scholarly journals Impact of ASX corporate governance guidelines on sustainability reporting

2019 ◽  
Vol 32 (4) ◽  
pp. 692-724
Author(s):  
Robert Czernkowski ◽  
Stephen Kean ◽  
Stephen Lim
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Sustainability Reporting ◽  
Ethical Considerations ◽  
Content Type ◽  
Sustainability Disclosure ◽  
And Performance ◽  
The Impact ◽  
Firm Responses ◽  
Practical Implications

Purpose This paper aims to examine the impact of the Australian Securities Exchange Corporate Governance recommendations on the breadth (amount of items covered) of (environmental and social) sustainability reporting by the firms in the Top 100, around the change from G3.1 to G4 disclosure regimes. Design/methodology/approach This paper undertakes comparisons of means and regression models to investigate the changes between disclosure scores of 98 listed entities from the 2013 G3.1 to the 2015 G4 disclosure regimes. Findings This paper finds that average disclosure levels did not change. Nonetheless, disclosure practices did vary by entity size and performance. Analysis of 2015 disclosures contingent on 2013 disclosure practice indicates that disclosure changes are consistent with a pattern of mean reversion. Practical implications Evidence that low disclosers increased disclosure and high disclosers reduced disclosers is consistent with the idea that sustainability disclosure is not so much driven by any ethical considerations, but rather by a desire to not be a disclosure outlier. Reliance on voluntary disclosure to achieve a socially desired level of disclosure is unlikely to bear fruit. Originality/value This paper contributes to the literature on sustainability by examining firm responses to change in disclosure regimes, and concluding that size and peer relativities drive the disclosure process.

To disclose or not to disclose? Fashion brands' strategies for transparency in sustainability reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Iva Jestratijevic ◽  
James Ohisei Uanhoro ◽  
Rachel Creighton
Keyword(s):  
Quantitative Study ◽  
Design Methodology ◽  
Secondary Data ◽  
Sustainability Reporting ◽  
Strategic Thinking ◽  
Fashion Industry ◽  
Content Type ◽  
Strategic Disclosure ◽  
Sustainability Disclosure ◽  
Practical Implications

PurposeThe purpose of this quantitative study is to identify disclosure strategies for transparency in sustainability reporting to support strategic thinking around transparency in the fashion industry. This research has two specific research objectives: to capture progress towards greater transparency across sustainability reporting areas, across fashion brands and years, and to identify strategic approaches for transparency in sustainability reporting by revealing common patterns in business disclosure.Design/methodology/approachThe authors cross-sectionally analyzed secondary data using four consecutive Fashion Transparency Indices (2017–2020). Brands' strategies for transparency in sustainability reporting were examined through the stakeholder theory lens.FindingsFindings confirm the presence of four approaches to disclosure: measurable, ambiguous, policy-only and secretive strategy. The disclosure was disproportionally distributed between 30% brands as transparency leaders and 70% brands as transparency laggards. The most transparent brands were not necessarily those rated highest by the index but those whose progress toward transparency was traceable over the years.Research limitations/implicationsThe study has overcome the limitation of the verifiability approach, supporting the requirement for diachronic and strategic disclosure assessments.Practical implicationsAs most brands hesitantly disclose sustainability information, stakeholders cannot know whether business policies equate to more than a corporate wish list. If there is no inspection for mandatory business disclosure, and if there is no penalty for disclosure violations, some fashion retailers will continue to generate profits while operating in an uncompliant and “opaque” manner.Originality/valueThe framing of disclosure strategies for transparency in sustainability reporting is the first scholarly effort to investigate diachronically sustainability disclosure among a big sample of major fashion brands.

Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helmi A. Boshnak
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Firm Characteristics ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social ◽  
The Impact ◽  
Ifrs Implementation

Purpose This paper aims to examine firm characteristics and ownership structure determinants of corporate social and environmental voluntary disclosure (CSEVD) practices in Saudi Arabia to address the paucity of research in this field for Saudi listed firms. Design/methodology/approach The paper uses manual content and regression analyses for online annual report data for Saudi non-financial listed firms over the period 2016–2018 using CSEVD items drawing on global reporting initiative-G4 guidelines. Findings Models show that Saudi firm CSEVD has increased over time compared to previous studies to an average of 68% disclosure due to new corporate governance regulations and IFRS implementation. The models show that firm size, leverage, manufacturing industry type and government ownership are positive determinants of CSEVD, while family ownership is the negative driver of CSEVD. However, firm profitability, audit firm size, firm age and institutional ownership have no impact on the level of CSEVD. Originality/value Using legitimacy and stakeholder theories, the paper determines the influence of firm characteristics and ownership structure on CSEVD, identifying implications for firm stakeholders and providing some evidence on the impact of corporate governance regulation and IFRS implementation on such disclosure. The paper provides additional evidence on progress towards Saudi’s Vision 2030.

Factors influencing corporate sustainability disclosure practices: empirical evidence from Indian National Stock Exchange

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kishore Kumar ◽  
Ranjita Kumari ◽  
Archana Poonia ◽  
Rakesh Kumar
Keyword(s):  
Empirical Evidence ◽  
Information Disclosure ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Free Cash Flow ◽  
Government Ownership ◽  
Content Type ◽  
Flow Capacity ◽  
Sustainability Disclosure ◽  
The Impact

Purpose This study aims to evaluate the nature and extent of sustainability disclosure practices of publicly listed companies in India. Further, it investigates the impact of potential determinants on the sustainability disclosure of companies. Design/methodology/approach The study analyzes data of 75 top listed nonbanking companies operating in India included in NIFTY100 Index for the years 2014-2015 to 2018-2019. In the present study, environment, social and governance disclosure dimensions were considered to evaluate the sustainability reporting performance of companies using content analysis. Panel data analysis was conducted to investigate the impact of various factors on the extent of sustainability information disclosure. Findings Results indicate that environmentally polluting industries disclose significantly higher sustainability information than non-polluting industries in India. The empirical findings suggest that determinants such as company size, age, free cash flow capacity, government ownership and global reporting initiative (GRI) usage positively related to the extent of corporate sustainability disclosure. Contrary to the expectations, financial leverage and profitability were found to be negatively related to the sustainability disclosure of companies in India. Practical implications This study provides empirical evidence for regulators, practitioners and corporate strategists to assess the progress in the sustainability reporting landscape in India. The finding implies that large and established companies can reduce legitimacy costs through higher sustainability information disclosure. Interestingly, this premise did not hold in the case of high leveraged and profitable companies. Overall findings can also help policymakers to incorporate necessary reforms to improve sustainability reporting in India. Originality/value This study is one of the first studies to investigate the nature, extent and potential determinants of corporate sustainability disclosure in India. The paper adds to the existing literature on sustainability reporting by providing empirical evidence on the relationship between sustainability reporting and potential determinants such as government ownership, size, leverage, profitability, age, free cash flow capacity, industry and GRI usage.

scholarly journals Impact of governance structures on environmental disclosures in the Middle East and Africa

2020 ◽  
Vol 20 (4) ◽  
pp. 739-763 ◽  
Author(s):  
Erhan Kilincarslan ◽  
Mohamed H. Elmagrhi ◽  
Zezeng Li
Keyword(s):  
Corporate Governance ◽  
Middle East ◽  
Gender Diversity ◽  
Governance Structures ◽  
Environmental Disclosure ◽  
Content Type ◽  
Environmental Disclosures ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to investigate the impact of corporate governance structures on environmental disclosure practices in the Middle East and Africa (MEA). Design/methodology/approach The research model uses a panel data set of 121 publicly listed (non-financial and non-utility) firms from 11 MEA countries over the period 2010-2017, uses alternative dependent variables and regression techniques and is applied to various sub-groups to improve robustness. Findings The empirical results strongly indicate that MEA firms with high governance disclosures tend to have better environmental disclosure practices. The board characteristics of gender diversity, size, CEO/chairperson duality and audit committee size impact positively on MEA firms’ voluntary environmental disclosures, whereas board independence has a negative influence. Research limitations/implications This study advances research on the relationship between corporate governance structures and environmental disclosure practices in MEA countries, but is limited to firms for which data are available from Bloomberg. Practical implications The results have important practical implications for MEA policymakers and regulators. The positive impact of board gender diversity on firms’ environmental disclosures, policy reforms should aim to increase female directors. MEA corporations aiming to be more environmentally friendly should recruit women to top managerial positions. Originality/value This is thought to be the first study to provide insights from the efficiency and legitimation perspectives of neo-institutional theory to explain the relationship between MEA firms’ internal governance structures and environmental disclosures.

The impact of corporate governance code on earnings management in listed non-financial firms

2017 ◽  
Vol 7 (4) ◽  
pp. 428-444 ◽  
Author(s):  
Erick Rading Outa ◽  
Paul Eisenberg ◽  
Peterson K. Ozili
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Design Methodology ◽  
Explanatory Variable ◽  
Content Type ◽  
Listed Firms ◽  
Financial Firms ◽  
New Institutions ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine whether voluntary corporate governance (CG) code issued in 2002 constrain earnings management (EM) among listed non-finance companies in Kenya. Design/methodology/approach Using a panel data of 338-firm year’s observations between 2005 and 2014, the authors test the hypothesis that CG constrains EM in non-finance firms listed in Kenya. The authors regress discretionary accruals (DA) against a developed Corporate Governance Index (CGI). Findings The overall results show that DA is not significantly related to CG suggesting the voluntary CG code does not deter EM in non-finance companies in Kenya. Practical implications Evidence of income decreasing\increasing accruals implies EM still exists among the listed firms. This suggests that policymakers may need to consider radical actions including alternative or new CG approaches and new institutions to improve the effectiveness of CG. Originality/value This study extends existing studies by including composite CG as possible explanatory variable for constraining EM. The authors contribute to the debate by demonstrating that the voluntary CG code in Kenya is not effective in constraining DA and therefore the current initiatives by the regulator to change the current CG code are appropriately directed.

scholarly journals Does corporate investment efficiency affect corporate disclosure practices?

2020 ◽  
Vol 21 (2) ◽  
pp. 309-327
Author(s):  
Noha Elberry ◽  
Khaled Hussainey
Keyword(s):  
Voluntary Disclosure ◽  
Corporate Investment ◽  
Good News ◽  
Investment Efficiency ◽  
Corporate Disclosure ◽  
Content Type ◽  
High Level ◽  
The Impact ◽  
Practical Implications ◽  
Disclosure Practice

PurposeThe authors examine the impact of corporate investment efficiency on corporate voluntary disclosure for a sample of UK non-financial companies.Design/methodology/approachThe authors use a sample of FTSE All-Share firms for the period of 2007–2014. Disclosure scores are collected from Corporate Financial Information Environment (CFIE). They follow Biddle et al. (2009) and Chen et al. (2011) in measuring corporate investment efficiency.FindingsThe authors find that high level of performance-related disclosure is associated with high level of corporate investment efficiency, while high level of good news information is associated with low level of corporate investment efficiency. They also find evidence on a bidirectional relation between disclosure and corporate investment efficiency.Research limitations/implicationsThe authors’ findings would be of importance to stakeholders and corporations. Stakeholders' investment decisions could be facilitated by understanding the disclosures provided by their firms and how these firms' performance is presented. Corporations become aware of the language which must be used to signal their performance.Practical implicationsCorporations become aware of the language which must be used in their disclosures. As firms may reflect their efficient investments but not in the form of good news in order to avoid revealing their competitive advantage to competitors.Originality/valueThis paper adds to disclosure studies by introducing a new variable, corporate investment efficiency, as a determinant of corporate disclosure practice.

Innovation types and performance in growing UK SMEs

2007 ◽  
Vol 27 (7) ◽  
pp. 735-753 ◽  
Author(s):  
Adegoke Oke ◽  
Gerard Burke ◽  
Andrew Myers
Keyword(s):  
Design Methodology ◽  
Analytical Techniques ◽  
Web Based ◽  
Content Type ◽  
Radical Innovations ◽  
And Performance ◽  
Telecommunications Industries ◽  
The Impact ◽  
Practical Implications ◽  
Survey Questionnaires

PurposeThe objective of this study is to explore the types of innovation that are predominant in UK SMEs, whether they are predominantly radical or incremental, and to investigate the impact of these innovations on performance.Design/methodology/approachA web‐based survey instrument was used to administer survey questionnaires to a sample of UK SMEs in manufacturing, engineering, electronics, information technology and telecommunications industries. The response rate was 13.8 percent. Relevant statistical analytical techniques including regression for analysis was then used.FindingsIt is found that the SMEs tend to focus more on incremental than radical innovations and that this focus is related to growth in sales turnover.Practical implicationsIt is not such a bad idea for SMEs, particularly those operating in high technological industries, to focus on incremental innovations as these are actually related positively to sales turnover growth.Originality/valueAn investigation of the types of innovation that SMEs pursue is pioneering in the field as previous studies of this type have been based on large firms. The contention that the raison d'etre of SMEs is to develop radical innovations is not supported empirically, at least for the sample of SMEs. In addition, it is found that the age of an SME is not related to its focus on either incremental or radical innovation. These are the contributions of this paper.

Regulatory non-compliance and performance of deposit money banks in Nigeria

2018 ◽  
Vol 26 (3) ◽  
pp. 425-441 ◽  
Author(s):  
Ismaila Yusuf ◽  
Damola Ekundayo
Keyword(s):  
Emerging Economy ◽  
Bottom Line ◽  
Content Type ◽  
Correlational Research ◽  
And Performance ◽  
Using Data ◽  
The Cost ◽  
The Impact ◽  
Nigerian Banking ◽  
Practical Implications

Purpose The purpose of this study is to examine regulatory sanctions from an emerging economy perspective and analyzing the impact of regulators imposed monetary sanctions on banks’ performance. Design/methodology/approach The study adopted correlational research design to examine the effect of regulatory penalties on the performance of deposit money banks in Nigeria. This study used panel data from a sample of 15 deposit money banks in Nigeria for the period of 2006-2015. Multiple regression analysis was carried out. Findings Results showed that penalties imposed by regulators in the Nigerian banking industry have no significant impact on the bottom line of the defaulters. Penalties imposed on foreign exchange and international trade related infraction showed that the cost of penalties is below the benefits enjoyed from such infractions. Practical implications The insignificant impact of penalties on performance implies that deposit money banks have considered penalties imposed by regulators as operational expenses and transferred such to customers. Originality/value The study differs from other studies that examined regulatory penalties on performance by focusing on financial performance and using data from an emerging economy perceived to have weak regulatory environment.

The relationship between ownership structure and firm financial performance

2018 ◽  
Vol 25 (1) ◽  
pp. 319-333 ◽  
Author(s):  
Tariq Tawfeeq Yousif Alabdullah
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Economies ◽  
Ownership Structure ◽  
Foreign Ownership ◽  
Fiscal Year ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Impact ◽  
Practical Implications

Purpose Previous studies that dealt with corporate governance have witnessed gradually significant growth that created some new trends. The purpose of this paper is to be involved in such trends through examining the link between ownership structure as one of the important corporate governance mechanisms and firm performance in Jordan as one of emerging economies. Design/methodology/approach The current study used the multiple regression method to analyze available data for non-financial firms listed in the Amman Stock Exchange for the fiscal year 2012. Findings The findings revealed that managerial ownership has a positive impact on performance. On the other hand, the findings surprisingly showed no evidence to support the impact of foreign ownership on performance. Moreover, there is a significant evidence to support the fact that company size has no impact on firm performance. The findings also revealed that industry type has no impact on firm performance. Practical implications The practical implications of the current study demonstrated that good corporate governance is imperative to all organizations and must be encouraged for the interest of all stakeholders. Unlike the majority of the previous studies, the current study unexpectedly found that foreign ownership is not significantly contributing to the firm performance. Thus, Jordanian Government and other related/responsible parties should formulate policies for the foreign investors. Originality/value Interestingly, from developed and developing countries perspective, the study is the first of its kind that exclusively chose the mechanisms of ownership structure in its relationship with firm performance represented by market share, where no previous study has tested foreign ownership in such relationship. In that, this study is the first study in emerging economies to investigate such a link. Such new insights on this relationship by current study provide helpful information that is of great value to the government, academics, policy makers, and other stakeholders.

Value creation attempts via photographs in sustainability reporting: a legitimacy theory perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Irshad Ali ◽  
Sumit Lodhia ◽  
Anil K. Narayan
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Sustainability Reporting ◽  
Legitimacy Theory ◽  
Systematic Method ◽  
Content Type ◽  
A Value ◽  
Sustainability Reports ◽  
And Performance ◽  
Practical Implications

Purpose This paper aims to investigate the use of legitimacy strategies via the usage of photographic disclosures in sustainability reporting as an attempt towards creating value. Design/methodology/approach This study used visual content analysis to identify disclosure trends and value creation themes from sustainability-related photographs in the annual and sustainability reports of Fonterra Co-operative Group over a ten-year period. The findings were interpreted using legitimacy theory. Findings The findings show a significant increase in the usage of photographs to legitimise and reinforce the organisation’s sustainability messages. The photographs are dominated by images signalling to stakeholders’ positive sustainability messages, as a systematic method for managing stakeholder expectations to maintain, gain and even repair legitimacy. A majority of photographs have supporting textual narrative, which could be construed as an attempt by the company to make their sustainability messages explicit and provide greater legitimacy of activities and performance with the ultimate aim of enhancing organisational value. Research limitations/implications This study contributes towards an in-depth understanding of attempts at seeking legitimacy and creating organisational value through the systematic usage of photographic disclosures in sustainability reporting. Practical implications This study has the potential to inform stakeholders on linkages between sustainability photographs, value creation and legitimacy. It can help inform and assist report preparers, designers and users on the potential of photographs as a substantive medium to manage legitimacy in sustainability reporting. Originality/value This paper adds to the scant literature on the growing use of photographs as a value adding apparatus in sustainability reporting. This paper also extends the applicability of legitimacy theory to visual disclosure and suggests that legitimacy can be systematically sought to create value.

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