Search results

1 – 10 of 106
Open Access
Article
Publication date: 10 February 2022

Graça Azevedo, Jonas Oliveira, Luiza Sousa and Maria Fátima Ribeiro Borges

The purpose of this paper to analyze the risk reporting practices and its determinants of commercial banks during the period of the adoption of the Basel II Accord in Portugal.

1303

Abstract

Purpose

The purpose of this paper to analyze the risk reporting practices and its determinants of commercial banks during the period of the adoption of the Basel II Accord in Portugal.

Design/methodology/approach

The paper conducts a content analysis of the risk and risk management sections included in the management reports and the notes of the annual reports of Portuguese commercial banks, for the years 2007, 2010 and 2013.

Findings

Findings show that theoretical frameworks underpinned in agency and legitimacy theories continue to provide valid explanations for risk reporting by Portuguese banks. More specifically, findings indicate that agency costs, public visibility and reputation are crucial drivers of risk reporting. Findings also indicate that younger banks with lower risk management skills use risk reporting either as an informational process or as a channel to manage organizational legitimacy.

Research limitations/implications

The content analysis does not allow readily for in-depth qualitative inquiry. The coding instrument is subject to coder bias. Information about risk can be provided in sources other than annual reports. Additionally, not all banks disclose information on corporate governance-related variables that could also influence risk reporting.

Originality/value

The current research setting has never been studied hitherto. In this sense, this study seems to be of great relevance given the scarcity of literature on the subject in Portugal.

Details

Asian Review of Accounting, vol. 30 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 14 May 2018

Jonas Oliveira, Rogério Serrasqueiro and Sara Nunes Mota

This paper aims to assess the risk reporting practices extent to which firm’s and corporate governance characteristics explain risk-related disclosures (RRD) motivations across…

1086

Abstract

Purpose

This paper aims to assess the risk reporting practices extent to which firm’s and corporate governance characteristics explain risk-related disclosures (RRD) motivations across two European Latin countries (Portugal and Spain). Moreover, drawn on elements of agency, legitimacy, resources-based perspectives and institutional theory, this study also intends to assess whether the influence of corporate governance mechanisms on risk reporting is mediated by strategic/institutional legitimacy interests.

Design/methodology/approach

From a sample of 60 non-finance Portuguese and Spanish companies with securities traded on the Euronext Lisbon stock exchange market and on the Madrid stock exchange market, respectively, at December, 2011, the Corporate Governance reports and the “risk/risk management” sections of the Management reports included on consolidated annual reports for 2011 were manually content analysed, according to prior literature. Further, multiple linear regressions were used to assess the potential relationships between corporate governance mechanisms and risk reporting. The paper’s theoretical framework draws on elements of agency, legitimacy, resources-based perspectives and institutional theory. To understand the risk reporting practices of Portuguese and Spanish non-finance listed companies, the paper conducts a content analysis of 60 consolidated annual reports for 2011.

Findings

Results indicate that visible companies, operating in a country with a weaker legal environment, and during periods of financial distress disclose more discretionary RRD, basically to contextualize their negative outcomes. Some corporate governance mechanisms were crucial to improve risk information.

Originality/value

The paper goes beyond prior literature work and assesses whether the theoretical framework grounded on agency, legitimacy, resources-based perspective and institutional theory is suitable in explaining RRD in an under-researched setting (European Latin countries, such as Portugal and Spain, with low agency costs and different corporate governance models). Moreover, the analysis embraces a wider and homogeneous range of internal and external corporate governance mechanisms and uses a period in which both countries were severely affected by a sovereign debt crisis with negative impacts on company’s liquidity and financial risks. A research setting like this has not been studied hitherto.

Details

European Business Review, vol. 30 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Open Access
Article
Publication date: 31 March 2022

Rogério Serrasqueiro and Jonas Oliveira

The study aims to analyse annual reports of the non-financial European firms listed at the EURO STOXX 50 index over the period of 2007 and 2011.

1382

Abstract

Purpose

The study aims to analyse annual reports of the non-financial European firms listed at the EURO STOXX 50 index over the period of 2007 and 2011.

Design/methodology/approach

This study intends to address two main issues: to what extent the country-level institutional forces compel (directly) firm's risk reporting (RR) behaviour and in which way these country-level institutional forces moderate the relationship between RR and firm-level characteristics.

Findings

Main findings indicate that, during this period, the European listed companies disclosed more risk information on a voluntary basis (such as operational and strategic risks) and with better informative content (more forward-looking and focused on positive news). Consistent with institutional theory, findings confirm that the country-level institutional forces explain variations on RR. Additionally, it also indicates that the relationship between RR and leveraged firms is weaker among countries with stronger institutional forces. These findings have several implications for investors and regulators in Europe basically in helping achieve efficiency in investment decisions and to stimulate further efforts to improve RR regulations.

Originality/value

This study makes two major contributions. First, it extends Elshandidy's et al. (2015) work by using other country-level institutional forces that capture the efficacy of corporate boards, the protection of minority shareholders' interests, country's level of democracy, law enforcement mechanisms and press freedom. Second, it uses firms that are considered as a blue-chip representation of super-sector leaders in the Eurozone (but from different institutional contexts). This research setting can be more insightful in shedding some light towards our understanding on how these leading firms can promote innovative and high quality level of RR and how country-level driving forces influence these variables.

Details

Asian Review of Accounting, vol. 30 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 7 October 2019

Maria Teresa Bianchi, Patrícia Monteiro, Graça Azevedo, Jonas Oliveira, Rui Couto Viana and Manuel Castelo Branco

This paper aims to examine the relation between firms’ political connections and corporate social responsibility (CSR) reporting in Portugal. The authors argue that in settings…

Abstract

Purpose

This paper aims to examine the relation between firms’ political connections and corporate social responsibility (CSR) reporting in Portugal. The authors argue that in settings where the existence of political connections are viewed as damaging collective interests of stakeholders, political connected firms can deal with legitimacy issues from such connections by resorting to CSR practices and the reporting thereof.

Design/methodology/approach

Using archival data from a panel sample of 36 firms from Portugal between 2009 and 2012, the authors examine the relationship between political connections and CSR reporting by way of regression analysis.

Findings

The authors find a positive relationship between political connections and CSR reporting.

Originality/value

This study draws on legitimacy theory to highlight that CSR can be used to deal with stakeholder activism and vigilance pertaining to suspicion related to the existence of political connections.

Details

Journal of Financial Crime, vol. 26 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 17 April 2019

Jonas da Silva Oliveira, Graça Maria do Carmo Azevedo and Maria José Pires Carvalho Silva

This study aims to explore the firm’s and country-level institutional forces that determine banks’ CSR reporting diversity, during the recent global financial crisis.

Abstract

Purpose

This study aims to explore the firm’s and country-level institutional forces that determine banks’ CSR reporting diversity, during the recent global financial crisis.

Design/methodology/approach

Specifically, this study assesses whether economic and institutional conditions explain CSR disclosure strategies used by 30 listed and unlisted banks from six countries in the context of the recent 2007/2008 global financial crisis. The annual reports and social responsibility reports of the largest banks in Canada, the UK, France, Italy, Spain and Portugal were content analyzed.

Findings

The findings suggest that economic factors do not influence CSR disclosure. Institutional factors associated with the legal environment, industry self-regulation and the organization’s commitments in maintaining a dialogue with relevant stakeholders are crucial elements in explaining CSR reporting. Consistent with the Dillard et al.’s (2004) model, CSR disclosure by banks not only stems from institutional legitimacy processes, but also from strategic ones.

Practical implications

The findings highlight the importance of CSR regulation to properly monitor manager’s’ opportunistic use of CSR information and regulate the assurance activities (regarding standards, their profession or even the scope of assurance) to guarantee the proper credibility reliability of CSR information.

Originality/value

The study makes two major contributions. First, it extends and modifies the model used by Chih et al. (2010). Second, drawn on the new institutional sociology, this study develops a theoretical framework that combines the multilevel model of the dynamic process of institutionalization, transposition and deinstitutionalization of organizational practices developed by Dillard et al. (2004) with Campbell’s (2007) theoretical framework of socially responsible behavior. This theoretical framework incorporates a more inclusive social context, aligned with a more comprehensive sociology-based institutional theory (Dillard et al., 2004; Campbell, 2007), which has never been used in the CSR reporting literature hitherto.

Details

Meditari Accountancy Research, vol. 27 no. 2
Type: Research Article
ISSN: 2049-372X

Keywords

Book part
Publication date: 4 May 2021

Cláudia Pinto, Graça Azevedo and Jonas Oliveira

The present chapter tries to assess the state of art of enterprise risk management (ERM) among Portuguese non-financial companies regarding two main aspects: the ERM background in…

Abstract

The present chapter tries to assess the state of art of enterprise risk management (ERM) among Portuguese non-financial companies regarding two main aspects: the ERM background in Portugal and the level of disclosure of ERM practices by non-financial listed companies. Since the analysis of disclosures is useful to understand the level of evolution and adoption of ERM framework we tried to assess the ERM practices disclosed by 26 Portuguese non-financial listed companies at the Euronext Lisbon Stock Exchange regulated market, during the period of 2006–2016. Main findings indicate that regulation on ERM in Portugal emanates from three main Codes (The Portuguese Companies Code, The Stock Exchange Code, and The Corporate Governance Code). The ERM professionalization in Portugal is its infancy and has been promoted mainly by the Institute of Portuguese Internal Auditors. Moreover, research on topics such as risk reporting and risk management/ERM is very scarce. Overall, findings of prior literature are consistent with results from our exploratory study. We conclude that Portuguese non-financial listed companies still disclose very little information on ERM activities. However, over the period of analysis, the disclosure practices evolved positively. Findings show that ERM disclosure can still be extensively improved in the future.

Details

Enterprise Risk Management in Europe
Type: Book
ISBN: 978-1-83867-245-4

Keywords

Article
Publication date: 26 July 2011

Jonas Oliveira, Lúcia Lima Rodrigues and Russell Craig

This paper aims to explore the factors that affected the voluntary risk‐related disclosures (RRD) in the individual annual reports for 2006 of Portuguese banks. It also explores…

2144

Abstract

Purpose

This paper aims to explore the factors that affected the voluntary risk‐related disclosures (RRD) in the individual annual reports for 2006 of Portuguese banks. It also explores the extent to which those reports conformed to Basel II requirements in terms of the voluntary disclosure of operational risk and capital structure and adequacy matters.

Design/methodology/approach

The authors conduct a content analysis of the annual reports of a sample of 111 banks. Voluntary operational risk and capital structure and adequacy disclosures were assessed using a list of disclosure categories that were developed from the Third Pillar disclosure requirements of the Basel II Accord.

Findings

Stakeholder monitoring and corporation reputation are crucial factors that explain the risk reporting practices observed. Voluntary risk reporting appears to enhance legitimacy for two major reasons: first, by fulfilling institutional pressures to assure the effectiveness of market discipline; and second, by managing stakeholder perception of a corporation's reputation.

Originality/value

The voluntary RRD observed are shown to be explained by legitimacy theory and resources‐based perspectives. This theoretical framework has not been tested hitherto in explaining the motives for banks to make voluntary RRD.

Details

Journal of Financial Regulation and Compliance, vol. 19 no. 3
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 11 October 2011

Jonas Oliveira, Lúcia Lima Rodrigues and Russell Craig

The purpose of this paper is to assess the risk‐related disclosure (RRD) practices in annual reports for 2005 Portuguese companies in the non‐finance sector.

3743

Abstract

Purpose

The purpose of this paper is to assess the risk‐related disclosure (RRD) practices in annual reports for 2005 Portuguese companies in the non‐finance sector.

Design/methodology/approach

The paper conducts a content analysis of a sample of 81 companies (42 listed and 39 unlisted). In considering corporate governance effects, the sample is reduced to the 42 listed companies that are required to disclose a corporate governance report.

Findings

Implementation of IAS/IFRS and the European Union's Modernisation Directive in 2005 did not affect the quantity and quality of RRD positively. Disclosures are generic, qualitative and backward‐looking. Public visibility (as assessed by size and environmental sensitivity) is a crucial influence in explaining RRD: companies appear to manage their reputation through disclosure of risk‐related information. Agency costs associated with leverage are important influences also. In listed companies, the presence of independent directors improves the level of RRD.

Research limitations/implications

Content analysis does not allow readily for in‐depth qualitative inquiry. The coding instrument is subject to coder bias. Information about risk can be provided in sources other than annual reports. The study is confined to one year/one country and pre‐dates the global financial crisis (GFC) (2008) and the implementation of IFRS 7 (2007).

Originality/value

The results point to the desirability of enhancing accountability by mandating further disclosure of substantive and relevant risk‐related information in company annual reports. The RRD observed are shown to be explained by a confluence of agency theory, legitimacy theory and resources‐based perspectives.

Details

Managerial Auditing Journal, vol. 26 no. 9
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 August 2016

Jonas Oliveira, Graça Azevedo and Fátima Borges

Drawn on social psychology theory of impression management (IM), the purpose of this paper is to assess the way Portuguese managers build their narratives in chairman’s statement…

1218

Abstract

Purpose

Drawn on social psychology theory of impression management (IM), the purpose of this paper is to assess the way Portuguese managers build their narratives in chairman’s statement (CS) to manage stakeholders’ perceptions on corporate image, in a period of time of scarce resources.

Design/methodology/approach

The paper’s theoretical framework draws on elements of social psychology theory of IM developed by Leary and Kowalski (1990). Through the use of the two-component model of IM (impression motivation and impression construction) the 45 CSs of Portuguese non-finance companies were content analysed to understand how managers build their voluntary communication strategies.

Findings

Results indicate that organisational outcome does not influence the adoption of IM strategies. But public visibility and consumer proximity are crucial factors in explaining them. Larger companies with high consumer proximity present themselves in a favourable way, but consistent with an overall reading of the annual report. These companies show a higher level of verbosity, consistent to the argument of retrospective rationality.

Originality/value

The present study goes beyond Merkl-Davies et al. (2011) work and obtains insightful knowledge on the influence of goal relevance of impression in three different perspectives: company’s public visibility, company’s dependency from debtholders, and consumer proximity. Moreover, the analysis uses a period of scarce resources and a European Latin country, with no tradition in publishing CSs, but that recently has changed its financial reporting practices from an institutional code-law logic to an institutional common-law logic. A research setting like this has not been studied hitherto.

Details

Corporate Communications: An International Journal, vol. 21 no. 3
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 6 July 2015

Jonas da Silva Oliveira, Graça Maria do Carmo Azevedo, Cláudia da Silva Amaral Santos and Sandra Cristina Santos Vasconcelos

The purpose of this paper is twofold. First, it intends to assess the level of comparability of the fair value-based valuation criteria for biological assets of Portuguese dairy…

1628

Abstract

Purpose

The purpose of this paper is twofold. First, it intends to assess the level of comparability of the fair value-based valuation criteria for biological assets of Portuguese dairy farms after the adoption of the Portuguese Accounting Standardization System. Second, it presents an innovative valuation model to assess the fair value of dairy herds.

Design/methodology/approach

The paper conducts a multiple case study at dairy farms in the central region of Portugal which had adopted the new Accounting Standardization System. Data were captured through interviews to assess how dairy farms were using the new valuation criteria required by this recent accounting frame of reference. A proposal for a model to measure fair value is presented.

Findings

Main findings indicate that market values for dairy production animals are inconsistent, reducing financial information comparability levels. To solve these problems, the authors propose a new model to assess fair value based on the net present value (NPV) of future cash-flows. This is a possible method to measure bovines that are in a breeding stage and it will assure the comparability of financial statements among dairy farms.

Research limitations/implications

The study is confined to one case study and one country, not allowing generalization.

Originality/value

Results indicate the need to harmonize one possible method for measuring cattle that are in a breeding stage. In order to overcome these shortcomings, a model was designed to calculate the fair value of dairy production based on the NPV of future economic benefits.

Details

Agricultural Finance Review, vol. 75 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

1 – 10 of 106