[Home ] [Archive]   [ فارسی ]  
:: Main :: About :: Current Issue :: Archive :: Search :: Submit :: Contact ::
Main Menu
Home::
Journal Information::
About the Journal
Editorial Board
Aims& Scopes
Journal News
Articles archive::
All Issues
Current Issue
For Authors::
Call for Papers
Submission Instruction
Submission Form
For Reviewers::
Reviewers Section
Registration::
Registration Information
Registration Form
Contact us::
Contact Information
Contact us
Site Facilities::
Site map
Search contents
FAQ
Top 10 contents
Inform to friends
::
Search in website

Advanced Search
..
Receive site information
Enter your Email in the following box to receive the site news and information.
..
:: year 16, Issue 61 (2024) ::
fa 2024, 16(61): 84-60 Back to browse issues page
Investigating Managers' Motivations in Changing Forward-Looking Information Disclosure Using Static and Dynamic Models
Akram Taftiyan * 1, Fatemeh Mansuri Mohammad Abadi1 , Mohammad Hassanzadeh Nafouti1
1- Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.
Abstract:   (197 Views)
 Managers disclose prospective information with various motivations, such as showing the company's performance, reducing political costs, providing the auditor's opinion, and being influenced by the legal environment. The current research was carried out with the aim of investigating managers' motivations in changing the disclosure of forward-looking information. In order to test the hypotheses of the research, 131 companies were selected as a sample between 2013 and 2023 using the systematic elimination method and analyzed using the static and dynamic panel data regression method. To evaluate managers' motivations, the company's performance change criteria and company's characteristics have been used, and to measure the change of prospective information disclosure in annual reports, vocabulary frequency method has been used. The results of the research showed that there is a positive and significant relationship between the change in performance and the change in the disclosure of prospective information; In other words, companies with better performance can disclose more forward-looking information. Also, there is a negative and significant relationship between the size of the company and the litigation environment with the change in prospective information disclosure, and there is a positive and significant relationship between the competitive environment, managerial ownership and the type of audit with the change in information disclosure. Based on the results of the research, managers' motivations can affect the company's decisions and performance and cause changes in prospective information disclosure.
 
Article number: 5
Keywords: Forward-Looking Information Disclosure, Firm’s Performance, Managers' Motivations, Static and Dynamic Approach.
Full-Text [PDF 914 kb]   (60 Downloads)    
Type of Study: Research | Subject: Special
References
1. Abdallah, A.A.N., & M.K. Hassan. (2013). The effects of corporation/country characteristics and the level of corporate governance on corporate risk disclosure: The case of the Gulf Cooperative Council (GCC) countries. Country Characteristics and the Level of Corporate Governance on Corporate Risk Disclosure: The Case of the Gulf Cooperative Council (GCC) Countries (May 3, 2013).
2. Abdelazim, S.I., A.B.M. Metwally & S.A.S. Aly. (2023). Firm characteristics and forward-looking disclosure: the moderating role of gender diversity. Journal of Accounting in Emerging Economies 13(5): 947-973.
3. Alkhatib, K. (2014). The determinants of forward-looking information disclosure. Procedia-Social and Behavioral Sciences 109: 858-864.Atube, E.N., & A.O. Okolie. (2024). Non-Financial Information Disclosures and Firm Performance of Listed Non-Financial Services Firms in Nigeria. Finance & Accounting Research Journal 6(1): 79-97.
4. Atube, E.N., & A.O. Okolie. (2024). Non-Financial Information Disclosures and Firm Performance of Listed Non-Financial Services Firms in Nigeria. Finance & Accounting Research Journal 6(1): 79-97.
5. Barakat, A., & K. Hussainey. (2013). Bank governance, regulation, supervision, and risk reporting: Evidence from operational risk disclosures in European banks. International Review of Financial Analysis 30: 254-273
6. Bek-Gaik, B., & A. Surowiec. (2021). Forward-looking Disclosures in Integrated Reporting: Evidence from Poland. European Research Studies 24(4B): 952-981.
7. Birt, J.L., C.M. Bilson, T. Smith & R.E. Whaley. (2006). Ownership, competition, and financial disclosure. Australian Journal of Management 31(2): 235-263.
8. Campbell, J.L., H. Chen, D.S. Dhaliwal, H.M. Lu & L.B. Steele. (2014). The information content of mandatory risk factor disclosures in corporate filings. Review of Accounting Studies 19: 396-455.
9. Chen, J.J., P. Song & F.L. Loi. (2024). Strategic Forward-Looking Nonearnings Disclosure and Overinvestment. The British Accounting Review 101431.
10. Cooke, T.E. (1992). The impact of size, stock market listing and industry type on disclosure in the annual reports of Japanese listed corporations. Accounting and Business Research 22(87): 229-237.
11. Depoers, F., & T. Jeanjean. (2012). Determinants of quantitative information withholding in annual reports. European Accounting Review 21(1): 115-151.
12. Domínguez, L.R., & L.C.N. Gámez (2014). Corporate reporting on risks: Evidence from Spanish companies. Revista de Contabilidad 17(2): 116-129.
13. Field, L., M. Lowry & S. Shu. (2005). Does disclosure deter or trigger litigation?. Journal of Accounting and Economics 39(3): 487-507.
14. Fotouhi Khankahdani, M., A. Taftiyan & M. Nazemi Ardakani. (2021). Ranking of indicators of forward-looking information disclosure by the fuzzy analytical hierarchy process. International Journal of Finance & Managerial Accounting 6(21): 111-127.
15. Hassanein, A. (2015). Informativeness of unaudited forward-looking financial disclosure: evidence from UK narrative reporting (Doctoral dissertation, Plymouth University).
16. Hassanein, A., A. Zalata & K. Hussainey. (2019). Do forward-looking narratives affect investors’ valuation of UK FTSE all-shares firms? Review of Quantitative Finance and Accounting 52(2): 493-519
17. Healy, P.M., & K.G. Palepu. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics 31(1-3): 405-440.
18. Hussainey, K., & B. Al‐Najjar. (2011). Future‐oriented narrative reporting: determinants and use. Journal of Applied Accounting Research 12(2): 123-138.
19. Jerico, M.I.J., & W. Utami. (2021). The effect of profitability, Capital structure, and forward-looking information on investment risk. Journal of Life Economics 8(2): 147-156.
20. Kiliç, M., & C. Kuzey. (2018). Determinants of forward-looking disclosures in integrated reporting. Managerial Auditing Journal 33(1): 115-144.
21. Lawati, H.A., & K. Hussainey. (2024). Forward-looking disclosure and short-term liabilities: evidence from Oman. International Journal of Accounting, Auditing and Performance Evaluation 20(1-2): 5-22.
22. Li, F. (2010). The information content of forward‐looking statements in corporate filings—A naïve Bayesian machine learning approach. Journal of Accounting Research 48(5): 1049-1102
23. Linsley, P.M., & P.J. Shrives. (2005). Examining risk reporting in UK public companies. The Journal of Risk Finance 6(4): 292-305.
24. Mahboub, R.M. (2019). The determinants of forward-looking information disclosure in annual reports of Lebanese commercial banks. Academy of Accounting and Financial Studies Journal 23(4): 1-18.
25. Milne, M.J. (2002). Positive accounting theory, political costs and social disclosure analyses: a critical look. Critical Perspectives on Accounting 13: 369-395.
26. Osama Muhammad, M., & E.D. Mohamed. (2024). The Impact of Forward-looking disclosure on Firm Value and Performance.
27. PPa, O.H. (2010). Disclosure measurement in the empirical accounting literature-a review (Doctoral dissertation, Department of Economics and Finance, School of Social Sciences, Brunel University Uxbridge, London).
28. Puspayanti, W., & D. Puspawati. (2024). Forward Looking Information Disclosure: Aspek Tata Kelola Perusahaan. Journal of Social and Economics Research 6(1): 810-824.
29. Rogers, J.L., & A. Van Buskirk. (2009). Shareholder litigation and changes in disclosure behavior. Journal of Accounting and Economics 47(1-2): 136-156.
30. Schleicher, T., K. Hussainey & M. Walker. (2007). Loss firms’ annual report narratives and share price anticipation of earnings. The British Accounting Review 39(2): 153-171.
31. Skinner, D.J. (1994). Why firms voluntarily disclose bad news. Journal of Accounting Research 32(1): 38-60.
32. Taftiyan, A., & F. Mansuri Mohammadabadi. (2023). Integrated Modeling of Causes and Consequences of Forward-Looking Information Disclosure in Annual Reports. Iranian Journal of Finance 7(2): 122-151.
33. Utami, W., P.D. Wahyuni & L. Nugroho. (2020). Determinants of Stock Liquidity: Forward-Looking Information, Corporate Governance, and Asymmetric Information. The Journal of Asian Finance, Economics and Business 7(12): 795-807.
34. Watts, R.L., & J.L. Zimmerman. (1978). Towards a positive theory of the determination of accounting standards. Accounting Review 112-134.
35. Watts, R.L., & J.L. Zimmerman. (1983). Agency problems, auditing, and the theory of the firm: Some evidence. The Journal of Law and Economics 26(3): 613-633.
36. Yaoyao, L., & L. Junwei. (2023). Forward-looking Information Disclosure and Analysts’ Earnings Forecasts: Evidence from Text Analysis and Machine Learning. Foreign Economics & Management 45(10): 101-115.
Send email to the article author

Add your comments about this article
Your username or Email:

CAPTCHA

XML   Persian Abstract   Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Taftiyan A, Mansuri Mohammad Abadi F, Hassanzadeh Nafouti M. Investigating Managers' Motivations in Changing Forward-Looking Information Disclosure Using Static and Dynamic Models. fa 2024; 16 (61) : 5
URL: http://qfaj.mobarakeh.iau.ir/article-1-2632-en.html
Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
year 16, Issue 61 (2024) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
Persian site map - English site map - Created in 0.04 seconds with 37 queries by YEKTAWEB 4679