Financial reporting quality and online disclosure practices in spanish governmental agencies

Good governance in the public sector implies high accountability levels. Accountability is a multidimensional concept that includes the quantity and reliability of disclosures as well as rendering accounts to the citizenry. Nowadays, good governance, accountability, and financial performance are key for the long-term sustainability of autonomous public sector organizations. The objective of this paper is to study how key governance features relate to the quantity and quality of the information disclosed. In particular, how the governing body, financial performance and organizational features relate to online transparency and financial reporting quality, as well as how these two accountability dimensions are related. To fulfill this objective, we have used the Structural Equation Modeling, Partial Least Squares (PLS-SEM) approach. The focus of our analyses is on Spanish central government agencies. The size of, and a greater presence of independent members in, the governing body are explanatory factors behind the quality of the financial reports. Our findings also show that the quality of the financial information is also affected by the pressure that Eurostat requirements-deficit limits-puts on public sector entities, which leads to the use of smoothing practices. Online disclosure practices are not explained by the features of the governing body, but by the size of the agencies and their financial results. The better the financial reporting quality, the higher the online disclosure levels

Rating based indexing of Istanbul Stock Exchange, lessons from its failure and Novo Mercado's sucess in to advance corporate governance reforms

This paper compares the objectives, processes and outcomes of different approaches adopted by BOVESPA and ISE for differentiating “better governed” firms listed on their respective boards. Novo Mercado of BOVESPA, launched at the end of December 2000, was able to attract over 30 companies within 5 years, whereas ISE CG Index, announced in February 2005, is not yet launched due to lack of interest from the issuers

ISO and Social Standardisation: Uncomfortable compromises in Global Policy-Making

This paper intends to explore the involvement of ISO, the world’s most iconic standard-setting institution, in the field of social responsibility, leading to the publication of the ISO26000 standard in November, 2010. Through several aspects of this experience, an almost decade-long process, I will show how ISO developed a new political structure aimed specifically at creating global policy, originating one the most sophisticated frameworks in existence to consensualise "universal" sociopolitical principles and infuse them with the legitimacy of a "global" technocracy and liberal institutions. Moreover, I will use the latest ISO26000 experience to argue that conceptual and institutional minimalism, which favours "soft" approaches towards global policy-making, paradoxically results from combining a technocratic aim for global compatibility with more participatory decision-making arrangements involving previously excluded socio-political actors. In that sense, ISO’s upgraded participatory mechanisms solved certain deadlocks suffered by previous initiatives only to affront and spark a new round of contradictions and consequences. Thus, I will conclude commenting on the intrinsic relationship between global standards, governance and complexity, and the difficulties of politically articulating programmes with dissimilar functional differentiation

Ethical management systems for not-for-profit organizations

Non-governmental organizations (NGOs) have proven to be excellent instruments for promoting a wide range of causes. But they need to adhere to strict ethical principles, which usually are embodied in voluntary codes and standards. This paper analyzes one such standard, the "Ethics. NGO management system" standard published by Aenor, a private Spanish organization committed to the development of standardization and certification. The analysis and comments are centered mainly on issues of NGO accountability.Not-for-profit organizations; non-governmental organizations; code of ethics;

Environmental, social and governance disclosures in Europe

Purpose – The purpose of this paper is to shed light on the European Union’s (EU) latest regulatory principles for environmental, social and governance (ESG) disclosures. It explains how some of the EU’s member states are ratifying the EU Commission’s directives on ESG reporting by introducing intelligent, substantive and reflexive regulations. Design/methodology/approach – Following a review of EU publications and relevant theoretical underpinnings, this paper reports on the EU member states’ national policies for ESG reporting and disclosures. Findings – The EU has recently revised a number of tools and instruments for the reporting of financial and non-financial information, including the EU’s modernisation directive, the EU’s directive on the disclosure of non-financial and diversity information, the EU Energy Efficiency Directive, the European pollutant release and transfer register, the EU emission trading scheme, the integrated pollution prevention and control directive, among others. Practical implications – Although all member states are transposing these new EU directives, to date, there are no specific requirements in relation to the type of non-financial indicators that can be included in annual reports. Moreover, there is a need for further empirical evidence that analyse how these regulations may (or may not) affect government entities and big corporations. Social implications – Several EU countries are integrating reporting frameworks that require the engagement of relevant stakeholders (including shareholders) to foster a constructive environment that may lead to continuous improvements in ESG disclosures. Originality/value – EU countries are opting for a mix of voluntary and mandatory measures that improve ESG disclosures in their respective jurisdictions. This contribution indicates that there is scope for national governments to give further guidance to civil society and corporate business to comply with the latest EU developments in ESG reporting. When European entities respond to regulatory pressures, they are also addressing ESG and economic deficits for the benefit of all stakeholders.peer-reviewe

E-Government, transparency, reputation and performance. An empirical study in a sample of Spanish municipalities

Different streams of the Resource-Based View of the Firm (RBV) research have tested diverse relationships among intangible strategic resources and performance in heterogeneous industries, which have made a considerable contribution to our knowledge about firms and competition. The RBV establishes that those organizations capable of creating and developing strategic resources will have a competitive advantage and will enjoy a superior performance. Despite the substantial research effort, scarce empirical work has been developed trying to test the resourcebased view postulates in the public administration domain. The aim of this study is to examine how a set of strategic resources (e-government, transparency and reputation) can be the drivers of performance in public organizations, developing a theoretical model based on the RBV. The methodology considers a structural equation model (SEM) in order to test the hypotheses formulated in a sample of 78 Spanish municipalities. A group of models were designed considering performance as the dependent variable, and measuring it in six different ways: with three indicators of performance (economic activity index per capita, employment, and performance factor) and three indicators of performance growth (economic activity index growth, employment growth and population growth). The empirical research revealed a positive relationship between e-government and transparency, transparency and reputation, e-government and reputation, and reputation and performance, while the relationship between e-government and performance was not supported. Based on empirical findings, several implications emerge for scholars and practitioners; mainly that the RBV presents an adequate perspective for analysing public organizations, and that the development of strategic resources highly linked to local governments could be a source of competitive advantages with a positive impact on several indicators of city performance, and this should be considered by practitioners

Accountability disclosure of SOEs: comparing hybrid and private European news agencies

Purpose: This paper aims to explore the financial and non-financial accountability disclosure patterns of state-owned enterprises (SOEs), as hybrid organizations. Design/methodology/approach: Adopting the hybridity concept and resorting to stakeholder theory, this paper works on a comparison between the accountability disclosure patterns of hybrid and private organizations operating in the same industry. European national news agencies are selected as units of analysis and an extensive web content analysis is performed on three categories of information. Findings: SOEs are found to disclose a broader spectrum of information than private organizations, and differences between them have been found. Nevertheless, both financial and non-financial disclosures are underdeveloped in the two organizational types. Research limitations/implications: This paper illustrates how hybridity explains SOEs’ accountability disclosure patterns. Results could not be complemented through information on disclosure through alternative channels. Future studies are encouraged to perform simultaneous comparisons among hybrid, public and private organizations, as well as considering industry specifics. Practical implications: As web accountability disclosure helps to address the demands of distant stakeholders, efforts are needed to enhance SOEs’ web accountability disclosures and not to undermine democratic accountability relationships. Originality/value: This paper contributes to the ongoing debate on the accountability mechanisms and style of SOEs. Using a framework for hybrid organizations provides an understanding of how SOEs, as hybrid organizations, disclose information for accountability. In turn, this allows, and then promotes, the investigation of social phenomena by conceiving hybridity as a standalone institutional space

Identifying Motivation of the Local Governments to Improve the Sustainability Transparency

This paper examines the sustainability transparency of governments, i.e., the disclosure of information on the sustainability of their actions. To do so, we identify contributory factors to the online disclosure of environmental, social, economic and general information by local governments in Nordic countries. Linear regression analysis was used to identify factors infl uencing the online dissemination of government information on sustainability; a factor analysis, as a precursor to linear regression, led us to reduce 14 explanatory variables to four factors: fi nancial risk, demography, professional qualifi cations and local government resources. The results obtained show that local fi - nancial priorities have a greater impact on the sustainability-related content of governmental websites than does concern for the needs of the population. Furthermore, an organization’s disclosure of its fi nancial risks, together with greater awareness of stakeholders’ demands, could promote transparency in the fi eld of environmental, social and economic sustainability, while local demographic characteristics could foster the publication of information on environmental sustainability.This study was carried out with the assistance of a research project funded by the Regional Government of Andalusia (Ref. P11-SEJ-7700) and that of two projects funded by the National Research Plan, Nos. ECO2010-17463-ECON and ECO2010-20522-ECON

Liberalization and Democratization: The Forum and the Hearth in the Era of Cosmopolitan Post-Industrial Capitalism

Rather than the desire for economic liberalization bringing about political democratization, the struggles against autocracy have created an opening for economic liberalization. While undermining partriarchy and hierarchy, anti-authoritarian movements have also paved the way for post-industrial capitalism, with its emphasis on information management, flexible working conditions, and a global outlook