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Disclosure Practices (disclosure + practice)
Selected AbstractsA Study of Corporate Disclosure Practice and Effectiveness in Hong KongJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 1 2001Simon S. M. Ho The recent economic turmoil in Asia has led to a wider recognition of the importance of corporate transparency and disclosures in financial dealings. The objective of this study is to provide comprehensive and up-to-date evidence of current practice and perceived effectiveness of corporate disclosure of listed companies in an emerging economy,Hong Kong. The study compares the perceptions of chief financial officers (CFOs) and financial analysts about a variety of information flow, disclosure and capital market efficiency issues. It also seeks to determine whether there is a perceived need for increased financial reporting regulations and to what extent this and other alternative means might improve market functioning. While both subject groups believed that a majority of firms only adopt a conservative one-way disclosure strategy and the existence of a communication gap, analysts perceived a much higher need than CFOs for increased financial reporting regulations. Neither group thought that enhancing disclosure requirements alone would suffice to close this gap. Instead, they suggested an improvement in the quality of the communication and disclosure processes through means such as choosing more appropriate communication media, formulating a more proactive disclosure strategy, enhancing investor relationship, and voluntarily reporting more information desired by users. [source] The Effect of National Governance Codes on Firm Disclosure Practices: Evidence from Analyst Earnings ForecastsCORPORATE GOVERNANCE, Issue 6 2008John Nowland ABSTRACT Manuscript Type: Empirical Research Question: This study examines whether voluntary national governance codes have a significant effect on company disclosure practices. Two direct effects of the codes are expected: 1) an overall improvement in company disclosure practices, which is greater when the codes have a greater emphasis on disclosure; and 2) a leveling out of disclosure practices across companies (i.e., larger improvements in companies that were previously poorer disclosers) due to the codes new comply-or-explain requirements. The codes are also expected to have an indirect effect on disclosure practices through their effect on company governance practices. Research Findings/Results: The results show that the introduction of the codes in eight East Asian countries has been associated with lower analyst forecast error and a leveling out of disclosure practices across companies. The codes are also found to have an indirect effect on company disclosure practices through their effect on board independence. Practical Implications: This study shows that a regulatory approach to improving disclosure practices is not always necessary. Voluntary national governance codes are found to have both a significant direct effect and a significant indirect effect on company disclosure practices. In addition, the results indicate that analysts in Asia do react to changes in disclosure practices, so there is an incentive for small companies and family-owned companies to further improve their disclosure practices. [source] Disclosure Practices, Enforcement of Accounting Standards, and Analysts' Forecast Accuracy: An International StudyJOURNAL OF ACCOUNTING RESEARCH, Issue 2 2003Ole-Kristian Hope Using a sample from 22 countries, I investigate the relations between the accuracy of analysts' earnings forecasts and the level of annual report disclosure, and between forecast accuracy and the degree of enforcement of accounting standards. I document that firm-level disclosures are positively related to forecast accuracy, suggesting that such disclosures provide useful information to analysts. I construct a comprehensive measure of enforcement and find that strong enforcement is associated with higher forecast accuracy. This finding is consistent with the hypothesis that enforcement encourages managers to follow prescribed accounting rules, which, in turn, reduces analysts' uncertainty about future earnings. I also find evidence consistent with disclosures being more important when analyst following is low and with enforcement being more important when more choice among accounting methods is allowed. [source] The Disclosure of UK Boardroom Pay: the March 2001 DTI proposalsCORPORATE GOVERNANCE, Issue 4 2001Martin J. Conyon In March 2001 the government announced that new disclosure rules relating to UK boardroom pay would be introduced. This paper critically evaluates these proposals. The new proposals emerged from the government's Directors Remuneration consultative document issued in July 1999. The current paper makes the following contributions to the governance literature. First, the new disclosure proposals are reviewed. I suggest that they are incomplete both in their detail and scope. I also suggest that the government has conceded that more US style executive compensation disclosure is required. Second, I describe US executive compensation disclosure practices. If convergence in disclosure practice is potentially desirable then a more systematic comparison and analysis of current disclosure policies in the two economies is warranted. [source] An Empirical Analysis of Triple Bottom-Line Reporting and its Determinants: Evidence from the United States and JapanJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2007Li-Chin Jennifer Ho This paper investigates triple bottom-line (TBL) disclosures of 50 of the largest US and Japanese companies. Twenty disclosure criteria were developed for each of the TBL disclosure areas: economic, social, and environmental. Disclosure information was examined in annual reports, stand-alone reports, and special website reports. Regression analysis was used to examine empirically the determinants of TBL disclosure practice. Our results indicate that, for total TBL disclosure (combining economic, social, and environmental categories), the extent of reporting is higher for firms with larger size, lower profitability, lower liquidity, and for firms with membership in the manufacturing industry. Further analysis indicates that the results for the total TBL disclosure are primarily driven by non-economic disclosures. We also find that the extent of overall TBL reporting is higher for Japanese firms, with environmental disclosure being the key driver. This result could be attributed to the differences in national cultures, the regulatory environment, and other institutional factors between the United States and Japan. [source] The Effect of National Governance Codes on Firm Disclosure Practices: Evidence from Analyst Earnings ForecastsCORPORATE GOVERNANCE, Issue 6 2008John Nowland ABSTRACT Manuscript Type: Empirical Research Question: This study examines whether voluntary national governance codes have a significant effect on company disclosure practices. Two direct effects of the codes are expected: 1) an overall improvement in company disclosure practices, which is greater when the codes have a greater emphasis on disclosure; and 2) a leveling out of disclosure practices across companies (i.e., larger improvements in companies that were previously poorer disclosers) due to the codes new comply-or-explain requirements. The codes are also expected to have an indirect effect on disclosure practices through their effect on company governance practices. Research Findings/Results: The results show that the introduction of the codes in eight East Asian countries has been associated with lower analyst forecast error and a leveling out of disclosure practices across companies. The codes are also found to have an indirect effect on company disclosure practices through their effect on board independence. Practical Implications: This study shows that a regulatory approach to improving disclosure practices is not always necessary. Voluntary national governance codes are found to have both a significant direct effect and a significant indirect effect on company disclosure practices. In addition, the results indicate that analysts in Asia do react to changes in disclosure practices, so there is an incentive for small companies and family-owned companies to further improve their disclosure practices. [source] Corporate Governance and Equity Liquidity: analysis of S&P transparency and disclosure rankingsCORPORATE GOVERNANCE, Issue 4 2007Wei-Peng Chen This paper sets out to investigate the effects of disclosure, and other corporate governance mechanisms, on equity liquidity, arguing that those companies adopting poor information transparency and disclosure practices will experience serious information asymmetry. Since poor corporate governance leads to greater information asymmetry, liquidity providers will incur relatively higher adverse information risks and will therefore offer higher information asymmetry components in their effective bid-ask spreads. The Transparency and Disclosure (T&D) rankings of the individual stocks on the S&P 500 index are employed to examine whether firms with greater T&D rankings have lower information asymmetry components and lower stock spreads. Our results reveal that the economic costs of equity liquidity, i.e. the effective spread and the quoted half-spread, are greater for those companies with poor information transparency and disclosure practices. [source] The Disclosure of UK Boardroom Pay: the March 2001 DTI proposalsCORPORATE GOVERNANCE, Issue 4 2001Martin J. Conyon In March 2001 the government announced that new disclosure rules relating to UK boardroom pay would be introduced. This paper critically evaluates these proposals. The new proposals emerged from the government's Directors Remuneration consultative document issued in July 1999. The current paper makes the following contributions to the governance literature. First, the new disclosure proposals are reviewed. I suggest that they are incomplete both in their detail and scope. I also suggest that the government has conceded that more US style executive compensation disclosure is required. Second, I describe US executive compensation disclosure practices. If convergence in disclosure practice is potentially desirable then a more systematic comparison and analysis of current disclosure policies in the two economies is warranted. [source] The integration of corporate governance in corporate social responsibility disclosuresCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 1 2010Ans Kolk Abstract In recent years, not only has attention to corporate governance increased but also the notion has broadened considerably, and started to cover some aspects traditionally seen as being part of corporate social responsibility (CSR). CSR, corporate governance and their interlink seem particularly relevant for multinational enterprises (MNEs), which, due to their activities in multiple contexts around the world and concomitant visibility, generally face higher demands to be transparent and disclose information about such issues. Insights into whether and in which cases disclosures on the two topics actually merge has been very limited, however. This paper analyses to what extent corporate governance has become integrated in MNEs' disclosure practices on CSR. Based on an analysis of CSR reporting of Fortune Global 250 companies, findings show that more than half of them have a separate corporate governance section in their CSR report and/or explicitly link corporate governance and CSR issues. We also found that MNEs that disclose information on a wider variety of social and environmental issues and frame CSR with a focus on internal issues are more inclined to integrate corporate governance into their CSR reporting. This integration seems to be a global phenomenon that cuts across countries and sectors. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment. [source] Do Family Firms Provide More or Less Voluntary Disclosure?JOURNAL OF ACCOUNTING RESEARCH, Issue 3 2008SHUPING CHEN ABSTRACT We examine the voluntary disclosure practices of family firms. We find that, compared to nonfamily firms, family firms provide fewer earnings forecasts and conference calls, but more earnings warnings. Whereas the former is consistent with family owners having a longer investment horizon, better monitoring of management, and lower information asymmetry between owners and managers, the higher likelihood of earnings warnings is consistent with family owners having greater litigation and reputation cost concerns. We also document that family ownership dominates nonfamily insider ownership and concentrated institutional ownership in explaining the likelihood of voluntary disclosure. Using alternative proxies for the founding family's presence in the firm leads to similar results. [source] The Association between Corporate Boards, Audit Committees, and Management Earnings Forecasts: An Empirical AnalysisJOURNAL OF ACCOUNTING RESEARCH, Issue 3 2005IRENE KARAMANOU ABSTRACT We study how corporate boards and audit committees are associated with voluntary financial disclosure practices, proxied here by management earnings forecasts. We find that in firms with more effective board and audit committee structures, managers are more likely to make or update an earnings forecast, and their forecast is less likely to be precise, it is more accurate, and it elicits a more favorable market response. Together, our empirical evidence is broadly consistent with the notion that effective corporate governance is associated with higher financial disclosure quality. [source] Identifying and Attracting the "right" Investors: Evidence on the Behavior of Institutional InvestorsJOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2004Brian Bushee This article summarizes the findings of research the author has conducted over the past seven years that aims to answer a number of questions about institutional investors: Are there significant differences among institutional investors in time horizon and other trading practices that would enable such investors to be classified into types on the basis of their observable behavior? Assuming the answer to the first is yes, do corporate managers respond differently to the pressures created by different types of investors, and, by implication, are certain kinds of investors more desirable from corporate management's point of view? What kinds of companies tend to attract each type of investor, and how does a company's disclosure policy affect that process? The author's approach identifies three categories of institutional investors: (1) "transient" institutions, which exhibit high portfolio turnover and own small stakes in portfolio companies; (2) "dedicated" holders, which provide stable ownership and take large positions in individual firms; and (3) "quasi-indexers," which also trade infrequently but own small stakes (similar to an index strategy). As might be expected, the disproportionate presence of transient institutions in a company's investor base appears to intensify pressure for short-term performance while also resulting in excess volatility in the stock price. Also not surprising, transient investors are attracted to companies with investor relations activities geared toward forward-looking information and "news events," like management earnings forecasts, that constitute trading opportunities for such investors. By contrast, quasi-indexers and dedicated institutions are largely insensitive to shortterm performance and their presence is associated with lower stock price volatility. The research also suggests that companies that focus their disclosure activities on historical information as opposed to earnings forecasts tend to attract quasi-indexers instead of transient investors. In sum, the author's research suggests that changes in disclosure practices have the potential to shift the composition of a firm's investor base away from transient investors and toward more patient capital. By removing some of the external pressures for short-term performance, such a shift could encourage managers to establish a culture based on long-run value maximization. [source] Social and Environmental Disclosure and Corporate Characteristics: A Research Note and ExtensionJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 3-4 2001Rob Gray This paper is concerned with the attempts to explain the disclosure of social and environmental information in the annual reports of large companies by reference to observable characteristics of those companies. An extensive literature has sought to establish whether variables such as corporate size, profit and industry segments can explain corporations' disclosure practices. The results from that predominantly North American and Australasian literature are largely inconclusive. This paper provides an extension of that literature by considering a more disaggregated specification of social and environmental disclosure and by employing a detailed time-series data set. By so doing, the paper tests two possible explanations for the inconclusiveness of prior research: namely that any relationships between corporate characteristics and disclosure are dependent upon the type of disclosure and that any such relationships are not stable through time. The results provide support for these explanations as sufficient, if not necessary, conditions for explaining the inconsistency in prior results. [source] Voluntary Disclosure by State-owned Enterprises Listed on the Stock Exchange of Hong KongJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2002Michael J. Ferguson This study examines the impact of international capital market pressures on the voluntary disclosure of three types of information (strategic, financial, and non-financial) in the annual reports of former wholly state-owned People's Republic of China (PRC) enterprises, listed on the Stock Exchange of Hong Kong (SEHK). Consistent with a costĀbenefit framework, we find that PRC H-Share firms disclose significantly more strategic and financial information than other SEHK firms. Additional analysis of disclosures in their home listings on the PRC exchanges, however, suggests an alternative explanation. The fact that these firms have been selected for "showcasing" in international capital markets may also play a role in our findings. While H-Share firm disclosures in the PRC also appear sensitive to management's assessment of the associated costs, the magnitude of differences across listing locations suggests that disclosure practices on the SEHK may also reflect the effects of state-encouraged disclosure policies. Our findings contribute to the understanding of disclosure behavior among former wholly state-owned enterprises and to the emerging literature on the efficacy of the privatization process. [source] Between spin and reality: examining disclosure practices in three African countriesPUBLIC ADMINISTRATION & DEVELOPMENT, Issue 3 2007George A. LarbiArticle first published online: 28 JUN 200 Abstract The declaration of assets and liabilities represents a growing trend in the avoidance and resolution of conflict of interest and has become a part of an integrated strategy to control corruption. This article reviews practices in Ghana, Tanzania and Uganda by addressing questions of who must declare, what must be declared, where to declare and how often to declare. It argues that like all the other mechanisms for controlling corruption, its efficacy depends on enforcement and compliance. The three cases reviewed suggest that there is a significant gap between the rhetoric of declaration and the reality of effective monitoring and compliance to make the system work to ensure transparency and public trust. Copyright © 2007 John Wiley & Sons, Ltd. [source] Formal Policies and Special Informed Consent Are Associated with Higher Provider Utilization of CDC High-Risk Donor OrgansAMERICAN JOURNAL OF TRANSPLANTATION, Issue 3 2009L. M. Kucirka A new United Network for Organ Sharing (UNOS) policy mandates special informed consent (SIC) before transplanting organs from donors classified by the Public Health Service/Center for Disease Control (PHS/CDC) as high-risk donors (HRDs); however, concerns remain that this policy may cause suboptimal organ utilization. Currently, consent and disclosure policy is determined by individual centers or surgeons; as such, little is known about current practices. The goals of this study were to quantify consent and disclosure practices for HRDs in the United States, identify factors associated with SIC use and analyze associations between SIC use and HRD organ utilization. We surveyed 422 transplant surgeons about their use of HRD organs and their associated consent and disclosure practices. In total, 52.7% of surgeons use SIC, but there is a high variation in use within centers, between centers and by donor behavior. A defined HRD policy at a transplant center is strongly associated with SIC use at that center (OR = 4.68, p < 0.001 by multivariate hierarchical logistic regression). SIC use is associated with higher utilization of HRD livers (OR 3.37), and a trend toward higher utilization of HRD kidneys (OR 1.74) and pancreata (OR 1.28). We believe our findings support a formalized national policy and suggest that this policy will not result in decreased utilization. [source] Voluntary Disclosures as a Mechanism for Defining Entity Status in Australian Not-for-Profit OrganisationsAUSTRALIAN ACCOUNTING REVIEW, Issue 2 2010Lorne Cummings This study examines managerial efforts to portray an entity's not-for-profit (NFP) status based on voluntary disclosure practices. The annual report text of 61 NFPs are analysed in accordance with,Salamon and Anheier's (1997),NFP definitional framework. Results indicate a predominant application of the structural-operational definition. Furthermore, the ,organised' attribute of this definition prevails over the ,non-profit-distributing' criterion that has been advocated by various parties. Standard-setting bodies may want to consider: (1) NFP management perspectives in any revised NFP definition; and (2) greater clarity in conceptual framework and standard-setting arrangements to improve overall transparency in NFP reporting practices. [source] Public Sector Corporate Governance Disclosures: An Examination of Annual Reporting Practices in QueenslandAUSTRALIAN JOURNAL OF PUBLIC ADMINISTRATION, Issue 2 2000Christine Ryan In the public sector, corporate governance is an expression that is yet to be explicitly defined. This paper examines the existing public sector literature in order to derive a set of broad principles of corporate governance in the public sector. These principles are then applied through a content analysis of corporate governance disclosures in a group of government-owned corporations, state government departments, local governments and statutory bodies. The results indicate the set of principles derived is generally applicable to various forms of public entities. However, due to a lack of an established public sector corporate governance framework, the disclosure of corporate governance is piecemeal. Government-owned corporations achieved better disclosure practices in most principles than other public sector bodies. The paper aims to stimulate debate on public sector corporate governance and provides a basis for a more extensive survey on corporate governance disclosures. [source] | |||||||||||||