The effect of voluntary disclosure of historical and forward-looking non-financial information on sustainability performance
Subject Areas :
Journal of Investment Knowledge
Gholamhossein Pourgholami Dafchahi
1
(
Phd candidate of Accounting, Tonekabon Branch, Islamic Azad University, Tonekabon, Iran.
)
Mahmood Samadi Largani
2
(
Assistant Professor, Department of Accounting, Tonekabon Branch, Islamic Azad University, Tonekabon, Iran.
)
Razieh Alikhani
3
(
Assistant Professor, Department of Accounting, Chalous Branch, Islamic Azad University, Chalous, Iran.
)
Mohammadreza Pourali
4
(
Associate Professor, Department of Accounting, Chalous Branch, Islamic Azad University, Chalous, Iran.
)
Received: 2020-11-14
Accepted : 2020-12-12
Published : 2022-12-22
Keywords:
Sustainability performance,
Voluntary Disclosure of Historical Non-Financial Information,
Forward-Looking Disclosure,
Content analysis,
Abstract :
The present study examines the effect of voluntary disclosure of historical and forward-looking non-financial information on sustainability performance and contributes to the existing literature by providing evidence of a definite relationship between the level of voluntary disclosure and sustainability performance in Iran. For content analysis, a checklist tool consisting of 23 components and 186 indicators was used to describe the disclosure criteria. In order to achieve the purpose of the research, the required data of 910 year-company observations (7 years and 130 companies) resulting from the screening process by systematic elimination of companies listed on the Tehran Stock Exchange, have been used in a descriptive-correlational manner from sources such as corporate board reports, financial statements, resource management software and new results with the implementation of content analysis test and multivariate linear regression model. The results showed that there is a positive and significant relationship between voluntary disclosure of non-financial information, historical and forward-looking non-financial information and sustainability performance. These findings indicate that the motivation of companies to disclose voluntary information, especially about the Iranian economy, is very important, because companies must grow economically and therefore their need for capital is high. This study also showed that the level of corporate disclosure continues to increase during the study period.
References:
پورکریم، یعقوب، جبارزاده کنگرلوئی، سعید، بحری ثالث، جمال و قلاوندی، حسن. (1399). تاثیر فراشناخت و خطاهای شناختی بر قضاوت و تصمیم گیری سرمایه گذاران: نقش تعدیلی افشای اختیاری. نشریه علمی دانش مالی تحلیل اوراق بهادار. دوره 13، شماره 46، صفحه 79- 95.
تابلی، حمید، مراد زاده، مسلم، کاشی، مسعود و دروهی، زهره. (1397). بررسی تاثیر کیفیت افشا و افشای داوطلبانه اطلاعات بر عدم تقارن اطلاعاتی در بورس اوراق بهادار تهران. پژوهش های مدیریت عمومی، شماره 42، صفحه 228- 205.
حساس یگانه، یحیی، باباجانی، جعفر، تقوی فرد، محمدتقی و آرین پور، آرش. (1397). تحلیل عملکرد پایدار زیست محیطی و تاثیر آن بر هزینه سرمایه شرکت های پذیرفته شده در بورس اوراق بهادار تهران. دو فصلنامه حسابداری ارزشی و رفتاری، سال سوم، شماره پنجم، صفحه 1- 39.
رهنمای رودپشتی، فریدون، غلامی حسن کیاده، فرید و امین پور، آریا. (1399). بررسی تاثیر پراکندگی مالکیت بر رابطه بین افشای اختیاری و هزینه سرمایه مالکانه. نشریه علمی دانش مالی تحلیل اوراق بهادار. دوره 3، شماره 46، صفحه 37- 25.
شمس، امیر، مهرآذین، علیرضا، مسیح آبادی، ابوالقاسم و شورورزی، محمدرضا. (1398). تبیین مولفه های افشا داوطلبانه با رویکرد مسئولیت اجتماعی از دیدگاه متخصصین آموزش عالی. پژوهشنامه تربیتی، دوره 14، شماره 60.
فخاری، حسین، ملکیان، اسفندیار و جفایی رهنی، منیر. (1396). تبیین و رتبه بندی مولفه ها و شاخص ها گزارشگری زیست محیطی، اجتماعی و راهبری شرکتی به روش تحلل سلسله مراتبی در شرکت های پذیرفته شده در بورس اوراق بهادار تهران، دو فصلنامه حسایداری ارزشی و رفتاری، جلد 2، شماره 4، پاییز و زمستان، صفحه 153- 187.
فیضی، مهدی، پورآقاجان سرحمامی، عباسعلی و نسل موسوی، سیدحسین. (1398). تاثیر افشای داوطلبانه اطلاعات غیرمالی و عملکرد پایداری بر بهبود کیفیت حسابرسی. مجله دانش حسابرسی. سال 19، شماره 77، صفحه 220- 190.
کمیته تدوین استانداردهای حسابداری، (1397). استانداردهای حسابداری. نشریه شماره 590، سازمان حسابرسی.
محمودی، محمد، هادیان، سیدامین و فلاح عابد، طاهره. (1394). تاثیر سطح کیفیت افشای اختیاری معیارهای عملکرد مالی و غیرمالی بر پیش بینی سود. راهبرد مدیریت مالی، دوره 3، شماره 3، صفحه 128- 105.
Ahmed, K. ve Courtis, J.K. (1999). Associations between corporate characteristics and disclosure levels in annual reports: a meta-analysis, British Accounting Review, 31: 35-61.
Aljifri, K., & Hussainey, K. (2007). The determinants of forward-looking information in annual reports of UAE companies. Managerial Auditing Journal, 22(9): 881-894.
Alkhatib, KH.,(2014). The determinants of forward-looking information disclosure. Journal of social and behavioral sciences(109). Pp: 858-864.
Alqatamin, R., Aribi, Z.A., & Arun, T. (2017). The effect of CEOS characteristics on forward- looking information. Journal of Applied Accounting Research. P.P: 1- 26.
Alqatamin, R.M.H.,(2016). Forward looking information disclosures, earnings management practices, and The CEOs personal characteristics: The case of Jordan.
Amel- Zadeh, A., & Serafiem, K. (2017). Why and investors use ESG information: Evidence from a global survey. Harvard Business School Working Paper: 17- 079.
Bamber, L. S., Jiang, J., & Wang, I. Y. (2010). What's my style?: The influence of top managers on voluntary corporate financial disclosure. The Accounting Review, 85(4): 1131–1162.
Barako, D. G., P. Hancock, and H. Izan. 2006. Factors influencing voluntary corporate disclosure by Kenyan companies. Corporate Governance: An International Review 14(2):107-125.
Biyukzkan, G., Karabulut, Y.,(2018). Sustainability performance evaluation: Literature review and future direction. Journal of Evironmental Management. P.P: 253-267.
Botosan, C. A. (1997). Disclosure level and the cost of equity capital. The Accounting Review, 72(3): 323–350.
Botosan, C., & Plumlee, M. A. (2002). A re-examination of disclosure level and the expected cost of equity capital. Journal of Accounting Research, 40(1): 21–40.
Broberg, P., Tagesson, T., & Collin, S-O. (2009). What explains variation in voluntary disclosures? A study of annual reports from corporations listed at the Stockholm Stock Exchange. Journal of Management and Governance, 14(4): 351-377.
Bujaki, M., Zeghal, D. & Bozec, R.,(1999). The disclosure of future oriented information in annual reports of Canadian corporation. Working paper: 44, University of Ottawa, Canada.
Charumathi, B., & Ramesh, L. (2020). Impact of voluntary disclosure on valuation of firms: Evidence from India Companies. Journal of SAGE. P.P: 1- 10.
Chen, Y., & Du, K .(2020). The role of information disclosure in financial intermediation with investment risk. Journal of Financial Stability P.P: 1- 27.
Chow, C.W. ve Wong-Boren, A. (1987). Voluntary financial disclosure by Mexican corporations. Accounting Review, LXII(3): 533-541.
Cooke, T.E. (1989). Voluntary corporate disclosure by Swedish companies. Journal of International Financial Management and Accounting, 1: 171-195.
Cooke, T.E. (1989a). Disclosure in the corporate annual reports of Swedish companies. Accounting and Business Research, 19(74): 113-124.
Cooke, T.E. (1989b). Voluntary corporate disclosure by Swedish companies. Journal of International Financial Management and Accounting, 1(2): 171-189.
Deegan, C. ve Gordon, B. (1996). A study of environmental disclosure policies of Australian corporations. Accounting and Business Research, 26(3): 187-199.
Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary non-financial disclosure and cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review, 86(1): 59–100.
DiMaggio, P. J. (1988). Interest and agency in institutional theory. Institutional patterns and organizations: Culture and environment, 1: 3-22.
Eccles, R. G., Krzus, M. P., Rogers, J. and Serafeim, G. (2012).The Need for SectorSpeci_c Materiality and Sustainability Reporting Standards. Journal of Applied Corporate Finance, 24(2): 65-71.
Eccles, R.G., Hertz, R.H., Keegan, M. ve Phillips, D.M.H. (2001). The Value Reporting Revolution- Moving Beyond the Earnings Game, USA: Wiley.
Elsayed, M.O., & Hoque, Z. (2010). Perceived international environmental factors and corporate voluntary disclosure practices: An empirical study. The British Accounting Review, 42: 17-35.
Eng, L.L., & Mak, Y.T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22(4): 325-345.
European Commission. Disclosure of non-financial information: Europe information: Europe Council, the European Economic and Social and environmental issues. (2014). Retrieved from http://europa.eu/rapid/press-release_STATEMENT-14-291_en.htm (Accessed September 2014) . Financial Accounting Standards Board (FASB) (2014).
FASB (2001). Improving business reporting: insight into enhancing voluntary disclosures. Financial Accounting S Hussainey, K., T. Schleicher, and M. Walker. 2003. Undertaking large-scale disclosur.
Firth, M. (1980). Rising finance and firms’ corporate reporting policies. Abacus, 17(2): 100-115.
Francis, J., Nanda, D., & Olsson, P. (2008). Voluntary disclosure, earnings quality, and cost of capital. Journal of Accounting Research, 46(1): 53–99.
Guthrie, J.E. ve Parker, L.D. (1989). Corporate social reporting: a rebuttal of legitimacy theory. Accounting and Business Research, 9(76): 343-352.
Hassanein, A., and K. Hussainey. 2015. Is forward-looking financial disclosure really informative? Evidence from UK narrative statements. International Review of Financial Analysis 41:52-61.
Healy, P. M., Hutton, A. P., & Palepu, K. G. (1999). Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemporary Accounting Research, 16(3): 482–520.
Ho, S. S. M., & Wong, K. S. (2001). A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing and Taxation, 10(2001): 139–156.
Hossain, M., Tan, L.M. ve Adams, M. (1994). Voluntary disclosure in an emerging capital market: some empirical evidence from companies listed on the Kular Lumpur Stock Exchange. International Journal of Accounting, 29: 334-351.
Hummel, K., Schick, C. (2016). The relationship between sustainability sustainability performance and sustainability disclosure- Reconciling voluntary disclosure theory and legitimac theory. Journal of Accounting and Public Policy. 35(5): 455-476.
Hussainey, K., T. Schleicher, and M. Walker. (2003). Undertaking large- scaledisclosure studies when AIMR-FAF ratings are not available: the case of prices leading earnings. Accounting and business research 33 (4):275-294.
Hussainey, K., T. Schleicher, and M. Walker. (2003). Undertaking large-scale disclosure studies when AIMR-FAF ratings are not available: the case of prices leading earnings. Accounting and business research 33 (4):275-294.
Kamla, R. (2007). Critically appreciating social accounting and reporting in the Arab Middle East: A post colonial perspective. Adv. Int. Account, 20:155-177.
Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate sustainability: First evidence on materiality. The Accounting Review, 91(6): 1697–1724.
Li, X., & Yang, H. I. (2016). Mandatory financial reporting and voluntary disclosure: The effect of mandatory IFRS adoption on management forecasts. The Accounting Review, 91(3): 933–953.
Lim, S., Matolcsy, Z., & Chow, D. (2007). The association between board composition and different types of voluntary disclosure. European Accounting Review, 16(3): 555-583.
Maama, H., & Mkhize, M. (2020). Integration of non- financial information into corporate reporting: A theoretical perspective. Academy of Accounting and Financial Studies Journal. Vol 24, Issue2. P.P: 1- 15.
Mathuva, D. (2012). The determinants of forward- looking disclosures in interim reports for non- financial firms: Evidence from a developing country. International Journal of Accounting and Financial Reporting. Vol. 2, No. 2. ISSN: 2162-3082.
Meek, G. K., Roberts, C. B., & Gray, S. J. (1995). Factors influencing voluntary annual disclosures by U.S., U.K., and continental European multinational corporations. Journal of International Business Studies, 26(3): 555–572.
Menicucci, E. 2013. Firms characteristics and forward-looking information in management commentaries of Italian listed companies. African Journal of Business Management 7(17):1667-1674.
Menicucci, E.,(2018). Exploring forward-looking information in integrated reporting: a muti-dimensional analysis. Journal of applied accounting Pp: 1-19.
Ng, A. C., & Rezaee, Z. (2015). Business sustainability performance and cost of equity capital. Journal of Corporate Finance, 34: 128–149.
O’Sullivan, M., M. Percy, and J. Stewart. 2008. Australian evidence on corporate governance attributes and their association with forward-looking information in the annual report. Journal of Management & Governance 12 (1):5-35.
Patelli, L., & Prencipe, A. (2007). The relationship between voluntary disclosure and independent directors in the presence of a dominant shareholder. European Accounting Review, 16(1): 5-33.
Patten, D.M. (1992). Intra-industry environmental disclosures in response to the Alaskan oil spill: a note on legitimacy theory. Accounting, organizations and Society, 17(5): 29-44.
Qoori, A., Mujkic, Z., & Kraslawski, A.,(2018). A conceptual framework for measuring sustainability performance of supply chains. Journal of cleaner production.
Qu, W., Ee, M., Liu, L., Wise, V., Cary, P.(2016). Corporate governance and quality of forward-looking information. Asian Review of Accounting, Vol, 23 lss1. Pp: 39-67.
Rezaee, Z. (2016). Business sustainability research: A theoretical and integrated perspective. Journal of Accounting Literature, 36:48–64.
Rezaee, Z., & Tuo, L. (2017a). Are the Quantity and Quality of Sustainability Disclosures Associated with the Innate and Discretionary Earnings Quality?. Journal of Business Ethics: 1-24. DOI 10.1007/s10551-017-3546-y
Rezaee, Z., & Tuo, L. (2017b). Voluntary disclosure of non-financial information and its association with sustainability performance. Advances in Accounting, 39: 47-59.
Shocker, A.D. ve Sethi, S.P. (1974). An approach to incorporating action preferences in developing corporate action strategies. The Unstable Ground: Corporate in a Dynamic Society (Der.: S.P. Sethi), CA: Melville.
Stanga, K. G. (1976). Disclosure in published annual reports. Financial Management: 42-52.
studies when AIMR-FAF ratings are not available: the case of prices leading earnings. Accounting and business research 33 (4):275-294.tandards Board Steering Committee Report, Business Reporting Research Project, US.
Wang, B., Xu, S., Chang Ho, K., Jing, I.M., Huang, H.Y.,(2019). Information disclosure ranking industry production market competition and mispricing: Empirical analysis. Journal of sustainability, pp: 1-16.
Watson, A., Shrives, P. and Marston, C. (2002). Voluntary disclosure of accounting ratios in the UK. British Accounting Review, 34: 289-313.
Waweru, F.W., Memba, F.S, & Njeru, A. (2016). Relationship between forward- looking information disclosure and financial performance of non- financial firms listed in Nairobi securities exchange, Kenya. International Journal of Academic Research in Business and Social Science. Vol.6, No.11, ISSN: 2222-6990.
Williams, S.M. (1999). Voluntary Enviromental and Social Accounting Disclosure Practices in the Asia- Pracific Region: An International Empirical Test of Political Economy theory. The International Journal of Accounting, 34(2): 209-238.
Yang, H. (2012). Capital market consequences of managers' voluntary disclosure styles. Journal of Accounting and Economics, 53(1–2): 167–184.
Zaini, S.M., Sharma, U., Samkin, G., & Davey, H. (2019). Impact of ownership structure on the level of voluntary disclosure: a study of listed family controlled companies in Malaysia. Journal of Accounting Forum. ISSN: 155- 9982.
Zhang, G. (2001). Private information production, public disclosure, and the cost of capital: Theory and implications. Contemporary Accounting Research, 18(3): 363–384.
_||_
