Reporting Award Research Articles

Flawed charts in pension fund popular reports

PurposeThe purpose of this study was to investigate how pension funds use charts in popular reports. Popular reports communicate a fund’s financial health to non-technical audiences, and often contain charts, tables, and other graphical elements. Do these graphics meet audiences’ information needs and align with chart best practices?Design/methodology/approachThis study focused on the 60 retirement funds receiving a 2021 popular report award from the Government Finance Officers Association. The author analyzed each graphic’s topic and design.FindingsMost funds presented key topics (such as funding rate and portfolio return), but they generally lacked helpful benchmarks or peer comparisons. A total of 30% of reports had one or more broken charts, where their visual elements did not match the underlying data. A total of 70% of the reports contained at least one badly designed chart. These design flaws included non-zero (truncated) axes, hidden non-zero axes and misleading 3D perspectives.Originality/valueTo the best of the authors’ knowledge, this paper is the first to examine chart quality in pension fund popular reports.

Trend Comparison Of Bank Sustainable Financial Statements Based On Assessment Of Economic Aspects, Environmental Aspects, And Social Aspects

The acceleration of unbalanced economic development has an impact on environmental damage and social inequality. This article aims to find out how the trend of comparing sustainable financial statements in banks is based on assessments from economic aspects, environmental aspects, and social aspects. This sustainable financial report is the first time it has been applied to financial service institutions that have been determined based on the regulatory policies of the Indonesian Financial Services Authority. descriptive quantitative is used as a method that helps researchers in conducting research with trend analysis of sustainable financial statements comparison in banking from 2020-2021, at the bank that won the Annual Report Award in the Category of Listed Financial Banking. Research results based shows that economic, social, and environmental damage can be overcome with awareness by each bank in providing financing to consumers who care about these three aspects. This sustainable financial report is so that it can be used by the company as a policy improvement on the awareness of the financial services industry to apply from economic, environmental, and social aspects

Integrated report quality and earnings management – Evidence from South Africa

Background: No prescribed standard disclosure requirements for integrated reporting exist. Instead, the International Integrated Reporting Framework is widely adopted, which provides guidelines for integrated reporting to improve the quality of information reported to end-users. These guidelines, however, allow management a degree of freedom in implementing integrated reporting, making the quality of disclosure thereof dependent on management’s approach to reporting. In contrast to the purpose of integrated reporting stands the management of earnings where management can use judgement to manipulate financial reports to mislead end-users. The conflicting theoretical objectives of integrated reporting and earnings management (EM) pose the question of how these two variables relate to one another.Aim: We examine the association between the quality of integrated reports and EM.Setting: Our sample consists of 238 company-years from 2013 to 2017 that were listed as part of the Johannesburg Stock Exchange (JSE) top 100 companies and were ranked on Ernst and Young (EY’s) annual Excellence in Integrated Reporting Awards. The likely association between integrated report quality (IRQ) and EM was identified based on theoretical frameworks, including the stakeholder and agency theories.Method: We perform a robust, one-way cluster regression on our main empirical model, measuring IRQ on rankings, determined by the annual EY Excellence in Integrated Reporting Awards and EM through discretionary accruals.Results: We find a statistically significant negative association between EM, measured as income increasing accruals, and IRQ.Conclusion: Results suggest that companies with income increasing EM activities are less likely to disclose higher quality integrated reports.

Capital market response to high quality annual reporting: evidence from UK annual report awards

We examine the capital market response to the publication of annual reports shortlisted for corporate reporting awards. We find weaker capital market reactions to the publication of shortlisted annual reports compared with a matched sample of non-shortlisted annual reports, consistent with shortlisted reports containing similar or less price sensitive information relative to non-shortlisted reports. Further analysis shows that firms publishing shortlisted reports are more likely to release information to investors in a timelier manner throughout the financial year. We complement our archival empirical analysis with interview evidence from FTSE350 executives and consultants to shed light on the motives for investing in high-quality annual reports. Collectively, our results support the view that high quality annual reporting reflects superior firm-level investor communication processes and that the broader corporate reporting cycle shapes the information role of firm reporting.

The role of integrated reporting in communicating adherence to stakeholder capitalism principles during the COVID-19 pandemic

Purpose Stakeholder capitalism (SC) advocates that organisations should focus on creating long-term value for all key stakeholders rather than maximising short-term profits for shareholders. This paper aims to explore whether and how business organisations have applied stakeholder capitalism principles (SCPs) during the COVID-19 pandemic and how these efforts were communicated in integrated reports. Design/methodology/approach This study is based on the content analysis of the text extracted from the integrated reports of 22 companies categorised as excellent in the 2020 EY Excellence in Integrated Reporting Award 2020. The research material consisted of paragraphs that reflected how the company observed the SCPs in practice. Findings The stakeholder responsibility principle was the most represented by the examined companies, followed by the principles of continuous creation, stakeholder engagement and stakeholder cooperation. The COVID-19 pandemic has propelled the necessity of implementing innovative solutions to counteract the virus's spread. It has also spurred the need for two-way digitalised communication between the executives and stakeholders. The new situation also required collaborative approaches in the forms of partnerships, joint initiatives and programmes to ensure employee safety and help communities recover from the social and economic impacts of the pandemic. Originality/value This study links SC with integrated reporting (IR) and contributes to the literature by providing new insights into how SCPs have been applied during the COVID-19 pandemic. This discussion suggests that whereas these principles determine how the companies must act to satisfy stakeholders expectations, integrating reporting may help develop a report that is stakeholder-oriented and which responds to their information needs.

The Awareness of the Indonesian Market Toward the Corporate Social Responsibility of a Company

The existence of CSR institutions and associations coherent with several laws and regulations concerning CSR applied in Indonesia indicates that Indonesia gives more attention to the importance of CSR. The increasing number of parties who appreciate CSR performance also motivates companies to commit to implementing CSR. However, the next question is related to whether the public (market) responds to the efforts of the government, companies, and all parties involved in the progress of CSR in Indonesia or not. Specifically, the question lingers around whether the Indonesian market is aware of the importance of CSR or not. Departing from the two questions, the study aims to determine the response of the Indonesian market after the CSR-related information has been identified since market responses will show awareness of the importance of CSR. The data that have been used in the study are the secondary ones and include the stock prices that come from 5 days before and 5 days after the announcement of the Indonesia Sustainability Reporting Award (ISRA) 2017 and 2018. The hypothesis test results show no differences in stock prices between 5 days before and 5 days after the announcement of the ISRA award. On the contrary, the hypothesis test results show that the Indonesian market has not responded to CSR information of a company. The reason is that the Indonesian market does not consider CSR information relevant for investment decision making.

Public perception and firm’s market performance: The case of Annual Report Award in the emerging economy

It has been a general belief that the public’s perception can affect the firm’s value. Subsequently, many initiatives have been made by various governments to pull such effects on their listed firm. Particularly in Indonesia, one of those initiatives is known as Annual Report Award (ARA), whereby its participants are required to show their good corporate governance (GCG) practices. Thus, the purpose of this study is to investigate the 2018 ARA’s effect on the market performance of its listed firms’ categories. In which, the analysis focuses on the categories’ abnormal returns and the abnormal trading volume. Through the application of the event study methodology, the findings imply that the Indonesian capital market is more attentive to the participants within the financial state-owned enterprise category, and 2018 ARA has helped increase the participants’ abnormal return within the respective category. Although an increase in abnormal returns is not necessarily accompanied by an increase in abnormal trading volume, the findings also suggest that the 2018 ARA can influence participants’ stock returns across multiple market indices. Hence, the ARA event could influence the public’s perception and, simultaneously, bringing added value to its participants.

PENGARUH SUSTAINABILITY REPORT TERHADAP KINERJA KEUANGAN PERUSAHAAN

This study aims to examine the impact of disclosure of sustainability economic (EC), social dimension (SO) and environmental dimension (EN) on issuer's financial performance in 2012-2015 period in mineral and mineral mining sector, energy, gas and petroleum, and infrastructure, and companies that won the SRA (Sustainability report Award) competition in 2015, each winning 1, 2, 3. The research method used in this research is quantitative approach, using cross section data. and it have 40 sample of firm. The independent variables in this study are sustainability reports as measured by economic dimensions (EC), Social (SO), and Environment (EN). The dependent variable in this study is the company's financial performance which can be measured by liquidity ratio, solvability, activity, profitability and investment. Regression used in this research is multiple regression. The result of the research shows that there is influence of sustainability report of economic dimension (EC) with company financial performance. The sustainability report of social dimension and environmental dimension has no effect on company's financial performance. The results of this study are expected to provide benefits to companies, investors, and other stakeholders in the various functions of sustainability reporting mechanisms. The author uses only one control variable are firm size, if adding another control variable, there may be an independent variable influence on the dependent.

Winning the Australasian Reporting Awards: An analysis of accounting and economic outcomes

Despite the intuition that winning reporting awards should be primarily based on reporting quality, we find no evidence that Australian Securities Exchange (ASX)-listed firms winning the Australasian Reporting Awards (ARA) over the period 2003–2016 exhibit higher financial reporting quality. However, we find that winning reporting awards is associated with higher annual report readability. Next, firms winning the ARA neither show superior future accounting performance nor higher market valuation. We also find that investors are not compensated with higher stock returns. Taken together, our findings suggest that the criteria applied to decide the ARA winners capture higher levels of readability but do not correlate with common academic signals of financial reporting quality. Users of the ARA outcomes should also be cautious with the immediate interpretation that the ARA are reliable signals of superior corporate performance. JEL Classification: D82, L15, M41

THE EFFECT OF GOOD CORPORATE GOVERNANCE, PROFITABILITY AND COMPANY SIZE ON SUSTAINABILITY REPORT DISCLOSURE

This study aims to analyze the influence of Good Corporate Governance, Profitability, Good Corporate Governance, and Company Size on Sustainability Report Disclosure. The sampling technique used was purposive sampling. The research was conducted on the participating companies of the Indonesia Sustainability Report Award (ISRA) during the 2015-2019 period. The purpose of this study was to determine the effect of Good Corporate Governance, Profitability and Company Size on Sustainability Report Disclosure. The results of this study indicate that the profitability and size of the company have no effect on the Sustainability Report Disclosure. Good Corporate Governance has a significant effect on Sustainability Report Disclosure.

Market Reaction Analysis of Annual Report Award Announcement: An Event Study Using Abnormal Return, Trading Volume Activity, and Stock Price

This study intends to examine the differences in market reaction around the announcement of the Annual Report Award which is not only measured by abnormal return but is also measured using trading volume activity and stock prices. The data used are quantitative data in the form of a list of companies that received the Annual Report Award for the 2015-2018 period, the daily closing price of the ARA-winning company in the event window, the composite stock price index, the number of shares traded, and the number of shares outstanding. The event window is selected for 11 days because the long window period will blend with the effects of other events or confounding effects. The results of the study concluded that the market reacted around the announcement of the Annual Report Award for the 2015-2018 period measured using abnormal returns, trading volume activity, and stock prices. There is no difference in abnormal returns before and after the announcement of the 2013-2016 Annual Report Award period. Instead there are differences in trading volume activity and stock prices before and after the announcement of the Annual Report Award for the 2015-2018 period.

Linking integrated reporting quality with sustainability performance and financial performance in South Africa

Background: Ten years have lapsed since the launch of the International Integrated Reporting Council. Stakeholders increasingly question whether integrated reporting (IR) meets the objectives of decision-usefulness and accountability. Aim: The primary objective of this study was to assess the usefulness of IR by examining the interrelations between the integrated reporting quality (IRQ), sustainability performance and financial performance of listed companies in South Africa. Setting: The study is conducted in the country where integrated reporting is most established. The links between the IRQ of the Top 100 companies listed on Johannesburg Stock Exchange and their environmental, social and corporate governance (ESG) scores and multiple financial indicators are investigated over the period 2013 to 2018. Method: The EY Excellence in Integrated Reporting Awards was used as a metric to determine the sample companies’ IRQ. These awards were ranked according to four categories, namely ‘progress to be made’, ‘average’, ‘good’ and ‘excellent’. Sustainability (ESG scores) as well as financial performance data (accounting-based and market-based variables) were sourced from Bloomberg. The panel dataset was analysed by conducting a mixed-model analysis of variance and panel regressions. Results: A high level of IRQ was found to be significantly associated with high levels of environmental, social and corporate governance performance, as well as high earnings per share and high leverage. Conclusion: IR appears to strengthen managerial efficiency and legitimacy in the eyes of debt capital providers in South Africa, while equity capital providers do not provide a clear signal of approval.

Disclosure on Sustainability Reports, Foreign Board, Foreign Ownership, Indonesia Sustainability Reporting Awards and Firm Value

This study aims to investigate how disclosure on sustainability reports, foreign on boards, and foreign ownership affect firm value. Indonesia Sustainability Reporting Award (ISRA) is used to moderate the impact of the disclosure on the sustainability report on the firm value from 2013 to 2017. This study uses 37 firms as a sample with 159 observations and using panel data analysis. Subgroup analysis is used to test the existence or absence of homologizer moderation. The result showed that only the disclosure of sustainability has a positive impact on firm value. Foreign board and foreign ownership have been shown to not affect firm value. Additional testing is performed by splitting types of companies that have become state-owned enterprises (SOEs) and non-SOE, as well as kinds of services & finance and Manufacturing & others. We found that foreign commissioners in the service and finance sectors category have a positive effect on firm value, and foreign ownership in State-Owned Enterprises (SOEs) has a positive influence on firm value. Therefore, it is suggested that the organization of ISRA should disclose their winning criteria since it can be used as information in decision-making

The effect of environmental and social disclosure on firm value with financial performance as intervening variable

This research analyzes the effect of environmental and social disclosure (ESD) on firm value (FV) with financial performance (FP) as an intervening variable. Objects of this research are companies involved in Indonesia Sustainability Reporting Award (ISRA). The samples are companies that participated in the ISRA during the period starting from 2013 to 2016. The sample of this research is 15 companies if the period used four years, then the final number of observations used for further analysis is 60. The result of this study shows four essential findings. First, the direct effect of ESD on FV is not significant, the impact of ESD on FP is positive and significant, the effect of FP on FV is positive and significant, FP mediates the impact of social and economic performance on FV. This finding confirms the application of legitimacy and stakeholder theory in developing countries where stakeholders have no power to pressure corporate management into social and environmental activities. The results also benefit managers and standards setters. For managers, this finding emphasizes that ESD is a crucial factor in legitimizing the company's products in the eyes of stakeholders. For standard makers, the results are useful for them to develop social and environmental reporting guidelines.

The Effect of Integrated Firm’s Reporting on Firm’s Performance

This study investigates the effect of integrated firm’s reporting on firm’s performance. The integrated financial reporting contains of financial, good corporate governance (GCG) and sustainability reporting that shows company’s responsibility to capital providers, environment and social. The important question is whether more disclosure indicates more informative for decision maker. Therefore, it is important to identify which reporting useful for primary users. This study examines 108 public comphanies that granted ISRA (Indonesia Sustainability Reporting Award) from 2013-2017 for firm’s performance, GCG index, and sustainability index. The result shows that information for capital providers can be used for investment and credit decision. This finding indicates company faces agency conflict, so company’s disclosure dedicates for primary users, namely creditor and shareholder. This finding also indicate that earnings more informative than good corporate governance and sustainability reporting. It may show the concentrated ownership in Indonesia encourages management to behave less aggressive.
 Keywords: Tobin’s Q, integrated firm’s reporting, good governance, sustainability reporting, earnings

Analysis of Differences in Stock Price and Stock Volume of Trade Before and After Annual Report Award (ARA) Announcement in 2009-2016 in Award Winning Companies Listing In Indonesia Stock Exchange

This study aims to examine whether there are differences in stock prices and trading volume before and after the announcement of the Annual Report Award (ARA) at Award-winning companies. The sample of this research was obtained using purposive sampling method. Based on the existing criteria, 32 companies were obtained as the research sample. Hypothesis testing is done by using paired sample t-tests which were previously tested for normality first on each variable. The results of the study showed that there were no significant differences in share prices and trading volume before and after the announcement of the Annual Report Award (ARA) 2009-2016. Able to change investor decisions in investing

Profitabilitas Sebagai Pemoderasi Pengaruh Pengungkapan Sustainability Reporting Pada Nilai Perusahaan Pemenang Indonesian Sustainability Reporting Awards

This study aims to determine the effect of Sustainability Reporting on firm value and determine the ability of profitability in moderating the effect of Sustainability Reporting on firm value. This research was conducted on the winners of the Indonesian Sustainability Reporting Awards (ISRA) in 2015-2018. The number of samples taken as many as 13 companies using purposive sampling techniques. The data analysis technique used is Moderated Regression Analysis (MRA). Based on the results of the analysis found that Sustainability Reporting has a positive effect on firm value and profitability strengthens the effect of Sustainability Reporting on firm value.
 Keywords: Sustainability Reporting; Firm Value; Profitability.

A Comparative Study on Financial Performance of the Participants in Indonesia Sustainability Reporting Awards

The main objective of this research is to analyze the financial performance of companies that have participated in Indonesia Sustainability Reporting Awards (ISRA) competitions in 2009–2017, both regularly and temporarily. This study also analyzes the differences in financial performance in terms of industrial sector factors and the number of workers. This research applies secondary data, which is carried out with independent t–test and multivariate test. Companies that consistently participate in ISRA competitions have a smaller level of leverage, and more exceptional ability to generate operating cash. Companies with fewer than two thousand employees are more productive than companies with ten thousand employees. However, when the number of employees is more than ten thousand people, productivity managing assets is even better. It seems that investors appreciate small companies more. Compared to companies in the banking sector, companies in the manufacturing and non–manufacturing industries have more substantial debts, more productive assets, and higher stock market values. It seems that investors appreciate this ISRA competition more for non–banking companies.

The Effect of Sustainibility Reporting Disclosure and Its Impact on Companies Financial Performance

<p>The purpose of this research was to examine empirically the effect of sustainability reporting disclosure on company performance. Sustainability reporting is a report that measures, discloses and shows the responsibility of the company to internal and external parties as an accountability form of organization performance in order to gain continuous development purpose. Sustainability reporting becomes trend and need for companies to disclose economic, environmental, and social performance to stakeholders. Samples used as many as 40 observations were derived from companies that consistently become ISRA (Indonesia Sustainability Reporting Award) nomination and listed in Indonesia Stock Exchange (BEI) during 2016-2017. Sustainability reporting measured by GRI (Global Reporting Initiative) continuous reporting guideline-G4 with 91 indicator items and financial performance measured by Return on Assets (ROA). The analysis method used was Multiple Linear Regression. The results of the research show that Economic Dimension Disclosure (EC) in sustainability reporting has effect on financial performance. Whereas, Environmental Dimension (EN) and Social Dimension (SO) have no effects. The condition indicates that sustainability reporting in short term has not been able to affect companies financial performance.</p>

ANALISIS PERBEDAAN ABNORMAL RETURN, VOLUME DAN HARGA PERDAGANGAN SAHAM SEBELUM DAN SESUDAH PENGUMUMAN INDONESIA SUSTAINABILITY REPORTING AWARD (ISRA)

The objective of this research was to prove empirically the differences between the abnormal return, the trading volume, and the trading price before and after the Indonesia Sustainability Reporting Award (ISRA) announcement. There are 3 independent variables of this research i.e., the abnormal return, the trading volume and the trading price. The population of this research was companies participated in the ISRA award in the period of 2011-2016. The sampling technique used in this research was the purposive sampling. The number of samples of this research was 112 companies obtained during 2011-2016. The data analysis technique used in this research was the wilcoxon signed-rank test. The result of this research was that the trading volume had a significant difference before and after the Indonesia Sustainability Reporting Award (ISRA) announcement; while, the abnormal return and the trade price had an insignificant difference before and after Indonesia Sustainability Reporting Award (ISRA) announcement.