Semester

Summer

Date of Graduation

2024

Document Type

Dissertation

Degree Type

PhD

College

Chambers College of Business and Economics

Department

Accounting

Committee Chair

Kip Holderness

Committee Co-Chair

Scott Fleming

Committee Member

Scott Fleming

Committee Member

Mark Nigrini

Committee Member

Nancy McIntyre

Abstract

This dissertation is comprised of three studies that seek to determine the impact environmental, social, and governance (ESG) policies and initiatives have on different levels within the firm. The first study takes a page from business management research. It proposes a moderated mediation model of leader-member exchange and its effects on corporate entrepreneurship. Corporate entrepreneurship seeks to engage employees in bringing forward new ideas to enhance the firm’s position and aligns with the social aspects of ESG, especially those concerning employee stakeholder matters. This study finds that through psychological empowerment, high-quality relationships can bring forward increased engagement by individuals in corporate activity. It also finds that engaged employees are more secure in their positions and seek to improve their firm activities.

The second paper uses the theory of corporate reciprocity and framing to determine the impact of a firm’s corporate ESG preferences may have on their employees’ willingness to maximize their retirement savings plan contributions. The effect is measured through a logistic regression model in which framing and reward reciprocity are used to determine employee motivation to make retirement savings contributions in excess of the default participation rate. This study finds that the type of reward offered to employees can have a significant impact on their willingness to make contributions in excess of the default contribution rate. It does not find that framing has any impact on employee contribution rates, although there appears to be an issue with the framing measure within the experiment.

The final study examines corporate governance factors, including gender diversity, at the board and audit committee levels and seeks to determine the impact this may have on the likelihood of financial statement fraud in large African banks. This study utilizes a set of financial ratios that are weighted together to form what is known as the Beneish M-Score. This score determines the likelihood that financial statement fraud may exist within a firm’s financial statements. Board size, audit committee effectiveness, and board gender diversity are measured against the likelihood of financial statement fraud. The study finds that board size has a significant impact on reducing the likelihood of financial statement fraud. However, a surprising reversal shows that gender diversity on the board of directors may actually increase financial statement fraud. The effectiveness of the board’s audit committee had no significant effect on the likelihood that financial statement fraud exists.

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