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Article
Publication date: 19 November 2019

Guang Ma

This study examines the information content of firms’ operations-related disclosures (ORDs) and the importance of these disclosures as an information source to stock…

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Abstract

This study examines the information content of firms’ operations-related disclosures (ORDs) and the importance of these disclosures as an information source to stock markets relative to other commonly examined sources of information. I find that ORDs constitute a large portion of corporate press releases. These disclosures are associated with significant stock price reactions and trading volume. The stock price reactions to ORDs are greater than the reactions to 10-K/Q reports and are of similar magnitudes to the reactions to 8-K filings. On average, ORDs explain variation in firms’ quarterly returns to a similar degree as management earnings forecasts and 10-K/Q reports for the full sample and to a greater degree for small firms and firms with lower earnings quality.

Details

Journal of Accounting Literature, vol. 43 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

Book part
Publication date: 28 March 2022

Shakoor Ahmed, Larelle (Ellie) Chapple, Katherine Christ and Sarah Osborne

This research develops a set of specific modern slavery disclosure principles for organisations. It critically evaluates seven legislative Acts from five different…

Abstract

This research develops a set of specific modern slavery disclosure principles for organisations. It critically evaluates seven legislative Acts from five different countries and 16 guidelines and directives from international organisations. By undertaking an in-depth content analysis, the research derives an index comprising nine principles and 49 disclosure items to promote best-practice disclosure in tackling modern slavery. We promote nine active principles for organisations to implement and disclose: recognising modern slavery practices, identifying risks, publishing a modern slavery risk prevention policy, proactive in assessing and addressing risks, assessing efficacy of actions, garnering internal and external oversight, externally communicating modern slavery risk mitigation, implementing a suppliers' assessment and code of conduct to ensure transparency and specifying consequences for non-compliance. The research is motivated by the United Nations Sustainable Development Goal 8, which focusses on economic growth, full and productive employment and decent work. The research findings will assist practitioners seeking to discover and disclose evidence of modern slavery practices and their mitigation to minimise and encourage the elimination of this unethical and illegal practice in domestic and global supply chains and operations.

Details

Environmental Sustainability and Agenda 2030
Type: Book
ISBN: 978-1-80262-879-1

Keywords

Article
Publication date: 29 May 2019

Essia Ries Ahmed, Aminul Islam and Azlan Bin Amran

The purpose of this paper is to investigate and detect disclosure on the legitimacy identity of Sukuk structure in Shariah pronouncements. The study also examines the role…

Abstract

Purpose

The purpose of this paper is to investigate and detect disclosure on the legitimacy identity of Sukuk structure in Shariah pronouncements. The study also examines the role of Shariah supervisory board on disclosure of legitimacy in Shariah pronouncements.

Design/methodology/approach

A total of 54 Islamic Sukuk in Malaysia representing the whole population were selected. Secondary data were used and sourced from Shariah pronouncements on Sukuk. Using descriptive statistics, the existence and the extent of existence of legitimacy disclosure on Sukuk in Islamic financial institutions in Malaysia were ascertained.

Findings

Using descriptive statistics, the existence and the extent of existence of legitimacy disclosure on Sukuk in Islamic financial institutions in Malaysia was ascertained. The research found that there is empirical evidence showing the effect of Shariah supervisory board on disclosure of legitimacy identity in Shariah pronouncements.

Originality/value

This study offers significant contribution to existing legitimacy of Sukuk structure literature. The study added a new discussion, i.e. legitimacy disclosure on the Sukuk. The study is intended to increase public awareness for legitimacy identity of Sukuk in the importance of Shariah compliancy not only in the form but also in substance. In addition, this study will give more benefits for Islamic financial institutions in the sense that they should amend some of their regulatory frameworks to push the Sukuk market investors to move toward asset-backed structure.

Details

Journal of Islamic Marketing, vol. 10 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 18 December 2019

Rodrigo Fernandes Malaquias and Pablo Zambra

The purpose of this study is to analyze the perception of accountants in relation to the complexity of accounting for financial instruments and in relation to the…

Abstract

Purpose

The purpose of this study is to analyze the perception of accountants in relation to the complexity of accounting for financial instruments and in relation to the disclosure of financial instruments in annual reports. Both aspects are relevant for the external users, and for the firms’ internal management.

Design/methodology/approach

The database comprises questionnaires answered by accountants from Brazil and Chile. Data were analyzed based on reliability statistics and multivariate regression analysis.

Findings

The main results indicate that accountants perceive the accounting for derivatives, hedge accounting, fair value measurement of financial instruments and the respective disclosure of these operations as a complex issue. These findings are interesting considering that there are detailed accounting standards relating to financial instruments.

Research limitations/implications

The results indicate that education and gender affect the perception of complexity about accounting of derivatives.

Practical implications

Findings from this research show that accountants do perceive derivatives as complex items for accounting, particularly accounting for hedges.

Social implications

The results can motivate some initiatives for training activities and for teaching academic content about financial instruments in undergraduate courses.

Originality/value

To the best of the authors’ knowledge, this is the first study that tests some personal characteristics of accountants (namely, professional experience, education and gender), in contrast to their perceptions about complexity of accounting for derivatives.

Details

Accounting Research Journal, vol. 33 no. 1
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 16 September 2013

Diane Mayorga

– This study aims to explore how Australian Securities Exchange (ASX) listed companies manage their statutory continuous disclosure (CD) obligations.

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Abstract

Purpose

This study aims to explore how Australian Securities Exchange (ASX) listed companies manage their statutory continuous disclosure (CD) obligations.

Design/methodology/approach

Employing aspects of Gibbins et al.'s corporate financial disclosure framework, this study conducts semi-structured interviews with 22 experienced senior managers from diverse companies to examine in depth the key antecedents, structures and issues influencing the CD process.

Findings

The findings indicate that companies' preference to deal with CD as a commercial or legal issue, managers' practical CD experience, who assumes responsibility for CD, owners' and market expectations, third parties, environmental uncertainties and media are important antecedents in the CD process. The importance of these is contingent on company characteristics. Large companies primarily use structured processes and responsive communication networks whereas small to medium companies rely on informal processes and interpersonal communications. Despite following best practice guidelines, companies face multiple issues in managing CD.

Research limitations/implications

Prior disclosure beliefs and personal biases may have a disproportionate impact on CD behaviour. Future research can examine more closely how these behavioural characteristics influence companies' disclosure policies.

Practical implications

This study offers insights for managers interested in managing CD more effectively. The findings suggest the importance of experience, behaving in a proactive manner and educating employees on companies' CD obligations. It offers insights for regulators on aspects of guidance that could be improved.

Originality/value

The study draws on Gibbins et al.'s theoretical framework to furnish a more complete and refined understanding of the CD process.

Details

Accounting, Auditing & Accountability Journal, vol. 26 no. 7
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 25 November 2020

Binod Guragai and Paul D. Hutchison

Prior literature provides empirical evidence that financial performance improves for core remaining operations after a firm discontinues some of their operations. This…

Abstract

Purpose

Prior literature provides empirical evidence that financial performance improves for core remaining operations after a firm discontinues some of their operations. This study aims to examine whether the association between discontinued operations and future financial performance improvement is affected by a regulatory rule (i.e. Statement of Financial Accounting Standards 144 [SFAS 144]) that significantly altered the reporting requirements of discontinued operations. This study also examines whether the association is dependent on the profitability of the operations discontinued.

Design/methodology/approach

Ordinary least square regressions are used to test the association between discontinued operations and financial performance improvement, conditional on the profitability of operations discontinued in the pre-SFAS 144 and SFAS 144 regulatory regimes. Data on profitability of operations discontinued is hand-collected.

Findings

Results suggest that firms experience improvement in financial performance following the reporting of discontinued operations in the pre-SFAS 144 era. Using hand-collected data on the profitability of operations discontinued, this research study also shows that improvement in performance is stronger for firms that discontinue loss operations compared to those that discontinue profitable operations.

Originality/value

This study explores the impact of regulatory change on the association between discontinued operations and future performance. Furthermore, unique hand-collected data is used to understand whether financial performance improvement is conditional on the profitability of the operations discontinued. Results documented in this paper should be of interest to investors, regulators and analysts in understanding the long-term strategic implications of discontinued operations.

Details

Review of Accounting and Finance, vol. 19 no. 4
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 7 March 2022

Lori Leonard and Li Sun

The authors investigate the relation between employee treatment and the likelihood of discontinuing business operations.

Abstract

Purpose

The authors investigate the relation between employee treatment and the likelihood of discontinuing business operations.

Design/methodology/approach

The authors use regression analysis to investigate the relation between employee treatment and the likelihood of discontinuing business operations.

Findings

The authors find a significant negative relation between employee treatment and the likelihood of discontinuing business operations, suggesting that firms with better employee treatment are less likely to discontinue operations.

Originality/value

This study contributes to two distinctive steams of research: discontinued operations in accounting literature and employee welfare in human resources management literature.

Details

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

Keywords

Article
Publication date: 9 May 2016

Abi Hanifa and Fitra Roman Cahaya

This paper aims to examine Indonesia Stock Exchange (IDX)-listed companies’ society disclosures.

Abstract

Purpose

This paper aims to examine Indonesia Stock Exchange (IDX)-listed companies’ society disclosures.

Design/methodology/approach

Year-ending 2012 annual report disclosures of 75 IDX-listed companies are analyzed. The widely acknowledged Global Reporting Initiative guidelines are used as the disclosure index checklist.

Findings

The results show a relatively low level of voluntary society disclosure (40.27 per cent). The highest level of communication is for issues related to society programs. Very few companies disclosed information about public policy, donations to political parties and actions taken in response to corruption incidents. Statistical analysis reveals that company size is a positively significant predictor of “society” communication. Ethical stakeholder theory partially explains the variability of these disclosures.

Research limitations/implications

The main implication of the findings is that Indonesian companies are not involved in the public policy-making process. Companies also probably attempt to hide certain information regarding corruption issues to protect their image and reputation.

Originality/value

This paper provides insights into the disclosure practices of society issues, a specific social disclosure theme which is rarely examined in prior literature, within the framework of ethical stakeholder theory. The research also includes corruption issues to be investigated in the disclosure analysis.

Details

Journal of Global Responsibility, vol. 7 no. 1
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 6 February 2019

Hani Tadros and Michel Magnan

Focusing on a sample of firms from environmentally sensitive industries over several years, this study aims to reexamine the association between environmental disclosure

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Abstract

Purpose

Focusing on a sample of firms from environmentally sensitive industries over several years, this study aims to reexamine the association between environmental disclosure and environmental performance.

Design/methodology/approach

The authors use a panel data analysis to examine how the interaction between environmental performance and economic and legitimacy factors influence firms’ environmental disclosures.

Findings

Results suggest that environmental performance moderates the effect of economic and legitimacy incentives on firms’ propensity to provide proprietary environmental disclosure, with both sets of incentives being influential. More specifically, there appears to be a reporting bias based on the firm’s environmental performance whereas the high-performers disclose more environmental information in the three following vehicles: annual report, 10-K and sustainability reports combined. Results also show that economic and legitimacy factors influence the disclosure decisions of the low and high environmental performers differently.

Practical implications

Understanding the determinants of environmental disclosure for high and low environmental performers helps regulators to close the reporting gap between these firms.

Social implications

There is little evidence to suggest that firms with low-environmental performance attempt to use their disclosures to legitimize their environmental operations.

Originality/value

The study examines environmental disclosures of 78 firms over a period of 14 years in annual, 10-K and sustainability reports. The panel data analysis controls for significant cross-sectional and period effects.

Details

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

Keywords

Article
Publication date: 10 April 2017

Waleed M. Albassam and Collins G. Ntim

The study aims to examine the effect of Islamic values on the extent of voluntary corporate governance (CG) disclosure. In addition, the authors investigate the effect of…

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Abstract

Purpose

The study aims to examine the effect of Islamic values on the extent of voluntary corporate governance (CG) disclosure. In addition, the authors investigate the effect of traditional ownership structure and CG mechanisms on the extent of voluntary CG disclosure.

Design/methodology/approach

The authors distinctively construct Islamic values and voluntary CG disclosure indices using a sample of 75 Saudi-listed firms over a seven-year period in conducting multivariate regressions of the effect of Islamic values on the extent of voluntary CG disclosure. The analyses are robust to controlling for firm-level characteristics, fixed-effects, endogeneities and alternative measures.

Findings

The authors find that corporations that depict greater commitment towards incorporating Islamic values into their operations through high Islamic values disclosure index score engage in higher voluntary CG disclosures than those that are not. Additionally, the authors find that audit firm size, board size, government ownership, institutional ownership and the presence of a CG committee are positively associated with the level of voluntary CG disclosure, whereas block ownership is negatively associated with the extent of voluntary CG disclosure.

Practical implications

The study has clear practical implications for future research, practice and broader society by demonstrating empirically that corporations that voluntarily incorporate Islamic values into their operations are more likely to be transparent about their CG practices and thereby providing new crucial insights on the effect of Islamic values on voluntary CG compliance and disclosure.

Originality/value

This is the first empirical attempt at explicitly examining the effect of Islamic values on the extent of voluntary CG disclosure. The authors also offer evidence on the effect of traditional CG and ownership structures on the extent of voluntary CG disclosure.

Details

Journal of Islamic Accounting and Business Research, vol. 8 no. 2
Type: Research Article
ISSN: 1759-0817

Keywords

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