Weitere Artikel dieser Ausgabe durch Wischen aufrufen
Flexibility is often defined in terms of autonomy of actions, freedom of expression, balancing in competing opposites and agility in actions. Such flexibility assumes greater significance in the dynamic system in which business operates. In this mutually reinforcing system, Indian regulators have accorded flexibility to companies to decide the nature, type, tone and time orientation of risk disclosures (in annual reports) based on their competitive position. Accordingly, the paper strives to ascertain how this regulatory flexibility is leveraged by Indian companies. For the purpose, content analysis and textual analysis are employed on over 4000 annual reports of NIFTY500 companies, covering a period 10-year period from 2005 to 2015. In tune with agency theory, proprietary cost theory, duality theory and contingency theory, the findings indicate that companies that are in a better competitive position tend to make greater and more comprehensive risk disclosures. The results are robust at company level, industry level and sectoral level. Further, the results unambiguously reflect how this flexibility affected the strategic decision making during the time of global financial crisis. Amidst calls for increasing regulations, particularly in the domain of disclosures, these findings clearly highlight the need for regulatory flexibility in decisions that have strategic implications for firms.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
Abraham, S., & Cox, P. (2007). Analysing the determinants of narrative risk information in UK FTSE 100 annual reports. The British Accounting Review, 39(1), 227–248. CrossRef
Akhtar, M., & Mittal, R. K. (2010). Enterprise performance management and flexibility: Factors of effectiveness in upstream oil industry in India. Global Journal of Flexible Systems Management, 11(4), 1–10. CrossRef
Amran, A., Bin, A. M. R., & Hassan, B. C. H. M. (2009). Risk reporting: An exploratory study on risk management disclosure in Malaysian annual reports. Managerial Auditing Journal, 24(1), 39–57. CrossRef
Armstrong, A., Jia, X., & Totikidis, V. (2005) . Parallels in private and public sector governance. Centre for International Corporate Governance Research, Victoria University, Melbourne. http://vuir.vu.edu.au/948/1. Accessed 15 Mar 2017.
Ashforth, B. E., & Gibbs, B. W. (1990). The double-edge of organizational legitimation. Organization Science, 1(2), 177–193. CrossRef
Beattie, V., McInnes, B., & Fearnley, S. (2004). A methodology for analysing and evaluating narratives in annual reports: A comprehensive descriptive profile and metrics for disclosure quality attributes. Accounting Forum, 28(3), 205–236. CrossRef
Bennett, N., & Lemoine, J. (2014). What VUCA really means for you. Harvard Business Review, 92(1–2). https://ssrn.com/abstract=2389563.
Beretta, S., & Bozzolan, S. (2004). A framework for the analysis of firm risk communication. The International Journal of Accounting, 39(1), 265–288. CrossRef
Bishwas, S., & Dutta, S. (2015). Assessing market risk of Indian index funds. Global Business Review, 16(3), 511–523. CrossRef
Branco, M. C., & Rodrigues, L. L. (2006). Corporate social responsibility and resource based perspectives. Journal of Business Ethics, 69(2), 111–132. CrossRef
Cabedo, J. D., & Tirado, J. M. (2004). The disclosure of risk in financial statements. Accounting Forum, 28(2), 181–200. CrossRef
Deegan, C., & Gordon, B. (1996). A study of the environmental disclosure policies of Australian corporations. Accounting and Business Research, 26(3), 187–199. CrossRef
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147–160. CrossRef
Dougherty, S. M., Herd, R., & Chalaux, T. (2009). What is holding back productivity growth in India. Journal: Economic Studies OECD. ISSN 1995-2848 OECD.
Eisenhardt, K. M. (1989). Building theories from case study research: Academy of management. The Academy of Management Review, 14(4), 532–550. CrossRef
Elshandidy, T., Fraser, I., & Hussainey, K. (2013). Aggregated, voluntary, and mandatory risk disclosure incentives: Evidence from FTSE all share. International Review of Financial Analysis, 30(3), 320–333. CrossRef
Elzahar, H., & Hussainey, K. (2012). Determinants of narrative risk disclosures in UK interim reports. Journal of Risk Finance, 13(2), 133–147. CrossRef
Eppink, J. D. (1978). Planning for strategic flexibility. Long Range Planning, 11(1), 9–15. CrossRef
Field, A. (2013). Discovering statistics using IBM SPSS. London: Sage.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman Publication.
Friedman, J. W. (1972). Duality principles in the theory of cost and production—Revisited. International Economic Review, 13(1), 167–171. CrossRef
Greco, G. (2012). The management’s reaction to new mandatory risk disclosure: A longitudinal study on Italian listed companies. Corporate Communications: An International Journal, 17(2), 113–137. CrossRef
Hofer, C. W. (1975). Toward a contingency theory of business strategy. Academy Management Journal, 18(1), 784–810. CrossRef
Holsti, O. R. (1969). Content analysis for the social sciences and humanities. Reading, MA: Addison-Wesley Publishing Co.
Howard-Grenville, J. A. (2005). The persistence of flexible organizational routines: The role of agency and organizational context. Organization Science, 16(6), 618–636. CrossRef
Hughes, J. S., & Pae, S. (2015). Discretionary disclosure, spillovers and competition. Review of Accounting Studies, 20(1), 319–342. CrossRef
Institute of Chartered Accountants of India (ICAI). (2016). Various publications. www.icai.org/new_category.html?. Accessed 3 Apr 2017.
Jain, P. K., Singh, S., & Yadav, S. S. (2013). Financial management practices. In an empirical study of Indian corporates. New Delhi: Springer.
Janssen, M. C. W., & Roy, S. (2011). Strategic disclosure and signalling of product quality with price competition. In 38th EARIE conference, Stockholm, Sweden, September 1–3.
Jensen, M. C., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency cost, and ownership structure. Journal of Financial Economics, 3(4), 305–360. CrossRef
Jia, J., Munro, L., & Buckby, S. (2016). A finer-grained approach to assessing the—quality (quantity and richness) of risk management disclosures. Managerial Auditing Journal, 31(8–9), 770–803. CrossRef
Jorion, P. (2001). Value at risk: The new benchmark for managing financial risk. New York: McGraw-Hill.
Kanapathippillai, S., Johl, S. K., & Wines, G. (2016). Remuneration committee effectiveness and narrative remuneration disclosure. Pacific-Basin finance journal, 40, 384–402. CrossRef
Krippendorff, K. (2012). Content analysis: An introduction to its methodology. London: Sage.
Li, N. (2010). Negotiated measurement rules in debt contracts. Journal of Accounting Research, 48(5), 1103–1144. CrossRef
Linsley, P. M., & Shrives, P. J. (2000). Risk management and reporting risk in the UK. Journal of Risk, 3(1), 115–129. CrossRef
Linsley, P. M., & Shrives, P. J. (2006). Risk reporting: A study of risk disclosures in the annual reports of UK companies. The British Accounting Review, 38(1), 387–404. CrossRef
Lorsch, J., & Lawrence, P. (1967). Differentiation and integration in complex organizations. Administrative Science Quarterly, 12(1), 1–30. CrossRef
Luthans, F., & Ottemann, R. (1973). Motivation vs. learning approaches to organizational behaviour. Business Horizons, 16(6), 55–62. CrossRef
Marston, C., & Shrives, P. (1991). The use of disclosure indices in accounting research: A review article. The British Accounting Review, 25(1), 195–210. CrossRef
Milne, M., & Adler, R. (1999). Exploring the reliability of social and environmental disclosures content analysis. Auditing and Accountability Journal, 12(2), 237–256. CrossRef
Mintzberg, H. (1987). The strategy concept I: Five Ps for strategy. California Management Review, 30(1), 11–24. CrossRef
Mishra, P., Mohit, D., & Parimal, (2011). Market concentration in Indian manufacturing sector: Measurement issues. Economic and Political Weekly, 46(49), 76–80.
Nickell, S. (1996). Competition and corporate performance. Journal of Political Economy, 104(4), 724–746. CrossRef
Ntim, C. G., Lindop, S., & Thomas, D. (2013). Corporate governance and risk reporting in South Africa: A study of corporate risk disclosures in the pre- and post-2007/2008 global financial crisis periods. International Review of Financial Analysis, 30(1), 363–383. CrossRef
Ntim, C. G., Opong, K. K., & Danbolt, J. (2012a). The relative value relevance of shareholder versus stakeholder corporate governance disclosure policy reforms in South Africa. Corporate Governance: An International Review, 20(1), 84–105. CrossRef
Ntim, C. G., Opong, K. K., Danbolt, J., & Thomas, D. A. (2012b). Voluntary corporate governance disclosures by post-apartheid South African listed corporations. Journal of Applied Accounting Research, 13(1), 122–144. CrossRef
Oliveira, J., Rodrigues, L. L., & Craig, R. (2011). Risk-related disclosures by non-finance companies: Portuguese practices and disclosure characteristics. Managerial Auditing Journal, 26(9), 817–839. CrossRef
Owusu-Ansah, S. (1998). The impact of corporate attributes on the extent of mandatory disclosure and reporting by listed companies in Zimbabwe. The International Journal of Accounting, 33(5), 605–631. CrossRef
Patten, K., Whitworth, B., & Fjermestad, J. (2005). Leading IT flexibility: Anticipation, agility and adaptability. In 11th Americas conference on information systems, AMCIS 2005, Omaha, Nebraska, USA, August 11–14.
Roberts, N., & Stockport, G. J. (2009). Defining strategic flexibility. Global Journal of Flexible Systems Management, 10(1), 27–32. CrossRef
Ross, S. (1977). The determination of financial structure: The incentive-signalling approach. The Bell Journal of Economics, 8(1), 23–40. CrossRef
Ryan, C., & Ng, C. (2000). Public sector corporate governance disclosures: An examination of annual reporting practices in Queensland. Australian Journal of Public Administration, 59(2), 11–23. CrossRef
Senge, P. (1990). The fifth discipline: The art and practice of the learning organization. London: Century Business.
Singh, S., Jain, P. K., & Yadav, S. S. (2012). Capital budgeting decisions: Evidence from India. Journal of Advances in Management Research, 9(1), 96–112. CrossRef
Singla, M., & Singh, S. (2018). Impact of institutional set-up on the responsiveness to change in a firm’s governance structure: A comparative study of public and private sector Enterprises in India. Global Journal of Flexible Systems Management, 19(2), 159–172. CrossRef
Stulz, R. M. (1996). Rethinking risk management. Journal of Applied Corporate Finance, 9(3), 8–24. CrossRef
Sushil, (1997). Flexible systems management: An evolving paradigm. Systems Research and Behavioral Science, 14(4), 259–275. CrossRef
Sushil, (2000). Concept of systemic flexibility. Global Journal of Flexible Systems Management, 1(1), 77–80.
Sushil, (2001). SAP-LAP framework. Global Journal of Flexible Systems Management, 2(1), 51–55.
Sushil, (2005). A flexible strategy framework for managing continuity and change. International Journal of Global Business and Competitiveness, 1(1), 22–32.
Sushil, (2008). The concept of a flexible enterprise. In Proceedings of GLOGIFT, 08, June 14– 16, 2008, Stevens Institute of Technology, Hoboken, NJ.
Sushil, (2012a). Flowing stream strategy: Managing confluence of continuity and change. Journal of Enterprise Transformation, 2(1), 26–49. CrossRef
Sushil, (2012b). Flexibility maturity model: Possibilities and directions. Global Journal of Flexible Systems Management, 13(2), 75–76. CrossRef
Sushil, (2015). Strategic flexibility: The evolving paradigm of strategic management. Global Journal of Flexible Systems Management, 16(2), 113–114. CrossRef
Sushil, (2016). The inflexibility of technology. Global Journal of Flexible Systems Management, 17(4), 341–342. CrossRef
Sushil, & Stohr, E. A. (2014). The concept of a flexible enterprise. India: Springer. CrossRef
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(1), 172–194. CrossRef
Unerman, J. (2000). Methodological issues-Reflections on quantification in corporate social reporting content analysis. Accounting, Auditing and Accountability Journal, 13(5), 667–681. CrossRef
Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting and Economics, 5(1), 179–194. CrossRef
Verrecchia, R. E. (2001). Essays on disclosure. Journal of Accounting and Economics, 32(1–3), 97–180. CrossRef
Verrecchia, R. E., & Clinch, G. (1997). Competitive disadvantage and discretionary disclosure in industries. Australian Journal of Management, 22(2), 125–138. CrossRef
- Does Regulatory Flexibility Affect Risk Disclosures in Annual Report?
M. V. Shivaani
- Springer India
Neuer Inhalt/© Stellmach, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, digitale Transformation/© Maksym Yemelyanov | Fotolia