scholarly journals Accountability Styles in State-Owned enterprises: The good, the bad, the ugly ... and the pretty

2019 ◽  
Vol 22 (2) ◽  
pp. 156-170 ◽  
Author(s):  
Sonia Royo ◽  
Ana Yetano ◽  
Javier García-Lacalle
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Multidimensional Scaling ◽  
Central Government ◽  
Listed Companies ◽  
Financial Information ◽  
Public Access ◽  
Corporate Websites ◽  
Key Stakeholders ◽  
Website Content

Ensuring public access to the information that State-Owned Enterprises (SOEs) produce is necessary and corporate websites should be used for this purpose. However, there is a lack of research analyzing the accountability of SOEs. This paper aims to identify different accountability patterns among SOEs by carrying out an assessment of the e-disclosure levels of Spanish SOEs. For this purpose, a comprehensive website content analysis of 91 SOEs owned by the Spanish central government was carried out. Each website was analyzed for 60 items classified into 4 dimensions: 1) financial information, 2) information about objectives and strategies, 3) corporate governance and 4) usability. In order to identify different accountability patterns among SOEs, cluster, multidimensional scaling and Pro-Fit analyses were carried out. Results show that e-disclosure practices among Spanish SOEs are still in their infancy. Financial accountability is the main focus of SOEs’ disclosures and most are silent about their policies, objectives and corporate governance structures. The majority of them are still anchored in a narrow accountability style that only considers shareholders as the key stakeholders and they are a long way from fulfilling the OECD recommendation that they should be as transparent as listed companies. Furthermore, results show that enforcement of transparency-related legislation is scarce in Spain. Based on these findings, some recommendations to improve e-disclosure practices among SOEs are suggested. Garantizar el acceso del público a la información que generan las Empresas Públicas (EP) es necesario y las páginas web corporativas deberían utilizarse para lograr este objetivo. Sin embargo, no existen estudios académicos que analicen la rendición de cuentas por parte de las EP. Este trabajo pretende identificar diferentes estilos de rendición de cuentas en las EP, llevando a cabo una evaluación de los niveles de divulgación a través de Internet de las EP españolas. Para lograr este objetivo, se ha llevado a cabo un análisis de 91 EP de titularidad estatal. En cada página web se ha analizado la presencia de 60 atributos clasificados en 4 dimensiones: 1) información financiera, 2) información sobre objetivos y estrategias, 3) gobierno corporativo y 4) facilidad de uso. Para identificar los diferentes estilos de rendición de cuentas se han utilizado análisis cluster, escalas multidimensionales y Pro-Fit. Los resultados muestran que las prácticas de divulgación de información a través de Internet de las EP españolas todavía se encuentran muy poco desarrolladas. La rendición de cuentas de tipo financiero ocupa el principal foco de atención de las EP y en su mayoría no divulgan información sobre sus políticas, objetivos y estructuras de gobierno corporativo. La mayor parte están ancladas en un estilo limitado de rendición de cuentas que solo considera a los accionistas como principales agentes interesados y lejos de cumplir la recomendación de la OCDE de ser tan transparentes como las empresas cotizadas. Además, los resultados muestran que el cumplimiento de la legislación en materia de transparencia es escaso. Sobre la base de estos resultados, se sugieren algunas recomendaciones para mejorar las prácticas de divulgación de información a través de Internet en las EP.

scholarly journals Do audit committee characteristics of Bahraini listed companies have an effect on the level of internet financial reporting?

2016 ◽  
Vol 13 (3) ◽  
pp. 131-147 ◽  
Author(s):  
Sara AbdulHakeem Saleh AlMatrooshi ◽  
Abdalmuttaleb M. A. Musleh Al-Sartawi ◽  
Zakeya Sanad
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Financial Reporting ◽  
Audit Committee ◽  
Positive Relationship ◽  
Listed Companies ◽  
Financial Information ◽  
The Internet ◽  
Regression Test ◽  
The Relationship

Corporate Governance and IFR are influential topics that need to be addressed nowadays due to its importance. Especially since companies are growing and extending globally. This research is conducted in Kingdom of Bahrain through the year 2014, where it investigates the relationship between Audit Committee characteristics as a tool of CG and IFR. Literature review has been conducted, not to mention Multi-regression test was used to evaluate the relationship between Audit Committee characteristics and IFR for Bahraini listed companies. The results have showed that the relationship between Audit Committee characteristics and IFR is negative, which indicates that the Audit committee characteristics have no influence over the disclosure of financial information over the internet. However, Frequency of meeting of the board and Big4 resulted in a positive relationship with internet financial reporting. The study ends with a main conclusion and recommendation that contain certain steps and advices of disclosing financial information in an appropriate way through the internet in order to improve the relationship between Audit committee characteristics and IFR.

Determinants of the Readability and Comprehensibility of Risk Disclosures

2019 ◽  
pp. 216-238
Author(s):  
Jonas da Silva Oliveira ◽  
Graça Maria do Carmo Azevedo ◽  
Augusta da Conceição Santos Ferreira ◽  
Susana Patrícia Henriques Martins ◽  
Cláudia Roberta de Araújo Alves Pinto
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Impression Management ◽  
Management Strategies ◽  
Financial Statements ◽  
Listed Companies ◽  
Risk Information ◽  
Negative Association ◽  
Risk Disclosures

The chapter intends to determine if managers make use of impression management strategies to hide or obfuscate risk disclosures through the analyses of the risk information disclosed by Portuguese non-financial listed companies. A content analysis of the management reports, notes to the financial statements, and corporate governance reports of companies listed at Euronext Lisbon, in the years 2007, 2010, and 2013 was carried out. Findings indicate that the understandability of the risk information is positively associated with the company's size. Results also indicate that there is a negative association between the readability of risk information disclosed and the company's size and industry.

scholarly journals The Effect of Performance and Corporate Governance to Risk Disclosure among Listed Companies in Malaysia

2021 ◽  
Vol 16 (1) ◽  
pp. 119-161
Author(s):  
Ag Kaifah Riyard Kiflee ◽  
◽  
Mohd Noor Azli Ali Khan ◽  
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Annual Report ◽  
Listed Companies ◽  
Board Independence ◽  
Risk Disclosure ◽  
Interaction Variable ◽  
Variable Content ◽  
The Relationship ◽  
Disclosure Practice

The objective of this study was to determine the presence of risk information within the annual report of Malaysian non-financial listed companies and empirically extend the current literature of corporate governance and risk disclosure by incorporating an interaction effect in the model. The study found that listed companies in Malaysia experienced a positive upward trend in terms of risk disclosure practice for 10 years (2008-2017). A total of 166 companies were randomly extracted from Main Board of Bursa Malaysia from 2008 to 2017. This study used content analysis, descriptive statistics and multiple regression to explain the relationship between corporate governance and risk disclosure with the effect of the interaction variable. The study also found positive and significant relationship between board independence, board size and board gender with risk disclosure practice. It is also revealed that attainment discrepancies positively influence the relationship between corporate governance and risk disclosure practices among listed companies in Malaysia. Keywords: risk disclosure, annual report, corporate governance, interaction variable, content analysis

Empirical Evidence on Corporate Governance Impact on CSR Disclosure in Developing Economies

2017 ◽  
pp. 116-137
Author(s):  
Wajdi Ben Rejeb
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Voluntary Disclosure ◽  
Developing Economies ◽  
Negative Impact ◽  
Listed Companies ◽  
Financial Information ◽  
Board Composition ◽  
Csr Disclosure ◽  
Corporate Social

This chapter investigates the influence of the board composition and leadership on Corporate Social Responsibility (CSR) disclosure. The empirical study of 68 Tunisian listed companies and 100 Egyptian listed companies reveals that board independence, foreign directorship, female directorship and state directorship, influence positively CSR disclosure. However, these findings indicate that CEO duality has a negative impact on CSR disclosure. Overall, the findings are consistent with the agency theory as well as the stakeholders theory and suggest that CSR disclosure seems to result from the willingness to meet shareholders' expectations in terms of transparency and voluntary disclosure of non-financial information.

scholarly journals Sustainability Disclosure among Malaysian Shari‟ah-Compliant listed Companies: Web Reporting

2009 ◽  
Vol 3 (2) ◽  
pp. 160 ◽  
Author(s):  
Rapiah Mohammed ◽  
Kasumalinda Alwi ◽  
Che Zuriana Muhammad Jamil
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Web Site ◽  
Listed Companies ◽  
Annual Reports ◽  
Environmental Index ◽  
Sustainability Disclosure ◽  
Governance Index ◽  
Social Environmental ◽  
The Web

This paper advances previous research of sustainability disclosure by focusing on information disclosed in the companies‟ web site rather than through annual reports.  Despite looking at the listed companies in general, this study attempts to consider the practice of disclosing sustainability information in the Malaysian Shari‟ah-Compliant listed companies, which represented 87% of the total listed securities or 64.3% of the market capitalization on Bursa Malaysia web site. This study used Islamicity Disclosure Index consists of Shari‟ah Compliance Indicator,<br />Corporate Governance Index and Social/Environmental Index, and the data is analysed using a content analysis. The results of the study suggest that the sustainability disclosure by Malaysian Shari‟ah-compliant listed companies fall significantly on corporate governance index themes, followed by social/environmental index themes. However, Malaysian  Shari‟ah-compliant listed companies did not clearly disclose the items under Shari‟ah compliance index. Contrary to our expectation, most of the companies disclose the items measured in the annual reports linked to<br />the companies‟ web site and are thus not fully in the web site.<br /><br />

scholarly journals Corporate governance and intellectual capital disclosure. An empirical analysis of the Italian listed companies

2016 ◽  
Vol 13 (2) ◽  
pp. 187-201 ◽  
Author(s):  
Maria Assunta Baldini ◽  
Giovanni Liberatore
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Empirical Analysis ◽  
Intellectual Capital ◽  
Ownership Structure ◽  
Audit Committee ◽  
Listed Companies ◽  
Annual Reports ◽  
Board Composition ◽  
Competitive Position

Intellectual capital (IC) as well as disclosure of information on IC has in recent years gained importance. IC is the key issue in strengthening a firm’s competitive position and in achieving its objectives. The purpose of this study is to investigate some determinants of the disclosure of IC in annual reports. In particular the aim of this research is to analyse the internal mechanisms of corporate governance (board composition, role duality, ownership structure, auditor type and size of audit committee), which influence the intellectual capital disclosure in corporate annual reports for a sample of all listed Italian firms at 31st December 2010. It has been used a disclosure index as a dependent variable, (ICD), and the method used to measure it is content analysis.

Empirical Evidence on Corporate Governance Impact on CSR Disclosure in Developing Economies

2019 ◽  
pp. 878-899
Author(s):  
Wajdi Ben Rejeb
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Voluntary Disclosure ◽  
Developing Economies ◽  
Negative Impact ◽  
Listed Companies ◽  
Financial Information ◽  
Board Composition ◽  
Csr Disclosure ◽  
Corporate Social

This chapter investigates the influence of the board composition and leadership on Corporate Social Responsibility (CSR) disclosure. The empirical study of 68 Tunisian listed companies and 100 Egyptian listed companies reveals that board independence, foreign directorship, female directorship and state directorship, influence positively CSR disclosure. However, these findings indicate that CEO duality has a negative impact on CSR disclosure. Overall, the findings are consistent with the agency theory as well as the stakeholders theory and suggest that CSR disclosure seems to result from the willingness to meet shareholders' expectations in terms of transparency and voluntary disclosure of non-financial information.

scholarly journals The Effect of Corporate Governance Attributes on Audit Quality in Nigeria

2019 ◽  
Vol 8 (4) ◽  
pp. 4882-4886
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Negative Relationship ◽  
Listed Companies ◽  
Financial Information ◽  
Annual Reports ◽  
Board Independence ◽  
And Gender

An excellent relationship between corporate governance attributes and audit quality is another monitoring mechanism that enhances the reliability of financial information. Though, one of the strategies of achieving the qualitative audit is that auditors must be independent of mind and appearance. As such, an active board and audit committee may support in monitoring the reliability of an entity’s audit quality. The objective of this study is to investigate the effect of corporate governance attributes on audit quality for the Nigerian listed companies. The population of the study includes all the companies in the eleven sectors of the economy, excluding the financial sector from 2012-2017. The study used only sixty-three companies as a sample after filtration and screening. The data was obtained from the annual reports and accounts of the selected companies. Multiple regression was carried out in testing the relationships between the dependent and independent variables. The result of the regression highlighted an insignificant negative relationship for board independence and positive significant and negative significant for meetings and gender of the audit committee, respectively. Agency is the main theory employed, which is supported by earnings management theory. Thus, the findings support and contradict the theories. For the implication, this study provides clarification on the contributions of the board independence and audit committee meetings and gender towards the audit quality of the Nigerian listed companies, and this will help the users of the financial information and relevant scholars in literature development.

scholarly journals The relationship between corporate governance and information disclosures: Evidence from the Philippines

2018 ◽  
Vol 15 (4-1) ◽  
pp. 191-200
Author(s):  
Nunthapin Chantachaimongkol ◽  
Shuwen Chen
Keyword(s):  
Corporate Governance ◽  
Southeast Asia ◽  
Audit Committee ◽  
Listed Companies ◽  
The Philippines ◽  
Financial Information ◽  
Corporate Disclosure ◽  
Participation Rates ◽  
New Instrument ◽  
The Impact

This paper aims to investigate the impact of board characteristics and auditors on the disclosure practices of listed companies in the Philippines. This study used a self-constructed research instrument, namely the ASEAN Disclosure Index, to assess the extent of corporate disclosure of 21 the Philippines’ listed companies from 2011-2015, made out of 105 observations. The index covers 212 information items, with three attributes: financial information (76 items), non-financial information (68 items) and strategic information (68 items). An empirical result reports that the result reveals that an audit committee independence is positively significant at 95% level while board size and a number of board meetings held in the year are negatively significant at 95% level. For other variables covering board independence, a number director participation rates, gender diversity, CEO duality, a number of audit committee meetings, a number of audit committee participation rates and quality of external auditors, no significant relationship was found. This study contributes to the literature by offering a new instrument for assessing the extent of corporate disclosure in Southeast Asia region and also providing a novel viewpoint into the relationships between corporate governance mechanisms on information disclosure practices in a context of developing countries like the Philippines. Definitely, the contributed empirical evidence of this study might also help regulators for enhancing the level of corporate disclosure in the Philippines as well as neighboring countries in Southeast Asia region.

Analysis on corporate governance compliance standards in New Zealand – a qualitative study on disclosures using content analysis and interviews

2018 ◽  
Vol 26 (4) ◽  
pp. 505-525 ◽  
Author(s):  
Allan Chang
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
New Zealand ◽  
Listed Companies ◽  
Auditor Independence ◽  
Annual Reports ◽  
Small Country ◽  
Best Interest ◽  
Content Type ◽  
Code Of Corporate Governance

Purpose This paper aims to provide more insights into the standard of corporate governance in New Zealand. The study intends to uncover how a small country with a well-developed economy with a good system of law and order, good institutional set up and law enforcements and implements the principles contained in the FMA’s corporate governance guidelines in practice. Design/methodology/approach The study is a mixed study one where it employs case study content analysis and augmented by conducting interviews. Large companies are selected to ascertain the level of compliance of NZ companies towards their obligations to report on corporate governance practices within the organisation. At the first stage, the study uses content analysis and looks at contents of company annual reports and publications on websites to determine whether they had disclosed as intended by New Zealand’s corporate governance guidelines. Findings The study found that a high compliance was recorded in areas such as board composition and board committees and low compliance recorded in areas involving costly implementation or when the issue is sensitive such as disclosures regarding remuneration details of directors and what non-audit work was undertaken and whether it compromises auditor independence. Being a small country, NZ has performed well in attracting foreign investment due to its strong tradition of law enforcement and respect for regulations. With greater awareness of the importance of corporate governance to investors, companies may see the benefit of greater compliance with the corporate governance guidelines. This is in line with the stakeholder theory and resource dependency theory where companies will voluntarily disclose information on corporate governance, social and environmental performance over and above mandatory requirements to appease and manage their stakeholders. Research limitations/implications The sample size of this study represents 3 per cent of total listed companies in New Zealand, but the sample is approximately 10 per cent of local NZ listed companies (i.e. not dual listed in Australia). There are 36 large companies in the New Zealand stock market with market capitalisation of 1 billion and above. In addition, the companies selected for this study are well-known in New Zealand, and it is acknowledged that this can be a source of bias in my analysis. Practical implications As was revealed during the interviews with company’s senior officials, Australian companies have achieved a higher level of compliance with the code of corporate governance. In this regard, New Zealand will have to step up and follow Australia’s lead to ensure greater compliance with the New Zealand corporate governance principles and guidelines. It would be in the best interest of the company’s stakeholders if full compliance is achieved. Originality/value Studies on the level of compliance by New Zealand companies on their obligations to meet the full extent of disclosures as stipulated by the New Zealand corporate governance guidelines are rare. This study aims to ascertain the standard of corporate governance reporting in New Zealand and the company’s seriousness to comply or attempt to meet the requirements in the seven stipulated principles.

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