Disclosure of Non-Financial Information Voluntarily in the Annual Report of Financial Institutions: A Study on Listed Banks of Bangladesh

2013 ◽  
Vol 8 (2) ◽  
Author(s):  
Hussain Muhammad Arif ◽  
Mehedi Hasan Tuhin
Keyword(s):  
Financial Institutions ◽  
Voluntary Disclosure ◽  
Annual Report ◽  
Financial Information ◽  
Annual Reports ◽  
Average Score ◽  
Satisfactory Level ◽  
Specific Factors

The aim of this paper is to measure the extent of disclosure of voluntary non-financial information in the annual reports of listed banks in Bangladesh. An effort has also been made to identify the company specific factors responsible for disclosing voluntary non-financial information in addition to mandatory information. An unweighted disclosure index with 48 items has been used to measure the extent of disclosure. The study reveals that most of the listed banks of Bangladesh are making satisfactory level of voluntary disclosure with average score of about 62%. The findings also show that out of three company specific attributes, age and size are significant in explaining the level of voluntary disclosure.

scholarly journals Individual Investors Perceptions On The Summary Annual Report: A Survey Approach

2011 ◽  
Vol 10 (3) ◽  
pp. 60 ◽  
Author(s):  
Marc J. Epstein ◽  
Moses L. Pava
Keyword(s):  
Annual Report ◽  
The United States ◽  
Financial Information ◽  
Annual Reports ◽  
Individual Investors ◽  
Corporate Communications ◽  
Survey Results ◽  
Sizeable Minority ◽  
Survey Approach

<span>As the role of institutional investors is being transformed, there is a tendency to overlook the needs of individual investors. Nevertheless, there are well over 30 million individual investors in the United States, and these numbers are growing rapidly. One area of particular concern is corporate communications. All investors, professional as well as non-professionals, should have access to financial information. However, annual reports, as currently issued, are often difficult to read and understand, and therefore lack communication value. A possible solution is the summary annual report (SAR), which has been designed to condense and simplify the traditional GAAP statements. To date, most U.S. Corporations have not adopted the new format, in part, out of a fear of negative shareholder reaction. Our survey results clearly indicate that annual reports, as they are currently issued, are difficult to understand for a sizeable minority of investors. One out of 4 investors reported that annual reports were so difficult to understand that they were of no substantial help in making investment decisions. Further, results show that a majority of respondents demand inclusion of further explanation of the financial information in less technical terms, and over a third would like to see SARs to the exclusion of full GAAP reports. Through the SAR, management has an opportunity to significantly improve corporate communications. WE strongly recommend that management continues to experiment with its format, design, and content.</span>

scholarly journals Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)

2018 ◽  
Vol 15 (2) ◽  
pp. 21-38
Author(s):  
Rosnia Masruki ◽  
Khaled Hussainey ◽  
Doaa Aly
Keyword(s):  
Voluntary Disclosure ◽  
Regression Models ◽  
Annual Report ◽  
Control Variable ◽  
Financial Statements ◽  
Annual Reports ◽  
Policy Makers ◽  
Financial Report ◽  
Financial Characteristics

This paper aims to identify whether Malaysian State Islamic Religious Councils (SIRC) financial characteristics have a significant impact on the accountability of Malaysian State Islamic Religious Councils (SIRC). A content analysis approach was used to examine the extent and quality of disclosure in the annual reports of SIRC, indicating accountability of SIRCs. This paper used the self-developed disclosure index that applies specifically for SIRC. Multiple regression was used to examine the financial determinants of the extent and quality of disclosure. The result of the regression models revealed that the extent and quality of SIRC disclosure is influenced by organisational characteristic, namely size. This study suggests that disclosure in the annual report, in particular the non-financial performance, increases with the amount of zakat collection, thereby demonstrating SIRC’s responsibility. Next, the control variable of accessibility is found to be significantly related to financial statements. Obliged to produce financial statements, SIRC are more likely to disclose more information in the financial statements. This research finding has important implications for regulators, policy makers and top officials in SIRC, by monitoring the quality of disclosure, supporting the notion of public accountability, which appreciates the public’s right to get inform about SIRC. Despite the voluntary disclosure of a non-financial report, SIRC should consider producing a comprehensive annual report for the discharge of their accountability and thus, encourage more funding. They should be more transparent to enhance accessibility, concerning the extent and quality of the disclosure.

Non-financial KPIs in annual report narratives: Australian practice

2019 ◽  
Vol 32 (1) ◽  
pp. 7-19 ◽  
Author(s):  
Lyndie Bayne ◽  
Marvin Wee
Keyword(s):  
Voluntary Disclosure ◽  
Annual Report ◽  
Performance Indicator ◽  
Preliminary Evidence ◽  
Annual Reports ◽  
Accounting Standard ◽  
Content Type ◽  
Financial Measures ◽  
Reporting Practices ◽  
Common Category

Purpose The purpose of this paper is to provide preliminary evidence on current practices in non-financial key performance indicator (KPI) reporting in annual reports by listed Australian companies to inform Australian legislators and accounting standard setters contemplating regulations and guidance for non-financial performance disclosure, including input into the revision of IFRS Practice Statement 1: Management Commentary (2010). Design/methodology/approach Non-financial KPIs were hand-collected from the annual report narratives of 40 listed Australian companies from five sectors in 2016. Trends in the type, quantity, comparability and range of non-financial KPIs were analysed, and the association between company characteristics and non-financial disclosure was explored. Findings In total, 78 per cent of the sampled companies disclose non-financial KPIs in their annual reports, reporting 11 non-financial KPIs per company on average. The most common category is Employee, followed by Environment, accounting for 68 per cent of non-financial KPIs. Provision of comparators is low, with only 28 per cent of non-financial KPIs disclosed with prior year results and 24 per cent disclosed with a target. Companies disclose across a median of two out of seven categories. Company size is shown to be associated with non-financial measures. Originality/value The study contributes initial detailed empirical Australian evidence of non-financial KPI reporting practices. A framework is established for assessing non-financial KPI disclosure, adding to voluntary disclosure studies. A data collection method is developed for collecting KPIs from annual report narratives, contributing to the methodology used in voluntary reporting content analysis.

scholarly journals Corporate Governance Characteristics of Private SMEs’ Annual Report Submission Violations

2020 ◽  
Vol 13 (10) ◽  
pp. 230
Author(s):  
Oliver Lukason ◽  
María-del-Mar Camacho-Miñano
Keyword(s):  
Corporate Governance ◽  
Annual Report ◽  
Financial Information ◽  
Annual Reports ◽  
Board Members ◽  
Firm Age ◽  
Unethical Behaviour ◽  
Independent Variables ◽  
Submission Deadline ◽  
Business Ties

Managers are, by law, responsible for the timely disclosure of financial information through annual reports, but despite that, it is usual that they are engaged in the unethical behaviour of not meeting the submission deadlines set in law. This paper sheds light on the afore-given issue by aiming to find out how corporate governance characteristics are associated with annual report deadline violations in private micro-, small- and medium-sized enterprises (SMEs). We use the population of SMEs from Estonia, in total 77,212 unique firms, in logistic regression analysis with the delay of presenting an annual report over the legal deadline as the dependent and relevant corporate governance characteristics as the independent variables. Our results indicate that the presence of woman on the board, higher manager’s age, longer tenure and a larger proportion of stock owned by board members lead to less likely violation of the annual report submission deadline, but in turn, the presence of more business ties and existence of a majority owner behave in the opposite way. The likelihood of violation does not depend on board size. We also check the robustness of the obtained results with respect to the severity of delay, firm age and size, which all indicate a varying importance of the explanatory corporate governance characteristics.

Implications of Shariah on the voluntary disclosure of Indonesian listed companies

2014 ◽  
Vol 12 (1) ◽  
pp. 76-98 ◽  
Author(s):  
Peni Nugraheni ◽  
Hairul Azlan Anuar
Keyword(s):  
Voluntary Disclosure ◽  
Annual Report ◽  
Quality Measurement ◽  
Annual Reports ◽  
Company Size ◽  
Religious Activities ◽  
Content Type ◽  
Significant Difference ◽  
The Relationship

Purpose – The purpose of this paper is to investigate and compare the extent of voluntary disclosure in the annual reports of Shariah- and non–Shariah-compliant companies in Indonesia. Further, the study examines the relationship between voluntary disclosure and company characteristics (i.e. size of company, profitability, type of auditor, type of industry and ownership structure). Design/methodology/approach – Voluntary disclosure was measured using a disclosure index with 30 items and content analysis of the 2009 annual report. Statistical analysis included descriptive, Mann–Whitney U and regression. Findings – The result revealed that there is a statistically significant difference in the quantity and quality of voluntary disclosure value of Shariah- and non–Shariah-compliant companies. For regression results, the company size significantly influences the quantity of voluntary disclosure while the quality of voluntary disclosure is affected by company size and type of industry. Research limitations/implications – Although this study only analyses voluntary disclosure in the annual report for a single year (2009), it is hoped to provide a description of the voluntary disclosure in Shariah- and non–Shariah-compliant companies. Practical implications – The findings might be used by regulators to set regulations that encourage the quantity and quality of disclosure practice of Shariah-compliant companies to expand the scope of disclosure related to religious activities. Originality/value – This study measures voluntary disclosure using the disclosure index based on Indonesian regulations and the quantity and quality measurement of Shariah-compliant companies, which may differ from previous Indonesian studies.

scholarly journals Analisis Pengungkapan Sukarela pada Bank Umum Syariah di Indonesia

2019 ◽  
Vol 3 (1) ◽  
pp. 5-19
Author(s):  
Muhammad Haidir Ali ◽  
Ahmad Tarmidzi Lubis
Keyword(s):  
Content Analysis ◽  
Voluntary Disclosure ◽  
Annual Report ◽  
Descriptive Study ◽  
Annual Reports ◽  
Islamic Banks ◽  
Factors Affecting

This study is a descriptive study to assess voluntary disclosure in annual reportsIslamic Banks (iB) with that should be disclosed. Annual reports used in this study isan annual report iB in Indonesia in 2011, 2012, and 2013. This research is relativelynew because no one has done research on voluntary disclosure in Islamic Banks (iB).Therefore, in order to study to obtain maximum results, the coding instructions forvoluntary disclosure must be in accordance with the study conducted by Rr. PuruwitaWardani (2012) entitled "Factors Affecting Voluntary Disclosure area. Analysis toolsare used is the content analysis by collecting words that expressed the count. Theresults showed that during the three-year study period, 2011, 2012, and 2013 therewas an increase in the provision of good disclosure of the number of items disclosedor revealed iB number. But overall tenth iB already provide adequate voluntarydisclosure to reveal the items contained in the variable voluntary disclosure eventhough the iB newly established in 2010.

scholarly journals STUDY OF GOOD CORPORATE GOVERNANCE IMPLEMENTATION IN LISTED STATE-OWNED ENTERPRISES THROUGH A CONTENT ANALYSIS METHOD OF ANNUAL REPORTS

2010 ◽  
Vol 3 (1) ◽  
pp. 35-46
Author(s):  
Sally Marcelina Djauhari ◽  
Raymondus Parulian Sihotang
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Data Collection ◽  
Annual Report ◽  
Annual Reports ◽  
Average Score ◽  
Analysis Method ◽  
Good Corporate Governance ◽  
Content Analysis Method ◽  
Monitoring Performance

Good Corporate Governance (GCG) is a concept of directing and controlling business corporations. This concept specifies the distribution of rights and obligations between the company’s stakeholders and the procedures for taking decisions on corporate affairs. It provides a mechanism through which the company’s objectives are set, and for attaining those objectives and monitoring performance. The main objective of this study is to explore how far the GCG principles have been implemented in listed State-Owned Enterprises (SOE). In addition, the writer compares the GCG implementation among the participant companies as well as across the industries, in which the companies are classified. The method used in the data collection is observation through the company’s annual report (content analysis). The writer uses GCG Evaluation Manual of Badan Pengawasan Keuangan dan Pembangunan (BPKP) released and endorsed in 2004 by the Ministry of SOE, as the scoring system. The results generated from this study are the company’s scores in implementing the GCG principles. In addition, the writer generates ranking among the participant companies, within the same industry and across the industries. The best company with the highest score in implementing the GCG principles among the participant companies is Aneka Tambang. In addition, the top companies with the highest scores within each industry are Bank BNI (Finance), Indofarma (Consumption Goods), Telkom (Infrastructure, Utility & Transportation), and Aneka Tambang (Mining). Moreover, the best industry with the highest average score of the players is Property & Real Estate.

scholarly journals Evaluation of information disclosure in annual reports of extractive industry companies

2021 ◽  
pp. 172-176
Author(s):  
E.A Fedorova ◽  
Yu.I Grishchenko ◽  
A.V Grishchenko ◽  
P.A Drogovoz
Keyword(s):  
Information Disclosure ◽  
Annual Report ◽  
Financial Information ◽  
Annual Reports ◽  
Mandatory Disclosure ◽  
Extractive Industry ◽  
The Public ◽  
Mining Companies ◽  
The Russian Federation ◽  
Key Terms

Purpose. To assess how public annual reports of Russian extractive industry issuers comply with the requirements for disclosure of information. To examine how the introduction of Corporate Governance Code affects the level of information disclosure in extractive industries. Methodology. The paper presents the dictionary compiled by the authors using text analysis. The dictionary contains 186 terms which are to be disclosed in compliance with the requirements of Russian law. To evaluate the level of information disclosure in annual reports of extractive industry issuers, the authors calculate mandatory disclosure index. Findings. In this work, based on the standards for disclosing non-financial information in public annual reports of issuers, the following results were obtained: 1. On the basis of regulatory enactments, key terms are identified that are subject to mandatory disclosure in the annual report of the issuer. 2. A methodology is developed for assessing the level of disclosure of non-financial information on the selected blocks based on textual analysis. 3. Assessment of information disclosure in the public annual reports of mining companies in accordance with the legislation of the Russian Federation was carried out. The rating of information disclosure has been built. Originality. The authors are the first to assess mandatory disclosure in 120 public annual reports of 12 largest extractive industry companies whose shares were traded in Moscow Exchange from 2009 to 2018. On the basis of regulatory enactments, key terms are identified that are subject to mandatory disclosure in the annual report of the issuer. A methodology is developed for assessing the level of disclosure of non-financial information on the selected blocks based on textual analysis. The assessment of information disclosure in the public annual reports of mining companies in accordance with the legislation of the Russian Federation was carried out. Practical value. The created library in Package R enables to evaluate disclosure of information in public annual reports for any period.

Voluntary disclosure and complexity of reporting in Egypt: the roles of profitability and earnings management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mai Mohammed Alm El-Din ◽  
Atef Mohammed El-Awam ◽  
Farid Moharram Ibrahim ◽  
Ahmed Hassanein
Keyword(s):  
Earnings Management ◽  
Voluntary Disclosure ◽  
Management Practices ◽  
Annual Report ◽  
Management Practice ◽  
Poor Performance ◽  
Annual Reports ◽  
Content Type ◽  
Nonfinancial Firms ◽  
The Relationship

PurposeThe study explores the relationship between information overloading and the complexity of reporting. In particular, it investigates whether voluntary information in a firm annual report is associated with its readability. Likewise, it examines how a firm's profitability and earnings management practices impact the nexus of voluntary disclosure and readability.Design/methodology/approachIt uses the annual reports of the Egyptian nonfinancial firms listed in the EGX 100 index from 2010 to 2018. The readability of the annual report is measured automatically using the LIX index, and a predeveloped voluntary disclosure index is used to measure the level of voluntary disclosure in the annual reports.FindingsThe results reveal that the readability of annual reports is a negative function of voluntary disclosure, suggesting that Egyptian firms with more voluntary disclosure are likely to have more complex (i.e. less readable) annual reports. Likewise, less profitable firms and firms with earning management practices increase voluntary information in their annual reports, resulting in an adverse impact on their reporting readability.Research limitations/implicationsIt focuses only on the annual reports of Egyptian firms and considers a firm’s overall voluntary information rather than a particular area of voluntary disclosure. It introduces a code to measure the readability of Arabic-written texts, which can be applied to different areas of disclosure.Practical implicationsPolicymakers in Egypt are encouraged to develop enforceable regulations to control voluntary disclosure in annual reports. Egyptian investors should view the practice of higher voluntary disclosure skeptically as its aim may be to divert attention from a firm's poor performance and earnings management practice.Originality/valueThe study is the first evidence from Egypt on the effect of information overloading, proxied by voluntary disclosure, on the readability of reporting. Likewise, it contributes to methodological development in measuring the readability of Arabic-written annual reports.

scholarly journals A Comparative Analysis of Board Disclosures of Selected Pharmaceuticals Companies of Bangladesh and the UK

2019 ◽  
Vol 3 (1) ◽  
pp. 28
Author(s):  
Rehenuma Rahman ◽  
Md. Anwarul Kabir
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Annual Report ◽  
Annual Reports ◽  
Pharmaceutical Companies ◽  
Board Independence ◽  
Board Committees ◽  
Corporate Governance Code ◽  
The Uk ◽  
Limited Scope

This research aims to compare the board disclosures in the annual reports of selected pharmaceutical companies in the UK and Bangladesh. The sample consists of 10 purposively selected pharmaceutical companies from both countries. A secondary qualitative research has been held on 10 board issues: board size, board composition, director’s qualification, board training, board independence, board meetings, independent directors, board committees, director’s remuneration and director’s report. The findings indicate that the Bangladesh Security Exchange Commission’s (BSEC) Corporate Governance Notification, 2012 has limited scope compared with the UK Corporate Governance Code, 2014. Selected UK companies are following the UK Corporate Governance Code, 2014 stringently and disclosing all necessary board disclosures in detail manner as per the requirement of the code, whereas none of the sampled Bangladeshi companies are publishing 100% mandatory board disclosures in detailed manner however they still attach a corporate governance compliance certificate in their annual report. The existing corporate governance notification should be improved which will accelerate the extent of mandatory disclosures. The multitude of voluntary disclosure is quite low in Bangladeshi companies compared with UK companies.

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