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Article
Publication date: 9 September 2021

Kofi Mintah Oware, Abdul-Aziz Iddrisu, Thomas Worae and Jennifer Ellah Adaletey

This study aims to use the gender socialization theory, critical mass theory and legitimacy theory to examine the female gender and environmental disclosure of family and…

Abstract

Purpose

This study aims to use the gender socialization theory, critical mass theory and legitimacy theory to examine the female gender and environmental disclosure of family and non-family-controlled firms in India.

Design/methodology/approach

A sample size of 783 and 177 firm-year observations for family and non-family-controlled firms, respectively, between 2009 and 2020 uses descriptive statistics, a test of difference in means and panel regression with random effect assumptions for data interpretation.

Findings

The descriptive statistics show a significant mean difference between family-controlled firms and non-family-controlled firms in India. The first findings show that female chief executive officers (CEOs) and CEO duality have a positive and statistically significant association with environmental disclosure in a family-controlled firm but not in non-family-controlled firms in India. The second findings show that independent female directors have no significant association with environmental disclosure of family and non-family firms in India. The fourth findings with critical mass theory confirm the insignificant association of female directors on environmental disclosure of family and non-family firms in India. The results are robust to controlling firm-level variables.

Practical implications

Firms in the Indian context, through this study, assure stakeholders that family firms are better at improving stakeholder’s expectation of environmental accountability than non-family firms, especially where female CEOs are in charge.

Originality/value

This study adds the family perspective of the relationship between female CEOs and the environmental disclosure of listed firms in India. Also, female CEO duality and environmental disclosure add novelty to the research studies on gender and environmental disclosure.

Details

Management Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8269

Keywords

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Article
Publication date: 10 September 2021

Prajwal Eachempati and Praveen Ranjan Srivastava

This study aims to develop two sentiment indices sourced from news stories and corporate disclosures of the firms in the National Stock Exchange NIFTY 50 Index by…

Abstract

Purpose

This study aims to develop two sentiment indices sourced from news stories and corporate disclosures of the firms in the National Stock Exchange NIFTY 50 Index by extracting sentiment polarity. Subsequently, the two indices would be compared for the predictive accuracy of the stock market and stock returns during the post-digitization period 2011–2018. Based on the findings this paper suggests various options for financial strategy.

Design/methodology/approach

The news- and disclosure-based sentiment indices are developed using sentiment polarity extracted from qualitative content from news and corporate disclosures, respectively, using qualitative analysis tool “N-Vivo.” The indices developed are compared for stock market predictability using quantitative regression techniques. Thus, the study is conducted using both qualitative data and tools and quantitative techniques.

Findings

This study shows that the investor is more magnetized to news than towards corporate disclosures though disclosures contain both qualitative as well as quantitative information on the fundamentals of a firm. This study is extended to sectoral indices, and the results show that specific sectoral news impacts sectoral indices intensely over market news. It is found that the market discounts information in disclosures prior to its release. As disclosures in quarterly statements are delayed information input, firms can use voluntary disclosures to reduce the communication gap with investors by using the internet. Managers would do so only when the stock price is undervalued and tend to ignore the market and the shareholder in other cases. Otherwise, disclosure sentiment attracts only long horizon traders.

Practical implications

Finance managers need to improve disclosure dependence on investors by innovative disclosure methodologies irrespective of the ruling market price. In this context, future studies on investor sentiment would be interesting as they need to capture man–machine interactions reflected in market sentiment showing the interplay of human biases with machine-driven decisions. The findings would be useful in developing the financial strategy for protecting firm value.

Originality/value

This study is unique in providing a comparative analysis of sentiment extracted from news and corporate disclosures for explaining the stock market direction and stock returns and contributes to the behavioral finance literature.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

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Article
Publication date: 16 September 2021

Paolo Quattrone

Financial and nonfinancial disclosures are still anchored to conventional notions of transparency, whereby corporations “push” information out to various stakeholders…

Abstract

Purpose

Financial and nonfinancial disclosures are still anchored to conventional notions of transparency, whereby corporations “push” information out to various stakeholders. Such information is now “pulled” from various sources and addresses aspects of corporate behavior that go well beyond those envisioned by the disclosure framework. This shift makes notions of values, measurement and accountability more fragmented, complex and difficult. The paper aims to bring the accounting scholarly debate back to what and how transparency can be achieved especially in relation to issues of social inequality and sustainability.

Design/methodology/approach

After an analysis of the limitations of current approaches to disclosure, the paper proposes a shift toward normative policies that profit of years of critique of positivism.

Findings

Drawing on the notion of value-added, the paper ends with a new income statement design, labeled as Value-Added Statement for Nature, which recognizes Nature as a further stakeholder and forces human stakeholders to give voice, or at least acknowledge the lack of voice, for non-human actors.

Originality/value

The author proposes a shift in the perspective, practice and institutional arrangements in which disclosure occurs. Measurement and transparency need to happen in communication exercises, which do not presuppose what needs to be made transparent once and for good but define procedures on how to make fragmented, complex, multiple and volatile notions of value transparent. Income statements and accounting more in general is to be reconceived as a platform where stakeholders will have to continuously negotiate what counts as the common good in the interest of all, including Nature.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

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Article
Publication date: 27 August 2021

Salim Chouaibi and Habib Affes

Given the rising global interest in the environmental, social and governance (ESG) index, the purpose of this paper is to investigate the impact of social and ethical…

Abstract

Purpose

Given the rising global interest in the environmental, social and governance (ESG) index, the purpose of this paper is to investigate the impact of social and ethical practices on the firm’s environmental disclosure level.

Design/methodology/approach

To test the study’s hypotheses, the authors applied linear regressions with a data panel using the Thomson Reuters ASSET4 and Bloomberg database from seven countries in analyzing data of 523 listed companies selected from the ESG index between 2005 and 2017. Similarly, as an extension of the research and to address the potential unobserved heterogeneity and the dynamic endogeneity, the authors exploited the dynamic dimension of the data set through the generalized moment method (GMM) and estimated the impact of the one-year lagged value of the environmental disclosure.

Findings

The empirical results indicate a growing interest in corporate social responsibility (CSR) and ethical practices over the past decade. Besides, companies with a strong social and ethical commitment obtain significantly higher environmental disclosure scores. The results found with the GMM technique indicate the existence of dependence and continuity in environmental disclosure over time.

Practical implications

The research enables the information user to assess the transparency of the company as well as the quality of the information disclosed on its environment and its future growth opportunities in a context where the approach of business ethics occupies a central position in business valuation. The reached results suggest that the institutional and/or cultural factors affect top management’s environmental reporting behavior regarding the quality of published information.

Originality/value

This paper explores, for the first time, the effect of the social and ethical practices of ESG companies with seven different nationalities as well as its dynamic effect on the adoption of an environmental transparency strategy.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 28 August 2021

Ridhima Saggar, Nischay Arora and Balwinder Singh

The study aims to pervade the gap in the domain of risk disclosure and gender diversity, which is comparatively uncharted. Gender diversity being a crucial element of…

Abstract

Purpose

The study aims to pervade the gap in the domain of risk disclosure and gender diversity, which is comparatively uncharted. Gender diversity being a crucial element of corporate governance can deepen understanding on the issue in the backdrop of a developing country such as India, so this study aims to investigate the relationship between gender diversity on board and corporate risk disclosure.

Design/methodology/approach

Four measures of gender diversity, i.e. BLAU index, SHANNON index, proportion of women directors on board and female dummies, have been deployed to measure gender diversity. The empirical analysis is premised on a sample of S&P BSE 100 index pertaining to the 2018–2019 financial year; which eventually gets reduced to 70 non-financial firms after eliminating 30 financial firms. To examine the impact of gender diversity on corporate risk disclosure, hierarchical regression has been used. Additionally, two-stage least square regression analysis has been performed for checking the endogeneity issues in data and validating the findings of the study.

Findings

The main findings unveil that gender diversity positively impacts corporate risk disclosure. Confirming the agency theory and resource dependency theory, its alternative measures like BLAU index, SHANNON index, proportion of women directors and female dummy divulged to positively impact corporate risk disclosure. When women dummy has been used, analysis unmasked that firms electing more than one female director on board has a higher positive impact on corporate risk disclosure as compared to firms engaging only one women director on board.

Research limitations/implications

The study is undertaken in the Indian settings, which has its own set of legislative laws, whereas there is need to reaffirm the relationship applying cross-country analysis. Furthermore, there is huge hollowness in the domain of gender diversity and risk disclosure that calls for empirical evidence to unearth futuristic vision.

Practical implications

The research presents managerial implications for the managers to promote gender egalitarianism by electing higher quantum of women directors on board to achieve global standards of maintaining higher risk disclosure. Adequate risk disclosure on a gender-diverse board further assures the investors that their interest will remain intact in the organization that meets legal requirements by embracing gender equality in employment. A woman in the boardrooms incarnates transparency through divulgence of risk information, which suffices the informational needs of investors. In addition, the findings insists the regulators towards staunch enforcement of effective corporate governance practice through increasing the proportion of women directors on board as they assist in dispelling risk disclosure, which will avert sceptical ambitions of managers and deconstruct their stereotype attitude towards women.

Originality/value

This study is a novel contribution in expanding the risk disclosure literature by analyzing the unexplored impact of gender diversity on the extent of corporate risk disclosures in India.

Details

Gender in Management: An International Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2413

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Article
Publication date: 3 September 2021

Nicholas P. Salter and Thomas Sasso

Much research has focused on the negative aspects of disclosing sexual orientation and/or gender identity in the workplace but less has explicitly examined the positive…

Abstract

Purpose

Much research has focused on the negative aspects of disclosing sexual orientation and/or gender identity in the workplace but less has explicitly examined the positive aspects. This lack of research is problematic as this can oversimplify the work lives of lesbian, gay, bisexual, transgender or queer (LGBTQ) people. The current study examines positive intrapersonal, interpersonal and work opportunity experiences associated with coming out in the workplace as LGBTQ.

Design/methodology/approach

The current study surveyed 135 working adults who identified as LGBTQ and used a mixed qualitative and quantitative design to examine the relationship between disclosure and various positive workplace experiences.

Findings

Results suggest that sexual orientation disclosure at work was related to participants perceiving multiple positive interpersonal as well as work opportunity experiences. Furthermore, results suggest gender identity disclosure was similar to, but not the same as, sexual orientation disclosure in terms of perception of positive experiences.

Originality/value

Previous research on disclosure at work has taken a somewhat narrow and typically quantitative approach. The current study provides more nuance to the phenomenon by broadly examining multiple positive experiences associated with disclosure and studying them qualitatively in order to best understand participants' experiences in their own voices.

Details

Equality, Diversity and Inclusion: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7149

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Article
Publication date: 8 September 2021

Rosa Lombardi, Federico Schimperna, Paola Paoloni and Michele Galeotti

This paper investigates the quality and quantity of climate-related information disclosed by public interest entities (PIEs) in the non-financial disclosure scenario…

Abstract

Purpose

This paper investigates the quality and quantity of climate-related information disclosed by public interest entities (PIEs) in the non-financial disclosure scenario. Thus, this paper aims at drafting the state of the art on what is climate-related information disclosed by PIEs in the changing EU non-financial regulation assuming the Italian scenario and the industrial industry as significant in achieving the research aims.

Design/methodology/approach

The authors used the content analysis composing the sample of 34 large listed companies (i.e. PIEs) belonging to the industrial sector in Italy. The authors choose the Italian PIEs’ sustainability reports published in 2019 after the adoption of the EU directive and its guidelines. The authors adopted a coding and classification system, investigating the climate-related information through a systematic, objective and reliable method. The authors defined 99 indicators along the structure of the European Commission's guidelines and the indicator of disclosure, climate-related information indicator (CII). The framework mainly derives from the corporate disclosure theory and legitimacy and stakeholders' theories.

Findings

The results show the lack of several required climate-related information or a not in-depth presentation of information. Thus, findings are interesting in emphasizing that the current climate-related disclosure is at an early stage in complying with the European Commission's guidelines. Additionally, the findings enlarge previous theories on corporate disclosure, proposing new insights in the light of the recent interest in climate-related information.

Research limitations/implications

Evidence contributes to extending the existing literature, drafting the state of the art of what is the quality and the quantity of the climate-related information in the corporate disclosure in the European scenario.

Practical implications

This paper is directed to propose the state of the climate-related disclosure following the EU directive guidelines, proposing some evidence to support the path toward the integrations of information by several parts (e.g. companies, regulators and so on).

Originality/value

The paper is a useful baseline for academics, practitioners, policy-makers and regulators in understanding actions to adopt in the climate-related disclosure and what could be the impact of forthcoming regulations in the field, also having some metrics (e.g. score value of disclosure, the indicator of climate-related information disclosure – CII).

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

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Article
Publication date: 11 August 2021

Geoffrey Injeni, Musa Mangena, David Mathuva and Robert Mudida

This paper aims to examine the factors influencing the level of disclosures of sustainability (SR) and integrated report (IR) information in a developing country context…

Abstract

Purpose

This paper aims to examine the factors influencing the level of disclosures of sustainability (SR) and integrated report (IR) information in a developing country context, with particular reference to Kenya.

Design/methodology/approach

The study uses a panel data set of 419 firm-year observations of listed companies in Kenya covering the period 2010 through 2018. Data are collected from the annual reports and analysed using a generalized estimations equation model.

Findings

The results reveal that there is momentum towards newer reporting frameworks in Kenya with substantial IR and SR disclosures in their annual reports. The results also show that level of SR and IR disclosures is influenced by both agency-related factors (board gender diversity, audit committee independence, block ownership and the presence of foreign ownership). Additionally, institutional-related factors (regulatory pressure and promotional efforts of regulatory and professional bodies [reporting excellence awards]) influence the disclosures.

Practical implications

The results highlight that initiatives such as those led by the regulatory and professional bodies in Kenya are effective in motivating companies to enhance disclosures. Thus, regulators and professional bodies might need to continue and even intensify their efforts. These results have implications for further research as they show that SR and IR disclosures are influenced by similar factors.

Social implications

The study has the potential to contribute to the ongoing initiatives and discussions on the adoption of IR by firms in Africa as spearheaded by the African Integrated Reporting Council.

Originality/value

To the best of the knowledge, the study is, perhaps, the first to examine both SR and IR disclosures at the same study allowing comparison of the extent and drivers of the two disclosures. Moreover, examining the institutional-related factors in a single country has not been done in prior literature, and so this is an innovation.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 16 August 2021

Arthur do Nascimento Ferreira Barros, Milena Rayane Lopes dos Santos, Igor de Albuquerque Melo, Marcos Paulo Dias dos Santos and Suymarha Mendes da Silva

Due to the mixed evidence regarding politically connected (PCON) firms and voluntary disclosure, the authors seek to investigate the direction of the association between…

Abstract

Purpose

Due to the mixed evidence regarding politically connected (PCON) firms and voluntary disclosure, the authors seek to investigate the direction of the association between Brazilian PCON firms and their level of information disclosed in the fight against corruption. This study is conducted in a developing country with a weak judicial system where board members or directors with political connections can operate without any oversights.

Design/methodology/approach

The authors empirically test our hypothesis that voluntary anti-corruption disclosure is negatively associated with political connections. Content analysis, Wilcoxon Rank and Pearson Correlation were employed in a sample of 30 companies that belong to sectors with the highest risk of corruption, between 2014 and 2016, the period of Brazilian elections. A sample of 90 observations is used with data collected from annual reports of companies listed on the São Paulo Stock Exchange in Brazil.

Findings

The study’s results indicate a positive and significant association between the level of voluntary anti-corruption disclosure and corporate political connection, confirming our second hypothesis. PCON firms could seek to improve their legitimacy after recent corporate corruption scandals discovered in Brazil where government members participated in the schemes of bribe and money laundering and embezzlement. Although our sample is composed of firms in industries of high corruption risk, which could increase bias, the results improve the literature with empirical contribution that has given little attention to the issue.

Originality/value

The latest corruption scandals in Brazil showed that companies were involved with government officials, corruption is one of the country's biggest issues for diverting public resources to basic needs such as education and health. The relationship between political connections and voluntary disclosure is an open empirical question, particularly dealing with anti-corruption. The study’s findings bring light on the subject, which deserves greater attention not only from researchers but from the society that is most affected by corruption.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

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Article
Publication date: 4 August 2021

Binh Bui, Mohamed Chelli and Muhammad Nurul Houqe

The purpose of this paper is to investigate the impact of climate change rating organisations on rated firms, to understand whether disclosure ratings can facilitate…

Abstract

Purpose

The purpose of this paper is to investigate the impact of climate change rating organisations on rated firms, to understand whether disclosure ratings can facilitate enhanced emissions performance.

Design/methodology/approach

This study uses 1,848 cross-country firm-year observations from organisations that responded to the carbon disclosure project (the rater) between 2011 and 2015 and, hence, were rated for their disclosure. Drawing on the ideology of numbers, this paper hypothesises that the disciplinary power of ratings will result in rated firms improving their subsequent disclosure scores. Following the environmentally-friendly ideology, this study hypothesises that poorly-rated firms will adopt decoupling behaviour, by improving their climate change disclosure scores without reducing the intensity of their greenhouse gas (GHG) emissions.

Findings

The results indicate that climate change disclosure ratings pressure poorly-rated firms to improve their disclosure scores in subsequent years, yet these firms are not inclined to lower their GHG emissions. Further, the direct publication of firms’ GHG emissions intensity can exert some restricted disciplinary impact on rated firms, as the more polluting firms tend to improve their subsequent climate change performance compared with those having lower emissions levels.

Practical implications

This paper argues that the ability of corporate sustainability rating schemes to influence corporate behaviour comprehensively is limited and should be used with caution.

Originality/value

This paper sheds new light on the ideological dynamics at play between the rater and the rated, while highlighting new aspects of the power-rating nexus in the climate change arena.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

Keywords

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