Disclosure Of Financial Information Research Articles

Law of Sustainable Development: A Concept and Methodology. Transformation of the ESG Agenda in the Context of Sanction Restrictions

The author deduces, defines and examines the concept of sustainable development law. The paper highlights the formation of the law of sustainable development as a system of norms regulating complex social relations arising in the context of sustainable development (sustainable development relations). The law of sustainable development is already taking shape. It regulates social relations of sustainable development that include environmental, social and corporate relations that mediate social development, ensure satisfaction of the needs of the current generation and do not undermine the ability to meet the needs of future generations. These relations are also regulated by an array of norms of non-state mediating the so-called ESG standards. The author examines a special methodology and specific ways legal impact on regulated social relations characteristic of the law of sustainable development: standardization and conformity determination (comparative methodology). Special attention is paid to the transformation of the law of sustainable development and the ESG agenda in the context of sanctions restrictions. The author concludes that it is advisable to consider the issues of sustainable development and legal regulation of sustainable development relations in modern conditions in the context of differentiated approaches to assessing and promoting sustainability in various areas of public relations. Regulation of public relations in the context of sanctions restrictions should be built with maximum consideration of the instruments of sustainable economic development (assessment of compliance with ESG standards, disclosure of financial and non-financial information, introduction of anti-crisis practices of corporate social responsibility, ensuring a balance of rights and freedoms of citizens in the adoption and implementation of sanctions restrictions, etc.).

INTERNET FINANCIAL REPORTING: MEDIA ANALISIS AKUNTABILITAS PERUSAHAAN FINANCIAL TECHNOLOGY

This study aims to examine the implementation of accountability in the financial technology company in Indonesia. The degree of accountability is measured through financial reporting. This study employed qualitative research using content analysis method. The result of this study reveals that there are 30 out of 106 financial technology companies in Indonesia which apply internet financial reporting to the highest degree of accountability. This study contributes to the stakeholders of financial technology in order to take decision by comparing financial information disclosure between financial technology companies in Indonesia.

Evolution of accounting rules for Small and Medium-Sized Business Entities

The object of this study is problematic issues regarding updating accounting rules in small and medium-sized businesses (IFRS for SMEs) in digitalization. The authors give a critical analysis of significant simplifications in the accounting system and accounting (financial) reporting in the Federal Accounting Standards (FSBU) and other legal acts regulating the accounting and reporting of small and medium-sized businesses. Based on the results of the work, the authors concluded on the advisability of applying certain simplified requirements for the formation and disclosure of financial information by small businesses, considering a thorough check of each of them for negative consequences in the usefulness’s context of this information; the lack of demand for “outdated” recommendations was revealed and the rationality of their cancellation was substantiated. The research showed that in the use’s context of digital technologies, additional IT opportunities are being formed to ensure the information transparency of SME activities and improve the quality of reporting information in sustainable development. The opinion about necessity to develop a separate Federal Accounting Standard for small and medium-sized businesses is substantiated. In the study’s course, the authors applied the methods of analysis, synthesis, comparison, systematic and logical approaches, accepted accounting principles that ensure the usefulness of information for interested users. The obtained results are aimed at the development of accounting practices in the new economic conditions.

Firm Value, Size, Liquidity and the Adoption of Common Accounting Standards: Evidence from Firms Listed on the Amman Stock Exchange

Adopting common accounting standards presents both benefits and challenges to firms and the resultant effects of such adoption vary between firms and countries. The value of firms revolves considerably around the adoption of common accounting standards, firm and country specific factors. Consequently, this study examines the firm size, liquidity and the adoption of common accounting standards on the value of capital and debt market firms listed on the Amman Stock Exchange. A Fixed Effect Model was estimated using data collected from 5 capital market firms and 4 debt market firms listed on the Amman Stock Exchange in Jordan. The data was from the period 2009 to 20018 and was analysed using the aid of Eviews 10. The findings revealed that there is a positive relationship between firm size, liquidity and performance, and stock prices. The disclosure of financial information and an improvement in earnings per share were noted to be causing a decline in stock prices of capital and debt markets in Jordan. Practically, the study implies that sound liquidity, asset and performance management strategies are vital for improving the value of capital and debt market firms listed on any stock exchange. The study also reiterates that improvements in firm value are vital for improving social and economic aspects in any economic context.

Factors influencing the disclosure of additional financial and non-financial information by large enterprises

Nowadays, more than ever, stakeholders are demanding that additional information are disclosed in addition to financial information as part of corporate reporting. This need is being recognized by regulators, who have begun to enact laws requiring large companies to disclose at least the required information and financial information. This study aims to examine some of the possible company characteristics that may influence the extent of information disclosure, particularly the direction of their influence and significance. The study was conducted on twenty (23.53%) listed companies operating in the real sector (non-financial sector) on the Zagreb Stock Exchange. Initially, the content analysis method was used to analyze the reports. In addition, multilinear regression was conducted to measure the influence of specific company characteristics. The research results revealed that the type of auditor, ownership structure, and size of the board of directors have a statistically significant positive influence on the quality of published financial and non-financial information. In contrast, the quotation days have a negative but not statistically significant influence at the 5% significance level. Finally, even though the overall results regarding the disclosure quality can be interpreted as satisfactory, there is room for further improvement regarding financial and non-financial reporting transparency.

FAKTOR-FAKTOR YANG MEMPENGARUHI PERTANGGUNGJAWABAN PENATAAN DANA DESA DI DESA KECAMATAN NAMORAMBE

This research discusses the capacity of village government, internal control systems, and disclosure of financial information on the responsibilities of managing village funds. This study is a brief study with a specific study design of 36 villages with a single sample of village authorities. The corrupted information is primary in nature. The art of this research is quantitative. The results of this study show that the village management capacity has a positive and significant value. On the other hand, village management capacity, internal control system and disclosure of financial information have a significant and significant impact on village fund management responsibilities.

Climate Impact and Corporate Communication: The European and Italian Situation and the Issb Proposal Outlined in Exposure Drafs S2 Climate-Related Disclosure - 29 March 2022

On 29 March 2022, the International Sustainability Standard Board (ISSB), an emanation of the IASB, issued two Exposure Drafts: IFRS S1 General Requirement for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosure. This article will only deal with Draft S2, which proposes a very comprehensive formal and substantive reporting structure concerning the issue of the climate impact of companies' production activities. It must read Draft S2 in the light of Draft S1 since both documents refer to the same rules of conduct and the same formal structure of the external report. The two Drafts S1 and S2 interpreted as documents that form part of a single global vision of corporate communication, show how the ISSB wants to overcome the duality of financial reporting/sustainable disclosure and propose a unified idea of corporate communication. This is also demonstrated by the proposal, contained in Draft S1 and taken up by Draft S2 as an explicit reference to what was stated in the First Draft, to communicate financial reporting and all reports on sustainability and climate change to third parties on the same date and with the same communication tool.

The Relationship Between Financial Reporting and Sustainability Report. The Exposure Draft: IFRS S1 General Requirement for Disclosure of Sustainability-Related Financial Information (From International Sustainability Standard Board) Overcomes the Duality of External Corporate Disclosure

On 29 March 2022, the International Sustainability Standard Board (ISSB), an emanation of the IASB, issued two Exposure Drafts: IFRS S1 General Requirement for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosure. This article will only deal with Draft S1, which proposes a vision of corporate disclosure that goes beyond the Financial reporting of the year/Sustainability disclosure dualism. Draft S1 suggests a unitary corporate communication that, at the same time, disseminates a set of documents to be considered as a whole concerning the company's financial situation, assets and liabilities, income and the actions and strategies implemented concerning sustainability. This proposal proposes a model of global corporate reporting rather than a fragmented one, as is often the case in companies in many countries. However, even in the vision of Draft S1, the presence of the financial statements remains separate from the document providing information on sustainability, even if interpreted as a unitary means of communication. It should also be noted that the sustainability report requires the disclosure of financial data related to the implementation of sustainable policies.

A Study on the Improvement of Local Financial Information Disclosure System to Ensure Financial Transparency

정부의 재원조달 및 지출활동을 포함하여 조세수입, 국공채 발행, 재산 매각 등을 통해 국방·외교 등의 역할과 재원의 배분으로서의 재정작용은, 투명하게 공개하여 재정에 대한 민주적 통제를 강화하는 것이 중요하다. 재정정보의 관리는 재정정보를 투명하게 공개함으로써, 국민의 알권리를 보장해준다는 점에서 정부의 책임성을 강화함과 동시에, 궁극적으로는 국민으로부터 정책에 대한 이해를 높이고 참여를 증진시킬 수 있다. 최근 지방자치의 정착과 발전을 위하여 제도적으로 재정분권을 확대함에 따라 지방재정규모 또한 커지고 있고, 이에 상응하는 패러다임으로 지방자치단체의 재정운영에 대한 책임성 및 투명성 확보를 요구하는 목소리가 커지고 있다. 지방자치단체의 재정운용의 책임성과 투명성을 제고하기 위해 우리나라는 지방재정정보를 주민에게 공개하도록 되어 있고, 이는 몇 번의 개정을 거쳐 한계를 개선하여 왔다. 그러나 재정의 투명성에 관한 주요 국제적 기준에 대해서 살펴보았을 때, 우리나라의 재정정보공개는 몇가지의 한계점을 가지고 있다. 국제적 기준으로서 강조되는 충분한 정보와, 적절한 시기, 그리고 정보의 정보의 정확성의 관점에서 우리나라는 정보의 정확성 측면에서 내용의 세분화가 부족하였고, 충분한 정보의 측면에서 공시되는 내용이 독립적인 감시기구에 의해서 심의를 한다는 점이 미비하였다. 또한 주민이 필요로 하는 내용을 이용가능하게 제공한다는 측면에서 우리의 재정정보 공개는 정보공개 이후의 논의의 장이 미비하는 점도 있다. 국제적 기준에 맞추어 우리나라의 지방재정정보 시스템을 모두 완전하게 개선하기에는 국가마다 배경이 다르기 때문에 어려울 수는 있겠지만 여러 국가의 국제적 흐름에 맞추어 우리나라의 재정정보공시시스템이 개선되기 위해서는 절차와 내용적으로 보완되어야 할 것이다. 지방재정투명성이 보다 강화될 수 있도록 재정정보공개 등 제도적 장치를 보완해야 하며, 지방의회 기능 강화 및 주민참여를 활성화하여 자치단체의 재정운영에 대한 관리기능을 강화해야 한다.

Summaries of Articles

Summaries of Articles

Issues in the Disclosure of Financial Information by Multinational Enterprises

The aim of this paper is to explore issues of investment presentation, financial instruments, earnings disclosure indicators and software aspects of accounting for multinational enterprises. The study is based on the public financial statements of the Solvay Group. The main approach is using two viewpoints – accounting view of financial information and IT view of financial information. The results of this study are useful for other multinational enterprises that prepare their financial statements in accordance with International Financial Reporting Standards and use big data in accounting.

The impact of ownership structure on integrated reporting in European firms

PurposeWithin the theoretical framework of corporate governance, the article aims to examine the impact of ownership structure on the level of disclosure of financial and non-financial information in integrated reporting (IR), and the effect is sensitive to national legal systems.Design/methodology/approachRegressions on panel data are used to study the impact of ownership structure on IR. The present empirical study was based on a sample of 431 European firms belonging to common or civil law for the period spanning 2012 and 2019.FindingsThe results of the linear regressions corroborate the existence of relationships between the ownership concentration, institutional ownership as well as managerial ownership and IR.Research limitations/implicationsThe study have limitations as follows: the role of the ownership structure studied here, the model should incorporate other internal and external control mechanisms to represent reality more fully. The mechanisms include board characteristics, financial market, labor market, the goods and services market, etc. that affect managerial latitude and, therefore, the adoption of IR. Finally, the authors will consider future theoretical and empirical improvement. For example, it would be interesting to extend the theoretical framework to the contributions of cognitive governance and to empirically examine the modeling with a larger sample of firms, including an international comparison.Originality/valueThe study provides evidence as to the disclosure of IR and ownership structure. The originality/value chapter highlights the global need for a generally accepted set of standards for sustainability and IR practices.

THE EFFECT OF FINANCIAL STATEMENTS DISCLOSURE ON FINANCIAL DISTRESS: A STUDY OF INFRASTRUCTURE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

This study examines the effect of the disclosure of financial statements on financial distress in infrastructure companies listed on the Indonesia Stock Exchange for the 2014-2018 period. The research used secondary data obtained from annual reports and financial statements of 19 infrastructure companies. The research utilized a quantitative approach by employing logistic regression analysis to determine the effect of financial statement disclosure on financial distress. The study found that financial statement disclosure has a significant negative effect on financial distress. This finding implies that companies that disclose their financial statements adequately have a lower likelihood of experiencing financial distress. Therefore, companies should prioritize the timely and accurate disclosure of financial information to reduce the risk of financial distress.

Continuous Assurance for the Digital Transformation of Internal Auditing

As a result of the increasing demand on the credibility of the financial information disclosure, internal auditing has been playing an increasingly important role in organizations. Currently, there is a need to ensure the compliance of organizational transactions in real time in order to increase the reliability of the information and to reduce risks. In this context, the concept of Continuous Assurance has emerged, allowing to reduce potential errors and risks and obtain useful information in real time, supporting more effectively the decision making and internal auditing. This paper aims to understand the importance and the use of Continuous Assurance services from the perspective of the internal auditor. So, the methodology used is qualitative and the questionnaire survey was used to collect data from interna auditors in Portugal. The main results demonstrate, among other findings, that the Continuous Assurance services are considered by the internal auditors as very important. Despite this, its implementation in the organizations does not follow the importance assigned to it, and is still far from being fully deployed. The dimension of the audit department is an influential factor in the use of some Continuous Assurance services.

Review Kritis Artikel "Board of Directors and Financial Transparency and Disclosure: Evidence from Italy" Karya Torchia and Calabro (2016)

This study aims to make a critical review of Torchia & Calabro research in 2016 titled “Board of Directors and Financial Transparency and Disclosure: Evidence from Italy”. The critical review is carried out with the aim of mapping out future research opportunities that can be based on Torchia & Calabro's research. Future research that can be mapped out is research on corporate governance which is calculated by a total index which includes the characteristics of the board of directors and commissioners, characteristics of audits, remuneration, internal control and risk management. The relationship with voluntary disclosure which is also calculated by the total index which includes disclosure of the company's strategic management, disclosure of financial information and stock information, disclosure of information on company management structure, disclosure of information on the company's future mission and CSR disclosure. The research will be more comprehensive if it is added with the disclosure of the company's environmental management.

Sustainability and Financial Accounting: a Critical Review on the ESG Dynamics.

This study gives a depiction of what are the general directions taken by international institutions so to tackle the current health emergency and the most pressing environmental issues, such as climate change and COVID-19 (Schaltegger, 2020; Adebayo et al., 2021).The role of companies is crucial under disruptive events, such as a crisis or, more in line with the present time, a pandemic, and the pursue of the shareholder value cannot be the essence and the only objective in doing business anymore, since also ESG (i.e., environmental, social, and governance) dynamics have to be taken in due consideration. Moreover, an adequate and effective corporate governance should lead to higher disclosure quality, which subsequently should help protect the entire planet and ecosystems as well. In this context, the principal role of accounting and corporate reporting activities should be oriented towards making emerge what is and what is not done by companies in their business operations, and the disclosure of financial information is currently deemed inappropriate for pursuing a sustainable growth in the medium and long run (Schaltegger, J Account Org Change 16:613–619, 2020; Kirikkaleli & Adebayo, Sustain Dev 29:583–594, 2020; Tettamanzi, Venturini & Murgolo Wider corporate reporting: La possibile evoluzione della Relazione sulla Gestione Bilancio e Revisione, IPSOA - Wolters Kluwer, Philadelphia, 2021). Thus, the objective of this study is to investigate what international and European institutions have planned to do in order to align corporate objectives with environmental and societal needs in the coming years (Biondi et al., Meditari Account Res 28:889–914, 2020; Songini L et al. Integrated reporting quality and BoD characteristics: an empirical analysis. J Manag Govern, 2021).As of today, our analysis finds that IFRS Foundation (at global level) and EFRAG (at European one) have been taking steps toward the aforementioned issues so to propose disclosure standards more in line with sustainability and environmental needed improvements. In fact, we tried to give a depiction of what are the actual and future strategies that both these institutions are going to put in place: this snapshot will give scientists, engineers, lawyers, and business people an overview of what should be like the corporate world of the near future, from a corporate reporting/accounting perspective (so to better understand what will be expected from companies of all the industries worldwide).

Financial reporting quality and dividend policy: New evidence from an international level

This study examines the link between financial reporting quality and dividend payout across 76 countries. We find that financial reporting quality increases dividend payout after controlling for firm and country specifics. We also investigate different channels that moderate the relation between financial reporting quality and dividend payout. We find that the positive association between high-quality financial reporting and dividend payout is more pronounced when firms have free cash flow problems, face severe information asymmetry, and are located in countries with weaker minority shareholder protection rights. Interestingly, we find evidence that high reporting quality enhances firms' payment of dividend even when these firms already overpaying their shareholders. However, the relation becomes weaker when firms overpass the optimal level of dividend payout. The findings remain consistent after several robustness checks, thus highlighting the effectiveness of more transparent disclosure of financial information in reducing information asymmetry related to firms' internal agency costs and their relationships with external parties.

EDUKASI PERPAJAKAN: UNDANG-UNDANG KETERBUKAAN INFORMASI KEUANGAN SEBAGAI SARANA MEMBANGUN KESADARAN BAYAR PAJAK MELALUI PENDIDIKAN PERGURUAN TINGGI YOGYAKARTA

The large number of people who avoid taxes has made the government look for effective and efficient alternatives to enforce an orderly and legally correct manner, namely by issuing the Law on the Disclosure of Financial Information. The Law on Financial Information Disclosure was published on 23 August 2017. Access to financial information for tax purposes includes access to receive and obtain financial information in the context of implementing the provisions of laws and regulations in the field of taxation and the implementation of international tax treaties. This study aims to analyze how much influence tax education can have on building tax awareness, to analyze how much the Financial Information Disclosure Act is known and understood by prospective taxpayers and taxpayers, and to analyze the effect of the Law on the Disclosure of Financial Information to make Personal Taxpayers. pay taxes orderly. The research method used is Path Analysis.
 Keywords: tax education, disclosure of financial information, tax compliance funds

Banking disclosure and banking crises in Africa: does board gender diversity play a role?

The paper aims to investigate the impact of board gender diversity in explaining the relationship between bank disclosure and the predicted probability of banking crises in Africa. The study employs robust panel estimates based on an aggregate dataset of banks in 42 African countries over the 2006–2018 periods. From the study, board gender diversity (more women on boards and the presence of women on boards) has a positive impact on information disclosure of banks. We find that board gender diversity and bank disclosure have the possibility of reducing a banking crisis. We observe that board gender diversity enhances the reductive effect of bank disclosure on a predicted probability of a banking crisis. The implication is that women on boards provide prudent decisions on financial information disclosure that significantly reduce the possibility of a banking crises in order to ensure stable banking systems.

Corporate governance and disclosure of financial information: a case of listed firms in Sub-Saharan Africa

Corporate governance and disclosure of financial information: a case of listed firms in Sub-Saharan Africa