Information Transparency Research Articles

Peer Spillovers of Environmental Penalties - Evidence from Green Mergers and Acquisitions

Using data on environmental penalties and green mergers and acquisitions in China from 2011 to 2022, we study the spillover effects of environmental penalties on peer firms. Our findings indicate that when firms within an industry are penalized for environmental violations, other firms in the same industry tend to increase their green merger and acquisition activities. This tendency is likely due to the heightened environmental concern resulting from the penalties. Furthermore, the spillover effect is more pronounced in firms with lower financial constraints and higher information transparency.

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.

Research on the Impact of the "Live Streaming+Short Video" Sales Model on the Purchasing Behavior of Sportswear

The "live streaming+short video" sales model, with its intuitive, interactive, and convenient characteristics, has had a profound impact on the shopping mode of sportswear. This article aims to analyze the impact of the "live streaming+short video" sales model on the purchasing behavior of sportswear, reveal the relationship and path between various influencing factors, and provide theoretical basis and practical guidance for sportswear brands to formulate more effective marketing strategies. Firstly, based on theoretical analysis, a relationship model was constructed between social influence, product information transparency, anchor credibility, promotional strategy influence, perceived trust, and purchasing behavior; Subsequently, a structural equation model was constructed based on questionnaire survey data to test the theoretical model. The empirical results show that social influence, product information transparency, anchor credibility, and promotional strategies can significantly and positively affect consumer purchasing behavior; Perceived trust plays a mediating role between the aforementioned factors and purchasing behavior. Based on empirical results, it is recommended that sportswear companies use social media for knowledge output to enhance their brand's social influence; Develop various product information disclosure plans to enhance product information transparency; Strengthen the selection of talents within the industry and cultivate professional and trustworthy anchors.

“Philanthropic Organizations Posted on Social Media: What Important Values Make Netizens React and Donate?”

ABSTRACT This study explores the underlying aspects of netizens’ reactions and actions when viewing philanthropic organizations’ posts on social media. The reactions of netizens in question are pressing the like and/or share buttons and writing comments. Meanwhile, the action is to donate. Our data comes from a survey with open-ended questions. Our respondents totaled 583 people. We found that the reaction of pressing the like button is most often done and generally without a specific reason. Netizens will press the share button when the philanthropic organization’s post evokes emotions. Netizens comment to convey trust and as a way to show sympathy for the beneficiaries. Video is a medium with higher news value and makes netizens more willing to donate than photos. Netizens will donate to a philanthropic organization’s post when they trust the institution, and it contains transparent information about the beneficiaries’ conditions and accountability and touches emotions. The presence of relevant religious quotes in the narrative of philanthropic organizations’ posts also increases netizens’ motivation to donate.

The Real Value of CSR Performance in the NEV Industry: Evidence from China

Corporate social responsibility (CSR) is increasingly becoming a major concern for investors and consumers, prompting companies to devote more resources to community engagement to manage conflict and improve business performance. In this study, we conducted an empirical analysis with a sample of 385 listed companies in China’s new energy vehicle (NEV) industry to analyze the relationship between CSR performance and corporate value (CV). With the ordinary least squares (OLS) regression analysis, our study’s results show a positive relationship between the CSR performance of these companies and corporate value. In addition, our findings indicate a lagged effect in the relationship between CSR and CV. The mechanism analysis suggests that corporate CSR performance helps to improve corporate reputation, reduce financing constraints, and thus increase corporate value. Moreover, high analyst attention and information transparency can enhance the positive effects of corporate CSR. This study contributes to the existing literature and empirical evidence by exploring the correlation between CSR performance and firm value in the context of emerging countries and the NEV industry.

Blockchain Technology and Corporate Performance: Empirical Evidence from Listed Companies in China

Blockchain technology is widely recognized and adopted by many organizations, as it serves as a fundamental technological infrastructure for the digital economy. This has led to a rapid acceleration of industrial transformation and digital innovation. This study employs empirical data from a substantial sample to investigate the potential applications, strategies, and advantages of blockchain technology. This paper examines A-share listed companies in China from 2015 to 2021, offering valuable empirical insights that demonstrate how the implementation of blockchain technology can markedly improve corporate performance in a major global economy. The research in this paper examines the differential effects of blockchain technology by innovatively integrating financial and environmental performance metrics into an empirical model, revealing that implementing blockchain technology significantly enhances environmental performance. Furthermore, it has been observed that blockchain technology adoption can contribute to corporate performance by improving information transparency. It is worth noting that blockchain technology’s influence on enterprises’ performance exhibits discernible variations based on the ownership structure, environmental sensitivity, and technical features of said enterprises. This paper can be used as a guide for enterprises looking to implement blockchain technology and for governments seeking to develop digitalization legislation.

Blockchain technology and consumers’ organic food consumption: a moderated mediation model of blockchain-based trust and perceived blockchain-related information transparency

Purpose While the application of blockchain technology in the organic food supply chain has been increasingly recognized, the extant knowledge of how blockchain-driven traceability influences consumer perceptions and purchase intentions remains underexplored. Grounded in the stimulus-organism-response theory, this study aims to construct a moderated mediation model to examine blockchain-enabled traceability’s direct and indirect impacts on organic food purchase intention through perceived blockchain-related information transparency, considering the moderating role of blockchain-based trust. Design/methodology/approach A purposive sample of 5,326 Vietnamese consumers was surveyed using the PROCESS macro to test the proposed hypotheses. Findings The findings indicate that blockchain-enabled traceability significantly enhances perceived blockchain-related information transparency, which positively influences organic food purchase intention. Furthermore, blockchain-based trust was found to positively moderate both the direct effect of transparency on purchase intention and the indirect impact of traceability on purchase intention through transparency. Practical implications Practical and managerial insights for stakeholders in the organic food sector are also discussed. Originality/value These results contribute to the literature by extending the stimulus-organism-response model to the context of blockchain technology in supply chains and highlighting the critical role of trust in moderating the effectiveness of technological innovations.

Not all about the money: Service quality information improves consumer decision-making

Information asymmetries are pervasive in many industries and can result in large losses in consumer welfare. Does providing product quality information result in improved consumer decision-making? We study this question in a market where quality is notoriously hard to determine ex ante: the residential energy market. Using a discrete choice experiment (N = 1,002), we document a substantial willingness-to-pay (37–45 % of the median bill) for four service quality attributes (transparency, agency, authenticity, and convenience). In an incentivized search task (N = 432), we show that how quality information is presented matters: consumers who view information in the form of ratings and stamps of approval are (i) 4 % more likely to opt in to the search task, and (ii) 20 % more likely to correctly identify given levels of quality, relative to consumers who are provided with bar graphs, pie charts, and text. Finally, using a decision experiment (N = 510) with real company names familiar to our participants, we find that the provision of quality information increases choices of the best-rated company more than 20-fold, relative to the control scenario where quality information is absent, in which consumers select companies predominantly on price and brand awareness. Our findings are applicable to other markets in which information asymmetries are present, where policymakers should consider interventions that promote transparency and quality information provision.

Public non‐financial reporting: Reflection of environmental aspects of development and activities of economic entities

The article considers economically significant information reflected in public non‐financial reporting, enabling reflection on the environmental aspects of an organization's development. The analysis aims to articulate problems in the disclosure economically significant information in public non‐financial reporting due to a significant difference between national and international requirements in terms of the environmental aspects of development.In the process of conducting this study, a monograph (descriptive) research method, a system analysis method and a comparative analysis method were used.The results of the study confirmed the need to improve environmental reporting as part of the development of the concept of non‐public financial reporting, while authors emphasising the need to develop the composition and content of environmental reporting, taking into account the integration of financial and non‐financial reporting. The application of the approaches outlined in the article allowed the generation of more transparent information for all interested users regarding the environmental activities of companies and will bring national and international standards closer to application.The environmental reporting of companies and its components are proposed as part of the development of the concept of public non‐ financial reporting.

Study on the Problems and Countermeasures of Tourism Market Supervision in Ethnic Areas

Ethnic regions are increasingly capturing the attention of tourists, thanks to their unique cultural heritage and natural resources, thus becoming indispensable growth points in the tourism market. However, the rapid expansion of the tourism sector has imposed heightened demands on regulatory mechanisms. Currently, the tourism market in these regions faces a myriad of challenges, including insufficient oversight, a lack of transparency in information, and varying quality among market participants. These issues not only diminish the visitor experience but also impede the advancement of sustainable tourism development. Consequently, there is an urgent need for a comprehensive and effective regulatory strategy to standardize market order and ensure tourism quality. This study analyzes the current state and challenges of the tourism market in ethnic areas and proposes a series of targeted recommendations, including the enhancement of the regulatory framework, increased enforcement efforts, improved information transparency, and the elevation of participant quality. These strategies aim to foster the robust development of the tourism market, enhance visitor satisfaction, and achieve sustainable growth in the tourism industry of ethnic regions.

Intelligent manufacturing, auditor selection and audit quality

PurposeThe purpose of this paper is to examine the influence of intelligent manufacturing on audit quality and its underlying mechanism as well as the variation in this influence across different types of organizations.Design/methodology/approachThis research utilizes a difference-in-differences (DID) method to examine how enterprises that apply intelligent manufacturing choose auditors and impact their audit work. The study is based on 15,228 observations of Chinese-listed A-shares from 2011 to 2020.Findings(1) There is a strong correlation between intelligent manufacturing and audit quality. (2) This positive correlation is statistically significant only in state-owned enterprises (SOEs), those that have steady institutional investors and where the roles of the CEO and chairman are distinct. (3) Enterprises that have implemented intelligent manufacturing are more inclined to employ auditors who possess extensive industry expertise. The auditor's industry expertise plays a crucial role in ensuring audit quality. (4) The adoption of intelligent manufacturing also leads to higher audit fees and longer audit delay periods.Practical implicationsThis paper validates the beneficial impact of intelligent manufacturing on improving corporate governance. In addition, it is recommended that managers prioritize the involvement of skilled auditors with specialized knowledge in the industry to ensure the high audit quality and the transparency of information in intelligent manufacturing enterprises.Originality/valueThis study builds upon previous research that has shown the importance of artificial intelligence in enhancing audit procedures. It contributes to the existing body of knowledge by examining how enterprise intelligent manufacturing systems (IMS) enhance audit quality. Additionally, this study provides valuable information on how to improve audit quality in the field of intelligent manufacturing by strategically selecting auditors based on resource dependency theory.

EXAMINING THE CURRENT PRACTICE OF GOVERNANCE IN ZAKAT IN A MUSLIM MINORITY COUNTRY: THE CASE OF SRI LANKA

Zakat constitutes one of the pillars of Islam and religious practice in Islam aimed at supporting those in need. It also plays a major role in contributing to the socioeconomic development of society. To achieve efficient zakat management, institutions must focus on strong governance and proper management practices. This focus is essential due to the institution’s responsibility to manage effectively and provide transparent information to the public. Therefore, to meet stakeholder needs, non-profit organizations must prioritize governance. In Sri Lanka, the absence of specific laws or regulations governing zakat practice such as the Marriage and Divorce (Muslim) Act, the Muslim Intestate Succession Ordinance, and the Muslim Mosques and Charitable Trusts or Wakfs Act has led to a need for examination of current governance practices related to zakat collection and distribution. This study explores these practices and highlights how applying governance principles can help achieve the objectives (Maqasid) of zakat management in Sri Lanka. The research employs a doctrinal analysis of primary and secondary data, including statutes, practices, journals, and reports. Additionally, the study analyzes current zakat management practices through interviews with five respondents, including zakat practitioners and Shari’ah scholars, using thematic analysis. The findings reveal several issues: the causes of inefficient governance in zakat management, theoretical and practical problems with existing practices in Sri Lanka, gaps in the zakat governance framework, and conceptual and management deficiencies within zakat institutions. The study recommends developing a new governance framework for zakat management. This should include modern rules and practices based on Islamic law, staff training in fundamental Islamic knowledge, improved internal and external audit processes, and increased awareness among managers, donors, beneficiaries, and members of society.

The Silent Saboteur: The Impact and Management of Malicious Word-Of-Mouth in The Digital Age

In the digital era, the impact of malicious word-of-mouth on individuals and businesses is complex. Malicious online reviews and false information can spread quickly, causing serious damage to personal reputation and corporate branding. This article provides an in-depth analysis of the effects of malicious word-of-mouth on various aspects of the economy and society, and proposes effective strategies for response. Through specific case studies, such as the controversy surrounding the BOY LONDON brand, the public relations crisis of the Wahaha brand, the damage to Jiang Ping's personal image, and the "pink-haired girl" incident, this article illustrates how malicious word-of-mouth can erode consumer decision-making autonomy, pose threats to personal physical and mental health, and tarnish the image of brands and enterprises. To address these challenges, companies and governments must take proactive measures, such as monitoring and responding to negative information on the Internet to maintain a positive image and strengthening Internet regulation to ensure the authenticity and transparency of information and to prevent the spread of false information. At the same time, improving public media literacy helps people identify and resist the influence of malicious word-of-mouth.

Where is democracy nestled? Reflections on organizational degeneration based on an artists’ cooperative

PurposeThis article presents a compelling case study of a workers’ cooperative in the cultural sector. It offers a unique opportunity to delve into the tensions between managerial and democratic control, particularly in the context of heightened artistic claims. The pivotal role of an accountant in management for nearly two decades sparks a thought-provoking question about the potential for cooperative degeneration.Design/methodology/approachOur research employs a rigorous qualitative method, utilizing semi-structured interviews of six key members and a comprehensive analysis of legal, accounting and other media documents.FindingsOur findings offer a significant perspective, refuting any indications of organizational degeneration. The decision-making processes continue to uphold democratic principles. While the manager and his administrative staff wield substantial authority, this is justified by their duty to preserve the collective. This duty is executed under democratic control, facilitated by information transparency. The low level of democratic participation poses a challenge, but the manager’s initiatives are aimed at addressing this. The effectiveness of this control, however, relies on the active participation of the members, which acts as a strong deterrent against organizational degeneration.Originality/valueThe originality of our contribution lies in our reference to Chester Barnard whose reflections on industrial democracy have been forgotten, reflections linked to his conception of managerial authority. We also highlight the importance of empowering individual members, which leads them to consider the consequences of their actions. As a result, the manager is not placed in a situation where he has to decide alone, as the scope of his unilateral powers is de facto delimited.

Enhancing financial transparency in non-profit organisations: Challenges and integration of IFRS for SMEs, IFR4NPO, and GRI standards

This study examines the challenges and needs faced by non-profit organisations (NPOs) in Colombia regarding the adopting of the International Financial Reporting Standards (IFRS) for small and medium enterprises (SMEs), particularly focusing on sections 3 and 4. Employing a mixed-method approach, the research combines qualitative and quantitative methods. Surveys were conducted with Colombia NPOs, official documents were analysed, and comparative case studies were performed. In-depth interviews and participant observation were also utilised to gain a comprehensive understanding of the obstacles and current practices within the Colombian context. The findings reveal that NPOs in Colombia encounter significant difficulties in adopting IFRS due to the complexity of the standards, lack of specialised resources, and the need for specific training. Internal challenges such as deficiencies in staff qualifications and training, resistance to change, and technological limitations were identified. Externally, ambiguities in the legal framework and donor requirements were highlighted. The case study illustrated that, while there are similarities between IFRS for SMEs and the IFR4NPO project, specific adaptations are essential to address the unique needs of NPOs. This research underscores the necessity of developing additional guidelines or modifying existing ones to enhance the interpretation and application of IFRS in Colombia NPOs. It is recommended to implement proactive strategies based on education and legislative reform to improve the transparency and comparability of financial information. Adopting a more tailored and supported accounting framework will facilitate a more relevant and sustainable implementation, benefiting Colombian NPOs in their resource management and accountability efforts.

Analisis Penerapan Manajemen Keuangan Syariah pada Pengelolaan Dana Bantuan Operasional Sekolah (BOS) di Madrasah Ibtidaiyah Negeri 2 Tanjung Jabung Barat

Madrasah Ibtidaiyah Negeri 2 Tanjung Jabung Barat is one of the school located in the village with quite a large number of students. As a school that focuses on Islamic religious subjects, school need to understand the principles of sharia financial management in managing School Operational Assistance (BOS) funds in order to avoid problems that can hinder the educational process. Therefore, this research aims to evaluate and analyze the application of sharia financial management in managing BOS funds in school. This research uses qualitative methods with descriptive research type. The data sources used are primary and secondary data. Data collection methods include observation, interviews, documentation, and drawing conclusions. The results of the research show that the implementation of sharia financial management in managing BOS funds at Madrasah Ibtidaiyah Negeri 2 Tanjung Jabung Barat, especially the implementation of planning, organizing, implementing and controlling functions, has been carried out well; However, transparency of information to the committee still needs to be improved. The use of funds needs to be aligned with priority needs for better efficiency, and detailed reporting is not yet fully optimal. Increasing transparency and committee involvement is very important to increase public trust in Madrasah financial governance.

Information Asymmetry Effect on Stock Liquidity Effect on Dividend Payout in Market Microstructure in Indonesia

The impact of market microstructure in shaping corporate governance has been distinguished in several previous research. Market Microstructure becomes prominent factor in emerging markets. This study tested the effect of market microstructure, in the scheme of stock liquidity, on dividend payouts. This study has set focus mainly on the impact of stock liquidity on the corporate payout policy. Later, the researcher examined the interaction given to the stock liquidity factor with information transparency and agency problem properties since the researcher believed that transparency is linked to the and, subsequently, affecting the corporate agents. This research examined observations using quantitative research method, Tobit regression on 256 non-financial firms of the Indonesian capital market during 2010-2018. Stock liquidity significantly impacted dividend policy. The result showed robustness with other stock liquidity measures. This study found that information asymmetry and agency problems had a moderation effect on stock liquidity effect on dividend payout. However, the interaction of stock liquidity and disparity of control rights and cash flow rights did not give a moderation effect on the dividend payout policy. The result supports the notion that dividend payout is an outcome of firm good governance and an inverse of dividend signaling theory.

How does informed trading affect credit bond spreads: Evidence from China's interbank bond market

China's interbank bond market is an institutional investor market, and transactions are more information-based. Whether and how informed trading can affect credit bond pricing is an urgent problem to be solved in the study of China's bond asset pricing. This paper uses credit bond issuance and trading data and stock high-frequency trading data from May 2014 to December 2020 to construct informed trading probability and bond liquidity indicators. Using regression analysis and adjustment and mediation effect test methods, this paper studies the impact of informed trading on China's interbank credit bond pricing and the channel role of liquidity. The results show that the probability of informed trading has a significant positive impact on credit bond spreads. Informed trading leads to an increase in credit bond spreads by amplifying bond illiquidity. The amplifying effect of informed trading on credit bond spreads is stronger for bonds with high illiquidity. The amplifying effect of informed trading on credit bond spreads will be stronger in private enterprises, enterprises with low information transparency, and high debt ratios. This study reveals the risk nature of informed trading in China's interbank bond market, which helps to deepen the understanding and management of the bond market.