Augustine Donkor

We examine how national culture moderates the relationship between corporate governance (CG) and Environmental, Social and Governance (ESG) disclosure of Fintech firms. Employing the least squares dummy variable regression estimation technique on 1,600 firm-year observations for 310 Fintech companies across eight countries, our results suggest that the influence of board size, independence, and gender diversity on Fintech companies’ ESG disclosures is more pronounced in collectivist and low-indulgent cultures. Uncertainty avoidance, time orientation and gender cultural dimensions also moderate Fintech firms’ board size, independence and ESG disclosure relationship. We highlight the importance of culture in boards' ESG disclosure decisions and in the CG-ESG disclosure nexus.

Purpose
This study examines the role of integrated reporting (IR) and earnings management (EM) practices on the combined assurance model (CA) and the firms’ capital market liquidity (FCML) performance nexus. Based on a moderated mediation analysis, it examines the channels through which CA quality influences FCML performance.

Design/methodology/approach
The study uses data from the top 100 firms on the Johannesburg Stock Exchange (JSE) based on market capitalisation, and a bootstrap moderated mediation model through Hayes Process Macro was adopted.

Findings
The findings show that although IR quality mediates the CA quality and FCML performance nexus, the mediation is conditional on firms’ practices of EM, implying that the value of CA through IR to capital market participants is more pronounced for firms engaged in high EM practices.

Practical implications
The findings emphasise the importance of the CA model in streamlining assurance processes, reducing assurance costs and enhancing the credibility of financial and sustainability reports, thereby improving capital market performance. Hence, it is a valuable assurance framework for International Financial Reporting Standards (IFRS) S1 and S2 compliance.

Originality/value
This study uniquely lines up the CA model, IR quality and EM practices to project the value relevance and channel(s) through which the effective communication of the CA model influences FCML performance.

Purpose
This study aims to clarify the value of sustainable development goals (SDGs) commitment by examining the moderating role of firms’ commitment to SDGs on firms’ carbon emissions (CE) and firm value (FV) nexus.

Design/methodology/approach
The study uses ordinary least squares and other robust estimations on data from 89 listed firms on the Johannesburg Stock Exchange (JSE) from 2013 to 2021.

Findings
Firms with high CE are associated with lower FV. However, firms’ commitment to SDGs moderates the relationship by averting the value-destroying tendencies of high carbon-emitting firms.

Practical implications
Firms should integrate SDGs into their core business strategy and governance frameworks to enhance their environmental performance and FV. As market participants on the JSE, they should also focus on the allocation of resources for SDGs and the management of CE.

Social implications
The findings provide a basis for governments and policymakers to promote firm-level commitment to SDGs to help reduce the harmful effects of CE on society and help achieve SDG targets.

Originality/value
The study adds a new dimension to the existing environmental performance and financial outcomes literature by clarifying the moderating value of firms’ commitment to SDGs in the CE and FV discourse.

This study examines the influence of board generational cohorts on firms' sustainability performance (FSP) and the critical mass of directors within the different cohorts that influences FSP. We find that while Boomers have a positive influence on FSP, Traditionalist, GenX and GenY members are less concerned about FSP. Additionally, older cohorts (Traditionalists and Boomers) require three directors to exert their respective influence on FSP, whereas GenX and GenY require two or more and one director, respectively. Furthermore, the presence of Boomers may mitigate the limited focus of other generational cohorts on FSP. By identifying that not all cohorts in the older generation have a positive influence on FSP, that boomers may help mitigate the negative influence of other cohorts and the critical mass for which each cohort establishes an influence, we inform firms and policy makers on the mix of cohorts on the board that may enhance FSP.

Sustainability reporting was introduced after financial reporting to meet the social and environmental informational needs of stakeholders, while integrated reporting was initiated to integrate financial reporting and sustainability reporting to advance the decision usefulness of corporate disclosure practices. Despite claims and evidence of the value relevance of each reporting framework exclusively, studies on the incremental value relevancies of these subsequent disclosure practices have been sparse. Using a sample of firms from the Johan-nesburg Stock Exchange from 2011 to 2020 and firms' capital market liquidity performance, this study finds that sustainability reporting and integrated reporting are not only value-relevant disclosure practices but also offer incremental value relevancies. Sustainability reporting provides incremental value relevance over financial reporting, and integrated reporting offers incremental value relevance over financial reporting and sustainability reporting. However, the findings do not find support for integrated reporting to replace the practices of financial reporting and sustainability reporting and affirm the contribution of each of the three reports in the corporate reporting space.

Purpose
This study aims to evaluate the relationship between integrated reporting and management’s opportunistic behavior (i.e., accrual and real earnings management) and the moderating role of firm complexity.

Design/methodology/approach
Data of firms at the Johannesburg Stock Exchange were collected and analyzed. The Johannesburg Stock Exchange is currently the primary exchange that mandates the practice of integrated reporting. Regression estimation models and robustness tests were applied to the analysis.

Findings
This study concludes that integrated reporting quality reduces firms’ accrual and real earnings management practices. It further concludes that the significant negative effect of integrated reporting quality on firms’ earnings management practices is impeded by higher firm complexity.

Originality/value
This study enhances the literature on the behavioral effect of a combined financial and sustainability disclosure practice on both accrual and real earnings management, specifically targeting South Africa’s listed companies – the primary market currently mandates integrated reporting practice.

Purpose: This study examines the effect of the environmental sensitivity of firms on the relationship between integrated reporting (IR) quality and sustainability performance. Prior research works focus on the nexus between IR quality and sustainability performance with little attention to factors that moderate this relationship.

Design/methodology/approach: Ordinary least squares (OLS) and other robust estimations are employed to analyse the data of firms on the Johannesburg Stock Exchange (JSE).

Findings: This study finds a positive association between IR quality and sustainability performance. However, the strength of this relationship is found to be weaker among environmentally sensitive firms, thereby raising concerns that such firms may be reporting less sustainability information with the mandatory implementation of IR on the JSE.

Practical implications: The findings highlight the need for regulatory bodies to consider additional sustainability disclosure requirements for firms in environmentally sensitive industries.

Social implications: The findings should make regulatory bodies aware of the possible actions of environmentally sensitive firms in relation to sustainability information within a mandatory setting of IR.

Originality/value: The study extends the existing literature on IR and sustainability performance by considering the effect of firm environmental sensitivity as a moderating factor.

This paper examines and compares the role of male financial experts (MFEs) and female financial experts (FFEs) of the Audit Committee (AC), on sustainability performance using a sample of listed firms in the United States from 2010 to 2021. The results show that although both MFEs and FFEs influence sustainability performance, FFEs have statistically greater influence than MFEs. The results also show that FFEs have greater influence across all three pillars of Environmental, Social and Governance (ESG) performance. Further analyses suggest that if an AC has single-gender financial expertise (only MFEs or only FFEs), this is detrimental to the firm's sustainability performance. The results also show that although having a gender-diverse AC is beneficial, the benefit is greater if the females on the AC are financial experts. These results may partly explain the inconclusive findings of earlier studies on the influence of financial expertise on sustainability performance. The results remain consistent under a battery of robustness tests. Overall, the study highlights the need for ACs to have diverse financial experts from the perspective of non-financial reporting and adds to justifications for increasing calls for diversity on boards.

The study assesses whether CEO power and firm environmental sensitivity matter to board diversity (i.e., board cultural (BCD) and board gender (BGD) diversity) and corporate sustainability performance nexus. Australian S&P/ASX300′s firm data for a period of ten years (2011–2020) were used in the study’s analysis. Although board diversity positively influences ESG performance, the presence of powerful CEOs and when firms operate in environmentally sensitive industries weaken the board diversity and sustainability performance nexus. Additionally, the study found that although board diversity is essential, the effect of BGD has a greater statistical power on sustainability than BCD, affirming the present focus on BGD.

Purpose

This study aims to examine the relationship between integrated reporting (IR) quality and corporate tax avoidance (CTA). IR is an emerging reporting mechanism, while CTA practices are considered a hindrance to inclusive and sustainable growth. The study also assesses the moderating role of firm complexity on the IR-CTA relationship. Additionally, this study also envisages that CTA practices are not static. Hence, it also analyses the IR-CTA relationship across different intensity levels of CTA practices. The study focusses on listed companies in South Africa, the only country that has mandated IR practice so far.

Design/methodology/approach

Ordinary least square and quantile regressions are used to analyse archival and content analysis data for firms listed on the Johannesburg Stock Exchange from 2011 to 2017.

Findings

This study finds that IR quality negatively associates firms CTA practices. It further concludes that although firms’ transparency level increases due to IR quality, firm complexity reduces the significant negative relationship between IR and CTA practices. The findings also indicate that the IR-CTA relationship is not constant but instead differs across the CTA quantiles. At aggressive levels of CTA, no relationship is established between IR quality and firms’ CTA practices.

Practical implications

The findings provide a useful and more detailed description of the relationship between information quality and CTA practice, focussing on IR, an emerging reporting mechanism that is considered innovative and transparent.

Social implications

Considering the IR-CTA relationship found in this study, IR quality implementation may indirectly contribute to attaining sustainable development goals by reducing CTA practices.

Originality/value

This study examines the relationship between reporting quality and firms’ CTA practices from the perspectives of an emerging reporting mechanism, with a focus on South Africa, the only country that has mandated IR practice. Furthermore, the distributional mean effects of IR quality on firms’ CTA practices explored in this study extend beyond the usual IR-CTA relationship.