What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

Value-Relevance of Banks' Fair Value Disclosures under SFAS No. 107

This study provides an extensive critical review of the theoretical perspectives applied on corporate social responsibility (CSR) disclosure literature. From a CSR standpoint we review and discuss, in detail, legitimacy theory, stakeholder theory, social contract theory, and signalling theory to identify the situations that suit each of these perspectives. The findings show that there is no universal theory applicable on corporate social responsibility disclosure for all situations or societies. While legitimacy theory suggests CSR disclosures are part of a process of legitimation, stakeholder theory offers an explanation of CSR accountability to stakeholders. Legitimacy theory seems to be more suitable for organizations working in developed countries, on the other hand, stakeholder theory appears to be most suitable for organizations working in developing countries; where a corporation can manage its stakeholders and the pressure to comply with existing legislation is less as compared to the developed countries. Social contract theory is appropriate for developed/emerged economies, as CSR disclosure exists due to an implicit social contract between business and society, which implies some indirect obligations of business towards society. Signalling theory will suit a situation where firms are competing for resources. A firm willing to demarcate from other firms will engage in more CSR practices. It is also important that the signal reaches the target audience by reporting on CSR.

/pdf/theoretical-perspectives-on-corporate-social-responsibility-4o7ig8dz0q.pdf

Theoretical Perspectives on Corporate Social Responsibility Disclosure: A Critical Review

Corporate Governance-An International Review

Purpose – The purpose of this paper is to consider the determinants of web‐based corporate reporting by French‐listed firms. Design/methodology/approach – The paper is based on a literature review of the determinants of web‐based corporate disclosures and is both descriptive and explicative. It analyzes the use of the internet to disseminate corporate information and examines the extent of web‐based corporate disclosure by developing a set of disclosure indexes. To test the authors' hypotheses, an OLS regression framework was estimated on a sample of 529 French‐listed firms in 2005. Findings – Descriptive analysis shows that French firms are using the internet to disseminate existing rather than timely information. The results show that large‐sized firms, large‐audited firms, firms featuring a dispersed ownership structure, those that have issued bonds or equities and IT industry firms extensively used the web to disclose information to their shareholders. The results also show that voluntary disclosures are more suited for the internet than mandatory disclosures. Research limitations/implications – The study does not cover all information provided on web sites, particularly those about the impact of IFRS on companies' accounts. Practical implications – The findings are useful to both managers, wishing to meet actual and potential investors' informational needs and to investors wishing to invest in a richer informational environment and to better assess firm value. Originality/value – This paper provides a better understanding of the choice of the internet to release information in the French context, where internet corporate reporting is not standardized as in the USA and Canada.

The Determinants of Web-based Corporate Reporting in France

Purpose – The purpose of this paper is to provide an extensive and critical overview of the theoretical perspectives used in the accounting disclosure literature including economic theories, political and social theories. Design/methodology/approach – The paper reviews and discusses in details the positive accounting theory (PAT), agency theory, signalling theory, political economy theory (PET), stakeholder theory, legitimacy theory and contingency theory to identify the situations suit each of these perspectives. Findings – The main finding shows that there is no universal theory applicable for all situations or societies. For example, PAT is probably used when a corporation believes that its primary responsibility is to use its resources and engage in activities designed to maximise its profits. On the other hand, the PET seems to better explain why some corporations appear to respond to government or public pressure for information about their social impact. The agency theory provides the required fram...

Theoretical perspectives on corporate disclosure: a critical evaluation and literature survey

Based on the institutional theory, the purpose of this paper is to examine institutional factors that affect the development of accounting practices in Jordan.,The current study surveys the perceptions of 306 participants and 20 interviewees.,First, the early formation of accounting practices in Jordan has been affected by the legacy of Ottoman Empire’s and the British Colony’s accounting systems. Second, the results indicate that government of Jordan (regulatory frameworks), pressures from international donors and large economic organizations (politico-economic factors), education and training/development (cultural inputs), and the efforts to attract foreign investments and getting access into the international fund and trade (economic factors) have been influential influences in the development of accounting practices and the adoption of International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) in Jordan. Finally, the findings reveal that “Secrecy” construct (a culture input) has been a problematic in the implementation of IAS/IFRS.,The current study provides policy implications for the Jordanian policy makers and for other developing countries that are working hard to improve the quality of financial reporting of their business entities. Finally, the authors suggest some great opportunities for future research.,First, this paper contributes to Jordan’s policy developments including fundamental strategies in terms of attracting foreign investments to expand the economy and the international and regional trade. Second, it fills a gap in the international accounting research by empirically assessing how institutional factors affect the development of accounting practices in emerging country such as Jordan.

Factors affecting the development of accounting practices in Jordan: an institutional perspective

The Internet has revolutionized the way individuals and companies access and share information. Companies can now disseminate more information on a timely manner to stakeholders. Using mixed theoretical perspectives on corporate reporting including legitimacy, stakeholder, and signalling theories, this study investigates the extent and determinants of corporate reporting on the Internet by firms listed on the official market of the Stock Exchange of Mauritius (SEM). We use content analysis to examine information disclosed on firms’ websites. Data is collected from 34 companies’ websites including includes companies on the Official Market of the SEM. A disclosure index consisting of 52 items (mandatory and voluntary items) is constructed based on previous studies and adapted to the Mauritian context is used to measure the extent of Internet Financial Reporting (IFR). The results indicate that company size, board size, and liquidity are significant explanatory variables for the level of IFR. However, we find no significant relationship between other variables (leverage, profitability, and audit quality) and the level of IFR. To the best of our knowledge, no prior studies on drivers of IFR in Mauritius is available. Therefore this study contributes to the scarce literature on IFR in the African region and Mauritius. The findings of this study are expected to benefit several stakeholders including firms, legislators, and investors. It provides a broader picture of the characteristics of firms which use the Internet to report financial and non-financial information. Firms subject to the study can benchmark their IFR practices with the average of all firms and take appropriate actions to enhance their visibility to investors. Regulators and legislators can compare the IFR performance of Mauritian listed companies with emerging stock markets to issue guidelines for enhancing disclosure on the Internet. Investors require information to make informed investment decisions. The findings of this study can guide them as to which corporate characteristics are associated with higher Internet disclosures, thus saving them time in screening investment options.

Determinants of internet financial reporting in African markets: the case of Mauritius

We investigate the relationship between internal performance evaluation and the ability of external market participants to assess the effectiveness of management’s quality strategy for a sample of ...

Mohamed A. Omran

Papers

Theoretical Perspectives on Corporate Social Responsibility Disclosure: A Critical Review

Theoretical perspectives on corporate disclosure: a critical evaluation and literature survey

Factors affecting the development of accounting practices in Jordan: an institutional perspective

Determinants of internet financial reporting in African markets: the case of Mauritius

Non-financial performance measures disclosure, quality strategy, and organizational financial performance: a mediating model