The interaction between mandatory and voluntary risk disclosure: a comparative study

Cordazzo, Michela; Papa, Marco; Rossi, Paola

doi:10.1108/maj-01-2016-1308

Cited by 25 publications

(10 citation statements)

References 53 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, Wahl et al (2020), using an international sample of listed companies, find no significant association between voluntary IR disclosure and analyst earnings forecast error. Therefore, in line with the need to disentangle the role of the institutional context characteristics in driving corporate reporting practices (Chen and Bouvain, 2009;Cordazzo et al, 2017), this study goes beyond Flores et al's (2019) dichotomy in two ways: first, it includes countries spread all over the world, and, second, clusters are grouped according to a wide range of country-level institutional factors, which are expected to jointly influence the pressure companies are subjected to when deciding whether to release integrated reports as well as the impact on analysts' behaviour (de Villiers and Marques, 2016).…”

Section: Voluntary Integrated Report Release and Analysts' Forecasts In Diverse Institutional Settingsmentioning

confidence: 99%

Integrated reporting and analyst behaviour in diverse institutional settings

Rossignoli

Stacchezzini

Lai

2021

MEDAR

View full text Add to dashboard Cite

Purpose Given the limited studies that have started to focus on contexts where integrated reporting (IR) is voluntarily adopted, this paper aims to explore the moderating role of institutional characteristics on the association between voluntary report release and analyst forecast accuracy. Design/methodology/approach This study uses a quantitative empirical research method grounded on voluntary disclosure theory to provide empirical evidence on an international sample of companies choosing to release integrated reports. Preliminarily, a cluster analysis is used to group countries according to institutional patterns. Multivariate analyses detect the associations between report release choice and analysts’ forecast accuracy across clusters. Multiple econometric approaches are used to address the endogeneity concerns. Findings IR release is not informative for the market unless considering systematic variations across different institutional settings. Analysts’ forecast is more accurate for IR adopters located in strong institutional enforcement settings than for all the other companies. In the strong institutional setting that is also characterized by a pluralistic society, IR release benefits for the market are conditioned by the fact that the choice to release IR depends on environmental, governance and social disclosure-based managers remuneration and disclosure requirements. In weak institutional settings, IR release is not beneficial for the forecast accuracy. Research limitations/implications Academics and practitioners can gain understanding of the usefulness of voluntary IR across different institutional settings. Originality/value The study advances the understanding of the IR’s informativeness, overcoming the common dichotomous distinctions between strong and weak institutional settings.

show abstract

Section: Voluntary Integrated Report Release and Analysts' Forecasts In Diverse Institutional Settingsmentioning

confidence: 99%

Integrated reporting and analyst behaviour in diverse institutional settings

Rossignoli

Stacchezzini

Lai

2021

MEDAR

View full text Add to dashboard Cite

show abstract

“…Look-ing for possible relationships between this and the level of risk disclosure by companies, several features are analysed, although results are not always homogeneous. Abraham and Cox (2007), Cabedo and Tirado (2009), Carmona, de Fuentes, and Ruiz (2016), Elshandidy, Fraser, and Hussainey (2013), Lajili (2009) and Oliveira (2012) find that the number of independent directors on the board influences disclosure positively, whereas Buckby, Gallery, and Ma (2015), Cordazzo, Papa, and Rossi (2017) and Hernández Madrigal (2011) do not find any sort of relationship. Buckby et al (2015) find that the presence of a Risk Committee and the experience of the Audit Committee members exert a positive influence.…”

Section: Matters That Influence Risk Disclosurementioning

confidence: 98%

Present and future of risk disclosure in Spanish non-financial listed companies

Amezaga-Alonso

Carrasco²,

Bilbao³

et al. 2020

RC-SAR

View full text Add to dashboard Cite

Este trabajo investiga las razones y los beneficios esperados por las empresas españolas cotizadas no financieras para divulgar información sobre riesgos, así como las posibles motivaciones para no hacerlo. Investiga la situación actual de la divulgación de riesgos, pero también mira hacia adelante y estudia cómo será ésta en un futuro próximo. A la vista de un entorno cada vez más demandante de información, busca ideas que permitan mejorar esta práctica. Con el objetivo de conseguir los puntos de vista de las partes implicadas (preparadores y usuarios de la información de riesgos) y obtener una opinión consensuada entre ellos, realizamos un estudio Delphi. El grupo de expertos estuvo formado por veintidós personas, trece directores de auditoría interna de empresas españolas cotizadas no financieras, cinco analistas financieros y cuatro académicos. Realizamos tres rondas de preguntas entre los meses de enero y julio de 2017.El estudio concluye, entre otras cosas, que la demanda de información sobre riesgos aumentará en los próximos años, que los beneficios derivados de la divulgación compensan a las empresas de cualquier coste asociado a ella, y que el legislador debe desarrollar más disposiciones legales que aseguren mayor claridad y consistencia de la información, y mayor comparabilidad entre compañías. This paper researches the reasons and expected benefits of Spanish non-financial listed companies for disclosing risk information as well as the possible motivations for not doing so. It investigates the current situation of risk disclosure but also looks forward and studies what it will be like in the near future. In view of an increasingly information demanding environment, it looks for ideas for improving the risk disclosure practice.With the objective of gathering insights from the parties involved (preparers and users of risk information) and getting an agreed view among them, we conducted a Delphi study. The group of experts was made up of twenty-two people, thirteen internal audit directors from Spanish non-financial listed companies, five financial analysts and four scholars. We ran three rounds of questions between the months of January and July of 2017. The study concludes, among other findings, that the demand for risk disclosure will increase in coming years, that the benefits of disclosing offset any kind of associated costs, and that the policy maker should develop more legal provisions to ensure greater clarity and consistency of risk information and more comparability among companies.

show abstract

“…Following Saghi-Zedek and Tarazi (2015), the period of analysis (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014) is divided into three: (before the crisis: [2000][2001][2002][2003][2004][2005][2006], (during the crisis: 2007-2008); and (after the crisis: 2009-2014). Only during and after the crisis periods (two dummies) are included in the related models, whereas the period before the crisis is considered as the reference period (Cordazzo et al, 2017). Similarly, seven sector dummies for eight sub-sectors are used to control for sector-specific effects (Altaf and Shah, 2018).…”

Section: Gmmmentioning

confidence: 99%

The influence of firm, industry and concentrated ownership on dynamic capital structure decision in emerging market

Haron

Nomran

Othman

et al. 2021

JABS

View full text Add to dashboard Cite

Purpose This study aims to evaluate the impact of firm, industry level determinants and ownership concentration on the dynamic capital structure decision in Indonesia and analyses the governing theories. Design/methodology/approach This study uses the dynamic panel model of generalized method of moments-System (one-step and two-step) by using a panel data from 2000 to 2014 to examine the relationship between the determinants and leverage. The results are robust to the various definitions of leverage, heterogeneity, autocorrelation, multicollinearity and endogeneity concern. Findings Growing firms and firms operating in a highly concentrated industry use high level of debt, taking advantage of the tax shield (trade-off theory). However, if the firms are operating in a highly dynamic environment, they take on less debt as to avoid bankruptcy risk. Firms in Indonesia opt for debt financing perhaps to act as a controlling mechanism to mitigate agency conflicts that may exist between the large controlling shareholders and the minority. Aged and highly profitable firms with high tangible and intangible assets and liquidity level operating in a high dynamic environment follow the pecking order theory. Research limitations/implications This study does not perform each industry regression individually. All the industries are pooled together, as the main focus of this study is to examine the factors affecting leverage of firms in general without giving particular attention to individual industry. Originality/value The insights on the impact of ownership concentration and industry characteristics are novel especially on Indonesia, thus fill the gap in the literature.

show abstract

The interaction between mandatory and voluntary risk disclosure: a comparative study

Cited by 25 publications

References 53 publications

Integrated reporting and analyst behaviour in diverse institutional settings

Integrated reporting and analyst behaviour in diverse institutional settings

Present and future of risk disclosure in Spanish non-financial listed companies

The influence of firm, industry and concentrated ownership on dynamic capital structure decision in emerging market

Contact Info

Product

Resources

About