Reliable financial information, which is usually derived from quantitative research, is crucial for management decision-making. However, in order to apply this result appropriately in the management ...decision-making process, it is important to be able to explain, interpret, and compare it against the established criteria. Therefore, it is appropriate to establish a financial information system within the company and build a suitable pool of information. This article explores the requirements for financial information, the process of establishing the financial information system, the primary indicators of the financial information pool, and the criteria for evaluating them in the context of management decisions. The analysis of the scientific literature has led to identification of six requirements for the quality of financial information and four dimensions of financial information. The interaction among these aspects provides the prerequisites for developing high-quality financial information system. It was also observed that, in order to develop a financial information system, a company must accumulate an appropriate pool of information, prepare its own individual set of indicators, and establish their indicative values. Furthermore, it was noted that different indicators are used at each level of management within the financial information pool.
Priimant valdymo sprendimus ypatingai svarbu turėti patikimą finansinę informaciją, kuri dažniausiai yra kiekybinių tyrimų rezultatas. Tačiau, norint šį rezultatą tinkamai pritaikyti valdymo sprendimų priėmimo procese, svarbu mokėti jį paaiškinti, interpretuoti, palyginti su nustatytais kriterijais. Tam įmonėje tikslinga suformuoti finansinės informacijos sistemą ir joje sukaupti tinkamą informacijos fondą. Straipsnyje nagrinėjama finansinei informacijai keliami reikalavimai, finansinės informacijos sistemos formavimo eiga, finansinės informacijos fondo pagrindiniai rodikliai bei jų vertinimo kriterijai priimant valdymo sprendimus. Atlikus mokslinės literatūros analizę buvo išskirti šeši reikalavimai finansinės informacijos kokybei ir keturios finansinės informacijos dimensijos. Jų sąveika užtikrina kokybiškos finansinės informacijos sistemos formavimo prielaidas. Taip pat buvo nustatyta, kad, formuodama finansinės informacijos sistemą, įmonė turi sukaupti atitinkamą informacijos fondą, pasirengti savo individualų rodiklių rinkinį ir numatyti jų orientacines reikšmes. Atskleista, kad kiekviename valdymo lygyje yra naudojami skirtingi finansinės informacijos fondo rodikliai.
The implementation of the EU Directive on non‐financial information determines the transition from a voluntary to a mandatory disclosure setting. This paper is a first attempt to investigate if this ...transition influences the value relevance of non‐financial information, which relates to the environmental, social and governance disclosure (ESG) requirements of the Directive. Italy provides an interesting setting as non‐financial information was generally voluntary before the Directive, which was implemented with the Italian Legislative Decree 254/2016. To this extent, we examine the non‐financial, environmental and social disclosure practices of 231 Italian listed firms in the pre‐ (2016) and post‐ (2017) Legislative Decree application. Our results do not show any relevant increase of such disclosures after the Legislative Decree application, as Italian listed firms limit such disclosure to a minimum requirement. Further, this finding is confirmed also for those firms voluntarily providing a non‐financial report (sustainability or integrated report) before the Legislative Decree application. Our regression analysis shows that accounting numbers are associated with share prices, while non‐financial, environmental and social information are not value‐relevant with reference to the pre‐ and post‐Legislative Decree application. This means that the non‐financial, environmental and social information beyond the financial accounting information do not explain any incremental value‐relevant information to investors in the non‐financial mandatory disclosure setting required by the new regulation. Our results enrich previous evidence concerning the value relevance of non‐financial and ESG disclosure mainly focused on Anglo‐Saxon contexts.
Evaluating the determinants of environmental, social and governance (ESG) score is significant for topic for academics and regulators and companies. Despite its importance, little attention has been ...paid to non‐financial strategy disclosure and how to communicate non‐financial information. However, in the recent years, attention to the topic has considerably increased as demonstrated, in the European context, by the introduction of the non‐financial reporting directive in 2014. Therefore, it is important to analyse how the quantity and quality of disclosure influence the ESG score. To explore this relationship, a configurational analysis aimed at 31 Italian listed companies was studied by fuzzy‐set qualitative comparative analysis. The results showed that there were three path types driving the ESG score and that integrated reporting played a highly significant role in promoting a high ESG score. Specifically, we show the importance of assessing the combinations of quality and quantity disclosures for ESG score through configurational thinking. These results provide a first theoretical basis for the effectiveness of disclosure measurements on ESG score, charting the future direction for environmental management studies.
This study aims to learn about the role of financial information systems in the decision-making process of the economic enterprise by focusing on the various components (physical, software, ...organizational and human) of financial information systems. In order to reach a conclusion in this study, a target sample consisting of 35 Sami executives and executives was selected at the Sonelgaz company in Tamanrasset, and found that there is no statistically significant impact of the effectiveness of financial information systems in assisting decision-making through the requirements of financial information systems, This indicates that the requirement factor for financial information systems alone is insufficient to achieve the effectiveness of financial information systems and thus contribute to decision-making financial information systems, there are other factors that can contribute to the effectiveness of financial information systems.
This study investigates the varying levels of financial and non-financial information disclosure among firms in the European Union, specifically focusing on the Frankfurt Stock Exchange (FSE) and ...Bucharest Stock Exchange (BSE). The research uses comprehensive datasets to evaluate the extent and quality of disclosures, assessing their compliance with EU directives and international standards. The analysis incorporates a quantitative method to provide a nuanced understanding of disclosure practices. Key findings highlight significant disparities in disclosure levels between FSEs and BSEs, driven by differences in regulatory environments, market pressures, and organizational characteristics.
The study concludes with recommendations for policymakers and corporate managers to enhance transparency and promote uniform disclosure standards across the EU.
We investigate how non-financial reporting (NFR) is defined and has expanded in recent years. First, we explore the heterogeneity in definitions and current NFR practices. We find a lack of ...convergence between regulators and standard-setters, as well as leading sustainable firms. Second, we examine the changes in the extent and type of NFR reported by firms over the period 2006-2016. Based on a sample of firms in South Africa, we document a significant increase in the amount of NFR, particularly between 2006 and 2011. This change appears to be driven by new environmental, human capital, performance and strategic disclosures. The relative importance of financial information in corporate reporting decreased substantially over the same period. Third, we compare reporting practices for corporate social responsibility (CSR)/sustainability information between constituents of the S&P 500 index and the EuroStoxx 600 index. We find that overall, the percentage of firms issuing CSR/sustainability reports increased dramatically between 2002 and 2015. Constituents of the U.S. stock index and growth firms are less likely to report CSR/sustainability information, whereas firms in the European stock index in environmentally sensitive industries, with high capital intensity and good CSR performance, larger and with better financial performance, are more likely to report CSR/sustainability information.
On the Fintech Revolution GOMBER, PETER; KAUFFMAN, ROBERT J.; PARKER, CHRIS ...
Journal of management information systems,
01/2018, Letnik:
35, Številka:
1
Journal Article
Recenzirano
Odprti dostop
The financial services industry has been experiencing the recent emergence of new technology innovations and process disruptions. The industry overall, and many fintech start-ups are looking for new ...pathways to successful business models, the creation of enhanced customer experience, and approaches that result in services transformation. Industry and academic observers believe this to be more of a revolution than a set of less influential changes, with financial services as a whole due for major improvements in efficiency, customer centricity, and informedness. The long-standing dominance of leading firms that are not able to figure out how to effectively hook up with the “Fintech Revolution” is at stake. We present a new fintech innovation mapping approach that enables the assessment of the extent to which there are changes and transformations in four areas of financial services. We discuss: operations management in financial services and the changes occurring; technology innovations that have begun to leverage the execution and stakeholder value associated with payments, cryptocurrencies, blockchain, and cross-border payments; multiple innovations that have affected lending and deposit services, peer-to-peer (P2P) lending, and social media use; issues with respect to investments, financial markets, trading, risk management, robo-advisory and services influenced by blockchain and fintech innovations.
The assurance of non‐financial information (NFI) included in extended external reports (EERs) is a global activity that has far‐reaching consequences for business, investors, other stakeholders, and ...society. EERs remain largely unregulated with few standards. Along with our companion paper (Krasodomska, Simnett, & Street, 2021, Journal of International Financial Management and Accounting, 25, 209), we contribute to the current discussion on EER assurance by providing an overview of the academic literature to inform the standard setting initiatives of the International Auditing and Assurance Standard Setting Board (IAASB), as well as the practice of assurance of EERs. We identify 121 articles on extended external reporting (EER) assurance published between 2009 and 2020 across 35 journals ranked A*, A, and B on the Australian Business Deans Council (ABDC) 2019 Journal Quality List. These articles cover archival, experimental, interviews, case studies, surveys, and content analysis research methods and serve as a possible input for standard setting activities. We document a rapid increase in this literature with almost half of the articles published in the last 3 years, 2018 to 2020. Finally, we offer ideas for future research directly linked to the proposed Guidance of the IAASB on EER assurance. We encourage researchers to engage in these and other issues of the IAASB’s Guidance to assist them with valuable input for their standard setting activities.
Non‐compliance with transparency obligations among publicly owned enterprises has revealed the lack of coercive capacity of the legislation. In this context, literature suggests that mandatory ...disclosure becomes a matter of company willingness, but this has not been empirically tested so far. Drawing on Oliver's (1991) typology of organizational strategies and studies on normativity production, this study analyzes whether voluntary disclosure levels of financial and non‐financial information determine compliance with transparency legal requirements for the case of Andalusian state‐owned enterprises (SOEs) owned by local and regional governments. We have verified this question using linear regression analysis. The analysis proves that when transparency legislation lacks enforcement power, the level of voluntary disclosure determines the level of legal compliance. Both voluntary and mandatory disclosure levels are explained by the same determinants, suggesting that disclosure is determined by reasons of legitimacy and commitment to transparency. This contributes to the research lines on normativity and transparency in SOEs, being also relevant for lawmakers. This study provides evidence for Oliver's (1991) theoretical arguments about firms' strategies in the face of institutional pressures. It offers policy‐makers and SOE managers an insight into how prepared SOEs are to respond to the demands for greater transparency.
In this paper, we examine whether stock market imperfection plays a role in a firm's decision to release non‐financial information and if so, what the underlying channels are. To address our ...questions, we web‐scraped corporate social responsibility (CSR) news to form a sample of publicly traded non‐financial US firms from CSRwire and explored exogeneous variation in stock valuation driven by institutional price pressure. Our empirical results show that firms facing stock market undervaluation are more likely than others to release CSR news. This effect is concentrated among firms exhibiting low levels of CSR commitment and low stock price informativeness. Finally, we provide evidence that the stock market reacts positively to CSR news released by undervalued firms and more so for undervalued firms with high information asymmetry.
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