Disclosure In Reports Research Articles

DISCLOSURE OF SUSTAINABILITY REPORTS

The bank does not focus on profits but pays attention to the environment and social issues that lead to sustainable development. The Financial Services Authority (OJK) issued regulations regarding Technical Guidelines for Preparing Sustainability Reports. This research aims to determine the level of disclosure of sustainability reports in 2022 at state-owned banks and state-owned companies on the Indonesian Stock Exchange. The research method uses descriptive analysis, which describes the research object based on facts and then analyzes and interprets it. The research results on the level of disclosure of sustainability reports are very good, and show management's commitment to fulfilling disclosure obligations regarding environmental sustainability in economic, environmental, and social aspects. Companies need to improve and optimize programs such as environmentally friendly products, involvement of local parties with sustainable financial business processes, conservation, and biodiversity conversion efforts.

Rhetorical strategies in the climate change disclosures of Bangladeshi banking companies

PurposeThe main objective of this article is to explore the rhetorical persuasive strategies in the climate change-related disclosures of the annual reports of Bangladeshi banking companies.Design/methodology/approachTo fulfil this objective, content and rhetorical analyses are conducted on the climate change-related disclosures in the annual reports of Bangladeshi banks. The analysis is interpreted with the help of Aristotle’s rhetorical appeals (ethos, logos and pathos).FindingsEvidence suggests that Bangladeshi banks disclose climate change-related issues in annual reports. These issues include demonstrating a genuine concern for climate change and exhibiting commitment to green finance and investment, paper and energy conservation, tree plantation, biodiversity and climate change risk funds. They also underscore challenges linked to carbon emissions, air pollution, and natural disasters. These disclosures are persuasive, and rhetorical strategies such as ethos, logos, and pathos are evident. However, the disclosures lacked consistency and comparability because of the absence of reporting regulations and a prescribed framework.Practical implicationsThis study informs managers and policymakers about climate change disclosures in Bangladesh, particularly within the banking industry. The research suggests the need for improved reporting consistency and comparability, potentially achieved through standardised climate change reporting guidelines and mandatory requirements.Originality/valueThis paper’s uniqueness lies in its application of Aristotle’s rhetorical triangle to enhance our understanding of how banking companies in a developing economy strategically employ climate change-related disclosures to influence readers. Rhetorical analysis is limitedly used by accounting scholars in analysing corporate climate-change disclosures.

Determinant factors that impact Islamic social reporting: a study on Islamic Banking

This research aims to find out how sharia reporting is disclosed by sharia commercial banking using variable indicators such as liquidity, leverage, size of the sharia supervisory board, awards, and company size. This research was conducted on sharia banks registered with the Financial Services Authority (OJK) Indonesia from 2017 to 2022. The method used in data collection was a purposive sampling method and a sample of 14 sharia banks registered with the Financial Services Authority (OJK) was obtained. The results show that the variables liquidity, rewards and company size have a positive and significant impact on the disclosure of Islamic Social Reporting, while the variables leverage and size of the sharia supervisory board have no effect on Islamic Social Reporting disclosure. The research concludes that to increase the impact of Islamic Social Reporting, companies need to increase current assets to maintain liquidity, obtain awards, and increase total assets as a company size. Therefore, disclosing Islamic Social Reporting at each institution is very important to attract public attention regarding the company's excellence and performance, and this disclosure can be beneficial for the company's future.

Compatibility between the Auditor and the Institutional Investor and its Impact in Evaluating Requirements with International Accounting Disclosure Standards

The study examined the requirements of accounting disclosure standards from the perspectives of institutional investors and external auditors, highlighting the distinctions between their respective perspectives. due to the importance of the data generated in the financial statements that the institutional investor needs to make investment decisions, and the difference in viewpoints regarding the amount of data disclosure between the two parties. It focusses on outlining what needs to be reported in joint-stock firms' financial statements in a way that promotes objectivity in the financial statements and is transparent, appropriate, and adequate. The study had three main components: the literature and theoretical foundations of accounting disclosure and external auditors comprised the second axis, and the overall methodological framework of the study addressed the first.The idea of disclosure and transparency in the financial statement presentation was covered in the first topic, and the auditor's role and responsibilities in disclosure and transparency in financial reports were covered in the second. As for the third axis, it focused on the practical framework of the research, where an analysis of the sample members’ responses to questionnaire forms distributed to (100) external auditors and (100) institutional investors was presented. The questionnaire questions included three axes, the second axis, which dealt with the income statement's duties under accounting disclosure rules, and the first. It is focused on the balance sheet requirements of accounting disclosure rules. The requirements for accounting disclosure rules for contingent liabilities and events that occur after the budget were covered under the third axis. The research came to several findings after analysing the data for the questions using the SPSS statistical tool. The most important of which were :- The external auditor and the institutional investor have largely agreed upon the requirements of accounting disclosure standards for the income statement. The auditor is particularly interested in the paragraphs that discuss granting credit facilities and avoiding reliance on secondary sources of income, while the investor is more interested in the paragraphs that discuss income and expenses associated with the.fundamental income-generating activities When assessing the accounting disclosure requirements for the balance sheet, the institutional investor and the external auditor have a lot in common. The sections of the financial statements that highlight the uses of money and the requirement to disclose them to users, such as the institutional investor who was concentrating on these lines, are of particular importance to the auditor.due to the fact that they bear in It is fraught with dangers. The external auditor and the institutional investor have essentially reached consensus over their respective points of view when evaluating the accounting disclosure requirements for contingent liabilities and subsequent events . While the investor is primarily focused on the accounting disclosure, the auditor is especially interested in the criteria that revolve around the paragraphs referring to the total value of the provision for losses on loans and advances provided .requirements that place an abnormally high priority on risk In order to set disclosure standards and determine the quantity and quality of data that should be displayed in financial reports while maintaining the transparency necessary to achieve objectivity, the research advises considering the perspectives of the entities that stand to gain from the data generated in those reports as well as the regulatory authorities represented by the external auditor. These guidelines must be updated periodically since investor behaviour changes in response to political, social, and economic factors.

Analysis Of Financial Ratios and Company Size As Determining Factors For Islamic Social Reporting Disclosure In Sharia Banks In Indonesia (Period 2015-2020)

This study investigates the determinants of Islamic Social Reporting (ISR) disclosure among Islamic banks in Indonesia from 2015 to 2020. Using financial ratios (ROA, CR, DER) and firm size as factors, the research explores their impact on the extent of ISR disclosures. The study employs quantitative analysis based on data from annual reports of Indonesian Islamic banks, applying regression models to test hypotheses derived from stakeholder theory, legitimacy theory, and resource dependency theory. The findings reveal that profitability and liquidity positively influence ISR disclosures, indicating that more profitable and liquid banks are more likely to engage in and report on social responsibility activities. In contrast, leverage shows a negative relationship with ISR disclosures, suggesting that highly leveraged banks disclose less about their social initiatives. Additionally, firm size positively correlates with ISR disclosures, highlighting that larger banks tend to provide more comprehensive reports on their social responsibilities. Theoretical implications suggest that Islamic banks strategically manage their financial and organizational resources to enhance legitimacy and stakeholder trust through transparent ISR disclosures. Practical implications underscore the importance of integrating CSR practices into business strategies to promote sustainability and accountability. The study contributes to the literature by providing empirical insights into ISR practices in Islamic banking and informs stakeholders about the factors influencing social responsibility disclosures.

The Effect of Systematic Risk and Sustainability Report Disclosure on Company Value

Company value is very important in an effort to gain attention from every investor. So in increasing this value, companies need to pay attention to the influence of systematic risk and Sustainability Report Disclosure on company value. The purpose of this study is to determine the effect of systematic risk and sustainability report disclosure on company value. The type of research used in this study is quantitative research. The sample in this study was companies listed on the Sri-Kehati Index for the 2020-2022 period, totaling 25 companies. The data analysis technique used multiple linear regression analysis and hypothesis testing. The results of this study indicate that Systematic Risk has a positive but insignificant effect on the value of listed companies. The economic dimension of Sustainability Report Disclosure has a significant positive effect on company value. The social dimension of Sustainability Report Disclosure has a significant positive effect on the value of listed companies. The environmental dimension of Sustainability Report Disclosure has a significant positive effect on the value of companies listed on the Sri-Kehati Index for the 2020-2022 period. Companies should maintain and pay attention to company value. Namely by paying attention to the market price per share and the book value per share. Because the higher the value of the company, the greater the level of prosperity that will be received by shareholders.

ESG Risk and Firm Value: The Role of Materiality in Sustainability Reporting

Purpose: This research aims to investigate the impact of environmental, social, and governance (ESG) risk on firm value and analyse the disclosure of materiality as a moderation variable. Methodology/Approach: We select research data through purposive sampling. We obtain ESG risk scores from Sustainalytics. Content analysis measures the materiality of sustainability disclosures. We processed 204 company data sets in Indonesia using moderated regression analysis techniques between 2020 and 2022. Findings: Empirical results show that greater environmental, social, and governance risks will lower firm value. Furthermore, the disclosure of materiality in the sustainability report can moderate the negative impact of ESG risk on the firm's value. Research Limitation/Implication: This research's implications are essential for standard-makers and governments to increase corporate attention to environmental, social, and governance risk aspects. The company's operations pose ESG risk, which negatively impacts market value as investors rely on this information for their decision-making. Furthermore, this research also implies that management understands the importance of materiality in sustainability reports. Originality/Value of paper: This research enriches existing literature on corporate risk, focusing on environmental, social, and governance risks. This paper also adds references to materiality disclosure in sustainability reports.

The Effect of Intellectual Capital and Sustainability Reporting Disclosure on Financial Performance with Corporate Governance Mechanism as Moderating Variable (Empirical Study on Companies Listed on the Indonesia Stock Exchange in 2017–2021)

This study aims to analyze the effect of Intellectual Capital and Sustainability Reporting Disclosure on the Financial Performance with Corporate Governance Mechanisms as Moderating Variables on companies listed on the Indonesia Stock Exchange for the 2017–2021 period. This study uses 125 sample firms selected through a purposive sampling method. Data were analyzed using the Partial Least Square (PLS) model. The results of this study indicate that Intellectual Capital has no significant effect on Financial Performance and Sustainability Reporting Disclosure has a significant positive effect on Financial Performance. Corporate Governance Mechanisms can moderate the influence of Intellectual Capital and Disclosure of Sustainability Reporting on Financial Performance. The results of this study have implications for companies to pay more attention to investment through intellectual capital and sustainability reporting, and maintain good corporate governance as a form of internal supervision, because it can affect company performance. Keywords: intellectual capital, sustainability reporting disclosure, corporate governance mechanism and financial performance

Pengaruh Profitabilitas, Kepemilikan Manajerial Dan Institusional Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan Di Industri Jasa

This research aims to test and analyze the influence of leverage, managerial ownership, institutional ownership on CSR disclosure in sustainability reports through profitability as a mediating variable. The object of this research is service sector companies listed on the IDX. A total of 45 data were collected using the purposive sampling method. Data analysis was carried out using regression analysis using the SPSS 24 application. The test results showed that leverage and institutional ownership had a positive effect on profitability, while managerial ownership had no significant effect on profitability. Profitability itself influences CSR disclosure. Based on this, profitability can mediate the relationship between leverage and CSR disclosure, but cannot mediate the relationship between managerial ownership and managerial institutional ownership and CSR disclosure.

Evolution and Challenges of Environmental, Social, and Governance Practices: An Analysis of the Brazilian Stock Exchange’s Corporate Sustainability Index

Environmental, social, and governance (ESG) practices are increasingly recognized as critical for corporate sustainability and market competitiveness, driven by heightened expectations from investors, governments, and consumers. This study examines the evolution of ESG practices among companies listed on the Brazilian Stock Exchange’s Corporate Sustainability Index (ISE B3) from 2005 to 2022. We analyzed the index portfolio’s composition, focusing on changes in ESG dimensions over time. The only six long-lived companies in this index, from retail, banking, and energy sectors, were selected for in-depth analysis. We further evaluated the quality and consistency of ESG disclosures in company reports. Findings indicate relevant fluctuations in the number of companies included in the ISE B3 and variations in ESG scores for the companies. These variations may be attributed to the voluntary nature of ESG practices and the absence of standard disclosure. This study reveals a lack of homogeneity in ESG reporting, which could be addressed by establishing more straightforward guidelines and global standards. This research underscores Brazilian companies’ challenges navigating diverse ESG frameworks to align with evolving societal and environmental expectations.

Forward-looking disclosure effects on stock liquidity in China: Evidence from MD&A text analysis

We investigate the impact of forward-looking disclosures in annual reports on stock liquidity in China. Analysis of the MD&A sections within annual reports demonstrate a strong positive correlation between forward-looking disclosures and a company's stock liquidity. This promotional effect appears more pronounced within high-tech companies and those with lower levels of information transparency. Mechanistic tests indicate that the increase in equity liquidity attributable to forward-looking disclosures can be traced to heightened interest from analysts and media coverage. Further examination of the impact of MD&A textual characteristics reveals that improvements in the readability and tone of the text strengthen the effect of forward-looking information on enhancing stock liquidity. Economic consequence tests show that forward-looking disclosures not only enhance stock liquidity but also contribute to expanding investment scale, reducing financing costs, and improving both future firm performance and market valuation. These findings suggest that augmenting the efficiency of capital market information dissemination could significantly bolster financial support for the real economy.

Determinants of disclosure in local government financial reports throughout regency/city in North Sulawesi Province

Determinants of disclosure in local government financial reports throughout regency/city in North Sulawesi Province

Pengaruh Karakteristik Perusahaan Terhadap Corporate Social Responsibility Disclosure

Corporate Social Responsibility Disclosure (CSRD) has an important role for companies, because companies live in the midst of society. Each company has different factors that influence social responsibility disclosure even though the company is still in the same type of business. This research is intended to determine company characteristics that influence corporate social responsibility disclosure (CSRD) in the annual reports of companies in the Food and Beverage sector. The aim of this research is to find out whether company size as proxied by (SIZE), profitability as proxied by (ROA), and leverage as proxied by (DER) have an effect on CSRD. The sample used was 16 companies from 33 companies taken using purposive sampling technique. The results of this research are that there is a significant negative effect on company size, which is proxied by SIZE, on CSRD, profitability, which is proxied by ROA, and leverage, which is proxied by DER, has no effect on CSRD. And simultaneously company size, profitability and leverage influence CSRD in Food and Beverage sector companies listed on the Indonesia Stock Exchange in 2016 - 2020.

The Role of Shariah Supervisory Board in Islamic Social Reporting Disclosure

Islamic Social Reporting (ISR) is a concept of social responsibility based on Islamic principles, assisting Islamic banks in enhancing transparency, accountability, and stakeholder relations. ISR encourages Islamic banks to increase their sustainable social responsibility to promote Islamic ethics in business practices. This study aims to analyze the impact of Sharia Supervisory Board (SSB) characteristics on ISR disclosure in Islamic banks in Indonesia. The analysis utilizes the unbalanced panel fixed effect model method and involves 15 Islamic banks from 2017 to 2021. The findings confirm that cross-member, expertise, and turnover of SSB have a significant positive effect. In contrast, the size, the education level, and remuneration of SSB do not affect ISR disclosure.

The Effect Of Sharia Supervisory Board, Board Of Commissioners And Board Of Directors On Islamic Social Reporting Disclosure At Sharia Commercial Banks In Indonesia

The Effect Of Sharia Supervisory Board, Board Of Commissioners And Board Of Directors On Islamic Social Reporting Disclosure At Sharia Commercial Banks In Indonesia

The impact of energy companies on the environment and local communities - disclosures in non-financial reports of companies

The impact of energy companies on the environment and local communities - disclosures in non-financial reports of companies

Human resources accounting optimization: A conceptual pathway to improve financial performance

This research discussed HRA’s impact on a company’s financial performance. Human Resource Accounting (HRA) is measured by using 16 indicators, while financial performance uses 4 indicators, which consist of return on assets (ROA), return on equity (ROE), firm size, and leverage ratio. The analytical method used is binary logistic regression. The result shows that none of the HRA indicators affect ROA, while the other three are still affected by HRA indicators. Employment report indicators and other employee benefits in HRA indexes significantly affect ROE. Human resource policy, human resource development fund, and superannuation fund affect firm size the most. The last leverage ratio is significantly affected by human resource policy. This research has implications for manufacturing companies to increase information transparency for investors in the capital market through the sustainability disclosure of periodical HRA reports. Meanwhile, it is recommended that the government take action to encourage HRA disclosure for public companies in Indonesia by making the standards and regulations needed.

The Effect Of Company Characteristics On The Disclosure Of Sustainable Reports In LQ45 Companies

The aim of this research is to determine the influence of company characteristics as seen from company size, profitability and leverage on the disclosure of sustainability reports in LQ45 companies listed on the Indonesia Stock Exchange. This type of research uses associative research methods. The sample in this research was 42 LQ45 companies listed on the Indonesia Stock Exchange in 2018-2022 which were taken using the purposive sampling method. Based on the results of research on company size, profitability and leverage have a simultaneous effect on the disclosure of sustainability reports in LQ45 companies listed on the Indonesia Stock Exchange, while partially only profitability has an insignificant effect on the disclosure of sustainability reports in LQ45 companies listed on the Indonesia Stock Exchange.

Performance pressure and annual report text manipulation: Evidence from China

AbstractBuilding on attribution theory, this study investigates the antecedents of corporate annual report text manipulation from the perspective of managerial performance pressure. Using a data set comprising 15,076 samples from companies listed on China's Shanghai and Shenzhen A‐share markets between 2009 and 2021, we reveal that as management faces performance pressure, they tend to increase content about external environmental risk and policy uncertainty in annual reports due to actor–observer bias. When incorporating Confucian cultural factors into the research framework, the study found that the strength of Confucian culture mitigates the correlation between the pressure of management performance and annual report manipulation. However, the level of marketization where a corporation is located can undermine the ethical norms upheld by Confucian culture. In additional analysis, we also discovered that the longer the duration of performance pressure, the greater the extent of manipulation within the annual reports initiated by the management. Interestingly, the social performance pressure generated from ESG performance also positively influences annual report textual manipulation, compared to operational performance pressure. This study explores the impact of management performance pressure on information disclosure decisions from the perspective of performance attribution, not only extending the boundaries of attribution theory but also providing guidance for policymakers to enhance the supervision of annual report disclosures and for capital market investors to optimize investment decisions.

Effect of Sustainability Report Disclosure and Company Size on Company Performance

Effect of Sustainability Report Disclosure and Company Size on Company Performance