Information Transparency Research Articles

Artificial intelligence adoption and credit ratings*

ABSTRACT Using 6,566 observations of bond credit ratings in China from 2010 to 2022, this paper empirically finds that artificial intelligence (AI) adoption by firms improves bond credit ratings via improving productivity and information transparency. Such a positive relationship is more pronounced when the issuers are non-state-owned enterprises, labor-intensive enterprises, or engage heavily in earnings management. This study enriches the literature of the influencing factors of credit ratings and the economic consequences of AI adoption. Furthermore, this study offers insights for enterprises seeking to leverage AI for reduced financing costs, and sheds light on future digital policy design.

Reducing clients’ influence in property valuation: An exploration of a blockchain-based solution

Clients' influence remains a significant issue in the property valuation industry, particularly in emerging countries like Nigeria, where existing solutions have proven ineffective. This study, therefore, considers blockchain technology as a medium for delivering information transparency and explores the application of a blockchain-based tool for reducing clients' influence in property valuation. Specifically, this study is pioneering in proposing, developing, and testing a blockchain-based solution for reducing client influence in property valuation, suggesting a promising avenue for increasing transparency in the process. This study involves several stages. Firstly, propchain, a blockchain-based mobile application, was developed and deployed on the Hyperledger Fabric Network, a permissioned blockchain network. The efficacy of the proposed solution was qualitatively tested by a single-round focus group held with valuers, bankers, and a loan customer who used the application to simulate a property valuation exercise for a mortgage. The findings suggest that blockchain technology could be a viable tool for reducing client influence in property valuations. However, specific challenges in the Nigerian context, such as data access, information verification, and stakeholder trust, present significant obstacles. These issues highlight the need for robust institutional support systems to enhance the efficacy of blockchain solutions in this domain. This study supports Levy and Schuck's (2005) assertion that increased information transparency can reduce client influence. Nevertheless, our research indicates that the successful implementation of blockchain in property valuation will require overcoming systemic barriers unique to the Nigerian environment. The implication of key findings is also discussed.

ANALYSING DETERMINANTS OF HOUSEHOLD BROILER CHICKEN MEAT PURCHASES AMIDST SOCIAL-MEDIA MISINFORMATION: A TOBIT STUDY

The Indian poultry sector significantly boosts GDP. It is grown at 8-10% annually, reaching $22.97 billion in 2022, expected to hit $41.94 billion (10.18% CAGR) from 2023 to 2028. Social media misinformation adversely affected the broiler sector, lowering prices and consumption. Using the Tobit Model, this study analysed Indian households' broiler chicken purchases during misinformation. Data on demographics, socioeconomics, and monthly consumption of chicken meat was collected from 503 respondents and analysed. On average, men favoured broiler chicken, while women preferred native chicken. The potential impact of social media misinformation on women's choices and the influence on households with senior citizens, which consumed significantly less quantity compared to their counterparts, remained intriguing. Unexpectedly, households with better incomes and more education purchased less broiler meat. Marital status, place of residence, cohabitation, and presence of children did not significantly affect the outcome. Muslim families purchased more broiler chicken meat, and larger households consumed more. Consumption frequency was important, with daily and alternate-day customers making larger purchases. Purchases of broiler meat were negatively impacted by the consumption of country chicken. Amidst social media misinformation, while a slight adverse impact on household broiler consumption may have occurred, it's notable that a significant portion of households (97.20%) continued to purchase broiler chicken meat, exhibiting the potential effectiveness of media-driven interventions in mitigating the impact of misinformation and reiterated the persistent favourability for broiler chicken as a dietary protein choice within the larger consumer demographic. The Indian poultry industry is vital for food security and economic growth, making it imperative to address social media-induced panic. Transparency, trust, and accurate information transmission are essential. In order to effectively handle market challenges, stakeholders need to take into account factors like demography and dietary preferences that impact consumer behaviour.

The influence of international financial reporting standards on the development of national accounting and reporting systems of Ukraine

In the context of globalization and increasing integration of national economies into global markets, the issue of harmonization of accounting standards is becoming particularly relevant.The implementation of IFRS not only improves the quality of financial reporting and transparency of information for international investors, but also contributes to the development of the national business environment and enhances confidence in Ukrainian companies on the global stage. The purpose of the study is to comprehensively analyze the impact of IFRS on national accounting and reporting systems in Ukraine.In particular, the study covers the historical context of the development of accounting systems in Ukraine before the introduction of international standards, analysis of the legislative and regulatory framework governing the application of IFRS, as well as identification of the main advantages, challenges and problems faced by Ukrainian companies in adapting IFRS. The research methods include analysis of historical sources, legislative and regulatory acts governing the implementation of IFRS in Ukraine, as well as study of scientific papers and literature on this topic. The result of the study is a set of recommendations for improving the adaptation of IFRS, which include the development of comprehensive training programs for enterprises, the creation of an information platform to support the implementation of standards, as well as enhancing cooperation between government bodies and businesses to monitor the effectiveness of the implementation. The practical significance of the study lies in the development of proposals for improving the process of implementing international standards, which will increase the level of transparency and trust in Ukrainian companies from international investors and contribute to the improvement of the investment climate in the country. Prospects for further research are to identify ways to improve the process of implementing IFRS in Ukraine, mainly for small and medium-sized enterprises. It is also necessary to develop government support strategies to simplify this process and increase the effectiveness of the application of international standards in national accounting and reporting systems. Furthermore, further research could be linked to an analysis of the impact of IFRS on other aspects of financial regulation in Ukraine and the prospects for their integration with European standards.

The Use of Blockchain Technology in Improving the Reliability and Security of Accounting Information Systems: Impacts and Challenges

The use of blockchain technology in the context of Accounting Information Systems (SIA) has become an important topic in the academic and industry literature. By leveraging blockchain, the Triple Entry Accounting System application can improve information transparency and reliability while reducing fraud in business, improving audit efficiency, and improving data protection. This study aims to analyze the impacts and challenges associated with the implementation of blockchain technology in improving the reliability and security of accounting information systems. The research method used in this scientific paper is a type of qualitative method through the Systematic Literature Review (SLR) study. The results of this analysis show that the use of blockchain technology has a significant impact on the reliability and security of accounting information systems. Blockchain allows financial transactions to be recorded transparently, immutable, and trustworthy automatically through network consensus. However, there are several challenges that need to be addressed in implementing this technology, including scalability issues, high transaction fees, complex regulations, and a lack of understanding and awareness of blockchain technology among accounting practitioners. The reason for the choice of the title is that blockchain technology in Accounting Information Systems is not only relevant, interesting, and offers great opportunities, but also has the potential to make a significant contribution to the field of industry practice.

The Impact of ESG on the Financial Performance of Listed Companies: Empirical Analysis Based on A-share Listed Companies

As China’s ecological civilization advances, ESG (Environmental, Social, and Governance) has emerged as a focal point for market participants and investors. Based on the data of Shanghai and Shenzhen A-share listed companies from 2014 to 2022 and Bloomberg ESG score, this paper explores the impact of ESG performance on corporate value and its mechanism through multiple regression analysis. The results indicate that an enhancement in ESG performance significantly boosts the financial performance of listed companies, particularly in non-polluting industries, enterprises with low information transparency, and foreign-controlled enterprises. In response to these conclusions, the article makes recommendations for policy formulation and business management aimed at promoting sustainable development of enterprises, enhancing market competitiveness, and responding to the growing concern of investors about ESG.

ANALISIS PRINSIP AKUNTABILITAS, TRANSPARANSI, DAN EFEKTIVITAS DALAM PENGELOLAAN KEUANGAN SEKOLAH DASAR SWASTA SANTA THERESIA I PANGKALPINANG

This research is an analysis of the principles of accountability, transparency and effectiveness of school financial management at the Santa Theresia I Pangkalpinang Private Elementary School. This research aims to evaluate the application of the principles of accountability, transparency and effectiveness of school financial management at Santa Theresia I Pangkalpinang Private Elementary School. The method that researchers use is a qualitative descriptive analysis method where data collection uses observation, interview and documentation techniques. In this research, the author interviewed several sources including: School Principal, School Treasurer, and Chair of the School Committee. The research results show that Santa Theresia I Pangkalpinang Private Elementary School has demonstrated a commitment to accountability, legal compliance and integrity in its financial management. However, there are still areas that need improvement, such as increasing information transparency, active involvement of school committees, and evaluating the effectiveness of educational programs. Financial documentation is good but access to information is still limited, and supervision of the use of funds is not optimal. For future research, it is recommended to carry out further evaluation of the implementation of the recommendations proposed in this research. Additionally, the research focus could be expanded to explore the impact of improvements in school financial management on student academic achievement and parental satisfaction. Longitudinal studies can also be conducted to see developments and changes in school financial management practices over time.

The impact of the Board of Directors and the Audit Committee on the transparency of financial information of companies listed in a Frontier market

This study aims to evaluate the impact of factors representing the Board of Directors (BOD) and Audit Committee (AC) on financial information transparency (FIT) in a frontier market. FIT is measured through three indicators that reflect financial non-transparency: earnings aggressiveness (EA), earnings smoothing (ES) and loss avoidance (LA). Research data was collected from 338 companies listed on the Vietnam Stock Exchange (HOSE and HNX) from 2012 to 2022. The study uses the panel data analysis method through OLS, FEM, REM regression steps and necessary tests to select the appropriate analysis model. At the same time, model defects are handled by GLS and Robust regression. Our findings show that the factor representing BOD tends to increase the transparency of financial information, while the factor representing AC tends to decrease the transparency of financial information. This is the first study to examine the impact of composite factors representing BOD and AC and their component factors on FIT.

Does board gender diversity improve stock liquidity?

PurposeFirms with gender diverse boards have been shown to have increased transparency and disclosure, resulting in reduced information asymmetry, which is a key factor influencing stock liquidity. This paper explores the influence of information asymmetry resulting from board gender diversity on stock liquidity. We examine the impact of gender diverse firms on stock liquidity in US listed firms from 2006 to 2022, capturing 28,280 firm-year observations across 4,349 firms. Using mediation models, we distinguish between direct and mediated effects to examine the impact of gender diverse boards on three dimensions of stock liquidity. We find a positive and significant relation between board gender diversity and stock liquidity, and our findings highlight the substantial mediating role of information disclosure in this association. To address concerns of endogeneity, we use instrumental variables regression, and our conclusions remain robust to a range of alternatives.Design/methodology/approachTo investigate the association between board gender diversity and stock liquidity and the underling mechanism that drives the relation, we utilize a dataset comprising 4,349 listed US firms from 2006 to 2022. We adopt a comprehensive approach to measure stock liquidity that spans three dimensions: Amihud illiquidity (LIQ) as a representation of price impact, the quoted spread (SPREAD) to gauge transaction costs and the stock turnover (TURNOVER) to assess trading frequency. To evaluate board gender diversity, we examine female directors and female independent directors, utilizing both the percentage and the presence (as a binary variable).FindingsThe results of our analysis reveal not only a statistically significant effect of board gender diversity on liquidity but also demonstrate its economic significance. One standard deviation increase in the percentage of female directors (12% more female directors) is associated with a 5.8% decrease in price impact, a 5.1% reduction in transaction costs and a 3% increase in trading frequency. These findings highlight the material economic importance of the relationship, which stands in contrast to previous studies reporting only a 1% change in average stock liquidity in the Australian stock markets (Ahmed and Ali, 2017). To further investigate the underlying mechanism driving the association between board gender diversity and liquidity, we employ mediation models to separate the direct and mediated channels. Our results indicate that the effects of the percentage of female directors are mediated on liquidity (LIQ, SPREAD, and TURNOVER) through information disclosure, albeit with a relatively small magnitude (mediation proportion is 18.2, 3.9 and 22.9%, respectively).Research limitations/implicationsWe include a comprehensive set of variables in our analysis and adopt an instrumental approach to mitigate endogeneity concern. However, we acknowledge the possibility of omitted variable biases or reverse causality in our empirical analysis.Practical implicationsOur study contributes to the understanding of the association between board gender diversity and stock liquidity, focusing on the underlying mechanisms. Gender diversity on boards enhances corporate governance, leading to reduced managerial opportunism (Adams and Ferreira, 2009; Nielsen and Huse, 2010). This, in turn, increases information transparency and results in increased stock liquidity. By exploring the empirical evidence of the impact of gender diverse boards on stock liquidity through the information channel, we provide valuable insights to the existing literature. Our study uses US data to examine this association, addressing the small sample concerns of prior research that may have contributed to inconsistent findings.Social implicationsThis research can drive both economic and social transformations as it provides evidence that gender diverse boards lead to improved market outcomes.Originality/valueOur study differs from previous research by incorporating all three dimensions of liquidity, ensuring a comprehensive analysis. Through our investigation, we aim to deepen understanding of how gender diversity on corporate boards shapes market dynamics and contributes to understanding of corporate governance and market efficiency. Our study investigates how the impact occurs by employing mediation models to separate the direct and mediated channels of impact. We show that the effects of gender diverse boards on liquidity are mediated through information disclosure.

The Role of Complexity Theory as a Foundation for Taking a Systems Approach in Your Organization

This article examines how leaders can apply concepts from complexity theory to take a systems-based approach to navigating organizational complexity. It first defines key ideas from complexity science such as complexity theory, which views organizations as existing in a state of productive tension at the "edge of chaos" rather than under pure control, a systems approach that recognizes organizations as interconnected networks of interdependent parts, and complex adaptive systems characterized by self-organization. The article then discusses how leaders can establish clear yet flexible goals and direction, loosen central control to allow decentralized experimentation, promote transparency, and embrace diversity to foster conditions for bottom-up self-organization. It also explores developing networked mindsets through cross-functional teams, relationship building, and transparent information sharing to enhance emergent coordination. Additionally, the article emphasizes cultivating attentiveness to subtle changes and disturbances by establishing early warning systems and experimenting quickly, as well as nurturing an adaptive culture through innovation, reskilling, and rapid pilot-based learning to sustainably renew the organization amid nonlinearity and uncertainty.

Digital Revolution and Management Control Practices: The Impact of Digitalization in Moroccan Private Companies

This paper aims to investigate how digitalization activity influences the management control practices of Moroccan private enterprises. With technologies developing daily, organizations are grappling with how best to utilize these technologies in their MCs, thus the need for development. The main research question of this paper is therefore to: Examine the impact that digital transformation brings to the decision making, performance measurement and resource allocation in private firms in Morocco. To this end, the current study used both survey and interview questionnaires with managers drawn from different sectors and industries. These results therefore indicate that digitalization indeed increases the level of transparency and flow of daily monitoring information required in the management practices to increase its operational efficiency and overall strategic flexibility. That being said, the study also outlines some of the problematic areas like, resistance to change, training employees to learn how to deal with new tools. In conclusion, thus, despite the opportunities that the new digital reality opens to the approach and development of the management control systems in Moroccan private companies, this new reality poses a number of challenges which have to be met to improve the opportunities fully. The study adds to the current body of knowledge regarding digitalization of operations and the impact it has on managerial processes and provides recommendations to those practitioners seeking to enhance their effectiveness within the context of digitally enabled business environment.

Internal audit quality and accounting information comparability: Evidence from China.

This study employs the impact and mechanism of internal audit quality on the comparability of corporate accounting information. Using manually collected internal audit data, the study focuses on non-financial listed companies of A-share market spanning from 2007 to 2022 in China. The findings are as follows: (1) Internal audit significantly enhances the comparability of accounting information, the higher the quality of internal audit, the more pronounced its contribution. This conclusion remains robust after conducting endogeneity tests. (2) Mechanism testing reveals that internal audit enhances accounting information comparability through two channels: mitigating agency costs and improving financial information transparency. (3) Moderation effect test proves that the quality of internal control and the high-tech industry will strengthen the positive relationship between internal audit and comparability of accounting information, while the degree of industry competition and the level of capital occupation by major shareholders will weaken the positive relationship.

Disclosure of Transparency, Accountability and Value for Money Concept in Public Sector Financial Management: A Systematic Literature Review

This study aims to examine the implementation of transparency, accountability, and the concept of value for money in public sector financial management. The method used is a Systematic Literature Review (SLR), selecting relevant articles from the Scopus database published, the research identifies these principles as crucial in enhancing efficiency, effectiveness, and public trust. The results indicate that transparency and accountability play a crucial role in improving public financial governance and significantly contribute to enhanced financial management efficiency and public trust. The concept of value for money, focusing on efficiency, economy, and effectiveness, is essential in ensuring that each budget expenditure provides maximum benefits and proves beneficial in optimizing budget use. However, challenges such as a lack of information transparency, public involvement, and regulatory constraints remain obstacles to its implementation. Therefore, improving the quality of financial information systems and strengthening human resources capacity are essential for achieving better public financial management and enhancing public service quality.

The Role of Technology in The Transformation of Accounting Financial Audit Case Study of Blockchain Implementation in The Audit Process

With the increasing number of cyber attacks and data security breaches, the protection of financial information is becoming increasingly important. Conventional financial audit systems may not have adequate mechanisms to protect sensitive data from the rapidly evolving digital security threats. The aim of this research is to determine the role of technology, particularly blockchain technology, in transforming the financial audit process in accounting practice, and to understand the impact of implementing blockchain technology in the financial audit process on the efficiency, transparency, and accuracy of financial information. The research method used in this study is a Systematic Literature Review (SLR). The results of this study indicate that the use of blockchain technology in financial audit practice provides an effective solution for improving the integrity, reliability, and quality of financial reports presented by companies. Keywords: technology, financial audit, blockchain

Selling short and management tone: evidence from the margin trading market

ABSTRACT The objective of this study is to investigate the impact of short-selling mechanisms on management net tone. By utilising data from A-share listed companies on the Shanghai and Shenzhen stock exchanges between 2007 and 2017, the analysis employs a difference-in-differences model which reveals that short-selling mechanisms significantly reduce management net tone. The conclusions drawn from this study remain robust after a series of stringent tests. Further analysis reveals that in non-state-owned enterprises, firms with lower information transparency, and those operating within superior market and legal environments, short-selling mechanisms effectively suppress management tone inflation. Additionally, the study identifies analyst coverage and executive compensation as mediating channels through which short-selling mechanisms influence management net tone. This research provides valuable theoretical insights for regulatory bodies concerning the disclosure of non-financial information by listed companies.

The Flaw in the Plan: Information Transparency and International Tax Avoidance Channels

The Flaw in the Plan: Information Transparency and International Tax Avoidance Channels

Identifying artificial intelligence–generated content in online Q&A communities through interpretable machine learning

This study aims to construct a comprehensive feature system for identifying artificial intelligence–generated content (AIGC) in online Q&A communities, thus uncovering the key factors and mechanisms influencing the identification of AIGC. First, based on the theory of systemic functional linguistics (SFL) and information quality (IQ), this article extracts vocabulary, content, structure, and emotional features from the text, and identifies the AIGC through nine mainstream machine learning algorithms. Subsequently, three widely used resampling strategies are exploited to address the category imbalance problem. The grid search optimisation algorithm fine-tunes different combinations of parameters to improve the performance of the identification classifier. Finally, SHAP values are introduced to evaluate and elucidate the global feature importance and feature influence mechanism. A Chinese corpus from the Zhihu Q&A community is constructed to verify the validity of these methods. The experimental results show that the eXtreme Gradient Boosting (XGBoost) model optimised with hybrid sampling and grid search parameters exhibits excellent performance in identifying AI-generated text, which achieves an F1-score of 0.9935, an improvement of 0.11 percentage points over the original model. In addition, all four dimensions of features constructed in this article contribute to AI-generated text identification, and the results of feature interpretability analysis show the greatest impact of features that focus on content readability. The study facilitates the identification and labelling of AIGC in online Q&A communities, thereby enhancing transparency and accountability of information shared online.

Influence of Corporate Information Transparency on Foreign Institutional Investors' Shareholding Behavior: Evidence from Public Listed Companies in China

In 2003, China implemented the Qualified Foreign Institutional Investor (QFII) system, which has garnered considerable interest from international institutional investors in the mainland market. As global investors, QFIIs depend significantly on precise, thorough information to bolster their investing criteria. Consequently, the transparency of corporate information becomes a crucial factor for QFIIs. However, due to the relatively late development of the Chinese market, an imbalanced structure of listed companies and information asymmetry, the information disclosure of listed companies has been subject to certain degrees of distortion. Therefore, to better facilitate the development of China's securities market and to help QFIIs fully realize their advanced value investment strategies, this paper aims to study the impact of corporate information transparency on the stockholding behavior of foreign institutional investors. This paper begins by reviewing the literature on the factors influencing institutional investor holdings, corporate transparency, and the characteristics of foreign institutional investors' stockholding. It then defines the concepts of corporate information transparency and foreign institutional investors, analyzes the current state of information transparency in Chinese listed companies, and examines the development of the QFII system in China. The theoretical framework explores the mechanisms through which corporate information transparency influences the stockholding behavior of foreign institutional investors. In the empirical analysis, the paper plans to measure the information transparency of listed companies from three perspectives: earnings quality, information ratings by the Shenzhen Stock Exchange, and the number of analyst followings, to investigate how corporate information transparency influences QFII stockholding behavior.

Community Engagement in the Management of Urban Green Spaces: Prospects from a Case Study in an Emerging Economy

Urban green spaces (UGSs) play a vital role in enhancing the quality of life in cities, particularly in rapidly urbanizing regions such as the Metropolitan Region of São Paulo (MRSP). However, significant challenges related to equitable management and access persist, often exacerbated by socio-environmental inequalities. While much of the existing literature on UGS management focuses on developed economies, there is a gap in our understanding of how community engagement influences UGS outcomes in emerging economies, which face unique socio-economic and infrastructural constraints. This study addresses this gap by investigating the impact of community engagement on UGS management in the MRSP, specifically examining how increased participation correlates with improved UGS access and reduced socio-environmental inequality. Utilizing survey data from 33 municipal environmental departments across the MRSP, this research applied correlation tests, generalized linear models, and a non-parametric analysis of variance to evaluate the relationships between community engagement, UGS coverage, and inequality. The findings reveal a moderate positive correlation between community engagement and UGS coverage, alongside a negative correlation with socio-environmental inequality. Increased levels of community participation were associated with greater access to UGSs and a reduction in disparities across socio-economic groups. These results underscore the potential of fostering community involvement in UGS management to promote urban equity and environmental sustainability in emerging economies, particularly through institutional support and transparent information sharing. Future research should focus on longitudinal studies to better understand the long-term effects of sustained community engagement and incorporate qualitative data from community members to provide a more comprehensive analysis of participatory processes. Additionally, expanding the scope of analysis to include informal and private green spaces will offer a more holistic understanding of urban greening dynamics.

Investing in green, sustaining the planet: The role of fintech in promoting corporate green investment in the Chinese energy industry

In recent years, fintech has rapidly developed on a global scale, bringing about significant transformations across various industries. Particularly in the energy sector, the potential of fintech to promote corporate green investment has increasingly become a focus. As the energy industry accounts for a significant proportion of global greenhouse gas emissions, guiding companies in implementing green investment has become an important issue for environmental protection and sustainable development. However, previous studies have rarely systematically investigated the influence of fintech on corporate green investment in the energy industry and the mechanisms involved. Hence, this study aims to bridge this research gap within the context of China. By utilizing valid survey data from 466 corporations in the Chinese energy industry and the method of structural equation modeling, the results indicate that: (1) Fintech can promote corporate green investment in the energy industry. (2) Fintech can promote corporate data-driven decision-making capability, information transparency, and sustainable development strategy. (3) Data-driven decision-making capability, information transparency, and sustainable development strategy can also promote corporate green investment in the energy industry. (4) Mediation analysis reveals that data-driven decision-making capability, information transparency, and sustainable development strategy each play a mediating role in the impact of fintech on corporate green investment. (5) Comparative analysis of the mediation effects indicates that there is a certain degree of difference among these three variables’ mediating effects, but it did not reach a statistically significant level. This study provides rich insights for business practices, encouraging companies to strengthen their focus on green investment in the fintech era and offer guidance and recommendations to relevant stakeholders, thereby providing practical guidance for corporate green transformation and sustainable development. Finally, this research also contributes to policy development and optimization.