Ahmed Othman Rashwan Kholeif

CEO duality and accounting-based performance in Egyptian listed companies: A re-examination of agency theory predictions

Purpose – This paper aims at re-examining the predictions of agency theory with regard to the negative association between CEO duality (i.e. the Chief Executive Officer, CEO, serves also as the board chairman) and corporate performance. It also examines the role of other corporate governance mechanisms (board size, top managerial ownership and institutional ownership) as moderating variables in the relationship between CEO duality and corporate performance. Methodology/approach – This paper uses the financial statements for the year 2006 of most actively traded Egyptian companies to examine these predictions of agency theory. Moderated Regression Analysis is used to analyse the empirical data. Findings – The findings indicated that the hypothesized relationships between CEO duality, the moderating variables and corporate performance have changed. For companies characterized by large boards and low top management ownership, corporate performance is negatively affected by CEO duality and positively impacted by institutional ownership. Research limitations/implications – A limitation of this study is the use of accounting-based performance measures because of the expected earnings management behaviours by CEOs. Practical implications – The Egyptian Capital Market Authority should adopt a reform programme to encourage Egyptian listed companies to modify their governance structures by increasing top management ownership and reducing board sizes before incorporating the new governance rules into the listing requirements. Originality/value of paper – The paper contributes to the literature on corporate governance and corporate performance by introducing a framework for identifying and analysing moderating variables that affect the relationship between CEO duality and corporate performance.

Structuration theory: reflections on its further potential for management accounting research

Purpose - – This paper aims to examine the potential of strong structuration theory in management accounting research. Design/methodology/approach - – The paper explains how the ontological perspective of strong structuration theory extends the work of Giddens and explores how the perspective overcomes a number of the limitations of existing management accounting research based on structuration theory. Findings - – Strong structuration theory develops and extends the work of Giddens, providing greater insights into the role of agents, improves our understanding of the diffusion of accounting practices through organisational fields, adds to our knowledge of how artefacts are used in the production and reproduction of organisational life and improves research design. Research limitations/implications - – Strong structuration theory provides clear guidance about management accounting case study research design, and suggests the potential for the accounting research community to engage more actively in debates about the development of structuration theory beyond the work of Giddens. Originality/value - – This paper provides a clear explanation of the ontology of strong structuration theory, its implications for research design and how it holds the potential to overcome many of the limitations of earlier management accounting studies deploying structuration theory.

Strong structuration theory in accounting research

Purpose The purpose of this paper is to discuss the interdisciplinary use of strong structuration theory and consider the impact of this for accounting research. The paper also provides an overview of the contributions advanced by the other papers in this special issue of Accounting, Auditing and AccountabilityJournal (AAAJ). Design/methodology/approach This paper draws together and identifies key issues and themes related to the rapidly evolving interdisciplinary use of strong structuration theory and considers the relevance of these issues to accounting research. Findings The paper highlights that there is a growing use of strong structuration theory in a number of disciplines, such as in healthcare, learning studies, management, migration studies and childcare as well as in accounting. Within the accounting discipline, whilst the interest began in management accounting and control, there are ongoing studies of the not-for-profit sector, social and environmental accounting, financial reporting standards and audit. Using strong structuration theory, researchers are more interested in the people (individually or collectively) and their analysis of their conduct and context. They are moving forwards from an overly static use of the quadripartite framework to a more dynamic approach that also includes the other important central elements of strong structuration that focus on the issue of agency in situ rather than on structure cut off from agency. Research limitations/implications The paper provides important insights into emerging issues and developments in strong structuration theory that have clear relevance to accounting research and practice as well as other disciplines. Originality/value This paper, and other contributions to this special issue of AAAJ, provide a basis and a research agenda for accounting scholars seeking to undertake empirical research using Stones’ strong structuration theory.

An Interpretive Approach for Data Collection and Analysis

This chapter has explained the research design and the methods used in the book. The researcher explicitly articulated the nature of the research problem and determined the ontological stance which led to the epistemological and methodological stances. The study is designed under an interpretive paradigm, which took the form of a multiple-case study and the analysis of a considerable amount of primary and secondary qualitative data. This enabled the researchers to interact closely with the participants and to explore issues in depth. Researchers should be aware that qualitative methodology is more applicable to develop an in-depth understanding of contextual-related problems. Qualitative design is more sensitive to context and flexible to embracing emerging new themes. The richness of data produced through using multiple-case studies helped better to investigate the phenomenon of the IAF adaptation as a response to the ERP systems implementation. The use of case studies provided greater internal and external validity than other quantitative methods would have done. Triangulation of methods was achieved through the use of semi-structured interviews, focus groups and non-participant observation. The qualitative content analysis was found to be the appropriate technique for analysing the data. A qualitative content analysis technique was deemed more desirable for this study as it preserves as much as possible the deep meaning of the qualitative data. Furthermore, it enabled the interpretation of all transcribed interviews, documents and notes of observation and relating each one to the whole in order to gain a holistic picture of the phenomenon. The trustworthiness strategies which were used in this research and the related procedures and techniques were found to be interlinked that fostered the coherence and validity of the research.

The Legitimacy of Internal Auditing Practice

This book draws on institutional theory to interpret IAF changes. It is used to interpret results as it examines how institutions influence organisational actors and provides a mean of analysis. The internal audit change process is viewed as a response to the new ERP system which constrains activities and shapes the cognitive processes of internal auditors, and corporate governance’s forces that influence specific configuration of the IAF. Between these two main aspects is the process of resolution of institutional misalignments through the strategic response to institutional pressures. While the majority of researchers work from a macro- or a micro-social perspective, the two may be best understood as complementary processes. ERP technologies exert pressures on the social organisation of work. Moreover, human actions are constrained by forces beyond the control of actors and often outside their awareness. Therefore, a comprehensive model of the relation between IT and organisations would address micro- and macro-forces at the same time.

Findings from Case Study 3—National Bank (NB)

These chapters presented the analysis and descriptions of each of the four cases of the empirical fieldwork answering the research questions. Prior to introducing the analysis of each case study, an overview of the organisation, the interviewees’ positions and analysis of documents were discussed. Two cases were conducted in international organisations, where one is a bank and the other is a manufacturing company. The other two cases were conducted in national organisations, where one is a bank and the other is a manufacturing company. The within-case analysis was used to investigate each case study independently to get familiar with each of the studied organisations’ particular experience. The analysis showed that each organisation provided different views of the phenomena under investigation. Each organisation responded differently; while there were some similarities between the international organisations and between the national ones, there were more similarities between organisations from the same sector. The proposed conceptual framework is proven to be valid in interpreting the IAF adaptations. The structure of the data analysis presentation was based on the main constructs of the conceptual research framework. To offer a rigorous examination of the findings, the next chapter offers a cross-case comparison, analysis and discussion to identify similarities and differences on the issues and to extract the most significant patterns, key themes and concepts.

Findings from Case Study 4—The International Bank (IB)

These chapters presented the analysis and descriptions of each of the four cases of the empirical fieldwork answering the research questions. Prior to introducing the analysis of each case study, an overview of the organisation, the interviewees’ positions and analysis of documents were discussed. Two cases were conducted in international organisations, where one is a bank and the other is a manufacturing company. The other two cases were conducted in national organisations, where one is a bank and the other is a manufacturing company. The within-case analysis was used to investigate each case study independently to get familiar with each of the studied organisations’ particular experience. The analysis showed that each organisation provided different views of the phenomena under investigation. Each organisation responded differently; while there were some similarities between the international organisations and between the national ones, there were more similarities between organisations from the same sector. The proposed conceptual framework is proven to be valid in interpreting the IAF adaptations. The structure of the data analysis presentation was based on the main constructs of the conceptual research framework. To offer a rigorous examination of the findings, the next chapter offers a cross-case comparison, analysis and discussion to identify similarities and differences on the issues and to extract the most significant patterns, key themes and concepts.

Findings from Case Study 2—the National Company (NC)

These chapters presented the analysis and descriptions of each of the four cases of the empirical fieldwork answering the research questions. Prior to introducing the analysis of each case study, an overview of the organisation, the interviewees’ positions and analysis of documents were discussed. Two cases were conducted in international organisations, where one is a bank and the other is a manufacturing company. The other two cases were conducted in national organisations, where one is a bank and the other is a manufacturing company. The within-case analysis was used to investigate each case study independently to get familiar with each of the studied organisations’ particular experience. The analysis showed that each organisation provided different views of the phenomena under investigation. Each organisation responded differently; while there were some similarities between the international organisations and between the national ones, there were more similarities between organisations from the same sector. The proposed conceptual framework is proven to be valid in interpreting the IAF adaptations. The structure of the data analysis presentation was based on the main constructs of the conceptual research framework. To offer a rigorous examination of the findings, the next chapter offers a cross-case comparison, analysis and discussion to identify similarities and differences on the issues and to extract the most significant patterns, key themes and concepts.

Findings from Case Study 1—The International Company (IC)

These chapters presented the analysis and descriptions of each of the four cases of the empirical fieldwork answering the research questions. Prior to introducing the analysis of each case study, an overview of the organisation, the interviewees’ positions and analysis of documents were discussed. Two cases were conducted in international organisations, where one is a bank and the other is a manufacturing company. The other two cases were conducted in national organisations, where one is a bank and the other is a manufacturing company. The within-case analysis was used to investigate each case study independently to get familiar with each of the studied organisations’ particular experience. The analysis showed that each organisation provided different views of the phenomena under investigation. Each organisation responded differently; while there were some similarities between the international organisations and between the national ones, there were more similarities between organisations from the same sector. The proposed conceptual framework is proven to be valid in interpreting the IAF adaptations. The structure of the data analysis presentation was based on the main constructs of the conceptual research framework. To offer a rigorous examination of the findings, the next chapter offers a cross-case comparison, analysis and discussion to identify similarities and differences on the issues and to extract the most significant patterns, key themes and concepts.

Cross-Case Analysis and Discussion

The findings of the cross-case analysis highlight similarities among the four case study companies; however, there were some differences. In this study, the specific feature adopted is the strategic responses (Oliver in Strategic responses to institutional processes 16 145–179, 1991) of IAF and organisations to the ERP systems, considering that IAFs are subject to rules and regulations to which they tend to conform so as to ensure their legitimacy. Institutional theory (DiMaggio and Powell in The iron cage revisited: institutional isomorphism and collective rationality, Chicago, University of Chicago, 506–542, 1991) is adopted to explain and understand the dynamics of the change in the IAF. The focus therefore was on explaining and understanding how the change in the IAF was shaped by both macro- and micro-forces.Some conclusion can be drawn from these case studies. Internal auditors look upon current technological and governance developments as a golden opportunity to raise the level of expectations about what they can offer and add in terms of value. Nevertheless, they have to be equal to the task. They need to widen their own horizons, keep abreast of rapidly changing technologies, regulations and legislation. The IAF needs to adapt as rapidly as the working environment, or it will lose its legitimacy. Recognising the need to change is easier; implementing strategic change is so far the greater challenge.