Investigating risk disclosures in Italian integrated reports

Guthrie, James; Rossi, Francesca Manes; Orelli, Rebecca Levy; Nicolò, Giuseppe

doi:10.1108/medar-10-2019-0596

Cited by 38 publications

(61 citation statements)

References 71 publications

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“…This study's research method is a content analysis of the 2019 annual reports of public universities in the Australian state of Victoria. We use content analysis to identify how the COVID-19 risks disclosed, adopting a risk classification framework and risk categories (Guthrie et al , 2020). The financial year ended on 31 December 2019 was used, as this was the last data source available.…”

Section: Methodsmentioning

confidence: 99%

“…This study focuses on the financial year ending 31 December 2019 to understand the extent of risk disclosure communication about COVID-19, which spread to Australia in January 2020. We adopt the descriptions of risks derived from Guthrie et al (2020). These include financial risks relating to financial transactions, investments, potential financial losses and non-financial risks, including operational risks, empowerment risks, information processing and technology risks, integrity risks, and strategic risks.…”

Section: Risk Disclosure and Laughlin's Habermasian Insights Of Change Diagnosismentioning

confidence: 99%

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Public universities and impacts of COVID-19 in Australia: risk disclosures and organisational change

Carnegie

Guthrie

Martin-Sardesai

2021

AAAJ

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PurposeThe purpose of this study is to examine the COVID-19 pandemic risk disclosures in a sample of annual reports of Australian public universities. These universities rely heavily on fee-paying onshore overseas students. Analysing these risk disclosures is essential to understanding the COVID-19 crisis and the implications for organisational change.Design/methodology/approachDocument analysis and content analysis of the 2019 annual reports of all Victorian public universities were undertaken to identify the disclosure of COVID-19 risk impacts. Applying Laughlin's Habermasian insights of change, the study explores the pathways of change adopted by universities to overcome the risk impacts. However, financial risk disclosures about income from this source were virtually non-existent.FindingsAny risk associated with COVID-19 disclosed was minimal in a qualitative, neutral and constant format. The quality of disclosures was low. Media statements, however, pointed to significant income loss and suggested a strategy of substantial cost-cutting, including employee redundancies, which we identified as morphostatic changes of universities to overcome the risk impacts.Research limitations/implicationsThe study reveals the risk associated with sector's aggressive growth strategy, jeopardising their financial viability and quality of teaching and research.Practical implicationsThe findings provide insights to the Australian higher education sector. The low quality of external risk disclosures of these universities suggests an urgent need for transformation.Originality/valueAustralian public universities play a crucial role in society. This role will be diminished by a failure to disclose and manage significant risks adequately.

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Section: Methodsmentioning

confidence: 99%

Section: Risk Disclosure and Laughlin's Habermasian Insights Of Change Diagnosismentioning

confidence: 99%

Public universities and impacts of COVID-19 in Australia: risk disclosures and organisational change

Carnegie

Guthrie

Martin-Sardesai

2021

AAAJ

Self Cite

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“…To make a generalized conclusion about the relationship between ESG and corporate finance, they aggregated the test results of empirical studies over four decades while understanding the impact of ESG investing in global capital markets. The research in this area is extensive, accelerating, and still inconclusive depending on data sample, sample period, empirical methods, and different industries or countries (e.g., [8][9][10][11][12]). Among these 2200 studies, approximately 90% of them indicate non-negative relationships between ESG and financial performance variables, while most report the positive impact of ESG factors on corporate financial performance.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Understanding the Impact of ESG Practices in Corporate Finance

Kim

2021

Sustainability

147

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This study examines the relationship between environmental, social, and governance (ESG) factors and corporate financial performance. Specifically, we study various individual ESG categories, both ESG strengths and concerns, and aggregate ESG factor and their impact on corporate financial performance including profitability and financial risk. We find a positive effect of ESG factors on corporate profitability, and the effect is more pronounced for larger firms. Among different ESG categories, corporate governance has the most significant impact, particularly for firms with weak governance. We also find that ESG variables generally have a positive influence on credit rating. In particular, the social factor has the most significant impact on credit rating, while environmental score surprisingly has a negative effect. Overall, this research provides a rationale for ESG integration in the context of investment management and portfolio construction to maximize value and minimize risk.

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“…From a practical point of view, our results can support a better understanding of the disclosure of the business model by standards setters. They can better understand to what extent current standards support the disclosure of the BM, including information on sustainable development [5] and in what direction their development should be carried out. The research results allow us to indicate that the BM is not only a tool that describes the way an enterprise creates value, but also carries managerial potential in that it can shape specific attitudes and behaviours, which are then reported in order to legitimize the actions taken by the enterprise.…”

Section: Practical Implications Of Informing About the Business Modelmentioning

confidence: 99%

“…A valid framework may be particularly beneficial for improving the quality of inherently subjective information such as information about the business model. These activities can increase the potential of integrated reporting in promoting positive changes in communicating about the business model as well as about sustainability [5]. At the same time, according to the authors' knowledge, no one has conducted the research presented in this study before.…”

Section: Introductionmentioning

confidence: 99%

Business Model Disclosure in the Reporting of Public Companies—An Empirical Study

2021

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Traditional financial reporting primarily discloses information about assets, equity, liabilities and financial situation of an enterprise. Simultaneously, socio-economic changes are prompting enterprises to implement business reporting towards disclosing activities for sustainable development and information about the business model in non-financial reporting. Shaping of an enterprise’s business model is carried out in the spirit of sustainable development, which is beginning to dominate the strategies of many large enterprises. At the same time, the concept of the business model and its reporting have still not been characterized in detail or standardized, which limits transparency and the usefulness of information. These phenomena provided an incentive to undertake the research on the business model reporting. The overall goal of this study is to expand research on disclosures about the business model in the corporate reporting of Polish listed companies, as well as to indicate the degree and directions of development of this subject against the background of the accounting system. The study also addresses the epistemological goal by entering the discussion on reporting about the business model. The research uses the financial statement content analysis method and the statistical method (Spearman’s correlation). The scope of disclosures about the business model are examined in integrated reports, consolidated reports, management reports, non-financial data reports and CSR reports of Polish companies listed on the stock market. This information is examined according to its four main components: inputs, business activities, outputs and outcomes. The correlation between the number of audited disclosures and selected economic and similar parameters characterizing enterprises (total assets, performance, board, EBITda, equity and liabilities) is also studied. The research reveals that entities preparing an integrated report demonstrate a greater number of disclosures of business model components in selected economic categories than entities that do not prepare such a report. Thus, the companies preparing an integrated report follow the mainstream of stakeholder theory, opting for a more descriptive reporting approach, accessible to a wider group of users. Moreover, business model information is often reported in a highly random manner. Simultaneously, descriptive forms of business model disclosure prevail over numerical ones, although not to a large degree. The findings also confirm that there is a positive correlation between the detail of disclosures about the business model and selected economic parameters of an enterprise (the strongest with total assets, board and EBITda). Thus, it becomes possible to recognize that large enterprises with a strong and stable structure of assets follow specific, more detailed reporting patterns aimed at sustainable development of reporting. At the same time, they are more likely to expand the scope of disclosures compared to smaller enterprises. This investigation responds to the interest of enterprises and other stakeholders in the reporting spectrum by increasing market information efficiency and transparency. Findings can also be used by standards setters, while providing new rules and regulations.

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Investigating risk disclosures in Italian integrated reports

Cited by 38 publications

References 71 publications

Public universities and impacts of COVID-19 in Australia: risk disclosures and organisational change

Public universities and impacts of COVID-19 in Australia: risk disclosures and organisational change

Understanding the Impact of ESG Practices in Corporate Finance

Business Model Disclosure in the Reporting of Public Companies—An Empirical Study

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