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Book part
Publication date: 23 August 2021

Mohammad Nurunnabi

The study aims at reviewing a synthesis of disclosure, transparency, and International Financial Reporting Standards (IFRS) implementation in an attempt to provide…

Abstract

The study aims at reviewing a synthesis of disclosure, transparency, and International Financial Reporting Standards (IFRS) implementation in an attempt to provide directions for future research. Prior research overwhelmingly supports that the IFRS adoption or effective implementation of IFRS will enhance high-quality financial reporting, transparency, enhance the country’s investment environment, and foreign direct investment (FDI) (Dayanandan, Donker, Ivanof, & Karahan, 2016; Gláserová, 2013; Muniandy & Ali, 2012). However, some researchers provide conflicting evidence that developing countries implementing IFRS are probably not going to encounter higher FDI inflows (Gheorghe, 2009; Lasmin, 2012). It has also been argued that the IFRS adoption decreases the management earnings in countries with high levels of financial disclosure. In general, the study indicates that the adoption of IFRS has improved the financial reporting quality. The common law countries have strong rules to protect investors, strict legal enforcement, and high levels of transparency of financial information. From the extensive structured review of literature using the Scopus database tool, the study reviewed 105 articles, and in particular, the topic-related 94 articles were analysed. All 94 articles were retrieved from a range of 59 journals. Most of the articles (77 of 94) were published 2010–2018. The top five journals based on the citations are Journal of Accounting Research (187 citations), Abacus (125 citations), European Accounting Review (107 citations), Journal of Accounting and Economics (78 citations), and Accounting and Business Research (66 citations). The most-cited authors are Daske, Hail, Leuz, and Verdi (2013); Daske and Gebhardt (2006); and Brüggemann, Hitz, and Sellhorn (2013). Surprisingly, 65 of 94 articles did not utilise the theory. In particular, four theories have been used frequently: agency theory (15), economic theory (5), signalling theory (2), and accounting theory (2). The study calls for future research on the theoretical implications and policy-related research on disclosure and transparency which may inform the local and international standard setters.

Details

International Financial Reporting Standards Implementation: A Global Experience
Type: Book
ISBN: 978-1-80117-440-4

Keywords

Article
Publication date: 15 January 2018

Sakshi Girdhar and Kim K. Jeppesen

The purpose of this paper is to examine the transparency reports published by the Big-4 public accounting firms in the UK, Germany and Denmark to understand the…

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Abstract

Purpose

The purpose of this paper is to examine the transparency reports published by the Big-4 public accounting firms in the UK, Germany and Denmark to understand the determinants of their content within the networks of big accounting firms.

Design/methodology/approach

The study draws on a qualitative research approach, in which the content of transparency reports is analyzed and semi-structured interviews are conducted with key people from the Big-4 firms who are responsible for developing the transparency reports.

Findings

The findings show that the content of transparency reports is inconsistent and the transparency reporting practice is not uniform within the Big-4 networks. Differences were found in the way in which the transparency reporting practices are coordinated globally by the respective central governing bodies of the Big-4. The content of the transparency reports is particularly influenced by the national institutional environment in which the Big-4 member firms operate, thus leading them to introduce practice variation and resulting in cross-national differences.

Practical implications

The study results have important implications for standard setters, regulators and practitioners, as the research provides insights into the variation taking place within the common regulatory frame.

Originality/value

This is the first study to analyze how transparency reporting practices are developed within the networks of Big-4 firms, thereby influencing the content of transparency reports.

Details

Accounting, Auditing & Accountability Journal, vol. 31 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 21 January 2022

Mahdi Salehi, Raed Ammar Ajel and Grzegorz Zimon

The present study aims to examine the relationship between corporate governance factors and financial reporting transparency pre and post of ISIS.

Abstract

Purpose

The present study aims to examine the relationship between corporate governance factors and financial reporting transparency pre and post of ISIS.

Design/methodology/approach

A multivariate regression model was used to test the hypotheses for this purpose. The research hypotheses were tested on a sample of 35 companies listed on the Iraqi Stock Exchange from 2012 to 2018 using a multivariate regression model based on panel data technique.

Findings

The results indicate a negative and significant correlation between the board independence, audit committee independence, management team stability and remuneration of the board of directors and financial reporting transparency. In contrast, there is a positive and significant correlation between the board expertise, audit committee expertise and managerial ownership, with financial reporting transparency. Moreover, ISIS has had a direct and significant impact on the correlation between the board of directors’ independence and remuneration with financial reporting transparency. The present study also tested research models using additional methods (such as feasible generalised least squares, ordinary least squares, random effects and T + 1) to obtain better results. The results of these different methods were entirely in line with the main results of the research.

Originality/value

The political and economic instability resulting from the entry of ISIS into Iraq has created severe problems for society’s economic, political, security and performance dimensions. Macroeconomic uncertainty driven by terrorist activities can negatively affect managers’ perceptions of firms’ future performance and result in poor judgments and estimations, significantly impacting business units' financial reporting transparency. Because no study has examined the relationship between corporate governance and financial reporting transparency on the Iraq stock exchange before and after the presence of ISIS, this study examines such a relationship. Although the economic and political situation in Iraq may not be identical to that in other nations, much of the experience in Iraq is anticipated to apply to other countries in the region.

Details

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

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Article
Publication date: 5 October 2015

Yi Fu, Elizabeth Carson and Roger Simnett

The purpose of this study is to compare the information disclosed by leading Australian audit firms in their first-time audit firm transparency reports. Australia has…

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Abstract

Purpose

The purpose of this study is to compare the information disclosed by leading Australian audit firms in their first-time audit firm transparency reports. Australia has mandated the preparation and release of transparency reports by audit firms in 2013 to provide better information to stakeholders about audit firms, their governance and their internal governance systems. These reports promote increased transparency regarding issues which are believed to contribute to audit quality.

Design/methodology/approach

The paper takes the form of an archival analysis where the authors summarise the governance and other information for the 21 leading Australian audit firms as disclosed in their first-time 2013 transparency reports.

Findings

The authors find that audit firms meet the minimum transparency report disclosure requirements, but have different approaches to governance in the areas which may impact audit quality. These areas include: the internal quality control systems, independence practices, continuing education and partners’ remuneration structures. The authors identify specific areas where transparency reports may give rise to future research opportunities.

Originality/value

Australia is one of the first countries to require audit firms to publish transparency reports, and this is the first study to examine these reports. By summarising transparency report disclosures, we present a comprehensive picture of how Australian leading audit firms govern and oversee their business activities. This is useful to transparency report preparers, report users and regulators.

Details

Managerial Auditing Journal, vol. 30 no. 8/9
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 30 July 2020

Tae Ho Lee

This study analyzed the explicitness, the salience of ethics and the transparency of messages in firms' social reports based on their significance to strategic corporate…

Abstract

Purpose

This study analyzed the explicitness, the salience of ethics and the transparency of messages in firms' social reports based on their significance to strategic corporate social responsibility (CSR) communication.

Design/methodology/approach

Drawing on institutional theory, this content analysis investigated 750 social reports from 125 firms for a ten-year period in liberal market economies (LMEs: US, UK), coordinated market economies (CMEs: Germany, Japan) and state-led market economies (SLMEs: France, South Korea).

Findings

First, firms in CMEs showed the highest level of transparency, and in all market economies, an overall trend of increase in the level of transparency was found. Second, firms in SLMEs communicated their CSR activities least explicitly. Third, firms in CMEs showed the lowest salience of ethics.

Originality/value

Useful theoretical as well as practical implications are provided in relation to the institutional perspective to CSR, and cross-national CSR communication.

Details

Corporate Communications: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 24 April 2013

W. Timothy Coombs and Sherry J. Holladay

The purpose of this paper is to examine how corporate social responsibility (CSR) transparency claims are propagating a belief in a modern panopticon for ensuring…

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Abstract

Purpose

The purpose of this paper is to examine how corporate social responsibility (CSR) transparency claims are propagating a belief in a modern panopticon for ensuring responsible corporate behavior. Corporations use transparency claims to cultivate the impression of full disclosure. The paper aims to explore why people believe transparency ensures responsible behavior from corporations as well as the negative effects of this pseudo‐panopticon.

Design/methodology/approach

The paper explores transparency in relation to CSR, CSR reporting, the internet, and activism and describes how their confluence produces pseudo‐panopticon.

Findings

The paper finds that the pseudo‐panopticon allows corporations to claim transparency in CSR communication and for stakeholders to accept that claim. The reality is that a minority of activist stakeholders bear the burden of ensuring true transparency by questioning disclosure.

Social implications

Transparency should be seen as a process, and it fails if activists cannot create public awareness of CSR shortcomings. The challenge is to find ways to make transparency as a process work in a world where apathy and self‐deception, in part facilitated by the pseudo‐panopticon, work against the process.

Originality/value

The paper builds on the process view of transparency by developing its implications for CSR communication. The result is a novel approach to CSR reporting and transparency that contributes to other critical voices concerned about the value and effects of CSR communication.

Details

Corporate Communications: An International Journal, vol. 18 no. 2
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 19 October 2012

Muhammad Najib Razali and Yasmin Mohd Adnan

This purpose of this paper is to investigate the current level of transparency based on the customised transparency matrix (TM) amongst the top listed property companies…

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Abstract

Purpose

This purpose of this paper is to investigate the current level of transparency based on the customised transparency matrix (TM) amongst the top listed property companies in Malaysia, based on capital market value. Furthermore, this paper discusses the concept of transparency from the perspective of Malaysian property markets.

Design/methodology/approach

Data for this research were collected from the top 30 property companies in Malaysia through their annual reports and corporate websites. The indicator of transparency was developed based on various literature surveys and other research findings. Using the developed indicators, the study analysed the transparency attributes from TM of the top 30 listed property companies in Malaysia.

Findings

In terms of transparency levels and widely implemented transparency elements, the findings revealed that Malaysian property companies were within a “good level” range.

Research limitations

The research is based on a study of the top 30 listed property companies in Malaysia based on market capital values as at 30th June 2010.

Originality/value

This paper examines the transparency level of property companies in Malaysia based on each company's current annual report. The findings provide some insights and guidelines for the industry as well as academics on the transparency level particularly in Malaysian property business.

Details

Property Management, vol. 30 no. 5
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 22 July 2010

Wendy Green, Richard D. Morris and Haiping Tang

The purpose of this paper is to report the impact of the Chinese capital market split equity (SE) reform in 2005 on the corporate financial transparency of Chinese listed…

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Abstract

Purpose

The purpose of this paper is to report the impact of the Chinese capital market split equity (SE) reform in 2005 on the corporate financial transparency of Chinese listed companies.

Design/methodology/approach

Using an International Financial Reporting Standards‐based checklist, the paper investigates whether the post‐reform 2005 annual reports of reformed companies improved transparency compared to pre‐reform 2004 reports. The transparency of the reformed companies was also compared to a control group of companies unreformed on December 31, 2005.

Findings

Results indicate that the SE reform increased corporate disclosures. Reformed companies had higher mandatory and voluntary disclosures in their post‐reform 2005 annual reports compared to their pre‐reform 2004 annual reports. In addition, the improvement in mandatory and voluntary disclosures for reformed companies is greater than that of the unreformed control group.

Research limitations/implications

The SE reform provides a unique natural experimental setting in which to examine the impact of the SE reform, with its associated change in ownership structure and corporate governance, on corporate disclosure.

Practical implications

The results of this paper suggest that the SE reform has had a positive effect on corporate financial transparency in China, thereby indicating the positive response to regulation in this emerging market. Further, the results suggest that as the proportion of government ownership falls, management has increased incentive to voluntarily supply additional information to the market.

Originality/value

The SE reform is unique to China and this paper is the first to report on financial reporting disclosure implications of this reform.

Details

Accounting Research Journal, vol. 23 no. 1
Type: Research Article
ISSN: 1030-9616

Keywords

Article
Publication date: 24 June 2019

Cristina Silvia Nistor, Cristina Alexandrina Stefanescu, Tudor Oprisor and Andrei Razvan Crisan

This paper aims to investigate whether the key items encompassed in the new reporting trends are addressed in the current reporting set and, also, whether there are…

Abstract

Purpose

This paper aims to investigate whether the key items encompassed in the new reporting trends are addressed in the current reporting set and, also, whether there are certain patterns regarding disclosure practices across a sample of reporting entities.

Design/methodology/approach

The research methodology takes into consideration both the financial and non-financial elements from the entities’ activities and embeds them in the analysis, in a more holistic frame offered by integrated reporting. The disclosure level is investigated using the six-tier capital model from the International Integrated Reporting Council Framework and the eight major principles from GRI guidelines. Furthermore, the cluster analysis is used to identify the disclosure practices patterns within some European Union local public administrations.

Findings

The level of disclosure within the analyzed entities is relatively high. Also, the results of the cluster analysis reveal some disclosure patterns, especially regarding the Anglo-Saxon and Northern local public administrations, the municipalities with the highest degree of disclosure of the sample.

Research limitations/implications

The most significant limitations are represented by the sample of municipalities, the language filter and the fact that only one-year data were considered for analysis.

Practical implications

The study can be useful to any other institutions under the dome of the public sector, willing to enhance public accountability throughout greater transparency. Also, it might help the public managers to outline a long-term development plan about how to create value and to whom, material issues, risks and strategy through the integrated reporting, a cornerstone for future changes. Moreover, it might also be a subject of interest in the research environment, offering new opportunities for further empirical studies, by applying and testing it in other public organizations.

Originality/value

The study provides an original assessment tool useful to improving the reporting process. Also, it can be useful to other public institutions that are willing to enhance public accountability throughout greater transparency.

Details

Journal of Financial Reporting and Accounting, vol. 17 no. 2
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 2 August 2011

Hwan‐Yann Su, Shih‐Chieh Fang and Chaur‐Shiuh Young

The purpose of this article is to explore and illustrate how intellectual capital transparency through intellectual capital reporting can enable relationship transparency

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Abstract

Purpose

The purpose of this article is to explore and illustrate how intellectual capital transparency through intellectual capital reporting can enable relationship transparency and enhance partnership.

Design/methodology/approach

A case study research method is adopted to explore and illustrate the key research issues on a single case.

Findings

Three elements of intellectual capital transparency specific for the enhancement of business‐to‐business partnerships are proposed: the transparency of a focal business vision, value proposition, strategies and supportive knowledge resources; the transparency of information perceived as being relevant by its partners; and the transparency of relationship atmosphere. Intellectual capital transparency through the suggested intellectual capital reporting framework is very suitable for enabling holistic understanding of and enhancing partnership.

Practical implications

Businesses may benefit from making transparent their intellectual capital information to key partners because this strategy demonstrates honesty, sincerity and professionalism, aside from enabling the transparency of their totality and relationship atmosphere. With no legal obligation, transparency of intellectual capital information should be highly valued by partners, because this enables partners to more fully understand their relationships and how they can benefit from them as well as demonstrating willingness to honestly face facts and keep important indicators on track. As a result, partners should be more satisfied with their partnerships, and more willing to continue and enhance them.

Originality/value

This study proposes and illustrates how intellectual capital transparency can be used for partnership enhancement through combining limited research on relationship transparency with intellectual capital theories and thus extends the extant relationship transparency literature.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 6
Type: Research Article
ISSN: 0885-8624

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