Degree Of Information Disclosure Research Articles

DETERMINANTS OF RISK DISCLOSURE IN TOP-PERFORMING AUTOMOBILE COMPANIES IN INDIA

Considering the business environment, operations, and regulatory environment companies operate in, disclosure requirements per the regulatory authorities have been more stringent. This study examined the degree of disclosure of risk information disclosed by companies established in India in the automobile sector listed on the National Stock Exchange (NSE) and listed international companies with unlisted subsidiaries in India. This study also aims to identify the governance attributes that influenced the practice of risk disclosure among the selected companies in India. The main risks in top-performing automobile companies in India have disclosed are examined in this paper, along with the board characteristics associated with the disclosure of corporate risk information. The variables included in the study are board size, board independence, and ownership concentration. The content analysis approach was adopted to determine the degree of risk disclosure practices. This study has also applied the descriptive statistics method and fixed effect analysis to measure the degree of information disclosure and to elaborate on the interrelationship between disclosure practices in India and governance attributes. Assessing India's top-performing automobile companies eventually unraveled the risk disclosure practices. Agency and signalling theories were adopted in this study to elucidate the company disclosure practice. The study reveals that there is a significant positive association between board size and the extent of risk disclosure; a significant positive association between board independence and the extent of risk disclosure; and a significant negative association between ownership concentration and the extent of risk disclosure.

Effect of information disclosure on firms' direct financing in emerging securities markets

In the 1990s, the significant emergence and evolution of securities markets or direct financing not only substantially affected credit suppliers' lending activities but also profoundly altered the financing patterns of businesses in developing countries. Therefore, this study examines heterogeneous firms' emerging use of long-term securities financing mainly from the perspectives of asymmetric information and the types of fund providers. The intertemporal maximization framework theoretically suggests that firms with a greater degree of information disclosure may prefer direct financing over indirect financing in their long-term financial arrangements. In addition, economic recession or stagnation could contribute to a higher level of long-term securities financing. This study employs panel data models and the Tobit model to analyze the emerging direct financing patterns in a panel dataset comprising 131 Taiwanese listed companies from 1989 to 2000. The empirical results support the theoretical findings. The results suggest a positive relationship between the degree of information disclosure and firms' intertemporal level of long-term direct financing, which directly contributes to the development of securities markets and the establishment of balanced financial infrastructure in developing countries. The influence of information disclosure variables (the fund providers paradigm) on firms' emerging direct financing in a developing country outweighs that of the capital structure variables (the securities types paradigm).

Interaction between channel characteristics and quality disclosure

Online retailers can provide more product quality information in different ways with different information technologies (e.g., product simulators and virtual reality) in order to reduce consumers’ uncertainty about the product quality. We suggest that online retailers should combine the influence of online channel characteristics and the quality of product attributes in the information disclosure strategy. We introduce a dynamic model in the environment of a two-echelon supply chain. Product quality and information disclosure are endogenous in this model. Our research shows that if the degree of information disclosure and the cost of disclosure are low, the best choice for the online retailer is to disclose high-quality attribute (searchable attribute or experiential attribute) quality information. Interestingly, if the degree of information disclosure is high, the best choice for the online retailer is to disclose low-quality attribute (searchable attribute or experiential attribute) quality information. In addition, manufacturers’ profits and product quality may present a U-shaped relationship under the equilibrium state.

Research on the Existence of the Qing Imperial Examination Document

Compared with the imperial examination documents of the Ming Dynasty, the existing total amount of the documents of metropolitan imperial examination in the Qing Dynasty is much larger and the categories are more abundant. But there also remain the problems of collection dispersion, low degree of information disclosure, difficulties in obtainability and low utilization rate. This paper, based on the real time data of the Geographical Distribution Database of Metropolitan Imperial Examination Documents in the Qing Dynasty, makes a holistic research and analysis on the year distribution, collection locations, document categories and circulation of 671 kinds of metropolitan and palace examination papers in the Qing Dynasty, intending to help the research colleagues on the imperial examination with an overall impression of metropolitan examination documents in the Qing Dynasty. Through statistical analysis, there are 19 kinds of imperial metropolitan examination documents in the Qing Dynasty. The existence of the published lists of names only is as high as 206 volumes which are collected by 44 domestic and overseas institutes. 550 volumes of documents are collected by 33 national institutes. The First Historical Archives of China takes 138 volumes and another 11 overseas institutes take 120 volumes. By collating and summarizing, during the period of 112 years of 9 emperors in the Qing Dynasty, the most missing documents of metropolitan examinations were those in the periods of Yongzheng and Qianlong.

The Three-Level Supply Chain Finance Collaboration under Blockchain: Income Sharing with Shapley Value Cooperative Game

With the gradual and widespread application of blockchain technology in the supply chain, its characteristics can help solve the financing problem of MSMEs. To this end, this paper constructs a cooperative game model for suppliers, manufacturers and retailers in the case of a cross-level guarantee of order-to-factoring, studies the pricing strategy of supply chain finance members based on blockchain technology by adopting the Stackelberg primary-secondary game method, and makes a reasonable allocation of total supply chain revenue with the help of the Shapley value of the cooperative game. The study found that the adoption of blockchain can be effective in increasing the benefits to supply chain members and systems. The adoption of blockchain increases the blockchain costs but decreases the financing costs for the supplier. The Shapley value of the cooperative game is used to distribute the benefits, allowing for Pareto improvements in the benefits to supply chain members. In the next step, we will focus on examining the impact of risk assessment and the degree of information disclosure on supply chain finance with blockchain technology.

Contingency Information Disclosure and Corporate Tax Avoidance

Despite there is a large amount of relevant literature on the two main topics of contingency information disclosure and corporate tax avoidance, no one has yet focused on the relationship between the two. The study in this paper aims to fill this gap. Based on the empirical data of Chinese A-share listed companies from 2007 to 2020, we empirically examines the impact of contingency information disclosure on corporate tax avoidance, using the expected liabilities presented in the financial statements of enterprises. The results of the study found that the degree of information disclosure of contingencies is significantly and positively related to corporate tax avoidance, and the financing constraints brought by contingencies to enterprises are an important channel to influence corporate tax avoidance; further study found that the positive influence of the degree of information disclosure of contingencies on corporate tax avoidance significantly weakened with the improvement of the quality of corporate internal control. The findings of this paper provide important empirical insights for listed companies to improve the quality of accounting information, curb the opportunistic tendency of management and manage corporate tax avoidance.

The Development and Problems of the Chinese Market Short Selling System

This paper focuses on the short-selling mechanism in the Chinese capital market, which is not fully mature at this stage, and firstly explores the current development of its shorting behavior and related activities to show its impact on the market operation. Secondly, it analyzes important development issues such as low shorting activity, lagging shorting development process, and information disclosure. Research finds that the lag of shorting activities in the Chinese market is mainly due to the limited availability of underlying assets and the degree of information disclosure directly affects the activity of shorting. Overall, this paper has implications for the development of short selling in China's capital market and suggests constructive ways to improve the short selling mechanism in China's market and even in emerging markets.

Exploring the impact of green credit policies on corporate financing costs based on the data of Chinese A-share listed companies from 2008 to 2019

Green credit policy (GCP) is an important measure to realize green transformation of economy and society. Taking the panel data of 1359 Chinese A-share listed companies from 2008 to 2019 as samples, this paper analyzes the effect and mechanism of green credit policies on corporate financing costs by using difference in difference (DID) method. After the implementation of GCP, the financing cost of enterprises with high energy consumption and high pollution increases compared with those with energy conservation and environmental protection. In addition, GCP not only affects the financing cost of corporate debt by changing the financing scale and commercial credit, but also affects the financing cost of corporate equity by changing financial status and information disclosure degree. However, compared with enterprises in medium and low carbon emission regions, GCP has a more significant impact on the financing cost of enterprises in high carbon emission regions.

Netizens’ risk perception in new coronary pneumonia public health events: an analysis of spatiotemporal distribution and influencing factors

BackgroundInternet search volume reflects the level of Internet users’ risk perception during public health events. The Internet search volume index model, an algorithm of concentration of Internet users, and statistical analysis of popular topics on Weibo are used to analyze the effects of time, space, and space-time interaction. We conducted in-depth research on the characteristics of the spatial and temporal distribution of Internet users’ risk perceptions of public health events and the associated influential factors.MethodsWe analyzed the spatiotemporal distribution characteristics of Internet users’ risk perception after the Wuhan “city closing” order during the coronavirus disease 2019 (COVID-19) pandemic. We established five linear regression models according to different time periods and analyzed factors influencing Internet users’ risk perception by employing a Poisson and spatial distribution and topic modeling analysis.ResultsEconomy, education, health, and the degree of information disclosure affect Internet users’ risk perception significantly. Internet users’ risk perception conforms to the exponential distribution law in time and has periodic characteristics and stability trends. Additionally, Internet users’ average arrival rate dropped from week 1 to week 8 after the “city closing.” Internet users’ risk perception has a uniform distribution in space, economic and social development level distribution consistency, spatial agglomeration, and other characteristics. The results of the time-space interaction show that after 8 weeks of COVID-19, Internet search hot topics have become more stable, and Internet users’ information demand structure has become more rational.ConclusionsThe Internet search cycle of the COVID-19 event is synchronized with the evolution cycle of the epidemic. The physical risk of Internet users is at the top of the risk structure, focusing on the strong concern about the government’s ability to control COVID-19 and its future trend. The government should strengthen network management; seize the risk control focus of key time nodes, regional locations, and information content of online communication; actively adjust the information content supply; effectively control the rebound of Internet users’ risk perception; establish a data-driven, risk-aware intelligence system for internet users; and guide people to actively face and overcome the potential risks and threats of COVID-19.

Social Information Disclosure of Friends in Common in an E‐commerce Platform Ecosystem: An Online Experiment

Real social information is believed to cause a trust–privacy paradox in e‐commerce platforms, with the degree of information disclosure affecting platform performance. In this study, we split the mixed influence into the direct trust mechanism and the indirect privacy mechanism, studying each in the context of partial and full social information disclosure, respectively. Using unique data from an 80‐day large‐scale online experiment conducted in an e‐commerce platform in China, we show that a partial social information disclosure could reduce the conversion rate, while a full social information disclosure could promote both the conversion and sales rates of the e‐commerce platform through a trust mechanism. Moreover, social information disclosure would reduce the sales rate and promote the conversion rate through a privacy mechanism. However, even though the degree of privacy could enhance the privacy mechanism, this mechanism is still much weaker than a trust mechanism. Overall, social information could play a positive role in e‐commerce platforms if it is fully disclosed. This study encourages cooperation between social media platforms and e‐commerce platforms by introducing a real social relationship into the online trading market.

Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China.

We examined the effect of environmental disclosure on environmental performance for listed mining companies in China. Our analysis used China’s Environmental Information Disclosure Degree (EIDD) and the Chinese Securities Regulatory Commission’s disclosure guidelines to propose the Environmental Information Disclosure Index. Majority of previous studies on environmental disclosures focused on a particular company or city or province. Few studies considered a whole sector of a country. Among the few studies that considered a whole industry, none of such studies considered the mining industry. In addition, our study employed a recent environmental disclosure index and modified a recent index for environmental performance for the empirical analysis making our study unique. We also employed vigorous reliability and robustness test to ensure that our findings are valid and can be used by policy-makers. Using panel data for thirty-four mining companies from both Shanghai and Shenzhen Stock Exchange for the period 2000–2018, our cointegration estimation analysis concluded that corporate environmental performance and environmental information disclosure has a positive and significant relationship at a 1% level. Trend analysis revealed that mining companies comply with environmental information disclosure in China. This was seen from the great improvement in the environmental disclosure for mining companies between 2008 and 2010 after the enforcement of EIDD. Our results contribute to the previous literature and open the way for further studies on industry level in other countries.

The Internal Control System as a Management Function and the Element of Integrated Reporting Financial Statements

The present article is devoted to one of the most urgent problems of financial accounting organization and preparation of accounts – the issue of implementation of internal control in the companies. The authors consider the internal control as a function of management in interrelation with internal audit and risk management. The purpose of the research is to determine the level of information disclosure about the internal control system in the company's reporting. The research subject is the industrial and economic activity of chosen companies. Public integrated reporting is the object. The authors set out the following tasks in the research process: to estimate the degree of study of the problem; to analyze public reporting, including its structure, different report forms, the content of Explanatory Notes to the reporting and the working documents; to compare the reporting of various companies; and to identify the degree of information disclosure. The methodology of the research suggests an analysis of existing studies in the field of internal control, visual analysis of internal documents of the companies and their reporting and comparative assessment of reports of some companies. The authors study public accounts of the major companies, consider it from the view of completeness of disclosure of information about the internal control system, draw conclusions and give recommendations on improvement of control procedures. The authors justify that the two concepts of internal control and internal audit are not the same. However, the management of some companies does not separate them. The authors prove that internal auditing is only a part of the internal control system.

Reputation Restoration Behavior and Its Economic Effect After the Exposure of Executive Corruption

Good corporate governance mechanism is one of the effective ways to curb corruption. After the exposure of executive corruption, will the enterprise restore its reputation by actively improving the governance mechanism? Do participants in capital market and product market give positive recognition to enterprise reputation restoration? In order to answer the above questions, based on the institutional background of anti-corruption in China, this paper takes the manual collected executive corruption data of listed companies from 2003 to 2015 as a sample, and uses the ordinary least squares（OLS）method, the propensity score matching（PSM）method and the difference-in-differences（DID）model to test the relevant hypothesis, so as to examine the impact of reputation restoration behavior to improve its governance mechanism of the enterprise with damaged reputation on market cognition and corporate value after corruption exposure.The results show that: （1）In the first year after the exposure of corruption, the reputation damaged enterprise will actively improve the governance mechanism, and this reputation restoration behavior can be recognized by the market. Among them, the capital market is more sensitive to this kind of reputation restoration behavior; the upstream and downstream enterprises of the enterprise exposed to corruption in the product market are more cautious about this kind of reputation restoration behavior, and the response is lagging behind.（2）After the reputation damage, the reputation restoration behavior that the enterprise actively improves the governance mechanism can enhance corporate value, and can further enhance corporate value by improving the market cognition. Therefore, it is effective to expose the corruption of senior executives in the way of corporate reputation restoration by improving corporate governance structure.（3）Further research shows that the enterprise exposed to corruption in non-monopoly industries can gain more market recognition and enhance the enterprise by actively improving the governance mechanism after reputation damage. Even the reputation damaged enterprise with low degree of information disclosure can achieve the purpose of reputation restoration by actively improving the governance mechanism. The results of robustness tests, such as multi-stage DID test, PSM method to control endogeneity and replace governance mechanism variables, also do not change the main conclusions of this paper.

Impact of board characteristics on environmental disclosures for listed mining companies in China.

This paper examines the impact of board characteristics on environmental accounting information disclosure for listed mining companies in China. Board characteristics were categorized into board size, independence characteristics, diversity characteristics, behavioral characteristics, and incentive characteristics. The study further extended to analyze the impact of board characteristics on environmental disclosure before and after the promulgation of Environmental Information Disclosure Degree (EIDD). Using multiple regression analysis with a sample of 34 listed mining companies from both Shanghai and Shenzhen Stock Exchanges covering 2000-2018 period, we find a significant positive correlation between board size and Environmental Accounting Disclosure Index (EADI). Also, board independence measured by independent directors and the separation of the chief executive officer from board chairman revealed a positive and significant relationship with EADI. Similarly, behavioral characteristics measured by board meeting were positively correlated with EADI at 1% significant level. In terms of diversity characteristics, both females on board and foreign nationals revealed a negative and insignificant relationship with EADI, while incentive characteristics saw an inconclusive correlation with EADI. Our findings are useful to top managers and regulators who are interested in improving corporate governance practices and environmental information disclosure.

Problems and Countermeasures of Social Responsibility Investment (SRI) in China in the New Era

Social responsibility investment (SRI) has gradually become a new investment concept in the world. In the context of the new era, SRI has such problems in China such as lack of sufficient policy guarantee, SRI awareness of investors and evaluation awareness of consumers on corporate social responsibility (CSR), and low degree of information disclosure of CSR. This paper puts forward some countermeasures to improve policies, laws and regulations on SRI in China, as well as the information disclosure system of social responsibility. This paper discusses enlightenment of the research progress of foreign SRI to China to promote the further development of SRI in China.

Price and Volatility Linkages Between Indian Stocks and Their European GDRs

This article tests for price and volatility linkages between Indian global depositary receipts (GDRs) traded in Luxembourg/London and their underlying shares traded in Mumbai. The relationship is studied between the GDR price and the domestic share price along with the appropriate exchange rates, the foreign stock index and the domestic stock index using the vector autoregression (VAR) and dynamic conditional correlation (DCC) specification of multivariate generalised autoregressive conditional heteroscedasticity (GARCH) models. VAR results indicate a similarity between the two prices of scrips: one trading in Mumbai and the other trading in Luxembourg (London). Further, DCC-GARCH model outcomes point to, by and large, a high-dynamic correlation between Indian GDRs traded in Luxembourg/London and their underlying stocks listed in Mumbai. Thus, the price and volatility linkages between the Indian stock and its European counterpart are invariant with respect to the choice of the foreign stock exchange. Such a similarity in findings, notwithstanding the difference in degree of information disclosure as well as listing requirements at London and Luxembourg, is perhaps indicative of the stock-exchange-invariant nature of law of one price. JEL Classification: G15, C22

Who Wants Consumers to Be Informed? Facilitating Information Disclosure in a Distribution Channel

We investigate a retailer’s and a supplier’s incentive to facilitate information disclosure, i.e., consumer learning of their true product valuation, under two popular supply chain contracts, i.e., the agency pricing model and the wholesale pricing model. Our results show that when a product has medium or high dispersion in its consumers’ true valuation distribution and the degree of information disclosure before facilitation is moderate, two parties might have opposing interests as to more information disclosure. Specifically, in the agency pricing model, the revenue sharing mechanism leads the supplier to benefit, but the retailer to suffer, from more information disclosure. In the wholesale model, potential misalignment of interests as to more information disclosure disappears if the demand is linear. Double marginalization absorbs influence of two parties’ marginal cost discrepancy and eventually tunes the two parties’ margin proportional to each other. If the demand is log-concave and derived from common valuation distributions such as normal or logistic distributions, misalignment reappears in the wholesale model, but interestingly, the retailer benefits and the supplier suffers from more disclosure, which is opposite to the misalignment result in the agency model under the same log-concave demand. Our results suggest that information disclosure facilitation has a different interplay with the revenue sharing mechanism in the agency model than with double marginalization in the wholesale model. The online appendix is available at https://doi.org/10.1287/isre.2017.0770 .

How Does Information Disclosure Affect Bank Systemic Risk in the Presence of a Deposit Insurance System?

ABSTRACT This article establishes a dynamic game with incomplete information to theoretically analyze the influence mechanism of information disclosure on systemic risk in the presence of a deposit insurance system. To verify the mechanism, we use panel data on 247 global banks in 41 countries during the period 2006 to 2015 in an empirical analysis. Our article finds that a high degree of information disclosure can reduce deposit insurance premiums and weaken the negative incentive from a bailout by regulatory authorities. Moreover, the effect of deposit insurance on financial stability is not apparent, but the synergistic effect of deposit insurance and information disclosure reduces bank systemic risk. Furthermore, different deposit insurance designs affect bank behavior, so it is crucial for bank supervisors to create proper deposit insurance systems, which are helpful in strengthening market discipline and preventing moral hazard thus contributing to a stable financial environment. Therefore, under the deposit insurance system, regulatory authorities should strive to improve the standard of information disclosure to ensure systemic stability.

Voluntary Disclosure of Private Information and Unraveling in the Market for Lemons: An Experiment

We experimentally analyze a lemons market with a labor-market framing. Sellers are referred to as “workers” and have the possibility to provide “employers” with costly but credible information about their “productivity”. Economic theory suggests that in this setup, unraveling takes place and a number of different types are correctly identified in equilibrium. While we do observe a substantial degree of information disclosure, we also find that unraveling is typically not as complete as predicted by economic theory. The behavior of both workers and employers impedes unraveling in that there is too little disclosure. Workers are generally reluctant to disclose their private information, and employers enforce this behavior by bidding less competitively if workers reveal compared to the case where they conceal information.

Does different information disclosure on placebo control affect blinding and trial outcomes? A case study of participant information leaflets of randomized placebo-controlled trials of acupuncture

BackgroundWhile full disclosure of information on placebo control in participant information leaflets (PILs) in a clinical trial is ethically required during informed consent, there have been concerning voices such complete disclosures may increase unnecessary nocebo responses, breach double-blind designs, and/or affect direction of trial outcomes. Taking an example of acupuncture studies, we aimed to examine what participants are told about placebo controls in randomized, placebo-controlled trials, and how it may affect blinding and trial outcomes.MethodsAuthors of published randomized, placebo-controlled trials of acupuncture were identified from PubMed search and invited to provide PILs for their trials. The collected PILs were subjected to content analysis and categorized based on degree of information disclosure on placebo. Blinding index (BI) as a chance-corrected measurement of blinding was calculated and its association with different information disclosure was examined. The impact of different information disclosure from PILs on primary outcomes was estimated using a random effects model.ResultsIn 65 collected PILs, approximately 57% of trials fully informed the participants of placebo control, i.e. full disclosure, while the rest gave deceitful or no information on placebo, i.e. no disclosure. Placebo groups in the studies with no disclosure tended to make more opposite guesses on the type of received intervention than those with disclosure, which may reflect wishful thinking (BI −0.21 vs. −0.16; p = 0.38). In outcome analysis, studies with no disclosure significantly favored acupuncture than those with full disclosure (standardized mean difference − 0.43 vs. −0.12; p = 0.03), probably due to enhanced expectations.ConclusionsHow participants are told about placebos can be another potential factor that may influence participant blinding and study outcomes by possibly modulating patient expectation. As we have few empirical findings on this issue, future studies are needed to determine whether the present findings are relevant to other medical disciplines and at the same time a routine practice of fully disclosing placebo information in PILs calls for reevaluation.