Environmental disclosure practice in the Serbian banking sector

This paper aims to: a) analyse the environmental disclosure practice in the Serbian banking sector, b) determine whether the degree of disclosure is higher in the case of big, i.e. systemically important banks, and c) examine if there is a positive relationship between the banks' CSR practice and their financial performance. The environmental disclosure index (EDI) based on 15 variables was employed to measure environmental disclosure performance for the Serbian banking industry. The data were generated through content analysis of the annual and sustainability reports of a total of 10 banks, five of which were classified as systemically important banks for the period 2015-2019. The sample was determined by the availability of reports for the analysed period and the bank establishment year. The results show that the majority of Serbian banks discloses their environmental policy (74%), the undertaken environmental activities with the local community (51%), and the utilization efficiency of water, energy, and paper (48%). Although the findings indicate that the environmental disclosure practice among all banks in Serbia is growing, the reports are not standardized. In addition, the systemically important banks in Serbia do not have a better disclosure practice. The econometric analysis implies that the bank's status does not influence the level of environmental disclosure and that there is no positive relationship between financial performance (ROA and ROE) and EDI. This study has implications for policymakers and accounting bodies in Serbia in standardizing non-financial reporting and creating certain green and sustainable banking guidelines.

Integrated reporting disclosure in Malaysia: regulations and practice

Purpose Integrated reporting (IR) is a new trend in corporate reporting that has spread rapidly in recent years for disclosing financial and non-financial information. This study aims to assess the status of the current regulations and the trends in IR disclosure practice in an emerging market, Malaysia, by providing a comparative analysis of the IR disclosure level (IRDL) and IR disclosure quality (IRDQ). Design/methodology/approach The current study has developed a comprehensive IR disclosure index based on the international integrated reporting framework (IIRF), which comprises 100 items divided into four categories (background, assurance and reliability, content and form). The data were collected from annual reports of companies listed on the Bursa Malaysia over the three years 2017 to 2019, based on 267 observations. Content analysis technique was used to evaluate and measure IRDL and IRDQ. Descriptive analysis was performed to provide the background statistics of the variables examined. Findings IR regulations are at an early stage, and IR adoption is still voluntary in the Malaysian market. Only 267 Malaysian company-year observations during the years 2017–2019 have adopted IR techniques. However, descriptive analysis results showed that Malaysian companies have moved towards the preparation of IR consistent with the IIRF. The findings indicate a significant increase in both IRDL and IRDQ over this period, after the recent recommendation by the Malaysian code of corporate governance (2017) on adopting IR. Further, the results show statistically significant differences in the mean of IRDL and IRDQ between large and small companies. Practical implications These results are important for regulators and policymakers in articulating new IR legislation in an emerging market and for corporate entities and investors in shaping their understanding of IR disclosure practice in the Malaysian institutional context. Originality/value To the best of the researchers’ knowledge, the study is among the first to address the IR regulation status and practice in Malaysian companies. It also established a comprehensive index for measuring IRDL and IRDQ based on the IIRF. The results add to the meagre descriptive literature on IR practice by providing comprehensive insights into IR practice from the perspective of an emerging country.

A systematic approach to the disclosure of genomic findings in clinical practice and research: a proposed framework with colored matrix and decision-making pathways

Background Whether and how to disclose genomic findings obtained in the course of genomic clinical practice and medical research has been a controversial global bioethical issue over the past two decades. Although several recommendations and judgment tools for the disclosure of genomic findings have been proposed, none are sufficiently systematic or inclusive or even consistent with each other. In order to approach the disclosure/non-disclosure practice in an ethical manner, optimal and easy-to-use tools for supporting the judgment of physicians/researchers in genomic medicine are necessary. Methods The bioethics literature on this topic was analyzed to parse and deconstruct the somewhat overlapping and therefore ill-defined key concepts of genomic findings, such as incidental, primary, secondary, and other findings. Based on the deconstruction and conceptual analyses of these findings, we then defined key parameters from which to identify the strength of duty to disclose (SDD) for a genomic finding. These analyses were then applied to develop a framework with the SDD matrix and systematic decision-making pathways for the disclosure of genomic findings. Results The following six major parameters (axes), along with sub-axes, were identified: Axis 1 (settings and institutions where findings emerge); Axis 2 (presence or absence of intention and anticipatability in discovery); Axis 3 (maximal actionability at the time of discovery); Axis 4 (net medical importance); Axis 5 (expertise of treating physician/researcher); and Axis 6 (preferences of individual patients/research subjects for disclosure). For Axes 1 to 4, a colored SDD matrix for genomic findings was developed in which levels of obligation for disclosing a finding can be categorized. For Axes 5 and 6, systematic decision-making pathways were developed via the SDD matrix. Conclusion We analyzed the SDD of genomic findings and developed subsequent systematic decision-making pathways of whether and how to disclose genomic findings to patients/research subjects and their relatives in an ethical manner. Our comprehensive framework may help physicians and researchers in genomic medicine make consistent ethical judgments regarding the disclosure of genomic findings.

Factors Influencing the Extent and Quality of Corporate Social Responsibility Disclosure in Indonesian Shari’ah Compliant Companies

This study aims to assess the extent and quality of corporate social responsibility (CSR) disclosure practices of Shari’ah Compliant Companies (ShCCs) in Indonesia. Further, the study examines the factors influencing the extent and quality of CSR disclosure of ShCCs in Indonesia. A checklist comprising of 33 items was constructed to measure the extent and quality of disclosure. Using data from the year 2014 annual reports of 100 ShCCs in Indonesia, the results showed that the extent and quality of CSR disclosure among ShCCs in Indonesia were low with more than half of the sample companies scored less than 50% for extent of disclosure and all sample companies scored less than 50% for quality of disclosure. The multiple regression analysis revealed that award and leverage had an impact on the extent and quality of CSR disclosure. The findings indicate the need for improvement in the disclosure practice in annual reports of ShCCs. The relevant regulatory authority may issue guidelines and monitor companies’ compliance to the guidelines to assist companies in enhancing CSR disclosure. Continuous and concerted efforts by the regulatory authority and ShCCs are necessary to ensure achievement of social transparency and accountability. This in turn may propel the development of Islamic capital market to the next level.

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

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

Environmental accounting disclosure practices of quoted manufacturing companies in Nigeria

The study assessed the level of environmental disclosure practice of manufacturing companies in Nigeria. Anchored on the legitimacy theory, the ex-post facto research design was adopted by the study. The sample was drawn from the population of sixty quoted manufacturing companies on the floor of the Nigerian Stock Exchange as at 31 December, 2017 using the judgmental sampling technique. The study variables were sourced from the annual reports and the stand-alone environmental reports of the selected companies from 2007-2017. The Global Reporting Initiative (GRI) environmental disclosure index was adopted in assessing the disclosure practice of the companies over the years. The findings showed that the environmental disclosure practice of the quoted manufacturing companies was low in the areas of material, energy, emissions, effluent and waste, water and biodiversity. A good number of the manufacturing companies disclosed very well the theme “others” in the area of environmental expenditure and investment. The study further observed a non-significant statistical difference in the disclosure practice of manufacturing companies over the years (t = -1.440, p = .223). The study concluded that there exists no significant difference in the level of environmental disclosure practice of manufacturing companies in Nigeria from 2007 to 2017.

Governance Vis-à-Vis Investment Efficiency: Substitutes or Complementary in Their Effects on Disclosure Practice

Prior studies provide evidence that both corporate governance and corporate investment efficiency affect corporate disclosure practice. In this paper, we examine their joint effect on disclosure. In particular, we examine whether corporate governance quality and corporate investment efficiency act as substitutes or complements in their impact on narrative disclosure. We collect disclosure scores from Lancaster University’s Corporate Financial Information Environment (CFIE) website for a sample of non-financial UK companies for the period 2007–2014. We regress measures of corporate governance and corporate investment efficiency on two different proxies of disclosure practice (performance commentaries disclosure and the tone of narrative disclosure). Consistent with prior studies, we find that both governance and investment efficiency affect disclosure. We contribute to narrative disclosure studies in two crucial respects. First, we provide empirical evidence that governance and investment efficiency has a complementary effect on performance commentaries disclosure. Second, we contribute to the disclosure tone literature by providing empirical evidence that both governance and investment efficiency have a substitution effect on the tone of narrative disclosure.

Disclosure of Human Capital Practices

The objective is to assess the disclosure practices of human capital in the banking sector of the Gulf Council Countries. This study aims to assess the level and quality of human capital disclosure and to investigate the consistency among countries. The study investigates the human disclosure practice of eight banks from each the six gulf countries with a total of 48 banks out of the 56 national banks over five years. The paper develops the variables of the disclosure index based on long discussion with professional and researchers. The disclosure index is computed for each variable for all banks under the sample. Compensation comes as the most disclosed variable with an average score of 2.87 Whereas knowledge is the least disclosed variable with an average score of 0.75. The Bahrain banks score the first level of disclosure with a disclosure score of 391, followed by UAE, Qatar, and Kuwait.

Foreign expertise in stress testing of the banking sector and the possibility to adapt it to the Russian practice

Subject. Designated to measure the resilience of a financial system to stress in the real economy, spillover effects within the system and their induction, macroprudential stress testing is essential to the systemic risk assessment. Objectives. We examine the foreign expertise in stress testing of the banking sector and the possibility to adapt it to the Russian practice. Methods. The study is based on methods of analysis, comparison and systematization of the data collected. Results. We conducted a comparative analysis of the best foreign practices of stress testing in banking and evaluated whether it could be adapted to the Russian practice. Conclusions. Foreign stress testing practices are distinctive as the development level of financial markets and methodology of stress testing are different. The Basel Committee is a pivot in the development of principal approaches, which subnationally sets up the way the mechanism evolves. It is generalizing and analyzing regulators' practices in the leading countries. The stress testing methodology of the Central Bank of Russia is compliant with the Basel recommendations, with its quality being highly recognized under part of the IMF FSAP. The approach will help the Central Bank make stress testing more precise. It is reasonable to adapt some foreign practices, such as a stress testing horizon to be extended from a year up to 3–5 years; the use of dynamic balance sheets of banks to predict knock-on effects and an inverse reaction; the preparation of research and cyclical scenarios; the Central Bank's disclosure practice to be applicable to a greater audience; stress testing of the mala fide behavior risk.

The Impact of the CEO's Personal Narcissism on Non-GAAP Earnings

Non-GAAP earnings provide managers the flexibility to exclude GAAP items to either produce a more informative performance measure or provide them the ability to opportunistically exclude recurring expenses from non-GAAP earnings. Prior literature examines the use of this form of disclosure at the firm level, although it is ultimately management's decisions. We extend prior non-GAAP literature by examining whether the use and quality of non-GAAP earnings is influenced by CEO personality traits; namely CEO narcissism. We find narcissistic CEOs are more likely to exclude expenses from non-GAAP earnings and that the magnitude of exclusions is greater. We also find that those non-GAAP exclusions are more persistent, and thus lower quality. Our results shed light on the disclosure practice of non-GAAP earnings and show how narcissistic CEOs are more likely to take advantage of the discretion in financial reporting disclosures in order to benefit the firm and themselves.