Investors’ perception on the usefulness of management report disclosures

2019 ◽  
Vol 27 (6) ◽  
pp. 893-920 ◽  
Author(s):  
Mostafa Kayed Mohamed ◽  
Alessandra Allini ◽  
Luca Ferri ◽  
Annamaria Zampella
Keyword(s):  
Decision Making ◽  
Institutional Investors ◽  
Information Needs ◽  
Financial Analysts ◽  
Insurance Companies ◽  
Voluntary Disclosures ◽  
Content Type ◽  
Scientific Debate ◽  
Types Of Information ◽  
Management Report

Purpose This paper aims to examine the usefulness of disclosures provided by Egyptian firms in the management report from the viewpoint of financial analysts and institutional investors. Design/methodology/approach Institutional investors are surveyed to determine whether disclosures are meeting the needs of these financial statements’ users. The final sample consists of 78 financial analysts who work at stockbrokerage firms and 36 institutional investors who work in Egyptian banks and insurance companies. Findings The main findings reveal that investors view mandatory and voluntary disclosures differently. Some voluntary disclosures are more useful than mandatory disclosures, which highlights a gap between the regulations and users’ information needs. Moreover, the findings show that respondents consider information related to ownership structure more important than information on risks and firms’ future performance. Research limitations/implications This study enriches the scientific debate on the usefulness of disclosures provided in the management report. It might also encourage other researchers to focus on investigating different types of information that may have a significant influence on the decision-making process. Practical implications The findings will be useful to regulators to improve the current rules of disclosures. In addition, these results will also be helpful to managers because they highlight the disclosure items that are considered important by users. Originality/value This study provides evidence on how users perceive the usefulness of information disclosed in the management reports for their decision-making in an emerging capital market. Even though previous studies investigated the usefulness of management reports, no one of them emphasized the users’ viewpoint.

A post-global financial crisis (GFC) framework for strategic planning, assessment and management decision making for US sustainable commercial real estate

2017 ◽  
Vol 35 (6) ◽  
pp. 589-618 ◽  
Author(s):  
Pernille Hoy Christensen
Keyword(s):  
Decision Making ◽  
Financial Crisis ◽  
Real Estate ◽  
Performance Indicators ◽  
Institutional Investors ◽  
Global Financial Crisis ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Content Type ◽  
Sustainability Initiatives

Purpose The purpose of this paper is to understand both the facts and the values associated with the breadth of issues, and the principles related to sustainable real estate for institutional investors. Sustainable real estate is a growing sector within the commercial real estate industry, and yet, the decision-making practices of institutional investors related to sustainability are still not well understood. In an effort to fill that gap, this research investigates the post-global financial crisis (GFC) motivations driving the implementation of sustainability initiatives, the implementation strategies used, and the predominant eco-indicators and measures used by institutional investors. Design/methodology/approach This paper presents the results of a three-round modified Delphi study conducted in the USA in 2011-2012 investigating the nature of performance measurements and reporting requirements in sustainable commercial real estate and their impact on the real estate decision-making process used by institutional investors. Two rounds of in-depth interviews were conducted with 14 expert panelists. An e-questionnaire was used in the third round to verify qualitative findings. Findings The key industry drivers and performance indicators influencing institutional investor decision making were associated with risk management of assets and whether initiatives can improve competitive market advantage. Industry leaders advocate for simple key performance indicators, which is in contrast to the literature which argues for the need to adopt common criteria and metrics. Key barriers to the adoption of sustainability initiatives are discussed and a decision framework is presented. Practical implications This research aims to help industry partners understand the drivers motivating institutional investors to uptake sustainability initiatives with the aim of improving decision making, assessment, and management of sustainable commercial office buildings. Originality/value Building on the four generations of the sustainability framework presented by Simons et al. (2001), this research argues that the US real estate market has yet again adjusted its relationship with sustainability and revises their framework to include a new, post-GFC generation for decision making, assessment, and management of sustainable real estate.

Enhanced business reporting: value relevance and determinants of valuation-related disclosures

2017 ◽  
Vol 18 (4) ◽  
pp. 832-867 ◽  
Author(s):  
Christine Reitmaier ◽  
Wolfgang Schultze
Keyword(s):  
Decision Making ◽  
Content Analysis ◽  
Value Relevance ◽  
Annual Reports ◽  
Valuation Theory ◽  
Voluntary Disclosures ◽  
Content Type ◽  
Book Value ◽  
Business Reporting ◽  
Market Values

Purpose Enhanced business reporting (EBR) seeks to address the information needs of investors when making company valuations for investment decisions. The purpose of this paper is to analyze the relevance for market valuation of EBR disclosures that are directly related to firm valuation (value-based reporting (VBR)). Design/methodology/approach Data are hand collected from annual reports of German publicly listed companies over five years. The content analysis is based on the valuation-related disclosure framework of the German Schmalenbach Society of Business Administration. A 2SLS approach accounts for potential endogeneity. Findings Share-based compensation, leverage, corporate size, and share volatility are significant determinants of VBR. The level of VBR is significantly associated with market values and provides additional market value explanatory power, indicating its relevance to investors in the process of valuation and decision making. Also, the relevance of book value and earnings for explaining market values increases for firms with better VBR. The findings are robust to the exclusion of banks and assurance companies and to alternative model and variable specifications. Research limitations/implications The research contributes to the literature on voluntary disclosures by testing an EBR framework explicitly derived from valuation theory. The results provide indirect evidence of the investors’ use of respective valuation techniques in decision making. A contribution is made to the value relevance literature by showing that valuation-related disclosures constitute a suitable proxy for “other information” in the Ohlson’s (1995) model. Such disclosures complement traditional accounting metrics, i.e. book value and earnings, as basis for valuations. Potential caveats relate to the content analysis of annual reports and the endogeneity of voluntary disclosures. Originality/value This paper informs the debate on further developments of EBR in helping to identify important components thereof.

scholarly journals HOSPITAL MANAGERS’ NEED FOR INFORMATION ON HEALTH TECHNOLOGY INVESTMENTS

2015 ◽  
Vol 31 (6) ◽  
pp. 414-425 ◽  
Author(s):  
Anne Mette Ølholm ◽  
Kristian Kidholm ◽  
Mette Birk-Olsen ◽  
Janne Buck Christensen
Keyword(s):  
Decision Making ◽  
Information Needs ◽  
Empirical Studies ◽  
Health Technology ◽  
Decision Makers ◽  
Core Model ◽  
Informational Needs ◽  
The Core ◽  
Types Of Information ◽  
Assessment Of Evidence

Objectives: There is growing interest in implementing hospital-based health technology assessment (HB-HTA) as a tool to facilitate decision making based on a systematic and multidisciplinary assessment of evidence. However, the decision-making process, including the informational needs of hospital decision makers, is not well described. The objective was to review empirical studies analysing the information that hospital decision makers need when deciding about health technology (HT) investments.Methods: A systematic review of empirical studies published in English or Danish from 2000 to 2012 was carried out. The literature was assessed by two reviewers working independently. The identified informational needs were assessed with regard to their agreement with the nine domains of EUnetHTA's Core Model.Results: A total of 2,689 articles were identified and assessed. The review process resulted in 14 relevant studies containing 74 types of information that hospital decision makers found relevant. In addition to information covered by the Core Model, other types of information dealing with political and strategic aspects were identified. The most frequently mentioned types of information in the literature related to clinical, economic and political/strategic aspects. Legal, social, and ethical aspects were seldom considered most important.Conclusions: Hospital decision makers are able to describe their information needs when deciding on HT investments. The different types of information were not of equal importance to hospital decision makers, however, and full agreement between EUnetHTA's Core Model and the hospital decision-makers’ informational needs was not observed. They also need information on political and strategic aspects not covered by the Core Model.

scholarly journals Cognitive Task Analysis Methods in Envisioned Tactical Command Decision Making

2019 ◽  
Vol 63 (1) ◽  
pp. 262-266
Author(s):  
Nicolette M. McGeorge ◽  
Stephanie Kane ◽  
Chris Muller
Keyword(s):  
Decision Making ◽  
Situation Awareness ◽  
Task Analysis ◽  
Information Needs ◽  
Cognitive Task ◽  
Cognitive Task Analysis ◽  
Cyber Warfare ◽  
Cyber Attack ◽  
Analysis Methods ◽  
Types Of Information

The battlespace is a volatile and complex environment in which tactical commanders face cognitively challenging responsibilities, compounded with the increased complexity of emerging cyber warfare. It is critical that tactical commanders gain adequate situation awareness for effective decision making to achieve mission success. While current tools enable distribution of large quantities and types of information, they do not adequately support the underlying cognitive work and information needs of tactical commanders. We performed a domain analysis using Cognitive Task Analysis methods, developing a prototypical operational scenario representative of current and envisioned environments, centered on a cyber-attack. Using this analysis, we identified cognitive and information requirements for information displays that support effective tactical decision making. Tactical commanders need to understand dynamic situations in the field, understand the viable courses of actions, know how their mission fits into the larger mission, and communicate with their company subordinates and higher echelons of command.

Shariah-compliant status and investors’ demand for IPOs: the effects of information asymmetry

2019 ◽  
Vol 12 (4) ◽  
pp. 489-508 ◽  
Author(s):  
Ahmad Hakimi Tajuddin ◽  
Rasidah Mohd Rashid ◽  
Karren Lee-Hwei Khaw ◽  
Norliza Che Yahya
Keyword(s):  
Decision Making ◽  
Information Asymmetry ◽  
Initial Public Offerings ◽  
Firm Size ◽  
Institutional Investors ◽  
Decision Making Process ◽  
Significant Positive Association ◽  
Essential Information ◽  
Content Type ◽  
Positive Effects

Purpose The purpose of this paper is to investigate the effects of Shariah-compliant status and the presence of information asymmetry on investors’ demand for initial public offerings (IPOs) in Malaysia. Design/methodology/approach The data regarding 260 IPOs dated for a duration of 11 years were acquired from the websites of Bursa Malaysia and Malaysian Issuing House. In evaluating the association between IPO oversubscription and the independent variables in this study, multivariate and quantile regression analyses were implemented. Findings It was found that Shariah-compliant status (DSHARIAH) had a significant positive relationship with IPO oversubscription. With this, it was indicated that Shariah-compliant status gains investors’ interests in subscribing to IPOs as these shares could be distributed to a wider group of investors. In the case of the proxies of information asymmetry, although firm size posed significant effects on IPO oversubscription, the effects were negative. Meanwhile, institutional investors posed significant positive effects on IPO oversubscription. Furthermore, it was indicated from the negative effects of firm size that less subscription is received by large firms which are perceived to possess lower information asymmetry from the investors. This is owing to the less underpricing provided by the issuers for their IPOs. However, it was indicated from the significant positive association between institutional investors and IPO oversubscription that the participation in the IPO among institutional investors would enhance the enthusiasm of investors for a specific stock and increase the probability of IPO oversubscription. With this, the winner’s curse hypothesis was supported. Research limitations/implications It is recommended that future studies investigate the compliance aspect, specifically the financial and nonfinancial aspects which may affect investors’ decision-making process for their investment. Practical implications With the availability of this study’s indicators in the prospectus, the findings of this study have provided useful insights for an issuer and underwriter to ensure a good subscription of its issuance. Social implications The findings of this study have provided further comprehension to investors regarding the essential information found in the prospectus during the decision-making process done for IPO subscription. Originality/value To the best of the authors’ knowledge, this is one of the first articles which have proven the effects of Shariah-compliant status and the presence of information asymmetry on IPO investors’ demand.

One study, four cities: information impact in neighborhood economic development

2020 ◽  
Vol 14 (4) ◽  
pp. 663-680 ◽  
Author(s):  
Jeffrey Carroll
Keyword(s):  
Decision Making ◽  
Economic Development ◽  
Local Government ◽  
Decision Makers ◽  
Government Officials ◽  
Content Type ◽  
Local Decision ◽  
Types Of Information ◽  
Local Decision Makers ◽  
Sophisticated Analysis

Purpose The purpose of this study is to create a theory on how a commissioned study impacts the decision-making of local government officials. Design/methodology/approach This study uses comparative case studies via the “Knowledge Cycle,” which is a method of examining information use for four distinct decision-making environments’ development (Baltimore, Maryland; Louisville, Kentucky; Detroit, Michigan; and Tampa, Florida). Findings This study reports significance in three factors that may explain information impact: the presence of an “information champion” who directs the application of the study toward initiatives that are important to them, the length of time that one can use information before it becomes outdated and the ability to use the study to spur dialogue with development stakeholders outside of local government. Research limitations/implications The limitation to this study is that it is limited to the observation of a specific population (local government economic development bureaucrats) and their use of a specific package of information. The debate is open to whether the findings of this study are relevant to actors using other types of information within other levels of government and within other fields of inquiry. Practical implications Advances in information technology and the proliferation of data intermediaries who can use sophisticated analysis warrant the understanding how government officials interact with the studies that they commission. Originality/value To date, there are few studies that have examined how a singular package of information is used in multiple decision-making environments. This paper adds to this dearth of scholarship while creating theory to how and why local decision-makers may use information.

The usefulness of derivative disclosures for investment decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 173-192 ◽  
Author(s):  
Zhen Huang ◽  
Simon Gao
Keyword(s):  
Decision Making ◽  
Institutional Investors ◽  
Investment Decision ◽  
Listed Companies ◽  
Small Sample ◽  
Policy Implications ◽  
Structured Interviews ◽  
Content Type ◽  
Related Information ◽  
Investment Decision Making

Purpose – The purpose of this study is to examine the usefulness of derivative disclosures from the perspective of Chinese institutional investors in relation to their investment decision-making. Design/methodology/approach – This study uses semi-structured interviews with 21 institutional investors based in China including 10 funds managers and 11 professional analysts. Findings – This study finds that the information on the use of derivatives disclosed by listed companies in China is generally perceived to be useful to Chinese institutional investors (e.g. funds managers and professional analysts) in facilitating their investment decisions, although such information is generally thought to be less significant compared to other fundamental financial information such as assets, liabilities and profits/losses. It also finds that the current provisions of derivatives-related information by Chinese listed companies are largely unsatisfied primarily because of insufficient information and the lack of timely disclosures. Furthermore, it finds that the accounting and reporting policies currently imposed in China appear to be little understood by Chinese investors. Research limitations/implications – This study has its own limitations due to the approach of interviews with a relatively small sample from only two investment firms in China. Practical implications – The findings from the study provide a number of policy implications for derivatives regulators and accounting standards setters. Originality/value – This study is the first study of its kind to investigate the perceptions of Chinese institutional investors on the usefulness of derivatives reporting and disclosures with the use of interview research method.

Does corporate disclosure policy change financial analysts' behaviour? Evidence from France

2009 ◽  
Vol 5 (3) ◽  
pp. 344-361 ◽  
Author(s):  
Faten Lakhal
Keyword(s):  
Financial Analysts ◽  
Analyst Forecasts ◽  
Simultaneous Equation ◽  
Least Square ◽  
Corporate Disclosure ◽  
Market Uncertainty ◽  
Voluntary Disclosures ◽  
Analyst Coverage ◽  
Content Type ◽  
Disclosure Policy

PurposeThe purpose of this paper is to examine whether financial analysts are sensitive to voluntary earning disclosures.Design/methodology/approachThe paper is based on a literature review of the relationship between analysts' behaviour and corporate disclosures. It is assumed first that analyst coverage both influences and is influenced by voluntary earning disclosures, and that second, French managers are expected to make voluntary disclosures in order to reduce market uncertainty. To test these hypotheses, a simultaneous equation model and an ordinary least square regression framework were estimated on a sample of 154 French‐listed firms between 1998 and 2001.FindingsThe results show that voluntary earning disclosures positively influence analyst coverage decision. They also show that voluntary disclosures improve the accuracy of analyst forecasts and reduce market uncertainty.Research limitations/implicationsThe paper does not cover all forms of corporate voluntary disclosures.Practical implicationsThe findings suggest that corporate disclosure policy is likely to change financial analysts' behaviour. The results are useful to both managers, wishing to meet market expectations and, to investors wishing to invest in richer informational environment firms.Originality/valueThis paper provides original results about the role of analysts in France as information intermediaries. These analysts pay little attention to French firms with a poor information environment in which minority shareholders are less inclined to ask for costly analyst coverage.

An investigation into the investment decision-making practices of South African institutional investors

2017 ◽  
Vol 35 (1) ◽  
pp. 67-88 ◽  
Author(s):  
Mduduzi Nsibande ◽  
Douw Gert Brand Boshoff
Keyword(s):  
South Africa ◽  
Decision Making ◽  
South African ◽  
Institutional Investors ◽  
Investment Decision ◽  
Expected Returns ◽  
Property Market ◽  
Content Type ◽  
Investment Decision Making ◽  
Tenant Mix

Purpose The South African listed property market has changed its legal basis from property loan stock companies and property unit trusts to adopt the more familiar international structure, real estate investment trusts. The main distinction is how shareholding is structured and investment returns are paid out to shareholders, which results in a different tax treatment. It is hoped that this change would attract more foreign investment, but it is questionable if this is sufficient to convince global investors who, amidst a seeming worsening of the stability in the political and economic environment, would probably need more insight into aspects such as investment decision making within these South African organisations. The paper aims to discuss these issues. Design/methodology/approach Using a balanced scorecard (BSC) framework, this study investigates the relevance of investment decision-making frameworks in South Africa. A survey using a sample of institutional investors that are included in the South African Property Market Index was conducted. Findings The study found similarities in decision-making priorities of South African institutional investors to those of previous studies. With the focus on retail property, tenant mix and secondary to that, quality of the centre management team is found to be important for forecasting expected returns in a retail investment decision environment. Diversification strategies were found to have similar results to previous studies, leaning more towards geographic location than economic location. Further, the study suggested the use of a BSC framework, linking the financial information and different financial ratios to nonfinancial aspects that need specific consideration in a retail investment environment. Research limitations/implications Retail property is considered to be of particular concern due to the business enterprise value that could be created if superior management techniques are applied. The investment decision stage concerned with forecasting expected returns relies on financial and quantitative models such as those derived from Modern Portfolio Theory. In a shopping mall environment, however, future performance is driven by nonfinancial factors, for example, tenant mix and superior customer experience. Therefore, forecasting expected returns in a retail environment requires a nuanced approach relative to other commercial property sectors. Originality/value The paper is considered to be original in its analysis of the retail real estate market in South Africa. This offers new insight into retail properties specifically, but also how investors in South Africa react to decision-making practices. This adds value in the internationalisation of the property market and the consistency and transparent practices applied globally.

Accessibility of women to health information in Tanzania

2017 ◽  
Vol 66 (6/7) ◽  
pp. 415-429 ◽  
Author(s):  
Ronald Benard ◽  
Monica Samwel Chipungahelo
Keyword(s):  
Health Information ◽  
Health Care Providers ◽  
Information Needs ◽  
Survey Method ◽  
Care Providers ◽  
Sources Of Information ◽  
Cross Sectional ◽  
Content Type ◽  
The Government ◽  
Types Of Information

Purpose The aim of this study is to examine accessibility of health information to women in Tanzania with reference to the Morogoro region. The specific objectives of the study were: first, to identify the health information needs of women; second, to determine the accessibility of the needed health information to women in the study area; and third, to determine the preferred sources of information used by women in accessing health information in the study area. Design/methodology/approach A descriptive survey method – cross-sectional design – was used. Semi-structured questionnaires with both open- and close-ended questions were used to collect data from four wards of Morogoro Municipal Council, Tanzania. Key informant interviews were conducted with 12 women from four wards, 3 women were selected from each ward. Findings The findings also indicated that there was a significant relationship between wards and accessibility to certain types of information which were concerning hypertension, family planning, malaria and typhoid. Although information on diabetes and hypertension had lower percentages of accessibility in all four wards, the study findings revealed that medical doctors, pharmacy shops and family were the main sources of information used by women to access health information. Radio and television were rated as preferred sources of information required by women, whereas internet, local herb hawkers and mobile phones were rated as non-preferable. It is therefore recommended that the government through health-care providers and medical librarians should be proactive in creating awareness and disseminate health information on non-communicable diseases such as hypertension and diabetes to women. Practical implications This paper provides practical recommendations on how to improve accessibility of health information in the communities. Social implications The paper has an implication of improving accessibility of health information to women in the communities. Originality/value The paper provides appropriate knowledge that is needed in improving access to health information in Tanzanian communities and in other developing countries communities.

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