Taking on the Ethical Obligation of Technology Competency in the Academy: An Empirical Analysis of Practice-Based Technology Training Today

Today's lawyers must be technologically competent, per Model Rule of Professional Conduct 1.1. Law schools and law firms were keenly aware of this expectation and summarily responded. While law firms offered more professional development opportunities, law schools began offering various courses focusing on technology skills. These courses have increased and evolved over time as the curriculum has changed with the technology. First, we present the evolution of ethical requirements surrounding legal technology competency and offer a description of the lawyering competency models most discussed today. We then review data about technology trends at the most innovative law firms and examine curricular offerings in technology or technology-related fields at American Bar Association-accredited law schools. Next, we offer a comparative analysis of multiple empirical studies to determine whether key areas of technology training were reflected in the legal education curriculum and were sufficient to meet ABA ethical expectations. Finally, we recommend solutions law schools may implement to increase technology instruction, services, and infrastructure to meet ethical standards. ABA-accredited schools should implement these recommendations in light of ABA Standard 301(a), the forecasted changes planned by the National Conference of Bar Examiners, and the new virtual practice landscape set by the COVID-19 pandemic.

The economic implications of the COVID-19 outbreak on tourism industry: empirical evidence from Turkey

The novel coronavirus (COVID-19) pandemic has caused tremendous fear and uncertainty and affected health, economy, and social life in an unprecedented form worldwide. Yet, the level of knowledge on its economic implications is very limited. Therefore, it is of paramount importance to explain the health, social, and economic impacts of COVID-19. Because the tourism is one of the most affected industries by the pandemic, this study aims to explain the effects of COVID-19 cases and deaths, global fear, and government responses on Turkey's tourism industry. Empirical findings show that the tourism industry reacts negatively to new cases, number of deaths, and global fear measures. Also, government containment and health measures and economic supports positively affect the tourism industry. Furthermore, government stringency policies drive down the tourism industry's performance. The findings of this study provide significant implications for tourism and travel firms, policy makers, and future research.

Auditors' Competence, Audit Fee, Quality Control, and Audit Quality

The COVID-19 pandemic limits public social activities due to the virus spreading in overcrowded areas. It becomes a challenge for Public Accounting Firms to provide quality financial statement audit services to auditees. Therefore, this study aimed to analyze the influence of auditors' competence as well as audit fee and quality control on audit quality during the COVID-19 pandemic. Data were collected through a survey filled by 100 auditors at Public Accounting Firms (KAP) in Indonesia. The survey was distributed through Google Forms for two months in 2021. The data were processed and analyzed using the Partial Least Square (PLS) method with Smart PLS 3 software. The results indicated that auditors' competence and audit quality control positively affect audit quality. Meanwhile, the audit fee does not significantly affect audit quality. This study implies that Public Accounting Firms should optimize employees' soft skills in recruitment and training activities. Additionally, the firms are expected to improve supervision and increase the auditors' work commitment to strengthen audit engagement quality. © 2023 SCMS Group of Educational Institutions. All rights reserved.

M&A activity during the COVID-19 pandemic

We investigate whether the COVID-19 pandemic initiated merger waves at the aggregate and industry levels. The COVID-19 pandemic coincides with economic shocks, wide adoption of new technologies, and volatility in stock and energy markets, all potential triggers of restructuring activity. Our sample covers 104,464 acquisition deals of US targets from 2012 to 2022. We identify 37 industry-level merger waves. Twenty-three merger waves start during the COVID-19 pandemic. Eighty percent of the deals during the pandemic were part of an industry merger wave. This concentration of industry waves drove an aggregate merger wave starting on April 2020.

The impact of risk-taking and auditor characteristics on value creation in pre-Covid 19 and post-Covid 19 pandemic: MRN

PurposeThis study aims to investigate the impact of risk-taking and auditor characteristics on value creation in companies listed on the Tehran Stock Exchange. In addition, it investigates the moderator role of auditor characteristics in the impact of risk-taking on value creation, especially in pre-Covid 19 and post-Covid 19 pandemic.Design/methodology/approachThe information about 199 company in 2014–2021 was examined. In the present study, in accordance with the related theoretical literature and the importance of auditor specialization, auditor tenure and auditor reputation, these factors were considered as the auditor characteristics.FindingsThe present findings based on the generalized least squares (GLS) method showed that risk-taking positively affects the value creation. The auditor characteristics (auditor specialization, auditor tenure and auditor reputation) have a significant positive effect on the value creation. Furthermore, the auditor characteristics enhance the impact of risk-taking on value creation. The results of generalized method of moments method and robust regression analysis are consistent with the GLS results. To take into account the Covid-19 conditions, the data were divided into pre-Covid-19 and post-Covid-19 years. The results showed that auditor characteristics moderate the impact of risk-taking on value creation in pre-Covid 19 and post-Covid 19.Originality/valueThe study highlights the role of auditor characteristics in the value creation, especially in the emerging market. Given that Covid-19 has seriously damaged global economic well-being and has put companies at a double risk, the present findings can be useful for managers, investors and the international community, and help company managers make risk-taking policies and select auditors with appropriate characteristics.

Impression management and leadership in failing or failed business-to-business firms during and post-COVID-19: Empirical insights from Africa

This paper is one of the pioneering studies to specifically link COVID-19 pandemic with business failures in African B2B firms and the role of leadership and impression management in mitigating business failures. Based on the qualitative data from Ghana and Nigeria, our findings show that although B2B firms in emerging markets are agile and proactive, the COVID-19 pandemic triggered the process of business decline leading to failure in some cases. Particularly, the lack of technological know-how and the absence of online business activities made it difficult for B2B firms to continue operations. Further, we found that case B2B African firms needed a balance of market and non-market strategies to avoid failure caused by the pandemic. Study findings also indicate that despite the challenges, the COVID-19 pandemic presented opportunities to B2B firms in emerging markets. Flexible working and employee management are found to be instrumental in avoiding business failure. Finally, our findings show that, despite the absence of institutional support in African emerging markets, several case B2B firms quickly adopted digital technologies to communicate with partners and manage online business operations.

Emotional robustness in times of crisis: the effects of venture funding on the digital communication styles of entrepreneurs

PurposeEntrepreneurial communication describes the communication activities of entrepreneurs and is an essential tool for entrepreneurs to build relationships. However, there is a lack of research regarding how entrepreneurs adapt their communication styles in times of crisis. Nevertheless, entrepreneurial communication during a crisis is essential because entrepreneurs must continue communicating with their stakeholders and be visible. In this regard, communication has the central aim of preventing the startup from suffering any damage that may result from the crisis. Thus, the present paper explores potential shifts in the communication styles of entrepreneurs during the first wave of the COVID-19 pandemic.Design/methodology/approachThe authors examined the digital footprints of 780 entrepreneurs based in the USA on the social network Twitter. This study used a longitudinal dataset with the software Linguistic Inquiry and Word Count (LIWC) to analyze 110,283 tweets sent pre-crisis and during the first wave of COVID-19.FindingsThe results of the exploratory analysis revealed a connection between crisis and both analytical thinking and emotional responses. In the case of emotions, the results also suggest that entrepreneurs who had already received funding from venture capital investors remained emotionally robust during the crisis, as evidenced by the expression of more positive emotions compared to entrepreneurs without funding.Originality/valueThis study contributes to the understanding of entrepreneurial communication and adds the context of an exogenous shock to this research stream. Furthermore, this study highlights the effects of venture funding on the digital communication style of entrepreneurs, especially in the context of expressed emotions, and suggests emotional robustness for these entrepreneurs.

Does COVID-19 pandemic spur digital business transformation? Evidence from selected MENA countries

PurposeIn the light of high reliance on digital technology to mitigate the consequences of the coronavirus disease 2019 (COVID-19) pandemic and its containment measures, this study investigates the factors influencing firms' decision to adopt digital technologies during COVID-19 in four Middle East and Northern African (MENA) countries, namely, Egypt, Jordan, Morocco and Tunisia.Design/methodology/approachThe study used the International Labour Organization (ILO)/Economic Research Forum (ERF) COVID-19 - MENA Monitor Enterprise Survey (CMMENT), comprising 5,480 firms, surveyed during 2020-2021. The empirical model is estimated using the linear probability model (LPM) to address the problem of unobserved heterogeneity between firms, countries, and time.FindingsThe results revealed that firm characteristics, such as firm size and foreign ownership, encourage digital transformation in the business sector. Moreover, firms that face challenges during the pandemic, comply with the containment measures, and receive government assistance are more likely to adopt digital solutions. Furthermore, the results indicated that firms operating in services sector have a higher likelihood to adopt digital technology. Disaggregating the total sample into several sub-samples, the results are robust across countries and technology types, supporting the initial hypothesis that COVID-19 encourages digital transformation in the MENA region.Originality/valueThe study has numerous contributions. First, to the best of the authors' knowledge, this is the sole study that uses micro data collected during the COVID-19 to examine the factors influencing firms' decision to adopt and invest in digital solutions in the MENA countries. Second, the paper employs the LPM estimator to address the issue of unobserved heterogeneity between firms, countries and time. Finally, the paper offers some practical recommendations for accelerating digital transformation in MENA region.

Drivers of e-marketing orientation for entrepreneurs and the self-employed in Jordan: the moderating role of perceived continuity of COVID-19 using the SEM approach

This paper sought to identify what key drivers have shaped the extent of E-marketing orientation (EMO) among entrepreneurs and the self-employed during these 'unprecedented times' in the Jordanian context. The study made use of a previously proposed model and incorporated the perceived continuity of COVID-19 as a moderating factor. The study used cross-sectional quantitative-deductive methods and self-administrated questionnaire. Non-probability convenience sampling was used, and the sample comprised 314 responses from owners, directors, managers, supervisors, the partners of businesses in Jordan. SMART partial-least-squares were used and path analysis reported that perceived relative advantage, level of competition and perceived continuity of COVID-19 scored moderate level of influence, whereas the remaining antecedents scored a low level of variance. Moreover, perceived complexity seen insignificant negative antecedent. Perceived continuity of COVID-19 was seen to directly influence EMO and was identified as a standalone antecedent considering that the moderation paths did not demonstrate any significant influence.

Crisis-induced HR practices and employee resilience during COVID-19: evidence from hotels

One of the wretch effects of the COVID-19 pandemic was the laying off of millions of employees in the hotel industry due to travel restrictions and lockdowns. Such a scenario prompted star hotels to implement crisis-induced HR practices (CHRP) to run their hotels effectively. Our article exploits and investigates a model that recommends that psychological well-being (PWB) indirectly influences the CHRP-employee resilience (ER) relationship, the conditional indirect effect of servant leadership (SEL). Data were collected from 265 star-rated hotel employees in Accra and Kumasi, Ghana, who are the full-time frontline. The hypothesized linkages were assessed through PROCESS analysis. We find a significant indirect effect of CHRP on ER via PWB. Moreover, the conditional indirect effect of CHRP on ER via PWB is high at higher and mediums levels of SEL. Theoretical and practical implications are discussed further.

Firm-bank linkages and optimal policies after a rare disaster

We study optimal government support following a rare disaster that creates heterogeneous firm liquidity needs. Firms' increase in debt reduces their output due to moral hazard. Banks are subject to a minimum capital requirement that limits deposit insurance costs upon bad aggregate shocks. Without government support, firms' moral hazard and banks' funding frictions reinforce each other amplifying output losses. Optimal support is implemented with firm-specific transfers combined with the provision of aggregate risk insurance through a capital requirement relaxation and a public preferred equity stake in banks. Our results shed light on suboptimality features in the actual policy responses to Covid-19 lockdowns.

The use of Twitter as a strategic dialogue platform for IBEX35 companies during the pandemic

This paper analyses the communication carried out by IBEX35 companies in crisis situations in order to determine the mechanisms that try to favour dialogue between organisations and their stakeholders. The sample is made up of the tweets that include the word covid and that have been issued by the 27 IBEX 35 companies that had verified corporate profiles on the Twitter social platform during the first 6 months of the COVID-19 pandemic in Spain. Taking into consideration the dialogic principles established by Kent and Taylor (1998), which were adapted by Rybalko and Seltzer (2010) for Twitter, an adaptation was made to establish indicators to apply to the conversation established on the platform. To analyse the differences in interaction, the t-test for independent samples and the one-factor ANOVA were used. The results show that companies maintain an interest in engaging with their audiences but continue to deal with topics that are not of interest to users, which makes it difficult for a dialogue or conversation to take place between companies and stakeholders. The article shows that the resources most used by companies in crisis situations are the call to action and dialogue, either by asking their users questions or suggesting the desired interaction. While directly asking users for their opinions does not generate more dialogue, the results show that soliciting attitudes, such as commenting, sharing an image or liking an image, does increase interaction. This implies that there is low interest on the part of audiences to join a real conversation.

Modern pandemic crises and R&D investment

This study investigates the impact of crises caused by pandemics on firms' R&D investments. We explore these associations by utilizing a comprehensive cross-country sample of 261,959 firm-year observations collected from 39 countries during five modern health crises (SARS in 2003, H1N1 in 2009, MERS in 2012, Ebola in 2012, and Zika in 2016). The results indicate that pandemics have a positive and significant impact on R&D investment. Furthermore, we show that private firms in civil-law countries were more likely to adopt conservative financial policies than those in common-law countries. We conclude that the difference between the legal origins of private firms influences the impact on R&D investment. Moreover, it promotes conservative policies to reduce private firms' R&D investment in countries with civil law.

Innovation and internationalisation during times of economic growth, crisis, and recovery prior to Covid-19: A configurational approach comparing Spanish manufacturing family and non-family firms

Based primarily on the Resource-Based View and prior evidence, this study gauges the potential differences in innovative behaviour between international family firms and non-family firms when conditions change drastically in the business environment (i.e. from a situation of economic growth to one of downturn, and then to recovery). The research setting is a large sample of Spanish manufacturing firms between 2007 and 2016 (i.e. pre-Covid-19). During this period (2009-2013), the global economic and financial crisis affected Spain. Thus, three sub-periods are distinguished in the empirical analysis: growth, crisis, and recovery. Using Qualitative Comparative Analysis, our findings show that the paths of innovation activities that promote internationalisation via exporting in family and non-family firms are somewhat dissimilar in each sub-period, supporting the argument that the causal effect of innovation on internationalisation is heavily dependent on environmental conditions. Compared to non-family firms, our results show that when family firms internationalise, they follow a wide variety and more stable number of paths in innovation activities. Our findings also provide additional evidence to support the argument of heterogeneity among family firms.

Competition and firm recovery post-COVID-19

Plain English SummaryThe COVID-19 crisis had a profound impact on firms. Firms which were more productive pre-crisis fared relatively better, particularly in countries with a more competitive business environment. Using survey data for about 8000 firms, including both small and large firms, in 23 emerging and developing countries in Europe and Central Asia, the paper finds that during the COVID-19 crisis, smaller firms were hit harder, and economic activity was reallocated toward firms with higher pre-crisis labor productivity. Countries with a strong competition environment experienced more reallocation from less productive to more productive firms than countries with a weak competition environment. The evidence also suggests that reallocation from low- to high-productivity firms during the COVID-19 crisis was stronger compared with pre-crisis times. Finally, the analysis shows that government support measures implemented in response to the crisis went to less productive and larger firms, regardless of their pre-crisis innovation. Thus, government support measures during the COVID-19 crisis may have had adverse effects on competition and productivity growth. As economies enter the economic recovery phase, it will be important for policymakers to phase out support measures as soon as appropriate and focus on fostering a competitive business environment. This paper examines the impact of the COVID-19 crisis on the reallocation of economic activity across firms and whether this reallocation depends on the competition environment. The paper uses the World Bank's Enterprise Surveys COVID-19 Follow-up Surveys for about 8000 firms, including both small and large firms, in 23 emerging and developing countries in Europe and Central Asia, matched with 2019 Enterprise Surveys data. It finds that during the COVID-19 crisis, smaller firms were hit harder, and economic activity was reallocated toward firms with higher pre-crisis labor productivity. Countries with a strong competition environment experienced more reallocation from less productive to more productive firms than countries with a weak competition environment. The evidence also suggests that reallocation from low- to high-productivity firms during the COVID-19 crisis was stronger compared with pre-crisis times. Finally, the analysis shows that government support measures implemented in response to the crisis may have adverse effects on competition and productivity growth since support went to less productive and larger firms, regardless of their pre-crisis innovation.

A LASSO-based model for financial distress of the Vietnamese listed firms: Does the covid-19 pandemic matter?

Financial distress is a vexing managerial challenge for businesses worldwide, especially during a turbulent period like the COVID-19 pandemic. Motivated by an increasing number of closed businesses in Vietnam during the recent COVID-19 pandemic, this study is conducted to provide a comprehensive analysis of financial distress for Vietnamese listed firms. Machine learning approaches are employed using the annual data of 492 listed firms from 2012 to 2021. Specifically, we aim to identify the appropriate distress predictors for the Vietnamese listed firms using LASSO, a technique known to be superior compared to other variable selection techniques. Empirical results reveal that there are four key financial distress predictors for the Vietnamese listed firms, namely the ratios of (i) working capital and total assets, (ii) retained earnings and total assets, (iii) earnings before interest and taxes and total assets and (iv) net income and total assets. We also conducted an industry-level analysis and found that the Energy sector experienced the highest number of financially distressed firms during Covid-19. In contrast, Communication Services, Health Care, and Utilities had the lowest number of distressed firms. Policy implications have emerged based on these important findings from our analysis.

Dialect connectedness and tunneling: evidence from China

PurposeThis study aims to examine the effects of dialect connectedness between the chairman and the chief executive officer (CEO) (DCCC) on the tunneling activities of controlling shareholders.Design/methodology/approachThis study uses abnormal related-party transactions (ARPT) as a proxy for tunneling activities and traces dialects of chairmen and CEOs based on the respective birthplace information. Baseline results are examined using a fixed-effects model. The results remain robust when using the instrumental variable approach, propensity score matching (PSM) technique, changing the measurement of tunneling and Heckman two-step selection model.FindingsThe results show that DCCC reduces tunneling activities. This negative association is more pronounced for non-state-owned enterprises and firms whose chairmen and CEOs work in the respective hometowns. DCCC restrains tunneling activities through mechanisms by establishing an informal supervisory effect on CEOs because the CEOs fear reputational damage and strengthening cooperation between chairmen and CEOs. Further analyses suggest that this negative association is more significant when chairmen and CEOs are non-controlling shareholders, but the association is weakened during the coronavirus disease 2019 (COVID-19) crisis.Originality/valueAs dialect is a carrier of culture, this study's results imply that cultural proximity can replace formal mechanisms to enhance corporate governance.

Bankruptcy risk, firm size, and firm profitability: a dynamic panel data approach

The main purpose of this study is to examine the impacts of bankruptcy risk of small and medium enterprises (SMEs) and large firms on firm profitability. By employing the secondary data from the CRIBIS database of the Czech firms from the ten sectors, the bankruptcy risk is measured by Altman model and Springate model. This is the first study examining the impacts of the firm size on firm profitability by simultaneously employing the Altman and Springate models. We employed the two-step system generalised method of moments (GMM) to estimate the regression models. The findings revealed three important results: 1) there is a positive relationship between the bankruptcy models and firm profitability;2) SMEs earn more profits than large firms;3) the bankruptcy risk for SMEs is higher than the large firms. Copyright © 2023 Inderscience Enterprises Ltd.

The influence of entrepreneurial culture and organizational learning on entrepreneurial orientation: the case of new technology-based firms in Iran

PurposeThis paper explores how entrepreneurial culture (EC) and organizational learning (OL) determine the entrepreneurial orientation (EO) of new technology-based firms (NTBFs). These NTBFs are located in Isfahan Science and Technology Town (ISTT), Iran. These entities face substantial challenges in a highly-sanctioned economy, which makes adopting, acquiring or transferring new technologies daunting.Design/methodology/approachThis paper analyzes a sample of 200 NTBFs. The participants were trained chief executive officers and observed by applying pre-test and post-test designs. As a final step, empirical data were collected using questionnaires and analyzed accordingly. The structural equation modeling (SEM) with the partial least squares (PLS) approach was used by the SmartPLS2 software.Findings OL was found to mediate the relationship between EC and EO in the studied NTBFs. Additionally, the indirect effect of EC on EO and the direct impact of OL on EO were significant (=1.96). Therefore, this study focuses on selected NTBFs within Iran's particular and distinctive context.Research limitations/implicationsThis study has several limitations. These were the time consuming nature, the lack of cooperation by managers and the COVID-19 pandemic-related challenges. Nonetheless, the findings offer several important implications for practitioners, scholars and policymakers.Originality/valueThe paper sought to explore how EC and OL determine EO in Iranian NTBFs. It, thus, investigates the case of a highly-sanctioned context during the coronavirus pandemic, which imposed several basic and technological limitations on their practices.

"We are out of toilet paper”: Testing the mediating effect of product scarcity on consumers' competitive arousal in family firms

Drawing on Lemon and Verhoef's customer journey, this study examines the context of local family businesses to investigate product scarcity's role as a mediator between information overload and competitive arousal in affecting consumers' behavioural intentions during the first wave of the COVID-19 pandemic. Data were collected regarding purchases in three famous local family businesses operating in the Food and Beverage sector in the North of Italy. Results reveal that during a sanitary emergency, the consumer in family firms are less inclined to react impulsively than those in large distribution, except when they perceive product scarcity, which increases their level of competitiveness towards the market and other consumers. This behaviour towards other businesses is due to the family business efficacy, which pushes family firms in reinventing themselves and takes care of their trusted consumers. The paper ends by highlighting the main theoretical and managerial contributions, delineating new paths of analysis.