Quality Of Information Disclosure Research Articles

Impact of Corporate Governance Characteristics on Integrated Reporting Quality: An Empirical Analysis, Evidence from India

The research on integrated reporting (IR) has grown swiftly over the past decade, and specific attention is given to the disclosure quality of IR information across the globe. The objective of this study is to investigate the association between board characteristics and integrated reporting quality. The analysis selected 46 Indian listed companies with 138 firm-year observations over three years. The study found a positive impact of board size, CEO duality, non-executive board members, financial leverage, the COVID-19 crisis and firm size on IR quality. The study found a negative effect of gender diversity, board activity and profitability on IR quality. This study is the first to examine the effect of board features on the implementation and adoption of IR in the Indian context. Moreover, the study offers key insights for researchers, practitioners, accounting bodies, government agencies, investors and policymakers into the use of integrated reporting and sound decision-making.

Institutional site visits and corporate innovation: The role of analyst coverage

By exploring additional information, both institutional investors' site visits and analyst coverage can stimulate corporate innovation. However, because analysts are more specialized in information exploration, their existence should weaken the effect of institutional site visits on corporate innovation. Using Chinese listed firms from 2009 to 2013, we investigate the effect of institutional site visits on firms' innovation output, with a focus on its heterogeneity from analyst coverage. We use patent citation records to accurately measure firms' innovation output. We find that institutional site visits significantly enhance corporate innovation among firms without analyst coverage, among firms with low analyst coverage, while this effect turns insignificant among firms with high analyst coverage. IV estimations confirm the causality. Additionally, we find that our major results exist only among non-SOEs, firms with a lower quality of information disclosure, firms with lower liquidity, and newly listed firms. Overall, this paper helps better understand the interaction between institutional site visits and analyst coverage regarding information exploration.

Ecological product value accounting and analyst behavior

Ecological product value accounting, a key method for companies to promote green transformation, is essential to an economy’s healthy development. This study collates data on the annual ecological product value accounting of listed companies from 2001 to 2021, conducts regression analysis, and investigates the impact of these companies’ ecological product value accounting on analyst behavior. The results reveal that, first, listed companies with ecological product value accounting attract a higher number of analysts. Second, companies accounting for ecological product value have a high quality of information disclosure, with less deviation of analysts’ prediction and high accuracy. Third, the development of ecological product value accounting of listed companies reduces the divergence degree of analysts. This study reveals a significant correlation between ecological product value accounting and analyst behavior. To some degree, ecological product value accounting is an important indicator of whether a company has long-term development potential. On the basis of regression analysis, the study also focuses on the impact of ecological product value accounting on investor confidence and company value. The study findings can provide reasonable suggestions for the decision-making of stakeholders of listed company.

The Impact of Carbon Emission Trading System on ESG of Agricultural Enterprises: Evidence from 24 Listed Agricultural Companies in China

With China’s dual carbon goals of carbon peaking and carbon neutrality, the carbon emission trading system will play a crucial role. In addition, agriculture, which is closely linked to carbon emissions, is a foundational industry in China. It is worth paying attention to how it responds to carbon emission trading policies. This study uses data from agricultural listed enterprises from 2009 to 2022, and employs the Difference-in-Differences (DID) method and the intermediary effect model. The evidence suggests that the the carbon emission trading system will significantly improve the the ESG evaluation of agricultural enterprises. Furthermore, green management innovation, green total factor productivity, and CSR information disclosure quality of enterprises will act as intermediaries. The study calls for the government to accelerate the establishment of a national carbon trading market, improve reward and penalty systems, and evaluation frameworks for green innovation in agricultural enterprises. It also emphasizes the need to strengthen pre-subsidies for small-scale enterprises, encourage environmental literacy training for management personnel in agricultural enterprises, intensify green innovation efforts, and establish relevant department assessments of corporate social responsibility.

Effect of industry-specialist auditors, auditor's tenure, and auditor's size on the quality of disclosure in the UAE Stock Exchange

Having access to real-world information and accurate data is a key factor in improving auditor performance, which in turn impacts business performance and decision-making. Consequently, this research aims to determine how financial institutions' levels of experience impact the accuracy of the information they disclose. The present statistical population consists of all 127 businesses listed on the United Arab Emirates Stock Exchange. This type of research is categorized as applied studies in relation to the research methods used in the UAE stock market. Using a systematic deletion procedure, 46 companies were chosen based on the study's inclusion criteria. The findings revealed that in the UAE, the quality of financial information disclosure for companies listed on the UAE stock exchange is significantly affected by the auditor's decision-making experience, the duration of their job, and the size of the auditor.

Stock market liberalization and management earnings forecasts: Evidence from a quasi‐experiment in China

AbstractThis study examines the impact of Chinese stock market liberalization on the quality of firms' information disclosures. Although previous studies have explored the economic outcomes of stock market liberalization, little is known about its impact on the quality of management earnings forecasts. We treat China's Stock Connect program as a quasi‐experiment and draw data from Chinese A‐share‐listed companies from 2012 to 2017. Using a staggered difference‐in‐difference model, we find that eligible firms issue more accurate earnings forecasts after implementation of the Connect program compared with ineligible firms. Our mechanism analyses show that the positive effect is more pronounced for firms with initially opaque information environment and higher ex ante agency costs, suggesting that market liberalization facilitates higher‐opaque firms to issue more accurate earnings forecasts to meet the information demand from foreign investors, and facilitates monitoring in firms with weak internal governance, thereby improving earnings forecasts quality.

The “Double-Edged Sword” effect of air quality information disclosure policy—Empirical evidence based on the digital transformation of Chinese listed companies

Enterprises' digital transformation (DT) has become crucial to enhancing competitiveness and fostering economic development. However, alongside economic progress, the issue of air pollution on a global scale has garnered widespread attention from governments and the public alike. In addressing the air pollution challenges amidst economic development, the Chinese government enacted the Air Quality Information Disclosure Policy (AQIDP) in 2012. While this policy is generally seen as an effective measure to improve the environment, its impact on microeconomic factors, particularly the digital transformation of enterprises, remains unclear. This paper employs a difference-in-differences model to study the effect of AQIDP on DT using a sample of 3347 Chinese-listed companies from 2012 to 2021. We find that AQIDP significantly inhibits DT, a result that holds even after a series of robustness tests. Our mechanism tests reveal that AQIDP weakens DT by increasing economic policy uncertainty in companies, reducing human capital, and exacerbating the crowding-out effect of environmental protection investments. Heterogeneity analysis shows that AQIDP exerts a more significant inhibitory effect on DT in cities with stricter environmental regulations, more backward industries, and companies with non-high-pollution, high-tech characteristics and non-state-owned. Further analysis reveals that although AQIDP significantly restrains DT, it leads to positive environmental effects, such as promoting pollution reduction and carbon emission reduction in companies. Based on these findings, this paper proposes policy recommendations to improve the digital transformation of companies.

The short board effect of ESG rating and corporate green innovation activities.

This article aims to investigate whether differences in ESG ratings have an impact on corporate green innovation behavior. A high-order fixed effects model was established using panel data from Chinese companies from 2009 to 2022 to empirically test the impact of ESG rating divergence in the Chinese market on corporate green innovation behavior.The study demonstrates that ESG rating disparity raises the quantity but lowers the quality of businesses' green innovation efforts because of the short board effect. After a series of robustness tests, the results are still valid.The mechanism investigation reveals that both an external pressure channel and an internal strategy adjustment channel are responsible for the impact of ESG rating disparity on green innovation efforts. The asymmetry of corporate green innovation activities is exacerbated by managers' self-interest, whereas the asymmetry of green innovation is mitigated by the caliber of government. According to the heterogeneity analysis, the divergence of a business's ESG rating between large-scale, non-heavy polluting, and places with strong environmental regulations can effectively slow down the asymmetric behavior of enterprise innovation activities. Additional investigation reveals that the phenomenon of ESG rating divergence spreads across industries and geographical areas. The short board effect of ESG rating divergence can be effectively mitigated by improving the quality of enterprise information disclosure and speeding up the digital transformation of businesses. The research conclusion provides marginal contributions on how to improve China's ESG rating system and how enterprises can identify ESG rating differences and make scientific decisions.

A comparative study of environmental information disclosure between banks in net-zero banking alliance and China

This study compares the discourse and quality of environmental information disclosure (EID) in reports from five banks in Net-Zero Banking Alliance (NZBA) and four banks in China over the period 2016–2021. Python is employed as the primary research tool to work out the high-frequency words and the word co-occurrence matrix. With the theoretical framework of the Global Reporting Initiative's (GRI) six principles for defining report quality, the Analytic Hierarchy Process (AHP) is employed to construct a quality assessment model, calculating the total weight of each corpus. The results indicate distinct differences in the information disclosure themes between NZBA and Chinese banks. As for the quality, NZBA banks exhibit higher quality environmental information disclosure compared to Chinese banks. Specifically, NZBA banks outperform in the principles of balance, accuracy, and clarity. This study contributes significantly to the analysis of environmental information disclosure, highlighting disparities in discourse and report quality between NZBA and Chinese banks. The findings offer valuable insights for banking practitioners, aiding them in enhancing the quality of environmental information disclosure. This study further reflects the varying economic and developmental priorities of the two banking contexts, influenced by economic and technological cycles.

CFO SERVING AS BOARD SECRETARY AND ENTERPRISE SUSTAINABLE DEVELOPMENT PERFORMANCE

This study utilizes data from Chinese A-share listed companies from 2010 to 2020 as research samples to explore the impact of CFOs serving as board secretary on the quality of information disclosure, financing constraints, and enterprise sustainable development performance. The empirical results indicate that CFOs holding the additional role of secretary of the board significantly enhance the financial performance and environmental and social responsibility performance of companies. The quality of information disclosure and financing constraints act as mediators between the dual role of the CFO and sustainable development performance. Heterogeneity analysis finds that in non-state-owned enterprises and small and medium-sized enterprises, the effects of CFOs serving concurrently as secretaries of the board on improving financial performance, environmental social responsibility performance, information disclosure quality, and alleviating financing constraints are more pronounced. The findings of this study delve into the impact of the dual role of CFOs on sustainable development performance, enrich the literature in the relevant field, and provide valuable theoretical basis and practical guidance for the selection and appointment of corporate executives, tailored for journal publication requirements.

The Quality of Financial Information Disclosures and its Contribution to Financial Stability of Commercial Banks in Kenya

The Quality of Financial Information Disclosures and its Contribution to Financial Stability of Commercial Banks in Kenya

Is managerial myopia detrimental to corporate ESG performance?

This study explores the nexus between managerial myopia and corporate Environmental, Social, and Governance (ESG) performance within the framework of China's A-share listed companies from 2010 to 2020. We provide a novel insight into how the temporal orientation of managerial decision-making significantly impacts ESG outcomes, highlighting the adverse effects of a short-term focus on sustainable corporate development. Using a robust dataset, we delineate the mechanisms through which managerial myopia undermines ESG performance, specifically in green innovation and corporate information disclosure quality. Further, it examines the efficacy of external governance mechanisms, such as the increased liquidity of stocks and the engagement of Big 4 accounting firms, as mitigating factors. The paper's methodology combines advanced regression analysis with propensity score matching to validate the causal relationship between managerial myopia and ESG performance, controlling for potential endogeneity and selection bias. The findings suggest that managerial myopia indeed poses a significant challenge to achieving high ESG standards, with implications for both policymakers and corporate governance practices. This study contributes to the broader discourse on corporate sustainability by linking managerial cognitive traits to ESG performance, with a specific focus on the Chinese market, thereby enriching the understanding of ESG dynamics in emerging economies.

Research on the impact of green mergers and acquisitions of heavily polluting enterprises on the quality of environmental information disclosure: empirical evidence from listed companies in China

AbstractGreen mergers and acquisitions are an important means for heavily polluting enterprises to achieve green transformation. Previous studies have yielded inconsistent conclusions regarding the relationship between green mergers and acquisitions and the level of corporate environmental management, possibly due to the omission of considering the quality of corporate environmental information disclosure. Therefore, based on a sample of 908 observations of heavily polluting listed companies on the A-share market of Shanghai and Shenzhen from 2010 to 2019, Utilizing a fixed-effects model, this study empirically examines the relationship between green mergers and acquisitions and the quality of environmental information disclosure and further explores the boundary effects of government environmental regulation and property rights on this relationship. The results show that green mergers and acquisitions of heavily polluting enterprises have a significantly positive impact on the environmental information disclosure quality of acquiring firms, and government environmental regulation positively moderates the relationship between green mergers and acquisitions and environmental information disclosure quality. Through subgroup analysis based on different property rights, it is found that compared to non-state-owned enterprises, state-owned enterprises exhibit a stronger positive relationship between green mergers and acquisitions and the quality of environmental information disclosure. This study has further enriched the relevant literature on green M&A and environmental information disclosure, provided new ideas for heavy polluting enterprises to achieve green transformation, and provided a reference for the government and enterprises to take countermeasures and suggestions.

Price signal or blockchain technology? Quality information disclosure in dual-channel supply chains

Quality information asymmetry regardless of online or offline channels have damaged the profits of high-quality manufacturers. Price signal and blockchain technology (BCT) are two strategies to eliminate this asymmetry, with BCT potentially incurring higher costs but also boosting demand potential. Therefore, in a dual-channel supply chain consisting of a manufacturer with private quality information and a retailer, we use a game-theoretic model to investigate which information strategy should be adopted by the high-quality manufacturer. Main results unveil a counterintuitive finding: the high-quality manufacturer may not reap greater benefits from BCT despite its ability to simultaneously boost prices and demands in both channels; conversely, the retailer can still derive benefits from BCT even if it fails to augment the expected demand in the retail channel. We attribute this phenomenon to two key effects of BCT: the information effect and the basic demand expansion effect. Additionally, we highlight the pivotal impact of channel market share on the value of these two strategies, as it not only affects the efficiency of information transmission through the price signal strategy but also the distinct demand enhancement that BCT offers to both channels. Specifically, for the products with a lower production cost difference and a higher market share in the retail channel, our research demonstrates that BCT has the potential to benefit the entire supply chain. This paper provides practical guidance for the strategic implementation of BCT in dual channels.

Assessing the impact of government-led green supply chain demonstration on firms' financial distress: The role of environmental information disclosure quality and supply chain concentration

Amidst the global advancement of sustainable production, the green supply chain initiative is becoming increasingly significant in harmonizing environmental and economic interests. This study delves into the financial implications of such initiatives, focusing on a particular government-led green supply chain demonstration project. Utilizing a difference-in-differences model and data from firms involved in the project between 2010 and 2021, findings indicate a notable reduction in firms' financial distress. This result, framed within the resource-based view perspective, shed lights on how green policy value permeates a company's internal capabilities, aligning environmental goals with financial performance. Additionally, we found that when companies enhance the quality of their environmental information disclosure and decrease the concentration of their supply chain, the inhibitory effect of this demonstration policy on financial distress is amplified. This underscores the pivotal value of enhancing information transparency and maintaining a flexible supply chain structure in green supply chain practices. In conclusion, this study emphasizes the empirical link between sustainable operations and financial resilience, laying a strong theoretical groundwork for businesses to proactively adopt green practices and aiding in the government's crafting of environmental policies.

The impact of the Belt and Road Initiative on green innovation and innovation modes: empirical evidence from Chinese listed enterprises

Under the Belt and Road Initiative (BRI), promoting green innovation in enterprises has been the central focus of the developmental strategy for China and countries along the Belt and Road to ensure sustainable development in line with the UN Sustainable Development Goals (SDGs) related to the environment and development. This paper examines the driving factors and heterogeneous mechanisms of the BRI in green technology innovation, especially in collaborative vs. independent innovation modes, utilizing a multi-period difference-in-difference model (DID) and micro-level panel data of Chinese listed enterprises spanning from 2007 to 2021. We find that the BRI has significantly stimulated the number of green innovations of participating enterprises, primarily through the adoption of collaborative innovation mode, and the BRI policies are more likely to induce green innovation behavior of enterprises with high research and development (R&D), high quality of environmental information disclosure, and non-state-owned enterprises (SOEs), as well as in heavy-polluting industries. The implementation of the BRI has led to increased support from the government, financial institutions, and scientific research organizations to the participating enterprises, which helps alleviate their financial constraints and enhance patent transformation efficiency, and thus facilitate green innovation. These results are robust across different regression specifications. This study contributes to the existing literature on BRI’s environmental impact and green innovation with firm-level evidence, and has important policy implications for the Chinese government when promoting green innovation and internationalization of Chinese enterprises.

Blockchain Adoption for Generic Drugs in the Medicine Supply Chain with Consumers' Risk-Aversion: A Game-Theoretic Model Within Chinese Legal Framework.

Blockchain is expected to mitigate consumers' risk-aversion and quality uncertainty about generic drugs in medicine supply chains. This study investigates the effect of blockchain adoption for disclosing the quality information of generic drugs that compete with original drugs in the market and proposes legal measures accordingly. We employ a game-theoretic model to analyze a medicine supply chain including a generic drug manufacturer, an original drug manufacturer, and a retailer. We examine when should the supply chain members adopt blockchain for generic drugs and how blockchain affects the medicine supply chain. Our results show that the quality information of generic drugs determines how blockchain adoption affects the price and sales quantity of generic and original drugs. Moreover, we observe that the generic drugs manufacturer and the retailer decide to adopt blockchain only if consumers' risk-aversion degree is sufficiently low. Also, a low risk-aversion degree can lead to higher whole supply chain's profitability with blockchain adoption, and generate a win-win-win situation of blockchain adoption for the consumers, the generic drug manufacturer, and the retailer. To mitigate consumers' risk aversion, the law should safeguard consumer rights. Blockchain adoption can benefit the medicine supply chain and consumers under certain conditions. However, it also requires the coordination of supply chain members' benefits and the disclosure of quality information.

Managerial overconfidence and corporate information disclosure

By extracting detailed birth information for managers of Chinese listed firms from 2011 to 2021, we developed a novel measure of overconfidence and applied it to the corporate information disclosure. Our findings demonstrated a close association between managerial overconfidence and both mandatory and voluntary disclosure behaviors exhibited by firms. Specifically, managerial overconfidence significantly contributed to an increase in accrual-based earnings management and the voluntary disclosure of Corporate Social Responsibility (CSR) information by firms. Furthermore, we observed that overconfident managers were more inclined to adopt a positive disclosure tone and tend to underestimate future risks in forward-looking information disclosure. In our additional analysis, we uncovered evidence suggesting that various factors, including corporate governance practices, the types of actual controllers, financing constraints, analyst following, and market competition, might all play a role in influencing corporate information disclosure behavior driven by managerial overconfidence. This study expands on the economic implications of the Upper Echelons Theory and offers pertinent recommendations to enhance the quality of information disclosure.

Public Demand Oriented Quality Evaluation Model for Rainstorm Disaster Information Disclosure

By investigating the current situation of information disclosure and public demand during rainstorm disaster in Henan Province, this paper builds a model of factors affecting the quality of information disclosure characterized by rainstorm disaster information based on TOE framework theory, metadata evaluation model, resource based theory and resource confirmation theory. With the help of the current situation and demand characteristics of the public’s actual information acquisition, it designs a model with information disclosure content quality, information disclosure accessibility, information disclosure process completeness 10 test dimensions of government information disclosure ability, government feedback ability, minimum information disclosure acceptance ability, information disclosure technology support ability, right to know protection ability, privacy protection ability, right to equality protection ability, and 35 test items of rainstorm disaster information disclosure quality impact factor evaluation scale. The research provides help for government information disclosure to more accurately identify public needs, provides targeted evaluation models and operable evaluation models for rainstorm disaster information quality evaluation in Henan, and provides ideas and strategies for improving rainstorm disaster information quality.

Product Quality Information Disclosure in a Two-Stage Supply Chain Considering Imformed Consumers

Product Quality Information Disclosure in a Two-Stage Supply Chain Considering Imformed Consumers