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1 – 10 of over 1000Michael Murgolo, Patrizia Tettamanzi and Valentina Minutiello
This study aims to investigate the quality of disclosure of a cutting-edge reporting tool – integrated reporting (<IR>) – in terms of its effectiveness to report on COVID-19…
Abstract
Purpose
This study aims to investigate the quality of disclosure of a cutting-edge reporting tool – integrated reporting (<IR>) – in terms of its effectiveness to report on COVID-19 pandemic information, its ability to provide forward-looking information and risk impact implications, and its quality determinants in challenging times.
Design/methodology/approach
Thanks to a content analysis of 247 <IR> for FY20, an integrated reporting disclosure score was developed to assess the disclosure quality provided by the sampled companies. Three research questions were tested through logistic regressions.
Findings
Non-financial disclosure activities struggle to provide adequate information in terms of potential future scenarios, risk assessment and forward-looking analyses. However, companies incorporated in “Anglo-Saxon” territories drafted integrated reports of higher quality. More recently, incorporated companies have made a greater effort to measure and report COVID-19 pandemic impacts on environmental, social and governance and business activities, also increasing their risk assessment and mitigation efforts. Concerning the determinants of disclosure quality, leverage, corporate governance structures, country of incorporation and belonging to “high impact” industries all lead to a higher quality of <IR> disclosure.
Originality/value
Examining in detail corporate social responsibility activities and corporate governance integrity is pivotal to orienting strategy towards sustainable trajectories: to do so, corporate reporting and disclosure practices are essential tools. In this context, corporate governance systems that emphasize board diversity are proven, even in disruptive circumstances, to play a crucial role in providing corporate reports of higher quality. High disclosure quality that goes beyond mere financial results is considered to be necessary to remain competitive strategically, socially and environmentally.
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Aparna Bhatia and Amanjot Kaur
The purpose of this paper is to investigate whether information asymmetry mediates the relationship between disclosure and cost of equity.
Abstract
Purpose
The purpose of this paper is to investigate whether information asymmetry mediates the relationship between disclosure and cost of equity.
Design/methodology/approach
The study is based on a sample of 500 companies listed in Bombay Stock Exchange for a period of six years from 2015 to 2021. Panel data regression is applied to analyze the relationship between voluntary disclosure, cost of equity and information asymmetry. Mediation effect of information asymmetry is tested with the help of Barron and Kenny’s (1986) approach.
Findings
Findings suggest that in case of Indian companies, disclosure reduces cost of equity directly and indirectly through mediation of information asymmetry. Indian investors value credible information for better estimation of future returns, supporting the validity of estimation risk and stock market liquidity hypothesis, which proposes an inverse relationship between disclosure and cost of equity.
Research limitations/implications
Managers can use the findings to strategize their disclosure policy and secure funds at lower cost. Shareholders can monitor managerial actions by demanding credible disclosures. Government too can encourage voluntary disclosure by providing special incentives to the firms.
Originality/value
This study is a pioneering research that investigates the mediating influence of information asymmetry between disclosure and cost of equity with reference to the Indian corporate landscape.
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Prapaporn Kiattikulwattana and Ra-Pee Pattanapanyasat
This study examines whether investors value the timing and/or information of mandatory disclosures in a unique research setting of listed companies in Thailand.
Abstract
Purpose
This study examines whether investors value the timing and/or information of mandatory disclosures in a unique research setting of listed companies in Thailand.
Design/methodology/approach
The authors adopt an event-study based approach. Abnormal stock returns are calculated using an OLS market model to measure market reactions to three types of mandatory reports issued by listed Thai firms: financial statements, Form 56-1 and Form 56-2. These reports are released sequentially but contain overlapping information content. Multivariate regression models are employed to examine the market reactions to these regulatory reports and explore the characteristics of firms that affect the market response.
Findings
The stock market reacts differentially to these reports. The financial statements, which are filed the earliest and are the most concise, prompt the strongest reaction. Investors similarly react significantly to Form 56-1 and Form 56-2, although Form 56-2 provides additional information beyond Form 56-1. The market reactions to small firms are stronger. Collectively, equity investors focus on the timeliness of disclosures rather than the information disclosed in the mandatory reports.
Practical implications
The evidence provides support for ongoing regulatory initiatives aimed at improving the timeliness of mandatory disclosures in emerging economies.
Originality/value
Prior studies on disclosure regulation investigate either the effect of information content or the timing of mandatory disclosures in isolation. The authors differentiate the effect of information content from disclosure timing and extend the literature by suggesting that investors incrementally value timeliness of disclosures. Investors perceive the benefit of the timely release of quantitative information compared to subsequent narrative disclosures. Between Form 56-1 and Form 56-2, the earlier release of the narrative non-financial information is incrementally traded into share prices.
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Ethiopia has enacted laws on transparency and disclosure of information in state-owned enterprises (SOEs). However, these laws are not strict enough, with the transparency and…
Abstract
Purpose
Ethiopia has enacted laws on transparency and disclosure of information in state-owned enterprises (SOEs). However, these laws are not strict enough, with the transparency and disclosure practices disappointing in the country. Thus, this study aims to investigate the legal framework governing transparency and disclosure in SOEs.
Design/methodology/approach
This study uses doctrinal, qualitative and comparative approaches. Domestic legal texts are appraised based on the organization for economic co-operation and development Guideline on Corporate Governance of State-owned Enterprises, the World Bank Toolkit on Corporate Governance of State-owned Enterprises and best national practices. This approach has been further corroborated by qualitative analysis of the basic principles of transparency and disclosure.
Findings
The finding reveals that the laws on transparency and disclosure do not comply with global practices and are inadequate to ensure transparency and discourse in SOEs. They fail to establish appropriate disclosure frameworks and practices at the SOE and state-ownership entity levels. They also indiscriminately subject enterprises to multiple auditing functions and conflicting responsibilities.
Originality/value
To the author’s knowledge, this study is the first legal literature on transparency and disclosure in Ethiopian SOEs. This study assists the state as owner in reforming the laws and uplifting SOEs from their current unpleasant condition. It can also become a reference for future research.
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Parvez Mia, James Hazelton and James Guthrie Am
This study aims to evaluate the quality of the energy efficiency disclosures made by Australian cities. As cities are significant energy users, and energy use is a crucial source…
Abstract
Purpose
This study aims to evaluate the quality of the energy efficiency disclosures made by Australian cities. As cities are significant energy users, and energy use is a crucial source of greenhouse gas emissions, energy efficiency initiatives can play an essential role in addressing climate change. Yet, little is understood about the energy efficiency disclosures being made.
Design/methodology/approach
The authors developed an original energy efficiency disclosure index to assess the reporting quality of the eight largest Australian cities. The websites of these cities were analysed for information on energy efficiency measures from December 2018 to June 2019. Annual reports, environmental reports, climate action plans and any other material related to energy plans were downloaded and then coded using the index.
Findings
While all cities provided energy efficiency information, little financial information was provided, limited forward-looking information was disclosed, key challenges were not disclosed, and each city provided energy efficiency disclosures differently. Collectively, these findings demonstrate that public accountability is limited.
Research limitations/implications
An important implication is the need to standardise and improve cities’ energy efficiency reporting, especially concerning financial information. Cities, governments and the Carbon Disclosure Project (formerly the CDP) could achieve this, perhaps as part of the broader update of the CDP city-focused guidelines for greenhouse gas (GHG) reporting.
Originality/value
Although some studies on GHG reporting by cities have already been undertaken, including energy efficiency as part of their disclosure index, no study has focused on energy efficiency disclosures. The authors provide original insights concerning these practices. The study also provides an energy efficiency disclosure index that can be used in further research.
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Hend Guermazi, Salma Damak and Adel Beldi
The aim of this study is to analyse the factors that contribute to the disclosure of relational liabilities (RLs) of the US companies.
Abstract
Purpose
The aim of this study is to analyse the factors that contribute to the disclosure of relational liabilities (RLs) of the US companies.
Design/methodology/approach
The study uses content analysis to examine the disclosure of RLs in annual reports of the US companies listed on the Nasdaq-100 index from 2013 to 2015.
Findings
The study finds a positive correlation between the disclosure of RLs and gender diversity of the board of directors as well as the education level of the CEO. By contrast, the disclosure of RLs is negatively associated with the age of the CEO. Companies in knowledge-intensive industries also tend to disclose more information about their RLs than those in other industries.
Originality/value
This study focuses on the determinants of RLs, whereas previous research has mainly examined the positive impact of voluntary disclosure of intellectual capital on financial performance. The main objective of this study is to shed light on the factors that influence the disclosure of RLs.
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Malek Alshirah and Ahmad Alshira’h
The aim of this study is to measure the risk disclosure level and to determine the relationship between ownership structure dimensions (institutional ownership, foreign ownership…
Abstract
Purpose
The aim of this study is to measure the risk disclosure level and to determine the relationship between ownership structure dimensions (institutional ownership, foreign ownership and family ownership) and corporate risk disclosure in Jordan.
Design/methodology/approach
This study used a sample of 94 Jordanian listed firms from the Amman Stock Exchange for the period from 2014 to 2017. This study measured risk disclosure using the number of risk-related sentences in the annual report, while random effects regression was used for hypotheses testing.
Findings
The results revealed that family ownership has a negative effect on risk disclosure practices, but institutional ownership, foreign ownership, firm size and leverage have no significant effect on the risk disclosure level.
Practical implications
The finding of this study is more likely be useful for many concerned parties, researchers, authorities, investors and financial analysts alike in understanding the current practices of the risk disclosure in Jordan, thus helping them in reconsidering and reviewing the accounting standards and improving the credibility and transparency of the financial reports in the Jordanian capital market.
Originality/value
This study offers novel evidence detailing the impact of ownership structure toward corporate risk disclosure, its implementation in emerging markets following the minimal amount of scholarly efforts on the topic. To the best of the authors’ knowledge, this is the first examination of the impact of ownership structure on corporate risk disclosure. Thus, this study has important implications for the decisions of executives, policymakers, shareholders and lenders, as it enables them to better understand the linkage between ownership structure on corporate risk disclosure.
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This study examines the inverted U-shaped relationship between a live-streaming seller’s disclosure of two-sided product information and consumers’ trust in the seller and…
Abstract
Purpose
This study examines the inverted U-shaped relationship between a live-streaming seller’s disclosure of two-sided product information and consumers’ trust in the seller and product. It also explores the interaction between these two types of information disclosure and their impact on purchase intention in the live-streaming sales context.
Design/methodology/approach
An e-questionnaire survey was conducted in China, followed by multiple regression and structural equation modeling analyses.
Findings
The disclosure of both negative and positive product information is positively correlated with consumers’ trust in the seller or product but does not directly affect their purchase intention. Negative information disclosure neither enhances nor diminishes the positive impact of disclosing positive information on consumer trust.
Practical implications
Live-streaming sellers (i.e. retailers or manufacturers) should disclose both positive and negative product information to form consumers’ trust toward them (or products) and enhance sales.
Social implications
Live-streaming sellers often worry about the negative effects of excessive promotions or disclosure of positive or negative product information. However, these negative effects were not statistically significant.
Originality/value
Since some researchers have found nonlinear effects of two-sided product information in other contexts, this study is the first to focus on the impact of live-streaming sellers’ disclosure of two-sided product information on consumers’ trust in the live-streaming sales context rather than on the information per se.
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Waqas Anwar, Arshad Hasan and Franklin Nakpodia
Because of growing corporate tax scandals, there is an enhanced focus on corporate taxation by governments, institutions and the general public. Transparency in tax matters has…
Abstract
Purpose
Because of growing corporate tax scandals, there is an enhanced focus on corporate taxation by governments, institutions and the general public. Transparency in tax matters has been identified as critical for effectively managing and promoting socially responsible tax behaviour. This study aims to explore the impact of ownership structure, board and audit committee characteristics on corporate tax responsibility (CTR) disclosure.
Design/methodology/approach
This research collected data from the annual reports of Pakistani-listed firms over 12 years, from 2009 to 2020. Consequently, the data set encompasses a total of 1,800 firm-year observations. This study uses regression analysis to test the relationship between corporate governance and CTR disclosure.
Findings
The results show that board gender diversity, managerial ownership and audit committee independence promote tax responsibility disclosure. In contrast, family board membership, CEO duality, foreign ownership and family ownership negatively impact tax responsibility disclosure. Additional analyses reveal the specific information categories that produce the overall effects on tax responsibility disclosure and assess the moderating impact of family firms on the governance and CTR disclosure nexus.
Practical implications
Corporations can use the results to encourage practices that enhance transparency and improve the quality of disclosures. Regulatory authorities can use the findings to stipulate better protocols. Doing so will be vital for developing countries such as Pakistan to improve tax revenue and cultivate economic growth.
Originality/value
While this research represents, to the best of the authors’ knowledge, one of the first empirical investigations of the association between corporate governance and CTR, the results contribute to the corporate governance literature and offer fresh insights into CTR, an emerging dimension of corporate social responsibility.
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Guang Zhu, Fengjing Li, Yi Yan and Hustin Guenis
The collection and use of personal medical information for mobile health (mHealth) service raise significant privacy concerns. In this context, this study aims to explore the…
Abstract
Purpose
The collection and use of personal medical information for mobile health (mHealth) service raise significant privacy concerns. In this context, this study aims to explore the privacy paradox and its impact from the perspective of paradox resolution.
Design/methodology/approach
Based on social support theory and privacy calculus theory, this study first studies the effect of social support on perceived benefits, and explores the moderating effect of perceived health status on the privacy trade-off process. Secondly, the study examines the path of “privacy concerns – disclosure intention – disclosure behavior” to verify the existence of the privacy paradox. Following this, based on rational choice theory, the rationality degree is introduced as a moderating variable to investigate both its impact on the central route and the strength of this impact on the privacy paradox.
Findings
Empirical results show that informational support and emotional support influence perceived benefits significantly. Perceived benefits significantly influence privacy concerns, and perceived health status has a significant positive moderating effect. The authors further find that there is a privacy paradox within the mHealth context, and the privacy paradox is moderated negatively by rationality degree. The findings indicate that the impact strength of the privacy paradox will decrease with increases in rationality degree.
Research limitations/implications
The findings indicate that it is crucial to evaluate the privacy paradox and its impact from the perspective of paradox resolution.
Originality/value
This study offers a complete comprehension of the privacy paradox in mHealth and provides several valuable recommendations for enhancing both mHealth services and privacy controls.
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