Search results

1 – 10 of over 20000
To view the access options for this content please click here
Article
Publication date: 28 June 2021

Daniel W. Richards and Maryam Safari

Scandals in the Australian financial services industry highlight the conflicts of interest between those who provide financial advice (financial planners) and their…

Abstract

Purpose

Scandals in the Australian financial services industry highlight the conflicts of interest between those who provide financial advice (financial planners) and their clients. Disclosure is a potential governance tool to manage these conflicts of interest by reducing asymmetries in information. Yet, the efficacy of disclosure is questionable as scandals persist, so this paper aims to research the effectiveness of disclosure in financial planning.

Design/methodology/approach

This research used a qualitative approach involving the triangulation of data from parliamentary inquiries in financial services with data collected in semi-structured interviews with financial planning professionals.

Findings

The findings draw a clear portrayal of the disclosure requirements and illustrate how disclosure processes are onerous and complex. Starting with detangling the complex interactions between the beneficial role of disclosure in reducing information asymmetry and unethical behaviour and the detrimental effect of information overload, the authors then highlight effective disclosure techniques used by financial planners, including visualisation of material information. The study reveals that financial planners perceive their role as filtering information for clients and ensuring clients’ comprehension, due to the onerous disclosure requirements.

Research limitations/implications

The study is of interest to researchers, practitioners, policymakers and society as it implies that how disclosure occurs is as important as what information is disclosed. Those who wish to foster effective disclosure in the financial services industry need to consider the quantity, quality and process of disclosure. A limitation is the research focusses on financial planning practices and not client outcomes, which could be considered in future research.

Originality/value

The study adds to the understanding of how disclosure is used as a governance tool and how the quantity of information may impede the effectiveness of disclosure in the financial planning industry. In addition, the study identifies and elaborates on the influential factors and best practices for enhancing the disclosure effectiveness by financial planners.

Details

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

Keywords

To view the access options for this content please click here
Article
Publication date: 10 August 2020

Fragiskos K. Gonidakis, Andreas G. Koutoupis, Anastasios D. Tsamis and Maria-Eleni K. Agoraki

The purpose of this study is to investigate risk disclosure in listed Greek companies. The effects of the financial crisis were also considered.

Abstract

Purpose

The purpose of this study is to investigate risk disclosure in listed Greek companies. The effects of the financial crisis were also considered.

Design/methodology/approach

This study aimed to determine the risk-reporting practices of Greek’s non-financial companies listed on the Athens Stock Exchange through a content analysis of their annual reports.

Findings

Risk identification and anticipation protect businesses and create shareholder value. In recent years, particularly since the economic crisis, risk has become one of the most important business issues. This study concluded that during the crisis, there was an increase in disclosure. Financial, personnel and legal risks were the most reported types of risk. This study also found liquidity to be a very important issue.

Research limitations/implications

Content analysis has limitations because subjectivity cannot be eliminated. This study measured only the quantity, not the quality, of risk disclosure. The quality of risk reporting will be examined in future research.

Originality/value

This is the first study on risk disclosure in the non-financial companies listed on the Athens Stock Exchange to conduct a content analysis of the corporate annual reports.

Details

Accounting Research Journal, vol. 33 no. 4/5
Type: Research Article
ISSN: 1030-9616

Keywords

To view the access options for this content please click here
Article
Publication date: 31 August 2020

Taejun (David) Lee, Bruce A. Huhmann and TaiWoong Yun

Government policy mandates information disclosure in financial communications to protect consumer welfare. Unfortunately, low readability can hamper information disclosures

Abstract

Purpose

Government policy mandates information disclosure in financial communications to protect consumer welfare. Unfortunately, low readability can hamper information disclosures’ meaningful benefits to financial decision making. Thus, this experiment tests the product evaluation and decision satisfaction of Korean consumers with less or more subjective knowledge and with or without personal finance education.

Design/methodology/approach

A between-subjects experiment examined responses of a nationally representative sample of 400 Korean consumers toward a Korean-language credit card advertisement.

Findings

Financial knowledge improves financial product evaluation and decision satisfaction. More readable disclosures improved evaluation and satisfaction among less knowledgeable consumers. Less readable disclosures did not. Consumers without financial education exhibited lower evaluations and decision satisfaction regardless of readability. More knowledgeable consumers and those with financial education performed equally well regardless of disclosure readability.

Practical implications

Financial service providers seeking more accurate evaluations and better decision satisfaction among their customers should use easier-to-read disclosures when targeting consumers with less prior financial knowledge.

Social implications

One-size-fits-all financial communications are unlikely to achieve public policy or consumer well-being goals. Government-mandated information should be complemented by augmenting financial knowledge and providing personal finance training.

Originality/value

Although almost a quarter of the world’s population lives in East Asia, this is the first examination of readability in disclosures written in East Asian characters rather than a Western alphabet. Previous readability research on Asian-originating financial disclosures has been conducted on English-language texts. This study extends knowledge of readability effects to growing East Asian markets.

Details

International Journal of Bank Marketing, vol. 38 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article
Publication date: 1 September 2006

Per Flöstrand and Niklas Ström

Research has called for increased relevance of business reporting. A step towards that goal is an increased disclosure of non‐financial information. At the present time…

Abstract

Purpose

Research has called for increased relevance of business reporting. A step towards that goal is an increased disclosure of non‐financial information. At the present time, non‐financial information is mostly provided on a voluntary basis.

Design/methodology/approach

Valuation relevance of non‐financial information is studied by examining the information content of 200 analyst reports written on a respective number of firms listed in the S&P 500 index, while simultaneously performing a disclosure study of non‐financial information by the same 200 firms in their annual reports.

Findings

We found the valuation relevance of non‐financial information to be related to the size of the target firm. Further, analysts’ use of non‐financial information is related to the level of non‐financial information in the 10‐k report of the target firm. Finally, analysts tend to rely more heavily on forward‐looking non‐financial information than on historical non‐financial information.

Practical implications

The findings in this paper have implications for policy makers, preparers of business reporting, and others having to make judgments on information usefulness.

Originality/value

This study looks at the valuation relevance of non‐financial information, as opposed to earlier studies that have judged the usefulness of non‐financial information by measuring its value relevance. Information is regarded to have valuation relevance if it is used by analysts in the valuation process. Hence, valuation relevance offers an alternative way of measuring information usefulness.

Details

Management Research News, vol. 29 no. 9
Type: Research Article
ISSN: 0140-9174

Keywords

Content available
Article
Publication date: 4 September 2019

Wahyudin Nor, Muhammad Hudaya and Rifqi Novriyandana

The purpose of this paper is to examine the extent to which audit opinion, audit findings, follow-up audit recommendations, level of education, level of welfare and heads…

Abstract

Purpose

The purpose of this paper is to examine the extent to which audit opinion, audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment influence the disclosure of financial statements on the official website of local government.

Design/methodology/approach

The data of this research comprise 68 financial statements during the period 2015–2016 collected from 34 local governments across Indonesia by employing the census method. The data then are analyzed using logistic regression.

Findings

The results of this study show that audit opinion has a positive significant influence on the disclosure of financial statements on local government websites in Indonesia, while the audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment have no significant influences on the disclosure of financial statements local governments’ websites across Indonesia.

Originality/value

The study contributes to the public sector accounting research by enhancing our understanding to the disclosure of financial statements on local government websites.

Details

Asian Journal of Accounting Research, vol. 4 no. 1
Type: Research Article
ISSN: 2443-4175

Keywords

To view the access options for this content please click here
Article
Publication date: 14 March 2019

Francisco Bravo and Maria Dolores Alcaide-Ruiz

The purpose of this paper is to examine the association between the financial expertise (accounting and non-accounting) of female directors in the audit committee and the…

Abstract

Purpose

The purpose of this paper is to examine the association between the financial expertise (accounting and non-accounting) of female directors in the audit committee and the voluntary disclosure of financial forward-looking information.

Design/methodology/approach

The sample is composed of companies belonging to the Standard and Poor`s 100 Index in 2016. Content analysis techniques are used to analyze both information disclosed in annual reports and the financial expertise of female directors.

Findings

The results fail to find an association between the presence of women in the audit committee and the disclosure of financial forward-looking information. However, the disclosure of this information is associated with the presence of female audit committee members with financial expertise, especially accounting expertise.

Research implications

The academic implications are related with the need for a consideration of the personal attributes of female directors to understand their role in the boardroom or on subcommittees.

Practical implications

Given the importance of financial forward-looking information in the capital markets, these findings will also help policymakers and managers to implement effective corporate governance structures and will have significant implications for the selection of female audit committee members.

Originality/value

This paper is the first to examine whether the specific expertise of female directors, beyond mere gender, makes a difference in financial forward-looking disclosure strategies.

Details

Gender in Management: An International Journal , vol. 34 no. 2
Type: Research Article
ISSN: 1754-2413

Keywords

To view the access options for this content please click here
Article
Publication date: 19 April 2011

Susanne Arvidsson

The purpose of this paper is to analyse the management teams' views regarding different aspects related to the disclosure of non‐financial information in the annual…

Abstract

Purpose

The purpose of this paper is to analyse the management teams' views regarding different aspects related to the disclosure of non‐financial information in the annual report. The focus is on the following aspects: incentive, quantity, focus, use of non‐financial key performance indicators (KPIs) and trends.

Design/methodology/approach

The data are based on a comprehensive questionnaire survey addressed to investor‐relation managers (IRMs) at the largest companies listed on the Stockholm Stock Exchange.

Findings

The study confirms an increasing focus of non‐financial information related to intangible assets in corporate disclosure. This increase appears to be both regulatory and demand driven. Encouraging indeed is that management teams seem to have acknowledged the importance not only to describe the less tangible values per se, but also to explain the roles they play in the value‐creation process and in corporate strategy. Furthermore, the study reveals a trend shift from research and development (R&D) and relational information towards corporate social responsibility (CSR) and employee‐related information, an increasing number of non‐financial KPIs and a positive attitude to mandatory requirements. Overall, the findings indicate that voluntary disclosure compensates for the deficiencies of financial statements to properly disclose intangible assets. This may lessen the risk of the argued impairment of the efficient allocation of resources on the stock market.

Practical implications

The findings reveal that quite a few challenges lie ahead in shaping efficient corporate disclosures where also intangible assets are in focus. The most critically relate to dealing with the concerns of reliability and comparability associated with disclosures of intangible assets and their related non‐financial KPIs. This needs to be taken on promptly by management teams, policy makers and financial market regulators if the corporate‐disclosure process shall function efficiently and facilitate decreased information asymmetry and uphold an efficient allocation of resources on the stock market.

Originality/value

Herein not only one aspect related to disclosure of non‐financial information is being analysed, but also several and from a management‐team perspective, which is a perspective often neglected for the sophisticated‐user perspective.

Details

Journal of Intellectual Capital, vol. 12 no. 2
Type: Research Article
ISSN: 1469-1930

Keywords

To view the access options for this content please click here
Article
Publication date: 14 November 2016

Ali Ahmadi and Abdelfettah Bouri

This research paper aims to identify and measure the contribution of the financial safety act (FSA) regulation in improving the level of financial disclosure of listed…

Abstract

Purpose

This research paper aims to identify and measure the contribution of the financial safety act (FSA) regulation in improving the level of financial disclosure of listed Tunisian firms. To answer the problems of the subject, the authors tried to hold accountable several determinants of the level of financial disclosure relating to the particular characteristics of the firm, and the adoption of the recommendations envisaged by the FSA, as likely to have an impact on the level of financial disclosure of Tunisian firms.

Design/methodology/approach

With a sample composed by 20 companies during the period from 2003 to 2010 (160 observations), the contribution of the FSA regulation in improving the level of financial disclosure of listed Tunisian firms was identified and measured. After that, the levels of financial disclosure before and after the FSA were compared.

Findings

The study results confirm the positive and significant effect of the FSA on the level of financial disclosure. This impact seems to appear through the improvement of the disclosure level during the years which follow the adoption of the new regulation. The results of this study also show that firms with a high level of financial disclosure are those which have an independent board of directors, auditor BIG and joint audit.

Originality/value

This paper is devoted to evaluate the impact of the FSA n°2005-96 and corporate governance on the level of financial disclosure. The empirical study relates to a sample of 20 firms listed on the Tunis Stock Exchange observed over the period 2003-2010.

Details

International Journal of Law and Management, vol. 58 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

To view the access options for this content please click here
Article
Publication date: 6 February 2019

Anne-Kathrin Hinze and Franziska Sump

The purpose of this paper is to systematise the current state of research on the association between companies’ corporate social responsibility (CSR) engagement and…

Abstract

Purpose

The purpose of this paper is to systematise the current state of research on the association between companies’ corporate social responsibility (CSR) engagement and financial analysts’ company assessment. Additionally, it aims to identify fruitful directions for future research that contribute to a further exploration of the link between CSR and financial analysts.

Design/methodology/approach

This study reviews and synthesises existing research on CSR and financial analysts. Based on the research question, “What is the relationship between CSR engagement and financial analysts’ metrics?,” the authors conduct a systematic literature review. The authors search three major databases and use an extensive search term to ensure exhaustive coverage of the field. The paper then systemises the current state of research and identifies knowledge gaps and potential directions for future research.

Findings

The review of existing research shows that several studies confirm a positive link between CSR performance and analyst coverage, suggesting that external monitoring through analysts incentivises companies to enhance their CSR engagement. Further, results indicate that a company’s involvement in “sin” industries is linked to lower analyst coverage. Besides, a higher level of CSR disclosure is positively associated with analyst forecast accuracy, thus indicating that the provision of CSR-related information is linked to an enhanced information environment. High levels of CSR performance are associated with more positive recommendations from analysts. However, recent surveys and interview studies on analysts’ perceptions of CSR fail to uniformly support an increasing interest in CSR.

Research limitations/implications

For a better understanding of the link between CSR engagement and financial analysts, two fruitful directions for future research are observed. First, future research designs should clearly differentiate between CSR disclosure and CSR performance and take account of interdependencies between them. Second, studies should address behavioural insights into how analysts process information and the influence of individual analyst characteristics on the link between CSR engagement and an analyst’s assessment of a company.

Originality/value

This study is the first to review the literature on the relationship between CSR and financial analysts. The association between CSR and financial analysts is particularly interesting given the pivotal role financial analysts play as information intermediaries in financial markets. This study delivers an in-depth understanding of existing studies and their theoretical underpinnings. Based on the existing literature, this paper develops innovative directions for future research.

Details

Sustainability Accounting, Management and Policy Journal, vol. 10 no. 1
Type: Research Article
ISSN: 2040-8021

Keywords

To view the access options for this content please click here
Article
Publication date: 6 March 2019

Francisco J. López-Arceiz, Lourdes Torres and Ana J. Bellostas Ana J. Bellostas

The economic literature shows contradictory results when the relationship between corporate governance and financial position is assessed. The purpose of this paper is to…

Abstract

Purpose

The economic literature shows contradictory results when the relationship between corporate governance and financial position is assessed. The purpose of this paper is to analyze the role of the online disclosure of information, as an omitted variable, in this relationship.

Design/methodology/approach

In order to test the role of the online disclosure of information, a set of the structural equation models is evaluated. In these models, the indirect effect of the online disclosure on the relationship between corporate governance and the financial position, defined by performance, funding and investment, is analyzed.

Findings

Using data from a sample of 252 Spanish public non-profits between 2012 and 2016, the authors found that the development of corporate governance practices is not, by itself, able to improve the financial position of these organizations. These improvements can only be achieved if the online disclosure is promoted.

Research limitations/implications

Organizations should not only follow corporate governance practices but also communicate to the stakeholders the degree of development of these practices in an exercise of accountability. Finally, Web 3.0 practices must be promoted because they can be a mechanism to reinforce corporate governance practices and achieve a solid financial position.

Originality/value

This study contributes to the debate about the role of the online disclosure, introducing this transparent practice as a variable omitted by previous research. Moreover, the authors have considered the evolution for a period of four years in relation to the information published by each organization on the internet.

Details

Online Information Review, vol. 43 no. 5
Type: Research Article
ISSN: 1468-4527

Keywords

1 – 10 of over 20000