Performance Information Disclosure Research Articles

Enhancing sustainable progress: an analysis of supreme audit institutions' performance audits and information disclosure practices

Enhancing sustainable progress: an analysis of supreme audit institutions' performance audits and information disclosure practices

Message-sidedness in performance information disclosure and citizens’ perceived accountability

ABSTRACT Governments disclose performance information to citizens on the assumption that doing so helps improve public accountability. The previous literature implies that citizens’ interpretations of such information are shaped by the information’s presentation types, however, it is not known whether one-sided messages (only positive information) and two-sided messages (adding negative attributes to the one-sided messages) have different effects on citizens’ perceptions regarding government information disclosure. Drawing on attribution-correspondence theory and utilizing a large-scale survey experiment conducted in Korea, this study demonstrates that two-sided performance message is more effective in improving the citizens’ perceptions of governmental transparency and accountability than one-sided message.

Go beyond financial and performance information to reach donors: Designing‐effective online disclosure in the perception of European Community foundations

AbstractBuilding perceptions of trustworthiness that encourage donors to give is critical for nonprofit organizations that depend on charitable giving. Several studies focused on the disclosure of financial and performance information to foster public trust and help donors to make giving decisions. Drawing from stewardship theory, this study explores how additional content dimensions of a more relational nature—including appreciation for the support received and willingness to dialog with donors—might be combined with financial and performance dimensions to design effective online disclosure in the view of nonprofits. By focusing on the viewpoint of European community foundations and using the configurational approach of qualitative comparative analysis, we found that information about fundraising campaigns is deemed must‐have content to discharge online. However, this information alone is not considered to be enough; to retain current donors or attract new ones, it must be combined properly with disclosures demonstrating gratitude to and engagement with donors alongside organizational finances and performance.

Performance reporting in the healthcare sector: evidence from Italian healthcare organisations

PurposeThe present research aims to understand the performance disclosure levels provided by Italian healthcare organisations (HCOs). The authors conducted this study to assess the transparency of HCOs' performance reporting processes by examining the amount and the type of information disclosed in Annual Performance Reports (APRs).Design/methodology/approachThe present study uses a qualitative research methodology based on manual content analysis. The APRs of a sample of 171 Italian public HCOs were analysed.FindingsResults evidence that the APRs provide a sufficient level of disclosure of performance information, putting high attention on the epidemiological conditions; however, the APRs do not present a strong information function for stakeholders' decision-making purposes. The Italian HCOs APRs are not easily understandable because the APRs are not very concise and present information mainly in discursive terms with limited graphic support.Originality/valueTo the best of the authors' knowledge, this is the first research investigating both the extent and type of performance information reported by Italian HCOs in the APRs, considering the particular contextual conditions caused by the most significant challenge the healthcare (HC) sector has faced in recent years: the epidemiological crisis of the coronavirus disease 2019 (COVID-19). The study also explores whether APRs are currently used by HCOs as a merely regulatory requirement or as an information tool for accountability and decision-making purposes.

How good is the government? Analysis of west java’s local government disclosure through an integrated reporting framework

The present study aims to determine the level and quality of comprehensive performance disclosure of the West Java government of Indonesia using an integrated reporting framework. The study analyzes the disclosure of government performance information based on the Notes to the Financial Statements of 27 districts/city governments and one provincial government in the West Java region from 2016–2020. The data was obtained by conducting a content analysis of the government's financial statements using the integrated reporting quality disclosure matrix. Data were analyzed using descriptive statistics, non-parametric tests, and a cluster analysis. The results indicate that: (1) the quality of disclosure in government financial statements according to the integrated reporting framework is still low, with an average score of 35.19%; (2) there is no difference in the scores of disclosure items between district and city governments, but there is an increase in disclosure per year for two elements and total disclosure; and (3) the cluster formed indicates that 22 of 28 district and city governments need to improve the quality of their disclosures. In general, the disclosure quality of the West Java government’s financial statements is still at a low level. The results indicate the need to improve the quality of financial reporting by the government and the use of integrated reporting as a frame of reference.

The impact of green mergers and acquisitions on illegal pollution discharge of heavy polluting firms: Mechanism, heterogeneity and spillover effects

This paper is to discuss the impact of green mergers and acquisitions (GMA) on illegal pollution discharge (ILP). The diurnal difference pollution data of the nearest monitoring station around heavy polluting enterprises are used to measure ILP. Results show that: (1) Compared with polluting firms that have not conducted GMA, GMA can reduce ILP by 2.9%. (2) Large scale, strong industrial correlation and cash payment of GMA is more conducive to controlling ILP. GMA in the same city is easier to inhibit ILP. (3) Impact paths of GMA on ILP mainly include cost effect, technology effect and responsibility effect. GMA aggravates ILP by increasing management costs and risk control risks. GMA inhibits ILP by increasing green innovation, environmental protection investment, social responsibility performance and environmental information disclosure. (4) GMA has a greater inhibition effect on ILP in state-owned firms, technology-intensive firms and eastern firms. (5) The industrial spillover effect of GMA is more obvious than that of the same city. This paper provides implications for curbing ILP from the perspective of GMA.

Corporate Sustainable Growth, Carbon Performance, and Voluntary Carbon Information Disclosure: New Panel Data Evidence for Chinese Listed Companies

At present, to comply with carbon reduction commitments, China has only required energy-intensive enterprises to report their carbon information to regulators, aside from mandatory public disclosures. Although some enterprises have been disclosing their own carbon information voluntarily by means of corporate reports in order to shape their green image, their carbon information disclosures (CID) still need to be improved. This study attempts to systematically investigate links between corporate growth, carbon emission (CEP) or reduction performance (CRP) in two forms (intensity and amount), and CID in industries with different carbon intensities on the basis of stakeholder theory as well as legitimacy theory. This study took Chinese companies listed on the main board market from 2009 to 2021 as samples. The Arellano–Bover/Blundell–Bond dynamic panel data model was used for regression analysis. Results showed that sustainable growth enhanced the promotion effect of CEP (both in terms of intensity and amount) on CID in carbon-intensive industries, while sustainable growth enhanced the inhibition effect of CEP measured in terms of amount, rather than intensity, on CID in low-carbon industries. This revealed that CEP, not CRP, had a significant influence on CID, and uncovered the influence mechanism between carbon performance and CID from the perspective of sustainable enterprise growth. The carbon information disclosure of high-carbon industries is closely and positively related to carbon performance, indicating that the interaction between high-carbon industries and capital markets will be more affected by the mitigation of carbon information asymmetry. Further, circulating A-shares are moderators for better CID in both carbon-intensive industries and low-carbon industries, which fits the expectation of stakeholder theory as well as legitimacy theory. Additionally, measurement habits or preference for carbon emissions performance (in the form of amount or intensity) in different industries should be brought to the forefront to enhance investors’ confidence in CID. This study has certain guiding value for the formulation of CID standards and contributes to the process of mandatory CID.

Public Opinion and Impression Management in the Communication of Performance During the Second Iraq War

Although studies show that organizations engaged in controversial actions often aim to minimize the release of threatening information, scholars know relatively little about what may prompt organizations to increase transparency in these situations. In this study, we focus on support from public opinion as a condition that may influence the disclosure of sensitive performance information to the public. Using the second Iraq War as an empirical context, we focus on the extent to which public officials—Pentagon spokespersons—release and frame information about war performance. This outcome is critical because the way in which organizations communicate their performance to outsiders has often been regarded as a key defensive impression management tactic. We hypothesize that high public support for the war will increase the likelihood that Pentagon officials release information about sensitive combat performance indicators in their press briefings and identify contingencies, such as adversity and organizational spokespersons’ power, that moderate this relationship. We also explore whether high public support decreases the strategic use of alternate performance frames that emphasize metrics that signal progress toward a desirable end state. Using a unique data set based on the coding of press briefings, public opinion data, and other public sources, we find support for several of our hypotheses. We discuss implications for understanding the relationship between public opinion and impression management and highlight the importance of extending this research to nongovernmental organizations. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1598 .

Skema Ponzi: Indikasi Kecurangan Pada Valuasi Startup Menggunakan Gross Merchandise Value

Startup-related issues have been growing in recent years due to their massive publication in the media. The growth numbers of startup companies globally, especially in Indonesia, have shown an astonishing figure. Valuation is one of many issues that revolve around startups. This study examines valuation fraud that leads to Ponzi Scheme in startup companies by using Gross Merchandise Value (GMV) as the valuation indicator. Scoping review was employed to identify and map literature that links to this study’s topic comprehensively through many sources. Venture capitalists and management teams play a key role in valuing startups. Financial academics suggest general valuation models, such as Net Present Value (NPV) and Discounted Cash Flows (DCF), are not used to value startups. They tend to value their company subjectively, which doesn’t represent startup true economic values. They use their advantages on information asymmetry excessively, leading to overvaluing the startup’s values. This study concludes that using subjective factors and limiting a startup’s economic and performance information disclosure by only disclosing Gross Merchandise Value will lead to startup valuation fraud in the form of the Ponzi Scheme.

Corporate Sustainable Growth, Carbon Performance and Voluntary Information Disclosure From Carbon Intensive Industries and Other Industries：A New Panel Data Evidence for Chinese Companies

Corporate Sustainable Growth, Carbon Performance and Voluntary Information Disclosure From Carbon Intensive Industries and Other Industries：A New Panel Data Evidence for Chinese Companies

Does family business affect the relationship between corporate social responsibility and brand value? A study in different industry Taiwan

This study takes the three dimensions of CSR, namely, economic (G), social (S), and environmental(E) dimensions, and the three indicators of corporate governance performance, stakeholders and environmental information disclosure, to explore the relationship between family business of CSR and brand value and determine whether the CSR performance of companies in electronic and non-electronic industries has significantly positive effect on brand value. According to the empirical results, regardless of industry, a better CSR performance by a family business has stronger effect on brand value than that of non-family business. Regardless of industry, a better CSR in both electronics and non-electronics companies exerts a significantly positive effect on brand value. A strong tie between family business in an non-electronic industry and the stakeholder contributes to a higher brand value of an enterprise; a higher degree of environmental information disclosure of an electronics family business exerts greater influence on brand value than does a non-electronics family business.

Análisis de información y factores de desempeño ambiental y de economía circular en empresas peruanas

Peruvian companies with significant sustainability impact have a significant development in their environmental information. Based on this, this research aims to analyze the level of disclosure of environmental performance information according to the Global Reporting Initiative (GRI) and circular economy (CE) practices. Similarly, determine its relationship with the size and business sector for those companies that published their sustainability report, and analyze the results within the framework of legitimacy and institutional theories. A quantitative investigation was carried out by means of a content analysis of the sustainability reports to determine the indices of the level of disclosure of said information, description and relationship of the variables indicated. This level of environmental disclosure is not met in all aspects of GRI. In fact, the results indicated greater compliance in the dissemination of environmental waste management, water, transport and regulatory compliance indicators, an institutional influence by type of business activity was observed. On the other hand, CE practices also did not show a high degree of disclosure, while input consumption reduction and waste management practices showed greater disclosure. The business sector presented a relationship with the level of environmental information, however, neither the size nor the sector of the companies were related to the CE information.

Knowing That You Know: Incentive Effects of Relative Performance Disclosure

This paper studies differential employee responses to the public disclosure of individual performance information throughout an organization. We argue that, to the extent that employees care about their colleagues’ perceptions of their productivity, public disclosure will increase motivation. Moreover, the effect should be stronger for employees whose colleagues expect them to have higher performance. We obtained data from a bank that transitioned from private to public disclosure of employee rankings and, consistent with our hypothesis, find heterogeneity in employee responses to public disclosure. Employees with a history of poor performance increase their output more than past good performers when rankings become public. Additionally, more highly educated employees react more strongly to the change. However, contrary to the literature that finds gender differences in competitive environments, we do not find systematic differences in the response to public disclosure on this dimension. Overall, the results suggest that public disclosure is an important dimension to consider when designing a compensation system.

Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China.

We examined the effect of environmental disclosure on environmental performance for listed mining companies in China. Our analysis used China’s Environmental Information Disclosure Degree (EIDD) and the Chinese Securities Regulatory Commission’s disclosure guidelines to propose the Environmental Information Disclosure Index. Majority of previous studies on environmental disclosures focused on a particular company or city or province. Few studies considered a whole sector of a country. Among the few studies that considered a whole industry, none of such studies considered the mining industry. In addition, our study employed a recent environmental disclosure index and modified a recent index for environmental performance for the empirical analysis making our study unique. We also employed vigorous reliability and robustness test to ensure that our findings are valid and can be used by policy-makers. Using panel data for thirty-four mining companies from both Shanghai and Shenzhen Stock Exchange for the period 2000–2018, our cointegration estimation analysis concluded that corporate environmental performance and environmental information disclosure has a positive and significant relationship at a 1% level. Trend analysis revealed that mining companies comply with environmental information disclosure in China. This was seen from the great improvement in the environmental disclosure for mining companies between 2008 and 2010 after the enforcement of EIDD. Our results contribute to the previous literature and open the way for further studies on industry level in other countries.

Performance Information, Racial Bias, and Citizen Evaluations of Government: Evidence from Two Studies

AbstractSocial accountability reforms emphasize expanding performance information disclosure and incorporating citizen feedback into performance evaluations of public organizations. However, social accountability scholarship has largely ignored possible discriminatory implications of performance information use despite calls for more social equity research. We look to bridge these two literatures, arguing that increasing exposure to performance information can actually activate racial bias in citizen feedback. Using two samples of White MTurk participants residing in the United States, we test this argument in a Negative Performance Information Study (n = 800) and a Positive Performance Information Study (n = 800). In the Negative Performance Information Study, we find increased exposure to negative performance information triggers more negative performance evaluations of public organizations led by Black public managers, but not White public managers, and strengthens preferences to fire Black public managers, but not White public managers. In the Positive Performance Information Study, we find increased exposure to positive performance information has no impact on performance evaluations of Black, nor White public managers but strengthens preferences to reappoint White, but not Black public managers. These findings suggest increasing exposure to performance information triggers racial bias in performance evaluations and preferences for holding public managers accountable.

How Does Public Disclosure of Performance Information Affect Politicians’ Attitudes towards Effort Allocation? Evidence from a Survey Experiment

Abstract Does relative performance information (PI) still impact politicians’ attitudes when the potential for external blame or credit is limited? And, if not, is the active disclosure of PI about government activities with a low propensity for media attention an effective strategy for increasing the effect of PI? Despite the tendency to progressively disclose PI, empirical evidence on the effectiveness of publicly disclosing PI is almost non-existent. Hence, a survey embedded experiment was developed, building on self-determination theory and blame-avoidance theory, to assess how the provision of PI with a low propensity to attract media attention affects politicians’ attitudes towards resource allocation and whether this effect is altered by the public disclosure of PI. Data from 795 Belgian (Flemish) local councilors indicates that PI with a low propensity for media attention does impact politicians’ attitudes towards effort allocation but that public disclosure of PI mitigates the effect size in the case of negative-valence PI. Thus, the results draw attention to the unintended—and potentially dysfunctional—effects of the disclosure of PI.

Does performance disclosure affect user satisfaction, voice, and exit? Experimental evidence from service users

An emerging literature in behavioral public administration shows that performance information affects the perceptions and choices of citizens vis-a-vis public services and programs. Methodologically, a significant share of these studies relies on hypothetical scenario experiments, or they focus on citizen assessments of broader government entities that citizens have little or no direct interaction with or personal information about. Yet, among actual service users, performance data is only one among many sources of information, potentially limiting its influence. Service users might also engage in motivated reasoning, for instance, by questioning the validity and relevance of inconvenient information about service providers they are otherwise happy with, or whom they are responsible for choosing. In this study, we conducted a survey experiment in the field, offering true performance data to service users, namely parents with children in public schools. We consistently find little or no evidence that performance information affects user satisfaction, intended voice and exit behaviors, incumbency voting, or goal prioritization. These findings question the feasibility of using performance information disclosure to affect the judgments and choices of service users, with potentially important downstream effects on the incentives facing public service providers.

Corporate Performance, Agency Costs and Non-financial Information Disclosure

Taking Shanghai and Shenzhen A-share listed companies as samples, this paper studies the relationship between corporate performance, agency cost and non-financial information disclosure. It is found that non-financial information disclosure is positively correlated with corporate performance and negatively correlated with agency cost. Further analysis shows that the higher the level of non-financial information disclosure, the stronger the ability to control risks. Based on the stakeholder - agency theory, this paper studies the non-financial information disclosure of listed companies in China in reducing the agency cost among stakeholders. The conclusion shows that the managers should promote good non-financial information disclosure, which can not only improve the performance of the company, but also reduce the risk and agency cost.

ANALISIS KINERJA KOMISI INFORMASI KABUPATEN CIREBON DALAM MENDORONG KETERBUKAAN INFORMASI PUBLIK

The establishment of the Information Commission is based on Law number 14 of 2008 on Public Information Disclosure which mandates the establishment of the Central Information Commission and Provincial Information Commission as well as the Municipal or District Information Commission if necessary. This research was conducted at the Cirebon District Information Commission. The purpose of this research is to know how the performance of information commission of Cirebon district in encouraging public information disclosure and what factors that can push and hinder the performance of information commission in encouraging public information disclosure and efforts what have been done. This research uses descriptive qualitative research method. Data collection procedures used with interviews, observation, documentation. Data analysis is done by data reduction, data presentation, and conclusion. Data validity is done with a degree of trust (triangulation). The results of research and analysis on the Performance of Cirebon District Information Commission using some indicators of research focus that researchers use, the conclusion that researchers pull is the performance performed by Cirebon District Information Commission is still not well proven from the public there are still many who do not know the existence of Information Commission and in the settlement, information disputes are still not optimal. as well as the factors that can push and obstruct the information disclosure arises from the internal itself is the scope of the secretariat of information commissions that must be improved so that the expected performance can be maximal again. Suggestions that can be given authors that until now there are many people who do not know the existence of information commissions, with conditions like this should be more informed commission information in conveying the purpose of information disclosure by conducting socialization activities to the community directly. The process of dispute resolution of information also needs to be improved by providing more maximal service again and improve existing resources, such as complementing facilities that can support the activities of the Cirebon District Information Commission.Keywords: Performance and Public Information Disclosure

Value of new performance information in healthcare: evidence from Japan.

Mandatory measurement and disclosure of outcome measures are commonly used policy tools in healthcare. The effectiveness of such disclosures relies on the extent to which the new information produced by the mandatory system is internalized by the healthcare organization and influences its operations and decision-making processes. We use panel data from the Japanese National Hospital Organization to analyze performance improvements following regulation mandating standardized measurement and peer disclosure of patient satisfaction performance. Drawing on value of information theory, we document the absolute value and the benchmarking value of new information for future performance. Controlling for ceiling effects in the opportunities for improvement, we find that the new patient satisfaction measurement system introduced positive, significant, and persistent mean shifts in performance (absolute value of information) with larger improvements for poorly performing hospitals (benchmarking value of information). Our setting allows us to explore these effects in the absence of confounding factors such as incentive compensation or demand pressures. The largest positive effects occur in the initial period, and improvements diminish over time, especially for hospitals with poorer baseline performance. Our study provides empirical evidence that disclosure of patient satisfaction performance information has value to hospital decision makers.