Corporate Financial Reporting Research Articles

Ensuring the performance of external communications: An informal classification of target groups

The increasing influence of the investment community on business sustainability highlights the need for a compre hensive understanding and accurate segmentation of this audience. The research aims to identify consistent criteria for intra group differentiation in the perception of financial reporting information among members of various stakeholder groups in or der to improve the performance of external communications management. Methodologically, the study rests upon stakeholder theory, which is supported by expert assessments, structural-logical analysis, and multidimensional discriminant analysis. The study draws on authentic data of a survey on the quality of corporate reporting information conducted in the fourth quarter of 2020 among 52 representatives of the Russian business. The research identifies motivationally-rooted statistically significant discrepancies in the probability of correlating some survey participants with their functional group formed on a formal basis. We discuss the relevant criteria for an informal division of respondents into groups based on subjective judgments about qualitative characteristics of corporate financial reports. These criteria include variations in estimates of complexity of reporting standards and functionality of cost indicators based on the concept of fair market value. The revealed criteria for motivational and func tional identification within stable subgroups of financial statement users formed within functional groups represents the scien tific novelty of this study. The results contribute to a deeper understanding of the relevant criteria for the group structure of the investment community, which constitutes the target audience for corporate reporting. These findings can be utilized to refine the formal classification of users of reporting information, as well as to adjust other components of corporate management systems with the aim of enhancing the effectiveness of external communications.

The Interconnectedness of Earnings Management, Corporate Governance Failures, and Global Economic Stability: A Critical Examination of the Impact of Earnings Manipulation on Financial Crises and Investor Trust in Global Markets

This study critically examines the interconnectedness of earnings management, corporate governance failures, and their impact on global economic stability and investor trust. Focusing on the Enron (1993–1995) and Wirecard (2015–2019) scandals, the research identifies key financial and governance indicators that contributed to these collapses, including CEO duality, weak board oversight, and manipulated financial reporting. Data for the analysis were drawn from corporate financial reports, macroeconomic indicators sourced from the World Bank, and stock market data from MarketWatch. Financial ratio assessments and regression models reveal a statistically significant negative relationship between GDP growth and abnormal returns for Enron (p = 0.014), while inflation had a strong positive impact on abnormal returns in both cases (p < 0.001). Time series analysis was applied to assess the macroeconomic consequences of corporate collapses on global financial markets. The findings demonstrate how declining GDP growth and rising inflation amplify market responses to governance failures. Recommendations include enhancing corporate governance frameworks, intensifying regulatory enforcement, and fostering global regulatory cooperation to safeguard financial markets and restore investor trust.

Impact of AI Applications on Corporate Financial Reporting Quality: Evidence from UAE Corporations

The research aims to identify the use of artificial intelligence applications as a pivotal technology to improve the quality of financial reports in UAE Corporations, as these applications help process and analyze data quickly and accurately. the problem of the study was the lack of confidence and credibility in the quality of financial reports in Corporations through some fictitious transactions that can affect the profits or losses of those Corporations. due to the effective role provided by artificial intelligence systems in the massive and rapid analysis of data, it was necessary to use these applications and employ them to enhance confidence in financial reports and achieve their quality, the study used Partial least squares (PLS) software in the analysis of the study came to the following conclusions: There is a statistically significant relationship between the use of artificial intelligence applications (AIA) and the quality of financial reporting (QFR) in UAE business Corporations, The study also came up with the following recommendations: The need to highlight the importance of artificial intelligence applications in business Corporations within the UAE, by developing the role of their applications in carrying out various routine and complex tasks and activities

On the EPA's Radar: The Role of Financial Reports in Environmental Regulatory Oversight

ABSTRACTThis paper investigates the role of corporate financial reports in the Environmental Protection Agency's (EPA) regulatory activities. By tracking the EPA's direct retrieval of SEC filings, we identify three key findings. First, the EPA retrieves a large volume of financial reports, especially from firms in high‐pollution industries. Second, the EPA is more likely to access financial reports during enforcement investigations and significant rule proposals, but less so during compliance monitoring, with patterns varying predictably across firms. Third, the EPA's reliance on financial reports is potentially driven by its demand for information on firm liquidity, solvency, and profitability. Overall, our study highlights the usefulness of financial reports for the EPA as an environmental regulator.

The Comparative Analysis of The Financial Performance of PT Pertamina Geothermal Energy Tbk Before and After Initial Public Offering

This study aims to compare PT Pertamina Geothermal Energy Tbk (PGEO) financial performance in conditions before and after the Initial Public Offering (IPO). The method used in this study is a descriptive research method with a quantitative approach, using secondary data, namely the Corporate Financial Report 2020-2023. Measuring a company's financial performance uses the liquidity ratio, activity ratio, solvency ratio, and profitability ratio. The results of the study indicate that the company's performance tends to be better after the IPO compared to the performance before the IPO, both in terms of liquidity, activity, solvency, and profitability.

Accounting for Society: Examining the Interplay between Financial Reporting and Social Responsibility

Purpose: This research explores the intersection of financial reporting and social responsibility by integrating Environmental, Social, and Governance (ESG) metrics into corporate financial reports. It aims to assess how sustainability reporting frameworks impact transparency and stakeholder engagement in the corporate sector. Research Design and Methodology: Utilizing a systematic literature review and interpretive analysis, this study examines existing theoretical and empirical literature to understand the evolution of financial reporting frameworks towards incorporating social responsibility. An interpretivist approach through thematic analysis identifies key patterns and insights. Findings and Discussion: The results show a significant paradigm shift in financial reporting, with an increasing inclusion of ESG metrics alongside traditional financial information. This change is driven by regulatory requirements and stakeholder demand, focusing on enhanced transparency and accountability. Challenges like greenwashing and the authenticity of social responsibility claims persist, affecting standardization and data assurance. Implications: The findings emphasize the need for more robust, standardized reporting frameworks to boost the credibility and comparability of sustainability reports. Highlighting corporate accountability, the study suggests that merging financial reporting with social responsibility is vital for future research, especially regarding its impact on corporate reputation and stakeholder relations.

MANAJEMEN LABA PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BEI PERIODE 2020-2022 MELALUI PROFITABILITAS, LEVERAGE, DAN UKURAN PERUSAHAAN

This analysis, which is a causal study, attempts to assess how three variables—firm size, profitability, and leverage—affect profits management strategies. The firm's total assets serve as a proxy for the firm size variable, while the debt-to-asset ratio (DAR) indicates leverage and return on assets (ROA) indicates profitability. Discretionary accruals are used to measure the management of earnings. The corporate financial report data used in this quantitative study approach was sourced from the Indonesia Stock Exchange (IDX) website. The mining businesses that were listed on the IDX between 2020 and 2022 made up the study's population. Purposive sampling was used in the sample selection process, yielding eight organizations as study samples with an observation length of three years. With the aid of the Statistical Package for Social Sciences (SPSS) version 22, multiple linear regression analysis was employed in this study's hypothesis testing. Descriptive statistical tests, traditional assumption tests (including multicollinearity, autocorrelation, heteroscedasticity, and normality tests), and hypothesis testing are all a part of the analysis process. The findings of the ANOVA test demonstrate that variables related to leverage, profitability, and company size all influence profits management strategies. Individual study findings, however, indicate that while firm size has no appreciable impact on earnings management, profitability and leverage do have a favorable and significant impact. 
 Keywords: Profitability, Leverage, Company Size and Earnings Management

Impact of dividend policy on earnings management and the moderating effect of the board of directors and the audit committees: The French case

Research Question: To what extent can governance mechanisms (audit committee and board of directors) affect the relationship between dividend policy and earnings management? Motivation: The majority of the literature has showed that dividend policy can influence earnings management. However, the empirical results did not lead to the same results. Our study seeks to fill this gap by examining whether this impact can vary by taking into account certain moderating variables such as: the size of the board of directors, the number of board meetings, the independence and expertise of the members of the audit committees. Idea: This study examines the moderating effect of certain variables related to the effectiveness of the board of directors and the audit committee on the impact of the dividend policy on earnings management. Data: The authors selected French non-financial companies listed on the CAC All Tradable index during the 2008-2015 period. Tools: To test study’s hypotheses, the authors applied linear regression with a panel data using the datastream database. Generalized least squares method is used to estimate the models. Findings: The results of this study show that the effect of the dividend policy on earnings management is more favorable in the case of companies where the board of directors is large. Contribution: This study shows that dividend policy constitutes an objective of earnings management especially in the companies with boards made up of a large number of directors. Investors and academics have an interest in better understanding the concepts: dividend policy and earnings management because the debates relating to these two variables have always been the subject of controversy. Thus, they can refer to corporate dividend policy as a mechanism for assessing the authenticity of corporate financial reports.

Why Green IC does not Influence Firm Value?

The study’s objective is to examine the effects of green intellectual capital on Tobin's Q in relation to firm value calculations. The study took place during the period from 2019 to 2022. It focused on companies in Energy, Transportation and Logistics, and Industry listed on the Indonesia Stock Exchange’s main board. Secondary information from corporate financial statements and sustainability reports or annual reports are used in this research. A purposive sampling method was used for sample selection to obtain 183 observations and the test using multiple regression analysis. The study result shows that green human capital, green structural capital, and green relational capital do not influence firm value simultaneously. Companies must fully manage their intellectual capital with maximum attention to the environment to influence firm value.

Fair Value Measurement and Financial Reporting Quality of Insurance Business in Lagos State

The financial reporting qualities provides objective information that is useful to analysts in evaluating the financial soundness and prospect of a company. This paper attempts to examine the concept of fair value measurement as well as determine its influence on the financial reporting quality of items in the financial statement of insurance companies. The study uses survey method and questionnaire as research instrument to elicit data from professional accountants in selected listed insurance companies in Lagos state, using conveniency sampling technique. The data collected were analyzed with the aid of SPSS. The study reveals that there is significant relationship between fair value measurement and the financial reporting quality and that the fair value measurement has significant influence on financial reporting quality at each level of the hierarchies. The study, therefore, concludes that the observance of the financial reporting qualities in the process of the fair value measurement would facilitate the production of corporate financial report useful to analysts in assessing a company’s performance and prospects. It, therefore, recommended that the professionals in the insurance industry should observe the qualities of financial reporting while preparing financial reports and during the process of fair value measurement. Also, it recommended that the management of insurance companies should engage valuation experts and professionals for objectivity and soundness in fair value measurement. This will lend credibility to the financial report.

Tax Aggressiveness in Consumer Goods: Liquidity, Leverage, Earnings, and CSR Dynamics

This study explores the relationship between liquidity, leverage, earnings management, corporate social responsibility (CSR), and tax aggressiveness in the consumer goods manufacturing companies listed on the Indonesia Stock Exchange from 2015 to 2019. Employing purposive sampling and panel data regression analysis on secondary data from financial reports, the research aims to assess the individual and combined effects of these factors. The findings reveal that leverage and CSR exhibit a significant negative impact on tax aggressiveness, while liquidity demonstrates a negative effect. Moreover, earnings management is positively associated with tax aggressiveness, albeit not significantly. Simultaneously, the comprehensive analysis reveals that liquidity, leverage, earnings management, and CSR collectively influence tax aggressiveness. These findings provide valuable insights into the interplay between financial and non-financial factors in shaping tax strategies adopted by manufacturing firms, enabling policymakers, practitioners, and scholars to better understand and manage tax behavior in the corporate sector.
 Highlights:
 
 
 Liquidity and Leverage: The study reveals the negative impact of liquidity and leverage on tax aggressiveness, indicating that companies with higher liquidity and lower leverage tend to exhibit less aggressive tax behavior.
 
 
 Corporate Social Responsibility: The findings demonstrate that corporate social responsibility practices have a significant negative effect on tax aggressiveness, suggesting that socially responsible companies are less likely to engage in aggressive tax strategies.
 
 
 Earnings Management: While not significant, the positive association between earnings management and tax aggressiveness highlights the need for further examination of the complex relationship between financial reporting practices and tax behavior in manufacturing companies.
 
 
 Keywords: Tax Aggressiveness, Liquidity, Leverage, Earnings Management, Manajemen Laba, Corporate Social Responsibility

Financial Analysis of Listed Companies of Biological Vaccine Companies

Financial analysis is an important tool for enterprises to improve management and optimize economic decisions. The analysis of corporate financial reports can provide directions and clues for improving management and provide decision support for users of financial report information. In this paper, we will take D Bio as an example and analyze its financial indicators to assess its solvency, operating capacity, profitability and growth capacity. The problems of the company's financial situation are pointed out and recommendations are given in a targeted manner to improve the company's competitiveness.

The Code of Professional Ethics and Good Governance on the Quality of Company Financial Statements

The problems that will be examined in this study relate to empirical hypothesis testing how the influence of understanding professional ethics and the application of good governance principles on the quality of the company's financial statements presentation. The research sample is accountants who work in public accounting firms in Bekasi, West Java and East Jakarta with a total sample of 100 respondents. The sampling method used purposive sampling in accordance with the expected objectives of this study. The research approach is quantitative research with the type of correlational research. The results of the study reveal that (1) Understanding of Professional Ethics has a positive effect on the quality of the presentation of the company's financial statements. This means that the better the understanding of accountants about their professional ethics, the better their awareness and commitment to carrying out their professional ethics specifically in their duties and responsibilities in the preparation of quality financial reports. (2) The application of Good Governance has a positive effect on the quality of the presentation of the company's financial statements. This means that a good understanding and commitment to the application of the principles of transparency, accountability, participation and responsiveness will motivate the commitment of accountants in the presentation and preparation of quality corporate financial reports.

PENDAMPINGAN PEMASARAN PRODUK DAN PELATIHAN PENYUSUNAN PEMBUKUAN SEBAGAI UPAYA PENINGKATAN PENDAPATAN PADA KELOMPOK USAHA DUPA CENDANA DI DESA PED, KECAMATAN NUSA PENIDA

The Cendana Incense Business Group is located in Ped Nusa Penida Village and has been running for 3 years serving incense orders around Ped Nusa Penida Village. The sandalwood incense business group consists of 3 groups, each group consisting of 6 Ped Village residents who do not have a job. The production process of sandalwood incense is very smooth in fulfilling the orders it receives. In carrying out Hindu religious ceremonies in Bali, incense is a very important and necessary ceremonial tool. So, incense is one of the staple ingredients in religious ceremonies in Bali. Based on observations made in Nusa Penida District, so far, the people of Nusa Penida have ordered/purchased incense in mainland Klungkung both for direct use and for resale/marketing. This is caused by ignorance of good and correct product marketing strategies. To help overcome these problems, this service activity will be more focused on providing product marketing assistance in an effort to increase opinion and training in the preparation of good and correct bookkeeping. The group that has been formed is expected to be able to produce incense in large quantities so that it is hoped that in the future the sandalwood incense business group will be able to meet market demand in Nusa Penida District. This service activity also provides marketing strategy assistance so that it is hoped that in the future it will be able to market incense products that produce very well through social media that are currently developing. The results achieved in this service are that the sandalwood incense business group has been able to produce incense in large quantities and from now on they have sufficient knowledge to market their products properly and immediately practice making good and correct simple corporate financial accounting reports. Assistance activities like this are still very much needed by these business groups. Evaluation of this activity will be carried out again after seeing the business development of these groups.

Extraction of Important Factors in a High-Dimensional Data Space: An Application for High-Growth Firms

We introduce a new non-black-box method of extracting multiple areas in a high-dimensional big data space where data points that satisfy specific conditions are highly concentrated. First, we extract one-dimensional areas where the data that satisfy specific conditions are mostly gathered by using the Bayesian method. Second, we construct higher-dimensional areas where the densities of focused data points are higher than the simple combination of the results for one dimension, and then we verify the results through data validation. Third, we apply this method to estimate the set of significant factors shared in successful firms with growth rates in sales at the top 1% level using 156-dimensional data of corporate financial reports for 12 years containing about 320,000 firms. We also categorize high-growth firms into 15 groups of different sets of factors.

Regulation of Financial Statements of Small Partnerships and Micro-enterprises: Comparative Analysis

EU Directive 2013/34/EU was adopted to reduce the administrative burden on small businesses. By transposing the provisions of the Accounting Directive into Lithuanian legislation: the Law on Financial Accounting, the Law on Corporate Financial Reporting, and the Business Accounting Standards, micro-enterprises have had their administrative burden reduced by simplified financial reporting requirements. A 2018 study by the Ministry of Finance of the Republic of Lithuania states that the intended benefits have not been achieved due to a lack of clarity in the legal framework, which affects the quality of the preparation of financial statements. This study did not take into account the fact that both: the forms of financial statements and the accounting requirements for micro-enterprises with limited liability differ according to legal form. The wide range of financial statement sets leads to the incomparability of the financial statements data. It is therefore essential to analyze the current regulation of the financial statements of small partnerships and micro-enterprises and consequently to provide recommendations for adjustments and standardization of the content of financial statements.The objective of this study is to carry out a comparative analysis of the regulatory framework for the financial statements of small partnerships and micro-enterprises.To back the development of the financial reporting model, data from the financial statement sets of 26 micro-enterprises were used. By standardizing regulation and producing standardized accounts, businesses would save on information resource costs. Furthermore, the uniform content of the financial statements would allow for the comparability of information. It is recommended that the balance sheet should be more summarised in terms of fixed assets and equity, while current assets should be presented in more detail. In the income statement, it is suggested that expenses be presented in a combined way: by type and purpose, detailing the cost of the sales item.

Adoption Of International Financial Report Standard [IFRS] And The Quality Of Corporate Financial Reports Of Quoted Companies

Introduction: The quality of financial reporting implies how well a standard can detect and document any material misstatements in corporate financial reports This, gives need to a standard to follow which is meant to give accurate and meaningful information of the sales and the nature, timing and uncertainties of the cash flow, to those who need it.

Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria

Investors are confronted with the difficulties or issues of settling on a choice as far as deciding when to contribute, regardless of whether to contribute. An investor can reduce decision-related risk by using financial reporting information. the study aims to investigate the impact of corporate financial reporting on investors’ confidence using some quoted industrial companies in Nigeria. The study used secondary data by adopting an ex-post factor resign design through the use of a purposive sampling technique to select ten (10) listed industrial companies from the Nigeria Group Exchange. The paper was analyzed using descriptive and panel regression analysis. The study result found that corporate financial reporting significantly affects investors’ confidence (Adj. R2 = 0.541; F statistics = 4.73; p-value = 0.004). Audit firm size moderately affects the effect of corporate financial reporting on investor confidence in some listed industrial companies in Nigeria (Adj. R2 = 0.579; F statistic =5.18, p-value =0.001). Thus, the study recommended that investors maintain their current confidence level. Also, the investors, as well as the managers, can work on developing the legal framework for corporate financial reporting in light of the suggested framework being developed, and finally inspiring financial reporting, managerial, institutional and regulatory studies and research that lead to the best practices for meeting compliance obligations.

Analysts’ Expectations, Corporate Financial Reporting and Taxes

Analysts’ Expectations, Corporate Financial Reporting and Taxes

Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria

Corporate Financial Reporting and Investor’s Confidence in some quoted Industrial Companies in Nigeria