Disclosure Of Companies Research Articles

The Evolution of Environmental Reporting in Europe: The Role of Financial and Non-Financial Regulation

The research problem We observed the impact of European, international, and national mandatory financial and non-financial regulations on the corporate environmental disclosure of listed companies in the Euronext 100 between 2002 and 2017. Motivation Our study was motivated by the perfect European context created by the implementation of the IASs/IFRSs, mandatory since 2005, to enhance financial statement comparability across European companies, and by the national transposition of the 2014/95/EU Non-Financial Reporting Directive requiring European listed and large corporations to disclose information relative to their environmental footprint starting January 1, 2017. The test hypotheses H1: Financial legislation through the IASs/IFRSs implementation improves the level of environmental disclosure in Europe. H2: Non-financial legislation through the Non-Financial Reporting Directive improves the level of environmental disclosure in Europe. Target population The paper is useful for: (1) researchers wanting to observe the evolution of environmental disclosure in Europe and the main factors influencing it; (2) CEOs and managers who seek to improve their own financial and non-financial reporting; (3) policymakers to know the impact of national and international regulations on environmental disclosure and practices; and (4) users of annual financial statements. Adopted methodology We hand collected data using the financial environmental grid proposed by Barbu et al. [( 2014a ). Mandatory environmental disclosures by companies complying with IAS/IFRS: The case of France, Germany and UK. The International Journal of Accounting, 49(2), 231–247] for both descriptive and monetary items from the annual financial statements of all French, Dutch, Belgian, and Portuguese companies included in the Euronext 100 index. We used descriptive statistics and regression models to analyze this data. Analyses The results are interpreted through the lenses of neo-institutional theory, legitimacy theory, and homogeneity theory. Findings The results show that mandatory financial and non-financial regulations improved the level of environmental disclosure of European companies from different countries over time, but the level of reporting was still very low. The force of coercive isomorphism is not strong enough to cause companies to be more environmentally responsible and to report more, but normative and mimetic isomorphism, and gaining legitimacy, could have a positive influence on the environmental reporting practices of European companies. Taken as a whole, the policy of “one size fits all” is not appropriate for environmental regulation in Europe and needs to be adapted because each country has a specific culture, tradition, and education regarding environmental values. These values should be improved to promote a better environmental conscience, better individual responsibility, and a tangible feeling of truth and transparency in disclosures, with all these generating real environmental practices and reliable reporting without any trace of greenwashing.

Pengaruh Ukuran Perusahaan, Profitablitas Dan Kinerja Lingkungan Terhadap Pengungkapan Corporate Social Responsibility Disclosure

This study aims to re-calculate empirically the effect of Company Size, Profitability and Environmental Performance on Corporate Social Responsibility Disclosures in mining companies in Indonesia. The population of this study are mining companies listed on the Indonesia Stock Exchange in 2018. The sample selection method uses a purposive sampling technique based on certain criteria. The total number of companies used in this study were 30 companies, the data used were secondary data in the form of company annual reports. The data analysis technique used is linear regression analysis with the result that Company Size, Profitability and Environmental Performance have no effect on Corporate Social Responsibility Disclosure.

Reporting challenges and organisational mechanisms of change: a Latourian perspective on risk disclosure of a pioneer company in integrated reporting

PurposeThis paper aims to explore the reporting challenges and related organisational mechanisms of change associated with disclosing corporate risks within integrated reports.Design/methodology/approachThis paper adopts a Latourian performative approach to explore the organisational mechanisms of change in terms of networks of actors, both “human” and “non-human”, involved in the preparation of risk-related disclosure. Empirical evidence is collected by means of in-depth interviews with the preparers of an integrated reporting pioneer company.FindingsPreparing disclosure on corporate risks in the context of integrated reporting demands close interaction among several actors. When disclosure shifts from listing key risks to providing information on how these risks are managed or connect with corporate strategy and value creation, departments not usually involved in corporate reporting play an active role and external stakeholders offer pertinent insights, benchmarks and feedback. Integrated reporting and risk management frameworks are the “non-human” actors that facilitate the engagement of diverse “human” actors.Practical implicationsPreparers should be aware that risk disclosure within integrated reports requires collaboration among (“human”) actors belonging to different departments and the engagement of external stakeholders. Preparers should consider the frameworks of integrated reporting and risk management as facilitators of cross-departmental discussions and dialogue, rather than mere contributors of guidelines and recommendations.Originality/valueThis study enriches the scant literature on organisational mechanisms of change made in response to integrated reporting challenges, showing subsequent advancements in the organisational process underlying the preparation of risk disclosure.

Enhancing Activity in the Right Temporoparietal Junction Modifies the Effect of a High CEO-to-Employee Pay Ratio on the Perceived Investment Potential in the Construction Industry.

As an increasing number of governments require the disclosure of companies’ compensation information, compensation management is becoming an important part of internal management in the construction industry. Although the literature has shown that disclosing a high CEO-to-employee pay ratio will cause various effects on the decision-making of a company’s potential investors, there is little evidence on the neural basis of such effects. Given that previous neuroscience studies have shown that the right temporoparietal junction (TPJ) is associated with altruistic behaviors, this study used transcranial direct current stimulation (tDCS) to explore the role of the right TPJ in the effects of the CEO-to-employee pay ratio on potential investors’ perceived investment potential in the construction industry. The results show that enhancing activity in the right TPJ significantly reduced the perceived investment potential of female participants, especially those with no investment experience, when the company’s CEO-to-employee pay ratio is high compared to when the pay ratio is medium. This effect was not observed in male participants. The mechanisms underlying these effects of tDCS in the right TPJ on the perceived investment potential were also explored. The main contribution of this study lies in its pioneering exploration of the neural basis of investment decision-making regarding the CEO-to-employee pay ratio. Additionally, it reveals individual feature-based differences in the role of the TPJ in investment decision-making and its possible mechanisms.

Firm Value: CSR Disclosure, Risk Management And Good Corporate Governance Dimensions

This study aims to examine the effect of Corporate Social Responsibilty(CSR) disclosure and risk management on firm value with Good Corporate Governance(GCG) as a moderating variable. The research sample was conducted on mining companies listed on the Indonesia Stock Exchange for the 2015-2019 period of 27 companies with a total of 120 observed data . The data were analyzed by panel data regression processed with Stata 15 software. The results showed that CSR disclosure had a negative effect on firm value. Meanwhile, risk management has no effect on firm value. Furthermore, GCG as a moderating variable, proven to be able to streng then the relationship of CSR disclosure to firm value. However, GCG cannot be a moderating variable between risk management and firm value. Financial performance and firm size proved unable to be control variables in relation to the effect of CSR and risk management on firm value. The limitation of this research is that it is limited to mining companies listed on the IDX so that it can give different results if carried out in different industries. This research can contribute to the accounting literature related to firm value, especially with regard to CSR disclosure, risk management and GCG in companies in Indonesia.

INTERNATIONAL TRANSFER PRICING AND TAX DISCLOSURE ON MULTICULTURAL COMPANIES IN NIGERIA

The study examines the effect of transfer pricing on tax consideration of multicultural companies in Nigeria. It specifically examined the effect of tax expenses, tunneling incentive as well as foreign exchange exposure on tax disclosure of Multicultural companies in Nigeria. The study adopted an ex-post-facto research design and secondary data was gathered to analyze the relationship between the variables. Purposive sampling technique was used to select 76 Multicultural companies in Nigeria. Data for the study were gathered from annual reports of selected firms for the period of 11 years (2010-2020) and analyzed using Generalized Method of Moments (GMM) estimator. Panel data was used which consists of 760 observations analyzed using multiple regression model. Robust regression model was employed to test the effect of transfer pricing and tax consideration. The Hausman test result revealed that tax expenses and tunneling incentives have positive and significant effect on tax disclosure with coefficient of 0.0352 and 0.1282 which is significant at 5% (p=0.005,0.039) respectively, foreign exchange exposure has negative and significant effect on tax disclosure with coefficient of -0.0935 which is significant at 5% (p=0.248). The study therefore, concluded that transfer pricing have strong statistical relationship with tax consideration of selected multicultural companies in Nigeria. The study recommends that non-controlling interest, foreign exposure and debt ratio are important variables to consider when the management of selected multicultural companies in Nigeria decides on tax disclosure

The Board of Directors and the Audit Committee as Internal Governance Mechanisms and their Impact on Corporate Risk Disclosure in Light of COVID-19 Pandemic

The COVID-19 pandemic worsened during 2019, and it came to confirm the importance of implementing governance mechanisms in light of what the pandemic revealed that the weakness of governance mechanisms was one of the factors that contributed to the decline in performance of many companies during the pandemic, which prompted companies to rely on the best effective governance mechanisms; to deal with the risks resulting from the pandemic, and to disclose them transparently, to ensure the survival of companies in light of the challenges posed by the COVID-19 pandemic. Therefore, this study came to investigate the impact of the internal governance mechanisms (the board of directors and the audit committee) on the corporate risk disclosure of industrial companies listed on the Amman Stock Exchange in light of the COVID-19 pandemic. The descriptive statistical approach was used, and the study population consisted of workers in the board of directors and the audit committee in industrial companies, (80) questionnaires were distributed, the number of questionnaires retrieved and valid for analysis was (70) questionnaires. The study showed the existence of a statistically significant impact of the internal governance mechanisms (the board of directors and the audit committee) on corporate risk disclosure in industrial companies. The study recommended that industrial companies, in light of emergencies and uncertainties, constantly review their strategies and policies for dealing and disclose any risks that may result from those emergencies or uncertainties.

Towards comprehensive corporate sustainability reporting: an empirical study of factors influencing ESG disclosures of large Czech companies

PurposeBusinesses nowadays face unprecedented pressures from stakeholder groups to become more transparent by issuing comprehensive reports describing their environmental, social and governance (ESG)-related activities, strategies and policies. This paper’s primary motivation is to understand which ESG disclosure factors are relevant for large Czech companies.Design/methodology/approachTo achieve the above-stated goal, the total ESG disclosure index, consisting of three subindexes (ESG) was constructed and calculated for the 100 largest Czech companies. Furthermore, the relationships between firm-level factors and ESG disclosure indexes were estimated by using censored regression models.FindingsThis study found that revenue, number of employees and profitability positively influenced the total ESG disclosures. On the level of the three ESG components, this study found that revenue positively impacted environmental and governance disclosures while the number of employees positively affected social and governance disclosures. Moreover, profitability affected social and governance disclosures positively for large Czech companies. However, this study did not observe a significant relationship between board attributes and ESG disclosures.Originality/valueThis paper extends academic literature on ESG disclosures by verifying the significance of firm-level factors in the context of Czech business realities before the adoption and transposition of the Corporate Sustainability Reporting Directive. More specifically, this study has investigated the ESG reporting together and separately for ESG factors. This separation is vital as firms vary in reporting processes across these factors.

Quality of voluntary modern slavery disclosures: top Australian listed companies

PurposeThere is a growing concern over the need for greater transparency of quality information by companies about modern slavery to contribute toward elimination of the practice. Hence, this paper aims to examine factors behind the quality of voluntary modern slavery disclosures and major sources of pressure on Australian company disclosures in a premodern slavery legislated environment.Design/methodology/approachContent analysis and cross- sectional regression modeling are conducted to analyze factors determining the quality of voluntary modern slavery disclosures of the top 100 firms listed on the Australian Stock Exchange and their implications for institutional pressures.FindingsResults indicate that size, assurance by Big-4 firms and publication of stand-alone modern slavery statements are significant drivers of disclosure quality in the sample. Profitability, listing status and the degree of internationalization are found to be unrelated to the quality of voluntary modern slavery disclosures. Industry classification is significant but only partly supports the prediction, and further investigation is recommended.Practical implicationsThis paper provides a foundation for regulators and companies toward improving the quality of their modern slavery risk disclosures with a particular focus on prior experience, assurance and size. In practice, contrary to suggestions in the literature, results indicate that monetary penalties are unlikely to be an effective means for improving the quality of modern slavery disclosure. Results of the study provide evidence of poor quality of disclosures and the need for improvement, prior to introduction of modern slavery legislation in Australia in 2018. It also confirms that regulation to improve transparency, through the required publication of a modern slavery statement, is significant but not enough on its own to increase disclosure quality.Originality/valueTo the best of the authors’ knowledge, this is the first research examining company level factors with an impact on voluntary modern slavery disclosure quality and the links to institutional pressures, prior to the introduction of the Commonwealth Modern Slavery Act 2018.

Profitability, Leverage, Firm Size and Enviromental Performance Moderated Company Profile in Company CSR Disclosure

This study aims to determine and analyze the effect of profitability, leverage, firm size and environmental performance moderated by company profile variable on the CSR disclosures of companies listed the IDX in 2014-2019. Based on purposive sampling, there were 12 companies according to the research criteria multiplied by the number of 6 years of observation, 72 data were processed and analyzed using multiple linear regression. The result of simultaneously, the variables of profitability, leverage, firm size, environmental performance and company profile have a significant influence on CSR Disclosure. Partial testing shows that only leverage has a significant effect on CSR disclosure, while profitability, firm size, environmental performance and company profile have no significant effect on CSR disclosure.

Do ownership structures and governance attributes matter for corporate sustainability reporting? An examination in the Indian context

PurposeBased on the essence of the legitimacy and agency theories, this study empirically investigates the influence of corporate governance attributes and ownership structures on sustainability reporting of companies listed on the National Stock Exchange (NSE), India.Design/methodology/approachThe study is based on panel data regression analysis of sustainability reporting practices of 53 environmentally sensitive companies drawn from NIFTY100 Index at NSE. All data pertaining to sustainability information disclosure, ownership structure and corporate governance characteristics were sourced from sustainability report, business responsibility report, annual report and Centre for Monitoring Indian Economy (CMIE) database for the years 2015–2019.FindingsThe empirical result reveals that sustainability reporting scenario has been consistently improving in India. This study documents that government ownership and frequency of board meetings are the two most important factors significantly influencing the extent of sustainability information disclosure of companies. However, the present study failed to find any significant impact of board size and big4 auditing on sustainability reporting practices. Unexpectedly, a higher number of independent directors does not improve sustainability disclosure of companies in India.Originality/valueThis study is one of the first studies to investigate how the nature of ownership and corporate governance characteristics contribute to or impede sustainability reporting practices of companies in India. This study offers important insights to regulators, practitioners and investors to analyze whether sustainability disclosure of companies is influenced by corporate governance attributes. It also provides a perspective for regulators and corporate strategists to assess the impact of recent corporate governance reforms in India and consider how corporate governance mechanism can be used to improve sustainability reporting practices.

Determinan Return Saham Sektor Industri Pertambangan di Indonesia

The goal of this research is to analyze the determinants of stock return disclosure of mining sector companies listed on the Indonesia Stock Exchange in 2016-2020. In processing the data, this research uses the SPSS 26 program and uses a multiple regression model to verify the relationship between dependent and independent variables. The independent variables profitability ratio (ROA, ROE, ROI), debt to equity ratio (DER), total asset turnover (TATO), oil price and exchange rate. The results of this research shows that profitability ratio (ROA, ROE, ROI) have no effect on stock return, DER in the ROA equation model has no effect on stock returns. Meanwhile, DER in the ROE and ROI equations has a negative effect on stock returns. TATO has no effect on mining company stock returns in all equation models. FOREX / Exchange rate has a negative effect on stock returns of mining companies in all equation models.

Is the cruise enterprise giant also a giant of social responsibility for sustainable development？

The rapid development of cruise tourism, while promoting economic development, has negative effects that cannot be ignored. Cruise lines, as the main body of cruise tourism operations, have the responsibility to make substantial efforts to reduce the negative effects they generate. In this paper, we will construct a cruise industry CSR evaluation index system, and use content analysis and hierarchical analysis to analyze and evaluate the CSR performance of the two major cruise groups that account for 70% of global capacity: Carnival Cruise Group and Royal Caribbean Cruise Group. The study found that: although the CSR fulfillment of cruise companies has improved in recent years, the scores of Carnival and Royal in 2017 were 0.75 and 0.68, respectively, and the disclosure of indicators was only 83% and 65% of the requirements of the guidelines. Moreover, the CSR scores and indicator disclosures of cruise companies are uneven across dimensions, with low social and environmental scores, and disclosure indicators are mostly management indicators, while both measure effects and negative information data are ignored. This indicates that the cruise industry is in the initial stage of CSR management, and cruise line enterprises still lack the attention and initiative to take responsibility for the social and environmental impact responsibilities of cruise tourism.

Discrepancies in reporting on human rights: A materiality perspective

AbstractMotivated by the ongoing debate on materiality in environmental, social, and governance (ESG) reporting and the limited attention in the academic literature to date, our study conducts a comprehensive analysis of 1341 ESG reports published by companies across 35 ICB sectors with a particular lens on the commonalities and discrepancies in the choice of material topics on human rights disclosures. The choice of human rights as our topic of interest is driven by the fact that our sample includes companies across various industries/sectors and geographical locations and thus an effective analysis of their reports and the thought‐processes behind them should be done on the basis of topics that apply to a broad range of companies regardless of their country of origin or industry, as well as other systematic and idiosyncratic factors. The reports were examined based on the Global Reporting Initiative (GRI) G4 guidelines to identify a company's disclosure (or lack thereof) on 12 human rights topics. Our analysis of ESG reports comprises the entirety of ESG/sustainability reports contained by GRI's Global Reporting database (www.globalreporting.org/). Our findings suggest that companies diverge considerably in their choices of material human rights disclosure topics. Both industry/sectorial and country/regional factors play an important role on the divergence in materiality assessments. In our further analysis and discussion of the findings, we provide a closer look at the extent to which a consensus has achieved on the disclosure of topics along with potential explanations for the observed divergence in disclosure choices/behavior.

Pengaruh Profitabilitas, Leverage, Dan Ukuran Perusahaan Terhadap Pengungkapan Corporate Social Responsibility

This research aims to find out the effect of Profitability, Leverage, and Company Size on CSR Disclosure on companies listed in the kompas 100 Index in 2018-2019. The population in this study is a company listed in kompas100 index in 2018-2019 with purposive sampling techniques so that 140 companies are listed in the kompas100 index as samples. The type of data used is secondary data by using documentation methods as data collection. The data analysis techniques used are the outlier test, normality test, multicollinearity test, heteroskedasticity test, autocorrelation test, multiple linear regression analysis, hypothesis test. The results of this study showed that Profitability and Corporate Size did not contribute to CSR Disclosure, while Leverage contributed to CSR Disclosure in companies listed in kompas100 Index in 2018-2019. All these independent variables simultaneously contribute to CSR Disclosure.

Risk Information in Non-Financial Disclosure

This paper aims to research the topics related to risk included in non-financial disclosure (NFD) of companies listed on the Warsaw Stock Exchange (WSE) and explore factors that influence the risk topics ratio in NFD. We applied a content analysis using topic modeling to discover latent risk topics in NFD. Next, with Ward’s clustering, we identified four groups of companies with a homogenous risk topic mixture. For causal analysis, to explain the differences in risk topics ratio, we used qualitative comparative analysis (QCA), which allowed us to obtain three paths (variable configurations) leading to the high ratio of risk topics in NFD. Our results suggest that companies disclosing risk information extensively in their NFDs concentrate almost solely on social risk matters. In contrast, companies talking briefly about environmental and social (E&S) risk prepare their NFDs with a more balanced distribution of E&S topics and their financial implication. In general, the companies’ exposure to E&S risk and the use of NFD standards and guidelines as well as the type of NFD impact the space dedicated to risk information. This paper contributes to academics and regulators, filling the gap about risk disclosure in the NFD, identifying the nature of corporate risk disclosures, and upgrading research about determinants of risk information in non-financial disclosure.

Corporate Governance and Environmental Sustainability Disclosure in Non-financial Companies Quoted in Nigeria

Environmental sustainability performance and its disclosure are not company’s primary objectives rather are practices that lift the reputation of company in society. Environmental sustainability disclosure is not mandatory by accounting standards; however, information on environmental sustainability is of interest to various stakeholders for informed decision making. Financial reporting does not provide sufficient information for stakeholders to make an informed decision. It is with a view to addressing this concern that the study investigated the impact of corporate governance on environmental sustainability disclosure of non-financial companies quoted in Nigeria. <i>Ex-post facto</i> research design was adopted for the study. The population was 109 non-financial companies quoted in Nigeria as at 31 December, 2020. Stratified and purposive sampling techniques were used to select a sample of 72 non-financial companies that were in existence for a period of 9 years, 2012 to 2020. Data were extracted from published annual reports of the sampled non-financial companies and validated by certification of external auditors and the Nigerian Stock Exchange. Data were analyzed using descriptive and multiple regression analysis. The study found that the combined effect of corporate governance (CG) had a significant effect on environmental sustainability disclosure (END) (<i>Adj. R²</i>= 0.1783, <I>F</I>(6, 641) = 170.58, <i>ρ </i>= 0.00). The separated effects were varied. Board Independence (BOI), Nomination Committee (NOC), and Sustainability Responsibility Committee (SRC) have a positive and significant effect on END (BOI=0.0031, t-test=5.28, <i>ρ </i>= 0.001; NOC=0.1391, t-test=3.50, <i>ρ </i>= 0.008; SRC=0.6165, t-test=6.68, <i>ρ </i>= 0.000). Risk Committee (RIC) and Remuneration Committee (REC) have a positive and insignificant effect on END (RIC=0.0519, t-test=1.61, <i>ρ </i>= 0.147; REC=0.0083, t-test=0.020, <i>ρ </i>= 0.849) while Board Meetings has a negative and insignificant effect on END (BOM=-0.0016, t-test=-0.27, <i>ρ </i>= 0.792). The study concluded that corporate governance enhanced environmental sustainability disclosure of non-financial companies quoted in Nigeria. The study recommended that management should institute sound corporate governance mechanisms, especially a sustainability responsibility committee to enable improved environmental sustainability practices and their disclosure.

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

Drivers of voluntary intellectual capital disclosure in agriculture companies listed in IMT-GT countries

Drivers of voluntary intellectual capital disclosure in agriculture companies listed in IMT-GT countries

Voluntary Disclosures of Indian Microfinance Institutions

The microfinance sector is growing at an astonishing rate in India. Reserve Bank of India, from time to time, comes up with a lot of directions to maintain transparency and governance in the microfinance sector. The current study focuses on the voluntary disclosure (VD) of the Non-Banking Financial Companies- Microfinance Institutions in India. The study constructs an unweighted index to measure the VD scores of the firms. The study also estimates the technical efficiency of the firms in meeting dual objectives of social and financial efficiency of the microfinance institutions. The empirical testing derived the association of the VD score and the efficiency from the data sourced from 2015 to 2019. The findings suggest a negative association between VD and efficiency. The study's major contribution is the type of VD disclosed by the firms. Finding also suggests that firms consider discretionary disclosure a wasteful activity. The dual performance is low but shows a gradual increase. The study is relevant for the policymakers and managers to check the disclosure strategy and the patterns of these firms, which mainly depend on the donors for raising funds for their sustainability.