The influence of corporate governance mechanism on the integrated financial reporting and investment risk of Thai listed companies

Chanatup, Sarapee; Aujirapongpan, Somnuk; Ritkaew, Supit

doi:10.9770/jesi.2020.7.4(16)

Cited by 7 publications

(15 citation statements)

References 36 publications

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“…The number of institution-owned companies, the board size, and CSR award recipients all had a significant positive relationship with the degree of integrated reporting. Chanatup et al (2020) investigated the links between corporate governance mechanisms, integrated financial reporting, and investment risk in the Thai stock market. The research discovered a favorable connection between stakeholder-oriented corporate governance structures and integrated financial reporting.…”

Section: Corporate Governance and Information Disclosurementioning

confidence: 99%

The Effect of Corporate Governance Mechanisms on Integrated Reporting: a Structural Equation Modelling (Sem) Approach

Said

Joseph

HASSAN³

et al. 2023

IJBS

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This study investigates the level of integrated reporting of Malaysian listed companies and explores the potential effects of corporate governance mechanisms on integrated reporting. The annual reports of 150 companies listed on the main market, Bursa Malaysia, for the year ended 2014 were examined to analyze the companies' integrated reporting practices using content analysis. An integrated reporting index was constructed following the key elements of the integrated reporting framework established by the International Integrated Reporting Committee (IIRC). The study considered four corporate governance mechanisms: board composition, board size, board diversity, and ownership structure. The study used Multiple regressions to measure the impact of corporate governance mechanisms on the companies' integrated reporting initiatives. Structural Equation Modelling (SEM) was used to measure the effect of corporate governance mechanisms on the level of the companies' integrated reporting. The results showed that Malaysian companies' reporting of financial and non-financial information has not yet been integrated. Based on SEM analysis, the results indicated that only one variable, namely, the board size, was associated with the extent of integrated reporting. Board size was the most significant variable that influenced the level of integrated reporting of Malaysian public listed companies in 2014. The study contributes to the integrated reporting literature. It presents empirical evidence that corporate governance mechanisms influence companies' disclosure of integrated reporting information and, thus, providing additional data or information that will be significantly helpful for other researchers. The study will also stimulate the interest of academics in research activities concerning the characteristics of corporate governance mechanisms on integrated reporting activities. The findings are limited to the context of the study. It only looks at corporate governance mechanisms as a critical driver of integrated reporting and uses only the annual report disclosures from a single year.

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Section: Corporate Governance and Information Disclosurementioning

confidence: 99%

The Effect of Corporate Governance Mechanisms on Integrated Reporting: a Structural Equation Modelling (Sem) Approach

Said

Joseph

HASSAN³

et al. 2023

IJBS

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“…The investors from the USA and Germany prefer to choose the enterprises with higher social responsibility level when making personal investment decisions or making recommendations even though they know that this might mean lower return on investments, since they believe that activities carried out by such socially responsible enterprises are beneficial for society. The enterprises whose management is oriented towards stakeholders and seeing that social responsibility level has an impact on investors are likely to disclose more information about the business, especially its policies regarding social and environmental responsibility (Chanatup, Aujirapongpan, Ritkaew, 2020).…”

Section: Conflict Between the Creative Accounting And The Corporate Social Responsibility The Impact On The Reliability Of Information Anmentioning

confidence: 99%

“…Yet the financial reporting of the enterprise is unreliable and incorrect because of the creative accounting which may mislead the stakeholders or they might even incur losses because of this. The study by Chanatup, Aujirapongpan, Ritkaew (2020) showed that the enterprises where management is oriented towards the shareholders and which consider maintaining benefits for them a priority, the financial accountability has a positive connection with the risk of investment, which means that the information an enterprise presents might have an impact on the investors' confidence in the enterprise and affect their behaviour. Moreover, the study by Arnold et al (2017) shows that the enterprise which manipulates the information presented in the financial statements, can deliberately shift the attention of the investors towards specific information that is beneficial only to the enterprise and on the basis of which, investors will make their decisions.…”

Section: Conflict Between the Creative Accounting And The Corporate Social Responsibility The Impact On The Reliability Of Information Anmentioning

confidence: 99%

International scientific conference "New Challenges in Economic and Business Development – 2021: Post-Crisis Economy" : Proceedings

2021

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Global pandemic COVID-19 has increased the level of digitalization which allows public and private sector organizations in the world to employ people remotely outside office premises and crossing borders of the world. Remote work is one of the new employment forms caused by the impact of digitalization, which keeps conquering and strengthening the positions on our daily professional lives.It means extended use of different new employment forms, including the digital transition of administration processes and business management, improvement of digital skills and competences, contributing to development of areas of services and products with higher benefit (Breaugh, Farabee, 2012). Research aims to study basic principles and tendencies of remote work organization based on theoretical aspects, draw conclusions and elaborate proposals for improvement of remote work. In order to achieve the goal, the tasks are as follows: 1) provide the explanation of remote work organization; 2) describe secondary data from a conducted survey by Milasi, S., Fernandez -Macias, E., Gonzalez-Vazquez, I. 2020, European Commission; 3) conduct survey about remote work.

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“…Although several recent studies have investigated the relationship between board characteristics (i.e., size, independence, gender diversity, meetings, age, and education) and IR disclosure quantity and/or quality, these studies largely considered developed countries [4,5,19,34,35]. However, little research has investigated this relationship in emerging and developing markets [36,37]. To the best of the researchers' knowledge, no comprehensive study has investigated the board's role in determining IR disclosure quantity and quality in Malaysia.…”

Section: Introductionmentioning

confidence: 99%

Board Characteristics and Integrated Reporting Strategy: Does Sustainability Committee Matter?

et al. 2022

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Integrated reporting (IR) is the latest topic in corporate reporting that has raised interest in the disclosure literature. Although the board’s role in IR practice has received significant attention in developed countries, this effect is still unexamined in an emerging market like Malaysia. Thus, this study sought to fill this gap in the IR literature by investigating the impact of the board of directors’ characteristics on the quantity and quality of IR disclosure. The study also examined whether the existence of a sustainability committee affects the board-IR relationship. The study used all listed companies in Bursa Malaysia that applied IR strategy from 2017 to 2020 to test the hypotheses. It employed a content analysis technique to measure the quantity and quality of IR using an index with 100 items based on the International Integrated Reporting Council guidelines. Multivariate ordinary least squares (OLS) regression was applied to examine these relationships. The analysis showed that board size, independence, gender diversity, and non-executive remuneration were positively and significantly related to greater IR disclosure, suggesting that the board of directors has a monitoring role in reducing agency problems and protecting stakeholders’ interests. However, multiple directorships did not affect IR disclosure. The analysis also showed that the presence of a sustainability committee positively affected IR disclosure, and had a moderating effect on the board-IR disclosure relationship. Our result was robust to alternative measures of the corporate board and an alternative regression model. This study is among the first to provide empirical evidence of the board and sustainability committee’s significant role in enhancing IR strategy. The findings may benefit regulatory bodies, policymakers, company managers, investors, and researchers in better understanding how directors’ characteristics influence companies’ IR practices.

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The influence of corporate governance mechanism on the integrated financial reporting and investment risk of Thai listed companies

Cited by 7 publications

References 36 publications

The Effect of Corporate Governance Mechanisms on Integrated Reporting: a Structural Equation Modelling (Sem) Approach

The Effect of Corporate Governance Mechanisms on Integrated Reporting: a Structural Equation Modelling (Sem) Approach

International scientific conference "New Challenges in Economic and Business Development – 2021: Post-Crisis Economy" : Proceedings

Board Characteristics and Integrated Reporting Strategy: Does Sustainability Committee Matter?

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