Theories and Determinants of Voluntary Disclosure

Shehata, Nermeen F.

doi:10.5430/afr.v3n1p18

Cited by 99 publications

(117 citation statements)

References 53 publications

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“…On the one hand, social responsibility actions can be a marketing strategy for firms [59,60]; on the other hand, they can also be a good means for "washing away their sins", as firms have the chance to present their image in a favorable manner [61][62][63][64] and contribute via their involvement in the social progress to the economic growth of the space where they conduct their business [65]. Actions are validated by the legitimacy theory, which interprets socially responsible behavior as a means for companies to respond to requests issued by the society [5,66].…”

Section: Sustainability Reporting and The Quality Thereofmentioning

confidence: 99%

Is Sustainability Reporting a Business Strategy for Firm’s Growth? Empirical Study on the Romanian Capital Market

et al. 2019

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This study analyzed the impact of sustainability reporting on firms' growth as a result of adopting an environmentally and socially responsible behavior. The information published by companies listed on the main section of the Bucharest Stock Exchange during a period spanning six financial years (2012-2017) was used to assess the influence exerted by the conduct of activities related to sustainability; the integrated reporting of economic, social and environmental protection information; and the quality of published reports on certain indicators relevant to appreciating a firm's growth (price-to-book ratio, sales growth and cost of capital). The results obtained indicate a low influence of sustainable reporting on a firm's growth indicators. Current and potential investors, lenders and business partners interpret sustainability reporting as insufficiently documented and as having a low capacity for integration within the decision-making process. However, significant dependency relationships were identified, and particularized on various connections without following a correlation pattern between a firm's growth directions and the indicators of sustainability reporting. The results remain robust even after the introduction of certain control variables, such as sustainability sensitive industry sectors, company size and age, or increase of investments. Our paper sets out to contribute to expanding the specialty literature by highlighting the involvement of sustainable reporting as a factor in optimizing firms' growth strategies and, at a methodological level, by using a quantile regression.

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Section: Sustainability Reporting and The Quality Thereofmentioning

confidence: 99%

Is Sustainability Reporting a Business Strategy for Firm’s Growth? Empirical Study on the Romanian Capital Market

et al. 2019

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“…Disclosures are an important source of information for shareholders and the interested public (Shehata, 2014). Shehata (2014) defines disclosure as a way of informing the public by means of annual reports. Banks are companies with special business model, so what is valid about disclosure in companies it can be applied to banks.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…items disclosed by a company on a voluntary basis, is the providing of additional information when mandatory disclosure does not provide an accurate picture of a company. Meek et al (1995, in Shehata, 2014 define voluntary disclosure as additional financial and other relevant information e. g. corporate social responsibility Obafemi et al (2018), complementing the management's disclosures in order to assist readers of annual reports and enable them to make the best possible decisions.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…Authors (e.g. Soliman, 2013, Owusu-Ansah, 1998, Shehata, 2014, Hossain, 2008, Barako, Hancock and Izan, 2006, Wen-hsin Hsu, Pourjalali and Songa, 2018 have examined factors influencing the level of disclosure in annual reports and the manner in which they impact different stakeholders. Among the most commonly stated factors are the following: size, age, and profitability of a company, its board structure, the share of government, ownership and the number of subsidiaries, i.e.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

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The Level of Disclosure in Annual Reports of Banks: The Case of Slovenia

Kolar

Falež

2018

Organizacija

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Background and Purpose:Many studies have explored the disclosures in annual reports of companies. Annual reports of banks differ significantly from annual reports of other business entities, particularly in terms of disclosed items. The aim of this article is to investigate the level of disclosures and which factors influence the level of disclosure in the annual reports of banks in Slovenia. Design/Methodology/Approach: We have observed disclosures of all banks in Slovenia for year 2012 and 2015. The factors as used in the study are age, size, the government share, profitability and complexity of a bank. Our disclosure checklist consists of 144 voluntary and mandatory items. Statistical analysis is performed using linear regression analysis. Results: The average score for banks in Slovenia is near 94 points or 63% of all possible disclosures. The results of analyses indicated positive associations and statistical correlations between the level of disclosure in annual reports and the size of a bank, the share of government ownership and negative statistical influence of the age of bank on the level of disclosure. Our results do not show statistically significant correlation between the level of disclosure and a bank's profitability and complexity, which is against theory and findings from other similar research. Conclusion: In our opinion, results well reflect the Slovenian banking system and how banks reveal their information. Our finding is that banks in Slovenia provide less information to the public compared to the average companies in other branches or banks in similarly developed countries. The paper's main contribution is to deepen our knowledge about disclosures in the bank's annual reports and the answers what are the influential factors of disclosures for banks.

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“…This figure adds the evidence that some companies do not report detailed information of segment disclosure. Volume 22, Issue 3, July 2018: 456-574 | 462 | Shehata (2014) describes that disclosure is a signaling tool for assessing companies. A proper disclosure level will inform the user transparently that resulting in minimizing of the information asymmetry.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Relationship of Earnings Quality and Segment Disclosure in Decreasing Cost of Equity

Khomsatun¹,

Siregar

Utama

2018

Jurnal Keuangan Dan Perbankan

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Investors would analyze the reporting of segments disclosure in the notes to the financial statements, addition to the main reporting that presents earnings and cash flows. We investigated the relationship between the segment disclosure level and the earning quality that could decrease the cost of equity. Sample of this research were 242 firms-years of manufacture industry firms. This research used simultaneous test; the first stage was a regression of segment disclosure level on earning quality and the second stage was a regression on the cost of equity. Segment disclosure level was measured from PSAK 5 Operating Segment (2009); the cost of equity measured using industry-adjusted E/P Ratio; earning quality measured using absolute of accrual quality and absolute of abnormal accrual. We found that earnings quality positively influences on segment disclosure level. We proved that there was a complementary effect between them. The second result showed that the segment disclosure level decreases the cost of equity, but marginally. The third result proved that in the second order condition, the segment disclosure level was stronger in decreasing the cost of equity. We proved that there was endogeneity of segment disclosure level in decreasing cost of equity.

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Theories and Determinants of Voluntary Disclosure

Cited by 99 publications

References 53 publications

Is Sustainability Reporting a Business Strategy for Firm’s Growth? Empirical Study on the Romanian Capital Market

Is Sustainability Reporting a Business Strategy for Firm’s Growth? Empirical Study on the Romanian Capital Market

The Level of Disclosure in Annual Reports of Banks: The Case of Slovenia

Relationship of Earnings Quality and Segment Disclosure in Decreasing Cost of Equity

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