Disclosure Index Research Articles

Green banking disclosure and firm value: a research study at the commercial bank of Vietnam

ABSTRACT This study investigates the impact of green banking disclosure on the firm value of Vietnamese-listed commercial banks and examines the moderating role of non-performing loans (NPLs) from 2010 to 2023. Using panel data regression and content analysis, we employ the Circular 96/2020/TT-BTC disclosure index to measure green banking disclosure and Tobin’s Q to assess firm value. Our findings reveal that green banking disclosure generally reduces firm value. However, when accounting for NPLs, this negative relationship reverses, indicating a moderating effect. This research uniquely incorporates banks’ intrinsic value alongside Tobin’s Q to test the robustness of our results.

Exploring the synergy of corporate gender diversity, sustainability committee, and reporting ESG practices: An international evidence

This study delves into how gender diversity on the corporate board shapes the reporting of Environmental, Social, and Governance (ESG) practices. Besides, it examines the moderating role of a sustainability committee in the nexus between gender diversity and reporting of ESG practices. It analyzes an international sample of the S&P Global 1200 index from 2011 to 2022. The ESG reporting is based on the Refinitiv disclosure index of the firm ESG scores. The study utilizes various statistical models to provide precise empirical evidence, including fixed effects, a two-stage least squares (2SLS), and a generalized method of moments (GMM). The results demonstrate that disclosing ESG practices is a positive function of the percentages of corporate female board members and executive female directors. This suggests that companies with greater gender diversity disseminate more information about their ESG practices. Besides, a corporate sustainability committee strengthens the positive nexus between reporting ESG performance and corporate female board members and executive female directors. This underscores the moderating role of the sustainability committee in simplifying the nexus between gender diversity and reporting ESG practices. The results offer substantial implications for the leverage of gender diversity on ESG reporting. Policy-setters should actively support and promote greater corporate gender diversity, recognizing its pivotal role in fostering transparency. Additionally, a dedicated sustainability committee is crucial in enhancing the reporting of ESG performance and aligning business practices with sustainable development goals.

Examining The Sustainability Reporting Practices Of An Energy Company Using The Global Reporting Initiative Standards.

A GRI report was collected from a company website from 2016–17 to 2020–21 for the five companies. A content analysis was conducted to assess the extent of environmental disclosure. A disclosure index was created, a check list was created, and percentages were calculated to quantify adherence. Column charts are used for data visualization. The study aims to know how many energy companies disclosed their environmental practices and align with internationally recognized reporting standards.

What are the drivers behind Portuguese companies’ reporting on sustainable development goals?

Objective: This study explores how large Portuguese companies have started to integrate the SDGs into their non-financial reporting practices, and analyses some potential drivers of SDG reporting. Methodology: Standalone non-financial reports were collected from 2016 to 2022, resulting in a total of 161 reports from 41 companies. Through a content analysis of the non-financial reports, an index was developed to measure the level of SDG disclosure. Results: The results show that there is an increasing trend of reporting on the SDGs among large Portuguese companies, albeit at a slow and modest pace, mainly through sustainability reports. On average, Portuguese companies disclose on half of the 17 SDGs. In terms of the determinants of SDG reporting, listing, industry, adherence to the GRI framework and external assurance of reports by a Big4 firm were found to be determinants of SDG disclosure in our sample. Contrary to our expectations, ISO certification, sustainability committee and extended reporting are not significantly associated with the level of SDG disclosure by large Portuguese companies. Limitations: Our study has limitations, notably a small sample size. The SDG disclosure index we used only indicates whether information on SDGs is disclosed, without assessing content extent or quality, potentially limiting stakeholder value. Practical implications: Companies aiming to improve SDG disclosure should consider adopting the GRI framework or seeking assurance from a Big 4 firm. Additionally, regulators could use our findings when designing policies aimed at enhancing SDG reporting. Keywords: Sustainable Development Goals, 2030 Agenda, sustainability reporting, SDG reporting, Portugal.

The Shariah non-compliance (SNC) disclosure index of Islamic banks in Malaysia

Purpose This study aims to examine the Shariah non-compliance (SNC) disclosure index for all 16 Malaysian Islamic banks from 2015 to 2020. Design/methodology/approach A qualitative research methodology was adopted that included content analysis. The data were gathered from banks’ annual reports from 2015 to 2020. To achieve this, firstly, the disclosure index was developed by examining the disclosure requirements of the regulator and previous studies. The index was then used to measure the level of disclosure index for all these banks. Findings The overall average SNC disclosure index for the Islamic banks from 2015 to 2020 remained low at 0.57. However, the values were comprised of mandatory and voluntary items. For the former, the SNC disclosure index was quite high at 0.82, but for the voluntary items, the value was 0.40. Progressive improvement can be observed in the disclosure practices of the majority of the Islamic banks between 2015 and 2020; nevertheless, certain banks displayed a deterioration in their disclosure practices. Research limitations/implications This study has several limitations, including the index used, the research period and the fact that it was restricted to SNC events. Practical implications These findings add value for information users by assuring them of the accountability of Islamic banks in terms of transparency, as well as their effectiveness in managing and mitigating SNC events. Regular monitoring and strong enforcement by the regulator are essential to achieve full compliance with the stipulated requirements. Originality/value This study offers a disclosure index for analysing SNC events in depth by segregating the disclosure into mandatory and voluntary items for each Islamic bank and making recommendations for future research. In addition, it provides a broad overview of current trends in SNC and the associated issues, as well as insights for regulators and the public in terms of the transparency levels of Islamic banks in relation to SNC event disclosure.

The Influence of Enterprise Risk Management, Corporate Social Responsibility, Cost of Capital, and Firm Size on Firm Value

Implementing corporate social responsibility (CSR) and enterprise risk management (ERM) is becoming more important, since it is an indication of a long-term sustainable business. Investigating the effects of ERM, CSR, cost of capital (CoC), and company size on the value of manufacturing sector enterprises in Indonesia is the aim of this study. 56 manufacturing companies that are listed on the Indonesia Stock Exchange and that provide annual reports and detailed financial statements for the fiscal years 2016 through 2019 make up the study’s sample. Firm value is proxied by the Tobins’q (TQ) value. CoC is determined using WACC, CSR is evaluated using each company’s disclosure index, and the firm’s size is indicated by LnTotal Assets. The data in Eviews 12 was analyzed using panel data regression. The study results show that CSR and ERM are essential to raising a company’s worth. The company value increases with the degree of ERM and CSR adoption. The study also found a significant negative correlation between company size and worth. However, this study is unable to show how capital expenses affect the value of a company. Keywords: CSR, cost of capital, enterprise risk management, firm size, firm value

How does market competition affect the reporting of sustainability practices? Insights from the UK and Germany

PurposeThis study tests the proprietary cost of reporting sustainability practices. It explores how market competition impacts the reporting of corporate sustainability information. Further, it examines whether the influence of market competition on sustainability reporting is affected by firm size.Design/methodology/approachIt uses two samples of the UK FTSE 350 and German Frankfurt CDAX nonfinancial firms from 2010 to 2023. The sustainability reporting scores for UK and German firms are their Environmental, Social and Governance (ESG) disclosure scores based on the Bloomberg disclosure index. The Herfindahl–Hirschman index has been utilized to measure a firm’s degree of market competition.FindingsThe results reveal that reporting sustainability practices is a negative function of the degree of market competition. Specifically, companies in highly competitive industries disclose less information about their sustainability practices, suggesting that firms view sustainability reporting as a potential source of competitive disadvantage and, therefore, choose to limit such disclosures to maintain a strategic advantage over rivals. Further, the findings reveal a negative impact of market competition on sustainability reporting among small firms. However, this effect is weak or absent among medium and large firms. The results are more observable in the liberal market economy (i.e. the UK) than in the coordinated market economy (i.e. Germany).Practical implicationsIt provides implications for policymakers and market participants to advocate for more significant policies that promote transparency and encourage companies to report their sustainability practices and performance, especially companies in highly competitive industries.Originality/valueIt provides the first evidence of how market competition influences corporate sustainability reporting, adding a deeper insight into another non-financial dimension of sustainability reporting. Likewise, it reflects the varying priorities of companies of different sizes in managing both competition and sustainability reporting. Besides, it is the first to explore this nexus in two distinct jurisdictions: the UK and Germany.

Author and Spouse/Partner Disclosures Index: Video Sessions

Author and Spouse/Partner Disclosures Index: Video Sessions

Author and Spouse/Partner Disclosures Index: Oral and Poster Sessions

Author and Spouse/Partner Disclosures Index: Oral and Poster Sessions

Market Valuation of Risk Reporting: The Role of Business Model Disclosure

Narrative risk reporting is essential to providing investors with information about company risks. Recent regulations require large companies to disclose narrative information about their main risks, opportunities, and business model (BM) value drivers. While only minimum disclosure requirements are defined, principle‐based guidelines have suggested that companies contextualize risk disclosure by linking it to BM information. Hence, this study investigates the level of integration of BM reporting and risk reporting, and the consequences of such an integration on market values. This research analyzes the annual reports of a sample of UK‐listed companies over four years. Risk disclosure indexes are developed to capture the quality and integration of risk information, and value‐relevance analyses are carried out to investigate the impact of risk reporting on market values. The analyses indicate that narrative risk information is value relevant only when integrated with BM reporting. Additional analyses show that risk information is associated with reduced information asymmetry but only when disclosed risk factors are related to BM information. Hence, BM disclosure can serve as a filter to identify and interpret the most relevant company's risks. The results are valuable to various stakeholders, including academics, standard setters, and professional bodies. The study's policy implications suggest the need to develop guidelines clarifying the definitions of BM and risk and ways to integrate the narrative information, in light of recent regulatory developments in the EU.

Exploring ESG Disclosure: What? And Why? A Study of Leading European Public Hospitals

Abstract The purpose of the article. This article aims to examine the sustainability disclosure practices of public hospitals within the European Union. It aims to identify the scope and trends in environmental, social and governance (ESG) information reported by these hospitals on their official websites and analyze the influence of national frameworks on these practices. Methodology. The study employs a manual content analysis of the official websites of 50 public hospitals from EU Member States, selected from Newsweek’s The World’s Best Hospitals 2024 list. An ESG Disclosure Index (ESG DI) was developed to evaluate the extent of sustainability information disclosed. The index includes 36 items across various sustainability dimensions. Results of the research. The results show that the surveyed hospitals disclosed an average of 48% of the ESG metrics. Governance issues were disclosed the most (59%), followed by social (52%) and environmental (47%) dimensions. Scandinavian hospitals had a higher level of disclosure than their Southern European counterparts. The study highlights the fragmented nature of sustainability disclosure, which tends to report better performing indicators while selectively omitting others.

An evaluation of financial statement quality in pre-versus post-IFRS-7 implementation: the case of Iraqi banking industry

This study compares Iraqi banking financial statements before and after IFRS-7 financial instruments disclosure. “Nijmegen Centre for Economics (NiCE)” qualitative content analysis was used to assess financial statement quality, which was measured using NiCE disclosure index. This study analysed data using a paired sample test to meet its goals. After IFRS-7, financial reporting quality is represented by 2016–2018. Before IFRS-7, it was represented by 2013–2015. In addition, the OLS regression analysis was implemented to assess hypotheses, incorporating data from 24 Iraqi institutions. The univariate analysis (t-test) and OLS regression showed that IFRS-7 improves financial statement “relevance, faithful representation, comparability, and timeliness”. No correlation was found for “understandability”. This study is the first to use Iraqi data and the most recent disclosure index to test the relationship between financial figure quality before and after applying the IFRS-7 financial instruments disclosure standard in developing countries. The results help regulators and policymakers regulate IFRS in Iraq and suggest policy changes to ensure compliance. The findings have major implications for business and policy that executives, lawmakers, and stockholders should consider. This study is applicable to ME countries that share comparable institutional, cultural, and accounting framework characteristics.

Determinants and convergence of biodiversity or extinction disclosures of mining firms in Africa

This study probes into the biodiversity disclosure practices of mining firms in Africa, the determinants and the evidence of convergence using information economics analysis. Data was sourced from 21 mining firms covering the period 2006 to 2019 operating in Morocco and South Africa with various mine sites owned in other countries like Ghana. Using a combination of panel-corrected standard errors regression, logistic regression and the test of beta and sigma-convergence, the study found that there is a moderate level of biodiversity disclosure across African mining firms and there is both beta and sigma-convergence. The study found that board size enhances disclosures on all biodiversity indicators, viz, biodiversity disclosure index, 304-1 (proximity of sites to biodiversity hotspots) being the most disclosed, followed by 304-3 (habitats protected or restored), 304-4 (IUCN Red List Species) and 304-2 (impact of activities on biodiversity). Generally, board size drives biodiversity disclosures but board independence does not. Additionally, the membership of the United Nations Global Compact, a multistakeholder initiative significantly affects every disclosure indicator. Financial leverage drives the disclosure of 3 indicators. Other factors like firm size, multinational enterprise status, profitability, cross-listing, human capital development, and gross domestic product were explored. The results of the analyses are relevant for practitioners, policymakers, regulators and academics alike.

Nexus between corporate governance and FinTech disclosure: a comparative study between conventional and Islamic banks

Purpose This study investigates the impact of corporate governance on FinTech disclosure levels in Jordanian conventional and Islamic banks. It aims to determine whether governance mechanisms affect disclosure practices in the FinTech sector, exploring the interplay between governance and transparency in financial innovations. Design/methodology/approach The research methodology entails a thorough analysis of data from all 15 Jordanian conventional and Islamic banks listed on the Amman Stock Exchange, covering the period from 2015 to 2022. This study uses manual content analysis using a custom FinTech Disclosure Index (FDI) and quantitative analysis with a two-way clustered error regression model. Findings The findings show that corporate governance mechanisms, particularly board size, board meetings and “Big4” audit firms, are crucial in enhancing FinTech disclosure across conventional and Islamic banks. However, Islamic banks consistently show higher disclosure levels than their conventional counterparts, attributed to their distinct governance structures that emphasize ethical governance and transparency. These results indicate an awareness among decision-makers about the importance of business model transformation toward FinTech. Originality/value This study pioneers the introduction of FDI, using it for a novel comparative analysis of FinTech disclosure levels between Islamic and conventional banks. By exploring how various governance structures influence FinTech disclosure, this research provides fresh insights into the interplay between corporate governance and financial technologies in the banking sector.

Social and Relationship Capital Disclosure, Business Model and Firm Value: A Comparative Study of Listed Companies in Kenya and South Africa

The increased volatility and decline in firm value has been observed for companies listed in the Nairobi Securities exchange, Kenya as evidenced by substantial variations between market-to-book values. Company disclosures in integrated reports have long been linked with firm value. However, integration of non-financial information disclosures with financial information in a single report and its worth to the company and its distinctive stakeholders has not been accorded a proper assessment in the African context. While, preceding studies in other settings have shown mixed results, emphasis has been on establishing the total effects. This comparative study was intended to determine the effect of <IR> capitals disclosure on value of listed companies in Kenya and South Africa, focusing on the role of the business model. Specifically, the role of the business model on the relationship between social and relationship capital disclosure and value of listed companies was examined in this research comparing Kenya and south Africa from 2018 to 2020. Positivist research philosophy was applied, while the research design encompassed both exploratory and confirmatory. The study was grounded on the Legitimacy theory. Firm value in this study was proxied by Tobin’s Q ratio, while, social and relationship capital was measured using an unweighted disclosure index. The study population contained 209 listed companies from which a sample of 137 was identified using purposeful sampling technique, comprising of 19 firms listed in the NSE, Kenya and 118 companies listed in the JSE, South Africa. Secondary data was collected from annual integrated reports and financial statements of the targeted firms. Preliminary analyses were conducted, such as descriptive statistics and correlation matrix. On the other hand, mediation effect was analysed by using stepwise regression method. The results depict that social and relationship capital disclosure has a statistically significant positive effect on firm values for both Kenya and South Africa. Further, business model mediates this relationship, with Kenyan listed firms manifesting inconsistent mediation while South African companies reported full/complete mediation. The study therefore recommends that social and relationship capital aspect of integrated reporting in Kenya should be made mandatory because this will improve shareholder understanding of financial statements and appropriate valuation of the firm.

Self-concealment scale (SCS) in middle-aged people: psychometric features and cross-age equivalence test

BackgroundIndividuals’ concealment of negative information and privacy may lead to impaired social interactions and threatened health conditions. This study aimed to investigate the effectiveness of the Self-Concealment Scale (SCS) in the middle-aged Chinese population and to examine the equivalence of the SCS among different age groups.MethodsThe current research adopted the SCS, Distress Disclosure Index (DDI), Revised Cheek and Buss Shyness Scale (RCBS), Social Interaction Anxiety Scale (SIAS), Social Phobia Scale (SPS), UCLA Loneliness Scale (ULS-8), and Kessler Psychological Distress Scale (K10) to survey 1124 middle-aged people. To explore the factor structure of the SCS, the study employed exploratory factor analysis and confirmatory factor analysis. The reliability of the SCS was measured based on Cronbach’s α coefficients, McDonald’s Omega coefficients, and split-half reliability. Correlation analysis was applied to examine the relationship between SCS and RCBS, SIAS, SPS, ULS-8, and K10. Moreover, this study recruited 1458 emerging adults and 1104 older adults to identify the cross-age invariance of the SCS.ResultsExploratory factor analysis of the middle aged adults’ data supported a single factor model. The factor loadings of SCS items ranged from 0.62 to 0.73, the commonality ranged from 0.39 to 0.53, and the single-factor model fitted well. The scale showed a Cronbach’s α coefficient value of 0.895, McDonald’s Omega coefficient of 0.893, and a split-half reliability coefficient value of 0.861. In addition, the SCS demonstrated invariance in emerging adults, middle-aged adults, and older adults. Further analysis showed that the scores of the SCS (F = 3.55, p = 0.029) among emerging adults (M = 26.43, SD = 7.96) were significantly higher than among middle-aged (M = 25.77, SD = 7.79), and older cohort (M = 25.69, SD = 7.91).ConclusionThe SCS revealed favorable psychometric characteristics among the middle-aged Chinese population. The degree of self-concealment among emerging adults was higher than that of middle-aged and older people.

Corporate Environmental Reporting: Do Firms Operating in Environmentally Sensitive Sectors Disclose Enough?

Corporate environmental disclosure has been increasing steadily as it is an essential factor for sustainable development. However, this factor seems to be insufficientl recognised within the Nigerian corporate world. The objective of this study is to assess the level of corporate sustainability disclosures in environmentally sensitive industries in Nigeria. This study is based on secondary data obtained from annual reports of firms listed on the Nigerian Exchange Group (NGX). Data used were collected from 45 sampled companies listed under 6 environmentally sensitive sectors for the 2021 financial year. Content analysis was applied to measure the level of environmental disclosures. The Environmental Disclosure Index (EDI) was prepared based on the Global Reporting Initiative (GRI) Standards. This research used independent sample t-test, analysis of variance, and the Kruskal-Wallis test as techniques of analysis. There were statistically significant differences in firms’ disclosure levels based on environmental certifications. The agriculture industry made the highest environmental disclosure, whereas the companies in the natural resources industry disclosed the least. It was found that companies revealed maximum information on their energy and environmental compliance initiatives, while there was inadequate information in other areas of environmental disclosure, such as supplier environmental assessment, effluents and wastes, and materials. The study provides implications for the strict adoption of a systematic reporting framework, especially for environmentally sensitive firms, while offering insights to guide policymakers, regulatory bodies, industry associations, and businesses in Nigeria to promote transparency and responsible environmental reporting.

NASS 2024 Author Disclosure Index

NASS 2024 Author Disclosure Index

Corporate social responsibility disclosure in Saudi companies: analysing the impact of board independence in family and non-family companies

This study examines the relationship between family-controlled companies and corporate social responsibility practice disclosure (CSRPD) and examines whether board independence influences this relationship. A self-constructed CSR disclosure index is developed to measure the CSRPD in a sample of 152 publicly listed companies in Saudi Arabia from 2016 to 2021. The findings from the pooled ordinary least squares (POLS) regression reveal that family-controlled companies exhibit lower levels of CSRPD than non-family companies. However, family-controlled companies with a higher number of independent directors on their boards show higher CSRPD, indicating a significant positive interaction effect of board independence. These results remain robust even after applying a variety of econometric techniques, including Newey-West regression, panel corrected standard error (PCSE), logistic regression, and addressing endogeneity problems, along with using different measures for CSRPD and family-controlled companies. These findings suggest that the governance structure of the boards, particularly independent directors, can support the prosocial and positive stimulus of socioemotional wealth (SEW) theory. Therefore, Saudi Arabian capital market regulators need to be aware of the importance of companies’ governance structures.

Pengaruh Kualitas Sustainability Report dan Board Gender Diversity terhadap Kualitas Laba: Studi Empiris pada Perusahaan yang Terdaftar di Bursa Efek Indonesia pada Tahun 2018-2021

This research aims to examine the influence of the quality of the Sustainability Report and Board Gender Diversity on earnings quality. The population used in this research is all companies listed on the Indonesia Stock Exchange in the 2018-2021 period. The sampling technique was carried out using a purposive sampling technique, there were 58 companies sampled with observations for 4 years (2018-2021). Profit quality with the Quality Sustainability Report is measured by a disclosure index based on the GRI Standard with a Triple Bottom Line approach (economic, environmental and social). The research results show that in the 2018-2021 observations, the quality of the Sustainability Report had a positive effect on earnings quality and Board Gender Diversity had a negative effect on earnings quality. Future research, focusing on one industrial sector, adding other independent variables and adding a longer time span to the research will provide better results.