The impact of material internal control weaknesses, institutional ownership and managerial ownership on future-oriented disclosure: evidence from Islamic economy

IF 2.5 Q2 BUSINESS, FINANCE

Journal of Islamic Accounting and Business Research Pub Date : 2023-10-30 DOI:10.1108/jiabr-02-2023-0052

Arash Arianpoor, Imad Taher Lamloom, Hameed Mohsin Khayoon, Ali Shakir Zaidan

{"title":"The impact of material internal control weaknesses, institutional ownership and managerial ownership on future-oriented disclosure: evidence from Islamic economy","authors":"Arash Arianpoor, Imad Taher Lamloom, Hameed Mohsin Khayoon, Ali Shakir Zaidan","doi":"10.1108/jiabr-02-2023-0052","DOIUrl":null,"url":null,"abstract":"Purpose This study aims to assess the effect of material internal control weaknesses (MICW) on the relationship between ownership structures and future-oriented disclosure. Design/methodology/approach A total number of 197 firms were assessed in this study during 2014–2021. Two measures were used for MICW. First, the number of existing MICW was assessed in independent auditors’ reports. In Iran, the maximum number of weaknesses is 13. Second, the scoring (0 or 1) method was used as a dummy variable, 1 for a firm with MICW and otherwise 0. Moreover, the scoring (0 or 1) method was used to measure the level of future-oriented disclosure of 13 indicators. Findings The findings showed that institutional ownership and managerial ownership have a significant positive effect on future-oriented disclosure, whereas the MICW have a significant negative effect on future-oriented disclosure. In addition, MICW played a moderator role in the relationship between ownership structures and future-oriented disclosure. The robustness checks confirmed the results. Originality/value As the studies conducted on future-oriented disclosure and the contributing factors are limited, and also the effect of MICW on future-oriented disclosure is not explored, the present findings can show the importance of the study, and fill the gap in this field. This study offers theoretical and practical implications to drive policymakers and managers to the effectiveness of internal control and future-oriented transparency.","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":"30 10","pages":"0"},"PeriodicalIF":2.5000,"publicationDate":"2023-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Islamic Accounting and Business Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jiabr-02-2023-0052","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

Purpose This study aims to assess the effect of material internal control weaknesses (MICW) on the relationship between ownership structures and future-oriented disclosure. Design/methodology/approach A total number of 197 firms were assessed in this study during 2014–2021. Two measures were used for MICW. First, the number of existing MICW was assessed in independent auditors’ reports. In Iran, the maximum number of weaknesses is 13. Second, the scoring (0 or 1) method was used as a dummy variable, 1 for a firm with MICW and otherwise 0. Moreover, the scoring (0 or 1) method was used to measure the level of future-oriented disclosure of 13 indicators. Findings The findings showed that institutional ownership and managerial ownership have a significant positive effect on future-oriented disclosure, whereas the MICW have a significant negative effect on future-oriented disclosure. In addition, MICW played a moderator role in the relationship between ownership structures and future-oriented disclosure. The robustness checks confirmed the results. Originality/value As the studies conducted on future-oriented disclosure and the contributing factors are limited, and also the effect of MICW on future-oriented disclosure is not explored, the present findings can show the importance of the study, and fill the gap in this field. This study offers theoretical and practical implications to drive policymakers and managers to the effectiveness of internal control and future-oriented transparency.

查看原文本刊更多论文

实质性内部控制缺陷、机构所有权和管理层所有权对面向未来的信息披露的影响:来自伊斯兰经济的证据

目的研究重大内部控制缺陷对股权结构与未来导向披露关系的影响。设计/方法/方法在2014-2021年期间，本研究共评估了197家公司。MICW采用两种测量方法。首先，在独立审计员的报告中评估了现有特派团的数目。在伊朗，弱点的最大数量是13个。其次，使用评分(0或1)方法作为虚拟变量，具有MICW的公司为1，否则为0。此外，采用得分(0或1)法衡量13项指标面向未来的披露水平。研究发现，机构持股和管理层持股对未来导向信息披露具有显著的正向影响，而MICW对未来导向信息披露具有显著的负向影响。此外，MICW在股权结构与未来导向信息披露的关系中起到调节作用。鲁棒性检验证实了结果。独创性/价值由于对未来导向信息披露及其影响因素的研究较少，且未对MICW对未来导向信息披露的影响进行探讨，本研究结果可以显示本研究的重要性，填补该领域的空白。本研究对推动决策者和管理者关注内部控制的有效性和面向未来的透明度具有理论和实践意义。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Islamic Accounting and Business Research BUSINESS, FINANCE-

CiteScore

4.80

自引率

22.70%

发文量

期刊介绍： The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.