Disclosure In Reports Research Articles

INFLUENCE OF ISLAMIC SOCIAL REPORTING (ISR) DISCLOSURE ON THE QUALITY OF PROFITS IN REGISTERED COMPANIES IN JAKARTA ISLAMIC INDEX (JII)

Islamic Social Reporting (ISR) is one way to demonstrate full disclosure in an Islamic context. Earnings quality refers to the extent to which a company's reported earnings reflect its true economic performance. This research aims to determine the influence of the independent variable, namely Islamic Social Reporting, on the dependent variable, namely Profit Quality, and to find out how big it isThe influence of Islamic Social Reporting disclosure on Profit Quality in companies listed on the Jakarta Islamic Index. This research uses research methodsquantitative, associative approach, with field research. The data used in this research is in the form of company annual reports on the Indonesia Stock Exchange for 2019-2021. In collecting data, this research uses two methods, namely count analysis and dummy variables. The analysis technique used is simple linear regression. The results of this research show that the Islamic Social Reporting disclosure score is more than 59%, which means that the disclosures made have reached more than 48 disclosure score items. Meanwhile, the average value of earnings quality reached 2.8388. The results of the Spearman rank correlation test show that there is a fairly strong relationship between the Islamic Social Reporting variable and earnings quality. The results of testing the coefficient of determination show that the ability of the independent variable in this study to influence the dependent variable is only 9.9%. Furthermore, the partial test results show that Islamic social reporting disclosure has a positive and significant effect on earnings quality with a significance value of 0.008 <0.05. By implementing Islamic Social Reporting, companies not only focus on achieving maximum profits, but also pay attention to the social and environmental impacts of their business activities. This can attract the interest of investors, especially Muslim investors, to invest in the company.

Litigation Risk and Good Corporate Governance on Audit Fees: Moderate Role of Financial Reporting Disclosure Level

Litigation Risk and Good Corporate Governance on Audit Fees: Moderate Role of Financial Reporting Disclosure Level

THE ESSENCE OF GOODWILL IN DISCLOSING THE INTANGIBLE VALUE OF BUSINESS IN THE CONTEXT OF DIGITAL TRANSFORMATION

The intangible component of business value is increasing, yet remains inadequately disclosed in financial reporting. Current accounting standards have not fully developed the tools and methodologies for its comprehensive recognition, measurement, assessment, and full disclosure in reports. Discussions on the essence of goodwill have long been ongoing, and it's evident that this category extends beyond accounting and financial reporting. Digital transformation enhances the interest of researchers, scholars, and practitioners in the essence of goodwill, emphasizing the necessity to consider it as a means of disclosing the intangible value of business in modern conditions.The methodological basis of the conducted research includes methods of analysis, synthesis, historical conceptual review, comparison, logical generalization, grouping, abstraction, and a systematic approach.Studying the history of the development of the goodwill concept allowed identifying the main stages of its formation as an object of accounting, reporting, and management. An in-depth critical analysis of definitions supplemented economic, legal, and accounting approaches to understanding the essence of goodwill with new ones, such as marketing, branding, value, emotional, quantitative, and systemic. The developed classification allows considering all aspects of goodwill manifestation and the views of various assessment subjects on its essence and role in disclosing the intangible value of the business. It is proposed to define goodwill as the intangible value of a business reflecting its reputation, brand, customer loyalty, intellectual property, innovative and technological capabilities, digital user experience, online presence, and a set of other unique intangible assets, which together contribute to the sustainable growth of the company's market value and create competitive advantages, enabling adaptation to changes in the era of digital transformation.Goodwill is a category that exists not only in consolidated reporting, as it characterizes the intangible components of business value and requires appropriate recognition and management.

The Influence of Company Characteristics and Good Corporate Governance on the Quality of Sustainability Report Disclosure (In Banking Companies Listed on the IDX in 2020-2023)

The aim of this research is to investigate and evaluate the potential influence of company size, profitability, and audit committee on the level of transparency of sustainability reports in banking companies listed on the Indonesia Stock Exchange between 2020 and 2022. This research uses Sustainability Report as an independent variable and Company Size , Profitability, Institutional Ownership, and Audit Committee as dependent factors. The approach used in this research to determine the sample was purposive sampling, consisting of 38 samples of banking companies from financial reports and sustainability reports on the Indonesia Stock Exchange for three consecutive years from 2020–2022. The analysis method in this research uses statistical methods assisted by Eviews 12. The research results show that company size and institutional ownership have a significant effect on sustainability report disclosures, while profitability and audit committees are not significant on sustainability report disclosures.

Investor Reaction To The Implementation Of Sustainability Reporting

The purpose of the disclosure of Sustainability Reporting is to solve social and environmental issues and may have an impact on achieving sustainable development in the face of social responsibility issues. In addition, Sustainability Reporting Disclosures can be used to achieve company goals. This study aims to analyze the implementation of Sustainability Reporting and whether it affects investor reactions in considering investment decisions. Sustainability Reporting disclosure in this study was tested as an independent variable with control variables EPS, PBV, and Dividends. An increase or decrease in stock prices indicates that investors react to the information disclosed, in this study, stock prices were tested as the dependent variable. The total research sample is 30 companies listed on the Indonesia Stock Exchange, with the category of companies getting an assessment rating from the National Center for Sustainability Reporting (NCSR). The results of hypothesis testing show that Sustainability Reporting disclosures have a significant effect on stock prices, so it can be concluded that Sustainability Reporting disclosures can provide a reaction to investor decisions. Control variables EPS, PBV, and Dividend Policy significantly affect stock prices.

Who gains favor with green investors amidst climate risk?

PurposeThis study aims to investigate the impact of climate risk disclosure by listed companies on the entry of green investors. It seeks to understand how proactive climate risk disclosure can attract green investment and the underlying mechanisms that facilitate this process.Design/methodology/approachTextual analysis is employed to assess the extent of climate risk disclosure in annual reports. The research constructs indicators for green investor entry and applies regression analysis to examine the relationship between climate risk disclosure and green investment, considering various mediating variables such as positive online news coverage, ESG scores, and corporate reputation.FindingsGreen investors are more likely to invest in companies with higher levels of climate risk disclosure. This relationship is robust across different types of firms, with non-state-owned, non-high-tech, large-scale firms, and those in the Eastern region showing a stronger attraction to green investors. Climate risk disclosure promotes green investment through the “signal transmission” mechanism, enhancing corporate reputation and ESG performance.Originality/valueThis paper extends the traditional theory of external incentives for corporate green development to include autonomous incentives through active climate risk disclosure. It provides new insights into the theory of corporate sustainable development and offers practical recommendations for enhancing corporate green development pathways. The study’s comprehensive approach and use of extensive data contribute valuable knowledge to the field of green investment and corporate sustainability.

Regional digitalization and corporate ESG performance

Against the backdrop of rapid digitalization growth and deep integration with the real economy, companies are faced with more extensive and complex social responsibilities. Based on the data of 1178 A-share listed companies in China's Shanghai and Shenzhen markets from 2014 to 2021, this study empirically analyses the impact of regional digitalization on corporate ESG performance by constructing a double-difference model using the establishment of China's National Pilot Zone for the Innovative Development of the Digital Economy. This paper found that regional digital construction can improve corporate ESG performance by enhancing corporate environmental information disclosure, improving the scale of social donations, and enhancing risk resilience. In addition, the higher the level of public environmental concern in the region, the more obvious the enhancement of digital construction on corporate ESG performance. The contribution of regional digital construction to corporate ESG is also stronger in firms with high executive environmental awareness than in those with low. At the same time, this paper also responds to some scholars' questioning of corporate ESG by verifying that corporate ESG report disclosure is motivated by corporate sustainability rather than self-impression management from the dimensions of corporate management's manipulation of information and the corporate's actual environmental behavior. This paper enriches the research on the impact of the external digital environment on corporate ESG performance. It is of great significance for developing countries to promote the active participation of enterprises in ESG practices through the opportunity of digital development.

THE EFFECT OF SUSTAINABILITY REPORT DISCLOSURE ON FIRM VALUE WITH DIVIDEND POLICY AS A MODERATING VARIABLE

<p><strong>Background</strong>: The rising value of Sri-Kehati Index companies in recent years indicates that there is a change in investor orientation towards green investment. Green investment itself has now become a world and government concern which is realized through several regulations. Therefore, companies are required to disclose the sustainability business that has been carried out.</p><p><strong>Objective</strong>: This study aims to analyze the effect of sustainability report disclosure on firm value with dividend policy as a moderating variable.</p><p><strong>Research Methods</strong>: Multiple linear regression analysis and Moderated Regression Analysis (MRA)</p><p><strong>Research Results</strong>: The result showed that sustainability report disclosure has a negative effect on firm value and dividend policy strengthens the negative effect of sustainability report disclosure on firm value.</p><p><strong>Authenticity/Novelty of Research</strong>: The addition of dividend policy as a moderating variable between the relationship between sustainability report disclosure and firm value.</p>

DISCLOSURE OF SUSTAINABILITY REPORTS

The bank does not focus on profits but pays attention to the environment and social issues that lead to sustainable development. The Financial Services Authority (OJK) issued regulations regarding Technical Guidelines for Preparing Sustainability Reports. This research aims to determine the level of disclosure of sustainability reports in 2022 at state-owned banks and state-owned companies on the Indonesian Stock Exchange. The research method uses descriptive analysis, which describes the research object based on facts and then analyzes and interprets it. The research results on the level of disclosure of sustainability reports are very good, and show management's commitment to fulfilling disclosure obligations regarding environmental sustainability in economic, environmental, and social aspects. Companies need to improve and optimize programs such as environmentally friendly products, involvement of local parties with sustainable financial business processes, conservation, and biodiversity conversion efforts.

Rhetorical strategies in the climate change disclosures of Bangladeshi banking companies

PurposeThe main objective of this article is to explore the rhetorical persuasive strategies in the climate change-related disclosures of the annual reports of Bangladeshi banking companies.Design/methodology/approachTo fulfil this objective, content and rhetorical analyses are conducted on the climate change-related disclosures in the annual reports of Bangladeshi banks. The analysis is interpreted with the help of Aristotle’s rhetorical appeals (ethos, logos and pathos).FindingsEvidence suggests that Bangladeshi banks disclose climate change-related issues in annual reports. These issues include demonstrating a genuine concern for climate change and exhibiting commitment to green finance and investment, paper and energy conservation, tree plantation, biodiversity and climate change risk funds. They also underscore challenges linked to carbon emissions, air pollution, and natural disasters. These disclosures are persuasive, and rhetorical strategies such as ethos, logos, and pathos are evident. However, the disclosures lacked consistency and comparability because of the absence of reporting regulations and a prescribed framework.Practical implicationsThis study informs managers and policymakers about climate change disclosures in Bangladesh, particularly within the banking industry. The research suggests the need for improved reporting consistency and comparability, potentially achieved through standardised climate change reporting guidelines and mandatory requirements.Originality/valueThis paper’s uniqueness lies in its application of Aristotle’s rhetorical triangle to enhance our understanding of how banking companies in a developing economy strategically employ climate change-related disclosures to influence readers. Rhetorical analysis is limitedly used by accounting scholars in analysing corporate climate-change disclosures.

Determinant factors that impact Islamic social reporting: a study on Islamic Banking

This research aims to find out how sharia reporting is disclosed by sharia commercial banking using variable indicators such as liquidity, leverage, size of the sharia supervisory board, awards, and company size. This research was conducted on sharia banks registered with the Financial Services Authority (OJK) Indonesia from 2017 to 2022. The method used in data collection was a purposive sampling method and a sample of 14 sharia banks registered with the Financial Services Authority (OJK) was obtained. The results show that the variables liquidity, rewards and company size have a positive and significant impact on the disclosure of Islamic Social Reporting, while the variables leverage and size of the sharia supervisory board have no effect on Islamic Social Reporting disclosure. The research concludes that to increase the impact of Islamic Social Reporting, companies need to increase current assets to maintain liquidity, obtain awards, and increase total assets as a company size. Therefore, disclosing Islamic Social Reporting at each institution is very important to attract public attention regarding the company's excellence and performance, and this disclosure can be beneficial for the company's future.

Compatibility between the Auditor and the Institutional Investor and its Impact in Evaluating Requirements with International Accounting Disclosure Standards

The study examined the requirements of accounting disclosure standards from the perspectives of institutional investors and external auditors, highlighting the distinctions between their respective perspectives. due to the importance of the data generated in the financial statements that the institutional investor needs to make investment decisions, and the difference in viewpoints regarding the amount of data disclosure between the two parties. It focusses on outlining what needs to be reported in joint-stock firms' financial statements in a way that promotes objectivity in the financial statements and is transparent, appropriate, and adequate. The study had three main components: the literature and theoretical foundations of accounting disclosure and external auditors comprised the second axis, and the overall methodological framework of the study addressed the first.The idea of disclosure and transparency in the financial statement presentation was covered in the first topic, and the auditor's role and responsibilities in disclosure and transparency in financial reports were covered in the second. As for the third axis, it focused on the practical framework of the research, where an analysis of the sample members’ responses to questionnaire forms distributed to (100) external auditors and (100) institutional investors was presented. The questionnaire questions included three axes, the second axis, which dealt with the income statement's duties under accounting disclosure rules, and the first. It is focused on the balance sheet requirements of accounting disclosure rules. The requirements for accounting disclosure rules for contingent liabilities and events that occur after the budget were covered under the third axis. The research came to several findings after analysing the data for the questions using the SPSS statistical tool. The most important of which were :- The external auditor and the institutional investor have largely agreed upon the requirements of accounting disclosure standards for the income statement. The auditor is particularly interested in the paragraphs that discuss granting credit facilities and avoiding reliance on secondary sources of income, while the investor is more interested in the paragraphs that discuss income and expenses associated with the.fundamental income-generating activities When assessing the accounting disclosure requirements for the balance sheet, the institutional investor and the external auditor have a lot in common. The sections of the financial statements that highlight the uses of money and the requirement to disclose them to users, such as the institutional investor who was concentrating on these lines, are of particular importance to the auditor.due to the fact that they bear in It is fraught with dangers. The external auditor and the institutional investor have essentially reached consensus over their respective points of view when evaluating the accounting disclosure requirements for contingent liabilities and subsequent events . While the investor is primarily focused on the accounting disclosure, the auditor is especially interested in the criteria that revolve around the paragraphs referring to the total value of the provision for losses on loans and advances provided .requirements that place an abnormally high priority on risk In order to set disclosure standards and determine the quantity and quality of data that should be displayed in financial reports while maintaining the transparency necessary to achieve objectivity, the research advises considering the perspectives of the entities that stand to gain from the data generated in those reports as well as the regulatory authorities represented by the external auditor. These guidelines must be updated periodically since investor behaviour changes in response to political, social, and economic factors.

Analysis Of Financial Ratios and Company Size As Determining Factors For Islamic Social Reporting Disclosure In Sharia Banks In Indonesia (Period 2015-2020)

This study investigates the determinants of Islamic Social Reporting (ISR) disclosure among Islamic banks in Indonesia from 2015 to 2020. Using financial ratios (ROA, CR, DER) and firm size as factors, the research explores their impact on the extent of ISR disclosures. The study employs quantitative analysis based on data from annual reports of Indonesian Islamic banks, applying regression models to test hypotheses derived from stakeholder theory, legitimacy theory, and resource dependency theory. The findings reveal that profitability and liquidity positively influence ISR disclosures, indicating that more profitable and liquid banks are more likely to engage in and report on social responsibility activities. In contrast, leverage shows a negative relationship with ISR disclosures, suggesting that highly leveraged banks disclose less about their social initiatives. Additionally, firm size positively correlates with ISR disclosures, highlighting that larger banks tend to provide more comprehensive reports on their social responsibilities. Theoretical implications suggest that Islamic banks strategically manage their financial and organizational resources to enhance legitimacy and stakeholder trust through transparent ISR disclosures. Practical implications underscore the importance of integrating CSR practices into business strategies to promote sustainability and accountability. The study contributes to the literature by providing empirical insights into ISR practices in Islamic banking and informs stakeholders about the factors influencing social responsibility disclosures.

The Effect of Systematic Risk and Sustainability Report Disclosure on Company Value

Company value is very important in an effort to gain attention from every investor. So in increasing this value, companies need to pay attention to the influence of systematic risk and Sustainability Report Disclosure on company value. The purpose of this study is to determine the effect of systematic risk and sustainability report disclosure on company value. The type of research used in this study is quantitative research. The sample in this study was companies listed on the Sri-Kehati Index for the 2020-2022 period, totaling 25 companies. The data analysis technique used multiple linear regression analysis and hypothesis testing. The results of this study indicate that Systematic Risk has a positive but insignificant effect on the value of listed companies. The economic dimension of Sustainability Report Disclosure has a significant positive effect on company value. The social dimension of Sustainability Report Disclosure has a significant positive effect on the value of listed companies. The environmental dimension of Sustainability Report Disclosure has a significant positive effect on the value of companies listed on the Sri-Kehati Index for the 2020-2022 period. Companies should maintain and pay attention to company value. Namely by paying attention to the market price per share and the book value per share. Because the higher the value of the company, the greater the level of prosperity that will be received by shareholders.

ESG Risk and Firm Value: The Role of Materiality in Sustainability Reporting

Purpose: This research aims to investigate the impact of environmental, social, and governance (ESG) risk on firm value and analyse the disclosure of materiality as a moderation variable. Methodology/Approach: We select research data through purposive sampling. We obtain ESG risk scores from Sustainalytics. Content analysis measures the materiality of sustainability disclosures. We processed 204 company data sets in Indonesia using moderated regression analysis techniques between 2020 and 2022. Findings: Empirical results show that greater environmental, social, and governance risks will lower firm value. Furthermore, the disclosure of materiality in the sustainability report can moderate the negative impact of ESG risk on the firm's value. Research Limitation/Implication: This research's implications are essential for standard-makers and governments to increase corporate attention to environmental, social, and governance risk aspects. The company's operations pose ESG risk, which negatively impacts market value as investors rely on this information for their decision-making. Furthermore, this research also implies that management understands the importance of materiality in sustainability reports. Originality/Value of paper: This research enriches existing literature on corporate risk, focusing on environmental, social, and governance risks. This paper also adds references to materiality disclosure in sustainability reports.

The Effect of Intellectual Capital and Sustainability Reporting Disclosure on Financial Performance with Corporate Governance Mechanism as Moderating Variable (Empirical Study on Companies Listed on the Indonesia Stock Exchange in 2017–2021)

This study aims to analyze the effect of Intellectual Capital and Sustainability Reporting Disclosure on the Financial Performance with Corporate Governance Mechanisms as Moderating Variables on companies listed on the Indonesia Stock Exchange for the 2017–2021 period. This study uses 125 sample firms selected through a purposive sampling method. Data were analyzed using the Partial Least Square (PLS) model. The results of this study indicate that Intellectual Capital has no significant effect on Financial Performance and Sustainability Reporting Disclosure has a significant positive effect on Financial Performance. Corporate Governance Mechanisms can moderate the influence of Intellectual Capital and Disclosure of Sustainability Reporting on Financial Performance. The results of this study have implications for companies to pay more attention to investment through intellectual capital and sustainability reporting, and maintain good corporate governance as a form of internal supervision, because it can affect company performance. Keywords: intellectual capital, sustainability reporting disclosure, corporate governance mechanism and financial performance

Pengaruh Profitabilitas, Kepemilikan Manajerial Dan Institusional Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan Di Industri Jasa

This research aims to test and analyze the influence of leverage, managerial ownership, institutional ownership on CSR disclosure in sustainability reports through profitability as a mediating variable. The object of this research is service sector companies listed on the IDX. A total of 45 data were collected using the purposive sampling method. Data analysis was carried out using regression analysis using the SPSS 24 application. The test results showed that leverage and institutional ownership had a positive effect on profitability, while managerial ownership had no significant effect on profitability. Profitability itself influences CSR disclosure. Based on this, profitability can mediate the relationship between leverage and CSR disclosure, but cannot mediate the relationship between managerial ownership and managerial institutional ownership and CSR disclosure.

Evolution and Challenges of Environmental, Social, and Governance Practices: An Analysis of the Brazilian Stock Exchange’s Corporate Sustainability Index

Environmental, social, and governance (ESG) practices are increasingly recognized as critical for corporate sustainability and market competitiveness, driven by heightened expectations from investors, governments, and consumers. This study examines the evolution of ESG practices among companies listed on the Brazilian Stock Exchange’s Corporate Sustainability Index (ISE B3) from 2005 to 2022. We analyzed the index portfolio’s composition, focusing on changes in ESG dimensions over time. The only six long-lived companies in this index, from retail, banking, and energy sectors, were selected for in-depth analysis. We further evaluated the quality and consistency of ESG disclosures in company reports. Findings indicate relevant fluctuations in the number of companies included in the ISE B3 and variations in ESG scores for the companies. These variations may be attributed to the voluntary nature of ESG practices and the absence of standard disclosure. This study reveals a lack of homogeneity in ESG reporting, which could be addressed by establishing more straightforward guidelines and global standards. This research underscores Brazilian companies’ challenges navigating diverse ESG frameworks to align with evolving societal and environmental expectations.

Forward-looking disclosure effects on stock liquidity in China: Evidence from MD&A text analysis

We investigate the impact of forward-looking disclosures in annual reports on stock liquidity in China. Analysis of the MD&A sections within annual reports demonstrate a strong positive correlation between forward-looking disclosures and a company's stock liquidity. This promotional effect appears more pronounced within high-tech companies and those with lower levels of information transparency. Mechanistic tests indicate that the increase in equity liquidity attributable to forward-looking disclosures can be traced to heightened interest from analysts and media coverage. Further examination of the impact of MD&A textual characteristics reveals that improvements in the readability and tone of the text strengthen the effect of forward-looking information on enhancing stock liquidity. Economic consequence tests show that forward-looking disclosures not only enhance stock liquidity but also contribute to expanding investment scale, reducing financing costs, and improving both future firm performance and market valuation. These findings suggest that augmenting the efficiency of capital market information dissemination could significantly bolster financial support for the real economy.

Determinants of disclosure in local government financial reports throughout regency/city in North Sulawesi Province

Determinants of disclosure in local government financial reports throughout regency/city in North Sulawesi Province