Level Of Information Transparency Research Articles

Information disclosure strategies and bank interest rates pricing decisions

A joint decision-making model for debt financing and operations is constructed in this study. The proposed model is designed so that enterprises can actively adjust the transparency of private information while considering the risks of corporate bankruptcy, bank premium behavior, and possible damage to the product market. We systematically analyzed the mechanisms of bank interest rate pricing, corporate information transparency, and corresponding stocking strategies. We examined the impact of the companies’ inventories and transparency of different types of information on bank interest rates, which revealed financing and management-related decision-making issues based on the bank’s interest rate response function. Various levels of information transparency are appropriate for companies in the context of debt financing. We discuss the impact of changes in exogenous parameters in the product and financial markets on the basis of global equilibrium, as well as corporate characteristics affecting optimal decision-making.

Research on OTA Platform Supervision and Management Based on Game Theory Background

In the era of big data, the OTA platform uses information advantages to abuse data to seek more "big data price discrimination" behaviors of consumers' more benefits. The low information on the market has become a profitable tool for "price discrimination" on the OTA platform. Under the circumstances of this kind of information, it is difficult for consumers to not only be "price discrimination", but also it is difficult to protect their rights after being aware. At this time, the government's active intervention is required to regulate the "big data price discrimination" behavior of the OTA platform. In order to curb the further flooding of "price discrimination", this article has established a game tree model to analyze from the dynamic game perspective of the government and the OTA platform, and the impact of changes in the transparency of information on the stability of the evolution game system. In addition, the relevant suggestions on the OTA platform of government supervision and governance are explained from different levels of information transparency.

An experimental study of information transparency and social preferences on donation behaviors: the self-signaling model.

Certain segments of the population reply on charitable or other non-governmental organizations as their main source of support, with these organizations largely funded by those in society who can afford to give. The present study investigated to what extent information transparency influences donation decisions, and whether specific preferences for charities influences information seeking behavior. We recruited 114 participants via Prolific and employed a binary online Dictator Game to address these two study objectives. The results showed that participants' actual donation behavior was not influenced by their charity preference or the level of information transparency. However, they were more prone to seek out additional information when deciding about the most preferred category of charity. These results raise important questions as to whether the perceived anonymity of online choices may differ from choices carried out in person.

ДОВЕРИЕ В ОБРАЗОВАТЕЛЬНОЙ СРЕДЕ ЧЕЛЯБИНСКОЙ ОБЛАСТИ К ИНСТИТУТАМ ВЫСШЕГО ОБРАЗОВАНИЯ

Trust is a necessary condition that becomes a factor in the formation of an eff ective environment necessary for the eff ective development of any subsystem. The authors proceed from the hypothesis that trust can be “nurtured” and this should be done in an educational environment. The purpose of the study is to determine the confi dence factors of the subjects of the higher education system of the Chelyabinsk region (students, faculty and university staff ); quantify the level of institutional trust in the educational environment; prove the degree of infl uence of the found factors on the level of trust. The research materials were collected by interviewing students and universities employees in the Chelyabinsk region. The number of respondents was 382 people. The materials were processed by grouping, graphic illustration, ranking of responses. Integral trust indicator is proposed. The authors conducted a correlation analysis on two samples: students and university employees. According to the same samples, two regression models were built to assess the elasticity of the studied factors. The authors found three key factors that form the level of trust. This is the level of quality of the educational environment, the level of importance of higher education, the level of information transparency. The authors identifi ed two forms of trust — a priori and conditioned. The authors proved the hypothesis: the closer the trust object is to the trust subject, the higher the level of the latter. Students to a greater extent trust the faculty of the university, somewhat to a lesser extent the administration of the university, to an even lesser extent the federal institutes of the higher education system. The analysis made it possible to quantitatively measure the infl uence of the three established factors on the level of trust among the subjects of the educational environment of the Chelyabinsk region in the higher education system, as well as to establish the degree of their infl uence on the level of trust. The closest relationship, typical for both categories of respondents, is noted between the quality of the educational environment and the level of trust in it. A weak connection has been established between information transparency and the level of trust in the educational environment. The results of the study can be used in the development of support measures from the regional authorities of the Chelyabinsk region, aimed at creating a favorable environment that forms the basis of trust in the higher education system.

Now is the Time: The Impact of Linguistic Time Reference on Corporate Default Risk

Synopsis The research problem This paper assesses whether and how people’s perceptions of time — strong future time reference (FTR) versus weak FTR — affect corporate default risk. Motivation or theoretical reasoning Studies have shown that default risk varies across firms, regions, and countries, highlighting the need for a comprehensive understanding of the contributing factors. Traditional studies focus on how firm-level, industry-level, national and international economic and financial variables shape corporate default risk, but they fail to explain cross-country and cross-regional differences in corporate default risk from the perspective of informal institutions, particularly, language. This study takes the first step to examine whether and how future-oriented language shapes corporate default risk. The test hypotheses We first tested whether strong-FTR language decreases corporate default risk. We further tested whether the effect of strong-FTR language on default risk depends on firms’ level of information transparency. In addition, we tested whether the effect of strong-FTR language on default risk depends on a country’s disclosure requirements. Lastly, we tested whether the effect of strong-FTR language on default risk depends on a country’s control of corruption. Target population We find that corporate default risk is significantly higher in regions dominated by speakers of weak-FTR languages, using a comprehensive sample of firms in 36 countries with 180,013 observations spanning from 1988 to 2017. Adopted methodology Ordinary least square regressions were used in this study. Analyses Corporate default risk is measured by two proxies of firm probability of default, following Merton [(1974) Journal of Finance, 29(2), 449–470] and Lee and Lin [(2012) Journal of International Financial Markets, Institutions, and Money, 22(4), 973–989]. Our independent variable is Strong FTR, which equals 1 if a language belongs to the strong-FTR language family, as defined by the European Science Foundation’s Typology of Languages in Europe (EUROTYP) project. If a language does not require “obligatory [FTR] use in (main clause) prediction-based contexts” [Dahl (2000)Tense and Aspect in the Languages of Europe, O. Dahl (Ed.), pp. 309–328], then we put this language into the weak-FTR group. On the other hand, if a language does have the above-mentioned requirement, then it belongs to the strong-FTR group. Findings We found that corporate default risk is significantly higher in regions dominated by speakers of weak-FTR languages. Furthermore, the FTR effect on default risk is weakened in countries with stronger formal institutions (e.g., high disclosure quality, greater transparency, and less corruption). Our results introduce a new explanation for heterogeneity in corporate default risk, provide insights about whether language is an economic institution, and adds to research on the effects of languages on economic and financial outcomes.

Certified B Corporations and Innovation: Crowdfunding as a Tool for Sustainability

Crowdfunding is an emerging practice that plays a central role in funding innovative ideas that support social sustainability. B-Corps are sustainable companies that are increasingly pursuing innovative financial strategies to fund their corporate sustainability goals. To date, the use of crowdfunding as a social financing innovation by B-Corp organisations has received scant attention. This paper contributes to closing this gap by addressing three research questions. The first investigates the relationship between B-Corps certification and the use of crowdfunding. The second explores whether there is a relationship between crowdfunding and Sustainable Development Goals (SDGs). The third investigates B-Corps’ level of information transparency in relation to this innovation and SDGs. Our investigation involved a cross-analysis of B Labs and the main crowdfunding platforms. In total, 28 B-Corps were identified as using crowdfunding platforms. Of these, 22 were selected for analysis. Our findings reveal that the pandemic period increased the use of crowdfunding among B-Corps. Crowdfunding financing was not found to be linked to the SDGs as not all investors purse these goals. We further found that investors prefer to base their decisions on the information communicated via crowdfunding platforms. Few companies declared the use of this innovative form of financing on their websites, especially on the homepage, and less than half of the companies analyzed included this form of financing in their sustainability reports. Our findings suggest that managers should provide specific information on the objectives of the campaign to be funded on the crowdfunding platforms and in the “other sustainability documents”. This way the campaigns would be more effective and could raise a greater amount of money.

Does CFO serving as board secretary matter for information disclosure? Evidence from China’s listed companies

ABSTRACT This paper explores whether duality in the chief financial officer’s (CFO’s) job role (i.e. also serving as board secretary) reduces information asymmetry through higher levels of information transparency, focusing on Chinese publicly listed companies from 2001 to 2018. Our findings reveal that CFOs serving as board secretaries contribute to greater information transparency. The positive effect of CFO duality on information transparency appears to be more pronounced in state-owned enterprises (SOEs) and in firms whose CFO is female and have had a longer tenure. Knowledge of these impacts is critical to building appropriate investment strategies.

Impact of hospital size on healthcare information system effectiveness: evidence from healthcare data analytics

With the rapid development of information technology, the increasing use of mobile digital devices and efforts from the whole society, the healthcare information systems (HISs) are moving towards a new era. However, there is still a lack of clear understanding of the benefits of HIS at the hospital level and the influential factors for HIS effectiveness. In this study, we propose a research framework to explain how HIS implementation improves hospital performance. Our results reinforce the positive effect of HIS on hospital performance. In particular, we found that HIS implementation increases both the cost and revenue of the hospitals, but the increasing effect in revenue is much bigger than the increasing effect in cost. We also found that although both small and big hospitals benefit from the implementation of HIS, the effect of size is different. Size has a positive effect on hospital performance for small hospitals but has a negative effect on big hospitals. This indicates that the competitive advantage of economies of scale disappears for big hospitals because the level of information transparency becomes lower and transaction costs become higher as size increases.

Improving methods for evaluating the results of digitizing public corporations

The list, nature, and directions in changing the business processes of public corporations due to digital transformation have been determined. The main digital technologies that are used by public corporations operating in the basic sectors of the national economy were grouped. It has been proven that one of the most important criteria for digital transformation is the level of information transparency. A morphological matrix of digital transformation of public corporations has been built and the positions of the latter in the process under study have been determined. Based on the results of the matrix assessment, it was concluded that the most attention is attracted by the digitalization processes in corporations-outsiders. This is because this position is characterized by a high level of digital maturity but a low level of transparency. To ensure a high level of transparency, it seems appropriate for these companies to introduce new digital technologies. This paper analyzes those endogenous and exogenous factors that promote or block the process of introducing digital technologies in public corporations. It was found that at the level of public corporations, there are significant resource constraints, which are manifested in the lack of funds for the introduction of digital technologies. Another significant obstacle is the psychological barriers associated with the unwillingness to use digital technologies in the work process. The generalization of the efficiency indicators of business processes and criteria for factor conditions of digital transformation has made it possible to identify the main components of the system model of digitalization of public corporations. Considering the above, an authentic system model of digitalization of the public corporate sector is proposed. It seems appropriate to use the model to determine the effect of the introduction of digital technologies in the public corporate sector.

Оценка уровня информационной прозрачности региональной системы экологического менеджмента

Оценка уровня информационной прозрачности региональной системы экологического менеджмента

Managing Reputational Risk through Environmental Management and Reporting: An Options Theory Approach

Reputation is a complex and multidimensional concept that may be organized in downside and upside reputational risk. In this article, we present a formal modelling for the management capabilities of environmental management and reporting over reputational risk, considering that reputational risk is becoming increasingly important for organizations and it directly depends on the information available about companies’ environmental performances. As long as the effectiveness of communication and disclosure plays a key role in the process, the usefulness of environmental management and reporting as a hedging instrument for reputational risk is addressed through different levels of information transparency. When considering a scenario of voluntary reporting, we show that environmentally concerned companies can reduce the cost of environmental management as a reputational risk strategy, as well as reducing the potential loss of reputational value from reputational threats and increasing the potential profit from reputational opportunities. In the context of mandatory reporting, we highlight the role of assurance companies as bearers of the risk of bad reputations for non-concerned companies. As a result, this novel approach applies theoretical oriented research from options theory to reputational risk management literature, so that it benefits from the option’s well known theory, robustness, and conclusions.

Relations with Lenders and Enterprise Complexity in SMEs

Differences in financial behaviour are explained in the literature by reference to the theory of asymmetrical information, and in particular to the concept of information opacity. The same literature indicates that because SMEs are an opaque type of company, they tend to have relational financial dealings with banks (relationship banking) which allow access to private, exclusive information, thus enabling the bank to cover the hold-up costs associated with information processing. This paper postulates that within the aggregate of SMEs, there are different models of relations between lender and enterprise, based on both opacity and transparency of information. Within the set of SMEs, the companies that adopt transactional banking and market models are associated with the concept of complexity, which denotes intrinsically opaque companies from which lenders request public information. Conversely, those which adopt financial models that mainly focus on developing relationship banking, with the Finance Department playing a fairly marginal role, are classed as simple companies, for which banks adopt an asset-based lending approach involving privileged access to corporate information. This theory was tested on a sample of 1,891 SMEs extracted from the database of the 8th Capitalia survey of manufacturing companies. The study confirmed the existence of four different models of financial behaviour and an association, in the terms set out above, between those models and the level of information transparency, measured in terms of intensity of enterprise complexity and characterised by five distinct groupings. The main finding that emerged is the inadequacy of banks' reliance on size to segment their small and medium-sized corporate customers; they should consequently adopt behavioural segmentation criteria based on the ability to discriminate the level of corporate complexity in order to develop a supply system which is really suited to the characteristics of the chosen SME target.

Timeliness of Annual Reports, Management Disclosure and Information Transparency -Evidence From China

This paper examines the determinants, the current signal effect and the long-term one from the timeliness of the annual report with the proxy of the short term signal effect and the information transparency next period respectively with the data from the A Stock Market in China from 2004 to 2006. We find that, management disclosure shows great influence on the timeliness of annual reports. The reporting lags of the first quarter report next year and the information type of annual reports are both owing significantly negative relation to the reporting lags. And the releasing of Earnings Forecast and Earnings Express are both in a significantly positive association with the reporting lags. After controlling the common factors such as auditing opinion, EPS, the timeliness of annual reports is positively related to the information transparency in the coming period, companies that bringing the timing forward indicates a high level of information transparency and a low one of earnings management, and the ones that taking the timing backward suffer from a result in contrary. Thus we conclude different timing selection interprets different signals that the announcements convey. The contribution of this paper to the literature on timeliness is that it detects and proves the determinants of the timing of annual reports and the signals it conveys on the basis of the unique institutional environment in China, which is of great significance on the proof of the consequence of related regulations announced by SEC

To adopt or not to adopt? Experiencing the effect of quick connect capabilities on network performance

Two new developments confront the Dutch insurance industry. First, there is the introduction of quick connect technologies which enable firms to efficiently integrate business processes across organisational boundaries. Second, there is a move towards more modular product architectures. These new technologies create uncertainty, especially regarding the possible benefits for the participating firms. Using the Business Network Lab, a management game, we let managers experience and discover the possible gains of quick connect technologies. Simultaneously we conducted experiments to investigate the relationship between information transparency, which is a benefit of quick connect technologies, and network performance. Our results indicate that a higher level of information transparency leads to a higher network performance. The managerial implication of this research is that it suggests that firms that adopt quick connect technologies are better of.

The Impact of Information Transparency and Market Capitalisation on Out-Performance in Asian Property Companies

With an increased emphasis on international property investment and an improved economic outlook for Asia, Asian property companies potentially provide an important property investment opportunity for international property fund managers. Using an information transparency index, 180 property companies in 10 Asian countries are assessed over 1997-2003 for their levels of information transparency. Whilst information transparency is seen to be important, market capitalisation is seen to be more significantly associated with Asian property company out-performance. Investing more in the larger property companies than the smaller property companies in Asia is seen to be a more effective property investment strategy for international property fund managers over this period.

The impact of information transparency on the dynamic behaviour of a hybrid manufacturing/remanufacturing system

A combined manufacturing/remanufacturing system is modelled and its dynamic behaviour is investigated using a control engineering approach. The model is an extension of the automated pipeline, inventory and order based production control system (APIOBPCS), which is well understood from a dynamic perspective. It is assumed that the remanufacturing process is based on a PUSH policy. Utilising different levels of information transparency from the remanufacturing process, three system types are developed and compared. Mathematical and simulation analyses of the system types were undertaken and their robustness to remanufacturing process uncertainties were tested. Our analysis indicates that the greater the degree of information transparency, the greater the robustness of the hybrid system.