Nexus between risk disclosure and corporate reputation: a longitudinal approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nischay Arora ◽  
Ridhima Saggar ◽  
Balwinder Singh
Keyword(s):  
Corporate Reputation ◽  
Market Value ◽  
Risk Information ◽  
Future Research ◽  
Risk Disclosure ◽  
Total Risk ◽  
Content Type ◽  
Book Value ◽  
Market Capitalization ◽  
The Impact

PurposeThe study aims to explore the unexplored domain by examining the impact of risk disclosure on corporate reputation in an emerging economy, like India, characterized by huge information asymmetry and uncertainty.Design/methodology/approachIn total two measures of corporate reputation, i.e. market capitalization and excess of market value over book value have been deployed to measure reputation. Automated content analysis has been executed to measure the extent of total risk disclosure. The empirical analysis is premised on a sample of S&P BSE-100 index spanning over the period of ten years from 2009–2010 to 2018–2019; which eventually gets reduced to 58 nonfinancial firms. In order to unearth the risk–reputation relationship, a panel regression technique has been employed.FindingsThe main findings unmask that corporate risk disclosure has a positive bearing on corporate reputation. Substantiating legitimacy theory, its alternative measures like market capitalization and excess of market value over book value divulged to positively influence corporate reputation.Research limitations/implicationsThe study has certain limitations: since there is no standard method of measuring reputation, the results may vary subject to the changes in proxies of corporate reputation. The study also analyzed S&P BSE 100 index in India, and future research needs to approach a larger sample and in other emerging economies to fill up enough empirical evidence in this domain.Practical implicationsThe findings provide insight into the managers on making higher divulgence of material risk information for augmenting corporate reputation. In other words, it indirectly propels the firm to exhibit higher risk information for building reputational capital. From the investor's standpoint, they should admire such firms which dispel more risk information and should have positive outlook toward them, which in turn prompts them to disclose more risks.Originality/valueThis study is unique as it is the first longitudinal study examining the impact of risk disclosure on corporate reputation in Indian settings. It, thus, assists in furthering the risk disclosure literature where there is hardly any study that comprehensively looks into risk–reputation liaison among Indian nonfinancial companies.

The determinants of internet risk disclosure: empirical study of Egyptian listed companies

2017 ◽  
Vol 32 (8) ◽  
pp. 746-767 ◽  
Author(s):  
Ali Khalil ◽  
Mona Maghraby
Keyword(s):  
Listed Companies ◽  
Ordinary Least Squares ◽  
Risk Information ◽  
The Internet ◽  
Least Squares Regression ◽  
Risk Disclosure ◽  
Content Type ◽  
Reporting Practices ◽  
Board Characteristics ◽  
The Impact

Purpose The purpose of this paper is to contribute to the existing disclosure literature by examining the determinants of corporate risk disclosure (CRD) in the internet reporting for a sample of Egyptian listed companies on the Egyptian Stock Exchange (EGX). Design/methodology/approach This study depends on a sample of 76 Egyptian companies included in the EGX 100 in the period 2012-2014. The study applies a content analysis and uses a sentence-based method to measure CRD in the internet reporting. Ordinary least-squares regression analysis is used to examine the impact of firm and board characteristics on CRD in the internet reporting. Findings The empirical analysis shows that large Egyptian companies tend to disclose more risk information in their internet reporting. Moreover, the results indicate that there is a significant positive association between sector type and CRD in the internet reporting. The results show non-significant association between CRD and other firm characteristics (cross listing and level of risk). Finally, there are no significant associations between CRD and board characteristics variables (board size, board composition and CEO duality). Research limitations/implications The study’s findings have practical implications. It aids in informing policy makers considering implementing new economic reform programs about the properties of Egyptian companies that disclose risk information in their internet reporting. It provides insights on CRD in Egyptian companies for standards setters and professional authorities to improve risk reporting practices to help stakeholders in making good decisions. Originality/value This study is one of the first studies to examine the determinants of CRD in the internet reporting for a sample of Egyptian companies.

scholarly journals Evolution of corporate reputation during an evolving controversy

2019 ◽  
Vol 23 (1) ◽  
pp. 52-71 ◽  
Author(s):  
Siyoung Chung ◽  
Mark Chong ◽  
Jie Sheng Chua ◽  
Jin Cheon Na
Keyword(s):  
Machine Learning ◽  
Social Media ◽  
Sentiment Analysis ◽  
Corporate Reputation ◽  
Supervised Machine Learning ◽  
Future Research ◽  
Content Type ◽  
Twitter Users ◽  
Corporate Crisis ◽  
The Impact

PurposeThe purpose of this paper is to investigate the evolution of online sentiments toward a company (i.e. Chipotle) during a crisis, and the effects of corporate apology on those sentiments.Design/methodology/approachUsing a very large data set of tweets (i.e. over 2.6m) about Company A’s food poisoning case (2015–2016). This case was selected because it is widely known, drew attention from various stakeholders and had many dynamics (e.g. multiple outbreaks, and across different locations). This study employed a supervised machine learning approach. Its sentiment polarity classification and relevance classification consisted of five steps: sampling, labeling, tokenization, augmentation of semantic representation, and the training of supervised classifiers for relevance and sentiment prediction.FindingsThe findings show that: the overall sentiment of tweets specific to the crisis was neutral; promotions and marketing communication may not be effective in converting negative sentiments to positive sentiments; a corporate crisis drew public attention and sparked public discussion on social media; while corporate apologies had a positive effect on sentiments, the effect did not last long, as the apologies did not remove public concerns about food safety; and some Twitter users exerted a significant influence on online sentiments through their popular tweets, which were heavily retweeted among Twitter users.Research limitations/implicationsEven with multiple training sessions and the use of a voting procedure (i.e. when there was a discrepancy in the coding of a tweet), there were some tweets that could not be accurately coded for sentiment. Aspect-based sentiment analysis and deep learning algorithms can be used to address this limitation in future research. This analysis of the impact of Chipotle’s apologies on sentiment did not test for a direct relationship. Future research could use manual coding to include only specific responses to the corporate apology. There was a delay between the time social media users received the news and the time they responded to it. Time delay poses a challenge to the sentiment analysis of Twitter data, as it is difficult to interpret which peak corresponds with which incident/s. This study focused solely on Twitter, which is just one of several social media sites that had content about the crisis.Practical implicationsFirst, companies should use social media as official corporate news channels and frequently update them with any developments about the crisis, and use them proactively. Second, companies in crisis should refrain from marketing efforts. Instead, they should focus on resolving the issue at hand and not attempt to regain a favorable relationship with stakeholders right away. Third, companies can leverage video, images and humor, as well as individuals with large online social networks to increase the reach and diffusion of their messages.Originality/valueThis study is among the first to empirically investigate the dynamics of corporate reputation as it evolves during a crisis as well as the effects of corporate apology on online sentiments. It is also one of the few studies that employs sentiment analysis using a supervised machine learning method in the area of corporate reputation and communication management. In addition, it offers valuable insights to both researchers and practitioners who wish to utilize big data to understand the online perceptions and behaviors of stakeholders during a corporate crisis.

scholarly journals The impact of board diversity and voluntary risk disclosure on financial outcomes. A case for the manufacturing industry

2020 ◽  
Vol 35 (5) ◽  
pp. 445-462
Author(s):  
Nuria Reguera-Alvarado ◽  
Francisco Bravo-Urquiza
Keyword(s):  
Boards Of Directors ◽  
Manufacturing Industry ◽  
Value Relevance ◽  
Risk Information ◽  
Future Research ◽  
Board Diversity ◽  
Content Type ◽  
Financial Outcomes ◽  
Risk Disclosures ◽  
The Impact

Purpose The purpose of this paper is to analyse how board diversity affects firm financial outcomes through the way in which this diversity helps to improve voluntary disclosures. Design/methodology/approach The partial least squares (PLS) technique is used, and a sample of the manufacturing firms listed in Standard and Poor’s 500 for 2009 is studied. In relation to board diversity, two specific characteristics are considered, namely, gender diversity and ethnic diversity. Content analysis techniques are used to measure risk disclosures. Findings The results show that there is a positive association between board diversity and firms’ financial outcomes, which is explained by disclosing risk information. Research limitations/implications The results indicate that the effect of boards of directors on firm outcoumes is influenced by the board involvement in specific strategies, thereby providing encouraging opportunities for future research. Practical implications These findings have implications both for companies, when selecting board members, and for policymakers, when establishing requirements concerning board composition. Moreover, the evidence highlights the role of disseminating risk information, which has direct implications for managers and regulators, who may better understand the value-relevance of risk disclosures. Originality/value The use of PLS technique is one of the novelties of this paper. The novelty of this approach provides fresh insights into the literature, highlighting that the effect of boards on firm outcomes may be mediated by director involvement in specific disclosure strategies.

Risk reporting appraisal in post-revolutionary Tunisia

2018 ◽  
Vol 16 (4) ◽  
pp. 522-542 ◽  
Author(s):  
Wael Hemrit
Keyword(s):  
Corporate Governance ◽  
Liquidity Risk ◽  
Operational Risk ◽  
Risk Information ◽  
Risk Disclosure ◽  
Board Size ◽  
Content Type ◽  
Tunisian Revolution ◽  
The Impact ◽  
Risk Reporting

Purpose This paper aims to investigate the determinants of operational and liquidity risk reporting for the Tunisian insurance and banking sectors after the outbreak of the Tunisian revolution on 14 January 2011. Design/methodology/approach A manual content analysis approach was used to measure risk disclosure by counting the number of risk-related words within risk-related sentences in a wide range of publications. Findings The results show that operational risk disclosure is associated positively with operational losses frequency, institution size and the proportion of independent non-executive members of the board of directors. Also, board size is found to be negatively associated with risk disclosure. Moreover, net stable funding ratio, size and proportion of independent non-executive members have a positive effect on liquidity risk disclosure. The authors also discover that infrequency of board meetings and the presence of young members on the board increase the extent of liquidity risk information. Research limitations/implications The research focuses on a small number of observations which somewhat restrict the generalization of results to the entire class of financial sector in Tunisia. Also, the qualitative character of some supposed explanatory variables (frequency and severity of operational risk) relies heavily on the experiences of interviewees and their basic perceptions. Practical implications Investors might do well to rely on such characteristics (large board size, less active board and a high proportion of non-executive directors) to predict the disclosure of risk information, either operational or liquidity risk. Board members should keep an eye on reporting on risk, by promoting the success keys of governance, because good corporate governance has to be recognizable at first to be an effective value driver. Originality/value The findings rationalize the debate over the impact of improved corporate governance on risk disclosure practices within the context of the Tunisian revolution. The logic of this rationalization may help to promote political incentives that will encourage a risk management culture based on a dynamic communication framework.

scholarly journals Intangible-driven value creation: supporting and obstructing factors

2014 ◽  
Vol 18 (3) ◽  
pp. 87-100 ◽  
Author(s):  
Elena Shakina ◽  
Mariya Molodchik
Keyword(s):  
Value Creation ◽  
Investment Decision ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Intangible Capital ◽  
Future Research ◽  
Unexpected Result ◽  
Content Type ◽  
The Impact

Purpose – This study aims to investigate the factors that support or obstruct market value creation through intangible capital. Design/methodology/approach – The paper explores the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by market value added. Specifically, the relationship between intangible-driven outperformance of companies, measured by economic value added (EVA) and a number of intangible drivers on macro-, meso- and micro-levels is analyzed. It is supposed that the process of value creation is not only confined to companies’ performances. The empirical research was conducted on > 900 public companies from Europe and the USA during the period of 2005-2009. Findings – The study establishes that investment attractiveness is affected by intangibles. It is found that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation. Research limitations/implications – The study reveals the significance of industry belonging for intangible-driven value creation. Nevertheless, it does not discover the particular characteristics of industry that influence corporate attractiveness for investors. These issues could be addressed in future research. Practical implications – The findings established in this study extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making. Originality/value – The study emphasizes the holistic framework of market value creation by analyzing a number of strategic crucial factors in line with EVA.

scholarly journals Integrated reporting, textual risk disclosure and market value

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tamer Elshandidy ◽  
Moataz Elmassri ◽  
Mohamed Elsayed
Keyword(s):  
Market Value ◽  
Unintended Consequences ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Integrated Reporting ◽  
Content Type ◽  
Market Values ◽  
Study Results ◽  
The Impact ◽  
Mandatory Provision

Purpose Exploiting the mandatory provision of integrated reporting in South Africa, this paper aims to investigate whether this regulatory switch from the conventional annual report is associated with differences in the level of textual risk disclosure (TRD). This paper also examines the economic usefulness of this regulatory change by observing the impact of TRD on the complying firms’ market values. Design/methodology/approach Archival data are collected and examined using time-series difference design and difference-in-differences design. Findings The authors find that the level of TRD within the mandatory integrated reporting is significantly lower than that of annual reports. The authors find that the impact of TRD in integrated reporting on market value compared to that of annual reports is statistically not different from zero. The authors’ further analyses suggest that corporate governance effectiveness is not a moderating factor to the study results. The results are robust to comparisons with the voluntary adoption of integrated reporting in the UK. Originality/value Collectively, the study results suggest that managers’ adherence to the mandatory provision of integrated reporting has significantly decreased the level of (voluntary) TRD they tended to convey within the conventional annual reports, resulting in a trivial impact on market value. These unintended consequences should be of interest to the International Integrated Reporting Council and other bodies interested in integrated reporting.

scholarly journals Chinese students’ participation: the effect of cultural factors

2014 ◽  
Vol 56 (5) ◽  
pp. 430-446 ◽  
Author(s):  
Chris S. Hodkinson ◽  
Arthur E. Poropat
Keyword(s):  
Teaching Effectiveness ◽  
Educational Achievement ◽  
Chinese Students ◽  
Educational Practice ◽  
Chinese Student ◽  
Future Research ◽  
Electronic Interaction ◽  
Content Type ◽  
Cultural Elements ◽  
The Impact

Purpose – The purpose of this paper is to provide for Western educators of international Chinese and Confucian Heritage Culture (CHC) students the first integrated review of kiasu, the “fear of missing out”, and its consequences for learning, teaching, and future research. Design/methodology/approach – A review of the economic importance of international Chinese students is provided, followed by consideration of the pedagogical consequences of restricted participation in educational activities by the so-called “silent Chinese student”. Examination of research on international Chinese students and their source cultures established significant gaps and misunderstandings in the generally accepted understandings of CHCs, especially with respect to the actual practices used in Western and Chinese teaching. More importantly, the participation-related implications of kiasu within the context of broader cultural characteristics are described and implications drawn for teaching practices and research. Findings – While many Western university teachers are aware of the “silent Chinese student” phenomenon, few understand its underlying reasons, especially the kiasu mindset and its relationship to other cultural elements. Kiasu actively impedes the interaction of international Chinese students with their teachers and restricts collaboration with peers, thereby limiting educational achievement. Specific tactics for amelioration are reviewed and recommendations are provided, while an agenda for future research is outlined. Practical implications – Western teachers need to normalise and encourage Chinese student participation in class activities using tactics that have been demonstrated to improve outcomes for Chinese students, but that also assist students generally. These include both within-class and electronic interaction tools. Social implications – More culturally sensitive understanding of the impact of cultural differences on teaching effectiveness. While some effective responses to these already exist, further research is needed to expand the skill-set of Western teachers who work with international Chinese students. Originality/value – This paper provides the first systematic integration of the kiasu phenomenon with educational practice and research.

How do you warn them if they speak only Spanish? Challenges for organizations in communicating risk to Colonias residents in Texas, USA

2014 ◽  
Vol 23 (5) ◽  
pp. 533-550 ◽  
Author(s):  
Sudha Arlikatti ◽  
Hassan A. Taibah ◽  
Simon A. Andrew
Keyword(s):  
Nonprofit Organizations ◽  
Online Survey ◽  
Linguistically Diverse ◽  
Risk Information ◽  
Culturally And Linguistically Diverse ◽  
Future Research ◽  
Snowball Sampling ◽  
Content Type ◽  
Diverse Groups ◽  
Communicating Risk

Purpose – The purpose of this paper is to examine the information channels used by public and nonprofit organizations to communicate disaster risk information to Colonias residents in Hidalgo County, Texas. It seeks to find creative and proactive solutions for organizations to improve risk education to these constituents. Design/methodology/approach – Initially a snowball sampling technique was used to conduct six face-to-face interviews. This was followed by an online survey sent to 64 reputational referrals, of which 23 completed the survey, generating a response rate of 34 percent. A comparative analysis between public and nonprofit organizations and the Fischer's exact test were employed to analyze the data. Findings – Channel preferences for providing risk information varied with public organizations using the television (TV) and the nonprofit organizations using bilingual staff for outreach. The television, radio, public events, and bilingual staff were considered to be the most effective while social media (Facebook, Twitter, and city web sites) was not considered at all by both groups. Lack of funding and staffing problems were identified as the primary challenges. Research limitations/implications – One limitation is that the paper focusses on organizations serving Spanish speakers in the Texas Colonias. Future research needs to investigate how other localities at border sites where culturally and linguistically diverse groups might reside, receive and understand risk information. The role of cross-national organizations in creating internationally coordinated plans for disaster communication should also be explored. Originality/value – It highlights the challenges faced by organizations in communicating risk, especially in border communities where culturally and linguistically diverse groups reside.

Transnationality in the XXI century. Concept and indicators

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Grazia Ietto-Gillies
Keyword(s):  
Structural Changes ◽  
Transnational Corporation ◽  
First Century ◽  
Future Research ◽  
Content Type ◽  
Low Degree ◽  
Fixed Assets ◽  
Inclusive Concept ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of major structural changes on the conceptualization of the transnational corporation (TNC) based on foreign direct investment (FDI) and on indicators of transnationality. Design/methodology/approach Analysis of three major structural changes which impact the current conception of transnationality. They are: the rise of digital companies; the increased role of finance in the economy; externalization of activities via non-equity modalities (NEMs) with an impact on FDI and on the labour market. Findings The paper finds that the current concept of transnationality needs widening to take account of companies with a low degree of fixed assets abroad such as the digital and the financial companies and those internationalizing via NEMs, as well as to take account of the evolving relationship between TNCs and labour. Research limitations/implications Future research along the lines proposed should consider: working explicitly with the new, inclusive concept of transnationality and arrive at an empirical estimate of the proposed indices of transnationality which modify and amplify the current United Nations Conference on Trade and Development indices. Social implications Useful for understanding the nature of transnationality in the twenty-first century and for developing policies. Originality/value The paper proposes a new concept of transnationality and of the TNC, one that allows for new ways of organizing direct business activities abroad. It also proposes broadening the list of indicators of transnationality.

Social capital in the theory and research of LIS professionals in the light of the literature on the subject. Review of current knowledge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maja Dorota Wojciechowska
Keyword(s):  
Social Capital ◽  
Current Knowledge ◽  
Future Research ◽  
Content Type ◽  
Individual Social Capital ◽  
Rural Libraries ◽  
The Subject ◽  
The Moment ◽  
The Impact

Purpose The purpose of the paper is to present the latest scholarly trends in the field of social capital in libraries, to review research concepts published by LIS professionals and to suggest further research possibilities in this area. Design/methodology/approach This paper presents a review and critical analysis of literature associated with research on social capital in libraries to highlight its importance for the development of LIS and its impact on the functioning of environments linked with various types of libraries. The goal of literature analysis was to determine the current condition of research on social capital in libraries. The main trends were identified and the need for further qualitative analyses, which are missing at the moment, was confirmed. Findings It was determined that, so far, LIS professionals have focussed mainly on the role of municipal libraries in developing social capital, the problem of building trust, especially in immigrant circles and the impact of libraries on promoting a civil society. Academic libraries, rural libraries, organisational capital in libraries and individual social capital of librarians were a much less frequent subject of research. The role of libraries in developing social capital in educational (primary and secondary education) and professional (non-university professionals) circles is practically non-existent in research, and it will require in-depth studies and analyses in the coming years. Originality/value This paper constitutes a synthetic review of the latest research concepts concerning social capital in libraries. It identifies the most important research trends and areas that so far have not been explored and suggests research methods to help LIS professionals design future research in this area more effectively.

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