Value Relevance Of Voluntary Human Capital Disclosure: European Evidence

This study examines the value relevance of voluntary human capital disclosure (VHCD) in 32 European markets during the period between 1997 and 2012. VHCD allows capital market participants to evaluate the intellectual capital of disclosing firms by allowing them to assess the competitiveness of firm’s human resource strategy and the productivity of workforce vis-à-vis the benchmark. The results provide strong evidence suggesting that market participants consider VHCD to be value relevant and incorporate changes in labor cost information into their pricing decisions.

Simultaneous Determination Of Stock Price Synchronicity And Dividend Payout Ratios: Evidence From The MENA Region

This paper examines the determinants of cross-sectional differences in stock price synchronicity and dividend payout ratio in the MENA region during the period between 2003 and 2013. These variables are related not only directly, but also indirectly, through their relationship with information environment of firms. To distinguish these effects, we examine the determinants of both variables within a system of equations. Our results indicate that both of these variables affect each other negatively. We argue that higher information asymmetries associated with firms exhibiting high synchronicity leads to lower payout ratios, while lower information asymmetries that accompany firms paying high dividends lead to lower synchronicity

Risk reporting: A review of the literature and implications for future research

YesThis paper provides a wide-ranging and up-to-date (1997-2016) review of the archival empirical risk-reporting literature. The reviewed papers are classified into two principal themes: the incentives for and/or informativeness of risk reporting. Our review demonstrates areas of significant divergence in the literature specifically: mandatory versus voluntary risk reporting, manual versus automated content analysis, within-country versus cross-country variations in risk reporting, and risk reporting in financial versus non-financial firms. Our paper identifies a number of issues which require further research. In particular we draw attention to two: first, a lack of clarity and consistency around the conceptualization of risk; and second, the potential costs and benefits of standard-setters’ involvemen

A theory of the corporate decision to resist FASB standards: An organization theory perspective

Purpose - To discuss the factors which make companies resist US accounting standards proposed by the FASB (Financial Accounting Standards Board). Design/methodology/approach - Explains the FASB's standard setting process and reviews previous relevant research to develop 12 research propositions on the variables relating to the standards, the corporations and their industries which stimulate companies to resist FASB standards. Suggests how these might be tested. Findings - Believes corporations are more likely to resist standards which increase uncertainty, have high information processing demands, require deviation from accepted practice and/or threaten the company's ability to acquire resources. Resistance is more likely from companies dependent on external stakeholders who oppose a standard, those with power over stakeholders which the FASB depends on, large companies and those with a history of opposition. Companies which are in concentrated industries, likely to suffer a negative impact on performance criteria valued by stakeholders, less regulated and/or rapidly growing are also more likely to resist standards seen as detrimental. Research limitations/implications - Calls for empirical research to test this theoretical framework and offers guidelines for conducting it. Practical implications - Identifies situations in which regulators might meet resistance and suggests some ways to reduce it. Originality/value - Puts forward a wide range of variables which can affect corporate resistance to FASB standards

Determining dividend payouts of the MENA banking industry: a probit approach

The purpose of this cross-country study is to highlight the main determinants of the payout policy in the banking sector on a sample of MENA countries during the period of 2011-2016. Dividends act as a signaling tool to convey the bank’s overall stability and positive growth prospects. Large and profitable banks are more prone to distribute dividends. However, managers seek profitability and dividends distribution at the expense of high liquidity risk. Competition is the most influential determinant of dividend payout in the MENA region, in which dividends act as a control mechanism to reduce the agency costs between shareholders and managers