IT governance is a framework that manages the efficient use of information technology within an organization, focusing on strategic alignment, risk management, resource management, performance ...measurement, compliance, and value delivery. This study investigates the role of IT governance in integrating artificial intelligence (AI) in accounting and auditing operations. Data were collected from 228 participants from Saudi Arabia using a combination of convenience sampling and snowball sampling methods. The collected data were then analyzed using structural equation modeling. Unexpectedly, the results demonstrate that AI, big data analytics, cloud computing, and deep learning technologies significantly enhance accounting and auditing functions’ efficiency and decision-making capabilities, leading to improved financial reporting and audit processes. The results highlight that IT governance plays a crucial role in managing the complexities of AI integration, aligning business strategies with AI-enabled technologies, and facilitating these advancements. This research fills a gap in previous research and adds significantly to the academic literature by improving the understanding of integrating AI into accounting and auditing processes. It builds on existing theoretical frameworks by investigating the role of IT governance in promoting AI adoption. The findings provide valuable insights for accounting and auditing experts, IT specialists, and organizational leaders. The study provides practical insights on deploying AI-driven technology in organizations to enhance auditing procedures and financial reporting. In a societal context, it highlights the broader implications of AI on transparency, accountability, and trust in financial reporting. Finally, the study offers practitioners, policymakers, and scholars valuable insights on leveraging AI advancements to optimize accounting and auditing operations. It highlights IT governance as an essential tool for effectively integrating AI technologies in accounting and auditing operations. However, successful implementation encounters significant organizational challenges like organizational support, training, data sovereignty, and regulatory compliance.
The present study examines the moderation effect of board independence change on the relationship between board characteristics, related party transactions and financial performance of Indian listed ...banks over 10 years from 2010 to 2019. While board size, independence, diligence, and remuneration were taken to represent board characteristics, all key personnel and subsidiaries' transactions were considered measures for related party transactions. On the other hand, the financial performance of banks was measured by two accounting-based measures (return on assets and profit after tax) and two market-based measures (earning per share and Tobin Q). The results revealed that board independence change has a significant negative effect on financial performance. Further, the results indicated that board independence change moderates positively and significantly the relationship between related party transactions and financial performance. The findings also showed that board independence change had a moderating effect that significantly and negatively weakens board size and effectiveness, negatively influencing banks' profitability. Unlike other studies, this study uniquely uses board independence change as a moderator between board characteristics, related party transactions, and several measures of banks' financial performance. The limited research highlighting this issue, where Indian banks have encountered several challenges in the last few years, has motivated the present study to bridge the existing gaps in the strand literature. Therefore, this research opens useful insights and has beneficial implications for policymakers, bankers, financial analysts, and academicians.
The main aim of this study is to investigate the moderating effect of Information Technology governance on the relationship between the use of Financial Technologies and sustainability performance. ...The study used non-probability convenience and snowballing sampling approaches to collect data. The study collects a sample of 210 respondents targeting bankers in various positions from the Indian commercial banks. The study used structural equation modeling to estimate the results. The findings highlight the complex links between IT governance, FinTech, and sustainability-related concerns, emphasizing the importance of a comprehensive approach to sustainability. Banks can establish more complete strategies for sustainable growth by considering IT governance, FinTech, and ESG factors. The findings reveal that IT governance is critical in shaping banks’ strategic planning towards sustainable activities, evolution of Fintech, and technological advancements, which in turn influence significantly and positively sustainability performance. IT governance leads to increased adoption of Fintech and enhances sustainability performance, contributing to the growth of economic sustainability. Banks that strategically utilize IT governance to foster Fintech and sustainability performance improvements likely experience economic gains due to their focus on sustainable and technologically driven practices. The findings emphasize the importance of balancing sustainability efforts and suggest that banks that embrace IT governance while emphasizing ESG factors are more likely to embrace better sustainability performance. The findings offer advice for bankers and policymakers on how to strategically utilize technology to improve sustainability and economic performance while considering potential trade-offs.
The present study examines the impact of corporate governance mechanisms on financial reporting quality under Indian GAAP and Indian Accounting Standards (Ind. AS). A sample of 97 companies listed on ...the Bombay Stock Exchange is selected. Corporate governance mechanisms have been considered as independent variables, and financial reporting quality is the dependent variable. Corporate governance is measured by board effectiveness (board size, independence, diligence, and expertise), audit committee attributes (size, independence, diligence, and expertise), foreign ownership, and audit quality. Descriptive statistics, correlation, and OLS regression are conducted to estimate the results. The study results reveal that board characteristics and audit committee attributes, except for audit committee diligence, have a significant effect on financial reporting quality. However, the impact of board diligence and audit committee attributes is negative. Foreign ownership has no contribution to financial reporting quality, but audit quality has a significant effect. The findings of the study have considerable implications for regulators, policymakers, managers, investors, analysts, and academicians. More emphasis should be given to compliance with Ind. AS, and an oversight body for compliance with Ind. AS should be established. AcknowledgmentThis publication was supported by Deanship of Scientific Research, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia.
The study aims to investigate the relationship between ownership structure (OS) and financial performance (FP) in non-financial listed companies operating in Oman and the UAE, using panel data from ...2012 to 2021. The results revealed that Tobin's Q (TQ) is positively and significantly affected by managerial ownership and family ownership. In addition, return on asset (ROA) is found to have a negative and significant relationship with managerial ownership, while return on equity (ROE) is found to have a positive and significant relationship with family ownership. Comparing Oman and the UAE, the results indicated that all ownership variables tested have superior influence on FP. This study also documented that the moderating effect of the audit committee has a more positive relationship between managerial ownership, ownership concentration, and family ownership on firm performance in both countries. This study fills existing gaps in contemporary literature on OS in emerging markets by dissecting the outcome of OS on FP of companies in Oman and the UAE. To the best of our knowledge, most of the prior studies on OS have not examined the moderating effect of audit committee on the relationship between OS and FP. Our study on the OS in Oman and UAE listed firms shows that OS have an important outcome on market-based calculation. This study expands our understanding of the impact of OS on FP in emerging markets in two countries in the Gulf Cooperation Council (GCC), a region of growing economic importance that has not received adequate research attention.
Abstract
This research aims to investigate the factors that determine the intention to continue using digital accounting systems (ICU-DAS) among small and medium-sized enterprises (SMEs). With the ...increasing adoption of digital technologies in accounting, it has become imperative to understand the factors that influence the decision of SMEs to continue using these systems. By examining the continuance intention, this study contributes to the existing literature on technology acceptance and provides valuable insights for SMEs and accounting professionals. The information systems success model (ISSM), the technology acceptance model (TAM), the expectation-confirmation model (ECM), and a model that combines ISSM, TAM, and ECM were all used and compared in this study to look into the factors that affect ICU-DAS. The research methodology involves a quantitative approach utilising a survey questionnaire distributed among SMEs that implement digital accounting systems. The survey is designed to gather data on the key determinants of continuance intention, including system quality (SQ), information quality (IQ), perceived usefulness (PU), perceived ease of use (PEU), satisfaction (S), and confirmation (CON). The collected data were analysed via structural equation modelling (SEM). The findings revealed that the synthesised model had higher explanatory power than ISSM, TAM, and ECM. The findings implied that SQ, IQ, PU, PEU, and satisfaction are significant factors in ICU-DAS. The research concluded with a set of implications and directions for future research.
The current study examines the determinants of profitability of Indian commercial banks. The analysis is conducted over a period of 10 years in which the Indian banking sector has gone under ...different changes such as demonetization and issues related to banking sector sustainability and banking sector frauds. The analysis is based on balanced panel data over a period ranging from 2008 to 2017 for 69 commercial Indian banks. Profitability of Indian banks is measured by two proxies, namely, return on assets (ROA) and return on equity (ROE), whereas bank size, assets quality, capital adequacy, liquidity, operating efficiency, deposits, leverage, assets management, and the number of branches are used as bank‐specific factors. Further, a set of macroeconomic determinants such as gross domestic product, inflation rate, interest rate, exchange rate, financial crisis, and demonetization are used as independent variables.
Stationary test along with pooled, fixed, random effect models and panel correction standard error are used in this study. The results revealed that bank size, the number of branches, assets management ratio, operational efficiency, and leverage ratio are the most important bank‐specific determinants that affect the profitability of Indian commercial banks as measured by ROA. Furthermore, among the bank‐specific determinants, the results revealed that bank size, assets management ratio, assets quality ratio, and liquidity ratio are found to have a significant positive impact on ROE. With regard to the macroeconomic determinants, the results revealed that the inflation rate, exchange rate, the interest rate, and demonization are found to have a significant impact on ROA. However, in the case of ROE, the results show that all macroeconomic determinants except demonization have a significant impact on the bank's profitability as measured by ROE.
The purpose of this study is to provide a comprehensive systematic literature review (SLR) of factors influencing crisis management (CM). The study attempts to assess the main areas that have been ...linked to and studied CM, and the research outlets that have been provided these research. The study adopts a qualitative approach and uses SLR method to collect relevant data. The study surveyed 223 studies from different research outlets, including the most reputed publishers; Emerald, Wiley, Elsevier, Springer, Taylor & Francis, SAGE, and Inderscience. The extracted articles are categorized into 8 areas based on their effect on CM. The most important factors are communication and social media, which have 66 studies with 4039 citations, leadership which have 40 studies with 2315 citations, followed by knowledge, governance, information technology, strategic planning, and professional entities, which have 38, 24, 23, 16, and 16 manuscripts with 2109, 1738, 301, 548, and 160 citations, respectively. The current study provides an open insight for academicians and researchers on the main areas of CM investigated by prior studies. It provides a novel contribution and comprehensive understating through highlighting what has been done and what is left to be done in respect to crisis management.
Purpose
The purpose of this study is to examine the impact of country-level governance on sustainability performance, taking into account the effect of sustainable development goals (SDGs) and board ...characteristics.
Design/methodology/approach
This study uses panel data analysis using fixed effect models to investigate the influence of country-level governance on sustainability performance while considering the effect of SDGs and board characteristics. The sample comprises 8,273 firms across 41 countries during the period spanning from 2016 to 2021. The sample is divided into two categories based on the score of SDGs.
Findings
The findings of this study show that countries with high SDGs score have better overall country-level governance and board attributes which have a statistically significant positive impact on sustainability performance. However, for those countries with low SDGs, political stability shows a statistically insignificant and negative impact on sustainability performance, while government effectiveness indicates a statistically insignificant positive impact on sustainability performance.
Originality/value
This study contributes to the literature by providing empirical evidence on the relationship between country-level governance, SDGs, board characteristics and sustainability performance. The study also highlights the importance of considering the effect of SDGs on the relationship between country-level governance and sustainability performance. The findings of this study could be useful for policymakers and firms in improving their sustainability performance and contributing to sustainable development.
This study aims to investigate the relationship between corporate governance (CG) compliance and corporate performance in Jordan. We develop a corporate governance index (CGI) and investigate its ...impact on firms' performance. The index consists of 32 unique internal governance attributes that were built based on Jordanian governance Code. This study used a quantitative research method using panel dataset analysis of 672-firm year observations. Fixed effects regression model was employed to analyse the governance-performance nexus. To infer correctly, we re-examine the main analysis using a well-developed dynamic generalized method of moments (GMM) estimator to overcome possible endogeneity concerns. Consistent with prior studies in developed and developing countries in the governance literature, our findings robustly disclose that compliance with CG guidelines is a determinant of corporate performance of listed firms in Amman Stock Exchange (ASE) during period 2009-2016. The results indicate that a better degree of compliance with the Jordanian code and guidelines is positively and significantly related with better performance of publicly listed firms. This study contributes theoretically and practically to growing but under-developed literature on governance compliance and corporate performance in developing countries. Therefore, this research has useful implications for developing countries, stock market authorities, policymakers, firms' directors, and academicians.
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