scholarly journals Sustainability Reporting Disclosure in Islamic Corporates: Do Human Governance, Corporate Governance, and IT Usage Matter?

2021 ◽  
Vol 13 (23) ◽  
pp. 13023
Author(s):  
Idris Gautama So ◽  
Hasnah Haron ◽  
Anderes Gui ◽  
Elfindah Princes ◽  
Synthia Atas Sari
Keyword(s):  
Corporate Governance ◽  
Sustainability Reporting ◽  
Negative Influence ◽  
Stock Index ◽  
Annual Reports ◽  
Main Driver ◽  
It Usage ◽  
Sustainability Reports ◽  
Toe Framework ◽  
Using Data

In developing countries, particularly South Asia, there is scarce research on corporate governance and sustainability reporting disclosure. This study considers several insightful theories, including Stakeholder Theory, Agency Theory, and the TOE Framework, to understand the relationships and drivers of sustainability reporting. The study examines Indonesian Islamic corporates using data from the ISSI (Indonesia Shariah Stock Index). We gathered annual reports and sustainability reports from the ISSI database for the year 2019. The study investigates how human governance (HG), Islamic corporate governance (ICG), and information technology usage (ITU) are related to sustainability reporting disclosure (SR). The findings showed that the sustainability reporting disclosure was significantly influenced by human governance and Islamic corporate governance with firm size and leverage. Furthermore, the research showed that profitability was not significantly related to sustainability reporting disclosure, that Islamic corporate governance had a significant negative influence on SR, and that IT usage was only significant when human governance was not present. Finally, the results showed that human governance is the main driver of sustainability reporting disclosure. Therefore, we conclude that human governance is the best predictor for sustainability reporting disclosure.

scholarly journals Corporate Governance Mechanism, Company Size Financial Performance and Sustainability Reporting

2018 ◽  
Vol 7 (4.34) ◽  
pp. 201
Author(s):  
Andhika Ligar Hardika ◽  
Daniel T. H. Manurung ◽  
Yati Mulyati
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Negative Influence ◽  
Company Size ◽  
Governance Mechanism ◽  
Sustainability Reports

The importance of sustainability reporting for companies to be able to know the role of the company in disclosing social responsibility and the implementation of corporate sustainability as a manifestation of corporate governance mechanisms, company size and financial performance. This study uses a stratified random sampling method for companies that have revealed sustainability reports and those that do not disclose sustainability reports. The research method uses logistic regression, with a sample of 13 non-financial companies listed on the Indonesia Stock Exchange. Based on the results obtained, it can be seen that the mechanism of corporate governance consisting of independent commissioner variables has a negative influence on sustainability reporting, institutional ownership variables have a positive influence on sustainability reporting, managerial ownership variables have a negative influence on sustainability reporting, audit committee variables have a negative effect on sustainability reporting, the variable size of the company gives a negative influence on sustainability reporting, and financial performance variables which are leverage variables have a negative influence on sustainability reporting.  

Convergence of corporate governance in Malaysia and Thailand

2014 ◽  
Vol 4 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Syed Abdulla Al Mamun ◽  
Yousre Badir
Keyword(s):  
Corporate Governance ◽  
Emerging Economies ◽  
Annual Reports ◽  
Unconditional Convergence ◽  
Individual Country ◽  
Firm Level ◽  
Content Type ◽  
Prior Literature ◽  
Specific Factors ◽  
Using Data

Purpose – The purpose of this paper is to examine whether there is a firm-level corporate governance (CG) convergence in two emerging economies, namely Malaysia and Thailand in post-Asian financial crisis periods, and how the level of convergence is moderated by different firm-specific factors. Design/methodology/approach – Using data collected from annual reports of top Malaysian and Thai companies in two point of times 2005 and 2008, this research examines the attributes of board of directors to find the firm-level CG convergence. This study, based on prior literature, identified firm-specific factors to assess their moderating impact on the level of convergence. This paper exploits beta and sigma convergence technique to measure the CG convergence. Findings – Results show that top Malaysian and Thai companies have developed internal CG practices in similar way with increasing board independent, separate board leadership, important board committees, board education, and participation in the post-crisis reform regime. Accordingly, there is a firm-level CG convergence within companies of an individual country, i.e. intra-convergence, and companies across the countries, i.e. inter-convergence. Notwithstanding, the study does not find the unconditional convergence in all CG variables. Additionally, it observes that the firm-level CG convergence is moderated by firm-specific factors. Practical implications – Outcomes of the study have the implication to understand the complicated changing aspects of internal CG practices in emerging economies which, in turn, can help to formulate and implement effective CG structure so that firms can tackle adverse effects of any further economic crisis. Because this paper highlights that the firms in these emerging economies have enough room yet to improve their CG practices to become internationally competitive. Originality/value – This paper demonstrates how internal CG practices may evolve and converge in emerging Southeast Asian economies. Results related to moderating factors of firm-level CG convergence contribute in literature by exploring a new dimension of CG convergence.

scholarly journals Board Governance and Sustainability Disclosure – A Romanian Insight

2020 ◽  
Vol 14 ◽  
pp. 47-60
Author(s):  
Victoria Stanciu ◽  
Carmen Valentina Rădulescu ◽  
Dumitru Alexandru Bodislav ◽  
Sorin Burlacu ◽  
Ovidiu Cristian Andrei Buzoianu
Keyword(s):  
Corporate Governance ◽  
Business Models ◽  
Sustainability Reporting ◽  
Time Frame ◽  
Annual Reports ◽  
Board Governance ◽  
Sustainability Disclosure ◽  
Pharmaceutical Industries

This paper examines the corporate governance and sustainability disclosure and investigates the existing anchor between sustainability disclosure and corporate governance in Romanian companies. The topic provides a generous field of study because of the novelty of sustainable reporting for the Romanian companies and need for robust, consolidated corporate governance. The study’s sample includes listed and non-listed companies operating in the oil, transportation, chemistry and pharmaceutical industries. Annual reports, comply-or-explain declarations and stand-alone sustainability reports of the companies were analyzed on a time frame of three years aiming at measure the quality of sustainability disclosures and investigate the correlations between board governance and sustainability disclosure. The study emphasized that the companies opted mainly to integrate sustainable reporting in the annual management report. The independent reports on sustainability are more rigorous and better aligned to the Romanian framework, then the information integrated into the annual management reports. Improved disclosure is needed on the main risks with severe impacts, policies regarding specific aspects of sustainability, key performance indicators relevant to particular businesses. The sustainability reporting is more focus on soft disclosure items. Companies with larger board size and a higher number of board meetings registered higher disclosure in sustainability reporting. Robust corporate governance is imperative for Romanian companies because they are facing drastic changes in all aspects of their activity. A new rethink approach is needed from the sustainability perspective aiming at reshaping the entire processes starting with a long-term strategy, business models, risk and data management and processing.

Sustainability Reporting Disclosure in Corporates: Do Human Governance, Corporate Governance, and IT Usage Matter?

2021 ◽  
Vol 12 (1) ◽  
pp. 95-95
Author(s):  
Idris Gautama So ◽  
Hasnah Haron ◽  
Anderes Gui ◽  
Elfindah Princes ◽  
Synthia Atas Sari
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Great Recession ◽  
Sustainability Reporting ◽  
Islamic Finance ◽  
The Great Recession ◽  
Critical Areas ◽  
It Usage ◽  
Sustainability Practices

The role of Islam as a driving force behind greater transparency of sustainability practices (Andri, Suryanto, Ghofur, & Anggraeni, 2020), especially during the digitalization era where all information is easily accessed. Following the Great Recession of 2008, many people sought an antidote to the economy, and Islamic Finance received much attention. Islamic corporate governance is one of the critical areas that has received a lot of attention because it is a tool for steering the economy (Alam Choudhury & Nurul Alam, 2013; A. A. Jan, Lai, & Tahir, 2021; Murphy & Smolarski, 2020; Siswanti, Salim, Sukoharsono, & Aisjah, 2017). Concerning Islamic corporate governance, the questions were answered differently in three layers approaches: 'decision making by consultation (shura'), 'decision making for which end in Allah through the institution of hisba and muhtasib to ensure Shari'a law compliance,' and 'accountability to Allah as human trustee to resources given through religious audit.'

scholarly journals Stakeholders’ Expectations on Human Capital Disclosure vs. Corporate Reporting Practice in Malaysia

2018 ◽  
Vol 12 (1) ◽  
pp. 148
Author(s):  
Salawati Sahari ◽  
Esmie Obrin Nichol ◽  
Suzila Mohamed Yusof
Keyword(s):  
Human Capital ◽  
Sustainability Reporting ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
Research Attention ◽  
Reporting Practices ◽  
Corporate Reporting ◽  
Reporting Practice ◽  
Perceived Importance ◽  
Main Driver

Corporate disclosure of human capital has received growing research attention in different countries and markets. While past studies have explored the antecedent and implications of reporting human capital, studies on how far those disclosure practices actually meet the stakeholders’ expectations are still lacking. Hence, this study attempt to apply the stakeholder theory to frame the human capital reporting practices by the corporations in Malaysia. The methodology of this study is twofold; firstly, to develop human capital reporting measurement items as per the stakeholders’ expectation and their perceived importance of those items through a Delphi technique, and secondly, to determine the extent of human capital disclosure practices through a content analysis of the annual reports. The findings indicate that despite stakeholders’ high perceived importance on human capital disclosures, the corporate reporting practices are still at an inferior stage. This study contributes in such a way to fill the gap in the literature by exploring the current extent of human capital reporting by the listed corporations in Malaysia and how far such disclosure met the stakeholders’ expectations. This study also highlights the significance of the stakeholders’ voice and participation as one of the main driver towards sustainability reporting.

scholarly journals Analisis Pengaruh Karakteristik Perusahaan dan Tata Kelola Perusahaan terhadap Pengungkapan Sustainability Report

2020 ◽  
Vol 4 (1) ◽  
pp. 16
Author(s):  
Robby Krisyadi ◽  
Elleen Elleen
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Annual Reports ◽  
Company Size ◽  
Additional Information ◽  
Negative Results ◽  
Sustainability Reports ◽  
Sustainability Report

The objective of this study is to examine and analyze the correlation of company characteristics and corporate governance towards sustainability report disclosure. The company characteristics mentioned before consist of company size, leverage level, profitability level, and liquidity level, while the corporate governance consist of the board of directors’s meeting frequency and audit committee’s meeting frequency. Companies listed in the Indonesia Stock Exchange from 2014 to 2018 are the objects of this research. Data that needs to be collected are financial reports, annual reports, and sustainability reports if available. Purposive sample is the sampling technique used in this study by establishing certain characteristics that are in line with the objectives of the study. There are 301 companies used as samples. The data that has been collected will then be processed with a software called SPSS Version 22 which is analyzed with the logistic regression model. The test results in this study explain that company size, profitability, and the board of directors have a positive effect on sustainability report disclosure, while leverage and the audit committee don’t have any significant effects on the sustainability report disclosure. In addition, there are also significant negative results indicated by the liquidity variable on the sustainability report disclosure. This is triggered by the company's poor financial condition, so companies with low liquidity tend to disclose more additional information such as sustainability reports so that investors will continue to invest in the company.

Corporate governance, earnings management and the value-relevance of accounting information: Evidence from Pakistan

2018 ◽  
Vol 05 (03) ◽  
pp. 1850025
Author(s):  
Waqas Bin Khidmat ◽  
Man Wang ◽  
Sadia Awan
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Positive Impact ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Annual Reports ◽  
Book Value ◽  
Governance Practices ◽  
Using Data

This paper examines the effect of corporate governance and earnings management on the value relevance of accounting information. Using data collected from the annual reports of non-financial companies listed in Pakistan Stock Exchange, it is concluded that earnings and book value are value relevant. The value relevance of earnings decreases while the value relevance of book value increases for the firms engaged in the earnings management. On the contrary, good corporate governance practices have a positive impact on the value relevance of earnings as well as the book value. Firm-specific characteristics enhance the predictive power of the model by more than 14%. A robustness test was carried out for alternative measures of earnings management. For this purpose, first performance-matched discretionary accruals were calculated following Kothari et al. (2005). Second, short-term accruals (DeChow, 1994), long-term accruals (Teoh et al., 1998b) and total accruals (Whelan, 2004), are calculated to analyze the effect on the value relevance of earnings and book value. The results support our null hypothesis.

scholarly journals Examining the extent of and drivers for materiality assessment disclosures in sustainability reports

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Bilal Farooq ◽  
Rashid Zaman ◽  
Dania Sarraj ◽  
Fahad Khalid
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Best Practice ◽  
Corporate Sustainability ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Corporate Accountability ◽  
Content Type ◽  
Sustainability Reports ◽  
Ordered Logic

Purpose This paper aims to evaluate the extent of materiality assessment disclosures in sustainability reports and their determinants. The study examines the disclosure practices of listed companies based in the member states of the Cooperation Council for the Arab States of the Gulf, colloquially referred to as the Gulf Cooperation Council (GCC). Design/methodology/approach First, the materiality assessment disclosures were scored through a content analysis of sustainability reports published by listed GCC companies during a five-year period from 2013 to 2017. Second, a fixed effect ordered logic regression was used to examine the determinants of materiality assessment disclosures. Findings While sustainability reporting rates improved across the sample period, a significant majority of listed GCC companies do not engage in sustainability reporting. The use of internationally recognised standards has also declined. While reporters provide more information on their materiality assessment, the number of sustainability reports that offer information on how the reporter identifies material issues has declined. These trends potentially indicate the existence of managerial capture. Materiality assessment disclosure scores are positively influenced by higher financial performance (Return on Assets), lower leverage and better corporate governance. However, company size and market-to-book ratio do not influence materiality assessment disclosures. Practical implications The findings may prove useful to managers responsible for preparing sustainability reports who can benefit from the examples of materiality assessment disclosures. An evaluation of the materiality assessment should be included in the scope of assurance engagements and practitioners can use the examples of best practice when evaluating sustainability reports. Stock exchanges may consider developing improved corporate governance guidelines as these will lead to materiality assessment disclosures. Social implications The findings may assist in improving sustainability reporting quality, through better materiality assessment disclosures. This will allow corporate stakeholders to evaluate the reporting entities underlying processes, which leads to transparency and corporate accountability. Improved corporate sustainability reporting supports the GCC commitment to implement the United Nations Sustainable Development Goals and transition to sustainable development. Originality/value This study addresses the call for greater research examining materiality within a sustainability reporting context. This is the first paper to examine sustainability reporting quality in the GCC region, focussing particularly on materiality assessment disclosures.

scholarly journals Influence of Internal and External Governance Mechanisms on Corporate Governance Disclosure among Islamic and Conventional Banks

2017 ◽  
Vol 5 (1) ◽  
pp. 025 ◽  
Author(s):  
Rashedul Hasan ◽  
Kashfia Sharmeen ◽  
Anisa Sultana
Keyword(s):  
Corporate Governance ◽  
Fixed Effect Model ◽  
Negative Influence ◽  
Foreign Banks ◽  
Annual Reports ◽  
Panel Model ◽  
External Governance ◽  
Conventional Banks ◽  
New Research ◽  
Governance Disclosure

The purpose of this paper is to investigate the extent of corporate governance disclosure in the annual reports of listed conventional and Islamic banks in Bangladesh. Out of fifty-six scheduled banks in Bangladesh, a sample of thirty-nine banks is selected, and data for the sample is extracted from the annual reports covering a period of 2011 to 2014. As such, the study focused on the extent of CGC after the stock market crisis in 2010 in Bangladesh. This results in the final observations of 116 which were used to perform balanced panel regression analysis. Fixed effect model is found significant for the balanced panel model which indicates that appointment of large audit firms negatively affects the extent of corporate governance compliance. Pooled OLS regression established that while profitability has a negative influence, the size of banks positively affects the extent of CGC. This study has focused on the commercial banks and thus results obtained from the study may not be representative for public and foreign banks operating in Bangladesh. Statistical evidence provided by the study provides guidelines for the policymakers toward necessary governance reforms required for banks to successfully operate in a post-crisis environment. Factors established by the study that influences corporate governance compliance using a balanced panel model are unique in the context of developing countries. Evidence of a difference in governance compliance between Islamic and conventional banks in Bangladesh establishes a new research arena and a necessary shift from the traditional performance comparisons.

Corporate governance and voluntary disclosure: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rupjyoti Saha ◽  
Kailash Chandra Kabra
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Negative Influence ◽  
Positive Influence ◽  
Annual Reports ◽  
Corporate Board ◽  
Content Type ◽  
Different Types ◽  
Significant Positive Influence

Purpose This study aims to examine the influence of some prominent corporate governance (CG) mechanisms such as board size (BS), board independence (BI), role duality (RD), board’s gender diversity (GD), ownership concentration (OC), audit committee independence (ACI), nomination and remuneration committee (NRC) and risk management committee (RMC) on voluntary disclosure (VD), as well as different types of VD after controlling the effect of some firm-specific factors for Indian firms. Design/methodology/approach The study selects market capitalization-based top 100 non-financial and non-utility firms listed on the Bombay Stock Exchange as on 31st March 2014. Data are drawn from the Capitaline Plus database over the period of 2014–2018. Appropriate panel data regression model is applied to examine the influence of CG on VD. Findings The study reveals a significant negative influence of BI on VD while GD and RMC exhibit a significant positive influence on the same. The remaining CG mechanisms such as BS, RD, OC, ACI and NRC appear to have no significant influence on VD. Analysis into the relationship between CG mechanisms and different types of VD reveals that BI, in particular, has a strong negative influence on corporate strategic disclosure (CSD) and forward looking disclosure (FWLD) while GD and RMC both exhibit a significant positive influence on CSD, FWLD, CG disclosure and financial and capital market disclosure. Notably, none of the CG mechanisms under consideration influence human and intellectual capital disclosure. Research limitations/implications The study considers annual reports as the only medium of making VD and ignores all other sources such as websites and press releases. Besides, it mainly emphasizes on corporate board structure, board committees and OC while other ownership structure-related variables family ownership, managerial ownership are not covered, which can be analysed in future studies. Practical implications The study offers some important theoretical, as well as practical connotations for regulators and practitioners operating in India, as well as other emerging economies having similar institutional settings. Originality/value The study is the first of its kind in India that examines the influence of various CG mechanisms on different types of VD and thereby contributes novel findings in the context of an emerging economy.

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