Exploring the Effects of Corporate Governance on Intellectual Capital Disclosure: An Analysis of European Biotechnology Companies

Cerbioni, Fabrizio; Parbonetti, Antonio

doi:10.1080/09638180701707011

Cited by 374 publications

(533 citation statements)

References 96 publications

(119 reference statements)

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“…In contrast [10] posit that high growth firm use voluntary disclosure as a viable means for bridging a potential information gap due to higher information asymmetry between managers and investors. Therefore it is expected in this study that managers may tend to disclose more segment information in order to mitigate information asymmetry.…”

Section: H3: There Is Association Between Diffusion Of Ownership and mentioning

confidence: 99%

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Firm Characteristics and Voluntary Segments Disclosure among the Largest Firms in Nigeria

Ibrahim¹

2014

IJTEF

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Abstract-The aim of this study is to gain more insights in the disclosure practices among the largest public listed companies in Nigeria, by examining the associations between firm characteristics and the extent of voluntary segments disclosure on IFRS 8 Operating Segments by using a sample of 76 companies. The results document that firm size and industry type have positive association with voluntary segments disclosure. In addition, negative association is observed between firm listing age, growth, return on investment, ownership diffusion and voluntary segments disclosure.Index Terms-Firm characteristics, IFRS 8, voluntary disclosure. I. INTRODUCTIONAnnouncement for the requirement to adopt IFRS in Nigeria was released in September 2010. This is a decision made by the federal executive council of Nigeria in an effort to establish nationwide commitment toward its convergence policy with International Financial Reporting Standards (IFRS) as a basis for financial reporting in Nigeria, effective for fiscal periods beginning after December 31, 2011. The transition process began in 2012 and scheduled to be completed by 2014. Therefore all Nigerian public listed companies are mandated to comply with the provision of IFRS by year 2014. Prior to 2012 Nigerian companies are reporting based on national standards, Statement of Accounting Standards (SAS) issued by Nigerian Accounting Standards Board (NASB) now Financial Reporting Council of Nigeria (FRCN). However, convergence to IFRS in Nigeria indicates that financial institutions that were mandated to adopt IFRS in 2010 faced many difficulties in the convergence process. Reference [1] argued that financial reporting in the pre-IFRS period remained weak compare to advanced jurisdictions, [2] as a result of many inadequacies such as lack of effectiveness and inefficiency in the capital market. Reference [3] study corporate governance attributes towards voluntary segments disclosure in Nigeria and found no association between such mechanisms except in separation of board leadership. It is claimed that implementing of IFRS in Nigeria will face challenges such as the development of legal and regulatory framework [4]. This is despite the fact that accounting principles require authoritative support as well as enforcement measures towards its application in order to meet it's objectives. The objective of preparation and disseminating financial Manuscript received March 18, 2014; revised May 30, 2014. Kabir Ibrahim is with the Department of Accounting, Federal Polytechnic Bali, Nigeria (e-mail: kabirne3@gmail.com).information is to provide users of such information with relevant and reliable information in making investment decision. Therefore voluntary disclosure is an interesting topic particularly on segment disclosures for investors and other users as there remain unanswered questions regarding what motivates or influences managers to disclose information.The objective of this study is to examine empirically the relationship between various firm characteristics and the leve...

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Section: H3: There Is Association Between Diffusion Of Ownership and mentioning

confidence: 99%

“…Age of the company has been identified in previous studies as an attribute having impact on the quality of accounting practice. However company age has been often seen as a proxy for risk [10]. Therefore the extent of firm's voluntary disclosure can be related to how many years it has been in operation [11].…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Firm Characteristics and Voluntary Segments Disclosure among the Largest Firms in Nigeria

Ibrahim¹

2014

IJTEF

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“…The financial reporting outcomes examined include disclosure (Beekes and Brown, 2006;Cerbioni and Parbonetti, 2007;Kent and Stewart, 2008), conservatism (Ahmed and Duellman, 2007;Kim et al, 2003), manipulation of research and development expenditure (Osma, 2008), earnings management (Bedard et al, 2004;Nelson et al, 2003;Peasnell et al, 2005;Xie et al, 2003), and fraud and financial restatements (Abbott et al, 2004;Sharma, 2004 (2001) finds that audit committees appear to be more effective in reducing the size of restructuring and other discretionary charges when the audit committee has at least one member who has accounting or related financial expertise. Nelson et al (2003) report results suggesting that auditors are less likely to waive earnings management attempts that increase current-year income, and more likely to waive attempts they view as immaterial.…”

Section: Related Research and Hypothesesmentioning

confidence: 99%

The role of corporate governance in accounting discretion under IFRS: Goodwill impairment in Australia

Kabir

Rahman

2016

Journal of Contemporary Accounting & Economics

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A major concern with the adoption of International Financial Reporting Standards (IFRS) is the accounting discretion allowed under the IFRS, and its potential opportunistic use by managers. We examine the role of corporate governance in the accounting discretion inherent in goodwill impairment decisions under the IFRS. More specifically, we investigate whether, in Australia, stronger governance strengthens associations between economic factors and goodwill impairment loss but weakens associations between contracting incentives and goodwill impairment loss. Using data from 2007 to 2012, we find evidence consistent with the notion that stronger governance enhances the associations between economic factors and goodwill impairment loss. However, we find that strong governance cannot completely eliminate the opportunistic use of discretion in an impairment decision, especially when pre-impairment income is negative, and when the impairment occurs in the first year of a CEO's tenure. Our results are robust with regards to alternative measures of the dependent variable, firm performance variables, and the governance variable, even after controlling for potential self-selection biases.JEL Classification: G34, M41

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“…Prior studies (Hackston and Milne, 1996;Cerbioni and Parbonetti, 2007) posit that voluntary disclosure is a multidimensional and complex concept and suggest relying on the content of disclosure as a proxy for its quality. Therefore, we developed our own index based on the content of intangibles disclosure (CONT_IN DISC), i.e.…”

Section: Data and Sample Selectionmentioning

confidence: 99%

Voluntary disclosure of intangibles and analysts’ earnings forecasts and recommendations

Maaloul

Ben‐Amar

Zéghal

2016

JAAR

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Purpose -The purpose of this paper is to investigate the relationship between voluntary disclosure of intangibles and financial analysts' earnings forecasts properties. Design/methodology/approach -Disclosures about intangible assets were hand-collected through content analysis of annual reports of a sample of US non-financial firms, while analysts' earnings forecasts properties were collected from Bloomberg Professional database. The authors relied on correlation and multivariate regression analyses to test the research hypotheses. Findings -The results show that increased intangible disclosures affect analysts' earnings forecasts accuracy, dispersion, and favourable consensus recommendations. However, this effect varies according to the nature of intangible assets. Practical implications -The results may be of interest to different market participants such as corporate managers, financial analysts, and standards setting bodies that recently published guidelines on voluntary disclosure of intangibles. Originality/value -This study develops a new comprehensive index to measure the content of narrative disclosures about a large number of intangibles, such as human, structural, and relational assets. The findings contribute to the current debate on the value-relevance of narrative disclosures on intangibles to investors and financial analysts.

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Exploring the Effects of Corporate Governance on Intellectual Capital Disclosure: An Analysis of European Biotechnology Companies

Cited by 374 publications

References 96 publications

Firm Characteristics and Voluntary Segments Disclosure among the Largest Firms in Nigeria

Firm Characteristics and Voluntary Segments Disclosure among the Largest Firms in Nigeria

The role of corporate governance in accounting discretion under IFRS: Goodwill impairment in Australia

Voluntary disclosure of intangibles and analysts’ earnings forecasts and recommendations

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