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11 – 20 of 42Manuel Castelo Branco and Lucia Lima Rodrigues
This study examines social responsibility information disclosure on the Internet by Portuguese listed companies in 2003 and also analyses annual reports as a disclosure medium for…
Abstract
This study examines social responsibility information disclosure on the Internet by Portuguese listed companies in 2003 and also analyses annual reports as a disclosure medium for those companies which disclose such information on their web pages. The results are interpreted through the lens of legitimacy theory, according to which companies disclose social responsibility information to present a socially responsible image so that they can legitimise their behaviours to their stakeholder groups. Companies in sectors that have a larger potential impact on the environment or in industries with a high visibility among consumers seem to exhibit greater concern to improve the corporate image through social responsibility information disclosure. Results thus suggest that legitimacy theory may be an explanation of social responsibility disclosure by Portuguese listed companies.
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.
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.
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Manuel Castelo Branco and Lúcia Lima Rodrigues
The purpose of this paper is to examine the social responsibility disclosure (SRD) on the internet by Portuguese companies which are engaged in processes of obtaining or enhancing…
Abstract
Purpose
The purpose of this paper is to examine the social responsibility disclosure (SRD) on the internet by Portuguese companies which are engaged in processes of obtaining or enhancing a good social responsibility reputation and are confident of having a good social performance pertaining to the human resources area – the best companies to work for (BCWF).
Design/methodology/approach
A matched pair approach is used to address the empirical question of whether the SRD on the internet of the BCWF differs from that of a benchmark group of companies selected by matching industry and size. Using a resource‐based perspective (RBP) the hypothesis that the BCWF disclose more social responsibility information is analysed.
Findings
Results suggest that BCWF do disclose more items of social responsibility information than control companies, which allows thinking that companies which want to have a good social responsibility reputation and think that their social performance relating to their employees is good, recognize the need to use SRD also to influence their perception of its reputation.
Research limitations/implications
The sample is small. There may be content analysis issues associated with subjectivity in the coding process and the use of a limited content analysis method.
Originality/value
It adds to the scarce research on SRD by Portuguese companies by providing new empirical data and extends prior research using RBPs.
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Lídia Oliveira, Lúcia Lima Rodrigues and Russell Craig
The purpose of this paper is to analyse voluntary disclosures of intellectual capital (IC) items in the sustainability reports of Portuguese companies. The paper aims to highlight…
Abstract
Purpose
The purpose of this paper is to analyse voluntary disclosures of intellectual capital (IC) items in the sustainability reports of Portuguese companies. The paper aims to highlight the level, pattern and determinants of IC disclosures in those sustainability reports; and the potential for sustainability reports to be a medium for IC disclosures.
Design/methodology/approach
An index of voluntary disclosure of intangibles is constructed and deployed to analyse IC disclosures in the sustainability reports for 2006 of Portuguese firms, published on the web site of the Portugal's Business Council for Sustainability Development. Four hypotheses are tested about associations between that disclosure index and firm‐specific variables.
Findings
Disclosure of information about IC is more likely in sustainability reports of firms that have a higher level of application of the Global Reporting Initiative framework, and are listed companies.
Research limitations/implications
This study is cross‐sectional. Subjective judgment is involved in constructing the disclosure index.
Practical implications
The observed level and pattern of disclosure of IC information suggests that the preparation of a sustainability report is an opportune starting point for the development of IC reporting.
Originality/value
The study highlights the determinants of IC disclosures in sustainability reports; the high incidence of such disclosures; and points to the enhancement of legitimacy and reputation as potential incentives for firms to engage in such practice.
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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…
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.
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Delfina Gomes, Garry D. Carnegie and Lúcia Lima Rodrigues
The purpose of this paper is to look at the adoption of double entry bookkeeping at the Royal Treasury, Portugal, on its establishment in 1761 and the factors contributing to this…
Abstract
Purpose
The purpose of this paper is to look at the adoption of double entry bookkeeping at the Royal Treasury, Portugal, on its establishment in 1761 and the factors contributing to this development. The Royal Treasury was the first central government organization in Portugal to adopt double entry bookkeeping and was a crucial first step in the institutionalisation of the technique in Portuguese public administration.
Design/methodology/approach
Set firmly in the archive, this paper adopts new institutional sociology (NIS) to inform the findings of the local, time‐specific accounting policy and practice at the Portuguese Royal Treasury.
Findings
Embedded within the broader European context, this study identifies the key pressures exerted upon the Royal Treasury on its formation in 1761, which resulted in major accounting change within Portuguese central government from that date. The study provides further evidence of the importance of the state in the institutionalization of accounting practices by means of coercive pressures and highlights for Portugal the importance of individual actors who, as powerful change agents, made key decisions that influenced accounting change.
Originality/value
This study examines a major instance of accounting change in European central government and broadens the application of NIS in accounting history research to a different country – Portugal – and to a different time – the eighteenth century. It also serves to illuminate the difficulties of collecting pertinent evidence pertaining to this long‐dated time period in identifying certain forms of institutional pressures.
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Graciete Andreia Costa, Lídia Cristina Oliveira, Lúcia Lima Rodrigues and Russell Craig
In most European code-law oriented Latin countries, the publication of a CEO's letter to shareholders in a company's annual report is a fairly recent phenomenon. In this paper…
Abstract
Purpose
In most European code-law oriented Latin countries, the publication of a CEO's letter to shareholders in a company's annual report is a fairly recent phenomenon. In this paper, the authors seek to determine the characteristics that explain why companies in one such country, i.e. Portugal, published a CEO letter.
Design/methodology/approach
The paper's holistic theoretical framework draws on elements of agency theory, institutional theory and signalling theory. To understand the characteristics of Portuguese holding companies that published CEO letters, the authors used a logistic regression model to explore 266 observations over the years 2006-2011.
Findings
The publication of a CEO letter becomes more likely if a firm is audited by a Big 4 accounting firm; has a higher level of profitability; and has a high number of foreign subsidiaries. Other findings are that finance companies are slightly more likely to publish a CEO letter than non-finance companies. The number of CEO letters increased to a peak in 2008, and then declined.
Practical implications
The increasing number of companies now publishing a CEO letter raises the concern for regulatory authorities of whether the content of the CEO letter should be audited, since any numbers presented in the management report have to be audited in Portugal.
Originality/value
To the best of the authors' knowledge this is the first empirical exploration of the characteristics that explain why companies publish a CEO letter. Mimetic and normative isomorphism is revealed to be a potentially important influence, since there is a tendency of companies audited by Big 4 accounting companies, and with foreign subsidiaries, to publish a CEO letter.
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Lídia Oliveira, Lúcia Lima Rodrigues and Russell Craig
This paper seeks to identify factors that influence the voluntary disclosure of intangibles information in annual reports of Portuguese listed companies.
Abstract
Purpose
This paper seeks to identify factors that influence the voluntary disclosure of intangibles information in annual reports of Portuguese listed companies.
Design/methodology/approach
An index of the voluntary disclosure of intangibles is constructed based on analysis of the Management Report and Chairman's Letter of all 56 companies listed on Euronext Lisbon at 31 December 2003. Several hypotheses about associations between that index and eight firm‐specific variables are tested.
Findings
The voluntary reporting of intangibles is found to be influenced significantly by size, ownership concentration, type of auditor, industry and listing status in univariate analysis; and by size, industry, type of auditor, and ownership concentration (and listing status to a lesser extent) in multivariate analyses.
Research limitations/implications
This study focuses on annual reports only, and is cross‐sectional. The use of content analysis and the subjective judgment involved in constructing the index cannot be view uncritically. The small sample size is inevitable because of the small Portuguese capital market.
Practical implications
Accounting regulators will be better able to understand the factors that explain the voluntary disclosure of intangibles by firms and use this in developing future recommendations.
Originality/value
The paper validates some previous research and also provides insights to the firm‐specific factors that explain voluntary disclosure of intangibles by companies operating in the small share market of a European country in which capital market fund raising is not regarded to be an important source of financing.
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Manuel Castelo Branco and Lúcia Lima Rodrigues
The purpose of this paper is to ascertain whether Portuguese banks use their web sites as a medium to disclose social responsibility information and identify what types of this…
Abstract
Purpose
The purpose of this paper is to ascertain whether Portuguese banks use their web sites as a medium to disclose social responsibility information and identify what types of this kind of information they disclose, and compare such disclosure with similar disclosure in annual reports.
Design/methodology/approach
Examines social responsibility information disclosure on the internet by Portuguese banks in 2004 and compares the internet and 2003 annual reports as disclosure media using content analysis.
Findings
Banks with a higher visibility among consumers seem to exhibit greater concern to improve the corporate image through social responsibility information disclosure. Results thus suggest that legitimacy theory may be an explanation of social responsibility disclosure by Portuguese banks.
Research limitations/implications
The sample is small, although it is constituted by all the relevant Portuguese banks.
Originality/value
Contributes to the scarce literature on social responsibility disclosure by financial institutions. A proxy for public visibility of banks which has not been previously used is proposed in this study.
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Filomena Antunes Brás and Lúcia Lima Rodrigues
This paper aims to analyse two competing approaches to accounting for a firm's investment in staff‐training activities: the accounting and labour economics approach (which argues…
Abstract
Purpose
This paper aims to analyse two competing approaches to accounting for a firm's investment in staff‐training activities: the accounting and labour economics approach (which argues that no asset should be recognized from training activity); and the human resources management approach (which advocates recognition of an asset).
Design/methodology/approach
A case study analysis was conducted in two large Portuguese companies where human capital is said to be a critical factor of firm success. The authors used document analysis and interviews to help understand the training phenomenon from a company's point of view. This meant knowing of motivations, training programme curricula, training practices and expected benefits of training.
Findings
The paper identifies and defines two situations concerning a firm's investment in human capital training: one, where no asset (value) is generated; and the other, where the accounting definition of an asset, requiring value generation, is satisfied.
Research limitations/implications
Case studies possess the strength of specific instance detail and interpretation, and the ostensible weakness of interpretation of a small sample. But such research can provide for a reframing of conceptual perspectives. They can stimulate additional efforts to improve accounting and financial reporting.
Practical implications
A guideline system for firm investment in training was developed. This system allows different accounting treatments of a firm's investment in training activity. It proceeds on the basis of perceptions of whether training activity undertaken by a firm generates, or does not generate, value.
Originality/value
This paper provides a much‐needed case‐based empirical analysis of accounting and human capital arguments, and asset recognition arguments. It clarifies the situations in which an asset should be regarded as being generated by training expenditure.
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