Examining multi-factorial drivers of nonfinancial information disclosure using an ordered logit model: evidence from integrated reports in Japan



This study investigated the firms’ practices of disclosing nonfinancial information based on the questionnaire survey. The sample constituted 91 companies that disclosed integrated reports in 2014. The survey involved 21 components comprising nonfinancial information, and questions comprised of both whether or not to disclose and the rating of four factorial drivers for each component. Four four-factorial drivers are managerial significance, the importance of measurement, measurement difficulties, and impact on financial figures. The study hence investigated the influence of four-factorial drivers upon the corporate disclosure practices for each component. In this study, it is hypothesized that the firms have great motivation to narrow the information gap between insiders and outsiders, thereby achieving their essential objectives, such as a market value increase. In the main categories, such as overall business circumstances and structural capital, the managerial significance upon the nonfinancial component propelled the firm towards a high disclosure rate. However, in some categories, such as competitive circumstances, technological information, and human capital, the results based on an ordered logit model suggest that the firms had a great endeavor to hold off these pieces of information and maintain as much confidentiality as possible. Thus, this study further conducted a simulation study and reports possible solutions to enhance the corporate disclosure practices of nonfinancial information from the four conceptions.

Keywords:Integrated report, Nonfinancial information, Disclosure rate, Factorial drivers, Business and competitive circumstances, Risk, Human capital, Structural capital, Relational capital, Technological information

著者 PDFへのリンク