180
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Corporate performance modeling through disclosure quality at the level of developing countries in Southeast Asia

ORCID Icon & ORCID Icon
Article: 2341215 | Received 26 Mar 2022, Accepted 05 Apr 2024, Published online: 18 Apr 2024

References

  • Abdullah, H., & Tursoy, T. (2021). Capital structure and firm performance: Evidence of Germany under IFRS adoption. Review of Managerial Science, 15(2), 379–398. https://doi.org/10.1007/s11846-019-00344-5
  • Abu Afifa, M. M., & Saadeh, M. (2023). Does information asymmetry mediate the relationship between voluntary disclosure and cost of capital? Evidence from a developing economy. Journal of Financial Reporting and Accounting, forthcoming. https://doi.org/10.1108/JFRA-02-2023-0103
  • Abu Afifa, M. M., Nguyen, T. H., Nguyen, L. T. L., Tran, T. H. T., & Dao, N. T. (2024b). Nexus among blockchain technology adoption and firm performance: Perspective from mediating and moderating effects. International Journal of Organizational Analysis, forthcoming. https://doi.org/10.1108/IJOA-11-2023-4076
  • Abu Afifa, M. M., Saleh, I. H., & Haniah, F. F. (2023a). Does earnings management mediate the relationship between audit quality and company performance? Evidence from Jordan. Journal of Financial Reporting and Accounting, 21(3), 747–774. https://doi.org/10.1108/JFRA-08-2021-0245
  • Abu Afifa, M., Saleh, I., & Vo Van, H. (2023b). Accounting information quality in the digital era–a perspective from ERP system adoption? Global Knowledge, Memory and Communication, forthcoming. https://doi.org/10.1108/GKMC-03-2023-0101
  • Abu Afifa, M., Saleh, I., Al-Shoura, A., & Vo Van, H. (2024a). Nexus among board characteristics, earnings management and dividend payout: Evidence from an emerging market. International Journal of Emerging Markets, 19(1), 106–133. https://doi.org/10.1108/IJOEM-12-2021-1907
  • Adeel-Farooq, R. M., Raji, J. O., & Adeleye, B. N. (2021). Economic growth and methane emission: Testing the EKC hypothesis in ASEAN economies. Management of Environmental Quality: An International Journal, 32(2), 277–289. https://doi.org/10.1108/MEQ-07-2020-0149
  • Afifa, M. A., Saleh, I., & Haniah, F. (2021). Direct and mediated associations among ownership structure, cash holdings and firm value: The case of Jordanian insurance firms. Vision: The Journal of Business Perspective, 25(4), 471–482. https://doi.org/10.1177/0972262920983989
  • Alessandri, T. M., & Pattit, J. M. (2014). Drivers of R&D investment: The interaction of behavioral theory and managerial incentives. Journal of Business Research, 67(2), 151–158. https://doi.org/10.1016/j.jbusres.2012.11.001
  • Alipour, M., Ghanbari, M., Jamshidinavid, B., & Taherabadi, A. (2019). Does board independence moderate the relationship between environmental disclosure quality and performance? Evidence from static and dynamic panel data. Corporate Governance: The International Journal of Business in Society, 19(3), 580–610. https://doi.org/10.1108/CG-06-2018-0196
  • Almaqtari, F. A., Al-Hattami, H. M., Al-Nuzaili, K. M. E., & Al-Bukhrani, M. A. (2020). Corporate governance in India: A systematic review and synthesis for future research. Cogent Business & Management, 7(1), 1803579. https://doi.org/10.1080/23311975.2020.1803579
  • Almasarwah, A. K., Sarea, A. M., Afifa, M. A., & Marei, Y. (2021). Earnings manipulation and firm performance: Evidence from Jordan. International Journal of Critical Accounting, 12(3), 259–278. https://doi.org/10.1504/IJCA.2021.116344
  • Andersen, L. B., Boesen, A., & Pedersen, L. H. (2016). Performance in public organizations: Clarifying the conceptual space. Public Administration Review, 76(6), 852–862. https://doi.org/10.1111/puar.12578
  • Azeem, M., Sheridan, A., & Adapa, S. (2021). Women to women: Enabling innovation and firm performance in developing countries. Emerging Markets Review, 51(A), 100879. https://doi.org/10.1016/j.ememar.2021.100879
  • Badu, B., & Appiah, K. O. (2018). Value relevance of accounting information: An emerging country perspective. Journal of Accounting & Organizational Change, 14(4), 473–491. https://doi.org/10.1108/JAOC-07-2017-0064
  • Bassemir, M., & Novotny‐Farkas, Z. (2018). IFRS adoption, reporting incentives and financial reporting quality in private firms. Journal of Business Finance & Accounting, 45(7–8), 759–796. https://doi.org/10.1111/jbfa.12315
  • Bhasin, M. (2009). Corporate governance and transparency scenario: An empirical study of Asia. International Review of Business Research Papers, 5(6), 269–297.
  • Bhojraj, S., & Libby, R. (2005). Capital market pressure, disclosure frequency - induced earnings/cash flow conflict, and managerial myopia. The Accounting Review, 80(1), 1–20. https://doi.org/10.2308/accr.2005.80.1.1
  • Bushee, B. J. (1998). The influence of institutional investors on myopic R&D investment behavior. Accounting Review, 73(3), 305–333.
  • Chen, S., Miao, B., & Shevlin, T. (2015). A new measure of disclosure quality: The level of disaggregation of accounting data in annual reports. Journal of Accounting Research, 53(5), 1017–1054. https://doi.org/10.1111/1475-679X.12094
  • Cheng, S. (2004). R&D expenditures and CEO compensation. The Accounting Review, 79(2), 305–328. https://doi.org/10.2308/accr.2004.79.2.305
  • Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging Markets Review, 15(1), 1–33. https://doi.org/10.1016/j.ememar.2012.03.002
  • Coles, J. L., Lemmon, M. L., & Meschke, J. F. (2012). Structural models and endogeneity in corporate finance: The link between managerial ownership and corporate performance. Journal of Financial Economics, 103(1), 149–168. https://doi.org/10.1016/j.jfineco.2011.04.002
  • Dakhlallh, M. M., Rashid, N., Abdullah, W. A. W., & Al Shehab, H. J. (2020). Audit committee and Tobin’s Q as a measure of firm performance among Jordanian companies. Journal of Advanced Research in Dynamical and Control Systems, 12(1), 28–41. https://doi.org/10.5373/JARDCS/V12I1/20201005
  • David, P., Hitt, M. A., & Gimeno, J. (2001). The influence of activism by institutional investors on R&D. Academy of Management Journal, 44(1), 144–157. https://doi.org/10.2307/3069342
  • Demsetz, H., & Villalonga, B. (2001). Ownership structure and corporate performance. Journal of Corporate Finance, 7(3), 209–233. https://doi.org/10.1016/S0929-1199(01)00020-7
  • Dikolli, S. S., Kulp, S. L., & Sedatole, K. L. (2009). Transient institutional ownership and CEO contracting. The Accounting Review, 84(3), 737–770. https://doi.org/10.2308/accr.2009.84.3.737
  • Erel, I., Nadauld, T., & Stulz, R. M. (2014). Why did holdings of highly rated securitization tranches differ so much across banks? Review of Financial Studies, 27(2), 404–453. https://doi.org/10.1093/rfs/hht077
  • Fahlenbrach, R., & Stulz, R. M. (2011). Bank CEO incentives and the credit crisis. Journal of Financial Economics, 99(1), 11–26. https://doi.org/10.1016/j.jfineco.2010.08.010
  • Fung, B. (2014). The demand and need for transparency and disclosure in corporate governance. Universal Journal of Management, 2(2), 72–80. https://doi.org/10.13189/ujm.2014.020203
  • Gao, F., Dong, Y., Ni, C., & Fu, R. (2016). Determinants and economic consequences of non-financial disclosure quality. European Accounting Review, 25(2), 287–317. https://doi.org/10.1080/09638180.2015.1013049
  • Habib, A., Bhuiyan, M. B. U., & Hasan, M. M. (2019). IFRS adoption, financial reporting quality and cost of capital: A life cycle perspective. Pacific Accounting Review, 31(3), 497–522. https://doi.org/10.1108/PAR-08-2016-0073
  • Hamdallah, M. E., Srouji, A. F., & Abed, S. R. (2021). The nexus between reducing audit report lags and divining integrated financial report governance disclosures: Should ASE directives be more conspicuous? Afro-Asian J. of Finance and Accounting, 11(1), 81–103. https://doi.org/10.1504/AAJFA.2021.111807
  • Hla, D. T., Cheuk, S., Isa, A. H. M., & Jakpar, S. (2021). Constructing a financial reporting disclosure quality model of listed firms in Malaysia. International Journal of Business and Society, 22(2), 1034–1046.
  • Hlel, K., Kahloul, I., & Bouzgarrou, H. (2020). IFRS adoption, corporate governance and management earnings forecasts. Journal of Financial Reporting and Accounting, 18(2), 325–342. https://doi.org/10.1108/JFRA-01-2019-0007
  • Hu, S., & Zhang, Y. (2021). COVID-19 pandemic and firm performance: Cross-country evidence. International Review of Economics & Finance, 74(1), 365–372. https://doi.org/10.1016/j.iref.2021.03.016
  • Iatridis, G. E. (2013). Environmental disclosure quality: Evidence on environmental performance, corporate governance and value relevance. Emerging Markets Review, 14(1), 55–75. https://doi.org/10.1016/j.ememar.2012.11.003
  • Jiang, L. A., Waller, D. S., & Cai, S. (2013). Does ownership type matter for innovation? Evidence from China. Journal of Business Research, 66(12), 2473–2478. https://doi.org/10.1016/j.jbusres.2013.05.037
  • Jiao, Y. (2011). Corporate disclosure, market valuation, and firm performance. Financial Management, 40(3), 647–676. https://doi.org/10.1111/j.1755-053X.2011.01156.x
  • Jizi, M. I., Salama, A., Dixon, R., & Stratling, R. (2014). Corporate governance and corporate social responsibility disclosure: Evidence from the US banking sector. Journal of Business Ethics, 125(4), 601–615. https://doi.org/10.1007/s10551-013-1929-2
  • Khan, T. M., Nosheen, S., & Ul Haq, N. (2020). Corporate governance mechanism and comparative analysis of one-tier and two-tier board structures: Evidence from ASEAN countries. International Journal of Disclosure and Governance, 17(2-3), 61–72. https://doi.org/10.1057/s41310-020-00075-0
  • Kijkasiwat, P., Shahid, A. U., Hassan, M. K., & Hunjra, A. I. (2022). Access to finance, social capital and the improvement of corporate performance: Evidence from Southeast Asia. Managerial Finance, 48(7), 1047–1068. https://doi.org/10.1108/MF-10-2021-0519
  • Kolasinski, A. C., & Yang, N. (2018). Managerial myopia and the mortgage meltdown. Journal of Financial Economics, 128(3), 466–485. https://doi.org/10.1016/j.jfineco.2017.03.010
  • Kong, M., Xin, J., Xu, W., Li, H., & Xu, D. (2022). The moral licensing effect between work effort and unethical pro-organizational behavior: The moderating influence of Confucian value. Asia Pacific Journal of Management, 39(2), 515–537. https://doi.org/10.1007/s10490-020-09736-8
  • Lantto, A.-M., & Sahlström, P. (2009). Impact of International Financial Reporting Standard adoption on key financial ratios. Accounting & Finance, 49(2), 341–361. https://doi.org/10.1111/j.1467-629X.2008.00283.x
  • Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics, 108(1), 1–24. https://doi.org/10.1016/S0304-4076(01)00098-7
  • Li, B., Siciliano, G., Venkatachalam, M., Naranjo, P., & Verdi, R. S. (2021a). Economic consequences of IFRS adoption: The role of changes in disclosure quality. Contemporary Accounting Research, 38(1), 129–179. https://doi.org/10.1111/1911-3846.12638
  • Li, Y., Xu, X., Zhu, Y., & Haq, M. (2021b). CEO decision horizon and corporate R&D investments: An explanation based on managerial myopia and risk aversion. Accounting & Finance, 61(4), 5141–5175. https://doi.org/10.1111/acfi.12752
  • Li, Z., Crook, J., Andreeva, G., & Tang, Y. (2021c). Predicting the risk of financial distress using corporate governance measures. Pacific-Basin Finance Journal, 68(C), 101334. https://doi.org/10.1016/j.pacfin.2020.101334
  • Limijaya, A. (2017). One financial reporting global language: The ultimate goal? Jurnal Riset Akuntansi Dan Keuangan, 5(1), 1277–1292. https://doi.org/10.17509/jrak.v5i1.6731
  • Liu, H., Yi, X., & Yin, L. (2021). The impact of operating flexibility on firms’ performance during the COVID-19 outbreak: Evidence from China. Finance Research Letters, 38(C), 101808. https://doi.org/10.1016/j.frl.2020.101808
  • Luo, Y., Wu, H., Ying, S. X., & Peng, Q. (2022). Do company visits by institutional investors mitigate managerial myopia in R&D investment? Evidence from China. Global Finance Journal, 51(1), 100694. https://doi.org/10.1016/j.gfj.2021.100694
  • Meshram, V. V., & Arora, J. (2021). Accounting constructs and economic consequences of IFRS adoption in India. Journal of International Accounting, Auditing and Taxation, 45(C), 100427. https://doi.org/10.1016/j.intaccaudtax.2021.100427
  • Miah, M. S. (2021). Does IFRS convergence bring improvement in firm performance? An empirical analysis. Journal of Chinese Economic and Business Studies, 19(1), 95–107. https://doi.org/10.1080/14765284.2020.1846010
  • Minh, N. N., Van, D. N., & Thanh, H. T. T. (2023). Impact of IFRS application on firm performance through disclosure quality. In T. L. Pham & Q. H. Pham (Eds.), International Conference on Emerging Challenges: Strategic Adaptation in The World of Uncertainties (ICECH 2022). (pp. 386–401). Atlantis Press.
  • Mirza, N., Rahat, B., Naqvi, B., & Rizvi, S. K. A. (2023). Impact of Covid-19 on corporate solvency and possible policy responses in the EU. The Quarterly Review of Economics and Finance: Journal of the Midwest Economics Association, 87(1), 181–190. https://doi.org/10.1016/j.qref.2020.09.002
  • Muhamad, R., Shahimi, S., Yahya, Y., & Mahzan, N. (2009). Disclosure quality on governance issues in annual reports of Malaysian PLCs. International Business Research, 2(4), 61–72. https://doi.org/10.5539/ibr.v2n4p61
  • Neel, M. (2017). Accounting comparability and economic outcomes of mandatory IFRS adoption. Contemporary Accounting Research, 34(1), 658–690. https://doi.org/10.1111/1911-3846.12229
  • Nguyen, N. M., Abu Afifa, M., & Van Bui, D. (2023). Blockchain technology and sustainable performance: Moderated-mediating model with management accounting system and digital transformation. Environment, Development and Sustainability, forthcoming, 1–23. https://doi.org/10.1007/s10668-023-04189-7
  • Ntim, C. G., Soobaroyen, T., & Broad, M. J. (2017). Governance structures, voluntary disclosures and public accountability the case of UK higher education institutions. Accounting, Auditing & Accountability Journal, 30(1), 65–118. https://doi.org/10.1108/AAAJ-10-2014-1842
  • Pangarkar, N. (2007). Survival during a crisis: Alliances by Singapore firms. British Journal of Management, 18(3), 209–223. https://doi.org/10.1111/j.1467-8551.2006.00490.x
  • Pituch, K. A., & Stevens, J. P. (2015). Applied multivariate statistics for the social sciences: Analyses with SAS and IBM’s SPSS. Routledge.
  • Qiu, Y., Shaukat, A., & Tharyan, R. (2016). Environmental and social disclosures: Link with corporate financial performance. The British Accounting Review, 48(1), 102–116. https://doi.org/10.1016/j.bar.2014.10.007
  • Qizam, I. (2021). The impact of disclosure quality on firm performance: Empirical evidence from Indonesia. The Journal of Asian Finance, Economics and Business, 8(4), 751–762.
  • Rezaee, Z., & Tuo, L. (2017). Voluntary disclosure of non-financial information and its association with sustainability performance. Advances in Accounting, 39(1), 47–59. https://doi.org/10.1016/j.adiac.2017.08.001
  • Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2–3), 159–189. https://doi.org/10.1007/s11142-006-9012-1
  • Richardson, S. A., & Tuna, I. (2020). Evaluating quality of financial reports. In T. R. Robinson (Ed.), International Financial Statement Analysis. (pp. 825–900). Wiley.
  • Rosenbusch, N., Brinckmann, J., & Bausch, A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing, 26(4), 441–457. https://doi.org/10.1016/j.jbusvent.2009.12.002
  • Rouhou, N. C., Douagi, F. W. B. M., Hussainey, K., & Alqatan, A. (2021). The impact of Ifrs mandatory adoption on Kpis disclosure quality. Risk Governance and Control: Financial Markets and Institutions, 11(3), 55–66. https://doi.org/10.22495/rgcv11i3p4
  • Saeedi, A., & Mahmoodi, I. (2011). Capital structure and firm performance: Evidence from Iranian companies. International Research Journal of Finance and Economics, 70(1), 20–29.
  • Saleh, I., Abu Afifa, M., & Alkhawaja, A. (2023a). Internal corporate governance mechanisms and earnings manipulation practices in MENA countries. Economic Research-Ekonomska Istraživanja, 36(2), 2134902. https://doi.org/10.1080/1331677X.2022.2134902
  • Saleh, I., Abu Afifa, M., Alkhawaja, A., & Marei, Y. (2023b). Big data analytics and sustainability accounting and reporting: Evidence from Canada. In S. G. Yaseen (Eds.), Conference on Sustainability and Cutting-Edge Business Technologies. (pp. 313–321). Springer Nature Switzerland.
  • Saleh, I., Afifa, M. A., Al-Hawatmah, Z., & Albakkar, O. (2022). Earnings management, earnings quality, board gender diversity and cost of equity capital: evidence from an emerging market. Global Business Review, forthcoming., 097215092211335. https://doi.org/10.1177/09721509221133513
  • Schumacker, R. E., & Lomax, R. G. (2004). A beginner’s guide to structural equation modeling. Lawrence Erlbaum Associates, Inc.
  • Shakhatreh, M. Z., Alsmadi, S. A., & Alkhataybeh, A. (2020). The effect of audit fees on disclosure quality in Jordan. Cogent Business & Management, 7(1), 1771076. https://doi.org/10.1080/23311975.2020.1771076
  • Shen, H., Fu, M., Pan, H., Yu, Z., & Chen, Y. (2020). The impact of the COVID-19 pandemic on firm performance. Emerging Markets Finance and Trade, 56(10), 2213–2230. https://doi.org/10.1080/1540496X.2020.1785863
  • Shoaib, A., & Siddiqui, M. A. (2020). Earnings management and theoretical adjustment in capital structure performance pattern: Evidence from APTA economies. Borsa Istanbul Review, 22(1), 20–36. https://doi.org/10.1016/j.bir.2020.12.001
  • Solikhah, B., & Maulina, U. (2021). Factors influencing environment disclosure quality and the moderating role of corporate governance. Cogent Business & Management, 8(1), 1876543. https://doi.org/10.1080/23311975.2021.1876543
  • Temiz, H. (2021). The effects of corporate disclosure on firm value and firm performance: Evidence from Turkey. International Journal of Islamic and Middle Eastern Finance and Management, 14(5), 1061–1080. https://doi.org/10.1108/IMEFM-06-2020-0269
  • Toumeh, A. A., Yahya, S., Yassin, M. M., & Ayoush, M. D. (2021). The moderating effect of audit quality on the links between stock market segmentations, surplus free cash flow, and income-increasing discretionary accruals. Australasian Accounting Business & Finance Journal, 15(4), 151–174.
  • Tran, T. T. H., Afifa, M. A., & Nguyen, N. M. (2023). Does the capital structure affect the discretionary and non-discretionary firm performance? Evidence from Vietnam. Global Business Review, forthcoming., 09721509231194810. https://doi.org/10.1177/09721509231194810
  • Vitolla, F., Raimo, N., & Rubino, M. (2019). Intellectual capital disclosure and firm performance: An empirical analysis through integrated reporting. In 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations. April 5th-6th, 2019, Dubrovnik, Croatia (pp. 245–255). Governance Research and Development Centre (CIRU).
  • Wadho, W., & Chaudhry, A. (2018). Innovation and firm performance in developing countries: The case of Pakistani textile and apparel manufacturers. Research Policy, 47(7), 1283–1294. https://doi.org/10.1016/j.respol.2018.04.007
  • Wintoki, M. B., Linck, J. S., & Netter, J. M. (2012). Endogeneity and the dynamics of internal corporate governance. Journal of Financial Economics, 105(3), 581–606. https://doi.org/10.1016/j.jfineco.2012.03.005
  • Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. The MIT press.
  • Wu, S., Quan, X., & Xu, L. (2011). CEO power, disclosure quality and the variability of firm performance: Evidence from China. Nankai Business Review International, 2(1), 79–97. https://doi.org/10.1108/20408741111113510