Lúcia Lima Rodrigues

Communication of corporate social responsibility by Portuguese banks

– The purpose of this paper is to ascertain whether Portuguese banks use their web sites as a medium to disclose social responsibility information and identify what types of this kind of information they disclose, and compare such disclosure with similar disclosure in annual reports., – Examines social responsibility information disclosure on the internet by Portuguese banks in 2004 and compares the internet and 2003 annual reports as disclosure media using content analysis., – Banks with a higher visibility among consumers seem to exhibit greater concern to improve the corporate image through social responsibility information disclosure. Results thus suggest that legitimacy theory may be an explanation of social responsibility disclosure by Portuguese banks., – The sample is small, although it is constituted by all the relevant Portuguese banks., – Contributes to the scarce literature on social responsibility disclosure by financial institutions. A proxy for public visibility of banks which has not been previously used is proposed in this study.

Firm‐specific determinants of intangibles reporting: evidence from the Portuguese stock market

Purpose – This paper seeks to identify factors that influence the voluntary disclosure of intangibles information in annual reports of Portuguese listed companies.Design/methodology/approach – An index of the voluntary disclosure of intangibles is constructed based on analysis of the Management Report and Chairmans Letter of all 56 companies listed on Euronext Lisbon at 31 December 2003. Several hypotheses about associations between that index and eight firm‐specific variables are tested.Findings – The voluntary reporting of intangibles is found to be influenced significantly by size, ownership concentration, type of auditor, industry and listing status in univariate analysis; and by size, industry, type of auditor, and ownership concentration (and listing status to a lesser extent) in multivariate analyses.Research limitations/implications – This study focuses on annual reports only, and is cross‐sectional. The use of content analysis and the subjective judgment involved in constructing the index cannot...

Measuring Convergence of National Accounting Standards with International Financial Reporting Standards

Abstract This paper analyses three methods for measuring the success achieved in effecting convergence between any two sets of accounting standards. We begin by reviewing a measurement method based on the concept of Euclidean distances. We then propose two better measures (involving Jaccard’s coefficients and Spearman’s coefficients) to assess the progress of National Accounting Standards setting bodies in converging their standards with International Financial Reporting Standards [IFRS]. For illustrative purposes, we measure the convergence of National Accounting Standards in Portugal with International Accounting Standards [IAS] and IFRS over the period 1977–2003.

Risk-related disclosures by non-finance companies: Portuguese practices and disclosure characteristics

Purpose - The purpose of this paper is to assess the risk-related disclosure (RRD) practices in annual reports for 2005 Portuguese companies in the non-finance sector. Design/methodology/approach - The paper conducts a content analysis of a sample of 81 companies (42 listed and 39 unlisted). In considering corporate governance effects, the sample is reduced to the 42 listed companies that are required to disclose a corporate governance report. Findings - Implementation of IAS/IFRS and the European Unions Modernisation Directive in 2005 did not affect the quantity and quality of RRD positively. Disclosures are generic, qualitative and backward-looking. Public visibility (as assessed by size and environmental sensitivity) is a crucial influence in explaining RRD: companies appear to manage their reputation through disclosure of risk-related information. Agency costs associated with leverage are important influences also. In listed companies, the presence of independent directors improves the level of RRD. Research limitations/implications - Content analysis does not allow readily for in-depth qualitative inquiry. The coding instrument is subject to coder bias. Information about risk can be provided in sources other than annual reports. The study is confined to one year/one country and pre-dates the global financial crisis (GFC) (2008) and the implementation of IFRS 7 (2007). Originality/value - The results point to the desirability of enhancing accountability by mandating further disclosure of substantive and relevant risk-related information in company annual reports. The RRD observed are shown to be explained by a confluence of agency theory, legitimacy theory and resources-based perspectives.

Accounting change in central government: The adoption of double entry bookkeeping at the Portuguese Royal Treasury (1761)

Purpose - The purpose of this paper is to look at the adoption of double entry bookkeeping at the Royal Treasury, Portugal, on its establishment in 1761 and the factors contributing to this development. The Royal Treasury was the first central government organization in Portugal to adopt double entry bookkeeping and was a crucial first step in the institutionalisation of the technique in Portuguese public administration. Design/methodology/approach - Set firmly in the archive, this paper adopts new institutional sociology (NIS) to inform the findings of the local, time-specific accounting policy and practice at the Portuguese Royal Treasury. Findings - Embedded within the broader European context, this study identifies the key pressures exerted upon the Royal Treasury on its formation in 1761, which resulted in major accounting change within Portuguese central government from that date. The study provides further evidence of the importance of the state in the institutionalization of accounting practices by means of coercive pressures and highlights for Portugal the importance of individual actors who, as powerful change agents, made key decisions that influenced accounting change. Originality/value - This study examines a major instance of accounting change in European central government and broadens the application of NIS in accounting history research to a different country – Portugal – and to a different time – the eighteenth century. It also serves to illuminate the difficulties of collecting pertinent evidence pertaining to this long-dated time period in identifying certain forms of institutional pressures.

Risk reporting practices by companies in the non finance sector: evidence from Portugal

Purpose - The purpose of this paper is to assess the risk-related disclosure (RRD) practices in annual reports for 2005 Portuguese companies in the non-finance sector. Design/methodology/approach - The paper conducts a content analysis of a sample of 81 companies (42 listed and 39 unlisted). In considering corporate governance effects, the sample is reduced to the 42 listed companies that are required to disclose a corporate governance report. Findings - Implementation of IAS/IFRS and the European Unions Modernisation Directive in 2005 did not affect the quantity and quality of RRD positively. Disclosures are generic, qualitative and backward-looking. Public visibility (as assessed by size and environmental sensitivity) is a crucial influence in explaining RRD: companies appear to manage their reputation through disclosure of risk-related information. Agency costs associated with leverage are important influences also. In listed companies, the presence of independent directors improves the level of RRD. Research limitations/implications - Content analysis does not allow readily for in-depth qualitative inquiry. The coding instrument is subject to coder bias. Information about risk can be provided in sources other than annual reports. The study is confined to one year/one country and pre-dates the global financial crisis (GFC) (2008) and the implementation of IFRS 7 (2007). Originality/value - The results point to the desirability of enhancing accountability by mandating further disclosure of substantive and relevant risk-related information in company annual reports. The RRD observed are shown to be explained by a confluence of agency theory, legitimacy theory and resources-based perspectives.

The preparedness of companies to adopt International Financial Reporting Standards: Portuguese evidence

Abstract This paper uses ordinal regression, structural equation modelling, and multivariate analysis techniques to investigate the preparedness to adopt IFRS that was exhibited by listed Portuguese companies in August 2003. We find the level of preparedness was significantly associated with company size, commercial internationalization, audit by a ‘Big 4’ accounting firm, and profitability. Our findings will help to indicate the pre-conditions that are likely to spur lagging companies (and countries) to prepare to implement IFRS.

Intellectual capital reporting in sustainability reports

Purpose – The purpose of this paper is to analyse voluntary disclosures of intellectual capital (IC) items in the sustainability reports of Portuguese companies. The paper aims to highlight the level, pattern and determinants of IC disclosures in those sustainability reports; and the potential for sustainability reports to be a medium for IC disclosures.Design/methodology/approach – An index of voluntary disclosure of intangibles is constructed and deployed to analyse IC disclosures in the sustainability reports for 2006 of Portuguese firms, published on the web site of the Portugals Business Council for Sustainability Development. Four hypotheses are tested about associations between that disclosure index and firm‐specific variables.Findings – Disclosure of information about IC is more likely in sustainability reports of firms that have a higher level of application of the Global Reporting Initiative framework, and are listed companies.Research limitations/implications – This study is cross‐sectional. S...

Exploring the dimensions of the international accounting history community

This study explores the present-day dimensions of the international accounting history community with a focus on examining the formal (that is institutionalized) and informal (that is non-institutionalized) arrangements for accounting history in various countries and regions. Following a review of recent commentaries on the state of accounting history, the study elucidates the dimensions of the field where accounting history associations or special interest groups operate, comprising Australia and New Zealand, China, Italy, Japan, Portugal, Spain and the USA, and also depicts the informal arrangements in place for the accounting history community as identified in France and in the UK. The study is intended to enhance understanding of the nature, size and dynamics of this expanding group of scholars and to assist any future enquiries into the drivers of organizational success and the relative health of accounting history in the different jurisdictions.

Voluntary risk reporting to enhance institutional and organizational legitimacy : evidence from Portuguese banks

Purpose - This paper aims to explore the factors that affected the voluntary risk-related disclosures (RRD) in the individual annual reports for 2006 of Portuguese banks. It also explores the extent to which those reports conformed to Basel II requirements in terms of the voluntary disclosure of operational risk and capital structure and adequacy matters. Design/methodology/approach - The authors conduct a content analysis of the annual reports of a sample of 111 banks. Voluntary operational risk and capital structure and adequacy disclosures were assessed using a list of disclosure categories that were developed from the Third Pillar disclosure requirements of the Basel II Accord. Findings - Stakeholder monitoring and corporation reputation are crucial factors that explain the risk reporting practices observed. Voluntary risk reporting appears to enhance legitimacy for two major reasons: first, by fulfilling institutional pressures to assure the effectiveness of market discipline; and second, by managing stakeholder perception of a corporations reputation. Originality/value - The voluntary RRD observed are shown to be explained by legitimacy theory and resources-based perspectives. This theoretical framework has not been tested hitherto in explaining the motives for banks to make voluntary RRD.