Emerald | Managerial Auditing Journal

The determinants of web-based corporate reporting in France

Sabri Boubaker, Faten Lakhal, Mehdi Nekhili — 2011-12-30 00:00:00.0

Abstract

Purpose – The purpose of this paper is to consider the determinants of web-based corporate reporting by French-listed firms. Design/methodology/approach – The paper is based on a literature review of the determinants of web-based corporate disclosures and is both descriptive and explicative. It analyzes the use of the internet to disseminate corporate information and examines the extent of web-based corporate disclosure by developing a set of disclosure indexes. To test the authors' hypotheses, an OLS regression framework was estimated on a sample of 529 French-listed firms in 2005. Findings – Descriptive analysis shows that French firms are using the internet to disseminate existing rather than timely information. The results show that large-sized firms, large-audited firms, firms featuring a dispersed ownership structure, those that have issued bonds or equities and IT industry firms extensively used the web to disclose information to their shareholders. The results also show that voluntary disclosures are more suited for the internet than mandatory disclosures. Research limitations/implications – The study does not cover all information provided on web sites, particularly those about the impact of IFRS on companies' accounts. Practical implications – The findings are useful to both managers, wishing to meet actual and potential investors' informational needs and to investors wishing to invest in a richer informational environment and to better assess firm value. Originality/value – This paper provides a better understanding of the choice of the internet to release information in the French context, where internet corporate reporting is not standardized as in the USA and Canada.

The effect of board structure and process disclosure on corporate performance in the emerging African markets

Hakim Ben Othman — 2011-12-30 00:00:00.0

Abstract

Purpose – The purpose of this paper is to examine the impact of the board structure and process disclosure (henceforth BSPD) level on corporate performance, depending on the Anglophone vs Francophone business culture prevailing in African emerging markets. Design/methodology/approach – The BSPD score is measured by searching 220 annual reports (year ended 2006) for information of 35 items provided by S&P's template in 11 emerging markets in Africa. The empirical model builds on multiple regressions and assumes interaction between the Anglophone/Francophone business culture and BSPD level to affect corporate performance. Findings – African companies from countries having historical links with Great Britain exhibit substantially higher BSPD scores than those from countries having historical links with France. The influence of BSPD level on corporate performance is more pronounced for financial Anglophone African companies than non-financial Anglophone African companies. Practical implications – Providing BSPD levels for African emerging markets helps to a better understanding of the board of directors' activity and characteristics that prevail in both Anglophone and Francophone African companies. The implications are potentially useful for regulators, market authorities and standard setters in order to provide new requirements on corporate governance narrative reporting in African emerging markets. BSPD scores obtained for African emerging markets can also serve for comparison with other emerging markets in Asia, Latin America, Eastern Europe and the Middle East. Originality/value – This paper is one of the first to examine the effect of BSPD level on corporate performance in African emerging markers. This study contributes to asserting the role of Anglophone vs Francophone business culture in shaping the level of disclosure on board structure and activity and its influence on corporate performance in Africa.

The influence of connotation on readability and obfuscation in Australian chairman addresses

Leopold Bayerlein, Paul Davidson — 2011-12-30 00:00:00.0

Abstract

Purpose – The purpose of this paper is to extend and improve prior readability and obfuscation research by investigating the effect of connotation on readability and obfuscation. Furthermore, the paper aims to develop and apply a novel connotation-based obfuscation assessment approach. Design/methodology/approach – In total, 87 chairman reports of firms included in the Standard & Poor's ASX200 index were analyzed. The readability of sections and connotation-based groups of sentences within these narratives were assessed using the Flesch readability formula. The presence or absence of obfuscation within the analyzed chairman addresses was determined using a novel connotation-based obfuscation assessment approach. Findings – The study demonstrates that the mid section within the analyzed chairman addresses was significantly more difficult to read than the first and last sections. However, the notion that these reading difficulty differences were due to the prevalence of positive and negative news within these sections could not be supported. A subsequent analysis of the reading difficulty differences between connotation-based groups of sentences identified the largely positive group of sentences as an important source of reading difficulty. Finally, the advantages resulting from an application of the connotation-based obfuscation assessment developed in this paper over the traditional obfuscation assessment techniques used in prior literature are demonstrated. Originality/value – This paper provides a substantial contribution to the literature by establishing a direct link between the connotation of information provided in financial reporting narratives and the readability and obfuscation exhibited by these narratives. The novel assessment approach developed in this paper can be used to benefit preparers and users of financial reporting information by identifying types of sentences whose preparation and/or analysis should be approached cautiously.

Narrative disclosure of corporate social responsibility in Islamic financial institutions

Zakaria Ali Aribi, Simon S. Gao — 2011-12-30 00:00:00.0

Abstract

Purpose – This study aims to examine the influence of Islam on corporate social responsibility (CSR) and corporate social responsibility disclosure (CSRD) in Islamic financial institutions (IFIs) with a focus on an analysis of narrative reporting. Design/methodology/approach – Using content analysis, this study analyzes the narrative disclosures of corporate social responsibility of 21 IFIs operating in the Gulf region. Findings – This study provides evidence of Islamic influence on the CSRD of IFIs. It finds that the largest part of CSRD produced by the IFIs is the disclosure of reports of the Shari'a Supervisory Board. IFIs also disclose other Islamic information (e.g. “Zakah” and charity donation, and free interest loan) and report on their compliance with Islam along with information of philanthropy, employees and community. Originality/value – This study provides a valuable contribution to researchers and practitioners, as it extends the understanding of how the narrative disclosures on CSR were produced by IFIs and the influence of religion on CSRD.

Corporate narrative reporting

2011-12-30 00:00:00.0