Greg Tower

Corporate Communication of Financial Risk

This study provides insights on the Financial Risk Management Disclosure (FRMD) patterns of Australian listed resource companies for the 2002–2006 period leading up to and immediately following adoption of the International Financial Reporting Standards (IFRS). Regression analysis demonstrates that corporate governance and capital raisings of firms are significant and positively associated with FRMD patterns. In contrast, overseas stock exchange listing of firms is significantly negatively associated with FRMD patterns. The findings show that the introduction of IFRS changes corporation’s willingness to communicate risk information.

Corporate communication for Vietnamese listed firms

Purpose - The purpose of this paper is to investigate the impact of independent directors and ownership structure on voluntary disclosures of Vietnamese listed firms. Design/methodology/approach - Year-ending 2008 annual report disclosures of 45 Vietnamese listed firms are analyzed. Voluntary disclosure is measured using a Vietnamese Disclosure Index adapted from prior literature. Descriptive and inferential statistics ( Findings - The results indicate that the level of voluntary disclosure among Vietnamese listed firms is relatively low (24.23 per cent). There are higher levels of disclosure relating to director and senior management details but far lower in regards to social issues. State ownership and managerial ownership are negatively and positively related to the extent of voluntary disclosure respectively. Moreover, bigger firms are found to be positively associated with voluntary disclosure. Research limitations/implications - The results of this study are limited to one year – 2008 – and thus, could be biased as disclosures can change over time. Practical implications - Vietnamese regulators should focus on strengthening the regulations governing the level of corporate communication in firms with high state ownership as well as encouraging more disclosure of non-financial information to strengthen its market information transparency. Originality/value - This study is one of the first examining the level of corporate voluntary disclosure practices among Vietnamese listed firms. Evidence from this study extends the existing voluntary disclosure literature on emerging economies whilst providing valuable insights to Vietnamese policy makers in the process of developing and improving its financial reporting regulatory framework.

Is communicating intellectual capital information via the internet viable

Purpose – The first objective of this study is to examine the nature and extent of intellectual capital (IC) information Australian hospitals disclose to their stakeholders (patients, general public, healthcare professionals) via the internet. The second objective is to examine whether four hospital characteristics influence the disclosure of IC‐related information.Design/methodology/approach – Analysis reported in this study is based on IC disclosures by 128 hospitals on their internet web sites. IC disclosure is measured using an 85‐item research constructed index that covers six major sub‐categories. Measurement of IC disclosure was conducted during a four month period in the last third of 2005.Findings – It is found that whilst the incidence rate of hospitals disclosing IC information is high, the extent of IC disclosure is relatively low. The quantity of IC disclosure varied significantly between different IC sub‐categories. In addition, the paper investigates possible determinants of variations in I...

Corporate governance determinants on Australian resource companies' financial instrument disclosure practices

Purpose - This paper seeks to investigate the corporate governance determinants of financial instrument disclosure (FID) practices of Australian listed resource firms in their annual reports for the 2005 financial year. This is an important time period to explain FID patterns for Australian resource companies leading up to formal adoption of the Australian equivalents to the International Financial Reporting Standards (IFRS). Design/methodology/approach - The extent of FID was measured using a Financial Instrument Disclosure Index (FIDI) comprised of 120 items of both mandatory and discretionary financial instrument information. Hypothesis testing used empirical data from a representative sample of Australian listed resource firms. Research limitations/implications - The results of regression analysis demonstrate that corporate governance characteristics of firms are significant determinants of FID patterns. Univariate and multivariate results showed that FIDs were significantly and positively associated with strength of corporate governance structure and the control variables – leverage, firm size and industry. Originality/value - This paper contributes to an emerging paradigm that emphasises the link between firms governance structures and their disclosure responses to financial instruments and in particular, financial derivatives.

The effect of privatisation on performance of state-owned-enterprises in Indonesia

Purpose - The purpose of this paper is to investigate whether partially privatised state-owned-enterprises (SOEs) perform significantly better than fully SOEs in the developing country of Indonesia. Design/methodology/approach - This study uses a data set of 157 SOEs in Indonesia for the year 2006 to examine the issue of ownership structure and its performance. Findings - Statistical analysis supports the hypothesis that SOEs with private sector ownership have higher levels of performance than those fully owned by the government. There are also significant differences in financial leverage, firm size, assets-in-place, financial statement reliability, and industry variances between fully privatised and partially privatised SOEs. Originality/value - These findings support the Indonesian Government move towards further privatisation in that SOEs with at least some private sector ownership have greater performance levels.

Indonesia's low concern for labor issues

Purpose – This study aims to advance explanations of the communication level of labor disclosures of Indonesian listed companies.Design/methodology/approach – Year‐ending 2007 Annual report disclosures of 223 Indonesia Stock Exchange (IDX) listed companies are analyzed. The labor practices and decent work disclosure component of the 2006 Global Reporting Initiative (GRI) guidelines are used as the benchmark disclosure index checklist.Findings – The results show a low level of voluntary disclosure (17.7 per cent). The highest level of communication is for issues related to skills management and lifelong learning programs for employees. Very few companies disclosed information about health and safety committee and agreements, and salary of men to women. Statistical analysis reveals that government ownership and international operations are positively significant predictors of “labour” communication. Isomorphic institutional theory partially explains the variability of these disclosures. Bigger companies als...

The influence of international taxation structures on corporate financial disclosure patterns

Abstract This paper investigates the extent of financial instrument disclosures (FIDs) within the annual reports of Australian listed extractive resource companies over a 4-year longitudinal period (2003–2006) and its association with international tax characteristics. Statistical analysis shows that thin capitalisation structures and withholding taxes are positively and significantly associated with disclosure patterns. In contrast, the occurrence of foreign sourced income and tax haven links are significantly negatively associated with FID patterns. These findings demonstrate that international tax structures can influence corporate disclosure patterns. This paper contributes to an understanding of the extent, trends and rationale behind resource firms’ financial instrument disclosure practices in Australia.

Measurement vs. disclosure of accounting compliance in Indonesia

This study examines Indonesian Accounting Regulatory Compliance measurement (IARCm) and Indonesian Accounting Regulatory Compliance disclosure (IARCd) through an agency theory-based analysis of 220 Indonesian listed companies 2006 annual reports. To measure the level of regulatory compliance of Indonesian listed companies, this study uses a 29 item index derived from Indonesian accounting standards on inventory, fixed assets and depreciation. Analysis reveals a moderate level of 69.70% measurement and 54.20% disclosure compliance with accounting rules. Statistical analysis shows that firm size is the best predictor of compliance. Surprisingly, corporate governance factors fail to explain compliance. However, more profitable firms do demonstrate increased measurement compliance. Although Indonesian firms may have complied with more than 50% of the key accounting rule provisions, regulatory intervention is still strongly advocated for making Indonesian firms fully comply with Indonesian accounting regulations.

Insights on the diversity of financial ratios communication

Purpose - This paper aims to examine the extent of financial ratio communication from an agency theory perspective. Design/methodology/approach - An empirical positivist approach is utilised to explore the predictors of disclosure within the 2007 annual reports of 300 Australian listed companies. Findings - Overall, the extent of financial ratio disclosures is very low (5.3 per cent) with more extensive disclosures within the sub-categories of share market measure, profitability and capital structure. A far lower liquidity and cash flow ratio information is reported. Larger firms with more dispersed share ownership provide more extensive financial ratio information than the others. Further, profit-making firms and Big4 clients exhibit more extensive financial ratio disclosures. Resources firms present significantly lower incidents of financial ratio than the financials and services sector. Corporate governance and capital management initiatives do not have predictive properties. Originality/value - Financial ratio disclosure, although important, is under-researched. A comprehensive set of predictors are investigated. The findings highlight the need for Australian regulators to consider more explicit guidelines or mandatory requirements.

Communicating key labor issues in a global context

Purpose – The purpose of this study is to explore explanation factors regarding labor communication practices by many of the worlds large companies.Design/methodology/approach – The data collection focuses on the 2009 fiscal year sourced from 460 highly visible public companies in 57 separate countries. A total of 14 Global Reporting Initiative (GRI) items are used as the benchmark of labor disclosure checklist.Findings – The authors results provide evidence that the overall level of labor‐style communication is 66.4 percent. Companies in emerging market jurisdictions have the highest labor disclosure communication. Employment information is the most frequently disclosed set of items. Lesser communication is noted for training and education, and diversity and equal opportunity issues. Statistical analysis indicates that political visibility, jurisdictional, creditor pressure, and corporate governance variables are directly related to labor communication.Research limitations/implications – This study ass...