The impact of water information disclosure on the cost of capital: An empirical study of China's capital market

Shibly

2020

JFRA

Purpose The purpose of this study is to investigate the voluntary disclosure of accounting ratios in the corporate annual reports of manufacturing firms in the Gulf Cooperation Council (GCC) and determines whether an association exists between voluntary disclosure and firm-specific characteristics namely, size, profitability, leverage, liquidity and efficiency. Design/methodology/approach A sample of 53 GCC listed manufacturing firms and 263 firm-year observations were observed over the period 2011 to 2015. A count data regression (Poisson) with incident rate ratios was used to identify the relationship between firms’ voluntary disclosures of accounting ratios and other firm-specific characteristics. Findings During the period under review, the voluntary disclosure of accounting ratios provided in annual reports of GCC firms were found to be exceedingly low. On average, a GCC company discloses at most two accounting ratios in its annual reports. The results also show that the profitability ratios are the most popularly reported ones. Controlling for family board domination, the results also reveal that structure-related variables (firm size and leverage) are positively associated with accounting ratio disclosures. However, performance-related variables (profitability, liquidity and efficiency) have no significant effect on disclosures. The authors conclude that signaling theory as implied in the performance-related variables is not strongly supported in the GCC region. Originality/value This is the first known study to investigate the disclosure of accounting ratios and its determinants within the context of GCC. The findings of this study could be beneficial to both agents and principals in assessing the associated risks. The study provides regulators and market participants an understanding of the corporate reporting activities of manufacturing firms in the GCC and who accordingly will be able to consider associated policy implementation.

Section: Introductionmentioning

confidence: 99%

Voluntary disclosure of accounting ratios and firm-specific characteristics: the case of GCC

Shibly

2020

JFRA

“…Water information disclosure is the core dependent variable. We used the “water information disclosure index” scale (see Appendix) as described in Zeng et al (2018) and Zhou et al (2018) to comprehensively reflect the water information disclosure of the listed companies. The scale consists of a qualitative index (15) and a quantitative index (12) for a total of 27 indicators.…”

Section: Methodsmentioning

confidence: 99%

Help or resistance? Product market competition and water information disclosure: evidence from China

Zhou

Tao

Chen

et al. 2019

SAMPJ

Self Cite

Purpose This paper investigates the relationship between product market competition and firms’ water information disclosure and how firms’ ownership type can affect this relationship in China, offering new insights into corporate water management. Design/methodology/approach The authors investigated 303 Chinese listed companies in highly water-sensitive industries to examine how product market competition influences corporate water information disclosure by subdividing the product market competition into market competition at the firm level and the industry competition intensity at the industry level. Findings The results show that there exists an inverted U-shaped relationship between industry competition and water information disclosure; enterprises with the highest market power in a mildly competitive industry are more willing to voluntarily disclose water information and play an industry benchmarking role. Further tests demonstrate that the relationship between industry competition intensity and water information disclosure is stronger for state-owned enterprises than for private enterprises. Research limitations/implications The current water resources regulations in China are relatively lax and the water risk awareness of firms is weak, which may affect the applicability of the results. In addition, water information disclosure research is a relatively new field and a quantitative index system for water information disclosure is still in the exploratory stage. Further developments, including the selection, definition and measuring methods of a water index are required. Practical implications The authors developed a new direction of enterprise water management activities from the perspective of market competition. Based on the market conditions in China, the authors also investigated the impact of the ownership type of the enterprises on the relationship between market competition and water information disclosure. Social implications The authors suggested that the government should improve laws and regulations and adopt incentive mechanisms to encourage enterprises to implement water resource management. In addition, the government should encourage high market status enterprises to actively fulfill their environmental responsibilities so that the entire industry is encouraged to follow suit. Originality/value This study represents an important development in the field of environmental accounting and is the first research on corporate water information disclosure; it also extends the research on the influence mechanisms of market competition on the environmental management practices of enterprises.

“…Dengan nilai koefisien 0,026 (< 0,05), biaya lingkungan belum mampu memicu besarnya pengung kapan air. Temuan ini menunjukkan bahwa perusahaan masih belum baik dalam men jalankan good water governance (Ferreira et al, 2010;Zhou et al, 2018).…”

Section: Variabelunclassified

“…Pengungkapan air merupakan topik pe nelitian yang masih baru (Zhou et al, 2018). Penelitian ini membahas kepedulian peru sahaan dalam pengelolaan air.…”

unclassified

Pengungkapan Air Dalam Perspektif Agenda-Setting Theory

Wicaksono¹,

Djuminah

Honggowati

2020

jamal

Penelitian ini bertujuan untuk menguji beberapa variabel terkait agenda-setting theory terhadap pengungkapan air. Metode yang digunakan yaitu analisis regresi berganda dengan sampel 198 data laporan tahunan perusahaan terbuka sektor miscellaneous, basic, customer goods, agriculture, dan mining pada tahun 2018. Penelitian ini menemukan bahwa keadilan dan proporsional sebuah berita sering dipertanyakan oleh pu blik. Selain itu, banyak perusahaan tidak menyebutkan biaya lingkung an. Oleh karena itu, pemerintah harus menetapkan sustainability report sebagai kewajiban dan bekerja sama dengan media massa untuk mem bantu pengungkapan air yang proporsional.