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Corporate Governance: Factors Influencing Voluntary Disclosure by Publicly Traded Canadian Firms

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Abstract

This study reports on the comprehensiveness of voluntary corporate governance disclosures in the annual reports and management information circulars of Toronto Stock Exchange (TSE) firms. It focuses on disclosure of the corporate governance practices implemented by the same of TSE 300 firms vis-a-vis the 14 guidelines set out in the TSE's report on corporate governance Where Were the Directors? The analysis indicates that only a very few firms disclose that they have fully implemented the TSE guidelines, and that the extent of disclosure of corporate governance practices implemented varies widely among the firms. It then tests factors associated with the comprehensiveness of such disclosure and the choice of disclosure medium using simultaneous equations multivariate analysis. It also assesses the influence of publicized corporate governance failures on disclosure. Overall, the results suggest that the choices of disclosure medium and the extent of disclosure are made concurrently, and are influenced by the strategic considerations of management.

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... rch as the Control Variable through the reference of research work of Apadore. and Zainol., (2014). While there is heap of research work available in order to illuminate the importance of disclosure of Financial Characteristics of the firm on the Corporate Governance for e.g. Size of the Firm by Ahmed. & Courtis., 1999;Ben-Amar. & Baujenouj., 2007;Bujaki. & McConomy., 2002;Chow & Wong-Boren., 1987;Eng. & Mak., 2003;Gul. & Lang., 2004& Meek., Roberts. & Gray., 1995Leverage by Ben-Amar. & Baujenouj., 2007Bujaki. & McConomy., 2002& Dechow, Hutton. & Sloan., 1996Growth Opportunities by Ben-Amar. & Baujenouj., 2007;End. & Mak., 2003;Hossain., Ahmed. & Godfrey., 2005;Gaver. & Gaver., 1993& Smith. & Watts., 1992a ...
... illuminate the importance of disclosure of Financial Characteristics of the firm on the Corporate Governance for e.g. Size of the Firm by Ahmed. & Courtis., 1999;Ben-Amar. & Baujenouj., 2007;Bujaki. & McConomy., 2002;Chow & Wong-Boren., 1987;Eng. & Mak., 2003;Gul. & Lang., 2004& Meek., Roberts. & Gray., 1995Leverage by Ben-Amar. & Baujenouj., 2007Bujaki. & McConomy., 2002& Dechow, Hutton. & Sloan., 1996Growth Opportunities by Ben-Amar. & Baujenouj., 2007;End. & Mak., 2003;Hossain., Ahmed. & Godfrey., 2005;Gaver. & Gaver., 1993& Smith. & Watts., 1992and Firm's Performance by Ben-Amar. & Baujenouj., 2007Bujaki. & McConomy., 2002& Collet. & Hrasky., 2005Frankel., McNichols. & Wilson., 1995;& Lang. & Lundhol ...
... ;Gul. & Lang., 2004& Meek., Roberts. & Gray., 1995Leverage by Ben-Amar. & Baujenouj., 2007Bujaki. & McConomy., 2002& Dechow, Hutton. & Sloan., 1996Growth Opportunities by Ben-Amar. & Baujenouj., 2007;End. & Mak., 2003;Hossain., Ahmed. & Godfrey., 2005;Gaver. & Gaver., 1993& Smith. & Watts., 1992and Firm's Performance by Ben-Amar. & Baujenouj., 2007Bujaki. & McConomy., 2002& Collet. & Hrasky., 2005Frankel., McNichols. & Wilson., 1995;& Lang. & Lundholm., 1993. Hence after combining all the above mentioned researches we have developed significant and systematic research model for the analysis of various corporate governance practices on the performance of the firm and also upon the reduction of the agency c ...
... On the one hand, it is assumed that larger companies have more extensive resources (e.g., financial and human capital) that enable good and more comprehensive (corporate governance) reporting, despite high procurement costs ( Analogously to large companies, companies with a high level of debt are also more dependent on the capital market and, in line with the signaling theory, have an incentive to reduce information asymmetries for (potential) investors through extensive reporting (Depoers, 2000). Based on this theoretical assumption, the investigations by Scholtz and Smit (2015) as well as Bujaki and McConomy (2002) also provide empirical evidence supporting that the scope of corporate governance reporting increases with the level of indebtedness of the company. ...
... It is argued that -analogous to companies with a high level of debt -companies with low corporate performance are under greater pressure from the capital market. They have a stronger incentive to persuade shareholders and potential investors with good corporate governance reporting and reduce information asymmetries (Bujaki & McConomy, 2002). Moreover, through targeted reporting, executive and supervisory boards can justify low corporate performance; improve the company's reputation and their own reputation (Collett & Hrasky, 2005). ...
... Moreover, through targeted reporting, executive and supervisory boards can justify low corporate performance; improve the company's reputation and their own reputation (Collett & Hrasky, 2005). Bujaki and McConomy (2002) documented this inverse relationship between corporate success and corporate governance reporting. Scholtz and Smit (2015) also assumed a negative link between corporate growth and corporate governance reporting but failed to prove it. ...
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This study examines the factors influencing the quality of corporate governance reporting by listed German companies. Additionally, we analyse the development of corporate governance reporting practices in Germany over a three-year observation period. Using panel data regressions, we analyse the relationship between various corporate characteristics, performance characteristics, and corporate governance characteristics and the quality of corporate governance reporting. We quantify the reporting quality using a scoring model for the largest listed German companies in the period 2016-2018. Our results indicate that the quality of corporate governance reporting has improved steadily in recent years. This trend, however, should not detract from the fact that the quality of corporate governance reporting is dependent on corporate characteristics but not on firm performance, nor corporate governance characteristics. Our empirical findings elucidate these relationships.
... Barucii and Falini, 2005;Gandía, 2008;Mallin and Ow-Yong, 2012) and two in North America (e.g. Bujaki and McConomy, 2002;Khanchel, 2007). ...
... According to the agency theory, the more leveraged firms minimize the monitoring costs by engaging in public disclosures (Jensen and Meckling, 1976;Sharma, 2014, p. 429). For this reason, leveraged firms have higher incentives to disclose more CG information (i.e. in the annual reports, in the CGS etc.) to reduce agency costs (see Bujaki and McConomy, 2002;Gibbins et al., 1992). This means that leveraged firms disclose more information to satisfy the needs of creditors for information (Alsaeed, 2006, p. 481). ...
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Purpose The purpose of this study is to review the prior empirical studies that investigate the corporate governance (CG) determinants and provide a synopsis, and explore the main factors that drive the level of CG disclosure in the Greek context. Design/methodology/approach The authors perform an extensive review of the relevant literature and identify 24 papers that use various potential factors. Afterwards, the authors construct two different GC indices to investigate these potentials, and the authors conduct multiple regression analysis to identify and explain these determinants. Findings The empirical analysis shows that large Greek listed firms are more likely to disclose more CG information in the CG statement. In addition, the analysis shows statistically significant association with performance-related variables (such as Tobin’s Q and liquidity) and CG-related variables (such as independent members, board meetings and women on board). Research limitations/implications The results of the study support theoretical arguments that Greek listed firms disclose CG information not only to fulfill task-related requirements but also to be perceived as social and legitimate. Originality/value To the best of the authors’ knowledge, this is the first study that provides a synopsis of the prior literature in CG determinants, while it goes one step further by using the majority of the potential factors that have been used so far. Moreover, this study uses a multi-theoretical framework to address theoretical development, an approach that generates an outline of fruitful directions for future research.
... Tuy nhiên, theo quan điểm ngược lại, các công ty hoạt động kém cũng sẽ CBTT nhiều để giải thích về thực trạng công ty với cổ đông (Bujaki và McConomy,2002). Trên cơ sở đó, tác giả xây dựng giả thuyết H 4 ...
... 4. Ma trận hệ số tương quan giữa các biến với biến phụ thuộc CBTT ...
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TÓM TẮT Bài báo trình bày nghiên cứu các nhân tố ảnh hưởng đến mức độ CBTT của DNNN ở Việt Nam. Tác giả đã xây dựng và kiểm định các nhân tố ảnh hưởng đến mức độ CBTT của DNNN, bao gồm: Quy mô doanh nghiệp, Đòn bẩy tài chính, Khả năng thanh khoản, Tỷ lệ ROE, Kiểm toán. Nghiên cứu sử dụng mô hình hồi quy bình phương nhỏ nhất, thông qua phần mềm SPSS 20 phân tích dữ liệu nghiên cứu của 152 DNNN. Kết quả cho thấy, Quy mô doanh nghiệp, Kiểm toán có quan hệ thuận chiều với mức độ CBTT; Đòn bẩy tài chính, Khả năng thanh khoản, Tỷ lệ ROE không ảnh hưởng tới mức độ CBTT của DNNN. Trên cơ sở kết quả nghiên cứu, tác giả đưa ra một số khuyến nghị nhằm nâng cao CBTT trong các DNNN ở Việt Nam. Từ khóa: CBTT; DNNN; phương pháp bình phương nhỏ nhất ABSTRACT This article explores factors influencing the level of information disclosure by SOEs in Vietnam. These factors has been developed and tested the level of information disclosure of SOEs including enterprise size, financial leverage, liquidity, the ROE and auditing. This study used the least squares regression model, applying SPSS 20 software to analyze data of 152 SOEs. The research results has indicated that the size of enterprises and auditing are positively correlated with the level of information disclosure; Financial leverage, liquidity, ROE do not affect the level of SOE disclosure. Based on the results of the study, some suggestions were made to improve information disclosure in SOEs in Vietnam.
... Concerning the size of the firm, previous studies demonstrated the effect of this variable on the disclosure policies and, specifically, onthe quality and level of voluntary disclosure (Abdullah et al., 2015;Andrikopoulos et al., 2014;Bhasin et al., 2015;Bujaki & McConomy, 2002;Chow & Wong-Boren, 1987;Cooke, 1991;Depoers, 2000;Eng & Mak, 2003;Frías-Aceituno et al., 2014;Gul & Leung, 2004;Khan, 2010;Meek et al., 1995;Raffournier, 1995;Sharif & Rashid, 2014;Sierra-García et al., 2015). With particular reference to corporate governance disclosure, the existing contributions have concluded that firm size positively affects the amount of information disclosed by companies (Bujaki & McConomy, 2002). ...
... Concerning the size of the firm, previous studies demonstrated the effect of this variable on the disclosure policies and, specifically, onthe quality and level of voluntary disclosure (Abdullah et al., 2015;Andrikopoulos et al., 2014;Bhasin et al., 2015;Bujaki & McConomy, 2002;Chow & Wong-Boren, 1987;Cooke, 1991;Depoers, 2000;Eng & Mak, 2003;Frías-Aceituno et al., 2014;Gul & Leung, 2004;Khan, 2010;Meek et al., 1995;Raffournier, 1995;Sharif & Rashid, 2014;Sierra-García et al., 2015). With particular reference to corporate governance disclosure, the existing contributions have concluded that firm size positively affects the amount of information disclosed by companies (Bujaki & McConomy, 2002). In fact, this type of disclosure has a relevant role for large firms because they present more complex corporate relationships than small firms (Gandía, 2008). ...
Conference Paper
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In recent years, the debate on corporate governance has considerably grown worldwide. In this scenario, corporate governance disclosure is gaining greater attention and the advent of integrated reporting offers a new interesting channel to companies for the dissemination of corporate governance information.This study aims at investigating the factors that can affect the level of corporate governance disclosure included in the integrated reports. Our analysis, conducted on a sample of 85 international companies shows that firm size and profitability positively influence the level of corporate governance disclosure. Moreover, it demonstrates a negative impact of CEO duality on corporate governance disclosure level.
... From an agency theory perspective, to reduce opportunism and agency costs, and at the same time increase effective monitoring, boards should consist of a greater proportion of independent directors (Fama and Jensen, 1983;Shaukat et al., 2016). There are several studies that measure board independence and disclosure (Bujaki and McConomy, 2002;Parsa et al., 2007;Donnelly and Mulcahy, 2008;Persons, 2015;Wan Abdullah et al., 2015). Bujaki and McConomy (2002) find that firms with a majority of unrelated directors are significantly more likely to disclose more. ...
... There are several studies that measure board independence and disclosure (Bujaki and McConomy, 2002;Parsa et al., 2007;Donnelly and Mulcahy, 2008;Persons, 2015;Wan Abdullah et al., 2015). Bujaki and McConomy (2002) find that firms with a majority of unrelated directors are significantly more likely to disclose more. Donnelly and Mulcahy (2008) find that firms with more independent boards engage in greater voluntary disclosure than those with less independent boards. ...
Article
Purpose This paper aims to determine the role governance plays in the voluntary adoption of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Disclosure Standards by Islamic insurance (takaful) operators in the Southeast Asia (SEA) and the Gulf Cooperation Council (GCC) regions. Design/methodology/approach This study uses a sample of 44 takaful operators in the SEA and the GCC regions. While corporate governance (CG) strength is measured by the use of the frequently examined variables of the board of directors and audit committee, Shari’ah governance strength is measured by the characteristics of the Shari’ah Supervisory Board (SSB). Content analysis is used to extract disclosure items from the 2014 annual reports. Agency theory, stakeholder theory and political economy theory are argued to support the hypotheses. Findings The results show that CG strength has a positive and significant effect on the voluntary adoption of AAOIFI Disclosure Standards by takaful operators, indicating that CG plays an important role in the disclosure of information in the annual reports of takaful operators. However, the results show a lack of association between SSB strength and voluntary adoption of AAOIFI Disclosure Standards. Our results suggest that the SSBs may not be as involved as the other CG mechanisms (such as a board of directors and audit committees) in reviewing financial reports. On another note, the level of the political right and civil liberties has a negative and significant effect on the voluntary adoption of AAOIFI Disclosure Standards, providing an indication that stakeholders in a community with greater freedom tend to be more active in pressuring takaful operators to provide more information to justify their existence in the community. Similar to SSB strength, the legal system is also found to have no significant association with the voluntary adoption of the AAOIFI disclosure standards. Practical implications This study provides stakeholders with a tool to evaluate the effectiveness of the governance role in increasing the transparency of takaful operators by examining the governance factors using a self-constructed disclosure index. Originality/value Our study is among the first to provide an in-depth analysis of voluntary adoption of AAOIFI Disclosure Standards for takaful operators in these two regions; therefore, this study has implications for regulators and standard setters. The findings of this study are expected to provide information to regulators and standard setters on the role of governance in improving the transparency of takaful operators.
... However, most of the FLD is dominated by qualitative, nonfinancial, good news and one year forecasts (e.g., Bujaki and McConomy, 2002;Clatworthy and Jones, 2003;Wang and Hussainey, 2013). In this respect, Bujaki and McConomy (2002) found that 19.2% of information included in the Board of Director's and the MD&As for 46 Canadian companies are FLI, where most of the FLI is qualitative and nonfinancial. ...
... However, most of the FLD is dominated by qualitative, nonfinancial, good news and one year forecasts (e.g., Bujaki and McConomy, 2002;Clatworthy and Jones, 2003;Wang and Hussainey, 2013). In this respect, Bujaki and McConomy (2002) found that 19.2% of information included in the Board of Director's and the MD&As for 46 Canadian companies are FLI, where most of the FLI is qualitative and nonfinancial. They also observed that compared to bad news, favorable news constitute about 97.5%. ...
Thesis
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The empirical literature on the determinants of the disclosure of forward looking information (FLD) offers mixed results. This hinders stakeholders’ understanding of the factors affecting companies’ decision to report FLD in the annual report narratives. Nonetheless, FLD is intended to capture prospective performance information. However, the boilerplate, storytelling, bias, and the auditing nature of FLD could impair its value relevance. Therefore, this research aims to identify the main determinants of FLD and its value relevance using an automated content analysis technique for the measure of FLD. The research employs a sample of narrative sections extracted from annual reports of 40 Egyptian listed companies for a nine year time-period (2008 -2016). The final sample comprised 360 observations of annual reports and two empirical regression models are used. FLD is measured by the number of sentences coded as containing both forwardlooking and financial Egyptian keywords. Value relevance of FLD is measured by Tobin’s Q. The study finds that FLD is positively associated with company size, leverage, market risk, and industry type in terms of company characteristics and with auditor type in terms of governance characteristics. However, it is negatively associated with company’s dividend policy and competitiveness level. This result adds to the validity of the FLD measure but suggests the need for more enhancements in the Egyptian governance structure to promote FLD publishing. The study also finds that FLD has market value relevance. This suggests that the disclosure of forward looking financial information should complement financial statements in Egypt. This also implies that managers and regulators should consider more the economic consequences of FLD and act on conveying transparent and prospective information in an understandable and readable format for the stakeholders. This research contributes to the accounting literature related to the using of automated content analysis for investigating the characteristics of narrative disclosure, particularly for an Arabic content using common English software. This research also contributes to value relevance of narrative disclosure in an emerging country; Egypt. The results also enrich agency, signalling, stakeholders, cost of disclosures and dividend theories.
... This is because, effective AC mechanism of a company is involved to protect a legal system, contractual arrangements and operation of different markets along with dealing with different players of company, which is what an investor is looking for the assurance of their return on investment. Bujaki and McConomy (2002) contended that companies that are expected to raise finance from stock market disclose more information about the company's corporate governance structure to build trust among shareholders, which is implemented through AC mechanism. ...
... However, there were sparse numbers of studies found, which were based on the voluntary disclosure practices of corporate governance information. Bujaki and McConomy (2002) considered the voluntary corporate governance disclosure practices of Canadian listed companies. This indicates the Canadian companies consider corporate governance information as an important factor to attract more investors. ...
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Purpose The purpose of this paper is to provide an insight into the voluntary corporate governance disclosure and AC practices among Malaysian property listed companies. Along with that, the influence of AC characteristics on voluntary corporate governance disclosure was also examined. Design/methodology/approach The study used the content analysis of annual reports to extract voluntary corporate governance disclosures and audit committee (AC) practices. The relationship between voluntary corporate governance disclosures and AC characteristics was examined by using the panel data regression analysis. Findings Based on the results of the study, it can be concluded that all three variables: AC size, AC independence and AC meetings are the factors that influence the level of voluntary corporate governance disclosure among sampled companies. Practical implications This study provides an overview of voluntary corporate governance disclosures practices, which have shown an increasing trend of information disclosed by Malaysian listed property companies. Additionally, the AC structure was also found satisfactory with highly independent and higher number of meetings as required by Malaysian Code of Corporate Governance and Bursa Malaysia requirement. Social implications By filling the gap identified in this study, investors’ confidence will boost as they will have sufficient information about the Malaysian listed property companies – resulting in strengthening competitiveness and growth by attracting local and foreign investments in the country. The influence of AC attributes over the quality of disclosure among Malaysian listed properties companies is identified, and regulators introduce more explicit rules for AC mechanism for improving the disclosure quality. The increase in the quality of information provided in the annual reports will lead toward highly efficient and transparent stock market. Originality/value This study has provided an insight into corporate governance of listed companies in Malaysia, which will contribute to the extended literature. Along with that, it will also provide an overview of corporate governance structure among Malaysian listed companies to the policy makers.
... Firm size: The empirical contributions in the literature show how the firm size represents a variable capable of explaining the political choices of disclosure, and specifically the quality and level of information provided voluntarily (Abdullah et al., 2015;Andrikopoulos et al., 2014;Bhasin et al., 2015;Bujaki & McConomy, 2002;Chow & Wong-Boren, 1987;Cooke, 1991;Depoers, 2000;Eng & Mak, 2003;Frías-Aceituno et al., 2014;Gul & Leung, 2004;Khan, 2010;Meek et al., 1995;Raffournier, 1995;Sharif & Rashid, 2014;Sierra-García et al., 2015). Larger companies are more likely to produce information and also incur lower costs due to economies of scale (Ben-Amar & Boujenoui, 2006;Gandia, 2008). ...
... Furthermore, larger companies are subject to greater public pressure and therefore must provide more information (Marrone & Oliva, 2019;2020;Vitolla et al., 2019c). The past contributions in the literature, in relation to corporate governance disclosure, have found a positive effect of the firm size on the amount of information provided by companies (Bujaki & McConomy, 2002). Therefore, in light of this, we introduce the following hypothesis: ...
Conference Paper
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In recent years, the analysis of corporate governance aspects is becoming a central element for understanding corporate dynamics and represents a clear indicator of investor confidence in the decisions taken by the management and board of listed firms. For this reason, corporate governance disclosure is receiving more and more attention from both a professional and academic point of view. The advent of integrated reporting represents a new tool for disclosing information relating to corporate governance. The goal of this study is to investigate the factors that can influence the level of corporate governance disclosure within the integrated reports. The analysis, conducted on a sample of 73 international firms, shows a positive effect of the firm size, firm profitability and audit quality. To our knowledge, this is the first study that analyses corporate governance disclosure level in the integrated reporting context.
... Cooke and Wallace recommend that the entire corporate annual report should be reviewed first to identify whether a particular item is applicable or not, such that penalising a company by assigning a score of a 0 was avoided. This approach has been supported and used by other researchers (e.g., Bujaki & McConomy, 2002;Dawd et al., 2018;Garefalakis et al., 2016). ...
... The resulting scores from my content analysis are stored in an Excel file. It is common in the literature to use additive indices (e.g., Bujaki & McConomy, 2002). Thus, I first added the scores of those sub-information items which corresponded to a particular QC. ...
Thesis
ABSTRACT I have developed a Financial Reporting Quality (FRQ) measurement index within the scope of the 2018 Conceptual Framework for Financial Reporting of the International Accounting Standards Board (IASB), and I used it to measure FRQ of annual reports from Sri Lankan listed companies. My study is motivated by i) the seminal work of Beest, Braam, & Boelens (2009) who used Qualitative Characteristics (QCs) to measure FRQ, ii) the lack of a comprehensive measurement tool from which to quantitatively derive the degree an annual report complies with the postulated (by the IASB) characteristics of decision-useful information, and iii) the different classification interpretations of QCs and the inconclusive results about the perceived importance user groups ascribe to the QCs within decision usefulness theory: useful to whom and useful to make what decisions. A first important realisation is that QCs and FRQ are latent constructs, which immediately suggest that the relationship between QCs and FRQ may be complex, non-linear and hierarchical. The process of developing the FRQ measurement index is then formulated through Research Question (RQ) 1, in which I use three steps. In Step 1, I searched the literature to identify measures for the QCs, and I obtained 54 so-called sub-information items under 17 information dimensions. In Step 2, I surveyed Sri Lankan investment (N=235) and lending (N=214) decision-makers on the usefulness of the identified sub-information items to their particular decision roles, and the respondents validated the selection identified in Step 1. In Step 3, the structural relationships between the 54 sub-information items, the 17 information dimensions, the 6 QCs and FRQ were tested by confirmatory factor analysis using SmartPLS. The factor analysis results revealed that the 54 sub-information items are measures of the 17 information dimensions and that they each factorise statistically satisfactorily with one of the 6 QCs. The 2018 Conceptual Framework postulates a particular 2-group (fundamental and enhancing) classification the 6 QCs belong to. Thus, I tested the postulated classification and formed and tested 2 alternative models of how the 6 QCs affect FRQ. The results revealed that enhancing QCs affect FRQ indirectly through fundamental QCs, as postulated by the Conceptual Framework, but importantly they also make strong and significant direct contributions to FRQ. In particular, understandability has the highest direct contribution to FRQ from all 6 QCs. This finding challenges the IASB 2-group classification. A further utility of the 3 models, which in essence are variants of an FRQ measurement index, is the explicit relative contributions obtained that each of the QCs makes towards FRQ. In supporting the development and validation of the FRQ measurement index, in RQ2, I also investigated several secondary research questions. I surveyed Sri Lankan investing (N=235) and lending (N=214) decision-makers to examine their use of annual reports, their perceived importance of QCs, and their perceived impact of International Financial Reporting Standards (IFRS) on FRQ. My results revealed that on average and ahead of ‘annual reports’, lending decision-makers rate highest ‘the direct communication with clients’, and investment decision-makers rank ‘stock market publications’ as the prime source for investment decisions; within annual reports, both types of decision-makers identified financial statements as the most useful sections and both groups stated that the main factor that restricts the usefulness of annual reports is the delay in publishing annual reports after year-end. When asked directly, both groups challenged the IASB’s current classification of QCs into ‘fundamental’ and ‘enhancing’, and both groups identified understandability as the most important QC, followed by timeliness. Relevance ranked sixth and last, surprisingly. These results complement the findings from RQ1. With respect to the impact of IFRS adoption in Sri Lanka in 2012, both groups believe that FRQ improved compared to the earlier Sri Lanka Accounting Standards (SLAS) reporting regime. In RQ3, I also put in practice the derived FRQ measurement index by assessing the FRQ of annual reports of 53 listed Sri Lankan companies for the years 2010, 2014 and 2018. I find that Sri Lankan companies recorded on average an FRQ of 56% in 2010, rising to 61% in 2014 and to 66% in 2018. These differences are statistically significant, which allows me to conclude that the FRQ of Sri Lankan entities improved after IFRS adoption in 2012 compared to the period before adopting IFRS. This result complements the finding in RQ2. I identified that the total number of pages, the size of the firm as measured by total assets, and her market capitalization all positively correlate with the level of FRQ. Through my work, I have made several useful contributions: I challenge the classification of QCs as fundamental and enhancing, which should also lead to a re-examination of the interpretation various authors of accounting textbooks give to this issue in the corresponding ‘IFRS and Conceptual Framework’ chapters; my results further challenge the widely held assumption that relevance and faithful representation rank supreme in the importance ranking among the 6 QCs; next, I provide numerical equations with which i) users can measure, i.e. calculate, FRQ and the change in FRQ over time, and ii) the IASB can measure to which degree their objective has been achieved of setting standards intended to improve the quality of decision-useful information for investors and lenders. While the processes for the derivation of an FRQ measurement index apply generally, the data have been collected and obtain within the Sri Lankan context. Thus, I invite other researchers to use, test and validate the measurement of FRQ in jurisdictions of their interest.
... Fourthly, prior research is tilted heavily to investigating the determinants of disclosures (Wallace, et al, 1994;Wallace & Naser, 1995;Owusu-Ansah, 1998;Haniffa & Cooke, 2002;Ho & Wong, 2001;Bujaki & McConomy, 2002;Akhtaruddin, 2005;Barako, 2007) relative to assessing the market valuation of such disclosures. The fifth motivation for this study is that market valuation studies in Nigeria focus more on financial statement numbers than on information provided by corporate governance disclosures, creating a gap in literature (Chukwu, 2017;Chukwu, Ugo & Osisioma, 2019;Ebirien, Chukwu & Abiahu, 2019;Chukwu, Ohaka & Nwanaynwu, 2017). ...
... Corporate governance disclosure is one important corporate governance mechanism recommended to reduce agency problems (Bushman & Smith, 2001;Core, 2001;Dye, 2001;Healy & Palepu, 2001;Jensen & Meckling, 1976). Disclosures have increased significantly due to increased uncertainties in the financial system and rising corporate misconduct as well as the fact that firms have realized the benefits of enhanced disclosure (Bujaki & McConomy, 2002). Corporate governance disclosure seeks to reassure the stakeholders that the reporting firm's corporate governance practices are in alignment with international and domestic best practices. ...
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The paper examined how and to what extent market valued the disclosure of corporate governance practices by Nigerian Deposit Money Banks (DMBs). It extracted corporate governance and financial data from the annual reports of DMBs for the period of three years, 2013 to 2015 and constructed corporate governance disclosure index using content analysis method. Drawing from the Ohlson valuation model the paper stipulated an empirical model and ran an ordinary least square regression to test the null hypothesis formulated. The result showed that the market valued corporate governance disclosures of DMBs negatively. Keywords: market valuation, deposit money banks, corporate governance disclosures, content analysis.
... The diversity disclosures of companies on the S&P/TSX60 index (''TSX60 companies") are analyzed as representing public companies with the largest market capitalizations in leading industries in Canada (see Appendix, Panel A for a list of companies on the TSX60 and some key characteristics of their diversity disclosures). These companies are frequently at the forefront in terms of Canadian corporate governance practices and often set the tone for other companies in their disclosures (Bujaki & McConomy, 2002). A random sample of 60 other Non-TSX60 companies is also analyzed to increase the generalizability of the results (see Appendix, Panel B for a list of Non-TSX60 companies analyzed). ...
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The diversity disclosures by Canadian corporations are examined to show how references to ‘merit’ and ‘diversity’ are used strategically by many corporations to support the gendered status quo and to resist pressures to increase the representation of women on boards. References to ‘merit’ and ‘diversity’ in the first mandatory corporate governance diversity disclosures of a sample of corporations from the Toronto Stock Exchange are analyzed using critical discourse analysis to assess the extent to which these disclosures are used to legitimize current board recruitment practices and to maintain the gendered status quo. We find that corporations referring to merit in their disclosures tend to have fewer women directors than corporations that do not mention merit. In addition, we assess the readability of the disclosures. We find that those referring to merit tend to be less readable, suggesting efforts to obfuscate. This research highlights the patriarchal power structures underlying corporate board appointments and shows how these power relationships are revealed in the language corporations choose to use in their diversity disclosures. ‘Gender’, ‘diversity’ and ‘merit’ are socially constructed concepts. Until the gendered roots of the language of merit-based policies are acknowledged, corporations have little incentive to challenge the status quo and engage substantively with diversity. Overcoming corporate resistance to change may require a range of innovative practices by corporations and regulators, up to, and possibly including, mandating levels of women’s representation on corporate boards.
... Ils montrent par là qu'une bonne gouvernance d'entreprise permet de réduire l'asymétrie d'information entre les annonces trimestrielles de résultats. Bujaki et McConomy (2002) intègrent le paramètre de la taille, en montrant que les entreprises de grande taille ne devraient en général pas avoir de difficulté à s'adapter aux exigences de gouvernance comme les petites et moyennes entreprises, celles-ci pouvant dans plusieurs cas adopter des structures de gouvernance qui s'écartent considérablement des exigences cardinales. En conséquence, il est clairement à prévoir que la teneur, l'étendue et la fréquence de la divulgation des grandes entreprises soient plus élevés que celles des entreprises de plus petite taille. ...
... Masalah yang kadang muncul karena perilaku pasar tidak semata-mata melihat pengungkapan GCG sebagai salah satu faktor akan tetapi bisa faktor lain yang mendorong naiknya nilai perusahaan. Dalam penelitian Bujaki dan McConomy (2002) mengungkapkan hubungan antara pengungkapan Corporate Governance dan kinerja perusahaan-perusahaan di Canada. Dengan menggunakan pendapatan sebagai alat ukur kinerja penelitian tersebut mengungkapkan kalau pendapatan perusahaan menurun seriring dengan menurunnya pengungkapan praktek Corporate Governance dan sebaliknya dengan meningkatnya pengungkapan Corporate Governance pendapatan perusahaan cenderung akan meningkat. ...
Article
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Several researches were conducted to explain the financial statement disclosure categorized in to the disclosure research in general and the research examining disclosure of specific aspect, such as the research explaining the effect of Good Corporate Governance (GCG). This research aims to examine the disclosure on specific aspect, voluntary disclousure of GCG in annual report and the relation between the amount of Board of Commissioners and firm value. The population in this research is the manufacturing company registered in Indonesia stock exchange in 2015, in which there are 53 companies as the samples of research. The hypothesis testing was performed with path analysis. The research shows the result that there is significant positive effect in amount variable of Board of Commissioners on the voluntary GCG disclosure and there is no indirect rela tion of Board of Commissioners variable on firm value through voluntary GCG disclosure. PENDAHULUAN Perkembangan lingkungan bisnis yang terus berubah mendorong pertumbuhan bis nis yang ada dan tentunya pertumbuhan tidak lepas dari investasi dari waktu ke waktu untuk mengembangkan usaha. Peran investor dalam mendorong pertumbuhan bisnis menjadi penting di perusahaan yang go public, oleh karena itu penting bagi investor dalam memutuskan di perusahaan mana investasi akan dilakukan dengan mempertimbangkan informasi internal perusahaan dan eksternal perusahaan. Penyajian informasi di pasar menjadi peranan penting bagi perusahaan untuk menarik investor melakukan investasi oleh karena itu pengaturan mekanisme investasi dari waktu ke waktu diperbaharui, termasuk diantaranya kewajiban menyajikan laporan keuangan yang telah diaudit oleh Kantor Akuntan Publik yang independen dan berbagai aturan tentang pengungkapan yang bersi fat wajib maupun sukarela di pasar saham. Berbagai penelitian telah dilakukan untuk menjelaskan pengungkapan laporan keuangan. Penelitian tersebut dapat dikelompokkan menjadi penelitian yang meneliti pengungkapan secara umum (voluntary dan atau mandatory) maupun penelitian yang meneliti pengungkapan di aspek khusus seperti penelitian yang menjelaskan akan dampak pengungkapan laporan keuangan terhadap berbagai perilaku pasar atau kejadian ekonomi, pengungkapan tanggungjawab sosial perusahaan, aspek-aspek keuangan dan lingkungan hidup.
... He stated that corporate governance quality is composed of total 148 elements into five broad sub categories such as ownership structure and investor rights (15 attributes), financial transparency, and information disclosure in the annual report (24 attributes), board, management structure and process (80 attributes), auditing (13 attributes), and corporate responsibility and compliance (16 attributes) considering corporate governance guidelines 2006, regulatory and legal requirement, disclosure practices of listed companies and prior empirical literature. Corporate governance quality is measured by corporate governance score and score 1 for each attributes if the firm comply the requirement of the attributes otherwise score 0 following the prior studies (Cooke, 1989(Cooke, , 1993Williams, 2001;Bujaki & McConomy, 2002;Barako et al., 2006). He stated that any undisclosed attributes scored 0 which avoid the judgment error during coding process and this is considered following the study of Morris et al. (2011). ...
... Bowen et al. (2008) reported that independent directors are more effective in discouraging managers from engaging in earnings management. Bujaki and McConomy (2002) found that firms with more unrelated directors are more likely to disclose corporate governance information. Kesner et al. (1986) found that although independent directors are not involved in illegal acts, adding outside independent directors cannot lessen a firm's illegal acts. ...
Article
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The study of internal corporate governance mechanisms such as board characteristics plays a crucial role in explaining the variations in corporate governance and disclosure practices across firms. The effectiveness of such corporate governance mechanism in maintaining healthy relationship between the management and the shareholders depends significantly on board effectiveness. Two major attributes that affect a board's effectiveness are board size and its composition. Board size refers to the total number of directors who sit on the board of a company, while board composition refers to the type of directors on the board. This paper focuses on this aspect and identifies the relationship between board characteristics, i.e., board size and board composition and corporate governance and disclosure practices of firms listed in the Bombay Stock Exchange (BSE).
... According to the agency theory, the characteristics of the board can affect the quality and the level of financial information disclosed by company. Several recent theoretical and empirical studies examined this issue such as the studies of Jensen (1993), Healy and Palepu (2001), Ho and Wong (2001), Bujaki and McConomy (2002), Clarkson et al. (2003), Barako et al. (2006), andCheung et al. (2010), and Safari et al. (2011). These features concern the following: the size of the board, the presence of independent directors, and dual functions of the chief executive officer and chairman of the board. ...
Article
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In the context of economic globalization, the need for high-quality financial disclosure has become desiderative. The aim of our study is to analyze the effect of a set of financial attributes, firm characteristics, and board of director features on financial disclosure level among companies listed at CAC 40. The sample used in this study consists of the 40 largest companies operating in French (index CAC 40). The findings of our study show that a high level of financial disclosure will show the effectiveness of corporate governance represented by the percentage of outside directors and would tend to face fewer difficulties in accessing capital markets. Equally, financial disclosure level is positively associated with financial attributes, such as firm size and profitability. We find that firms with little stock price volatility and small board size disclose more financial information than other firms.
... Voluntary disclosure used to signal companies responses to changes in the business environment. Besides that, the voluntary disclosure in the annual reports and management information guided shareholders to assess the importance and effectiveness of each firm's corporate governance system (Bujaki & McConomy, 2002;Abdur Rouf, 2011;Lokman, Mula, & Cotter, 2014). In general, disclosure information in corporate annual report comprises of mandatory information and voluntary information. ...
Conference Paper
The research on voluntary disclosure among developed and developing countries has established a number of increasing studies. However, most of the researchers focus on the factors and determinants of voluntary disclosure. Besides, there is little known on the study on voluntary disclosure involving annual general meeting (AGM) minutes among publicly listed companies.
... Prior studies on voluntary disclosure tend to focus on the reporting of financial ratios (Mitchell 2006;Watson et al. 2002) and management earnings forecasts (Ajinkya et al. 2005;Karamanou & Vafeas 2005). Another group of studies examines voluntary disclosure of nonfinancial information, which specifically looks at disclosure of corporate governance information (Bujaki & McConomy 2002;Collett & Hrasky 2005;Lokman et al. 2011); reporting on internal risk management and control systems (Bronson et al. 2006;Deumes & Knechel 2008); employee stock options disclosures (Bassett et al. 2007); environmental and corporate social responsibility reporting (Clarkson et al. 2008;Dhaliwal et al. 2009; ) in annual reports; and a firm's website and separate documents accompanying annual reports, such as sustainability reporting. Research on non-financial information which focus on strategic information has obtaining escalating attention, however, there is limited study that focused on both strategic and forward looking information in annual reports (Liu 2015;Al-Khatib 2014;Hashim et al., 2014;Alves, Rodrigues & Canadas 2012). ...
Article
Strategic and forward looking information (VDSFLI) is important to the stakeholders of the company because it provide strategic plan and future direction of the company. This study aims to examine the relationship between corporate governance mechanisms and VDSFLI. The VDSFLI is measured by using a disclosure index checklist of 36 items. For each item a score is awarded based on the disclosure made by the companies in annual reports. All data is collected from the annual reports of 230 public listed Malaysian companies. The findings of the study revealed that size of audit committee is positively and significantly influence the level of VDSFLI. While the other corporate governance mechanisms are not associated with the level of VDSFLI. The study provides evidence in support of the size of audit committee requirement of Regulatory Framework in Malaysia. This evidence contribute to the argument on the role of audit committee in reducing agency conflict and minimise information asymmetry problem which results in high level of VDSFLI. In addition, the bigger the size of audit committee the better because it would provide positive signal that company has in place an effective governance mechanism as a check and balance which encourage voluntary disclosure practices. It also provide direction to the preparers of the annual report to fully disclose the information voluntarily. This study bridges the gap in the literature of corporate governance by specifically focuses on VDSFLI practices in Malaysia context.
... There are major concerns about agency problem [2] among the CFs too, because usually owners of CFs are not welldefined and the residual claimants are either unable to monitor efficiently or unwilling to do so [3] [4]. Also due to asymmetry information, the public can hardly get access to the internal information of foundations to monitor the CFs. ...
... However, empirical results are mixed. Some studies (Wang et al. 2008; Nandi and Ghosh 2013) find a positive association, whereas other studies (Reverte 2009;Bujaki and McConomy 2002) report an insignificant relationship between firm performance and the extent of risk disclosure. However, studies (Hasan et al. 2008) in the context of Bangladesh find insignificant association between profitability and comprehensiveness of disclosure. ...
Article
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We explore the relationship between the degree of financial risk disclosure and a firm’s financial attributes. Financial risk disclosure indices (FRDIs) are calculated based on a set of 30 disclosure identifiers through content analysis of the annual reports of 48 manufacturing companies over a six-year period (2010–2015) in Bangladesh. We find no common practice among the companies in disclosing financial risk by integrating a customized financial risk disclosure into their financial reporting process. The results indicate that firm size, financial performance, and auditor type are positively and significantly associated with the level of financial risk disclosure.
... It means that independent director has an important contribution in improving managerial quality and decisions [11] because the supervision influences management decisions including in determining the transparency of information that will be carried out by the company. Ben-Amar and Boujenoui [37]; Bujaki and McConomy [38]; Parsa, et al. [39]; and Samaha, et al. [40] find that there is a positive relationship between the independence of the board of director and corporate governance reporting which is one type of information that needs to be disclosed by the company as a form of transparency to stakeholders. Other studies such as Chen and Jaggi [41] did not find that the independence of the board of director will increase the monitoring ability of the board of director, so that the presence of an independent board of commissioners does not affect the company's transparency in implementing the disclosure framework. ...
... Apostolos andKonstantinos (2009), Karim (1996), Samir et al. (2003) and Meek et al. (1995) suggest that profitability of the companies are expected to disclose more information about their performance. Bujaki and McConomy (2002) show that firm facing a slowdown in revenues tends to increase their disclosure of corporate governance practices. Moreover, firms suffering serious corporate governance failures tend to provide extensive disclosure of governance guideline implemented in the period after such failures. ...
Article
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The aim of the study is to examine the factors influences voluntary disclosures of information in the annual reports of listed companies in Dhaka Stock Exchange (DSE) over the period of 2007 to 2011. A sample of 106 non-financial companies listed on DSE was selected by judgemental sampling. The results of the disclosure index indicate that four highest disclosure scorer listed companies in DSE are from the industrial categories of ‘Fuel and Power’ and ‘Pharmaceuticals and Chemicals’ and four lowest disclosure scorer listed companies in DSE are from the industrial category of ‘Food and Allied’. Secondly, the results indicate that the total assets, the percentage of female directors, board leadership structure of a firm are positively associated with the level of voluntary disclosure. The result also indicates that the percentage of equity owned by the insiders of a firm is negatively associated with the level of voluntary disclosures.
... Apostolos andKonstantinos (2009), Karim (1996), Samir et al. (2003) and Meek et al. (1995) suggest that profitability of the companies are expected to disclose more information about their performance. Bujaki and McConomy (2002) show that firm facing a slowdown in revenues tends to increase their disclosure of corporate governance practices. Moreover, firms suffering serious corporate governance failures tend to provide extensive disclosure of governance guideline implemented in the period after such failures. ...
Article
Full-text available
The aim of the study is to examine the factors influences voluntary disclosures of information in the annual reports of listed companies in Dhaka Stock Exchange (DSE) over the period of 2007 to 2011. A sample of 106 non-financial companies listed on DSE was selected by judgemental sampling. The results of the disclosure index indicate that four highest disclosure scorer listed companies in DSE are from the industrial categories of 'Fuel and Power' and 'Pharmaceuticals and Chemicals' and four lowest disclosure scorer listed companies in DSE are from the industrial category of 'Food and Allied'. Secondly, the results indicate that the total assets, the percentage of female directors, board leadership structure of a firm are positively associated with the level of voluntary disclosure. The result also indicates that the percentage of equity owned by the insiders of a firm is negatively associated with the level of voluntary disclosures.
... Prior studies on voluntary disclosure tend to focus on the reporting of financial ratios (Mitchell 2006;Watson et al. 2002) and management earnings forecasts ( Ajinkya et al. 2005;Karamanou & Vafeas 2005). Another group of studies examines voluntary disclosure of non- financial information, which specifically looks at disclosure of corporate governance information (Bujaki & McConomy 2002;Collett & Hrasky 2005;Lokman et al. 2011); reporting on internal risk management and control systems ( Bronson et al. 2006;Deumes & Knechel 2008); employee stock options disclosures ( Bassett et al. 2007); environmental and corporate social responsibility reporting ( Clarkson et al. 2008;Dhaliwal et al. 2009; ) in annual reports; and a firm's website and separate documents accompanying annual reports, such as sustainability reporting. Research on non-financial information which focus on strategic information has obtaining escalating attention, however, there is limited study that focused on both strategic and forward looking information in annual reports ( Liu 2015;AlKhatib 2014;Hashim et al., 2014;Alves, Rodrigues & Canadas 2012). ...
Article
Full-text available
Strategic and forward looking information (VDSFLI) is important to the stakeholders of the company because it provide strategic plan and future direction of the company. This study aims to examine the relationship between corporate governance mechanisms and VDSFLI. The VDSFLI is measured by using a disclosure index checklist of 36 items. For each item a score is awarded based on the disclosure made by the companies in annual reports. All data is collected from the annual reports of 230 public listed Malaysian companies. The findings of the study revealed that size of audit committee is positively and significantly influence the level of VDSFLI. While the other corporate governance mechanisms are not associated with the level of VDSFLI. The study provides evidence in support of the size of audit committee requirement of Regulatory Framework in Malaysia. This evidence contribute to the argument on the role of audit committee in reducing agency conflict and minimise information asymmetry problem which results in high level of VDSFLI. In addition, the bigger the size of audit committee the better because it would provide positive signal that company has in place an effective governance mechanism as a check and balance which encourage voluntary disclosure practices. It also provide direction to the preparers of the annual report to fully disclose the information voluntarily. This study bridges the gap in the literature of corporate governance by specifically focuses on VDSFLI practices in Malaysia context.
... Besides that, most of the voluntary disclosure information can be access through annual reports, corporate websites and management information (Wang, Sewon & Claibrone, 2008;Bujaki & McConomy, 2002). Interestingly, the more excessive information to the public shows that how responsible of the company to its shareholders. ...
Article
Annual general meeting or known as AGM as the place for the management and shareholders to sit together to discuss the company with the objective of profit maximization and to promote organizational accountability. Based on the observation from a period of 2012 to 2017, the disclosure of AGM minutes on the corporate website increase over the year. However, the number is still below 50% in overall Malaysian public listed companies.
... Empirical results from prior research have confirmed that voluntary disclosure reduces information asymmetry (Leuz and Verrecchia, 2000), cost of capital (Botosan, 1997;Botosan and Plumlee, 2002;Brown and Hillegeist, 2007) and increases stock price (Healy, Hutton and Palepu, 1999;Lang and Lundholm, 2000). Also, empirical findings have shown that determinants of voluntary disclosure include firm size (Depoers, 2000;Watson, Shrives and Marston, 2002;Kent and Ung, 2003;Eng and Mak, 2003;Huafang and Jianguo, 2007;Hossain and Hammami, 2009;Oliveira et al., 2011), international diversification (Raffournier, 1995;Depoers, 2000), ownership structure (Chau and Gray, 2002;Eng and Mak, 2003;Huafang and Jianguo, 2007;Wang and Claiborne, 2008), profitability (Watson et al., 2002;Wang and Claiborne, 2008), industry (Watson et al., 2002), board composition and independence of directors (Bujaki and McConomy, 2002;Patelli and Principe, 2007;Huafang and Jianguo, 2007), intention to improve stakeholder engagement (Boesso and Kumar, 2007) and intention to raise new share capital (Collet and Hrasky, 2005). ...
Thesis
The aim of this thesis was to examine the extent to which risk information in the annual reports of banks reflects their future performance. Although research and recommendations have emphasised that risk disclosures should be informative, prior research has not arrived at any firm conclusions on the relevance of risk disclosures on bank performance. In the first paper, this thesis examined the extent of adumbrative risk reporting practice (i.e., vague, partial or circuitous disclosure prior to negative events) by banks. Using institutional theory and upper echelons theory to understand risk reporting practice by banks, an in-depth investigation was conducted on the annual reports of two UK resident banks that performed very differently during and after the global financial crisis. This identified that adumbrative risk reporting was practiced more by the failed bank. Subsequently, the second paper examined the impact of risk reporting systems on bank performance. Using accounting and market based measures, the relationship of voluntary, adumbrative and mandatory risk disclosure practice were separately examined with performance of all UK resident banks during and after the financial crisis. Panel data regression analysis was used. While no relationship was found between adumbration and performance, the results showed that mandatory risk disclosure negatively affects performance while voluntary risk disclosure positively affects performance. The researcher found less disclosure on securitisation activity after the financial crisis. Financial leverage was negatively related to bank performance, while the number of board sub-committees and income diversity were found to be positively related to bank performance. The differences in the risk reporting practices of banks within the same environment led to the quest to examine the variability of risk disclosure practice across banks resident in different cultural environments. Hence, the third paper examined the impact of national cultural dimensions on risk reporting transparency of European banks. Using voluntary disclosure theory and national culture theory as respective guides to understanding risk reporting transparency and national cultural dimensions, a longitudinal analysis was conducted of the risk information provided in annual reports of European banks prior to actual adverse events. These results were compared with uncertainty avoidance, power distance and long term orientation cultural dimensions using weighted least square regression analysis. The results showed that while uncertainty avoidance was negatively related to risk reporting transparency, power distance was positively related to risk reporting transparency. The thesis contributes to risk disclosure research, particularly in the banking industry, by highlighting the need to study (a) adumbrative risk reporting, (b) the potential drawbacks of categorised risk disclosure regulations, and (c) national cultural differences in order to better understand the variability in risk disclosures relating to actual events at banks. This thesis also demonstrates that valuable risk information (related to bank specific circumstances) can be identified using qualitative content analysis which otherwise may be neglected with the use of quantitative content analysis as used in prior studies. With this, several evidence informed recommendations have been developed for better risk disclosure practices.<br/
... Apostolos and Konstantinos (2009); Karim (1996); Samir et al. (2003) and Meek et al.(1995) suggest that profitability of the companies is expected to disclose more information about their performance. Bujaki and McConomy (2002) show that firm facing a slowdown in revenues tends to increase their disclosure of corporate governance practices. Moreover, firms suffering serious corporate governance failures tend to provide extensive disclosure of governance guideline implemented in the period after such failures. ...
Article
Full-text available
Abstract Purpose – This paper aims to examine the factors affecting the voluntary disclosure in the annual reports of listed companies in Bangladesh. Design/methodology/approach – The study is based on a sample of 96 listed non-financial companies in Dhaka Stock Exchanges over the period of 2013 to 2016. The study used partial least squares structural equation modeling tool to analyze data which provides evidence of reliability and validity. It also used an unweighted relative disclosure index for measuring voluntary disclosure. Findings – The empirical results show that corporate governance (board leadership structure and ownership structures) and firms characteristics (total assets and total sales) are significantly positive correlated with the voluntary disclosure. Originality/value – The finding of the study will be a bench mark or the board for policy makers and implementers in torching the avenues of improvement in raising the level of corporate voluntary disclosure in annual reports of listed companies in Bangladesh. Keywords Structural equation modelling, Corporate governance, Voluntary disclosure, Dhaka stock exchanges
... Prior research finds the following in terms of the types of forward-looking information. Bujaki and McConomy (2002) describe the nature of forward-looking information published in the chairmen statements and the MD&A for 46 Canadian companies. They find that 19.2% of information included in the chairmen statements and the MD&A is forward-looking. ...
Thesis
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Forward-looking financial disclosure (FLFD) is potentially uninformative if it does not change from the previous year, especially after a significant change in firm performance. This study uses a sample of UK narrative statements of the annual reports over the period from 2005 to 2011. It employed the automated content analysis technique to measure change in FLFD over years to answer three research questions. First, to what extent does change in firms’ earnings performance drive managers to change FLFD over years? Second, what are the other drivers of the change of FLFD from year to year? Third, do investors use information revealed by the change in FLFD? The study finds a positive association between change in FLFD and change in firm earnings performance. However, it finds weak evidence that firms with larger changes in their earnings performance are likely to change their FLFD more than those with smaller performance changes. In addition, when we distinguish between well-performing and poorly performing firms, it finds that the change in FLFD is more positively associated with poorly performing firms compared to well-performing firms. Furthermore, it finds that change in FLFD is positively (negatively) associated with firm size, (competitive environment), (litigious environment), and (percentage of managerial ownership). In addition, the role of the auditor in overseeing narrative reporting is not appearing for all sample firms or for well-performing firms, however, it is observable only in poorly performing firms. Finally, the study uses firm value three months after the release of the annual report to examine investors’ responses to the changes in FLFD. It finds that the value of a firm decreases as long as it changes its FLFD from the previous year. However, when we distinguish between well and poorly performing firms, it finds that the change in FLFD has no effect on the value of well-performing firms, while, it negatively affects poorly performing firms. The results suggest that FLFD in UK narratives includes some content about firm performance. However, it neither affects the value of well-performing firms nor enhances investors’ valuation of poorly performing firms.
... To examine the CSR disclosure by takaful companies, the content analysis method will be used. Bryman and Bell (2003) define content analysis as a method that involved a process of analysing documents and texts to quantify the content in terms of predetermined categories in a systematic and replicable manner. This method is deemed to be appropriate since most of the previous studies on disclosures by IFIs have adopted this method (Harahap, 2003;Maali, et al., 2006;Haniffa and Hudaib, 2007). ...
... To examine the CSR disclosure by takaful companies, the content analysis method will be used. Bryman and Bell (2003) define content analysis as a method that involved a process of analysing documents and texts to quantify the content in terms of predetermined categories in a systematic and replicable manner. This method is deemed to be appropriate since most of the previous studies on disclosures by IFIs have adopted this method (Harahap, 2003;Maali, et al., 2006;Haniffa and Hudaib, 2007). ...
Conference Paper
Full-text available
Corporate Social Responsibility (CSR) refers to a company's voluntary contribution to sustainable development which goes beyond legal requirements. Currently, companies apply excessive distribution of effort on CSR disclosures. CSR disclosure relates to the provision of information on companies' environmental and social performance. This research aims to identify the CSR disclosure by Islamic insurance (takaful) companies in the Southeast Asia (SEA) and the Gulf Cooperation Council (GCC) regions. This study examines whether there is a difference between the SEA and GCC regions, in relation to the voluntary disclosure of the GSIFI No 7: the Corporate Social Responsibility Conduct and Disclosure for Islamic Financial Institutions. The primary objective for this standard is to ensure that CSR activities and compliance of IFIs are communicated in a truthful, transparent and comprehensible manner to relevant stakeholders. This study uses a sample of 55 takaful companies in the SEA and the GCC regions. Content analysis is used to extract disclosure items from the year 2014 annual reports of takaful companies. The results show that there is a significant difference in the extent of CSR disclosure between takaful companies in the SEA and the GCC region. The findings reveal that takaful companies in the GCC region disclose more compared to the SEA region.
... Apostolos, K. et al., (2009 (1995) suggests that profitability of the companies is expected to disclose more information about their performance. Bujaki and McConomy (2002) show that firm facing a slowdown in revenues tends to increase their disclosure of corporate governance practices. Moreover, firms suffering serious corporate governance failures tend to provide extensive disclosure of governance guideline implemented in the period after such failures. ...
... The internal control and audit system contribute to businesses' success (Tumwebaze et al. 2018). Companies which usually suffer a decline in their financial performance enlarge their publication to embrace a wider spectrum of extra financial information and CG criteria (Bujaki and McConomy 2002). To integrate the effect of such variable in our model, we attempt to measure the above-mentioned components: internal control framework, efficient accounting system, and independent external audit. ...
Article
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This paper aims to empirically examine the link between corporate governance and the financial performance of small and medium enterprises (SMEs) in Lebanon. To this end, we use a questionnaire and collect data from a sample of 150 non-listed companies. The Bundles approach following R. Aguilera et al. (2008 Aguilera, R. , I.Filatotchev, H.Gospel, and G.Jackson . 2008. “An Organizational Approach to Comparative Corporate Governance: Costs, Contingencies, and Complementarities.” Organ. Sci. 19: 475–492.[Crossref], [Web of Science ®] , [Google Scholar]). ‘An Organizational Approach to Comparative Corporate Governance: Costs, Contingencies, and Complementarities.’ Organization Science 19: 475–492.) is used to construct a corporate governance score based on three main components. By applying 2SLS regression to control for endogeneity and a quantile regression, we study the impact of corporate governance (CG) score and each of its components on the financial performance (FP) measured by return on assets (ROA) and return on investment (ROI) while controlling for SMEs age, size, and industry. The study indicates positive interdependency between CG and FP. Effective CG results in increased FP and better performing companies tend to improve their CG). Interestingly, our results show that this relationship depends on the level of SMEs FP These findings provide managers with useful insights and serve as an underpinning for more regulatory efforts aimed at strengthening the CG of SMEs in Lebanon.
... The internal control and audit system contribute to businesses' success [34]. Companies, which usually suffer a decline in their financial performance, enlarge their publication to embrace a wider spectrum of extra financial information and CG criteria [35]. Thus, our second hypothesis is as follows: H2: The credibility of accounting, the external audit and internal control and financial performance are related. ...
Chapter
Full-text available
Opaque markets suffer from asymmetry of information and inaccessibility to financial data. SMEs operating in such markets play an important role and substantially contribute to their economy. Evaluating SMEs financial performance for such markets remains a hard task and hence such sector is completely marginalized. This paper attempts to proxy the financial performance by gathering a bundle of qualitative traits that play a mediating role towards financial performance. We support our study by identifying three specific areas that best describe SMEs internal capabilities and environmental conditions. We measure a score, validate it and use it to proxy SMEs financial performance in Lebanon. We find a positive relationship between the score and return on investment (ROI) and return on assets (ROA), which support our hypotheses.
... For decades, there have been concerns that the tax-exempt status of some charitable organizations may have been used for tax avoidance or abused for other purposes [56,57] because agency problems have always been major concerns about their governance. CFs by legal requirement have no owner of profits, and the residual claimants are either unable to monitor efficiently or unwilling to do so [25,58]. ...
Article
Full-text available
Tax exemption plays an important role in the sustainability of charitable organizations (COs). The 2016 Charity Law of China provides stronger tax incentives for charity donations. Using 767 observations of Chinese charitable foundations (CFs) during 2010–2018 from the China Foundation Center database and manually collected tax-exempt status data, this study applies multivariate logistic regression analysis to examine the association between tax-exempt status and related key factors, such as transparency and donation dependency. This study found that a one-point increase in the transparency score of a CF is associated with a 3.9 percentage points higher likelihood of having at least one type of tax-exempt qualification (OR = 1.039, p < 0.01). There is in general a significantly positive association between tax-exempt status and donation dependency of CFs in China. After 2016, the CFs responded actively to the tax incentive provided by the Charity Law, which in return requires a higher level of transparency. These results suggest that taxation under the legal system may effectively function to promote the sustainability of charity foundations in China in the long run. Further studies are needed to explore in-depth why CFs with advanced tax-exempt qualifications concentrate in Beijing and Shanghai.
... Cerf finds that there is a positive relation between disclosure and number of shares. Prior research (Lang and Lundholm, 1993;Frankel et al., 1995;Bujaki and McConomy, 2002;Collet and Hrasky, 2005) suggests that companies planning to issue new equity during the coming year should increase their disclosure level to reduce information asymmetry with external investors and reduce financing costs. Collett and Hrasky (2005) find a positive association between voluntary disclosure & governance practices and the intention to raise equity capital in Australia. ...
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This paper studies the behaviour of consumers in Bhopal city with respect to online shopping. The variables included are familiarty with online shopping, familiarty with specific websites engaged in e-retailing, purchased products from these websites etc. Data is collected directly by interviewing the respondents according to a self-constructed schedule. Random sampling technique is applied for gathering the data. Data analysis and statistical testing is performed with the help of SPSS 16.0 and MS-Excel 2007 softwares. Results answer the questions like, how consumers are aware of online shopping method?, how they use to purchase?, what online shopping websites are chosen?, what kind of products are purchased? etc.
... The literature largely deals with transparency by scrutinizing specific leading interests in communicating corporate activities, such as trust building (Perotti and Von Thadden, 2005), impacts on dominant investors (Pirson and Malhotra, 2011) or the creation of a candid corporate culture (Serpa, 1985). Meanwhile, corporate transparency is taking on a new meaning of more extensive and proactive disclosure, which goes beyond mandatory corporate details (Bujaki and McConomy, 2002;Li, 2010). ...
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... It is also argued (Wallace and Naser, 1995;Meek, et al., 1995) that well performed companies are expected to disclose more information about their performance. Bujaki and McConomy (2002) show that firm facing a slowdown in revenues tends to increase their disclosure of corporate governance practices. Moreover, firms suffering serious corporate governance failures tend to provide extensive disclosure of governance guideline implemented in the period after such failures. ...
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Contenido: Introducción al modelo de regresión; Estadística elemental: a revisión; El modelo de regresión de dos variables; El modelo de regresión múltiple; Usando el modelo de regresión múltiple; Correlación serial y heterocedasticidad; Variable instrumentales y especificación del modelo; Pronóstico con un modelo de regresión de una sola ecuación; Estimación de una sola ecuación: temas avanzados; Estimación no lineal y de máxima verosimilitud; Modelos de elección cualitativa; Estimación de ecuaciones simultáneas; Introducción a los modelos de simulación; Comportamiento dinámico de los modelos de simulación; Suavizamiento y extrapolación de series de tiempo; Propiedades de las series de tiempo estocásticas; Modelos lineales de series de tiempo; Estimación y pronóstico con modelos de series de tiempo; Aplicaciones de los modelos de series de tiempo.
Article
http://deepblue.lib.umich.edu/bitstream/2027.42/36117/2/b1665777.0001.001.pdf http://deepblue.lib.umich.edu/bitstream/2027.42/36117/1/b1665777.0001.001.txt
Article
This article proposes a theory of corporate transparency and its determinants. We show that under imperfect product market competition, the corporate transparency decision affects the value of equity and debt claims differently. We then embed this insight in a model of endogenous investor influence in which banks may emerge as dominant investors. In line with evidence from continental Europe and Japan, we find that dominant creditors seek to decrease transparency below the level preferred by equity holders. The theory predicts a clustering of firm characteristics that emerge when capital markets are not sufficiently investor friendly to allow arm's-length monitoring: bank dominance, opaqueness, uncertainty about assets in place, low variability of profits, and reduced average profits.
Article
We examine the effect of managerial ownership on the demand for accounting conservatism as measured by the asymmetric timeliness of earnings (Basu, 1997). The separation of ownership and control as reflected by the levels of managerial ownership induce two agency problems between managers and shareholders: the incentive alignment effect and the management entrenchment effect. Since accounting conservatism is expected to mitigate agency problems between managers and shareholders, we predict that these agency problems increase the demand for accounting conservatism. We empirically test the relationship between managerial ownership and the asymmetric timeliness of earnings using a cubic form model for Japanese firms. We find that within the low and high levels of managerial ownership, managerial ownership is significantly negatively related to the asymmetric timeliness of earnings, which is consistent with the implication of the incentive alignment effect. We also find a significant positive relationship between managerial ownership and the asymmetric timeliness of earnings for the intermediate levels of managerial ownership, as suggested by the management entrenchment effect. Our results hold after controlling the market-to-book ratio, leverage, firm size, and year. These evidences support our prediction and suggest the possibility that accounting conservatism contributes to addressing the agency problem between managers and shareholders.
Article
This article proposes a theory of corporate transparency and its determinants. We show that under imperfect product market competition, the corporate transparency decision affects the value of equity and debt claims differently. We then embed this insight in a model of endogenous investor influence in which banks may emerge as dominant investors. In line with evidence from continental Europe and Japan, we find that dominant creditors seek to decrease transparency below the level preferred by equity holders. The theory predicts a clustering of firm characteristics that emerge when capital markets are not sufficiently investor friendly to allow arm's-length monitoring: bank dominance, opaqueness, uncertainty about assets in place, low variability of profits, and reduced average profits.
Article
This paper investigates the impact of international migration on technical efficiency, resource allocation and income from agricultural production of family farming in Albania. The results suggest that migration is used by rural households as a pathway out of agriculture: migration is negatively associated with both labour and non-labour input allocation in agriculture, while no significant differences can be detected in terms of farm technical efficiency or agricultural income. Whether the rapid demographic changes in rural areas triggered by massive migration, possibly combined with propitious land and rural development policies, will ultimately produce the conditions for a more viable, high-return agriculture attracting larger investments remains to be seen.
Article
Using the result that under the null hypothesis of no misspecification an asymptotically efficient estimator must have zero asymptotic covariance with its difference from a consistent but asymptotically inefficient estimator, specification tests are devised for a number of model specifications in econometrics. Local power is calculated for small departures from the null hypothesis. An instrumental variable test as well as tests for a time series cross section model and the simultaneous equation model are presented. An empirical model provides evidence that unobserved individual factors are present which are not orthogonal to the included right-hand-side variable in a common econometric specification of an individual wage equation.
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