Measuring the Consistency of Quantitative and Qualitative Information in Financial Reports: A Design Science Approach

Chou, Chi–Chun; Chang, C. Janie; Chin, Chen‐Lung; Chiang, Wei-Ta

doi:10.2308/jeta-52312

Cited by 16 publications

(7 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The measures were adapted from previous studies to ensure the constructs have content validity. The items of environmental regulation, competitor pressure, market pressure, expected business benefits, and organizational resources were adapted from Yusof et al (2016), Oliveira et al (2014), Lin and Ho (2010), Zailani et al (2015), and Chou et al (2018) respectively. The items of CDM implementation were adapted from Zainuddin et al (2017).…”

Section: Methodsmentioning

confidence: 99%

Clean development mechanism implementation: External and organizational factors drives expected business benefits

et al. 2021

View full text Add to dashboard Cite

This study aims to deal with the challenge of rationalizing and testing the interrelationships assumptions of external and organizational factors in the case of clean development mechanism implementation. Prior studies are lacking to introduce the expected business benefits as a mediator between external factors and clean development mechanism implementation. The moderating effect of environmental resources was rationalized and evaluated. The data were collected from 130 ISO 14001 certified manufacturing firms and analyzed using the partial least squares technique. The results revealed that expected business benefits mediate the impacts of all considered external factors and cause an insignificant direct association between market pressure and mechanism implementation. Organizational resources moderate positively the impact of competitor pressure on mechanism implementation. The findings extend the literature by illustrating the dependency of external factors and organizational factors and challenging the results of the studies, which have been driven by independence assumption. The findings are enabling policy‐makers and managers to effectively modify the strategies for enhancing the extent of mechanism implementation.

show abstract

Section: Methodsmentioning

confidence: 99%

Clean development mechanism implementation: External and organizational factors drives expected business benefits

et al. 2021

View full text Add to dashboard Cite

show abstract

“…Corporate disclosure accommodates both quantitative or numerical and quantitative or unstructured information. Quantitative information from financial statements has the importance of remarkably predicting stock market performance (Chou et al , 2018). However, this alone is not sufficient to predict the stock market performance more precisely (Shirata et al , 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of analyst report on the behavior of retail investors: a study during COVID-19 in India

Chakraborty

Chatterjee

Bhattacharjee

2022

JFRA

View full text Add to dashboard Cite

Purpose One of the adverse effects of COVID-19 is on poor economic and financial performance. Such economic underperformance, less demand from the consumer side and supply chain disruption is leading to stock market volatility. In such a backdrop, this paper aims to find the impact of COVID-19 on the Indian stock market by analyzing the analyst’s report. Design/methodology/approach The sample includes a cross-sectional data set on selected Indian firms that are indexed in BSE 100. The authors calculate the score of disclosure tone by using a textual analysis tool based on the analyst report of selected BSE 100 firms' approach in tackling COVID-19’s impact. The relationship between the tone of the analyst report and stock market performance is examined. This empirical model also survives robustness analysis to establish the consistency of the findings. This study uses both frequentist statistics and Bayesian statistics approach. Findings The empirical result shows that tone has negative and significant influence on stock market performance. This study indicates that either analysts are not providing value-relevant and incremental information, which can reduce the stock market volatility during this pandemic situation or investors are not able to recognize the optimism of the information. Practical implications This study provides an interesting insight regarding retail investors' stock purchasing behavior during the crisis period. Hence, this study also lays out crucial managerial implications that can be followed by preparers while preparing corporate disclosure. Originality/value In the concern on pandemic and its impact on the stock market, this study sheds light on investors' preferences during the crisis period. This study uniquely focuses on analyst reports and investors' preference which has not been studied widely. To the best of the authors’ knowledge, this is the first study in the Indian context, which aims to understand retail investors’ investment preferences during a pandemic.

show abstract

“…A simple keyword search revealed around 9591 articles published on Elsevier Scopus (Elsevier 2022) before 2020 connected to the issue of corporate bankruptcy prediction. The analysis of qualitative text data offers a new optimization approach for existing models that appears quite promising (Chou et al 2018;Loughran and McDonald 2016;Luo and Zhou 2020). The fact that German companies are required by §289 of the German Commercial Code (HGB 2021) to present their current and prospective situation about opportunities, risks, research, and development further confirms the interest in research in this area.…”

Section: Introductionmentioning

confidence: 98%

Evidential Strategies in Financial Statement Analysis: A Corpus Linguistic Text Mining Approach to Bankruptcy Prediction

Nießner

Gross

Schümann

2022

JRFM

View full text Add to dashboard Cite

The qualitative information of companies' financial statements provides useful information that can increase the accuracy of bankruptcy prediction models. In this research, a dataset of 924,903 financial statements from 355,704 German companies classified into solvent, financially distressed, and bankrupt companies using the Amadeus database from Bureau van Dijk was examined. The results provide empirical evidence that a corpus linguistic approach implementing evidential strategy analysis towards financial statements helps to distinguish between companies' financial situations. They show that companies use different approaches and confidence assessments when evaluating their financial statements based on solvency and vary their use of evidential strategies accordingly. This leads to the proposition of a procedure to quantify and generate features based on the analysis of evidential strategies that can be used to improve corporate bankruptcy prediction. The results presented here stem from an interdisciplinary adaptation of linguistic findings and provide future research with another means of analysis in the area of text mining.

show abstract

Measuring the Consistency of Quantitative and Qualitative Information in Financial Reports: A Design Science Approach

Cited by 16 publications

References 36 publications

Clean development mechanism implementation: External and organizational factors drives expected business benefits

Clean development mechanism implementation: External and organizational factors drives expected business benefits

Impact of analyst report on the behavior of retail investors: a study during COVID-19 in India

Evidential Strategies in Financial Statement Analysis: A Corpus Linguistic Text Mining Approach to Bankruptcy Prediction

Contact Info

Product

Resources

About