Disclosure Practices Research Articles

Does Environmental, Social and Governance Disclosure Practices Promote Customer Brand Perception? The Moderating Effect of Customers’ Sustainability Responsiveness

Environmental, social and governance (ESG) aspects have garnered considerable attention in corporate management on a global scale in recent times. As a result, researchers have paid notable attention to this subject. Though numerous studies have already explored various aspects of ESG in the context of emerging economies like Bangladesh, there is limited evidence on whether ESG practices promote customer brand perception (CBP). This study measures the impact of ESG on CBP deploying structural equation modeling in an emerging economy by analyzing the responses of 450 samples in accordance with the philosophies of triple bottom line theory and signaling theory. The results indicate that sustainability responsiveness, social and environmental disclosure practices, and CBP are positively impacted. Customers’ enhanced level of sustainability responsiveness strengthens the influence of governance disclosures in choosing a brand, while weakens the impact of environmental and social disclosures. However, the study concludes there is no significant effect of governance disclosures on CBP. The findings also reveal that social issues have the strongest impact on CBP among the ESG parameters. As sustainability concerns increase, customers either demand more sustainability performance from brands or their impression of the brands declines correspondingly. The study outlines a customer’s viewpoint on the requirements of ESG and sustainability concerns, which will contribute organizations to adopt appropriate ESG strategies and address sustainability challenges to win over customers and strengthen their brand image.

How Corporate Governance Practices Influence the CSR in the Non-financial Sector of Pakistan An Empirical Study of Pakistan Stock Exchange

In the course of this research the variables such as Women Directors, Board Size, Board Independences, Ownership structure and Audit committee are taken into consideration and how these factors influence Corporate Social Responsibility (CSR) disclosures. The analysis is based on data taken from the Pakistan Stock Exchange (PSX) for the period 2010-17. The analysis technique such as Fixed Effect Regression model is used which is based on Hausman diagnostic test results. Where the result reflects a positive significant effect of AUDIT, BIND and WDIR on CSR disclosure, however the relationship between BS and OWN on CSR disclosure has not been established. Control Variables such as Profitability (PRFT), Firm Size (FS) and Leverage (LEV) are investigated in this study. Using fixed effect model correlation matrix, regression analysis and descriptive statistics are examined. Considering the non-financial sectors of Pakistan, the study determines that AUDIT, BIND and WDIR plays pivotal role while promoting CSR related activities. Furthermore, the insights gained from the present study explored the importance of Corporate Governance (CG) strategies to promote CSR, the outcome of the study can be a helping hand for the policy makers and corporate decision makers while devising effective governance strategies. The control variables such as FS, PRFT and LEV provide depth of understanding regarding the factors influencing CSR disclosure. In a broad sense, the current research enhances the scholarly discourse on CSR disclosure. The findings of the study give a roadmap for future research studies to fill the identified gaps and further improve CSR disclosure practices in non-financial sector of Pakistan.

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.

PROFITABILITY, LEVERAGE, CARBON EMISSION DISCLOSURE: THE MODERATING ROLE OF PROFIT GROWTH

This research examines the relationship between leverage, profitability, and carbon disclosure in the Indonesia Stock Exchange (IDX) energy industry from 2019 to 2022. As a moderator, this study also examines how profit growth affects the relationship between the three variables. Panel data multiple linear regression analysis served as the method of hypothesis testing. This study analyzes data on energy sector businesses listed on the Indonesia Stock Exchange during 2019–2022, totaling 84 observation periods. The results showed how profitability and leverage significantly negatively impacted carbon disclosure. Profit growth highlights how negatively profitability affects carbon disclosure. However, the relationship between leverage and carbon emission disclosure remains despite revenue increases. The findings provide important insights into the disclosure practices of the energy sector concerning carbon emissions and their impact on environmental sustainability. Based on the study's findings, businesses and pertinent parties should be able to develop policies that support the transition to a more sustainable energy industry.

How to communicate and what to disclose to participants in a recall-by-genotype research approach: a multistep empirical study.

Recall-by-genotype (RbG) is a bottom-up approach using existing genetic data to design follow-up stratified studies. Genetic information may be partially disclosed at invitation, thus raising ethical issues which call for defined best practices for disclosure and communication in RbG approaches. Within the context of the ProtectMove sub-project of the Cooperative Health Research in South Tyrol (CHRIS) study, we investigated research participant perspectives on RbG communication strategies (Step 1 and 4, questionnaire with a subsample of CHRIS participants with and without previous experience of RbG, respectively). Additionally, we explored researchers' and study personnel's experience with RbG (Step 2 and 3, focus group discussion). In step 1 (N = 95), participants were generally satisfied with the study process. Most (71.6%) wanted to know their carrier status for personal and collective benefit. Tailored disclosure strategies and transparent, effective, and well-thought-out communication approaches were advocated by study personnel (Step 2, N = 6) and researchers (Step 3, N = 7). Challenges in dealing with uncertainty, concerns caused by RbG invitations, and the possibility of misunderstanding were also raised. In step 4 (N = 369), participants valued being informed of study details at the first invitation stage, and generally felt comfortable towards RbG study invitations (58.5%) and to receiving genetic information after the study (58.5-81.6%). Comfort and perceived impact of disclosure of genetic information varied according to the type of variant being potentially disclosed. This study suggested designing communication strategies, based on clear and understandable explanations, sensitive to participant expectations and preferences, developing case-by-case solutions for disclosure.

INFORMATION ASSET PROTECTION IN ACCOUNTING: ANALYZING CORPORATE GOVERNANCE AND RISK MANAGEMENT THROUGH A BIBLIOMETRIC LENS

This paper deals with the protection of information assets related to accounting, based on bibliometric analysis involving 333 articles from the Web of Science. The five clusters that had been targeted by this research included: Corporate Governance and Board Characteristics (Cluster 1); Financial and Performance Metrics (Cluster 2); Accounting Standards and Reporting (Cluster 3); Risk Management and Disclosure (Cluster 4); Information Quality and Investor Protection (Cluster 5). It aims to define the current boundaries of the literature, identify main tendencies, and give a view on the future course of research. Bibliometric and content analysis methods were applied in the study to certain articles, and the relevance and impact were identified by the data obtained in the period between the years 2007–2024. Consequently, this chapter presents a broad-based analysis of how corporate governance ensures and drives information protection, the presentation of financial metrics internally within the organization, the importance of accounting standards, and the effectiveness of risk management and disclosure practices. The findings shall add to the better understanding of researchers, practitioners, and policy-makers in developing the protection of information assets in the accounting area.

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.

Modeling Organizations’ Responses to Employee Disclosure at Work: An Organizational Economics Approach

Employee disclosure refers to the process of revealing personal information about oneself with others in a workplace setting. This type of disclosure also greatly influences organizational culture, policies, and workplace interactions. Modeling such disclosure scenarios using an organizational economics approach addresses communication challenges faced by businesses dealing with the respective disclosure(s). Further, it allows for uncovering the most effective ways to communicate disclosure procedures and policies to employees and employers. This, in turn, will lead to (a) improved corporate training practices for employee disclosure in business communication settings and (b) increased overall productivity measures for organizational members.

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.

Enhancing accountability through web based disclosure practices of foundations in Malaysia

The accountability of non-profit organizations (NPOs) in managing public funding is at risk due to numerous cases reported on the misappropriation of funds and falsifying the reporting information of NPOs. Often, NPOs have been criticized as less efficient and transparent in managing public funds for targeted beneficiaries. As the public trust is deteriorating, alternative reporting could be pertinent to enhance transparency and accountability of NPOs towards stakeholders and the public at large. Therefore, this paper aims to analyse the extent of disclosure among 122 foundations in Selangor and Kuala Lumpur through web-based reporting. This paper used a content analysis approach to gather information in relation to web-based reporting adapted from the Web-based Accountability Index from Gandini et. al (2012) and Nair et. al (2022). The findings indicated the foundations in Malaysia show an average of accountability discharged through websites’ reporting. The foundations were also unlikely to publish financial information and social reporting as compared to other general information. The findings also suggested NPO communities the significant use of web-based technologies as a mechanism to gain and sustain stakeholders’ trust and confidence towards public funds’ accountability.

Illegally beautiful? The role of trust and persuasion knowledge in online image manipulation disclosure effects

The accessibility of powerful photo editing tools has caused image retouching and manipulation to become widespread among sponsored social media content. Images in sponsored posts featuring influencers are often edited to reflect unrealistic body proportions, potentially harming consumers if they compare themselves to unattainable beauty standards. In response to this trend, regulators in different countries have moved to consider or adopt disclosure policies; however, disclosure practices and their effects have not been extensively studied. An online experimental study (N = 480) identified that low- and high-detail disclosures of image manipulation lowered consumer trust. Decreased trust led consumers to use their persuasion knowledge, resulting in less favorable attitudes toward both the brand and influencer, reduced interest in seeking more information about the brand, and diminished body comparison. Finally, implications for various stakeholders, including content creators, brands, and policy-makers, are discussed.

Is news really news? The effects of selective disclosure regulations

Abstract Before regulations were enacted to prevent such practices, information leaked through selective disclosure was incorporated into markets prior to the public release of news. “News days” did not deliver news to markets; now they do. We provide novel evidence of changes in returns and turnover behavior around the enactment of regulations barring selective disclosure practices in the United States and the EU. We conversely document lack of such changes in Australia and Japan, which did not implement similar measures. We conclude that selective disclosure resolves Roll’s R2 puzzle.

Sustainability and impact reporting in US higher education anchor institutions

PurposeThe purpose of this study is to assess how higher education anchor institutions (HEIs) voluntarily report their non-economic impacts. Its goals are to quantify the ease of public access to this information; strengthen the conceptual foundation for HEI impact reporting; and provide guidance for making HEI voluntary disclosures more accessible, comparable and systematic.Design/methodology/approachUsing an exploratory mixed methods design and purposeful sampling, this study analyzed voluntary public disclosures of 41 anchor institution universities in the USA to assess how they communicate their public value creation to stakeholders. Data sources included impact reports, donor reports, annual reports and sustainability reports. The study also analyzed the accessibility of this information by timing how long it took to locate.FindingsThe sampled US anchor institutions communicate their non-economic impact to stakeholders in myriad ways using a variety of formats. Time required to find the reports ranged from 37 to 50 min, with an average of 42.30 min. Disparate reporting formats inhibit comparability.Research limitations/implicationsOnly 41 anchor institutions were examined. The small sample may not be representative of the broader landscape of higher education institutions.Practical implicationsFindings offer guidance for improving voluntary nonfinancial disclosures to increase public confidence in higher education institutions while advancing community and global resilience. To strengthen voluntary disclosure practices, the study recommends using a standardized reporting format, framing HEI impact through socio-ecological resilience indicators, integrating reports and obtaining some form of assurance. These changes would enhance the credibility and comparability of the disclosures.Originality/valueThis research provides some of the first empirical insight into how US higher education anchor institutions report their value creation to the public. Its application of socio-ecological systems theory outlines an actionable conceptual foundation for HEI reporting by linking organizational, community and global resilience.

Financial Transparency of Private Firms: Evidence from a Randomized Field Experiment

ABSTRACTThis paper examines why private firms choose to be financially transparent or opaque by conducting a field experiment with more than 25,000 firms in Germany. We inform a randomly chosen set of firms about a disclosure option that allows eligible firms to restrict access to their otherwise publicly available financial statements. We also vary the messaging in subtle ways to induce experimental variation in the probability that firms take transacting (capital providers or customers and suppliers) versus non‐transacting stakeholders (competitors or general interest parties) into consideration when making their filing decision. Based on each firm's actual filing decision, we find that treated firms are 15% more likely to restrict access to their financial statements. This intention‐to‐treat effect is persistent and concentrated among firms that should derive lower net benefits from disclosure (smaller, more mature firms in less capital‐intensive industries). These findings indicate that informational constraints affect firms’ disclosure practice. Additionally, we show that the treatment effect is almost 40% larger for firms that have a higher, exogenously induced, probability of considering non‐transacting stakeholders when making their disclosure decision. By analyzing subsequent firm activity and complementary survey evidence, we also provide suggestive evidence that disclosure requirements put an undue burden on very small private firms.

Assessment of conflicts of interest in literature on monoclonal antibodies for chronic rhinosinusitis with nasal polyposis using the Open Payments Database.

Accurate conflict of interest (COI) information is essential for promoting transparency and trust in research. We aim to assess COI disclosure patterns in monoclonal antibodies (MABs) research for chronic rhinosinusitis with nasal polyposis (CRSwNP) using the Open Payments Database (OPD). Studies on FDA-approved MABs for CRSwNP (dupilumab, omalizumab, mepolizumab) published between 2019 and 2021 with at least one US author were identified through PubMed. Industry-reported payments from the manufacturers (Sanofi, Regeneron, Genentech, Novartis, and GlaxoSmithKline) between 2018 and 2021 in OPD's General Payments category were collected. Authors were cross-checked against OPD metadata using a previously published ChatGPT-based algorithm. Additionally, this novel algorithm analyzed COI statements for relevant author‒company specific disclosures, identifying disclosed and undisclosed payments made 3‒15 months prior to publication. A total of 214 unique authors from 76 studies were included. Of 30 articles that received at least one relevant payment, 21 (70%) were found to have an undisclosed COI, with a mean total undisclosed payment of $4890 and a median of $10,331. Fifty-six authors had relevant OPD payments and 40 (71.4%) authors did not declare a potential COI. Interestingly, 158 authors had no relevant payments and 62 (39.2%) declared a potential COI. Author order was not significantly associated with potential under- or over-disclosure. This study characterizes COI disclosure patterns in rhinosinusitis-relevant MABs research using a novel automated approach. Given the discrepancy between disclosures and industry-reported payments, our findings suggest a need for improved disclosure education and practices.

The Information Disclosure of Environment, Social and Governance and Its Impact on the Financial Performance of Sinolink Securities

In the context of China's efforts to achieve "carbon peak", "carbon neutrality" and sustainable development, companies are transitioning to low-carbon business models by reporting environment, social and governance (ESG) indicators. This research aims to explore the practice of ESG-related information disclosure in the financial industry and analyze the impact on corporate performance. This research takes Sinolink Securities Co., Ltd. as an example, the disclosure of relevant information can be realized through corporate ESG reports, and then conduct comparisons from multiple aspects based on the relevant data from 2018 to 2022 to study the correlation between ESG and corporate performance. The research found that: 1. The company's ESG rating is generally at a leading level, and its specific performance in environmental, social, and corporate governance aspects is improving year by year. 2. There is an overall positive correlation between corporate performance and ESG practices. The improvement of ESG levels will help improve corporate performance and provide a solid foundation for the sustainable development of enterprises.

Strengthening corporate governance and financial compliance: Enhancing accountability and transparency

In today's complex business landscape, robust corporate governance and financial compliance are essential for maintaining organizational integrity, accountability, and transparency. This review examines the key components and strategies necessary to enhance these frameworks, ensuring sustainable success and stakeholder trust. Corporate governance encompasses regulatory compliance, risk management, ethical conduct, and stakeholder engagement. Adherence to laws and regulations, such as the Sarbanes-Oxley Act (SOX) and the General Data Protection Regulation (GDPR), is foundational in minimizing legal risks and safeguarding reputation. Effective risk management involves identifying, assessing, and mitigating potential threats to an organization’s financial health and operational integrity through strong internal controls and regular audits. Promoting ethical conduct within organizations is crucial for maintaining trust and reputation. Establishing codes of conduct, ethical guidelines, and whistleblower protections fosters a culture of integrity. Transparent communication and stakeholder engagement ensure that organizational activities align with stakeholder interests and expectations. Enhancing accountability and transparency involves several key strategies. Strong board oversight and independence, characterized by diverse and skilled board members, ensure balanced and objective decision-making. Regular internal and external audits verify financial accuracy and compliance, identifying areas for improvement. Leveraging technology and data analytics is pivotal in modern compliance efforts. Technologies like blockchain, artificial intelligence (AI), and machine learning automate processes, improve accuracy, and provide real-time insights into financial performance and risk management. Transparent regulatory reporting and disclosure practices, adhering to standards such as the International Financial Reporting Standards (IFRS), further enhance stakeholder trust. Continuous training and education for employees and board members on corporate governance principles, regulatory requirements, and ethical standards are vital for fostering a culture of compliance and accountability. Strengthening corporate governance and financial compliance is fundamental for enhancing accountability and transparency. By adopting comprehensive regulatory frameworks, leveraging technology, and promoting ethical conduct, organizations can build trust, mitigate risks, and ensure sustainable growth in a dynamic business environment. Keywords: Corporate Governance, Global Corporations, Harmonization.

“I felt like it was the right thing to do”: How college students’ decisions to disclose COVID-19 diagnoses reflect privacy preferences, perceptions of stigma, and cultural norms

Background: COVID-19 diagnoses can be difficult to share, as COVID-19 faces ongoing stigmatization. Aim: Framed by communication privacy management theory, this study examines how college students make decisions to disclose their COVID-19-positive statuses (or why they may not), and how those decisions are affected by perceptions of stigma and cultural norms. Methods: This study utilizes a qualitative, interview-based methodology with twenty undergraduate student participants. Results: Responses are analyzed for themes relating to communication privacy management, noting information control and co-ownership, boundary coordination, and forced/required disclosures. Responses demonstrate that a stigmatized view of COVID-19 has largely subsided, but still affects disclosure preferences and decisions. In addition, several cultural factors also shape beliefs about disclosure practices. Discussion: These findings illuminate how perceptions of COVID-19’s stigma and cultural norms shape college students’ notions of privacy, information control, co-ownership, and ultimately disclosure practices. Highlighting implications for how best to respond to future pandemics, the data presented herein provides an exploration of the relationship between privacy strategies, stigmatization beliefs, and cultural norms. Conclusion: This information will be useful in generating institutional, education, and public health responses to future pandemics, as findings suggest an under-theorized relationship between the areas of privacy management, stigmatization, and cultural norms.

Cultural dynamics and tenure trajectories: how auditor tenure and culture influence key audit matters in the GCC

PurposeThis study examines the impact of audit partner tenure on Key Audit Matters (KAM) disclosures within Gulf Cooperation Council (GCC) countries. It explores how Hofstede’s cultural dimensions influence this relationship, elucidating the effect of cultural context on auditing practices.Design/methodology/approachUtilizing a sample of 456 non-financial firms in the GCC from 2016 to 2021, the study employs regression analyses to explore audit partner tenure's influence on KAM disclosures and the moderating effects of Hofstede's dimensions of power distance, individualism, masculinity and uncertainty avoidance. This affords a detailed examination of individual and cultural impacts on audit quality.FindingsResults reveal a positive relationship between audit partner tenure and KAM disclosures, suggesting that firm-specific knowledge and industry expertise acquired over a long tenure may enhance auditors' ability to identify and report significant matters. Power distance and uncertainty avoidance amplify this effect, whereas individualism diminishes it. Masculinity does not yield significant results.Research limitations/implicationsThis study underscores the need for auditing standards to reflect the complex interplay of auditor tenure and cultural dynamics in the profession's global landscape.Originality/valueThis research contributes to the literature on audit quality by highlighting the formative role of individual auditors and cultural characteristics in KAM disclosure practices. It is among the first to quantitatively analyse the intersection of audit partner tenure and culture in the GCC. It provides valuable insights for regulators, practitioners and policymakers seeking to enhance audit practices across diverse cultural environments.

Bridging the green gap: How digital financial inclusion affects corporate ESG greenwashing

We examine whether and how the development of digital financial inclusion (DFI) affects firm environmental, social, and governance (ESG) greenwashing. Our findings indicate that local DFI prohibits firms' greenwashing behaviors. These conclusions are supported through robust analysis using a multidimensional fixed-effects model, alternative measures, and an instrumental variable approach. Our research provides compelling evidence that DFI dampens corporate greenwashing by easing financial constraints and reducing information asymmetry. Additionally, DFI promotes genuine corporate engagement in ESG activities, though it does not influence ESG disclosure practices. Notably, the effects are more pronounced in firms with limited analyst coverage and increased government supervision.