Search Results (31)

The valuation of biological assets represents a crucial component for the generation of accounting information, especially in the context of the agricultural sector, where assets subject to continuous transformation processes predominate. This study aims to analyze, through a systematic review of the literature, how the measurement methods established by International Accounting Standard 41 (IAS 41) affect the quality, accuracy, and usefulness of accounting reports. The results show that the correct valuation of biological assets significantly improves strategic and financial decision-making by providing more reliable and representative data on the economic reality of the sector. Finally, the study highlights the main practical challenges in the application of IAS 41, including fair value volatility, the subjectivity of estimates, the limited availability of reliable data, and the need for more flexible accounting frameworks that consider the cultural, climatic, and productive realities of each environment. Based on these findings, the importance of strengthening transparency and accounting disclosure and adapting measurement methods to the particularities of the agricultural sector in order to improve the quality of information and the confidence of external users is highlighted. Full article

This study investigates whether and how the complexity of derivative use influences the stock price crash risk in China’s capital market, a critical question given the growing use of derivatives in emerging economies where governance structures and disclosure standards vary widely. While prior research has examined the binary effects of derivative usage, limited attention has been paid to the multidimensional complexity of such instruments and its informational consequences. Using a novel hand-collected dataset of annual reports from Chinese A-share-listed firms between 2010 and 2023, we develop and implement new indicators that capture both the economic complexity (diversity and scale) and accounting complexity (reporting dispersion and fair-value hierarchy) of derivative use. Our analysis shows that higher complexity is associated with a significantly lower likelihood of stock price crashes. This effect is especially pronounced in non-state-owned firms and those with weaker internal-control systems, suggesting that derivative complexity can enhance information transparency and serve as a substitute for other governance mechanisms. These findings challenge the conventional view that complexity necessarily increases opacity and highlight the importance of disclosure quality and institutional context in shaping the market consequences of financial innovation. Full article

Integrated Reporting (IR) has gained prominence as a comprehensive approach to corporate disclosure, yet theoretical clarity is still developing regarding how governance mechanisms shape IR quality and its relation to ESG risk ratings. Addressing this gap, this study explores the influence of board and audit committee characteristics on IR quality and whether an improved IR quality is associated with a lower ESG risk. Drawing on different theories, this research examines how governance structures enhance transparency and accountability in line with societal expectations. Based on panel data from 158 firms across four years (2019–2022), a random effects Panel EGLS regression model is employed along with an endogeneity check. Findings show that board independence and the presence of women members significantly enhance the IR quality, while board size is not a determining factor. Similarly, audit committee independence and meeting frequency positively influence the IR quality, whereas committee size does not. Furthermore, firms with a higher IR quality demonstrate significantly lower ESG risk scores. These results underscore the theoretical proposition that effective governance improves disclosure credibility and reduces information asymmetry. This study suggests that reinforcing board independence and diversity can enhance reporting quality and stakeholder trust, offering a strategic path toward more sustainable and transparent corporate behavior. Full article

Environmental accounting information disclosure is crucial for heavily polluting enterprises to strengthen environmental governance and realize sustainable development. However, some enterprises still suffer from weak disclosure awareness and low disclosure quality. Therefore, improving the quality of environmental accounting information disclosure in the digital era has become an urgent task to achieve China’s goal of a green and low-carbon economy. Using data from Shanghai and Shenzhen A-share listed companies in China’s polluting industries from 2013 to 2022, this study explores the impact and channels of influence of digital transformation and environmental accounting information disclosure. It has been found that digital transformation significantly impacts the quality of environmental accounting information disclosure. Further, based on the dual perspectives of internal empowerment and external monitoring, digital transformation improves environmental accounting information disclosure by promoting executive compensation incentives and enhancing analyst attention. Furthermore, the positive impact of digital transformation on environmental accounting information disclosure is more pronounced with the implementation of new environmental protection laws, high-quality audits and a high level of digital transformation, and non-state-owned enterprises. The findings provide theoretical support for the government to improve the environmental accounting information disclosure system and provide valuable policy insights to promote digitalization and green, low-carbon transformation paths for heavily polluting enterprises. Full article

Environmental, Social, and Governance (ESG) disclosures are pivotal in steering listed companies toward a balanced trajectory of economic efficiency and environmental/social accountability. Disclosure of ESG information can enhance consumer confidence, create shareholder value, and promote sustainable corporate development. Based on the ESG information disclosure data of Chinese listed companies, this study investigates and empirically analyzes the frequency, content, and quality of ESG information disclosure by Chinese listed companies using a mixed-methodological research approach combining qualitative and quantitative approaches. The findings indicate a low and unreliable frequency of ESG disclosure among Chinese listed companies, with a predominant focus on descriptive content primarily in the “E” and “G” dimensions, while neglecting information disclosure in the “S” dimension. The results of subgroup analyses show that industry classification and the regional economic development level do not increase the disclosure rate. Although the nature of ownership, industry classification, and the level of regional economic development can contribute to improving the overall quality of disclosure, there are differences in the “E”, “S”, and “G” dimensions. In addition, mandatory disclosure requirements can improve disclosure quality, but some differences in the “G” dimension are not significant. The findings provide empirical support for improving the ESG disclosure performance of Chinese listed companies to achieve the “dual-carbon” goal. Full article

The research examines the impact of applying the IFRS 17 International Financial Reporting Standard on the development of accounting measurement and disclosure to improve the quality of financial reports when considering compliance with the requirements of applying the IFRS 4 International Financial Reporting Standard for Jordanian insurance companies. Achieving the objective, previous studies were examined which related to the impact of applying the IFRS 17 Financial Reporting Standard on the development of accounting measurement and disclosure for improving the quality of financial reports when considering compliance with the requirements of applying the IFRS 4 International Financial Reporting Standard for Jordanian insurance companies. Moreover, the researcher linked the theoretical aspect to the practical aspect. Therefore, the researcher designed a questioner, distributed, and then analyzed the results obtained from the relevant parties. The study found the need to conduct increased research related to the impact of adopting the IFRS 17 International Financial Reporting Standard in improving the quality of reports and overcoming obstacles such as current laws, professional qualifications of those preparing reports for insurance companies, and the situation of auditors. Including the IFRS 4 and IFRS 17 standards in the content of accounting courses can be beneficial for linking academic study with practical practice in several ways: Real-world application, Industry relevance, Compliance and regulation, Career opportunities, Evolving nature of accounting. The need to adjust accounting practices of the International Financial Reporting Standard IFRS 17 is an important step in the field of insurance activity to improve the quality of financial reporting. Owing to the fact that the standard has been allocated only to insurance activity and not to all economic operations, means the application of the standard is limited to all insurance contracts for the duration of contracts, regardless of the nature of the activity of the entity issuing those contracts. Therefore, the study recommends increasing attention on disclosure and improving accounting methods in relation to IFRS 17; this is considered a major step in the insurance business in order to improve the quality of financial reports. Additionally, relevant information is provided for financial reports and similar; this helps improve the level of transparency and quality of the information presented in the core of the reports. Thus, it enables companies to assess the impact of contracts about the current financial position, financial performance, and cash flow. Full article

It is of great value to study the stickiness of enterprise cost for reducing enterprise cost and improving enterprise performance. This paper selected all A-share non-financial listed companies from 2014 to 2019 to study the impact of executive power and employee stock ownership plans on cost stickiness. The study found that the higher the executive power, the stronger the cost stickiness of the enterprise. By reducing the adjustment costs and optimistic expectations of management and improving the performance sensitivity of executive compensation and quality of information disclosure, an employee stock ownership plan plays a role in suppressing the cost-stickiness effect of executive power. The larger the scale and the more times the employee stock ownership plan is implemented, the stronger the inhibition effect is. An employee stock ownership plan has a stronger inhibiting effect on the cost-stickiness effect of executive power in enterprises with a large proportion of state-owned and institutional shares and high employee status. Combining the research themes of management accounting and financial accounting, this study discusses the economic consequences of ESOP from the perspective of enterprise cost control, which is helpful for internal and external stakeholders of enterprises to understand the characteristics and effects of ESOP in the new era, and also provides new evidence for enterprise cost control while enlightening policy makers and listed companies to explore the feasible mechanism of enterprise cost control from the staff level. It is of great value to study the stickiness of enterprise cost for reducing enterprise cost and improving enterprise performance. This paper selected all A-share non-financial listed companies from 2014 to 2019 to study the impact of executive power and an employee stock ownership plan on cost stickiness. It is found that the higher the executive power, the stronger the cost stickiness. An employee stock ownership plan has a stronger inhibiting effect on the cost-stickiness effect of executive power in enterprises with a large proportion of state-owned and institutional shares and high employee status. This study provides new evidence for corporate cost control. Full article

This study examines the nature of environmental disclosures of Thai public listed companies (PLCs) which operate in environmentally sensitive industries and the factors affecting environmental disclosures as well as the need for a critical perspective from Non-Governmental Organizations (NGOs) on corporate environmental reporting. A semi-structured interview approach was used for 19 interviews to attain critical perspectives of NGOs on environmental reporting. Thematic analysis through the lens of legitimacy theory and stakeholder theory is undertaken to identify themes and patterns that emerged from the study. Findings of this study reveal that the lack of quantity and quality when it comes to corporate environmental reports are serious issues, thus activating civil society’s criticism. Quality issues are dominant for the lack of reliance on voluntary environmental reporting by NGOs. The government’s monitoring and regulatory compliance systems is key, which has been highlighted as another factor. NGOs prefer government information over environmental information reported by companies. There is strong support for third-party verification and assurance to make the reports more reliable and useful. This study adds to the environmental disclosures and reporting literature by providing insights into civil society perspectives on corporate environmental reporting in the context of a developing country—Thailand. It sheds light on how companies can improve their stakeholder management and engagement strategy. It provides recommendations which may be used to inform relevant policy makers in improving Thai disclosure regulation and compliance mechanisms to promote greater monitoring and accountability. It also suggests companies further explore and examine potential technologies to support their reporting. Full article

As a topic of interest, the quality of Carbon Accounting Information Disclosure (CAID) provides necessary support to enhance sustainability and investment in Research and Development (R&D). Does improving the quality of CAID have an impact on the R&D investment? Does the sustainability of enterprises play a moderating role in the quality of CAID and R&D investment? These are questions that deserve attention and discussion. This paper extracted 1407 samples from China’s markets from 2019–2021, carried out descriptive statistical analysis, analyzed the impact of CAID on R&D investment using multiple linear regression, verified the moderating effect of sustainability on the role of both, and finally conducted a robustness test. The study showed that the higher the quality of CAID, the greater the R&D investment of listed companies; the stronger the sustainability, the stronger the promotion of CAID quality on R&D investment. The findings were also applicable in State-Owned Enterprises (SOEs), while the effect is not significant in non-State-Owned Enterprises. This paper made several recommendations. First, to enhance the company’s R&D investment, listed companies should enhance their CAID capability. Second, listed companies should improve their sustainability to ensure the effective performance of CAID. Third, the government should strengthen supervision and policy guidance to promote the continuous improvement of the CAID system to guide listed companies on the road to developing a low-carbon economy. Full article

Background: Africa comprises the bulk of struggling economies. However, Sub-Saharan Africa is experiencing rapid industrialization and urbanization. Excessive resource use, pollution, and the absence of relevant environmental disclosure are factors that contribute to these human-made damages. Environmental pollution as a threat to sustainable development results from these damages. Although it has been established that Sub-Saharan Africa would benefit from resource-management development, sustainable environmental strategies, and a reduction in urbanization and persistent poverty, the information on these issues has not been made public. Objective: To provide a full account of the level of environmental-exposure disclosure in Sub-Saharan African countries, including the current level of progress, gaps, and prospects, we reviewed the literature on environmental exposure information research in African populations. Methodology: We searched PubMed and Google Scholar for peer-reviewed research articles, reviews, or books examining environmental exposure and information disclosure in human populations in Africa. Results: In total, 89 full-text articles were eligible for the inclusion criteria. A quality assessment of the retrieved articles using the PRISMA guidelines resulted in the exclusion of 40 articles; therefore, 49 studies were included in the final analysis. In Sub-Saharan Africa, the environmental exposure information on household injuries, the use of chemicals such as pesticides in farming, industry-linked vectors and diseases, laboratory chemical exposure, industrial exposure, and epigenetic factors are not well-disclosed to the population. Conclusion: Environmental information disclosure standards should be incorporated into central-government policy recommendations. Standards should identify polluting industries, and companies should refrain from the voluntary disclosure of environmental information to manage their reputation. Heavy-pollution industries should be made sufficiently transparent to lessen the company–media collusion on information disclosure. Full article

Social sustainability is a major concern of planners and local officials when urban renewal projects are being conducted. Extreme individualism can potentially cause conflicts of interest, making urban renewal in Western cities fraught with various types of social risks. As a country with a deep-rooted socialist tradition, urban renewal projects in China are influenced by collectivist culture and show different features from those of the West. The objective of this research is to investigate how different stakeholders in urban redevelopment projects, including local residents, social organizations, the local state, and developers, interact with each other and how the associated social risks are hedged against. Using a recent well-known project in the city of Guangzhou, the authors attempt to present the latest progress in social risk management in China. With support from a government-sponsored project, the authors have conducted a questionnaire-based survey with a year-long fieldwork follow-up. Using ATLAS.ti software, we found that that “residents’ demand”, “status of collaboration”, and “degree of trust” are the keys to risk management. The results of an ordered probit model show that residents are worried about overall planning, the relocation timetable, and whether their personal needs are taken into account. It is also indicated that the timely disclosure of project information, high-quality public participation, and a reasonable compensation plan can possibly boost the support rate. The authors suggest that utilizing China’s collectivist culture could be an effective way to mitigate social risks, and residents’ personal interests should also be respected. Full article

Discretionary accruals reflect the management’s accounting choices made within the flexibility of accounting standards. Discretionary accruals can be used by the management to better reflect the economic value of the firm and to signal their private information about a firm’s future prospects to the market, but they can also be used opportunistically by managers. However, the prior literature documents mixed evidence related to the information content in discretionary accruals. Thus, we examine the association between discretionary accruals and analysts’ forecast dispersion to provide further evidence on the information content in discretionary accruals. Moreover, as greater external monitoring and rigorous ESG management allow less room for manager’s manipulation of discretionary accruals, we investigate whether greater external monitoring by institutional owners and higher ESG scores moderate the relationship between discretionary accruals and analysts’ disagreements on long-term EPS growth forecasts. We find a positive association between discretionary accruals and analysts’ forecast dispersion, which suggests there is low information content in discretionary accruals. Furthermore, we find that a greater concentration in institutional ownership, greater blockholders’ institutional ownership, and a positive ESG score mitigate the positive relationship between discretionary accruals and analysts’ forecast dispersion. Thus, better external monitoring and higher quality ESG enhance the information credibility of a firm’s disclosure. Full article

Globally, present regulations treat pesticide use with a light touch, leaving users with scarce reporting requirements in the field. However, numerous initiatives have been undertaken to reduce risks from pesticide product use and provide the public with sufficient information. Nevertheless, food chain actors are not required to disclose much information on hazards, with many undervalued safety aspects. This situation has resulted in information gaps concerning the production, authorization, use, and impact of pesticide products for both consumers and regulatory stakeholders. Often, the public cannot directly access relevant information about pesticides with respect to retail products and their farm origins. National authorities have poor legal tools to efficiently carry out complete investigations and take action to mitigate pesticide externalities. We created the ontology PestOn to bridge these gaps and directly access pesticide product information, making existing data more useful and improving information flow in food value chains. This demonstration project shows how to integrate various existing ontologies to maximize interoperability with related information on the semantic web. As a semantic tool, it can help address food quality, food safety, and information disclosure challenges, opening up several opportunities for food value chain actors and the public. In its first version, the ontology PestOn accounts for more than 16,000 pesticide products that were authorized in Italy during the last 50 years and retrieved from the public pesticide register. The ontology includes information about active ingredients contained in pesticide products, roles, hazards, production companies, authorization status, and regulatory dates. These pieces of information can support agri-food stakeholders in classifying information in the domain of pesticide products and their active ingredients, while reducing unnecessary repetition in research. PestOn can support the addition of food attributes in the domains of human health, resource depletion, and eco-social impact, turning the spotlight on each possible improper use of pesticide products. Full article

This study aimed to investigate the impact of parent companies and other multiple large shareholders (MLSs) on the audit fees in Japanese firms, where stakeholder-oriented corporate governance is adopted. In such a firm, monitoring by many stakeholders can mitigate conflicts among shareholders. However, because the key stakeholders of these firms tend to resolve information asymmetry problems through insider communication, the level of audit effort is affected not only by the audit risk from principal–principal conflicts, but also by the demands of key stakeholders. Japanese parent companies tend to spin off their departments with high growth potential and provide incentives to lower subsidiaries’ cost of capital through information disclosure. Therefore, parent companies require greater audit efforts, and consequently, audit fees are expected to be higher. However, when MLSs are shareholders of the listed subsidiary, they can obtain relevant information via private communication. Thus, the need for quality accounting information will be smaller, the level of audit effort required will be smaller, and as a result, audit fees will be smaller. The results are consistent with these expectations. This paper contributes to the sustainable growth and economic development of firms and markets and has implications for the development of effective corporate governance mechanisms. Full article

A firm’s corporate social responsibility (CSR) record improves its image and that of its managers. This ultimately can positively affect enterprise value. However, CSR investments do not necessarily lead to better firm performance, as long-term costs are incurred. Therefore, managers often make CSR investment choices based on personal incentives. This study analyzed the relationship between managerial ownership and CSR activities in Korean public companies based on different managerial CSR incentives and ownership levels. Using the Korean Economic Justice Institute’s CSR index, the results show that firms with higher managerial ownership had excellent CSR records. Higher managerial ownership led to alignment between managers and shareholders, with managers making CSR investments to enhance long-term enterprise value. However, in firms with lower accounting transparency, managers reduced CSR investments. Managers did not value their CSR reputations in firms with poor financial reporting quality and serious information asymmetry. Instead, they diverted CSR resources to other projects to meet their interests. As Korean firms increase their investment in CSR, CSR disclosure responsibility is strengthened. Our study results provide significant implications to academics, practitioners, investors, and other stakeholders, suggesting the importance of corporate ownership structure on investment in CSR. Full article