scholarly journals Integrated reporting and analyst behaviour in diverse institutional settings

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francesca Rossignoli ◽  
Riccardo Stacchezzini ◽  
Alessandro Lai
Keyword(s):  
Voluntary Disclosure ◽  
Environmental Governance ◽  
Forecast Accuracy ◽  
Institutional Setting ◽  
Analyst Forecast ◽  
Integrated Reporting ◽  
Content Type ◽  
Institutional Settings ◽  
Moderating Role

Purpose Given the limited studies that have started to focus on contexts where integrated reporting (IR) is voluntarily adopted, this paper aims to explore the moderating role of institutional characteristics on the association between voluntary report release and analyst forecast accuracy. Design/methodology/approach This study uses a quantitative empirical research method grounded on voluntary disclosure theory to provide empirical evidence on an international sample of companies choosing to release integrated reports. Preliminarily, a cluster analysis is used to group countries according to institutional patterns. Multivariate analyses detect the associations between report release choice and analysts’ forecast accuracy across clusters. Multiple econometric approaches are used to address the endogeneity concerns. Findings IR release is not informative for the market unless considering systematic variations across different institutional settings. Analysts’ forecast is more accurate for IR adopters located in strong institutional enforcement settings than for all the other companies. In the strong institutional setting that is also characterized by a pluralistic society, IR release benefits for the market are conditioned by the fact that the choice to release IR depends on environmental, governance and social disclosure-based managers remuneration and disclosure requirements. In weak institutional settings, IR release is not beneficial for the forecast accuracy. Research limitations/implications Academics and practitioners can gain understanding of the usefulness of voluntary IR across different institutional settings. Originality/value The study advances the understanding of the IR’s informativeness, overcoming the common dichotomous distinctions between strong and weak institutional settings.

Financial analysts' reaction to voluntary integrated reporting: cross-sectional variation in institutional enforcement contexts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francesca Rossignoli ◽  
Riccardo Stacchezzini ◽  
Alessandro Lai
Keyword(s):  
Institutional Setting ◽  
Institutional Characteristics ◽  
Unique Contribution ◽  
Integrated Reporting ◽  
Content Type ◽  
Institutional Settings ◽  
Country Level ◽  
Eu Directive ◽  
Sustainability Disclosure ◽  
Moderating Role

PurposeEuropean countries are likely to increasingly adopt integrated reporting (IR) voluntarily, after the 2014/95/EU Directive is revised and other initiatives are implemented. Therefore, the present study provides insights on the relevance of IR in voluntary contexts by exploring analysts' reactions to the release of integrated reports in diverse institutional settings.Design/methodology/approachDrawing on voluntary disclosure theory, a quantitative empirical research method is used to explore the moderating role of country-level institutional characteristics on the associations between voluntary IR release and analyst forecast accuracy and dispersion.FindingsIR informativeness is not uniform in the voluntary context and institutional settings play a moderating role. IR release is associated with increased consensus among analyst forecasts. However, in countries with weak institutional enforcement, a reverse association is detected, indicating that analysts rely largely on IR where the institutional setting strongly protects investors. Although a strong institutional setting boosts the IR release usefulness in terms of accuracy, it creates noise in analyst consensus.Research limitations/implicationsAcademics can appreciate the usefulness of voluntary IR across the institutional enforcement contexts.Practical implicationsManagers can use these findings to understand opportunities offered by IR voluntary release. The study recommends that policymakers, standard setters and regulators strengthen the institutional enforcement of sustainability disclosure.Originality/valueThis study is a unique contribution to recent calls for research on the effects of nonfinancial disclosure regulation and on IR “impacts”. It shows on the international scale that IR usefulness for analysts is moderated by institutional patterns, not country-level institutional characteristics.

The effect of integrated reporting quality on market liquidity and analyst forecast error

2020 ◽  
Vol 33 (4/5) ◽  
pp. 635-650
Author(s):  
Felipe Zúñiga ◽  
Roxana Pincheira ◽  
Julie Walker ◽  
Michael Turner
Keyword(s):  
South Africa ◽  
South African ◽  
Forecast Error ◽  
Forecast Accuracy ◽  
Market Liquidity ◽  
Analyst Forecast ◽  
Earnings Forecast ◽  
Integrated Reporting ◽  
Content Type ◽  
Practical Implications

Purpose The purpose of this study is to examine the effect of integrated reporting (IR) quality on both market liquidity and analyst forecast accuracy in South Africa as the only country in the world having IR as a listing requirement. This study uses the Sustainability Disclosure Transparency Index (SDTI) as a proxy for IR disclosure quality. The analysis of this study is based on the period after the publication of the international framework and its adoption by the International Reporting Committee of South Africa in 2014. Design/methodology/approach The companies sampled in this study are those listed on the Johannesburg Stock Exchange (JSE) from 2013 to 2015. The major factor driving the selection of this particular period was to not only analyse the existing IR practice but also investigate IR two years after King III came into force. The SDTI developed by Integrated Reporting and Assurance Services (IRAS) was used to analyse IR quality. Ordinary least squares regressions were analysed. The models include year and industry fixed effects. The variance inflation factor and its tolerance were used to test the severity of multi-collinearity. Also, alternative measures of IR quality and alternate model specifications were analysed to check the robustness of the results. Findings The authors find that quality of IR is associated with lower earnings forecast error. The evidence indicates that earnings forecast error is lower for firms in the materials sector of the South African economy. Consistent with prior research, the results also suggest that forecast errors are higher for companies with volatile returns and lower for larger firms. Additional analysis indicates that IR quality is positively associated with market liquidity. Overall, these findings support the virtues of IR, thus providing useful information to capital markets. Research limitations/implications The results obtained cannot be generalised to other jurisdictions. While the South African economy is the best setting to investigate IRs, new economies are also working actively on IR disclosures, so future research is likely to extend the literature in this field. Secondly, the availability of data constrained the sample size; however, this only mediates against finding any statistically significant result. While the IRAS database offers information about 324 JSE companies, Datastream covers only the 170 largest South African firms. In spite of the sample reduction, robust and consistent results are found in the market liquidity and analyst forecast accuracy proxies. Practical implications The sample period of this study (2013-2015) allows to understand disclosure behaviour after the international IR framework was published and endorsed by the JSE. The release of the IIRF gave clear guidance to firms regarding the nature and purpose of IR. Overall, the results obtained in this paper are consistent with IR expectations, thus providing useful information for investors and financial analysts. It is expected that the results might have practical implications for other nations about the cost and benefits of implementing integrated management reporting. Originality/value This paper contributes incrementally to the existing debate about whether disclosure information through IR has real benefits or is a passing fad. It examines the economic consequences of IR in a mandatory setting using an in-house ranking system, adapted to South Africa, designed by IRAS to determine IR quality. IRAS provides an SDTI that assesses the accuracy, consistency, completeness and reliability of quantitative data for 84 indicators based on IR and global reporting initiative aspects and subdivided into seven categories.

Strategic information disclosure, integrated reporting and the role of intellectual capital

2019 ◽  
Vol 20 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Renato Camodeca ◽  
Alex Almici ◽  
Umberto Sagliaschi
Keyword(s):  
Intellectual Capital ◽  
Voluntary Disclosure ◽  
Value Relevance ◽  
Empirical Test ◽  
Relevant Information ◽  
Specific Reference ◽  
Integrated Reporting ◽  
Data Set ◽  
Content Type

PurposeThe purpose of this paper is to use a theoretical and empirical model to investigate the adoption of the integrated reporting (IR) framework as a strategic choice to signal intellectual capital (IC) to equity investors, with specific reference to the pharmaceutical industry.Design/methodology/approachThe choice of drafting an integrated report is modelled as a means for managers to strategically disclose price-relevant information related to IC. The voluntary disclosure model developed by Verrecchia (1983) is used, also introducing the role of financial analysts to derive a directly reproducible empirical equation.FindingsTheoretically, as IR requires managers to exert an effort in reporting activity, this work shows that in equilibrium, only firms with sufficient IC have decided to adopt IR, resulting in rational investors’ willingness to pay more only for the forecasted earnings of integrated reporters. This theory is tested in the pharmaceutical sector, where the modelling choice is probably more valid, with mixed results.Research limitations/implicationsWhen compliant with the International Integrated Reporting Council’s (IIRC) standards, IR provides the means to disclose IC in a perfectly verifiable way. Furthermore, since the IIRC has only recently been established, the conclusions have only been tested on a limited data set.Originality/valueThis work connects the value relevance of IR to IC by adopting an equilibrium approach, which, in turn, provides specific indications of how to build a consistent empirical test of the theory.

Financial access and economic development: the moderating role of financial consumer protection

2019 ◽  
Vol 15 (4) ◽  
pp. 406-424 ◽  
Author(s):  
Maryam Kriese ◽  
Joshua Yindenaba Abor ◽  
Elikplimi Agbloyor
Keyword(s):  
Economic Development ◽  
World Bank ◽  
Financial Literacy ◽  
Compliance Monitoring ◽  
Financial Access ◽  
Policy Makers ◽  
Content Type ◽  
The World Bank ◽  
Moderating Role

Purpose The purpose of this paper is to examine the moderating role of financial consumer protection (FCP) in the access–development nexus. Design/methodology/approach The study is based on cross-country data on 102 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013). The White heteroscedasticity adjusted regressions and Two-stage least squares regressions (2SLS) are used for the estimation. Findings Interactions between FCP regulations that foster fair treatment, disclosure, dispute resolution and recourse and financial access have positive net effects on economic development. However, there is no sufficient evidence to suggest that interactions between financial access and enforcement and compliance monitoring regulations have a significant effect on economic development. Practical implications First, policy makers should continue with efforts aimed at instituting FCP regimes as part of strategies aimed at broadening access to financial services for enhanced economic development. Second, instituting FCP regimes per se may not be enough. Policy makers need to consider possible intervening factors such as the provision of adequate resources and supervisory authority, for compliance monitoring and enforcement to achieve the expected positive effect on economic development. Originality/value This study extends evidence in the law–finance–growth literature by providing empirical evidence on the effect of legal institution specific to the protection of retail financial consumers on the access–development nexus using a nouvel data set, the World Bank Global survey on FCP and Financial Literacy (2013).

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

Policy and institutions facilitating entrepreneurial spin-offs: USA, Asia and Europe

2014 ◽  
Vol 3 (2) ◽  
pp. 186-196 ◽  
Author(s):  
Rosa Caiazza ◽  
David Audretsch ◽  
Tiziana Volpe ◽  
Julie Debra Singer
Keyword(s):  
Institutional Setting ◽  
Policy Debate ◽  
Content Type ◽  
Factors Affecting ◽  
Institutional Settings ◽  
The Usa ◽  
New Perspective ◽  
National Analysis ◽  
The Impact ◽  
Cross National

Purpose – Existing work documents the role that institutional setting plays in the process of spin-off creation. However, despite decades of studies, scholars have not clearly explained why some regions are more involved in spin-off activity than others. Drawing from institutional theory, the purpose of this paper is to compare different institutional settings identifying factors affecting the general environment capability to support spin-off activity of a specific region. Design/methodology/approach – The authors utilize a cross-national analysis of American, Asian, and European areas identifying factors affecting their different rate of spin-off activity. This study contributes to the policy debate concerning entrepreneurship and how best to spur spin-off activities. Findings – In this paper, the authors identify the general and specific factors that explain the cross-national diversity in spin-off creation. The authors then perform an analysis of the impact of these factors in various regions of the USA, Asia, and Europe, providing evidence for the necessity of specific combinations of these factors. Originality/value – The paper offers a new perspective on the causes of spin-offs through a cross-national analysis of many areas around the world.

Effects of cloud computing assimilation on supply chain financing risks of SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou
Keyword(s):  
Cloud Computing ◽  
Supply Chain ◽  
Small And Medium Enterprises ◽  
Supply Chain Integration ◽  
Content Type ◽  
Supply Chain Financing ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

To share or not to share? A moderated mediation model of the relationship between perceived overqualification and knowledge sharing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lijing Zhao ◽  
Shuming Zhao ◽  
Hao Zeng ◽  
Jingyi Bai
Keyword(s):  
Knowledge Sharing ◽  
Field Study ◽  
Identity Theory ◽  
Moderated Mediation ◽  
Experiment Study ◽  
Content Type ◽  
Mediating Role ◽  
Perceived Overqualification ◽  
Moderating Role

PurposeDrawing on identity theory and the symbolic interactionism perspective of identity theory, this study aims to construct a moderated mediation framework to test the effects of perceived overqualification (POQ) on knowledge sharing (KS) through professional identity threat (PIT) and the moderating role of coworkers' help-seeking behavior (CHSB).Design/methodology/approachThis paper uses a quantitative multistudy research design with a combination of a scenario experiment (Study 1) and a two-wave field study among 220 supervisor-subordinate dyads at a power company in China. Using analysis of variance, confirmatory factor analysis (CFA) and bootstrapping method, the authors validated the research hypothesis.FindingsIn the scenario experiment study (study 1), the authors find that POQ is positively related to PIT and that CHSB negatively moderates the positive impact of POQ on PIT. The field study (study 2) replicated the above findings and found that PIT mediates the negative effect of POQ on KS. In addition, CHSB negatively moderates the mediating role of PIT between POQ and KS.Originality/valueFirst, the current study extended the nomological network of POQ research by examining its influence on employees' KS. Second, this study empirically investigated the mediating role of PIT, which provided a new explanatory mechanism for the influence of POQ. Finally, this study demonstrates the moderating role of CHSB—a situational factor that has been ignored in previous studies.

A dynamic process of different helping behavior: from the extended self-theory perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xi Ouyang ◽  
Kong Zhou ◽  
Yuan-Fang Zhan ◽  
Wen-Jun Yin
Keyword(s):  
Dynamic Process ◽  
Help Seeking ◽  
Task Difficulty ◽  
Helping Behavior ◽  
Mediation Effect ◽  
Extended Self ◽  
Content Type ◽  
Helping Behaviors ◽  
Moderating Role

PurposeDrawing on the extended self-theory, this study explores the dynamic process through which reactive helping could influence proactive helping through self-investment and investigate the moderating role of task difficulty in affecting this process.Design/methodology/approachThis study, with a sample of 582 diary surveys from 66 employees, used experience sampling techniques to analyze the proposed hypotheses.FindingsThe results revealed that self-investment could mediate the positive relationship between reactive helping and proactive helping. Additionally, task difficulty acts as an essential role in facilitating the process raised by reactive helping. Further examination revealed that the moderated mediation effect in this model was also significant.Practical implicationsManagers should encourage help-seeking and positive responses to requests, especially in groups with difficult tasks, which could build helpers’ extended self at work and increase their proactive helping behaviors at the following episode.Originality/valueAs verifying the dynamic trajectory of reactive helping, this study enriches our understanding of whether and how helping behaviors are likely to grow over time. Besides, it complements current pieces of literature by exploring the potential positive implication of reactive helping with a helper-centric perspective.

Birth mode of family firms, family entering time and R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zulfiqar ◽  
Shihua Chen ◽  
Muhammad Usman Yousaf
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Family Firm ◽  
Research Database ◽  
Content Type ◽  
Firm Birth ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

PurposeOn the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.Design/methodology/approachThe authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.FindingsIndirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.Originality/valueTo the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

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