The Value of Assurance on Voluntary Nonfinancial Disclosure: An Experimental Evaluation

2009 ◽  
Vol 28 (1) ◽  
pp. 137-151 ◽  
Author(s):  
Paul J. Coram ◽  
Gary S. Monroe ◽  
David R. Woodliff
Keyword(s):  
Attribution Theory ◽  
Performance Indicators ◽  
Stock Price ◽  
Annual Report ◽  
Corporate Disclosure ◽  
Financial Report ◽  
Nonfinancial Performance ◽  
Assurance Services ◽  
Context Specific

SUMMARY: This study examines whether assurance on the voluntary provision of nonfinancial performance indicators affects the stock price estimates of a group of sophisticated financial report users. We conducted an experiment where participants were provided with a case study containing excerpts from a hypothetical company's annual report. Nonfinancial performance and assurance were manipulated in a 2 (positive and negative nonfinancial performance indicators) ×2 (assurance and no assurance) +1 (control condition) between-subjects design. After reading the case materials, the participants indicated whether they believed the company's stock price would increase or decrease based on the information provided. As expected, we found that the nonfinancial performance indicators had a significant effect on stock price estimates. In addition, consistent with attribution theory, an assurance report on the voluntarily disclosed nonfinancial performance indicators only had a significant effect on stock price estimates when the nonfinancial performance indicators were positive, suggesting that the value of assurance is context-specific. Our research contributes to the discussion on the value of expanded assurance services and also on the value of enhanced corporate disclosure.

scholarly journals Pengaruh Pengungkapan Laporan Tahunan Periode 2014-2018 dan Ukuran Perusahaan Terhadap Harga Saham. (Studi Kasus Pada Perusahaan BUMN yang Sahamnya Terdaftar Dalam IDX BUMN20)

2020 ◽  
Vol 12 (2) ◽  
pp. 203-214
Author(s):  
Demetrius Kunto Wibisono ◽  
Esther Yolanda
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Annual Report ◽  
Financial Statements ◽  
Company Size ◽  
Variable Size ◽  
The Public ◽  
Testing Method ◽  
Research Sector

This study aims to find out how the influence of Disclosure of Financial Statements for the period 2014 - 2018 and Company Size on the Stock Price. This case study was conducted by taking a sample of companies list on IDX BUMN20. This study uses the hypothesis testing method using IBM SPSS Statistics Subscription version 23. Based on the results of the study found that an increase in average disclosure in all companies listed on the IDX, in other words, an increase in awareness of the management of companies listed on the IDX to report both financial and non-financial information to the public. In addition, companies listed on the IDX are increasingly obedient to the policies made by the regulator (OJK) related to the disclosure of financial statements. The Annual Disclosure Variable does not partially affect the company's stock price, this is due to differences in the research sector and research year. Partially, the variable size of the company has an influence on stock prices, this is because investors are interested in investing in companies that have large assets and have a large market capitalization because they are considered more profitable. Simultaneously, the Annual Report Disclosure variable and company size variables have a significant effect on stock prices.  Keywords: Annual Report Disclosure, Company Size, and Stock Price.

A Case Study of Illegal Insider Trading — The Scandal of Vultures' Insider Trading

2011 ◽  
Vol 14 (01) ◽  
pp. 81-99 ◽  
Author(s):  
Yu Chuan Huang ◽  
Shu Hui Chan
Keyword(s):  
Insider Trading ◽  
Stock Price ◽  
Annual Report ◽  
Investment Decision ◽  
Market Liquidity ◽  
Insider Information ◽  
Empirical Results ◽  
Window Dressing ◽  
Negative News

The purpose of this paper is to look at the duration of the four-month period before the window dressing of Power Quotient International Co., LTD. (PQI) annual report between 2004 and 2005 was disclosed. The vultures sold 6,373,000 shares of PQI's stock based on the illegally obtained insider information. The empirical results indicate that the vultures' selling did not make PQI's stock price go down during insider period, but PQI's stock price did appear to rise and significantly exceeded the non-insider period. However, the proportion of vultures' selling is negatively correlated with the changes in PQI's stock price. The effect of vultures' selling is indifferent from the effect of non-vultures' selling during insider period. Market liquidity is also affected unfavorably in the presence of vultures' trading. Additionally, the newspaper's reports on PQI's positive or negative news significantly influence the investment decision of investors in Taiwan, and significantly influence the PQI's price changes and market liquidity.

EXPLORING THE CONTENTS OF THE BALTIMORE AND OHIO RAILROAD ANNUAL REPORTS: 1827–1856

2000 ◽  
Vol 27 (1) ◽  
pp. 1-42 ◽  
Author(s):  
Gary John Previts ◽  
William D. Samson
Keyword(s):  
Annual Report ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
University Of Alabama ◽  
Complete Collection ◽  
Archival Collection ◽  
Annual Reporting ◽  
The University ◽  
Disclosure Practice ◽  
Corporate Practice

In 1995, a nearly complete collection of the annual reports of the earliest interstate and common carrier railroad in the U. S., the Baltimore and Ohio (B&O), was rediscovered in the archival collection at the Bruno Library of the University of Alabama. Dating from the company's inception in 1827 to its acquisition by the Chessie System in 1962, the reports present a unique opportunity for the exploration, study, and analysis of early U.S. corporate disclosure practice. This paper represents a study of the annual report information made publicly available by one of America's first railroads, and one of the first modern U.S. corporations. In this paper, early annual reports of the B&O which detail its formation, construction, and operation are catalogued as to content and evaluated. Mandated in the corporate charter, the annual “statement of affairs” presented by the management and directors to stockholders is studied as a process and as a product that instigated the institutional corporate practice recognized today as “annual reporting.” Using a single company methodology for assessment of reporting follows a pattern developed by Claire [1945] in his analysis of U.S. Steel and utilized by other researchers. This study demonstrates the use of archival information to improve understanding about the origins and contents of early annual reports and, therein, related disclosure forms.

scholarly journals The Social Balance Sheet as Part of the Annual Report in Financial Institutions. A Case Study: Banco Bilbao Vizcaya Argentaria (BBVA)

2021 ◽  
Vol 13 (6) ◽  
pp. 3075
Author(s):  
Miguel Ángel Martín Valmayor ◽  
Beatriz Duarte Monedero ◽  
Luis A. Gil-Alana
Keyword(s):  
Annual Report ◽  
Economic Value ◽  
Balance Sheet ◽  
Value Added ◽  
Social Value ◽  
Economic Value Added ◽  
The Social ◽  
Social Balance ◽  
Corporate Social

In this paper, we examine the concept of the social balance sheet (SBS) and its evolution in corporate social reports that large companies have to issue today in their yearly statements. The SBS allows companies to evaluate their compliance with corporate social responsibility during a specific period and quantify its level of accomplishment. From a methodological perspective, this research analyzed the information that should be contained in the SBS report comparing economic value added (EVA) with other social value added statements (SVA), analyzing also in detail the case of Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) bank as one of the pioneers in offering social reports. Along with this study, their metrics following EVA were recalculated and a more academic SVA statement was proposed for this specific case.

scholarly journals A Framework for Assessing Commitment Indicators in Sustainable Development Decisions

2021 ◽  
Vol 13 (9) ◽  
pp. 5234
Author(s):  
Mustafa S. Al-Tekreeti ◽  
Salwa M. Beheiry ◽  
Vian Ahmed
Keyword(s):  
Sustainable Development ◽  
Performance Indicators ◽  
Energy Use ◽  
Capital Projects ◽  
The Sustainable Development ◽  
Corporate Leaders ◽  
Corporate Decisions ◽  
Waste Energy ◽  
Infrastructure Project

Numerous decision support systems have been developed to address the decision-making process in organizations. However, there are no developed mechanisms to track commitment down the line to the decisions made by corporate leaders. This paper is a portion of a study that establishes a framework for a comprehensive metric system to assess commitment to Sustainable Development (SD) decisions down the line in capital projects, and sets the groundwork for further development of performance indicators for SD outcomes. This ultimately leads to investigating the relationship between commitment to corporate decisions and better project performance in SD parameters. Hence, this study explores the literature to extract relevant parameters that reflect the degree of the project participants’ commitment to SD decisions and to develop commitment indicators. The study created then validated an index to track this commitment along the project stages: the Sustainable Development Commitment Tracking Tool (SDCTT). The SDCTT was tested on an infrastructure project case study. In this paper, techniques relevant to the first stage of projects (planning and definition) are presented. The SDCTT is the groundwork for the future development of performance indicators for SD outcomes, and within the postulated model should ultimately contribute towards reducing project waste, energy use, and carbon emissions.

Organizational change for sustainability education: a case study of one university’s efforts to create and implement institution-wide sustainability competencies

2021 ◽  
Vol 22 (3) ◽  
pp. 497-515
Author(s):  
Vanessa R. Levesque ◽  
Cameron P. Wake
Keyword(s):  
Organizational Change ◽  
Sustainability Education ◽  
Similar Process ◽  
Future Research ◽  
Content Type ◽  
Institutional Level ◽  
Institutional Sustainability ◽  
Context Specific ◽  
The University

Purpose The purpose of this study is to examine how the process of creating and implementing sustainability competencies across a university illuminate dynamics of organizational change. The push to advance education for sustainable development in higher education will likely require transformation of existing policies and practices. A set of shared sustainability competencies could guide the integration of sustainability throughout an institution. Design/methodology/approach This paper reports on a case study of one US university, the University of New Hampshire (UNH) that developed institutional-level sustainability competencies. The process used to create and implement sustainability competencies is outlined, and key factors that influenced the associated organizational change are identified. Findings Very few US universities have institutional-level sustainability competencies. At UNH, drivers of organizational change such as overcoming disciplinary boundaries, developing a common vision and working from the bottom-up enabled the creation of institutional sustainability competencies, but the same processes were not enough to drive deeper implementation of the competencies. Originality/value This paper not only identifies the context-specific drivers of the development of institutional sustainability competencies, but also identifies universal themes that can be applied to other institutions embarking on a similar process. Additionally, this paper serves as a foundation for future research exploring how the process of creating institutional sustainability competencies may be linked to how effective they are in shaping subsequent sustainability education.

Perbandingan harga saham, volume transaksi dan return saham sebelum dan sesudah terjadi pandemi covid-19 pada PT Agung Podomoro Land, Tbk

2021 ◽  
Vol 5 (4) ◽  
pp. 720
Author(s):  
Anggun Putri Romadhina ◽  
Eka Kusuma Dewi
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Stock Price ◽  
Research Data ◽  
Paired Sample ◽  
First Case ◽  
Significant Difference ◽  
Before And After ◽  
Stock Transaction

The first Covid-19 case in Indonesia was announced on March 2, 2020. This study aims to determine whether there is a significant difference in stock prices, stock transaction volume and stock returns due to the COVID-19 pandemic (case study at PT. Agung Podomoro Land, Tbk). This research data was taken 90 days before and 90 days after the announcement of the first case of COVID-19 in Indonesia. The data was processed by paired sample t-test, using SPSS version 20. From the results of data processing, it was shown that there was a significant difference in stock prices before and after the announcement of the first case of covid-19 in Indonesia. This is indicated by a significance value of 0.000 < 0.05 where the stock price has decreased compared to before the Covid-19 case. Meanwhile, the volume of stock transactions also showed a significant difference with a significance value of 0.007 <0.05, where the volume of stock transactions after the announcement showed a decrease. Likewise, stock returns show a significant difference with a significance value of 0.025 < 0.05 where stock returns have decreased after the announcement of the first case of covid-10 in Indonesia.  

Power Distance, Political Uncertainty, and Stock Price Crash Risk: International Evidence

2021 ◽  
Author(s):  
Qiaoling Su ◽  
Xunchang Zhang ◽  
Jianming Ye
Keyword(s):  
Stock Price ◽  
Power Distance ◽  
Cultural Dimensions ◽  
Crash Risk ◽  
Corporate Disclosure ◽  
National Elections ◽  
Political Event ◽  
Listed Firms ◽  
Political Events ◽  
The Government

This study tests the effect of unbalanced power distance (PD) (i.e., Hofstede’s cultural dimensions PD index) and individual stock price crash risk. We examine the stock price behavior of listed firms in 37 countries from 2004 to 2016 and use multivariate analyses to document that societal PD is important in explaining firms’ propensity to release accounting information. This propensity suggests a psychological tendency regarding timing management, particularly for bad news. As countries with large PD prefer to keep things under control, the result is fewer unexpected stock price crashes during the long windows between election events. However, because large-PD countries focus their markets on maintaining temporary peace before and during periods of political events (i.e., national elections), crash risk increases after the political event window. Consistent with these predictions, we find that in large-PD countries, companies generally have less incentive to hide negative information and thus generate stock price crashes. This situation is substantially changed during the postpolitical windows, when firms and ways of spreading information are more controlled by the government. Our findings suggest that formal mechanisms alone are insufficient to explain the behaviors of corporate disclosure that are entangled with informal instruments.

The use of environmental performance indicators in “the greenest city in Europe”

2019 ◽  
Vol 14 (1) ◽  
pp. 122-140 ◽  
Author(s):  
Jan Alpenberg ◽  
Tomasz Wnuk-Pel ◽  
Philip Adamsson ◽  
Johannes Petersson
Keyword(s):  
Performance Indicators ◽  
Environmental Performance ◽  
Environmental Indicators ◽  
Structured Interviews ◽  
Content Type ◽  
Study Approach ◽  
External Stakeholders ◽  
Municipal Managers ◽  
Environmental Performance Indicators

Purpose The purpose of this paper is to examine why and how municipal managers and CEOs for municipally owned companies use the environmental performance indicators. Design/methodology/approach A case study approach as a research design was used. In total, 18 semi-structured interviews were conducted among managers for administrative departments and municipal company CEOs. Findings This study found that the environmental performance indicators are used by department managers mainly for resource allocation, control and for teaching the employees. The CEOs of the municipal companies use the environmental indicators for communicating with external stakeholders and see the indicators primarily as marketing tools. The main reason why the environmental performance indicators are used in the municipality can be the strong demand from the local politicians to push the “green agenda,” and therefore the managers have to comply. Research limitations/implications As in any case study, generalizations from the research should be made with care, but since this is only one municipality, further research is needed to find additional evidence. Practical implications The findings of this study have a number of implications for future practice, and it is worth mentioning that clear guidelines for how the information could be made more useful for managers at the managerial level in Växjö municipality (VM) are requested for both the municipal managers and the CEOs. Social implications Overall, this study strengthens the idea that environmental performance indicators could be used to a larger extent for communicating with external stakeholders both for municipal departments and companies. Originality/value The research adds to the literature by examining different patterns of using environmental performance indicators in a unique setting – in VM, which is called “the greenest city in Europe” and is one of the “pioneers” in environmental work and extensively uses performance indicators.

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