scholarly journals The quality of disclosure in the annual reports: Evidence from an emerging market

2011 ◽  
Vol 8 (3) ◽  
pp. 209-213
Author(s):  
Muhammad Nurul Houqe ◽  
Tahmin Fatema Islam
Keyword(s):  
Stock Exchange ◽  
Emerging Market ◽  
Listed Companies ◽  
Annual Reports ◽  
Reporting Practices ◽  
Disclosure Practice

This paper aims at determining the quality of disclosure in the annual reports of the listed companies in the Dhaka Stock Exchange Ltd. by applying the Singhvi and Desai (1971) index over the twenty seven selected companies of the "Food and Allied" and "Engineering" sector. The twenty-seven companies use the index to describe the trend of reporting practices for the years 2007 and 2008. We find that most of the companies are very much consistent in their disclosure practice. But a very few companies tried to enhance the quality of disclosure over the years.

The Determinants of Financial Ratio Disclosures and Quality: Evidence from an Emerging market

2015 ◽  
Vol 1 (1) ◽  
pp. 188 ◽  
Author(s):  
Ben k. Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Ratios ◽  
Annual Reports ◽  
Executive Directors ◽  
Financial Ratio

This study investigated the influence of firm-specific characteristics which include proportion of Non-Executive Directors, ownership concentration, firm size, profitability, debt equity ratio, liquidity and leverage on the extent and quality of financial ratios disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the 2012 financial statements of  the listed firms.  Descriptive analysis was performed to provide the background statistics of the variables examined.  This was followed by regression analysis which forms the main data analysis.  The results of the extent of financial ratio disclosure level, mean of 62.78%, indicate that most of the firms listed on the Ghana Stock Exchange did not overwhelmingly disclose such ratios in their annual reports.  The results of the low quality of financial ratio disclosure mean of 6.64% indicate that the disclosures failed woefully to meet the International Accounting Standards Board's qualitative characteristics of relevance, reliability, comparability and understandability.The results of the multiple regression analysis show that leverage and return on investment are associated on a statistically significant level as far as the extent of financial ratio disclosure is concerned. Board ownership concentration and proportion of (independent) non-executive directors, on the other hand were found to be statistically associated with the quality of financial ratio disclosed. There is a significant negative relationship between ownership concentration and the quality of financial ratio disclosure.  This means that under a higher level of ownership concentration less quality financial ratios are disclosed. The findings also show that there is a significant positive relationship between board composition (proportion of non-executive directors) and the quality of financial ratio disclosure.  JEL CLASSIFICATION: G3, M1, M2, M4.

scholarly journals Using of the Circularity Indicators in the Financial Communication of Listed Companies in the Construction Industry

2021 ◽  
Vol 04 (06) ◽  
Author(s):  
EZZIADI Abdelali ◽  
Keyword(s):  
Circular Economy ◽  
Stock Exchange ◽  
Listed Companies ◽  
Public Works ◽  
Annual Reports ◽  
Construction Companies ◽  
Financial Communication ◽  
Alternative Materials ◽  
Communication Practices

Purpose: The Building and Public Works sector is experiencing remarkable growth due to the increase in infrastructure needs. Because it is one of the most waste-generating sectors. This growth will explode in the coming years, especially with a linear economy model. Thus, the transition to a circular economic model is necessary and financial communication practices must be aligned with it. Under this objective, this paper seeks to explore the financial communication practices of listed companies in terms of circular economy. Design/Methodology/Approach: The annual reports of seven (7) Moroccan construction companies listed on the Casablanca Stock Exchange were analyzed and discussed in the light of theoretically approved circularity indicators. Findings: The content disseminated by the listed construction companies through their annual reports in relation to the circular economy is often limited to the description of broader actions. Some listed companies communicate numerical indicators particularly in relation to energy and water consumption, recycling and recovery of waste, substitution of natural resources by alternative materials. Practical implications: This paper is a benchmarking tool for listed and unlisted companies in the construction sector, with the aim of improving the quality of the indicators disseminated and increasing the environmental performance of companies.

A comparative study on strategy disclosure between emerging markets and developed markets

2019 ◽  
Vol 11 (1) ◽  
pp. 2-22
Author(s):  
Morungwa Lumka Phala ◽  
Yaeesh Yasseen ◽  
Nirupa Padia ◽  
Waheeda Mohamed
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Emerging Market ◽  
Listed Companies ◽  
Annual Reports ◽  
New York Stock Exchange ◽  
Content Type ◽  
Johannesburg Stock Exchange ◽  
York Stock Exchange ◽  
Market Sample

Purpose This study aims to compare the extent of voluntary strategy disclosure in the annual/integrated reports of listed companies in an emerging market with the extent of strategy disclosure in the annual/integrated reports of listed companies in a developed market. Design/methodology/approach A developed market sample that was made up of the top 50 companies on the New York Stock Exchange and the Australian Stock Exchange was compared to an emerging market sample that was made up of the top 50 companies on the Johannesburg Stock Exchange and the Bombay Stock Exchange. The comparison was conducted by scoring the amount of strategy disclosure reported in the annual/integrated reports of the companies for the years 2011, 2012 and 2013. Findings The emerging market companies had average to good strategy disclosures in their annual reports, whereas the annual reports of companies in the developed market showed low strategy disclosure. Originality/value This study expanded upon the limited research available on strategy disclosure by comparing the extent of strategy disclosures in two developmental markets (the developed and emerging market).

Environmental disclosure quality: examining the impact of the stock exchange of Malaysia’s listing requirements

2015 ◽  
Vol 11 (4) ◽  
pp. 904-922 ◽  
Author(s):  
A.H. Fatima ◽  
Norhayati Abdullah ◽  
Maliah Sulaiman
Keyword(s):  
Stock Exchange ◽  
Listed Companies ◽  
Mandatory Reporting ◽  
Annual Reports ◽  
Disclosure Quality ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Content Type ◽  
Environmentally Sensitive

Purpose – The purpose of this study is to investigate the environmental disclosure (ED) quality of public-listed companies (PLCs) in environmentally sensitive industries (ESI) in Malaysia in 2005 and 2009 (two years before and two years after the mandatory corporate social responsibility (CSR) requirement of Bursa Malaysia (BM)). BM (The Stock Exchange of Malaysia) has made CSR, including ED in annual reports mandatory since 2007. This study compares environmental reporting (ER) before and after the 2007 mandatory reporting requirement to determine if this command and control mechanism has had any effect on the quality of ED. Design/methodology/approach – The quality of ED was measured using a disclosure quality index adapted from various prior studies. The index consists of a total of 46 disclosure items grouped into 9 categories. Content analysis was utilized to extract data from the annual reports of 164 PLCs in ESI. Findings – Overall, the quality of ED improved in 2009 from that of 2005. More importantly, companies disclosed more quantitative environmental information in 2009 than in 2005. However, the average quality of ED was still low in 2009 compared to the overall potential score. Results provide some support for legitimacy as well as institutional theories. Research limitations/implications – The sample of the study consisted of listed companies in ESI only; the results cannot be generalized to other companies in non-environmentally sensitive sectors. Practical implications – Prior studies that used data before the mandatory CSR requirement by BM found ED in annual reports mainly declarative in nature, generally low on quality and with little quantifiable data. The results of the present study provide evidence of the positive impact of mandatory environmental reporting on ED quality. Originality/value – The use of a multi-theoretical perspective may offer a more meaningful explanation of ER behavior in Malaysia. The results of the study would provide the impetus for regulatory agencies in developing countries to perhaps consider legislating ER. The findings provide some evidence to support the influence of legitimacy and institutional factors behind improved ED of Malaysian PLCs. This outcome exhibits a positive influence on the government efforts in promoting sustainability. Finally, the study contributes to present a more up-to-date account of environmental commitment undertaken by Malaysian corporations through their environmental reporting, after the CSR mandatory listing requirement took effect in 2007.

Sustainability reporting and integrated reporting perspectives of Thai-listed companies

2019 ◽  
Vol 17 (4) ◽  
pp. 671-694
Author(s):  
Neungruthai Petcharat ◽  
Mahbub Zaman
Keyword(s):  
Best Practice ◽  
Emerging Market ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
International Standards ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices

Purpose This paper aims to examine the reporting on sustainability and the level of compliance with international best practice, the Global Reporting Initiative (GRI), aimed at improving communicative value to users. Design/methodology/approach Using a qualitative approach, comprising interviews with senior managers and analysis of disclosures in annual reports of Thai-listed companies, this paper contributes to the literature by providing evidence from an emerging market setting. Findings This study finds that sustainability reporting and integrated reporting perspectives of sampling companies are aiming to satisfy information needs to stakeholders and value creation to external users. Sustainability disclosures are related to some aspect of integrated reporting (IR) principles but not all. Research limitations/implications The findings of this study are based on the results from interviews and annual reports of five business sectors, and may therefore, not reflect the sustainability reporting practices and/or annual reports of other Thai-listed companies. Also, there is limited reporting on future outlook. Practical implications The findings suggest that while sustainability and IR is being adopted very widely, in many countries, there is much variation in reporting practice especially in our emerging country context adopting a “comply or explain” approach. Social implications For the Thai-listed companies, IR systems could be in their early stages and still have long way to go. The results can greatly encourage Thai-listed firms to incorporate integrated information in annual reports based on international standards thus building trust in capital markets and wider society. Originality/value The findings contribute to the literature on sustainability reporting and on the level of compliance with international best practice such as GRI by providing empirical analysis of non-financial disclosures within publicly available reporting in Thailand.

Risk disclosure in listed Greek companies: the effects of the financial crisis

2020 ◽  
Vol 33 (4/5) ◽  
pp. 615-633
Author(s):  
Fragiskos K. Gonidakis ◽  
Andreas G. Koutoupis ◽  
Anastasios D. Tsamis ◽  
Maria-Eleni K. Agoraki
Keyword(s):  
Content Analysis ◽  
Financial Crisis ◽  
Stock Exchange ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Content Type ◽  
Reporting Practices ◽  
Athens Stock Exchange ◽  
Risk Reporting

Purpose The purpose of this study is to investigate risk disclosure in listed Greek companies. The effects of the financial crisis were also considered. Design/methodology/approach This study aimed to determine the risk-reporting practices of Greek’s non-financial companies listed on the Athens Stock Exchange through a content analysis of their annual reports. Findings Risk identification and anticipation protect businesses and create shareholder value. In recent years, particularly since the economic crisis, risk has become one of the most important business issues. This study concluded that during the crisis, there was an increase in disclosure. Financial, personnel and legal risks were the most reported types of risk. This study also found liquidity to be a very important issue. Research limitations/implications Content analysis has limitations because subjectivity cannot be eliminated. This study measured only the quantity, not the quality, of risk disclosure. The quality of risk reporting will be examined in future research. Originality/value This is the first study on risk disclosure in the non-financial companies listed on the Athens Stock Exchange to conduct a content analysis of the corporate annual reports.

The Effect of Bankruptcy Possibility on Audit Delay and Timeliness (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

2019 ◽  
Vol 2 (2) ◽  
pp. 118-146
Author(s):  
Triana Meinarsih ◽  
Abdul Yusuf ◽  
Muhammad Zilal Hamzah
Keyword(s):  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Z Score ◽  
Quality Of Accounting Information ◽  
Independent Variable ◽  
A Company

Audit delay and timeliness are important factors that influence the quality of accounting information in term of relevance. This study provides empirical evidence to answer the question of how bankruptcy possibility impacts on audit delay and timeliness.  This research studies manufacturing firms listed in Indonesian Stock Exchange (IDX) in the period of 2012-2016. Data are taken from official website of IDX. This study is a quantitative research that seek to find out relationship between independent variable and dependent variable. External secondary data used are annual reports accessed from IDX website. Measurement used is Z-Score Altman model prediction, while simple linear regression is employed as technical analysis. This study finds that bankruptcy possibility which is measured by ZScore is negatively influence audit delay and timeliness. Any decrease of Z-Score shows the possibility of a company experience bankruptcy and therefore causes audit delay and timeliness.

scholarly journals Climate Change Disclosures in the Annual Reports: Evidence from Bangladesh

2017 ◽  
Vol 9 (2) ◽  
pp. 88
Author(s):  
Pappu Kumar Dey ◽  
Mohammad Nakib ◽  
Probal Dutta
Keyword(s):  
Climate Change ◽  
Water Management ◽  
Global Warming ◽  
Content Analysis ◽  
Energy Saving ◽  
Banking Industry ◽  
Stock Exchange ◽  
Listed Companies ◽  
Cement Industry ◽  
Annual Reports

This study examines the nature and extent of climate change disclosures in the corporate annual reports of the listed companies in Dhaka Stock Exchange, Bangladesh. For this purpose, annual reports related to the year 2014 of the sample 88 listed companies have been scrutinized. In regard to this study, content analysis approach has been conducted considering thirteen different disclosure issues regarding climate change. Our analysis provides the comprehension of below average climate change disclosure practices by the Bangladeshi companies, though 58 percent companies have reported at least one issue on climate change and global warming. ‘Energy saving & efficiency’ and ‘water management & pollution’ are mostly reported issues that are industry specific requirements in some case. From the viewpoint of industry, Banking industry and Cement industry have started to report some issues related to the climate change, where 4 industries out of selected 17 industries have not provided any climate change disclosure. Disseminating climate change disclosure within 10 sentences by most of the reported companies manifests the desideratum of in-depth disclosure practices.

scholarly journals INTANGIBLE ASSETS IN THE CONSOLIDATED FINANCIAL STATEMENTS OF SERBIAN AND SLOVENIAN LISTED COMPANIES: A PRELIMINARY OVERVIEW OF THE REPORTING PRACTICES

TEME ◽  
2018 ◽  
pp. 167
Author(s):  
Dejan Spasić ◽  
Anton Vorina
Keyword(s):  
Intangible Assets ◽  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
Consolidated Financial Statements ◽  
Reporting Practices ◽  
Reporting Practice ◽  
Survey Results ◽  
Business Combination ◽  
The Republic

The aim of the research is to achieve a conclusion what is the level of the reporting practice on intangible assets in two countries - in the Republic of Serbia and in the Republic of Slovenia trough a comparative descriptive statistics. Consolidated financial statements of listed companies in these two countries were used from the Belgrade Stock Exchange (Serbia) and the Ljubljana Stock Exchange (Slovenia). The reason for the use of consolidated financial statements lies in the fact that they can contain unconsolidated intangible assets already recognized in the separate financial statements of the companies included in the group, as well as internally generated intangible assets that meet the conditions for recognition in a business combination (including Goodwill). The general assessment is that the survey results indicate a very low level of reporting practice of intangible assets in Serbia and relatively satisfactory level of reporting practice in Slovenia. Individual results are given in the fourth part of the paper. 

INTELLECTUAL CAPITAL REPORTING STUDY OF IT-SECTOR CORPORATIONS IN INDIA

2011 ◽  
Vol 01 (01) ◽  
pp. 16-28
Author(s):  
Madan Lal Bhasin
Keyword(s):  
Intellectual Capital ◽  
Annual Reports ◽  
Voluntary Reporting ◽  
Reporting Practices ◽  
External Stakeholder ◽  
Long Run ◽  
Wealth Generation ◽  
Voluntary Basis

Intellectual capital (IC) can prove to be a source of competitive advantage for businesses ultimately leading to wealth generation in the long-term. At present, reporting of IC information is done by very few leading corporations purely on a “voluntary” basis. Unfortunately, the omission of IC information may adversely influence the quality of decisions made by shareholders, or lead to material misstatements. India presents an ideal case for the analysis of IC reporting by the IT corporations because the economy has been undergoing rapid transformation.This study attempts to provide an insight into the style of IC reporting done by the top IT-sector corporations in India. In order to survey the recent IC reporting practices, we conducted a study of 16 IT corporations in which “content analysis” was performed on their 2007 to 2009 annual reports. The results of this study confirmed that IC reporting in these corporations is almost negligible, and IC reporting had not received any preference from the mentors of these corporations. A major recommendation for corporations is to develop strategic and tactical initiatives that provide for ‘voluntary’ reporting of IC. These initiatives may initially be used for internal management purposes, but an external stakeholder-focus IC report should be the ultimate long-run goal.

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