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This empirical study of 256 companies from seven countries examines whether cultural and market forces correlate with the level of annual report disclosures, from the perspective of investors. The primary findings show that the secretiveness of a culture does underlie disclosure practices of its business enterprises. The market forces that significantly influence more disclosures are higher levels of foreign sales, lower debt ratios, and larger total assets. Secondary findings show that local enterprises, but not international enterprises, disclose financial information commensurate with the secretiveness of their home culture. Enterprises operating in the global culture, on the other hand, appear to be disclosing higher levels of information than dictated by their local culture, perhaps in order to obtain resources at reasonable costs. These findings may be useful to the International Organization of Securities Commissions in their effort to harmonize financial reporting of companies listing on foreign stock exchanges.
Drawn from journals such as Abacus and the Journal of Accounting Literature, and spanning the period 1993-2000, these 22 papers focus on issues of classification, the measurement and consequences of international accounting diversity, and other basic topics. Among the fundamental issues discussed a
Seminar paper from the year 2011 in the subject Business economics - Accounting and Taxes, grade: 1.3, University of Mannheim, language: English, abstract: Each year, firms disclose information that is analyzed and eventually reflected in the market price. Sources of information are for example annual reports, earnings announcements and press releases. In the past, financial accounting research focused primarily on the numerical financial information disclosed (cf. Hales et al. 2011, 224).1 Interestingly, research showed that asset price movements could only partly be explained by this quantitative information and thus must have additional influencing factors (cf. Demers/Vega 2010, 2). Since corporate disclosure generally consists only to a small fraction of qualitative data and dominantly of textual information (cf. Li 2011, 1)2, and since language is the natural medium through which people communicate, financial accounting research started to focus on the analysis of textual disclosure (cf. Hales et al. 2011, 224). Results of these studies show that different aspects of textual disclosure, like the tone (how information is written/expressed) or the readability can influence for example market prices or analyst behavior (e.g. Li 2010 or Tetlock/Saar-Tsechansky/Macskassy 2008). This paper focuses on research in the field of tone as important characteristic of corporate textual disclosure. Its aim is to provide an overview about the most recent approaches and about challenges that researchers face. The remainder of this paper proceeds as follows. In section 2 the importance of textual analysis and the information content of textual information are discussed. Furthermore this section provides an overview about different approaches to characterize textual disclosure and a tabular classification of the recent literature. Since this paper focuses on the tone of textual disclosure, different approaches to measure tone are discussed as well. In section 3 two recent studies are discussed and section 4 concludes with a summary of the main results of this paper and gives suggestions for future research.
We examine the effect of cultural heterogeneity on corporate disclosure time orientation and its capital market consequences. To measure firms' and investors' cultural time orientation, we use their home country's long-term orientation (LTO) and the dominant language future time reference (FTR). Using textual properties of annual reports, we first document that firms use more long-term oriented words and fewer forward-looking statements when their home country and investor base are culturally more long-term oriented and have a weak FTR language. Next, we use firms' inclusion in the MSCI World Index as an instrument to address causality and find that the investor base's cultural time orientation affects disclosure time orientation. Lastly, we find through path analysis that the effect of cultural misalignment in long-term orientation on disclosure decreases liquidity and increases cost of equity capital. This result suggests that cultural heterogeneity can induce disclosure-based informational frictions.
Ethics and Auditing examines ethical challenges exposed by recent accounting and auditing 'lapses' through a study of interconnected moral, legal and accounting issues. The book aims to engage a broad readership in the discussion of audit failure and reform. With its range of intellectual and practical perspectives, Ethics and Auditing provides critical analyses of auditor independence, conflicts of interest, self-regulation, the setting and enforcing of auditing standards, and ethics education.
"The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.