Adoption effect of IFRS on corporate social disclosure and gross domestic product: evidence from Nigeria

Avwokeni, Arthur J.

doi:10.1504/ajaaf.2016.083722

Cited by 4 publications

(6 citation statements)

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“…Thus, firms’ reactions to the requirements of IFRS and the stakeholder pressure to provide additional CSEVD. This result is consistent with Smith et al (2014) and Avwokeni (2016).…”

Section: Discussionsupporting

confidence: 93%

Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

Boshnak

2021

JFRA

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Purpose This paper aims to examine firm characteristics and ownership structure determinants of corporate social and environmental voluntary disclosure (CSEVD) practices in Saudi Arabia to address the paucity of research in this field for Saudi listed firms. Design/methodology/approach The paper uses manual content and regression analyses for online annual report data for Saudi non-financial listed firms over the period 2016–2018 using CSEVD items drawing on global reporting initiative-G4 guidelines. Findings Models show that Saudi firm CSEVD has increased over time compared to previous studies to an average of 68% disclosure due to new corporate governance regulations and IFRS implementation. The models show that firm size, leverage, manufacturing industry type and government ownership are positive determinants of CSEVD, while family ownership is the negative driver of CSEVD. However, firm profitability, audit firm size, firm age and institutional ownership have no impact on the level of CSEVD. Originality/value Using legitimacy and stakeholder theories, the paper determines the influence of firm characteristics and ownership structure on CSEVD, identifying implications for firm stakeholders and providing some evidence on the impact of corporate governance regulation and IFRS implementation on such disclosure. The paper provides additional evidence on progress towards Saudi’s Vision 2030.

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“…Thus, firms’ reactions to the requirements of IFRS and the stakeholder pressure to provide additional CSEVD. This result is consistent with Smith et al (2014) and Avwokeni (2016).…”

Section: Discussionsupporting

confidence: 93%

Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

Boshnak

2021

JFRA

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“…This conceptualization sweeps future prospect of the firm under the carpet on the thesis that market participants do not look beyond the financial statements to make investment decisions. This perspective also drives the IASB framework insofar as heavy weights are placed on accounting data for disclosure, but accounting should reflect all information relevant to investors in valuing a firm (Palea, 2013) and such information should include corporate social responsiveness (Avwokeni, 2016; Ntim, 2016).…”

Section: Innovation Theorymentioning

confidence: 99%

“…The second is to learn whether market participants place a premium on the future prospect of the firm when making investment decisions. Information on these issues is needed to clinch the IASB framework that mandates managers to report accounting information that is directly related to investment decisions but options the disclosure of accounting information that is related to corporate social concern (Avwokeni, 2016). The motivation for this study came from Ohlson and Meyer’s view that financial statements do not provide all domain variables to predict value relevance; e.g.…”

Section: Introductionmentioning

confidence: 99%

“…existing and potential investors would like to know the relationship with current customers, employees, and the host communities to choose less risky investment portfolios. Thus, corporate social issues can affect a company’s valuation (Avwokeni, 2016, p. 254).…”

Section: Introductionmentioning

confidence: 99%

“…If, in fact, accounting information is the dominant factor that drives value relevance, then equalizing backgrounds should equalize value relevance otherwise market participants place a premium on the future prospect of the firm[4]. The study detects a significant gap even after equalizing backgrounds, suggesting that market participants look beyond the financial statements to choose less risky investment portfolio (Avwokeni, 2016). This result corroborates Ohlson and Myer’s argument that financial statements do not provide all domain variables to predict value relevance.…”

Section: Introductionmentioning

confidence: 99%

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On the value relevance argument

Avwokeni

2018

JFRA

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Purpose Potential investors need information on corporate social issues to choose less risky investments, but the IASB framework excludes corporate social disclosure from financial reporting, and this corroborates Ohlson (1995) and Myers’ (1999) view that financial statements do not provide all domain variables to predict value relevance. The purpose of this study is to ascertain whether market participants place a premium on the future prospect of the firm when making investment decisions, and if they do, then Ohlson and Myers are correct, and this would be glaring evidence to recommend a rethink on the IASB reporting framework. Design/methodology/approach Nigeria provides a realistic research setting to detect value relevance attributable to the IFRS because it is less affected by the 2007/2008 financial crisis. The price model was estimated for Nigerian domestic accounting standards and the International Financial Reporting Standards (IFRS). The means for each predictor were plugged into each estimated equation to obtain the average value relevance of each financial reporting system. Then, the IFRS accounting policies were made to play by the rules of the domestic accounting standards. If, in fact, accounting information is the dominant factor that drives value relevance, then equalizing backgrounds should equalize value relevance, otherwise market participants place a premium on the future prospect of the firm. Findings The study detects, inter alia, a significant gap even after equalizing backgrounds, suggesting that market participants look beyond the financial statements in forming perceptions on the future prospect of the firm; e.g. relationship with host communities, development stages of new products in their life cycles, etc. Practical implications The findings ring a bell for the IASB to include metrics of future prospect of the firm in corporate financial reporting so that investors can choose less risky investment portfolios. Furthermore, the findings lend support to Ohlson and Myers’ argument that financial statements do not provide all domain variables to predict value relevance. Originality/value To date, no study has reported the amount of value relevance attributable to the IFRS vis-à-vis domestic accounting standards and future prospect of the firm.

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Do the IFRS promote corporate social responsibility reporting? Evidence from IFRS convergence in India

Weerathunga

Chen

Nurunnabi

et al. 2020

Journal of International Accounting, Auditing and Taxation

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Adoption effect of IFRS on corporate social disclosure and gross domestic product: evidence from Nigeria

Cited by 4 publications

References 0 publications

Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

On the value relevance argument

Do the IFRS promote corporate social responsibility reporting? Evidence from IFRS convergence in India

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