Determinants of forward-looking disclosures in integrated reporting

2018 ◽  
Vol 33 (1) ◽  
pp. 115-144 ◽  
Author(s):  
Merve Kılıç ◽  
Cemil Kuzey
Keyword(s):  
Content Analysis ◽  
Design Methodology ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Board Composition ◽  
Least Squares Regression ◽  
Integrated Reporting ◽  
Content Type ◽  
Early Adopters ◽  
Forward Looking

Purpose This paper aims to examine the nature and extent of forward-looking disclosures in early examples of integrated reporting and to investigate the determinants of those disclosures. Design/methodology/approach The sample for research involved 55 non-financial companies whose reports are available in the Integrated Reporting Examples Database for the year 2014. The authors used content analysis to investigate the quantitative and qualitative forward-looking disclosures among early adopters of integrated reporting. The forward-looking disclosure index (FLDI) was categorized into two main groups, quantitative and qualitative, including 30 items in total. Multivariate ordinary least squares regression was used to investigate the associations proposed in the research hypotheses. Findings The authors determined that the majority of the entities tended to provide qualitative forward-looking disclosures rather than quantitative. Further, the findings showed that gender diversity and firm size are positively related to forward-looking disclosures, whereas leverage is negatively related to forward-looking disclosures. Contrary to expectations, the authors did not find a significant impact created by board size, board composition, profitability or industry on forward-looking disclosures. Originality/value The research contributes to the current integrated reporting and forward-looking disclosure literature. To the best of the authors’ knowledge, there is no prior study that has investigated forward-looking disclosures in integrated reports. This study contributes to the current literature by examining the determinants of forward-looking disclosures by categorizing them as quantitative and qualitative. Further, this research adds empirical findings to the literature on the association found between female directors and forward-looking disclosures.

Do females in audit firm governance affect firm performance? Findings from Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murat Ocak
Keyword(s):  
Firm Performance ◽  
Least Squares ◽  
Design Methodology ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Audit Firm ◽  
Hierarchical Levels ◽  
And Gender ◽  
Practical Implications

Purpose This study aims to contribute to the literature by offering a different sector and emphasising the importance of females in audit firm (AF) governance on audit firm performance (AFP). Design/methodology/approach Ordinary least squares (OLS) and instrument variables regression (IVREG) with two-stage least squares are used to test the paper’s hypotheses. Findings Both OLS and IVREG estimation results show that both the proportion of females and gender diversity at board and owner levels and the total number of shares of female owners seem to enhance the performance of AFs. Practical implications These results may be important for policymakers and regulators to set a quota for women’s representation on AF governance or decide arrangements for women in AFs as in the regulations for the high hierarchical levels of other corporate firms. Originality/value This paper extends the current literature in the context of AFs in Turkey, positing that females in AF governance might enhance performance to a great extent.

scholarly journals Investigating risk disclosures in Italian integrated reports

2020 ◽  
Vol 28 (6) ◽  
pp. 1149-1178 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes Rossi ◽  
Rebecca Levy Orelli ◽  
Giuseppe Nicolò
Keyword(s):  
Content Analysis ◽  
Financial Reporting ◽  
Design Methodology ◽  
Alternative Form ◽  
Risk Disclosure ◽  
Integrated Reporting ◽  
Content Type ◽  
Risk Disclosures ◽  
Do So

Purpose The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure with the adoption of IR. Design/methodology/approach The authors use risk classifications already provided in the literature to develop a content analysis of Italian organisations’ integrated reports published. Findings The content analysis reveals that most of the Italian organisations incorporate many types of risk disclosure into their integrated reports. Organisations use this alternative form of reporting to communicate risk differently from how they disclose risks in traditional annual financial reporting. That is, the study finds that the organisations use their integrated reports to disclose a broader group of risks, related to the environment and society, and do so using narrative and visual representation. Originality/value The paper contributes to a narrow stream of research investigating risk disclosure provided through IR, contributing to the understanding of the role of IR in representing an organisational risk.

New trends in intellectual capital reporting

2018 ◽  
Vol 19 (4) ◽  
pp. 814-835 ◽  
Author(s):  
Francesca Manes Rossi ◽  
Giuseppe Nicolò ◽  
Paolo Tartaglia Polcini
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Information Needs ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
University System ◽  
Content Type ◽  
Explanatory Factors ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to explore a new way to disclose intellectual capital (IC) in universities through their websites. Going beyond traditional tools used for intellectual capital disclosure (ICD), this study aims at identifying possible determinants of ICD via the web. Design/methodology/approach This paper analyses the institutional websites of a sample of Italian universities adapting the theoretical framework developed by Low et al. (2015) to the peculiarities of the Italian university system. Moreover, the relationship between certain explanatory factors identified in previous research and the extent of online ICD represented by two disclosure indexes was tested through an ordinary least squares regression model. Findings The analysis reveals the extensive use of ICD via websites, especially regarding human and internal capital, while the disclosure of external capital through this means is still limited. Internationality and online visibility both positively affect the extent of a university’s ICD. Research limitations/implications The paper represents the first study investigating online ICD and its determinants in universities, contributing new knowledge to help answer the how and what of the matter. Practical implications The results can serve as encouragement to university managers to enhance online ICD to meet the information needs of a wider audience. Originality/value This is the first study to provide evidence about online ICD in universities and to reveal some of the possible determinants to improve this disclosure.

Gender diversity on audit committees and its impact on audit fees: evidence from India

2019 ◽  
Vol 32 (4) ◽  
pp. 568-586 ◽  
Author(s):  
Seema Miglani ◽  
Kamran Ahmed
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Gender Diversity ◽  
Audit Fees ◽  
Ordinary Least Squares ◽  
Audit Committees ◽  
Women Directors ◽  
Least Squares Regression ◽  
Content Type ◽  
Financial Expert

Purpose The purpose of this study is to examine the relationship existing between gender diverse (women directors) audit committees and audit fees. Design/methodology/approach The authors use a sample of 200 listed Indian firms over a four-year period (2011-2014). Ordinary least squares regression is used to assess whether and how the presence of women directors on audit committees affects the fee paid to the external auditor in India. To deal with the self-selection bias, the authors use a two-stage model developed using Heckman’s (1976) method. Findings The results show a significant positive relationship between the presence of a woman financial expert on the audit committee and audit fees after controlling for a number of firm-specific and governance characteristics and potential endogeneity with the propensity-matching score analysis. From the demand-side perspective of audit pricing, the results indicate that women financial experts on audit committees increase the need for assurance provided by external auditors. Using interaction terms, the authors find that women with financial expertise on an audit committee have a stronger association with audit fees as entity becomes more complex. Research limitations/implications The findings suggest that audit committees with women financial experts are likely to demand higher audit quality, ceteris paribus. Practical implications Gender of the financial expert is critical to the audit committee’s effectiveness. The findings of this study have implications for the composition of an audit committee in a firm. Originality/value This study contributes to the extant literature by examining the less-researched topic of the association between the women representation on audit committees and audit fees. It also offers further empirical evidence that will influence the debate on the importance of gender diversity in corporations.

Intellectual capital disclosure in integrated reporting: an impression management analysis

2015 ◽  
Vol 16 (3) ◽  
pp. 661-680 ◽  
Author(s):  
Gaia Melloni
Keyword(s):  
Content Analysis ◽  
Impression Management ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Public Perceptions ◽  
Integrated Reporting ◽  
Content Type ◽  
International Integrated Reporting Council ◽  
The Relationship

Purpose – Intellectual capital (IC) is fundamental to understanding how firms create value; however, current IC disclosure (ICD) has been described as inadequate due to the lack of an established IC framework and companies’ actual commitment to report IC information. The International Integrated Reporting Council aims to foster ICD by means of integrated reporting (IR); such a report should display how IC and other forms of capital (e.g. financial) contribute to value creation over time. Drawing on impression management (IM) studies, the purpose of this paper is to assess the quality of ICD offered in IR. Design/methodology/approach – A manual content analysis of all the reports available in the International Integrated Reporting Council web site is run considering both the content of ICD and specific linguistic attributes (evidence, time orientation and tone). In addition, the study tests the relationship between the positive ICD tone and specific characteristics that may incentive managers to manipulate their disclosure to determine whether firms use ICD to manage public perceptions of corporate behaviour. Findings – The results of the content analysis show that majority of ICD is focused on relational capital, with limited quantitative and forward-looking information. Additionally, compared to non-ICD, ICD is significantly more optimistic. Furthermore, the positive tone of ICD is significantly associated with declining performance, bigger size and higher level of intangibles supporting the use of ICD as an IM strategy. Originality/value – The research contributes to the literature offering evidence of the quality of the ICD offered in the IR and demonstrating that ICD offered in the IR is used by managers opportunistically to advance their image.

Female directors and the cost of debt: does gender diversity in the boardroom matter to lenders?

2019 ◽  
Vol 34 (4) ◽  
pp. 374-392 ◽  
Author(s):  
Muhammad Usman ◽  
Muhammad Umar Farooq ◽  
Junrui Zhang ◽  
Muhammad Abdul Majid Makki ◽  
Muhammad Kaleem Khan
Keyword(s):  
Least Squares ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Cost Of Debt ◽  
Least Squares Regression ◽  
Two Stage ◽  
Loan Default ◽  
Content Type ◽  
Female Directors ◽  
The Cost

Purpose This paper aims to investigate the question concerning whether gender diversity in the boardroom matters to lenders or not? Design/methodology/approach To answer this question, the authors use the data from 2009 to 2015 of all A-share listed companies on the Shanghai and Shenzhen stock exchanges. The authors use ordinary least squares regression and firm fixed effect regression to draw our inferences. To check and control the issue of endogeneity the authors use one-year lagged gender diversity regression, two-stage least squares regression, propensity score matching method and Heckman two-stage regression. Findings The results suggest that the presence of female directors on the board reduces managerial opportunistic behavior and information asymmetry and, consequently, creditors’ perceptions about the probability of loan default and the cost of debt. The authors find that lenders charge 4 per cent less from borrowers that have at least one female board member than they do from borrowers with no female board members. The authors also find that the board structure (i.e. gender diversity) of government-owned firms also matters to lenders, as government-owned firms that have gender-diverse boards have a lower cost of debt (i.e. 5 per cent lower interest rate). Practical Implications The findings have implications for individual borrowers and for regulators. For example, borrowers can get debt financing at lower rates by altering their boards’ composition (i.e. through gender diversity). From the regulatory perspective, the results support recent legislative initiatives around the world regarding female directors’ representation on boards. Originality Value This paper makes several contributions. First, beyond the recent studies on boardroom gender, the authors investigate the relationship between gender diversity in the boardroom and the cost of debt. Second, the authors extend the literature on the association between government ownership and cost of debt by first time providing evidence that the board composition (e.g. gender diversity) of government-owned firms also matters to the lenders. The other contributions are discussed in the introduction section.

Continuous disclosure and information asymmetry

2015 ◽  
Vol 28 (2) ◽  
pp. 195-224 ◽  
Author(s):  
Mark Russell
Keyword(s):  
Information Asymmetry ◽  
Least Squares ◽  
Design Methodology ◽  
Ordinary Least Squares ◽  
Bad News ◽  
Least Squares Regression ◽  
Two Stage ◽  
Ordinary Least Squares Regression ◽  
Content Type ◽  
High Information

Purpose – This paper aims to examine whether firms with high information asymmetry disclose more information under a continuous disclosure regime, and, second, the paper examines whether continuous disclosures reduce information asymmetry. Design/methodology/approach – The study models relations between continuous disclosures and information asymmetry using ordinary least squares regression and two-stage least squares regression. Findings – The study finds firms with high information asymmetry disclose more information. Further, the study finds that disclosure in the presence of high information asymmetry increases asymmetry. Finally, while bad news increases information asymmetry, the disclosure of firm-specific good and bad news is associated with reduced information asymmetry. Originality/value – The paper identifies conditions under which Continuous Disclosure Regime increases information in markets and influences information asymmetry.

scholarly journals Engaged in integrated reporting? Evidence across multiple organizations

2018 ◽  
Vol 30 (4) ◽  
pp. 398-426 ◽  
Author(s):  
Ana Isabel Lopes ◽  
Ana Margarida Coelho
Keyword(s):  
Content Analysis ◽  
Design Methodology ◽  
Secondary Analysis ◽  
Market Value ◽  
Integrated Reporting ◽  
Firm Level ◽  
International Debate ◽  
Content Type ◽  
Practical Implications ◽  
Shed Light

Purpose The purpose of this paper is twofold: to provide evidence on geographic and firm-level characteristics within organizations using integrated reporting (<IR>) methodology to communicate their business model to stakeholders; and to shed light on the contend of integrated reports of organizations that have been recognized as leading practice by a reputable award process or through benchmarking. Design/methodology/approach Secondary analysis of data (descriptive and inferential statistics) is used for a sample of 224 organizations (79 classified as <IR> Reference Reporters and 145 as <IR> Regular Reporters) across 26 countries (2011 to mid-2015). Content analysis is used for <IR> Reference Reporters. Findings Evidence for the first objective suggests that compared with <IR> Regular Reporters, the majority of the <IR> Reference Reporters are from Europe, are larger, have a higher market value, are more profitable and are less leveraged. Evidence for the second objective reveals that the guiding principles, fundamental concepts and content elements of the most recent integrated report published by each <IR> Reference Reporter (leading practice) seem less than expected. Research limitations/implications <IR> Examples Database does not cover all of the organizations reporting according to the <IR> framework. Content analysis can be biased by authors’ interpretations. Practical implications Potential benefit both to researchers and to those involved in the reporting of financial and non-financial information using the <IR> tool. Originality/value The originality of the paper is as follows: it contributes to the international debate on the evolution from sustainability to <IR>, provides evidence on geographies and firm-level characteristics of organizations using <IR> to better communicate and provides the most prominent information disclosed by Reference Reporters.

Mobile money adoption and spending behaviour: the case of students in Ghana

2018 ◽  
Vol 45 (1) ◽  
pp. 29-42 ◽  
Author(s):  
Georgina Maku Cobla ◽  
Eric Osei-Assibey
Keyword(s):  
Design Methodology ◽  
Ordinary Least Squares ◽  
Easy Access ◽  
Least Squares Regression ◽  
Monthly Basis ◽  
Content Type ◽  
Mobile Money ◽  
Technological Growth ◽  
The University ◽  
University Of Ghana

Purpose The purpose of this paper is to investigate how the use of the mobile money technology among students affects their spending behaviour. Design/methodology/approach The study reports interesting findings by using a random sample of 506 students from the University of Ghana and applying ordinary least squares regression technique. Findings The findings suggest that active use of mobile money services has significant influence on students spending behaviour. On a monthly basis, students who use mobile money spend on the average 20 Ghana Cedis more than their colleagues who do not use mobile money. Students who use both mobile money and ATMs jointly spend nearly 13 Ghana Cedis more than their counterparts who use either of them. Social implications The implication of this finding is that mobile money technology which provides easy access to money can increase spending behaviour of students and reduce the tendency of savings. The authors therefore conclude that although technological growth should not be curtailed given the numerous benefits technology accrues to society, its use must be controlled, in particular, when it comes to using it as a medium of exchange so as to minimize the negative influences (such as indiscriminate spending). Originality/value This paper studies the post-adoption behavioural responses of mobile money users particularly among students in Africa which is rare in the literature.

Analyzing smart cities' reporting: do they report “smart”?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Cohen ◽  
Sotirios Karatzimas
Keyword(s):  
Content Analysis ◽  
Smart City ◽  
Design Methodology ◽  
Smart Cities ◽  
Integrated Reporting ◽  
Financial Reports ◽  
Content Type ◽  
Reporting Practices ◽  
City Councils ◽  
Manifest Content

PurposeThis study examines the reporting practices of a sample of awarded smart cities that report in English by analyzing the financial and non-financial reports published in their websites.Design/methodology/approachThe study performs a manifest content analysis on the financial and non-financial reports published by a sample of awarded – by various networks and organizations – smart cities. Integrated Popular Reporting that builds on Integrated Reporting, Popular Reporting and ICT advancements is used as the reference paradigm to analyze the content and the characteristics of these reports.FindingsThe results indicate that smart cities' reports are mainly developed conventionally and do not embed technological advancements. However, there are several smart cities that adopt a reporting paradigm where the five capitals of Integrated Reporting, over and above the financial one, are discussed.Originality/valueSystematizing the way the existing reports of smart cities are developed provides evidence whether smart cities adopt reporting means that are consistent with their character, as well as, the specific areas they should focus to achieve that. Toward this end, collaborations between citizens and smart city councils, in the philosophy of co-production and co-creation of public value, could prove helpful in the development of useful reports.

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