Purpose This study examines board cultural diversity's (BCD) impact on corporate environmental, social and governance (ESG) performance, and its variation across markets and economic conditions. Design/methodology/approach We use an 18-country panel dataset of 5,294 firm-year observations from 2009–2020 from the Thomson Refinitiv database for firm-level variables and World Bank for country-level data. The analysis employs ordinary least squares and dynamic system generalised method of moments estimators. Propensity score matching is used to address potential endogeneity. Findings The study finds BCD positively affects ESG performance across model specifications. The effect is stronger for environmental and social dimensions, with a limited impact on governance. When cultural diversity is more evenly distributed across board members, it influences governance. Finally, ESG performance is highly persistent, with past performance significantly shaping current outcomes. Research limitations/implications This study contributes to corporate governance theory by empirically showing that BCD positively impacts ESG performance. This deepens our understanding of how diverse leadership structures enhance firms' sustainability practices and transparency. BCD's influence on ESG reporting is a gradual, long-term process rather than having an immediate effect. Practical implications Investors should carefully consider directors' appointment, given their influence on ESG performance. BCD may be more effective as a strategic, forward-looking measure rather than a quick fix for current ESG performance. Originality/value We provide international evidence on ESG performance, particularly BCD's influence. Further, ESG performance is best modelled as a dynamic process influenced by past performance and evolving over time.

Purpose The growing reliance of non-financial companies on financial assets, a phenomenon known as financialization, may impact firm’s financial performance by diverting financial resources away from productive investments. Therefore, we investigate the linear and non-linear relationship between non-financial companies’ financialization and financial performance, particularly financial valuation and distress, with a specific focus on the Indian market. Further, we also examine the moderating role of national governance on the relationship between financialization and financial performance. Design/methodology/approach The empirical study uses unbalanced panel data from the BSE 200 index, covering 156 non-financial companies between 2018 and 2024. Data are collected from Bloomberg and the World Bank governance indicators. Panel data regression models with firm- and time-fixed effects are estimated and robust standard errors are applied. In addition, interaction and non-linear specifications are employed to examine the relationships between the variables considered in this study. Findings The findings suggest that the financialization of non-financial companies impacts financial performance negatively, causing a decline in market valuation and exacerbating financial distress. However, robust national governance mitigates the adverse effects of financialization on a firm’s valuation, although its impact on financial stability is limited. The study offers insight into the necessity of a balanced allocation of resources towards operating activities while providing insights into the relationship between financialization, governance and firm-level outcomes. The non-linear model suggests moderate levels of financialization may be neutral or beneficial, but excessive financialization significantly undermines firm value. The findings underscore the importance of effective national governance in mitigating overfinancialization. Research limitations/implications The article informs the research fraternity on the dynamics of financialization. Practical implications For managers, the study provides checkpoints in financialization. To policymakers, it provides insights into the efficacy of robust governance in the market for regulated intervention of the company’s financial activities and promotes productive endeavours. To investors, it guides on the implications of rising financialization in emerging markets. Originality/value The current study provides a fresh perspective on the financialization under the efficacy of national governance in emerging markets.

Purpose The family literature considers the founder’s presence in the business an important factor that increases the firm’s value. Nevertheless, the individuals involved in the team of founder since inception also have potent influence over the value of firm. We investigate the role of family founder on firm value, and moderating influence of the trusted individuals (which we called companions) on this relationship. Design/methodology/approach We utilize a sample of non-financial firms listed on the Pakistan Stock Exchange. To test the hypotheses, the ordinary least squares regression analysis was applied. Further, a generalized method of moments estimation, two stage least squares and difference in difference analysis was employed to check for the robustness of the results. Using the lens of agency theory and social identity theory, our findings indicate that the presence of the family founder positively influences the firm’s value. Moreover, our results suggest that the founder’s companions play a pivotal role in the improvement of firm value, and therefore their presence further strengthens this relationship. Findings Using the lens of agency theory and social identity theory, our findings indicate that the presence of the family founder positively influences firm value. Moreover, our results suggest that the founder’s companions play a pivotal role in enhancing firm value, and therefore their presence further strengthens this relationship. Research limitations/implications In addition to that, our study is not without limitations. However, these limitations may serve as future directions for the upcoming researchers. Being an emerging economy, the culture of Pakistan not only differs from developed countries, but also differ from other emerging countries due to various cultural, social and demographic factors. Future studies may replicate this model in other emerging and developed markets to determine the generalizability of the results. Practical implications Our study enriches the family business literature by highlighting the positive influence of family founders on firm value, and prominent role of the founder’s companions on the firm value which was hitherto unaddressed. Originality/value In the context of emerging economies, our findings provide insight to the investors and policy makers into the family founder’s strategic and social behavior.

Purpose This study aims to fill a gap in the literature regarding the digitalization of accounting processes (DAP) and its impact on small and medium enterprises (SMEs) performance. Current research primarily focuses on large organizations, leaving SMEs comparatively understudied. It remains unclear if DAP directly influences SME performance or if the exploitation dimension of organizational ambidexterity mediates this relationship. This study investigates both the direct and mediated effects of DAP on SME business performance. Design/methodology/approach This study employs the ambidexterity theory and the technology-organization-environment (TOE) framework to present a conceptual framework that establishes a connection between DAP and SME performance, mediated by the influences of exploitation and exploration. To assess our hypotheses, we collected cross-sectional data from 254 SMEs in Oman. The analysis was conducted using structural equation modeling, implemented with Smart PLS. Findings The findings suggest that DAP has a positive impact on both the exploitation and performance of SMEs. Additionally, exploitation not only directly affects performance but also partially mediates the relationship between DAP and performance. Research limitations/implications Despite the significance of this study, numerous limitations must be recognized. The research is confined to SMEs in Oman, which may limit the generalizability of the results. Subsequent research may utilize this approach in many cultural and geographic settings, including developed economies, to investigate potential discrepancies in DAP impact. Secondly, although the study emphasizes exploitation as a mediator, additional organizational characteristics, including leadership style, digital culture and strategy alignment, may potentially affect the DAP performance link and warrant further examination. Thirdly, while quantitatively robust, the use of statistical data fails to adequately represent the varied perspectives of SME managers throughout the digitalization process. Practical implications The framework examined in this study offers practical guidance for decision-makers and policymakers involved in SME development. It underscores the significance of digitalizing accounting processes, which empowers these enterprises to enhance operational efficiencies by leveraging their existing resources and capabilities, ultimately resulting in improved business performance. These insights can inform practitioners in crafting policies and strategies that aim to ensure the sustainability of SMEs. Originality/value This study contributes to the growing body of knowledge on digital transformation and its impact on organizational performance. It offers a distinctive perspective on the connection between DAP and SME performance. The uniqueness of this study lies in its presentation and testing of a framework that intersects two theories from separate domains: the TOE framework in technology adoption and the ambidexterity theory in strategic management. Moreover, the study examines the potential mediating role of exploitation in the relationship between DAP and SME performance.

Purpose This study aims to explore how the relationships between informal and formal controls enhance or hinder management control in the care sector. Design/methodology/approach An interpretivist approach has been used to explore the relationships between informal and formal controls in small independent UK hospices. Data were collected from semi-structured interviews and documents from five case hospices and analysed by applying Knowles’ (2023) framework. Findings This paper finds that where a formal control has a corresponding informal control, the relationship between them is enhanced. However, where there are relationships between formal and informal controls that do not correspond to each other, they have the potential to hinder each other. Such tensions can be ameliorated through stakeholder discussions. Research limitations/implications While the conclusions can be applied across sectors, the research was undertaken within the voluntary care sector. Interviews were limited to key stakeholders within the board of trustees and senior management teams. Practical implications This research concludes that stakeholders should explicitly discuss how an organisation balances formal and informal controls, recognising the importance of both in holistic management control. Social implications Informal control is pertinent in voluntary organisations, where social values underpin their mission and where corporate social responsibility is important. Originality/value The relationships between informal and formal controls can be both enhancing and hindering. This research applies Knowles’ (2023) framework to examine how these interrelate and how tensions between them can be resolved. This can be used by stakeholders to discuss the balance to be struck between informal and formal controls explicitly.

Purpose This article provides a systematic review of the implementation of Artificial Intelligence (AI) and Robotic Process Automation (RPA) in the accounting and auditing professions. It uniquely and holistically identifies the benefits, challenges, drivers, and endorsement levels of implementing these emerging technologies and investigates gaps in the literature to prioritize future studies. Design/methodology/approach The systematic review method was chosen to critically assess the body of literature following Tranfield et al. (2003) systematic review approach. The years 2016–2022 have been considered to gain insights into recent advancements in AI and RPA deployments. A rigorous selection process was designed to identify the relevant literature and ensure the quality and standard of the reviewed results. Findings The study shows that the potential benefits of implementing AI and RPA can be categorized into four categories: monetary, quality reporting, operational, and customer-related benefits, and the challenges and limitations can be categorized into four categories: ethical, regulatory, societal, and technical challenges. Initial studies generally show that accountants and auditors are not fully endorsing these implementations, mainly due to concerns about job loss and the trustworthiness of these technologies. Research limitations/implications The coding process of the examined articles was done manually, which could introduce subjectivity despite efforts to prevent this through multiple coders and rounds of review. Also, the methodological approach used may be criticized for eliminating articles with a journal ranking below 2. M, the review only included articles written in English, which may exclude relevant studies. Moreover, the review did not examine if certain regions were over-represented in the sample and a recommendation based on this has been made in the future research directions section. Practical implications Our systematic review shows that auditors, their clients, and regulatory bodies are working independently. This highlights the importance of a framework or a mechanism to govern the relationship between them and build common expectations to scale up the utilization of RPA and AI in a well-regulated profession. This review would help audit firms and organizations to build strategies to better understand the vital factors and limitations towards scaling up the deployment of such technologies. Originality/value This review can be seen as a guide for managers and policy makers and offers future research direction for scholars. Our study facilitates (1) understanding which type of technology to utilize, given the different potential benefits of these emerging technologies in a well-regulated profession, and (2) realizing the factors holding back the potential of scaling up the adoption of AI and RPA.

Purpose Organisations, including universities, are under increasing pressure to demonstrate how they contribute to addressing the societal challenge of sustainability in the Anthropocene. This research offers insight into how university employees understand and discharge their sustainability conduct in their work context and within the framework of organisational management control systems. The paper highlights some of the challenges that arise at the point where employees and control systems intersect and the sustainability conduct of employees that follows. Design/methodology/approach The research is a case study of a UK university, with primary qualitative data collected from 36 semi-structured interviews, in addition to secondary data from publicly available reports. Findings The research identifies how personal conduct and actions drive some of the unseen sustainability controls that exist in an organisation. Additionally, the paper highlights some of the daily challenges when interacting with management control systems faced by employees in a university setting. Research limitations/implications The findings of this study would benefit developers and researchers of formal sustainability MCSs, by highlighting some of the “every day” practical challenges facing employees. There is a complex range of interlinked issues to consider when designing formal MCSs. Unseen “informal” activities and action should also be considered when researching and establishing formal sustainability MCSs. Practical implications Employees are conscious about behaving in sustainable ways and conserving resources to minimise waste, but existing formal management control systems are not consistently supporting optimum sustainability practices, decision-making and conduct. Originality/value SST (Stones, 2005, 2015) has been mobilised using the quadripartite framework and conduct analysis, revealing some of the “reasons for conduct” that precipitate sustainability acts and actions. In so doing it has highlighted how, within SST, responsibility and accountability are implicitly present. It has also contributed to the findings by helping to locate examples of how MCSs constrain, direct or enable (intentionally or not) the sustainability behaviours of employees.

Purpose Sustainability reporting has become essential for organisational transparency and accountability. However, regulatory compliance poses challenges, particularly in ensuring consistency and coherence in reporting practices. Management accounting and control systems (MACSs), designed to help organisations achieve their goals, may support efforts to meet these challenges. This paper explores how MACSs can facilitate compliance with sustainability reporting regulations, drawing on a case study of a leading French energy industry company. Design/methodology/approach Grounded in the management accounting and control literature and informed by an institutional theoretical lens, this qualitative study relies on semi-structured interviews and analysis of official sustainability documents from the case study, spanning the period 2021–2023. Findings This study sheds lights on how traditional MACSs facilitate compliance with sustainability reporting regulations. Particularly, planning, cultural, and administrative controls contribute as a strategic response to regulatory reporting demands. Within the case-study, MACSs are actively shaped to address sustainability reporting challenges, such as resource allocation, interdepartmental coordination, and system adaptation. This involves defining, educating, and vesting strategies for institutionalising MACSs to address sustainability reporting challenges. Research limitations/implications Theoretically, this study contributes to the ongoing discussion in the accounting literature about the role of traditional MACSs in supporting sustainability reporting challenges (Bezuidenhout et al., 2023; Bui and de Villiers, 2018). It demonstrates that these systems can play a foundational role in enabling sustainability reporting, even before bespoke sustainable MACSs can be institutionally embedded through specific strategies, building on and extending the findings of Carungu et al. (2021). Specifically, we extend the application of the Malmi and Brown (2008) framework by showing how planning, administrative, and cultural controls are selectively mobilised to meet the demands of sustainability-related disclosures. Additionally, by integrating Lawrence and Suddaby’s (2006) institutional work perspective, we highlight how actors engage in strategies to create, maintain, and disrupt control systems, thus advancing research at the intersection of institutional theory and sustainability control practices. This dual-theoretical contribution addresses the gap identified in prior studies, which have called for deeper insights into how MACSs evolve under regulatory pressure. Practical implications From a practical perspective, the findings offer actionable guidance for organisations facing regulatory complexity and seeking to improve their sustainability reporting practices. Integrating financial and non-financial data within existing MACSs can enhance transparency and support regulatory compliance. Particularly in organisations subject to sustainability reporting regulations (e.g. CSRD), our findings provide a practical framework to assess and redesign MACSs. By identifying how specific control elements can be adapted or newly introduced to meet reporting obligations, we offer a roadmap for aligning internal systems with external compliance requirements. Moreover, organisations can use MACSs to monitor sustainability performance, align reporting with financial controls, and promote cross-functional collaboration to ensure data reliability and consistency. Social implications Social implications of our research extend to broader conversations surrounding corporate accountability. As organisations increasingly embrace sustainability reporting as a way to communicate their environmental and social impact, findings from our study contribute to fostering greater transparency and trust between organisations and society at large. Originality/value This research provides insights into how MACSs support compliance with sustainability reporting regulations. By focusing on a French energy sector leader, it provides a nuanced understanding of how organisations manage the complexity of sustainability reporting in a tightly regulated environment. It also contributes to the academic discourse by examining how MACSs support organisations in meeting sustainability reporting regulations– even though recent literature often emphasises the need for more innovative approaches.