To read this content please select one of the options below:

A Social Disclosure Index for Assessing Social Programs in Brazilian Listed Firms

Accounting in Latin America

ISBN: 978-1-78441-068-1, eISBN: 978-1-78441-067-4

Publication date: 3 September 2014

Abstract

Purpose

This study is aimed at developing and validating an index designed to measure the level of social disclosure of external social programs of firms listed on the Brazilian stock market.

Methodology/Approach

The index of social disclosure is composed of 13 items distributed in three dimensions: past information, prospective actions, and accessibility. Its validation involved: (a) pre-test, (b) analysis by referees, (c) exploratory factor analysis, (d) Cronbach’s alpha test, and (e) final validation. The sample is composed of 83 Brazilian firms listed on the Brazilian Stock Exchange from 2005 to 2009.

Findings

The index presented robustness in all validation stages. It was found that size, industry sector, internationalization, auditing, and listing on social responsible investment funds are decisive factors for increasing the level of social disclosure.

Research Limitations

The index of social disclosure evaluates external social programs only. Hence, some types of social information are not captured, such environmental ones. Besides, the sources of information for the index are restricted to annual and sustainability reports, so that information from other sources, such as official announcements and company websites, are not captured.

Social Implications

The social disclosure index developed can be useful to analysts and investors assessing listed firms, as well as to financial-market regulators defining policies applicable to the disclosure of corporate social information.

Originality/Value

(a) Construction of a social disclosure index validated and tested in Brazilian firms, which is liable to replication; (b) Utilization of a representative sample of firms listed on an important emerging stock market.

Keywords

Citation

de Souza Gonçalves, R., de Medeiros, O.R., Jreige Weffort, E.F. and Katsumi Niyama, J. (2014), "A Social Disclosure Index for Assessing Social Programs in Brazilian Listed Firms", Accounting in Latin America (Research in Accounting in Emerging Economies, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 75-103. https://doi.org/10.1108/S1479-356320140000014002

Publisher

:

Emerald Group Publishing Limited

Copyright © 2014 Emerald Group Publishing Limited