Value Relevance of Integrated Reporting using a Novel Approach: Comparative Cross Country Evidence of Mandatory and Voluntary Implementers

<p>This thesis examines the value relevance of accounting information under integrated reporting (IR) in a comparative mandatory and voluntary setting. A meta review is conducted of all published work focusing on integrated reporting since 2011, which provides detailed insight into the gaps in the IR literature. Multiplicative log-linear model is used in measurement, which is a novel technique that mitigates the shortcomings of traditional value relevance models. The findings show that value relevance of summary accounting information increases after the implementation of IR in the mandatory setting. In the voluntary setting, market effect and the existing reporting paradigm effect the value relevance of accounting information under IR. If the market is large and existing reporting requirements are robust voluntary adoption of IR has minimal to no effect. However, in smaller markets with less rigorous reporting environment, adoption of IR does result in increased value relevance of accounting information. Compared to traditional models, the multiplicative model provides estimates that are more stable over time and shows better explanatory power. Overall, the findings of this thesis show that capital providers value the information content of IR under specific circumstances. This thesis contributes to the IR and value relevance literature by providing the first comparative cross-country evidence of the effect of IR in the change in value relevance of reported accounting information. It provides policy relevant input to the standard setters of IR by demonstrating the effect of IR in the decision usefulness of summary accounting information. The thesis further provides robust evidence of the efficacy of using the multiplicative log-linear model in measuring value relevance instead of the traditional linear additive models.</p>

Value Relevance of Integrated Reporting using a Novel Approach: Comparative Cross Country Evidence of Mandatory and Voluntary Implementers

<p>This thesis examines the value relevance of accounting information under integrated reporting (IR) in a comparative mandatory and voluntary setting. A meta review is conducted of all published work focusing on integrated reporting since 2011, which provides detailed insight into the gaps in the IR literature. Multiplicative log-linear model is used in measurement, which is a novel technique that mitigates the shortcomings of traditional value relevance models. The findings show that value relevance of summary accounting information increases after the implementation of IR in the mandatory setting. In the voluntary setting, market effect and the existing reporting paradigm effect the value relevance of accounting information under IR. If the market is large and existing reporting requirements are robust voluntary adoption of IR has minimal to no effect. However, in smaller markets with less rigorous reporting environment, adoption of IR does result in increased value relevance of accounting information. Compared to traditional models, the multiplicative model provides estimates that are more stable over time and shows better explanatory power. Overall, the findings of this thesis show that capital providers value the information content of IR under specific circumstances. This thesis contributes to the IR and value relevance literature by providing the first comparative cross-country evidence of the effect of IR in the change in value relevance of reported accounting information. It provides policy relevant input to the standard setters of IR by demonstrating the effect of IR in the decision usefulness of summary accounting information. The thesis further provides robust evidence of the efficacy of using the multiplicative log-linear model in measuring value relevance instead of the traditional linear additive models.</p>

Assessment of the effect of a comprehensive chest radiograph deep learning model on radiologist reports and patient outcomes: a real-world observational study

ObjectivesArtificial intelligence (AI) algorithms have been developed to detect imaging features on chest X-ray (CXR) with a comprehensive AI model capable of detecting 124 CXR findings being recently developed. The aim of this study was to evaluate the real-world usefulness of the model as a diagnostic assistance device for radiologists.DesignThis prospective real-world multicentre study involved a group of radiologists using the model in their daily reporting workflow to report consecutive CXRs and recording their feedback on level of agreement with the model findings and whether this significantly affected their reporting.SettingThe study took place at radiology clinics and hospitals within a large radiology network in Australia between November and December 2020.ParticipantsEleven consultant diagnostic radiologists of varying levels of experience participated in this study.Primary and secondary outcome measuresProportion of CXR cases where use of the AI model led to significant material changes to the radiologist report, to patient management, or to imaging recommendations. Additionally, level of agreement between radiologists and the model findings, and radiologist attitudes towards the model were assessed.ResultsOf 2972 cases reviewed with the model, 92 cases (3.1%) had significant report changes, 43 cases (1.4%) had changed patient management and 29 cases (1.0%) had further imaging recommendations. In terms of agreement with the model, 2569 cases showed complete agreement (86.5%). 390 (13%) cases had one or more findings rejected by the radiologist. There were 16 findings across 13 cases (0.5%) deemed to be missed by the model. Nine out of 10 radiologists felt their accuracy was improved with the model and were more positive towards AI poststudy.ConclusionsUse of an AI model in a real-world reporting environment significantly improved radiologist reporting and showed good agreement with radiologists, highlighting the potential for AI diagnostic support to improve clinical practice.

The Transformation of Government Accountability and Reporting

ABSTRACT This paper advocates for a drastic transformation of government accountability and reporting. With the availability of Big Data and the advancement of technologies, the existing government reporting schema fails to meet the public's increasing demand for accountability. We discuss the need for the government to reform its reporting schema and prescribe potential paths toward a data-driven, analytics-based, real-time, and proactive reporting paradigm. We conceptualize an app-based continuous monitoring and reporting environment that is real-time, structured, future-oriented, and that incorporates non-financial information like ESG and infrastructure. This reformed reporting paradigm highlights the expected role of government reporting: to provide accountability to the public.

Nonfinancial Measures and Fraud Risk:Evaluating Investors’ Reactions to Greater Transparency

We examine whether increased transparency in the comparison of financial measures and nonfinancial measures (NFMs) influences nonprofessional investors’ reactions to the risk of fraudulent financial reporting. We consider a comparison of key financial measures and NFMs to be transparent when the relevant information is presented in close proximity and formatted to provide an easy comparison of the individual measures. We manipulate the presence of an NFM red flag and the transparency of the comparison of financial measures and NFMs. We find that when the NFM red flag is present (i.e., higher fraud risk) and transparent, investors choose lower investment levels. However, without increased transparency, as is typical in the current reporting environment, we observe that investors are more likely to increase their investment levels in firms with elevated fraud risk. Additionally, we observe that the effect of transparency on investment levels is driven by investors with greater investing experience.

Enterprise Resource Planning Systems and XBRL Reporting Quality

Enterprise resource planning (ERP) systems are indispensable for a majority of larger and midsize firms, and have changed the way accounting information is collected, stored, processed, and disseminated. Although most ERP systems integrate an eXtensible Business Reporting Language (XBRL) component in their core modules, little research has examined how ERP systems affect the quality of XBRL filings. Using unique data from branch-level ERP implementation, we find that the degree of ERP adoption among a firm’s branches is negatively associated with the firm’s XBRL filing errors and positively associated with XBRL reporting comparability, which in turn facilitates external users’ access to the firm’s XBRL filings in the SEC’s EDGAR. These results suggest that ERP systems improve XBRL reporting quality. Moreover, our results indicate that ERP can mitigate the negative effect of extension taxonomies on XBRL reporting quality, which highlights the importance of the ERP system in a complicated XBRL reporting environment.

Visual Arts and Digital Technologies

With the advent and dissemination of digital technologies, devices and means in the middle of the twentieth century, dramatic changes occurred in all spheres of life. The data reporting environment is changing and the era of new media is approaching. Digital technologies and the global network have a fundamental impact on culture, traditions and art. In this context, in terms of visual art, digital technologies allow for the emergence of new artistic practices that take their place next to classical art activities. Leading the way is the idea that digital technology is not just a tool, but rather a creation process, thus focusing on the concept inspired by the digital context rather than on the means expressed. In modernity, visual art and scientific achievements live in harmony. Keywords: Digital Art; Art; Virtual Reality (VR); Technological Innovations; Net Art; Artificial Intelligence (AI); New Media Art

Non-GAAP Disclosures and CEO Pay Levels

We examine the association between CEO cash and equity compensation and non-GAAP disclosure practices in a responsive regulatory and opaque compensation reporting environment. Our empirical evidence, based on a sample of public companies in New Zealand, shows that CEO cash compensation is associated with the likelihood and frequency of non-GAAP disclosures, whereas equity incentives are not. Our results document evidence of an increase in the frequency of non-GAAP disclosures and a decrease in the provision and quality of reconciliation between non-GAAP measures and closely related GAAP measures around CEO cash compensation. In particular, managers use these disclosures when their GAAP earnings benchmarks are missed. A marginal decrease in opportunistic non-GAAP disclosures following the adoption of the International Financial Reporting Standards (IFRS) indicates little change in reporting behavior following adoption of IFRS. Our findings suggest that managers disclose non-GAAP measures with opportunistic intentions motivated by compensation and points to the need for regulators to set policy about clear reconciliation standards.

Corporate disclosure in a voluntary reporting environment: NYSE-listed firms in 1900

This paper examines the financial reporting done by firms listed on the New York Stock Exchange in 1900 and the firm characteristics that determined what and how much firms would disclose. At this time, there were no federal disclosure mandates or stringent requirements imposed by the Exchange. Therefore, the reporting done by firms was largely voluntary and resulted in significant variation across companies and industries. I look at all 191 firms that listed stocks on the NYSE in this year and use data from Moody’s Manual of Industrial and Miscellaneous Securities and Poor’s Manual of the Railroads of the United States to determine the amount of financial disclosure. I find that more capital-intensive firms were more likely to report income statements and balance sheets and provided more volume of information. In addition, food, mining, and miscellaneous service firms disclosed the least. In addition, all else equal, the age of a company and offering preferred stock did not significantly increase its likelihood of reporting financial statements. Overall, the results indicate that even absent regulation, firms would voluntarily provide information but at varying degrees based on how much the company relies on outside investors and whether its industry is competitive. They also suggest that managers considered potential or explicit investor demand for financial information and responded to this demand.