Information Transparency Research Articles

The faster the better? Comparing sustainability performance information in fast and luxury fashion

PurposeFashion brands, including fast and luxury segments, receive harsh criticism for engaging in unethical practices such as poor working conditions and environmental damage. As a result, fashion supply chains are pressured by stakeholders to publicly disclose internal supply chain performance information and to show a high level of supply chain transparency. This paper compares supply chain transparency in fast and luxury fashion in Europe.Design/methodology/approachBy applying the maturity curve of fashion supply chain transparency, developed by Muratore and Marques (2022), the websites of 20 fast and 20 luxury fashion brands were analysed and classified as Opaque, Translucent or Transparent.FindingsDespite its reputation, fast fashion demonstrated higher levels of transparency than luxury fashion. Luxury fashion only performed better in terms of the accessibility of sustainability information. Luxury brands avoided disclosing key transparency information, suggesting that they may be operating in contradiction to that which is inferred on their websites.Originality/valueThe findings of the study shed light on the sustainability credentials of the fashion industry, which has the potential to influence the purchase intentions of consumers, particularly millennials and Generation Z. Implications for practice are developed to highlight how fashion can improve its supply chain transparency.

Simulation studies for methodological research in psychology: A standardized template for planning, preregistration, and reporting.

Simulation studies are widely used for evaluating the performance of statistical methods in psychology. However, the quality of simulation studies can vary widely in terms of their design, execution, and reporting. In order to assess the quality of typical simulation studies in psychology, we reviewed 321 articles published in Psychological Methods, Behavior Research Methods, and Multivariate Behavioral Research in 2021 and 2022, among which 100/321 = 31.2% report a simulation study. We find that many articles do not provide complete and transparent information about key aspects of the study, such as justifications for the number of simulation repetitions, Monte Carlo uncertainty estimates, or code and data to reproduce the simulation studies. To address this problem, we provide a summary of the ADEMP (aims, data-generating mechanism, estimands and other targets, methods, performance measures) design and reporting framework from Morris et al. (2019) adapted to simulation studies in psychology. Based on this framework, we provide ADEMP-PreReg, a step-by-step template for researchers to use when designing, potentially preregistering, and reporting their simulation studies. We give formulae for estimating common performance measures, their Monte Carlo standard errors, and for calculating the number of simulation repetitions to achieve a desired Monte Carlo standard error. Finally, we give a detailed tutorial on how to apply the ADEMP framework in practice using an example simulation study on the evaluation of methods for the analysis of pre-post measurement experiments. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

Conceptual Trends in Internal Audit

The evolution of the economic environment amidst multidimensional changes, i.e. development, globalisation, economic crises, pandemics, stakeholder interest in credible, relevant and transparent information, has led to continuous changes in the framework for doing business. These changes have generated for entities operating in a globalised economic environment business opportunities, significant profits, financial downturns, but also exposure to diverse and complex risks and therefore proactive risk management. From this perspective, internal audit has gradually, over time, become the key actor supporting the entity in achieving its objectives, adding value as well as corporate governance. In this context, the objective of the research is to identify the internal audit trend and related conceptual connotations. The research approach includes a literature review of the Web of Science from Clarivate Analytics. The research involves a systematic analysis on internal auditing, conducted through a quantitative research methodology. The research sample includes 29 articles extracted from the Web of Science Core Collection database, covering the publication period 2005-2024. The sample was established after several stages of keyword filtering. This analysis focuses on identifying author affiliations, content of papers, research methods used, and citations and references to highlight significant trends and changes in the field of internal audit. The results demonstrate a concrete and consistent interest in the field of internal audit, highlighting the identification and analysis of significant trends and changes in internal audit practices and roles over time. In addition, it highlights a trend towards a more holistic approach to internal audit that goes beyond its traditional assurance role and extends to providing strategic advice and support to organisations. The research will thus contribute to the identification of future research directions and to a deeper understanding of the role and importance of internal audit in today's economic environment.

IMPLEMENTATION OF IFRS SUSTAINABILITY DISCLOSURE STANDARDS INTO INTEGRATED REPORTING: A JOURNEY OF FUTURE-ORIENTED COMPANIES

The adoption of the sustainability disclosure standards is a major step forward in improving transparency and comparability of sustainability information, within reporting. This paper aims to analyze the extent to which these standards can be applied in integrated reporting and produce a coherent story about sustainability disclosures. The research uses a documentary and comparative analysis of the International Financial Reporting Standards (IFRS) S1 and S2 with the Integrated Reporting Framework, based on a qualitative approach to analyze the integration between these two standards about integrated reporting principles. The outcomes show that integrating IFRS S1 and S2 will provide an overarching concept for reporting sustainability risks and opportunities which aligns reporting with sustainability goals. Based on these findings, the article argues that incorporating these standards not only improve investor and stakeholder decision-making but also helps companies ensure their strategies are in line with sustainable development objectives. This paper adds to a growing body of literature on the diffusion of sustainability reporting and has implications for researchers examining financial vs. non-financial disclosure as well as managers, regulators and others that care about high-quality financial and non-financial information.

Artificial intelligence adoption and credit ratings*

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cap-and-trade under a dual-channel setting in the presence of information asymmetry

Cap-and-trade, a widely used carbon regulation policy, encourages firms to adopt carbon abatement technologies to reduce emissions. Traditional supply-chain literature on this policy assumes symmetrical information, overlooking the fact that carbon abatement efforts and costs are often private and vary significantly across geographies, industries, and pollutants. In this paper we explore a dual-channel setting involving a manufacturer and a retailer, where the manufacturer, subject to cap-and-trade regulations, has undisclosed information about its carbon abatement costs. Our findings reveal that high abatement costs can paradoxically benefit the manufacturer, the environment, consumers, and overall social welfare. Our result also cautions that a higher carbon trading price (e.g., due to more ambitious emission reduction targets) can disincentivize the manufacturer from investing in carbon abatement. Moreover, a higher production cost, while resulting in lower market output, can increase pollution generation. We contribute the following to the practitioner debate about the impact of carbon policies: for an industry with a large market size, our findings lend support to governments to implement a cap-and-trade policy, because the manufacturer, customers and social welfare can be better off under a cap-and-trade policy than under a tax policy or no carbon policy. Additionally, we suggest that in such industries, governments need not enforce information transparency within the supply chain.

Does board gender diversity improve stock liquidity?

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

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

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

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

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

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

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

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

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

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

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

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

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