An examination of UK companies' modern slavery disclosure practices: Does board gender diversity matter?

The United Nations' Sustainable Development Goals persuade governments and businesses to fight modern slavery as part of the 2030 Agenda for Sustainable Development. The UK government took the initiative by introducing the Modern Slavery Act in 2015. Despite this, little is known about how companies disclose information about their efforts to tackle modern slavery as required by the Act and the role of corporate governance as a determinant of modern slavery disclosure (MSD) levels. This study, therefore, investigates the extent to which companies engage in MSD and empirically examines the impact of board gender diversity (BGD) on MSD. Based on a content analysis of FTSE 100 companies' modern slavery statements during the 2016–2020 period, we find that MSD improved over time but is still relatively low. Our results show that companies pay less attention to the core practices of modern slavery, such as key performance indicators (KPIs), due diligence procedures, risk assessment and management, and training. This evidence suggests that companies tend to comply with the Act by focusing largely on symbolic structures rather than providing a comprehensive disclosure of their impacts on modern slavery practices to minimise regulatory risks and manage stakeholders' perceptions. We also find that boards with greater female representation have a positive and significant association with MSD. This finding is consistent with the gender socialisation theory in that women are more sensitive to communal values and ethics. Consequently, companies with a greater proportion of female directors are more transparent about their strategies and actions related to fighting modern slavery. Furthermore, a critical mass of at least four female directors is necessary before any positive impact on MSD can be observed. Our findings shed new light on this under-researched area and the role of female directors in addressing modern slavery risk and can be of interest to companies, policymakers, and other stakeholders

Ownership structure’s effect on financial performance : an empirical analysis of Jordanian listed firms

This study aims to examine the impact of the ownership structure on firm performance in the Jordan. This study employed the multiple-regression model and fixed regression effect to analyse the data. The sample included all Jordanian first market firms listed on the Amman Stock Exchange (ASE) from 2012 to 2018. The paper’s findings reveal a positive and significant relationship between institutional ownership and both accounting measure Return on Assets (ROA) and market measure Tobin’s Q (TQ). Other ownership structure types, such as concentration of ownership, also affect ROA and TQ. While managerial ownership shows a negative relationship with ROA, but there is no association with TQ. This study has broad and comprehensive practical implications that are good for policymakers. On the one hand, it adds to the debate on agency theory from the ownership structure and firm’s performance relationship. On the other hand, it helps the Jordanian Government formulate policies and regulations to strengthen corporate governance (CG), which increases the interests of all stakeholders in the Jordanian market

Do Assurance and Assurance Providers Enhance Covid-Related Disclosures In CSR Reports? An Examination In The UK Context

Purpose The COVID-19 pandemic has been adding pressures on companies to commit to their social and ethical responsibilities. Corporate social responsibility (CSR) reporting is the main tool through which companies communicate their social behaviour and the need for credible information is censorious during the crisis. This paper aims to measure the level of COVID-19 disclosures in CSR reports by using an automated textual analysis technique based on a sample of UK companies and investigate whether the level of disclosure is enhanced for companies that subject their CSR reports to an assurance process. Design/methodology/approach The study sample consists of FTSE All-share non-financial listed companies. The authors use a computer-aided textual analysis, and we use a bag of words to capture COVID-related information in the CSR section of the firm’s annual reports. Findings The results suggest that the existence of independent external assurance is significantly and positively associated with the provision of COVID-19 information in CSR reports. The authors also find that when assurance is provided by Big 4 accountancy firms, the disclosure of COVID-related information is enhanced. Furthermore, large companies are more likely to disclose COVID-related information in their CSR reports that are externally assured from top-tier accountancy firms, suggesting that assurance could be a burden for smaller firms. Overall, the findings suggest that assurance on CSR reports provides an “insurance-like” protection that mitigates the risks and signals the management’s ethical behaviour during the pandemic. Practical implications The study approach helps to assess the level of corporate engagement with COVID-19 practices and the extent of related disclosures in CSR reports based on the COVID-19 Secure Guidelines published by the UK government. This helps to emphasise how companies engage and communicate COVID-19-related information to stakeholders through CSR reports and ensure a safe working environment during this pandemic. Managers will need to assess the costs and benefits of purchasing assurance on CSR disclosures, giving the ethical signal that assurance sends to the market and protection that it covers during the crisis. Originality/value This paper provides a shred of unique evidence of the impact of the existence of external assurance and the type of assurer on the disclosure of COVID-related information in CSR reports. To the best of authors’ knowledge, no study has yet investigated the corporate disclosure on an unforeseen event in CSR reports and the role of CSR assurance in this respect

Global modern slavery and sustainable development goals : does institutional environment quality matter?

Modern slavery is a persistent human tragedy and a growing organisational risk. The United Nations’ Sustainable Development Goals highlight the significance of governments in shaping firms’ sustainability agenda and combating modern slavery. However, little is known about the effects of the institutional environment on modern slavery risk. This study, therefore, investigates the crucial policy question of whether the quality of the institutional environment has any effect on modern slavery and whether sustainable human development reinforces this relationship. Using data from 167 countries, we find that institutional environment quality is negatively associated with the prevalence of and vulnerability to modern slavery, and positively associated with its modern slavery risk mitigation. Our results suggest that democratically elected governments operating in politically stable societies with higher quality of voice and accountability, higher levels of control of corruption, and stricter rule of law are more accountable and responsive to modern slavery risks. We also find that sustainable human development (HDI) has a moderating effect on the relationship between institutional environment quality and modern slavery, and this effect is mainly noticeable in low HDI countries. These results imply that governance reforms alone might not yield the desired effects for all countries and, hence, have significant implications for policymakers, companies, and societal stakeholders

Key audit matters: a systematic review

Key audit matters (KAMs) play a substantial role in financial reporting and have garnered increasing attention in recent years. This systematic review of 117 papers and reports published between 2013 and 2023 contributes to the audit and financial reporting field by identifying research gaps and suggesting areas for future research. The findings show that KAMs impact financial reporting and emphasise the need for further investigation into their effectiveness in improving financial reporting quality. This study provides valuable insights for regulators, stakeholders, and the academic and professional community and highlights the importance of future research on KAMs to assess the success of regulatory changes in audit reporting

COVID-19, board of directors and pessimism in annual reports: an intention to mitigate litigation risk

This study examines the impact of corporate COVID-19 disclosure on the negative tone (pessimism) in annual reports. We also investigate how board size and board independence influence pessimism in annual reports. Using a U.K. sample from 2020, we employ various techniques to explore the COVID-19 disclosure-pessimism nexus. Our findings, supported by Tobit regression and a two-stage least squares (2SLS) model, reveal a positive association between COVID-19 disclosure and pessimism in annual reports. We observe that managers tend to disclose COVID-19 information pessimistically as a risk mitigation strategy, aiming to prevent future earning shocks and potential litigation costs. Interestingly, our results also indicate that large boards and independent directors can bolster governance power, safeguarding firms against potential litigation costs by increasing pessimism in annual reports, both during and beyond the COVID-19 pandemic

Corporate Risk Disclosure and Key Audit Matters: The Egocentric Theory

Purpose The paper provides unique interdisciplinary research evidence between the risk information disclosed by auditors and the risk information disclosed by corporate managers. In particular, it investigates the association between the level of risk information disclosed by auditors (KAMs) and the level of corporate narrative risk disclosure. Design/methodology/approach The study sample consists of the UK FTSE all-share non-financial firms across six financial years. We use a computer-aided textual analysis, and we use a bag of words to score our sample annual reports. Findings The results suggest that Key Audit Matters (KAMs) and corporate narrative risk disclosure levels vary across the industries. We found a significant positive association between the risk information disclosed by auditors and the risk information disclosed by corporate managers. Also, we found that FTSE 100 firms exhibit higher significance between the ongoing concern and the level of narrative risk disclosure. Practical implications The study approach helps assess the level of management risk reporting behaviour due to the new auditor risk reporting standards. This helps to emphasise how auditors and companies engage and communicate risk-related information to stakeholders. Standard setters should suggest a more detailed reporting framework to protect the shareholders. Our unique findings are incredibly beneficial to the regulators, standard setters, investors, creditors, suppliers, customers, decision-makers and academics. Originality/value This paper provides a shred of extraordinary evidence of the impact of auditor risk reporting and management risk reporting. To the best of the authors' knowledge, no study has yet investigated the corporate narrative disclosure after the new audit standards ISA 700 and ISA 701

Echocardiographic evaluation of mitral valve regurgitation

Echocardiography is the primary imaging modality for the evaluation of mitral valve regurgitation. A comprehensive assessment of mitral regurgitation using different echocardiographic techniques provides important information regarding the etiology and severity of mitral regurgitation and its consequences on cardiac function. In addition, echocardiography plays an important role in the management of patients with mitral regurgitation

Utilization of Two- and Three-Dimensional Transesophageal Echocardiography in Successfully Guiding Transcatheter Mitral Valve in Bioprosthetic Mitral Valve/Mitral Ring Implantation without Complications in Patients with Thrombus in Left Atrium/Left Atrial Appendage

Background. The aim of this study is to describe, for the first time to our knowledge, the utilization of both two-dimensional (2D) and three-dimensional (3D) transesophageal echocardiography (TEE) in successfully performing transcatheter mitral valve (MV) in bioprosthetic MV/MV annulopasty ring implantation using the apical approach in 12 patients (pts) with co-existing left atrial appendage (LAA) and/or LA (left atrium) body thrombus, which is considered a contraindication for this procedure. Methods and Results. All pts were severely symptomatic with severe bioprosthetic MV stenosis/regurgitation except one with a previous MV annuloplasty ring and severe native MV stenosis. Thrombus in LAA and/or LA body was noted in all by 2D and 3DTEE. All were at high/prohibitive risk for redo operation and all refused surgery. Utilizing both 2D and 3DTEE, especially 3DTEE, guidewires and the prosthesis deployment system could be manipulated under direct vision into the LA avoiding any contact with the thrombus. The procedure was successful in all with amelioration of symptoms and no embolic or other complications over a mean follow-up of 21 months. Conclusion. Our study demonstrates the feasibility of successfully performing this procedure in pts with thrombus in LAA and/or LA body without any complications