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This study examines associations between accrual earnings management (AEM) and real earnings management (REM), and earnings quality between countries considered under insider economics and outsider economics clusters. Countries included in the outsider economics cluster are Singapore, Malaysia, and Hong Kong. Meanwhile, countries included in the insider economics cluster are Indonesia, the Philippines, and South Korea. Earnings management practices have changed from AEM to REM since the publication of the Sarbanes Oxley Act and DFA 954 implementation of the Claws back provision policy in the United States.

Research data were obtained from the Bloomberg database, 2010–2016. Regression analysis and t-test were utilized. This study compared AEM and REM to determine which is stronger based on country clusters, as well as the association between AEM or REM and earnings quality.

The results of this study indicate that AEM and REM are associated with the quality of earnings in the insider economics cluster. However, AEM and REM are not associated with earnings quality in the outsider economics cluster. Furthermore, associations between AEM and earnings quality are stronger than associations between REM and earnings quality in insider economics cluster.

The practice of real earnings management (REM) or earnings manipulation through the company’s real activities is increasingly widespread. Companies that want to achieve profit targets have switched from accrual-based to REM, especially in the firm family owner, who is an active manager. Our study aims to determine whether family ownership in a company will be a factor in the existence of greater REM practices. The authors collected 2,613 observational data from non-financial companies on the Indonesia Stock Exchange (IDX) during 2013–2018 using a purposive sampling method and then analyzed using panel random effect (RE) regression. The results show that family ownership significantly negatively affects abnormal operating cash flow which means that family firms are more likely to reduce operating cash flow to report higher income than non-family firms. Thus, it can be concluded that family firms in Indonesia are more likely to be involved in REM than non-family firms.

This study examines the role of industry competition, market capitalization, and debt levels in the relationship between profitability and firm value (FV). The sample included companies listed on the Indonesia Stock Exchange (IDX) in the manufacturing sector in 2017–2019. This study provides empirical evidence that the high level of industrial competition (IC), low level of market capitalization (market value of equity, MVE), and high levels of debt (debt-to-assets ratio, DAR) weaken the effect of profitability as measured by return on assets (ROA) on FV as measured by Tobin’s Q. Profitability is not even related to FV for firms facing high industry competition. In addition, profitability only has a marginal positive relationship with FV for firms with relatively small market capitalizations. These findings suggest that the relationship between profitability and FV is not monotonous but is influenced by the level of industry competence, market capitalization, and debt.

Purpose – This study examines whether a firm’s investment efficiency is impacted by having an outside director who experiences investment efficiency at one of his/her other board seats.

Methodology – Archival data is used to examine the research question.

Findings – The results indicate that firms have higher levels of investment efficiency when they have an outside director who also sits on the board of another firm that has high investment efficiency. The result is most prevalent for the subsample of firms with a powerful CEO or with low information quality.

Implications – An implication of this finding is that boards may look to the investment-related experiences that a director has through his/her other board service when deciding to add a new director. Moreover, the results imply that firms will know to look for these informed directors when they have information problems or a powerful CEO.

Originality/Value – Investments require a firm to determine how it will allocate resources. Such important decisions require management to obtain the approval of the board of directors. This paper reveals that the investment-related experience that the directors obtain from their other board service is associated with efficient investment outcomes at the home firm.

The purpose of this exploratory, empirical study is to identify motivations for expatriation among religious and humanitarian (R&H) workers.

A sample of 158 active expatriate Christian R&H workers from 25 countries, representing 48 international organizations, completed a survey with 45 reasons for expatriation, derived from literature on corporate expatriation, international volunteering, and international migration. Data analysis includes factor analysis and cluster analysis.

In total, eight latent motivation factors were found: career development; economics; international experience; escapism; altruism; outsider support; family life; and location. Workers in the not‐for‐profit sector are primarily motivated by altruism, and thus integrate organizational mission with personal purpose in their decision to work abroad. Using cluster analysis, four groups of humanitarian and religious workers in the Christian sub‐sector were identified: Caring Missionary; Focused Worker; Self‐Directed Careerist; and International Family Custodian. Workers from developed versus developing countries exhibit different motivators.

The findings provide insight into differences between developed versus developing country workers and between R&H workers. Recognizing the differences in motivation can assist international human resource managers in the effective recruitment, selection, training and development, career management, and support and encouragement of non‐profit organizations (NPO) expatriates. The authors provide propositions to be tested based on the application of self‐determination theory to expatriate motivation.

This exploratory, empirical study of Christian R&H workers extends the organizational and country context and builds on motivation for expatriation research to include this sub‐sector of workers from both developed and developing countries operating in global organizations. The findings provide new insights into motivation for expatriation and lead to propositions for future research.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

This paper not only draws conclusions from the available literature but also offers some new factors as well, which are not included in the existing literature. To be more precise, the purpose of this paper is to ascertain factors behind the clustering of the motorcycle industry, a low-tech and low investment industry. This paper weighs the government’s policies, role of factors of production, infrastructure, geography and other drivers for the subject industry and associated industries in the geographic location of Hyderabad.

For collection of data, a questionnaire was designed to survey the cluster (n=250) after reviewing the literature and conducting interviews of experts of the motorcycle manufacturing industry, i.e. owners, managers, auditors, suppliers, etc.; a component matrix was developed to reduce the dimension of factors and measure the correlation, which helped to weigh the influence of factors. A confirmatory factor analysis proposed four factors as the best fit.

The study conjectured a new viable factor for industrial clustering: “ethnic community,” as it acts as a catalyst to diffuse knowledge, experience and skills within the industrial cluster.

This research does not find the weightage of the factors for industrial clustering, i.e. it does not calculate the influence of factors behind the industrial clustering.

The above findings aim to stimulate policy makers and researchers alike to further pursue the line of inquiry developed in this paper.

A first-time confirmatory factor analysis is used to find the reasons of industrial clustering. Root mean square error of approximation is used to test the model fit. Most importantly, it is the research about an emerging industrial cluster.

This study aims to examine the link between boards and audit committees and firm performance in Kuwaiti listed firms in the context of recent and extensive corporate governance regulatory reform.

Panel data regression analysis with fixed effects and clustered standard errors of firm performance for 61–97 listed industrial and services firms in Kuwait over a seven-year period. The dependent variables are the returns on assets and equity, the debt-to-equity ratio and leverage and Tobin’s Q and the independent variables comprise board of directors and audit committee characteristics, including size, the number of meetings and the numbers of independent and outside board and expert committee members. Firm size, subsidiary status and cash flow serve as control variables.

Mixed results with respect to the characteristics of the board of directors. Board size and independent and outsider board members positively relate only to Tobin’s Q and insiders only to debt to equity. For audit committee characteristics, committee size, independence and expertise positively relate to the return on equity and committee size and expertise only to Tobin’s Q. Of the five performance measures considered, board and audit committee characteristics together best determine Tobin’s Q.

Data from a single country limits generalisability and control variables necessarily limited in a developing market context. Need for qualitative insights into corporate governance reform as a complement to conventional quantitative analysis. In combining accounting and market information, Tobin’s Q appears best able to recognise the performance benefits of good corporate governance in terms of internal organisational change.

The recent corporate governance code and guidelines reforms exert a mixed impact on firm performance, with audit committees, not boards, of most influence. But recent reforms implied most change to boards of directors. One suggestion is that non-market reform may have been unneeded given existing market pressure on listed firms and firms anticipating regulatory change.

Kuwait’s corporate governance reforms codified corporate governance practices already in place among many of its firms in pursuit of organisational legitimacy, and while invoking substantial change to audit committees, involved minor change to firm performance, at least in the short term. Some firms may also have delisted in expectation of stronger corporate governance requirements. Regardless, these direct and indirect processes both improved the overall quality of listed firm corporate governance and performance in Kuwait.

Seminal analysis of corporate governance reforms in Kuwait, which have rapidly progressed from no corporate governance code and guidelines to an initially voluntary and then compulsory regime. Only known analysis to incorporate both board of directors and audit committee characteristics. Reveals studies of the corporate governance–firm performance relationship may face difficulty in model specification, and empirical significance, given the complexity of corporate governance codes and guidelines, leads in changing firm behaviour and self-selection of firms into and out of regulated markets.