This study examines the effect of information technology on corporatefinancialreporting in Nigerian Banking Sector. The study employed correlation survey research design to investigate the relationship between information technology and corporatefinancialreporting. One hundred questionnaires distributed to staff of Zenith Bank Nigeria Plc were analysed using coefficient of correlation, while the two hypotheses were tested for significance using the t- test. The result revealed that information technology is critical in ensuring the credibility of corporatefinancial reports. The main recommendations include that management of banks should invest in modern information technology in the interest of the banking public and the shareholders; and that the regulatory authorities especially the Central Bank of Nigeria (CBN) should stipulate minimum standards of information technology infrastructure for banks so as to avoid making Nigerian Banking Sector a dumping ground for outdated technological infrastructures.
Annual report disclosure may be either mandatory or voluntary. Mandatory disclosure may arise from a number of sources, such as stock exchange listing requirements, professional promulgations, and statutes. Voluntary disclosure represents disclosure in excess of mandatory disclosure, and in efficient markets is likely to be provided where the marginal benefits to the provider exceed the marginal costs. Disclosure may also be in quantitative (either in dollars or other units of measure) or qualitative form. Relatively few disclosure studies explicitly define what attribute of the dependent variable, disclosure, is being measured, and fewer still adequately reconcile the variable under study with its measurement. For instance, McNally et al. (1982) fail to reconcile the ‘quality’ of corporate disclosure practices with their measurement of the ‘extent’ of disclosure. As Buzby (1975, p. 30) states, “extent of disclosure is not synonymous with adequacy of disclosure”, therefore measurement based on ‘extent’ “... cannot be taken as a measure of the overall quality in annual reports”. A notable exception appears to be Wallace and Naser (1995) who, based on a review of the literature, identify five key aspects of ‘quality’ of disclosure: (1) adequate for a defined purpose; (2) informative; (3) timely; (4) understandable/readable; and (5) comprehensive. In their study, the researchers adopted ‘comprehensiveness’ of disclosure as the dependent variable, and proceeded to construct a specific measure of comprehensiveness. This leads to a second and compounding problem with existing research: few studies acknowledge that the underlying variable is not amenable to measurement (Marston and Shrives, 1991). Again, Wallace and Naser (1995, p. 326) are an exception: “Financial disclosure is an abstract concept which cannot be measured directly. It does not posses inherent characteristics by which one can determine its intensity or quality like the capacity of an automobile”.
McNalley, G.M; Lee, H.E and Hasseldine, R. (1982). CorporateFinancialReporting in New Zealand: An analysis of User Preferences, Corporate Characteristics and Disclosure practices for Discretionary Information, Journal of Accounting and Business Research. 13, 11 – 20.
The major role of financial information disclosure is the effective transfer of financial data to people who are outside the organization in a way that is valid and timely (Bolo and Hosseini 2007; Salehi and Azary, 2008). One of the most important goals of corporatefinancial disclosure level, which is to provide necessary data to evaluate the function of economic agencies and its ability to make profits (Salehi and Abedini, 2008). The necessary condition to achieve this is to provide financial data in such a way that the evaluation of the previous functions becomes possible and effective in measuring the ability to make profits and in predicting future activities of economic agencies (Talebnia et al., 2011). Considering the importance of high level of financial information disclosure on improving the functional economic agencies, previous studies suggest that higher-level financial information disclosure can promote economic development and to attract foreign capital (Bushman and Smith, 2001; Aggarwal, 2005; Lambert et al., 2007; Albu et al., 2014). Institutional investors (local and foreign) are doubtful in capitalizing in emerging nations due to lack of transparency and lack of acceptance with internationally recognized reporting standards. Emerging nations such as Iran in need of external finance from both private and institutional sources in order to increase domestic growth and economic well- being has been under pressure to improve the level of corporatefinancialreporting (Ali et al., 2004; Khani and Rodbari, 2013).
key risks   . While sustainability reporting is presently voluntary, there is an increasing trend to comply with United Nations sponsored initiatives to implement Sustainable Development Goals (SDGs). According to Vann and White  sustainability reporting is a logical extension of corporatefinancialreporting which is not surprising since accounting, the bedrock of financialreporting, has been billed the language of business, and plays an important role as that language evolves to include information and responsibility beyond the purely financial report . Eccles  asserts that stakeholders now demand that accountants must create transparent reports that provide accurate and reliable data, as well as a fair picture of overall performance, many companies are now reporting results across the “triple bottom line” of economic, environmental and social performance. Despite the growing practice of sustainability reporting, universities have not kept pace. Described as generators of knowledge and technology, universities are meant to provide new knowledge, to change paradigms, to aid society in its development and in meeting new challenges .
The corporate regulation landscape comprises various a range of regulatory systems. The prominent systems amongst these are statutory regulation, co-regulation, and self-regulation. Statutory regulation refers to necessary rules, monitoring compliance and enforcement of these actions by imposing sanctions (Rahim 2013). Palzer and Scheuer (2003, p. 27) noted that the implementation of these rules is the responsibility of government. By contrast, Black (1996, p. 27) defined self-regulation as “the situation of a group of persons or bodies, acting together, performing a regulatory function in respect of themselves and others who accept their authority”. With self- regulation, private parties, such as the industries, the busi- ness itself, providers, and producers among others take responsibility for implementation. In the case of self- regulation governments do not normally interfere and private parties monitor compliance (Rahim 2013). In line with this, Palzer and Scheuer (2003) highlighted that self- regulation may take the form of qualitative or technical standards potentially associated with a code of conduct describing what is good and bad practice. These codes may involve rules on the structure of the relevant com- plaints bodies and on out-of-court mediation. Finally, co- regulation has been defined as an intermediate interaction between government and businesses (Palzer and Scheuer 2003). A co-regulatory system combines the elements of both self-regulation and statutory regulation (Nakpodia et al. 2016). Depending on the actual combination of statutory regulation and self-regulation elements, co-regulation can take different forms of regulatory strategy (Rahim 2013). Government lays down the legal basis to start the function- ing of the system, businesses then formulate rules which depict its functioning (Rahim 2013). All these types of regu- lations have different effects on the CSR practices, espe- cially listed companies that are required to maintain regular disclosures of performance.
will drastically alter the ownership structure of Nigerian banks, making it more widespread and better diversified. Some recent studies were also reported to have attempted to explore the issue of corporate governance in banking organizations. Das and Ghosh (2004) stated that the corporate governance features of newly privatized firms in Asia had been examined and documentation how their ownership structure evolves after privatization made. The results, they claimed suggested that, on the one hand, privatization leads to a significant improvement in profitability, while, on the other hand, it creates value for shareholders. It was also purported that evidence was presented on corporate governance and firm profitability from Korea before the economic crisis which showed that “the weak corporate governance system offered few obstacles against controlling shareholders expropriation of minority shareholders (Inam, 2006). In fact, weak corporate governance systems allowed poorly managed firms to stay in business and resulted in inefficiency of resource allocation, despite low profitability over the years (Das and Ghosh, 2004).
Several measures were taken to bring the country back on the track of economic progress. Tax rates were reduced, interest rates were liberalised, moderate wage policies were adopted and trade reforms were set in place to promote export- oriented industries and the tourism sector (Joseph and Troester, 2013). These measures were successful. The tourism sector boosted the economy with gross tourism receipts increasing from $42 million to $244 million between the years 1980-1990 (Sacerdoti et al. 2005). The manufacturing sector continued to flourish which helped to reduce unemployment to 2.7% by 1992. The country continued to economically diversify and in the early 1990’s an offshore banking sector and a stock exchange were established. In 2000 there was the end of two trade agreements which guaranteed preferential access of Mauritian products to the USA and Europe. Several textile firms closed their doors or relocated to other parts of Sub Saharan Africa to take advantage of AGOA (African Growth and Opportunity Act) opportunities and cheap labour which caused the unemployment rate to increase. Meanwhile, other sectors like financial intermediation and tourism prospered to mitigate the downturn in the sugar and textile sectors. Progressing in its phase of economic diversification, two new pillars emerged; Information and Communication Technologies (ICT) and Sea Food production. Sobhee (2009) attributes the country’s resilience against external shocks to successful economic diversification.
Empirical data were gathered from companies with complete GRI database reports that are in full G3.1 or G4 SP compliance to look at extent of reporting. The main body of these reports gave standard disclosures of six performance indicators. Companies included were part of various industries, including those whose data was provided to GRI from their data Partners. SP reports were compared to collected SP documents and further reviewed to select only those that used a third-party review. The final selection of industries used are all larger firms within the S&P 500® Index. Surveys distributed appropriate representatives from the following group of companies show the extent of reporting.
In this chapter, the institutional setting of this study, that is the relationship between business and politics, corporate governance and the Malaysian reporting environment, has been discussed. The inheritance of the colonial state by nationalist elites in the era of post-war decolonisation raises some important implications for the sociology of postcolonial societies, as shown by the case of Malaysia. It is well documented that one of the British legacies in Malaysia is the distinct ethnic divisions in the country, where ethnic groups had been divided into specific employment areas to faci litate British administration. These divisions have not only affected the formation of the state and its policy agenda but have drawn the state into the role of mediating and managing inter-ethnic tensions arising from competition amongst major ethnic groups for economic resources and political power. What is known as "affirmative action" in other countries (referring to corrective measures taken to reduce discrimination and ensure proportional representation of the underprivileged ethnic groups) has taken the form of "preferential policies" or "special rights" in Malaysia. In implementing the policies (for example the ISIIEOI, NEP, NDP) business and politics have not been separated. As an emerging economy, seeking investments or funds from outside the country is necessary to the Malaysian economy. For this purpose, the western idea of corporate transparency is seen as important for application by Malaysian companies. Further, following the global economic crisis, better corporate governance standards have been emphasised all over the world, i ncluding Malaysia. If Malaysia wishes to be part of the global market, it must further enhance corporate governance and bring its standards to the highest level possible. However, the existence of political influence in the Malaysian firms is seen as an issue.
Cadbury was followed in the UK by further studies, namely those produced by Sir Richard Greenbury, Sir Ronald Hampel, and latterly by Derek Higgs. Each of these reports built on the recommendations of Cadbury with a view to enhancing the confidence shareholders might hold in the management which was charged with controlling and directing enterprises on their behalf. Greenbury focused on the introduction of remuneration committees following 'public disquiet with the unprecedented pay increases which senior executives in the privatised utilities paid to themselves' (Clarke, 1998). Hampel continued by focusing on the implementation of the previous two reports, and recommended that non-executive directors should make up at least one third of the membership of any board (Hampel, 1998). Higgs reviewed the roles and effectiveness of non-executive directors (Higgs, 2003) and made further recommendations for the Combined Code (now the UK Corporate Governance Code, published by the FinancialReporting Council), going as far as to suggest that non-executive directors should make up at least half of any board. Business outside of the UK was also not immune to poor and often fraudulent management being carried out in the name of shareholders; in the USA, Enron, Tyco and WorldCom were high profile corporate scandals. US legislators took a different but perhaps complementary approach to tightening governance with instruments such as the Sarbanes-Oxley Act of 2002 which laid down new standards of transparency for publicly quoted companies in the United States. Sarbanes-Oxley contained mandatory obligations which companies needed to adhere to, whilst the Cadbury approach was perhaps more understated in a British way, asking companies to comply with the Cadbury recommendations or explain why they had not done so.
We provide new empirical evidence on management’s behavioral response to SOX regulations. We show an increase in the number of restatements despite the negative return association with such events. During the same period, earnings management trends, as measured inversely by median absolute total accruals, are on a decline. Thus, adjusting for the earnings management environment, the increase in restatement is especially notable because the inherent for restatements is positively associated with overall earnings management trends. These results suggest that cost-effective, efficient and scalable regulations such as SOX can create a sound and safe environment for public companies to achieve their sustainable performance, reduce earnings management opportunities, improve accuracy and reliability of financial reports and restore investor confidence. Our results have policy, practical and educational implications by suggesting that: (1) regulatory reforms that are proactive, cost-effective, efficient and scalable can improve corporate governance effectiveness, promote sound managerial decisions and actions, and strengthen the quality of financial and audit reports and thus reduce financial scandals and fraud; (2) market correction mechanisms of rewarding sustainable public companies and penalizing underperformed companies can be effective in a long-term and supplement regulatory measures; and (3) the development of the corporate culture of integrity and competency in promoting sustainable financial and non-financial performance is the key to sustainability and log-term success of public companies.
experimentation with organizations that have identified a need for externalities data to support their internal decision-making. In addition, externalities accounts have been critical in articulating and negotiating arenas where responsibility and accountability demands are being considered. It should not be surprising that many of these experiments have focused on biodiversity assets (such as forests and natural capital more broadly) as well as carbon emissions, as these are two areas where the impacts of long-term, large-scale lack of internalization of externalities are starting to be felt. Concerns with social externalities articulated via health impacts of activities, as well as impacts of corporate actions on society more broadly, have also been evident in these various experiments. There are, however, larger considerations that emerge from such experiments. In particular, and in comparison with short-term financially-focused decision-making, the considerable added complexity from dynamic and interacting social, environmental and economic impacts makes it imperative for context-specific information to be incorporated into sustainability decision-making, and therefore into meaningful disclosures of externalities in corporatereporting. As indicated by the NCC, this creates a tension with any drive for standardization of externalities metrics. However, lack of such standardization hinders the development of externalities reporting metrics that are comparable between organizations (a qualitative characteristic required in reporting frameworks discussed in section 3). In the words of one interviewee for this study:
CorporateReporting is the process of communicating the financial as well as non-financial information by the company to the stakeholders. The process contains the mirror of the company showing true and fair view of its face which is known as corporate information. This corporate information is of paramount importance to the stakeholders as their rational decisions are based on it. But it is usually seen that most of the times this information lacks in the qualitative department. There are certain qualitative characteristics which seems absent in these corporate information making it less qualitative, less reliable and irrelevant. In this article various qualitative characteristics are discussed which are essential to any corporate information. The data is of secondary nature.
Accounting and Reporting: All the Board Members and Officers in top Management of the Company are expected to follow the Company‟s Accounting Policies. All accounting records should accurately reflect and describe Business transactions. The recordation of such data must not be falsified or altered in any way to conceal or distort assets, liabilities, revenues, expenses or the nature of the activity. All public disclosures made by the Company, including disclosures in reports and documents filed with or submitted to the Statutory Authorities shall be accurate and complete in all material respects. All the Board Members & officers in senior Management are expected to carefully consider all inquiries from the company related to the disclosure requirements and promptly supply complete and accurate responses.
Relationship between the internal audit function and enterprise risk management: IAF was found to have a positive, weak and insignificant relationship with ERM. This implies that the presence or absence of an internal audit function has very little and insignificant influence on the success or failure of the ERM process within an organization. This is consistent with the findings made by Dickinson (2010) who however goes further to assert that IA must maintain a degree of independence within the organization to ensure that “…they are in a position to critically assess the effectiveness of risk management and the adequacy of the control environment”. Regardless of whether ERM and internal audit operate as distinct and separate units, or are closely aligned, it is imperative that they leverage off each other, continually developing knowledge of the environments in which they operate. The two must work within the same risk management framework and conduct dialogue to continually question and engage each other’s perspective of the nature and severity of the risk profile. It is important that the IAF plays both a monitoring and participative role in ensuring that the risks the organization is exposed to are sufficiently mitigated. IA also checks on compliance to best practice in mitigating identified risks. IA and ERM also play complementing roles in the corporate governance processes of a university. In actual fact, IA is an inherent component or construct of ERM. No effective ERM effort can be implemented without roping in the eagle eye of internal audit. Dickinson (2010) also concludes his findings by saying that there are circumstances where the two functions of internal audit and ERM do not operate effectively. This happens when management dictates to internal audit in order to divert attention away from high risk areas. Resultantly this is why some organizations have enabling reporting structures that allow for IA to operate independently and for reporting channels that allow direct communication to the audit committee.
The distinction between users based on their approach to processing financial data foregrounds debate over the format and delivery of the financialreporting package, and in particular whether it is possible to satisfy both groups’ information needs through a single reporting model. The emerging view is that digitally sophisticated users require a different approach to preparing and delivering financial information that emphasizes the ability to access content flexibly and at low cost. While IASB staff argue that advances in technology are unlikely to eliminate the need to access information contained in financial statements through traditional sources such as paper or PDF (at least in the near term), they acknowledge that these formats may not continue as the predominant means of providing and reportingfinancial information (IASB 2018b, para. 25). The role, format and future of the annual report is at the centre of this
financial performance. According to Lopez, Garcia and Rodriguez, changes in management practices and disclosure should reflect in the profit and loss statement, produced by an increase in business volume, implying an increase in assets only in those companies which have adopted sustainable practices . Epps and Cereola stated that the operating performance of a business organization can be measured using Return on Asset (ROA) which shows the amount of earnings generated from the resources owned by them . According to Gozali et al, results linking profitability to ethical behavior are mixed . Buys, Oberholzer and Andrikopoulos found that the economic performances of companies that voluntarily submit sustainability reports are better than those who do not support Global Reporting Initiatives (GRI) sustainability reporting guidelines. Accounting based studies appear to have a stronger positive link between sustainability reporting and financial performance than market based ones . According to Gregory, Tharyan and Whittaker, this may be due to the inefficiency of stock markets or because accounting measures do not sufficiently account for risk . A study of 60 manufacturing firms in Nigeria using Return on Total Assets (ROTA) as measure of performance showed a significant relationship between community development (CD) and performance., the result revealed a statistically significant relationship (at 5 percent level) between CD and ROA . On the contrary, Eccles et al examined the impact of corporate sustainability on organizational processes and performance using ROA as proxy for financial performance . Their outcome shows that the coefficients sustainability on ROA is insignificant, howbeit positive. This corroborates most previous arguments that engagement in sustainability may likely not lead to significant increase in financial performance.
To succeed in the business world, organisations must provide to their investors and host communities, evidence of reliable and credible efforts to ensure their safety in the light of their operations. This study aimed at ascertaining to what extent and effect corporate social responsibility reporting has had on the performance of Nigerian Breweries Plc. Descriptive research design was adopted in conducting the study. A sample of 355 respondents drawn the staff of Nigerian Breweries Plc and using content analysis of the financial statement of Nigerian Breweries Plc in comparism with three purposefully selected Nigerian banks namely First Bank Plc, United Bank for Africa and Fidelity Bank Plc and structured questionnaires designed to seek information on the effect of corporate social responsibility reporting on performance of corporate organisations, the study made use of the t-test statistics at 5% level of significance to analyse data collected for the study. Findings from the study show that Nigerian Breweries Plc has not significantly disclosed her social responsibility accounting information as contained in the Annual Reports and Accounts of Nigerian Breweries Plc 2014-2017 as compared to other companies in Nigeria. However, it was discovered that the corporate social responsibility reports of Nigerian Breweries Plc has enhanced the financial performance of the company comparatively. This goes to imply that Nigerian Breweries Plc performance is positively influenced by its social responsibility culture. The study therefore recommends that Nigerian Breweries Plc as well as other Nigerian manufacturing companies should put in more efforts towards improving the lot of their stakeholders through adequate disclosure of corporate social responsibility information in their annual reports and accounts. It is recommended that management of Nigerian Breweries Plc should streamline its corporate social responsibilities on activities that will improve the company’s image and as well enhance the financial performance of the company.
This research aims to provide empirical evidence about the effect of corporate governance (CG) reform on the financialreporting quality (FRQ). Using a sample of non-financial firms listed at Saudi stock market (TADAWAL), Abu Dhabi securities market (ADX) and Qatar stock market the study investigated the trend of the quality of the financialreporting at theses stock markets before and after corporate governance reforms that applied to the listed firms. This study adopts the working capital accruals quality as a measurement of the financialreporting quality that can determine the level of the efficiency and the effectiveness of the promoted reform of corporate governance. Panel data method was applied to McNicholas model (2002) to calculate firms FRQ. Independent sample t-test was performed to investigate the trend of the FRQ in the selected countries and to examine the significance degree of the differences between the means for the periods before and after the applied corporate governance reform. The result shows that the applied corporate governance reform was efficient and the FRQ improved for the era after corporate governance reform in the Middle East stock markets. In addition the result shows the level of the similarities and the variations between the stock market in Middle East region.