Search results

Purpose: The purpose of this chapter is to establish the sustainability reporting practices of FTSE 100 companies using integrated reporting (IR), corporate social responsibility (CSR) and corporate governance (CG) as proxies. Our study has adopted a holistic approach by combining dimensions of each factor in one variable.

Design/Methodological Approach: The study data cover all FTSE 100 companies over five years, thereby generating 505 company-year observations for each variable of the study. Authors have collected the data from Environmental, Social and Governance (ESG) reports filed with Thomson Reuters and International Integrated Reporting Council (IIRC).

Findings: Results indicate the practice of sustainability reporting in FTSE 100 companies both per variables and dimensions levels. It shows, for example, 89% of the companies reported on their charitable donations. The study also found that 79% of the FTSE 100 companies reported on their sustainability committees whilst 86% and 85% reported on their emission reduction and waste reduction policies, respectively. Results show that the CSR impact is higher than CG regarding IR adoption. The Logistic Model manages to explain a high percentage of IR adoption while controlling for other misspecification issues such as multicollinearity.

Practical Implication: The study highlights practice of substantiality reporting for public shareholding companies listed on FTSE 100 Index along with interaction among proxies. These will be of interest to companies not only in the FTSE 100 Index but also those outside. Companies can rely on these factors to strengthen their governance, social responsibility and reporting policies in consideration of all stakeholders and not just a few. We believe that we shed a quantitative explanation on IR adoption by CSR and CG factors, and we expect an impact on practices following results of our study.

Social Implication: Results have indicated that at least 60% of companies in the FTSE 100 Index have imbedded social responsibility activities, such as charitable giving, waste reduction initiatives, emissions reduction policy and sustainability committees.

The purpose of this paper is to find empirical evidence of ownership structure and corporate governance (CG) effect on sustainability reporting in Indonesian listed banks. The study also tries to describe sustainability reporting disclosure practice.

The authors analyze balanced panel data with a total of 155 observations from 2012 to 2016 using panel data regression.

The findings present empirical evidence that sustainability reporting in Indonesian listed banks is still low. CG, foreign ownership and family ownership positively influence sustainability reporting. Further, the authors find that family ownership weakens the effect of CG while foreign ownership has no significant moderating role. Digital banking is not a significant determinant and OJK sustainable finance roadmap is evidenced to have no impression on bank intention to produce sustainability report.

The use of content analysis method for variable measurement may contain subjectivity substance from the researcher’s perspective. Further research works need confirmation from independent parties with expertise in this subject. Further research works can also implement the mixed method by combining quantitative and qualitative approach to gain better quality.

The result of this study underlines the need for sustainability reporting improvement, followed by suggestions for Indonesian banking regulator.

This paper provides a description of Indonesian banks sustainability reporting and evidence of CG and controlling owner’s role in its practice. The research presents a novelty, examining the role of digital banking as determinant.

The purpose of this paper is to investigate the corporate social responsibility (CSR) reporting information of Bangladeshi listed commercial banks and explores the potential effects of corporate governance (CG) elements on CSR disclosures.

The annual reports of all private commercial banks (PCB) for the year 2007‐2008 are examined to analyse the banks' CSR reporting practice using content analysis. It also considers three elements of CG such as non‐executive directors, existence of foreign nationalities and women representation in the board. The multiple regressions were used to measure the impact of CG elements on banks' CSR reporting initiatives.

The results of the study demonstrate that though voluntary, overall CSR reporting by Bangladeshi PCB are rather moderate, however, the varieties of CSR items are really impressive. The results also displayed no significant relationship between the women representation in the board and CSR reporting. Conversely, non‐executive directors and existence of foreign nationalities have been found the significant impact on the CSR reporting.

The main limitations of the paper are that it considers PCB from only one country and uses annual reports disclosures from a single year. The results of the study can be used by researchers to analyse the benefits of including the non‐executive directors and foreign nationals on different types of CSR initiatives and standard setters to set the suitable CSR policy guidelines with a view to reinforce such initiatives.

This unique paper divulges the CSR related disclosure with possible impact of CG in the specific context of a transitional economy's banks such as Bangladesh. The paper contributes to the CSR literature as it presents empirical evidence of the influences of CG structure on the practices of CSR activities in developing countries' banking sector setting.

This paper aims to determine priority issues in the corporate governance (CG) principles to increase CG rating notes of publicly traded companies.

This study defines the priority issues for publicly traded companies that should be focused to increase the CG rating notes. In this context, this study considers the companies in Borsa Istanbul CG index (XKURY), use data for 2018, 2019, 2020, and applies machine learning algorithms.

Overall, importance of each CG principle changes for the CG rating notes; first five CG principles in terms of significance have a total of 43.6% importance for the CG rating notes; following a straight-line approach in completing deficiencies of the CG principles cannot help increase the CG rating notes. Hence, empirical results highlight the impact of the most significant CG principles in terms of the CG rating notes that should be focused on by publicly traded companies so that CG ratings can be increased.

This study uses Turkey data and considers publicly traded companies in the XKURY index. The main cause of this condition is that consolidated data of compliance report format for all publicly traded companies cannot be obtained.

The publicly traded companies can increase the CG rating notes by considering the results of this study while focusing on priority issues in the CG principles.

The study determines the most important CG principles that companies can focus on, highlights the importance of usage of machine learning algorithms in determining the most influential CG principles in terms of the CG rating notes and reflects on the difficulties for gathering consolidated CG principles compliance reporting data for all publicly traded companies. Hence, societies can have better companies that are ruled more efficiently and corporately by increasing their compliance with the CG principles.

To the best of the authors’ knowledge, this is the first empirical study that determines the priority issues to increase the CG rating notes of publicly traded companies based on the new CG principles compliance reporting scheme in Turkey. Following this aim, machine learning algorithms, which can present better results with regard to most of the econometric models, are used in this study.

The purpose of this paper is to investigate selected corporate governance attributes and financial reporting lag and their impact on financial performance of listed firms in Ghana.

The study uses 90 firm-year data for the period 2012–2014 for firms listed on the GSE. Each annual report was individually examined and coded to obtain the financial reporting lag. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis, which forms the main data analysis.

The descriptive statistics indicate that over the three years, the mean value of timeliness of financial reporting (ARL) is 86 days (SD 21 days), minimum is 55 days and maximum is 173 days. The regression analysis results indicate that financial reporting lag has a negative statistically significant relationship with firm performance. This negative sign indicates that when financial performances of companies are high (good news), companies have the tendency to disclose this situation early to the public.

Firms that are not timely in the financial reporting practices will find it difficult to attract capital as the delay will affect their reputation.

This study is one of the few to measure financial reporting lag and its impact on firm financial performance in Sub-Saharan Africa.

The purpose of this study is to investigate how board characteristics impact the governance, environmental and ethics disclosure. Board characteristics such as board size, gender diversity, board independence, CEO/chair duality and board meeting are included.

This study is based on a sample of 82 companies listed in the SBF120 between 2012 and 2017. A number of econometric techniques are used such as generalized least squares to test the panel regressions.

Board independence, board gender diversity and board meetings have a positive and significant influence on governance, environmental and ethics disclosure. Board size is positively and significantly associated only with corporate environmental disclosure. The adoption of Global Reporting Initiatives (GRI, G4) has not affected or biased the corporate governance (CG), environmental and ethics disclosure.

This study adds to the literature on management reporting behavior and ethics and contributes to the extant CG literature by offering new evidence on the disclosure of good CG practices as well as environmental and ethics behavior. This study offers new insights about the potential influence of board characteristics on such specific disclosure practices focusing “during the optional period of GRI4 and after their mandatory adoption”.

This study aims to investigate the relationship between corporate social contribution measures and investors’ reaction under the effect of corporate governance for firms listed in China, the largest emerging economy in the world. Corporate social contribution is examined from an informative perspective by using a financial indicator – social contribution value per share (SCVPS) brought up by the Shanghai Stock Exchange in 2008.

Data are obtained from two channels: financial information during 2007-2015 generated from database and social accounting information manually collected from the 2007-2015 annual reports and social reports.

It is predicted that investors’ reaction toward corporate social contribution becomes stronger for companies with higher corporate governance quality.

This paper is one of the first to use Chinese SCVPS data to indicate the informativeness of social contribution toward firm value. It can serve as a valuable reference to both investors and companies in terms of the issue of social contribution.

The study highlights the importance of social contribution on firm value by using an empirical approach in the Chinese market. The study can be used as a reference for many other developing countries in the world.

The findings of this study can provide guidance to investors on how to evaluate a firm’s social performance and encourage companies to improve the transparency of their social reporting, as well as the quality of corporate governance.

The purpose of this study is to empirically examine the deeply rooted relationships between corporate governance (CG) and corporate social responsibility (CSR) disclosure as two complementary mechanisms used by companies to reinforce the link with stakeholders and whether the extent of CSR disclosures made by Palestinian non-financial-listed companies during the period from 2013 to 2016 is associated with CG practices.

Content analysis technique was used to extract and measure CSR information from annual reports of 33 companies listed on the Palestine Stock Exchange (PEX). Therefore, CSR disclosure index was constructed using 32 items divided into four categories as a measure of the extent of CSR disclosure in the firm’s annual reports. OLS regression was performed to test the association between CG and the extent of CSR disclosure in this longitudinal study.

Panel data reveal that the level of CSR reporting has slightly increased over the study period. Further, the results also show that the level of CSR disclosure is positively and significantly affected by board size and independence, while gender diversity has a positive but statistically insignificant influence. Additionally, CEO duality is negatively and significantly correlated with CSR disclosures.

The study designs are limited to the Palestinian non-financial-listed firms. Furthermore, the generalisation of the findings might be restricted solely to the listed companies working in similar socioeconomic status.

The findings of this study can draw policy-makers’ attention in developing countries, particularly in the Arab world, to meet the increasing need for updating the regulatory and institutional framework in the vein of CG reform and the related regulatory policies to promote the efficiency of CSR practices.

More efforts should be made to strengthen the awareness of the Palestinian listed companies of the advantages of CSR reporting on social reality. Thus, from a management perspective, companies have to take equally into account the financial and social outcomes of CSR activities.

Empirical evidence on the nexus between CG and CSR disclosure from countries affected by socio-political instability is extremely limited. This study bridges this research gap and contributes theoretically and practically to the CSR literature by providing empirical evidence from a developing country with a unique business environment.

This study aims to investigate the extent and nature of corporate governance reporting (CGR) in corporate annual reports of Bangladesh. The aim of the study to test empirically the relationship between corporate governance (CG) and CGR by the listed companies in Bangladesh. The CG examined the proportion of independent directors, board leadership structure, board size, ownership structure and audit committee size.

The study is based on a sample of 86 listed non-financial companies in Dhaka stock exchanges (DSE) from the period of 2015-2017 and all the companies are selected by judgment Sampling. The study has been used as an unweighted relative disclosure index for measuring CGR.

The empirical results indicate that board leadership structure (BLS) is positively associated with the level of CGR. In contrast, the percentage of equity owned by the insiders to all equity of the firm is negatively associated with the level of CGR.

Findings of this study have important implications for regulatory authority, enforcement agencies such as Institute of Cost and Management Accountants of Bangladesh, Institute of Chartered Accountants of Bangladesh, Bangladesh Securities and Exchange Commission, DSE, policymakers, shareholders and others who have an interemaammast in CG.

Finding of the study will be a benchmark for policymakers and implementers in torching the avenues of improvement in raising the level of CG reporting.

The purpose of this study is to examine both the responses of auditees to corporate governance audit (CGA) regulation and the practices of CGA auditors.

The study used a mixed method. Content analysis of 200 annual and CGA reports was carried out for 13 years, from 2008 to 2021, split into voluntary disclosure and mandatory disclosure periods. Quantitative analysis was also conducted using Kruskal–Wallis and Dunn's tests. Data gathered were interpreted through the lens of isomorphism and Oliver's (1991) strategic responses to institutional processes.

The study revealed that in the voluntary disclosure period, auditees responded mainly with acquiescence, motivated by mimetic isomorphic pressure. In the mandatory disclosure period, auditee responses ranged from acquiescence to dismissal of corporate governance regulation (i.e. coercive isomorphic pressure). Auditor reporting of CGA findings was found to be heterogeneous, suggesting that normative and mimetic isomorphism did not homogenize auditor practices.

The absence of uniform auditee responses to CGA regulation during the mandatory disclosure period suggests that the purpose of mandating the regulation has not yet been achieved and may signal inadequate coercive isomorphic pressure from the Financial Reporting Council of Nigeria (FRCN). Similarly, heterogeneous reporting of CGA findings by corporate governance auditors inhibits the comparability of audit findings, limiting their value for information users.

This study examines corporate governance auditor practices and auditee responses to corporate governance audit regulation.