Search results

1 – 10 of over 22000
Article
Publication date: 31 March 2023

Pei-Chi Kelly Hsiao, Mary Low and Tom Scott

This paper aims to examine the extent to which performance indicators (PIs) reported by New Zealand (NZ) higher education institutions (HEIs) correspond with accounting standards…

Abstract

Purpose

This paper aims to examine the extent to which performance indicators (PIs) reported by New Zealand (NZ) higher education institutions (HEIs) correspond with accounting standards and guidance and the effects issuance of principles-based authoritative guidance and early adoption of Public Benefit Entity Financial Reporting Standard 48 (PBE FRS 48) have on the PIs disclosed.

Design/methodology/approach

Using a content analysis index derived from accounting standards and guidance, we conduct a longitudinal assessment of the 2016 and 2019 statements of service performance published by 22 NZ HEIs.

Findings

The PIs reported extend beyond the service performance elements proposed by standard-setters. Despite few indicators on intermediate and broader outcomes, the measures disclosed by HEIs are reflective of their role in the NZ economy and the national Tertiary Education Strategy. The results show that principles-based authoritative guidance and early adoption of PBE FRS 48 influence the focus and type of measures disclosed, while there is no evidence of improvements in the reporting of impacts, outcomes and information useful for performance evaluation.

Practical implications

This paper provides timely insights for standard-setters and regulators on the influence principles-based accounting standards and guidance have on non-financial reporting practices.

Originality/value

This study contributes to the scant literature on HEIs’ service performance reporting. It presents a model for conceptualising HEIs’ PIs that can be used as a basis for future research on non-financial reporting. It also reflects on the tension between accountability and “accountingisation”, suggesting that, although the PIs reported support formal accountability, they do not communicate whether HEIs’ activities and outputs meet their social purpose.

Article
Publication date: 16 October 2023

Deepthi S. Pawar and Jothi Munuswamy

The present study aims to investigate the effect of environmental reporting on the financial performance of banks in India.

Abstract

Purpose

The present study aims to investigate the effect of environmental reporting on the financial performance of banks in India.

Design/methodology/approach

The study is based on the secondary data. The sample includes the banks listed in the NSE Nifty Bank Index from 2016–2017 to 2020–2021. The environmental reporting data was obtained through the content analysis technique. The financial data was collected from the CMIE Prowess database. Panel regression analysis was used to analyse the data.

Findings

The findings indicate a negative significant influence of environmental reporting on the ROA and ROE of banks. On the other hand, environmental reporting does not significantly influence the EPS of banking institutions.

Originality/value

To the best of the authors’ knowledge, this study is the first to contribute to the scarce literature on the influence of environmental reporting on financial performance, pertinently in the context of a developing nation's banking sector.

Details

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

Keywords

Open Access
Article
Publication date: 22 May 2023

P.K. Nandram, A.J. Brouwer and H.P.A.J. Langendijk

This paper aims to investigate whether managers use impression management through the presentation of non-financial information in an integrated reporting setting.

3016

Abstract

Purpose

This paper aims to investigate whether managers use impression management through the presentation of non-financial information in an integrated reporting setting.

Design/methodology/approach

The authors performed an experiment with experienced professional controllers and part-time students enrolled in the executive master’s degree in finance and control at universities in the Netherlands. In this experiment, we manipulated the financial performance to test if managers present non-financial information differently based on the firm’s financial performance.

Findings

This study found that impression management is not applied by including or excluding non-financial key performance indicators (KPIs) in the integrated report, but by using more prominent presentation forms for positive non-financial performance and non-prominent ones for negative non-financial performance. However, the use of impression management through the presentation form decreased when the firms’ financial performance was positive. In that instance, this study noted that managers statistically significantly more often decided to present poor non-financial performance in a prominent presentation format in comparison to managers who were not aware of the financial performance.

Research limitations/implications

A limitation of this paper is that the authors focused on only two impression management strategies: opportunistic/under-reporting and the presentation form. This analysis shows that the use of impression management mainly seems to occur through the presentation format. Future research could investigate other impression management strategies in an integrated reporting setting.

Practical implications

The results of this study are of importance for users of integrated reports, because it will provide more insight into whether firms are truly transparent in their integrated reports. Furthermore, the theoretical implication of this study is relevant to regulatory authorities, because it sheds light on the different forms of impression management used in integrated reporting and the influence of positively or negatively performing KPIs on the decisions of preparers of integrated reports.

Originality/value

Therefore, in this study, the authors add to prior literature by investigating the concept of impression management in an integrated reporting setting. More specifically, the authors perform an experiment and focus on different forms of impression management (the presentation format and under-reporting) through non-financial KPIs in an integrated reporting setting and link it to firm financial performance.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 30 May 2023

Natalia Aversano, Diana Ferullo, Giuseppe Nicolò and Nadia Ardito

The present research aims to understand the performance disclosure levels provided by Italian healthcare organisations (HCOs). The authors conducted this study to assess the…

Abstract

Purpose

The present research aims to understand the performance disclosure levels provided by Italian healthcare organisations (HCOs). The authors conducted this study to assess the transparency of HCOs' performance reporting processes by examining the amount and the type of information disclosed in Annual Performance Reports (APRs).

Design/methodology/approach

The present study uses a qualitative research methodology based on manual content analysis. The APRs of a sample of 171 Italian public HCOs were analysed.

Findings

Results evidence that the APRs provide a sufficient level of disclosure of performance information, putting high attention on the epidemiological conditions; however, the APRs do not present a strong information function for stakeholders' decision-making purposes. The Italian HCOs APRs are not easily understandable because the APRs are not very concise and present information mainly in discursive terms with limited graphic support.

Originality/value

To the best of the authors' knowledge, this is the first research investigating both the extent and type of performance information reported by Italian HCOs in the APRs, considering the particular contextual conditions caused by the most significant challenge the healthcare (HC) sector has faced in recent years: the epidemiological crisis of the coronavirus disease 2019 (COVID-19). The study also explores whether APRs are currently used by HCOs as a merely regulatory requirement or as an information tool for accountability and decision-making purposes.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Open Access
Article
Publication date: 3 November 2022

Maria Aluchna, Maria Roszkowska-Menkes and Bogumił Kamiński

Non-financial reporting (NFR) is viewed as a major step towards organisational transparency and accountability. While the number of non-financial reports published every year has…

6575

Abstract

Purpose

Non-financial reporting (NFR) is viewed as a major step towards organisational transparency and accountability. While the number of non-financial reports published every year has been growing exponentially over the last two decades, their quality and effectiveness in managing environmental, social and governance (ESG) performance have been questioned. Addressing these concerns, several jurisdictions, including EU Member States, introduced mandatory NFR regimes. However, the evidence on whether such regulation truly translates into enhanced ESG performance remains scarce. This paper aims to fill this gap in the literature by investigating the impact of the EU’s Directive 2014/95/EU (Non-financial Reporting Directive, NFRD) on the ESG scores of Polish companies.

Design/methodology/approach

Drawing upon institutional and strategic perspectives on legitimacy theory, the authors test the relationship between the introduction of the NFRD and the ESG scores derived from the Refinitiv database, using a sample of all those companies listed on the Warsaw Stock Exchange whose disclosure allows for measuring ESG performance (yielding 171 firm-year observations from 43 companies).

Findings

This study’s findings show an improvement of ESG performance following the introduction of the NFRD. The difference-in-differences approach indicates that the improvement is larger for companies that are subject to the legislation when it comes to overall ESG performance, particularly for environmental and social performance. Nonetheless, to the best of the authors’ knowledge, no significant effect is found for performance in the governance dimension.

Originality/value

This study investigates the role of transnational mandatory reporting regulation in the first years of its enactment. The evidence offers insights into the effects of disclosure legislation in the context of an underdeveloped institutional environment.

Details

Meditari Accountancy Research, vol. 31 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 20 November 2023

Shubham Singhania, Akshita Arora and Varda Sardana

This study aims to evaluate the relationship of corporate social responsibility (CSR) reporting with the financial performance of firms using various market and accounting-based…

Abstract

Purpose

This study aims to evaluate the relationship of corporate social responsibility (CSR) reporting with the financial performance of firms using various market and accounting-based parameters in a developing economy, India.

Design/methodology/approach

The study uses content analysis to develop a CSR reporting index for the Indian firms listed on the Bombay Stock Exchange. The two-step system generalized methods of moments has been used for the estimation of the panel data.

Findings

The results from the study suggest that the CSR reporting-based activities of the firms may impact the financial performance of the firms, but at the same time, the need of the hour is to create awareness among the investors and market players so that they realize the relevance of CSR reporting, which can further improve other dimensions of financial performance as well.

Research limitations/implications

The study relies on Tobin’s Q and return on assets while measuring financial performance, though there are various other parameters that can be used to gauge the performance. The outcomes of this study have practical implications for the practitioners as well as policymakers, incentivizing them to integrate CSR aspects into their decision-making frameworks.

Originality/value

To the best of the authors’ knowledge, this is the first Indian study to develop a unique index for CSR reporting and linking it with financial performance. This study shall assist the researchers in broadening the scope of CSR studies in India and can be used to draw a systematic comparison with developed nations.

Article
Publication date: 26 January 2023

Loai Ali Zeenalabden Ali Alsaid and Charles Anyeng Ambilichu

This study aims to explore the potential dynamics between performance measurement at the organisational level and emerging urban development projects at the macro-institutional…

Abstract

Purpose

This study aims to explore the potential dynamics between performance measurement at the organisational level and emerging urban development projects at the macro-institutional field level of sustainability governance and accountability.

Design/methodology/approach

Using a theoretical triangulation between three theories, namely contingency theory, institutional theory and social cognitive theory, this study investigates not only the macro-micro dynamics, but also the (recursive) micro-macro dynamics between performance measurement and urban development. Using an Egyptian public sector urban development organisation and its sustainable energy project as an empirical example, interviews, documents and observations were collected.

Findings

The dynamics emerged between field urban development projects and the (unintended) organisational implementation of the performance measurement system, the sustainability key performance indicators (KPIs) reporting system. Contributing to previous literature, these dynamics have been institutionalised through (three) interrelated levels: the (macro-field) urban development contingencies and pressures for sustainability KPIs reporting, the (organisational) institutionalisation of the urban development performance measurement system and then the (micro-organisational) cognitive role of sustainability KPIs reports in (re)making political urban development decisions.

Research limitations/implications

This study faced some limitations that paved the way for future research axes. For political and security reasons, difficulties were encountered in conducting interviews with government actors in the sustainable energy project under study. Also, due to the practical separation of the environmental sustainability system from the sustainability KPIs reporting system in this case study, environmental sustainability is outside the scope.

Practical implications

Sustainability reports may influence public sector decision-making processes in a specific urban development context. These KPIs reports may also increase public sector management opportunities for urban auditing, transparency, accountability and sustainability governance. These KPIs may also guide public sector management to lower prices in poor villages to increase smart energy consumption and improve community health.

Social implications

Sustainability reports may increase decision-makers' understanding of consumer behaviours and societal changes. This may help in making appropriate political decisions to improve their welfare and regular smart energy consumption. Not only urban citizens, but this social advantage may also extend to urban development employees through employees' promotion, training and access to government-funded academic and professional scholarships.

Originality/value

This study is an attempt to develop current public sector performance measurement analyses in the emerging urban development field using a triadic analytical approach. This study also fed the literature with an extended case study that clarified the (multi-level) and (two-way) dynamics between performance measurement and urban development.

Details

Journal of Accounting in Emerging Economies, vol. 14 no. 1
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 6 June 2023

Ru-Shiun Liou, Pi-Hui Ting and Ying-Yu Chen

Many emerging economy firms are under foreign owners' pressure to embrace the challenges of addressing corporate social responsibility (CSR) and consider adopting sustainability…

Abstract

Purpose

Many emerging economy firms are under foreign owners' pressure to embrace the challenges of addressing corporate social responsibility (CSR) and consider adopting sustainability initiatives. However, it is not clear how foreign ownership plays a role to enable or inhibit these emerging economy firms from translating sustainability initiatives into improved financial performance. Utilizing neo-institutional theory, the authors argue that emerging economy firms that voluntarily report sustainability gain legitimacy in the eyes of shareholders and improve stock market performance. However, emerging economy firms may not have the resources to reconcile the internal stakeholders' various legitimacy requirements to promote sustainability practices, resulting in a negative association with accounting performance. Foreign ownership attenuates the relationship between sustainability reporting and firm performance due to the different legitimacy requirements in foreign markets.

Design/methodology/approach

To test the study’s hypotheses, the authors collected and analyzed a large sample of publicly listed firms between 2010 and 2016 in Taiwan where the types of foreign ownership include foreign trust funds, foreign financial institutions and other foreign legal entities. Regression analyses were conducted to investigate whether the firms that report their sustainable practices have better financial performance, including stock market performance and accounting performance. Additionally, a three-step procedure was employed to address the endogeneity issue with a binary explanatory variable.

Findings

The positive stock market reaction to the emerging economy firms' voluntary sustainability reporting supports legitimacy gained among investors. By contrast, sustainability reporting has a negative association with accounting performance due to the difficulty of reconciling different legitimacy requirements among various stakeholders in emerging economies. Further, foreign ownership, particularly the trust fund, exhibits a negative moderating effect on the relationship between sustainability reporting in aligning corporate practices with sustainable development goals (SDGs) and the company's stock market performance.

Originality/value

By examining the less tested contingent role played by foreign ownership in the emerging economy firms' sustainability reporting, the authors provide insights into the influence exerted by different types of foreign ownership on firms' financial performances beyond previous studies that focus on family ownership, state ownership, or managerial ownership in emerging economies. The findings shed light on corporate sustainability strategy and foreign direct investment policies for an emerging economy.

Details

Cross Cultural & Strategic Management, vol. 30 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 6 March 2023

Patrick Velte

This paper aims to review 68 archival studies on the impact of audit committees (ACs) on firms’ consequences [(non)financial reporting, performance and audit quality] in European…

Abstract

Purpose

This paper aims to review 68 archival studies on the impact of audit committees (ACs) on firms’ consequences [(non)financial reporting, performance and audit quality] in European firms.

Design/methodology/approach

Applying a stakeholder agency-theoretical framework, the author differentiates between three categories of AC variables: presence; composition; and resources, incentives and diligence.

Findings

The author finds that AC composition, (non)financial reporting and audit quality are dominant in the literature review. Other inputs or outputs are either too low in amount or yielded heterogeneous results, hindering clear tendencies. However, there are indications that financial expertise is positively related to financial reporting and audit quality, in line with agency theory and European regulatory assumptions.

Research limitations/implications

In the discussion of potential future research, the author emphasizes, among others, the need for the recognition of innovative and sustainable AC variables, inclusion of moderator and especially mediator variables and reaction to endogeneity concerns by advanced regression models.

Practical implications

As the European Commission currently discusses extended regulations on AC duties and composition, this literature review highlights the huge impact of financial expertise on financial reporting and audit quality. In view of the increased monitoring duties of sustainability reporting, both business practices and regulatory bodies should increase the sustainability expertise of ACs.

Originality/value

This analysis makes useful contributions to prior research by focusing on attributes of AC and their impact on firms’ outputs in the European capital market, based on a differentiation between mandatory one-tier/two-tier systems and the choice model. The findings support the promotion of European evidence-based regulations, such as the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive.

Details

Journal of Global Responsibility, vol. 14 no. 4
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 28 June 2022

Abdulla Alhawaj, Amina Buallay and Wael Abdallah

The purpose of this study is to investigate the relationship between the level of sustainability reporting [environmental, social and governance (ESG)] and sectorial energy…

Abstract

Purpose

The purpose of this study is to investigate the relationship between the level of sustainability reporting [environmental, social and governance (ESG)] and sectorial energy performance across both developed and emerging economies.

Design/methodology/approach

Using data culled from 3,311 observations from 50 different countries over a ten-year period (2008–2017), an ESG-score-derived independent variable is regressed against dependent performance indicator variables (operation ratio, return on equity and Tobin’s Q). Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.

Findings

The findings of this study elicited from the empirical results demonstrate that there is a significant relationship between ESG and operational performance (operation ratio). However, there is no significant relationship between ESG and financial performance (return on equity) and market performance (Tobin’s Q). However, the relationship between ESG and operation ratio is stronger in emerging than in developed economies.

Originality/value

The model in this study presents a valuable analytical framework for exploring sustainability reporting as a driver of performance across energy sectors in both developed and emerging economies. In addition, this study highlights energy-sectorial managerial implications contrasting developed, as juxtaposed with, emerging economies.

Details

International Journal of Energy Sector Management, vol. 17 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

1 – 10 of over 22000