Forward-Looking Information Disclosure as a Risk Factor in Accounting—The Case of Poland

2019 ◽  
pp. 125-141
Author(s):  
Ewelina Papaj-Wlisłocka ◽  
Marzena Strojek-Filus
Keyword(s):  
Risk Factor ◽  
Information Disclosure ◽  
Forward Looking

scholarly journals What determines forward-looking information disclosure in Bangladesh?

2020 ◽  
Vol 5 (2) ◽  
pp. 225-239
Author(s):  
Pappu Kumar Dey ◽  
Manas Roy ◽  
Mohsina Akter
Keyword(s):  
Information Disclosure ◽  
Positive Impact ◽  
Small Sample Size ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Small Sample ◽  
Annual Reports ◽  
Female Representation ◽  
Content Type ◽  
Forward Looking

PurposeThe study aims to examine the level and extent of forward-looking information (FLI) disclosure and identify the determinants driving the FLI disclosure (FLID) in the context of an emerging and developing economy.Design/methodology/approachThe sample includes annual reports of the top 30 listed companies in Bangladesh for the years 2013–2017. The content analysis approach is used to examine the practice of FLID and to determine the extent of FLID based on the index. Multiple linear regression analysis is performed to identify the determinants of FLID.FindingsThis research finds that board size, auditor's global affiliation, leverage and profitability have a substantial positive impact on FLID. By contrast, firm size and listing age have a significant negative association with FLID. Moreover, contrary to our expectation, female representation in the boardroom has an inverse effect on FLID. This study, however, does not suggest any significant impact of board independence.Research limitations/implicationsSmall sample size may limit the generalizability of the findings. Besides, the FLID index score may be affected by the subjective judgment while analyzing the content of the annual report.Practical implicationsThe findings of this paper may assist the regulators and policymakers in incorporating this new reporting paradigm in regulations. Alternatively, the current research can serve as a basis to further understand the importance of FLID for the stakeholders.Originality/valueThis empirical study contributes to the current FLI literature in Bangladesh. A handful of studies have been done to examine the nature and level of FLID and find out the determinants of FLID in the developing countries. To the best of the authors' knowledge, no study yet has been explored on FLID and its determinants by classifying them as qualitative and quantitative in Bangladesh.

scholarly journals Gender diversity on boards and forward-looking information disclosure: evidence from Jordan

2018 ◽  
Vol 8 (2) ◽  
pp. 205-222 ◽  
Author(s):  
Zakaria Ali Aribi ◽  
Rateb Mohammad Alqatamin ◽  
Thankom Arun
Keyword(s):  
Information Disclosure ◽  
Family Firms ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Financial Information ◽  
Female Representation ◽  
Financial Reports ◽  
Content Type ◽  
Final Sample ◽  
Forward Looking

Purpose The purpose of this paper is to provide empirical evidence of the relationship between female representation on the board and forward-looking information disclosures (FLIDs). Design/methodology/approach The study uses the content analysis to analyze the narrative evidence from the annual financial reports of non-financial Jordanian companies listed on the Amman Stock Exchange. The final sample consists of 1,206 firm-year observations during the period 2008-2013. Findings The study provides evidence that gender diversity on boards positively affects the level of FLIDs. Further to this, the study reveals that family firms disclose more information than non-family firms. Practical implications Results of this study could be beneficial for a number of users of financial information such as, regulators, investors, auditors and lenders. The users might consider the findings of this study when they are using the company’s financial information. Consequently, users of this information could be better assisted to make right decisions. Originality/value This study contributes to the literature by identifying the role of gender on the level of FLID, particularly on family and non-family, a relatively little researched area.

scholarly journals THE EFFECT OF POLITICAL CONNECTIONS ON FORWARD- LOOKING INFORMATION DISCLOSURE FROM THE PERSPECTIVE OF THE STAKEHOLDER SALIENCE THEORY

2020 ◽  
Vol 27 ◽  
Author(s):  
Mas Nordiana Rusli ◽  
Norman Mohd. Saleh ◽  
Mohamat Sabri Hassan ◽  
Mohd Hafizuddin Syah Bangaan Abdullah
Keyword(s):  
Information Disclosure ◽  
The Body ◽  
Political Connections ◽  
Stakeholder Salience ◽  
Financial Firms ◽  
Effective Role ◽  
Stakeholder Salience Theory ◽  
Institutional Shareholders ◽  
Forward Looking

This study examines the effect of political connections (PCONS) on firms’ disclosure of forward-looking information choices in the context of developing countries. Using multivariate regression of panel data comprising 360 firmyear observations of non-financial firms listed on Bursa Malaysia between years 2014 and 2017, PCONS are found to be positively associated with disclosure of forward-looking information. However, such relationship only exists for non-financial forward-looking information. Using the stakeholder salience theory to further contribute to the body of knowledge, the strength of the connections suggests that a high composition of politically-connected directors on the board promotes greater information about the future in firms’ disclosure. The common connection through ownership of firms in emerging countries suggests the effective role of institutional shareholders in improving forecasting activities through high disclosure of forward-looking information. The study suggests a better appreciation of the hierarchical role of politically-connected directors on the board of types of forward-looking information presented to the stakeholders.

scholarly journals Can Backward-looking and Forward-looking Information Debias Prospect Effect in Earnings Announcement?

2017 ◽  
Vol 19 (3) ◽  
pp. 227
Author(s):  
Jogianto Hartono ◽  
Sri Wahyuni
Keyword(s):  
Information Disclosure ◽  
Quantitative Description ◽  
Earnings Announcement ◽  
Earnings Information ◽  
Additional Information ◽  
Clear Information ◽  
Forward Looking ◽  
Negative Earnings

This study examines the important issue of whether additional pieces of information about the earnings’ characteristics (their quantitative description and predicted earnings) can debias the prospect effect of the earnings’ announcement. The prospect effect bias can be mitigated by the availability of clear information and an integrated disclosure. Additional information that is included with the previous information will make the investors’ beliefs stronger  and it will debias any psychological effects.This research confirms the prospect effect’s bias that investors react more negatively when evaluating a company’s performance after a negative earnings information disclosure rather than react positively in evaluating the performance for a positive earnings information disclosure. The results also show that when additional pieces of information, such as a quantitative description and predicted earnings are added, they can mitigate the prospect effect’s bias. Additional information of predicted earnings as forward-looking oriented information has a stronger debiasing effect than that of additional information of a quantitative description as backward-looking oriented information.

scholarly journals Institutional Ownership and Disclosure of Forward-Looking Information: Evidence From Egypt

2019 ◽  
Vol 9 (4) ◽  
pp. 106
Author(s):  
Eman M. Saad Eldeen
Keyword(s):  
Information Disclosure ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Institutional Ownership ◽  
Listed Companies ◽  
Study Objective ◽  
Industry Type ◽  
Egyptian Stock Exchange ◽  
Future Information ◽  
Forward Looking

The main objective of this study is to investigate the relationship between institutional ownership (IO) and the extent of forward-looking information (FLI) disclosure, by companies listed in the Egyptian Stock Exchange (ESE) for the year 2017. A sample comprising 34 companies was chosen from the most active 50 Egyptian listed companies in the ESE. To attain study objective, an index comprises 23 financial and non-financial items has been developed to measure disclosure level by sample companies. The descriptive analysis reveals a weak disclosure of future information by Egyptian listed companies ranging from 0.17 to 0.58, which indicates high variation in future disclosure among sampled companies. Moreover, the correlation analyses shows a positive strong significant correlation between the future looking disclosure level and institutional ownership, and also a positive moderately significant correlation between future looking disclosure and both audit firm and firm age. However, there is no significant correlation between future information disclosure and both firm size and industry type. 

scholarly journals The determinants of forward-looking disclosure: A corporate governance perspective

2013 ◽  
Vol 10 (2) ◽  
pp. 8-19 ◽  
Author(s):  
Khaled Aljifri ◽  
Khaled Hussainey ◽  
Peter Oyelere
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Information Disclosure ◽  
Negative Impact ◽  
Securities Market ◽  
Governance Mechanisms ◽  
Active Monitoring ◽  
Corporate Governance Mechanisms ◽  
Positive Effect ◽  
Forward Looking

The main objective of this study is to explore empirically the corporate governance mechanisms in UAE that may affect the extent to which forward-looking information is disclosed. This study utilizes a sample of firms that are listed in either the Dubai Financial Market or the Abu Dubai Securities Market. It uses the accounting and market data available for 2007-2009. This study concludes that three of the corporate governance mechanisms [i.e., institutional investors; ownership (> 10%); debt ratio] have a negative impact on the level forward-looking information disclosure; whereas the governmental investors and ownership (5-10%) are found to have a positive effect on the level of forward-looking information disclosure. These results raise questions about the validity of the "active monitoring hypothesis", which states that the presence of institutional investors should increase the level of disclosure, and also about the agency argument which assumes that debt is a good mechanism to discipline management

Sign in / Sign up

Export Citation Format

Share Document