M.Com. / Please refer to full text to view abstract

The International Accounting Standards Board (IASB) issued International Financial Reporting Standard No. 7 (IFRS 7) “Financial Instruments: Disclosure” in June 2006 as part of its ongoing refinement of existing financial instruments accounting standards. The new standard became effective for periods beginning on or after January 1st 2007 (IASB, 2006). IFRS 7 supersedes the previous International Accounting Standards (IASs): IAS 30/32. IFRS 7 states that information about Financial Instruments (FI) should be prepared in accordance with the management approach. In addition, the standard clarifies the disclosure requirements about FIs across all industries. In particular, the new standard consists of two main types of disclosures, namely: (i) discussion of the significance of FIs for an entity’s financial position and performance; and (ii) the provision of qualitative and quantitative information about exposure to risks arising from FIs based on information provided internally to the entity’s key management personnel. The current thesis uses a decision usefulness theoretical framework to examine the impact of IFRS 7’s adoption on FI disclosure practices and firm value. In particular, the current study has two primary objectives: (i) to assess the impact of IFRS 7 on the FI disclosure policies of Jordanian listed firms in their annual reports for 2007 when the standard became effective; and (ii) to examine the value relevance of FI disclosures. For these objectives, two pieces of empirical work were conducted respectively; a disclosure index technique was constructed and a valuation analysis was performed. A disclosure index analysis was undertaken for a sample of Jordanian listed companies’ annual reports pre- and post- the implementation of IFRS 7. The extant literature and the findings from the disclosure index analysis informed the second part of the empirical work: the valuation analysis. Value relevance analysis was employed in order to assess the usefulness of FI disclosures provided in the companies’ financial statements; indeed, the association between the level of information supplied and firms’ market values was examined. The main findings indicate that the implementation of IFRS 7 had a significant and sizeable impact on the FI disclosure practices of Jordanian companies in 2007 as compared to that provided under International Accounting Standard No. 30 (IAS 30): Disclosures in Financial Statements of Banks and Similar Financial Institutions and International Accounting Standard No. 32 (IAS 32): FIs: Presentation. In particular, the results revealed that the number of companies disclosing information about FIs as well as the level of FI information provided significantly increased after IFRS 7 was implemented. In addition, the analysis of FI disclosure by industry revealed that comparability of financial statement data within and across the sectors examined has improved. In particular, an analysis of Balance Sheet and Fair Value information about FIs revealed no significant differences within and across industries after IFRS 7 became effective. The findings from the valuation analysis revealed that FI disclosure was value relevant over the two periods. However, the regression analysis showed that the FI disclosure provided under IFRS 7 was more value relevant as compared to that supplied under the previous standards. The principal components analysis revealed that some categories of FI information were more influential than others. In particular, Balance Sheet, Income Statement, Fair Value and Risk information about FIs were valued differently as compared to other components of FI disclosures. Indeed, the evidence provided indicates that investors value FI disclosure when making investment decisions. In general, the findings support the decision usefulness approach underpinning the current FI disclosures for Jordanian listed companies. Specifically, In particular, the test of differences in FI disclosure within and across sectors revealed that the implementation of IFRS 7 has enhanced the comparability of the financial statements; no significant differences were noted in FI disclosure (balance sheet and fair value) post-IFRS 7, while this was not the case pre-IFRS 7. In addition, the issue of relevance has been investiagted by testing the association between FI disclosure and firm value. These findings provide a great deal of insight for accounting regulatory bodies (e.g. the IASB) about the current theoretical framework that underpins financial reporting standards. In addition, they provide valuable insights to Jordanian policy makers (JSC and ASE) about the relevance of such standards for Jordanian companies.

Huang, Fang. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2008. / Includes bibliographical references (leaves 35-39). / Abstracts in English and Chinese. / Chapter 1. --- Introduction --- p.7 / Chapter 2. --- Review of literatures and regulations --- p.12 / Chapter 2.1. --- MBO in the US --- p.12 / Chapter 2.2. --- MBO in China --- p.14 / Chapter 3. --- Data selection and sources --- p.16 / Chapter 4. --- Announcement effect of MBO --- p.17 / Chapter 4.1. --- Research method --- p.18 / Chapter 4.2. --- Group division of MBO companies --- p.18 / Chapter 4.2.1. --- Division rules --- p.18 / Chapter 4.2.2. --- Apparent MBO: significant negative --- p.19 / Chapter 4.2.3. --- Founder buyouts: significant positive --- p.20 / Chapter 4.2.4. --- Other groups: insignificant positive but not representative for MBO effect --- p.20 / Chapter 4.3. --- Factor analysis --- p.21 / Chapter 4.3.1. --- Year: before 2003/ after 2003 (include 2003) --- p.21 / Chapter 4.3.2. --- Underlying asset: parent company / the listing company itself --- p.22 / Chapter 4.3.3. --- ESOP participation: Yes/No --- p.23 / Chapter 4.3.4. --- Competitive purchaser: Yes/No --- p.23 / Chapter 4.3.5. --- Results: Success / Failure --- p.24 / Chapter 4.4. --- Summary of announcement effect --- p.25 / Chapter 5. --- Evidence on profitability and pricing --- p.25 / Chapter 5.1. --- Data and methodology --- p.26 / Chapter 5.2. --- Profitability of MBO companies --- p.28 / Chapter 5.3. --- DuPont analysis of companies with successful MBO --- p.29 / Chapter 5.4. --- Dividend payment --- p.31 / Chapter 5.5. --- Shareholder´ةs returns --- p.32 / Chapter 5.6. --- MBO pricing and pre-MBO behavior of NAV --- p.33 / Chapter 6. --- Conclusion --- p.33

Este trabalho investiga os efeitos da OCPC07 na legibilidade e no tamanho das notas explicativas divulgadas por empresas de capital aberto. Como objetivo complementar, buscou-se entender qual o conjunto de características das empresas determinam o grau de legibilidade e o comprimento de suas notas explicativas. Foi coletada uma amostra de 163 empresas de capital aberto com dados para os anos de 2013, 2014, 2015, 2016 e 2017. Como proxy para medir a complexidade dos textos foram utilizados o Flesch Index e o logaritmo natural número de palavras dos textos presentes nas notas explicativas. Para testar os efeitos da OCPC07 nos aspectos formais das divulgações de Instrumentos Financeiros e Gestão de Riscos foi realizado um teste de média para verificar se a diferença entre as médias das proxies de complexidade é significativa nos períodos pré e pós-divulgação da norma. Para encontrar os fatores que influenciam o tamanho e a legibilidade das notas explicativas utilizou-se uma técnica exploratória (Análise de Correspondência) e uma técnica confirmatória (Dados em Painel) com o objetivo de medir a relação entre as proxies de complexidade e os possíveis influenciadores. Os resultados encontrados mostram que a legibilidade das notas explicativas não mudou desde 2013 até 2017. A diferença de médias do Flesch Index mostrou-se não significativa. Por outro lado, o tamanho das notas explicativas diminuiu no período estudado de modo que a diferença de médias do número de palavras mostrou-se significativa. O teste de associação mostrou que empresas com melhor performance estão associadas a notas explicativas mais legíveis, porém mais longas. A técnica de dados em painel mostrou relação estatisticamente significante e positiva entre o setor de atuação da empresa e legibilidade das notas explicativas. O porte da empresa, o fato de serem auditadas por grandes firmas, emitirem ou não ADR e a performance no período também apresentaram relação estatisticamente significativa e positiva com o tamanho das notas explicativas divulgadas. Este trabalho contribui para a literatura nacional ao demonstrar que os esforços por parte de órgãos reguladores e agentes de mercado em busca de melhor qualidade nas divulgações contábil-financeiras estão surtindo algum efeito na elaboração das notas explicativas. / This paper investigates the effects of OCPC07 on the readability and length of explanatory notes issued by publicly traded companies. As a complementary objective, we sought to understand which set of characteristics of the companies determine the degree of legibility and the length of its explanatory notes. A sample of 163 publicly traded companies with data for the years 2013, 2014, 2015, 2016 and 2017 was collected. As a proxy for measuring the complexity of the texts were used the Flesch Index and the natural logarithm number of words in the texts of explanatory notes. To test the effects of OCPC07 on Financial Instruments and Risk Management on formal aspects of disclosures, a mean test was performed to verify if the difference between the means of the complexity proxies is significant in the pre- and post-disclosure periods of the guidance. To find the factors that impact the readability and length of the explanatory notes, an exploratory technique (Correspondence Analysis) and a confirmatory technique (Panel Data) were used to measure the relationship between complexity proxies and possible determinants factors. The results show that the readability of the explanatory notes did not change from 2013 to 2017. The difference in means of the Flesch Index was not significant. On the other hand, the size of the explanatory notes decreased during the studied period, so that the mean difference in the number of words was significant. The association test showed that companies with better performance are associated with more legible but longer explanatory notes. The panel data technique showed a statistically significant and positive relationship between the company\'s sector of activity and readability of the explanatory notes. The size of the company, the fact that large firms audited them, whether or not they issued ADR and the performance in the period also showed a statistically significant and positive relationship with the size of the explanatory notes disclosed. This work contributes to the national literature by demonstrating that efforts by regulatory agencies and market agents seeking better quality in accounting and financial disclosures are having some effect in the preparation of explanatory notes.

In this dissertation, I explore the ways in which theories and concepts of face-to-face interaction and disclosure management can be used to understand the construction of privacy on an intercollegiate sport team. The purpose of this research was to examine how team members talked to each other about themselves, and how they managed the personal information shared. Erving Goffman's model of social interaction and his concepts of "face" and "supportive work" frame the analyses of this study. Through semi-structured interviews and direct observations of the members of an NCAA Division III women's basketball team, I discovered the team's rules and the development of their communication norms, which were most salient during discussions involving the players' tattoos and two unanticipated team meetings. It was important to the players of this team that they were a close-knit group who got along well and supported each other. The players questioned the commitment level of a player who disrupted the team's closeness by breaking a rule or norm and refused to make amends for her discretion. My findings suggest that the team members negotiated how to demonstrate their commitment to the team and to each other by performing supportive and remedial work through disclosure during these two meetings. Even under those specific circumstances, a player maintained some amount of autonomy by controlling the depth of her personal information that she shared. Interestingly, the players did not indicate an experienced loss of control over their personal information after they shared it with other team members at the meetings due to the team's negotiation of information boundary management. Additionally, I found that the symmetry and reciprocity of disclosure differed between player-to-player and player-to-coach interactions.

This online analogue study examined psychologists' current mental health diagnoses disclosure practices to children. Specifically, this dissertation investigated participants' self reported likelihood to disclose mental health diagnoses in relation to both psychologist (i.e., clinical services provided and years of clinical service) and client (culture, age, cognitive ability) characteristics. Forty-seven certified American Board of Professional Psychology (ABPP) Psychologists were recruited via email listserv for this research. Participants rated their likelihood to disclose mental health diagnoses to vignettes depicting children with varying demographic characteristics: culture, age, and cognitive ability. Participants also responded to open-ended questions exploring their current mental health diagnosis disclosure practices, including the impact of specific diagnoses on disclosure. Analyses of open-ended questions revealed that psychologists consider the following factors in their decision to disclose diagnoses: (1) child characteristics (i.e., age, culture, cognitive ability, maturity, developmental and functioning level), (2) support (family, social, therapeutic relationship), (3) personal beliefs about disclosure, (4) diagnostic characteristics (e.g., prevalence, public familiarity, current biological evidence, stigma), (5) how to provide a supportive disclosure (e.g., kid friendly language), and (6) potential benefits. Combined open-ended and quantitative results provide empirical support suggesting that psychologists, like psychiatrists and pediatricians, are more likely to disclose diagnoses to: (a) children of an American culture than those of a Chinese-American culture, (b) older (16 years old) children rather than younger children (6 years old), and (c) children with an intellectual ability in the Superior Range rather than those with an IQ in the Borderline Range. Psychologists' years of clinical experience also significantly predicted their disclosure practice. Psychologists with between 13-31 years clinical experience reported more diagnosis disclosure to children than did participants with 32 years or more of clinical service when presented with a client who was of an American decent, 16 years old, or had an intellectual ability in the Superior Range. The services that psychologists provide (i.e., counseling, diagnostic evaluations, or both) did not significantly predict disclosure practices. Taken together, the findings of this study may be the first step to facilitate the development of evidenced based guidelines for the disclosure of mental health diagnoses to children.

The objective of this study is to evaluate the incremental information content of the Annual Report to Shareholders (ARS) and the 10-K. The study defines incremental information content as that set of data that has not been previously released to the public, which is contained in the ARS or 10-K, that gives rise to a resetting of equilibrium security prices. The results of the study have two implications. First, a finding of the existence of incremental information content in either the ARS or the 10-K provides evidence that investors may use the incremental data contained in either report to improve their estimates of firms' systematic risk components (Beta). Second, the results of the study may provide feedback value to accounting policymakers for evaluating their prior beliefs concerning the wealth effects of their accounting policy decisions. The study employs the familiar Market Model for generating unexpected returns. Further, the ordinary least squares regression method is used to derive regression parameters (including Beta) for the Market Model. This procedure has been accomplished for the 312 ARS and 159 10-K sample firms for reporting years ending in 1975, 1976 and 1977. The Quandt log-likelihood ratio and the Chow test have been employed to block the two study samples on the basis of stable regression parameters and to determine which weeks in the study period Beta-shifts have occurred for firms in the Non-Stationary ARS and 10-K groups. Two procedures have been employed in the study. The first procedure has been employed to determine if an unusual concentration of Beta-shifts has occurred in conjunction with the release of either report. The second procedure has been employed to detect the existence of any unusual unexpected return activity associated with the release of the ARS or the 10-K. Using the procedures described above, the study concludes that neither the release of the ARS nor the release of the 10-K affects investors' assessments of firms' systematic risk components or return distributions. Thus, the evidence the dissertation provides does not support an hypothesis that either report possesses incremental information content. Finally, the study concludes that the ARS and the 10-K fail to influence investors assessments and that policymakers must rely on their value judgments concerning their prior beliefs for the wealth effects of the ARS and 10-K.

This thesis examines the optimal role for public relations practitioners to play in managing the communications of disclosure situations. The contribution to knowledge in this work is the clarification of decision-making around organizational disclosures and the role public relations practitioners play in these sometimes difficult and sensitive situations. Decision making around the disclosure of organizational information has not been given much attention in the public relations and communications management literature. While other fields such as medicine and finance have researched the merits of disclosure and transparency for a number of years, the topic has evaded in depth academic examination in communications literature. Given the involvement of public relations practitioners in organizational disclosures, it is somewhat surprising that a model for managing the communications of these situations has not been proposed previously in published research. This thesis closes this gap by proposing a normative, theoretical model that is grounded in practice, and uses ethical decision-making, to assist communicators in developing strategies for managing disclosure events and improving the transparency of their organizations to the public. Using the Strauss and Corbin (1998) approach to Grounded Theory, this thesis explored the topic of disclosure with senior level Canadian public relations practitioners to elicit key themes prior to the development of an initial model which was then tested through further empirical research and user-group contact. The model presented in this thesis is intended to help public relations practitioners and their organizations’ senior management teams, structure their thoughts about disclosing information and develop a communication strategy through a step-wise process that works to find a balance between the needs of the organization and the information needs of stakeholders to make an informed decision about the situation. This thesis provides unique insights into practitioner dilemmas and challenges; highlights a number of important themes and conceptual issues that have not received attention to date; and offers a model for practice.

Banks within Europe have a major role in the European financial system. The financial collapse in 2008 made regulators well aware of the importance of corporate transparency to allow stakeholders to assess the banks health and maintain a stable market. Risk reporting within the European Union (EU) contributes to transparency in terms of disclosing information on risk management activities. The heavy regulations and demand from investors have caused the extent of risk reports to increase over time. The purpose of this research is to investigate if there is a relationship between the quantity of information in risk disclosures and the financial performance for banks in the EU and thus contribute with new knowledge to the field of finance, and increase managers' as well as stakeholders' understanding of the impact of risk reports. The methodological standpoints guide our choices throughout the research process. Our epistemological view is positivism and our ontological view is objectivism. A deductive research approach and a quantitative research method are adopted to collect archival data from risk reports and on financial performance from a sample of 41 banks. Our population consist of banks within the EU. The research design is cross-sectional using data from one point in time, the time period 2013-04-01 - 2014-03-31. Based on relevant theories and previous research, quantity proxies in terms of number of pages, words, characters and recurrence of keywords together with financial performance measures in terms of stock return, standard deviation and beta are used to investigate the relationship. 3 hypotheses are derived and tested by running regressions where the financial performance measures are the dependent variables and our proxies for quality are the independent variables. Our tests show that no significant relationship exists between the quantity of information in risk disclosures and the financial performance of banks within the EU. The results from our research contribute with new knowledge to academics within the field of finance by increasing the understanding of the explanatory variables for financial performance. Moreover, academics may use our results to justify the choice of other proxies than quantity when investigating quality in corporate disclosures. Additionally, our results indicate that practitioners should not use quantity of information in risk reports as an indicator of quality, as no relationship with the financial performance of a bank could be statistically proven.

Thesis (Ph.D.)--Emory University, 2007. / Adviser: Grace Pownall. Includes bibliographical references.