Financial Disclosure Research Articles

Revisiting the Consistency of Financial Disclosure Reporting by Authors at Annual Spine Conferences Show Inconsistent Improvements After 14 Years

Study Design: Cross-sectional study of presenter disclosures from the 2022 North American Spine Society (NASS), Scoliosis Research Society (SRS), and Cervical Spine Research Society (CSRS) annual research conferences. Objective: The current study aimed to evaluate the consistency of financial disclosures for authors presenting at multiple 2022 spine conferences and compared results to those previously reported in 2008. Summary of Background Data: Transparent reporting of financial relationships between physicians and industry is seen as an important way to limit/address potential bias. Thus, many research conferences require authors to disclose such relationships. Despite these requirements, variability in the financial disclosure reporting for matched speakers at 2008 major spine conferences was previously reported. Since then, the Sunshine Act mandated public financial relationships, potentially furthering attention and leading to improvements in financial disclosures. Methods: Disclosures of authors presenting at >1 of the three 2022 spine conferences were compiled from conference websites, and discrepancies were determined based on conference disclosure policies. For comparisons where both conferences required disclosure of all relationships, the discrepancy was identified if there was not a match. For comparisons where 1 conference required paper-specific relationships, and the other required all relationships, discrepancy was identified if the first was not a subset of the other. Results were compared with those reported from 2008. Results: NASS and SRS both required disclosure of all relationships, had 208 overlapping authors, and had 36.5% discrepancies. SRS and CSRS required all and paper-specific disclosures, had 37 overlapping authors, and had 29.7% discrepancies. NASS and CSRS required all and paper-specific disclosures, had 81 overlapping authors, and had 29.6% discrepancies. Overall, the average discrepancy for pairs of conferences in 2008 was 26%, and for 2022 was 32%, indicating a lack of improvement. Compared with 2008, discrepancies decreased more when disclosure requirements were the same for both conferences being considered. Conclusions: These findings demonstrate that significant variability remains in the reporting of financial conflicts of interest by authors presenting at 3 major spine conferences last year, despite previous scrutiny and the evolution of the Sunshine Act. These discrepancies may reflect the ambiguity caused by different disclosure policies and further attention is needed for this topic.

Determinants of Financial Information Disclosure Online: Empirical Evidence in Portugal

The rapid advancement of information technology, particularly the Internet, has significantly transformed communication and corporate reporting practices. The evolution of the Internet and Information and Communication Technologies (ICT) has enabled companies to disseminate extensive financial and non-financial information quickly and cost-effectively. Typically published on company websites, this information is accessible to users worldwide. Digital financial reporting has evolved to meet the needs of both information users and companies. The Internet is increasingly the primary channel for companies to share financial information, driven by technological advancements and the growing demand for online company data. However, the rise of technology in financial reporting raises concerns about information overload, potentially diminishing the quality and relevance of economic data. Additionally, managing the costs associated with technology, such as website development, customer relationship management systems, hardware, software, and other digital platforms, is crucial. This study aims to determine the extent of online financial information disclosure among the 150 largest Portuguese companies and identify the factors influencing this disclosure. The research methodology involves content analysis of the websites of 52 of the largest and best-performing companies operating in Portugal, as ranked by Revista Exame, using a predefined disclosure index to evaluate the degree of financial information disclosure on the Internet. The objective is to enhance understanding of the financial reporting practices adopted by major Portuguese companies and identify factors determining the level of disclosure. The results confirm that the disclosure index has an average value of 0.52147 and that there is a relationship between company size and sector of activity and the level of internet financial reporting.

Exploring the challenges and opportunities for sustainability reporting adoption among small and medium enterprises: A case in a developing country in Asia

Sustainability has turned into a critical focus for businesses, drawing considerable interest from the commercial sector and scholarly environments. While empirical investigations have been conducted regarding sustainability reporting within small and medium enterprises, only a limited number of companies are subjected to increased pressure to adopt sustainability reporting practices, thereby ensuring enhanced transparency and disclosure in their financial and sustainability disclosures. This research, framed by Institutional Theory, delves into how challenges in sustainability reporting obstruct organizations from properly evaluating and sharing their progress on sustainability aims. With an explanatory research framework in place, we circulated survey questionnaires to 400 participants, who were randomly drawn from a population of 28,927 registered SMEs in Metro Manila, Philippines. The application of Interpretative Structural Modelling and MICMAC Analysis revealed that the absence of regulatory frameworks, governmental assistance, and sustainability infrastructure constitutes the most critical obstacles impacting other determinants. In contrast, neither the deficiency in sustainability awareness nor the inadequacy of training and skills demonstrated a considerable impact on the other identified barriers. This study clarifies the complex interactions and interrelations among the obstacles to sustainability reporting, thus providing significant perspectives for organizations aiming to overcome these difficulties. The findings suggest that business leaders and stakeholders can formulate targeted strategies and interventions to facilitate the adoption of sustainability reporting practices within organizations. The application of the institutional theory framework highlights that pressures arise from a diverse array of institutional actors, including regulators, customers, and local communities, which collectively shape corporate behavior and reporting methodologies.

IMPLEMENTATION OF IFRS SUSTAINABILITY DISCLOSURE STANDARDS INTO INTEGRATED REPORTING: A JOURNEY OF FUTURE-ORIENTED COMPANIES

The adoption of the sustainability disclosure standards is a major step forward in improving transparency and comparability of sustainability information, within reporting. This paper aims to analyze the extent to which these standards can be applied in integrated reporting and produce a coherent story about sustainability disclosures. The research uses a documentary and comparative analysis of the International Financial Reporting Standards (IFRS) S1 and S2 with the Integrated Reporting Framework, based on a qualitative approach to analyze the integration between these two standards about integrated reporting principles. The outcomes show that integrating IFRS S1 and S2 will provide an overarching concept for reporting sustainability risks and opportunities which aligns reporting with sustainability goals. Based on these findings, the article argues that incorporating these standards not only improve investor and stakeholder decision-making but also helps companies ensure their strategies are in line with sustainable development objectives. This paper adds to a growing body of literature on the diffusion of sustainability reporting and has implications for researchers examining financial vs. non-financial disclosure as well as managers, regulators and others that care about high-quality financial and non-financial information.

Methane Emissions from Oil and Natural Gas Operations—30 Percent Reduction by 2030 Possible if Domestic and International Actions “Stay the Course”

When sworn into office in January 2021, the Biden–Harris Administration—through the National Climate Task Force—launched an ambitious, whole‐of‐government initiative to significantly double efforts and reduce methane emissions from the oil and natural gas sector, landfills, agriculture, and other lesser sources. These initiatives were documented in the U.S. Methane Emissions Reduction Action Plan, which proposed to use regulations, catalytic financial incentives, transparency and disclosure of actionable data, together with public and private partnerships, to identify and reduce methane emissions. President Biden's Build Back Better agenda was designed to accelerate, through investments, many of these domestic methane emissions reduction efforts.

Low HIV Viral Load Suppression and Its Implications for Controlling HIV among Refugee Adolescents and Youth Living in Refugee Settlements in Uganda: A Cross-sectional Analysis.

Viral load suppression (VLS) is considered crucial in the global efforts to end the HIV/AIDS pandemic and young people lag behind adults in this important indicator. However, little is known about VLS among refugee adolescents and youth (RAY), a vulnerable group, often ignored by research, with multiple intersecting risk factors and unique challenges. The goal of this study was to determine the prevalence of VLS and examine associated risk and protective factors among RAY in refugee settlements in Uganda, a country severely affected by the HIV/AIDS pandemic and currently hosting the most refugees in sub-Saharan Africa (SSA). We analyzed cross-sectional data from a pilot cluster randomized trial with 180 participants (ages 13-30) recruited from 20 health centers in three refugee settlements between July and December 2023. We employed a hierarchical (mixed-effects) logistic regression model to examine the association between selected demographic, psychosocial, and economic factors and VLS. The prevalence of VLS among RAY was very low at just 52%. Factors associated with VLS included financial stability, adherence self-efficacy, and HIV status disclosure. Having financial savings was associated with VLS (adjusted odds ratio:2.68; 95% CI: 1.48-5.11; p = 0.003). Treatment support from others including teachers and health care providers had five-fold odds of VLS (5.0, 1.64-15.24; p = 0.005). Conversely, older age and interactions between stigma/self-efficacy and stigma/HIV status disclosure were associated with viral load non-suppression. This study highlights the urgent need for tailored interventions targeting economic and psychosocial hardships like poverty, stigma, and food insecurity to enhance HIV VLS and other treatment outcomes among RAY.

Boosting Islamic Bank Profitability: Governance, Disclosure, And Stakeholder Satisfaction

This study investigates how financial disclosure (SBFd), governance implementation (GGIsb), and social responsibility disclosure (SBSRd) affect profitability (SBP) and stakeholder satisfaction (SS), which are also mediating factors. This study uses a quantitative approach with secondary data in financial reports. The sample study involved 65 data of financial statements and reports annually collected during 2019-2022 from 13 Islamic Banks in Indonesia. The results show that SBFd and GGIsb positively impact SS and SBP. In contrast, SBSRd does not affect SBP and SS. Meanwhile, SS positively impacts SBP and has a good mediator effect on all correlations. This study confirms the stakeholder theory of the importance of transparency and good governance in improving the performance of finance and the mediating role of stakeholder satisfaction. Practical implications include recommendations to raise financial disclosure quality and strengthen governance mechanisms initiatives more effectively. The findings provide new insights for academics and practitioners in understanding the dynamics between operational factors and financially optimized banking sharia in the Indonesian context.

Investor relations and corporate governance in the global energy sector: A theoretical review of best practices and their application in emerging economies

Investor relations and corporate governance are critical components in ensuring the sustainable development and operational efficiency of companies within the global energy sector. This theoretical review explores the best practices in investor relations and corporate governance, particularly focusing on their application within emerging economies. The global energy sector is highly capital-intensive, requiring robust governance structures to manage risks, ensure transparency, and align the interests of stakeholders. Effective investor relations strategies foster trust, provide timely and accurate information, and enhance shareholder engagement, all of which are essential for securing long-term investments in energy projects. Corporate governance, on the other hand, ensures accountability, compliance with regulatory frameworks, and ethical management practices. The review highlights best practices in corporate governance, including the establishment of independent boards, strong leadership, risk management frameworks, and the importance of environmental, social, and governance (ESG) criteria in decision-making processes. In terms of investor relations, strategies such as proactive communication, regular financial disclosures, and engagement with both institutional and retail investors are identified as key to maintaining investor confidence. In emerging economies, where energy needs are rapidly increasing, the application of these best practices presents both challenges and opportunities. Regulatory frameworks in these regions are often evolving, and companies must navigate complex political and economic environments while adhering to global standards. This review discusses how emerging markets can benefit from adopting globally recognized governance and investor relations practices to attract foreign investment and foster sustainable energy development. The theoretical insights presented offer a comprehensive understanding of the interplay between investor relations and corporate governance in the energy sector. Additionally, this review underscores the importance of adaptability and innovation in applying these best practices to the unique contexts of emerging economies.. Keywords: Investor Relations, Corporate Governance, Global Energy Sector, Emerging Economies, Best Practices, ESG Criteria, Stakeholder Engagement, Transparency, Risk Management, Sustainable Energy Development.

The Impact of Financial Disclosure on Stock Performance of Initial Public Offerings in the Indonesian Capital Market

This research aims to explore whether the proceeds, age, revenue, and underwriter rating of IPO companies affect disclosure; whether disclosure mediates the relationship between the four exogenous variables and underpricing; and whether underpricing mediates the relationship between disclosure and returns. This research uses Partial Least Squares Structural Equation Modelling (PLS-SEM) as the data processing method. Since this research examines interactions between variables, PLS-SEM is an effective data processing method. This research identifies four key exogenous variables: funds raised from the IPO, the age of the IPO company, the income of the companies prior to the IPO, and the ranking of underwriting companies. The research finds that the R-squared of the disclosure variable is 0.0037, or 3.7%, while the Q-squared of the disclosure variable is 0.0039. Meanwhile, the R-squared of the underpricing variable is 0.435, and the Q-squared of the underpricing variable is 0.456. The research also finds that higher proceeds, age, revenue, and underwriter ranking of IPO companies will reduce disclosure. Conversely, higher proceeds and age of the IPO companies will reduce underpricing, while higher revenue and underwriter ranking of the IPO company will increase underpricing. Finally, the research finds that higher disclosure will increase underpricing. Статтю розміщено в рамках грантової програми ГО «НАУКОВО-ОСВІТНІЙ ІННОВА-ЦІЙНИЙ ЦЕНТР СУСПІЛЬНИХ ТРАНСФОРМАЦІЙ» за підсумками Конкурсу індивідуальнихгрантів «Ініціатива підтримки науковців»

Picture Content in Annual Reports Matters: Framing as a Strategy for Impressing Potential Investors

This study examines the association between a firm's economic situation and the use of pictorial content in its annual reports. In other words, we shed light on whether firms in a specific economic situation intentionally choose particular picture content for the illustrations in their annual reports. We argue that the content of pictures can be used as an additional disclosure instrument to highlight signals beyond objective financial data, that is, an attempt to moderate readers’ decision‐making processes. Corporate disclosure can be designed at multiple levels of corporate communication to influence addressees’ perceptions. We analyse 4770 annual reports from FTSE‐350 firms between 2000 and 2021 using Google Vision API's artificial intelligence to examine if this special form of corporate disclosure is affected by corporate economic performance. Our findings suggest that decisions about pictorial elements in annual reports are associated with firms’ economic situation. Our paper contributes to the integration of communication theory, behavioural finance and voluntary disclosure theory to comprehend the use of pictorial information in annual reports. This study broadens the rare evidence regarding information design choices in annual reports with a particular focus on picture usage. By acknowledging the interdependence between framing and voluntary disclosure, researchers and practitioners can refine communication strategies and interventions to promote honest and successful financial disclosure whilst also considering the various communication theory factors involved.

Brexit references in UK financial disclosure discourse (2015-2017): a corpus study

Major political events become a dominant topic of the discussions in the countries involved, and various actors, often other than political parties, take a stance towards them. The withdrawal of the UK from the European Union as a result of the 2016 UK referendum was one of those, and a quite polarised atmosphere from supporters of both sides was observed in the UK and the rest of Europe since the referendum was announced in 2015. Based on the impact of the Brexit on the economy, this study focused into the financial domain of the UK, and the ways that UK financial services referred towards it in their financial disclosures before, during and just after the referendum. For that purpose, I collected the 2015, 2016 and 2017 annual reports from five UK-based financial companies (Barclays, HSBC, Lloyds, Royal Bank of Scotland and Santander UK), and I used thematic keywords to identify all the texts referring to the 2016 UK referendum, its outcome, and the response of the financial services to the exiting process of the UK from the European Union. This set of texts composed the Brexit-related data set, in which different analytical tasks were performed. I explored the context in which the thematic keywords are found, compared statistically the three yearly subsets of the corpus, and searched the significant words of the subset in terms of their keyness strength. This case study revealed that the discourse around a major political event such as Brexit cannot be considered as neutral or objective, and that financial companies clearly expressed negative opinion regarding the 2016 referendum and the UK’s decision to exit the European Union.

SFDR Regulation (Level 2): What Impact on the Performance of Sustainable ETFs?

The paper analyses the effect of Sustainable Financial Disclosure Regulation (level 2) on sustainable ETFs. First, we compare the financial performance of two samples of ETFs classified according to article 8 and those that have been downgraded from art. 9 to art. 8 of the SFDR regulation. Second, we analyze the performance of downgraded ETFs following the entry into force of SFDR level 2. Our results highlight that the funds classified as art.9 showed significant differences in performance compared to those under art. 8 and the downgrade process significantly affected the performance of the ETFs analyzed.

Transnational Climate Governance and State Capacity: A Multilevel Analysis of Green Bond Certification

Abstract Green bonds have become a key instrument for combating the climate crisis. To mitigate the risk of greenwashing, nongovernmental organizations and market participants have established transnational standards and certification schemes for the global governance of green bonds. This research aims to explain the variation in the adoption of certification across bonds and countries. By analyzing a data set of 4,682 green bonds from fifty-five countries between 2016 and 2020, the multilevel mixed-effects models indicate that an increase in participants in the Task Force on Climate-Related Financial Disclosures within a country positively correlates with the likelihood of domestic green bond issuers adopting the certification from the Climate Bonds Initiative (CBI). In countries with stronger state capacity to adopt climate laws and policies, green bond issuers are more likely to participate in the CBI certification. This study has implications for addressing the issue of greenwashing in the development of the green bond market.

Does integrated reporting offer firms more legitimacy?

PurposeThe study delves into the impact of integrating reporting (IR) on three earnings management tools, namely classification shifting (CS), real-based earnings management (REM) and accrual-based earnings management (AEM) under the Indian institutional settings.Design/methodology/approachThe data analysis involved the application of panel data regression models. Our dataset comprises 2,244 firm-years listed on the Bombay Stock Exchange spanning over financial years from March 2015 to 2021. To address endogeneity and self-selection bias concerns, a propensity score matching technique has been employed.FindingsOur empirical results exhibit that IR-adopting firms are engaged in earnings management. Further, we find that IR-adopting firms have reduced their engagement in AEM and REM, however, their CS practices have been increased, indicating the substitution relationship between earnings management tools after the adoption of IR. It implies that firms shift their preference from more to less observable earnings management tools after the adoption of the IR, which aligns with the idea that firms adopt IR to gain legitimacy, however, their intention to deceive stakeholders through earnings management remains unchanged. The inclination of firms toward CS can be ascribed to its cost-effectiveness, as it leaves net profit unchanged, hence less likelihood of being detected by auditors. Overall, our results align with the principle of legitimacy theory.Research limitations/implicationsThe study focuses exclusively on three primary forms of accounting manipulation and assesses IR holistically, rather than investigating the influence of each capital individually within IR.Practical implicationsWith a shift towards less detectable methods like CS, auditors must adapt their scrutiny and be mindful of their clients' IR adoption. Investors should scrutinize IR-adopting firms' financial disclosures, especially line items, as CS does not impact the net profits.Originality/valueIt is the pioneering research to thoroughly explore the impact of IR on different earnings management tools and strengthen the conceptual frameworks of legitimacy theory by documenting that firms adopt IR to gain legitimacy, however their intention to engage in earnings management remains intact.

THE DIGILIZATION AND CONNECTION OF NOTARIES WITH THE REPUBLIC REGISTERIES IN THE REPUBLIC OF NORTH MACEDONIA

In a time of rapid social and dynamic changes, due to the legal security of the circulation of goods and services, in the Republic of North Macedonia, the need was felt to present the notarial service as a guarantee of safety for the parties, to be achieved through the state their legal security. This country applied the German-Latin model, which today is a safe step. With the independence of the Republic of North Macedonia from 1991, the need was felt for the legal circulation of goods and services. In order to facilitate legal transactions due to their multiplicity, in 1996, for the first time, we brought the corresponding law for notaries. They operate within various branches based on law. Development of the notarial service as a public service, independent and self-contained, where the works of the type of public authorizations are performed based on the law. In 2016, in certain articles, the innovation of digitally referencing the notarial document is established, respectively by placing them in the Central Notarial Archive, which includes: electronic certificate, certified electronic description and their archiving in electronic form. Whereas, as far as data submission is concerned, the recording and entry of notarial documents in electronic form in public registers and electronic communication of the notary with the notarial databases. Today there are several links such as: 1. The electronic link with the Real Estate Cadastre Agency; Electronic connection with the Central Registry; Electronic connection with the Pawn Registry (movables); Electronic connection with the Debt Register; Electronic connection with the Official Gazette; Electronic connection with the Directorate for financial disclosure; Electronic connection with local self-administration units, etc. All these electronic links will be analyzed in this scientific paper!

Corporate risk disclosure in response to heightened entry threat: Evidence from a quasi-natural experiment in China

Using the deregulation of market entry barriers in China as a quasi-natural experiment, this study examines how increased entry threats affect incumbent firms' risk disclosure. We find that firms respond by increasing their market-related risk disclosures. This effect is stronger among firms facing higher economic uncertainty, lower financial constraints, greater product market competition, and higher information transparency. Mechanism analysis shows that increased risk disclosure weakens the link between deregulation of market entry barriers and new firm entry, suggesting that such disclosures can effectively deter potential competitors. Moreover, while market reactions to market risk disclosures are neutral, they are negative for operational and financial risk disclosures. Our findings suggest that firms strategically disclose market risks to mitigate entry threats, thus enhancing their resilience and adaptability in dynamic markets.

Decoding the impact of firm‐level ESG performance on financial disclosure quality

AbstractThis study examines the impact of environmental, social, and governance (ESG) performance on financial disclosure quality as measured by disaggregated financial statements (FSDQ), using data from US‐listed companies between 2002 and 2021. We find a positive association between ESG performance and FSDQ quality, suggesting that improved ESG performance is linked to enhanced disclosure quality and accountability and that managerial competence and strong organizational culture accentuate this relationship. Further analysis shows a stronger link between firms with high‐quality accounting practices and good financial reporting readability, whereas complex financial reporting weakens this relationship. Our findings remain valid when alternative measures of key variables are used, and under propensity score analysis, Heckman's two‐stage estimation, and cross‐lagged and entropy balancing techniques, ensuring the analysis is robust and reliable. Overall, our findings provide important new insights into ESG performance, suggesting it fosters enhanced disclosure and accountability to stakeholders.

Impact of External Auditors’ Ethical Behavior on Audit Quality: A Client Perspective

Purpose: This study explores the impact of external auditors' ethical behavior on audit quality, with a particular focus on the perspectives of internal auditors in publicly listed Pakistani companies. It aims to address the gap in literature concerning the interplay between ethical behavior, corporate ethical values, and perceived audit quality. Design/Methodology/Approach: Using Structural Equation Modeling (SEM), the study examines the direct and indirect effects of external auditors' ethics on audit quality, with corporate ethical values as a moderating factor. Data were collected via a mail survey and Google Forms from auditors in listed Pakistani firms, yielding 232 usable responses (61% response rate). The analysis utilized SPSS and AMOS for reliability, validity, factor analysis, regression, and correlation. Findings: Results reveal a positive relationship between ethical behavior and perceived audit quality, amplified by strong corporate ethical values. Companies prioritizing ethics reported enhanced audit quality, providing valuable insights for regulators and auditors. Implications/Originality/Value: This research contributes to the understanding of ethical behavior in audit quality, offering actionable insights for improving ethical standards in audit practices. The findings are pertinent for regulatory bodies, auditors, and policymakers aiming to strengthen financial disclosure integrity in Pakistan

Financial performance and tone of financial disclosures: The moderating effect of CEO narcissism

AbstractUsing an experimental approach, this study shows that the effect of financial performance on tone is weaker in firms led by a more narcissistic chief executive officer (CEO) because narcissistic CEOs inflate the tone relatively more when reporting worse results. This suggests that factoring CEO narcissism into the assessment of the tone of financial disclosures is especially relevant in situations in which firms report negative financial information. Our findings demonstrate that the impact of CEO narcissism may not only exert a direct influence on firm‐level outcomes, such as the tone of financial disclosures, but it could also moderate the influence of other factors.

Digital health startups: growth financing and valuation drivers that signal strength for investors

PurposeThe study investigates the impact of various factors on the number of active investors in digital health startups. Through nine hypotheses, we examine the influence of metrics such as patents, online presence, financial aspects and company valuation on investor interest. The results reveal positive associations between these metrics and investor numbers, highlighting their role in signaling strength and attracting investment. This research enhances the understanding of investor valuation in digital health startups, emphasizing the importance of credible signals for building trust and securing funding. However, we acknowledge limitations in data analysis methods and suggest future research to explore industry signals, longitudinal trends and failed startups for comprehensive insights.Design/methodology/approachThis study delves into the design methodology and approach, aiming to fill gaps in understanding investor roles in valuing digital health ventures. We focus on deciphering factors driving valuations for these startups to secure growth financing. Using signaling theory, we investigate how entrepreneurs communicate their latent strengths to bridge information gaps, aiding investment decisions. We analyze a sample of 482 healthcare startups from the Pitchbook database using Poisson regression in SPSS.FindingsThis research sheds light on the factors driving investor interest in digital health startups. Despite the critical role of entrepreneurs in patient care innovations, the relationship between investor characteristics and funding for digital health technologies still needs exploration. We examine factors influencing investor valuation in healthcare startups and identify patents, social followers and financial disclosures as pivotal elements shaping investor interest. The findings show that all factors for active investors are significant for all variables except similar unique visitors.Originality/valueThese results significantly enhance our understanding of investor decision-making in digital health startups. They confirm the importance of various signals, like patent activity, online presence and financial performance, in attracting investor attention. We utilize unique data sources, offering insights into investors' behavior across different funding stages. In conclusion, these findings underscore investors' crucial role in the growth and funding of healthcare tech startups, emphasizing the need for robust signals to attract investment.