Disclosure In Reports Research Articles

Board Supervision Capability and Sustainability Report Disclosure Quality: Evidence From Small‐ and Medium‐Sized Enterprises in Taiwan's Construction Industry

ABSTRACTThis study explores the effect of board supervision capability on sustainability reporting quality among publicly listed small‐ and medium‐sized enterprises in Taiwan's construction industry from 2018 to 2022. Ordinal logit regression analyses are conducted. The results reveal that board supervision capability determines whether a firm will voluntarily engage in sustainability reporting strategies, which is a key factor for effectively meeting stakeholder needs. Further analysis of board supervision capability in firms of different ages indicates that the relationship between board supervision capability and sustainability reporting quality varies by firm age. This study also provides empirical evidence confirming that board supervision capability is among the key factors affecting sustainability reporting quality.

Leverage, Profitabilitas, Likuiditas, Dewan Komisaris, dan Komite Audit terhadap Pengungkapan Sustainable Development Goals

Sustainable Development Goals (SDGs) is a global agreement to achieve sustainable development. This study aims to analyse the effect of leverage, profitability, liquidity, board of commissioners, and audit committee on SDGs disclosure in non-financial companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2023 period. This research uses quantitative methods with secondary data from annual reports and corporate sustainability reports. The measurement of each variable is the sustainability report disclosure index (SRDI) to measure SDGs, the measurement of the leverage variable using the debt to equity ratio (DER), profitability using return on assets (ROA), liquidity using the current ratio, the board of commissioners is proxied by the composition of the independent board of commissioners, and the audit committee is proxied by the number of audit committee members. Data analysis using multiple linear regression. The results showed that leverage has a negative effect on SDGs disclosure, while profitability, board of commissioners, and audit committee have a positive effect. Meanwhile, liquidity has no effect on SDGs disclosure. This study provides recommendations for future research to expand sample coverage and consider other factors that may affect SDGs disclosure, such as material flow cost accounting (MFCA) and financial distress.

Financial Distress dan Leverage pada Pengungkapan Sustainability Report

The research aims to empirically prove the influence of financial distress and leverage on sustainability report disclosure with media visibility as a control variable. Non-financial companies listed on the Indonesia Stock Exchange from 2018 to 2022 were chosen as the population for this study. Sample of 415 observations was selected using nonprobability sampling method with purposive sampling technique. Data in this research were analyzed using panel data regression analysis technique with Eviews 12. The research results indicate that financial distress has a negative effect on sustainability report disclosure. Leverage does not have an influence on sustainability report disclosure. Media visibility has a positive influence on sustainability report disclosure and needs to be maintained as a control variable. Keywords: Financial Distress; Leverage; Sustainability Report Disclosure; Media Visibility.

Stakeholder Pressure, External Assurance, Firm Size, And Sustainability Report

This study aims analyze the impact of stakeholder pressure, use of external assurance, and size of the company on the quality of the sustainability report disclosure on the company go public. The data used in this study are secondary data obtained from the annual financial statements and stand alone sustainability reports of companies listed on the Indonesian Stock Exchange for 2019-2022. The analysis method used was a double linear regression analysis with the help of SPSS 25. The results showed that environmental pressure, investor pressure, the use of external assurance, and the size of the company had a positive impact on the quality of the sustainability report disclosure.

The Influence of Corporate Governance on the Disclosure of Sustainability Reports with Profitability as a Moderating Variable

This study aims to examine the influence of corporate governance on sustainability report disclosure, with profitability as a moderating variable. The sample for this study consists of Indonesian companies listed in the ASRRAT rankings for the 2018-2023 period. The sample was selected using the purposive sampling method, resulting in 22 companies with a total of 132 observations. Data were analyzed using moderated regression analysis. The findings of this study indicate that the independent board of commissioners does not affect sustainability report disclosure. The audit committee has a positive influence on sustainability report disclosure. Meanwhile, profitability does not moderate the effect of the independent board of commissioners and the audit committee on sustainability report disclosure.

Pengaruh Pengungkapan Sustainability Information, Profitabilitas dan Capital Adequacy Ratio terhadap Nilai Perusahaan

In 2022, Indonesia assumed leadership of the G20 Presidency. The subject "Recover Together, Recover Stronger" was selected, emphasizing the significance of coordinating economic and development policies. The primary concerns addressed included climate risk, the transition to a low-carbon economy, and sustainable financing. The Financial Services Authority (OJK) initiated the Indonesian Green Taxonomy as a framework for green economic activities and unveiled the Sustainable Finance Roadmap 2021–2025. This research investigates the impact of sustainability report disclosure, profitability, and the Capital Adequacy Ratio on the value of banking firms listed on the Indonesia Stock Exchange from 2019 to 2022. The study examines the influence of sustainability report disclosure, profitability, and Capital Adequacy Ratio on business value. The study employed a quantitative methodology and utilized secondary data from the annual report. The sample comprises 92 financial institutions, with the examined variables including the Sustainability Disclosure Reporting Index (SDRI), Return on Assets (ROA), Capital Adequacy Ratio (CAR), and price-to-book value (PBV) as an indicator of company value. Data were analyzed with SPSS 25. The findings indicate that sustainability report disclosure and ROA adversely impact business value, however CAR has a beneficial correlation with firm value. This study offers empirical data about the significance of sustainability reporting and financial performance in assessing business value within Indonesia's banking industry. This research highlights the significance of non-financial information in investment decisions and enhances the literature on sustainable finance and corporate governance.

A quantitative analysis of level of sustainability disclosure in corporate annual reports of Indian companies

The importance of corporate sustainability disclosure is growing because of social and environmental concerns. Rapid urbanization and industrialization in India have caused serious problems with the quality of air and water. This study examines the level of sustainability disclosure in the annual reports of Indian companies, focusing on environmental, social, and economic commitments in line with frameworks like GRI and BRSR-SEBI. The objective of the study was to examine the degree to which businesses in India publish information about their sustainability policies and efforts in their annual reports. A multistage sampling technique was used to sample the top 50 Indian companies covering the 2021–2022 fiscal year from 11 sectors. Descriptive and content data analysis techniques were employed using mean, median, and standard deviation. Findings revealed that the Global Reporting Initiative (GRI) is the most widely adopted framework, followed by the International Integrated Reporting Council (IIRC). Furthermore, almost all the companies practiced environmental disclosure, particularly greenhouse gas emissions and climate impact and energy usage. The study concluded that sustainability disclosure varies across different sectors and Indian corporations. The study recommended strengthening the adoption of standardized reporting frameworks like GRI, IIRC, and BRSR-SEBI through regulatory incentives or rules that emphasize their benefits. Furthermore, it was recommended that Indian companies should include external certifications and recognitions in their annual reports to demonstrate their commitment to sustainability and enhance the credibility and transparency of their sustainability reporting.

COVID-19-Related Audit Report Disclosures: Determinants and Consequences

In this study, we identified firms receiving COVID-19-related audit report disclosures through critical audit matter (CAM) mentions of COVID-19 in their audit reports. Through OLS regressions, we then investigated the fundamental accounting and auditing determinants that predict the likelihood of firms to receive these COVID-19-related disclosures, and found that firms with intangibles and goodwill were more likely to have these mentioned in their audit reports. Next, we examined the content of these disclosures and found that auditors’ COVID-19 disclosures focused on significant accounting estimates (e.g., fair value accounting and asset impairment considerations). These results are consistent with the idea that COVID-19-related uncertainty represented a triggering event to firms, who then reassessed the carrying value of these long-term assets. After exploring the spillover effects to outsiders, we found that investors obtained a 7.3 basis point for abnormal returns following COVID-19 report disclosures and that auditors were able to charge these firms USD 452,000 higher audit fees relative to benchmark firms. The results are also consistent in entropy-balanced estimations and two-stage analyses that address endogeneity.

The Impact of Accounting Disclosure of Financial Reports Under International Standards on The Efficiency of Business Sector Companies: A Theoretical Study

This research seeks to shed light on the concept, foundations, and components of financial reporting disclosure under International Financial Reporting Standards, then review the extent of Egyptian companies’ compliance with the disclosure of financial statements and the items and elements that are required to be disclosed in these statements according to International Financial Reporting Standards, as well as identifying the information that is disclosed in the reports of joint stock, industrial, and commercial companies. Disclosure, in general, means the full disclosure of all data and information related to these companies. In accounting, it means that the financial statements should show all the main information that interests users of the information and that helps them make sound decisions. The amount of information that must be disclosed depends on the experience of the information user and his requirements and the required accounting measurement. The researcher aims through this research to determine the importance of providing disclosure in financial reports from the point of view of its beneficiaries, in addition to knowing the extent of consistency of the financial statements of institutions with the legislations and laws related to disclosure in Egyptian institutions to know the extent of the adequacy of legislation and the application of laws. Keywords: Accounting disclosure – Financial reports – The benefit of business sector companies.

The Nexus of Profitability, Invesment Decision, and Sustainability Reports on Company Value

This study sought to determine the impact of profitability, investment decisions, and sustainability disclosure on firm value. ROE is used to measure profitability, CVA/BVA is used to measure investment decisions, SRDI is used to measure sustainability, and Tobin’s Q is used to calculate corporate value. The data source is the company’s financial statements from 2018 to 2022, leading to the data collection method being secondary data. The research sample includes companies included in the LQ 45. The statistical test utilized is multiple linear regression. The findings of statistical studies show that profitability, investment decisions, and sustainability report disclosure all impact firm value (Y). Profitability has a partial effect on firm value, as do investment decisions and the disclosure of sustainability reports.

Sustainability Reporting in Value Creation: The Critical Mediation of Environmental Management Accounting

This study examines the essential function of Environmental Management Accounting (EMA) as a mediating variable in the correlation between sustainability report disclosures and firm value. The study highlights the beneficial effects of Environmental Management Accounting (EMA) on value creation by aligning business strategy with sustainable practices, as viewed through the framework of stakeholder theory. Multiple regression and path analyses were performed on a sample of Indonesian manufacturing businesses listed on the Indonesian Stock Exchange (IDX) from 2020 to 2023 to evaluate the assumptions. The findings indicate that EMA substantially increases business value by fostering operational efficiency, transparency, and stakeholder confidence. The Sobel test further substantiates EMA's mediation impact, indicating that organizations with strong EMA procedures get superior financial success and sustainability results. This study highlights the significance of incorporating EMA into sustainability reporting frameworks to improve business value and promote sustainable development. Keywords: sustainability report disclosure, environmental management accounting, firm value

An evaluation of intellectual capital disclosure: evidence from Vietnamese firms

Purpose This study aims to explore the extent of Intellectual Capital Disclosure (ICD) in the annual reports of the top 50 listed Vietnamese companies. It assesses the influence of firm characteristics and corporate governance structure on ICD practices. Design/methodology/approach ICD was measured using content analysis, specifically word count percentage. Panel data regression analysis was employed to examine the relationship between firm characteristics, governance structures and the level of ICD. Findings Results reveal that ICD levels among Vietnamese firms sampled are relatively low, averaging 17.43% of the overall annual report word count. Relational capital emerges as the most disclosed category of IC. Firm size, profitability, industry type, number of independent board members and CEO duality significantly impact the level of ICD. However, leverage, board size and the presence of an audit committee show no significant influence on ICD. Practical implications These findings offer insights into agency and signaling theories. They provide empirical evidence for stakeholders, academics and regulatory bodies to comprehend ICD practices and identify factors that could enhance ICD in emerging markets like Vietnam. Originality/value This study contributes to the literature by examining ICD practices in an emerging market context and identifying the impact of firm characteristics and governance structures on ICD levels, offering valuable implications for both theory and practice.

Impact of AI Disclosure on the Financial Reporting and Performance as Evidence from US Banks

Purpose: This study examines the impact of artificial intelligence disclosure within the US banking sector. It may explore the implications of AI disclosure on issues like financial reporting, transparency, accountability, and ethical considerations within the banking sector. Design/methodology/approach: Using a blend of qualitative and quantitative analyses, the researchers utilized SEC and NASDAQ databases to scrutinize AI disclosures within the top 10 banks. The sample comprised 100 annual reports, and through multiple regression analysis, the research discerned a noteworthy enhancement in performance metrics. Findings: The study found that AI influences financial performance only when moderated by the interaction of shareholders, the board of directors, and independent board members. The findings indicate a rising trend of AI disclosure in financial reports. The study indicates that AI disclosure impacts NII, TEXP, and P/E. Additionally, the study indicated a conflict of interest between agents and principals. Large shareholders tended to favor more AI disclosures, whereas the board of directors either did not support or adopted a more conservative stance on disclosure. Research limitations/implications: This study acknowledges a limitation in the dataset; initially comprising 100 annual reports, it was later refined to meet regression analysis assumptions. Despite this limitation, the study’s insightful results contribute significantly to our understanding of the dynamic relationship between AI disclosure and the performance of top-tier banks in the USA. Originality/Value: By investigating the impact of AI disclosure, the study aims to provide insights into the broader considerations associated with artificial intelligence disclosures in the US banking sector. This study also analyzes how stakeholders respond to the disclosed information about artificial intelligence.

Impact of Cybersecurity Disclosure Frequency on Stock Price Crash Risk

ABSTRACTBy exploring the relationship between stock price crash risk and the frequency of cybersecurity disclosures in financial reports, we present evidence that cybersecurity disclosure does matter because its frequency increases stock price crash risk. We analyze the association between cybersecurity disclosure and stock price crash risk from the perspective of two different theoretical lenses: information asymmetry and investor sentiment. We perform textual analysis on the Chinese A‐shares public companies’ cybersecurity disclosure in financial reports during 2017–2022. We find that the more cybersecurity disclosures in financial reports, the higher the stock price crash risk. Further findings reveal that the effect of the frequency of cybersecurity disclosure on stock price crash risk is more significant in non‐Big‐4 audit companies and companies with lower analyst coverage. These findings imply that the market presents the clear idea that cybersecurity disclosure's negative impact to stock price crashes would be greater than the positive impact under the current settings of the volunteer disclosure policies.

DETERMINATION OF DISCLOSURE OF ISLAMIC SOCIAL REPORTS AT SHARIA BANK IN INDONESIA

Introduction: This study aims to determine the effect of profitability, bank size, bank age, debt to asset ratio, and syirkah funds to partially and simultaneously reveal Islamic Social Reporting on Islamic banks in Indonesia. Methods: This study uses a quantitative method with panel data regression analysis with EViews 12. The population used in this study is Islamic banks in Indonesia. Results: This study partially shows that profitability, Islamic bank size, and debt to asset ratio are not significant in Islamic Social Reporting disclosure. Meanwhile, the age of Islamic banks and temporary syirkah funds has a positive and significant effect on the disclosure of Islamic Social Reporting. Simultaneously, profitability, bank size, bank age, debt-to-asset ratio, and temporary syirkah funds have a significant positive effect on the disclosure of Islamic Social Reporting in Islamic banks in Indonesia in 2016-2021. Conclusion and suggestion: This study reveals that Islamic Social Reporting (ISR) disclosure in Indonesian Islamic banks is significantly influenced by bank age and temporary shariah funds, rather than profitability, size, or debt ratio. The findings highlight the importance of long-term commitment and stakeholder engagement in enhancing ISR practices, offering valuable insights for policymakers and stakeholders.

Pillar Two disclosures in annual reports of European listed companies

This survey examines the impact of the Pillar Two income tax legislation as detailed in the 2023 annual reports of 100 large listed European firms. While 71% of companies indicated that the impact of Pillar Two income taxes was not significant, only a third of companies with an IFRS effective tax rate between 15% and 20% expected the impact to be insignificant. Approximately 25% of companies quantified the expected impact, with 90% of these disclosing it as a point estimate or a range of less than 1 percentage point of ETR. However, only 10% disclosed an expected increase in effective tax rate aligning with the OECD’s estimates. Pillar Two income taxes do not appear to have been a significant audit concern in the 2023 financial statements.

Choice of assurance provider and impact on quality of sustainability reporting: Evidence from sustainability reporting restatements

AbstractUsing data from 32 countries, we identify the determinants of assurance provider type (accounting firm versus non‐accounting firm) and examine whether assurance provider type is associated with sustainability reporting quality. We measure sustainability reporting quality via changes in metrics made to sustainability reports from the prior year and restatements to correct errors in previously issued sustainability reports. We find that accounting firm assurers are positively associated with changes in metrics and restatements of prior period errors. We also examine the association between assurance and the application level of Global Reporting Initiative (GRI) guidelines used to prepare the sustainability report. Both accounting and non‐accounting firm providers are associated with higher GRI application levels and increases in GRI application level. Together, these results suggest that non‐accounting firms focus more on the quantity of disclosures, while accounting firms emphasise both the quality and quantity of disclosures in sustainability reports in accordance with the GRI Reporting Framework. Among accounting firm providers, we find little difference in sustainability reporting quality between accounting firm assurers that do versus do not audit the financial statements. The results of this study provide important insights for practitioners and standard‐setters as to the value of sustainability assurance and the relative benefits of engaging accounting versus non‐accounting assurance providers.

Factors affecting the intention to adopt farm animal welfare disclosures in sustainability reporting: evidence from listed food companies in Sri Lanka

Animal welfare is a critical concern for the food industry, and companies must take responsibility for managing their policies and procedures to ensure the welfare of farm animals. However, many companies fail to prioritize animal welfare in their reporting. This study applies the theory of planned behavior to examine how behavioral factors—such as attitude, subjective norms, perceived behavioral control, and awareness of farm animal welfare—influence the intentions of individuals involved in sustainability reporting to include farm animal welfare disclosures in the sustainability reports of listed food companies in Sri Lanka. This study focuses on individuals involved in the sustainability reporting process of publicly listed food companies in the Colombo Stock Exchange. Out of 124 companies which were engaged in the food sector as derived from GICS industry classification index, the study identified 61 companies by isolating companies having a farm animal footprint along its’ supply chain which involved an individual analysis of the products offered by the company. The survey approach was used for this study with 110 self-administered questionnaires being distributed among individuals in the designations of CFOs, Directors, Managers, Accountants, assistant managers, Accounts assistants/executives and associates. Data were analyzed using structural equation modeling (PLS-SEM). The findings reveal that only perceived behavioral control and subjective norms have a significant positive impact on the intention to adopt farm animal welfare disclosure practices among those engaged in the sustainability reporting process of listed food companies. This study is important because it highlights the need for standardized guidelines and mandatory regulations for animal welfare reporting in Sri Lanka, offering insights for policymakers and institutions to improve sustainability practices and establish stringent farm animal welfare reporting standards.

The Impact of Mandatory ESG Disclosure on Share Price

Abstract: The importance of sustainable development has attracted public attention. To achieve the global sustainable development goals, copious countries have recently begun formulating and implementing mandatory ESG (Environment, Social and Governance) disclosure policies. This has prompted the research community to investigate the impact of compulsory disclosure on the interests of corporate stakeholders, such as share price. According to stakeholder theory, long-term value-based theory, resource-based theory, and efficient market hypothesis, ESG mandatory disclosure will have short-term and long-term impacts on stock prices. Specifically, from the short-term perspective, good ESG reports will lead to rapid growth. Then the price will return to normal level. Moreover, in the long term, this has no significant impact on share prices. This article will use event research methods and linear regression models to specifically study the impact of Apple's ESG report disclosure on stock prices. Finally, research has found that in a normal environment, mandatory ESG disclosure will have a positive short-term impact on share price according to the good quality of ESG reports, while this will have a negative influence on stock price due to the poor quality of ESG reports. However, in special circumstances such as the 2022-2022 global epidemic period and long-term perspective, the disclosure of ESG reports has no significant impact on stock prices.

The induce of environmental and social disclosure on stock returns

The world community has begun to realize the importance of sustainability amidst the many adverse conditions. In Indonesia, all public companies and financial institutions are required to publish sustainability reports which include information regarding their environmental and social responsibilities. This study aimed to elucidate the impact of corporate environmental and social disclosures on stock returns, moderated by profitability. By selecting the moderating variable and using the LQ-45 index for a certain period, the researchers hope that the results will create novelty from previous research and give rise to new information. The Sustainability Report (SR) is evaluated by the quantity of sustainable items reported in the Sustainability Report Disclosure Index (SRDI) in accordance with the Global Reporting Initiative (GRI) Standards, relative to the number of sustainable goods that ought to be disclosed. For environmental, social, and governance variables, compare the quantity of declared environmental, social, and governance elements in the SRDI to the quantity that ought to be disclosed. This study employs the Moderated Regression Analysis (MRA) technique utilising SPSS software. This study's population comprised 45 companies from the LQ-45 Index, incorporated in the IDXESGL index utilising the GRI Index, from February to July 2024, which issued sustainability and annual reports for 2021-2022, marking the inception of the IDXESGL Index. Thirty-five companies met the criteria. This study uses a data processing program, the SPSS version 25. This study employs descriptive statistical tests, coefficient of determination tests, and hypothesis testing for data analysis. The findings of this study demonstrate no impact of environmental and social transparency on stock returns. Profitability as a moderating element does not enhance the impact of social transparency on stock returns. Nonetheless, profitability can enhance the impact of environmental disclosure on stock returns.