Effect of CEO Ownership Power and Integrated Reporting Among Listed Firms in East Africa
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 04
Abstract
Purpose – The pressure on businesses to disclose information that goes beyond the financial aspects and includes non-financial information has grown as social, environmental, and accountability issues are receiving more attention. Integrated reporting (IR) is a technique that can close the information gap by focusing on both financial and non-financial aspects, on the linkages that already exist between the various business processes, and on the capacity of the firm to generate value over the short, medium, and long term. However, studies on the determinants of IR are limited, inconclusive, contradictory and mainly studied in developed economies. This study aimed at examining the effect of CEO ownership power on IR from a developing region perspective (East Africa). Design/methodology/approach – The study adopted explanatory and longitudinal research design with panel data to establish the causal relationship between CEO ownership power and IR. The empirical study was based on a sample of 702 firm-year observations among listed firms in East Africa for the period 2013 to 2021. Findings – The findings indicate a positively significant relationship between CEO ownership power and IR among firms listed in the East African securities exchange. Practical limitation/implications – The study used one dimension of CEO power (ownership), other studies could incorporate other dimensions of CEO power (structural, expert & prestige) and in other different contexts. From a managerial practical perspective, it shows that CEOs owning shares in the company influences the level of IR. The insights also provide useful information to shareholders and regulators in evaluating the CEO ownership power that affects IR in East Africa. This study also implies that policymakers can encourage shareholding by CEO to enhance IR. Originality/value – literature review shows a few studies have investigated the relationship between CEO ownership power and IR in the developing world specifically the East African context. This study provides empirical evidence on the impact of CEO ownership power on IR and how ownership of shares by the CEO in a firm influences the disclosure of financial and non-financial information.
Authors and Affiliations
Tirisa Caroline Bonareri, Dr. Josphat Cheboi, Dr. Bonuke Ronald
Keywords
Related Articles
- EP ID EP726938
- DOI 10.47191/jefms/v6-i4-03
- Views 42
- Downloads 0
The Quality of CSR Disclosure: Effect of Environmental Performance, Slack Resources, and Sensitivity Classification
This study aims to analyze the influence of slack resources, environmental performance, and industry sensitivity on the quality of Corporate Social Responsibility Disclosure (CSRD) in Energy and Basic Materials sector co...
Quality Analysis of Profit at Pdam Tirta Anoa Kendari City
The purpose of this study was to determine the quality of earnings at PDAM Tirta Anoa Kendari City was adequate. The type of data used in this research is qualitative data. Sources of data used in this study primary data...
The Impact of Digital Socialization and Digitalization of Tax Administration on Compliance through Motivation of Cooperative Taxpayers in Malang City
This study aims to analyze and explain the impact of digital socialization on tax compliance, analyze and explain the impact of tax administration digitalization on tax compliance, analyze and explain the impact of taxpa...
The Effect of the Quality of Disclosure of Sustainability and Quality of Earnings on Investment Risk and their Impact on Market Value Added (MVA)
This study aims to determine the effect of the quality of sustainability disclosure and the quality of risk earnings on investment and its impact on market value added (MVA) in manufacturing companies listed on the Indon...
Examining User Satisfaction in the Village Financial Supervision System (Siswaskeudes): Insights from the USTAM Framework
This research aims to empirically confirm the institutional theory and the Urban Services Technology Acceptance Model (USTAM) related to factors influencing user satisfaction with the Siswaskeudes application. Exploring...