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Author: Seet Meng Chan
Publisher:
ISBN:
Category :
Languages : en
Pages : 185
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Book Description
This study examines the relationship between a firm's financial performance and its voluntary disclosure practices using a mixed methods approach. The quantitative phase investigates the extent to which different aspects of financial performance of Singapore's public-listed companies affect their voluntary disclosure of strategic, non-financial and financial information in annual reports. The qualitative phase utilizes views from annual report users on the relative importance of different types of information, factors beyond performance variables likely to influence voluntary disclosure as well as how tlie quality of corporate reporting can be enhanced to better Abstract serve information needs. The findings reveal that on the whole financial performance does not influence voluntary disclosure witlithe exception of leverage. The influence of leverage was limited to the disclosure of strategic information. Environmental influences peculiar to Singapore may have contributed to these findings. Voluntary disclosure practices in Singapore are also driven by diverse factors such as stakeholder expectations, stage of a business life cycle, management philosophy and industry herd behavior. Although the information needs of these interviewees were largely served by annual report disclosures, current practices fell short of interviewees' expectations in a number of ways, such as the common failure to provide a clear account for a change in financial performance and the lack of precise indications of management's future plans. Suggestions on how to address specific information needs were also highlighted in this study, which aims to provide some insights to regulators, companies and investors on the disclosure phenomenon in Singapore.
Author: Seet Meng Chan
Publisher:
ISBN:
Category :
Languages : en
Pages : 185
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Book Description
This study examines the relationship between a firm's financial performance and its voluntary disclosure practices using a mixed methods approach. The quantitative phase investigates the extent to which different aspects of financial performance of Singapore's public-listed companies affect their voluntary disclosure of strategic, non-financial and financial information in annual reports. The qualitative phase utilizes views from annual report users on the relative importance of different types of information, factors beyond performance variables likely to influence voluntary disclosure as well as how tlie quality of corporate reporting can be enhanced to better Abstract serve information needs. The findings reveal that on the whole financial performance does not influence voluntary disclosure witlithe exception of leverage. The influence of leverage was limited to the disclosure of strategic information. Environmental influences peculiar to Singapore may have contributed to these findings. Voluntary disclosure practices in Singapore are also driven by diverse factors such as stakeholder expectations, stage of a business life cycle, management philosophy and industry herd behavior. Although the information needs of these interviewees were largely served by annual report disclosures, current practices fell short of interviewees' expectations in a number of ways, such as the common failure to provide a clear account for a change in financial performance and the lack of precise indications of management's future plans. Suggestions on how to address specific information needs were also highlighted in this study, which aims to provide some insights to regulators, companies and investors on the disclosure phenomenon in Singapore.
Author: Paul James Coram
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: Linda Smith Bamber
Publisher:
ISBN:
Category :
Languages : en
Pages : 58
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Book Description
Prior research in finance and accounting generally posits a limited role for idiosyncratic manager-specific attributes in explaining accounting and disclosure choices. In contrast, upper echelons theory, originating in the strategic management literature, suggests that differences among individuals can affect corporate outcomes. Extant research in voluntary disclosure follows the traditional financial economics perspective, yet even the most comprehensive empirical models leave most of the cross-sectional variation in disclosure unexplained. This prompts us to investigate whether these models are missing a major component: Do idiosyncratic differences among individual managers play a significant incremental role in voluntary corporate financial disclosure? We build a data set that tracks managers over time, which allows us to isolate manager-specific fixed effects after controlling for firm effects. We find that top executives do exhibit unique individual-specific and economically significant disclosure styles. That is, our evidence suggests that individual managers significantly influence attributes of their firms' voluntary disclosures, even after controlling for techno-economic determinants of disclosure identified in prior research, and firm- and time-specific effects. The collective magnitude of these manager-specific fixed effects is large: Manager-specific effects explain roughly as much or more of the variation in disclosure as the known techno-economic determinants combined. We then investigate whether managers' unique fixed effects are associated with observable characteristics of their own personal backgrounds. We find that managers promoted from finance, accounting, and legal career tracks, managers born before World War II, and managers holding MBAs tend to exhibit more conservative disclosure styles. These associations between our estimates of managers' fixed effects and distinctive (permanent) characteristics of their own personal backgrounds provide evidence confirming that our estimated manager fixed effects capture systematic long-lived differences in managers' unique disclosure styles. Our results suggest that individual-specific effects play an important - yet heretofore largely unexplored - role in voluntary financial disclosure. Further investigation of the role unique individual characteristics play in explaining corporate financial reporting is potentially a fruitful direction for future research.
Author: Miles B. Gietzmann
Publisher:
ISBN:
Category :
Languages : en
Pages : 29
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Book Description
In this research we consider how disclosure of accounting policy interacts with subsequent choice over voluntary disclosure of a non-financial performance metric. We compare and contrast regimes. In the first, firms are free to choose between a conservative or an aggressive accounting policy before they decide whether to make additional voluntary disclosures. In the other regime, all firms either voluntarily or via mandation use the same accounting policy. We then investigate the cost of capital for firms under the two regimes. We show that communication via voluntary disclosure need not be a simple substitute for communication via accounting policy choice.Key Words: Voluntary disclosure; Accounting policy choice; Cost of capital.
Author: Paul James Coram
Publisher:
ISBN:
Category : Disclosure in accounting
Languages : en
Pages : 358
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Book Description
Author: Khondkar Karim
Publisher: Bloomsbury Publishing USA
ISBN: 0313053588
Category : Business & Economics
Languages : en
Pages : 146
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Book Description
Understanding environmental liability and disclosure is critical for firm management, investors, accountants and auditors. The U.S. Congress has been increasing the pressure on companies to disclose information on environmental liabilities for years. This study delves into the issue by examining the impact of environmental disclosure on financial performance. These insightful essays provide guidance by supplying the most current and concise research available on this important topic. Covering such topics as legislation, liability, and regulations, this work analyzes how environmental disclosure influences the financial statements and public accountability of companies, and ultimately drives organizational change. This book builds the framework necessary to comprehend the complexities of quantifying environmental liabilities and make well-informed decisions.
Author: Antonio Chirico
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659442803
Category :
Languages : en
Pages : 172
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Book Description
The objective of our work is to examine the relationship between the level of forward-looking disclosure and firm characteristics (structured-related variables, performance-related variables, and market-related variables)for the period 2008-2010. The results show that firm size and audit firm size were significantly (in all the three years) with the level of forward-looking disclosure. Firm age was also significantly only in the year 2008 and with insignificant in years 2009 and 2010. While, profitability (measured by earning per share) and liquidity ratio were significantly in the years 2009 and 2010, and insignificantly only in the year 2008 with the level of forward-looking disclosure. However, leverage, ownership dispersion, profitability (measured by return equity ratio) and industry type variables were found insignificantly associated with the level of forward-looking information disclosed in the annual reports for all the three years.
Author: Andreas Zweifel
Publisher: GRIN Verlag
ISBN: 3668410623
Category : Business & Economics
Languages : en
Pages : 100
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Book Description
Master's Thesis from the year 2012 in the subject Economics - Finance, grade: 5.5, University of Zurich (Department of Banking and Finance), course: Economics and Finance, language: English, abstract: Does voluntary disclosure quality pay off? And if so, what are the driving forces behind the relationship of voluntary disclosure quality and the cost of equity capital? This study addresses these and other questions in the context of analyzing the determinants of the cost of equity capital for Swiss firms. The relation between voluntary disclosure quality and cost of equity capital is widely known to be affected by self-selection. Potential endogeneity bias is controlled for by adopting a two-stage least squares approach in a cross-sectional setting. Voluntary disclosure quality is proxied by the annual reports disclosure scores for a well-diversified sample of Swiss firms as developed by the Department of Banking and Finance of the University of Zurich. Further, an ex-ante cost of capital metric derived from the dividend discount model is used in this study. Empirical evidence shows that the association between voluntary disclosure quality and cost of equity differs with a firm's stock listing history. While the relation is predicted to be negative for firms at the IPO stage, it is likely reversed at some point in a firm's stock listing history. These results suggest that analysts' information processing activities negatively moderate the impact of voluntary disclosure quality on firm value. Importantly, the predicted interaction between voluntary disclosure quality and stock listing history remains significant when adjusting for endogeneity.
Author:
Publisher:
ISBN:
Category : Corporate governance
Languages : en
Pages : 86
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Book Description
Author: Zabihollah Rezaee
Publisher: Routledge
ISBN: 1351284266
Category : Business & Economics
Languages : en
Pages : 257
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Book Description
Business sustainability has advanced from greenwashing and branding to being a business imperative. Stakeholders, including shareholders, demand, regulators require, and companies now need to report their sustainability performance. No longer is this a choice for businesses. A decade ago, fewer than 50 companies released sustainability reports, and now more 8,000 global public companies disclose sustainability performance information on some or all five economic, governance, social, ethical, and environmental (EGSEE) dimensions of sustainability performance, and this trend is expected to continue. Indeed, more than 6,000 European public companies would be required to disclose their environmental, social, governance and diversity information for their 2017 reporting year. However, the proper determination of sustainability performance, accurate and reliable reporting and independent assurance of sustainability information remain major challenges for organizations of all types and sizes. Through reading this book, you will: Identify sustainability strategies to create innovation in new products, services, energy-efficiency, environmental facilities and green initiatives. Understand the role and responsibilities of all participants in the corporate reporting process, including directors, officers, internal auditors, external auditors, legal counsel, and investors. See ways to improve public trust, investor confidence, business reputation, employee satisfaction, corporate culture, social responsibility and environmental performance. Learn all five economic, governance, social, ethical and environmental (EGSEE) dimensions of sustainability performance separately and their integrated and interactive effects on achieving the goal of creating sustainable value for all stakeholders, including shareholders. Learn how to adopt best practices in sustainability development and performance, and deliver effective integrated sustainability reporting and assurance.
