scholarly journals Os Escândalos De Corrupção Na JBS S.A. E As Estratégias De Legitimidade Organizacional De Lindblom

2020 ◽  
Vol 23 (3) ◽  
pp. 309
Author(s):  
Pablinne De Paula Oliveira ◽  
Fernanda Fernandes Rodrigues ◽  
Mariana Guerra
Keyword(s):  
Financial Reporting ◽  
Securities And Exchange Commission ◽  
The Political ◽  
Legitimacy Theory ◽  
Financial Reports ◽  
Information User ◽  
The Media ◽  
Reference Form ◽  
The Impact ◽  
Management Report

Objective: Evaluate the narrative financial reports released by the Brazilian meatpacker JBS SA and identify how the company has sought to influence its information user while coping with its recent corruption scandals.  Method: A qualitative analysis of narrative financial reports – Market Notices, Material Facts, Management Report, and Reference Form and Prospects – was carried out for the base year 2017 based on the Legitimacy Theory (Lindblom, 1994).Originality/Relevance: Parameters are shown that could be used by managers, separately or concurrently, intentionally or unintentionally, to achieve, preserve or recover the company’s legitimacy. Mechanisms of manipulation are also shown as used in corporate reports.Results: JBS used Lindblom’s (1994) first legitimacy strategy in all reports, but more frequently in the Material Facts. Such a strategy was used for regulatory and penal reasons (i.e., the Securities and Exchange Commission of Brazil, and the Federal Public Prosecutor’s Office) as JBS acknowledged the impact of the negative event (i.e., the corruption scandals covered by the media) and provided information related to how it has addressed such a legitimacy-threatening problem.Theoretical/Methodological contributions: Lindblom’s (1994) 2nd and 3rd legitimacy strategies were not as frequent (9% and 12,5% respectively) as reported in the literature. Adding to the literature, this study provides a better understanding of financial reporting as an instrument of legitimacy and manipulation within the political and economic environment.

Did Codification Result in Improved Readability?

2017 ◽  
Vol 7 (1) ◽  
pp. 190
Author(s):  
Doug Barney ◽  
Daniel Tschopp ◽  
Steve Wells
Keyword(s):  
Financial Reporting ◽  
Essential Element ◽  
Accounting Standards ◽  
Securities And Exchange Commission ◽  
Financial Accounting ◽  
Reporting Standards ◽  
Financial Reports ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
The Impact

Financial reporting complexity costs money. The process of developing and promulgating financial reporting standards is costly. The Financial Accounting Standards Board (FASB), Securities and Exchange Commission (SEC), and the International Accounting Standards staff spend time, expertise, and funds writing detailed financial reporting standards. Reporting companies spend money studying and applying these financial reporting standards. Investors, financial analysts, and creditors, while knowledgeable in financial accounting, spend time and resources interpreting and analyzing the resulting financial reports. While there are a number of factors that contribute to the complexity in financial reporting, the level of reading complexity, or readability, is an essential element of a clear, easy-to-understand accounting standard. Recently the FASB adopted a process to bring about a Codification for U.S. Generally Accepted Accounting Principles (GAAP). What impact, if any, did the FASB’s Codification have on the level of reading complexity or readability in U.S. GAAP? The results of several readability tests reported in this article indicate the impact of Codification on the level of reading complexity or readability is not a positive one.

Unfunded Public Employee Health Care Benefits and GASB No. 45

2007 ◽  
Vol 21 (3) ◽  
pp. 245-263 ◽  
Author(s):  
Elizabeth K. Keating ◽  
Eric S. Berman
Keyword(s):  
Health Care ◽  
Financial Reporting ◽  
Full Range ◽  
Financial Reports ◽  
Employment Benefits ◽  
Care Plans ◽  
Advantages And Disadvantages ◽  
Government Accounting ◽  
The Government ◽  
The Impact

The Government Accounting Standards Board (GASB) recently released Statement No. 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions and its companion Statement No. 43 for pooled stand-alone health care plans, which will profoundly affect American governmental finance. The goal of this article is to encourage governments to consider carefully a full range of options in funding and restructuring other post-employment benefits (OPEB). This article will review Statement No. 45's potential impact on governments and review existing disclosures in financial reports as well as bond offering statements. The article will discuss the statement's impact on budgets and governmental operations, including collective bargaining. Funding options under Statement No. 45 will be detailed, including the advantages and disadvantages of irrevocable trusts and OPEB bonds. The article will also discuss the impact of Medicare Part D subsidies received by governments, as well as the bond rating implications of policy decisions surrounding OPEB. As the largest government entities are just now implementing GASB Statement No. 45, estimates of the magnitude of unfunded OPEB liabilities are limited as are the strategies likely to be adopted to cover these obligations. This article offers a summary of the unfunded OPEB liabilities reported by states and major cities and suggests some measures for assessing the ability of these entities to address these costs.

scholarly journals OHS Disclosures Within Non-Financial Reports: The Romanian Case

2020 ◽  
Vol 12 (5) ◽  
pp. 1963
Author(s):  
Ana Petrina Păun ◽  
Codruța Cornelia Dura ◽  
Sorin Mihăilescu ◽  
Roland Iosif Moraru ◽  
Claudia Adriana Isac
Keyword(s):  
Financial Reporting ◽  
Descriptive Analysis ◽  
Health And Safety ◽  
Financial Reports ◽  
Regional Context ◽  
Eu Directive ◽  
Sustainability Reports ◽  
Legislative Changes ◽  
Local Companies ◽  
The Impact

The article addresses the issue of disclosing Occupational Health and Safety (OHS) issues by corporations in Romania, under the influence of recent changes in the legislative framework imposed by the adoption of the EU Directive 2014/95/EU on non-financial reporting by large corporations exceeding 500 employees. The goal of our study consist in determining the relevant factors that influence the level of the Romanian companies’ OHS disclosure. To this end, we have compiled a sample of 35 organizations that have elaborated and published non-financial reports during 2016–2017 and we have analysed the impact of some relevant determinants upon the reporting phenomenon. With the aim of providing a clear picture of the regional context of our study, we put together many pieces of information regarding the corporations that played the trend-setters role in Romania, by disclosing corporate social responsibility (CSR)/sustainability reports between 2003 and 2017, although this practice has been characterized by a voluntary and unsteady approach in many cases. The importance of outlining the regional context of the Romanian reporting companies is given by the urge to raise the local managers’ level of awareness towards sustainability issues and to use the recent legislative changes as opportunities to catch up with more advanced EU countries. The research methods used in order to identify the interdependencies established between the key factors involved in the disclosure practices included a mixed quantitative-qualitative approach, and referred to: content analysis of sustainability reports; descriptive analysis of the statistical variables which were taken into consideration; correlation analysis of numerical variables; and the ANOVA method for investigating the interdependencies between the categorical and numerical variables. Among the influencing factors that impact with a greater or lesser intensity the quality of OHS reporting performed by the local companies, the following were highlighted: the corporations’ market share, their field of activity, and the ownership structure.

The relationship between sustainability practices and financial performance of construction companies

2013 ◽  
Vol 2 (1) ◽  
pp. 6-27 ◽  
Author(s):  
Renard Y.J. Siew ◽  
Maria C.A. Balatbat ◽  
David G. Carmichael
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Health And Safety ◽  
Financial Ratios ◽  
Financial Reports ◽  
Content Type ◽  
Construction Companies ◽  
Wide Range ◽  
Sustainability Practices ◽  
The Impact

PurposeOver recent years, a number of companies have committed to sharing information relating to their environmental, social and governance (ESG) activities, in response to a higher demand for transparency from stakeholders. This paper aims to explore the impact of such reporting on the financial performance of construction companies.Design/methodology/approachThis paper first examines the state of non‐financial reporting of publicly‐listed construction companies on climate change, environmental management, environmental efficiency, health and safety, human capital, conduct, stakeholder engagement, governance and other matters deemed to be of concern to institutional investors. It then presents the results of an empirical study on the impact of issuing non‐financial reports and the extent of companies’ sustainability practices (represented by ESG scores) on the financial performance of the companies. Financial performance is measured via a range of financial ratios.FindingsThe paper finds that a majority of the publicly‐listed construction companies studied have low levels of reporting, while construction companies issuing non‐financial reports largely outperform those which do not in a number of selected financial ratios, although the correlation between financial performance and ESG scores is not strong.Originality/valueThe originality of this research lies in its use of “hard data”, and it is supported by a wide range of financial ratios; this is distinguished from the existing, largely qualitative literature.

The Impact of Eliminating the 20-F Reconciliation Requirement for IFRS Filers on Earnings Persistence and Information Uncertainty

2012 ◽  
Vol 26 (4) ◽  
pp. 741-765 ◽  
Author(s):  
Tony Kang ◽  
Gopal V. Krishnan ◽  
Michael C. Wolfe ◽  
Han S. Yi
Keyword(s):  
Financial Reporting ◽  
Investor Protection ◽  
Securities And Exchange Commission ◽  
Earnings Persistence ◽  
Information Uncertainty ◽  
Disclosure Quality ◽  
Forecast Dispersion ◽  
Financial Reporting Standards ◽  
Reporting Environment ◽  
The Impact

SYNOPSIS: On November 15, 2007, the U.S. Securities and Exchange Commission (SEC) eliminated the requirement that foreign private issuers reporting under International Financial Reporting Standards (IFRS) include a reconciliation to U.S. GAAP in their 20-F filing. To the extent that the reconciliations had information content, it is possible that the information environment of IFRS filers deteriorated in the post-reconciliation period, unless they voluntarily improved disclosure quality. Using difference-in-differences tests, we examine whether there was any change in the persistence of earnings and analyst forecast dispersion after the new regulation. We find that earnings persistence increased (did not increase) and analyst uncertainty measured by the forecast dispersion did not increase (increased) for firms domiciled in weaker (stronger) investor protection countries. These results suggest that firms from a weaker investor protection environment had a greater incentive to “signal” the quality by voluntarily improving the disclosure quality in the post-reconciliation period to compensate for any possible information loss from no longer providing the reconciliation. Our findings also suggest that the elimination of the reconciliation requirement did not have a uniform effect on IFRS filers and that the effect varies with the firm's home country reporting environment. JEL Classifications: M41

scholarly journals The Impact of the Application of International Accounting Standard 34 (IAS 34) on the Industrial Public Shareholding Companies’ Sector in Jordan

2019 ◽  
Vol 5 (4) ◽  
pp. p404
Author(s):  
Maen Yousef Khalaf Hijazin ◽  
Dr. Saeed Mikhled Ahmad Al-naimat
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Simple Random Sample ◽  
Individual Investors ◽  
Financial Reports ◽  
Industrial Companies ◽  
Occupational Characteristics ◽  
Study Population ◽  
The Impact

This study aims at identifying the extent to which IAS 34 (Interim financial reporting) is applied in the Jordanian public shareholding companies, along with highlighting the impact of its application on individual investors at these companies. Study population consists of all Jordanian public shareholding industrial companies (45 companies) listed at Amman Stock Exchange. Due to the large number of the study population, preparers of financial statements (employees of companies), and individual investors, we have selected a simple random sample. The total number of preparers of financial statements (employees), and individual investors were (500) individuals who were selected for the sample. The results showed that all companies are committed to issue and publish interim financial reports within the period specified for that purpose. There is a statistically significant relationship between the variables relevant to the company including (the firm's nature, profitability, and age) and the compliance with issuing the reports and the information content of the financial statements. Moreover there are statistically significant differences in the extent to which IAS 34 is applied in the Jordanian public shareholding companies. These differences arise due to the personal and occupational characteristics of the preparers of financial statements (gender, age, qualification, position, and experience).

scholarly journals Corporate Frauds, Information Asymmetry and Stock Market Reaction

2019 ◽  
Vol IV (II) ◽  
pp. 126-133
Author(s):  
Sohail Rizwan
Keyword(s):  
Financial Reporting ◽  
Abnormal Returns ◽  
Governance Structure ◽  
Securities And Exchange Commission ◽  
Positive Relation ◽  
Financial Reports ◽  
Stock Market Reaction ◽  
Outside Director ◽  
Financial Misconduct ◽  
Reporting Mechanism

Corporate financial frauds have shaken the investors’ trust in the credibility of financial reports. Given the significance of the association between the quality of governance structure and reliability of financial reporting mechanism, the study evaluates this relation to evidence whether firms accused of financial misconduct improve their credibility. Applying a sample of 63 firms involved in violations of Securities and Exchange Commission of Pakistan (SECP) rules, the study affirms a positive relation between fraud disclosure and successive improvements in governance structure. The study further notices a positive relation between the buy-and-hold abnormal returns and the intensity of increase in outside director percentage after three years of fraud detection. These empirical assertions extend the understanding of the aftereffects of manipulating financial reports. They would be handful to the regulators debating corporate governance rules, to the management when crafting policies to reinstate investors’ trust after fraud revelation, and to the investors while deciding on future investments in these securities.

scholarly journals Environmental issues as a non-financial reporting area using the example of selected companies listed on the Warsaw Stock Exchange

2020 ◽  
Vol 64 (9) ◽  
pp. 45-56
Author(s):  
Hanna Czaja-Cieszyńska
Keyword(s):  
Financial Reporting ◽  
Raw Materials ◽  
Stock Exchange ◽  
Secondary Data ◽  
Environmental Issues ◽  
Financial Indicators ◽  
Financial Reports ◽  
Warsaw Stock Exchange ◽  
Financial Disclosures ◽  
The Impact

The purpose of this article is to assess the comparability of non-financial disclosures on the impact of economic activity on the natural environment in reports of selected companies listed on the Warsaw Stock Exchange. The ten largest listed companies listed in the WIG-20 index were selected for the study. The analysis of the reports was based on the following disclosure categories: Materials and raw materials, Fuels and energy, Water, Biodiversity, Emissions to the atmosphere, Waste and Effluents, and Others. Within these categories, 14 key environmental non-financial indicators were defined. The empirical study carried out confirmed that the non-financial reports analyzed in all of the seven categories of disclosures were not fully comparable. The research methods used were: literature studies, analysis of legal regulations, analysis of secondary data, as well as methods of induction and synthesis.

scholarly journals Media framing of the impact of COVID-19 in nursing homes. A content analysis of the identification and management of the problem

2021 ◽  
pp. 47-76
Author(s):  
Jesús Muyor Rodríguez ◽  
Keyword(s):  
Content Analysis ◽  
Nursing Homes ◽  
Media Framing ◽  
The Elderly ◽  
The Political ◽  
Model Of Care ◽  
Decision Making Capacity ◽  
The Media ◽  
The One ◽  
The Impact

The impact of the COVID-19 pandemic on older people is being especially significant. The nursing homes, in particular, have become a set of enormous relevance. In this context, the media have increased their expansion, being crucial as channels of information. This article analyzes the Spanish press's media treatment on the news that links COVID-19 with residences for the elderly. We are interested in exploring how to perceive and define the COVID-19 pandemic as a social problem in the context of nursing homes. We perform a content analysis, with a qualitative approach, using the NVivo software. A total of 339 news items from the four primary generalist media were analyzed. On the one hand, the main results indicate the predominance of journalistic content that alludes to the failure of residential care as a model of care and protection for the elderly. On the other hand, responsibility for reversing the situation is attributed to the political and institutional sphere, minimizing the centers themselves' decision-making capacity and autonomy.

scholarly journals The Moderating Effect of Gender on Audit Committee Attributes and Earnings Management

2020 ◽  
Vol 7 (3) ◽  
pp. 48
Author(s):  
Usman Abbas
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Moderating Effect ◽  
Ex Post ◽  
Ex Post Facto ◽  
Regulatory Bodies ◽  
The Impact

There exist a number of studies that have been conducted on the influence of audit committee attributes on earnings management but no attention has been given to the moderating effect of gender on audit committee attributes and earnings management. The main objective of this study was to examine the moderating effect of gender on the impact of audit committee attributes on earnings management of listed Agricultural companies in Nigeria for a period of six years (2012-2017). The study used ex-post facto and correlational research designs. The population of the study was the five (5) Agricultural companies in Nigeria listed on the Nigerian Stock Exchange as of 31st December 2017 and all the companies were used as a sample of the study. The study used a panel of multiple regression techniques for data analysis. It was found that gender has a strong and significant influence on the impact of audit committee attributes on earnings management of listed Agricultural companies in Nigeria. It was recommended that the audit committee of companies in Nigeria should comprise of at least 40% of women. Regulatory bodies concerned in Nigeria like Securities and Exchange Commission, Nigerian Stock Exchange and Financial Reporting Council should clearly state the composition of audit committee members and increase the number to ten where women should form 40% of the members of the committee and a woman with financial knowledge should be made the chairperson of the committee since women have shown a significant level of commitment to their responsibilities and contribute in reducing earnings manipulation.

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