International Journal of Disclosure and Governance最新文献

This study aims to understand whether corporate governance mechanisms affect innovation capital disclosure (ICD) provided voluntarily on corporate websites by SBF 120 listed firms in France. The study tests multivariate models using pooled OLS, random effects, and generalized method of moments models. Firms use ICD as a useful, timely communication tool to highlight their innovation efforts. Our findings suggest that independent non-executive directors (INEDs) exhibit a conservative approach to the nature of innovation that requires extensive investigations with risky outcomes. They support discretion by limiting the extent of publicly disclosed information about research and development (R&D) progress, technological advances, and innovation output to protect the firms’ intellectual proprietary. INEDs seem to balance preserving firms’ competitive advantage and ensuring higher transparency levels to satisfy stakeholders’ needs. Additionally, board tenure moderates the relationship between INEDs and ICD. This study underscores the importance of the financial reporting of information about innovation capital that captures firms’ innovation capacities in a knowledge-based economy. It provides significant insights for management, policy-makers, and regulators who are involved in refining corporate reporting policies. This study is the first to examine the incentives of INEDs in influencing reporting practices related to a firm’s innovation investments, particularly in high-technology firms.

The aim of this study is to investigate the relationship between carbon performance and third-party assurance of sustainability, as well as the moderating role of board committees. Using data from companies listed in the STOXX Europe 600 index from 2006 to 2021, the study finds that there is a positive relationship between a firm’s GHG reduction initiatives and external assurance of sustainability. Additionally, the study finds that the presence of sustainability committee and governance committee moderate this relationship, suggesting that companies with dedicated sustainability and governance committees may be better equipped to implement and verify their GHG reduction initiatives. The results are consistent and reliable across various econometric techniques. These findings have important implications for firms pursuing to enhance their eco-friendly practices and for policymakers looking to incentivize and regulate sustainability initiatives.

The present study investigates the impact of earnings management on the readability of financial disclosures of distressed Indian firms. It uses a sample of 545 management discussion and analysis sections of the annual report of 208 Indian financially distressed publicly traded firms for the period 2017–2021. Using multiple regression models, the study reveals a significant positive association between earnings management and the complexity of disclosures. This association is strongly moderated by the concentrated ownership of firms. Further, the impact of such moderation varies with the level of financial distress. The result is consistent for both accrual-based and real activity-based earnings management. This has significant implications for regulators, investors and analysts of the Indian stock market.

The present study investigates how earnings management (EM) influences the readability of financial reports (readability) of top Indian firms. This study also examines whether cash holdings, audit quality, and ownership patterns moderate the relationship between EM and readability. To model this relationship, the study employs generalized methods of moments using 2184 management discussion and analysis (MDA) reports from 2017 to 2022. The paper examined earnings management under two different approaches: accrual-based [using Raman and Shahrur (Account Rev 83(4):1041–1081, 2008)] and real activity-based [using Lo et al. (J Account Econ 63:1–25, 2017)]. The study used the Gunning fog index to measure the readability of financial reports and the Smog index for robustness checks. The findings reveal that Indian firms that manage earnings publish complex MDA reports. Additionally, cash holdings, audit quality, and ownership patterns significantly moderate the relationship between EM and readability. Finally, findings show that COVID-19 pandemic has adversely affected the readability of financial reports. This study contributes to the limited number of studies in the global context, focusing on narrative accounting disclosures. On one hand, this study is the first of its kind performed in the Indian context, and on the other side, it contributes to the limited number of the literature in the global context focusing on the linguistic complexity of disclosures and its linkage with other relevant variables, especially ownership pattern, audit quality, and earnings management indicators.

The recent growth in the practice of incorporating environmental, social, and governance (“ESG”) metrics in executive compensation has been strongly encouraged. According to tournament theory, the disparity in compensation between the CEO and other executives fosters a constructive competitive environment among the executive team, potentially enhancing overall company performance. Prior research has shown mixed results between tournament incentives and corporate social responsibility performance in different countries. The current study revisits the relationship between tournament incentives and environmental, social, and governance (“ESG”) performance. Using 1258 firm-year observations in the U.S. from 2014 and 2016, and 421 firm-year observations in 2021, the central takeaway of this research is to provide evidence that a positive association between compensation packages derived from tournament incentives and ESG performance exists. Our research concludes that higher tournament incentives translate to enhanced environmental, social, and governance performance. Researchers and practitioners interested in the importance of incentive compensation design and achievement of ESG goals should be also interested in this study to better inform their future research and incentive package design.

This study investigates whether governance acts as a mediating factor between audit culture, audit quality, and internal control aspects by examining the factors contributing to effective governance. This study uses a quantitative research design; we collect primary data using a structured survey questionnaire. The study was conducted on responses received for 350 respondents and analysed using structural equation models. The results indicate that governance leadership mediates the relationship between audit culture, internal control, and audit quality to some extent. By emphasizing the importance of governance for audit culture and quality, regulators can develop effective policies to promote high-quality audits and financial reporting. Indeed, governance acts as a guiding force in an organization’s culture. Think of it as the compass that sets the direction and promotes transparency, accountability, and ethical behavior, thereby fostering a strong audit culture. Internal control, on the other hand, encompasses the policies, procedures, and practices that protect assets, ensure accurate financial reporting, and comply with regulations. Governance structures provide the framework within which internal control operates, overseeing its functions and establishing mechanisms for accountability and reporting. The results of this research have important practical implications for accounting and audit firms and regulators.

Over recent years, researchers have contributed empirically and conceptually to environmental social and governance (ESG) disclosure research. This study aims to review and conduct a performance analysis with scientific mapping of significant contributors to ESG disclosure research. This review is a domain-based review that employs the bibliometric analysis technique. To holistically and comprehensively analyse past literature on ESG disclosure and address the research objectives, the study merged the data obtained from Scopus and Web of Science (WoS) databases. In doing this, the Preferred Reporting Items for Systematic Reviews and Meta-Analyses protocol was followed. The scientific production shows a traditional overlap between the two databases (Scopus and WoS), as about 28% of the articles were indexed in both databases. Analysis reveals that research on ESG disclosure is gradually evolving. A remarkable growth in publications from 2018 onwards was observed. Initial years of research on ESG disclosure centred around corporate governance and corporate disclosure, which gradually shifted to its impacts on sustainability. The present study identifies authors, institutions, countries, and journals with the highest contributions to ESG disclosure research. This study further highlights the field’s conceptual, intellectual, and social patterns. More importantly, this review suggests the scope for enquiries by future researchers. Few studies report the ESG disclosure phenomena. This study is unique as it analyses literature on ESG disclosure by combining and analysing results from two prominent databases, Scopus and WoS. This study explores key contributions to ESG disclosure research, highlights the knowledge foundation, and suggests scopes for future research. While analysing knowledge structures is significant to ongoing researchers, performance analysis of contributors will guide new researchers.

Abstract

This paper aims, first, to investigate the effect of EPU and institutional ownership characteristics on capital structure decisions and, second, to examine the role of institutional investors characteristics during the periods of uncertainty. Based on a sample of 2100 firm-year observations from the French non-financial companies over the period of 2006–2019, this study uses panel data regressions, two stage least squares and propensity score matching. We find that firms tend to lower their leverage ratios when policy uncertainty increases. Furthermore, we show that capital structure decisions depend on institutional ownership characteristics. Our results, also, indicate that the presence of active investors, such as long-term institutional ownership and institutional common ownership, helps to mitigate the financing frictions in uncertainty periods.

Abstract

This study aims to analyse current trends, patterns, growth barriers, and potential future research of integrated reporting (IR) research. Using VOSviewer and R-package, a bibliometric analysis examined 605 Scopus articles (2011–2021). It identifies influential documents, authors, institutions, and countries based on citations/publications, along with their geographical and network significance. Furthermore, areas with less research attention and potential future research areas are identified. Recent scholarly work has focused on topics such as sustainability communication, IR’s development, quality of disclosure, impact on business performance, and quality assessment using the International Integrated Reporting Council framework. Due to its unique reporting function in organizations, the study provides future research avenues to expand IR research.

Abstract

This interpretative field study examines how public firms deal with cybersecurity-related issues, emphasizing how the three lines of defense can contribute to cybersecurity effectiveness. Sixteen interviews were conducted with 18 participants, including 13 executives/senior managers in internal audit, information technology (IT), and information security (IS) in 13 different public firms. The many cybersecurity structures, processes, or relational mechanisms established by the three lines of defense in the participating organizations are identified. These governance mechanisms are used as a baseline for analyzing how teams in internal audit, IT, IS, cybersecurity, legal, finance, corporate communications, and environmental, social and governance (ESG) are engaged and collaborate in dealing with cybersecurity-related issues. This study entered into the “black box” to document how different organizational functions are involved in IT/IS governance mechanisms associated with cybersecurity. Findings can help board of directors and management reflect on the nature of cybersecurity activities that could be implemented to enhance cybersecurity effectiveness. Regulators may consider the issues raised by participants to clarify regulations about cybersecurity disclosure.