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Open Access
Article
Publication date: 16 May 2020

Martin H. Kunc, Maria Cleofe Giorgino and Federico Barnabè

According to the “strategic focus and future orientation” principle of the integrated reporting (<IR>) framework, <IR> should provide information useful to support investors in…

1665

Abstract

Purpose

According to the “strategic focus and future orientation” principle of the integrated reporting (<IR>) framework, <IR> should provide information useful to support investors in assessing the future financial performance of organizations. This study aims to support the operationalization of this function by improving the forward-looking orientation of the integrated report.

Design/methodology/approach

Basing on the backward- and forward-looking disclosure in <IR> and the dynamic resource-based view (DRBV), this study develops an explorative case study building a quantitative simulation model based on an integrated report.

Findings

This study provides useful insights into how operationalizing the <IR> “future orientation” and obtaining more quantitative information on the organization’s capacity to create value in the future by applying DRBV and quantitative simulation modeling.

Research limitations/implications

The article presents one case study to explore the method suggested to improve the <IR> forward-looking orientation. Additional case studies applying the same research design should be certainly useful to refine the method.

Practical implications

Supporting the <IR> forward-looking orientation, this study provides additional information for the decision-making process of investors, thus contributing to the efficient and productive allocation of capital.

Originality/value

Few studies have investigated forward-looking information in integrated reports, highlighting the existence of an “information gap” referred to such disclosure. Overcoming these previous results, the study provides useful insights on how to improve the <IR> forward-looking orientation.

Details

Meditari Accountancy Research, vol. 29 no. 4
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 23 March 2022

Richard Nana Boateng, Vincent Tawiah and George Tackie

The purpose of this paper is to provide an empirical evidence concerning the influence of Corporate governance and voluntary disclosures in annual reports: a post-International…

8442

Abstract

Purpose

The purpose of this paper is to provide an empirical evidence concerning the influence of Corporate governance and voluntary disclosures in annual reports: a post-International Financial Reporting Standards adoption evidence from an emerging capital market.

Design/methodology/approach

Data were collected from the annual reports of all 22 listed non-financial firms over a five-year period. Using content analysis, the audited annual reports of the firms were scored on the extent of overall and four specific types of voluntary disclosures made. The panel data obtained were analyzed using a generalized ordinary least squares regression model.

Findings

The findings of the study show that voluntary disclosures among the firms are low even after the adoption of IFRS. Corporate governance attributes of board size and board leadership structure are significant determinants of the extent of voluntary disclosures made by the firms. However, board independence and auditor type exhibit only a significant positive effect on voluntary financial and forward-looking information disclosures.

Research limitations/implications

Firms’ voluntary information disclosure and governance variables were restricted to those in annual reports, which may partially reflect the reality of firms’ disclosure and governance practices.

Practical implications

The present study offers useful insights to regulators of the capital market to strengthen monitoring of firms to ensure strict adherence to corporate governance best practice guidelines as a means of improving information environment.

Originality/value

This study is one of the very few ones in Africa, especially in the context of Ghana Stock Exchange, to use post-IFRS data and examine a disaggregated voluntary disclosure by firms.

Details

International Journal of Accounting & Information Management, vol. 30 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

Open Access
Article
Publication date: 27 August 2020

Pappu Kumar Dey, Manas Roy and Mohsina Akter

The study aims to examine the level and extent of forward-looking information (FLI) disclosure and identify the determinants driving the FLI disclosure (FLID) in the context of an…

2602

Abstract

Purpose

The study aims to examine the level and extent of forward-looking information (FLI) disclosure and identify the determinants driving the FLI disclosure (FLID) in the context of an emerging and developing economy.

Design/methodology/approach

The sample includes annual reports of the top 30 listed companies in Bangladesh for the years 2013–2017. The content analysis approach is used to examine the practice of FLID and to determine the extent of FLID based on the index. Multiple linear regression analysis is performed to identify the determinants of FLID.

Findings

This research finds that board size, auditor's global affiliation, leverage and profitability have a substantial positive impact on FLID. By contrast, firm size and listing age have a significant negative association with FLID. Moreover, contrary to our expectation, female representation in the boardroom has an inverse effect on FLID. This study, however, does not suggest any significant impact of board independence.

Research limitations/implications

Small sample size may limit the generalizability of the findings. Besides, the FLID index score may be affected by the subjective judgment while analyzing the content of the annual report.

Practical implications

The findings of this paper may assist the regulators and policymakers in incorporating this new reporting paradigm in regulations. Alternatively, the current research can serve as a basis to further understand the importance of FLID for the stakeholders.

Originality/value

This empirical study contributes to the current FLI literature in Bangladesh. A handful of studies have been done to examine the nature and level of FLID and find out the determinants of FLID in the developing countries. To the best of the authors' knowledge, no study yet has been explored on FLID and its determinants by classifying them as qualitative and quantitative in Bangladesh.

Details

Asian Journal of Accounting Research, vol. 5 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 11 October 2022

Kingstone Nyakurukwa and Yudhvir Seetharam

Literature shows that corporate governance matters more in countries with weak legal environments. The purpose of this study is to synthesise and map research that has been done…

2587

Abstract

Purpose

Literature shows that corporate governance matters more in countries with weak legal environments. The purpose of this study is to synthesise and map research that has been done so far on corporate governance in Zimbabwe, a country that has been characterised by weak legal systems and lack of respect for property rights.

Design/methodology/approach

A systematic review and bibliometric analysis of 20 articles indexed in the Scopus and Web of Science databases was carried out to establish the trends and evolution of corporate governance in Zimbabwe.

Findings

The articles reviewed looked at the association between corporate governance attributes and firm performance, disclosure of information and economic growth. The proportion of independent directors was found to significantly affect firm performance and information disclosure in most of the studies. The majority of the studies used descriptive statistics and simple regression in their methodologies. The stakeholder theory is the most used in the studies reviewed.

Originality/value

The study highlights the need to strengthen the state infrastructure that enhances corporate governance at the firm level. When state-owned companies adhere to good corporate governance practices, this can cascade to the private sector.

Details

Qualitative Research in Financial Markets, vol. 15 no. 2
Type: Research Article
ISSN: 1755-4179

Keywords

Open Access
Article
Publication date: 25 December 2020

Md. Shafiqul Islam

The purpose of this study is observing the disclosure pattern of integrated reporting (IR) and investigating its relationship with a firm's operational, financial and market…

6050

Abstract

Purpose

The purpose of this study is observing the disclosure pattern of integrated reporting (IR) and investigating its relationship with a firm's operational, financial and market growth performance measured in the form of return on assets (ROA), return on equity (ROE) and market-to-book value ratio respectively in the voluntary disclosure regime of Bangladesh.

Design/methodology/approach

This research is quantitative, based on a pooled-OLS regression analysis of 20 firms listed under ten different nonfinancial industries of the Dhaka Stock Exchange (DSE) for three financial years from 2015–2016 to 2017–2018, with 60 firm-year observations. A manual content analysis based on a structured integrated reporting disclosure index (IRDIN) measures the extent of disclosure in the corporate annual reports. The practical model consists of the dependent variable IRDIN and the independent variables ROA, ROE and market-to-book value ratio. The natural logarithm of total assets and financial leverage are the two controlling variables used in the model.

Findings

The findings deduced from the empirical results indicate that the IRDIN is positively and significantly related to all three performance variables. Content analysis shows an increasing pattern of disclosure of the constructed index elements by the sample firms.

Research limitations/implications

A Small sample size may deter the generalization of the research findings in other voluntary disclosure regimes. Self-constructed IRDIN index scores may be affected by subjective judgment while assessing the annual reports.

Practical implications

Capital market regulators can gain valuable insights regarding the suitability of implementing IR in Bangladesh as the results show a positive relationship of firm performance with the adoption of this revolutionary paradigm in corporate reporting.

Originality/value

This study adds value to the existing limited literature of IR disclosure and firm performance in Bangladesh by incorporating content analysis and regression analysis to understand how firms respond to the demand of value creation by the stakeholders in a voluntary disclosure regime. This study captures sample firms from all the nonfinancial industries of Bangladesh with a unique IR index, which is the first of its kind.

Details

Asian Journal of Accounting Research, vol. 6 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 19 February 2024

Halina Waniak-Michalak and Jan Michalak

The study aims to determine whether a relationship exists between the potential significance of corporate controversies for stakeholders and how organisations respond to them in…

Abstract

Purpose

The study aims to determine whether a relationship exists between the potential significance of corporate controversies for stakeholders and how organisations respond to them in their annual and sustainability reports.

Design/methodology/approach

This paper employs content analysis on annual and sustainability reports of 48 listed companies from the Refinitiv database. The logit regression was used to estimate the model.

Findings

The study revealed that the main factors increasing the probability of a controversial issue being addressed in a corporate report are the controversy’s potential significance, companies’ financial performance and lawsuits.

Research limitations/implications

Our study has three major limitations. These are a relatively small sample of companies and reports, focusing on disclosures made in corporate reports and omitting other channels of communication, for example, social media, and a certain amount of subjectivity in the process of coding information.

Social implications

Former studies show that corporations face a serious risk of their hypocritical strategies becoming too evident for stakeholder groups. Our findings suggest that the risk is already materialising and may undermine the idea of CSR and sustainability reporting.

Originality/value

Our research focuses on high-profile adverse incidents widely reported in the media, the omission of which from corporate reports seems to constitute a particular case of organised hypocrite. It also demonstrates that companies use an impression management strategy to defuse adverse publicity and that major controversies cause minor ones to be omitted from their reports.

Details

Central European Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2658-0845

Keywords

Open Access
Article
Publication date: 20 May 2020

James Guthrie, Francesca Manes Rossi, Rebecca Levy Orelli and Giuseppe Nicolò

The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure

2978

Abstract

Purpose

The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure with the adoption of IR.

Design/methodology/approach

The authors use risk classifications already provided in the literature to develop a content analysis of Italian organisations’ integrated reports published.

Findings

The content analysis reveals that most of the Italian organisations incorporate many types of risk disclosure into their integrated reports. Organisations use this alternative form of reporting to communicate risk differently from how they disclose risks in traditional annual financial reporting. That is, the study finds that the organisations use their integrated reports to disclose a broader group of risks, related to the environment and society, and do so using narrative and visual representation.

Originality/value

The paper contributes to a narrow stream of research investigating risk disclosure provided through IR, contributing to the understanding of the role of IR in representing an organisational risk.

Details

Meditari Accountancy Research, vol. 28 no. 6
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 1 March 2022

Nana Adwoa Anokye Effah, Michael Asiedu and Octavia Ama Serwaa Otchere

This work aims to analyze and observe the trends in the literature on corporate governance and disclosure. The study presents bibliometric analyses from the Scopus database for…

2689

Abstract

Purpose

This work aims to analyze and observe the trends in the literature on corporate governance and disclosure. The study presents bibliometric analyses from the Scopus database for the period 1991–2020.

Design/methodology/approach

A bibliometric analysis is conducted on 1,697 studies on corporate governance and disclosure across several countries. The articles were assessed and visualized with Vosviewer based on the authors, sources and countries with the highest publication rate, journals with the most published research and highly cited articles and authors.

Findings

The analyses provide a comprehensive outlook of the field, and the results show the dominance of documents on corporate governance and disclosure in 2020. The results have been discussed with avenues for further research.

Originality/value

This paper focuses on corporate governance and disclosure research from the Scopus database to highlight the extensive and somewhat ignored areas in extant literature. This would aid upcoming researchers in identifying scholars in the field when exploring future research avenues to close ensuing gaps.

Details

Journal of Business and Socio-economic Development, vol. 3 no. 2
Type: Research Article
ISSN: 2635-1374

Keywords

Open Access
Article
Publication date: 26 November 2021

Francesca Bernini, Paola Ferretti and Antonella Angelini

This paper aims to focus on the relation between digital transformation and banks’ reputation, as examined through the information disclosed by the five largest Italian banking…

3660

Abstract

Purpose

This paper aims to focus on the relation between digital transformation and banks’ reputation, as examined through the information disclosed by the five largest Italian banking groups’ efforts to extend and enhance their digital resources. Considering digitalization as a key strategy for managing reputation, which, in turn, can leverage financial and value performance management, the paper investigates whether and how digital activities might affect banks’ reputation. Therefore, this paper proposes the relationship between digitalization and reputation as a lever for performance management and for increasing efficiency.

Design/methodology/approach

The authors use content analysis to generate a digital disclosure index, categorizing activities human, structural and relational. For banks’ reputations, the proxies are a measure of corporate reputation and a reputational risk index. Methodologically the study used multiple case studies, considered as particularly suitable to gain an in-depth understanding of the topic in the case of the five banks. A collection of secondary data and semi-structured interviews are included.

Findings

Overall, the digitalization-reputation link shows that banks’ reputation is variously affected, not only by exposure to risk (including reputational risk) but also by strategic issues such as digitalization and the effectiveness of the corresponding communication. Consequently, banks should view digitalization as a key driver to be considered not in a stand-alone perspective, but in a combined approach.

Research limitations/implications

Continued research should include the Covid-19 implications. Additionally, it would be important to compare a larger number of banks, with different characteristics, also including variables indicating the corporate governance mechanisms.

Practical implications

The analysis contributes to fostering scholars’ and practitioners’ management of the digital transformation challenge that is a current key-factor, capable of increasing banks’ value. It considers not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation.

Originality/value

This paper extends prior research on the digitalization-reputation relation by investigating digital transformation through disclosure of activities in this area within the Italian banking sector. It allows to leverage the key-factors that can contribute to increasing banks’ value, considering not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation.

Details

Meditari Accountancy Research, vol. 30 no. 4
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 30 November 2021

Samya Tahir, Sadaf Ehsan, Mohammad Kabir Hassan and Qamar Uz Zaman

This study examines the moderating effects of low and high levels of voluntary disclosures (VDs) between corporate governance and information asymmetry (IA).

1596

Abstract

Purpose

This study examines the moderating effects of low and high levels of voluntary disclosures (VDs) between corporate governance and information asymmetry (IA).

Design/methodology/approach

The study used PROCESS macro to construct bootstrap confidence intervals at the 95% level to estimate the model, and “simple slope analysis” to visualize the model.

Findings

The better corporate governance provides a monitoring mechanism that disseminates private information and reduces IA. The effect of corporate governance on IA is contingent on the levels of VDs within a firm, and this relationship is strengthened when the level of VDs within a firm is high, and results remain consistent when levels of sub-indices are high. Additional analysis reveals that effective boards and audit committees reduce IA. Increased inside, an associated company, family and foreign ownership exacerbate IA, whereas institutional owners act as effective monitors to overcome informational disadvantages.

Practical implications

The findings provide implications for policymakers to promote corporate governance and more relevant reporting practices as effective mechanisms for protecting shareholders' rights and attenuating IA in capital markets.

Originality/value

The study is valuable to understand the strength of the relationship between corporate governance and information asymmetries based on the moderating role of different VD levels.

Details

Journal of Asian Business and Economic Studies, vol. 30 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

1 – 10 of 103