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Article
Publication date: 29 December 2022

Ala’a Azzam and Salem Alhababsah

This study aims to examine whether the age and tenure of the chair of the board of directors are related to research and development (R&D) investment in China.

Abstract

Purpose

This study aims to examine whether the age and tenure of the chair of the board of directors are related to research and development (R&D) investment in China.

Design/methodology/approach

This study uses A-share manufacturing firms that traded on the Shanghai and Shenzhen stock exchange between 2009 and 2018. This study uses OLS regressions, controls for self-selection bias, and uses an instrumental variable to alleviate the concern of endogeneity.

Findings

This study finds that chair tenure has a negative relationship with R&D investment. This study does not find a significant relationship between chair age and R&D investment.

Originality/value

This study contributes to corporate governance and strategic management literature by highlighting chair tenure as a new factor affecting R&D investments. It also adds a significant contribution to the limited literature on the chair’s role in strategic decisions. Moreover, companies that are eager to strengthen corporate governance and maintain sustained innovation may reconsider the chair tenure. Given that many proposals for board governance reform explicitly stress the importance of limiting board tenure, this study contributes to policymakers by providing evidence in support of these proposals.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 2 April 2024

Salem Alhababsah and Ala’a Azzam

This study aims to investigate the extent to which audit committee (AC) members who are formally independent are truly independent in practice, and what challenges they face that…

Abstract

Purpose

This study aims to investigate the extent to which audit committee (AC) members who are formally independent are truly independent in practice, and what challenges they face that undermine their independence.

Design/methodology/approach

The study utilizes semi-structured interviews with 18 members of the AC in Jordan.

Findings

The responses indicate that AC is mostly labelled as independent but fails to play an effective monitoring role due to different institutional factors. These factors include family ownership, government ownership, culture, compensation package and the lack of qualified directors.

Research limitations/implications

This research addresses this gap by presenting qualitative evidence from a civil law jurisdiction, featured by a developing financial market, a prevalence of family businesses, limited investor protection and a low risk of litigation. Additionally, this study aims to rectify the current imbalance between qualitative and quantitative studies on AC and bridge the gap between research conducted in developed countries and their developing counterparts.

Practical implications

This study offers valuable insights for regulatory authorities to engage in a more profound contemplation of extant governance regulations. Also, this study offers useful feedback for nomination committees of public companies, and it also has an implication for shareholders as they rely on independent directors to protect their investment. Furthermore, implications of the findings derived from this research possess the potential for generalization to other developing nations characterized by akin institutional contexts, notably encompassing the countries situated in the Middle East and North Africa (MENA) region.

Originality/value

This research introduces novel qualitative empirical evidence from a distinctive jurisdiction governed by civil law, thereby enriching the existing scholarly discourse. It also contributes to the AC literature by suggesting that it is not only the existence of conventionally independent ACs that affect the integrity of financial statements, but also the absence of social ties and other contextual obstacles.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 11 June 2024

Muhammad Turki Alshurideh, Alaa Alsharif, Enass Khalil Alquqa, Samer Hamadneh, Sulieman Al-Hawary, Ala’a Al-Momani and Hasan Khaled AlAwamleh

This study delves into the significant impact of entrepreneurial leadership (EL), organizational innovation (OI) and competitive advantage (CA) on the sustainability of…

Abstract

Purpose

This study delves into the significant impact of entrepreneurial leadership (EL), organizational innovation (OI) and competitive advantage (CA) on the sustainability of organizations in the Jordanian Islamic insurance sector. This study aims to unravel the intricate dynamics among these pivotal factors, highlighting their collective role in the sustained success and resilience of Islamic insurance companies in Jordan. By examining the synergistic interplay between EL, OI and CA, the research seeks to offer invaluable insights into cultivating a sustainable future for these institutions.

Design/methodology/approach

This study adopts a positivist, quantitative approach to investigate the relationships between EL, OI, CA and organizational sustainability (OS). Data collection was achieved through questionnaires in a cross-sectional analysis of these variables. Convenience sampling yielded 389 valid responses, an 81% response rate, ensuring a thorough understanding of the dynamics within this framework.

Findings

The findings from the study on Jordanian Islamic insurance companies highlight the critical role of EL in influencing organizational dynamics. The research establishes a positive relationship between EL and both OI and OS. Furthermore, it identifies a significant positive correlation between EL and CA, underscoring the importance of leadership in securing a competitive edge. This study also emphasizes the vital role of OI in bolstering OS and confirms that a strong CA enhances OS, reinforcing the interconnectivity of these essential organizational components.

Practical implications

This study provides important insights for professionals in the insurance sector, especially those within the Jordanian Islamic insurance industry. It emphasizes the crucial role of EL in fostering innovation, competitiveness and sustainability. By understanding the significance of EL, companies can adopt more dynamic and effective strategies in leadership, organizational development and strategic planning, thereby enhancing their overall performance and resilience.

Originality/value

By conceptualizing EL and OS as second-order constructs, this study seeks to provide a detailed understanding of how EL catalyzes OI, CA and sustainability in an organizational context. This approach contributes significantly to the broader discussion on EL and OS, particularly within the Arab region and specifically in Jordan, offering nuanced insights into their roles and interrelations in shaping organizational dynamics.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

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