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1 – 10 of over 14000Rodrigo de Souza Gonçalves, Otávio Ribeiro de Medeiros, Elionor Farah Jreige Weffort and Jorge Katsumi Niyama
This study is aimed at developing and validating an index designed to measure the level of social disclosure of external social programs of firms listed on the Brazilian stock…
Abstract
Purpose
This study is aimed at developing and validating an index designed to measure the level of social disclosure of external social programs of firms listed on the Brazilian stock market.
Methodology/Approach
The index of social disclosure is composed of 13 items distributed in three dimensions: past information, prospective actions, and accessibility. Its validation involved: (a) pre-test, (b) analysis by referees, (c) exploratory factor analysis, (d) Cronbach’s alpha test, and (e) final validation. The sample is composed of 83 Brazilian firms listed on the Brazilian Stock Exchange from 2005 to 2009.
Findings
The index presented robustness in all validation stages. It was found that size, industry sector, internationalization, auditing, and listing on social responsible investment funds are decisive factors for increasing the level of social disclosure.
Research Limitations
The index of social disclosure evaluates external social programs only. Hence, some types of social information are not captured, such environmental ones. Besides, the sources of information for the index are restricted to annual and sustainability reports, so that information from other sources, such as official announcements and company websites, are not captured.
Social Implications
The social disclosure index developed can be useful to analysts and investors assessing listed firms, as well as to financial-market regulators defining policies applicable to the disclosure of corporate social information.
Originality/Value
(a) Construction of a social disclosure index validated and tested in Brazilian firms, which is liable to replication; (b) Utilization of a representative sample of firms listed on an important emerging stock market.
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Monica Singhania and Gagan Gandhi
The purpose of this paper is to construct the social and environmental disclosure index for Indian companies in order to examine the relationship between social and environmental…
Abstract
Purpose
The purpose of this paper is to construct the social and environmental disclosure index for Indian companies in order to examine the relationship between social and environmental disclosure and select corporate attributes.
Design/methodology/approach
The sample covers annual reports of companies for financial year 2011-2012. The sample represents both financial and non-financial companies that constitute Nifty 50 Index companies as on March 31, 2012. The actual size of the sample analyzed represented 41 companies. The unweighted disclosure index approach has been used to measure the extent of disclosure of social and environmental information where an item scores 1 if disclosed and 0 if not disclosed. The authors built a model using regression which indicates the variables that are significant in determining the social and environmental disclosure of a company. The regression model can be used to predict the degree of disclosure of a company given the values of explanatory variables. Content analysis from annual reports of the companies has been used in constructing the dependent variable.
Findings
Regression results indicate that location (place where the registered office of company is located), number of operations of company, turnover, sales and administration expenses, age of company, employee cost and interest paid by company are significant in determining the disclosure index of the company.
Research limitations/implications
Sample size can be increased by considering more companies. In addition, a longitudinal study would enable in drawing comparison over a period of time with respect to disclosure index. The increased sample size would help in validating the disclosure score by dividing the data set into two: one as observation window and the other as validation window.The model explains 23 percent variation in disclosure index. More variation may be explained by incorporating more explanatory variables in the model.
Practical implications
The authors indicate the level of disclosure in case of Indian companies which may prove to be an indicator for prospective investors especially in the present era of global financial and economic downturn. The paper may assist the regulators in framing policies regarding corporate governance. This will enable the regulators of corporate sector to frame laws in order to predict the degree of disclosure of a company based on certain explanatory variables.
Originality/value
The authors focus especially on Indian companies for constructing the disclosure index which to the best of knowledge has not been attempted till date.
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Omar Al Farooque and Helena Ahulu
This paper aims to provide new insights on the determinants of social and economic sustainability reportings of multinational enterprises (MNEs) in three Anglo-Saxon countries…
Abstract
Purpose
This paper aims to provide new insights on the determinants of social and economic sustainability reportings of multinational enterprises (MNEs) in three Anglo-Saxon countries, mainly Australia, the UK and South Africa, from the perspective of corporate governance, stakeholder and corporate legitimacy.
Design/methodology/approach
This paper examines stand-alone sustainability reports of 67 large MNEs from three countries available in the Global Reporting Initiative (GRI) website for the period of 2008-2009. It undertakes two distinct methodological approaches: first, principal component analysis (PCA) of GRI guidelines (G3) on social and economic indicators to identify the most appropriate dependent variables, and second, hierarchical multiple regression for the hypotheses testing and finding determinants of respective dependent variables on social and economic reportings.
Findings
The results from the PCA of GRI guidelines (G3) provide an alternative way of categorizing the social and economic indicators when compared to the categories given by the GRI. Again, the results from hierarchical multiple regression indicate the industry sector as the dominant determinant of social and economic reportings. In particular, the positive, significant association of board independence, assurance and employee performance variables with economic reporting confirms the significant roles of corporate governance, stakeholders and corporate legitimacy in determining economic reporting. The findings also suggest the complementary nature of relevant theories in corporate voluntary disclosures relating to economic performance. However, social reporting shows no such relations, which rather relies more on firm-specific/financial variables of MNEs including firm size and age.
Research limitations/implications
The sample of this study is limited to two-year periods and large MNEs available in the GRI website with stand-alone sustainability reports only.
Practical implications
The PCA focuses on most relevant and specific categories of social and economic reportings as opposed to GRI generic categories. The PCA findings also suggest the GRI to contemplate reducing the social and economic indicators for future guidelines. The hierarchical multiple regression results highlight specific areas of emphasis that MNEs should focus on when reporting social and economic information.
Originality/value
This study adds value to the existing literature on GRI-based social and economic reportings as well as the complementary nature of corporate governance, stakeholders and corporate legitimacy perspectives.
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This study aims at investigating the extent to which Egyptian universities disclose information on social responsibility to different stakeholders, which leads to the enhancement…
Abstract
Purpose
This study aims at investigating the extent to which Egyptian universities disclose information on social responsibility to different stakeholders, which leads to the enhancement of sustainable development.
Design/methodology/approach
An index of social responsibility that fits the Egyptian universities is established, comprising four dimensions: organizational governance, energy and environment resource sustainability, human resource development and community participation and community development. This index has been used to score the disclosure level of social responsibility of Egyptian universities. This study uses information available on websites of Egyptian universities as of the end of December 2018. Frequencies provide the basis for discussion.
Findings
The results reveal that the level of disclosure of universities on social responsibility is low, but, in favor of private universities vs public universities. At the university level, only a few numbers of public universities disclosed high volume of information on social responsibility, such as Cairo University, Ain Shams University, Alexandria University and Assiut University. Furthermore, the results manifest that public universities disclose higher level of information related to organizational governance, energy and environment resource sustainability and community participation and community development, whereas, private universities disclose higher level of information related to human resource development.
Research limitations/implications
The results are constrained with the social responsibility dimensions and attributes used to establish a disclosure index that fits Egyptian universities, as well as the information disclosed on universities websites.
Originality/value
This study provides insights to Egyptian higher education regulators and the rectors of Egyptian universities that may help in planning and monitoring social responsibility activities in a way that could lead to sustainable development.
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Roshima Said, Hilwani Hariri, Hasnah Haron and Yuserrie Hj. Zainuddin
Corporate social responsibility (CSR) is a concept that extends the traditional focus of business in achieving bottom-line results to triple bottom-line results and the concept of…
Abstract
Corporate social responsibility (CSR) is a concept that extends the traditional focus of business in achieving bottom-line results to triple bottom-line results and the concept of sustainability that focus on economic, environmental and social performance. The Bursa Malaysia CSR Framework (2006) defined CSR as open and transparent business practices that are based on ethical values and respect for the community, employees, the environment, shareholders and other stakeholders. This CSR framework was designed to deliver sustainable value to the society at large.
Adel Sarea and Monsurat Ayojimi Salami
This paper aims to examine the level of Islamic social reporting (ISR) disclosure of Islamic banking in Gulf Cooperative Council (GCC) countries using a checklist based on…
Abstract
Purpose
This paper aims to examine the level of Islamic social reporting (ISR) disclosure of Islamic banking in Gulf Cooperative Council (GCC) countries using a checklist based on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) standards.
Design/methodology/approach
A quantitative method – Tobit Model – is adopted in this study. The unweighted disclosure method used to measure the ISR disclosure checklist consist of 51 items in Islamic banks (IBs) in the GCC countries. The stakeholder theory and legitimacy theory are used to investigate the possible banking performance factors affecting the accounting practices such as ISR disclosure in IBs.
Findings
The findings show that the ISR disclosure index is linked to the IBs’ performance indicators in GCC countries. The result indicates both Islamic banking profitability and age establish positive and statistically significant relationship with ISR disclosure while leverage establishes significant negative relationship with ISR disclosure. This implies that Islamic banking profitability, leverage, and age are essential bank performance indicators that make ISR disclosure worthy of doing even in the presence of Islamic bank stakeholders in GCC countries. This finding linked compliance with the mandatory disclosure recommendations of AAOIFI Standard No. 7, as well as voluntary disclosure.
Research limitations/implications
This study used cross sectional data for the year 2019, which is considered more recent despite its being a year data analysis. However, future research should consider mix method as well as more analysis tools provided their number of observations are sufficient enough.
Social implications
The study identifies the factors that may enhance Islamic financial institutions, including Islamic banking in GCC countries, to comply with ISR disclosure. The application of this study supports Accounting standards setters to consider standards that support ISR disclosure in Islamic banking in different countries.
Originality/value
To the best of the authors’ knowledge, this study is novel in exploring the level of ISR disclosure in Islamic banking in GCC countries by using a checklist based on AAOIFI standard No. 7 and establishes the relationship between ISR disclosure index and IBs profitability, leverage, as well as age of Islamic banking in operation.
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Roshima Said, Yuserrie Hj Zainuddin and Hasnah Haron
The purpose of this paper is to examine the relationship between corporate governance characteristics, namely the board size, board independence, duality, audit committee, ten…
Abstract
Purpose
The purpose of this paper is to examine the relationship between corporate governance characteristics, namely the board size, board independence, duality, audit committee, ten largest shareholders, managerial ownership, foreign ownership and government ownership and the extent of corporate social responsibility disclosure.
Design/methodology/approach
The content analysis was used to extract the CSR disclosure items from annual report and companies' web sites. Then, a CSR disclosure index was constructed after combining CSR disclosure items disclosed both in annual reports and in companies' web sites. Hierarchical regression analysis was used to examine the relationship between the corporate social disclosures index and the independent variables, namely the board size, board independence, duality, audit committee, ten largest shareholders, managerial ownership, foreign ownership and government ownership after statistically controlling the effects of a firm's size and the profitability of the companies.
Findings
Results based on the full regression models indicated that only two variables were associated with the extent of disclosures, namely government ownership and audit committee. Government ownership and audit committee are positively and significantly correlated with the level of corporate social responsibility disclosure. The most significant variable that influences the level of CSR disclosure is government ownership.
Research limitations/implications
The findings are limited to the context of the study and it was limited to Malaysian public listed companies, January to December 2006. The sources of data in this study were companies' annual reports and web sites only.
Practical implications
The study is useful to organizations and statutory bodies to take into consideration in identifying the corporate governance characteristics that will enhance CSR disclosure, since it had been shown in previous studies that corporate social responsibility reporting in Malaysia is generally low. The government can determine how important it is that a company should be willing to allocate their costs towards corporate social responsibility activities. Thus, this study will emphasize the level of activities through corporate social responsibility reporting in Malaysian public listed companies and help the government to ascertain the level of corporate social responsibility activities through corporate social responsibility reporting among Malaysian public listed companies.
Originality/value
The study reveals the extent of the disclosure of corporate social responsibility to companies web sites and constructed the CSR index based on two sources of data, namely companies' web sites and annual reports.
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Tamer Mohamed Shahwan and Yousef Mohammed Hassan
The current study aims to explore and measure the profitability, marketability, and social disclosure efficiency of UAE banks using a nonparametric frontier method – data…
Abstract
Purpose
The current study aims to explore and measure the profitability, marketability, and social disclosure efficiency of UAE banks using a nonparametric frontier method – data envelopment analysis (DEA).
Design/methodology/approach
In order to estimate the relative efficiency of the Emirati banks based on three different dimensions: profitability, marketability and social disclosure, a sample of 20 listed Emirati banks in 2009 is first selected. Second, a disclosure index to measure the extent of their social disclosure is developed and utilized. Third, the input‐oriented version of DEA model is deployed to estimate their technical and scale efficiency.
Findings
Based on nonparametric Wilcoxon signed rank test, paired‐difference t test and sign test, this study reports significant evidence that the UAE banks are performing much better in profitability and social disclosure activities than marketability activities. The results also provide additional evidence regarding the positive relation observed between the performance of social disclosure and profitability performance.
Research limitations/implications
The sample is small, although it includes all relevant Emirati banks. Moreover, follow‐up research using panel data derived from the UAE banking sector are required to test and generalize the current results.
Originality/value
The paper is original in its approach by introducing social disclosure as a new empirical dimension to the literatures of banking efficiency analysis using DEA.
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Mohamed A.K. Basuony, Ehab K.A. Mohamed, Ahmed Elragal and Khaled Hussainey
This study aims to investigate the extent and characteristics of corporate internet disclosure via companies’ websites as well via social media and networks sites in the four…
Abstract
Purpose
This study aims to investigate the extent and characteristics of corporate internet disclosure via companies’ websites as well via social media and networks sites in the four leading English-speaking stock markets, namely, Australia, Canada, the UK and the USA.
Design/methodology/approach
A disclosure index comprising a set of items that encompasses two facets of online disclosure, namely, company websites and social media sites, is used. This paper adopts a data science approach to investigate corporate internet disclosure practices among top listed firms in Australia, Canada, the UK and the USA.
Findings
The results reveal the underlying relations between the determining factors of corporate disclosure, i.e. profitability, leverage, liquidity and firm size. Profitability in its own has no great effect on the degree of corporate internet disclosure whether via company websites or social media sites. Liquidity has an impact on the degree of disclosure. Firm size and leverage appear to be the most important factors driving better disclosure via social media. American companies tend to be on the cutting edge of technology when it comes to corporate disclosure.
Practical implications
This paper provides new insights into corporate internet disclosure that will benefit all stakeholders with an interest in corporate reporting. Social media is an influential means of communication that can enable corporate office to get instant feedback enhancing their decision-making process.
Originality/value
To the best of the authors’ knowledge, this study is amongst few studies of corporate disclosure via social media platforms. This study has adopted disclosure index incorporating social media as well as applying data science approach in disclosure in an attempt to unfold how accounting could benefit from data science techniques.
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Mohamed A.K. Basuony, Ehab K.A. Mohamed and Khaled Samaha
The purpose of this paper is to investigate the impact of board structure on voluntary corporate disclosure via social media among the top 150 companies listed on the London Stock…
Abstract
Purpose
The purpose of this paper is to investigate the impact of board structure on voluntary corporate disclosure via social media among the top 150 companies listed on the London Stock Exchange.
Design/methodology/approach
A disclosure index comprising of a set of items that encompass two facets of disclosure, namely corporate disclosure via social networks and social media sites, is developed and used. Binary logistic regression is used to test the research hypotheses.
Findings
The results of this study reveal the underlying relations between board composition and control variables as the determining factors of corporate disclosure, i.e. board size, board activism, board independence and board diversity (gender and ethnicity). The gender of the board can affect the corporate disclosure via a social network. The results of this study indicate that an increase in the number of female in the board members leads to higher corporate disclosure using social network. Moreover, firm size has a positive effect on corporate disclosure indicating that large firms tend to disclose more information on their websites and social networks.
Practical implications
The paper provides new insights into the role played by the non-executive female directors in monitoring and controlling managerial processes related to corporate disclosure using social media.
Originality/value
To the best of the authors’ knowledge, this is the first paper that examines the role of board structure in monitoring and controlling management decisions and managerial processes in the area of corporate disclosure via social media.
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