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Article
Publication date: 19 October 2021

Michael Grassmann, Stephan Fuhrmann and Thomas W. Guenther

Credibility concerns regarding integrated reports can harm the intended decrease of information asymmetry between a firm and its investors. Therefore, it is crucial to…

Abstract

Purpose

Credibility concerns regarding integrated reports can harm the intended decrease of information asymmetry between a firm and its investors. Therefore, it is crucial to examine whether voluntary third-party assurance enhances the credibility of integrated reports and, thus, decreases information asymmetry. Furthermore, this study aims to investigate the interaction effect between assurance quality and the disclosed connectivity of the capitals, a distinguishing feature of integrated reports.

Design/methodology/approach

Content analysis is performed of the 176 assurance statements included in the 269 integrated reports of Forbes Global 2000 firms disclosed from 2013 to 2015 and the 269 integrated reports themselves. Regression analyzes are applied to examine the associations between assurance, the disclosed connectivity of the capitals and information asymmetry.

Findings

The presence of an assurance statement in an integrated report significantly decreases information asymmetry. Surprisingly, assurance quality is not significantly associated with information asymmetry. However, an interaction analysis reveals that combining high assurance quality with high disclosed connectivity of the capitals allows a significant decrease in information asymmetry.

Research limitations/implications

The paper demonstrates that the connectivity of the capitals of integrated reports and assurance quality are connected and together are associated with information asymmetry.

Practical implications

The results imply, both for report preparers and standard setters, that assurance quality is advantageous only when combined with disclosed connectivity of the capitals.

Social implications

More information on non-financial information measured by the connectivity of the capitals of integrated reporting has an interaction effect together with assurance quality on information asymmetry.

Originality/value

This paper builds on a unique data set derived from the contents of integrated reports and accompanying assurance statements. Furthermore, it extends the integrated reporting literature by investigating the interaction between assurance quality and the disclosed connectivity of the capitals, which had not previously been examined in combination.

Details

Meditari Accountancy Research, vol. 30 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 17 September 2021

Deborah Yvonne Nagel, Stephan Fuhrmann and Thomas W. Guenther

The usefulness of risk disclosures (RDs) to support equity investors’ investment decisions is highly discussed. As prior research criticizes the extensive aggregation of…

Abstract

Purpose

The usefulness of risk disclosures (RDs) to support equity investors’ investment decisions is highly discussed. As prior research criticizes the extensive aggregation of risk information in existing empirical research, this paper aims to provide an attempt to identify disaggregated risk information associated with cumulative abnormal stock returns (CARs).

Design/methodology/approach

The sample consists of 2,558 RDs of companies listed in the S&P 500 index. The RDs were filed within 10 K filings between 2011 and 2017. First, this study automatically extracted 35,685 key phrases that occurred in a maximum of 1.5% of the RDs. Second, this study performed stepwise regressions of these key phrases and identified 67 (78) key phrases that show positive (negative) associations with CARs.

Findings

The paper finds that investors seem to value most the more common key phrases just below the 1.5% rarest key phrase threshold and business-related key phrases from RDs. Furthermore, investors seem to perceive key phrases that contain words indicating uncertainty (impacts) as a negative (positive) rather than a positive (negative) signal.

Research limitations/implications

The research approach faces limitations mainly due to the selection of the included key phrases, the focus on CARs and the methodological choice of the stepwise regression analysis.

Originality/value

The study reveals the potential for companies to increase the information value of their RDs for equity investors by providing tailored information within RDs instead of universal phrases. In addition, the research indicates that the tailored RDs encouraged by the SEC contain relevant information for investors. Furthermore, the results may guide the attention of equity investors to relevant text passages whose deeper analysis might be useful with regard to investors’ capital market decisions.

Article
Publication date: 30 September 2019

Michael Grassmann, Stephan Fuhrmann and Thomas W. Guenther

Integrated reporting (IR) aims to provide disclosures of the connectivity of non-financial and financial value creation aspects. These disclosures are defined as the…

Abstract

Purpose

Integrated reporting (IR) aims to provide disclosures of the connectivity of non-financial and financial value creation aspects. These disclosures are defined as the disclosed connectivity of the capitals resulting from integrated thinking. This paper aims to investigate the extent of disclosed connectivity of the capitals in integrated reports and its underlying managerial discretion by drawing on economic-based theories.

Design/methodology/approach

Regression analyses are applied to examine the associations between economic firm-level characteristics and the extent of disclosed connectivity of the capitals. The analyses are based on a content analysis of 169 integrated reports disclosed in 2013 and 2014 by Forbes Global 2000 companies.

Findings

This paper finds high heterogeneity in the extent of disclosed connectivity of the capitals in current IR practice. This heterogeneity is related to drivers arising from economic-based theories. Firms’ non-financial and financial performance and the importance of strategic shareholders and debt providers are positively associated with the extent of disclosed connectivity of the capitals. The complexity of the business model and a highly competitive environment are negatively associated with the extent of disclosed connectivity of the capitals.

Research limitations/implications

This paper extends qualitative IR studies on the disclosed connectivity of the capitals by quantitative results from a content analysis for a cross-sectional and global sample. Additionally, this study adds to prior IR literature on the drivers of the binary decision to disclose an integrated report by focusing on the extent of disclosed connectivity of the capitals.

Practical implications

For report preparers, users and standard setters, the results reveal that perceived cost-benefit considerations (signaling vs. direct and proprietary costs) may explain managerial discretion regarding the connectivity of the capitals within integrated reports.

Social implications

This paper examines integrated reports, which are intended to inform providers of financial capital and other stakeholders about the connectivity of the six capitals of the IR framework.

Originality/value

This paper develops a metric disclosure measure of the extent of disclosed connectivity of the capitals. It provides initial evidence of how the IR framework’s focus on this key characteristic is realized in disclosure practice. Concerns about competitive disadvantages and preparation costs limit this key characteristic of integrated reports.

Details

Sustainability Accounting, Management and Policy Journal, vol. 10 no. 5
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 28 September 2019

Stephan Fuhrmann

This paper aims to unite firm- and country-level drivers of the disclosure of integrated reports. It creates a synopsis of voluntary disclosure, signaling, proprietary…

Abstract

Purpose

This paper aims to unite firm- and country-level drivers of the disclosure of integrated reports. It creates a synopsis of voluntary disclosure, signaling, proprietary cost, legitimacy, stakeholder and institutional theory.

Design/methodology/approach

The empirical analyses build on a logistic regression model examining the disclosure decisions for integrated reports published between 2012 and 2016 by the 2,000 largest listed companies worldwide.

Findings

The results indicate that the disclosure of integrated reports by large listed companies is explained in parallel by multiple theories, operationalized by the firm-level characteristics of lower profitability, a higher market-to-book value, lower leverage, lower level of industry concentration and higher social performance. Additionally, the country-level characteristics of civil law setting and lower investor protection, lower power distance and lower masculinity coincide with the disclosure of integrated reports.

Originality/value

The inferences emphasize that a single theoretical framework cannot explain the decision to disclose an integrated report. Rather, a set of economic firm characteristics may lead to different disclosure decisions in different socio-economic and institutional environments.

Details

Meditari Accountancy Research, vol. 28 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Book part
Publication date: 27 January 2022

Stephan Leixnering, Renate E. Meyer and Peter Doralt

Institutions are collective responses to collective concerns, with the underlying link between concern and response being the purpose of the institution. With this…

Abstract

Institutions are collective responses to collective concerns, with the underlying link between concern and response being the purpose of the institution. With this conceptual lens, we analyze the history of the Aktiengesellschaft (AG), which emerged in Austria and Germany around 1800. While any analysis of the organizational features of the form would have diagnosed marked stability over the past two centuries, our historical study reveals significant shifts of the AG’s purpose and meaning: from a vehicle in the service of the public interest, shareholders, and employees to a persona with legitimate self-interests and the will to survive. We suggest to regard such purpose drifts as distinct variant of institutional change. In addition, we conclude that the AG’s essentially political actorhood institutionalizes the ever fragile and delicate quest for a balance between the different legitimate interests on whose behalf a corporation acts (including those of the self). Such a view, we argue, can offer a future for the corporation as organizational form.

Details

The Corporation: Rethinking the Iconic Form of Business Organization
Type: Book
ISBN: 978-1-80043-377-9

Keywords

Book part
Publication date: 27 January 2022

Heather A. Haveman and Nataliya Nedzhvetskaya

This paper traces how in Britain and Germany, for-profit and non-profit businesses coevolved with political-economic institutions. Starting in the late eighteenth century…

Abstract

This paper traces how in Britain and Germany, for-profit and non-profit businesses coevolved with political-economic institutions. Starting in the late eighteenth century, Britain embraced the logic of liberal capitalism, although the path was not smooth. Over the same period, German states balanced both liberal and social-welfare ideals. Social-welfare ideals did not gain support in Britain until the start the twentieth century. The market logic embodied by for-profit businesses was more congruent with liberal capitalism than with social-welfare capitalism, so business corporations thrived more in Britain than in Germany. Yet in both countries, the growing number and power of for-profit businesses created problems for farmers, workers, and small producers. They sought to solve their problems by launching non-profit businesses – co-operatives, mutual-aid societies, and credit co-operatives – combining the ideals of community, enterprise, and self-help. British non-profits gained support from authorities by emphasizing their self-help and enterprise ideals, which were congruent with liberal capitalism, over the community idea, which was not. In contrast, German non-profits gained support by emphasizing all three ideals, as two were congruent with liberal capitalism and all three with social-welfare capitalism. Our analysis reveals how the success of different forms of business, embodying different institutional logics, depends on prevailing political-economic logics. It also shows how the existence and technical success of various organizational forms shapes elites’ perceptions and through them, societal-level logics of capitalism.

Details

The Corporation: Rethinking the Iconic Form of Business Organization
Type: Book
ISBN: 978-1-80043-377-9

Keywords

Article
Publication date: 7 March 2016

Frank Holzäpfel, Anton Stephan, Tobias Heel and Stephan Körner

From pilot reports, field measurements and numerical simulations, it is known that wake vortices may persist within the glide path in ground proximity, leading to an…

Abstract

Purpose

From pilot reports, field measurements and numerical simulations, it is known that wake vortices may persist within the glide path in ground proximity, leading to an increased encounter risk. This paper aims to investigate wake vortex behaviour during final approach and landing to understand why landings can be safe nevertheless. Further, it is investigated whether and to which extent the installation of plate lines beyond the runway tails may further accelerate wake vortex decay and thus improve safety by reducing the number of wake vortex encounters.

Design/methodology/approach

A hybrid numerical simulation approach is used to investigate vortex evolution from roll-up until final decay during the landing manoeuvre. The simulations are complemented by field measurement data accomplished at Munich Airport and at Special Airport Oberpfaffenhofen.

Findings

During touchdown, the so-called end effects trigger pressure disturbances and helical vortex structures that appear to ensure vortex decay rates in ground proximity needed to guarantee the required safety targets of aviation. Light detection and ranging (LIDAR) measurements indicate that vortex decay indeed can be accelerated by a plate line installed on the ground surface. The lifetime of the most safety relevant, long-lived and strongest vortices can be reduced by one-third.

Practical implications

The installation of plate lines beyond the runway tails may improve safety by reducing the number of wake vortex encounters and increase the efficiency of wake vortex advisory systems.

Originality/value

The novel numerical simulation technique and the acquired insights into the wake vortex phenomena occurring during landing as well as the demonstration of the functionality of the patented plate line provide high originality and value for both science and operational application.

Details

Aircraft Engineering and Aerospace Technology: An International Journal, vol. 88 no. 2
Type: Research Article
ISSN: 1748-8842

Keywords

Article
Publication date: 17 May 2021

Radomir Ray Mitic and Hironao Okahana

The purpose of this study is to identify what skills gained during PhD study are linked with preparation and differences between industry and academic positions.

Abstract

Purpose

The purpose of this study is to identify what skills gained during PhD study are linked with preparation and differences between industry and academic positions.

Design/methodology/approach

Using student-level data from nearly 2,400 early career PhD alumni from 50 US PhD granting institutions, this study uses a generalized ordered logit model with partial proportional odds to test the main and conditional effects of 14 areas of skill development on perceptions of career preparation.

Findings

This study contributes empirical evidence to show that research skills and communicating with non-technical audiences are positively linked with job preparation.

Practical implications

The combination of sophisticated research and noncognitive skills promotes the idea of a well-rounded PhD – a highly skilled and versatile researcher that can interact in both academic and industry settings – as a goal of doctoral education. The knowledge gained from this study will assist scholars and graduate educators, including faculty advisors, program directors, graduate deans, graduate education professionals and career development professionals to reconceptualize professional preparation for work in industry.

Social implications

For-profit businesses, particularly start-up companies, are vital for economic development and many require PhD-level employees across research and management roles. Developing PhDs with the appropriate skills for industry will better align higher education and economic interests.

Originality/value

The wide scope of doctoral institutions allows for a quantitative approach not appropriate for single-institution case studies of doctoral career pathways research.

Details

Studies in Graduate and Postdoctoral Education, vol. 12 no. 2
Type: Research Article
ISSN: 2398-4686

Keywords

Article
Publication date: 4 November 2019

Hongwang Du, Wei Xiong, Haitao Wang and Zuwen Wang

Cables are widely used, and they play a key role in complex electromechanical products such as vehicles, ships, aircraft and satellites. Cable design and assembly…

Abstract

Purpose

Cables are widely used, and they play a key role in complex electromechanical products such as vehicles, ships, aircraft and satellites. Cable design and assembly significantly impact the development cycle and assembly quality, which is be-coming a key element affecting the function of a product. However, there are various kinds of cables, with complex geo-metric configurations and a narrow assembly space, which can easily result in improper or missed assembly, an unreasonable layout or interference. Traditional serial design methods are inefficient and costly, and they cannot predict problems in installation and use. Based on physical modeling, computer-aided cable design and assembly can effectively solve these problems. This paper aims to address virtual assembly (VA) of flexible cables based on physical modeling.

Design/methodology/approach

Much research has focused recently on virtual design and assembly-process planning for cables. This paper systematically reviews the research progress and the current state of mechanical models, virtual design, assembly-process planning, collision detection and geometric configuration and proposes areas for further research.

Findings

In the first instance, the main research groups and typical systems are investigated, followed by extensive exploration of the major research issues. The latter can be reviewed from five perspectives: the current state of mechanical models, virtual design, assembly-process planning, collision detection and geometric configuration. Finally, the barriers that prevent successful application of VA are also discussed, and the future research directions are summarized.

Originality/value

This paper presents a comprehensive survey of the topics of VA of flexible cables based on physical modeling and investigates some new ideas and recent advances in the area.

Details

Assembly Automation, vol. 40 no. 2
Type: Research Article
ISSN: 0144-5154

Keywords

Content available
Article
Publication date: 12 January 2022

Martin R.W. Hiebl

Abstract

Details

Journal of Accounting & Organizational Change, vol. 18 no. 1
Type: Research Article
ISSN: 1832-5912

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