147 research outputs found
Developing an accountability disclosure index for Malaysian state Islamic religious concils (SIRCS): quantity and quality / Rosnia Masruki, Khaled Hussainey and Doaa Aly
No full textThis study aims to develop Accountability Disclosure Index (ADI) for Malaysian State Islamic Religious Councils (SIRC), concerning both quantity and quality. In this case, the quality of disclosure items was developed based on the qualitative characteristics, which rely on the International Financial Reporting Standards (IFRS) conceptual framework; namely, relevance, faithful representation, understandability, comparability and timeliness. Each characteristic is scored based on the ‘benchmark’ score, ranging from poor (1) to excellent (5). However, some of the characteristics have been modified to contextualize the SIRC study setting. Both quantity and quality of disclosure items index might contribute to a methodology for analysing and evaluating annual reports. Results show fifty-seven items of disclosure information, which were regarded by stakeholders relevant to be disclosed by SIRC. Indeed, all these disclosure items should be disclosed in SIRC annual reports, so as to meet the expectations of a wide range of stakeholders. With regards to the quality of disclosure, two different sets of qualitative characteristics for non-financial and financial statement disclosure were designed. All five qualitative characteristics were adapted to measure the quality of financial disclosure, whereas for non-financial disclosure, 'timeliness' was dropped due to the voluntarily nature of non-financial disclosure
Developing Accountability Disclosure Index for Malaysian State Islamic Religious Councils (SIRCs): Quantity and Quality
No full textThis study aims to develop an Accountability Disclosure Index (ADI) for Malaysian State Islamic Religious Councils (SIRC), concerning both quantity and quality. In this case, the quality of disclosure items was developed based on the qualitative characteristics, which rely on the International Financial Reporting Standards (IFRS) conceptual framework; namely, relevance, faithful representation, understandability, comparability and timeliness. Each characteristic was scored based on the ‘benchmark’ score, ranging from poor (1) to excellent (5). However, some of the characteristics have been modified to contextualize the SIRC study setting. Both quantity and quality of disclosure items index might contribute to a methodology for analysing and evaluating annual reports. Results show fifty-seven items of disclosure information, which were regarded by stakeholders relevant to be disclosed by the SIRC. Indeed, all these disclosure items should be disclosed in the SIRC annual reports, so as to meet the expectations of a wide range of stakeholders. With regard to the quality of disclosure, two different sets of qualitative characteristics for non-financial and financial statement disclosure were designed. All five qualitative characteristics were adapted to measure the quality of financial disclosure, whereas for non-financial disclosure, 'timeliness' was dropped due to the voluntarily nature of non-financial disclosure
The impact of gender diversity on digital reporting in the USA
No full textThis study aims to examine the impact of gender diversity on the digital reporting practices
of non-financial U.S. firms listed on the S&P 500 index. Our results confirm the proposed hypothesis,
indicating that the presence of female board members improves the levels of digital reporting. This
could relate to the thought that gender diversity may correspond to more extensive discussions within
the boardroom, which leads to better-informed decisions based on greater levels of information
exchange both between the board and other stakeholders and amongst board members themselves.
Our findings provide evidence for policy makers that gender diversity enhances online disclosure and
thus, the transparency of the firm. The findings can be used, also, by corporate governance institutions
to raise awareness of the advantages of having female members on the board. Our study contributes
to the body of literature on both gender diversity and corporate online disclosure by providing new
evidence that gender diversity on the board can improve digital reportingEl propósito de este estudio es examinar el impacto de la diversidad de género en las prácticas de informes digitales de empresas estadounidenses no financieras listadas en el índice S&P 500. Los resultados confirman la hipótesis propuesta, indicando que la presencia de mujeres miembros de la junta mejora el nivel del informe digital. Esto podría estar relacionado con la idea de que la diversidad de género conlleva a debates más extensos en la junta, lo que da lugar a decisiones mejor informadas en base a un mayor nivel de intercambio de información entre la junta y otros participantes y entre los propios miembros de la junta. Los resultados aportan evidencias de que la diversidad de género mejora la divulgación online y, por tanto, la transparencia de la empresa. Los resultados pueden usarse también, por parte de instituciones del gobierno corporativo, para aumentar la conciencia de las ventajas de tener miembros mujeres en la junta. El estudio contribuye a la literatura de diversidad de género y de divulgación de información empresarial online proporcionando nueva evidencia de que la diversidad de género en la junta puede mejorar el informe digital
Expectations of stakeholders on the information disclosure from the Malaysian State Islamic Religious Councils (SIRCs) reporting
No full textA good report should satisfy the expectations of the users based on their need of information. The present study views the users as a wide range of stakeholder groups as the concerned under the banner of public accountability, in which it explicates the right of the public to information about public sector organisations in discharging their accountability. Due to this, public managers are accountable to provide satisfactory information to the public for their actions and inactions to prevent any sanctions. SIRCs are not exempt. This study aims to identify the stakeholders’ expectations of information disclosure from the SIRCs annual reports by conducting an online questionnaire survey. Such annual reports consist of financial and non-financial information, the fact that the annual report is the only single document that can provide information comprehensively about the reporting entity as that commonly practiced among the companies. The findings reveal that both financial and non-financial information disclosure are important. External stakeholders expected more information from the SIRCs’ annual reports than SIRCs themselves. However, on average there is no significant difference in the responses of the disclosure items between internal and external stakeholders. But, there is significant difference across the six sub-stakeholder groups. Strategic information is the only information category significantly different. Nevertheless, comparing means for each of the disclosure item in every category of information, it infers several significant differences in their information expectations. As such, this study can be an avenue for future development of reporting framework to fairly satisfy the expectations of multiple stakeholders specifically for SIRCs in Malaysia yet it might be useful also for other not-for-profit (NPO), charities, religious bodies and public sectors in other countries
The level of risk disclosure in listed banks:evidence from Saudi Arabia
No full textThis study contributes to the existing risk disclosure literature in emerging economies, in particular Saudi Arabia (SA), by examining the levels of risk disclosure in the annual reports of both Islamic and non-Islamic listed banks. This investigation uses a manual content analysis method to examine all Saudi listed banks from 2009 to 2013. This study also develops two holistic risk disclosure indices to measure the levels of risk disclosure in both Islamic and non-Islamic banks. The empirical analysis shows that Islamic banks report less risk information than non-Islamic banks. However, the analysis also reveals that both Islamic and non-Islamic banks report relatively the same amount of risk information regarding the banks’ universal items. Furthermore, the empirical analysis shows that Islamic banks report very low risk disclosure items. The study’s findings have practical implications. They inform the regulators about the current level of risk disclosure in all Saudi listed banks (Islamic and non-Islamic). For example, the findings show that Islamic banks report less risk information than their non-Islamic counterparts. The practical implications for managers from these findings are that in order to keep investors satisfied, banks with low levels of risk disclosure should enhance their reporting practices. This will help investors when making investment decisions. To the best of the researchers’ knowledge, no prior research has previously been conducted on the levels of risk disclosure in Saudi Arabian listed banks. Therefore, this is the first study to examine the levels of risk disclosure in the context of Saudi Arabia
Corporate governance and risk disclosure:evidence from Saudi Arabia
No full textPurpose- This study aims to empirically explore corporate governance and the demographic traits of top management teams as the determinants of voluntary risk disclosure practices in listed banks. This study also aims to contribute to the existing risk disclosure literature by investigating the effect of a combination of determinants on voluntary risk disclosure practices in an emerging market. Furthermore, this study seeks to contribute to risk disclosure theories by employing the upper echelons theory to examine the determinants and their effects on voluntary risk disclosure practices. Design/Methodology/Approach- This investigation uses manual content analysis to measure the levels of risk disclosure in all Saudi listed banks from 2009 to 2013. It also uses ordinary least squares regressions analysis to examine the joint effect of corporate governance and demographic traits on risk disclosure. Results- The empirical findings show that external ownership, audit committee meetings, gender, size, profitability and board size are primary determinants of voluntary risk disclosure practices in Saudi listed banks. The remainder of the independent variables of both corporate governance mechanisms and demographic traits are insignificantly correlated with voluntary risk disclosure practices in Saudi listed banks. This study supports upper echelons theory and further encompasses demographic research into the risk disclosure field. Potential Implications- The empirical findings offer several important implications by reporting to banks’ stockholder, regulatory bodies and any other interested group on the importance of corporate governance and demographic determinants, which can be used to augment risk reporting in the banking industry. This study also backs upper echelons theory and encourages further demographic research into the risk disclosure field. Originality- To the best of the researcher’s knowledge, no prior research has been conducted on the determinants of risk disclosure in Saudi Arabian listed banks. Therefore, this is the first study to investigate the determinants of risk disclosure in the context of Saudi Arabia
Determinants of corporate internet reporting: evidence from Egypt
No full textPurpose – The purpose of this paper is to examine the potential factors that may affect the level of corporate internet reporting by Egyptian listed companies.
Design/methodology/approach – The content analysis approach to examine the information cited by the largest Egyptian companies is used in their web sites. The paper modifies and uses the disclosure index of Xiao et al. Ordinary least square multiple regression analysis is used to examine the determinants of the internet reporting.
Findings – It is found that 56 per cent of Egyptian companies report a significant portion of information on their web sites. In addition, the paper finds that some financial characteristics explain the variation in the degree of internet reporting between Egyptian listed companies. In particular, profitability, foreign listing and industrial type (communications and financial services) are the determinants of the amount and presentation formatting of information disclosed on Egyptian companies' web sites. However, other firm characterises, such as firm size, leverage, liquidity and auditor size, do not explain corporate internet reporting.
Practical implications – The research finding is essential as it assists in informing regulators about the characteristics of Egyptian companies that are, and are not, satisfying national and international investors' demand of updated/online information. It also assists current and potential stakeholders to know the drives of corporate internet reporting in Egypt. Consequently, they may further investigate and verify such reporting practices. In practice, online reporting can be used as an effective tool for improving stakeholders' decision-making process. Therefore, further research can be undertaken to examine the degree to which online reporting provides value-relevant information for stakeholders.
Originality/value – To the best of the knowledge, there is no study examining the potential drivers of internet corporate reporting practice in Egypt. This paper is the first to examine the potential factors affecting corporate internet reporting in Egypt. The disclosure index used is designed to be suitable for companies working in the Egyptian environment
Corporate governance and financial reporting quality: a comparative study
No full textThis paper aims to investigate the impact of corporate governance on financial reporting quality (FRQ) in Pakistan and the UK.
In this paper, three accrual-based models are used to analyse FRQ for a sample of 1,550 firm-year observations, including 78 Pakistani firms and 77 UK firms, for the period 2009–2018.
The analysis shows that board size has a negative impact on FRQ while foreign ownership has a positive impact for Pakistani and UK firms. It also shows that board independence has a positive impact on FRQ of Pakistani firms, while board meetings frequency and audit committee independence have a negative impact. We make no such observation for UK firms. In addition, the analysis shows that board gender diversity and ownership concentration negatively affect FRQ of UK firms. This study makes no such observation for Pakistani firms.
Due to the study’s focus on Pakistani and UK firms, the findings may not be generalizable to other developed and emerging economies.
The findings provide valuable insight to policymakers, regulators and investors by suggesting that the impact of board composition on FRQ of both Pakistani and UK firms is weak. The findings suggest that board size and foreign ownership are the attributes that require regulatory focus to increase FRQ. The negative impact of audit committee independence on FRQ induces rethinking among the policymakers in Pakistan and calls for fully independent audit committees.
To the best of the authors’ knowledge, this is the first research endeavour to compare the context of a developed and an emerging economy regarding the impact of corporate governance on FRQ. It also contributes to the governance literature by using three measures of FRQ and a comprehensive set of corporate governance attributes
Value relevance of voluntary risk disclosure levels:evidence from Saudi banks
No full textThis study seeks to examine whether the levels of voluntary risk disclosure in Saudi listed banks are valuerelevant
or not. The sample of this investigation consists of all banks listed on the Saudi Stock Market
Exchange (Tadawul). All data was collected from the annual reports of the sample banks from 2009 to
2013 using manual content analysis. Other variables were collected using DataStream and Bloomberg.
Ordinary least squares regressions analysis was used. The findings of the multivariate analysis
demonstrated that there is no association between the levels of voluntary risk disclosure and firm value as
measured by the market to book value at the end of the year (MTBV). But, the results generate from the
accounting based measure (ROA) show that there is a positively significant association between the levels
of voluntary risk disclosure and firm value. This study contributes to the literature on general accounting
disclosure and in particular advances and contributes to the literature on risk disclosure in developing
economies. It also contributes to the understanding of the role of accounting information in relation to the
market valuation of a firm. The empirical findings of this study have several implications for banks’
investors, regulatory bodies and any other interested group as they report the importance of corporate risk
disclosure and its economic consequences. This can be used to increase the value relevance in the banking
sector. This study also informs regulators about the current level of risk disclosure in all Saudi listed
banks. To the best of the researcher’s knowledge, no prior research has been conducted on the relationship
between firm value and levels of risk disclosure in general nor especially in emerging markets, such as
Saudi Arabia, the focus of this study
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