Essex University. He has previously taught at Exeter University and prior to his teaching career, was an auditor in Saudi Arabia. He has published papers on auditing and corporate governance in Journal of Business Finance and Accounting. His current research interests include auditing, Islamic perspective of accounting, accounting theory and ethics.     

Corporate Identity,Ethics and Reputation in Supplier–Buyer Relationships

Multi-national corporations (MNCs) have been criticised for not behaving ethically in some situations, which could have a negative effect on their reputation. This study examines the ethics of a large MNC in its relationship with its suppliers. A brief literature review of corporate identity, business ethics and buyer–supplier relationships is undertaken. The views and perceptions of the buying staff and the suppliers to a large South African MNC are obtained and discussed. The results indicate that this MNC has a good corporate reputation among both its suppliers (an important stakeholder) and its own buying department. The existence and implementation of formal codes of ethics was found to be a necessary, but not sufficient condition for good ethical practice. Candid relationships with suppliers emerged as a second and important factor. Ethical perceptions of buyers by suppliers are driven by the management of corporate identity, through the elements of ethical standards and candid relationships. We present a model of corporate identity/reputation in Buyer–Supplier Relationships. Michael Bendixen is a Professor of Research Methodology and Statistics at the H. Wayne Huizenga School of Business at Nova Southeastern University, Florida. His research interests include business ethics, governance and culture. His articles have appeared in the European Journal of Marketing, Industrial Marketing Management, Journal of Business Research, Journal of International Business Studies and Journal of Marketing Management amongst others. Russell Abratt is a Professor of Marketing at the H. Wayne Huizenga School of Business at Nova Southeastern University, Florida. His research interests include corporate identity management and business ethics. His articles have appeared in the Journal of Business Ethics, Journal of Business and Psychology, European Journal of Marketing, Journal of Marketing Management, Industrial Marketing Management, and Business Horizons amongst others.     

Bank Debt Use and Firm Size: Indian Evidence

The paper employs a sample of listed Indian manufacturing firms over the period 1995–2004 to examine the factors influencing the concentration of bank debt in total debt. The results indicate that the factors vary by firm size. Small to medium-sized firms have a high concentration of bank debt. The results support the reputation view that firms face differential debt choice as they grow larger. When evaluating bank regulations, policymakers need to consider the importance of the reputation-building service which banks provide to businesses.     

The Creation of Value Through Corporate Reputation

The relationship between social and financial performance (CSP – FP) has been a main objective in the literature on business management, as it would provide an economic justification for the social investment insofar as it contributes to the creation of value. This relationship has been empirically tested by several authors though without using a theoretical model that sustains this relationship. The aim of this article is to propose a theoretical model of the process of the creation of value from the reputation generated by companies, integrating the factors that have been shown to be more relevant in this process from previous research, in such a way that hypotheses are put forward regarding the existence of this relationship and the factors that determine it. Finally, an empirical test is performed using the 100 most prestigious companies operating in Spain during 2004.     

网络购物中商品质量问题发生机理及监管研究述评

网络购物中商品质量问题发生机理源于信息不对称和市场的不确定性。为了解决该问题,网络购物网站、政府、第三方中介机构等相关方采取在线信誉机制、信息传递手段、社会信用体系促进、质量检验和质量保证等展开了对网络购物中商品质量的监管。目前,学术界对该课题的研究仍不够专门和深入,针对中国式背景下的网络购物商品质量,未来的研究可集中在网络购物中的商品质量影响因素、质量评价和质量监管上。     

仆从领导文化与企业声誉管理

本文将Grahame企业声誉的理论模型运用于仆从领导文化与企业声誉管理内在关系的研究。通过对仆从领导的“齿轮传动模型”的阐释,本文分析了仆从领导文化与企业声誉管理相关的四个特征,即领导知名度、员工参与度、顾客满意度与社区和谐度,揭示了企业文化作用于企业声誉管理的“光环效应”。     

Ownership Differences,Auditor Reputation,and Debt Financing: Evidence from China

This research examines whether “the paradox of auditor reputation” exists in China’s private debt market. Two types of hypotheses are developed to explain the “paradox” in terms of ownership differences. Our findings suggest: (1) by retaining big name auditors, non-state-owned enterprises (non-SOEs) significantly reduce the cost of debt and lower financial constraints; (2) For the non-SOEs, the effect of auditor reputation on the cost of debt and financial constraints declines over time due to the accumulation of these firms’ own reputation; (3) SOEs are more sensitive to the interest rate of bank loans than their counterparts, implying their stronger bargaining power when negotiating with potential creditors than non-SOEs due to their government connections. However, SOEs’ government connections weaken the informational role of auditors and firm reputation on signaling debt market; and (4) Corporate governance is taken into consideration by creditors as an important indicator of solvency. Further investigation demonstrates that after controlling for firm size, operating cash flow, profitability and leverage ratio, the possibility of hiring big name auditors by the younger and median-aged group of non-SOEs is considerably higher than “elder” non-SOEs. Moreover, poor-performing SOEs have greater incentives to make use of their government connections in their bargaining for lower debt cost, as compared with their well-performing peers.     

企业声誉与媒体权威性在证券市场传闻澄清中的作用——关于上市公司应对证券市场传闻的实证研究

发布澄清公告是上市公司应对市场传闻的主要途径。然而,在中国证券市场中,澄清公告却澄而不清,其原因在于某些因素会影响澄清公告的有效性。文章主要围绕信息内容（否认措辞）和信息来源（澄清企业的声誉与传闻媒体的权威性）两类影响因素进行探讨。研究发现,否认措辞将对澄清效果产生影响,并且两者的关系同时受到企业声誉和媒体权威性的调节作用,企业声誉越差,媒体权威性越高,否认措辞对澄清效果的影响越大。研究结论检验了心理学理论在证券市场中的有效性,拓展了金融市场领域的研究范畴,同时为上市公司应对市场传闻提供了新的思路。      

How and why auditors’ social exchange relationships influence their attitudes and behaviors: Implications for audit quality

External auditors regularly interact with various parties at work, such as their accounting firms, engagement team members, and clients. These interactions can help shape the nature of auditors’ social exchange relationships with these entities, which in turn may influence their behavior toward these targets. This installment of Accounting Matters draws from recently published research by Herda and colleagues to (1) explain how constructive auditor-target connections can develop and lead to beneficial outcomes like reduced auditor burnout and turnover intentions, as well as more citizenship behavior, and (2) discuss how these upshots might ultimately affect audit quality. This topic is important because audit quality translates into improved financial reporting, which helps stakeholders who rely on audited financial statements to make informed business decisions. Specifically, we underscore the key role auditors’ perceptions of fair treatment from a relationship partner play in fostering a strong psychological bond with the target via perceived support. We further consider how auditors’ consequent commitment to the target can result in favorable organizational outcomes, including enhanced audit and financial reporting quality. We also discuss practical implications for accounting firms.     

Improving the Effect of Guarantees: The Role of a Retailer's Reputation

This research examines the interaction of two cues, retailer reputation and guarantees on evaluations. Extending Mandler's (1982) incongruity framework, we illustrate across three studies how moderately incongruent signals can be combined to enhance evaluations. Unique to our application of moderate incongruity, however, is the fact that guarantee cues can be incongruent with the retailer's reputation, in terms of domain (e.g., price matching guarantee (PMG) offered by provider whose reputation is based on service, not pricing) or valence (e.g., PMG offered by retailer known for carrying expensive merchandize). This dual perspective on the source of incongruity (domain or valence) is important and highlights when guarantees enhance evaluations.