• Access to medicine in developing countries: instituting state obligation over corporate profit

      YUSUF, HAKEEM OLAYINKA; Omoteso, Kamil; University of Derby (Indiana University Press, 2021)
      This paper investigates the divergence between the objectives of the State in ensuring the right to health of citizens and the profit maximization objective of pharmaceutical corporations in relation to access to, and supply of, medicine. This is pertinent given the rising cost of medicines and unmet needs, particularly in developing countries. This paper analyses the contention between pharmaceutical corporations’ profit drive and the State’s welfare obligation. There is a need to bridge the gap between business and human rights and this can be achieved by combining the concepts of ‘business ethical responsibility’ and corporation’s contributions to ‘common good’ with the jurisprudence on the right to health. This is imperative in view of the impact of the business of pharmaceutical corporations on vulnerable populations particularly in, but not limited to, developing countries.
    • Accountability of transnational corporations in the developing world: The case for an enforceable international mechanism.

      Yusuf, Hakeem O.; Omoteso, Kamil; University of Birmingham; Coventry University (Emerald, 2017)
      Purpose: This paper contends that the dominant voluntarism approach to the accountability of Transnational Corporations (TNCs) is inadequate and not fit-for-purpose. It argues for the establishment of an international legal mechanism for securing the accountability of TNCs particularly in the context of developing countries with notoriously weak governance mechanisms to protect all relevant stakeholders. Design/methodology/approach: The study adopts insights from the fields of management and international law to draw out synergies from particular understandings of corporate governance, corporate social responsibility and international human rights. The governance challenges in developing countries with regard to securing the accountability of TNCs is illustrated with the Nigerian experience of oil-industry legislation reform. Findings: The specific context of the experiences of developing countries in Africa on the operations of TNCs particularly commends the need and expedience to create an international legal regime for ensuring the accountability of TNCs. Originality/value: Mainstream research in this area has focused mainly on self and voluntary models of regulation and accountability that have privileged the legal fiction of the corporate status of TNCs. This article departs from that model to argue for an enforceable model of TNC accountability based on an international mechanism.
    • Accountability of transnational corporations in the developing world: The case for an enforceable international mechanism.

      Omoteso, Kamil; Yusuf, Hakeem O.; Coventry University; University of Birmingham (2017-03-06)
      Purpose: This paper contends that the dominant voluntarism approach to the accountability of Transnational Corporations (TNCs) is inadequate and not fit-for-purpose. It argues for the establishment of an international legal mechanism for securing the accountability of TNCs particularly in the context of developing countries with notoriously weak governance mechanisms to protect all relevant stakeholders. Design/methodology/approach: The study adopts insights from the fields of management and international law to draw out synergies from particular understandings of corporate governance, corporate social responsibility and international human rights. The governance challenges in developing countries with regard to securing the accountability of TNCs is illustrated with the Nigerian experience of oil-industry legislation reform. Findings: The specific context of the experiences of developing countries in Africa on the operations of TNCs particularly commends the need and expedience to create an international legal regime for ensuring the accountability of TNCs. Originality/value: Mainstream research in this area has focused mainly on self and voluntary models of regulation and accountability that have privileged the legal fiction of the corporate status of TNCs. This article departs from that model to argue for an enforceable model of TNC accountability based on an international mechanism.
    • The adoption of IPSAS (accrual accounting) in Indonesian local government: a neo-institutional perspective

      Boolaky, Pran; Mirosea, Nitri; Omoteso, Kamil; Griffith University; University of Derby (Routledge, 2019-10-02)
      This study investigates the speed and drivers of IPSAS adoption in Indonesia. Using data from 205 local government entities, the results show while the interaction between auditors and representatives of opposition on the council has more impact on the speed of adoption than with the councillors representing the government, the timing of the council meeting has delayed the adoption of IPSAS accrual. Government grant, Supreme Audit Office, councillors and religious beliefs are the isomorphic drivers of IPSAS adoption. Our results support the hypotheses that the three institutional pressures (coercive, mimetic and normative) influence the speed of IPSAS adoption.
    • BIM-based deconstruction tool: Towards essential functionalities

      Akinade, Olugbenga O.; Oyedele, Lukumon O.; Omoteso, Kamil; Ajayi, Saheed O.; Bilal, Muhammad; Owolabi, Hakeem A.; Alaka, Hafiz A.; Ayris, Lara; Henry Looney, John; Bristol Enterprise, Research and Innovation Centre; et al. (2017-06)
      This study discusses the future directions of effective Design for Deconstruction (DfD) using BIM-based approach to design coordination. After a review of extant literatures on existing DfD practices and tools, it became evident that none of the tools is BIM compliant and that BIM implementation has been ignored for end-of-life activities. To understand how BIM could be employed for DfD and to identify essential functionalities for a BIM-based deconstruction tool, Focus Group Interviews (FGIs) were conducted with professionals who have utilised BIM on their projects. The interview transcripts of the FGIs were analysed using descriptive interpretive analysis to identify common themes based on the experiences of the participants. The themes highlight functionalities of BIM in driving effective DfD process, which include improved collaboration among stakeholders, visualisation of deconstruction process, identification of recoverable materials, deconstruction plan development, performance analysis and simulation of end-of-life alternatives, improved building lifecycle management, and interoperability with existing BIM software. The results provide the needed technological support for developing tools for BIM compliant DfD tools.
    • Combating environmental irresponsibility of transnational corporations in Africa: an empirical analysis.

      Yusuf, Hakeem O.; Omoteso, Kamil; University of Birmingham; Coventry University (Taylor & Francis, 2015-12-15)
      Environmental irresponsibility is one of the most prominent issues confronting host communities of transnational corporations (TNCs) engaged in the production of economic goods and, sometimes, services. Drawing mainly on stakeholder theory, combined with legitimacy theory, this article addresses how host communities in Africa combat the challenge of environmental irresponsibility of TNCs. To illustrate the dimensions and dynamics of the challenge, this paper examines the experience of despoliation of Ogoniland by the oil giant Shell in Nigeria. The analysis draws attention to the significance of the role of individuals and civil society groups in securing accountability of one of the most formidable fronts of economic globalisation. The analysis is particularly relevant to the experience of environmental irresponsibility in the context of weak governance structures.
    • Combating environmental irresponsibility of transnational corporations in Africa: an empirical analysis.

      Yusuf, Hakeem O.; Omoteso, Kamil; University of Birmingham; Coventry University (Taylor and Francis., 2015-12-15)
      Environmental irresponsibility is one of the most prominent issues confronting host communities of transnational corporations (TNCs) engaged in the production of economic goods and, sometimes, services. Drawing mainly on stakeholder theory, combined with legitimacy theory, this article addresses how host communities in Africa combat the challenge of environmental irresponsibility of TNCs. To illustrate the dimensions and dynamics of the challenge, this paper examines the experience of despoliation of Ogoniland by the oil giant Shell in Nigeria. The analysis draws attention to the significance of the role of individuals and civil society groups in securing accountability of one of the most formidable fronts of economic globalisation. The analysis is particularly relevant to the experience of environmental irresponsibility in the context of weak governance structures.
    • CSR communication research: A theoretical-cum-methodological perspective from semiotics

      Yekini, Kemi; Omoteso, Kamil; Adegbite, Emmanuel; Coventry University (Sage, 2019-05-07)
      Despite the proliferation of studies on corporate social responsibility (CSR), there is a lack of consensus and a cardinal methodological base for research on the quality of CSR communication. Over the decades, studies in this space have remained conflicting, unintegrated and sometimes overlapping. Drawing on semiotics – a linguistic-based theoretical and analytical tool, our article explores an alternative perspective to evaluating the quality and reliability of sustainability reports. Our article advances CSR communication research by introducing a theoretical-cum-methodological perspective which provides unique insights into how to evaluate the quality of CSR communication. Particularly, we illustrate the application of our proposed methodology on selected UK FTSE100 companies. Our two-phased analysis employed the Greimas Canonical Narrative Schema and the Semiotic Square of Veridiction in drawing meanings from selected sustainability/CSR reports. In addition, we present a distinctive CSR Report Quality Model capable of guiding policy makers and firms in designing sustainability/CSR reporting standards.
    • The development of accounting practices and the adoption of IFRS in selected MENA countries.

      Booloaky, Pran Kirshansing; Omoteso, Kamil; Ibrahim, Masud Usman; Adelopo, Ismail A.; Griffith University; Coventry Unviversity; University of the West of England (Emerald, 2018-08-13)
      Purpose The purpose of this paper is to examine the level of accounting development and the adoption of IFRS in the four foremost economies in the Middle East and North Africa (MENA)—Egypt, Jordan, Libya and UAE. Through the lens of institutional theory, the study investigates the impact of economic, political, legal and cultural institutions on the development of these countries’ accounting practices and their readiness to use IFRS. Design/methodology/approach This research uses accounting development indices obtained from current literature as well as recent World Economic Forum and UNCTAD reports to examine the development of accounting in these MENA countries and their inclination to adopt IFRS. Findings The study identifies a number of impediments to the development of accounting practices and adoption of IFRS in these countries. It also reveals that three of the four MENA countries (Egypt, Jordan and UAE) could be placed on a level playing field with their principal trading partners (the US, the UK, Germany and Italy) given the formers’ business environments, methods of raising finance and levels of professional accounting practices. Research Implications/limitations Although limited to only four jurisdictions, findings from the study have important implications for investors and parties that are interested in improving the value relevance of the information presented by firms especially in a globalised economy with increasing cross-listing. Originality/value This study extends the frontier of knowledge on the development of accounting and IFRS adoption by focusing on the MENA region. It is the first effort that the authors are aware of to adopt such a multifarious approach.
    • Differential market valuations of board busyness across alternative banking models

      Elnahas, Marwa; Omoteso, Kamil; Salama, Aly; Trinh, Vu Quang; Newcastle University; University of Derby (Springer, 2019-09-03)
      This study comparatively assesses the influence of board busyness (i.e., multiple directorships of outside directors) on stock market valuations of both Islamic and conventional banks. For a sample of listed banks from 11 countries for the period 2010-2015, results show that board busyness is differentially priced by investors depending on the bank type. In conventional banks, board busyness is significantly and positively valued by the stock market. This result suggests that investors perceive some reputational benefits arising from a busy board (e.g., extended industry knowledge, established external networks or facilitation of external market sources). In contrast, we find no supporting evidence on the market valuations of board busyness in Islamic banks. This result might be attributed to, both, the complex governance structure and the uniqueness of the business model which require additional effective monitoring, relative to that employed in conventional banking. Our results also show that investors provide significantly low market valuations for busy Shari’ah advisory board which acts as an additional layer of governance in Islamic banks. Findings in this study offer important policy implications to international banking studies and regulations governing countries with dual-banking systems.
    • Disassembly and deconstruction analytics system (D-DAS) for construction in a circular economy

      Akanbi, Lukman A.; Oyedele, Lukumon O.; Omoteso, Kamil; Bilal, Muhammad; Akinade, Olugbenga O.; Ajayi, Anuoluwapo O.; Davila Delgado, Juan Manuel; Owolabi, Hakeem A.; Coventry University (Elsevier, 2019-03-15)
      Despite the relevance of building information modelling for simulating building performance at various life cycle stages, Its use for assessing the end-of-life impacts is not a common practice. Even though the global sustainability and circular economy agendas require that buildings must have minimal impact on the environment across the entire lifecycle. In this study therefore, a disassembly and deconstruction analytics system is developed to provide buildings’ end-of-life performance assessment from the design stage. The system architecture builds on the existing building information modelling capabilities in managing building design and construction process. The architecture is made up of four different layers namely (i) Data storage layer, (ii) Semantic layer, (iii) Analytics and functional models layer and (iv) Application layer. The four layers are logically connected to function as a single system. Three key functionalities of the disassembly and deconstruction analytics system namely (i) Building Whole Life Performance Analytics (ii) Building Element Deconstruction Analytics and (iii) Design for Deconstruction Advisor are implemented as plug-in in Revit 2017. Three scenarios of a case study building design were used to test and evaluate the performance of the system. The results show that building information modelling software capabilities can be extended to provide a platform for assessing the performance of building designs in respect of the circular economy principle of keeping the embodied energy of materials perpetually in an economy. The disassembly and deconstruction analytics system would ensure that buildings are designed with design for disassembly and deconstruction principles that guarantee efficient materials recovery in mind. The disassembly and deconstruction analytics tool could also serve as a decision support platform that government and planners can use to evaluate the level of compliance of building designs to circular economy and sustainability requirements.
    • Does Regulatory Environment affect Earnings Management in Transitional Economies? An Empirical Examination of the Financial Reporting Quality of Cross-Listed Firms of China and Hong Kong

      Nnadi, Matthias; Omoteso, Kamil; Yu, Yi; Cranfield University; Coventry University (Emerald Group Publishing Limited., 2015)
      This chapter provides evidence on the impact of regulatory environment on financial reporting quality of transitional economies. This study compares the financial reporting quality of Hong Kong firms which are cross-listed in mainland China with those of Hong Kong firms cross-listed in China using specific earnings management metrics (earnings smoothing, timely loss recognition, value relevance and managing towards earnings targets) under pre- and post-IFRS regimes. The financial reporting quality of Chinese A-share companies and Hong Kong listed companies are examined using earnings management measures. Using 2007 as base year, the study used a cumulative of −5 and +5 years of convergence experience which provide a total of 3,000 firm-year observations. In addition to regression analyses, we used the difference-in-difference analysis to check for the impact of regulatory environments on earnings management. Through the lens of contingency theory, our results indicate that the adoption of the new substantially IFRS-convergent accounting standards in China results in better financial reporting quality evidenced by less earning management. The empirical results further shows that accounting data are more value relevant for Hong Kong listed firms, and that firms listed in China are more likely to engage in accrual-based earnings management than in real earnings management activities. We established that different earnings management practices that are seemingly tolerable in one country may not be tolerable in another due to level of differences in the regulatory environments. The findings show that Hong Kong listed companies’ exhibit higher level of financial reporting quality than Chinese listed companies, which implies that the financial reporting quality under IFRS can be significantly different in regions with different institutional, economic and regulatory environments. The results imply that contingent factors such as country’s institutional structures, its extent of regulation and the strength of its investor protection environments impact on financial reporting quality particularly in transitional and emerging economies. As such, these factors need to be given appropriate considerations by financial reporting regulators and policy-makers interested in controlling earnings management practices among their corporations. This study is a high impact study considering that China plays a significant role in today’s globalised economy. This study is unique as it the first, that we are aware of, to compare real earnings activities against accrual-based earnings management in pre- and post-IFRS adoption periods within the Chinese and Hong Kong financial reporting environments, distinguishing between cross-listed and non-cross-listed firms.
    • The impact of religiosity on earnings quality: International evidence from the banking sector

      Omoteso, Kamil; University of Derby (Elsevier, 2020-10-02)
      We examine the impact of religiosity on earnings quality, utilising a global sample of 1,283 listed banks headquartered in 39 countries and covering the period 2002–2018. Using instrumental variables two-stage least squares regressions, we demonstrate that religiosity has a significant positive impact on banks’ earnings quality. We further show that the impact of religiosity becomes more pronounced among banks headquartered in countries where religion is an important element of national identity and in countries with weak legal protection. We show that the effects of religiosity are more intense during the global financial crisis period. Overall, these findings support the notion that high religiosity tends to reduce unethical activities by managers and can function as an alternative control mechanism for minimising agency costs. Our empirical investigation is robust to alternative model sample specification.
    • International standards on auditing in the international financial services centres

      Boolaky, Pran; Omoteso, Kamil; Coventry University (2016-06-06)
      Purpose- This paper aims to (1) investigate the position of International Financial Services Centres (IFSCs) in the International Federation of Accountants’ countries’ status on International Standards on Auditing’s adoption and (2) assess the factors influencing ISA adoption in these Centres. Design/methodology/approach- This research drew its data from various sources, including the World Economic Forum dataset, the World Bank Report on Observation of Standards and Codes, the World Development Indicators and the Economic Intelligence Unit Report on Democracy Index on fifty countries classified as IFSCs. The adoption status is then regressed on a number of variables of interest. To establish that our results are robust, we used a combination of different regression techniques comprising OLS, multinomial and logistic regressions. Findings- In addition to GDP growth and education level, this paper adds new evidence to the literature by reporting the positive association between the level of democracy and the enforcement of securities’ regulation on ISA adoption. It argues that political, economic, social and legal factors impact on ISA adoption in the IFSCs. Research limitations/implications- The sample size is limited to 50 from a population of 99 IFSCs because of lack of data. Some of the independent variables are basically archival data. Reliance is placed on WEF with regard to the measurement of protection of minority interest, securities and exchange regulations, and on Economic Intelligence Unit for democracy index. Practical implications- This paper stresses the importance of ISAs in IFSCs and the role of political power and the enforcement of securities laws on the adoption of ISA. Originality/value-This study fills the research gap relating to the absence of empirical studies on ISA adoption and its drivers in IFSCs.
    • International standards on auditing in the international financial services centres: What matters?

      Boolaky, Pran; Omoteso, Kamil; Griffith University; Coventry University (Emerald, 2016-06-06)
      Purpose This paper aims to investigate the position of international financial services centres (IFSCs) in the International Federation of Accountants’ countries’ status on the adoption of International Standards on Auditing (ISA) and assess the factors influencing ISA adoption in these centres. Design/methodology/approach This research drew its data from various sources, including the World Economic Forum (WEF) data set, the World Bank Report on Observation of Standards and Codes, the World Development Indicators and the Economic Intelligence Unit Report on Democracy Index on 50 countries classified as IFSCs. The adoption status is then regressed on a number of variables of interest. To establish that the results are robust, the authors used a combination of different regression techniques comprising OLS, multinomial and logistic regressions. Findings In addition to the gross domestic product growth and education level, this paper adds new evidence to the literature by reporting the positive association between the level of democracy and the enforcement of securities’ regulation on ISA adoption. It argues that political, economic, social and legal factors impact on ISA adoption in the IFSCs. Research limitations/implications The sample size is limited to 50 from a population of 99 IFSCs because of the lack of data. Some of the independent variables are basically archival data. Reliance is placed on WEF with regard to the measurement of protection of minority interest, securities and exchange regulations and on the Economic Intelligence Unit for democracy index. Practical implications This paper stresses the importance of ISAs in IFSCs and the role of political power and the enforcement of securities laws on the adoption of ISA. Originality/value This study fills the research gap relating to the absence of empirical studies on ISA adoption and its drivers in IFSCs.
    • Is there a trade-off between accrual-based and real earnings management activities in the presence of (fe) male auditors?

      Owusu, Andrews; Mansour Zalata, Alaa; Omoteso, Kamil; Elamer, Ahmed A; University of Coventry; University of Southampton; University of Derby; Brunel University London (Springer, 2020-11-13)
      Prior research suggests that the presence of high quality auditors (i.e. proxied by audit firm characteristics) constrains accrual-based earnings management, but it inadvertently leads to higher real activities manipulation. We investigate whether such trade-off exists between accrual-based and real earnings management activities in the presence of female or male auditors. We use a sample of UK firms for the period 2009 to 2016 and find that firms audited by female auditors do not resort to a higher level real activities manipulation when their ability to engage in accruals management is constrained. Overall, our results suggest that the benefits of hiring female auditors (i.e. less accrual-based earnings management) are overwhelmingly higher than the costs they might bring to the client firms (i.e. higher real activities manipulation).
    • Reinforcing users’ confidence in statutory audit during a post-crisis period: An empirical study.

      Aziz, U.A.; Omoteso, Kamil; De Montfort University; Coventry University (Emerald Group Publishing Limited, 2014-11-04)
      Purpose – The purpose of this paper is to examine the factors that are perceived as important for the statutory audit function to restore confidence in the financial statements, its value relevance and decision usefulness in the aftermath of the financial crisis. Design/methodology/approach – This research used a structured questionnaire to collect data from practising accountants, auditors and accounting academics within the UK. A factor analysis was undertaken to examine the potential inter-correlations that could exist between different factors obtained from the literature. The analysis reduced these variables into the more important factors which were subsequently modelled in a logistic regression analysis. Findings – The paper identified, as critical factors for enhancing statutory audits, “a continuously updated accounting curriculum”, “expansion of the auditor's role”, “frequent meetings between regulators and auditors”, “mandatory rotation of auditors”, “limiting the provision of non-audit services”, “knowledge requirements from disciplines other than accounting” and “encouraging joint audits”. It is hoped that addressing these issues might improve confidence in the audit profession, thereby reinforcing its value relevance. Research limitations/implications – The study's findings imply that professional accountancy bodies, accounting educators and accounting firms will need to incorporate the key factors identified in this study into their curriculum and training schemes. However, the generalisability of these findings might be limited as the research data were primarily obtained from UK accountants alone. Originality/value – This study extends the frontiers of knowledge on critical factors that could reinforce users’ confidence in the statutory audit function and have implications for policy and practice.
    • Revisiting International Public Sector Accounting Standards Adoption in Developing Countries

      Boolaky Doorgakunt, Lakshi D; Omoteso, Kamil; Mirosea, Nitri; Boolaky, Pran Krishansing; University of Derby (Taylor & Francis, 2021-06-06)
      Based on a comprehensive review of recent studies on IPSAS adoption around the globe, we develop in this article a conceptual model to examine alternative predictors of adoption for developing countries. Drawing from this framework, we develop a rigorous econometric modelling on the impact of legal, political and accounting environments in the developing countries’ drive for IPSAS adoption. Contrary to what existing literature projects, our study reveals that a country’s IFRS and ISA experience is more important and significant drivers of IPSAS adoption compared to IFRS adoption. Likewise, political system, regulatory enforcement, lenders and borrowers’ rights and the level of corruption in a country also influence IPSAS adoption.
    • Threats to auditor independence: Evidence from Iran

      Fashami, Ashkan Mirzay; Boolaky, Pran Krishansing; Omoteso, Kamil; University of Derby; Griffith University, Brisbane, Australia (Athens Institute for Education and Research, 2019-12-23)
      This paper aims to examine threats to auditor independence in Iran. A mixed questionnaire, including both quantitative closed-ended questions and an open-ended qualitative question, is developed to investigate threats to auditor independence. Moreover, thematic analysis is used to triangulate the results against financial media articles throughout 1994 – 2014. Findings suggest that while bribery, non-audit services, and economic condition are key threats to auditor independence in Iran, gifts and presents do not compromise independence given the Iranian culture. This study contributes to a better understanding of auditor independence in Iran, which may apply to other regional settings. Moreover, it provides some suggestions to improve the current Iranian Audit Organisation’s auditor independence framework. (JEL M32)