Internal capabilities, national governance and performance in African firms

Tunyi, Abongeh A.; Agyei‐Boapeah, Henry; Areneke, Geofry; Agyemang, Jacob

doi:10.1016/j.ribaf.2019.04.009

Cited by 20 publications

(15 citation statements)

References 57 publications

(90 reference statements)

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“…For example, Barasa et al [17] used clustered robust standard errors logistic regression to model firm-level resources' interface with regional institutional quality in East Africa and showed that the institutional environment dictates the effect on firms' resources, observing a positive moderate effect of institutional quality on firm-level resources. Their findings support those of [18], who found that national governance quality moderates the link between firms' internal capabilities and performance in Africa, championing the need to strengthen institutions. It was [19] that made an interesting observation of how firm characteristics such as size and age influence the effect of the institutional environment on firm exportation in emerging economies.…”

Section: Introductionsupporting

confidence: 73%

Determinants of Sustainable Open Innovations—A Firm-Level Capacity Analysis

Gyamfi

Sein

2021

Sustainability

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Institutional constraints impede firms’ open innovation. They have been a challenge, obstructing growth and sustainable development. Research on open innovation has shown that the quality of institutions essentially affects innovation in firms. Hence, prior research has made efforts to incorporate the quality of institutions into open innovation analysis. We can use a series of analyses to examine the impact of corruption, the tax system, and other indicators on firm innovation performance. However, developing economies, such as countries in sub-Saharan Africa, represent a specific group of countries that have long been perceived as those mostly deficient in the rule of law, with poor regulatory quality and a great deal of corruption. In these countries, it is also possible to see a lower number of studies, as the inability to obtain quality data to perform empirical analyses can often limit researchers. Nevertheless, employing data from the World Bank’s 2019 Enterprise Survey, this research aimed at exploring the determinants of sustainable open innovation as well as the effect of institutional quality on firms’ capacity utilization and process innovation through a PLS structural equation model analysis. Our research showed interesting findings, such as the fact that the quality of institutions significantly affects firms’ use of OI instruments and capacity utilization. This research also provides for the novelty of the analysis of capacity utilization in an open innovation analysis. The results support the hypotheses that low institutional quality negatively affects firms’ implementation of inbound open innovation instruments, and that there is a strong and positive effect of low institutional quality on firms’ capacity utilization. In addition, we confirm the premise that firms’ implementation of inbound open innovation instruments has a positive and significant influence on firms’ process innovation.

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Section: Introductionsupporting

confidence: 73%

Determinants of Sustainable Open Innovations—A Firm-Level Capacity Analysis

Gyamfi

Sein

2021

Sustainability

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“…For robustness, this study used a two-step generalised method of moments (GMM) regression, and the purpose is to enhance the efficiency of the estimates and ensure consistent estimation by eliminating the issues arising from weaker instruments (Tunyi et al , 2019; Areneke and Tunyi, 2020; Salem et al , 2021). Also, the adoption of GMM regression resolves any endogeneity issues.…”

Section: Resultsmentioning

confidence: 99%

The impact of audit characteristics, audit fees on classification shifting: evidence from Germany

Usman

Ezeani

Salem

et al. 2022

IJAIM

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Purpose This paper aims to examine the relationship between audit characteristics (ACs) and audit fees on classification shifting (CS) among German-listed non-financial firms. Design/methodology/approach Using a sample of 130 German-listed (Deutscher Aktienindex, Mid Cap dax and Small caps Index) firms from 2010 until 2019, this study investigated the impact of audit committee size, audit committee meetings, audit committee financial expertise and audit fees on CS. Findings This study found the evidence of CS, meaning that managers misclassify recurring expenses in the income statement into non-recurring expenses to inflate core earnings. This study also found that the audit fee ratio, audit committee financial expertise and frequency of audit meetings are negatively associated with CS among German-listed firms. However, the audit committee size does not influence CS. Research limitations/implications This study will help the board improve its internal auditing practices and provide essential information to investors to assess how ACs affect the quality of financial reporting. Originality/value This study focused on a bank-oriented economy, i.e. Germany, with lower investor protection and low transparency. This paper documents new evidence on how ACs and audit fees impact CS among German firms, as most of the previous studies on CS mainly focused on market-oriented economies such as the UK and the USA.

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“…As noted earlier, strong institutions and enforcement mechanisms tend to complement the efficacy of IFRS (see, for example, Elbannan, 2011;and Nnadi & Soobaroyen, 2015). While the African continent is generally regarded as having weak institutions, it is important to note that there is considerable heterogeneity amongst countries in terms of the effectiveness of underlying national institutions (Agyei-Boapeah & Machokoto, 2018;Tunyi, Agyei-Boapeah, Areneke, & Agyemang, 2019). As shown in Figure 2, 7 for example, Nigeria and Ivory Coast have a very low (negative) commitment to the rule of law.…”

Section: [Please Insert Figure 1 Here]mentioning

confidence: 88%

IFRS adoption and firm value: African evidence

et al. 2020

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We examine the impact of the adoption of International Financial Reporting Standards (IFRS) on firm value using a sample of African listed firms selected over the 2000-2015 period. Our results show that the adoption of IFRS positively impacts firm value. We further find that the impact of IFRS adoption on firm value is more pronounced in environments where there is a greater commitment to the rule of law. Moreover, the increase in firm value is more pronounced for firms with a higher degree of financial constraints. Finally, additional results suggest that the benefits of fully implementing IFRS are higher than those arising from partial/modified adoption. Our results are robust to controlling for other factors that affect firm value and to alternative sampling procedures.

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Internal capabilities, national governance and performance in African firms

Cited by 20 publications

References 57 publications

Determinants of Sustainable Open Innovations—A Firm-Level Capacity Analysis

Determinants of Sustainable Open Innovations—A Firm-Level Capacity Analysis

The impact of audit characteristics, audit fees on classification shifting: evidence from Germany

IFRS adoption and firm value: African evidence

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