Disclosure Of Forward-looking Information Research Articles

CSR committees and the voluntary disclosures of climate change information in France

This study examines the effect of CSR committees on voluntary climate change disclosures. Using a sample of SBF 120 listed companies from 2018 to 2022, we find that the presence of CSR committees increases the disclosure of opportunities and forward-looking information on climate change. Additionally, we find that these results are mostly driven by the size of CSR committees. Our results suggest that CSR committees encourage voluntary climate change disclosures due to the informational and economic gains of having an expert sub-board committee responsible for overseeing environmental matters.

Data assetization and capital market information efficiency: evidence from Hidden Champion SMEs in China

Data assets serve functions such as value preservation and appreciation, financing, and value creation. They contain extensive information about enterprises’ operational status and future development prospects, providing significant references for external investors’ decision-making and greatly impacting the information efficiency in capital market. This study examines the correlation between data assetization and capital market information efficiency, along with the mechanisms and influencing factors involved. We select a sample of Chinese Hidden Champion small and medium-sized enterprises (SMEs) from 2011 to 2021, utilize text analysis methods to build a data assets dictionary, and extract keywords from corporate annual reports to depict the level of data assetization. The research results indicate that data assetization significantly enhances the information efficiency of capital market, specifically reducing stock price synchronicity and stock price delay. By categorizing data assets into own-use data assets and transactional data assets, we find that both types can improve the information efficiency of the capital market. Mechanism analysis reveals that enterprise data assetization can enhance the information efficiency of capital market by alleviating corporate financing constraints and improving forward-looking information disclosure. Factors analysis demonstrates that digital infrastructure and data circulation transactions can strengthen the enhancement effect of data assetization on the information efficiency of capital market. This study enriches the research outcomes in the micro-research field of data assets, providing valuable insights for promoting the digital transformation of Hidden Champion SMEs and the high-quality development of capital market.

GENDER DIVERSITY, BOARD SIZE, AND FIRM AGE ON FORWARD-LOOKING INFORMATION DISCLOSURE AND ITS IMPACT ON FUTURE PROFITABILTY

Objective – This study aims to determine the effect of gender diversity on board, board size, and firm age on forward-looking information disclosure in the company's financial statements. In addition, it is also to determine the impact of forward-looking information disclosure on future profitability. Design/Methodology/Approach – The method used in this research is a quantitative approach. Using purposive sampling technique, the final sample is 122 samples of manufacturing companies listed on the IDX during the 2020-2022 period. The data was processed using multiple regression analysis using by SPSS 25 software. Findings – This study found that gender diversity and board size variables have no effect on forward-looking information disclosure. Meanwhile, firm age has a significant negative effect on forward-looking disclosure. This study also found that forward-looking disclosure has a positive effect on future profitability. Conclusion and Implications – This study shows that among gender diversity, board size and firm age, only firm age has an effect on forward-looking information disclosure. In addition, this study shows that forward looking disclosure also plays an important role in improving financial performance and market reputation.

Shareholder Protection in Saudi Companies Law: Assessing Merger and Acquisition Efficacy for Unlisted Joint Stock Companies

This paper explores the legal protections afforded to shareholders of unlisted joint stock companies in Saudi Arabia during merger and acquisition activities. There are significant risks associated with using tools like mergers and acquisitions, including market share loss and decreased profitability for shareholders. Thus, this study aims to analyse the Saudi Companies Law for potential gaps that may affect shareholder legal protections. The researchers primarily use a doctrinal legal methodology to assess the legal framework. This approach provides that the study is based on an examination of the legal framework of Saudi Arabia such as statutes, rules, principles, and cases . It will also apply the analytical approach to evaluate the legal framework's fundamentals, conceptual problems, and practical effects, to make sure that the study finds opportunities for improvement. The Article identifies the differences between unlisted and listed companies concerning document disclosure requirements, lack of the method used for asset valuation, lack of forward-looking information disclosure, the absence of obligatory independent financial reports and unclear definitions of shareholder rights to oppose or exit mergers and acquisitions at fair value. The study found that these areas represent potential gaps that could undermine shareholders of unlisted joint stock, improvements to the law, such as the adoption of independent valuation standards, mandatory financial disclosures, and clearer expression of shareholder rights.

Exploring Forward-Looking Information Disclosure Practices: Insights from the Malaysian Landscape in the IFRS Era

Exploring Forward-Looking Information Disclosure Practices: Insights from the Malaysian Landscape in the IFRS Era

Forward Looking Disclosure and Its Determinants: Empirical Evidence from the Listed Banks of Bangladesh

Forward looking information is an emerging issue in academic and corporate arena. Today’s dynamic and competitive business world, the disclosure of forward looking information gives competitive advantages. The main objective of the study is to empirically find out the extent of forward looking disclosure and it’s determinants in the banking sector of Bangladesh. To conduct the study total 120 firm years are considered as sample from 30 listed banks from DSE as sample during the period 2017 to 2021. The average mean value of forward looking information is 38% which indicates poor quality of forward looking information in the most regulated sectors of Bangladesh. The results using multivariate regression analysis shows that board independence, audit firm size and firm’s profitability have positive and significant relationship with forward looking disclosure index (FLDI). This study also finds that foreign ownership, board size and audit independence have significant negative relationship with FLDI. But this study didn’t find any significant association of forward looking information with firm size, female board members, sponsor /directors in the banking sector of Bangladesh. To the best of our knowledge, there is scarcity of research that has been examined the disclosure of forward looking information and it’s determinants in banking sector of Bangladesh as well as very limited work is done in other sectors. The study will contribute to the existing scarce literature and may influence the policymakers and regulators to incorporate regulations to increase the quality and extent of forward looking disclosure.

Managerial overconfidence and corporate information disclosure

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

What causes forward-looking information disclosure in a dynamic setting Evidence from Malaysia, a developing country

What causes forward-looking information disclosure in a dynamic setting Evidence from Malaysia, a developing country

Forward-looking information disclosure tone, financing constraints and marketing expenditures

ABSTRACT Forward-looking information is often seen as private messages that managers deliver to the public, and a positive tone usually implies a positive signal from them. We use a sample of Shanghai and Shenzhen A-shares from 2011 to 2020 to examine the relationships between forward-looking information tone and company marketing expenditures. Our findings show that: first, forward-looking information tones contain valuable content that investors can comprehend, and the more positive the tone, the greater the marketing expenditures a company has. Second, this positive relationship is strengthened for companies that are more financially constrained. Finally, optimistic forward-looking messages can increase marketing expenditures in a greater magnitude for companies operating in the areas subject to a higher degree of marketisation.

Management Accounting Research Opportunities in Climate Change Reporting

ABSTRACT Climate risk is a critically important challenge for society. Current accounting-related efforts include initiatives by regulators to promulgate climate risk disclosure standards, focusing on disclosure of nonfinancial and forward-looking information. These proposals are certain to evolve over time. With management accounting research’s focus on decision-making and performance evaluation using nonfinancial performance measures and effective management control systems, management accounting researchers are in a strong position to provide unique input into the ongoing development of these reporting standards. In this commentary, we discuss topics where management accounting researchers can contribute to the standard-setting efforts. Contributing to these efforts requires a change in mindset for management accounting researchers from primarily focusing on internal and potentially idiosyncratic decision-makers to a broader audience that includes external providers of capital. However, the reward to doing so is participation in interesting and important research avenues that can have a real impact on society. JEL Classifications: M49; M48; M14.

Forward-Looking Information and its Determinants: an Empirical Evidence from Listed Pharmaceutical Firms of Bangladesh

The purpose of this paper is to examine the factors that affect how forward-looking information is disclosed by Bangladeshi 's listed pharmaceutical firms. In this study, a total sample of 115 firms from 23 pharmaceutical firms listed on the Dhaka Stock Exchange (DSE) is considered from the period of 2016 to 2020. Board size, board independence, gender diversity, firm size, leverage, liquidity, and profitability are used as the determinants of forward-looking information. According to the descriptive statistics, the average level of extent of forward-looking information is only 59.33%, which is inadequate for the pharmaceutical industry to survive in the long term. The multiple regression results show that the level of forward-looking information disclosure is positively and significantly associated with board size, firm size, and firm profitability. But the regression results documented that gender diversity, leverage and liquidity and board independence have no significant association with forward-looking information. The findings of this study suggest that companies should focus more on forward-looking information to survive in the market and pursue a competitive advantage. Moreover, the findings of this study also suggest that further research can be conducted using qualitative research in a different sector as well as a cross-country comparison.

Forward looking statement, investor sentiment and stock liquidity

Information is a critical element of capital markets, and liquidity is the lifeblood of capital markets. Relative to historical information, forward-looking information is of significant value to investors. Based on textual analysis calculations, we selected Chinese A-share listed companies as a research sample to explore the impact of forward-looking information disclosure level on stock liquidity. It is found that the higher the level of forward-looking information disclosure, the better the stock liquidity. Investor sentiment is the transmission mechanism through which the forward looking statement disclosure level affects stock liquidity. The heterogeneity analysis shows that the level of forward-Looking statement disclosure has a more significant effect on stock liquidity improvement for state-owned enterprises and enterprises in low-market regions than those in regions with high marketization levels. The article expands and enriches the research on forward-looking information disclosure, and also has some reference value for regulators to formulate laws and regulations and regulate forward-looking information disclosure.

Integrated Modeling of Causes and Consequences of Forward-Looking Information Disclosure in Annual Reports

Integrated Modeling of Causes and Consequences of Forward-Looking Information Disclosure in Annual Reports

Moderating Role of Ownership Structure on the Relationship Between Board Diversity and Forward-looking Information Disclosure

The study's objective is to examine how ownership structure affects the relationship between Board Diversity (BD) and the disclosure of Forward-Looking Information (FLID). The study initially included 500 non-financial companies from the BSX 500 index for the year 2016. However, only 303 companies' data were analyzed due to insufficient information. Qualitative content analysis was used to analyze the FLID. The association between the research hypotheses was examined using OLS regression. The results indicated that the disclosure of forward-looking information was positively associated with female directors, foreign directors, promoters, and return on equity, while it was negatively associated with leverage, firm size, and big4. Furthermore, in terms of the moderating effect of promotors' holdings, it has been found that ownership structure has a negative effect on the relationship between board diversity and FLID. The study aimed to provide a better understanding of the disclosure practices of Indian companies.

Disclosure of forward-looking information: does overlapping audit committee membership matter

Disclosure of forward-looking information: does overlapping audit committee membership matter

Disclosure of forward-looking information: does overlapping audit committee membership matter

Disclosure of forward-looking information: does overlapping audit committee membership matter

Predictive information in integrated reporting

Introduction. Recent trends in business management involve the use of methods that rely on value creation as a result of managing production, financial, human, and natural re­sources, as well as intellectual and social capital in a short-, medium- and long-term perspective. This approach applied to corpo­rate reports is supported by integrated repor­ting. Problem. The use of prospective informa­tion in integrated reporting promotes effective strategic decision-making and increases the significance of the study of forward-looking information disclosure in financial statements. The aim of the article is to study new directions of forward-looking information dis­closure in the framework of integrated repo­rting and identify current trends in non-financial reporting. Methods. A combination of methods and approaches is applied, namely: dialectic, syn­thesis and comparative methods; system and institutional approaches, method of generali­zation, unity of historical and logical methods. Results. The prospective data, specified in most sections of integrated reports, contains both financial and non-financial information, qualitatively and quantitatively illustrates the direction of the company’s development in a short-, medium- and long-term perspective. The forward-looking information serves as one of the sources of assessing the entity’s potential to maintain continuous operation. Under martial law and in terms of the COVID-19 pandemic in Ukraine, continuous operation as the basis for financial reporting is gaining critical importance. The article highlights the requirements to adjust business forecasts and plans when preparing corporate reports. Conclusions. The research on retrospective information disclosure focuses on the concept of integrated reporting, which allows for forecast indicators to support the correlation between current and prospective outcomes of the enterprise’s activity and to determine the factors that change and retain the value of a business in a short, medium and long-term perspective.

Firm characteristics and forward-looking disclosure: the moderating role of gender diversity

PurposeThe purpose of this study is to examine the impact of firm financial and operational characteristics on the level of forward-looking information disclosure (FLID) by Egyptian-listed non-financial companies. The present research also aims to investigate the moderating role of gender diversity on the board of directors.Design/methodology/approachThe sample incorporates the non-financial companies included in the EGX 100 of the Egyptian Stock Exchange (ESE), whose reports were available during the study period from 2013 to 2018. The final sample comprises 49 companies with 294 observations. Statistical analysis is performed using multiple regression analysis.FindingsThis study found a significant positive impact of return on assets, leverage, company size and age on the level FLID, while external audit firm type and industry were found to impact the level of FLID negatively. Further, the board gender diversity (BGD) is found to have a moderating impact as it strengthens the effect of financial and operational characteristics on the level of FLID.Practical implicationsThe present study has some implications for Egyptian companies, investors in the Egyptian market and regulators in emerging economies, which include paying more attention to BGD when selecting the board members by companies as well as following up the female representation in all the listed companies by regulators.Originality/valueTo the best of the authors’ knowledge, this is the first study to investigate the moderating role of BGD and its impact on the level of FLID in emerging markets. This extends the disclosure literature as the present study brings new evidence from an emerging market regarding BGD moderating role as early research concentrated on the direct impact of BGD on the level of FLID.

FORWARD-LOOKING INFORMATION DISCLOSURE AND FIRM VALUE IN THE PANDEMIC ERA

The study investigates the forward-looking information disclosure (FLID), firm performance, and firm value during the COVID-19 pandemic. The population of this study was firms listed on the Indonesia Stock Exchange (IDX). The sampling methods used purposive sampling based on specific criteria. Our total sample was 478 observations. The data were analyzed based on multiple regressions utilizing the EViews program. The results of this study revealed that forward-looking information disclosure did not affect firm value. However, firm performance has a positive effect on firm value. Therefore, the interaction of firm performance and forwardlooking information positively affects firm value. During the pandemic, managers disclose more forward-looking information than before the pandemic.

CORPORATE GOVERNANCE, FIRM CHARACTERISTICS AND FORWARD LOOKING ACCOUNTING INFORMATION DISCLOSURE IN QUOTED MANUFACTURING COMPANIES IN NIGERIA

This paper examined the effect of corporate governance, firm characteristics on forward looking accounting information disclosure in quoted manufacturing companies in Nigeria. The corporate governance is proxied by gender diversity, audit committee size, audit committee meeting frequency and risk management committees. Firm characteristics is proxied by leverage, firm size, audit firm type, and profitability; while forward looking accounting information is proxied by 35 keywords of forward looking accounting information disclosure. Content analyses of the narrative part of annual report of sampled companies were analysed using descriptive and inferential statistics. An ex-post facto research design was adopted for the study. A purposive sampling approach was used to select the sample. Data were obtained from ten (10) years’ (2011-2020) annual reports and accounts of sampled manufacturing firms in Nigeria. Multiple regression to test the hypothesis at a significance level of 5%. The findings showed that corporate governance and firm characteristics jointly and positively significantly affected the forward looking disclosure of listed manufacturing firms in Nigeria (p-value =0.0000; <0.05). The findings also showed that audit committee meeting’s frequency and audit firm size is negatively significant while gender diversity, audit committee size, risk management committee and firm size is positively significant on the disclosure forward looking information. The Adjusted R-Square of 0.33 showed that 67% is outside forward looking accounting information disclosure. The study recommends that the management should pay attention to disclosure of forward looking information as current level is below the disclosure level obtainable in other developing nation