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1 – 10 of over 35000Anup Kumar Saha and Imran Khan
This study aims to examine the impact of board characteristics on climate change disclosures (CCDs) in the context of an emerging economy, with a unique focus on regulatory…
Abstract
Purpose
This study aims to examine the impact of board characteristics on climate change disclosures (CCDs) in the context of an emerging economy, with a unique focus on regulatory influences.
Design/methodology/approach
This study analyzes longitudinal data (2014–2021) from environmentally sensitive firms listed on the Dhaka Stock Exchange, using a disclosure index developed within the Global Reporting Initiative framework. The authors use a neo-institutional theoretical lens to explore regulatory influences on CCD through board characteristics. This study uses hand-collected data from annual reports owing to the absence of an established database.
Findings
The results indicate that a larger board size, the presence of foreign directors and the existence of an audit committee correlate with higher levels of CCD disclosure. Conversely, a higher frequency of board meetings is associated with lower CCD disclosure levels. This study also observed an increase in CCD following the implementation of corporate governance guidelines by the Bangladesh Securities and Exchange Commission, albeit with a relatively low number of firms making these disclosures.
Research limitations/implications
This study contributes to the climate change reporting literature by providing empirical evidence of regulatory influences on CCD through board characteristics in an emerging economy. However, the findings may not be universally applicable, considering the study’s focus on Bangladeshi listed firms.
Practical implications
This study suggests growing pressures for diverse stakeholders, including researchers and regulatory bodies, to integrate climate change disclosure into routine activities. This study offers a valuable framework and insights for various stakeholders.
Social implications
By emphasizing the influence of good governance and sustainability practices, this study contributes to stakeholders’ understanding, aiming to contribute to a better world.
Originality/value
This study stands out by uniquely positioning itself in the climate change reporting literature, shedding light on regulatory influences on CCD through board characteristics in the context of an emerging economy.
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Sourour Hamza and Anis Jarboui
This paper explores how the disclosure quality, measured by the abnormal tone of environmental and social report, may determine the environmental, social and corporate governance…
Abstract
Purpose
This paper explores how the disclosure quality, measured by the abnormal tone of environmental and social report, may determine the environmental, social and corporate governance (ESG) performance of the firm. This study also investigates the impact of the moderator “board of directors” to explore the extent to which a well-balanced board of directors may affect this association within an impression management strategy.
Design/methodology/approach
This work uses a sample of 616 firm-year observations using a sample of French firms indexed on SBF120 index from 2010 to 2017. To test the developed hypotheses, the GLS regression is applied and to control for endogeneity issue and sample selection bias, the authors used, respectively, the two stage least square (2SLS) procedure and the Heckman model.
Findings
Findings suggest that a well-balanced board of directors moderates the relationship between the ESG performance and the disclosure quality. The positive effect of abnormal tone management on ESG is weakened by the presence of a good structure of the board, attenuating impression management initiatives.
Research limitations/implications
The research provides evidence of the impact of corporate social responsibility (CSR) reporting quality, in particular disclosure tone management, on the level of ESG performance in the French context. As the board of directors may have a major impact on weakening impression management strategies in particular tone management practices, in order to improve CSR report quality, the authors recommend French companies to ensure a well-balanced board of directors.
Originality/value
This study helps investors to comprehensively evaluate the information disclosed on CSR reports. It unveils that a strong board composition induces better quality of CSR report and brings better ESG performance. Thus, the study results point to the importance of a well-balanced board of directors and the regulation of the narrative disclosure of CSR information.
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Olayinka Adedayo Erin and Paul Olojede
The Agenda 2030 have drawn a lot of interest in academic studies. This necessitates accounting research on nonfinancial reporting and sustainable development goals (SDG) disclosure…
Abstract
Purpose
The Agenda 2030 have drawn a lot of interest in academic studies. This necessitates accounting research on nonfinancial reporting and sustainable development goals (SDG) disclosure in an under-investigated context. The purpose of this study is to examine the contribution of nonfinancial reporting practices to SDG disclosure by 120 companies from 12 African nations for the years 2016 to 2020.
Design/methodology/approach
The study uses a content analysis to gauge how much information are disclosed on SDG by the selected firms. The authors carried out content analysis using the global reporting initiative frameworks to determine the level of SDG disclosure across the companies by examining the selected nonfinancial reports.
Findings
Sustainability reports account for 50% of such SDG disclosure making it the highest. This is followed by corporate social responsibility report which accounts for 23%, while environmental reports account for 20% and Chairman’s statement accounts for 7%. The result is expected since corporate sustainability report has been the major channel for disclosing activities relating to social and governance issues in recent times.
Practical implications
The results of this study demand that corporate entities in Africa take responsibility for their actions and exert significant effort to achieve the SDG. While the government has the main responsibility, corporate entities must support the SDG to be realized.
Originality/value
To the best of the authors’ knowledge, this study is one of the few studies that examines nonfinancial reporting practices with a focus on SDG disclosure. In addition, this study offers novel insight into how accounting research contributes to nonfinancial reporting practices and SDG disclosure.
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Evy Rahman Utami and Zuni Barokah
This study aims to investigate the determinants of anti-corruption disclosures by construction firms in Asia-Pacific countries.
Abstract
Purpose
This study aims to investigate the determinants of anti-corruption disclosures by construction firms in Asia-Pacific countries.
Design/methodology/approach
The sample comprises construction companies from seven Asia-Pacific countries from 2015 to 2019. The authors hand-collected data on anti-corruption disclosures by using content analysis.
Findings
This study provides empirical evidence that government ownership, country-level accounting competence and high-quality auditors increase companies’ anti-corruption disclosures. Meanwhile, this study finds that uncertainty avoidance does not affect companies’ anti-corruption disclosures.
Practical implications
This study has a number of implications. First, government and professional accountant organizations need to improve accountants’ knowledge and competence through education, training and continuous professional development. Second, public accounting firms need to ensure the quality of their auditors, particularly in the technical competence in financial and nonfinancial reporting. Finally, universities must improve and update their curriculum regarding nonfinancial reporting issues.
Originality/value
This study is among the first to examine anti-corruption disclosure practices in the most corrupted settings, i.e. the construction industry in Asia-Pacific countries. It uses the isomorphism perspective to explain the influence of government ownership, country-level accounting competence and high-quality auditors on anti-corruption disclosure transparency. The number of prior studies investigating this association is very limited. Moreover, disclosures of anti-corruption information are complex and sensitive; thus, coercive, normative and mimetic pressures are required to achieve higher transparency and sustainability.
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María Jesús Barroso-Méndez, Maria-Luisa Pajuelo-Moreno and Dolores Gallardo-Vázquez
Previous research has explored the link between sustainability disclosure and reputation but produced contradictory results. This study aims to clarify the sustainability…
Abstract
Purpose
Previous research has explored the link between sustainability disclosure and reputation but produced contradictory results. This study aims to clarify the sustainability disclosure–reputation relationship through a quantitative analysis of the correlations between these variables reported in empirical research papers. The second objective was to determine how various moderators affect the sustainability disclosure–reputation link.
Design/methodology/approach
The meta-analysis was based on a systematic review of the literature covering empirical research on the corporate sustainability disclosure and reputation relationship. A total of 92 articles were meta-analyzed to compile their findings on four extrinsic moderators: company size, ownership, stock listing status and activity sector.
Findings
The findings confirm that a significant positive correlation exists between corporate sustainability disclosure and reputation. The moderator analysis also revealed that companies’ different characteristics can explain researchers’ divergent results.
Practical implications
The results have considerable practical relevance for organizational management. First, they can motivate managers to improve and disclose their company’s social and environmental impacts to strengthen their reputation, which in turn will help accelerate the achievement of the Sustainable Development Goals. Second, the findings can ensure organizations develop disclosure and reputation management strategies adapted for each firm’s size, ownership, stock listing status and activity sector.
Social implications
The results have considerable practical relevance for organizational management. First, they can motivate managers to improve and disclose their company’s social and environmental impacts to strengthen their reputation, which in turn will help accelerate the achievement of the Sustainable Development Goals. Second, the findings can ensure organizations develop disclosure and reputation management strategies adapted for each firm’s size, ownership, stock listing status and activity sector.
Originality/value
To the best of the authors’ knowledge, this meta-analysis is the first to clarify the link between disclosure and reputation, which makes a unique contribution to the field of social and environmental accounting. A larger sample of primary research was collected, and key extrinsic moderators were examined to explain prior studies’ contradictory findings.
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Hend Guermazi, Salma Damak and Adel Beldi
The aim of this study is to analyse the factors that contribute to the disclosure of relational liabilities (RLs) of the US companies.
Abstract
Purpose
The aim of this study is to analyse the factors that contribute to the disclosure of relational liabilities (RLs) of the US companies.
Design/methodology/approach
The study uses content analysis to examine the disclosure of RLs in annual reports of the US companies listed on the Nasdaq-100 index from 2013 to 2015.
Findings
The study finds a positive correlation between the disclosure of RLs and gender diversity of the board of directors as well as the education level of the CEO. By contrast, the disclosure of RLs is negatively associated with the age of the CEO. Companies in knowledge-intensive industries also tend to disclose more information about their RLs than those in other industries.
Originality/value
This study focuses on the determinants of RLs, whereas previous research has mainly examined the positive impact of voluntary disclosure of intellectual capital on financial performance. The main objective of this study is to shed light on the factors that influence the disclosure of RLs.
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Ankita Bedi and Balwinder Singh
This study aims to determine the influence of corporate governance characteristics on carbon emission disclosure in an emerging economy.
Abstract
Purpose
This study aims to determine the influence of corporate governance characteristics on carbon emission disclosure in an emerging economy.
Design/methodology/approach
The study is based on S&P BSE 500 Indian firms for the period of 6 years from 2016–2017 to 2021–2022. The panel data regression models are used to gauge the association between corporate governance and carbon emission disclosure.
Findings
The empirical findings of the study support the positive and significant association between board activity intensity, environment committee and carbon emission disclosure. This evinced that the board activity intensity and presence of the environment committee have a critical role in carbon emission disclosure. On the contrary, findings reveal a significant and negative relationship between board size and carbon emission disclosure.
Practical implications
The present study provides treasured insights to regulators, policymakers, investors and corporate managers, as the study corroborates that various corporate governance characteristics exert significant influence on carbon emission disclosure.
Originality/value
The current research work provides novel insights into corporate governance and climate change literature that good corporate governance significantly boosts the carbon emission disclosure of firms. Previous studies examining the impact of corporate governance on carbon emission disclosure ignored emerging economies. Thus, the current work explores the role of governance mechanisms on carbon emission disclosure in an emerging context. Further, to the best of the author’s knowledge, the current study is the first of its kind to investigate the role of corporate governance on carbon emission disclosure in the Indian context.
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Waris Ali, Jeffery Wilson and Taiba Saeed
This study aims to examine the moderating effect of cultural conditions on the relationship between environmental performance and environmental disclosure.
Abstract
Purpose
This study aims to examine the moderating effect of cultural conditions on the relationship between environmental performance and environmental disclosure.
Design/methodology/approach
The authors used meta-analysis technique to examine 100 effect sizes from 43 studies published between 1982 and 2023 to integrate the existing results and to detect causes contributing to variability of results across studies.
Findings
There is a significant positive relationship between environmental performance and environmental disclosure. Further, the authors found that cultures with long-term orientation positively moderated the relationship, whereas cultures with high uncertainty avoidance and indulgence negatively moderated it.
Research limitations/implications
This study did not account for the problem of endogeneity between environmental performance and environmental disclosure because most of the already published studies included in the authors’ meta-analysis did not address this issue.
Practical implications
This research provides regulators and policymakers insights on the influence of cultural factors on environmental disclosure and performance, critical information to consider when adopting, or revising social and environmental policy and regulations within a country.
Originality/value
To the best of the authors’ knowledge, this is the first meta-analysis study examining different cultural dimensions influencing the relationship between environmental performance and environmental disclosure and contributes new knowledge to the literature on determinants of environmental disclosure.
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Nian Lim (Vic) Lee, Mohamed Sami Khalaf, Magdy Farag and Mohamed Gomaa
This paper aims to investigate the impact of the implementation of the critical audit matters (CAMs) disclosure requirement and the subsequent relationship between CAM disclosures…
Abstract
Purpose
This paper aims to investigate the impact of the implementation of the critical audit matters (CAMs) disclosure requirement and the subsequent relationship between CAM disclosures and audit report lag, as well as audit fees in the USA.
Design/methodology/approach
This study used difference-in-differences analyses to investigate the impact that the implementation of the requirement for auditors to report CAMs on their audit report has on the audit process. It also used levels regression models to examine the relationship that CAM disclosures have with audit report lag and audit fees.
Findings
This study found that the implementation of the CAM disclosure requirement in the USA reduced audit report lag while not significantly affecting audit fees. This suggests that the CAM disclosure requirement may increase the cooperation between auditors and managers and improve the efficiency of the audit process.
Practical implications
This study’s results are informative for assessing the economic impact of requiring CAM disclosures, which should be of importance to regulators, auditors and accounting researchers.
Originality/value
This study used different approaches to investigate two aspects of the CAM disclosure requirement – the effect of the implementation of the disclosure requirement and the subsequent effects related to CAM reporting outcomes. Unlike many previous studies investigating CAM disclosures, which relied on experiments and questionnaires, this study used actual CAM disclosure data in the USA to investigate the impact on audit report lag and audit fees.
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This paper examines how firms respond to local government’s environment initiatives through textual analysis of government work reports (GWRs). This study aims to provide insights…
Abstract
Purpose
This paper examines how firms respond to local government’s environment initiatives through textual analysis of government work reports (GWRs). This study aims to provide insights into how firms strategically respond to government’s environmental initiatives through their disclosure and investment practices.
Design/methodology/approach
This study uses a textual analysis of GWRs from China’s provinces. The frequency and change rate of environmental keywords in these reports are used as a measure of the government’s environmental initiatives.
Findings
This study finds that environmental disclosure scores in environmental, social and governance (ESG) reports increase with the frequency or change rate of environmental keywords in provincial GWRs. This effect is more pronounced for non-state-owned enterprises, firms in highly marketized provinces or those listed in a single capital market. However, there is no significant relationship between firms’ environmental investments and government initiatives, except for cross-listed firms in provinces with consistently high frequency of environmental keywords in their GWRs.
Practical implications
The findings indicate that government environmental initiatives can shape firms’ disclosure behaviors, yet have limited influence on investment decisions, suggesting that environmental disclosure could potentially be opportunistic. This underscores the need for more effective strategies to stimulate firms’ environmental investments.
Originality/value
This study provides valuable insights into the differential impacts of government environmental initiatives on firms’ disclosure and investment behaviors, contributing to the understanding of corporate environmental responsibility in the context of government initiatives.
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